5 unchanged sentences
Fixed Rate Debt
−Removed: At June 30, 2022, our outstanding fixed rate debt consisted of the following:
+Added: At September 30, 2022, our outstanding fixed rate debt consisted of the following:
Debt Principal Balance (1)
9 unchanged sentences
Mortgage note (one property in Chicago, IL) 50,000 3.700% 1,850 2023 Monthly
−Removed: Mortgage note (one property in Washington, D.C.) 23,018 4.800% 1,105 2023 Monthly
+Added: Mortgage note (one property in Washington, D.C.) (2)
+Added: 22,901 4.800% 1,099 2023 Monthly
Total $ 2,284,901 $ 87,552
2 unchanged sentences
For more information, see Notes 6 and 7 to our Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.
+Added: (2) In October 2022, this mortgage note was prepaid at a discounted amount of $22,176 plus accrued interest.
Our senior unsecured notes require semi-annual or quarterly interest payments through 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: Federal Reserve recently raised interest rates in an effort to combat high inflation and may continue to do so.
−Removed: Based on the balances outstanding at June 30, 2022, and discounted cash flow analyses through the respective maturity dates, and assuming no other changes in factors that may affect the fair value of our fixed rate debt obligations, a hypothetical immediate one percentage point increase in interest rates would change the fair value of those obligations by approximately $97,584.
+Added: Federal Reserve has recently raised interest rates several times in an effort to combat inflation and may continue to do so.
+Added: Based on the balances outstanding at September 30, 2022, and discounted cash flow analyses through the respective maturity dates, and assuming no other changes in factors that may affect the fair value of our fixed rate debt obligations, a hypothetical immediate one percentage point increase in interest rates would change the fair value of those obligations by approximately $84,480.
Some of our fixed rate secured debt arrangements allow us to make repayments earlier than the stated maturity date.
1 unchanged sentence
These prepayment rights may afford us opportunities to mitigate the risk of refinancing our debts at maturity at higher rates by refinancing prior to maturity.
−Removed: At June 30, 2022, we had noncontrolling ownership interests of 51% and 50% in two unconsolidated joint ventures that own three properties that are secured by fixed rate debt consisting of the following mortgage notes:
+Added: At September 30, 2022, we had noncontrolling ownership interests of 51% and 50% in two unconsolidated joint ventures that own three properties that are secured by fixed rate debt consisting of the following mortgage notes:
Debt Our JV Ownership Interest Principal Balance (1)(2)
10 unchanged sentences
Floating Rate Debt
−Removed: At June 30, 2022, we had $230,000 of outstanding floating rate debt under our revolving credit facility.
−Removed: Our revolving credit facility matures on January 31, 2023 and, subject to the payment of an extension fee and meeting certain other conditions,
−Removed: we have the option to extend the stated maturity by two six month periods.
+Added: At September 30, 2022, we had $135,000 of outstanding floating rate debt under our revolving credit facility.
+Added: Our revolving credit facility matures on January 31, 2023 and, subject to the payment of an extension fee and meeting certain other conditions, we have the option to extend the stated maturity by two six month periods.
No principal repayments are required under our revolving credit facility prior to maturity, and we can borrow, repay and reborrow funds available under our revolving credit facility, subject to conditions, at any time without penalty.
5 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 impact a one percentage point increase in interest rates would have on our annual floating rate interest expense as of June 30, 2022:
+Added: The following table presents the impact a one percentage point increase in interest rates would have on our annual floating rate interest expense as of September 30, 2022:
Impact of an Increase in Interest Rates
1 unchanged sentence
Outstanding Debt Total Interest Expense Per Year Annual Earnings Per Share Impact (2)
−Removed: At June 30, 2022 2.4 % $ 230,000 $ 5,520 $ 0.11
+Added: At September 30, 2022 3.9 % $ 135,000 $ 5,265 $ 0.11
One percentage point increase 4.9 % $ 135,000 $ 6,615 $ 0.14
−Removed: (1) Based on LIBOR plus a premium, which was 110 basis points per annum, as of June 30, 2022.
−Removed: (2) Based on the weighted average shares outstanding (diluted) for the six months ended June 30, 2022.
−Removed: The following table presents the impact a one percentage point increase in interest rates would have on our annual floating rate interest expense as of June 30, 2022 if we were fully drawn on our revolving credit facility:
+Added: (1) Based on LIBOR plus a premium, which was 110 basis points per annum, as of September 30, 2022.
+Added: (2) Based on the weighted average shares outstanding (diluted) for the nine months ended September 30, 2022.
+Added: The following table presents the impact a one percentage point increase in interest rates would have on our annual floating rate interest expense as of September 30, 2022 if we were fully drawn on our revolving credit facility:
Impact of an Increase in Interest Rates
1 unchanged sentence
Outstanding Debt Total Interest Expense Per Year Annual Earnings Per Share Impact (2)
−Removed: At June 30, 2022 2.4 % $ 750,000 $ 18,000 $ 0.37
+Added: At September 30, 2022 3.9 % $ 750,000 $ 29,250 $ 0.61
One percentage point increase 4.9 % $ 750,000 $ 36,750 $ 0.76
−Removed: (1) Based on LIBOR plus a premium, which was 110 basis points per annum, as of June 30, 2022.
−Removed: (2) Based on the weighted average shares outstanding (diluted) for the six months ended June 30, 2022.
−Removed: The foregoing tables show the impact of an immediate increase in floating interest rates as of June 30, 2022.
+Added: (1) Based on LIBOR plus a premium, which was 110 basis points per annum, as of September 30, 2022.
+Added: (2) Based on the weighted average shares outstanding (diluted) for the nine months ended September 30, 2022.
+Added: The foregoing tables show the impact of an immediate increase in floating interest rates as of September 30, 2022.
If interest rates were to increase gradually over time, the impact would be spread over time.
2 unchanged sentences
LIBOR Phase Out
+Added: We are required to pay interest on borrowings under our revolving credit facility at floating rates based on LIBOR.
LIBOR has been phased out for new contracts and is expected to be phased out for pre-existing contracts by June 30, 2023.
−Removed: We are required to pay interest on borrowings under our revolving credit facility at floating rates based on LIBOR, and interest we may pay on any future borrowings under our revolving credit facility may also require that we pay interest based upon LIBOR.
−Removed: We currently expect that the determination of interest under our revolving credit facility will be revised as provided under our credit agreement or amended as necessary to provide for an interest rate that approximates the existing interest rate as calculated in accordance with LIBOR.
−Removed: Despite our current expectations, we cannot be sure that any changes to the determination of interest under our revolving credit facility would approximate the current calculation in accordance with LIBOR.
−Removed: We cannot be certain what standard, if any, will replace LIBOR, and any alternative interest rate index that may replace LIBOR may result in our paying increased interest.
+Added: We currently expect that the determination of interest under our revolving credit facility will be revised as provided under our credit agreement or amended as necessary to provide for an alternative interest rate index.
+Added: We expect that the alternative interest rate index would likely be the secured overnight financing rate, or SOFR, because interest rates based on SOFR have gained significant market adoption as the replacement to LIBOR for debt facilities similar to ours.
+Added: Any alternative interest rate index that may replace LIBOR may result in changes to the amount of interest we are required to pay and could result in our paying increased interest amounts.
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.