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

12 Months Ended

Dec. 31, 2019

The following table summarizes the balance and terms of our unsecured revolving credit facility as of December 31, 2019 and 2018:



	December 31, 2019			December 31, 2018
	(in thousands)
Outstanding borrowings	$	245,000		$	45,000
Remaining borrowing capacity	505,000			705,000
Total borrowing capacity ⁽¹⁾	$	750,000		$	750,000
Interest rate ⁽²⁾	2.76		%	3.48		%
Facility fee-annual rate ⁽³⁾	0.200%
Maturity date	July 2022

_______________


(1)	We may elect to borrow, subject to bank approval and obtaining commitments for any additional borrowing capacity, up to an additional $600.0 million under an accordion feature under the terms of the unsecured revolving credit facility and unsecured term loan facility.


(2)	Our unsecured revolving credit facility interest rate was calculated based on the contractual rate of LIBOR plus 1.000% as of December 31, 2019 and 2018.

(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 December 31, 2019 and 2018, $3.4 million and $4.7 million of unamortized deferred financing costs, respectively, which are included in prepaid expenses and other assets, net on our consolidated balance sheets, remained to be amortized through the maturity date of our unsecured revolving credit facility. The following table summarizes the balance and terms of our unsecured term loan facility as of December 31, 2019 and 2018, which is included in unsecured debt, net on our consolidated balance sheets:



	December 31, 2019			December 31, 2018
	(in thousands)
Outstanding borrowings	$	150,000		$	150,000
Remaining borrowing capacity	—			—
Total borrowing capacity ⁽¹⁾	$	150,000		$	150,000
Interest rate ⁽²⁾	2.85		%	3.49		%
Undrawn facility fee-annual rate	0.200%
Maturity date	July 2022

_______________


(1)	As of December 31, 2019 and 2018, $0.7 million and $0.9 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 the contractual rate of LIBOR plus 1.100% as of December 31, 2019 and 2018.

Schedule of debt maturities

The following table summarizes the stated debt maturities and scheduled amortization payments as of December 31, 2019:



Year	(in thousands)
2020	$	5,137
2021	5,342
2022	400,554
2023	305,775
2024	431,006
Thereafter	2,431,688
Total aggregate principal value ⁽¹⁾	$	3,579,502

________________________


(1)	Includes gross principal balance of outstanding debt before the effect of the following at December 31, 2019: $20.3 million of unamortized deferred financing costs for the unsecured term loan facility, unsecured senior notes and secured debt and $6.5 million of unamortized discounts for the unsecured senior notes.

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 years ended 2019, 2018 and 2017. The interest expense capitalized was recorded as a cost of development and increased the carrying value of undeveloped land and construction in progress.



	Year Ended December 31,
	2019			2018			2017
	(in thousands)
Gross interest expense	$	129,778		$	117,789		$	112,577
Capitalized interest and deferred financing costs	(81,241		)	(68,068		)	(46,537		)
Interest expense	$	48,537		$	49,721		$	66,040

Secured debt [Member]

Debt Instrument [Line Items]

Debt balance and significant terms

The following table sets forth the composition of our secured debt as of December 31, 2019 and 2018:



	Annual Stated Interest Rate ⁽¹⁾	GAAP Effective Rate ⁽¹⁾⁽²⁾	Maturity Date	December 31,
Type of Debt	Annual Stated Interest Rate ⁽¹⁾	GAAP Effective Rate ⁽¹⁾⁽²⁾	Maturity Date	2019			2018
				(in thousands)
Mortgage note payable	3.57%	3.57%	December 2026	$	170,000		$	170,000
Mortgage note payable ⁽³⁾	4.48%	4.48%	July 2027	89,502			91,332
Mortgage note payable ⁽³⁾⁽⁴⁾	6.05%	3.50%	June 2019	—			75,238
Total secured debt				$	259,502		$	336,570
Unamortized Deferred Financing Costs				(909		)	(1,039		)
Total secured debt, net				$	258,593		$	335,531

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(1)	All interest rates presented are fixed-rate interest rates.


(2)	Represents the effective interest rate including the amortization of initial issuance discounts/premiums excluding the amortization of deferred financing costs.


(3)	The secured debt and the related properties that secure the debt are held in a special purpose entity and the properties are not available to satisfy the debts and other obligations of the Company or the Operating Partnership.


(4)	In February 2019, the Company repaid this mortgage note payable at par.

Unsecured senior notes [Member]

Debt Instrument [Line Items]

Debt balance and significant terms

The following table summarizes the balance and significant terms of the registered unsecured senior notes issued by the Operating Partnership and outstanding, including unamortized discounts of $6.5 million and $6.6 million and unamortized deferred financing costs of $18.7 million and $15.4 million as of December 31, 2019 and 2018, respectively:



					Net Carrying Amount as of December 31,
	Issuance date	Maturity date	Stated coupon rate	Effective interest rate⁽¹⁾	2019			2018
					(in thousands)
3.050% Unsecured Senior Notes ⁽²⁾	September 2019	February 2030	3.050%	3.064%	$	500,000		$	—
Unamortized discount and deferred financing costs					(5,998		)	—
Net carrying amount					$	494,002		$	—

4.750% Unsecured Senior Notes ⁽³⁾	November 2018	December 2028	4.750%	4.800%	$	400,000		$	400,000
Unamortized discount and deferred financing costs					(4,446		)	(4,960		)
Net carrying amount					$	395,554		$	395,040

4.350% Unsecured Senior Notes⁽⁴⁾	October 2018	October 2026	4.350%	4.350%	$	200,000		$	200,000
Unamortized discount and deferred financing costs					(1,186		)	(1,375		)
Net carrying amount					$	198,814		$	198,625

4.300% Unsecured Senior Notes ⁽⁴⁾	July 2018	July 2026	4.300%	4.300%	$	50,000		$	50,000
Unamortized discount and deferred financing costs					(290		)	(342		)
Net carrying amount					$	49,710		$	49,658

3.450% Unsecured Senior Notes ⁽⁵⁾	December 2017	December 2024	3.450%	3.470%	$	425,000		$	425,000
Unamortized discount and deferred financing costs					(2,907		)	(3,493		)
Net carrying amount					$	422,093		$	421,507

3.450% Unsecured Senior Notes ⁽⁶⁾	February 2017	February 2029	3.450%	3.450%	$	75,000		$	75,000
Unamortized discount and deferred financing costs					(390		)	(432		)
Net carrying amount					$	74,610		$	74,568

3.350% Unsecured Senior Notes ⁽⁶⁾	February 2017	February 2027	3.350%	3.350%	$	175,000		$	175,000
Unamortized discount and deferred financing costs					(825		)	(941		)
Net carrying amount					$	174,175		$	174,059

4.375% Unsecured Senior Notes ⁽⁷⁾	September 2015	October 2025	4.375%	4.444%	$	400,000		$	400,000
Unamortized discount and deferred financing costs					(3,185		)	(3,738		)
Net carrying amount					$	396,815		$	396,262

4.250% Unsecured Senior Notes ⁽⁸⁾	July 2014	August 2029	4.250%	4.350%	$	400,000		$	400,000
Unamortized discount and deferred financing costs					(5,100		)	(5,632		)
Net carrying amount					$	394,900		$	394,368

3.800% Unsecured Senior Notes ⁽⁹⁾	January 2013	January 2023	3.800%	3.800%	$	300,000		$	300,000
Unamortized discount and deferred financing costs					(834		)	(1,108		)
Net carrying amount					$	299,166		$	298,892

Total Unsecured Senior Notes, Net					$	2,899,839		$	2,402,979

________________________


(1)	Represents the effective interest rate including the amortization of initial issuance discounts, excluding the amortization of deferred financing costs.


(2)	Interest on these notes is payable semi-annually in arrears on February 15th and August 15th of each year, beginning on February 15, 2020.


(3)	Interest on these notes is payable semi-annually in arrears on June 15th and December 15th of each year.


(4)	Interest on these notes is payable semi-annually in arrears on April 18th and October 18th of each year.


(5)	Interest on these notes is payable semi-annually in arrears on June 15th and December 15th of each year.


(6)	Interest on these notes is payable semi-annually in arrears on February 17th and August 17th of each year.


(7)	Interest on these notes is payable semi-annually in arrears on April 1st and October 1st of each year.


(8)	Interest on these notes is payable semi-annually in arrears on February 15th and August 15th of each year.


(9)	Interest on these notes is payable semi-annually in arrears on January 15th and July 15th of each year.