Debt (Tables)
|
12 Months Ended |
Dec. 31, 2017 |
|---|
| Debt Disclosure [Abstract] |
|
| Debt Summary |
The following table summarizes our debt at December 31 (dollars in thousands):
|
|
2017 |
|
|
2016 |
|
|
|
Weighted Average Interest Rate (1) |
|
|
Amount Outstanding (2) |
|
|
Weighted Average Interest Rate (1) |
|
|
Amount Outstanding |
|
|
Credit facilities |
|
1.8 |
% |
|
$ |
317,392 |
|
|
|
1.0 |
% |
|
$ |
35,023 |
|
|
Senior notes (3) |
|
3.0 |
% |
|
|
6,067,277 |
|
|
|
3.3 |
% |
|
|
6,417,492 |
|
|
Term loans |
|
1.7 |
% |
|
|
2,046,945 |
|
|
|
1.4 |
% |
|
|
1,484,523 |
|
|
Unsecured other |
|
6.1 |
% |
|
|
13,546 |
|
|
|
6.1 |
% |
|
|
14,478 |
|
|
Secured mortgages (4) |
|
5.7 |
% |
|
|
808,096 |
|
|
|
4.9 |
% |
|
|
979,585 |
|
|
Secured mortgages of consolidated entities (5) |
|
2.9 |
% |
|
|
159,375 |
|
|
|
3.0 |
% |
|
|
1,677,193 |
|
|
Total |
|
2.9 |
% |
|
$ |
9,412,631 |
|
|
|
3.2 |
% |
|
$ |
10,608,294 |
|
|
(1) |
The interest rates presented represent the effective interest rates (including amortization of debt issuance costs and the noncash premiums or discounts) at the end of the year for the debt outstanding. |
|
(2) |
Included in the outstanding balances were borrowings denominated in non-U.S. dollars, principally: euro ($3.8 billion), Japanese yen ($1.3 billion), British pound sterling ($0.7 billion) and Canadian dollars ($0.5 billion). |
|
(3) |
Notes are due October 2020 to June 2029 with effective interest rates ranging from 1.5% to 4.4% at December 31, 2017. |
|
(4) |
Debt is due May 2018 to December 2025 with effective interest rates ranging from 2.7% to 7.8% at December 31, 2017. The debt is secured by 144 real estate properties with an aggregate undepreciated cost of $2.2 billion at December 31, 2017. |
|
(5) |
Debt is due April 2019 to December 2027 with effective interest rates ranging from 2.9% to 3.4% at December 31, 2017. The debt is secured by 18 real estate properties with an aggregate undepreciated cost of $0.3 billion at December 31, 2017. |
|
| Credit Facilities |
The following table summarizes information about our Credit Facilities (dollars in millions):
|
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
|
For the years ended December 31: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average daily interest rate |
|
|
1.3 |
% |
|
|
1.4 |
% |
|
|
1.1 |
% |
|
Weighted average daily borrowings |
|
$ |
111 |
|
|
$ |
128 |
|
|
$ |
261 |
|
|
Maximum borrowings outstanding at any month-end |
|
$ |
317 |
|
|
$ |
307 |
|
|
$ |
942 |
|
|
At December 31: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregate lender commitments |
|
$ |
3,490 |
|
|
$ |
3,306 |
|
|
$ |
2,662 |
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings outstanding |
|
|
317 |
|
|
|
35 |
|
|
|
- |
|
|
Outstanding letters of credit |
|
|
33 |
|
|
|
36 |
|
|
|
32 |
|
|
Current availability |
|
$ |
3,140 |
|
|
$ |
3,235 |
|
|
$ |
2,630 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Schedule of Debt |
The following table summarizes our outstanding term loans at December 31 (dollars and borrowing currency in thousands):
|
Term Loan |
Borrowing Currency |
|
Initial Borrowing Date |
|
Lender Commitment at 2017 |
|
|
Amount Outstanding at 2017 |
|
|
Amount Outstanding at 2016 |
|
|
Interest Rate |
|
|
Maturity Date |
|
|
|
|
|
|
Borrowing Currency |
|
USD |
|
|
USD |
|
|
USD |
|
|
|
|
|
|
|
|
2017 Term Loan (1) (2) |
USD, EUR, JPY and GBP |
|
June 2014 |
|
$ |
500,000 |
|
$ |
500,000 |
|
|
$ |
500,000 |
|
|
$ |
193,293 |
|
|
LIBOR plus 0.90% |
|
|
May 2020 |
|
2015 Canadian Term Loan |
CAD |
|
December 2015 |
|
$ |
371,925 |
|
$ |
296,595 |
|
|
|
296,595 |
|
|
|
276,322 |
|
|
CDOR rate plus 1.50% |
|
|
February 2023 |
|
2016 Yen Term Loan |
JPY |
|
August 2016 |
|
¥ |
120,000,000 |
|
$ |
1,065,965 |
|
|
|
1,065,965 |
|
|
|
1,025,057 |
|
|
Yen LIBOR plus 0.65% |
|
|
August 2022 and 2023 |
|
March 2017 Yen Term
Loan |
JPY |
|
March 2017 |
|
¥ |
12,000,000 |
|
$ |
106,597 |
|
|
|
106,597 |
|
|
|
- |
|
|
0.92% and
1.01% |
|
|
March 2027 and 2028 |
|
October 2017 Yen Term
Loan |
JPY |
|
October 2017 |
|
¥ |
10,000,000 |
|
$ |
88,830 |
|
|
|
88,830 |
|
|
|
- |
|
|
0.85% |
|
|
October 2032 |
|
Subtotal |
|
|
|
|
|
|
|
|
|
|
|
|
2,057,987 |
|
|
|
1,494,672 |
|
|
|
|
|
|
|
|
Debt issuance costs, net |
|
|
|
|
|
|
|
|
|
|
|
|
(11,042 |
) |
|
|
(10,149 |
) |
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
$ |
2,046,945 |
|
|
$ |
1,484,523 |
|
|
|
|
|
|
|
|
(1) |
In May 2017, we renewed and amended our existing senior term loan agreement (the “2017 Term Loan”). We may increase the borrowings up to $1.0 billion, subject to obtaining additional lender commitments. We may pay down and reborrow on this term loan. We may extend the maturity date twice, by one year each, subject to the satisfaction of certain conditions and the payment of an extension fee. |
|
(2) |
We paid down $1.2 billion and $1.2 billion and reborrowed $1.5 billion and $0.8 billion in 2017 and 2016, respectively. |
|
| Long-Term Debt Maturities |
Principal payments due on our debt, for each year through the period ended December 31, 2022, and thereafter were as follows at December 31, 2017 (in thousands):
|
|
Unsecured |
|
|
|
|
|
|
|
|
|
|
Credit |
|
|
Senior |
|
|
Term Loans |
|
|
Secured |
|
|
|
|
|
|
Maturity |
|
Facilities |
|
|
Notes |
|
|
and Other |
|
|
Mortgage Debt |
|
|
Total |
|
|
2018 (1) |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
934 |
|
|
$ |
167,960 |
|
|
$ |
168,894 |
|
|
2019 |
|
|
- |
|
|
|
- |
|
|
|
1,013 |
|
|
|
446,324 |
|
|
|
447,337 |
|
|
2020 (2) (3) |
|
|
264,982 |
|
|
|
719,580 |
|
|
|
501,077 |
|
|
|
12,401 |
|
|
|
1,498,040 |
|
|
2021 (3) |
|
|
52,410 |
|
|
|
839,510 |
|
|
|
910 |
|
|
|
14,780 |
|
|
|
907,610 |
|
|
2022 |
|
|
- |
|
|
|
839,510 |
|
|
|
444,890 |
|
|
|
10,791 |
|
|
|
1,295,191 |
|
|
Thereafter |
|
|
- |
|
|
|
3,715,027 |
|
|
|
1,122,709 |
|
|
|
314,298 |
|
|
|
5,152,034 |
|
|
Subtotal |
|
|
317,392 |
|
|
|
6,113,627 |
|
|
|
2,071,533 |
|
|
|
966,554 |
|
|
|
9,469,106 |
|
|
Premiums (discounts), net |
|
|
- |
|
|
|
(21,333 |
) |
|
|
- |
|
|
|
4,660 |
|
|
|
(16,673 |
) |
|
Debt issuance costs, net |
|
|
- |
|
|
|
(25,017 |
) |
|
|
(11,042 |
) |
|
|
(3,743 |
) |
|
|
(39,802 |
) |
|
Total |
|
$ |
317,392 |
|
|
$ |
6,067,277 |
|
|
$ |
2,060,491 |
|
|
$ |
967,471 |
|
|
$ |
9,412,631 |
|
|
(1) |
We expect to repay the amounts maturing in 2018 with cash generated from operations, proceeds from dispositions of real estate properties, or as necessary, with borrowings on our Credit Facilities. |
|
(2) |
Included in the 2020 maturities was the 2017 Term Loan that can be extended until 2022, as discussed above. |
|
(3) |
Included in the 2020 and 2021 maturities were the Credit Facilities that can be extended until 2021 and 2022, respectively, as discussed above. |
|
| Interest Expense |
The following table summarizes the components of interest expense for the years ended December 31 (in thousands):
|
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
|
Gross interest expense |
|
$ |
328,228 |
|
|
$ |
383,098 |
|
|
$ |
394,012 |
|
|
Amortization of premium, net |
|
|
(13,728 |
) |
|
|
(30,596 |
) |
|
|
(45,253 |
) |
|
Amortization of debt issuance costs |
|
|
14,479 |
|
|
|
15,459 |
|
|
|
13,412 |
|
|
Interest expense before capitalization |
|
$ |
328,979 |
|
|
$ |
367,961 |
|
|
$ |
362,171 |
|
|
Capitalized amounts |
|
|
(54,493 |
) |
|
|
(64,815 |
) |
|
|
(60,808 |
) |
|
Net interest expense |
|
$ |
274,486 |
|
|
$ |
303,146 |
|
|
$ |
301,363 |
|
|
Total cash paid for interest, net of amounts capitalized |
|
$ |
278,313 |
|
|
$ |
322,442 |
|
|
$ |
345,916 |
|
|
| Activity Related to Repurchase of Debt and Net Loss on Early Extinguishment of Debt |
The following table summarizes the activity related to the repurchase of debt and net loss on early extinguishment of debt for the years ended December 31 (in millions):
|
|
|
2017 |
|
|
2015 |
|
|
Senior notes: |
|
|
|
|
|
|
|
|
|
Original principal amount |
|
$ |
1,495.3 |
|
|
$ |
709.7 |
|
|
Cash purchase price |
|
$ |
1,566.5 |
|
|
$ |
789.0 |
|
|
Term loans: |
|
|
|
|
|
|
|
|
|
Original principal amount |
|
$ |
- |
|
|
$ |
600.0 |
|
|
Cash repayment price |
|
$ |
- |
|
|
$ |
600.0 |
|
|
Secured mortgage debt: |
|
|
|
|
|
|
|
|
|
Original principal amount |
|
$ |
538.3 |
|
|
$ |
571.5 |
|
|
Cash repayment price |
|
$ |
538.3 |
|
|
$ |
595.5 |
|
|
Total: |
|
|
|
|
|
|
|
|
|
Original principal amount |
|
$ |
2,033.6 |
|
|
$ |
1,881.2 |
|
|
Cash purchase / repayment price |
|
$ |
2,104.8 |
|
|
$ |
1,984.5 |
|
|
Losses on early extinguishment of debt |
|
$ |
68.4 |
|
|
$ |
86.3 |
|
|