2 unchanged sentences
We manage our exposure to this market risk by monitoring available financing alternatives.
−Removed: Our strategy to manage exposure to changes in interest rates has not materially changed since December 31, 2021.
Other than as described below, we do not currently foresee any significant changes in our exposure to fluctuations in interest rates or in how we manage this exposure in the near future.
−Removed: Although we have no present plans to do so, we may in the future enter into hedge arrangements or derivative contracts from time to time to mitigate our exposure to changes in interest rates.
+Added: We may in the future enter into hedge arrangements or derivative contracts from time to time to mitigate our exposure to changes in interest rates.
Fixed Rate Debt
−Removed: At September 30, 2022, our outstanding fixed rate debt included the following (dollars in thousands):
+Added: At March 31, 2023, our outstanding fixed rate debt included the following (dollars in thousands):
Annual Annual
10 unchanged sentences
14,605 6.640 % 970 2023 Monthly
−Removed: Mortgage note 14,853 6.640 % 986 2023 Monthly
−Removed: Mortgage note 10,060 4.444 % 447 2043 Monthly
+Added: Mortgage note (3)
+Added: 9,934 4.444 % 441 2043 Monthly
$ 2,374,539 $ 142,974
2 unchanged sentences
This table does not include obligations under finance leases.
−Removed: (2) We repaid this mortgage in October 2022.
+Added: (2) We prepaid this mortgage in April 2023.
+Added: (3) Effective July 7, 2023, the annual interest rate will increase to 6.444%.
No principal repayments are due under our unsecured notes until maturity.
4 unchanged sentences
increases in market interest rates decrease the fair value of our fixed rate debt, while decreases in market interest rates increase the fair value of our fixed rate debt.
−Removed: Federal Reserve recently raised interest rates in an effort to combat high inflation and may continue to do so.
−Removed: Based on the balances outstanding at September 30, 2022, and discounted cash flows analyses through the respective maturity dates, and assuming no other changes in factors that may affect the fair value of our fixed rate debt obligations, a hypothetical immediate one percentage point increase in interest rates would change the fair value of those obligations by approximately $66.0 million.
+Added: Federal Reserve has raised interest rates multiple times since the beginning of 2022 in an effort to combat high inflation and may continue to do so.
Our senior unsecured notes and certain of our mortgages contain provisions that allow us to make repayments earlier than the stated maturity date.
In some cases, we are not allowed to make early repayment prior to a cutoff date and we are generally allowed to make prepayments only at a premium equal to a make whole amount, as defined, which is generally designed to preserve a stated yield to the noteholder.
−Removed: In the past, we have repurchased and retired some of our outstanding debt and we may do so again in the future.
+Added: In the past, we have repurchased and retired some of our outstanding debt and we may
+Added: do so again in the future.
These prepayment rights and our ability to repurchase and retire outstanding debt may afford us opportunities to mitigate the risk of refinancing our debts at maturity at higher rates by refinancing prior to maturity.
Floating Rate Debt
−Removed: At September 30, 2022, our floating rate debt obligations consisted of $700.0 million outstanding under our revolving credit facility.
−Removed: Our revolving credit facility matures in January 2024.
−Removed: Generally, no principal repayments are required under our revolving credit facility prior to maturity, and we can borrow, repay and re-borrow funds available, subject to conditions, at any time without penalty.
−Removed: Borrowings under our revolving credit facility are in U.S.
−Removed: dollars and interest is required to be paid at the rate of LIBOR plus a premium that is subject to adjustment based upon changes to our credit ratings.
+Added: At March 31, 2023, our floating rate debt obligations consisted of $450.0 million outstanding under our credit facility.
+Added: Our credit facility matures in January 2024.
+Added: Borrowings under our credit facility are in U.S.
+Added: dollars and interest is required to be paid at the rate of SOFR plus a premium that is subject to adjustment based upon changes to our credit ratings.
Accordingly, we are exposed to interest rate risk for changes in U.S.
−Removed: dollar based short term rates, specifically LIBOR, and to changes in our credit ratings.
−Removed: In addition, upon renewal or refinancing of our revolving credit facility, we are vulnerable to increases in interest rate premiums due to
−Removed: market conditions or our perceived credit characteristics.
+Added: dollar based short term rates and to changes in our credit ratings.
+Added: In addition, upon any potential renewal or refinancing of our credit facility, we are vulnerable to increases in interest premiums due to market conditions or our perceived credit characteristics.
Generally, a change in interest rates would not affect the value of our floating rate debt but would affect our operating results.
−Removed: The following table presents the impact a one percentage point increase in interest rates would have on our annual floating rate interest expense as of September 30, 2022 (dollars in thousands except per share amounts):
+Added: The following table presents the impact a one percentage point increase in interest rates would have on our annual floating rate interest expense as of March 31, 2023 (dollars in thousands except per share amounts):
Impact of Changes in Interest Rates
2 unchanged sentences
Floating Rate Debt Expense Per Year Per Share Impact (2)
−Removed: At September 30, 2022 5.62 % $ 700,000 $ 39,340 $ 0.17
+Added: At March 31, 2023 7.82 % $ 450,000 $ 35,190 $ 0.15
One percentage point increase 8.82 % $ 450,000 $ 39,690 $ 0.17
−Removed: (1) Interest rate under our revolving credit facility as of September 30, 2022.
−Removed: (2) Based on weighted average number of shares outstanding (diluted) for the nine months ended September 30, 2022.
+Added: (1) Interest rate under our credit facility as of March 31, 2023.
+Added: (2) Based on weighted average number of shares outstanding (basic and diluted) for the three months ended March 31, 2023.
The foregoing table shows the impact of an immediate increase in floating interest rates.
If interest rates were to increase gradually over time, the impact would be spread over time.
−Removed: Our exposure to fluctuations in floating interest rates will increase or decrease in the future with increases or decreases in the amount of our borrowings outstanding under our revolving credit facility or other floating rate debt.
−Removed: LIBOR Phase Out
−Removed: We are required to pay interest on borrowings under our revolving credit facility at floating rates based on LIBOR.
−Removed: LIBOR has been phased out for new contracts and is expected to be phased out for pre-existing contracts by June 30, 2023.
−Removed: The determination of interest under our revolving credit facility will be revised as provided under our credit agreement or amended as necessary to provide for an alternative interest rate based on SOFR upon the cessation of LIBOR.
−Removed: This may result in our paying increased interest amounts.
+Added: Our exposure to fluctuations in floating interest rates will increase or decrease in the future with increases or decreases in the amount of our borrowings outstanding under our credit facility or other floating rate debt.
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.