XML 49 R35.htm IDEA: XBRL DOCUMENT v3.19.1
Debt (Tables)
3 Months Ended
Mar. 31, 2019
Debt Disclosure [Abstract]  
Schedule of long-term debt instruments
The following table sets forth information with respect to the Company’s outstanding indebtedness:
March 31, 2019December 31, 2018
Interest Rate(1)
Contractual Maturity Date
UNSECURED AND SECURED DEBT
Unsecured debt
Unsecured revolving credit facility(2)(3)
$220,000 $400,000 LIBOR + 1.05% to 1.50%3/13/2022
(4)
Term loan A(2)(5)
300,000 300,000 LIBOR + 1.20% to 1.70%4/1/2020
(6)
Term loan B(2)(7)
350,000 350,000 LIBOR + 1.20% to 1.70%4/1/2022
Term loan D(2)(8)
125,000 125,000 LIBOR + 1.20% to 1.70%11/17/2022
Series A notes110,000 110,000 4.34%  1/2/2023
Series E notes50,000 50,000 3.66%  9/15/2023
Series B notes259,000 259,000 4.69%  12/16/2025
Series D notes150,000 150,000 3.98%  7/6/2026
3.95% Registered senior notes400,000 400,000 3.95%  11/1/2027
Series C notes56,000 56,000 4.79%  12/16/2027
4.65% Registered senior notes(9)
350,000 — 4.65%  4/1/2029
Term loan C— 75,000 LIBOR + 1.30% to 2.20%N/A
Total unsecured debt2,370,000 2,275,000 
Secured debt
Met Park North(10)
64,500 64,500 LIBOR + 1.55%8/1/2020
10950 Washington(11)
26,736 26,880 5.32%  3/11/2022
Sunset Bronson Studios/ICON/CUE(12)
5,001 — LIBOR + 1.35%  3/1/2024
Element LA168,000 168,000 4.59%  11/6/2025
Hill7(13)
101,000 101,000 3.38%  11/6/2028
Sunset Gower Studios/Sunset Bronson Studios— 5,001 LIBOR + 2.25%N/A
Total secured debt365,237 365,381 
Total unsecured and secured debt2,735,237 2,640,381 
Unamortized deferred financing costs and loan discounts(14)
(23,605)(16,546)
TOTAL UNSECURED AND SECURED DEBT, NET$2,711,632 $2,623,835 
IN-SUBSTANCE DEFEASED DEBT(15)
$137,417 $138,223 4.47%10/1/2022
JOINT VENTURE PARTNER DEBT(16)
$66,136 $66,136 4.50%  10/9/2028
_________________
1.Interest rate with respect to indebtedness is calculated on the basis of a 360-day year for the actual days elapsed. Interest rates are as of March 31, 2019, which may be different than the interest rates as of December 31, 2018 for corresponding indebtedness.
2.The Company has an option to make an irrevocable election to change the interest rate depending on the Company’s credit rating or a specified base rate plus an applicable margin. As of March 31, 2019, no such election had been made.
3.The Company has a total capacity of $600.0 million under its unsecured revolving credit facility.
4.The maturity date may be extended once for an additional one-year term.
5.The interest rate on the outstanding balance of the term loan was effectively fixed at 2.65% to 3.06% per annum through the use of two interest rate swaps. See Note 8 for details.
6.The maturity date may be extended twice, each time for an additional one-year term.
7.The interest rate on the outstanding balance of the term loan was effectively fixed at 2.96% to 3.46% per annum through the use of two interest rate swaps. See Note 8 for details.
8.The interest rate on the outstanding balance of the term loan was effectively fixed at 2.63% to 3.13% per annum through the use of an interest rate swap. See Note 8 for details.
9.On February 27, 2019, the Company completed an underwritten public offering of $350.0 million of senior notes, which were issued at 98.663% of par.
10.Interest on the full loan amount has been effectively fixed at 3.71% per annum through the use of an interest rate swap. See Note 8 for details.
11.Monthly debt service includes annual debt amortization payments based on a 30-year amortization schedule with a balloon payment at maturity.
12.The Company has a total capacity of $235.0 million under the Sunset Bronson Studios/ICON/CUE revolving credit facility. This loan is secured by the Company’s Sunset Bronson Studios, ICON and CUE properties. 
13.The Company owns 55% of the ownership interest in the consolidated joint venture that owns the Hill7 property. The full amount of the loan is shown. This loan bears interest only at 3.38% until November 6, 2026, at which time the interest rate will increase and monthly debt service will include principal payments with a balloon payment at maturity.
14.Excludes deferred financing costs related to establishing the Company’s unsecured revolving credit facility and Sunset Bronson Studios/ICON/CUE revolving credit facility, which are reflected in prepaid and other assets, net line item in the Consolidated Balance Sheets. See Note 6 for details.
15.The Company owns 75% of the ownership interest in the joint venture that owns the One Westside and 10850 Pico properties. The full amount of the loan is shown. Monthly debt service includes annual debt amortization payments based on a 10-year amortization schedule with a balloon payment at maturity.
16.This amount relates to debt attributable to Allianz U.S. Private REIT LP (“Allianz”), the Company’s partner in the joint venture that owns the Ferry Building property. The maturity date may be extended twice for an additional two-year term each.
Schedule of maturities of long-term debt
The following table provides information regarding the Company’s minimum future principal payments due on the Company’s debt (before the impact of extension options, if applicable) as of March 31, 2019:
Year
Unsecured and Secured DebtIn-substance Defeased DebtJoint Venture Partner Debt
Remaining 2019$424 $2,387 $— 
2020 365,095 3,323 — 
2021 632 3,494 — 
2022 720,085 128,213 — 
2023 160,000 — — 
Thereafter1,489,001 — 66,136 
TOTAL
$2,735,237 $137,417 $66,136 
Summary of balance and key terms of the unsecured revolving credit facility
The following table summarizes the balance and key terms of the unsecured revolving credit facility as of:
March 31, 2019December 31, 2018
Outstanding borrowings$220,000 $400,000 
Remaining borrowing capacity
380,000 200,000 
TOTAL BORROWING CAPACITY
$600,000 $600,000 
Interest rate(1)(2)
LIBOR + 1.05% to 1.50%
Annual facility fee rate(1)
0.15% or 0.30%
Contractual maturity date(3)
3/13/2022
_________________
1.The rate is based on the operating partnership’s leverage ratio. The Company has the option to make an irrevocable election to change the interest rate depending on the Company’s credit rating. As of March 31, 2019, no such election had been made.
2.The Company has the option to make an irrevocable election to change the interest rate depending on the Company’s specified base rate plus an applicable margin. As of March 31, 2019, no such election had been made.
3.The maturity date may be extended once for an additional one-year term.
Summary of existing covenants and their covenant levels The following table summarizes existing covenants and their covenant levels related to the unsecured revolving credit facility, term loans, and note purchase agreements, when considering the most restrictive terms:
Covenant Ratio
Covenant Level
Total liabilities to total asset value≤ 60%
Unsecured indebtedness to unencumbered asset value≤ 60%
Adjusted EBITDA to fixed charges≥ 1.5x
Secured indebtedness to total asset value≤ 45%
Unencumbered NOI to unsecured interest expense≥ 2.0x

The following table summarizes existing covenants and their covenant levels related to the registered senior notes:
Covenant Ratio
Covenant Level
Debt to total assets≤ 60%
Total unencumbered assets to unsecured debt ≥ 150%
Consolidated income available for debt service to annual debt service charge≥ 1.5x
Secured debt to total assets≤ 45%
Schedule of interest costs incurred
The following table represents a reconciliation from gross interest expense to the interest expense line item in the Consolidated Statements of Operations:
Three Months Ended March 31,
20192018
Gross interest expense(1)
$27,465 $22,431 
Capitalized interest(4,706)(3,586)
Amortization of deferred financing costs and loan discounts1,591 1,658 
INTEREST EXPENSE
$24,350 $20,503 
_________________
1.Includes interest on the Company’s debt and hedging activities and extinguishment costs related to paydowns in the term loans.