4 unchanged sentences
Floating Rate Debt
−Removed: As of September 30, 2024, our outstanding floating rate debt consisted of the following:
+Added: As of March 31, 2025, our outstanding floating rate debt consisted of the following:
Annual Annual Interest
6 unchanged sentences
(1) The annual interest rate is the rate stated in the applicable contract, as adjusted by our interest rate caps.
−Removed: The ILPT Floating Rate Loan was subject to three, one year extension options as of September 30, 2024, and requires that interest be paid at an annual rate of SOFR plus a weighted average premium of 3.93%.
−Removed: The Mountain Floating Rate Loan is subject to two remaining one year extension options, and requires that interest be paid at an annual rate of SOFR plus a premium of 2.77%.
+Added: The ILPT Floating Rate Loan has two remaining one-year extension options and requires that interest be paid at an annual rate of SOFR plus a weighted average premium of 3.93%.
+Added: The Mountain Floating Rate Loan has one remaining one-year extension option and requires that interest be paid at an annual rate of SOFR plus a premium of 2.77%.
We are vulnerable to changes in the U.S.
dollar based on short term interest rates, specifically SOFR.
−Removed: In conjunction with these borrowings, to hedge our exposure to risks related to changes in SOFR, we purchased interest rate caps with a SOFR strike rate equal to 2.25% for the ILPT Floating Rate Loan and 3.04% for the Mountain Floating Rate Loan.
−Removed: In October 2024, we exercised the first of our three, one year extension options for the maturity date of this loan.
−Removed: In connection with the exercise of the extension, we purchased a one year interest rate cap for $16,975 with a SOFR strike rate equal to 2.78%, which replaced the previous interest rate cap with a SOFR strike rate equal to 2.25%.
+Added: In conjunction with these borrowings, to hedge our exposure to risks related to changes in SOFR and as required under the applicable loan agreements, we purchased an interest rate cap with a current SOFR strike rate equal to 2.78% for the ILPT Floating Rate Loan and our consolidated joint venture purchased an interest rate cap with a current SOFR strike rate equal to 3.10% for the Mountain Floating Rate Loan.
In addition, upon renewal or refinancing of these obligations, we are vulnerable to increases in interest rate premiums, including increases in the cost of replacement interest rate caps, due to market conditions and our perceived credit risk.
−Removed: 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 September 30, 2024, including the impact of our interest rate caps:
+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 March 31, 2025, including the impact of our interest rate caps:
Impact of an Increase in Interest Rates
4 unchanged sentences
Debt Per Year Share Impact (1)
−Removed: At September 30, 2024
+Added: At March 31, 2025
6.35 % $ 2,635,000 $ 167,340 $ (2.54)
1 unchanged sentence
6.35 % $ 2,635,000 $ 167,340 $ (2.54)
−Removed: (1) Based on the diluted weighted average common shares outstanding for the three months ended September 30, 2024.
+Added: (1) Based on the diluted weighted average common shares outstanding for the three months ended March 31, 2025.
(2) A one percentage point increase in interest rates would not have an impact on annual total interest expense for our floating rate debt because current interest rates exceed the strike rates of our interest rate caps.
−Removed: However, a one percentage point increase in our weighted average interest rate percentage of our floating rate loan debt at September 30, 2024 would result in a weighted average interest rate of 6.98%, total interest expense per year of $186,568 and a decrease in annual earnings per share of $2.84.
−Removed: Tabl e of Contents
+Added: However, a one percentage point increase in our weighted average interest rate of our floating rate loan debt to 7.35% at March 31, 2025 would result in total floating rate interest expense per year of $196,381 and a decrease in annual earnings per share of $2.98.
The foregoing table shows the impact of an immediate one percentage point change in floating interest rates, including the impact of our interest rate caps.
2 unchanged sentences
Fixed Rate Debt
−Removed: There have been no material changes to market interest rate risks associated with our fixed rate debt during the three and nine months ended September 30, 2024.
+Added: There have been no material changes to market interest rate risks associated with our fixed rate debt during the three months ended March 31, 2025.
For a discussion of market interest rate risks associated with our fixed rate debt, see “Quantitative and Qualitative Disclosures About Market Risk” included in Part II, Item 7A of our 2024 Annual Report.
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.