v3.26.1
Secured and Unsecured Debt of the Operating Partnership
 3 Months Ended
Mar. 31, 2026
Kilroy Realty L.P.  
Debt Instrument [Line Items]  
Secured and Unsecured Debt of the Operating Partnership Secured and Unsecured Debt of the Operating Partnership
The Company generally guarantees all of the Operating Partnership’s unsecured debt obligations, including the unsecured revolving credit facility, the unsecured term loan facility, and all of the unsecured senior notes.

Unsecured Revolving Credit Facility and Term Loan Facility

The following table summarizes the balance and terms of our unsecured revolving credit facility:
Unsecured Revolving Credit Facility
March 31, 2026December 31, 2025
($ in thousands)
Outstanding borrowings$— $— 
Remaining borrowing capacity (1)
1,100,000 1,100,000 
Total borrowing capacity (1)
$1,100,000 $1,100,000 
Interest rate (2)
4.88 %5.07 %
Annual facility fee (3)
0.25%
Unamortized deferred financing costs (3)
$8,264 $9,150 
Maturity date (4)
July 31, 2028
________________________
(1)Remaining and total borrowing capacity are further reduced by the amount of our outstanding letters of credit, which total approximately $5.2 million as of March 31, 2026 and December 31, 2025. We may elect to borrow, subject to bank approval and obtaining commitments for any additional borrowing capacity, up to an additional $500.0 million under an accordion feature pursuant to the terms of the unsecured revolving credit facility.
(2)Our unsecured revolving credit facility interest rate was calculated using the Secured Overnight Financing Rate (“SOFR”) plus a SOFR adjustment of 0.10% (together “Adjusted SOFR”) and a margin of 1.100% based on our credit rating as of March 31, 2026 and December 31, 2025. We may be entitled to a temporary 0.01% reduction in the interest rate, provided we meet certain sustainability goals with respect to the ongoing reduction of greenhouse gas emissions.
(3)Our annual facility fee is paid on a quarterly basis and is calculated based on total borrowing capacity. In addition to the facility fee, we incurred debt origination and legal costs in connection with the amendment and restatement of the unsecured revolving credit facility in 2024. These costs are included in Prepaid expenses and other assets, net on our consolidated balance sheets, and will continue to be amortized through the maturity date.
(4)The maturity date may be extended by two six-month periods, at the Operating Partnership’s election.

The Operating Partnership intends to borrow under the unsecured revolving credit facility from time to time for general corporate purposes, including to finance development and redevelopment expenditures, to fund potential acquisitions, to repay long-term debt, and to supplement cash balances in response to market conditions.
The following table summarizes the balance and terms of our 2024 Term Loan Facility:

2024 Term Loan Facility
March 31, 2026December 31, 2025
($ in thousands)
Outstanding borrowings (1)
$200,000 $200,000 
Interest rate (2)
4.97 %5.02 %
Unamortized deferred financing costs (3)
$186 $277 
Maturity date (4)
October 3, 2026
____________________
(1)We may elect to borrow, subject to bank approval and obtaining commitments for any additional borrowing capacity, up to an additional $130.0 million under an accordion feature pursuant to the terms of the 2024 Term Loan Facility.
(2)Our 2024 Term Loan Facility interest rate was calculated using Adjusted SOFR plus a margin of 1.200% based on our credit rating as of March 31, 2026 and December 31, 2025.
(3)We incurred debt origination and legal costs in connection with the amendment and restatement of the 2024 Term Loan Facility in 2024, which will continue to be amortized through the maturity date. Additionally, in connection with extending the maturity date in September 2025, we incurred additional costs that will continue to be amortized through the extended maturity date of the 2024 Term Loan Facility.
(4)The maturity date may be extended by a 12-month period, at the Operating Partnership’s election.

Financial Covenants and Restrictions

The unsecured revolving credit facility, unsecured term loan facility, unsecured senior notes, including the private placement notes, and certain other secured debt arrangements contain covenants and restrictions requiring us to meet certain financial ratios and reporting requirements. Some of the more restrictive financial covenants include a maximum ratio of total debt to total asset value, a minimum fixed-charge coverage ratio, a maximum ratio of secured debt to total asset value, a minimum unsecured debt ratio, and a minimum unencumbered asset pool debt service coverage ratio. Noncompliance with one or more of the covenants and restrictions could result in the full principal balance of the associated debt becoming immediately due and payable. We were in compliance with all of our financial covenants as of March 31, 2026.

Debt Maturities

The following table summarizes the stated debt maturities and scheduled amortization payments for all outstanding debt as of March 31, 2026:

Year
(in thousands)
Remaining 2026 (1)
$599,717 
2027249,125 
2028400,000 
2029475,000 
2030500,000 
2031350,000 
Thereafter2,050,000 
Total aggregate principal value$4,623,842 
Less: unamortized net discounts and deferred financing costs (2)
(34,451)
Total debt, net$4,589,391 
________________________ 
(1)In April 2026, repaid the outstanding $50.0 million of 4.300% Private Placement Senior Notes Series A due July 2026, at par. Refer to Note 16 “Subsequent Events” for additional information.
(2)Includes $23.8 million of unamortized deferred financing costs for the unsecured term loan facility, unsecured senior notes, and secured debt, and $10.6 million of unamortized discounts for the unsecured senior notes. Excludes unamortized deferred financing costs on the unsecured revolving credit facility, which are included in Prepaid expenses and other assets, net on our consolidated balance sheets.
Capitalized Interest

The following table sets forth our gross interest expense and capitalized interest. Capitalized interest was recorded as a cost of development and redevelopment and increased the carrying value of undeveloped land and construction in progress:
Three Months Ended March 31,
20262025
(in thousands)
Gross interest expense$52,502 $51,696 
Capitalized interest
(13,991)(20,548)
Interest expense$38,511 $31,148