5 unchanged sentences
Fixed Rate Debt
−Removed: As of September 30, 2023, our outstanding fixed rate debt consisted of the following:
+Added: As of March 31, 2024, our outstanding fixed rate debt consisted of the following:
Debt Principal Balance (1)
4 unchanged sentences
Senior unsecured notes 350,000 2.400% 8,400 2027 Semi-annually
−Removed: Senior unsecured notes 350,000 2.400% 8,400 2027 Semi-annually
Mortgage note (one property) 26,340 8.139% 2,144 2028 Monthly
1 unchanged sentence
Mortgage note (two properties) 54,300 7.671% 4,165 2028 Monthly
+Added: Senior secured notes 300,000 9.000% 27,000 2029 Semi-annually
Senior unsecured notes 400,000 3.450% 13,800 2031 Semi-annually
7 unchanged sentences
For more information, see Notes 7 and 8 to our Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.
−Removed: Our senior unsecured notes require semi-annual or quarterly interest payments through maturity.
+Added: Our senior notes require semi-annual or quarterly interest payments through maturity.
Our mortgage notes require monthly payments of interest only or payments of principal and interest through maturity.
3 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: Since the beginning of 2022, the U.S.
−Removed: Federal Reserve has been raising interest rates in an effort to combat inflation and may continue to do so.
−Removed: Based on the balances outstanding at September 30, 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 $68,555.
+Added: In response to significant and prolonged increases in inflation, the U.S.
+Added: Federal Reserve has raised interest rates multiple times since the beginning of 2022.
+Added: Although the U.S.
+Added: Federal Reserve has indicated that it may lower interest rates in 2024, we cannot be sure that it will do so, and interest rates may remain at the current high levels or continue to increase.
+Added: Based on the balances outstanding at March 31, 2024, 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 $64,459.
Our fixed rate debt arrangements may 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 a higher rate by refinancing prior to maturity.
−Removed: In addition to the fixed rate debt presented in the table above, at September 30, 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:
+Added: In addition to the fixed rate debt presented in the table above, at March 31, 2024, we had noncontrolling ownership interests of 51% and 50% in two unconsolidated joint ventures that owned three properties that were secured by fixed rate debt consisting of the following mortgage notes:
Debt Our JV Ownership Interest Principal Balance (1)(2)
9 unchanged sentences
None of the debt is recourse to us.
−Removed: (3) In July 2023, the maturity date of this mortgage loan was extended by three years at the same interest rate.
+Added: (3) In March 2024, the 1750 H Street, NW joint venture did not have sufficient cash flow to pay its monthly debt service, resulting in an event of default.
+Added: We expect the non-recourse mortgage lender to this joint venture to take full possession of the property in the second quarter.
Floating Rate Debt
−Removed: As of September 30, 2023, our floating rate debt consisted of $200,000 outstanding under our $750,000 revolving credit facility.
−Removed: Our revolving credit facility matures on January 31, 2024.
−Removed: 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.
−Removed: Borrowings under our revolving credit facility are in U.S.
−Removed: 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.
+Added: As of March 31, 2024, our floating rate debt consisted of $190,000 outstanding under our $325,000 secured revolving credit facility and $100,000 outstanding on our secured term loan, both of which are governed by our credit agreement.
+Added: Our credit agreement matures on January 29, 2027.
+Added: We can borrow, repay and reborrow funds available under our revolving credit facility, and no principal payments are due under our credit agreement until maturity.
+Added: Subject to the payment of an extension fee and meeting certain other requirements, we can extend the stated maturity date of our revolving credit facility by one year.
+Added: Borrowings under our credit agreement are in U.S.
+Added: dollars and require interest to be paid at a rate of SOFR plus a margin of 350 basis points.
Accordingly, we are vulnerable to changes in U.S.
−Removed: dollar based short term rates, specifically SOFR, and to changes in our credit ratings.
−Removed: In addition, upon any 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.
+Added: dollar based short term rates, specifically SOFR.
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, 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, 2024:
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, 2023 6.9 % $ 200,000 $ 13,800 $ 0.29
+Added: At March 31, 2024 8.9 % $ 290,000 $ 25,810 $ 0.53
One percentage point increase 9.9 % $ 290,000 $ 28,710 $ 0.59
−Removed: (1) Based on SOFR plus a premium, which was 145 basis points per annum, as of September 30, 2023.
−Removed: (2) Based on the weighted average common shares outstanding (diluted) for the nine months ended September 30, 2023.
−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, 2023 if we were fully drawn on our revolving credit facility:
+Added: (1) Based on SOFR plus a margin of 350 basis points per annum as of March 31, 2024.
+Added: (2) Based on the weighted average common shares outstanding (diluted) for the three months ended March 31, 2024.
+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, 2024 if we were fully drawn on our revolving credit facility and term loan:
Impact of an Increase in Interest Rates
Annual Interest Rate (1)
−Removed: Outstanding Debt Total Interest Expense Per Year Annual Earnings Per Share Impact (2)
−Removed: At September 30, 2023 6.9 % $ 750,000 $ 51,750 $ 1.07
+Added: Outstanding Debt (2)
+Added: Total Interest Expense Per Year Annual Earnings Per Share Impact (3)
+Added: At March 31, 2024 8.9 % $ 425,000 $ 37,825 $ 0.78
One percentage point increase 9.9 % $ 425,000 $ 42,075 $ 0.87
−Removed: (1) Based on SOFR plus a premium, which was 145 basis points per annum, as of September 30, 2023.
−Removed: (2) Based on the weighted average common shares outstanding (diluted) for the nine months ended September 30, 2023.
−Removed: The foregoing tables show the impact of an immediate increase in floating interest rates as of September 30, 2023.
+Added: (1) Based on SOFR plus a margin of 350 basis points per annum as of March 31, 2024.
+Added: (2) Represents the maximum amount available under our revolving credit facility and term loan.
+Added: (3) Based on the weighted average common shares outstanding (diluted) for the three months ended March 31, 2024.
+Added: The foregoing tables show the impact of an immediate increase in floating interest rates as of March 31, 2024.
If interest rates were to increase gradually over time, the impact would be spread over time.
−Removed: Our exposure to fluctuations in floating interest rates will increase or decrease in the future with increases or decreases in the outstanding amount under our revolving credit facility or our other floating rate debt, if any.
+Added: Our exposure to fluctuations in floating interest rates will increase or decrease in the future with increases or decreases in the outstanding amount under our revolving credit facility or our term loan, or our other floating rate debt, if any.
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.
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.