QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: Interest Rate Risk.
−Removed: We are exposed to risks associated with market changes in interest rates through our borrowing arrangements and investments.
+Added: Interest Rate Risk — We are exposed to risks associated with market changes in interest rates through our borrowing arrangements and investments.
In particular, our Revolving Credit Facility exposes us to variability in interest payments due to changes in SOFR interest rates.
We manage our exposure to this market risk by monitoring available financing alternatives.
−Removed: Our mortgages and promissory notes require principal and interest payments through maturity pursuant to amortization schedules.
+Added: Our mortgages and promissory note require principal and interest payments through maturity pursuant to amortization schedules.
Our mortgages generally contain provisions that allow us to make repayments earlier than the stated maturity date.
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These prepayment rights may afford us opportunities to mitigate the risk of refinancing our debts at maturity at higher rates by refinancing prior to maturity.
−Removed: As of September 30, 2022, there was no outstanding debt under our Amended Credit Facility.
−Removed: We have outstanding indebtedness under mortgage loans insured with HUD and two promissory notes to third parties of $157.3 million all of which are at fixed interest rates.
On April 8, 2022, we entered into the Amended Credit Agreement, with a revolving line of credit of up to $600.0 million in aggregate principal amount.
−Removed: The Amended Credit Agreement amended the reference for borrowings under the Revolving Credit Facility rate from LIBOR to SOFR.
−Removed: We have no outstanding borrowings under our Amended Credit Facility as of October 24, 2022.
−Removed: Our cash and cash equivalents as of September 30, 2022 consisted of bank term deposits, money market funds and U.S.
+Added: The Amended Credit Agreement amended the reference rate for borrowings under the Revolving Credit Facility rate from LIBOR to SOFR.
+Added: We have no outstanding borrowings under our Amended Credit Facility as of March 31, 2023 and through the filing date of this report.
+Added: We have outstanding indebtedness under mortgage loans insured with HUD and one promissory note to third parties of $155.3 million, all of which are at fixed interest rates.
+Added: Our cash and cash equivalents as of March 31, 2023 consisted of bank term deposits, money market funds and U.S.
Treasury bill related investments.
−Removed: In addition, as of September 30, 2022, we held debt security investments of approximately $53.9 million which were split between AA, A, and BBB rated securities.
−Removed: We believe our debt security investments that were in an unrealized loss position as of September 30, 2022 were not other-than-temporarily impaired, nor has any event occurred subsequent to that date that would indicate any other-than-temporary impairment.
+Added: In addition, as of March 31, 2023, we held investments of approximately $102.2 million.
+Added: We believe our investments that were in an unrealized loss position as of March 31, 2023 do not require an allowance for expected credit losses, nor has any event occurred subsequent to that date that would indicate so.
Our market risk exposure is interest income sensitivity, which is affected by changes in the general level of U.S.
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Accordingly, we would not expect our operating results or cash flows to be affected to any significant degree by the effect of a sudden change in market interest rates on our securities portfolio.
−Removed: The above only incorporates those exposures that exist as of September 30, 2022 and does not consider those exposures or positions which could arise after that date.
+Added: The above only incorporates those exposures that exist as of March 31, 2023 and does not consider those exposures or positions which could arise after that date.
If we diversify our investment portfolio into securities and other investment alternatives, we may face increased risk and exposures as a result of interest risk and the securities markets in general.
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.