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 one month 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 condensed consolidated financial statements.
−Removed: To illustrate the potential impact of changes in interest rates on our net income for the nine months ended September 30, 2022, we have performed the following analysis, which assumes that our condensed consolidated balance sheets remain 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, and a 1% and 2% decrease in SOFR as of September 30, 2022.
−Removed: As of September 30, 2022, our effective average SOFR was 2.98%.
−Removed: Given that a 3% decrease in SOFR would result in a negative rate, the impact of this fluctuation is not presented below (dollars in thousands).
+Added: To illustrate the potential impact of changes in interest rates on our net income for the three months ended March 31, 2023, we have performed the following analysis, which assumes that our condensed consolidated balance sheets remain constant and that no further actions beyond a minimum interest rate or escalation rate are taken to alter our existing interest rate sensitivity.
+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 March 31, 2023.
+Added: As of March 31, 2023, our effective average SOFR was 4.87%.
+Added: The impact of these fluctuations is presented below (dollars in thousands).
Interest Rate Change (Decrease) increase to Interest
2 unchanged sentences
2% Decrease to SOFR (532) 532
+Added: 1% Decrease to SOFR (266) 266
1% Increase to SOFR 266 (266)
1 unchanged sentence
3% Increase to SOFR 798 (798)
−Removed: As of September 30, 2022, the fair value of our mortgage debt outstanding was $346.8 million.
+Added: As of March 31, 2023, the fair value of our mortgage debt outstanding was $329.6 million.
Interest rate fluctuations may affect the fair value of our debt instruments.
−Removed: If interest rates on our debt instruments, using rates at September 30, 2022, had been one percentage point higher or lower, the fair value of those debt instruments on that date would have decreased or increa sed by $11.5 million and $12.3 million, respecti vely.
−Removed: The amount outstanding under the Credit Facility approximates fair value as of September 30, 2022.
−Removed: In the future, we may be exposed to additional effects of interest rate changes, primarily as a result of our Revolver, Term Loan A, Term Loan B, and Term Loan C, or long-term mortgage debt, which we use to maintain liquidity and fund expansion of our real estate investment portfolio and operations.
+Added: If interest rates on our debt instruments, using rates at March 31, 2023, had been one percentage point higher or lower, the fair value of those debt instruments on that date would have decreased or increased by $10.4 million and $11.1 million, respectively.
+Added: The amount outstanding under the Credit Facility approximates fair value as of March 31, 2023.
+Added: In the future, we may be exposed to additional effects of interest rate changes, primarily as a result of our Revolver, Term Loan, or long-term mortgage debt, which we use to maintain liquidity and fund expansion of our real estate investment portfolio and operations.
Our interest rate risk management objectives are to limit the impact of interest rate changes on earnings and cash flows and to lower overall borrowing costs.
4 unchanged sentences
We will not enter into derivative or interest rate transactions for speculative purposes.
−Removed: In addition to anticipated changes in interest rates, the value of our real estate is subject to fluctuations based on changes in local and regional economic conditions and changes in the creditworthiness of lessees and borrowers, all of which may affect our ability to refinance debt, if necessary.
+Added: In addition to changes in interest rates, the value of our real estate is subject to fluctuations based on changes in local and regional economic conditions and changes in the creditworthiness of lessees and borrowers, all of which may affect our ability to refinance debt, if necessary.
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.