WASHINGTON, DC-In a testament to the still-favorable loan market—not to mention their own credit profiles—two Maryland REITs have secured loan facilities that total $1.275 billion. They are Bethesda-based Host Hotels & Resorts and Federal Realty Investment Trust, in Rockville.

Host Hotels & Resorts closed a new $1 billion revolving credit facility, for a $400 million increase over its existing facility, via a syndicate of banks. The existing credit facility was scheduled to mature in September of 2012. Larry K. Harvey, executive vice president and chief financial officer, noted in a prepared statement that over the last three years, the REIT has been working hard to expand its banking relationships. “Those efforts paid off as we significantly enhanced the size of the facility by increasing the number of participating banks from 10 to 14,” he said.

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The REIT also has the option to seek to increase the amount of the new facility by up to $500 million through an accordion feature. The new facility has an initial maturity of November 2015 with an option to extend the term for one additional year. The interest rate for the facility is based on LIBOR with a spread of between 175 basis points to 275 basis points, depending on Host’s leverage ratio.

In addition, if Host’s unsecured debt achieves an investment grade rating, it can further reduce the interest rate. Currently, approximately $116 million is outstanding under the new facility.

Another plus for the facility, Harvey said, is that it doubles “the number of foreign currencies in which we can borrow on the facility." The REIT has made a number of acquisitions in the past several months, including the 396-room Pullman Bercy in Paris through its European joint venture’s second fund.

The facility was arranged by Merrill Lynch; Pierce, Fenner & Smith; JP Morgan Securities; and Wells Fargo Securities. The loan facility follows a private placement by the REIT of $300 million.

Federal Realty Investment Trust, for its part, closed on a $275 million unsecured term loan. The REIT, headed by Don Wood, plans to use the proceeds to pay down outstanding balances under its $400 million revolving credit facility, as well as to fund near-term acquisitions, development expenditures at Santana Row, Pike & Rose and Assembly Row and for general corporate purposes.

Federal Realty Investment Trust closed on that $400-million unsecured revolving credit facility in July, planning to use the proceeds to retire the outstanding obligations under its previous $300-million revolving credit facility.

Federal Realty’s new loan is based on LIBOR plus 145 basis points and is scheduled to mature in November 2018. The REIT explained the favorable pricing by noting it was able to take advantage of a pricing disconnect between the bank and unsecured notes markets. Like Host Hotels, Federal Realty has the option to increase the loan size, in its case to $350 million, through an accordion feature.

PNC Capital Markets and Capital One Bank, NA acted as joint lead arrangers.