4 unchanged sentences
Although we seek to mitigate this risk by structuring such provisions of our loans and leases to contain a minimum interest rate or escalation rate, as applicable, these features do not eliminate this risk.
−Removed: To that end, we have entered into derivative contracts to cap interest rates for our variable rate notes payable, and we have entered into interest rate swaps whereby we pay a fixed interest rate to our respective counterparty, and receive one month LIBOR in return.
+Added: To that end, we have entered into derivative contracts to cap interest rates for our variable rate notes payable, and we have entered into interest rate swaps whereby we pay a fixed interest rate to our respective counterparty, and receive SOFR in return.
For details regarding our rate cap agreements and our interest rate swap agreements see Note 6 – Mortgage Notes Payable and Credit Facility of the accompanying consolidated financial statements .
To illustrate the potential impact of changes in interest rates on our net income for the year ended December 31, 2022, we have performed the following analysis, which assumes that our balance sheet remains constant and that no further actions beyond a minimum interest rate or escalation rate are taken to alter our existing interest rate sensitivity.
−Removed: The following table summarizes the annual impact of a 1%, 2% and 3% increase in the one month LIBOR as of December 31, 2021.
−Removed: As of December 31, 2021, our effective LIBOR was 0.10%.
−Removed: Given that a 1%, 2% or 3% decrease in LIBOR would result in a negative rate, the impact of this fluctuation is not presented below (dollars in thousands).
−Removed: Interest Rate Change Increase to Interest Expense Net decrease to Net Income
−Removed: 1% Increase to LIBOR $ 2,787 $ (2,787)
−Removed: 2% Increase to LIBOR 5,221 (5,221)
−Removed: 3% Increase to LIBOR 6,493 (6,493)
+Added: The following table summarizes the annual impact of a 1%, 2% and 3% increase, and a 1%, 2% and 3% decrease in SOFR as of December 31, 2022.
+Added: As of December 31, 2022, our effective average SOFR was 4.30%.
+Added: The impact of these fluctuations is presented below (dollars in thousands).
+Added: Interest Rate Change Decrease to Interest Expense Net increase to Net Income
+Added: 3% Decrease to SOFR $ (7,551) $ 7,551
+Added: 2% Decrease to SOFR (3,513) 3,513
+Added: 1% Decrease to SOFR (236) 236
+Added: 1% Increase to SOFR 236 (236)
+Added: 2% Increase to SOFR 471 (471)
+Added: 3% Increase to SOFR 707 (707)
As of December 31, 2022, the fair value of our mortgage debt outstanding was $333.1 million.
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.