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

3 Months Ended

Mar. 31, 2016

The following table summarizes the balance and terms of our unsecured revolving credit facility as of March 31, 2016 and December 31, 2015:



	March 31, 2016			December 31, 2015
	(in thousands)
Outstanding borrowings	$	75,000		$	—
Remaining borrowing capacity	525,000			600,000
Total borrowing capacity ⁽¹⁾	$	600,000		$	600,000
Interest rate ⁽²⁾	1.49		%	—		%
Facility fee-annual rate ⁽³⁾	0.200%
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% as of March 31, 2016 and December 31, 2015.

(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, 2016 and December 31, 2015, $4.3 million and $4.6 million, of unamortized deferred financing costs, respectively, remained to be amortized through the maturity date of our unsecured revolving credit facility, which are included in prepaid expenses and other assets, net on our consolidated balance sheets.

The following table summarizes the balance and terms of our unsecured term loan facility as of March 31, 2016 and December 31, 2015:



	March 31, 2016			December 31, 2015
	(in thousands)
Outstanding borrowings ⁽¹⁾	$	150,000		$	150,000
Interest rate ⁽²⁾	1.59		%	1.40		%
Maturity date	July 2019

________________________


(1)	As of March 31, 2016 and December 31, 2015, $0.9 million of unamortized deferred financing costs remained to be amortized through the maturity date of our unsecured term loan facility.

Schedule of Debt Maturities

The following table summarizes the stated debt maturities and scheduled amortization payments, excluding unamortized debt discounts, premiums and deferred financing costs, as of March 31, 2016:



Year	(in thousands)
Remaining 2016	$	7,356
2017	71,734
2018	451,713
2019	340,355
2020	251,962
Thereafter	1,189,198
Total ⁽¹⁾	$	2,312,318

________________________


(1)	Includes gross principal balance of outstanding debt before the effect of the following at March 31, 2016: $12.5 million of unamortized deferred financing costs, $7.2 million of unamortized discounts for the unsecured senior notes and $5.8 million of unamortized premiums for the secured debt.

Capitalized interest and loan fees

The following table sets forth gross interest expense, including debt discount/premium and deferred financing cost amortization, net of capitalized interest, for the three months ended March 31, 2016 and 2015. The interest expense capitalized was recorded as a cost of development and increased the carrying value of undeveloped land and construction in progress.



	Three Months Ended March 31,
	2016			2015
	(in thousands)
Gross interest expense	$	26,175		$	27,749
Capitalized interest and deferred financing costs	(14,346		)	(10,871		)
Interest expense	$	11,829		$	16,878

Secured Debt [Member]

Debt Instrument [Line Items]

Schedule of Debt

The following table sets forth the composition of our secured debt as of March 31, 2016 and December 31, 2015:



Type of Debt	Annual Stated Interest Rate ⁽¹⁾	Effective Interest Rate ⁽¹⁾⁽²⁾	Maturity Date	March 31, 2016			December 31, 2015
				(in thousands)
Mortgage note payable⁽⁴⁾	4.27%	4.27%	February 2018	$	127,684		$	128,315
Mortgage note payable ⁽⁴⁾	4.48%	4.48%	July 2027	95,961			96,354
Mortgage note payable ⁽³⁾ ⁽⁴⁾	6.05%	3.50%	June 2019	85,037			85,890
Mortgage note payable	6.51%	6.51%	February 2017	65,281			65,563
Mortgage note payable	7.15%	7.15%	May 2017	3,314			3,987
Other	Various	Various	Various	1,809			1,809
Total secured debt				$	379,086		$	381,918
Unamortized deferred financing costs				(1,006		)	(1,083		)
Total secured debt, net				$	378,080		$	380,835

________________________


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


(2)	Represents the effective interest rate including the amortization of initial issuance discounts/premiums excluding the amortization of deferred financing costs.


(3)	Amounts reported include the amounts of unamortized debt premiums of $5.8 million and $6.2 million as of March 31, 2016 and December 31, 2015, 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.

Unsecured Senior Notes [Member]

Debt Instrument [Line Items]

Schedule of Debt

The following table summarizes the balance and significant terms of the registered unsecured senior notes issued by the Operating Partnership as of March 31, 2016 and December 31, 2015:



					Principal Amount as of
	Issuance date	Maturity date	Stated coupon rate	Effective interest rate⁽¹⁾	March 31, 2016			December 31, 2015
					(in thousands)
4.375% Unsecured Senior Notes ⁽²⁾	September 2015	October 2025	4.375%	4.440%	$	400,000		$	400,000
Unamortized discount and deferred financing costs					(5,261		)	(5,400		)
Net carrying amount					$	394,739		$	394,600

4.250% Unsecured Senior Notes ⁽³⁾	July 2014	August 2029	4.250%	4.350%	$	400,000		$	400,000
Unamortized discount and deferred financing costs					(7,095		)	(7,228		)
Net carrying amount					$	392,905		$	392,772

3.800% Unsecured Senior Notes ⁽⁴⁾	January 2013	January 2023	3.800%	3.804%	$	300,000		$	300,000
Unamortized discount and deferred financing costs					(1,862		)	(1,931		)
Net carrying amount					$	298,138		$	298,069

4.800% Unsecured Senior Notes ^{(4) (5)}	July 2011	July 2018	4.800%	4.827%	$	325,000		$	325,000
Unamortized discount and deferred financing costs					(1,129		)	(1,251		)
Net carrying amount					$	323,871		$	323,749

6.625% Unsecured Senior Notes ⁽⁶⁾	May 2010	June 2020	6.625%	6.743%	$	250,000		$	250,000
Unamortized discount and deferred financing costs					(2,279		)	(2,414		)
Net carrying amount					$	247,721		$	247,586

Total Unsecured Senior Notes, Net					$	1,657,374		$	1,656,776

________________________


(1)	Represents the effective interest rate including the amortization of initial issuance discounts/premiums excluding the amortization of deferred financing 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.