Mortgage and Other Loans

The following table sets forth a summary of our mortgage and other loans, net of discount (in thousands). The interest rate of each loan is fixed unless otherwise indicated in the footnotes to the table:



	Outstanding Principal Balance, Net at
Property	December 31, 2015		December 31, 2014		Interest Rate		Maturity Date
Pan Am Building	$	59,997	$	59,991	6.17	%	8/11/2016
Waterfront Plaza	100,000		100,000		6.37	%	9/11/2016
Waterfront Plaza	11,000		11,000		6.37	%	9/11/2016
Davies Pacific Center	94,881		94,747		5.86	%	11/11/2016
Subtotal	265,878		265,738
Revolving line of credit⁽¹⁾	25,000		25,000		1.10	%	12/31/2016
Total	$	290,878	$	290,738


(1)	The revolving line of credit matures on December 31, 2016. Amounts borrowed under the revolving line of credit bear interest at a fluctuating annual rate equal to the effective rate of interest paid by the lender on time certificates of deposit, plus 1.00%. See “Revolving Line of Credit” below.

The lenders’ collateral for these mortgage loans is the property and, in some instances, cash reserve accounts, ownership interests in the underlying entity owning the real property, leasehold interests in certain ground leases and rights under certain service agreements.

As of December 31, 2014, the total outstanding balance of the Clifford Center loans amounted to $6.3 million and is included in “Mortgage and other liabilities of real estate held for sale” in the accompanying consolidated balance sheets. These loans were repaid in full upon the completion of the sale of the Clifford Center property in January 2015.

Revolving Line of Credit

We are party to a Credit Agreement (the “FHB Credit Facility”) with First Hawaiian Bank (the “Lender”) which provides us with a revolving line of credit in the maximum principal amount of $25.0 million and has a maturity date of December 31, 2016. Amounts borrowed under the FHB Credit Facility bear interest at a fluctuating annual rate equal to the effective rate of interest paid by the Lender on time certificates of deposit, plus 1.00%. We are permitted to use the proceeds of the line of credit for working capital and general corporate purposes, consistent with our real estate operations and for such other purposes as the Lender may approve. As of December 31, 2015 and 2014, we had outstanding borrowings of $25.0 million under the FHB Credit Facility. During each of the years ended December 31, 2015 and 2014, we recognized $0.3 million in interest to the Lender.

As security for the FHB Credit Facility, as amended, Shidler Equities L.P., a Hawaii limited partnership controlled by Mr. Shidler (“Shidler LP”), has pledged to the Lender a certificate of deposit in the principal amount of $25.0 million. As a condition to this pledge, the Operating Partnership and Shidler LP entered into an indemnification agreement pursuant to which the Operating Partnership agreed to indemnify Shidler LP from any losses, damages, costs and expenses incurred by Shidler LP in connection with the pledge. In addition, to the extent that all or any portion of the certificate of deposit is withdrawn by the Lender and applied to the payment of principal, interest and/or charges under the FHB Credit Facility, the Operating Partnership agreed to pay to Shidler LP interest on the withdrawn amount at a rate of 7.0% per annum from the date of the withdrawal until the date of repayment in full by the Operating Partnership to Shidler LP. Pursuant to this indemnification agreement, as amended, the Operating Partnership also agreed to pay to Shidler LP an annual fee of 2.0% of the entire $25.0 million principal amount of the certificate of deposit. During each of the years ended December 31, 2015 and 2014, we recognized $0.5 million in interest to Shidler LP for the annual fee.

The FHB Credit Facility contains various customary covenants, including covenants relating to disclosure of financial and other information to the Lender, maintenance and performance of our material contracts, our maintenance of adequate insurance, payment of the Lender’s fees and expenses, and other customary terms and conditions.