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Notes and Bonds Payable
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Notes and Bonds Payable Notes and Bonds Payable
 DECEMBER 31,MATURITY DATESCONTRACTUAL INTEREST RATESPRINCIPAL PAYMENTSINTEREST PAYMENTS
Dollars in thousands20212020
Unsecured Credit Facility$210,000 $— 5/23
LIBOR + 0.90%
At maturityMonthly
Unsecured Term Loan due 2024 1
199,460 199,236 5/24
LIBOR + 1.00%
At maturityMonthly
Unsecured Term Loan due 2026 1
149,376 149,479 6/26
LIBOR + 0.95%
At maturityMonthly
Senior Notes due 2025 1
249,040 248,776 5/253.88 %At maturitySemi-Annual
Senior Notes due 2028 1
296,612 296,123 1/283.63 %At maturitySemi-Annual
Senior Notes due 2030 1
296,813 296,468 3/302.40 %At maturitySemi-Annual
Senior Notes due 2031 1
295,374 294,924 3/312.05 %At maturitySemi-Annual
Mortgage notes payable 2
104,650 117,763 8/23-5/27
    3.31%-6.17%
MonthlyMonthly
$1,801,325 $1,602,769 
1Balances are shown net of discounts and unamortized issuance costs.
2    Balances are shown net of discounts and unamortized issuance costs and include premiums.

The Company’s various debt agreements contain certain representations, warranties, and financial and other covenants customary in such loan agreements. Among other things, these provisions require the Company to maintain certain financial ratios and impose certain limits on the Company’s ability to incur indebtedness and create liens or encumbrances. As of December 31, 2021, the Company was in compliance with its financial covenant provisions under its various debt instruments.
Unsecured Credit Facility
On October 14, 2011, the Company entered into a $700.0 million unsecured credit facility with a syndicate of lenders (the "Unsecured Credit Facility"). On May 31, 2019, the Company entered into an amended and restated Unsecured Credit Facility to extend the maturity date to May 2023. The credit facility agreement provides the Company with two six-month extension options that could extend the maturity date to May 2024. Each option is subject to an extension fee of 0.0625% of the aggregate commitments. Amounts outstanding under the Unsecured Credit Facility bear interest at LIBOR plus an applicable margin rate. The margin rate, which depends on the Company's credit ratings, ranges from 0.775% to 1.45% (0.90% as of December 31, 2021). In addition, the Company pays a facility fee per annum on the aggregate amount of commitments ranging from 0.125% to 0.30% (0.20% as of December 31, 2021). In connection with the amendment, the Company paid up-front fees to the lenders of approximately $3.5 million, which will be amortized over the term of the facility. As of December 31, 2021, the Company had $210.0 million outstanding under the Unsecured Credit Facility with an effective interest rate of approximately 1.00% and had a remaining borrowing capacity of approximately $490.0 million.
Unsecured Term Loan due 2024
In February 2014, the Company entered into a $200.0 million unsecured term loan with a syndicate of nine lenders (the "Unsecured Term Loan due 2024"). On July 5, 2016, the Company repaid $50.0 million of the outstanding principal. On May 31, 2019, the Company entered into an amended and restated unsecured term loan due 2022 with a syndicate of nine lenders to extend the maturity date to May 2024, to increase the loan amount from $150.0 million to $200 million, and to add the unsecured term loan due 2026 (discussed below). The Unsecured Term Loan due 2024 bears interest at a rate equal to (x) LIBOR plus (y) a margin ranging from 0.85% to 1.65% (1.00% as of December 31, 2021) based upon the Company's unsecured debt ratings. Payments under the Unsecured Term Loan due 2024 are interest only, with the full amount of the principal due at maturity. The Unsecured Term Loan due 2024 may be prepaid at any time, without penalty. The Unsecured Term Loan due 2024 has various financial covenant provisions that are required to be met on a quarterly and annual basis that are equivalent to those of the Unsecured Credit Facility. As of December 31, 2021, the Company had interest rate swaps totaling $75.0 million to hedge the 1-month LIBOR portion of the cost of borrowing under the Unsecured Term Loan due 2024 at a weighted average rate of 2.37%. The outstanding balance on the Unsecured Term Loan due 2024 was $200.0 million as of December 31, 2021 with an effective interest rate of approximately 1.95% including the impact of the interest rate swaps. In connection with the amendment and restatement, the Company paid up-front fees to the lenders of approximately $0.7 million, of which $0.4 million was capitalized and will be amortized over the term of the loan, and $0.3 million was expensed during the second quarter of 2019. For each of the years ended December 31, 2021, 2020, and 2019, the Company amortized approximately $0.2 million of the debt issuance costs which is included in interest expense on the Company's Consolidated Statements of Income. The following table reconciles the balance of the Unsecured Term Loan due 2024 on the Company’s Consolidated Balance Sheets as of December 31, 2021 and 2020: 
DECEMBER 31,
Dollars in thousands20212020
Unsecured Term Loan due 2024 principal balance$200,000 $200,000 
Debt issuance costs(540)(764)
Unsecured Term Loan due 2024 carrying amount$199,460 $199,236 

Unsecured Term Loan due 2026
On May 31, 2019, the Company amended and restated its term loan agreement with a syndicate of lenders (the "Unsecured Term Loan due 2026"). The Unsecured Term Loan due 2026 has a delayed draw feature that allowed the Company up to nine months to draw against the $150.0 million commitments. The Company completed its initial draw of $150.0 million on the Unsecured Term Loan due 2026 on May 29, 2020. The Unsecured Term Loan due 2026 bears interest at a rate equal to LIBOR plus a margin ranging from 1.45% to 2.40%. On June 1, 2021, the Company entered into a second amendment to the Amended and Restated Term Loan, dated May 31, 2019, that reduced the current interest rate to LIBOR plus a margin ranging from 0.80% to 1.60% (0.95% as of December 31, 2021). With the amendment, the Company paid up front fees of approximately $0.5 million, of which $0.2 million was paid to lenders, capitalized and amortized over the remainder of the term of the loan, and $0.3 million was paid to lenders as
administration fees and was expensed in the second quarter of 2021. In addition, the amendment added a sustainability metric incentive tied to increasing the Company's properties with green building certifications. As of December 31, 2021, the Company had interest rate swaps totaling $100.0 million to hedge the 1-month LIBOR portion of the cost of borrowing under the Unsecured Term Loan due 2026 at a weighted average rate of 2.23%. The outstanding balance on the Unsecured Term Loan due 2026 was $150.0 million as of December 31, 2021 with an effective interest rate of approximately 2.48% including the impact of the interest rate swaps. For the years ended December 31, 2021 and December 31, 2020, the Company amortized approximately $0.1 million of the debt issuance costs which is included in interest expense on the Company's Consolidated Statements of Income. The following table reconciles the balance of the Unsecured Term Loan due 2026 on the Company’s Consolidated Balance Sheets as of December 31, 2021 and 2020:
DECEMBER 31,
Dollars in thousands20212020
Unsecured Term Loan due 2026 principal balance$150,000 $150,000 
Debt issuance costs(624)(521)
Unsecured Term Loan due 2026 carrying amount$149,376 $149,479 

Senior Notes due 2025
On April 24, 2015, the Company issued $250.0 million of unsecured senior notes due 2025 (the "Senior Notes due 2025") in a registered public offering. The Senior Notes due 2025 bear interest at 3.875%, payable semi-annually on May 1 and November 1, beginning November 1, 2015, and are due on May 1, 2025, unless redeemed earlier by the Company. The notes were issued at a discount of approximately $0.2 million and the Company incurred approximately $2.3 million in debt issuance costs which yielded a 4.08% interest rate per annum upon issuance. For each of the years ended December 31, 2021, 2020, and 2019, the Company amortized approximately $0.2 million of the debt issuance costs which is included in interest expense on the Company's Consolidated Statements of Income. Concurrent with this transaction, the Company settled four forward starting swap agreements for $1.7 million. The Senior Notes due 2025 have various financial covenants that are required to be met on a quarterly and annual basis. The following table reconciles the balance of the Senior Notes due 2025 on the Company’s Consolidated Balance Sheets as of December 31, 2021 and 2020:
DECEMBER 31,
Dollars in thousands20212020
Senior Notes due 2025 face value$250,000 $250,000 
Unaccreted discount(78)(100)
Debt issuance costs(882)(1,124)
Senior Notes due 2025 carrying amount$249,040 $248,776 

Senior Notes due 2028
On December 11, 2017, the Company issued $300.0 million of unsecured Senior Notes due 2028 (the "Senior Notes due 2028") in a registered public offering. The Senior Notes due 2028 bear interest at 3.625%, payable semi-annually on January 15 and July 15, beginning July 15, 2018, and are due on January 15, 2028, unless redeemed earlier by the Company. The notes were issued at a discount of approximately $2.5 million and the Company incurred approximately $2.7 million in debt issuance costs which yielded a 3.84% interest rate per annum upon issuance. For the year ended December 31, 2021, the Company amortized approximately $0.2 million of the discount and $0.3 million of the debt issuance costs which are included in interest expense on the Company's Consolidated Statements of Income. The Senior Notes due 2028 have various financial covenants that are required to be met on a quarterly and
annual basis. The following table reconciles the balance of the Senior Notes due 2028 on the Company’s Consolidated Balance Sheets as of December 31, 2021 and 2020:
DECEMBER 31,
Dollars in thousands20212020
Senior Notes due 2028 face value$300,000 $300,000 
Unaccreted discount(1,637)(1,872)
Debt issuance costs(1,751)(2,005)
Senior Notes due 2028 carrying amount$296,612 $296,123 

Senior Notes due 2030
On March 18, 2020, the Company issued $300.0 million of unsecured Senior Notes due 2030 (the "Senior Notes due 2030") in a registered public offering. The Senior Notes due 2030 bear interest at 2.40%, payable semi-annually on March 15 and September 15, beginning September 15, 2020, and are due on March 15, 2030, unless redeemed earlier by the Company. The notes were issued at a discount of approximately $1.0 million and the Company incurred approximately $2.8 million in debt issuance costs which yielded a 2.71% interest rate per annum upon issuance. Concurrent with this transaction, the Company settled two forward starting swap agreements for $4.3 million. For the year ended December 31, 2021, the Company amortized approximately $0.1 million of the discount and $0.3 million of the debt issuance costs which are included in interest expense on the Company's Consolidated Statements of Income. The Senior Notes due 2030 have various financial covenants that are required to be met on a quarterly and annual basis. The following table reconciles the balance of the Senior Notes due 2030 on the Company’s Consolidated Balance Sheets as of December 31, 2021:
DECEMBER 31,DECEMBER 31,
Dollars in thousands20212020
Senior Notes due 2030 face value$300,000 $300,000 
Unaccreted discount(844)(935)
Debt issuance costs(2,343)(2,597)
Senior Notes due 2030 carrying amount$296,813 $296,468 

Senior Notes due 2031
On October 2, 2020, the Company issued $300.0 million of unsecured Senior Notes due 2031 (the "Senior Notes due 2031") in a registered public offering. The Senior Notes due 2031 bear interest at 2.05%, payable semi-annually on March 15 and September 15, beginning March 15, 2021, and are due on March 15, 2031, unless redeemed earlier by the Company. The notes were issued at a discount of approximately $2.4 million and the Company incurred approximately $2.8 million in debt issuance costs which yielded a 2.24% interest rate per annum upon issuance. For the year ended December 31, 2021, the Company amortized approximately $0.2 million of the discount and $0.2 million of the debt issuance costs which are included in interest expense on the Company's Consolidated Statements of Income. The Senior Notes due 2031 have various financial covenants that are required to be met on a quarterly and annual basis. The following table reconciles the balance of the Senior Notes due 2031 on the Company’s Consolidated Balance Sheets as of December 31, 2021:
DECEMBER 31,
Dollars in thousands20212020
Senior Notes due 2031 face value$300,000 $300,000 
Unaccreted discount(2,171)(2,382)
Debt issuance costs(2,455)(2,694)
Senior Notes due 2031 carrying amount$295,374 $294,924 
Mortgage Notes Payable
The following table reconciles the Company’s aggregate mortgage notes principal balance with the Company’s Consolidated Balance Sheets as of December 31, 2021 and 2020. For the years ended December 31, 2021, 2020 and 2019, the Company amortized approximately $0.1 million, $0.4 million and $0.6 million of the discount and $0.5 million, $0.4 million, and $0.4 million of the premium. For the years ended December 31, 2021, 2020 and 2019, the Company also amortized approximately $0.3 million, $0.2 million, and $0.2 million of the debt issuance costs, respectively, on the mortgage notes payable which is included in interest expense on the Company’s Consolidated Statements of Income.
 DECEMBER 31,
Dollars in thousands20212020
Mortgage notes payable principal balance$103,664 $117,221 
Unamortized premium1,720 1,450 
Unaccreted discount(83)(150)
Debt issuance costs(651)(758)
Mortgage notes payable carrying amount$104,650 $117,763 
Subsequent Mortgage Activity
On February 18, 2022, the Company repaid in full a mortgage note payable bearing interest at a rate of 4.70% that encumbered a 56,762 square foot property in California. The aggregate payoff price of $12.6 million consisted of outstanding principal of $11.0 million and a "make-whole" amount of approximately $1.6 million. The unamortized premium of $0.8 million and the unamortized cost on this note of $0.1 million were written off upon payoff.
The following table details the Company’s mortgage notes payable, with related collateral.
 ORIGINAL BALANCE
EFFECTIVE INTEREST RATE 12
MATURITY
DATE
COLLATERAL 13
PRINCIPAL AND
INTEREST PAYMENTS 11
INVESTMENT IN COLLATERAL
at December 31,		BALANCE
at December 31,
Dollars in millions202120212020
Life Insurance Co. 1
11.0 3.87 %11/22MOBMonthly/7-yr amort.— — 9.8 
Financial Services 2
12.4 4.27 %10/23MOBMonthly/10-yr amort.— — 11.4 
Life Insurance Co. 3
12.3 3.86 %8/23MOBMonthly/7-yr amort.25.9 10.3 10.6 
Life Insurance Co. 4
9.0 4.84 %12/23MOB,OFCMonthly/10-yr amort.28.1 7.1 7.3 
Life Insurance Co. 5
13.3 4.13 %1/24MOBMonthly/10-yr amort.21.6 12.0 12.4 
Life Insurance Co. 6
6.8 3.96 %2/24MOBMonthly/7-yr amort.14.7 6.0 6.2 
Financial Services 7
9.7 4.32 %9/24MOBMonthly/10-yr amort.16.5 7.8 8.1 
Life Insurance Co. 8
16.5 3.43 %1/25MOB,OFCMonthly/7-yr amort.38.7 16.7 17.1 
Financial Services11.5 3.71 %1/26MOBMonthly/10-yr amort.39.8 8.7 9.2 
Life Insurance Co. 19.2 4.08 %12/26MOBMonthly/10-yr amort.44.1 18.4 18.7 
Commercial Bank 9
15.0 5.25 %4/27MOBMonthly/20-yr amort.31.5 6.1 7.0 
Life Insurance Co. 10
11.0 3.64 %5/27MOBMonthly/10-yr amort.20.3 11.6 — 
$281.2 $104.7 $117.8 
1The Company repaid this loan in November 2021. The Company's unencumbered gross investment was $22.0 million at December 31, 2021.
2The Company repaid this loan in November 2021. The Company's unencumbered gross investment was $23.2 million at December 31, 2021.
3The unaccreted portion of the $0.2 million discount recorded on this note upon acquisition is included in the balance above.
4The unamortized portion of the $0.1 million premium recorded on this note upon acquisition is included in the balance above.
5The unamortized portion of the $0.8 million premium recorded on this note upon acquisition is included in the balance above.
6The unamortized portion of the $0.2 million premium recorded on this note upon acquisition is included in the balance above.
7The unamortized portion of the $0.1 million premium recorded on this note upon acquisition is included in the balance above.
8The unamortized portion of the $0.7 million premium recorded on this note upon acquisition is included in the balance above.
9The unamortized portion of the $0.7 million premium recorded on this note upon acquisition is included in the balance above.
10The unamortized portion of the $0.8 million premium recorded on this note upon acquisition is included in the balance above.
11Payable in monthly installments of principal and interest with the final payment due at maturity (unless otherwise noted).
12The contractual interest rates for the 10 outstanding mortgage notes ranged from 3.3% to 6.2% as of December 31, 2021.
13MOB-Medical office building; OFC-Office

Other Long-Term Debt Information
Future maturities of the Company’s notes and bonds payable as of December 31, 2021 were as follows:
Dollars in thousandsPRINCIPAL MATURITIES
NET ACCRETION/
AMORTIZATION 1
DEBT
ISSUANCE COSTS 2
NOTES AND
BONDS PAYABLE		%
2022$3,582 $(130)$(1,586)$1,866 0.1 %
2023229,910 (148)(1,605)228,157 12.7 %
2024226,448 (266)(1,441)224,741 12.4 %
2025267,415 (434)(1,141)265,840 14.8 %
2026174,879 (469)(975)173,435 9.6 %
2027 and thereafter911,430 (1,647)(2,497)907,286 50.4 %
$1,813,664 $(3,094)$(9,245)$1,801,325 100.0 %
1Includes discount accretion and premium amortization related to the Company’s Senior Notes due 2025, Senior Notes due 2028, Senior Notes due 2030, Senior Notes due 2031, and eight mortgage notes payable.
2Excludes approximately $1.8 million in debt issuance costs related to the Company's Unsecured Credit Facility included in other assets, net.