5 unchanged sentences
Fixed Rate Debt
−Removed: As of June 30, 2024, our outstanding fixed rate debt consisted of the following:
+Added: As of September 30, 2024, our outstanding fixed rate debt consisted of the following:
Debt Principal Balance (1)
20 unchanged sentences
Our mortgage notes require monthly payments of interest only or payments of principal and interest through maturity.
−Removed: 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.
+Added: As 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.
If these debts were refinanced at interest rates which are one percentage point higher or lower than shown above, our annual interest cost would increase or decrease by approximately $20,333.
−Removed: Changes in market interest rates also would affect the fair value of our fixed rate debt obligations;
+Added: Changes in market interest rates would also affect the fair value of our fixed rate debt obligations;
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.
2 unchanged sentences
Although the U.S.
−Removed: 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 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.
+Added: Federal Reserve has recently lowered interest rates and indicated that it may further 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 September 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 $58,913.
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 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:
+Added: In addition to the fixed rate debt presented in the table above, at September 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)
7 unchanged sentences
Floating Rate Debt
−Removed: 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.
+Added: As of September 30, 2024, our floating rate debt consisted of $200,000 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 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 September 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 June 30, 2024 8.9% $ 278,000 $ 24,742 $ 0.51
+Added: At September 30, 2024 8.4% $ 300,000 $ 25,200 $ 0.51
One percentage point increase 9.4% $ 300,000 $ 28,200 $ 0.57
−Removed: (1) Based on SOFR plus a margin of 350 basis points per annum as of June 30, 2024.
−Removed: (2) Based on the weighted average common shares outstanding (diluted) for the six months ended June 30, 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 June 30, 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 September 30, 2024.
+Added: (2) Based on the weighted average common shares outstanding (diluted) for the nine months ended September 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 September 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 June 30, 2024 8.9% $ 425,000 $ 37,825 $ 0.78
+Added: At September 30, 2024 8.4% $ 425,000 $ 35,700 $ 0.72
One percentage point increase 9.4% $ 425,000 $ 39,950 $ 0.81
−Removed: (1) Based on SOFR plus a margin of 350 basis points per annum as of June 30, 2024.
+Added: (1) Based on SOFR plus a margin of 350 basis points per annum as of September 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 six months ended June 30, 2024.
−Removed: The foregoing tables show the impact of an immediate increase in floating interest rates as of June 30, 2024.
+Added: (3) Based on the weighted average common shares outstanding (diluted) for the nine months ended September 30, 2024.
+Added: The foregoing tables show the impact of an immediate increase in floating interest rates as of September 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.