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Secured and unsecured senior debt
 6 Months Ended
Jun. 30, 2024
Debt Disclosure [Abstract]  
Secured and unsecured senior debt The following table summarizes our outstanding indebtedness and respective principal payments remaining as of June 30, 2024 (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
2024
2025
2026
2027
2028
Thereafter
Principal
Total
Secured notes payable
Greater Boston(3)
SOFR+2.70%
8.14%
11/19/26
$—
$—
$134,648
$—
$—
$—
$134,648
$(325)
$134,323
San Francisco Bay Area
6.50%
6.50
7/1/36
32
34
36
38
41
438
619
—
619
Secured debt weighted-average interest rate/
subtotal
8.13
32
34
134,684
38
41
438
135,267
(325)
134,942
Unsecured senior line of credit and commercial
paper program(4)
(4)
5.57
(4)
1/22/28
(4)
—
—
—
—
200,000
—
200,000
(448)
199,552
Unsecured senior notes payable
3.45%
3.62
4/30/25
—
600,000
—
—
—
—
600,000
(739)
599,261
Unsecured senior notes payable
4.30%
4.50
1/15/26
—
—
300,000
—
—
—
300,000
(778)
299,222
Unsecured senior notes payable
3.80%
3.96
4/15/26
—
—
350,000
—
—
—
350,000
(899)
349,101
Unsecured senior notes payable
3.95%
4.13
1/15/27
—
—
—
350,000
—
—
350,000
(1,321)
348,679
Unsecured senior notes payable
3.95%
4.07
1/15/28
—
—
—
—
425,000
—
425,000
(1,523)
423,477
Unsecured senior notes payable
4.50%
4.60
7/30/29
—
—
—
—
—
300,000
300,000
(1,138)
298,862
Unsecured senior notes payable
2.75%
2.87
12/15/29
—
—
—
—
—
400,000
400,000
(2,269)
397,731
Unsecured senior notes payable
4.70%
4.81
7/1/30
—
—
—
—
—
450,000
450,000
(2,241)
447,759
Unsecured senior notes payable
4.90%
5.05
12/15/30
—
—
—
—
—
700,000
700,000
(5,121)
694,879
Unsecured senior notes payable
3.375%
3.48
8/15/31
—
—
—
—
—
750,000
750,000
(4,669)
745,331
Unsecured senior notes payable
2.00%
2.12
5/18/32
—
—
—
—
—
900,000
900,000
(7,428)
892,572
Unsecured senior notes payable
1.875%
1.97
2/1/33
—
—
—
—
—
1,000,000
1,000,000
(7,543)
992,457
Unsecured senior notes payable
2.95%
3.07
3/15/34
—
—
—
—
—
800,000
800,000
(7,613)
792,387
Unsecured senior notes payable
4.75%
4.88
4/15/35
—
—
—
—
—
500,000
500,000
(5,185)
494,815
Unsecured senior notes payable
5.25%
5.38
5/15/36
—
—
—
—
—
400,000
400,000
(4,280)
395,720
Unsecured senior notes payable
4.85%
4.93
4/15/49
—
—
—
—
—
300,000
300,000
(2,929)
297,071
Unsecured senior notes payable
4.00%
3.91
2/1/50
—
—
—
—
—
700,000
700,000
10,049
710,049
Unsecured senior notes payable
3.00%
3.08
5/18/51
—
—
—
—
—
850,000
850,000
(11,417)
838,583
Unsecured senior notes payable
3.55%
3.63
3/15/52
—
—
—
—
—
1,000,000
1,000,000
(13,892)
986,108
Unsecured senior notes payable
5.15%
5.26
4/15/53
—
—
—
—
—
500,000
500,000
(7,702)
492,298
Unsecured senior notes payable
5.625%
5.71
5/15/54
—
—
—
—
—
600,000
600,000
(6,801)
593,199
Unsecured debt weighted-average interest rate/
subtotal
3.84
—
600,000
650,000
350,000
625,000
10,150,000
12,375,000
(85,887)
12,289,113
Weighted-average interest rate/total
3.89%
$32
$600,034
$784,684
$350,038
$625,041
$10,150,438
$12,510,267
$(86,212)
$12,424,055
(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 for 99 Coolidge Avenue, of which we own a 75.0% interest. As of June 30, 2024, this joint venture has $60.7 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 following page. In July 2024, we executed an agreement with the lender group to amend and restate our unsecured senior line of
credit to, among other changes, extend the maturity date from January 22, 2028 to January 22, 2030, including extension options that we control. We expect that the amendment and restatement will become effective in September 2024
upon the satisfaction of certain conditions.
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 June 30, 2024 (dollars in thousands):
Fixed-Rate
Debt
Variable-Rate
Debt
Weighted-Average
Interest
Remaining
Term
(in years)
Total
Percentage
Rate(1)
Secured notes payable
$619
$134,323
$134,942
1.1%
8.13%
2.4
Unsecured senior notes payable
12,089,561
—
12,089,561
97.3
3.81
13.3
Unsecured senior line of credit
and commercial paper program
—
199,552
199,552
(2)
1.6
5.57
(2)
3.6
(3)
Total/weighted average
$12,090,180
$333,875
$12,424,055
100.0%
3.89%
13.0
(3)
Percentage of total debt
97.3%
2.7%
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 June 30, 2024, we had no outstanding balance on our unsecured senior line of credit and $199.6 million of commercial paper notes outstanding with a weighted-
average interest rate of 5.57%.
(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 is 13.0 years. The commercial paper notes sold during the six
months ended June 30, 2024 were issued at a weighted-average yield to maturity of 5.59% and had a weighted-average maturity term of 16 days.
Unsecured senior notes payable
In February 2024, we issued $1.0 billion of unsecured senior notes payable with a weighted-average interest rate of 5.48%
and a weighted-average maturity of 23.1 years. The unsecured senior notes consisted of $400.0 million of 5.25% unsecured senior
notes due 2036 and $600.0 million of 5.625% unsecured senior notes due 2054.
$5.0 billion unsecured senior line of credit
As of June 30, 2024, our unsecured senior line of credit had aggregate commitments of $5.0 billion and bore an interest rate of
SOFR plus 0.855%. In addition to the cost of borrowing, the unsecured senior line of credit is subject to an annual facility fee of 0.145%
based on the aggregate commitments outstanding. Based upon our ability to achieve certain annual sustainability metrics, 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.
Based on certain sustainability metrics achieved in accordance with the terms of our unsecured senior line of credit
agreement, the borrowing rate was reduced for a one-year period by two basis points to SOFR plus 0.855%, from SOFR plus 0.875%,
and the facility fee was reduced by 0.5 basis point to 0.145% from 0.15%. As of June 30, 2024, we had no outstanding balance on our
unsecured line of credit.
In July 2024, we executed an agreement with the lender group to amend and restate our unsecured senior line of credit to,
among other changes, extend the maturity date from January 22, 2028 to January 22, 2030, including extension options that we control.
We expect that the amendment and restatement will become effective in September 2024 upon the satisfaction of certain conditions.
$2.5 billion commercial paper program
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. During the six months ended June 30, 2024, the commercial paper notes
were issued at a weighted-average yield to maturity of 5.59% and had a weighted-average maturity term of 16 days. As of June 30,
2024, the outstanding balance under our commercial paper program was $199.6 million with a weighted-average interest rate of 5.57%.
Interest expense
The following table summarizes interest expense for the three and six months ended June 30, 2024 and 2023 (in thousands):
Three Months Ended June 30,
Six Months Ended June 30,
2024
2023
2024
2023
Interest incurred
$126,828
$108,746
$249,508
$209,570
Capitalized interest
(81,039)
(91,674)
(162,879)
(178,744)
Interest expense
$45,789
$17,072
$86,629
$30,826