−Removed: AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: risk is the risk of loss from adverse changes in market prices and interest rates.
−Removed: Our future earnings, cash flows and fair values relevant
−Removed: to financial instruments are dependent upon prevailing market interest rates.
−Removed: Our primary market risk results from our indebtedness, which
−Removed: bears interest at both fixed and variable rates.
−Removed: Subject to maintaining our status as a REIT for federal income tax purposes, we may manage
−Removed: our market risk on variable rate debt through the use of derivative instruments such as interest cap agreements to, in effect, cap the
−Removed: interest rate on all or a portion of the debt for varying periods up to maturity.
−Removed: In the future, we may use interest rate swaps or other
−Removed: derivatives that fix the rate on all or a portion of our variable rate debt for varying periods up to maturity.
−Removed: This in turn, reduces
−Removed: the risks of variability of cash flows created by variable rate debt and mitigates the risk of increases in interest rates.
−Removed: Our objective
−Removed: when undertaking such arrangements will be to reduce our floating rate exposure.
−Removed: However, we provide no assurance that our efforts to
−Removed: manage interest rate volatility will successfully mitigate the risks of such volatility in our portfolio and we do not intend to enter
−Removed: into hedging arrangements for speculative purposes.
+Added: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
+Added: Market risk is the risk of loss from adverse changes in market prices and interest rates.
+Added: Our future earnings, cash flows and fair values relevant to financial instruments are dependent upon prevailing market interest rates.
+Added: Our primary market risk results from our indebtedness, which bears interest at both fixed and variable rates.
+Added: As of June 30 , 2021, our indebtedness was approximately $115.7 million, consisting of approximately $82.5 million of variable-rate debt and approximately $33.2 million of fixed rate debt.
+Added: Assuming no increase in the amount of our outstanding variable-rate indebtedness, if the one-month LIBOR were to increase or decrease by 0.50%, our cash flows would decrease or increase by approximately $0.4 million on an annualized basis.
+Added: Subject to maintaining our status as a REIT for federal income tax purposes, we manage our market risk on variable rate debt through the use of interest rate swaps that fix the rate on all or a portion of our variable rate debt for varying periods up to maturity.
+Added: On August 9, 2021, in connection with entering into the 2021 Credit Facilities (see “Item 2.
+Added: Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — Analysis of Liquidity and Capital Resources”), we entered into an interest rate swap that effectively fixed the LIBOR component of the interest rate on $50.0 million portion of the 2021 Credit Facilities through January 2027.
+Added: In the future, we may use other derivative instruments such as interest cap agreements to, in effect, cap the interest rate on all or a portion of the debt for varying periods up to maturity.
+Added: This in turn, reduces the risks of variability of cash flows created by variable rate debt and mitigates the risk of increases in interest rates.
+Added: Our objective when undertaking such arrangements will be to reduce our floating rate exposure.
+Added: However, we provide no assurance that our efforts to manage interest rate volatility will successfully mitigate the risks of such volatility in our portfolio and we do not intend to enter into hedging arrangements for speculative purposes.
We may utilize swap arrangements in the future.
−Removed: of March 31, 2021, our indebtedness was approximately $97.8 million, consisting of approximately $64.5 million of variable-rate debt and
−Removed: approximately $33.3 million of fixed rate debt.
−Removed: Assuming no increase in the amount of our outstanding variable-rate indebtedness, if the
−Removed: one-month LIBOR were to increase or decrease by 0.50%, our cash flows would decrease or increase by approximately $0.3 million on an annualized
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.