Quarterly report pursuant to Section 13 or 15(d)

VEREIT Office Assets, Mortgage Notes Payable, Net

v3.21.2
VEREIT Office Assets, Mortgage Notes Payable, Net
 9 Months Ended
Sep. 30, 2021
VEREIT Office Assets  
Entity Information [Line Items]  
Mortgage Notes Payable, Net
Note 3 – Mortgage Notes Payable, Net
As of September 30, 2021, VEREIT Office Assets had mortgage notes payable of $143.3 million, including net discounts of $0.2 million and deferred financing costs of $41,000, with a weighted-average years to maturity of 1.1 years and a weighted-average interest rate of 4.43%. As of December 31, 2020, VEREIT Office Assets had mortgage notes payable, net of $217.6 million including net premiums of $14,000 and net deferred financing costs of $0.3 million with a weighted-average years to maturity of 1.4 years and a weighted-average interest rate of 4.64%. The weighted average interest rate for fixed rate loans is computed using the interest rate in effect until the anticipated repayment date and the weighted average interest rate for the variable rate loan is computed using the interest rate in effect as of September 30, 2021. As of September 30, 2021, the mortgage notes were secured by nine properties with a net carrying value of $224.7 million. As of September 30, 2021, the estimated fair value of the mortgage notes payable was $146.5 million and was estimated by discounting the expected cash flows based on estimated borrowing rates available as of the measurement date. VEREIT Office Assets classified the mortgage notes payable as Level 2 under the fair value hierarchy, which includes using inputs that are observable or can be corroborated with observable market data for substantially the entire contractual term.
The mortgage loan agreements require the maintenance of certain financial ratios. Failure to maintain such ratios could result in restrictions on the use of cash associated with the establishment of certain lender reserves. At September 30, 2021, there were no cash restrictions due to failure to maintain financial ratios.
The following table summarizes the scheduled aggregate principal repayments due on mortgage notes subsequent to September 30, 2021 (in thousands):
Total
October 1, 2021 - December 31, 2021 $ 178 
2022 60,875 
2023 82,451 
Total
 $ 143,504