XML 30 R18.htm IDEA: XBRL DOCUMENT v3.22.1
Debt
 3 Months Ended
Mar. 31, 2022
Debt Disclosure [Abstract]  
Debt Debt
 
Senior Unsecured Credit Facility

On February 20, 2020, we entered into the Fourth Amended and Restated Credit Facility, which had capacity of approximately $2.1 billion, comprised of (i) a $1.8 billion unsecured revolving credit facility for our working capital needs, acquisitions, and other general corporate purposes (our “Unsecured Revolving Credit Facility”), (ii) a £150.0 million term loan (our “Term Loan”), and (iii) a €96.5 million delayed draw term loan (our “Delayed Draw Term Loan”). We refer to our Term Loan and Delayed Draw Term Loan collectively as the “Unsecured Term Loans” and the entire facility collectively as our “Senior Unsecured Credit Facility.”

The Senior Unsecured Credit Facility includes the ability to borrow in certain currencies other than U.S. dollars and has a maturity date of February 20, 2025. The aggregate principal amount (of revolving and term loans) available under the Senior Unsecured Credit Facility may be increased up to an amount not to exceed the U.S. dollar equivalent of $2.75 billion, subject to the conditions to increase set forth in our Credit Agreement, as described above.
In April 2022, we increased the Term Loan to £270.0 million and the Delayed Draw Term Loan to €215.0 million, thereby increasing the total capacity of our Senior Unsecured Credit Facility to approximately $2.4 billion (Note 16).

As of both March 31, 2022 and December 31, 2021, we have drawn down our Unsecured Term Loans in full.

At March 31, 2022, our Unsecured Revolving Credit Facility had available capacity of approximately $1.3 billion (net of amounts reserved for standby letters of credit totaling $0.6 million). We incur an annual facility fee of 0.20% of the total commitment on our Unsecured Revolving Credit Facility, which is included within Interest expense in our consolidated statements of income.

The following table presents a summary of our Senior Unsecured Credit Facility (dollars in thousands):
Interest Rate at
March 31, 2022 (a)
Maturity Date at March 31, 2022
Principal Outstanding Balance at
Senior Unsecured Credit FacilityMarch 31, 2022December 31, 2021
Unsecured Revolving Credit Facility:
Borrowing in euros (b)
EURIBOR + 0.85%
2/20/2025$283,076 $205,001 
Borrowing in British pounds sterling (c) (d)
SONIA + 0.8826%
2/20/2025173,217 184,660 
Borrowing in Japanese yen (e)
TIBOR + 0.85%
2/20/202519,792 20,935 
476,085 410,596 
Unsecured Term Loans:
Term Loan — borrowing in British pounds sterling (c) (d) (f)
SONIA + 0.9826%
2/20/2025196,838 202,183 
Delayed Draw Term Loan — borrowing in euros (b)
EURIBOR + 0.95%
2/20/2025107,125 109,296 
303,963 311,479 


$780,048 $722,075 
__________
(a)The applicable interest rate at March 31, 2022 was based on the credit rating for our Senior Unsecured Notes of BBB/Baa2 .
(b)EURIBOR means Euro Interbank Offered Rate.
(c)SONIA means Sterling Overnight Index Average.
(d)Interest rate includes both a spread adjustment to the base rate and a credit spread.
(e)TIBOR means Tokyo Interbank Offered Rate.
(f)Balance excludes unamortized discount of $0.8 million and $0.9 million at March 31, 2022 and December 31, 2021, respectively.

Senior Unsecured Notes

As set forth in the table below, we have euro and U.S. dollar-denominated senior unsecured notes outstanding with an aggregate principal balance outstanding of $5.7 billion at March 31, 2022 (the “Senior Unsecured Notes”).

We redeemed the €500.0 million of 2.0% Senior Notes due 2023 in March 2021. In connection with this redemption, we paid a “make-whole” amount of $26.2 million (based on the exchange rate of the euro as of the date of redemption) and recognized a loss on extinguishment of $28.2 million, which is included within Other gains and (losses) on our consolidated statements of income for the three months ended March 31, 2021.
Interest on the Senior Unsecured Notes is payable annually in arrears for our euro-denominated senior notes and semi-annually for U.S. dollar-denominated senior notes. The Senior Unsecured Notes can be redeemed at par within three months of their respective maturities, or we can call the notes at any time for the principal, accrued interest, and a make-whole amount based upon the applicable government bond yield plus 20 to 35 basis points. The following table presents a summary of our Senior Unsecured Notes outstanding at March 31, 2022 (currency in thousands):
Principal AmountCoupon RateMaturity DatePrincipal Outstanding Balance at
Senior Unsecured Notes, net (a)
Issue DateMarch 31, 2022December 31, 2021
4.6% Senior Notes due 2024
3/14/2014$500,000 4.6 %4/1/2024$500,000 $500,000 
2.25% Senior Notes due 2024
1/19/2017€500,000 2.25 %7/19/2024555,050 566,300 
4.0% Senior Notes due 2025
1/26/2015$450,000 4.0 %2/1/2025450,000 450,000 
2.250% Senior Notes due 2026
10/9/2018€500,000 2.250 %4/9/2026555,050 566,300 
4.25% Senior Notes due 2026
9/12/2016$350,000 4.25 %10/1/2026350,000 350,000 
2.125% Senior Notes due 2027
3/6/2018€500,000 2.125 %4/15/2027555,050 566,300 
1.350% Senior Notes due 2028
9/19/2019€500,000 1.350 %4/15/2028555,050 566,300 
3.850% Senior Notes due 2029
6/14/2019$325,000 3.850 %7/15/2029325,000 325,000 
0.950% Senior Notes due 2030
3/8/2021€525,000 0.950 %6/1/2030582,803 594,615 
2.400% Senior Notes due 2031
10/14/2020$500,000 2.400 %2/1/2031500,000 500,000 
2.450% Senior Notes due 2032
10/15/2021$350,000 2.450 %2/1/2032350,000 350,000 
2.250% Senior Notes due 2033
2/25/2021$425,000 2.250 %4/1/2033425,000 425,000 
$5,703,003 $5,759,815 
__________
(a)Aggregate balance excludes unamortized deferred financing costs totaling $27.3 million and $28.7 million, and unamortized discount totaling $27.8 million and $29.2 million, at March 31, 2022 and December 31, 2021, respectively.

Covenants

The Credit Agreement, each of the Senior Unsecured Notes, and certain of our non-recourse mortgage loan agreements include customary financial maintenance covenants that require us to maintain certain ratios and benchmarks at the end of each quarter. There have been no significant changes in our debt covenants from what was disclosed in the 2021 Annual Report. We were in compliance with all of these covenants at March 31, 2022.

Non-Recourse Mortgages
 
At March 31, 2022, the weighted-average interest rate for our total non-recourse mortgage notes payable was 3.8% (fixed-rate and variable-rate non-recourse mortgage notes payable were 4.8% and 1.9%, respectively), with maturity dates ranging from June 2022 to September 2031.

Repayments

During the three months ended March 31, 2022, we prepaid a non-recourse mortgage loan of $8.1 million with an interest rate of 5.6%. We recognized a net loss on extinguishment of debt of $0.9 million on this repayment, which is included within Other gains and (losses) on our consolidated statements of income.

During the three months ended March 31, 2021, we (i) prepaid non-recourse mortgage loans totaling $425.2 million, and (ii) repaid a non-recourse mortgage loan at maturity with a principal balance of approximately $3.0 million. We recognized an aggregate net loss on extinguishment of debt of $31.7 million on these repayments, primarily comprised of prepayment penalties totaling $31.8 million, which is included within Other gains and (losses) on our consolidated statements of income. The weighted-average interest rate for these non-recourse mortgage loans on their respective dates of repayment was 5.1%.

Foreign Currency Exchange Rate Impact

During the three months ended March 31, 2022, the U.S. dollar strengthened against the euro, resulting in an aggregate decrease of $80.9 million in the aggregate carrying values of our Non-recourse mortgages, net, Senior Unsecured Credit Facility, and Senior Unsecured Notes, net from December 31, 2021 to March 31, 2022.
Scheduled Debt Principal Payments
 
Scheduled debt principal payments as of March 31, 2022 are as follows (in thousands):
Years Ending December 31, Total
2022 (remainder)$39,653 
2023187,481 
20241,093,794 
20251,282,123 
2026937,121 
Thereafter through 20333,294,675 
Total principal payments6,834,847 
Unamortized discount, net(29,198)
Unamortized deferred financing costs(27,418)
Total$6,778,231 

Certain amounts in the table above are based on the applicable foreign currency exchange rate at March 31, 2022.