5 unchanged sentences
Fixed Rate Debt
−Removed: As of March 31, 2024, our outstanding fixed rate debt consisted of the following:
+Added: As of June 30, 2024, our outstanding fixed rate debt consisted of the following:
Debt Principal Balance (1)
8 unchanged sentences
Senior secured notes 300,000 9.000% 27,000 2029 Semi-annually
+Added: Senior secured notes 567,429 9.000% 51,069 2029 Semi-annually
Senior unsecured notes 114,355 3.450% 3,945 2031 Semi-annually
17 unchanged sentences
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.
−Removed: 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.
+Added: Based on the balances outstanding at June 30, 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 $57,207.
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 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:
+Added: In addition to the fixed rate debt presented in the table above, at June 30, 2024, we had a noncontrolling ownership interest of 51% in an unconsolidated joint venture that owned two properties that were secured by fixed rate debt consisting of the following mortgage note:
Debt Our JV Ownership Interest Principal Balance (1)(2)
2 unchanged sentences
Mortgage note (two properties) 51% $ 50,000 4.090% $ 2,045 2029 Monthly
−Removed: Mortgage note (one property) (3)
−Removed: 50% 32,000 3.690% 1,181 2027 Monthly
−Removed: Total $ 82,000 $ 3,226
−Removed: (1) The principal balances and annual interest rates are the amounts stated in the applicable contracts.
−Removed: In accordance with GAAP, the joint ventures’ recorded interest expense may differ from these amounts because of market conditions at the time they incurred the debt.
−Removed: (2) Reflects the entire balance of the debt secured by the properties and is not adjusted to reflect the interests in the joint ventures we do not own.
+Added: (1) The principal balance and annual interest rate are the amounts stated in the applicable contracts.
+Added: In accordance with GAAP, the joint venture’s recorded interest expense may differ from these amounts because of market conditions at the time it incurred the debt.
+Added: (2) Reflects the entire balance of the debt secured by the properties and is not adjusted to reflect the interest in the joint venture we do not own.
None of the debt is recourse to us.
−Removed: (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.
−Removed: 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 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: As of June 30, 2024, our floating rate debt consisted of $178,000 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.
Our credit agreement matures on January 29, 2027.
6 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 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 June 30, 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 March 31, 2024 8.9 % $ 290,000 $ 25,810 $ 0.53
+Added: At June 30, 2024 8.9% $ 278,000 $ 24,742 $ 0.51
One percentage point increase 9.9% $ 278,000 $ 27,522 $ 0.57
−Removed: (1) Based on SOFR plus a margin of 350 basis points per annum as of March 31, 2024.
−Removed: (2) Based on the weighted average common shares outstanding (diluted) for the three months ended March 31, 2024.
−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 March 31, 2024 if we were fully drawn on our revolving credit facility and term loan:
+Added: (1) Based on SOFR plus a margin of 350 basis points per annum as of June 30, 2024.
+Added: (2) Based on the weighted average common shares outstanding (diluted) for the six months ended June 30, 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 June 30, 2024 if we were fully drawn on our revolving credit facility and term loan:
Impact of an Increase in Interest Rates
2 unchanged sentences
Total Interest Expense Per Year Annual Earnings Per Share Impact (3)
−Removed: At March 31, 2024 8.9 % $ 425,000 $ 37,825 $ 0.78
+Added: At June 30, 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 margin of 350 basis points per annum as of March 31, 2024.
+Added: (1) Based on SOFR plus a margin of 350 basis points per annum as of June 30, 2024.
(2) Represents the maximum amount available under our revolving credit facility and term loan.
−Removed: (3) Based on the weighted average common shares outstanding (diluted) for the three months ended March 31, 2024.
−Removed: The foregoing tables show the impact of an immediate increase in floating interest rates as of March 31, 2024.
+Added: (3) Based on the weighted average common shares outstanding (diluted) for the six months ended June 30, 2024.
+Added: The foregoing tables show the impact of an immediate increase in floating interest rates as of June 30, 2024.
If interest rates were to increase gradually over time, the impact would be spread over time.
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.