Debt (Tables)

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Debt Summary

All debt is incurred by the OP or its consolidated subsidiaries.

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

	2019					2018
	Weighted Average Interest Rate (1)			Amount Outstanding (2)		Weighted Average Interest Rate (1)			Amount Outstanding (2)
Credit facilities		0.4	%	$	184,255		3.4	%	$	50,500
Senior notes (3)		2.4	%		9,660,570		2.7	%		8,304,147
Term loans and unsecured other		0.9	%		1,441,882		1.8	%		1,921,428
Secured mortgage (4)		3.4	%		619,170		5.1	%		813,740
Total		2.2	%	$	11,905,877		2.7	%	$	11,089,815

(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) We borrow in the functional currencies of the countries where we invest. Included in the outstanding balances at December 31 were borrowings denominated in the following currencies:

	2019					2018
	Amount Outstanding		% of Total			Amount Outstanding		% of Total
British pound sterling	$	656,549		5.5	%	$	635,972		5.8	%
Canadian dollar		279,730		2.3	%		266,337		2.4	%
Euro		6,128,986		51.5	%		4,893,693		44.1	%
Japanese yen		2,329,381		19.6	%		1,951,844		17.6	%
U.S. dollar		2,511,231		21.1	%		3,341,969		30.1	%
Total	$	11,905,877				$	11,089,815

(3) Senior notes are due from January 2020 to September 2049 with effective interest rates ranging from -0.1% to 4.5% at December 31, 2019. The senior notes of €400 million ($445.9 million) bearing a floating rate of Euribor plus 0.3%, were redeemed in January 2020, primarily with the proceeds from the senior notes issued in September 2019, as discussed below.

(4) Secured mortgage debt is due from April 2020 to November 2027 with effective interest rates ranging from 0.2% to 7.8% at December 31, 2019. The debt was principally secured by 87 operating properties, one prestabilized property and one property under development with an aggregate undepreciated cost of $1.7 billion at December 31, 2019.

Credit Facilities

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

	2019			2018			2017
For the years ended December 31:
Weighted average daily interest rate		1.5	%		3.1	%		1.3	%
Weighted average daily borrowings	$	85		$	253		$	111
Maximum borrowings outstanding at any month-end	$	257		$	485		$	317
At December 31:
Aggregate lender commitments	$	3,946		$	3,470		$	3,490
Less:
Borrowings outstanding		184			51			317
Outstanding letters of credit		36			31			33
Current availability	$	3,726		$	3,388		$	3,140

Schedule of Debt

The following table summarizes the issuances of senior notes during 2019 (principal in thousands):

Initial Borrowing Date	Principal (1)				Stated Interest Rate	Maturity Date
	Borrowing Currency		USD
March	¥	10,000,000	$	90,531	1.2%	March 2039
September	€	1,800,000	$	1,987,200	0.3% – 1.5%	September 2027 – 2049

(1) The exchange rate used to calculate into U.S. dollars was the spot rate at the settlement date.

Summary of Outstanding Term Loans

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 2019				Amount Outstanding at 2019			Amount Outstanding at 2018			Interest Rate	Maturity Date
			Borrowing Currency		USD		USD			USD
2017 Term Loan (1)	USD, EUR, JPY and GBP	June 2014	$	500,000	$	500,000	$	-		$	500,000		LIBOR + 0.9%	May 2020
2015 Canadian      Term Loan	CAD	December 2015	$	170,506	$	131,214		131,214			125,107		CDOR + 0.9%	February 2023
2016 Yen Term      Loan (2)	JPY	August 2016		-		-		-			909,813		Yen LIBOR + 0.7%	August 2022 – 2023
March 2017 Yen      Term Loan	JPY	March 2017	¥	12,000,000	$	110,553		110,553			109,178		0.9% and 1.0%	March 2027 – 2028
October 2017 Yen      Term Loan	JPY	October 2017	¥	10,000,000	$	92,127		92,127			90,981		0.9%	October 2032
December 2018 Yen      Term Loan	JPY	December 2018	¥	20,000,000	$	184,254		184,254			181,963		1.2% and Yen LIBOR + 0.7%	December 2031 – June 2033
January 2019 Yen      Term Loan	JPY	January 2019	¥	15,000,000	$	138,191		138,191			-		Yen LIBOR + 0.5% to 0.6%	January 2028 – 2030
March 2019 Yen      Term Loan (2)	JPY	March 2019	¥	85,000,000	$	783,082		783,082			-		Yen LIBOR + 0.4%	March 2026
Subtotal								1,439,421			1,917,042
Debt issuance costs, net								(8,484	)		(8,230	)
Total term loans							$	1,430,937		$	1,908,812

(1) We may increase the borrowings on the 2017 Term Loan up to $1.0 billion, subject to obtaining additional lender commitments. We paid down $1.3 billion and $2.0 billion and reborrowed $777.2 million and $2.0 billion in 2019 and 2018, respectively. We may extend the maturity date twice, by one year each, subject to the satisfaction of certain conditions and the payment of an extension fee.

(2) During 2019, we repaid the outstanding balance of ¥100.0 billion ($897.4 million) on our 2016 Yen Term Loan, primarily with the proceeds from the March 2019 Yen Term Loan. We have the ability to increase the March 2019 Yen Term Loan to ¥120.0 billion ($1.1 billion at December 31, 2019), subject to obtaining additional lender commitments.

Long-Term Debt Maturities

Scheduled principal payments due on our debt for each year through the period ended December 31, 2024, and thereafter were as follows at December 31, 2019 (in thousands):

	Unsecured
		Credit		Senior			Term Loans			Secured
Maturity		Facilities		Notes			and Other			Mortgage			Total
2020 (1)		$	-	$	449,360		$	10,945		$	75,448		$	535,753
2021 (2)			184,255		786,380			-			95,646			1,066,281
2022			-		786,380			-			12,007			798,387
2023			-		850,000			131,214			33,981			1,015,195
2024			-		786,380			-			262,375			1,048,755
Thereafter			-		6,080,150			1,308,207			141,989			7,530,346
Subtotal			184,255		9,738,650			1,450,366			621,446			11,994,717
Premiums (discounts), net			-		(46,568	)		-			498			(46,070	)
Debt issuance costs, net			-		(31,512	)		(8,484	)		(2,774	)		(42,770	)
Total		$	184,255	$	9,660,570		$	1,441,882		$	619,170		$	11,905,877

(1) As discussed above, in January 2020 we redeemed €400 million ($445.9 million) of senior notes. We expect to repay the remaining amounts maturing in the next twelve months with cash generated from operations, proceeds from dispositions of real estate properties, or as necessary, with additional borrowings.

(2) Included in the 2021 maturities was the Revolver that can be extended until 2022.

Interest Expense

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

	2019			2018			2017
Gross interest expense	$	271,451		$	268,942		$	328,228
Amortization of debt discounts (premiums), net		3,713			(590	)		(13,728	)
Amortization of debt issuance costs, net		13,293			13,243			14,479
Interest expense before capitalization	$	288,457		$	281,595		$	328,979
Capitalized amounts		(48,504	)		(52,454	)		(54,493	)
Net interest expense	$	239,953		$	229,141		$	274,486
Total cash paid for interest, net of receipts and amounts capitalized	$	214,375		$	205,485		$	278,313

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 the net loss on early extinguishment of debt for 2019 and 2017 (in millions):

	2019		2017
Senior notes:
Original principal amount	$	656.3	$	1,495.3
Cash purchase price	$	669.1	$	1,566.5
Secured mortgage debt:
Original principal amount	$	432.8	$	538.3
Cash repayment price	$	432.9	$	538.3
Total:
Original principal amount	$	1,089.1	$	2,033.6
Cash purchase/repayment price	$	1,102.0	$	2,104.8
Losses on early extinguishment of debt	$	16.1	$	68.4