Debt (Tables)

9 Months Ended

Sep. 30, 2016

The following table summarizes the carrying value of debt as of September 30, 2016 and December 31, 2015, and the debt activity for the nine months ended September 30, 2016 (in thousands):



					Nine Months Ended September 30, 2016
		Balance as of December 31, 2015			Debt Issuances			Repayments, Extinguishment and Assumptions				(Accretion) and Amortization			Balance as of September 30, 2016
Mortgage notes payable:
	Outstanding balance	$	3,039,882		$	1,450		$	(227,503	)	⁽¹⁾	$	—		$	2,813,829
	Net premiums ⁽²⁾	59,402			—			(1,364		)	⁽¹⁾	(16,229		)	41,809
	Deferred costs	(21,020		)	(27		)	510			⁽¹⁾	2,973			(17,564		)
Other debt:
	Outstanding balance	33,463			—			(10,453		)		—			23,010
	Premium ⁽²⁾	258			—			—				(132		)	126
Mortgages and other debt, net		3,111,985			1,423			(238,810		)		(13,388		)	2,861,210
Corporate bonds:
	Outstanding balance	2,550,000			1,000,000			(1,300,000		)		—			2,250,000
	Discount ⁽³⁾	(2,745		)	—			73				565			(2,107		)
	Deferred costs	(10,922		)	(17,128		)	1,898				3,416			(22,736		)
Corporate bonds, net		2,536,333			982,872			(1,298,029		)		3,981			2,225,157
Convertible debt:
	Outstanding balance	1,000,000			—			—				—			1,000,000
	Discount ⁽³⁾	(17,779		)	—			—				3,645			(14,134		)
	Deferred costs	(19,327		)	—			—				4,152			(15,175		)
Convertible debt, net		962,894			—			—				7,797			970,691
Credit facility:
	Outstanding balance	1,460,000			783,000			(1,743,000		)		—			500,000
	Deferred costs ⁽⁴⁾	(11,410		)	—			4,314				3,104			(3,992		)
Credit facility, net		1,448,590			783,000			(1,738,686		)		3,104			496,008
2016 Term Loan:
	Outstanding balance	—			300,000			(300,000		)		—			—
	Deferred costs	—			(2,764		)	2,588				176			—
2016 Term Loan, net		—			297,236			(297,412		)		176			—

Total debt		$	8,059,802		$	2,064,531		$	(3,572,937	)		$	1,670		$	6,553,066

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(1)

Includes $83.5 million of notes repaid prior to maturity, resulting in a loss on extinguishment of debt of $0.6 million due to the write-off of the unamortized net premiums and prepayment penalties of $0.3 million and $0.9 million, respectively. Additionally, a $55.0 million note was assumed by the buyer in a real estate disposition resulting in a write-off of the unamortized premium of $1.1 million and the unamortized deferred financing costs of $0.3 million, which are included in gain (loss) on disposition of real estate, net.


(2)	Net premiums on mortgage notes payable and other debt were recorded upon the assumption of the respective debt instruments in relation to the various mergers and acquisitions. Amortization of these net premiums is recorded as a reduction to interest expense over the remaining term of the respective debt instruments using the effective-interest method.


(3)	Discounts on the corporate bonds and convertible debt were recorded based upon the fair value of the respective debt instruments as of the respective issuance dates. Amortization of these discounts is recorded as an increase to interest expense over the remaining term of the respective debt instruments using the effective-interest method.


(4)	Deferred costs relate to the term portion of the credit facility.

Mortgage Notes Payable [Member]

Debt Instrument [Line Items]

Schedule of Debt

The Company’s mortgage notes payable consisted of the following as of September 30, 2016 (dollar amounts in thousands):



	Encumbered Properties	Gross Carrying Value of Collateralized Properties ⁽¹⁾		Outstanding Balance		Weighted-Average Interest Rate ⁽²⁾		Weighted-Average Years to Maturity
Fixed-rate debt ⁽³⁾	642	$	5,484,499	$	2,804,142	5.01	%	4.6
Variable-rate debt	1	26,454		9,687		3.79	%	0.9
Total ⁽⁴⁾	643	$	5,510,953	$	2,813,829	5.01	%	4.6

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(1)	Gross carrying value is gross real estate assets, including investment in direct financing leases, net of gross real estate liabilities.


(2)	Weighted-average interest rate for variable-rate debt represents the interest rate in effect as of September 30, 2016.


(3)	Includes $242.4 million of variable-rate debt fixed by way of interest rate swap arrangements.

(4)

The table above does not include loan amounts associated with the unconsolidated joint ventures of $46.2 million, none of which is recourse to the Company. These loans represent secured fixed and variable rates ranging from 2.93% to 5.20% and maturities ranging from October 2016 to July 2021, with a weighted-average interest rate of 3.93% and a weighted-average years to maturity of 2.1 years as of September 30, 2016.

Schedule of Aggregate Principal Payments of Mortgages

The following table summarizes the scheduled aggregate principal repayments due on mortgage notes subsequent to September 30, 2016 (in thousands):



	Total
October 1, 2016 - December 31, 2016	$	49,767
2017	420,662
2018	209,229
2019	229,516
2020	282,190
Thereafter	1,622,465
Total	$	2,813,829

Other Debt [Member]

Debt Instrument [Line Items]

Schedule of Debt

The following table is a summary of the outstanding balance and carrying value of the collateral by asset type as of September 30, 2016 (in thousands):



	Outstanding Balance		Collateral Carrying Value
Mortgage notes receivable	$	7,279	$	19,457
Intercompany mortgage loans	1,754		4,212
CMBS	13,977		34,356
Total	$	23,010	$	58,025

Corporate Bonds [Member]

Debt Instrument [Line Items]

Schedule of Debt

As of September 30, 2016, the OP had $2.25 billion aggregate principal amount of senior unsecured notes (the “Senior Notes”) outstanding comprised of the following (dollar amounts in thousands):



	Outstanding Balance September 30, 2016		Interest Rate		Maturity Date
2019 Senior Notes	750,000		3.000	%	February 6, 2019
2021 Senior Notes	400,000		4.125	%	June 1, 2021
2024 Senior Notes	500,000		4.600	%	February 6, 2024
2026 Senior Notes	600,000		4.875	%	June 1, 2026
Total balance and weighted-average interest rate	$	2,250,000	4.056	%

Convertible Debt [Member]

Debt Instrument [Line Items]

Schedule of Debt

The following table presents each of the 2018 Convertible Notes and the 2020 Convertible Notes listed below with their respective terms (dollar amounts in thousands):



	Outstanding Balance ⁽¹⁾		Interest Rate		Conversion Rate ⁽²⁾	Maturity Date
2018 Convertible Notes	$	597,500	3.00	%	60.5997	August 1, 2018
2020 Convertible Notes	402,500		3.75	%	66.7249	December 15, 2020
Total balance and weighted-average interest rate	$	1,000,000	3.30	%

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(1)	Excludes the carrying value of the conversion options recorded within additional paid-in capital of $28.6 million and the unamortized discount of $14.1 million as of September 30, 2016. The discount will be amortized over the remaining term of 2.8 years.


(2)	Conversion rate represents the amount of the General Partner OP Units per $1,000 principal amount of Convertible Notes converted as of September 30, 2016, as adjusted in accordance with the applicable indentures as a result of cash dividend payments.