filings.toolsItem 7A. Quantitative and Qualitative Disclosures About Market Risk
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Item 7A. Quantitative and Qualitative Disclosures About Market Risk
The Company’s primary market risk exposure is interest rate risk. The Company periodically evaluates its exposure to short-term interest rates and will, from time-to-time, enter into interest rate protection agreements which mitigate, but do not eliminate, the effect of changes in interest rates on its floating-rate debt. The Company has not entered, and does not plan to enter, into any derivative financial instruments for trading or speculative purposes. The following table presents the Company’s aggregate fixed rate and variable rate debt obligations outstanding, including fair market value adjustments and unamortized deferred financing costs, as of December 31, 2019, with corresponding weighted-average interest rates sorted by maturity date. The table does not include extension options where available (amounts in millions).
| 2020 | 2021 | 2022 | 2023 | 2024**** | Thereafter | Total | Fair Value | |||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Secured Debt | ||||||||||||||||||||||||||||||||
| Fixed Rate | $ | 92.9 | $ | 145.1 | $ | 152.0 | $ | 12.0 | $ | 10.4 | $ | 5.0 | $ | 417.4 | $ | 419.5 | ||||||||||||||||
| Average Interest Rate | 5.32 | % | 5.39 | % | 4.06 | % | 3.23 | % | 6.73 | % | 7.08 | % | 4.88 | % | ||||||||||||||||||
| Variable Rate | $ | 66.6 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 66.6 | $ | 66.5 | ||||||||||||||||
| Average Interest Rate | 5.50 | % | - | - | - | - | - | 5.50 | % | |||||||||||||||||||||||
| Unsecured Debt | ||||||||||||||||||||||||||||||||
| Fixed Rate | $ | - | $ | 483.9 | $ | 497.0 | $ | 348.2 | $ | 397.1 | $ | 2,907.8 | $ | 4,634.0 | $ | 4,783.9 | ||||||||||||||||
| Average Interest Rate | - | 3.20 | % | 3.40 | % | 3.13 | % | 2.7 | % | 3.73 | % | 3.50 | % | |||||||||||||||||||
| Variable Rate | $ | - | $ | 197.8 | $ | - | $ | - | $ | - | $ | - | $ | 197.8 | $ | 199.9 | ||||||||||||||||
| Average Interest Rate | - | 2.64 | % | - | - | - | - | 2.64 | % |
Based on the Company’s variable-rate debt balances, interest expense would have increased by $2.6 million for the year ended December 31, 2019, if short-term interest rates were 1.0% higher. The Company has not, and does not plan to, enter into any derivative financial instruments for trading or speculative purposes.
Item 8. Financial Statements and Supplementary Data
The response to this Item 8 is included in our audited Consolidated Financial Statements and Notes to Consolidated Financial Statements, which are contained in Part IV, Item 15 of this Form 10-K.
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