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Debt (Tables) | 12 Months Ended
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Dec. 31, 2020
Debt Disclosure [Abstract] |
Schedule of Long-term Debt Instruments | The following table sets forth information with respect to our outstanding indebtedness:
| December 31, 2020 |  | December 31, 2019 |  | Interest Rate(1) |  | Contractual Maturity Date |
UNSECURED AND SECURED DEBT |  |  |  |  |  |  |  |
Unsecured debt |  |  |  |  |  |  |  |
Unsecured revolving credit facility(2)(3) | $ | — |  |  | $ | 75,000 |  |  | LIBOR + 1.05% to 1.50% |  | 3/13/2022 | (4)
Term Loan B(2)(5) | — |  |  | 350,000 |  |  | LIBOR + 1.20% to 1.70% |  | 4/1/2022 |
Term Loan D(2)(6) | — |  |  | 125,000 |  |  | LIBOR + 1.20% to 1.70% |  | 11/17/2022 |
Series A notes | 110,000 |  |  | 110,000 |  |  | 4.34% |  | 1/2/2023 |
Series B notes | 259,000 |  |  | 259,000 |  |  | 4.69% |  | 12/16/2025 |
Series C notes | 56,000 |  |  | 56,000 |  |  | 4.79% |  | 12/16/2027 |
Series D notes | 150,000 |  |  | 150,000 |  |  | 3.98% |  | 7/6/2026 |
Series E notes | 50,000 |  |  | 50,000 |  |  | 3.66% |  | 9/15/2023 |
3.95% Registered senior notes | 400,000 |  |  | 400,000 |  |  | 3.95% |  | 11/1/2027 |
4.65% Registered senior notes(7) | 500,000 |  |  | 500,000 |  |  | 4.65% |  | 4/1/2029 |
3.25% Registered senior notes(8) | 400,000 |  |  | 400,000 |  |  | 3.25% |  | 1/15/2030 |
Total unsecured debt | 1,925,000 |  |  | 2,475,000 |  |  |  |  |  |
Secured debt |  |  |  |  |  |  |  |
Hollywood Media Portfolio, net(9)(10) | 792,186 |  |  | — |  |  | LIBOR + 2.15% |  | 8/9/2022 |
Met Park North(11) | — |  |  | 64,500 |  |  | LIBOR + 1.55% |  | 8/1/2020 |
10950 Washington(12) | 25,717 |  |  | 26,312 |  |  | 5.32% |  | 3/11/2022 |
One Westside and 10850 Pico(13) | 106,073 |  |  | 5,646 |  |  | LIBOR + 1.70% |  | 12/18/2023 | (4)
Revolving Sunset Bronson Studios/ICON/CUE facility(14) | — |  |  | 5,001 |  |  | LIBOR + 1.35% |  | 3/1/2024 |
Element LA | 168,000 |  |  | 168,000 |  |  | 4.59% |  | 11/6/2025 |
1918 Eighth(15) | 314,300 |  |  | — |  |  | LIBOR + 1.70% |  | 12/18/2025 |
Hill7(16) | 101,000 |  |  | 101,000 |  |  | 3.38% |  | 11/6/2028 |
Total secured debt | 1,507,276 |  |  | 370,459 |  |  |  |  |  |
Total unsecured and secured debt | 3,432,276 |  |  | 2,845,459 |  |  |  |  |  |
Unamortized deferred financing costs/loan discounts(17) | (32,784) |  |  | (27,549) |  |  |  |  |  |
TOTAL UNSECURED AND SECURED DEBT, NET | $ | 3,399,492 |  |  | $ | 2,817,910 |  |  |  |  |  |
IN-SUBSTANCE DEFEASED DEBT(18) | $ | 131,707 |  |  | $ | 135,030 |  |  | 4.47% |  | 10/1/2022 |
JOINT VENTURE PARTNER DEBT (19) | $ | 66,136 |  |  | $ | 66,136 |  |  | 4.50% |  | 10/9/2028 |
_____________ 1.Interest rate with respect to indebtedness is calculated on the basis of a 360-day year for the actual days elapsed. Interest rates are as of December 31, 2020, which may be different than the interest rates as of December 31, 2019 for corresponding indebtedness. 2.The rate is based on the operating partnership’s leverage ratio. The Company has an option to make an irrevocable election to change the interest rate depending on the Company’s credit rating or a specified base rate plus an applicable margin. As of December 31, 2020, no such election had been made. 3.The Company has a total capacity of $600.0 million under its unsecured revolving credit facility. 4.The maturity date may be extended once for an additional one-year term. 5.The interest rate on the outstanding balance of the term loan was effectively fixed at 2.96% to 3.46% per annum through the use of two interest rate swaps. Term Loan B was repaid in the third quarter 2020. Instead of terminating the interest rate swaps on the loan, the swaps were designated under a first payments approach within hedge accounting, where the Company elected to designate a cash flow (LIBOR-based interest payments) instead of a specific piece of debt. See Note 7 for details. 6.The interest rate on the outstanding balance of the term loan was effectively fixed at 2.63% to 3.13% per annum through the use of an interest rate swap. Term Loan D was repaid in the third quarter 2020. Instead of terminating the interest rate swap on the loan, the swap was designated under a first payments approach within hedge accounting, where the Company elected to designate a cash flow (LIBOR-based interest payments) instead of a specific piece of debt. See Note 7 for details. 7.On February 27, 2019, the operating partnership completed an underwritten public offering of $350.0 million of senior notes, which were issued at a discount at 98.663% of par. On June 14, 2019, the operating partnership completed an additional underwritten public offering of $150.0 million of senior notes, which were issued at a premium at 104.544% of par. These notes are treated as a single series of securities with an aggregate principal amount of $500.0 million. 8.On October 3, 2019, the operating partnership completed an underwritten public offering of $400.0 million in senior notes due January 15, 2030. The notes were issued at 99.268% of par value, with a coupon of 3.25%. 9.The Company owns 51% of the ownership interest in the consolidated joint venture that owns the Hollywood Media Portfolio. On July 30, 2020, the joint venture closed a $900.0 million mortgage loan secured by the Hollywood Media Portfolio. This loan has an initial term of two years from the first payment date, with three one-year extension options, subject to certain requirements. In the third quarter 2020, the Company and Blackstone purchased bonds comprising the loan in the amounts of $107.8 million and $12.5 million, respectively. The contractual interest rate on the purchased bonds is LIBOR + 3.31%. 10.The Company repaid Term Loans B ($350.0 million) and D ($125.0 million) in the third quarter 2020 and instead of terminating the interest rate swaps on these loans, the swaps were designated under a first payments approach within hedge accounting, rather than a specific piece of debt. Therefore, the interest rate on $475.0 million of the outstanding balance has been effectively fixed through the use of interest rate swaps. As of December 31, 2020, the LIBOR component of the interest rate was fixed at 1.76% with respect to $350.0 million and 1.43% with respect to $125.0 million of the Hollywood Media Portfolio loan. 11.Interest on the full loan amount was effectively fixed at 3.71% per annum through use of an interest rate swap. See Note 7 for details. On July 31, 2020, the Company paid off the principal outstanding of $64.5 million on the Met Park North mortgage loan. 12.Monthly debt service includes annual debt amortization payments based on a 30-year amortization schedule with a balloon payment at maturity. 13.The Company has the ability to draw up to $414.6 million under the construction loan secured by the One Westside and 10850 Pico properties. 14.The Company has a total capacity of $235.0 million under the Sunset Bronson Studios/ICON/CUE revolving credit facility. This loan is secured by the Company’s Sunset Bronson Studios, ICON and CUE properties. The outstanding borrowings were paid off in the third quarter 2020. 15.On December 18, 2020 the Company acquired, through a joint venture with a subsidiary of CPPIB, the 1918 Eighth office property located in Seattle, Washington. The Company owns 55% of the ownership interest in the consolidated joint venture that owns the 1918 Eighth property. The full amount of the loan is shown. This loan has an initial interest rate of LIBOR plus 1.70% per annum and is interest-only through the five-year term. 16.The Company owns 55% of the ownership interest in the consolidated joint venture that owns the Hill7 property. The full amount of the loan is shown. This loan bears interest only at 3.38% until November 6, 2026, at which time the interest rate will increase and monthly debt service will include principal payments with a balloon payment at maturity. 17.Excludes deferred financing costs related to establishing the Company’s unsecured revolving credit facility and Sunset Bronson Studios/ICON/CUE revolving credit facility, which are reflected in prepaid and other assets, net line item in the Consolidated Balance Sheets. See Note 2 for details. 18.The Company owns 75% of the ownership interest in the joint venture that owns the One Westside and 10850 Pico properties. The full amount of the loan is shown. Monthly debt service includes annual debt amortization payments based on a 10-year amortization schedule with a balloon payment at maturity. 19.This amount relates to debt attributable to Allianz, the Company’s partner in the joint venture that owns the Ferry Building property. The maturity date may be extended twice for an additional two-year term each.
Schedule of Maturities of Long-term Debt | The following table provides information regarding the Company’s future minimum principal payments due on the Company’s debt (before the impact of extension options, if applicable) as of December 31, 2020:
For the Year Ended December 31, | Unsecured and Secured Debt |  | In-Substance Defeased Debt |  | Joint Venture Partner Debt
2021 | $ | 632 |  |  | $ | 3,494 |  |  | $ | — |
2022 | 817,271 |  |  | 128,213 |  |  | — |
2023 | 266,073 |  |  | — |  |  | — |
2024 | — |  |  | — |  |  | — |
2025 | 741,300 |  |  | — |  |  | — |
Thereafter | 1,607,000 |  |  | — |  |  | 66,136 |
TOTAL | $ | 3,432,276 |  |  | $ | 131,707 |  |  | $ | 66,136 |
Schedule of Balance and Key Terms of the Unsecured Revolving Credit Facility | The following table summarizes the balance and key terms of the unsecured revolving credit facility as of:
| December 31, 2020 |  | December 31, 2019
Outstanding borrowings | $ | — |  |  | $ | 75,000 |
Remaining borrowing capacity | 600,000 |  |  | 525,000 |
TOTAL BORROWING CAPACITY | $ | 600,000 |  |  | $ | 600,000 |
Interest rate(1) | LIBOR + 1.05% to 1.50%
Annual facility fee rate(1) | 0.15% or 0.30%
Contractual maturity date(2) | 3/13/2022
_________________ 1.The rate is based on the operating partnership’s leverage ratio. The Company has the option to make an irrevocable election to change the interest rate depending on the Company’s credit rating. As of December 31, 2020, no such election had been made. 2.The maturity date may be extended once for an additional one-year term.
Summary of Existing Covenants and Their Covenant Levels | The following table summarizes existing covenants and their covenant levels related to our unsecured revolving credit facility, term loans and note purchase agreements, when considering the most restrictive terms:
Covenant Ratio |  | Covenant Level |  | Actual Performance
Total liabilities to total asset value |  | ≤ 60% |  | 38.6%
Unsecured indebtedness to unencumbered asset value |  | ≤ 60% |  | 36.6%
Adjusted EBITDA to fixed charges |  | ≥ 1.5x |  | 3.5x
Secured indebtedness to total asset value |  | ≤ 45% |  | 17.8%
Unencumbered NOI to unsecured interest expense |  | ≥ 2.0x |  | 3.5x
The following table summarizes existing covenants and their covenant levels related to our registered senior notes:
Covenant Ratio(1) |  | Covenant Level |  | Actual Performance
Debt to total assets |  | ≤ 60% |  | 40.8%
Total unencumbered assets to unsecured debt |  | ≥ 150% |  | 288.9%
Consolidated income available for debt service to annual debt service charge |  | ≥ 1.5x |  | 3.8x
Secured debt to total assets |  | ≤ 45% |  | 18.6%
_________________ 1.The covenant and actual performance metrics above represent terms and definitions reflected in the indentures governing the 3.95% Senior Notes and 4.65% Senior Notes based on the financial results as of December 31, 2020.
Reconciliation of Gross Interest Expense and Interest Expense | The following table represents a reconciliation from the gross interest expense to the amount on the interest expense line item on the Consolidated Statements of Operations:
|  | Year Ended December 31,
|  | 2020 |  | 2019 |  | 2018
Gross interest expense(1) |  | $ | 126,447 |  |  | $ | 115,845 |  |  | $ | 92,017 |
Capitalized interest |  | (19,509) |  |  | (16,258) |  |  | (14,815) |
Amortization of deferred financing costs and loan discount, net(2) |  | 9,539 |  |  | 6,258 |  |  | 5,965 |
INTEREST EXPENSE |  | $ | 116,477 |  |  | $ | 105,845 |  |  | $ | 83,167 |
_________________ 1.Includes interest on the Company’s debt and hedging activities in the term loans. 2.Includes loan extinguishment costs of $2.7 million, $0.7 million and $0.4 million during the years ended December 31, 2020, 2019 and 2018, respectively.

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