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

9 Months Ended

Sep. 30, 2018

The following table summarizes the balance and terms of our unsecured revolving credit facility as of September 30, 2018 and December 31, 2017:



	September 30, 2018			December 31, 2017
	(in thousands)
Outstanding borrowings	$	330,000		$	—
Remaining borrowing capacity	420,000			750,000
Total borrowing capacity ⁽¹⁾	$	750,000		$	750,000
Interest rate ⁽²⁾	3.23		%	2.56		%
Facility fee-annual rate ⁽³⁾	0.200%
Maturity date	July 2022

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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 $600.0 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% as of September 30, 2018 and December 31, 2017.

(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, 2018 and December 31, 2017, $5.0 million and $6.0 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 maturity date of our unsecured revolving credit facility

The following table summarizes the balance and terms of our unsecured term loan facility as of September 30, 2018 and December 31, 2017:



	September 30, 2018			December 31, 2017
	(in thousands)
Outstanding borrowings	$	150,000		$	—
Remaining borrowing capacity	—			150,000
Total borrowing capacity ⁽¹⁾	$	150,000		$	150,000
Interest rate ⁽²⁾	3.23		%	2.66		%
Undrawn facility fee-annual rate ⁽³⁾	0.200%
Maturity date	July 2022

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(1)	As of September 30, 2018 and December 31, 2017, $1.0 million and $1.2 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 1.100% as of September 30, 2018 and December 31, 2017.


(3)	Prior to borrowing the full capacity of our unsecured term loan facility, the undrawn facility fee was calculated based on any unused borrowing capacity and was paid on a quarterly basis.

Schedule of debt maturities

The following table summarizes the stated debt maturities and scheduled amortization payments of our issued and outstanding debt, excluding unamortized debt discounts, premiums and deferred financing costs, as of September 30, 2018:



Year	(in thousands)
Remaining 2018	$	914
2019	76,309
2020	255,137
2021	5,342
2022	485,554
Thereafter	2,068,469
Total ⁽¹⁾	$	2,891,725

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(1)	Includes gross principal balance of outstanding debt before the effect of the following at September 30, 2018: $13.3 million of unamortized deferred financing costs for the unsecured term loan facility, unsecured senior notes and secured debt, $5.7 million of unamortized discounts for the unsecured senior notes and $1.2 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 and nine months ended September 30, 2018 and 2017. 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 September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
	(in thousands)
Gross interest expense	$	30,231		$	28,331		$	85,834		$	84,577
Capitalized interest and deferred financing costs	(19,156		)	(12,180		)	(48,549		)	(33,101		)
Interest expense	$	11,075		$	16,151		$	37,285		$	51,476