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

9 Months Ended

Sep. 30, 2015

Schedule of Term Loan Facilities [Table Text Block]

The following table summarizes the balance and terms of our unsecured term loan facility as of September 30, 2015 and December 31, 2014:



	September 30, 2015			December 31, 2014
	(in thousands)
Outstanding borrowings	$	150,000		$	150,000
Interest rate ⁽¹⁾	1.35		%	1.56		%
Maturity date	July 2019

Unsecured Revolving Credit Facility

The following table summarizes the balance and terms of our unsecured revolving credit facility as of September 30, 2015 and December 31, 2014:



	September 30, 2015			December 31, 2014
	(in thousands)
Outstanding borrowings	$	—		$	140,000
Remaining borrowing capacity	600,000			460,000
Total borrowing capacity ⁽¹⁾	$	600,000		$	600,000
Interest rate ⁽²⁾	—		%	1.41		%
Facility fee-annual rate ⁽³⁾	0.200		%	0.250		%
Maturity date	July 2019

________________________


(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 unsecured revolving credit facility interest rate was calculated based on an annual rate of LIBOR plus 1.050% and LIBOR plus 1.250% as of September 30, 2015 and December 31, 2014, respectively.


(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 September 30, 2015, $4.9 million of deferred financing costs remains to be amortized through the maturity date of our unsecured revolving credit facility.

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 September 30, 2015:



Year	(in thousands)
Remaining 2015	$	327,768
2016	99,431
2017	71,748
2018	451,728
2019	265,370
Thereafter	1,441,643
Total ⁽¹⁾	$	2,657,688

________________________


(1)	Includes gross principal balance of outstanding debt before impact of net unamortized discounts totaling approximately $0.4 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 and nine months ended September 30, 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 September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
	(in thousands)
Gross interest expense	$	27,386		$	29,936		$	82,322		$	85,740
Capitalized interest and loan fees	(14,567		)	(13,328		)	(37,761		)	(35,860		)
Interest expense	$	12,819		$	16,608		$	44,561		$	49,880

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 September 30, 2015 and December 31, 2014:



Type of Debt	Annual Stated Interest Rate ⁽¹⁾	GAAP Effective Rate ⁽¹⁾⁽²⁾	Maturity Date	September 30, 2015 ⁽³⁾		December 31, 2014 ⁽³⁾
				(in thousands)
Mortgage note payable	4.27%	4.27%	February 2018	$	128,937	$	130,767
Mortgage note payable ⁽⁴⁾	4.48%	4.48%	July 2027	96,743		97,000
Mortgage note payable ⁽⁴⁾	6.05%	3.50%	June 2019	86,737		89,242
Mortgage note payable	6.51%	6.51%	February 2017	65,841		66,647
Mortgage note payable ^{(4) (5)}	5.23%	3.50%	January 2016	51,431		52,793
Mortgage note payable ^{(4) (5)}	5.57%	3.25%	February 2016	39,188		40,258
Mortgage note payable⁽⁶⁾	5.09%	3.50%	August 2015	—		34,311
Mortgage note payable ⁽⁶⁾	4.94%	4.00%	April 2015	—		26,285
Mortgage note payable	7.15%	7.15%	May 2017	4,649		6,568
Other	Various	Various	Various	2,397		2,421
Total				$	475,923	$	546,292

________________________


(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 $7.2 million and $10.3 million as of September 30, 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)	These mortgage notes payable were repaid in October 2015 at par.


(6)	These mortgage notes payable were repaid during the nine months ended September 30, 2015 at par.

Senior Notes [Member]

Debt Instrument [Line Items]

Balance and significant terms of debt

The following table summarizes the balance and significant terms of the registered unsecured senior notes issued by the Operating Partnership as of September 30, 2015 and December 31, 2014:



					Principal Amount as of
	Issuance date	Maturity date	Stated coupon rate	Effective interest rate⁽¹⁾	September 30, 2015			December 31, 2014
					(in thousands)
4.375% Unsecured Senior Notes ⁽²⁾	September 2015	October 2025	4.375%	4.440%	$	400,000		$	—
Unamortized discount					$	(2,215	)	$	—
Net carrying amount					$	397,785		$	—

4.250% Unsecured Senior Notes ⁽³⁾	July 2014	August 2029	4.250%	4.350%	$	400,000		$	400,000
Unamortized discount					(4,124		)	(4,348		)
Net carrying amount					$	395,876		$	395,652

3.800% Unsecured Senior Notes ⁽⁴⁾	January 2013	January 2023	3.800%	3.804%	$	300,000		$	300,000
Unamortized discount					(72		)	(79		)
Net carrying amount					$	299,928		$	299,921

4.800% Unsecured Senior Notes ^{(4) (5)}	July 2011	July 2018	4.800%	4.827%	$	325,000		$	325,000
Unamortized discount					(209		)	(265		)
Net carrying amount					$	324,791		$	324,735

6.625% Unsecured Senior Notes ⁽⁶⁾	May 2010	June 2020	6.625%	6.743%	$	250,000		$	250,000
Unamortized discount					(994		)	(1,154		)
Net carrying amount					$	249,006		$	248,846

5.000% Unsecured Senior Notes ⁽⁷⁾	November 2010	November 2015	5.000%	5.014%	$	325,000		$	325,000
Unamortized discount					(4		)	(33		)
Net carrying amount					$	324,996		$	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 April 1st and October 1st of each year.


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


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

(5)

In October 2015, certain common limited partners in the Operating Partnership that previously contributed their interests in the property at 6255 W. Sunset Blvd., Los Angeles, California to the Operating Partnership entered into an agreement with the Company. Pursuant to this agreement, such common limited partners will reimburse the Company for a portion of any amounts the Company may be required to pay pursuant to its guarantee of the Operating Partnership’s 4.800% Senior Notes due 2018 or that the Company may otherwise become required to pay under applicable law with respect to such notes.


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


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