5 unchanged sentences
Fixed Rate Debt
−Removed: At September 30, 2022, our outstanding fixed rate debt consisted of the following:
+Added: At March 31, 2023, our outstanding fixed rate debt consisted of the following:
Debt Principal Balance (1)
Annual Interest Rate (1)
−Removed: Annual Interest Expense (1)
−Removed: Maturity Interest Payments Due
+Added: Annual Interest Expense Maturity Interest Payments Due
Senior unsecured notes $ 350,000 4.250% $ 14,875 2024 Semi-annually
5 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.) (2)
−Removed: 22,901 4.800% 1,099 2023 Monthly
Total $ 2,262,000 $ 86,453
2 unchanged sentences
For more information, see Notes 5 and 6 to our Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.
−Removed: (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.
−Removed: Our mortgages generally require principal and interest payments through maturity pursuant to amortization schedules.
+Added: Our mortgage note 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.
−Removed: Federal Reserve has recently raised interest rates several times in an effort to combat inflation and may continue to do so.
−Removed: 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.
−Removed: Some of our fixed rate secured debt arrangements allow us to make repayments earlier than the stated maturity date.
+Added: Since the beginning of 2022, the U.S.
+Added: Federal Reserve has been raising interest rates in an effort to combat inflation and may continue to do so.
+Added: Based on the balances outstanding at March 31, 2023, 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 $72,794.
+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 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:
+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 March 31, 2023, 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 September 30, 2022, we had $135,000 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, we have the option to extend the stated maturity by two six month periods.
+Added: At March 31, 2023, our floating rate debt consisted of $245,000 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
+Added: conditions, we have the option to extend the maturity date of our revolving credit facility by one 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.
Borrowings under our revolving credit facility are in U.S.
−Removed: dollars and require interest to be paid at a rate of LIBOR plus premiums that are subject to adjustment based upon changes to our credit ratings.
+Added: dollars and require interest to be paid at a rate of SOFR plus premiums that are subject to adjustment based upon changes to our credit ratings.
Accordingly, we are vulnerable to changes in U.S.
−Removed: dollar based short term rates, specifically LIBOR, and to changes in our credit ratings.
+Added: dollar based short term rates, specifically SOFR, and to changes in our credit ratings.
In addition, upon renewal or refinancing of our revolving credit facility, we are vulnerable to increases in interest rate premiums due to market conditions or our perceived credit characteristics.
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 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 March 31, 2023:
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 September 30, 2022 3.9 % $ 135,000 $ 5,265 $ 0.11
+Added: At March 31, 2023 6.0 % $ 245,000 $ 14,700 $ 0.30
One percentage point increase 7.0 % $ 245,000 $ 17,150 $ 0.35
−Removed: (1) Based on LIBOR plus a premium, which was 110 basis points per annum, as of September 30, 2022.
−Removed: (2) Based on the weighted average shares outstanding (diluted) for the nine months ended September 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 September 30, 2022 if we were fully drawn on our revolving credit facility:
+Added: (1) Based on SOFR plus a premium, which was 110 basis points per annum, as of March 31, 2023.
+Added: Effective April 1, 2023, based upon changes to our credit ratings, the interest rate premium increased to 145 basis points per annum.
+Added: (2) Based on the weighted average shares outstanding (diluted) for the three months ended March 31, 2023.
+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 March 31, 2023 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 September 30, 2022 3.9 % $ 750,000 $ 29,250 $ 0.61
+Added: At March 31, 2023 6.0 % $ 750,000 $ 45,000 $ 0.93
One percentage point increase 7.0 % $ 750,000 $ 52,500 $ 1.09
−Removed: (1) Based on LIBOR plus a premium, which was 110 basis points per annum, as of September 30, 2022.
−Removed: (2) Based on the weighted average shares outstanding (diluted) for the nine months ended September 30, 2022.
−Removed: The foregoing tables show the impact of an immediate increase in floating interest rates as of September 30, 2022.
+Added: (1) Based on SOFR plus a premium, which was 110 basis points per annum, as of March 31, 2023.
+Added: Effective April 1, 2023, based upon changes to our credit ratings, the interest rate premium increased to 145 basis points per annum.
+Added: (2) Based on the weighted average shares outstanding (diluted) for the three months ended March 31, 2023.
+Added: The foregoing tables show the impact of an immediate increase in floating interest rates as of March 31, 2023.
If interest rates were to increase gradually over time, the impact would be spread over time.
1 unchanged sentence
Although we have no present plans to do so, we may in the future enter into hedge arrangements from time to time to mitigate our exposure to changes in interest rates.
−Removed: LIBOR Phase Out
−Removed: We are required to pay interest on borrowings under our revolving credit facility at floating rates based on LIBOR.
−Removed: 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 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.
−Removed: 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.
−Removed: 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.