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 March 31, 2023, we had an aggregate of $3.2 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 and SOFR.
−Removed: As of March 31, 2023, an increase or decrease of 50 basis points in interest rates would result in an increase or decrease in interest expense of $15.9 million per year.
−Removed: As of March 31, 2023, we had two interest rate cap agreements outstanding, which had maturity dates ranging from July 2023 through October 2023, with an aggregate notional amount of $712.0 million and an aggregate fair value of the net derivative asset of $3.1 million.
+Added: As of June 30, 2023, we had an aggregate of $3.2 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 and SOFR.
+Added: As of June 30, 2023, an increase or decrease of 50 basis points in interest rates would result in an increase or decrease in interest expense of $16.2 million per year.
+Added: As of June 30, 2023, we had two interest rate cap agreements outstanding, which had maturity dates ranging from July 2023 through October 2023, with an aggregate notional amount of $712.0 million and an aggregate fair value of the net
+Added: derivative asset of $641,000.
The fair value of these interest rate cap agreements is dependent upon existing market interest rates and spreads.
−Removed: As of March 31, 2023, an increase of 50 basis points in interest rates would result in a change of $944,000 to the fair value of the net derivative asset, resulting in a net derivative asset of $4.0 million.
−Removed: A decrease of 50 basis points in interest rates would result in a $914,000 change to the fair value of the net derivative asset, resulting in a net derivative asset of $2.2 million.
−Removed: As the information presented above includes only those exposures that existed as of March 31, 2023, it does not consider exposures or positions arising after that date.
+Added: As of June 30, 2023, an increase of 50 basis points in interest rates would result in a change of $78,000 to the fair value of the net derivative asset, resulting in a net derivative asset of $719,000.
+Added: A decrease of 50 basis points in interest rates would result in a $76,000 change to the fair value of the net derivative asset, resulting in a net derivative asset of $565,000.
+Added: As the information presented above includes only those exposures that existed as of June 30, 2023, it does not consider exposures or positions arising after that date.
The information presented herein has limited predictive value.
4 unchanged sentences
dollar LIBOR in derivatives and other financial contracts.
−Removed: 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.
−Removed: This announcement has several implications, including setting the spread that may be used to automatically convert contracts from LIBOR to SOFR.
−Removed: The Company anticipates that LIBOR will continue to be available at least until June 30, 2023.
Any changes adopted by FCA or other governing bodies in the method used for determining LIBOR may result in a sudden or prolonged increase or decrease in reported LIBOR.
1 unchanged sentence
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 an interest rate cap agreement maturing in July 2023, as further discussed above, that is indexed to LIBOR.
−Removed: 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.
−Removed: The value of loans or derivative instruments tied to LIBOR could also be impacted if LIBOR is limited or discontinued.
−Removed: For some instruments, the method of transitioning to an alternative reference rate may be challenging, especially if we cannot agree with the respective counterparty about how to make the transition.
−Removed: In addition, we
−Removed: have certain note on note financing and repurchase facilities as of March 31, 2023 that are in the process of being transitioned from LIBOR to SOFR.
If a contract is not transitioned to an alternative rate and LIBOR is discontinued, the impact on our contracts is likely to vary by contract.
If LIBOR is discontinued or if the methods of calculating LIBOR change from their current form, interest rates on our current or future indebtedness may be adversely affected.
−Removed: While we expect LIBOR to be available in substantially its current form until at least the end of June 30, 2023, it is possible that LIBOR will become unavailable prior to that point.
−Removed: This could result, for example, if sufficient banks decline to make submissions to the LIBOR administrator.
−Removed: In that case, the risks associated with the transition to an alternative reference rate will be accelerated and magnified.
Alternative rates and other market changes related to the replacement of LIBOR, including the introduction of financial products and changes in market practices, may lead to risk modeling and valuation challenges, such as adjusting interest rate accrual calculations and building a term structure for an alternative rate.
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.
+Added: As of June 30, 2023, we had an interest rate cap agreement that was indexed to LIBOR.
+Added: Subsequent to June 30, 2023, the interest rate cap agreement matured.
+Added: Additionally, subsequent to June 30, 2023, all outstanding variable rate debt indexed to LIBOR was transitioned to SOFR.
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.
14 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.