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We are exposed to certain market risks, one of the most predominant of which is a change in interest rates.
−Removed: Increases in interest rates can result in increased interest expense under our Revolving Facility, 2023 Unsecured Term Loan and other variable rate debt to the extent we do not have interest rate swaps in place to hedge the effect of such rate increases.
+Added: Unless we have entered into interest rate swaps or other derivatives to fix the interest rate, increases in interest rates can result in increased interest expense under our 2021 Credit Facility, 2023 Unsecured Term Loan, certain mortgage loans and other debt that bears interest at variable rates.
Increases in interest rates can also result in increased interest expense when our fixed rate debt matures and needs to be refinanced.
−Removed: As of September 30, 2023, approximately $13.8 billion of these borrowings bore interest at fixed rates and therefore the fair value of these instruments is affected by changes in the market interest rates.
−Removed: The remaining $1.2 billion of outstanding borrowings bore interest at a variable rate.
−Removed: However, we entered into interest rate swaps, thus fixing the variability of the interest rate (See Note 7 to the Consolidated Financial Statements for information pertaining to interest rate contracts in place as of September 30, 2023 and their respective fair values).
−Removed: Therefore, as of September 30, 2023, we have no outstanding variable rate debt that has not been subject to an interest rate swap.
+Added: As of March 31, 2024, approximately $13.3 billion of our indebtedness bore interest at fixed rates and therefore the fair value of these instruments is not affected by changes in the market interest rates.
+Added: The remaining $2.1 billion of outstanding indebtedness bore interest at variable rates, including $1.2 billion under the 2023 Unsecured Term Loan and $900.0 million of secured debt.
+Added: However, we entered into interest rate swaps with notional amounts aggregating $2.1 billion, thus fixing the interest rates for all, or a portion of the applicable debt term (See Note 7 to the Consolidated Financial Statements for information pertaining to interest rate swap contracts in place as of March 31, 2024 and their respective fair values).
+Added: Therefore, as of March 31, 2024, we have no outstanding variable rate debt that has not been fixed through an interest rate swap.
+Added: The following table presents our aggregate debt obligations carrying value, estimated fair value and where applicable, the corresponding weighted-average GAAP interest rates sorted by maturity date as of March 31, 2024.
The table below does not include our unconsolidated joint venture debt.
For a discussion concerning our unconsolidated joint venture debt, including interest rate swaps, see Note 5 to the Consolidated Financial Statements and “ Item 2 — Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources—Investment in Unconsolidated Joint Ventures - Secured Debt.
−Removed: The following table presents our aggregate debt obligations carrying value, estimated fair value and where applicable, the corresponding weighted-average GAAP interest rates sorted by maturity date as of September 30, 2023.
2024 2025 2026 2027 2028 2029+ Total Estimated Fair Value
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Variable Rate (3,114) 297,113 (1,344) (1,344) 598,901 — 890,212 921,004
+Added: Subtotal $ (13,088) $ 498,426 $ (6,204) $ 2,295,776 $ 597,535 $ 995,922 $ 4,368,367 $ 3,935,382
Unsecured debt, net
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Variable Rate 1,199,430 — — — — — 1,199,430 1,198,951
+Added: Subtotal $ 1,190,858 $ 839,771 $ 1,991,162 $ 742,532 $ 993,755 $ 5,235,879 $ 10,993,957 $ 10,178,885
Total Debt $ 1,177,770 $ 1,338,197 $ 1,984,958 $ 3,038,308 $ 1,591,290 $ 6,231,801 $ 15,362,324 $ 14,114,267
−Removed: At September 30, 2023, the weighted-average coupon/stated rates on the fixed rate debt stated above was 3.84% per annum.
−Removed: At September 30, 2023, our outstanding variable rate debt totaled $1.2 billion and all of it was subject to interest rate swaps.
−Removed: At September 30, 2023, the coupon/stated rate on our variable rate debt, including the effect of the interest rate swaps, was approximately 5.592% per annum.
−Removed: If market interest rates on our variable rate debt had been 100 basis points greater, total interest expense would have increased approximately $3.0 million and $9.0 million for the three and nine months ended September 30, 2023, respectively.
+Added: At March 31, 2024, the weighted-average stated interest rates on the fixed rate debt stated above was 3.68% per annum.
+Added: At March 31, 2024, our outstanding variable rate debt totaled $2.1 billion, all of which was subject to interest rate swaps.
+Added: At March 31, 2024, the weighted-average stated interest rate on our variable rate debt, including the effect of the interest rate swaps, was 5.56% per annum.
+Added: If market interest rates on our variable rate debt had been 100 basis points greater, total interest expense would have increased approximately $5.3 million for the three months ended March 31, 2024.
Our use of derivative instruments also involves certain additional risks such as counterparty credit risk, the enforceability of hedging contracts and the risk that unanticipated and significant changes in interest rates will cause a significant loss of basis in the contract.
−Removed: We believe that there is a low likelihood that these counterparties will fail to meet our obligations and we minimize our exposure by limiting counterparties to major banks who meet established credit and capital guidelines.
+Added: We believe that there is a low likelihood that these counterparties will fail to meet their obligations and we minimize our exposure by limiting counterparties to major banks who meet established credit and capital guidelines.
There can be no assurance that we will adequately protect against the foregoing risks.
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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.