Secured and Unsecured Debt of the Operating Partnership (Tables) - Kilroy Realty, L.P. [Member]
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12 Months Ended |
Dec. 31, 2017 |
Debt Instrument [Line Items] |
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Schedule of unsecured revolving credit facility |
The following table summarizes the balance and terms of our unsecured revolving credit facility as of December 31, 2017 and 2016: | | | | | | | | | | December 31, 2017 | | December 31, 2016 | | (in thousands) | Outstanding borrowings | $ | — |
| | $ | — |
| Remaining borrowing capacity | 750,000 |
| | 600,000 |
| Total borrowing capacity (1) | $ | 750,000 |
| | $ | 600,000 |
| Interest rate (2) | 2.56 | % | | 1.82 | % | Facility fee-annual rate (3) | 0.200% | Maturity date | July 2022 |
| | July 2019 |
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_______________ | | (1) | As of December 31, 2017, we may elect to borrow, subject to bank approval and obtaining commitments for any additional borrowing capacity, up to an additional $600.0 million under an accordion feature under the terms of the unsecured revolving credit facility and unsecured term loan facility. As of December 31, 2016, we had the option 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) | Our unsecured revolving credit facility interest rate was calculated based on an annual rate of LIBOR plus 1.000% and LIBOR plus 1.050% as of December 31, 2017 and December 31, 2016, 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 December 31, 2017 and 2016, $6.0 million and $3.3 million of unamortized deferred financing costs, respectively, which are included in prepaid expenses and other assets, net on our consolidated balance sheets, remained to be amortized through the respective maturity date of our unsecured revolving credit facility, |
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Schedule of term loan facility |
The following table summarizes the balance and terms of our unsecured term loan facility as of December 31, 2017 and 2016:
| | | | | | | | | | December 31, 2017 | | December 31, 2016 | | (in thousands) | Outstanding borrowings (1) | $ | — |
| | $ | 150,000 |
| Remaining borrowing capacity | 150,000 |
| | — |
| Total borrowing capacity (2) | $ | 150,000 |
| | $ | 150,000 |
| Interest rate (3) | 2.66 | % | | 1.85 | % | Undrawn facility fee-annual rate (4) | 0.200 | % | | — | % | Maturity date | July 2022 |
| | July 2019 |
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_______________ | | (1) | In July 2017, the unsecured term loan facility was paid down and the Facility was amended to include a 12-month delayed draw option (subject to a specified reduction in commitments unless 50% drawn within six months) on the unsecured term loan facility. The Company may draw on the unsecured term loan facility through July 2018, at which time the outstanding balance will become the balance of the unsecured term loan facility and no additional draws may be made. In January 2018, the Company borrowed $75.0 million under the unsecured term loan facility. |
| | (2) | As of December 31, 2017 and December 31, 2016, $1.2 million and $0.7 million of unamortized deferred financing costs, respectively, remained to be amortized through the maturity date of our unsecured term loan facility. |
| | (3) | Our unsecured term loan facility interest rate was calculated based on an annual rate of LIBOR plus 1.100% and LIBOR plus 1.150% as of December 31, 2017 and December 31, 2016, respectively. |
| | (4) | In July 2017, the Facility was amended to include a facility fee on the remaining borrowing capacity of the unsecured term loan facility, which is paid on a monthly basis. |
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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, 2017:
| | | | | Year | (in thousands) | 2018 | $ | 3,584 |
| 2019 | 76,309 |
| 2020 | 255,137 |
| 2021 | 5,342 |
| 2022 | 5,554 |
| Thereafter | 2,018,469 |
| Total aggregate principal value (1) | $ | 2,364,395 |
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________________________ | | (1) | Includes gross principal balance of outstanding debt before the effect of the following at December 31, 2017: $13.6 million of unamortized deferred financing costs for the unsecured senior notes and secured debt, $6.3 million of unamortized discounts for the unsecured senior notes and $2.6 million of unamortized premiums for the secured debt. |
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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 years ended December 31, 2017, 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.
| | | | | | | | | | | | | | Year Ended December 31, | | 2017 | | 2016 | | 2015 | | (in thousands) | Gross interest expense | $ | 112,577 |
| | $ | 105,263 |
| | $ | 109,647 |
| Capitalized interest and deferred financing costs | (46,537 | ) | | (49,460 | ) | | (51,965 | ) | Interest expense | $ | 66,040 |
| | $ | 55,803 |
| | $ | 57,682 |
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Secured debt [Member] |
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Debt Instrument [Line Items] |
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Debt balance and significant terms |
The following table sets forth the composition of our secured debt as of December 31, 2017 and 2016:
| | | | | | | | | | | | | | | | Annual Stated Interest Rate (1) | | GAAP Effective Rate (1)(2) | | Maturity Date | | December 31, | Type of Debt | | | | 2017 | | 2016 | | | | | | | | (in thousands) | Mortgage note payable | 3.57% | | 3.57% | | December 2026 | | $ | 170,000 |
| | $ | 170,000 |
| Mortgage note payable (3) | 4.48% | | 4.48% | | July 2027 | | 93,081 |
| | 94,754 |
| Mortgage note payable (3)(4) | 6.05% | | 3.50% | | June 2019 | | 78,894 |
| | 82,443 |
| Mortgage note payable (3)(5) | 4.27% | | 4.27% | | February 2018 | | — |
| | 125,756 |
| Mortgage note payable (6) | 7.15% | | 7.15% | | May 2017 | | — |
| | 1,215 |
| Total secured debt | | | | | | | $ | 341,975 |
| | $ | 474,168 |
| Unamortized Deferred Financing Costs | | | | | | | (1,175 | ) | | (1,396 | ) | Total secured debt, net | | | | | | | $ | 340,800 |
| | $ | 472,772 |
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______________ | | (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) | 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. |
| | (4) | As of December 31, 2017 and 2016, the mortgage loan had unamortized debt premiums of $2.6 million and $4.4 million, respectively. |
| | (5) | This mortgage note payable, held by a consolidated property partnership, was repaid in November 2017 at par. NBREM contributed $54.4 million to fund their proportionate share of the payoff. Refer to Note 11 “Noncontrolling Interests on Company’s Consolidated Financial Statements” for additional information. |
| | (6) | This mortgage note payable was repaid in February 2017 at par. |
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Unsecured senior notes [Member] |
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Debt Instrument [Line Items] |
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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 and outstanding, which are presented net of unamortized discounts of $6.3 million and $6.6 million, as of December 31, 2017 and 2016, respectively:
| | | | | | | | | | | | | | | | | | | | | | | | | | Net Carrying Amount as of December 31, | | Issuance date | | Maturity date | | Stated coupon rate | | Effective interest rate (1) | | 2017 | | 2016 | | | | | | | | | | (in thousands) | 3.450% Unsecured Senior Notes (2) | December 2017 | | December 2024 | | 3.450% | | 3.471% | | $ | 425,000 |
| | $ | — |
| Unamortized discount and deferred financing costs | | | | | | | | | (4,047 | ) | | — |
| Net carrying amount | | | | | | | | | $ | 420,953 |
| | $ | — |
| | | | | | | | | | | | | 3.450% Unsecured Senior Notes (3) | February 2017 | | February 2029 | | 3.450% | | 3.450% | | $ | 75,000 |
| | $ | — |
| Unamortized discount and deferred financing costs | | | | | | | | | (475 | ) | | — |
| Net carrying amount | | | | | | | | | $ | 74,525 |
| | $ | — |
| | | | | | | | | | | | | 3.350% Unsecured Senior Notes (3) | February 2017 | | February 2027 | | 3.350% | | 3.350% | | $ | 175,000 |
| | $ | — |
| Unamortized discount and deferred financing costs | | | | | | | | | (1,056 | ) | | — |
| Net carrying amount | | | | | | | | | $ | 173,944 |
| | $ | — |
| | | | | | | | | | | | | 4.375% Unsecured Senior Notes (4) | September 2015 | | October 2025 | | 4.375% | | 4.444% | | $ | 400,000 |
| | $ | 400,000 |
| Unamortized discount and deferred financing costs | | | | | | | | | (4,292 | ) | | (4,846 | ) | Net carrying amount | | | | | | | | | $ | 395,708 |
| | $ | 395,154 |
| | | | | | | | | | | | | 4.250% Unsecured Senior Notes (5) | July 2014 | | August 2029 | | 4.250% | | 4.352% | | $ | 400,000 |
| | $ | 400,000 |
| Unamortized discount and deferred financing costs | | | | | | | | | (6,164 | ) | | (6,696 | ) | Net carrying amount | | | | | | | | | $ | 393,836 |
| | $ | 393,304 |
| | | | | | | | | | | | | 3.800% Unsecured Senior Notes (6) | January 2013 | | January 2023 | | 3.800% | | 3.804% | | $ | 300,000 |
| | $ | 300,000 |
| Unamortized discount and deferred financing costs | | | | | | | | | (1,382 | ) | | (1,656 | ) | Net carrying amount | | | | | | | | | $ | 298,618 |
| | $ | 298,344 |
| | | | | | | | | | | | | 4.800% Unsecured Senior Notes (6)(7) | July 2011 | | July 2018 | | 4.800% | | 4.827% | | $ | — |
| | $ | 325,000 |
| Unamortized discount and deferred financing costs | | | | | | | | | — |
| | (767 | ) | Net carrying amount | | | | | | | | | $ | — |
| | $ | 324,233 |
| | | | | | | | | | | | | 6.625% Unsecured Senior Notes (8) | May 2010 | | June 2020 | | 6.625% | | 6.744% | | $ | 250,000 |
| | $ | 250,000 |
| Unamortized discount and deferred financing costs | | | | | | | | | (1,321 | ) | | (1,868 | ) | Net carrying amount | | | | | | | | | $ | 248,679 |
| | $ | 248,132 |
| | | | | | | | | | | | | Total Unsecured Senior Notes, Net | | | | | | | | | $ | 2,006,263 |
| | $ | 1,659,167 |
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________________________ | | (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 June 15th and December 15th of each year. |
| | (3) | Interest on these notes is payable semi-annually in arrears on February 17th and August 17th of each year. |
| | (4) | Interest on these notes is payable semi-annually in arrears on April 1st and October 1st of each year. |
| | (5) | Interest on these notes is payable semi-annually in arrears on February 15th and August 15th of each year. |
| | (6) | Interest on these notes is payable semi-annually in arrears on January 15th and July 15th of each year. |
| | (7) | 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. These notes were redeemed by the Company in December 2017. |
| | (8) | Interest on these notes is payable semi-annually in arrears on June 1st and December 1st of each year. |
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