11 unchanged sentences
In general, we seek to match the interest rate characteristics of our investments with the interest rate characteristics of any related financing obligations such as repurchase agreements, bank credit facilities, term loans, revolving facilities and securitizations.
−Removed: As of September 30, 2021, we had an aggregate of $1.6 billion of variable rate debt, and therefore, we are exposed to interest rate changes in LIBOR.
−Removed: As of September 30, 2021, an increase or decrease of 50 basis points in interest rates would result in an increase or decrease in interest expense of $8.2 million per year.
−Removed: As of September 30, 2021, we had five interest rate cap agreements outstanding, which mature on various dates from May 2022 through July 2023, with an aggregate notional amount of $752.6 million and an aggregate fair value of the net derivative asset of $51,000.
−Removed: The fair value of these interest rate cap agreements is dependent upon existing market interest rates.
−Removed: As of September 30, 2021, an increase of 50 basis points in interest rates would result in a change of $166,000 to the fair value of the
−Removed: net derivative asset, resulting in a net derivative asset of $217,000.
−Removed: A decrease of 50 basis points in interest rates would result in a $45,000 change to the fair value of the net derivative asset, resulting in a net derivative asset of $6,000.
−Removed: As the information presented above includes only those exposures that existed as of September 30, 2021, it does not consider exposures or positions arising after that date.
+Added: As of March 31, 2022, we had an aggregate of $2.9 billion of variable rate debt, excluding any debt subject to interest rate swap agreements and interest rate cap agreements, and therefore, we are exposed to interest rate changes in LIBOR.
+Added: As of March 31, 2022, an increase or decrease of 50 basis points in interest rates would result in an increase or decrease in interest expense of $14.5 million per year.
+Added: As of March 31, 2022, we had three interest rate swap agreements and five interest rate cap agreements outstanding, which mature on various dates from May 2022 through July 2023, with an aggregate notional amount of $908.4 million and an aggregate fair value of the net derivative asset of $379,000.
+Added: The fair value of these interest rate swap agreements and interest rate cap agreements is dependent upon existing market interest rates and spreads.
+Added: As of March 31, 2022, an increase of 50 basis points in interest rates would result in a change of $1.3 million to the fair value of the net derivative asset, resulting in a net derivative asset of $1.7 million.
+Added: A decrease of 50 basis points in interest rates would result in a $946,000 change to the fair value of the net derivative asset, resulting in a net derivative liability of $567,000.
+Added: As the information presented above includes only those exposures that existed as of March 31, 2022, it does not consider exposures or positions arising after that date.
The information presented herein has limited predictive value.
2 unchanged sentences
In July 2017, the Financial Conduct Authority (“FCA”) that regulates LIBOR announced it intends 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 the Secured Overnight Financing Rate (“SOFR”) as its preferred alternative to U.S.
+Added: As a result, the Federal Reserve Board and the Federal Reserve Bank of New York organized the Alternative Reference Rates Committee which identified the SOFR as its preferred alternative to U.S.
dollar LIBOR in derivatives and other financial contracts.
−Removed: In March 2021, the FCA confirmed its intention to cease publishing one week and two-month LIBOR after December 31, 2021 and all remaining LIBOR after June 30, 2023.
+Added: On December 31, 2021, the FCA ceased publishing one week and two-month LIBOR, and the FCA intends to cease publishing all remaining LIBOR after June 30, 2023.
This announcement has several implications, including setting the spread that may be used to automatically convert contracts from LIBOR to SOFR.
−Removed: Additionally, banking regulators are encouraging banks to discontinue new LIBOR debt issuances by December 31, 2021.
The Company anticipates that LIBOR will continue to be available at least until June 30, 2023.
2 unchanged sentences
In addition, uncertainty about the extent and manner of future changes may result in interest rates and/or payments that are higher or lower than if LIBOR were to remain available in its current form.
−Removed: We have interest rate cap agreements maturing on various dates from May 2022 through July 2023, as further discussed above, that are indexed to LIBOR.
+Added: We have interest rate swap agreements and interest rate cap agreements maturing on various dates from May 2022 through July 2023, as further discussed above, that are indexed to LIBOR.
As such, we are monitoring and evaluating the related risks, which include interest on loans or amounts received and paid on derivative instruments.
−Removed: These risks arise in connection with transitioning contracts to a new alternative rate, including any resulting value transfer that may occur.
+Added: These risks arise in connection with
+Added: transitioning contracts to a new alternative rate, including any resulting value transfer that may occur.
The value of loans or derivative instruments tied to LIBOR could also be impacted if LIBOR is limited or discontinued.
7 unchanged sentences
The introduction of an alternative rate also may create additional basis risk and increased volatility as alternative rates are phased in and utilized in parallel with LIBOR.
−Removed: Adjustments to systems and mathematical models to properly process and account for alternative rates will be required, which may strain the model risk management and information technology functions and result in substantial incremental costs for the Company.
Concentrations of credit risk arise when a number of tenants are engaged in similar business activities, or activities in the same geographic region, or have similar economic features that would cause their ability to meet contractual obligations, including those to us, to be similarly affected by changes in economic conditions.
3 unchanged sentences
payment history;
−Removed: credit status and change in status, including the impact of the COVID-19 pandemic (credit ratings for public companies are used as a
−Removed: primary metric);
+Added: credit status and change in status, including the impact of the COVID-19 pandemic (credit ratings for public companies are used as a primary metric);
change in tenant space needs ( i.e.
8 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.