Secured and Unsecured Debt of the Operating Partnership (Tables) (Kilroy Realty, L.P. [Member])

3 Months Ended

Mar. 31, 2013

Per Share Average Trading Price Of Companys Common Stock On Stock Exchange [Tables Text Block]

For the three months ended March 31, 2013 and 2012, the per share average trading price of the Company's common stock on the NYSE was higher than the $35.93 exchange price for the 4.25% Exchangeable Notes, as presented below:



	Three Months Ended March 31,
	2013	2012
Per share average trading price of the Company's common stock	$51.14	$42.86

Schedule of Debt Conversions, Fair Value Upon Conversion [Table Text Block]

Although the 4.25% Exchangeable Notes were not convertible as of March 31, 2013 and 2012, if they were convertible, the approximate fair value of the shares upon conversion at these dates, using the per share average trading price presented in the table above, would have been as follows:



	March 31, 2013		March 31, 2012
	(in thousands)
Approximate fair value of shares upon conversion	$	247,300	$	208,700
Principal amount of the 4.25% Exchangeable Notes	172,500		172,500
Approximate fair value in excess amount of principal amount	$	74,800	$	36,200

Interest expense for the exchangeable notes

The following table summarizes the total interest expense attributable to the 4.25% Exchangeable Notes and the 3.25% Exchangeable Notes which were repaid upon maturity in April 2012, based on the respective effective interest rates, before the effect of capitalized interest, for the three months ended March 31, 2013 and 2012:



	Three Months Ended March 31,
	2013 ⁽¹⁾		2012
	(in thousands)
Contractual interest payments	$	1,833	$	3,035
Amortization of discount	1,078		1,797
Interest expense attributable to the Exchangeable Notes	$	2,911	$	4,832

Capped call Transactions

The table below summarizes our capped call option positions for the 4.25% Exchangeable Notes as of both March 31, 2013 and December 31, 2012.



	4.25% Exchangeable Notes
Referenced shares of common stock	4,800,796
Exchange price including effect of capped calls	$	42.81

Unsecured Revolving Credit Facility

The following table summarizes the balance and terms of our revolving credit facility as of March 31, 2013 and December 31, 2012, respectively:



	March 31, 2013			December 31, 2012
	(in thousands)
Outstanding borrowings	$	—		$	185,000
Remaining borrowing capacity	500,000			315,000
Total borrowing capacity⁽¹⁾	$	500,000		$	500,000
Interest rate⁽²⁾	—		%	1.66		%
Facility fee-annual rate⁽³⁾	0.300%
Maturity date⁽⁴⁾	April 2017

________________________


(1)	We may elect to borrow, subject to bank approval, up to an additional $200.0 million under an accordion feature under the terms of the revolving credit facility.


(2)	The revolving credit facility interest rate was calculated based on an annual rate of LIBOR plus 1.450% as of both March 31, 2013 and December 31, 2012.


(3)	The facility fee is paid on a quarterly basis and is calculated based on the total borrowing capacity. In addition to the facility fee, from 2010 to 2012 we incurred debt origination and legal costs totaling approximately $10.2 million that are currently being amortized through the maturity date of the revolving credit facility.


(4)	Under the terms of the revolving credit facility, we may exercise an option to extend the maturity date by one year.

Stated debt maturities and scheduled amortization payments, excluding debt discounts

The following table summarizes the stated debt maturities and scheduled amortization payments, excluding debt discounts and premiums, as of March 31, 2013:



Year	(in thousands)
Remaining 2013	7,016
2014	265,346
2015	395,104
2016	249,431
2017	71,748
Thereafter	1,169,741
Total	$	2,158,386	⁽¹⁾

________________________


(1)	Includes gross principal balance of outstanding debt before impact of net unamortized premiums totaling approximately $8.2 million.

Capitalized interest and loan fees

The following table sets forth gross interest expense reported in continuing operations, including debt discount/premium and loan cost amortization, net of capitalized interest, for the three months ended March 31, 2013 and 2012. The interest expense capitalized was recorded as a cost of development and redevelopment, and increased the carrying value of undeveloped land and construction in progress.



	Three Months Ended March 31,
	2013			2012
	(in thousands)
Gross interest expense	$	27,466		$	24,994
Capitalized interest	(7,732		)	(3,831		)
Interest expense	$	19,734		$	21,163

Secured Debt [Member]

Debt Instrument [Line Items]

Balance and significant terms of debt

The following table sets forth the composition of our secured debt as of March 31, 2013 and December 31, 2012:



	Annual Stated	GAAP
Type of Debt	Interest Rate ⁽¹⁾	Effective Rate ⁽¹⁾⁽²⁾	Maturity Date	March 31, 2013 ⁽³⁾		December 31, 2012 ⁽³⁾
				(in thousands)
Mortgage note payable	4.27%	4.27%	February 2018	$	134,815	$	135,000
Mortgage note payable ⁽⁴⁾	4.48%	4.48%	July 2027	97,000		97,000
Mortgage note payable ⁽⁴⁾⁽⁵⁾	6.05%	3.50%	June 2019	94,896		—
Mortgage note payable⁽⁶⁾	6.37%	3.55%	April 2013	—		83,116
Mortgage note payable	6.51%	6.51%	February 2017	68,383		68,615
Mortgage note payable ⁽⁴⁾	5.23%	3.50%	January 2016	55,863		56,302
Mortgage note payable ⁽⁴⁾	5.57%	3.25%	February 2016	42,672		43,016
Mortgage note payable⁽⁴⁾	5.09%	3.50%	August 2015	35,245		35,379
Mortgage note payable ⁽⁴⁾	4.94%	4.00%	April 2015	28,620		28,941
Mortgage note payable	7.15%	7.15%	May 2017	10,665		11,210
Public facility bonds ⁽⁷⁾	Various	Various	Various	2,517		2,517
Total				$	570,676	$	561,096


(1)	All interest rates presented are fixed-rate interest rates.


(2)	This represents the rate at which interest expense is recorded for financial reporting purposes, which reflects the amortization of discounts/premiums, excluding debt issuance costs.


(3)	Amounts reported include the amounts of unamortized debt premiums and discounts for the periods presented.


(4)	The secured debt and the related properties that secure the debt are held in a special purpose entity and the properties are not available to satisfy the debts and other obligations of the Company or the Operating Partnership.

(5)

In January 2013, in connection with the acquisition of two office buildings in Seattle, Washington, we assumed a mortgage loan that is secured by the project. The assumed mortgage had a principal balance of $83.9 million at the acquisition date and was recorded at fair value on the date of the acquisition resulting in a premium of approximately $11.6 million. The loan requires monthly principal and interest payments based on a 6.4 year amortization period.


(6)	In January 2013, we repaid this loan prior to the stated maturity.

(7)

The public facility bonds (the “Bonds”), the proceeds from which were used to finance infrastructure improvements on one of the Company’s undeveloped land parcels, were issued in February 2008 by the City of Carlsbad. The Bonds have annual maturities from September 1, 2013 through September 1, 2038, with interest rates ranging from 4.74% to 6.19%. Principal and interest payments for the Bonds will be charged through the assessment of special property taxes.

Exchangeable Notes [Member]

Debt Instrument [Line Items]

Balance and significant terms of debt

The table below summarizes the balance and significant terms of the Company's 4.25% Exchangeable Notes due November 2014 (the "4.25% Exchangeable Notes") outstanding as of March 31, 2013 and December 31, 2012.



	4.25% Exchangeable Notes
	March 31, 2013			December 31, 2012
	(in thousands)
Principal amount	$	172,500		$	172,500
Unamortized discount	(7,478		)	(8,556		)
Net carrying amount of liability component	$	165,022		$	163,944
Carrying amount of equity component	$19,835
Issuance date	November 2009
Maturity date	November 2014
Stated coupon rate ⁽¹⁾	4.25%
Effective interest rate ⁽²⁾	7.13%
Exchange rate per $1,000 principal value of the 4.25% Exchangeable Notes, as adjusted ⁽³⁾	27.8307
Exchange price, as adjusted ⁽³⁾	$35.93
Number of shares on which the aggregate consideration to be delivered on conversion is determined ⁽³⁾	4,800,796

_____________________


(1)	Interest on the 4.25% Exchangeable Notes is payable semi-annually in arrears on May 15^th and November 15^th of each year.


(2)	The rate at which we record interest expense for financial reporting purposes, which reflects the amortization of the discounts on the 4.25% Exchangeable Notes. This rate represents our conventional debt borrowing rate at the date of issuance.


(3)	The exchange rate, exchange price, and the number of shares to be delivered upon conversion are subject to adjustment under certain circumstances including increases in our common dividends.