v3.24.2
Debt
 6 Months Ended
Jun. 30, 2024
Debt Disclosure [Abstract]  
Debt Debt
Term Loan Agreement

As of both June 30, 2024 and December 31, 2023, we had a €500.0 million unsecured term loan outstanding maturing on April 24, 2026 (our “Unsecured Term Loan due 2026”), comprised of (i) a €300.0 million term loan (our “Term Loan due 2026”) and (ii) a €200.0 million delayed draw term loan (our “Delayed Draw Term Loan due 2026”). The Unsecured Term Loan due 2026 is incorporated into the Senior Unsecured Credit Facility, which is described below.

Senior Unsecured Credit Facility

As of both June 30, 2024 and December 31, 2023, we had a multi-currency senior unsecured credit facility, comprised of (i) a $2.0 billion unsecured revolving credit facility maturing on February 14, 2029 (our “Unsecured Revolving Credit Facility”), (ii) a £270.0 million term loan maturing on February 14, 2028 (our “GBP Term Loan due 2028”), and (iii) a €215.0 million term loan maturing on February 14, 2028 (our “EUR Term Loan due 2028”). We have an option to extend each of these term loans by up to an additional year, subject to certain customary conditions. We refer to these term loans collectively as the “Unsecured Term Loans due 2028.” We refer to our Unsecured Term Loan due 2026 and Unsecured Term Loans due 2028 collectively as our “Unsecured Term Loans.” We refer to our Unsecured Revolving Credit Facility and our Unsecured Term Loans collectively as our “Senior Unsecured Credit Facility.”

As of June 30, 2024, the aggregate principal amount (of revolving and term loans) available under the Senior Unsecured Credit Facility was able to be increased up to an amount not to exceed the U.S. dollar equivalent of $4.35 billion, subject to the conditions to increase set forth in our credit agreement.

At June 30, 2024, our Unsecured Revolving Credit Facility had available capacity of approximately $2.0 billion (net of amounts reserved for standby letters of credit totaling $5.8 million). We incur an annual facility fee of 0.15% of the total commitment on our Unsecured Revolving Credit Facility based on our credit ratings of BBB+ and Baa1, which is included within Interest expense in our consolidated statements of income.
The following table presents a summary of our Senior Unsecured Credit Facility (dollars in thousands):
Senior Unsecured Credit Facility
Interest Rate at
June 30, 2024 (a)
Maturity Date at June 30, 2024
Principal Outstanding Balance at
June 30, 2024December 31, 2023
Unsecured Term Loans: (b)
Unsecured Term Loan due 2026 — borrowing in euros (c)
4.34%
4/24/2026$535,250 $552,500 
GBP Term Loan due 2028 — borrowing in British pounds sterling (d)
SONIA + 0.85%
2/14/2028341,495 343,306 
EUR Term Loan due 2028 — borrowing in euros (e)
EURIBOR + 0.85%
2/14/2028230,158 237,575 
1,106,903 1,133,381 
Unsecured Revolving Credit Facility:
Borrowing in Japanese yen (f)
TIBOR + 0.775%
2/14/202915,005 17,035 
Borrowing in eurosN/A2/14/2029— 386,750 
15,005 403,785 


$1,121,908 $1,537,166 
__________
(a)The applicable interest rate at June 30, 2024 was based on the credit ratings for our Senior Unsecured Notes of BBB+/Baa1.
(b)Balance excludes unamortized discount of $6.2 million and $7.4 million at June 30, 2024 and December 31, 2023, respectively, and unamortized deferred financing costs of $0.3 million and $0.4 million at June 30, 2024 and December 31, 2023, respectively.
(c)Interest rate is subject to variable-to-fixed interest rate swaps that fix the total per annum interest rate at 4.34% through December 31, 2024. Upon maturity of the interest rate swaps, the Unsecured Term Loan due 2026 will be subject to a variable interest rate of EURIBOR + 0.85%.
(d)SONIA means Sterling Overnight Index Average.
(e)EURIBOR means Euro Interbank Offered Rate.
(f)TIBOR means Tokyo Interbank Offered Rate.

Senior Unsecured Notes

As set forth in the table below, we have euro and U.S. dollar-denominated senior unsecured notes outstanding with an aggregate principal balance outstanding of $6.6 billion at June 30, 2024 (the “Senior Unsecured Notes”).

On May 16, 2024, we completed an underwritten public offering of €650.0 million of 4.25% Senior Notes due 2032, at a price of 99.526% of par value. These 4.25% Senior Notes due 2032 have an 8.2-year term and are scheduled to mature on July 23, 2032.

On June 28, 2024, we completed an underwritten public offering of $400.0 million of 5.375% Senior Notes due 2034, at a price of 98.843% of par value. These 5.375% Senior Notes due 2034 have a 10.0-year term and are scheduled to mature on June 30, 2034.
Interest on the Senior Unsecured Notes is payable annually or semi-annually in arrears. The Senior Unsecured Notes can be redeemed at par within three months of their respective maturities, or we can call the notes at any time for the principal, accrued interest, and a make-whole amount based upon the applicable government bond yield plus 20 to 35 basis points. The following table presents a summary of our Senior Unsecured Notes outstanding at June 30, 2024 (currency in thousands):
Principal AmountCoupon RateMaturity DatePrincipal Outstanding Balance at
Senior Unsecured Notes, net (a)
Issue DateJune 30, 2024December 31, 2023
4.6% Senior Notes due 2024 (b)
3/14/2014$500,000 4.6 %4/1/2024$— $500,000 
2.25% Senior Notes due 2024 (c)
1/19/2017€500,000 2.25 %7/19/2024535,250 552,500 
4.0% Senior Notes due 2025
1/26/2015$450,000 4.0 %2/1/2025450,000 450,000 
2.25% Senior Notes due 2026
10/9/2018€500,000 2.25 %4/9/2026535,250 552,500 
4.25% Senior Notes due 2026
9/12/2016$350,000 4.25 %10/1/2026350,000 350,000 
2.125% Senior Notes due 2027
3/6/2018€500,000 2.125 %4/15/2027535,250 552,500 
1.35% Senior Notes due 2028
9/19/2019€500,000 1.35 %4/15/2028535,250 552,500 
3.85% Senior Notes due 2029
6/14/2019$325,000 3.85 %7/15/2029325,000 325,000 
3.41% Senior Notes due 2029
9/28/2022€150,000 3.41 %9/28/2029160,575 165,750 
0.95% Senior Notes due 2030
3/8/2021€525,000 0.95 %6/1/2030562,013 580,125 
2.4% Senior Notes due 2031
10/14/2020$500,000 2.4 %2/1/2031500,000 500,000 
2.45% Senior Notes due 2032
10/15/2021$350,000 2.45 %2/1/2032350,000 350,000 
4.25% Senior Notes due 2032
5/16/2024€650,000 4.25 %7/23/2032695,825 — 
3.7% Senior Notes due 2032
9/28/2022€200,000 3.7 %9/28/2032214,100 221,000 
2.25% Senior Notes due 2033
2/25/2021$425,000 2.25 %4/1/2033425,000 425,000 
5.375% Senior Notes due 2034
6/28/2024$400,000 5.375 %6/30/2034400,000 — 
$6,573,513 $6,076,875 
__________
(a)Aggregate balance excludes unamortized deferred financing costs totaling $28.0 million and $21.1 million, and unamortized discount totaling $25.6 million and $20.1 million, at June 30, 2024 and December 31, 2023, respectively.
(b)In April 2024, we repaid our $500 million of 4.6% Senior Notes due 2024 at maturity.
(c)In July 2024, we repaid our €500 million of 2.25% Senior Notes due 2024 at maturity (Note 15).

Covenants

The credit agreements for our Senior Unsecured Credit Facility, each of the Senior Unsecured Notes, and certain of our non-recourse mortgage loan agreements include customary financial maintenance covenants that require us to maintain certain ratios and benchmarks at the end of each quarter. There have been no significant changes in our debt covenants from what was disclosed in the 2023 Annual Report. We were in compliance with all of these covenants at June 30, 2024.

Non-Recourse Mortgages
 
At June 30, 2024, the weighted-average interest rate for our total non-recourse mortgage notes payable was 4.5% (fixed-rate and variable-rate non-recourse mortgage notes payable were 4.5% and 5.4%, respectively), with maturity dates ranging from August 2024 to February 2033.

In June 2024, we assumed a non-recourse mortgage loan with an outstanding principal balance of $21.9 million in connection with the acquisition of a property (Note 4). This mortgage loan has a fixed annual interest rate of 4.5% and a maturity date of February 6, 2028.

Repayments

During the six months ended June 30, 2024, we (i) repaid non-recourse mortgage loans at or close to maturity with an aggregate principal balance of approximately $84.9 million and (ii) prepaid non-recourse mortgage loans totaling $33.8 million. The weighted-average interest rate for these non-recourse mortgage loans on their respective dates of repayment was 4.8%.
Foreign Currency Exchange Rate Impact

During the six months ended June 30, 2024, the U.S. dollar strengthened against the euro, resulting in a decrease of $150.5 million in the aggregate carrying values of our Non-recourse mortgages, net, Senior Unsecured Credit Facility, and Senior Unsecured Notes, net from December 31, 2023 to June 30, 2024.

Scheduled Debt Principal Payments
 
Scheduled debt principal payments as of June 30, 2024 are as follows (in thousands):
Years Ending December 31, Total
2024 (remainder) (a)
$602,952 
2025707,294 
20261,510,520 
2027537,595 
20281,156,892 
Thereafter through 20343,651,313 
Total principal payments8,166,566 
Unamortized discount, net(35,570)
Unamortized deferred financing costs(28,548)
Total$8,102,448 
__________
(a)In July 2024, we repaid our €500 million of 2.25% Senior Notes due 2024 at maturity (Note 15).

Certain amounts in the table above are based on the applicable foreign currency exchange rate at June 30, 2024.