5 unchanged sentences
Fixed Rate Debt
−Removed: At March 31, 2022, our outstanding fixed rate debt consisted of the following mortgage notes:
+Added: At June 30, 2022, our outstanding fixed rate debt consisted of the following mortgage notes:
Annual Annual Interest
31 unchanged sentences
In accordance with GAAP, our carrying values and recorded interest expense may differ from these amounts because of market conditions at the time we assumed or issued this debt.
−Removed: (2) Our consolidated joint venture, in which we have a 61% interest, assumed MNR’s existing mortgages secured by 11 properties in aggregate.
+Added: (2) Our consolidated joint venture, in which we have a 61% equity interest, assumed these former MNR mortgages, which are secured by 11 properties in aggregate.
Our $650,000 and $700,000 mortgage notes require interest only payments 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: Based on the balance outstanding at March 31, 2022 and discounted cash flow analyses through the maturity date, and assuming no other changes in factors that may affect the fair value of our fixed rate debt obligation, a hypothetical immediate one percentage point change in the interest rates would change the fair value of this obligation by approximately $55,883.
+Added: Federal Reserve recently raised interest rates in an effort to combat inflation and may continue to do so.
+Added: Based on the balance outstanding at June 30, 2022 and discounted cash flow analyses through the maturity date, and assuming no other changes in factors that may affect the fair value of our fixed rate debt obligation, a hypothetical immediate one percentage point change in the interest rates would change the fair value of this obligation by approximately $106,961.
Floating Rate Debt
−Removed: At March 31, 2022, our outstanding floating rate debt consisted of the following:
+Added: At June 30, 2022, our outstanding floating rate debt consisted of the following:
Annual Annual Interest
8 unchanged sentences
(2) The Floating Rate Loan matures in March 2024, subject to three, one year extension options.
−Removed: At March 31, 2022, our aggregate floating rate debt was $2,785,158, consisting of the $1,400,000 outstanding principal amount of the Floating Rate Loan secured by 82 properties owned by our consolidated joint venture and the $1,385,158 outstanding principal amount of the Bridge Loan.
+Added: At June 30, 2022, our aggregate floating rate debt was $2,785,158, consisting of the $1,400,000 outstanding principal amount of the Floating Rate Loan secured by 82 properties owned by our consolidated joint venture and the $1,385,158 outstanding principal amount of the Bridge Loan.
The Bridge Loan matures on February 24, 2023 and requires that interest be paid at an annual rate of SOFR plus a premium of 1.75% under the loan agreement and a premium of 8.00% under the mezzanine loan agreement.
The Floating Rate Loan matures on March 9, 2024, subject to three, one year extension options, and requires that interest be paid at an annual rate of SOFR plus a premium of 2.77% .
−Removed: In conjunction with these borrowings, to hedge our exposure to risks related to changes in SOFR rates, we purchased interest rate caps with a strike rate of 2.70% for the Bridge Loan and 3.40% for the Floating Rate Loan.
+Added: In conjunction with these borrowings, to hedge our exposure to risks related to changes in SOFR rates, we purchased interest rate caps with a SOFR strike rate of 2.70% for the Bridge Loan and 3.40% for the Floating Rate Loan.
However, we are vulnerable to changes in the U.S.
2 unchanged sentences
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 approximate impact a one percentage point increase in interest rates would have on our annual floating rate interest expense at March 31, 2022:
+Added: The following table presents the approximate impact a one percentage point increase in interest rates would have on our annual floating rate interest expense at June 30, 2022:
Impact of an Increase in Interest Rates
2 unchanged sentences
Per Year Debt Per Year Share Impact (1)
−Removed: At March 31, 2022 3.13 % $ 2,785,158 $ 87,296 $ 1.34
+Added: At June 30, 2022 4.12 % $ 2,785,158 $ 114,799 $ 1.76
One percentage point increase 5.12 % $ 2,785,158 $ 142,651 $ 2.19
−Removed: (1) Based on the diluted weighted average common shares outstanding for the three months ended March 31, 2022.
+Added: (1) Based on the diluted weighted average common shares outstanding for the six months ended June 30, 2022.
The foregoing tables show the impact of an immediate one percentage point change in floating interest rates.
2 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.