Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 3. Quantitative and Qualitative Disclosures About Market Risks
All of our mortgage debt bears interest at fixed rates. Our junior subordinated notes bear interest at the rate of three month LIBOR plus 200 basis points. At September 30, 2022, the interest rate on these notes was 4.78%. Our credit facility bears interest at the prime rate. At September 30, the interest rate on the credit facility was 6.25% A 100 basis point increase in the rates would increase our related interest expense by approximately $444,000 annually( of which $374,000 would be due to the change in rate on the junior subordinated notes) and a 100 basis point decrease in the rates would decrease our related interest expense by $444,000 annually( of which $374,000 would be due to the change in the rate on the junior subordinated notes).
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