3 unchanged sentences
Interest Rates
−Removed: We are exposed to interest rate changes primarily as a result of our credit facility and commercial paper program, term loan, 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 programs, term loan, 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 March 31, 2022.
+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 June 30, 2022.
This information is presented to evaluate the expected cash flows and sensitivity to interest rate changes (dollars in millions):
−Removed: Table of Content s
Expected Maturity Data
15 unchanged sentences
(1) Excludes net premiums recorded on mortgages payable, net premiums recorded on notes payable and deferred financing costs on mortgages payable, notes payable, and our term loan.
−Removed: At March 31, 2022, the unamortized balance of net premiums on mortgages payable is $25.0 million, the unamortized balance of net premiums on notes payable is $272.7 million, and the balance of deferred financing costs on mortgages payable is $713,000, on notes payable is $60.6 million, and on the term loan is $394,000.
−Removed: (2) We base the estimated fair value of the publicly-traded fixed rate senior notes and bonds at March 31, 2022, 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 mortgages and private senior notes payable at March 31, 2022, on the relevant forward interest rate curve, plus an applicable credit-adjusted spread.
−Removed: We believe that the carrying values of the line of credit and commercial paper borrowings and term loan balance reasonably approximate their estimated fair values at March 31, 2022.
−Removed: The table above incorporates only those exposures that exist as of March 31, 2022.
+Added: At June 30, 2022, the unamortized balance of net premiums on mortgages payable is $19.2 million, the unamortized balance of net premiums on notes payable is $257.0 million, and the balance of deferred financing costs on mortgages payable is $1,028,000, on notes payable is $58.7 million, and on the term loan is $344,000.
+Added: (2) We base the estimated fair value of the publicly-traded fixed rate senior notes and bonds at June 30, 2022, 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 mortgages and private senior notes payable at June 30, 2022, on the relevant forward interest rate curve, plus an applicable credit-adjusted spread.
+Added: We believe that the carrying values of the line of credit and commercial paper borrowings and term loan balance reasonably approximate their estimated fair values at June 30, 2022.
+Added: The table above incorporates only those exposures that exist as of June 30, 2022.
It does not consider those exposures or positions that could arise after that date.
As a result, our ultimate realized gain or loss, with respect to interest rate fluctuations, would depend on the exposures that arise during the period, our hedging strategies at the time, and interest rates.
−Removed: At March 31, 2022, our outstanding notes, bonds and mortgages payable had fixed interest rates.
+Added: At June 30, 2022, our outstanding notes, bonds and mortgages payable had fixed interest rates.
Interest on our credit facility and commercial paper borrowings and term loan balance is variable.
However, the variable interest rate feature on our term loan has been mitigated by an interest rate swap agreement.
−Removed: Based on our revolving credit facility balance of $569.6 million at March 31, 2022, a 1% change in interest rates would change our interest rate costs by $5.7 million per year.
+Added: Based on our revolving credit facility balance of $219.1 million at June 30, 2022, a 1% change in interest rates would change our interest rate costs by $2.2 million per year.
Foreign Currency Exchange Rates
2 unchanged sentences
We primarily hedge our foreign currency risk by borrowing in the currencies in which we invest thereby providing a natural hedge.
−Removed: We continuously evaluate and manage our foreign currency risk through the use of derivative financial instruments, including cross-currency swaps, currency exchange swaps, foreign currency collars, and foreign currency forward contracts with financial counterparties where practicable.
+Added: We continuously evaluate and manage our foreign currency risk through the use of derivative financial instruments, including currency exchange swaps, foreign currency collars, and foreign currency forward contracts with financial counterparties where practicable.
Such derivative instruments are viewed as risk management tools and are not used for speculative or trading purposes.
+Added: Additionally, our inability to redeploy rent receipts from our international operations on a timely basis subjects us to foreign exchange risk.
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.