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Western Asset Mortgage Capital Corporation Announces Second Quarter 2019 Results

Conference Call and Webcast Scheduled for Tomorrow, Wednesday, August 7, 2019 at 11:00 a.m. Eastern Time/8:00 a.m. Pacific Time

PASADENA, Calif., Aug. 6, 2019 /PRNewswire/ -- Western Asset Mortgage Capital Corporation (the "Company" or "WMC") (WMC) today reported its results for the second quarter ended June 30, 2019.

SECOND QUARTER 2019 FINANCIAL HIGHLIGHTS

  • June 30, 2019 book value per share of $10.51, net of second quarter common dividend of $0.31 per share declared on June 20, 2019.
  • GAAP net income of $10.6 million, or $0.21 per basic and diluted share.
  • Core earnings of $15.8 million, or $0.31 per basic and diluted share.1
  • Economic return on book value was 1.1%1,2 for the quarter.
  • 2.14% annualized net interest margin on our investment portfolio. 1,3,4
  • 5.6x leverage excluding non-recourse debt as of June 30, 2019 (8.5x leverage including non-recourse debt).

OTHER SECOND QUARTER 2019 HIGHLIGHTS

  • $49.3 million of common equity raised during the quarter, net of offering costs
  • Acquired $1.2 billion of investments, consisting of:
  • Completed a securitization of $945.5 million of our Residential Whole Loan investments involving the issuance of $919 million in mortgage-backed notes.

 

1

Non – GAAP measure.

2

Economic return is calculated by taking the sum of: (i) the total dividends declared; and (ii) the change in book value during the period and dividing by the beginning book value.

3

Includes interest-only securities accounted for as derivatives and the cost of interest rate swaps.

4

Excludes the consolidation of VIE trusts required under GAAP.

MANAGEMENT COMMENTARY

"I am pleased to report that we generated core earnings of $0.31 per share during the second quarter, as we continue to realize the benefits of our diversified portfolio and differentiated investment strategy," said Jennifer Murphy, Chief Executive Officer of the Company. "Our economic return on book value was 1.1% for the quarter and 6.5% for the first six months of 2019, in a market environment that continues to experience interest rate volatility. We paid a second quarter dividend of $0.31 per share, which has remained consistent for thirteen consecutive quarters.

"We are pleased to have completed two significant capital markets transactions during the quarter. In May, we completed a $49 million equity offering which allowed us to further invest in our target assets, and which we believe will enhance the overall earnings potential of the portfolio. The offering also supports our long term goal of growing the company to achieve better scale, which we believe will benefit shareholders over time.

"In June, we completed a securitization of a portion of our residential whole loans involving the issuance of $919 million in mortgage-backed notes. This transaction represents the Company's first securitization and enables us to finance our target assets with longer-term fixed rate financing at attractive levels. Our successful execution of this securitization reflects the Company's ability to leverage the platform of our manager, Western Asset, which we view as a strategic advantage for the Company and its shareholders," Ms. Murphy concluded.

Harris Trifon, Chief Investment Officer of the Company, commented, "Our strong core earnings and positive performance for the second quarter and year-to-date were driven by contributions across our diverse holdings in a number of subsectors of the mortgage market and reflect our efforts to increase our exposure to credit sensitive investments while also complementing these holdings with exposure to Agency MBS. We invested the proceeds from our May equity offering relatively quickly, acquiring more of our target assets. During the quarter, we acquired $1.2 billion of target assets, including $1.1 billion of Agency MBS and $137 million of credit sensitive investments, consisting primarily of Commercial Whole Loans, Non-Agency CMBS and GSE Risk Transfer Securities, all areas where we continue to see opportunities to achieve attractive risk-adjusted returns."

"Our current expectations are for continued, yet moderate, U.S. economic growth along with subdued inflation expectations and a more accommodative Federal Reserve monetary policy. We believe that credit spread sectors will continue to perform well for the remainder of 2019 and we will continue to focus on where we see the best relative value within our target universe. We remain constructive on both residential and commercial real estate. The U.S. housing market remains healthy, with continued underlying demand driven by ongoing job growth, high consumer confidence and increased household formations. Commercial real estate fundamentals continue to be positive, driven by an ongoing economic expansion. As such, we believe that our strategy of holding a diverse investment portfolio, with our focus on risk management, positions us well to continue generating strong core earnings while preserving our book value, with the overriding goal of providing our shareholders favorable risk-adjusted returns," concluded Mr. Trifon.

OPERATING RESULTS

The below table reflects a summary of our operating results:



For the Three Months Ended

GAAP Results


June 30, 2019


March 31, 2019



(in thousands-except share and per share data)






Net Interest Income


$

15,860



$

15,633


Other Income (Loss):





Realized gain (loss) on sale of investments, net


(8)



(5,105)


Other than temporary impairment


(3,295)



(1,232)


Unrealized gain (loss), net


74,614



50,781


Gain (loss) on derivative instruments, net


(71,530)



(27,148)


Other, net


532



236


Other Income (loss)


313



17,532


Total Expenses


5,081



5,277


Income (loss) before income taxes


11,092



27,888


Income tax provision (benefit)


478



12


Net income (loss)


$

10,614



$

27,876







Net income (loss) per Common Share – Basic/Diluted


$

0.21



$

0.58


Non-GAAP Results





Core earnings (1)


$

15,758



$

15,492


Core earnings per Common Share – Basic/Diluted


$

0.31



$

0.32


Weighted average yield(2)(4)


4.94

%


5.17

%

Effective cost of funds(3)(4)


2.94

%


3.25

%

Annualized net interest margin(2)(3)(4)


2.14

%


2.36

%



(1)

For a reconciliation of GAAP Income to Core earnings, please refer to the Reconciliation of Core Earnings at the end of this press release.

(2)

Includes interest-only securities accounted for as derivatives.

(3)

Includes the net amount paid, including accrued amounts for interest rate swaps and premium amortization for MAC interest rate swaps during the periods.

(4)

Excludes the consolidation of VIE trusts required under GAAP.

Portfolio Composition

As of June 30, 2019, the Company owned an aggregate investment portfolio with a fair market value totaling $5.2 billion. The following tables sets forth additional information regarding the Company's investment portfolio as of June 30, 2019:

Portfolio Characteristics

Agency Portfolio

The following table summarizes certain characteristics of our Agency portfolio by investment category as of June 30, 2019 (dollars in thousands):


Principal Balance


Amortized Cost


Fair Value


Net Weighted
Average Coupon

Agency CMBS

$

1,772,577



$

1,793,383



$

1,879,939



3.3

%

Agency CMBS Interest-Only Strips, accounted for as derivatives

N/A



N/A



3,829



0.4

%

Total Agency CMBS

1,772,577



1,793,383



1,883,768



3.0

%









Agency RMBS

570,369



580,636



585,751



3.5

%

Agency RMBS Interest-Only Strips

N/A



10,202



11,891



2.3

%

Agency RMBS Interest-Only Strips, accounted for as derivatives

N/A



N/A



6,741



2.8

%

Total Agency RMBS

570,369



590,838



604,383



3.2

%









Total

$

2,342,946



$

2,384,221



$

2,488,151



3.1

%

Credit Sensitive Portfolio

The following table summarizes certain characteristics of our credit sensitive portfolio by investment category as of June 30, 2019 (dollars in thousands):


Principal Balance


Amortized Cost


Fair Value


 Weighted
Average Coupon(1)

Non-Agency RMBS

$

53,458



$

37,320



$

38,086



4.8

%

Non-Agency RMBS IOs and IIOs

N/A



9,007



9,101



0.6

%

Non-Agency CMBS

255,882



217,764



219,704



5.8

%

Residential Whole Loans

1,169,136



1,187,222



1,206,220



5.2

%

Residential Bridge Loans(2)

96,485



96,618



94,892



9.3

%

Securitized Commercial Loans(1)

799,183



802,199



804,134



5.0

%

Commercial Loans

312,032



311,237



312,032



7.2

%

Other Securities

66,015



70,897



76,617



7.6

%


$

2,752,191



$

2,732,264



$

2,760,786



4.4

%



(1)

In March 2019, the Company acquired $65.3 million of Non-Agency CMBS securities which resulted in the consolidation of a variable interest entity and the recording of a $904 million securitized commercial loan and $838 million of securitized debt. As of June 30, 2019, the fair value of the securitized loan was $779.8 million and the fair value securitized debt was $779.8 million.

(2)

Includes Residential Bridge Loans carried at amortized cost of $7.5 million as of June 30, 2019. The fair value of these loans was $7.4 million as of June 30, 2019.

PORTFOLIO FINANCING AND HEDGING

Financing Activity

Repurchase Agreements

As of June 30, 2019, the Company had 33 master repurchase agreements with its counterparties.  As of June 30, 2019, the Company had borrowings under 18 of the 33 master repurchase agreements with varying maturities. The following table sets forth additional information regarding the Company's portfolio financing under the master repurchase agreements, which includes the outstanding balance in our $700 million residential whole loan and $150 million commercial whole financing facilities, as of June 30, 2019 (dollars in thousands):



Outstanding
Borrowings


Weighted Average
Interest Rate


Weighted Average
Remaining Days to
Maturity

Short Term Borrowings:







Agency RMBS


$

573,771



2.65

%


40

Agency CMBS


1,673,902



2.62

%


35

Non-Agency RMBS


11,488



3.86

%


23

Non-Agency CMBS


146,629



3.79

%


42

Residential Whole-Loans


226,784



3.63

%


68

Residential Bridge Loans


89,241



4.59

%


29

Commercial Loans


137,821



4.67

%


36

Securitized Commercial Loan


19,708



3.28

%


19

Other Securities


53,114



3.93

%


32

Subtotal


2,932,458



2.95

%


39

Long Term Borrowings







Residential Whole-Loans (1)


11,762



4.15

%


966

Commercial Loans (1)


57,000



4.60

%


727

Subtotal


68,762



4.52

%


768








Total


$

3,001,220



2.99

%


55



(1)

Certain Residential Whole Loans and Commercial Loans were financed under two longer term financing facilities. These facilities automatically roll until such time as they are  terminated or until certain conditions of default. The weighted average remaining maturity days was calculated using expected weighted life of the underlying collateral.

Convertible Senior Unsecured Notes

At June 30, 2019, the Company had $115.0 million aggregate principal amount of 6.75% convertible senior unsecured notes. The notes mature on October 1, 2022, unless earlier converted, redeemed or repurchased by the holders pursuant to their terms, and are not redeemable by the Company except during the final three months prior to maturity. The initial conversion rate was 83.1947 shares of common stock per $1,000 principal amount of notes and represented a conversion price of $12.02 per share of common stock.

Mortgage-Backed Notes

The following table summarizes Arroyo Trust's residential mortgage-backed notes at June 30, 2019 (dollars in thousands):

Classes

Principal  Balance

Coupon

Carrying Value

Contractual Maturity

Offered Notes (1):





Class A-1

$

769,825


3.3%

$

769,823


4/25/2049

Class A-2

41,248


3.5%

41,248


4/25/2049

Class A-3

65,350


3.8%

65,348


4/25/2049

Class M-1

25,055


4.8%

25,055


4/25/2049


901,478



901,474



Less: Deferred Financing Cost

N/A



5,686



Total

$

901,478



$

895,788





(1)

The subordinate notes were retained by the Company

The securitized debt of the Arroyo Trust can only be settled with the residential loan that serves as collateral for the securitized debt and is non-recourse to the Company.

Hedging Activity

At June 30, 2019, the Company had $3.4 billion notional value of pay-fixed interest rate swaps, excluding a forward starting swap of $412.3 million  (approximately 2.6 months forward), and $974.4 million notional value of variable pay rate swaps, which have variable maturities between May 2, 2020 and June 13, 2039.

The following tables summarize the average fixed pay rate, average floating receive rate and average maturity for the Company's fixed pay interest rate swaps as of June 30, 2019 (dollars in thousands):

Remaining Interest Rate Swap Term


Notional
Value


Average

Fixed Pay

Rate


Average
Floating
Receive
Rate


Average

Maturity

(Years)


Forward
Starting

1 year or less


$

200,000



1.8

%


2.6

%


0.9


%

Greater than 1 year and less than 3 years


738,000



2.0

%


2.6

%


2.8


%

Greater than 3 years and less than 5 years


828,700



2.6

%


2.5

%


4.6


%

Greater than 5 years


2,005,700



2.4

%


2.6

%


9.2


20.6

%

Total


$

3,772,400



2.3

%


2.5

%


6.5


10.9

%

The following table summarizes the average variable pay rate, average fixed receive rate and average maturity for the Company's variable pay interest rate swaps as of June 30, 2019 (dollars in thousands):

Remaining Interest Rate Swap Term


Notional
Amount


Average
Variable Pay
Rate


Average
Fixed
Receive
Rate


Average
Maturity
(Years)

Greater than 1 year and less than 3 years


$

225,000



2.6

%


2.4

%


1.8

Greater than 3 years and less than 5 years


66,000



2.4

%


2.2

%


5.0

Greater than 5 years


683,400



2.6

%


2.3

%


8.6

Total


$

974,400



2.6

%


2.4

%


6.8

DIVIDEND

On June 20, 2019, the Company declared a regular cash dividend of $0.31 per share for each common share. Since its inception in May 2012, the Company has declared and paid total dividends of $17.16 per share in a combination of cash and stock.

CONFERENCE CALL

The Company will host a conference call with a live webcast tomorrow, August 7, 2019, at 11:00 a.m. Eastern Time/8:00 a.m. Pacific Time, to discuss financial results for the second quarter 2019.

Individuals interested in participating in the conference call may do so by dialing (866) 235-9914 from the United States, or (412) 902-4115 from outside the United States and referencing "Western Asset Mortgage Capital Corporation." Those interested in listening to the conference call live via the Internet may do so by visiting the Investor Relations section of the Company's website at www.westernassetmcc.com.

The Company is enabling investors to pre-register for the earnings conference call so that they can expedite their entry into the call and avoid the need to wait for a live operator. In order to pre-register for the call, investors can visit http://dpregister.com/10133513 and enter in their contact information. Investors will then be issued a personalized phone number and pin to dial into the live conference call. Individuals can pre-register any time prior to the start of the conference call tomorrow.

A telephone replay will be available through August 21, 2019 by dialing (877) 344-7529 from the United States, or (412) 317-0088 from outside the United States, and entering conference ID 10133513. A webcast replay will be available for 90 days.

ABOUT WESTERN ASSET MORTGAGE CAPITAL CORPORATION

Western Asset Mortgage Capital Corporation is a real estate investment trust that invests in, acquires and manages a diverse portfolio assets consisting of Agency CMBS, Agency RMBS, Non-Agency RMBS, Non-Agency CMBS, ABS, GSE Risk Transfer Securities, Residential Whole and Bridge Loans and Commercial Loans. The Company's investment strategy may change, subject to the Company's stated investment guidelines, and is based on its manager Western Asset Management Company, LLC's perspective of which mix of portfolio assets it believes provide the Company with the best risk-reward opportunities at any given time. The Company is externally managed and advised by Western Asset Management Company, LLC, an investment advisor registered with the Securities and Exchange Commission and a wholly-owned subsidiary of Legg Mason, Inc. Please visit the Company's website at www.westernassetmcc.com.

FORWARD-LOOKING STATEMENTS

This press release contains statements that constitute "forward-looking statements."  Operating results are subject to numerous conditions, many of which are beyond the control of the Company, including, without limitation, changes in interest rates; changes in the yield curve; changes in prepayment rates; the availability and terms of financing; general economic conditions; market conditions; conditions in the market for mortgage related investments; legislative and regulatory changes that could adversely affect the business of the Company; and other factors, including those set forth in the Risk Factors section of the Company's annual report on Form 10-K for the period ended December 31, 2018 filed with the Securities and Exchange Commission ("SEC"). The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

USE OF NON-GAAP FINANCIAL INFORMATION

In addition to the results presented in accordance with GAAP, this release includes certain non-GAAP financial information, including core earnings, core earnings per share, drop income and drop income per share and certain financial metrics derived from non-GAAP information, such as weighted average yield, including IO securities; weighted average effective cost of financing, including swaps; weighted average net interest margin, including IO securities and swaps, which constitute non-GAAP financial measures within the meaning of Regulation G promulgated by the SEC. We believe that these measures presented in this release, when considered together with GAAP financial measures, provide information that is useful to investors in understanding our borrowing costs and net interest income, as viewed by us.  An analysis of any non-GAAP financial measure should be made in conjunction with results presented in accordance with GAAP.

-Financial Tables to Follow-

Western Asset Mortgage Capital Corporation and Subsidiaries

Consolidated Balance Sheets

(in thousands—except share and per share data)

(Unaudited)




June 30, 2019


December 31, 2018

Assets:





Cash and cash equivalents


$

81,761



$

21,987


Restricted cash


87,139



55,808


Agency mortgage-backed securities, at fair value ($2,388,337 and $1,505,979 pledged as collateral, at fair value, respectively)


2,488,151



1,505,979


Non-Agency mortgage-backed securities, at fair value ($214,946 and $237,107 pledged as collateral, at fair value, respectively)


266,891



250,856


Other securities, at fair value ($76,483 and $59,780 pledged as collateral, at fair value, respectively)


76,617



59,906


Residential Whole Loans, at fair value ($1,196,415 and $1,041,885 pledged as collateral, at fair value, respectively)


1,206,220



1,041,885


Residential Bridge Loans ($87,402 and $211,999 at fair value and $90,606 and $221,486 pledged as collateral, respectively)


94,892



221,719


Securitized commercial loan, at fair value


804,134



1,013,511


Commercial Loans, at fair value ($292,032 and $196,123 pledged as collateral, at fair value, respectively)


312,032



216,123


Investment related receivable


35,779



42,945


Interest receivable


19,413



21,959


Due from counterparties


55,519



39,623


Derivative assets, at fair value


3,329



2,606


Other assets


1,631



2,488


Total Assets (1)


$

5,533,508



$

4,497,395







Liabilities and Stockholders' Equity:





Liabilities:





Repurchase agreements, net


$

3,001,220



$

2,818,837


Convertible senior unsecured notes, net


110,719



110,060


Securitized debt, net ($722,026 and $949,626 at fair value and $83,749 and $246,802 held by affiliates, respectively)


1,617,813



949,626


Interest payable (includes $374 and $816 on securitized debt held by affiliates, respectively)


11,982



8,532


Investment related payables


99,534




Due to counterparties


22,029



17,781


Derivative liability, at fair value


1,317



10,130


Accounts payable and accrued expenses


2,801



3,858


Payable to affiliate


2,827



4,615


Dividend payable


16,500



14,916


 Other liabilities


87,140



56,031


Total Liabilities (2)


$

4,973,882



$

3,994,386







Commitments and contingencies










Stockholders' Equity:





Common stock: $0.01 par value, 500,000,000 shares authorized, 53,224,379 and 48,116,379 outstanding, respectively


532



481


Preferred stock, $0.01 par value, 100,000,000 shares authorized and no shares outstanding





Additional paid-in capital


883,417



833,810


Retained earnings (accumulated deficit)


(324,323)



(331,282)


Total Stockholders' Equity


559,626



503,009


Total Liabilities and Stockholders' Equity


$

5,533,508



$

4,497,395


 

Western Asset Mortgage Capital Corporation and Subsidiaries

Consolidated Balance Sheets (Continued)

(in thousands—except share and per share data)

(Unaudited)




June 30, 2019


December 31, 2018

(1) Assets of consolidated VIEs included in the total assets above:





Cash and cash equivalents


$

2,874



$

674


Restricted Cash


87,139



55,808


Residential Whole Loans, at fair value ($1,196,415 and $1,041,885 pledged as collateral, at fair value, respectively)


1,206,220



1,041,885


Residential Bridge Loans ($83,116 and $211,766 at fair value and $90,606 and $221,486 pledged as collateral, respectively)


90,606



221,486


Securitized commercial loan, at fair value


804,134



1,013,511


Commercial Loans, at fair value ($292,032 and $196,123 pledged as collateral, at fair value, respectively)


212,032



196,123


Investment related receivable


35,725



42,945


Interest receivable


10,494



15,540


Other assets


124



178


Total assets of consolidated VIEs


$

2,449,348



$

2,588,150







(2) Liabilities of consolidated VIEs included in the total liabilities above:





Securitized debt, net ($722,026 and $949,626 at fair value and $83,749 and $246,802 held by affiliates, respectively)


$

1,617,813



$

949,626


Interest payable (includes $374 and $816 on securitized debt held by affiliates, respectively)


4,067



2,419


Accounts payable and accrued expenses


394



708


Other liabilities


87,139



56,033


Total liabilities of consolidated VIEs


$

1,709,413



$

1,008,786


 

Western Asset Mortgage Capital Corporation and Subsidiaries

Consolidated Statements of Operations

(in thousands—except share and per share data)

 (Unaudited)




Three months ended



June 30, 2019


March 31, 2019

Net Interest Income





Interest income


$

53,818



$

52,033


Interest expense (includes $1,106 and $2,338 on securitized debt held by affiliates, respectively)


37,958



36,400


Net Interest Income


15,860



15,633







Other Income (Loss)





Realized gain (loss) on sale of investments, net


(8)



(5,105)


Other than temporary impairment


(3,295)



(1,232)


Unrealized gain (loss), net


74,614



50,781


Gain (loss) on derivative instruments, net


(71,530)



(27,148)


Other, net


532



236


Other Income (Loss)


313



17,532







Expenses





Management fee to affiliate


1,832



1,735


Other operating expenses


1,253



1,598


General and administrative expenses:





  Compensation expense


705



544


  Professional fees


761



1,215


  Other general and administrative expenses


530



185


Total general and administrative expenses


1,996



1,944


Total Expenses


5,081



5,277







Income before income taxes


11,092



27,888


Income tax provision (benefit)


478



12


Net income (loss)


$

10,614



$

27,876







Net income (loss) per Common Share – Basic


$

0.21



$

0.58


Net income (loss) per Common Share – Diluted


$

0.21



$

0.58



Reconciliation of GAAP Net Income to Non-GAAP Core Earnings
(in thousands—except share and per share data)
(Unaudited)

The table below reconciles Net Income to Core Earnings for the three months ended June 30, 2019 and March 31, 2019:



Three months ended

(dollars in thousands)


June 30, 2019


March 31, 2019

Net Income (loss)


$

10,614



$

27,876


Income tax provision (benefit)


478



12


Net Income before income taxes


11,092



27,888







Adjustments:





Investments:





Unrealized (gain) loss on investments, securitized debt and other liabilities


(74,614)



(50,781)


Other than temporary impairment


3,295



1,232


Realized (gain) loss on sale of investments


8



5,105


One-time transaction costs


130



269







Derivative Instruments:





Net realized (gain) loss on derivatives


65,025



42,885


Net unrealized (gain) loss on derivatives


10,519



(11,313)







Amortization of discount on convertible senior unsecured notes


138



137


Non-cash stock-based compensation


165



70


Total adjustments


4,666



(12,396)


Core Earnings


$

15,758



$

15,492


Basic and Diluted Core Earnings per Common Share and Participating Securities


$

0.31



$

0.32


Basic and Diluted Core Earnings plus Drop Income per Common Share and Participating Securities


$

0.31



$

0.32


Basic weighted average common shares and participating securities


50,823,683



48,236,647


Diluted weighted average common shares and participating securities


50,823,683



48,236,647


Reconciliation of Interest Income and Effective Cost of Funds
(dollars in thousands)
(Unaudited)

The following table reconciles total interest income to adjusted interest income which includes interest income on Agency and Non-Agency Interest-Only Strips classified as derivatives (Non-GAAP financial measure) for the three months ended June 30, 2019 and March 31, 2019:



Three months ended

(dollars in thousands)


June 30, 2019


March 31, 2019

Coupon interest income


$

57,792



$

54,771


Premium amortization, discount accretion and amortization of basis, net


(3,974)



(2,738)


Interest income


53,818



52,033


Contractual interest income, net of amortization of basis on Agency and Non-Agency Interest-Only Strips, classified as derivatives(1):





Coupon interest income


819



784


Amortization of basis


(655)



(595)


Subtotal


164



189


Total adjusted interest income


$

53,982



$

52,222




(1)

Reported in "Gain (loss) on derivative instruments, net" in the Consolidated Statements of Operations.

The following table reconciles the Effective Cost of Funds (Non-GAAP financial measure) with interest expense for three months ended June 30, 2019 and March 31, 2019:



Three months ended



June 30, 2019


March 31, 2019

 (dollars in thousands)


Reconciliation


Cost of
Funds/Effective
Borrowing
Costs


Reconciliation


Cost of
Funds/Effective
Borrowing
Costs

Interest expense


$

37,958



3.54

%


$

36,400



3.94

%

Adjustments:









Interest expense on Securitized debt from consolidated VIEs


(8,215)



(4.26)

%


(9,157)



(4.22)

%

Net interest (received) paid - interest rate swaps


(3,850)



(0.36)

%


(4,283)



(0.46)

%

Effective Borrowing Costs


$

25,893



2.94

%


$

22,960



3.25

%

Weighted average borrowings


$

3,527,942





$

2,868,327




 

Cision

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