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Debt (Tables)
 9 Months Ended
Sep. 30, 2021
Debt Disclosure [Abstract]  
Schedule of long-term debt instruments
The following table sets forth information with respect to the Company’s outstanding indebtedness:
September 30, 2021December 31, 2020
Interest Rate(1)
Contractual Maturity Date
UNSECURED AND SECURED DEBT
Unsecured debt
Unsecured revolving credit facility(2)(3)
$300,000 $— 
LIBOR + 1.05% to 1.50%
3/13/2022(4)
Series A notes110,000 110,000 4.34%1/2/2023
Series B notes259,000 259,000 4.69%12/16/2025
Series C notes56,000 56,000 4.79%12/16/2027
Series D notes150,000 150,000 3.98%7/6/2026
Series E notes50,000 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
500,000 500,000 4.65%4/1/2029
3.25% Registered senior notes
400,000 400,000 3.25%1/15/2030
Total unsecured debt2,225,000 1,925,000 
Secured debt
10950 Washington(5)
25,247 25,717 5.32%3/11/2022
Hollywood Media Portfolio, net(6)(7)
890,186 792,186 
LIBOR + 1.17%
8/9/2023
One Westside and 10850 Pico(8)
220,240 106,073 
LIBOR + 1.70%
12/18/2023(4)
Element LA168,000 168,000 4.59%11/6/2025
1918 Eighth(9)
314,300 314,300 
LIBOR + 1.70%
12/18/2025
Hill7(10)
101,000 101,000 3.38%11/6/2028
Total secured debt1,718,973 1,507,276 
Total unsecured and secured debt3,943,973 3,432,276 
Unamortized deferred financing costs and loan discounts/premiums(11)
(33,568)(32,784)
TOTAL UNSECURED AND SECURED DEBT, NET$3,910,405 $3,399,492 
IN-SUBSTANCE DEFEASED DEBT(12)
$129,105 $131,707 4.47%10/1/2022
JOINT VENTURE PARTNER DEBT(13)
$66,136 $66,136 4.50%10/9/2028

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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 September 30, 2021, which may be different than the interest rates as of December 31, 2020 for corresponding indebtedness.
2.The annual facility fee rate is 0.15% or 0.30% 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 September 30, 2021, no such election had been made and the unsecured revolving credit facility bore interest at LIBOR + 1.10%.
3.The Company has a total capacity of $600.0 million available under its unsecured revolving credit facility.
4.The maturity date may be extended once for an additional one-year term.
5.Monthly debt service includes debt amortization payments based on a 30-year amortization schedule with a balloon payment at maturity.
6.The Company owns 51% of the ownership interest in the consolidated joint venture that owns the Hollywood Media Portfolio. The joint venture holds a $1.1 billion mortgage loan secured by the Hollywood Media Portfolio, which has an initial term of two years from the first payment date with three one-year extension options, subject to certain requirements. The effective interest rate on the loan is LIBOR + 1.17% until August 9, 2022, at which time the effective interest rate will decrease to LIBOR + 0.99%. The Company purchased bonds comprising the loan in the amount of $209.8 million.
7.The interest rate on a portion of the outstanding loan balance has been effectively fixed through the use of interest rate swaps under the first payments approach. As of September 30, 2021, 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 loan secured by the Hollywood Media Portfolio, respectively.
8.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.
9.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 is interest-only through its term.
10.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.
11.Excludes deferred financing costs related to establishing the Company’s unsecured revolving credit facility, which are reflected in prepaid expenses and other assets, net on the Consolidated Balance Sheets. See Note 9 for details.
12.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 debt amortization payments based on a 10-year amortization schedule with a balloon payment at maturity.
13.This amount relates to debt attributable to Allianz U.S. Private REIT LP (“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 September 30, 2021:
YearUnsecured and Secured DebtIn-substance Defeased DebtJoint Venture Partner Debt
Remaining 2021$162 $892 $— 
2022325,085 128,213 — 
20231,270,426 — — 
2024— — — 
2025741,300 — — 
Thereafter1,607,000 — 66,136 
TOTAL
$3,943,973 $129,105 $66,136 
Summary of existing covenants and their covenant levels
The following table summarizes existing covenants and their covenant levels as of September 30, 2021 related to the unsecured revolving credit facility, term loans and note purchase agreements, when considering the most restrictive terms:
Covenant RatioCovenant LevelActual Performance
Total liabilities to total asset value
≤ 60%
42.7%
Unsecured indebtedness to unencumbered asset value
≤ 60%
41.7%
Adjusted EBITDA to fixed charges
≥ 1.5x
3.6x
Secured indebtedness to total asset value
≤ 45%
19.4%
Unencumbered NOI to unsecured interest expense
≥ 2.0x
3.5x

The following table summarizes existing covenants and their covenant levels related to the registered senior notes as of September 30, 2021:
Covenant Ratio(1)
Covenant LevelActual Performance
Debt to total assets
≤ 60%
44.0%
Total unencumbered assets to unsecured debt
 ≥ 150%
268.3%
Consolidated income available for debt service to annual debt service charge
≥ 1.5x
4.3x
Secured debt to total assets
≤ 45%
19.8%
_________________
1.The covenant and actual performance metrics above represent terms and definitions reflected in the indentures governing the 3.25% senior notes, 3.95% senior notes and 4.65% senior notes.
Schedule of interest expense
The following table represents a reconciliation from gross interest expense to the interest expense on the Consolidated Statements of Operations:
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Gross interest expense(1)
$33,912 $32,243 $101,341 $93,846 
Capitalized interest(5,760)(4,519)(17,049)(14,264)
Amortization of deferred financing costs and loan discounts/premiums2,673 2,114 7,508 4,603 
INTEREST EXPENSE
$30,825 $29,838 $91,800 $84,185 
_________________
1.Includes interest on the Company’s debt and hedging activities and term loans.