Secured and unsecured senior debt (Tables)

9 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

Summary of secured and unsecured 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.

Detail of secured and unsecured debt

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							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%.

Schedule of 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

Schedule of 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.