Debt (Tables)

12 Months Ended

Dec. 31, 2016

Debt Instrument [Line Items]

Debt Summary

The following table summarizes our debt at December 31 (dollars in thousands):

	2016					2015
	Weighted Average Interest Rate (1)			Amount Outstanding (2)		Weighted Average Interest Rate (1)			Amount Outstanding
Credit facilities		1.0	%	$	35,023	-			$	-
Senior notes (3)		3.3	%		6,417,492		3.3	%		6,516,392
Term loans		1.4	%		1,484,523		2.1	%		2,100,009
Unsecured other (4)		6.1	%		14,478		6.2	%		15,448
Secured mortgages (5)		4.9	%		979,585		5.1	%		1,172,473
Secured mortgages of consolidated entities (6)		3.0	%		1,677,193		2.9	%		1,822,509
Totals		3.2	%	$	10,608,294		3.2	%	$	11,626,831

(1) The interest rates presented represent the effective interest rates (including amortization of debt issuance costs and the noncash premiums or discounts) at the end of the period for the debt outstanding.

(2) Included in the outstanding balances are borrowings denominated in non-U.S. dollars, principally: euro ($3.3 billion), Japanese yen ($1.3 billion), Canadian dollars ($0.4 billion) and British pound sterling ($0.2 billion).

(3) Notes are due January 2018 to June 2026 with effective interest rates ranging from 1.5% to 7.6% at December 31, 2016.

(4) The balance at December 31, 2016, represents primarily assessment bonds that are due November 2019 to September 2033 with effective interest rates ranging from 4.5% to 7.9%. The assessment bonds are issued by municipalities and guaranteed by us as a means of financing infrastructure and secured by assessments (similar to property taxes) on various underlying real estate properties with an aggregate undepreciated cost of $737.4 million at December 31, 2016.

(5) Debt is due May 2018 to December 2025 with effective interest rates ranging from 0.4% to 7.8% at December 31, 2016. The debt is secured by 145 real estate properties with an aggregate undepreciated cost of $2.4 billion at December 31, 2016.

(6) Debt is due July 2017 to December 2027 with effective interest rates ranging from 2.4% to 5.3% at December 31, 2016. The debt is secured by 208 real estate properties with an aggregate undepreciated cost of $3.0 billion at December 31, 2016.

Credit Facilities

The following table summarizes information about our Credit Facilities (dollars in millions):

	2016			2015			2014
For the years ended December 31:
Weighted average daily interest rate		1.4	%		1.1	%		1.1	%
Weighted average daily borrowings	$	128		$	261		$	182
Maximum borrowings outstanding at any month-end	$	307		$	942		$	742
At December 31:
Aggregate lender – commitments	$	3,306		$	2,662		$	2,742
Less:
Borrowings outstanding		35			-			-
Outstanding letters of credit		36			32			35
Current availability	$	3,235		$	2,630		$	2,707

Long-Term Debt Maturities

Principal payments due on our debt, for each year through the period ending December 31, 2026, and thereafter were as follows at December 31, 2016 (in thousands):

	Unsecured
		Credit		Senior			Term Loans			Secured
Maturity		Facilities		Notes			and Other			Mortgage Debt			Total
2017 (1) (2)		$	-	$	-		$	194,150		$	428,196		$	622,346
2018			35,023		175,000			961			570,291			781,275
2019			-		618,294			1,084			446,360			1,065,738
2020			-		831,071			1,190			428,725			1,260,986
2021			-		1,237,871			1,012			141,548			1,380,431
2022			-		737,870			427,886			163,172			1,328,928
2023			-		850,000			874,916			174,624			1,899,540
2024			-		737,870			911			133,308			872,089
2025			-		750,000			976			134,727			885,703
2026			-		527,050			696			1,223			528,969
Thereafter			-		-			5,368			1,161			6,529
Subtotal			35,023		6,465,026			1,509,150			2,623,335			10,632,534
Premiums (discounts), net			-		(19,573	)		-			43,286			23,713
Debt issuance costs, net			-		(27,961	)		(10,149	)		(9,843	)		(47,953	)
Totals		$	35,023	$	6,417,492		$	1,499,001		$	2,656,778		$	10,608,294

(1) We expect to repay the amounts maturing in 2017 with cash generated from operations, proceeds from dispositions of wholly owned real estate properties, or as necessary, with borrowings on our Credit Facilities.

(2) Included in 2017 maturities is the Euro Term Loan that can be extended until 2019.

Interest Expense

The following table summarizes the components of interest expense for the years ended December 31 (in thousands):

	2016			2015			2014
Gross interest expense	$	383,098		$	394,012		$	377,666
Amortization of premium, net		(30,596	)		(45,253	)		(21,440	)
Amortization of debt issuance costs		15,459			13,412			14,116
Interest expense before capitalization	$	367,961		$	362,171		$	370,342
Capitalized amounts		(64,815	)		(60,808	)		(61,457	)
Net interest expense	$	303,146		$	301,363		$	308,885
Total cash paid for interest, net of amounts capitalized	$	322,442		$	345,916		$	258,441

Activity Related to Repurchase of Debt and Net Loss on Early Extinguishment of Debt

The following table summarizes the activity related to the repurchase of debt and net loss on early extinguishment of debt for the years ending December 31 (in millions):

	2015		2014
Senior notes:
Original principal amount	$	709.7	$	1,290.4
Cash purchase price	$	789.0	$	1,460.3
Term loans:
Original principal amount	$	600.0	$	-
Cash repayment price	$	600.0	$	-
Secured mortgage debt:
Original principal amount	$	571.5	$	528.0
Cash repayment price	$	595.5	$	531.2
Total:
Original principal amount	$	1,881.2	$	1,818.4
Cash purchase / repayment price	$	1,984.5	$	1,991.5
Losses on early extinguishment of debt	$	86.3	$	165.3

Senior Notes [Member]

Debt Instrument [Line Items]

Schedule of Debt

During the years ended December 31 we issued the following senior notes (dollars and euros in thousands):

	Principal Amount				Stated Interest Rate		Effective Interest Rate		Maturity Date
2015
May 2015 (1)	€	700,000	$	785,470		1.4%		1.5%	May 2021
October 2015			$	750,000		3.8%		4.0%	November 2025
2014
February 2014 (1)	€	700,000	$	959,420		3.4%		3.5%	February 2024
June 2014 (1)	€	500,000	$	680,550		3.0%		3.1%	June 2026
October 2014 (1)	€	600,000	$	756,420		1.4%		1.4%	October 2020

(1) This debt is denominated in euro and the exchange rate used to calculate into U.S. dollar was the effective rate at the date of the transaction.

Term Loans [Member]

Debt Instrument [Line Items]

Schedule of Debt

The following table summarizes our outstanding term loans at December 31 (dollars and borrowing currency in thousands):

Term Loan	Borrowing Currency	Initial Borrowing Date	Lender Commitment at 2016				Amount Outstanding at 2016			Amount Outstanding at 2015			Interest Rate	Maturity Date
			Borrowing Currency		USD		USD			USD
2014 Yen Term Loan (1)	JPY	May 2014					$	-		$	339,858		LIBOR plus 1.20%
Euro Term Loan (2)	USD, EUR, JPY and GBP	June 2014	€	500,000	$	525,000		193,293			561,879		LIBOR plus 0.98%	June 2017
Senior Term Loan (3)	USD	May 2015						-			400,000		LIBOR plus 1.00%
2015 Yen Term Loan (1)	JPY	June 2015						-			539,906		LIBOR plus 1.10%
2015 Canadian Term Loan	CAD	December 2015	$	371,925	$	276,322		276,322			267,872		CDOR rate plus 1.50%	February 2023
Yen Term Loan (1)	JPY	August 2016	¥	120,000,000	$	1,025,057		1,025,057			-		Yen LIBOR plus 0.65%	August 2022 and 2023
Subtotal								1,494,672			2,109,515
Debt issuance costs, net								(10,149	)		(9,506	)
Totals							$	1,484,523		$	2,100,009

(1) In March 2016, we entered into an unsecured senior term loan agreement under which we could draw in Japanese yen and borrowed ¥11.2 billion ($99.5 million). In August 2016, we entered into a separate unsecured senior term loan agreement (the “Yen Term Loan”) under which we can draw in Japanese yen, of which ¥50.0 billion ($427.1 million at December 31, 2016) matures in August 2022 and ¥70.0 billion ($597.9 million at December 31, 2016) matures in August 2023. We may increase the borrowings up to ¥200.0 billion ($1.7 billion at December 31, 2016), subject to obtaining additional lender commitments. In the third quarter of 2016, we borrowed on the Yen Term Loan ($1.2 billion) and used the proceeds to repay and cancel the previous outstanding Japanese yen term loans entered into in 2014 and 2015 and 2016. The Yen Term Loan was fully drawn at December 31, 2016.

(2) We may increase the borrowings up to €1.0 billion ($1.1 billion at December 31, 2016), subject to obtaining additional lender commitments. We may pay down and reborrow on this term loan. We may extend the maturity date twice, by one year each, subject to the satisfaction of certain conditions and payment of an extension fee.

(3) We entered into the Senior Term Loan in connection with the KTR transaction and initially borrowed $1.0 billion. During 2016, we paid down the remaining balance and cancelled Senior Term Loan.