Douglas Emmett Inc
For the period ended Mar 31, 2024. Filed May 10, 2024.
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Mar 31, 2024 · Filed May 10, 2024
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Secured Notes Payable, Net
- Secured Notes Payable, Net
| Description · MaturityDate(1) · Principal Balance as of March 31, 2024 · Principal Balance as of December 31, 2023 · Variable Interest Rate · Fixed InterestRate(2) · Swap Maturity Date | |||||||
|---|---|---|---|---|---|---|---|
| (In thousands) | |||||||
| Consolidated Wholly Owned Subsidiaries | |||||||
| Term loan(3)(5) | 3/3/2025 | $335,000 | $335,000 | SOFR + 1.41% | N/A | N/A | |
| Fannie Mae loan(3)(5) | 4/1/2025 | 102,400 | 102,400 | SOFR + 1.36% | N/A | N/A | |
| Term loan(3) | 8/15/2026 | 415,000 | 415,000 | SOFR + 1.20% | 3.07% | 8/1/2025 | |
| Term loan(3) | 9/19/2026 | 400,000 | 400,000 | SOFR + 1.25% | 2.44% | 9/1/2024 | |
| Term loan(3) | 9/26/2026 | 200,000 | 200,000 | SOFR + 1.30% | 2.36% | 10/1/2024 | |
| Term loan(3) | 11/1/2026 | 400,000 | 400,000 | SOFR + 1.25% | 2.31% | 10/1/2024 | |
| Fannie Mae loan(3)(4) | 6/1/2027 | 550,000 | 550,000 | SOFR + 1.48% | N/A | N/A | |
| Term loan(3) | 5/18/2028 | 300,000 | 300,000 | SOFR + 1.51% | 2.21% | 6/1/2026 | |
| Term loan(3) | 1/1/2029 | 300,000 | 300,000 | SOFR + 1.56% | 2.66% | 1/1/2027 | |
| Fannie Mae loan(3) | 6/1/2029 | 255,000 | 255,000 | SOFR + 1.09% | 3.26% | 6/1/2027 | |
| Fannie Mae loan(3) | 6/1/2029 | 125,000 | 125,000 | SOFR + 1.09% | 3.25% | 6/1/2027 | |
| Fannie Mae loan(3)(5) | 8/1/2033 | 350,000 | 350,000 | SOFR + 1.37% | N/A | N/A | |
| Term loan(6) | 6/1/2038 | 27,419 | 27,640 | N/A | 4.55% | N/A | |
| Total Wholly-Owned Subsidiary Debt | 3,759,819 | 3,760,040 | |||||
| Consolidated JVs | |||||||
| Term loan(3)(9) | 12/19/2024 | 400,000 | 400,000 | SOFR + 1.40% | N/A | N/A | |
| Term loan(3) | 5/15/2027 | 450,000 | 450,000 | SOFR + 1.45% | 2.26% | 4/1/2025 | |
| Term loan(3) | 8/19/2028 | 625,000 | 625,000 | SOFR + 1.45% | 2.12% | 6/1/2025 | |
| Term loan(3)(7) | 4/26/2029 | 175,000 | 175,000 | SOFR + 1.25% | 3.90% | 5/1/2026 | |
| Fannie Mae loan(3) | 6/1/2029 | 160,000 | 160,000 | SOFR + 1.09% | 3.25% | 7/1/2027 | |
| Total Consolidated Debt(8) | 5,569,819 | 5,570,040 | |||||
| Unamortized loan premium, net(9) | 2,973 | 3,087 | |||||
| Unamortized deferred loan costs, net(10) | (28,275) | (29,956) | |||||
| Total Consolidated Debt, net | $5,544,517 | $5,543,171 | |||||
Except as noted below, our loans: (i) are non-recourse, (ii) are secured by separate collateral pools consisting of one or more properties, (iii) require interest-only monthly payments with the outstanding principal due upon maturity, and (iv) contain certain financial covenants which could require us to deposit excess cash flow with the lender under certain circumstances unless we (at our option) either provide a guarantee or additional collateral or pay down the loan within certain parameters set forth in the loan documents. Certain loans with maturity date extension options require us to meet minimum financial thresholds in order to extend the loan maturity date.
(1)Maturity dates include extension options.
(2)Effective rate as of March 31, 2024. Includes the effect of interest rate swaps (if applicable) and excludes the effect of prepaid loan fees and loan premiums. See Note 10 for details of our interest rate swaps. See further below for details of our loan costs and loan premiums.
(3)The loan agreement includes azero-percent SOFR floor. If the loan is swap-fixed then the related swaps do not include such a floor.
(4)The loan is secured byfour residential properties. A portion of the loan totaling $472 million has a lender-required out-of-the-money interest rate cap at a weighted average of 8.99% until July 2026. For the portion of the loan relating to Barrington Plaza, in connection with the removal of that property from the rental market during 2023, the lender is treating the debt as a construction loan and we signed a construction completion guarantee in January 2024. The lender also required a $13.3 million cash deposit, which we placed into an interest bearing collateral account during 2023. The lender will return the deposit at the earlier of August 2026 or when the loan is paid in full. The deposit is included in Other assets in our consolidated balance sheets. See Note 7.
(5)The loan has a lender-required out-of-the-money interest rate cap at an interest rate of 7.84% until August 2026.
(6)The loan requires monthly payments of principal and interest. The principal amortization is based upon a 30-year amortization schedule.
(7)We guaranteed the portion of the loan principal that would need to be paid down in order to meet the minimum debt yield in the loan agreement. See Note 16.
(8)The table does not include our unconsolidated Fund's loan - see Note 16. See Note 13 for our debt fair value disclosures.
(9)Balances are net of accumulated amortization of $4.2 million and $4.1 million at March 31, 2024 and December 31, 2023, respectively.
(10)Balances are net of accumulated amortization of $57.7 million and $56.0 million at March 31, 2024 and December 31, 2023, respectively.
Debt Statistics
The table below summarizes our consolidated fixed and floating rate debt:
| (In thousands) | Principal Balance as of March 31, 2024 | Principal Balance as of December 31, 2023 |
|---|---|---|
| Aggregate swapped to fixed rate loans | $3,805,000 | $3,805,000 |
| Aggregate fixed rate loans | 27,419 | 27,640 |
| Aggregate capped rate loans | 822,000 | 822,000 |
| Aggregate floating rate loans | 915,400 | 915,400 |
| Total Debt | $5,569,819 | $5,570,040 |
The table below summarizes certain consolidated debt statistics as of March 31, 2024:
| Statistics for consolidated loans with interest fixed under the terms of the loan or a swap | |
|---|---|
| Principal balance (in billions) | $3.83 |
| Weighted average remaining life (including extension options) | 3.8 years |
| Weighted average remaining fixed interest period | 1.6 years |
| Weighted average annual interest rate | 2.66% |
Future Principal Payments
At March 31, 2024, the minimum future principal payments due on our consolidated secured notes payable were as follows:
| Twelve months ending March 31: | Including Maturity Extension Options(1) |
|---|---|
| (In thousands) | |
| 2025 | $735,912 |
| 2026 | 103,354 |
| 2027 | 1,415,999 |
| 2028 | 1,001,045 |
| 2029 | 1,226,094 |
| Thereafter | 1,087,415 |
| Total future principal payments | $5,569,819 |
(1) Some of our loan agreements require that we meet certain minimum financial thresholds to be able to extend the loan maturity.
Loan Premium and Loan Costs
The table below presents loan premium and loan costs, which are included in Interest expense on our consolidated statements of operations:
| Three Months Ended March 31, | ||
|---|---|---|
| (In thousands) | 2024 | 2023 |
| Loan premium amortized and written off | $(115) | $(113) |
| Deferred loan costs amortized and written off | 2,209 | 2,134 |
| Loan costs expensed | 52 | 3 |
| Total | $2,146 | $2,024 |
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