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Secured and unsecured senior debt | 9 Months Ended
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Sep. 30, 2023
Debt Disclosure [Abstract] |
Secured and unsecured senior debt | SECURED AND UNSECURED SENIOR DEBT The following table summarizes our outstanding indebtedness and respective principal payments remaining as of September 30, 2023 (dollars in thousands):
|  | Stated Rate |  | Interest Rate(1) |  | Maturity Date(2) |  | Principal Payments Remaining for the Periods Ending December 31, |  |  |  | Unamortized (Deferred Financing Cost), (Discount)/ Premium |  |
Debt |  |  |  |  | 2023 |  | 2024 |  | 2025 |  | 2026 |  | 2027 |  | Thereafter |  | Principal |  |  | Total
Secured notes payable |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Greater Boston(3) |  | SOFR+2.70 | % |  | 8.36 | % |  | 11/19/26 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 109,295 |  |  | $ | — |  |  | $ | — |  |  | $ | 109,295 |  |  | $ | (804) |  |  | $ | 108,491 |
San Francisco Bay Area |  | 6.50 | % |  | 6.50 |  |  | 7/1/36 |  | — |  |  | 32 |  |  | 34 |  |  | 36 |  |  | 38 |  |  | 479 |  |  | 619 |  |  | — |  |  | 619 |
Secured debt weighted average interest rate/subtotal |  |  |  | 8.35 |  |  |  |  | — |  |  | 32 |  |  | 34 |  |  | 109,331 |  |  | 38 |  |  | 479 |  |  | 109,914 |  |  | (804) |  |  | 109,110 |
Unsecured senior line of credit and commercial paper program(4) |  | (4) |  | N/A | (4) | 1/22/28 | (4) | (4) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  | (4) | — |  |  | — |  |  | — |
Unsecured senior notes payable |  | 3.45 | % |  | 3.62 |  |  | 4/30/25 |  | — |  |  | — |  |  | 600,000 |  |  | — |  |  | — |  |  | — |  |  | 600,000 |  |  | (1,402) |  |  | 598,598 |
Unsecured senior notes payable |  | 4.30 | % |  | 4.50 |  |  | 1/15/26 |  | — |  |  | — |  |  | — |  |  | 300,000 |  |  | — |  |  | — |  |  | 300,000 |  |  | (1,144) |  |  | 298,856 |
Unsecured senior notes payable – green bond |  | 3.80 | % |  | 3.96 |  |  | 4/15/26 |  | — |  |  | — |  |  | — |  |  | 350,000 |  |  | — |  |  | — |  |  | 350,000 |  |  | (1,265) |  |  | 348,735 |
Unsecured senior notes payable |  | 3.95 | % |  | 4.13 |  |  | 1/15/27 |  | — |  |  | — |  |  | — |  |  | — |  |  | 350,000 |  |  | — |  |  | 350,000 |  |  | (1,699) |  |  | 348,301 |
Unsecured senior notes payable |  | 3.95 | % |  | 4.07 |  |  | 1/15/28 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 425,000 |  |  | 425,000 |  |  | (1,838) |  |  | 423,162 |
Unsecured senior notes payable |  | 4.50 | % |  | 4.60 |  |  | 7/30/29 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 300,000 |  |  | 300,000 |  |  | (1,304) |  |  | 298,696 |
Unsecured senior notes payable |  | 2.75 | % |  | 2.87 |  |  | 12/15/29 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 400,000 |  |  | 400,000 |  |  | (2,574) |  |  | 397,426 |
Unsecured senior notes payable |  | 4.70 | % |  | 4.81 |  |  | 7/1/30 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 450,000 |  |  | 450,000 |  |  | (2,518) |  |  | 447,482 |
Unsecured senior notes payable |  | 4.90 | % |  | 5.05 |  |  | 12/15/30 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 700,000 |  |  | 700,000 |  |  | (5,706) |  |  | 694,294 |
Unsecured senior notes payable |  | 3.375 | % |  | 3.48 |  |  | 8/15/31 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 750,000 |  |  | 750,000 |  |  | (5,149) |  |  | 744,851 |
Unsecured senior notes payable – green bond |  | 2.00 | % |  | 2.12 |  |  | 5/18/32 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 900,000 |  |  | 900,000 |  |  | (8,116) |  |  | 891,884 |
Unsecured senior notes payable |  | 1.875 | % |  | 1.97 |  |  | 2/1/33 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,000,000 |  |  | 1,000,000 |  |  | (8,192) |  |  | 991,808 |
Unsecured senior notes payable – green bond |  | 2.95 | % |  | 3.07 |  |  | 3/15/34 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 800,000 |  |  | 800,000 |  |  | (8,177) |  |  | 791,823 |
Unsecured senior notes payable – green bond |  | 4.75 | % |  | 4.88 |  |  | 4/15/35 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 500,000 |  |  | 500,000 |  |  | (5,524) |  |  | 494,476 |
Unsecured senior notes payable |  | 4.85 | % |  | 4.93 |  |  | 4/15/49 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 300,000 |  |  | 300,000 |  |  | (3,016) |  |  | 296,984 |
Unsecured senior notes payable |  | 4.00 | % |  | 3.91 |  |  | 2/1/50 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 700,000 |  |  | 700,000 |  |  | 10,140 |  |  | 710,140 |
Unsecured senior notes payable |  | 3.00 | % |  | 3.08 |  |  | 5/18/51 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 850,000 |  |  | 850,000 |  |  | (11,703) |  |  | 838,297 |
Unsecured senior notes payable |  | 3.55 | % |  | 3.63 |  |  | 3/15/52 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,000,000 |  |  | 1,000,000 |  |  | (14,221) |  |  | 985,779 |
Unsecured senior notes payable |  | 5.15 | % |  | 5.26 |  |  | 4/15/53 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 500,000 |  |  | 500,000 |  |  | (7,867) |  |  | 492,133 |
Unsecured debt weighted average interest rate/subtotal |  |  |  | 3.65 |  |  |  |  | — |  |  | — |  |  | 600,000 |  |  | 650,000 |  |  | 350,000 |  |  | 9,575,000 |  |  | 11,175,000 |  |  | (81,275) |  |  | 11,093,725 |
Weighted-average interest rate/total |  |  |  | 3.70 | % |  |  |  | $ | — |  |  | $ | 32 |  |  | $ | 600,034 |  |  | $ | 759,331 |  |  | $ | 350,038 |  |  | $ | 9,575,479 |  |  | $ | 11,284,914 |  |  | $ | (82,079) |  |  | $ | 11,202,835 |
(1)Represents the weighted-average interest rate as of the end of the applicable period, including amortization of loan fees, amortization of debt premiums (discounts), and other bank fees. (2)Reflects any extension options that we control. (3)Represents a secured construction loan held by our consolidated real estate joint venture at 99 Coolidge Avenue, of which we have a 75.0% interest. As of September 30, 2023, this joint venture h as $86.0 million available under existing lender commitments. The interest rate shall be reduced from SOFR+2.70% to SOFR+2.10% over time upon the completion of certain leasing, construction, and financial covenant milestones. (4)Refer to “$5.0 billion unsecured senior line of credit” and “$2.5 billion commercial paper program” on the next page. The following table summarizes our secured and unsecured senior debt and amounts outstanding under our unsecured senior line of credit and commercial paper program as of September 30, 2023 (dollars in thousands):
| Fixed-Rate Debt |  | Variable-Rate Debt |  |  |  |  |  | Weighted-Average |
|  |  |  |  |  |  | Interest |  | Remaining Term (in years) |
|  |  | Total |  | Percentage |  | Rate(1) |  |
Secured notes payable | $ | 619 |  |  | $ | 108,491 |  |  | $ | 109,110 |  | 1.0 | % |  | 8.35 | % |  | 3.2 |
Unsecured senior notes payable | 11,093,725 |  |  | — |  |  | 11,093,725 |  | 99.0 |  |  | 3.65 |  |  | 13.2 |
Unsecured senior line of credit and commercial paper program | — |  |  | — |  |  | — | (2) | — |  |  | N/A | (2) | 4.3 | (3)
Total/weighted average | $ | 11,094,344 |  |  | $ | 108,491 |  |  | $ | 11,202,835 |  |  | 100.0 | % |  | 3.70 | % |  | 13.1 | (3)
Percentage of total debt | 99.0 | % |  | 1.0 | % |  | 100 | % |  |  |  |  |  |  |
(1)Represents the weighted-average interest rate as of the end of the applicable period, including expense/income related to the amortization of loan fees, amortization of debt premiums (discounts), and other bank fees. (2)As of September 30, 2023, we had no outstanding balance on our unsecured senior line of credit and no commercial paper notes outstanding. (3)We calculate the weighted-average remaining term of our commercial paper notes by using the maturity date of our unsecured senior line of credit. Using the maturity date of our outstanding commercial paper notes, the consolidated weighted-average maturity of our debt i s 13.1 years. The commercial paper notes sold during the nine months ended September 30, 2023 were issued at a weighted-average yield to maturity of 5.15% and had a weighted-average maturity term of 13 days. Unsecured senior notes payable In February 2023, we opportunistically issued $1.0 billion of unsecured senior notes payable with a weighted-average interest rate of 4.95% and a weighted-average maturity of 21.2 years. The unsecured senior notes consisted of $500.0 million of 4.75% green unsecured senior notes due 2035 and $500.0 million of 5.15% unsecured senior notes due 2053. $5.0 billion unsecured senior line of credit As of September 30, 2023, our unsecured senior line of credit has aggregate commitments of $5.0 billion and bears an interest rate of SOFR plus 0.835%. In addition to the cost of borrowing, the unsecured senior line of credit is subject to an annual facility fee of 0.14% based on the aggregate commitments outstanding. Based upon our ability to achieve certain annual sustainability targets, the interest rate and facility fee rate are also subject to upward or downward adjustments of up to four basis points with respect to the interest rate and up to one basis point with respect to the facility fee rate. In June 2023, we amended our unsecured senior line of credit to increase the aggregate commitments available for borrowing to $5.0 billion from $4.0 billion. During the three months ended March 31, 2023, we achieved certain annual sustainability targets, as described in our unsecured senior line of credit agreement, which reduced the borrowing rate by four basis points for a one-year period to SOFR plus 0.835%, from SOFR plus 0.875%, and reduced the facility fee by one basis point to 0.14% from 0.15%. As of September 30, 2023, we had no outstanding balance on our unsecured senior line of credit. $2.5 billion co mmercial paper program In July 2023, we increased the aggregate amount we may issue from time to time under our commercial paper program to $2.5 billion from $2.0 billion. Our commercial paper program provides us with the ability to issue up to $2.5 billion of commercial paper notes that bear interest at short-term fixed rates with a maturity of generally 30 days or less and a maximum maturity of 397 days from the date of issuance. Our commercial paper program is backed by our unsecured senior line of credit, and at all times we expect to retain a minimum undrawn amount of borrowing capacity under our unsecured senior line of credit equal to any outstanding notes issued under our commercial paper program. We use the net proceeds from the issuances of the notes for general working capital and other general corporate purposes. General corporate purposes may include, but are not limited to, the repayment of other debt and selective development, redevelopment, or acquisition of properties. The commercial paper notes sold during the nine months ended September 30, 2023 were issued at a weighted-average yield to maturity of 5.15% and had a weighted-average maturity term of 13 days. As of September 30, 2023, we had no commercial paper notes outstanding. Interest expense The following table summarizes interest expense for the three and nine months ended September 30, 2023 and 2022 (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Interest incurred | $ | 107,530 |  |  | $ | 96,173 |  |  | $ | 317,100 |  |  | $ | 275,835 |
Capitalized interest | (96,119) |  |  | (73,189) |  |  | (274,863) |  |  | (199,154) |
Interest expense | $ | 11,411 |  |  | $ | 22,984 |  |  | $ | 42,237 |  |  | $ | 76,681 |

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 470 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//470/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1E -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I + Details
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