Debt of the Operating Partnership

3 Months Ended

Mar. 31, 2024

Debt of the Operating Partnership

Debt of the Operating Partnership

8. Debt of the Operating Partnership

All debt is currently held by the OP or its consolidated subsidiaries, and the Parent is the guarantor or co-guarantor of the Global Revolving Credit Facility and the Yen Revolving Credit Facility (together, referred to as the “Global Revolving Credit Facilities”), the unsecured term loans and the unsecured senior notes. A summary of outstanding indebtedness is as follows (in thousands):

	March 31, 2024				December 31, 2023
	Weighted-				Weighted-
	average		Amount		average		Amount
	interest rate		Outstanding		interest rate		Outstanding
Global Revolving Credit Facilities	4.31	%	$	1,912,492	4.33	%	$	1,825,228
Unsecured term loans	4.45	%		1,309,250	4.76	%		1,567,925
Unsecured senior notes	2.25	%		13,271,593	2.24	%		13,507,427
Secured and other debt	8.12	%		631,469	8.07	%		637,072
Total	2.87	%	$	17,124,804	2.89	%	$	17,537,652

The weighted-average interest rates shown represent interest rates at the end of the periods for the debt outstanding and include the impact of designated interest rate swaps, which effectively fix the interest rates on certain variable rate debt, along with cross-currency interest rate swaps, which effectively convert a portion of our U.S. dollar-denominated fixed-rate debt to foreign currency-denominated fixed-rate debt in order to hedge the currency exposure associated with our net investment in foreign subsidiaries.

We primarily borrow in the functional currencies of the countries where we invest. Included in the outstanding balances were borrowings denominated in the following currencies (in thousands, U.S. dollars):

	March 31, 2024				December 31, 2023
	Amount				Amount
Denomination of Draw	Outstanding		% of Total		Outstanding		% of Total
U.S. dollar ($)	$	2,547,589	14.9	%	$	2,784,875	15.9	%
British pound sterling (£)		1,956,565	11.4	%		1,973,305	11.2	%
Euro (€)		10,742,146	62.7	%		10,835,878	61.8	%
Other		1,878,504	11.0	%		1,943,594	11.1	%
Total	$	17,124,804			$	17,537,652

The table below summarizes debt maturities and principal payments as of March 31, 2024 (in thousands):

	Global Revolving		Unsecured		Unsecured		Secured and
	Credit Facilities (1)(2)		Term Loans(3)(4)		Senior Notes		Other Debt		Total Debt
2024	$	—	$	—	$	962,975	$	234	$	963,209
2025		—		1,309,250		1,206,270		568		2,516,088
2026		1,912,492		—		1,464,840		108,177		3,485,509
2027		—		—		1,166,317		217,099		1,383,416
2028		—		—		2,089,500		290,516		2,380,016
Thereafter		—		—		6,381,691		14,875		6,396,566
Subtotal	$	1,912,492	$	1,309,250	$	13,271,593	$	631,469	$	17,124,804
Unamortized net discounts		—		—		(30,928)		(3,651)		(34,579)
Unamortized deferred financing costs		(11,366)		(5,987)		(50,463)		(2,068)		(69,884)
Total	$	1,901,126	$	1,303,263	$	13,190,202	$	625,750	$	17,020,341

(1) Includes amounts outstanding for the Global Revolving Credit Facilities.

(2) The Global Revolving Credit Facilities are subject to two six-month extension options exercisable by us; provided that the Operating Partnership must pay a 0.06 extension fee based on each lender’s revolving commitments then outstanding (whether funded or unfunded).

(3) A €375.0 million senior unsecured term loan facility is subject to two maturity extension options of one year each, provided that the Operating Partnership must pay a 0.125% extension fee based on the then-outstanding principal amount of such facility commitments then outstanding. Our U.S. term loan facility of $500 million currently is subject to one twelve-month extension, provided that the Operating Partnership must pay a 0.1875% extension fee based on the then-outstanding principal amount of the term loans.

(4) On January 9, 2024, we paid down $240 million on the U.S. term loan facility, leaving $500 million outstanding. The paydown resulted in an early extinguishment charge of approximately $1.1 million during the three months ended March 31, 2024.

Unsecured Senior Notes

The following table provides details of our unsecured senior notes (balances in thousands):

	Aggregate Principal Amount at Issuance					Balance as of
	Borrowing Currency		USD		Maturity Date	March 31, 2024		December 31, 2023
2.625% notes due 2024(1)	€	600,000		677,040	Apr 15, 2024	$	647,400	$	662,340
2.750% notes due 2024	£	250,000		324,925	Jul 19, 2024		315,575		318,275
4.250% notes due 2025	£	400,000		634,480	Jan 17, 2025		504,920		509,240
0.625% notes due 2025	€	650,000		720,980	Jul 15, 2025		701,350		717,535
2.500% notes due 2026	€	1,075,000		1,224,640	Jan 16, 2026		1,159,925		1,186,693
0.200% notes due 2026	CHF	275,000		298,404	Dec 15, 2026		304,915		326,826
1.700% notes due 2027	CHF	150,000		162,465	Mar 30, 2027		166,317		178,269
3.700% notes due 2027(2)	$	1,000,000		1,000,000	Aug 15, 2027		1,000,000		1,000,000
5.550% notes due 2028(2)	$	900,000		900,000	Jan 15, 2028		900,000		900,000
1.125% notes due 2028	€	500,000		548,550	Apr 09, 2028		539,500		551,950
4.450% notes due 2028	$	650,000		650,000	Jul 15, 2028		650,000		650,000
0.550% notes due 2029	CHF	270,000		292,478	Apr 16, 2029		299,371		320,884
3.600% notes due 2029	$	900,000		900,000	Jul 01, 2029		900,000		900,000
3.300% notes due 2029	£	350,000		454,895	Jul 19, 2029		441,805		445,585
1.500% notes due 2030	€	750,000		831,900	Mar 15, 2030		809,250		827,925
3.750% notes due 2030	£	550,000		719,825	Oct 17, 2030		694,265		700,205
1.250% notes due 2031	€	500,000		560,950	Feb 01, 2031		539,500		551,950
0.625% notes due 2031	€	1,000,000		1,220,700	Jul 15, 2031		1,079,000		1,103,900
1.000% notes due 2032	€	750,000		874,500	Jan 15, 2032		809,250		827,925
1.375% notes due 2032	€	750,000		849,375	Jul 18, 2032		809,250		827,925
						$	13,271,593	$	13,507,427
Unamortized discounts, net of premiums							(30,928)		(33,324)
Deferred financing costs, net							(50,463)		(51,761)
Total unsecured senior notes, net of discount and deferred financing costs						$	13,190,202	$	13,422,342

(1) Paid at maturity on April 15, 2024.

(2) Subject to cross-currency swaps.

Restrictive Covenants in Unsecured Senior Notes

The indentures governing our senior notes contain certain covenants, including (1) a leverage ratio not to exceed 60%, (2) a secured debt leverage ratio not to exceed 40% and (3) an interest coverage ratio of greater than 1.50. The covenants also require us to maintain total unencumbered assets of not less than 150% of the aggregate principal amount of unsecured debt. At March 31, 2024, we were in compliance with each of these financial covenants.