2 unchanged sentences
Our exposure to market risk for changes in interest rates relates primarily to refinancing long-term fixed rate obligations, the opportunity cost of fixed rate obligations in a falling interest rate environment and our variable rate line of credit.
−Removed: Following the prepayment of the Yale West mortgage note, we are no longer exposed to interest rate risk related to mortgages.
−Removed: The table below presents principal, interest and related weighted average fair value interest rates by year of maturity, with respect to debt outstanding on September 30, 2020 (in thousands):
−Removed: 2020 2021 2022 2023 2024 Thereafter (5)
−Removed: Total Fair Value
+Added: The table below presents principal, interest and related weighted average interest rates by year of maturity, with respect to debt outstanding on March 31, 2021 (in thousands):
+Added: 2021 2022 2023 2024 2025 Thereafter Total Fair Value
Unsecured fixed rate debt (1)
Principal $ — $ 300,000 $ 250,000 $ — $ — $ 400,000 $ 950,000 $ 974,595
−Removed: $ — $ 150,000 $ 450,000 $ 250,000 $ — $ 50,000 $ 900,000 $ 921,394
Interest payments $ 26,997 $ 37,218 $ 22,177 $ 17,995 $ 17,995 $ 87,364 $ 209,746
4 unchanged sentences
______________________________
−Removed: (1) Includes $150.0 million and $250.0 million term loans with floating interest rates.
−Removed: The interest rates on the $150.0 million and $250.0 million term loans are effectively fixed by interest rate swap arrangements at 2.7% and 2.9%, respectively.
−Removed: (2) Maturity date for the $150.0 million term loan of May 2022 assumes election of option for an additional one-year period.
−Removed: (3) In April 2020, WashREIT prepaid without penalty the $250.0 million of its 4.95% Senior Notes that were scheduled to mature in October 2020 using borrowings on our Revolving Credit Facility.
+Added: (1) Includes $250.0 million term loan with a floating interest rate.
+Added: The interest rate on the $250.0 million term loan is effectively fixed by interest rate swap arrangements at 2.9%.
(2) Maturity date on the unsecured credit facility of 2023 assumes the election of two additional six-month options.
−Removed: (5) The Green Bonds are not included in this table as the closing and funding of the Green Bonds has not yet occurred.
−Removed: It is expected to occur no later than December 29, 2020.
−Removed: Following the closing and funding of the Green Bonds, and pending allocation to such Eligible Green Projects, WashREIT expects to repay $300 million of existing term loans maturing in 2021 and 2022 and to use the balance to pay down amounts due under the revolving credit facility and will have no debt maturing until the fourth quarter of 2022.
We enter into interest rate swap arrangements designated and qualifying as cash flow hedges to reduce our exposure to the variability in future cash flows attributable to changes in interest rates.
2 unchanged sentences
As part of our ongoing control procedures, we monitor the credit ratings of counterparties and our exposure to any single entity, thus minimizing our credit risk concentration.
−Removed: The following table sets forth information pertaining to interest rate swap contracts in place as of September 30, 2020 and December 31, 2019 and their respective fair values (in thousands):
+Added: The following table sets forth information pertaining to interest rate swap contracts in place as of March 31, 2021 and December 31, 2020 and their respective fair values (in thousands):
Notional Amount Floating Index Rate Fair Value as of:
−Removed: Fixed Rate Effective Date Expiration Date September 30, 2020 December 31, 2019
−Removed: $ 75,000 1.619% One-Month USD-LIBOR 10/15/2015 3/15/2021 $ (501) $ (28)
−Removed: 75,000 1.626% One-Month USD-LIBOR 10/15/2015 3/15/2021 (504) (34)
+Added: Fixed Rate Effective Date Expiration Date March 31, 2021 December 31, 2020
$ 100,000 1.205% One-Month USD-LIBOR 3/31/2017 7/21/2023 $ (2,173) $ (2,671)
4 unchanged sentences
25,000 2.610% One-Month USD-LIBOR 6/29/2018 7/21/2023 (1,352) (1,561)
−Removed: 50,000 1.680% Three-Month USD-LIBOR 4/1/2020 4/1/2030 — 844
−Removed: 50,000 1.680% Three-Month USD-LIBOR 4/1/2020 4/1/2030 — 844
−Removed: 50,000 1.718% Three-Month USD-LIBOR 4/1/2020 4/1/2030 — 1,018
−Removed: 50,000 1.718% Three-Month USD-LIBOR 4/1/2020 4/1/2030 — 1,018
$ 250,000 $ (8,674) $ (10,255)
−Removed: In September 2020, in conjunction with the entry into the note purchase agreement to issue the Green Bonds, we terminated $200.0 million of four forward interest rate swap arrangements that we had entered into in November 2019 and which were effective as of April 1, 2020, designated as cash flow hedges of the interest rate variability on the issuance of unsecured notes.
−Removed: On October 2, 2020, we paid the $20.4 million liability associated with the termination of the forward swaps.
We enter into debt obligations primarily to support general corporate purposes including acquisition of real estate properties, capital improvements and working capital needs.
−Removed: As the majority of our outstanding debt is long-term, fixed rate debt, other than the prepayment of the Yale West mortgage note that eliminated our exposure to interest rate risk in connection with mortgages, our interest rate risk has not changed significantly from what was disclosed in our Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC on February 19, 2020, as amended by Amendment No.
−Removed: 1 to the Annual Report on Form 10-K, filed on March 6, 2020.
+Added: As the majority of our outstanding debt is long-term, fixed rate debt, our interest rate risk has not changed significantly from what was disclosed in our Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on February 16, 2021.
See “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources – Debt Financing.”
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.