Debt of the Operating Partnership

6 Months Ended

Jun. 30, 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):

	June 30, 2024				December 31, 2023
	Weighted-				Weighted-
	average		Amount		average		Amount
	interest rate		Outstanding		interest rate		Outstanding
Global Revolving Credit Facilities	4.09	%	$	1,858,194	4.33	%	$	1,825,228
Unsecured term loans	4.40	%		1,303,475	4.76	%		1,567,925
Unsecured senior notes	2.24	%		12,584,350	2.24	%		13,507,427
Secured and other debt	8.26	%		691,837	8.07	%		637,072
Total	2.87	%	$	16,437,856	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):

	June 30, 2024				December 31, 2023
	Amount				Amount
Denomination of Draw	Outstanding		% of Total		Outstanding		% of Total
U.S. dollar ($)	$	2,547,863	15.5	%	$	2,784,875	15.9	%
British pound sterling (£)		1,959,975	11.9	%		1,973,305	11.2	%
Euro (€)		10,025,366	61.0	%		10,835,878	61.8	%
Other		1,904,652	11.6	%		1,943,594	11.1	%
Total	$	16,437,856			$	17,537,652

The table below summarizes debt maturities and principal payments as of June 30, 2024 (in thousands):

	Global Revolving		Unsecured		Unsecured		Secured and
	Credit Facilities (1)(2)		Term Loans(3)(4)		Senior Notes		Other Debt		Total Debt
2024	$	—	$	—	$	316,125	$	179	$	316,304
2025		—		1,303,475		1,202,145		607		2,506,227
2026		1,858,194		—		1,457,657		116,499		3,432,350
2027		—		—		1,166,914		228,725		1,395,639
2028		—		—		2,085,650		331,239		2,416,889
Thereafter		—		—		6,355,859		14,588		6,370,447
Subtotal	$	1,858,194	$	1,303,475	$	12,584,350	$	691,837	$	16,437,856
Unamortized net discounts		—		—		(29,449)		(3,789)		(33,238)
Unamortized deferred financing costs		(10,027)		(5,582)		(47,350)		(1,913)		(64,872)
Total	$	1,848,167	$	1,297,893	$	12,507,551	$	686,135	$	16,339,746

(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 0.0625% 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 six months ended June 30, 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	June 30, 2024		December 31, 2023
2.625% notes due 2024(1)	€	600,000	$	677,040	Apr 15, 2024	$	—	$	662,340
2.750% notes due 2024(2)	£	250,000	$	324,925	Jul 19, 2024		316,125		318,275
4.250% notes due 2025	£	400,000	$	634,480	Jan 17, 2025		505,800		509,240
0.625% notes due 2025	€	650,000	$	720,980	Jul 15, 2025		696,345		717,535
2.500% notes due 2026	€	1,075,000	$	1,224,640	Jan 16, 2026		1,151,648		1,186,693
0.200% notes due 2026	CHF	275,000	$	298,404	Dec 15, 2026		306,009		326,826
1.700% notes due 2027	CHF	150,000	$	162,465	Mar 30, 2027		166,914		178,269
3.700% notes due 2027(3)	$	1,000,000	$	1,000,000	Aug 15, 2027		1,000,000		1,000,000
5.550% notes due 2028(3)	$	900,000	$	900,000	Jan 15, 2028		900,000		900,000
1.125% notes due 2028	€	500,000	$	548,550	Apr 09, 2028		535,650		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		300,445		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		442,575		445,585
1.500% notes due 2030	€	750,000	$	831,900	Mar 15, 2030		803,475		827,925
3.750% notes due 2030	£	550,000	$	719,825	Oct 17, 2030		695,475		700,205
1.250% notes due 2031	€	500,000	$	560,950	Feb 01, 2031		535,639		551,950
0.625% notes due 2031	€	1,000,000	$	1,220,700	Jul 15, 2031		1,071,300		1,103,900
1.000% notes due 2032	€	750,000	$	874,500	Jan 15, 2032		803,475		827,925
1.375% notes due 2032	€	750,000	$	849,375	Jul 18, 2032		803,475		827,925
						$	12,584,350	$	13,507,427
Unamortized discounts, net of premiums							(29,449)		(33,324)
Deferred financing costs, net							(47,350)		(51,761)
Total unsecured senior notes, net of discount and deferred financing costs						$	12,507,551	$	13,422,342

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

(2) Paid at maturity on July 19, 2024.

(3) 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 June 30, 2024, we were in compliance with each of these financial covenants.