Debt Obligations (Tables)

12 Months Ended

Dec. 31, 2015

The following table sets forth information regarding the Company’s consolidated debt obligations outstanding at December 31, 2015 and 2014 (in thousands):

	December 31, 2015			December 31, 2014			Effective Interest Rate				Maturity Date
MORTGAGE DEBT:

Tysons Corner	$	-		$	89,513			5.36	%		Oct 2015	(a)
Two Logan Square		86,886			87,767			7.57	%		Apr 2016
Fairview Eleven Tower (b)		20,838			21,242			4.25	%		Jan 2017
One Commerce Square		130,000			123,205			3.64	%	(c)	Apr 2023
Two Commerce Square		112,000			112,000			4.51	%	(d)	Apr 2023
IRS Philadelphia Campus (e)		177,425			184,442			7.00	%		Sep 2030
Cira South Garage (e)		35,546			37,765			7.12	%		Sep 2030
Principal balance outstanding		562,695			655,934
Plus: fair market value premium (discount), net		(3,198	)		(1,344	)
Less: deferred financing costs		(13,744	)		(14,959	)
Mortgage indebtedness	$	545,753		$	639,631

UNSECURED DEBT
Seven-Year Term Loan - Swapped to fixed	$	250,000		$	200,000			3.72	%	(f)	Oct 2022
$250.0M 6.00% Guaranteed Notes due 2016		149,919			149,919			5.95	%		Apr 2016
$300.0M 5.70% Guaranteed Notes due 2017		300,000			300,000			5.68	%		May 2017
$325.0M 4.95% Guaranteed Notes due 2018		325,000			325,000			5.13	%		Apr 2018
$250.0M 3.95% Guaranteed Notes due 2023		250,000			250,000			4.02	%		Feb 2023
$250.0M 4.10% Guaranteed Notes due 2024		250,000			250,000			4.33	%		Oct 2024
$250.0M 4.55% Guaranteed Notes due 2029		250,000			250,000			4.60	%		Oct 2029
Indenture IA (Preferred Trust I)		27,062			27,062			2.75	%		Mar 2035
Indenture IB (Preferred Trust I)		25,774			25,774			3.30	%		Apr 2035
Indenture II (Preferred Trust II)		25,774			25,774			3.09	%		Jul 2035
Principal balance outstanding		1,853,529			1,803,529
Plus: original issue premium (discount), net		(5,714	)		(6,811	)
Less: deferred financing costs		(8,851	)		(9,004	)
Total unsecured indebtedness	$	1,838,964		$	1,787,714
Total Debt Obligations	$	2,384,717		$	2,427,345

(a)

On August 19, 2015, the Company entered into a forbearance agreement to extend the maturity date of the mortgage note payable collateralized by two of its properties located at 8260 Greensboro Drive and 1676 International Drive in Mclean, Virginia (referred to as "Tysons Corner" above). On October 9, 2015, the Company funded $88.4 million, including $0.4 million of accrued interest, in repayment of the Tysons Corner mortgage note with funds from the additional borrowings under the seven-year term loan referenced below.

(b)	Represents the full debt amount of a property in a consolidated real estate venture for which the Company maintains a 50% interest.

(c)

This loan was assumed upon acquisition of the related properties on December 19, 2013. On December 29, 2015, the Company refinanced the debt increasing the principal balance to $130.0 million and extended the term from the scheduled maturity from January 6, 2016 to April 5, 2023. The effective interest rate as of December 31, 2015 was 3.64%. A default under this loan will also constitute a default under the loan outstanding on Two Commerce Square. This loan is also secured by a lien on Two Commerce Square.

(d)

This loan was assumed upon acquisition of the related property on December 19, 2013. The interest rate reflects the market rate at the time of acquisition. A default under this loan will also constitute a default under the loan outstanding on One Commerce Square. This loan is also secured by a lien on One Commerce Square.

(e)	Mortgage debt was prepaid prior to the scheduled maturity. See Note 21, “Subsequent Events,” for additional information regarding the prepayment.

Summary of debt repurchases

The following table provides additional information on the Company’s repurchase of $376.2 million in aggregate principal amount of its outstanding unsecured notes (consisting of the 2014 Notes and 2015 Notes, as indicated above) during the twelve months ended December 31, 2014 (in thousands):

Notes	Principal		Repurchase Amount (a)		Gain (Loss) on Early Extinguishment of Debt (b)			Acceleration of Deferred Financing
2014 5.40% Notes	$	218,549	$	219,404	$	(855	)	$	9
2015 7.50% Notes		157,625		164,364		(6,739	)		143
	$	376,174	$	383,768	$	(7,594	)	$	152

During the year-ended December 31, 2013, the Company repurchased $29.3 million of its outstanding unsecured Notes in a series of transactions that are summarized in the following table (in thousands):

Notes	Principal		Repurchase Amount (a)		Gain (Loss) on Early Extinguishment of Debt (b)			Acceleration of Deferred Financing
2014 5.40% Notes	$	19,830	$	20,853	$	(1,020	)	$	16
2015 7.50% Notes		8,910		9,945		(1,036	)		23
2016 6.00% Notes		510		571		(63	)		1
	$	29,250	$	31,369	$	(2,119	)	$	40

(a)	Includes cash losses with respect to redemption of debt.

(b)	Includes unamortized balance of the original issue discount.

Schedule of Maturities of Long-term Debt

As of December 31, 2015, the Company’s aggregate scheduled principal payments of debt obligations, excluding amortization of discounts and premiums, are as follows (in thousands):

2016	$	249,468
2017		333,682
2018		340,437
2019		16,768
2020		17,661
Thereafter		1,458,208
Total principal payments		2,416,224
Net unamortized premiums/(discounts)		(8,912	)
Net deferred financing costs		(22,595	)
Outstanding indebtedness	$	2,384,717