Secured and Unsecured Debt of the Operating Partnership

Secured Debt

The following table sets forth the composition of our secured debt as of March 31, 2015 and December 31, 2014:



Type of Debt	Annual Stated Interest Rate ⁽¹⁾	GAAP Effective Rate ⁽¹⁾⁽²⁾	Maturity Date	March 31, 2015 ⁽³⁾		December 31, 2014 ⁽³⁾
				(in thousands)
Mortgage note payable	4.27%	4.27%	February 2018	$	130,164	$	130,767
Mortgage note payable ⁽⁴⁾	4.48%	4.48%	July 2027	97,000		97,000
Mortgage note payable ⁽⁴⁾	6.05%	3.50%	June 2019	88,411		89,242
Mortgage note payable	6.51%	6.51%	February 2017	66,383		66,647
Mortgage note payable ⁽⁴⁾	5.23%	3.50%	January 2016	52,332		52,793
Mortgage note payable ⁽⁴⁾	5.57%	3.25%	February 2016	39,895		40,258
Mortgage note payable⁽⁴⁾	5.09%	3.50%	August 2015	34,178		34,311
Mortgage note payable ⁽⁵⁾	4.94%	4.00%	April 2015	—		26,285
Mortgage note payable	7.15%	7.15%	May 2017	5,940		6,568
Other	Various	Various	Various	2,422		2,421
Total				$	516,725	$	546,292

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(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 of $9.2 million and $10.3 million as of March 31, 2015 and December 31, 2014, respectively.


(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)	This mortgage note payable was repaid during the three months ended March 31, 2015 prior to maturity at par.

Although our mortgage loans are secured and non-recourse to the Company and the Operating Partnership, the Company provides limited customary secured debt guarantees for items such as voluntary bankruptcy, fraud, misapplication of payments and environmental liabilities.

Unsecured Senior Notes

The following table summarizes the balance and significant terms of the registered unsecured senior notes issued by the Operating Partnership as of March 31, 2015 and December 31, 2014:



					Principal Amount as of
	Issuance date	Maturity date	Stated coupon rate	Effective interest rate⁽¹⁾	March 31, 2015			December 31, 2014
					(in thousands)
4.250% Unsecured Senior Notes ⁽²⁾	July 2014	August 2029	4.250%	4.350%	$	400,000		$	400,000
Unamortized discount					(4,273		)	(4,348		)
Net carrying amount					$	395,727		$	395,652

3.800% Unsecured Senior Notes ⁽³⁾	January 2013	January 2023	3.800%	3.804%	$	300,000		$	300,000
Unamortized discount					(77		)	(79		)
Net carrying amount					$	299,923		$	299,921

4.800% Unsecured Senior Notes ⁽³⁾	July 2011	July 2018	4.800%	4.827%	$	325,000		$	325,000
Unamortized discount					(246		)	(265		)
Net carrying amount					$	324,754		$	324,735

6.625% Unsecured Senior Notes ⁽⁴⁾	May 2010	June 2020	6.625%	6.743%	$	250,000		$	250,000
Unamortized discount					(1,101		)	(1,154		)
Net carrying amount					$	248,899		$	248,846

5.000% Unsecured Senior Notes ⁽⁵⁾	November 2010	November 2015	5.000%	5.014%	$	325,000		$	325,000
Unamortized discount					(23		)	(33		)
Net carrying amount					$	324,977		$	324,967

_______________________


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


(2)	Interest on these notes is payable semi-annually in arrears on February 15th and August 15th of each year.


(3)	Interest on these notes is payable semi-annually in arrears on January 15th and July 15th of each year.


(4)	Interest on these notes is payable semi-annually in arrears on June 1st and December 1st of each year.


(5)	Interest on these notes is payable semi-annually in arrears on May 3rd and November 3rd of each year.

Unsecured Revolving Credit Facility and Term Loan Facility

The following table summarizes the balance and terms of our unsecured revolving credit facility as of March 31, 2015 and December 31, 2014:



	March 31, 2015			December 31, 2014
	(in thousands)
Outstanding borrowings	$	130,000		$	140,000
Remaining borrowing capacity	470,000			460,000
Total borrowing capacity ⁽¹⁾	$	600,000		$	600,000
Interest rate ⁽²⁾	1.43		%	1.41		%
Facility fee-annual rate ⁽³⁾	0.250%
Maturity date	July 2019

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(1)	We may elect to borrow, subject to bank approval and obtaining commitments for any additional borrowing capacity, up to an additional $311.0 million under an accordion feature under the terms of the unsecured revolving credit facility and term loan facility.


(2)	Our revolving credit facility interest rate was calculated based on an annual rate of LIBOR plus 1.250%.


(3)	Our facility fee is paid on a quarterly basis and is calculated based on the total borrowing capacity. In addition to the facility fee, we incurred debt origination and legal costs. As of March 31, 2015, $5.6 million of deferred financing costs remains to be amortized through the maturity date of our unsecured revolving credit facility.

The Company intends to borrow amounts under the unsecured revolving credit facility from time to time for general corporate purposes, to fund potential acquisitions, to finance development and redevelopment expenditures and to potentially repay long-term debt.

The following table summarizes the balance and terms of our term loan facility as of March 31, 2015 and December 31, 2014:



	March 31, 2015			December 31, 2014
	(in thousands)
Outstanding borrowings	$	150,000		$	150,000
Interest rate ⁽¹⁾	1.58		%	1.56		%
Maturity date	July 2019

_______________


(1)	Our unsecured term loan facility interest rate was calculated based on an annual rate of LIBOR plus 1.40%.

Additionally, the Company has a $39.0 million unsecured term loan with an annual interest rate of LIBOR plus 1.40% that matures in July 2019.

Debt Covenants and Restrictions

The unsecured revolving credit facility, the unsecured term loan facility, the unsecured term loan, the unsecured senior notes, and certain other secured debt arrangements contain covenants and restrictions requiring us to meet certain financial ratios and reporting requirements. Some of the more restrictive financial covenants include a maximum ratio of total debt to total asset value, a minimum fixed-charge coverage ratio, a minimum unsecured debt ratio and a minimum unencumbered asset pool debt service coverage ratio. Noncompliance with one or more of the covenants and restrictions could result in the full principal balance of the associated debt becoming immediately due and payable. We believe we were in compliance with all of our debt covenants as of March 31, 2015.

Debt Maturities

The following table summarizes the stated debt maturities and scheduled amortization payments, excluding debt discounts and premiums, as of March 31, 2015:



Year	(in thousands)
Remaining 2015	$	366,630
2016	99,431
2017	71,748
2018	451,728
2019	395,369
Thereafter	1,041,644
Total ⁽¹⁾	$	2,426,550

________________________


(1)	Includes gross principal balance of outstanding debt before impact of net unamortized premiums totaling approximately $3.5 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, 2015 and 2014. 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,
	2015			2014
	(in thousands)
Gross interest expense	$	27,749		$	28,034
Capitalized interest and loan fees	(10,871		)	(10,782		)
Interest expense	$	16,878		$	17,252