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v3.23.3

Debt (Tables) | 9 Months Ended
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Sep. 30, 2023
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, 2023 |  | December 31, 2022 |  | Interest Rate(1) |  | Contractual Maturity Date(2) |  |
UNSECURED AND SECURED DEBT |  |  |  |  |  |  |  |  |
Unsecured debt |  |  |  |  |  |  |  |  |
Unsecured revolving credit facility(3)(4) | $ | 520,000 |  |  | $ | 385,000 |  |  | SOFR + 1.15% to 1.60% |  | 12/21/2026 | (5) |
Series A notes | — |  |  | 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 |  |  | 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 |  |
5.95% Registered senior notes(6) | 350,000 |  |  | 350,000 |  |  | 5.95% |  | 2/15/2028 |  |
Total unsecured debt | 2,635,000 |  |  | 2,660,000 |  |  |  |  |  |  |
Secured debt |  |  |  |  |  |  |  |  |
Hollywood Media Portfolio | $ | 1,100,000 |  |  | $ | 1,100,000 |  |  | SOFR + 1.10% |  | 8/9/2026 | (7) |
Acquired Hollywood Media Portfolio debt | (209,814) |  |  | (209,814) |  |  | SOFR + 1.66% |  | 8/9/2026 | (7) |
Hollywood Media Portfolio, net(8)(9) | 890,186 |  |  | 890,186 |  |  |  |  |  |  |
One Westside and Westside Two(10) | 324,632 |  |  | 316,602 |  |  | SOFR + 1.60% |  | 12/18/2024 | (11) |
Element LA | 168,000 |  |  | 168,000 |  |  | 4.59% |  | 11/6/2025 |  |
1918 Eighth(12) | 314,300 |  |  | 314,300 |  |  | SOFR + 1.40% |  | 12/18/2025 |  |
Hill7(13) | 101,000 |  |  | 101,000 |  |  | 3.38% |  | 11/6/2028 |  |
Quixote | — |  |  | 160,000 |  |  | 5.00% |  | 12/31/2023 | (14) |
Total secured debt | 1,798,118 |  |  | 1,950,088 |  |  |  |  |  |  |
Total unsecured and secured debt | 4,433,118 |  |  | 4,610,088 |  |  |  |  |  |  |
Unamortized deferred financing costs/loan discounts(15) | (16,098) |  |  | (24,226) |  |  |  |  |  |  |
TOTAL UNSECURED AND SECURED DEBT, NET | $ | 4,417,020 |  |  | $ | 4,585,862 |  |  |  |  |  |  |
JOINT VENTURE PARTNER DEBT(16) | $ | 66,136 |  |  | $ | 66,136 |  |  | 4.50% |  | 10/9/2032 | (17) |
_________________ 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, 2023, which may be different than the interest rates as of December 31, 2022 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 September 30, 2023, no such election had been made and the unsecured revolving credit facility bore interest at SOFR + 1.35%. 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. Subject to the satisfaction of certain conditions and lender commitments, the operating partnership may increase the commitments held under the Amended and Restated Credit Agreement up to a total of $2.0 billion either in the form of an increase to an existing unsecured revolving credit facility or a new loan, including a term loan. 5.Includes the option to extend the initial maturity date of December 21, 2025 twice for an additional six-month term each. 6.An amount equal to the net proceeds from the 5.95% Registered senior notes has been allocated to new or existing eligible green projects. 7.Includes the option to extend the initial maturity date of August 9, 2023 three times for an additional one-year term each. The first extension option was executed as of August 9, 2023. 8.The Company purchased bonds comprising the loan in the amount of $209.8 million. 9.The floating interest rate on $539.0 million of principal has been capped at 5.70% through the use of an interest rate cap. The floating interest rate on the remaining $351.2 million of principal is effectively fixed at 3.31% through the use of an interest rate swap. 10.The Company has the ability to draw up to $414.6 million under the construction loan, which is secured by the One Westside and Westside Two properties. 11.Includes the option to extend the initial maturity date of December 18, 2023 twice for an additional six-month term each. 12.This loan is interest-only through its term. The floating interest rate on $141.4 million of principal has been capped at 5.00% through the use of an interest rate cap. The floating interest rate on the remaining $172.9 million of principal has been effectively fixed at 3.75% through the use of an interest rate swap. 13.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. 14.The note was settled in April 2023 for consideration of $150.0 million, a $10.0 million discount on the note’s principal balance. 15.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. 16.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. 17.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 September 30, 2023:
Year |  | Unsecured and Secured Debt |  | Joint Venture Partner Debt
Remaining 2023 |  | $ | — |  |  | $ | — |
2024 |  | 324,632 |  |  | — |
2025 |  | 741,300 |  |  | — |
2026 |  | 1,560,186 |  |  | — |
2027 |  | 456,000 |  |  | — |
Thereafter |  | 1,351,000 |  |  | 66,136 |
TOTAL |  | $ | 4,433,118 |  |  | $ | 66,136 |
Schedule of Existing Covenants and their Covenant Levels | The following table summarizes existing covenants and their covenant levels as of September 30, 2023 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% |  | 49.0%
Unsecured indebtedness to unencumbered asset value |  | ≤ 60% |  | 57.7%
Adjusted EBITDA to fixed charges |  | ≥ 1.5x |  | 2.1x
Secured indebtedness to total asset value |  | ≤ 45% |  | 20.8%
Unencumbered NOI to unsecured interest expense |  | ≥ 2.0x |  | 2.4x
The following table summarizes existing covenants and their covenant levels related to the registered senior notes as of September 30, 2023:
Covenant Ratio(1) |  | Covenant Level |  | Actual Performance
Debt to total assets |  | ≤ 60% |  | 45.2%
Total unencumbered assets to unsecured debt |  | ≥ 150% |  | 221.9%
Consolidated income available for debt service to annual debt service charge |  | ≥ 1.5x |  | 2.2x
Secured debt to total assets |  | ≤ 45% |  | 19.1%
_________________ 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, 4.65% Senior Notes and 5.95% Senior Notes.
Schedule of 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 September 30, |  | Nine Months Ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Gross interest expense(1) | $ | 57,702 |  |  | $ | 43,126 |  |  | $ | 165,425 |  |  | $ | 111,286 |
Capitalized interest | (8,606) |  |  | (4,797) |  |  | (22,779) |  |  | (11,674) |
Non-cash interest expense (income)(2) | 4,485 |  |  | (1,068) |  |  | 19,390 |  |  | 2,204 |
INTEREST EXPENSE | $ | 53,581 |  |  | $ | 37,261 |  |  | $ | 162,036 |  |  | $ | 101,816 |
_________________ 1.Includes interest on the Company’s debt and hedging activities. 2.Includes the amortization of deferred financing costs and fair market value adjustments for our mark-to-market interest rate derivatives.

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