Quarterly report pursuant to Section 13 or 15(d)

Realty Income Office Assets, Mortgages Payable

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Realty Income Office Assets, Mortgages Payable
 9 Months Ended
Sep. 30, 2021
Realty Income Office Assets  
Entity Information [Line Items]  
Mortgages Payable
Note 5 – Mortgages Payable
During the first nine months of 2021, Realty Income made $26.8 million in principal payments, including the repayment of two mortgages in full for $26.5 million on behalf of Realty Income Office Assets. During the first nine months of 2020, Realty Income made $9.2 million in principal payments, including the repayment of one mortgage in full for $8.5 million on behalf of Realty Income Office Assets. These repayments by Realty Income are presented as a reduction to Distributions to Realty Income, net on the combined statements of cash flows. No mortgages were assumed during the first nine months of 2021 or 2020. Assumed mortgages are secured by the properties on which the debt was placed and are considered non-recourse debt with limited customary exceptions which vary from loan to loan.
In September 2021, Realty Income completed the early redemption on $12.5 million in principal of a mortgage due June 2032, plus accrued and unpaid interest, on behalf of Realty Income Office Assets. As a result of the early redemption, Realty Income Office Assets recognized a $3.5 million loss on extinguishment of debt for the nine months ended September 30, 2021. The loss on extinguishment of debt included a prepayment penalty of $4.0 million, less the write off of the remaining unamortized mortgage premium balance of $0.5 million.
The mortgages for Realty Income Office Assets contain customary covenants, such as limiting the ability to further mortgage each applicable property or to discontinue insurance coverage without the prior consent of the lender. At September 30, 2021, Realty Income Office Assets was in compliance with these covenants.
The following summarizes Realty Income Office Assets’ mortgages payable as of September 30, 2021 and December 31, 2020, respectively (dollars in thousands):
Office Properties Fixed Rate Maturity Date September 30, 2021 December 31, 2020
East Windsor, NJ (1)
4.9% 6/1/2022 $ 9,625 $ 9,625
Columbus, OH (2)
5.6% 6/1/2032 — 12,811
Tucson, AZ (2)
5.4% 7/1/2021 — 14,040
Remaining principal balance     9,625 36,476
Unamortized premium, net

31 576
Total mortgages payable, net
     $ 9,656 $ 37,052
(1) The mortgage related to the East Windsor, NJ property was paid in full on October 1, 2021. As a result of the early repayment, Realty Income Office Assets incurred a $0.3 million prepayment penalty.
(2) In April 2021, on behalf of Realty Income Office Assets, Realty Income repaid the mortgage on the property in Tucson, AZ in full for $14.0 million and in September 2021, repaid the mortgage on the property in Columbus, OH in full for $12.5 million.