Secured and Unsecured Debt of the Operating Partnership (Tables) - Kilroy Realty, L.P. [Member]

6 Months Ended

Jun. 30, 2017

The following table summarizes the balance and terms of our unsecured revolving credit facility as of June 30, 2017 and December 31, 2016:



	June 30, 2017			December 31, 2016
	(in thousands)
Outstanding borrowings	$	—		$	—
Remaining borrowing capacity	600,000			600,000
Total borrowing capacity ⁽¹⁾	$	600,000		$	600,000
Interest rate ⁽²⁾	2.27		%	1.82		%
Facility fee-annual rate ⁽³⁾	0.200%
Maturity date	July 2019

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(1)	We may elect to borrow, subject to bank approval and obtaining commitments for any additional borrowing capacity, up to an additional $311.0 million under an accordion feature under the terms of the unsecured revolving credit facility and unsecured term loan facility.


(2)	The interest rate on our unsecured revolving credit facility is based on an annual rate of LIBOR plus 1.050%.

(3)

Our facility fee is paid on a quarterly basis and is calculated based on the total borrowing capacity. In addition to the facility fee, we incurred debt origination and legal costs. As of June 30, 2017 and December 31, 2016, $2.6 million and $3.3 million of unamortized deferred financing costs, respectively, remained to be amortized through the maturity date of our unsecured revolving credit facility, which are included in prepaid expenses and other assets, net on our consolidated balance sheets.

The following table summarizes the balance and terms of our unsecured term loan facility as of June 30, 2017 and December 31, 2016:



	June 30, 2017			December 31, 2016
	(in thousands)
Outstanding borrowings ⁽¹⁾	$	150,000		$	150,000
Interest rate ⁽²⁾	2.36		%	1.85		%
Maturity date	July 2019

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(1)	As of June 30, 2017 and December 31, 2016, $0.5 million and $0.7 million of unamortized deferred financing costs, respectively, remained to be amortized through the maturity date of our unsecured term loan facility.


(2)	Our unsecured term loan facility interest rate was calculated based on an annual rate of LIBOR plus 1.150%.

Schedule of debt maturities

The following table summarizes the stated debt maturities and scheduled amortization payments of our issued and outstanding debt, excluding unamortized debt discounts, premiums and deferred financing costs, as of June 30, 2017:



Year	(in thousands)
Remaining 2017	$	3,072
2018	451,669
2019	265,309
2020	255,137
2021	5,342
Thereafter	1,599,023
Total ⁽¹⁾	$	2,579,552

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(1)	Includes gross principal balance of outstanding debt before the effect of the following at June 30, 2017: $12.0 million of unamortized deferred financing costs, $6.2 million of unamortized discounts for the unsecured senior notes and $3.5 million of unamortized premiums for the secured debt.

Capitalized interest and loan fees

The following table sets forth gross interest expense, including debt discount/premium and deferred financing cost amortization, net of capitalized interest, for the three and six months ended June 30, 2017 and 2016. The interest expense capitalized was recorded as a cost of development and increased the carrying value of undeveloped land and construction in progress.



	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
	(in thousands)
Gross interest expense	$	28,731		$	26,668		$	56,246		$	52,843
Capitalized interest and deferred financing costs	(10,758		)	(12,284		)	(20,921		)	(26,630		)
Interest expense	$	17,973		$	14,384		$	35,325		$	26,213