DEBT |
DEBT The following is a summary of our total debt outstanding as of December 31, 2016 and 2015:
| | | | | | | | | | | | | | | | | | | Principal Balance as of December 31, | | Stated Interest Rate as of | | | Description of Debt | | | 2016 | | 2015 | | December 31, 2016 | | Stated Maturity Date | Mortgages payable | | | (Dollars in thousands) | | | | | Plaza El Segundo | | | $ | 175,000 |
| | $ | 175,000 |
| | 6.33 | % | | August 5, 2017 | The Grove at Shrewsbury (East) | | | 42,536 |
| | 43,557 |
| | 5.82 | % | | October 1, 2017 | The Grove at Shrewsbury (West) | | | 10,792 |
| | 11,024 |
| | 6.38 | % | | March 1, 2018 | Rollingwood Apartments | | | 21,283 |
| | 21,716 |
| | 5.54 | % | | May 1, 2019 | The Shops at Sunset Place | | | 68,634 |
| | 70,542 |
| | 5.62 | % | | September 1, 2020 | 29th Place | | | 4,553 |
| | 4,753 |
| | 5.91 | % | | January 31, 2021 | THE AVENUE at White Marsh | | | 52,705 |
| | 52,705 |
| | 3.35 | % | | January 1, 2022 | Montrose Crossing | | | 72,726 |
| | 74,329 |
| | 4.20 | % | | January 10, 2022 | Brook 35 | | | 11,500 |
| | 11,500 |
| | 4.65 | % | | July 1, 2029 | Chelsea | | | 6,576 |
| | 6,868 |
| | 5.36 | % | | January 15, 2031 | Subtotal | | | 466,305 |
| | 471,994 |
| | | | | Net unamortized premium and debt issuance costs | | | 4,812 |
| | 9,090 |
| | | | | Total mortgages payable | | | 471,117 |
| | 481,084 |
| | | | | Notes payable | | | | | | | | | | Escondido (municipal bonds) | | | — |
| | 9,400 |
| | | | October 1, 2016 | Revolving credit facility | | | — |
| | 53,500 |
| | LIBOR + 0.825% |
| | April 20, 2020 | Term loan | | | 275,000 |
| | 275,000 |
| | LIBOR + 0.90% |
| | November 21, 2018 | Various | | | 5,247 |
| | 5,700 |
| | 11.31 | % | | Various through 2028 | Subtotal | | | 280,247 |
| | 343,600 |
| | | | | Net unamortized debt issuance costs | | | (1,096 | ) | | (1,639 | ) | | | | | Total notes payable | | | 279,151 |
| | 341,961 |
| | | | | Senior notes and debentures | | | | | | | | | | 5.90% notes | | | 150,000 |
| | 150,000 |
| | 5.90 | % | | April 1, 2020 | 2.55% notes | | | 250,000 |
| | 250,000 |
| | 2.55 | % | | January 15, 2021 | 3.00% notes | | | 250,000 |
| | 250,000 |
| | 3.00 | % | | August 1, 2022 | 2.75% notes | | | 275,000 |
| | 275,000 |
| | 2.75 | % | | June 1, 2023 | 3.95% notes | | | 300,000 |
| | 300,000 |
| | 3.95 | % | | January 15, 2024 | 7.48% debentures | | | 29,200 |
| | 29,200 |
| | 7.48 | % | | August 15, 2026 | 6.82% medium term notes | | | 40,000 |
| | 40,000 |
| | 6.82 | % | | August 1, 2027 | 4.50% notes | | | 450,000 |
| | 450,000 |
| | 4.50 | % | | December 1, 2044 | 3.625% notes | | | 250,000 |
| | — |
| | 3.625 | % | | August 1, 2046 | Subtotal | | | 1,994,200 |
| | 1,744,200 |
| | | | | Net unamortized (discount)/premium and debt issuance costs | | | (17,606 | ) | | (11,649 | ) | | | | | Total senior notes and debentures | | | 1,976,594 |
| | 1,732,551 |
| | | | | Capital lease obligations | | | | | | | | | | Various | | | 71,590 |
| | 71,620 |
| | Various |
| | Various through 2106 | Total debt and capital lease obligations | | | $ | 2,798,452 |
| | $ | 2,627,216 |
| | | | |
On January 13, 2016, in connection with the acquisition of our partner's 70% interest in our unconsolidated real estate partnership, we assumed interest only mortgage loans with a face amount of $34.4 million and a fair value of $34.7 million. These mortgage loans had a weighted average interest rate of 5.95% and were repaid at par on April 1, 2016. On April 20, 2016, we upsized our $600.0 million revolving credit facility to $800.0 million and extended the maturity date to April 20, 2020, subject to two six-month extensions at our option. Under the amended credit facility, the spread over LIBOR is 82.5 basis points based on our current credit rating. In addition, we have an option (subject to bank approval) to increase the credit facility through an accordion feature to $1.5 billion. The revolving credit facility requires an annual facility fee of $1.0 million. During 2016, 2015 and 2014, the maximum amount of borrowings outstanding under our revolving credit facility was $251.5 million, $324.0 million and $79.5 million, respectively. The weighted average amount of borrowings outstanding was $77.3 million, $109.7 million and $12.5 million, respectively, and the weighted average interest rate, before amortization of debt fees, was 1.3%, 1.1% and 1.1%, respectively. At December 31, 2016, our revolving credit facility had no balance outstanding, and had $53.5 million outstanding at December 31, 2015. On July 12, 2016, we issued $250.0 million of fixed rate senior unsecured notes that mature on August 1, 2046 and bear interest at 3.625%. The notes were offered at 97.756% of the principal amount with a yield to maturity of 3.75%. The net proceeds from this note offering after issuance discounts, underwriting fees, and other costs were $241.8 million. On October 1, 2016 we repaid the $9.4 million Escondido municipal bonds at par. Our revolving credit facility and certain notes require us to comply with various financial covenants, including the maintenance of minimum shareholders’ equity and debt coverage ratios and a maximum ratio of debt to net worth. As of December 31, 2016, we were in compliance with all loan covenants. Scheduled principal payments on mortgages payable, notes payable, senior notes and debentures as of December 31, 2016 are as follows: | | | | | | | | | | | | | | | | | | | | | | Mortgages Payable | | | Notes Payable | | | Senior Notes and Debentures | | Total Principal | | | | (In thousands) | | | Year ending December 31, | | | | | | | | | | | | 2017 | $ | 222,445 |
| | | $ | 462 |
| | | $ | — |
| | $ | 222,907 |
| | | 2018 | 15,477 |
| | | 275,513 |
| (1) | | — |
| | 290,990 |
| | | 2019 | 25,006 |
| | | 567 |
| | | — |
| | 25,573 |
| | | 2020 | 64,687 |
| | | 629 |
| (2) | | 150,000 |
| | 215,316 |
| | | 2021 | 5,984 |
| | | 700 |
| | | 250,000 |
| | 256,684 |
| | | Thereafter | 132,706 |
| | | 2,376 |
| | | 1,594,200 |
| | 1,729,282 |
| | | | $ | 466,305 |
| | | $ | 280,247 |
| | | $ | 1,994,200 |
| | $ | 2,740,752 |
| | (3) |
_____________________ | | (1) | Our $275.0 million unsecured term loan matures on November 21, 2018, subject to a one-year extension at our option. |
| | (2) | Our $800.0 million revolving credit facility matures on April 20, 2020, subject to two six-month extensions at our option. As of December 31, 2016, there was no outstanding balance under this credit facility. |
| | (3) | The total debt maturities differ from the total reported on the consolidated balance sheet as of December 31, 2016 due to the unamortized premium/(discount) and debt issuance costs on certain mortgages payable, notes payable, and senior notes. |
Future minimum lease payments and their present value for property under capital leases as of December 31, 2016, are as follows: | | | | | | | | (In thousands) | Year ending December 31, | | 2017 | $ | 5,797 |
| 2018 | 5,800 |
| 2019 | 5,800 |
| 2020 | 5,800 |
| 2021 | 5,800 |
| Thereafter | 148,235 |
| | 177,232 |
| Less amount representing interest | (105,642 | ) | Present value | $ | 71,590 |
|
|