Secured and unsecured senior debt

The following table summarizes our secured and unsecured senior debt as of September 30, 2014 (dollars in thousands):



	Fixed Rate/Hedged Variable Rate			Unhedged Variable Rate			Total Consolidated			Percentage of Total Debt		Weighted Average Interest Rate at End of Period ⁽¹⁾		Weighted Average Remaining Term (in years)
Secured notes payable	$	406,125		$	230,700		$	636,825		18.2	%	4.67	%	2.9
Unsecured senior notes payable	1,747,290			—			1,747,290			49.9		3.98		8.6
$1.5 billion unsecured senior line of credit	—			142,000			142,000			4.1		1.25		4.3
2016 Unsecured Senior Bank Term Loan	350,000			25,000			375,000			10.7		1.42		1.8
2019 Unsecured Senior Bank Term Loan	600,000			—			600,000			17.1		2.05		4.3
Total/weighted average	$	3,103,415		$	397,700		$	3,501,115		100.0	%	3.39	%	5.9
Percentage of total debt	89		%	11		%	100		%


(1)	Represents the weighted average interest rate as of the end of the period plus the impact of debt premiums/discounts and our interest rate swap agreements. The weighted average interest rate excludes bank fees and amortization of loan fees.

The following table summarizes our outstanding indebtedness and respective principal maturities as of

September 30, 2014 (dollars in thousands):



	Stated Rate			Weighted Average Interest Rate⁽¹⁾		Maturity Date⁽²⁾	Principal Payments Remaining for the Period Ending December 31,
Debt	Stated Rate			Weighted Average Interest Rate⁽¹⁾		Maturity Date⁽²⁾	2014			2015			2016			2017			2018			Thereafter			Total
Secured notes payable
Seattle	6.00	%		6.00	%	11/18/14	$	60		$	—		$	—		$	—		$	—		$	—		$	60
Maryland	5.64			4.50		6/1/15	34			5,777			—			—			—			—			5,811
San Francisco Bay Area	L+1.50			1.66		7/1/15	—			46,596			—			—			—			—			46,596
Greater Boston, San Francisco Bay Area, and San Diego	5.73			5.73		1/1/16	440			1,816			75,501			—			—			—			77,757
Greater Boston, San Diego, and New York City	5.82			5.82		4/1/16	234			988			29,389			—			—			—			30,611
San Diego	5.74			3.00		4/15/16	42			175			6,916			—			—			—			7,133
San Francisco Bay Area	L+1.40			1.56		6/1/16	—			—			17,952			—			—			—			17,952
San Francisco Bay Area	6.35			6.35		8/1/16	619			2,652			126,715			—			—			—			129,986
Maryland	2.14			2.14		1/20/17	—			—			—			76,000			—			—			76,000
Greater Boston	L+1.35			1.50		8/23/17	—			—			—			90,092			—			—			90,092
San Diego, Maryland, and Seattle	7.75			7.75		4/1/20	374			1,570			1,696			1,832			1,979			106,490			113,941
San Diego	4.66			4.66		1/1/23	337			1,402			1,464			1,540			1,614			33,367			39,724
San Francisco Bay Area	6.50			6.50		6/1/37	—			18			19			20			22			751			830
Unamortized premiums							54			218			60			—			—			—			332
Secured notes payable average/subtotal	4.71	%		4.67			2,194			61,212			259,712			169,484			3,615			140,608			636,825

2016 Unsecured Senior Bank Term Loan	L+1.20	%		1.42		7/31/16	—			—			375,000			—			—			—			375,000
2019 Unsecured Senior Bank Term Loan	L+1.20	%		2.05		1/3/19	—			—			—			—			—			600,000			600,000
$1.5 billion unsecured senior line of credit	L+1.10	%	⁽³⁾	1.25		1/3/19	—			—			—			—			—			142,000			142,000
Unsecured senior notes payable	2.75	%		2.79		1/15/20	—			—			—			—			—			400,000			400,000
Unsecured senior notes payable	4.60	%		4.61		4/1/22	—			—			—			—			—			550,000			550,000
Unsecured senior notes payable	3.90	%		3.94		6/15/23	—			—			—			—			—			500,000			500,000
Unsecured senior notes payable	4.50	%		4.51		7/30/29	—			—			—			—			—			300,000			300,000
Unamortized discounts							(79		)	(326		)	(337		)	(350		)	(362		)	(1,256		)	(2,710		)
Unsecured debt average/subtotal				3.11			(79		)	(326		)	374,663			(350		)	(362		)	2,490,744			2,864,290
Average/total				3.39	%		$	2,115		$	60,886		$	634,375		$	169,134		$	3,253		$	2,631,352		$	3,501,115

Balloon payments							$	—		$	52,336		$	629,851		$	166,092		$	—		$	2,622,238		$	3,470,517
Principal amortization							2,115			8,550			4,524			3,042			3,253			9,114			30,598
Total consolidated debt							$	2,115		$	60,886		$	634,375		$	169,134		$	3,253		$	2,631,352		$	3,501,115

Fixed-rate/hedged variable-rate debt							$	2,055		$	14,290		$	591,423		$	3,042		$	3,253		$	2,489,352		$	3,103,415
Unhedged variable-rate debt							60			46,596			42,952			166,092			—			142,000			397,700
Total consolidated debt							$	2,115		$	60,886		$	634,375		$	169,134		$	3,253		$	2,631,352		$	3,501,115


(1)	Represents the weighted average interest rate as of the end of the period plus the impact of debt premiums/discounts and our interest rate swap agreements. The weighted average interest rate excludes bank fees and amortization of loan fees.


(2)	Includes any extension options that we control.


(3)	In addition to the stated rate, the unsecured senior line of credit is subject to an annual facility fee of 0.20%.

2.75% and 4.50% Unsecured senior notes payable

In July 2014, we completed an offering of $700 million unsecured senior notes payable at a weighted average interest rate of 3.50%. The offering consisted of $400 million of 2.75% unsecured senior notes (“2.75% Unsecured Senior Notes”) and $300 million of 4.50% unsecured senior notes (“4.50% Unsecured Senior Notes”). The 2.75% Unsecured Senior Notes were priced at 99.793% of the principal amount with a yield to maturity of 2.791% and are due on January 15, 2020. The 4.50% Unsecured Senior Notes were priced at 99.912% of the principal amount with a yield to maturity of 4.508% and are due on July 30, 2029. The unsecured senior notes payable are unsecured obligations of the Company and are fully and unconditionally guaranteed by Alexandria Real Estate Equities, L.P., a 100% owned subsidiary of the Company. The unsecured senior notes payable rank equally in right of payment with all other senior unsecured indebtedness. However, the unsecured senior notes payable are subordinate to existing and future mortgages and other secured indebtedness (to the extent of the value of the collateral securing such indebtedness) and to all existing and future preferred equity and liabilities, whether secured or unsecured, of the Company’s subsidiaries, other than Alexandria Real Estate Equities, L.P. We used the net proceeds of this offering to reduce variable-rate debt, including the partial repayment of $125 million of our unsecured senior bank term loan due in 2016 (“2016 Unsecured Senior Bank Term Loan”) and to reduce the outstanding borrowings on our unsecured senior line by $569 million. In connection with the partial repayment of $125 million of our 2016 Unsecured Senior Bank Term Loan, we recognized a loss on early extinguishment of debt related to the write-off of unamortized loan fees totaling $525 thousand in July 2014.

Interest expense

The following table summarizes interest expense for the three and nine months ended September 30, 2014 and 2013 (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Gross interest	$	32,680		$	32,959		$	92,551		$	96,668
Capitalized interest	(12,125		)	(16,788		)	(35,440		)	(46,499		)
Interest expense	$	20,555		$	16,171		$	57,111		$	50,169

Repayment of secured note payable

In January 2014, we repaid a $208.7 million secured note payable related to Alexandria Technology Square^® which bore interest at a rate of 5.59%. Our JV partner funded $20.9 million of the proceeds required to repay the secured note payable.

In April 2014, we repaid a $6.4 million secured note payable related to a San Diego property which bore interest at a rate of 4.88%.

In August 2014, we repaid a $7.4 million secured note payable related to a San Diego property which bore interest at a rate of 4.00%.

Secured construction loans

The following table summarizes our secured construction loans as of September 30, 2014 (dollars in thousands):



Market	Stated Rate			Maturity Date		Outstanding Balance		Remaining Commitments		Total Aggregate Commitments
San Francisco Bay Area		L+1.50	%	7/1/15	⁽¹⁾	$	46,596	$	8,404	$	55,000
San Francisco Bay Area		L+1.40	%	6/1/16	⁽²⁾	17,952		18,048		36,000
Greater Boston		L+1.35	%	8/23/17	⁽³⁾	90,092		160,308		250,400
						$	154,640	$	186,760	$	341,400


(1)	We have two, one-year options to extend the stated maturity date to July 1, 2017, subject to certain conditions.


(2)	We have two, one-year options to extend the stated maturity date to June 1, 2018, subject to certain conditions.


(3)	We have a one-year option to extend the stated maturity date to August 23, 2018, subject to certain conditions.