SEC Filings

10-Q
ACADIA REALTY TRUST filed this Form 10-Q on 04/25/2019
Entire Document
 

 

Mortgage Debt in Unconsolidated Partnerships (at our Pro-Rata Share)

 

Year

 

Scheduled

Amortization

 

 

Maturities

 

 

Total

 

 

Weighted-Average

Interest Rate

 

2019 (Remainder)

 

$

0.8

 

 

$

1.1

 

 

$

1.9

 

 

 

5.5

%

2020

 

 

1.1

 

 

 

9.1

 

 

 

10.2

 

 

 

4.8

%

2021

 

 

1.1

 

 

 

6.8

 

 

 

7.9

 

 

 

3.7

%

2022

 

 

1.2

 

 

 

 

 

 

1.2

 

 

 

%

2023

 

 

1.0

 

 

 

40.6

 

 

 

41.6

 

 

 

4.2

%

Thereafter

 

 

1.6

 

 

 

99.9

 

 

 

101.5

 

 

 

4.3

%

 

 

$

6.8

 

 

$

157.5

 

 

$

164.3

 

 

 

 

 

 

In 2019, $217.5 million of our total consolidated debt and $1.9 million of our pro-rata share of unconsolidated outstanding debt will become due. In addition, $479.7 million of our total consolidated debt and $10.2 million of our pro-rata share of unconsolidated debt will become due in 2020. As we intend on refinancing some or all of such debt at the then-existing market interest rates, which may be greater than the current interest rate, our interest expense would increase by approximately $7.0 million annually if the interest rate on the refinanced debt increased by 100 basis points. After giving effect to noncontrolling interests, our share of this increase would be $1.7 million. Interest expense on our variable-rate debt of $437.6 million, net of variable to fixed-rate swap agreements currently in effect, as of March 31, 2019, would increase $4.4 million if LIBOR increased by 100 basis points. After giving effect to noncontrolling interests, our share of this increase would be $1.0 million. We may seek additional variable-rate financing if and when pricing and other commercial and financial terms warrant. As such, we would consider hedging against the interest rate risk related to such additional variable-rate debt through interest rate swaps and protection agreements, or other means.

Based on our outstanding debt balances as of March 31, 2019, the fair value of our total consolidated outstanding debt would decrease by approximately $12.6 million if interest rates increase by 1%. Conversely, if interest rates decrease by 1%, the fair value of our total outstanding debt would increase by approximately $13.9 million.

As of March 31, 2019, and December 31, 2018, we had consolidated notes receivable of $109.8 million and $109.6 million, respectively. We determined the estimated fair value of our notes receivable by discounting future cash receipts utilizing a discount rate equivalent to the rate at which similar notes receivable would be originated under conditions then existing.

Based on our outstanding notes receivable balances as of March 31, 2019, the fair value of our total outstanding notes receivable would decrease by approximately $1.0 million if interest rates increase by 1%. Conversely, if interest rates decrease by 1%, the fair value of our total outstanding notes receivable would increase by approximately $1.0 million.

Summarized Information as of December 31, 2018

As of December 31, 2018, we had total mortgage and other notes payable of $1,560.3 million, excluding the unamortized premium of $0.8 million and unamortized debt issuance costs of $10.5 million, of which $1,001.7 million, or 64.2% was fixed-rate, inclusive of debt with rates fixed through the use of derivative financial instruments, and $558.7 million, or 35.8%, was variable-rate based upon LIBOR or Prime rates plus certain spreads. As of December 31, 2018, we were party to 29 interest rate swap and three interest rate cap agreements to hedge our exposure to changes in interest rates with respect to $609.9 million and $143.8 million of LIBOR-based variable-rate debt, respectively.

Interest expense on our variable-rate debt of $558.7 million as of December 31, 2018, would have increased $5.6 million if LIBOR increased by 100 basis points. Based on our outstanding debt balances as of December 31, 2018, the fair value of our total outstanding debt would have decreased by approximately $13.5 million if interest rates increased by 1%. Conversely, if interest rates decreased by 1%, the fair value of our total outstanding debt would have increased by approximately $14.7 million.

Changes in Market Risk Exposures from December 31, 2018 to March 31, 2019

Our interest rate risk exposure from December 31, 2018, to March 31, 2019, has decreased on an absolute basis, as the $558.7 million of variable-rate debt as of December 31, 2018, has decreased to $437.6 million as of March 31, 2019. As a percentage of our overall debt, our interest rate risk exposure has decreased as our variable-rate debt accounted for 35.8% of our consolidated debt as of December 31, 2018 compared to 27.2% as of March 31, 2019.


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