4 unchanged sentences
Interest Rate Risk
−Removed: We are exposed to the effects of interest rate changes primarily as a result of long-term debt used to acquire and develop properties and other permitted investments.
+Added: We are exposed to the effects of interest rate changes primarily as a result of long-term debt used to acquire and develop properties and other investments.
Our interest rate risk is monitored using a variety of techniques.
4 unchanged sentences
therefore, changes in the fair value of interest rate derivative financial instruments were recorded as a component of interest expense in gain or loss in fair value of derivative financial instruments in our accompanying condensed consolidated statements of operations and comprehensive loss.
−Removed: As of June 30, 2022, we did not have any derivative financial instruments.
+Added: As of September 30, 2022, we did not have any derivative financial instruments.
We do not enter into derivative transactions for speculative purposes.
−Removed: In July 2017, the Financial Conduct Authority, or FCA, that regulates LIBOR announced its intention to stop compelling banks to submit rates for the calculation of LIBOR after 2021.
−Removed: As a result, the Federal Reserve Board and the Federal Reserve Bank of New York organized the Alternative Reference Rates Committee, which identified SOFR as its preferred alternative to United States dollar LIBOR in derivatives and other financial contracts.
−Removed: The FCA ceased publishing one-week and two-month LIBOR after December 31, 2021 and intends to cease publishing all remaining LIBOR after June 30, 2023.
−Removed: On January 19, 2022, we entered into the 2022 Credit Agreement that bears interest at varying rates based upon SOFR.
+Added: The Financial Conduct Authority, or FCA, ceased publishing one-week and two-month LIBOR after December 31, 2021 and intends to cease publishing all remaining LIBOR after June 30, 2023.
+Added: On January 19, 2022, we, through our operating partnership, entered into the 2022 Credit Facility that bears interest at varying rates based upon, at our option, (1) the Daily SOFR, plus the applicable rate for Daily SOFR Rate Loans;
+Added: or (2) the Term SOFR plus the applicable rate for Term SOFR Rate Loans, as such terms are defined in the 2022 Credit Facility.
Please see Note 9, Lines of Credit and Term Loans — 2022 Credit Facility, to our accompanying condensed consolidated financial statements for a further discussion.
2 unchanged sentences
These risks arise in connection with transitioning contracts to a new alternative rate, including any resulting value transfer that may occur.
−Removed: The value of loans or derivative instruments tied to LIBOR could also be impacted by the discontinuation of LIBOR.
+Added: The value of loans or derivative instruments tied to LIBOR could also be impacted when LIBOR is discontinued.
For some instruments, the method of transitioning to an alternative rate may be challenging, as they may require negotiation with the respective counterparty.
−Removed: If a contract is not transitioned to an alternative rate, upon LIBOR’s discontinuation the impact on our contracts is likely to vary.
+Added: If a contract is not transitioned to an alternative rate when LIBOR is discontinued, the impact on our contracts is likely to vary.
+Added: When LIBOR is discontinued, interest rates on our current or future indebtedness may be adversely affected.
Currently we cannot estimate the overall impact of the phase-out of LIBOR on our current debt agreements, although it is possible that an alternative variable rate could raise our borrowing costs.
2 unchanged sentences
In that case, the risks associated with the transition to an alternative reference rate will be accelerated and magnified.
−Removed: As of June 30, 2022, the table below presents the principal amounts and weighted average interest rates by year of expected maturity to evaluate the expected cash flows and sensitivity to interest rate changes.
+Added: As of September 30, 2022, the table below presents the principal amounts and weighted average interest rates by year of expected maturity to evaluate the expected cash flows and sensitivity to interest rate changes.
Expected Maturity Date
10 unchanged sentences
$ 111,000 $ 522,729,000 $ 158,065,000 $ 277,000 $ 414,192,000 $ 569,521,000 $ 1,664,895,000 $ 1,672,727,000
−Removed: Weighted average interest rate on maturing variable-rate debt (based on rates in effect as of June 30, 2022)
+Added: Weighted average interest rate on maturing variable-rate debt (based on rates in effect as of September 30, 2022)
6.52 % 5.68 % 5.60 % 5.07 % 4.79 % 4.75 % 5.13 % —
Debt Security Investment, Net
−Removed: As of June 30, 2022, the net carrying value of our debt security investment was $81,167,000.
+Added: As of September 30, 2022, the net carrying value of our debt security investment was $82,067,000.
As we expect to hold our debt security investment to maturity and the amounts due under such debt security investment would be limited to the outstanding principal balance and any accrued and unpaid interest, we do not expect that fluctuations in interest rates, and the resulting change in fair value of our debt security investment, would have a significant impact on our operations.
See Note 16, Fair Value Measurements, to our accompanying condensed consolidated financial statements, for a discussion of the fair value of our investment in a held-to-maturity debt security.
−Removed: The effective interest rate on our debt security investment was 4.24% per annum as of June 30, 2022.
+Added: The effective interest rate on our debt security investment was 4.24% per annum as of September 30, 2022.
Mortgage Loans Payable, Net and Lines of Credit and Term Loans
−Removed: Mortgage loans payable were $1,152,998,000 as of June 30, 2022.
−Removed: As of June 30, 2022, we had 66 fixed-rate mortgage loans payable and 12 variable-rate mortgage loans payable with effective interest rates ranging from 2.21% to 5.25% per annum and a weighted average effective interest rate of 3.35%.
−Removed: In addition, as of June 30, 2022, we had $1,267,634,000 outstanding under our lines of credit and term loans, at a weighted average interest rate of 3.50% per annum.
−Removed: As of June 30, 2022, the weighted average effective interest rate on our outstanding debt was 3.43% per annum.
+Added: Mortgage loans payable were $1,177,244,000 as of September 30, 2022.
+Added: As of September 30, 2022, we had 64 fixed-rate mortgage loans payable and 13 variable-rate mortgage loans payable with effective interest rates ranging from 2.21% to 6.52% per annum and a weighted average effective interest rate of 3.85%.
+Added: In addition, as of September 30, 2022, we had $1,292,935,000 outstanding under our lines of credit and term loans, at a weighted average interest rate of 5.04% per annum.
+Added: As of September 30, 2022, the weighted average effective interest rate on our outstanding debt, factoring in our fixed-rate interest rate swaps (if any), was 4.47% per annum.
An increase in the variable interest rate on our variable-rate mortgage loans payable and lines of credit and term loans constitutes a market risk.
−Removed: As of June 30, 2022, a 0.50% increase in the market rates of interest would have increased our overall annualized interest expense on all of our other variable-rate mortgage loans payable and lines of credit and term loans by $8,082,000, or 11.6% of total annualized interest expense on our mortgage loans payable and lines of credit and term loans.
+Added: As of September 30, 2022, a 0.50% increase in the market rates of interest would have increased our overall annualized interest expense on all of our other variable-rate mortgage loans payable and lines of credit and term loans by $8,440,000, or 10.7% of total annualized interest expense on our mortgage loans payable and lines of credit and term loans.
See Note 8, Mortgage Loans Payable, Net and Note 9, Lines of Credit and Term Loans, to our accompanying condensed consolidated financial statements.
2 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.