Secured and Unsecured Debt of the Operating Partnership (Tables)

12 Months Ended

Dec. 31, 2016

The following table summarizes the total interest expense attributable to the 4.25% Exchangeable Notes prior to maturity in November 2014, based on the effective interest rates, before the effect of capitalized interest, for the year ended December 31, 2014:



	Year Ended December 31, 2014

Contractual interest payments	$	5,608
Amortization of discount	3,769
Interest expense attributable to the 4.25% Exchangeable Notes	$	9,377

Per share average trading price of the Company's common stock



	Period Ended November 15, 2014 ⁽¹⁾
Per share average trading price of the Company's common stock	$	60.04

_______________

(1) Represents the maturity date of the 4.25% Exchangeable Notes.

Kilroy Realty, L.P. [Member]

Debt Instrument [Line Items]

Schedule of unsecured revolving credit facility

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



	December 31, 2016			December 31, 2015
	(in thousands)
Outstanding borrowings	$	—		$	—
Remaining borrowing capacity	600,000			600,000
Total borrowing capacity ⁽¹⁾	$	600,000		$	600,000
Interest rate ⁽²⁾	1.82		%	1.48		%
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 unsecured term loan facility.


(2)	The interest rate on our unsecured revolving credit facility is based on an annual rate of LIBOR plus1.050%.

(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 December 31, 2016 and 2015, $3.3 million and $4.6 million of deferred financing costs 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.

Schedule of term loan facility

The following table summarizes the balance and terms of our term loan facility, which is included in our unsecured debt, as of December 31, 2016 and 2015:



	December 31, 2016			December 31, 2015
	(in thousands)
Outstanding borrowings ⁽¹⁾	$	150,000		$	150,000
Interest rate ⁽²⁾	1.85		%	1.40		%
Maturity date	July 2019

_______________


(1)	As of December 31, 2016 and December 31, 2015, $0.7 million and $0.9 million of unamortized deferred financing costs, respectively, remained to be amortized through the maturity date of our unsecured term loan facility.


(2)	Our unsecured term loan facility interest rate was calculated based on an annual rate of LIBOR plus 1.150%.

Stated debt maturities and scheduled amortization payments, excluding debt discounts

The following table summarizes the stated debt maturities and scheduled amortization payments as of December 31, 2016:



Year	(in thousands)
2017	$	7,286
2018	451,669
2019	265,309
2020	255,137
2021	5,342
Thereafter	1,349,023
Total aggregate principal value ⁽¹⁾⁽²⁾	$	2,333,766

________________________


(1)	Includes gross principal balance of outstanding debt before the effect of the following at December 31, 2016: $11.5 million of unamortized deferred financing costs, $6.6 million of unamortized discounts for the unsecured senior notes and $4.4 million of unamortized premiums for the secured debt.


(2)	Excludes the Series A and B Notes issuable pursuant to the Note Purchase Agreement entered into in September 2016 as no Series A or B Notes were issued and outstanding under these notes as of December 31, 2016.

Capitalized interest and loan fees

The following table sets forth gross interest expense reported in continuing operations, including debt discount/premium and deferred financing cost amortization, net of capitalized interest, for the years ended December 31, 2016, 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.



	Year Ended December 31,
	2016			2015			2014
	(in thousands)
Gross interest expense	$	105,263		$	109,647		$	114,661
Capitalized interest	(49,460		)	(51,965		)	(47,090		)
Interest expense	$	55,803		$	57,682		$	67,571

Kilroy Realty, L.P. [Member] | Secured debt [Member]

Debt Instrument [Line Items]

Debt balance and significant terms

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



	Annual Stated Interest Rate ⁽¹⁾	GAAP Effective Rate ⁽¹⁾⁽²⁾	Maturity Date	December 31,
Type of Debt	Annual Stated Interest Rate ⁽¹⁾	GAAP Effective Rate ⁽¹⁾⁽²⁾	Maturity Date	2016			2015
				(in thousands)
Mortgage note payable ⁽³⁾	3.57%	3.57%	December 2026	$	170,000		$	—
Mortgage note payable ⁽⁴⁾	4.27%	4.27%	February 2018	125,756			128,315
Mortgage note payable ⁽⁴⁾	4.48%	4.48%	July 2027	94,754			96,354
Mortgage note payable ⁽⁴⁾⁽⁵⁾	6.05%	3.50%	June 2019	82,443			85,890
Mortgage note payable⁽⁶⁾	7.15%	7.15%	May 2017	1,215			3,987
Mortgage note payable ⁽⁷⁾	6.51%	6.51%	February 2017	—			65,563
Other ⁽⁸⁾	Various	Various	Various	—			1,809
Total secured debt				$	474,168		$	381,918
Unamortized Deferred Financing Costs				(1,396		)	(1,083		)
Total secured debt, net				$	472,772		$	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)	This mortgage note payable was entered into in November 2016.


(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)	As of December 31, 2016 and 2015, the mortgage loan had unamortized debt premiums of $4.4 million and $6.2 million, respectively.


(6)	This mortgage note payable was repaid in February 2017 at par.


(7)	This mortgage note payable was repaid in December 2016 at par.


(8)	Balance of $1.8 million as of December 31, 2015 included public facility bonds that were assumed by the buyers in connection with sales of land during the year ended December 31, 2016.

Kilroy Realty, L.P. [Member] | Unsecured senior notes [Member]

Debt Instrument [Line Items]

Debt balance and significant terms

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



					Net Carrying Amount as of December 31,
	Issuance date	Maturity date	Stated coupon rate	Effective interest rate⁽¹⁾	2016			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					(4,846		)	(5,400		)
Net carrying amount					$	395,154		$	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					(6,696		)	(7,228		)
Net carrying amount					$	393,304		$	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					(1,656		)	(1,931		)
Net carrying amount					$	298,344		$	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					(767		)	(1,251		)
Net carrying amount					$	324,233		$	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					(1,868		)	(2,414		)
Net carrying amount					$	248,132		$	247,586

Total Unsecured Senior Notes, Net					$	1,659,167		$	1,656,776

________________________


(1)	Represents the effective interest rate including the amortization of initial issuance discounts, 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.