Secured and unsecured senior debt (Tables)

12 Months Ended

Dec. 31, 2019

The following table summarizes our secured and unsecured senior debt as of December 31, 2019 (dollars in thousands):



	Fixed Rate Debt			Variable-Rate Debt								Weighted-Average
												Interest Rate⁽¹⁾		Remaining Term (in years)
							Total			Percentage		Interest Rate⁽¹⁾		Remaining Term (in years)
Secured notes payable	$	349,352		$	—		$	349,352		5.2	%	3.57	%	4.0
Unsecured senior notes payable	6,044,127			—			6,044,127			89.1		3.99		11.2
Commercial paper program	—			—			—			—		N/A		N/A
$2.2 billion unsecured senior line of credit	—			384,000			384,000			5.7		2.89		4.1
Total/weighted average	$	6,393,479		$	384,000		$	6,777,479		100.0	%	3.91	%	10.4
Percentage of total debt	94		%	6		%	100		%

(1)

Represents the weighted-average interest rate as of the end of the applicable period, including amortization of loan fees, amortization of debt premiums (discounts), and other bank fees.

Schedule of maturities of secured and unsecured debt

The following table summarizes our outstanding indebtedness and respective principal payments as of December 31, 2019 (dollars in thousands):



	Stated Rate		Interest Rate ⁽¹⁾			Maturity Date ⁽²⁾	Principal Payments Remaining for the Periods Ending December 31,														Unamortized (Deferred Financing Cost), (Discount) Premium
Debt	Stated Rate		Interest Rate ⁽¹⁾			Maturity Date ⁽²⁾	2020		2021		2022		2023		2024		Thereafter		Principal		Unamortized (Deferred Financing Cost), (Discount) Premium			Total
Secured notes payable
San Diego	4.66	%	4.90	%		1/1/23	$	1,621	$	1,852	$	1,942	$	26,259	$	—	$	—	$	31,674	$	(198	)	$	31,476
Greater Boston	3.93	%	3.19			3/10/23	1,565		1,629		1,693		74,517		—		—		79,404		1,771			81,175
Greater Boston	4.82	%	3.40			2/6/24	3,207		3,394		3,564		3,742		183,527		—		197,434		10,978			208,412
San Francisco	4.14	%	4.42			7/1/26	—		—		—		—		—		28,200		28,200		(639		)	27,561
San Francisco	6.50	%	6.50			7/1/36	25		26		28		30		32		587		728		—			728
Secured debt weighted-average interest rate/subtotal	4.55	%	3.57				6,418		6,901		7,227		104,548		183,559		28,787		337,440		11,912			349,352

Commercial paper program⁽³⁾	N/A		N/A		⁽³⁾	N/A	—		—		—		—		—		—		—		—			—
$2.2 billion unsecured senior line of credit	L+0.825	%	2.89			1/28/24	—		—		—		—		384,000		—		384,000		—			384,000
Unsecured senior notes payable	3.90	%	4.04			6/15/23	—		—		—		500,000		—		—		500,000		(2,065		)	497,935
Unsecured senior notes payable – green bond	4.00	%	4.03			1/15/24	—		—		—		—		650,000		—		650,000		(548		)	649,452
Unsecured senior notes payable	3.45	%	3.62			4/30/25	—		—		—		—		—		600,000		600,000		(4,667		)	595,333
Unsecured senior notes payable	4.30	%	4.50			1/15/26	—		—		—		—		—		300,000		300,000		(2,942		)	297,058
Unsecured senior notes payable – green bond	3.80	%	3.96			4/15/26	—		—		—		—		—		350,000		350,000		(3,081		)	346,919
Unsecured senior notes payable	3.95	%	4.13			1/15/27	—		—		—		—		—		350,000		350,000		(3,552		)	346,448
Unsecured senior notes payable	3.95	%	4.07			1/15/28	—		—		—		—		—		425,000		425,000		(3,403		)	421,597
Unsecured senior notes payable	4.50	%	4.60			7/30/29	—		—		—		—		—		300,000		300,000		(2,126		)	297,874
Unsecured senior notes payable	2.75	%	2.87			12/15/29	—		—		—		—		—		400,000		400,000		(4,089		)	395,911
Unsecured senior notes payable	4.70	%	4.81			7/1/30	—		—		—		—		—		450,000		450,000		(3,903		)	446,097
Unsecured senior notes payable	3.375	%	3.48			8/15/31	—		—		—		—		—		750,000		750,000		(7,527		)	742,473
Unsecured senior notes payable	4.85	%	4.93			4/15/49	—		—		—		—		—		300,000		300,000		(3,446		)	296,554
Unsecured senior notes payable	4.00	%	3.91			2/1/50	—		—		—		—		—		700,000		700,000		10,476			710,476
Unsecured debt weighted-average interest rate/subtotal			3.93				—		—		—		500,000		1,034,000		4,925,000		6,459,000		(30,873		)	6,428,127
Weighted-average interest rate/total			3.91	%			$	6,418	$	6,901	$	7,227	$	604,548	$	1,217,559	$	4,953,787	$	6,796,440	$	(18,961	)	$	6,777,479


(1)	Represents the weighted-average interest rate as of the end of the applicable period, including amortization of loan fees, amortization of debt premiums (discounts), and other bank fees.


(2)	Reflects any extension options that we control.

(3)

In September 2019, we established a commercial paper program that has the ability to issue up to $750.0 million of commercial paper notes with a maximum maturity of 397 days from the date of issuance. Borrowings under the program will be used to fund short-term capital needs and are backed by our $2.2 billion unsecured senior line of credit. In the event we are unable to refinance outstanding borrowings under terms equal to or more favorable than those under the unsecured senior line of credit, we expect to borrow under the unsecured senior line of credit at L+0.825%. The commercial paper notes sold during the year ended December 31, 2019, were issued at a yield to maturity of between 1.83% and 2.29%.

Schedule of debt issuances and repayments

During the year ended December 31, 2019, our issuances of unsecured senior notes payable and repayments of debt included the following (dollars in millions):



	Issuance Date	Stated Interest Rate		Effective Interest Rate		Maturity Date	Principal Amount			Net Proceeds
Issuances
Unsecured senior notes payable – green bond	March	4.00	%	4.03	%	1/15/24	$	200		$	203.0
Unsecured senior notes payable – green bond	March	3.80		3.96		4/15/26	350			346.6
Unsecured senior notes payable	March	4.85		4.93		4/15/49	300			296.5
Unsecured senior notes payable	July	3.375		3.48		8/15/31	750			742.5
Unsecured senior notes payable	July/Sept	4.00		3.91		2/1/50	700			711.1
Unsecured senior notes payable	Sept	2.75		2.87		12/15/29	400			395.8
		3.71	%	3.77	%	16.9 years	$	2,700	⁽¹⁾	$	2,695.5

Repayments of debt
Secured notes payable	Jan	7.75	%	8.15	%	4/1/20	$	107		N/A
Secured construction loan	March	3.29		3.29		1/28/20	193			N/A
Unsecured senior notes payable	July/Aug	2.75		2.96		1/15/20	400			N/A
Unsecured senior notes payable	July/Aug	4.60		4.75		4/1/22	550			N/A
Unsecured senior bank term loan	July/Sept	3.62		3.62		1/2/25	350			N/A
Weighted average/total		3.97	%	4.11	%	2.4 years	$	1,600	⁽¹⁾


(1)	The remaining proceeds received from our debt issuances, after repayments of debt, were used to fund the construction of our value-creation pipeline and acquisitions completed during 2019. Refer to Note 3 – “Investments in Real Estate” to our consolidated financial statements for additional information.

Schedule of Interest Incurred

Interest expense for the years ended December 31, 2019, 2018, and 2017, consisted of the following (dollars in thousands):



	Year Ended December 31,
	2019			2018			2017
Interest incurred	$	262,238		$	223,715		$	186,867
Capitalized interest	(88,563		)	(66,220		)	(58,222		)
Interest expense	$	173,675		$	157,495		$	128,645