Quantitative and Qualitative Disclosures about Market Risk
−Removed: We are exposed to interest rate changes primarily as a result of our credit facility, term loans, mortgages payable, and long-term notes and bonds used to maintain liquidity and expand our real estate investment portfolio and operations.
+Added: We are exposed to interest rate changes primarily as a result of our credit facility and commercial paper program, term loans, mortgages payable, and long-term notes and bonds used to maintain liquidity and expand our real estate investment portfolio and operations.
Our interest rate risk management objective is to limit the impact of interest rate changes on earnings and cash flow and to lower our overall borrowing costs.
5 unchanged sentences
We do not enter into any derivative transactions for speculative or trading purposes.
−Removed: The following table presents by year of expected maturity, the principal amounts, average interest rates and estimated fair values of our fixed and variable rate debt as of June 30, 2020.
+Added: The following table presents by year of expected maturity, the principal amounts, average interest rates and estimated fair values of our fixed and variable rate debt as of September 30, 2020.
This information is presented to evaluate the expected cash flows and sensitivity to interest rate changes (dollars in millions):
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(1) Excludes net premiums recorded on mortgages payable, net original issuance premiums recorded on notes payable and deferred financing costs on mortgages payable, notes payable, and term loans.
−Removed: At June 30, 2020, the unamortized balance of net premiums on mortgages payable is $2.3 million, the unamortized balance of net original issuance premiums on notes payable is $3,000, and the balance of deferred financing costs on mortgages payable is $1.1 million, on notes payable is $38.5 million, and on term loans is $742,000.
−Removed: In June 2020, we repaid our $250.0 million senior term loan in full, which matured in June 2020.
−Removed: (2) We base the estimated fair value of the publicly-traded fixed rate senior notes and bonds at June 30, 2020 on the indicative market prices and recent trading activity of our senior notes and bonds payable.
−Removed: We base the estimated fair value of our fixed rate and variable rate mortgages and private senior notes payable at June 30, 2020 on the relevant forward interest rate curve, plus an applicable credit-adjusted spread.
−Removed: We believe that the carrying value of the credit facility balance and term loans balance reasonably approximate their estimated fair values at June 30, 2020.
−Removed: The table above incorporates only those exposures that exist as of June 30, 2020.
+Added: At September 30, 2020, the unamortized balance of net premiums on mortgages payable is $1.9 million, the unamortized balance of net original issuance premiums on notes payable is $28.2 million, and the balance of deferred financing costs on mortgages payable is $1.1 million, on notes payable is $40.3 million, and on term loans is $692,000.
+Added: (2) We base the estimated fair value of the publicly-traded fixed rate senior notes and bonds at September 30, 2020 on the indicative market prices and recent trading activity of our senior notes and bonds payable.
+Added: We base the estimated fair value of our fixed rate and variable rate mortgages and private senior notes payable at September 30, 2020 on the relevant forward interest rate curve, plus an applicable credit-adjusted spread.
+Added: We believe that the carrying value of the credit facility balance, commercial paper borrowings and term loans balance reasonably approximate their estimated fair values at September 30, 2020.
+Added: The table above incorporates only those exposures that exist as of September 30, 2020.
It does not consider those exposures or positions that could arise after that date.
1 unchanged sentence
All of our outstanding notes and bonds have fixed interest rates.
−Removed: At June 30, 2020, all of our mortgages payable had fixed interest rates, except one variable rate mortgage on one property totaling $7.0 million, which has been swapped to a fixed interest rate.
+Added: At September 30, 2020, all of our mortgages payable had fixed interest rates, except one variable rate mortgage on one property totaling $6.9 million, which has been swapped to a fixed interest rate.
Interest on our revolving credit facility and term loan balance is variable.
However, the variable interest rate feature on our term loans has been mitigated by interest rate swap agreements.
−Removed: Based on our revolving credit facility balance of $628.6 million at June 30, 2020, a 1% change in interest rates would change our interest rate costs by $6.3 million per year.
+Added: Based on our revolving credit facility balance of $556.1 million at September 30, 2020, a 1% change in interest rates would change our interest rate costs by $5.6 million per year.
During 2019, we commenced foreign operations and acquired real property in the U.K.
8 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.