7 unchanged sentences
Annual Interest Rate (1)
−Removed: Annual Interest Expense (1)
−Removed: Maturity Interest Payments Due
−Removed: Senior unsecured notes $ 300,000 4.000% $ 12,000 2022 Semi-annually
+Added: Annual Interest Expense Maturity Interest Payments Due
Senior unsecured notes $ 350,000 4.250% $ 14,875 2024 Semi-annually
4 unchanged sentences
Senior unsecured notes 162,000 6.375% 10,328 2050 Quarterly
−Removed: Mortgage note (one property in Washington, D.C.) (2)
−Removed: 25,055 4.220% 1,057 2022 Monthly
Mortgage note (one property in Chicago, IL) 50,000 3.700% 1,850 2023 Monthly
−Removed: Mortgage note (one property in Washington, D.C.) 23,246 4.800% 1,116 2023 Monthly
Total $ 2,262,000 $ 86,453
2 unchanged sentences
For more information, see Notes 9 and 10 to the Notes to Consolidated Financial Statements included in Part IV, Item 15 of this Annual Report on Form 10-K.
−Removed: (2) In February 2022, we gave notice of our intention to prepay this mortgage note at par plus accrued interest.
−Removed: We expect to make this prepayment in April 2022.
+Added: Tab le of Contents
Our senior unsecured notes require semi-annual or quarterly interest payments through maturity.
−Removed: Our mortgages generally require principal and interest payments through maturity pursuant to amortization schedules.
+Added: Our mortgage requires interest only payments through maturity.
Because these debts require interest to be paid at a fixed rate, changes in market interest rates during the term of these debts will not affect our interest obligations.
2 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.
+Added: Federal Reserve has raised interest rates several times since the beginning of 2022 in an effort to combat inflation and may continue to do so.
Based on the balances outstanding at December 31, 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 $80,103.
−Removed: Some of our fixed rate secured debt arrangements allow us to make repayments earlier than the stated maturity date.
+Added: Our fixed rate debt arrangements may allow us to make repayments earlier than the stated maturity date.
In some cases, we are not allowed to make early repayment prior to a cutoff date and we are generally allowed to make prepayments only at a premium equal to a make whole amount, as defined, which is generally designed to preserve a stated yield to the note holder.
−Removed: 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 December 31, 2021, 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: These prepayment rights may afford us opportunities to mitigate the risk of refinancing our debts at maturity at a higher rate by refinancing prior to maturity.
+Added: In addition to the fixed rate debt presented in the table above, at December 31, 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)
Annual Interest Rate (1)
−Removed: Annual Interest Expense (1)
−Removed: Maturity Interest Payments Due
+Added: Annual Interest Expense Maturity Interest Payments Due
Mortgage note (two properties in Fairfax, VA) 51% $ 50,000 4.090 % $ 2,045 2029 Monthly
6 unchanged sentences
Floating Rate Debt
−Removed: At December 31, 2021, we had no 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, we have the option to extend the stated maturity by two six month periods.
+Added: At December 31, 2022, our floating rate debt consisted of $195,000 outstanding under our $750,000 revolving credit facility.
+Added: Our revolving credit facility matures on July 31, 2023 and, subject to the payment of an extension fee and meeting certain other conditions, we have the option to extend the maturity date of our revolving credit facility by one additional six month period.
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.
+Added: Tab le of Contents
+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 December 31, 2022:
+Added: Impact of an Increase in Interest Rates
+Added: Annual Interest Rate (1)
+Added: Outstanding Debt Total Interest Expense Per Year Annual Earnings Per Share Impact (2)
+Added: At December 31, 2022 5.4 % $ 195,000 $ 10,530 $ 0.22
+Added: One percentage point increase 6.4 % $ 195,000 $ 12,480 $ 0.26
+Added: (1) Based on LIBOR plus a premium, which was 110 basis points per annum, at December 31, 2022.
+Added: (2) Based on the weighted average shares outstanding (diluted) for the year ended December 31, 2022.
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 December 31, 2022, if we were fully drawn on our revolving credit facility:
6 unchanged sentences
(2) Based on the weighted average shares outstanding (diluted) for the year ended December 31, 2022.
−Removed: The foregoing table shows the impact of an immediate increase in floating interest rates as of December 31, 2021.
+Added: The foregoing tables show the impact of an immediate increase in floating interest rates as of December 31, 2022.
If interest rates were to increase gradually over time, the impact would be spread over time.
2 unchanged sentences
LIBOR Phase Out
−Removed: As of December 31, 2021, 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 are required to pay interest on borrowings under our revolving credit facility at floating rates based on LIBOR.
+Added: LIBOR has been phased out for new contracts and is expected to be phased out for pre-existing contracts by June 30, 2023.
+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 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.
Financial Statements and Supplementary Data
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.