XML 59 R47.htm IDEA: XBRL DOCUMENT v3.22.1
Debt (Tables)
 3 Months Ended
Mar. 31, 2022
Debt Disclosure [Abstract]  
Schedule of long-term debt instruments
The following table sets forth information with respect to the Company’s outstanding indebtedness:
March 31, 2022December 31, 2021
Interest Rate(1)
Contractual Maturity Date(2)
UNSECURED AND SECURED DEBT
Unsecured debt
Unsecured revolving credit facility)(3)(4)
$335,000 $125,000 
LIBOR + 1.05% to 1.50%
12/21/2026(5)
Series A notes(6)
110,000 110,000 4.34%1/2/2023
Series B notes(6)
259,000 259,000 4.69%12/16/2025
Series C notes(6)
56,000 56,000 4.79%12/16/2027
Series D notes(7)
150,000 150,000 3.98%7/6/2026
Series E notes(8)
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
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 debt2,260,000 2,050,000 
Secured debt
Hollywood Media Portfolio$1,100,000 $1,100,000 
LIBOR + 1.17%
8/9/2026(9)
Acquired Hollywood Media Portfolio debt(209,814)(209,814)
LIBOR + 1.55%
8/9/2026(9)
Hollywood Media Portfolio, net(10)(11)
890,186 890,186 
One Westside and 10850 Pico(12)
267,234 241,388 
LIBOR + 1.70%
12/18/2024(13)
Element LA168,000 168,000 4.59%11/6/2025
1918 Eighth(14)
314,300 314,300 
LIBOR + 1.30%
12/18/2025
Hill7(15)
101,000 101,000 3.38%11/6/2028
Total secured debt1,740,720 1,714,874 
Total unsecured and secured debt4,000,720 3,764,874 
Unamortized deferred financing costs/loan discounts(16)
(28,069)(30,971)
TOTAL UNSECURED AND SECURED DEBT, NET$3,972,651 $3,733,903 
IN-SUBSTANCE DEFEASED DEBT(17)
$127,294 $128,212 4.47%10/1/2022
JOINT VENTURE PARTNER DEBT(18)
$66,136 $66,136 4.50%10/9/2032(19)
_________________
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 March 31, 2022, which may be different than the interest rates as of December 31, 2021 for corresponding indebtedness.
2.Maturity dates include the effect of extension options.
3.The annual facility fee rate ranges from 0.15% to 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 March 31, 2022, no such election had been made and the unsecured revolving credit facility bore interest at LIBOR + 1.20%.
4.The Company has a total capacity of $1.0 billion available under its unsecured revolving credit facility, up to $250.0 million of which can be used for borrowings in pounds sterling or Canadian dollars.
5.Includes the option to extend the initial maturity date of December 21, 2025 twice for an additional six-month term each.
6.The notes pay interest semi-annually on the 16th day of June and December in each year until maturity.
7.The notes pay interest semi-annually on the 6th day of January and July in each year until maturity.
8.The notes pay interest semi-annually on the 15th day of March and September in each year until maturity.
9.Includes the option to extend the initial maturity date of August 9, 2023 three times for an additional one-year term each.
10.The Company owns 51% of the ownership interests 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. 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.
11.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 March 31, 2022, 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.
12.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.
13.Includes the option to extend the initial maturity date of December 18, 2023 twice for an additional six-month term each.
14.The Company owns 55% of the ownership interests 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.
15.The Company owns 55% of the ownership interests 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.
16.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.
17.The Company owns 75% of the ownership interests 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.
18.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.
19.Includes the option to extend the initial maturity date of October 9, 2028 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 (after the impact of extension options, if applicable) as of March 31, 2022:

YearUnsecured and Secured DebtIn-substance Defeased DebtJoint Venture Partner Debt
Remaining 2022$— $127,294 $— 
2023160,000 — — 
2024267,234 — — 
2025741,300 — — 
20261,375,186 — — 
Thereafter1,457,000 — 66,136 
TOTAL
$4,000,720 $127,294 $66,136 
Summary of existing covenants and their covenant levels
The following table summarizes existing covenants and their covenant levels as of March 31, 2022 related to our 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%
41.8%
Unsecured indebtedness to unencumbered asset value
≤ 60%
37.7%
Adjusted EBITDA to fixed charges
≥ 1.5x
3.6x
Secured indebtedness to total asset value
≤ 45%
19.1%
Unencumbered NOI to unsecured interest expense
≥ 2.0x
3.8x

The following table summarizes existing covenants and their covenant levels related to the registered senior notes as of March 31, 2022:
Covenant Ratio(1)
Covenant LevelActual Performance
Debt to total assets
≤ 60%
43.6%
Total unencumbered assets to unsecured debt
 ≥ 150%
265.2%
Consolidated income available for debt service to annual debt service charge
≥ 1.5x
4.5x
Secured debt to total assets
≤ 45%
19.6%
_________________
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.
Reconciliation of Gross Interest Expense and 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 March 31,
20222021
Gross interest expense(1)
$30,731 $33,540 
Capitalized interest(3,285)(5,671)
Amortization of deferred financing costs and loan discounts/premiums3,390 2,417 
INTEREST EXPENSE
$30,836 $30,286 
_________________
1.Includes interest on the Company’s debt and hedging activities.