Debt Obligations (Tables)

9 Months Ended

Sep. 30, 2011

MORTGAGE DEBT:


							Effective
	September 30,			December 31,			Interest		Maturity
Property / Location	2011			2010			Rate		Date

Arboretum I, II, III & V	$	—		$	20,386		7.59	% (a)	Jul-11
Midlantic Drive/Lenox Drive/DCC I		—			56,514		8.05	% (b)	Oct-11
Research Office Center		—			39,145		5.30	% (c), (d)	Oct-11
Concord Airport Plaza		—			34,494		5.55	% (d), (e)	Jan-12
Newtown Square/Berwyn Park/Libertyview		56,940			58,102		7.25	%	May-13
Southpoint III		2,070			2,597		7.75	%	Apr-14
Tysons Corner		95,299			96,507		5.36	% (d)	Aug-15
Two Logan Square		89,800			89,800		7.57	%	Apr-16
One Logan Square		—			60,000		4.50	% (f)	Jul-16
IRS Philadelphia Campus		204,301			208,366		7.00	%	Sep-30
Cira South Garage		44,879			46,335		7.12	%	Sep-30

Principal balance outstanding		493,288			712,246
Plus: unamortized fixed-rate debt premiums (discounts), net		(1,421	)		(457	)

Total mortgage indebtedness	$	491,867		$	711,789


UNSECURED DEBT:
$345.0M 3.875% Guaranteed Exchangeable Notes due 2026		59,835			59,835		5.50	% (g)	Oct-11
Bank Term Loan		183,000			183,000		LIBOR + 0.800	% (h)	Jun-12
Credit Facility		166,000			183,000		LIBOR + 0.725	% (h)	Jun-12
$300.0M 5.750% Guaranteed Notes due 2012		152,296			175,200		5.73	%	Apr-12
$250.0M 5.400% Guaranteed Notes due 2014		242,681			242,681		5.53	%	Nov-14
$250.0M 7.500% Guaranteed Notes due 2015		248,585			250,000		7.77	%	May-15
$250.0M 6.000% Guaranteed Notes due 2016		250,000			250,000		5.95	%	Apr-16
$300.0M 5.700% Guaranteed Notes due 2017		300,000			300,000		5.68	%	May-17
$325.0M 4.950% Guaranteed Notes due 2018		325,000			—		5.14	%	Apr-18
Indenture IA (Preferred Trust I)		27,062			27,062		LIBOR + 1.25	%	Mar-35
Indenture IB (Preferred Trust I)		25,774			25,774		LIBOR + 1.25	%	Apr-35
Indenture II (Preferred Trust II)		25,774			25,774		LIBOR + 1.25	%	Jul-35

Principal balance outstanding		2,006,007			1,722,326
Less: unamortized exchangeable debt discount		(91	)		(906	)
unamortized fixed-rate debt discounts, net		(5,556	)		(2,763	)

Total unsecured indebtedness	$	2,000,360		$	1,718,657

Total Debt Obligations	$	2,492,227		$	2,430,446


(a)		On April 1, 2011, the Company prepaid the remaining balance of the loan without penalty.

(b)		On June 3, 2011, the Company prepaid the remaining balance of the loan without penalty.

(c)		On June 30, 2011, the Company prepaid the remaining balance of the loan without penalty. The unamortized fixed-rate debt premium of $0.3 million related to this loan was included as part of the gain (loss) on early extinguishment of debt in the Company’s consolidated statement of operations during the current year.

(d)		These loans were assumed upon acquisition of the related properties. The interest rates reflect the market rate at the time of acquisition.


(e)		On September 1, 2011, the Company prepaid the remaining balance of the loan without penalty. The unamortized fixed-rate debt premium of $0.2 million related to this loan was included as part of the gain (loss) on early extinguishment of debt in the Company’s consolidated statement of operations during the quarter.

(f)		This mortgage was subject to an interest rate floor of 4.50% on a monthly basis. On July 11, 2011, the Company prepaid the balance of the loan without penalty.

(g)		On October 20, 2011, holders representing $59.5 million of the outstanding Exchangeable Notes as of September 30, 2011, exercised their right to cause the Company to redeem their notes at par plus accrued and unpaid interest leaving an outstanding balance of $0.4 million. On October 15, 2016, the remaining holders have the right to request, with proper notice, the redemption of all or a portion of their Exchangeable Notes at a price equal to 100% of the principal amount of the Exchangeable Notes plus accrued and unpaid interest. Accordingly, the remaining balance of the Exchangeable Notes after October 20, 2011 will reflect a maturity date of October 15, 2016, notwithstanding their final maturity date of October 15, 2026.

(h)		On March 31, 2011, the maturity dates of the Bank Term Loan and the Credit Facility were extended to June 29, 2012 from June 29, 2011. On June 29, 2011, the Company paid a total extension fee amounting to $1.2 million which is equal to 15 basis points of the outstanding principal balance of the Bank Term Loan and of the committed amount under the Credit Facility. The extension of the maturity dates was at the Company’s option under the Bank Term Loan and the Credit Facility agreements. There were no changes in the terms and conditions of the loan agreements as a result of the maturity date extensions.

Summary of debt repurchases


	Repurchase							Deferred Financing
Notes	Amount		Principal		Loss			Amortization
2012 5.750% Notes	$	23,765	$	22,904	$	(857	)	$	32
2015 7.500% Notes		1,600		1,415		(212	)		8

	$	25,365	$	24,319	$	(1,069	)	$	40

Schedule of principal payments of debt obligations


2011	$	62,732
2012		513,694
2013		66,467
2014		254,401
2015		348,079
Thereafter		1,253,922

Total principal payments		2,499,295
Net unamortized premiums/(discounts)		(7,068	)

Outstanding indebtedness	$	2,492,227