Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 31, 2017 | |
Entity Information [Line Items] | ||
Entity Registrant Name | DUKE REALTY CORP | |
Entity Central Index Key | 783,280 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 355,732,029 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Duke Realty Limited Partnership [Member] | ||
Entity Information [Line Items] | ||
Entity Registrant Name | DUKE REALTY LIMITED PARTNERSHIP | |
Entity Central Index Key | 1,003,410 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Real Estate Assets | $ 5,500,036 | $ 5,144,805 |
Construction in progress | 469,734 | 303,644 |
Investments in and advances to unconsolidated companies | 132,817 | 197,807 |
Undeveloped land | 189,469 | 237,436 |
Real estate investment property, at cost, total | 6,292,056 | 5,883,692 |
Accumulated depreciation | (1,122,527) | (1,042,944) |
Net real estate investments | 5,169,529 | 4,840,748 |
Real estate investments and other assets held-for-sale | 213,654 | 1,324,258 |
Cash and cash equivalents | 76,326 | 12,639 |
Accounts receivable, net of allowance | 23,580 | 15,838 |
Straight-line rent receivable, net of allowance | 86,824 | 82,554 |
Receivables on construction contracts, including retentions | 9,274 | 6,159 |
Deferred leasing and other costs, net of accumulated amortization | 263,358 | 258,741 |
Restricted cash held in escrow for like-kind exchange | 839,128 | 40,102 |
Notes receivable from property sales | 423,946 | 25,460 |
Other escrow deposits and assets | 211,950 | 165,503 |
Total Assets | 7,317,569 | 6,772,002 |
LIABILITIES AND EQUITY | ||
Secured debt, net of deferred financing costs | 337,729 | 383,725 |
Unsecured debt, net of deferred financing costs | 1,942,399 | 2,476,752 |
Unsecured line of credit | 0 | 48,000 |
Long-term debt, total | 2,280,128 | 2,908,477 |
Liabilities related to real estate investments held-for-sale | 9,089 | 56,291 |
Construction payables and amounts due subcontractors, including retentions | 73,749 | 44,250 |
Accrued real estate taxes | 65,551 | 59,112 |
Accrued interest | 13,944 | 23,633 |
Other liabilities | 173,457 | 153,846 |
Tenant security deposits and prepaid rents | 38,195 | 33,100 |
Total Liabilities | 2,654,113 | 3,278,709 |
Equity | ||
Common shares | 3,557 | 3,548 |
Additional paid-in capital | 5,196,184 | 5,192,011 |
Accumulated other comprehensive income | 0 | 682 |
Distributions in excess of net income | (585,592) | (1,730,423) |
Total shareholders' equity | 4,614,149 | 3,465,818 |
Noncontrolling interests | 49,307 | 27,475 |
Total Equity | 4,663,456 | 3,493,293 |
Total Liabilities and Equity | 7,317,569 | 6,772,002 |
Duke Realty Limited Partnership [Member] | ||
ASSETS | ||
Real Estate Assets | 5,500,036 | 5,144,805 |
Construction in progress | 469,734 | 303,644 |
Investments in and advances to unconsolidated companies | 132,817 | 197,807 |
Undeveloped land | 189,469 | 237,436 |
Real estate investment property, at cost, total | 6,292,056 | 5,883,692 |
Accumulated depreciation | (1,122,527) | (1,042,944) |
Net real estate investments | 5,169,529 | 4,840,748 |
Real estate investments and other assets held-for-sale | 213,654 | 1,324,258 |
Cash and cash equivalents | 76,326 | 12,639 |
Accounts receivable, net of allowance | 23,580 | 15,838 |
Straight-line rent receivable, net of allowance | 86,824 | 82,554 |
Receivables on construction contracts, including retentions | 9,274 | 6,159 |
Deferred leasing and other costs, net of accumulated amortization | 263,358 | 258,741 |
Restricted cash held in escrow for like-kind exchange | 839,128 | 40,102 |
Notes receivable from property sales | 423,946 | 25,460 |
Other escrow deposits and assets | 211,950 | 165,503 |
Total Assets | 7,317,569 | 6,772,002 |
LIABILITIES AND EQUITY | ||
Secured debt, net of deferred financing costs | 337,729 | 383,725 |
Unsecured debt, net of deferred financing costs | 1,942,399 | 2,476,752 |
Unsecured line of credit | 0 | 48,000 |
Long-term debt, total | 2,280,128 | 2,908,477 |
Liabilities related to real estate investments held-for-sale | 9,089 | 56,291 |
Construction payables and amounts due subcontractors, including retentions | 73,749 | 44,250 |
Accrued real estate taxes | 65,551 | 59,112 |
Accrued interest | 13,944 | 23,633 |
Other liabilities | 173,457 | 153,846 |
Tenant security deposits and prepaid rents | 38,195 | 33,100 |
Total Liabilities | 2,654,113 | 3,278,709 |
Equity | ||
Common equity | 4,614,149 | 3,465,136 |
Limited Partners' common equity | 40,651 | 24,691 |
Accumulated other comprehensive income | 0 | 682 |
Total partners' equity | 4,654,800 | 3,490,509 |
Noncontrolling interests | 8,656 | 2,784 |
Total Equity | 4,663,456 | 3,493,293 |
Total Liabilities and Equity | $ 7,317,569 | $ 6,772,002 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Accounts receivable, allowance | $ 1,557 | $ 1,391 |
Straight-line rent receivable, allowance | 4,371 | 5,268 |
Deferred leasing and other costs, accumulated amortization | 200,560 | 186,798 |
Debt Issuance Costs, Net | $ 20,367 | $ 23,052 |
Common shares, par value | $ 0.01 | $ 0.01 |
Common shares, shares authorized | 600,000,000 | 600,000,000 |
Common shares, shares issued | 355,713,000 | 354,756,000 |
Common shares, shares outstanding | 355,713,000 | 354,756,000 |
Duke Realty Limited Partnership [Member] | ||
Accounts receivable, allowance | $ 1,557 | $ 1,391 |
Straight-line rent receivable, allowance | 4,371 | 5,268 |
Deferred leasing and other costs, accumulated amortization | $ 200,560 | $ 186,798 |
Common equity, General Partner Units issued | 355,713,000 | 354,756,000 |
Common equity, General Partner Units outstanding | 355,713,000 | 354,756,000 |
Limited Partner Units issued | 3,302,000 | 3,408,000 |
Limited Partner Units outstanding | 3,302,000 | 3,408,000 |
Secured Debt [Member] | ||
Debt Issuance Costs, Net | $ 784 | $ 969 |
Secured Debt [Member] | Duke Realty Limited Partnership [Member] | ||
Debt Issuance Costs, Net | 784 | 969 |
Unsecured Debt [Member] | ||
Debt Issuance Costs, Net | 19,583 | 22,083 |
Unsecured Debt [Member] | Duke Realty Limited Partnership [Member] | ||
Debt Issuance Costs, Net | $ 19,583 | $ 22,083 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues: | ||||
Rental and related revenue | $ 165,836 | $ 157,910 | $ 337,512 | $ 318,497 |
General contractor and service fee revenue | 23,576 | 26,044 | 32,975 | 49,195 |
Revenues, total | 189,412 | 183,954 | 370,487 | 367,692 |
Expenses: | ||||
Rental expenses | 14,506 | 17,017 | 30,743 | 37,752 |
Real estate taxes | 26,902 | 24,899 | 53,412 | 49,685 |
General contractor and other services expenses | 22,374 | 22,228 | 29,998 | 43,148 |
Depreciation and amortization | 67,013 | 61,136 | 129,036 | 120,669 |
Costs and expenses, total | 130,795 | 125,280 | 243,189 | 251,254 |
Other operating activities: | ||||
Equity in earnings of unconsolidated companies | 51,933 | 3,534 | 56,682 | 25,394 |
Gain on dissolution of unconsolidated company | 0 | 30,697 | 0 | 30,697 |
Promote income | 20,007 | 24,087 | 20,007 | 24,087 |
Gain on sale of properties | 34,341 | 39,314 | 71,387 | 54,891 |
Gain on land sales | 1,279 | 707 | 2,784 | 837 |
Other operating expenses | (718) | (836) | (1,457) | (2,072) |
Impairment charges | 0 | (5,651) | (859) | (12,056) |
General and administrative expenses | (11,858) | (11,584) | (31,090) | (29,682) |
Other Operating Activities, Net | 94,984 | 80,268 | 117,454 | 92,096 |
Operating income | 153,601 | 138,942 | 244,752 | 208,534 |
Other income (expenses): | ||||
Interest and other income, net | 2,260 | 567 | 2,792 | 3,090 |
Interest expense | (21,680) | (29,511) | (44,566) | (59,644) |
Loss on debt extinguishment | (9,561) | (2,430) | (9,536) | (2,430) |
Acquisition-related activity | 0 | (72) | 0 | (75) |
Income from continuing operations before income taxes | 124,620 | 107,496 | 193,442 | 149,475 |
Income tax (expense) benefit | (5,426) | 157 | (7,557) | (186) |
Income from continuing operations | 119,194 | 107,653 | 185,885 | 149,289 |
Discontinued operations: | ||||
Income before gain on sales | 11,095 | 2,278 | 15,185 | 4,484 |
Gain on sale of depreciable properties | 1,109,091 | 252 | 1,109,091 | 166 |
Income tax expense | (11,613) | 0 | (11,613) | 0 |
Income from discontinued operations | 1,108,573 | 2,530 | 1,112,663 | 4,650 |
Net income | 1,227,767 | 110,183 | 1,298,548 | 153,939 |
Net income attributable to noncontrolling interests | (17,224) | (1,116) | (17,805) | (1,565) |
Net income attributable to common shareholders | $ 1,210,543 | $ 109,067 | $ 1,280,743 | $ 152,374 |
Basic net income per common share/unit: | ||||
Continuing operations attributable to common shareholders/unitholders | $ 0.33 | $ 0.30 | $ 0.52 | $ 0.43 |
Discontinuing operations attributable to common shareholders/unitholders | 3.07 | 0.01 | 3.08 | 0.01 |
Earnings Per Share, Basic | 3.40 | 0.31 | 3.60 | 0.44 |
Diluted net income per common share/unit: | ||||
Continuing operations attributable to common shareholders/unitholders | 0.33 | 0.30 | 0.51 | 0.43 |
Discontinued operations attributable to common shareholders/unitholders | 3.05 | 0.01 | 3.06 | 0.01 |
Earnings Per Share, Diluted | $ 3.38 | $ 0.31 | $ 3.57 | $ 0.44 |
Weighted average number of common shares/units outstanding | 355,647 | 347,464 | 355,466 | 346,564 |
Weighted average number of common shares/units and potential dilutive securities | 361,981 | 354,433 | 361,789 | 352,227 |
Comprehensive income: | ||||
Net income | $ 1,227,767 | $ 110,183 | $ 1,298,548 | $ 153,939 |
Other comprehensive loss: | ||||
Amortization of interest contracts and other | (426) | (295) | (682) | (590) |
Comprehensive income | 1,227,341 | 109,888 | 1,297,866 | 153,349 |
Duke Realty Limited Partnership [Member] | ||||
Revenues: | ||||
Rental and related revenue | 165,836 | 157,910 | 337,512 | 318,497 |
General contractor and service fee revenue | 23,576 | 26,044 | 32,975 | 49,195 |
Revenues, total | 189,412 | 183,954 | 370,487 | 367,692 |
Expenses: | ||||
Rental expenses | 14,506 | 17,017 | 30,743 | 37,752 |
Real estate taxes | 26,902 | 24,899 | 53,412 | 49,685 |
General contractor and other services expenses | 22,374 | 22,228 | 29,998 | 43,148 |
Depreciation and amortization | 67,013 | 61,136 | 129,036 | 120,669 |
Costs and expenses, total | 130,795 | 125,280 | 243,189 | 251,254 |
Other operating activities: | ||||
Equity in earnings of unconsolidated companies | 51,933 | 3,534 | 56,682 | 25,394 |
Gain on dissolution of unconsolidated company | 0 | 30,697 | 0 | 30,697 |
Promote income | 20,007 | 24,087 | 20,007 | 24,087 |
Gain on sale of properties | 34,341 | 39,314 | 71,387 | 54,891 |
Gain on land sales | 1,279 | 707 | 2,784 | 837 |
Other operating expenses | (718) | (836) | (1,457) | (2,072) |
Impairment charges | 0 | (5,651) | (859) | (12,056) |
General and administrative expenses | (11,858) | (11,584) | (31,090) | (29,682) |
Other Operating Activities, Net | 94,984 | 80,268 | 117,454 | 92,096 |
Operating income | 153,601 | 138,942 | 244,752 | 208,534 |
Other income (expenses): | ||||
Interest and other income, net | 2,260 | 567 | 2,792 | 3,090 |
Interest expense | (21,680) | (29,511) | (44,566) | (59,644) |
Loss on debt extinguishment | (9,561) | (2,430) | (9,536) | (2,430) |
Acquisition-related activity | 0 | (72) | 0 | (75) |
Income from continuing operations before income taxes | 124,620 | 107,496 | 193,442 | 149,475 |
Income tax (expense) benefit | (5,426) | 157 | (7,557) | (186) |
Income from continuing operations | 119,194 | 107,653 | 185,885 | 149,289 |
Discontinued operations: | ||||
Income before gain on sales | 11,095 | 2,278 | 15,185 | 4,484 |
Gain on sale of depreciable properties | 1,109,091 | 252 | 1,109,091 | 166 |
Income tax expense | (11,613) | 0 | (11,613) | 0 |
Income from discontinued operations | 1,108,573 | 2,530 | 1,112,663 | 4,650 |
Net income | 1,227,767 | 110,183 | 1,298,548 | 153,939 |
Net income attributable to noncontrolling interests | (5,984) | (15) | (5,913) | (26) |
Net income attributable to common shareholders | $ 1,221,783 | $ 110,168 | $ 1,292,635 | $ 153,913 |
Basic net income per common share/unit: | ||||
Continuing operations attributable to common shareholders/unitholders | $ 0.33 | $ 0.30 | $ 0.52 | $ 0.43 |
Discontinuing operations attributable to common shareholders/unitholders | 3.07 | 0.01 | 3.08 | 0.01 |
Earnings Per Share, Basic | 3.40 | 0.31 | 3.60 | 0.44 |
Diluted net income per common share/unit: | ||||
Continuing operations attributable to common shareholders/unitholders | 0.33 | 0.30 | 0.51 | 0.43 |
Discontinued operations attributable to common shareholders/unitholders | 3.05 | 0.01 | 3.06 | 0.01 |
Earnings Per Share, Diluted | $ 3.38 | $ 0.31 | $ 3.57 | $ 0.44 |
Weighted average number of common shares/units outstanding | 358,952 | 350,968 | 358,776 | 350,065 |
Weighted average number of common shares/units and potential dilutive securities | 361,981 | 354,433 | 361,789 | 352,227 |
Comprehensive income: | ||||
Net income | $ 1,227,767 | $ 110,183 | $ 1,298,548 | $ 153,939 |
Other comprehensive loss: | ||||
Amortization of interest contracts and other | (426) | (295) | (682) | (590) |
Comprehensive income | $ 1,227,341 | $ 109,888 | $ 1,297,866 | $ 153,349 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 1,298,548 | $ 153,939 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of buildings and tenant improvements | 124,883 | 126,594 |
Amortization of deferred leasing and other costs | 30,002 | 31,365 |
Amortization of deferred financing costs | 2,672 | 2,608 |
Straight-line rental income and expense, net | (7,722) | (5,768) |
Impairment charges | 859 | 12,056 |
Loss on debt extinguishment | 9,536 | 2,430 |
Gain on dissolution of unconsolidated company | 0 | (30,697) |
Accrued promote income | 0 | (24,087) |
Gains on land and depreciated property sales | (1,183,262) | (55,894) |
Third-party construction contracts, net | (1,945) | 723 |
Other accrued revenues and expenses, net | 4,179 | 1,012 |
Operating distributions received less than equity in earnings from unconsolidated companies | (46,303) | (16,080) |
Net cash provided by operating activities | 231,447 | 198,201 |
Cash flows from investing activities: | ||
Development of real estate investments | (288,833) | (213,262) |
Acquisition of real estate investments and related intangible assets | (237,472) | (16,029) |
Acquisition of undeveloped land | (67,923) | (27,243) |
Second generation tenant improvements, leasing costs and building improvements | (20,112) | (30,237) |
Other deferred leasing costs | (16,091) | (14,993) |
Other assets | (828,707) | 182,996 |
Proceeds from land and depreciated property sales, net | 1,977,127 | 174,882 |
Capital distributions from unconsolidated companies | 111,557 | 36,328 |
Capital contributions and advances to unconsolidated companies | (2,039) | (50,955) |
Net cash provided by investing activities | 627,507 | 41,487 |
Cash flows from financing activities: | ||
Proceeds from issuance of common shares, net | 3,690 | 99,844 |
Proceeds from unsecured debt | 0 | 375,000 |
Payments on unsecured debt | (545,924) | (75,668) |
Payments on secured indebtedness including principal amortization | (46,123) | (348,743) |
Repayments of line of credit, net | (48,000) | (71,000) |
Distributions to common shareholders/unitholders | (135,131) | (124,651) |
Distributions to Noncontrolling Interest, Net | (1,298) | (1,304) |
Tax payments on stock-based compensation awards | (9,003) | (6,829) |
Change in book overdrafts | (13,470) | (10,974) |
Deferred financing costs | (8) | (6,196) |
Net cash used for financing activities | (795,267) | (170,521) |
Net increase in cash and cash equivalents | 63,687 | 69,167 |
Cash and cash equivalents at beginning of period | 12,639 | 22,533 |
Cash and cash equivalents at end of period | 76,326 | 91,700 |
Noncash investing and financing activities: | ||
Notes receivable from buyers in property sales | 400,000 | 1,685 |
Conversion of Limited Partner Units to common shares | 1,683 | 185 |
Duke Realty Limited Partnership [Member] | ||
Cash flows from operating activities: | ||
Net income | 1,298,548 | 153,939 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of buildings and tenant improvements | 124,883 | 126,594 |
Amortization of deferred leasing and other costs | 30,002 | 31,365 |
Amortization of deferred financing costs | 2,672 | 2,608 |
Straight-line rental income and expense, net | (7,722) | (5,768) |
Impairment charges | 859 | 12,056 |
Loss on debt extinguishment | 9,536 | 2,430 |
Gain on dissolution of unconsolidated company | 0 | (30,697) |
Accrued promote income | 0 | (24,087) |
Gains on land and depreciated property sales | (1,183,262) | (55,894) |
Third-party construction contracts, net | (1,945) | 723 |
Other accrued revenues and expenses, net | 4,179 | 1,012 |
Operating distributions received less than equity in earnings from unconsolidated companies | (46,303) | (16,080) |
Net cash provided by operating activities | 231,447 | 198,201 |
Cash flows from investing activities: | ||
Development of real estate investments | (288,833) | (213,262) |
Acquisition of real estate investments and related intangible assets | (237,472) | (16,029) |
Acquisition of undeveloped land | (67,923) | (27,243) |
Second generation tenant improvements, leasing costs and building improvements | (20,112) | (30,237) |
Other deferred leasing costs | (16,091) | (14,993) |
Other assets | (828,707) | 182,996 |
Proceeds from land and depreciated property sales, net | 1,977,127 | 174,882 |
Capital distributions from unconsolidated companies | 111,557 | 36,328 |
Capital contributions and advances to unconsolidated companies | (2,039) | (50,955) |
Net cash provided by investing activities | 627,507 | 41,487 |
Cash flows from financing activities: | ||
Contributions from the General Partner | 3,690 | 99,844 |
Proceeds from unsecured debt | 0 | 375,000 |
Payments on unsecured debt | (545,924) | (75,668) |
Payments on secured indebtedness including principal amortization | (46,123) | (348,743) |
Repayments of line of credit, net | (48,000) | (71,000) |
Distributions to common shareholders/unitholders | (136,388) | (125,903) |
Distributions to Noncontrolling Interest, Net | (41) | (52) |
Tax payments on stock-based compensation awards | (9,003) | (6,829) |
Change in book overdrafts | (13,470) | (10,974) |
Deferred financing costs | (8) | (6,196) |
Net cash used for financing activities | (795,267) | (170,521) |
Net increase in cash and cash equivalents | 63,687 | 69,167 |
Cash and cash equivalents at beginning of period | 12,639 | 22,533 |
Cash and cash equivalents at end of period | 76,326 | 91,700 |
Noncash investing and financing activities: | ||
Notes receivable from buyers in property sales | 400,000 | 1,685 |
Conversion of Limited Partner Units to common shares | $ 1,683 | $ 185 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - 6 months ended Jun. 30, 2017 - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Distributions in Excess of Net Income [Member] | Non-controlling Interest [Member] | Duke Realty Limited Partnership [Member] | Duke Realty Limited Partnership [Member]Common Stock [Member] | Duke Realty Limited Partnership [Member]Limited Partners' Common Equity [Member] | Duke Realty Limited Partnership [Member]Accumulated Other Comprehensive Income (Loss) [Member] | Duke Realty Limited Partnership [Member]Non-controlling Interest [Member] | Duke Realty Limited Partnership [Member]Stockholders' Equity, Total [Member] |
Beginning Balance - General Partner at Dec. 31, 2016 | $ 3,493,293 | $ 3,548 | $ 5,192,011 | $ 682 | $ (1,730,423) | $ 27,475 | ||||||
Beginning Balance - Partnership at Dec. 31, 2016 | $ 3,493,293 | $ 3,465,136 | $ 24,691 | $ 682 | $ 2,784 | $ 3,490,509 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net Income | 1,298,548 | 1,280,743 | 17,805 | 1,298,548 | 1,280,743 | 11,892 | 5,913 | 1,292,635 | ||||
Other comprehensive loss | (682) | (682) | (682) | (682) | (682) | |||||||
Issuance of common shares | 3,690 | 1 | 3,689 | |||||||||
Capital contribution from the General Partner | 3,690 | 3,690 | 3,690 | |||||||||
Stock based compensation plan activity | 5,036 | 7 | (1,198) | (781) | 7,008 | 5,036 | (1,972) | 7,008 | 5,036 | |||
Conversion of Limited Partner Units | 1 | 1,682 | (1,683) | 1,683 | (1,683) | |||||||
Distributions to Partners | (136,388) | (135,131) | (1,257) | (136,388) | ||||||||
Distributions to common shareholders | (135,131) | (135,131) | ||||||||||
Distributions to noncontrolling interests | (1,298) | (1,298) | (41) | (41) | ||||||||
Ending Balance - General Partner at Jun. 30, 2017 | $ 4,663,456 | $ 3,557 | $ 5,196,184 | $ 0 | $ (585,592) | $ 49,307 | ||||||
Ending Balance - Partnership at Jun. 30, 2017 | $ 4,663,456 | $ 4,614,149 | $ 40,651 | $ 0 | $ 8,656 | $ 4,654,800 |
Consolidated Statement of Chan7
Consolidated Statement of Changes in Equity (Parenthetical) | 6 Months Ended |
Jun. 30, 2017$ / shares | |
Distributions to common shareholders, per share | $ 0.38 |
Duke Realty Limited Partnership [Member] | |
Distributions to Partners, per Common Unit | $ 0.38 |
General Basis of Presentation (
General Basis of Presentation (Notes) | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General Basis of Presentation | General Basis of Presentation The interim consolidated financial statements included herein have been prepared by the General Partner and the Partnership. The 2016 year-end consolidated balance sheet data included in this Report was derived from the audited financial statements in the combined Annual Report on Form 10-K of the General Partner and the Partnership for the year ended December 31, 2016 (the " 2016 Annual Report"), but does not include all disclosures required by accounting principles generally accepted in the United States of America ("GAAP"). The financial statements have been prepared in accordance with GAAP for interim financial information and in accordance with Rule 10-01 of Regulation S-X of the Securities Exchange Act of 1934, as amended. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenue and expenses during the reporting period. Our actual results could differ from those estimates and assumptions. These financial statements should be read in conjunction with Management's Discussion and Analysis of Financial Condition and Results of Operations included herein and the consolidated financial statements and notes thereto included in the 2016 Annual Report. The General Partner was formed in 1985, and we believe that it qualifies as a REIT under the provisions of the Internal Revenue Code of 1986, as amended (the "Code"). The Partnership was formed on October 4, 1993, when the General Partner contributed all of its properties and related assets and liabilities, together with the net proceeds from an offering of additional shares of its common stock, to the Partnership. Simultaneously, the Partnership completed the acquisition of Duke Associates, a full-service commercial real estate firm operating in the Midwest whose operations began in 1972. The General Partner is the sole general partner of the Partnership, owning approximately 99.1% of the Common Units at June 30, 2017 . The remaining 0.9% of the Common Units are owned by Limited Partners. As the sole general partner of the Partnership, the General Partner has full, exclusive and complete responsibility and discretion in the day-to-day management and control of the Partnership. The General Partner and the Partnership are operated as one enterprise. The management of the General Partner consists of the same members as the management of the Partnership. As the sole general partner with control of the Partnership, the General Partner consolidates the Partnership for financial reporting purposes, and the General Partner does not have any significant assets other than its investment in the Partnership. Therefore, the assets and liabilities of the General Partner and the Partnership are substantially the same. Limited Partners have the right to redeem their Limited Partner Units, subject to certain restrictions. Pursuant to the Fifth Amended and Restated Agreement of Limited Partnership, as amended (the "Partnership Agreement"), the General Partner is obligated to redeem the Limited Partner Units in shares of its common stock, unless it determines in its reasonable discretion that the issuance of shares of its common stock could cause it to fail to qualify as a REIT. Each Limited Partner Unit shall be redeemed for one share of the General Partner's common stock, or, in the event that the issuance of shares could cause the General Partner to fail to qualify as a REIT, cash equal to the fair market value of one share of the General Partner's common stock at the time of redemption, in each case, subject to certain adjustments described in the Partnership Agreement. The Limited Partner Units are not required, per the terms of the Partnership Agreement, to be redeemed in registered shares of the General Partner. During the three months ended June 30, 2017, we substantially completed the disposition of our medical office portfolio (the "Medical Office Portfolio Disposition", see Note 5) and exited from the medical office product segment. As of June 30, 2017 , we owned and operated a portfolio primarily consisting of industrial properties and provided real estate services to third-party owners. Substantially all of our Rental Operations (see Note 9) are conducted through the Partnership. We conduct our Service Operations (see Note 9) through Duke Realty Services, LLC, Duke Realty Services Limited Partnership and Duke Construction Limited Partnership ("DCLP"), which are consolidated entities that are 100% owned by a combination of the General Partner and the Partnership. DCLP is owned through a taxable REIT subsidiary. The consolidated financial statements include our accounts and the accounts of our majority-owned or controlled subsidiaries. |
New Accounting Pronouncement (N
New Accounting Pronouncement (Notes) | 6 Months Ended |
Jun. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements Business Combinations In January 2017, the FASB issued ASU 2017-01, Business Combinations: Clarifying the Definition of a Business ("ASU 2017-01"). ASU 2017-01 provides revised guidance to determine when an acquisition meets the definition of a business or should be accounted for as an asset acquisition, likely resulting in more acquisitions being accounted for as asset acquisitions as opposed to business combinations. Transaction costs are capitalized for asset acquisitions while they are expensed as incurred for business combinations. ASU 2017-01 requires that when substantially all of the fair value of an acquisition is concentrated in a single identifiable asset or a group of similar identifiable assets it does not meet the definition of a business. ASU 2017-01 also revises the definition of a business to include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create an output. ASU 2017-01 will be effective, on a prospective basis, for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted. We adopted ASU 2017-01 prospectively as of January 1, 2017 as permitted under the standard, which has not had a material impact to the consolidated financial statements. Restricted Cash In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows: Restricted Cash ("ASU 2016-18"). ASU 2016-18 requires entities to show the changes in the total of cash and restricted cash in the statement of cash flows. As a result, entities will no longer present transfers between cash and restricted cash in the statement of cash flows. ASU 2016-18 will be effective for us retrospectively for annual and interim reporting periods beginning after December 15, 2017 with early adoption permitted. We do not believe ASU 2016-18 will have a material impact on our consolidated financial statements. Statement of Cash Flows In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flow s ("ASU 2016-15"). ASU 2016-15 clarifies how entities should classify certain cash receipts and cash payments on the statement of cash flows and how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flows. ASU 2016-15 will be effective for us retrospectively for annual and interim reporting periods beginning after December 15, 2017 with early adoption permitted. We do not believe ASU 2016-15 will have a material impact on our consolidated financial statements. Stock Compensation In March 2016, the FASB issued ASU 2016-09, Stock Compensation: Improvements to Employee Share-Based Payment Accounting ( "ASU 2016-09" ), which simplifies certain aspects of accounting for share-based payment transactions, including income tax consequences, forfeitures and the classification of amounts paid to taxing authorities when shares are withheld to cover employee tax withholdings for certain stock based compensation plans in the statements of cash flows. ASU 2016-09 was effective for us as of January 1, 2017 and did not have a material impact on our consolidated financial statements. Leases In February 2016, the FASB issued ASU 2016-02, Leases ("ASU 2016-02"), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). ASU 2016-02 supersedes existing leasing standards. ASU 2016-02 requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. ASU 2016-02 also requires that lessors expense certain initial direct costs, which are capitalizable under existing leasing standards, as incurred. ASU 2016-02 also specifies that payments for certain lease-related services, which are often included in lease agreements, represent "non-lease" components that will become subject to the guidance in ASU 2014-09, Revenue from Contracts with Customers when ASU 2016-02 becomes effective. We are currently evaluating the materiality, and presentation and disclosure impacts, of this accounting change. ASU 2016-02 requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. ASU 2016-02 will impact the accounting and disclosure requirements for the ground leases, and other operating leases, where we are the lessee. ASU 2016-02 will be effective for us under a modified retrospective approach for annual and interim reporting periods beginning after December 15, 2018, with early adoption permitted. A set of practical expedients for implementation, which must be elected as a package and for all leases, may also be elected. These practical expedients include relief from re-assessing lease classification at the adoption date for expired or existing leases, although a right-of-use asset and lease liability would still be recorded for such leases. We are currently assessing the method of adoption and the impact that ASU 2016-02 will have on our consolidated financial statements but have tentatively concluded that we will apply the practical expedients. Revenue Recognition In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"). ASU 2014-09 is a comprehensive revenue recognition standard that will supersede nearly all existing GAAP revenue recognition guidance as well as impact the existing GAAP guidance governing the sale of non-financial assets. The standard’s core principle is that a company will recognize revenue when it satisfies performance obligations, by transferring promised goods or services to customers, in an amount that reflects the consideration to which the company expects to be entitled in exchange for fulfilling those performance obligations. In doing so, companies will need to exercise more judgment and make more estimates than under existing GAAP guidance. ASU 2014-09 also created guidance governing the sale of non-financial assets with customers and non-customers with the only difference in the treatment of these transactions being presentation in the statement of operations (revenue and expense is reported when the sale is to a customer and net gain or loss is reported when the sale is to a non-customer). Based on the nature of our business, we believe that our property sales represent transactions with non-customers. In February 2017, the FASB issued ASU 2017-05, Other Income: Gains and Losses from the Derecognition of Nonfinancial Assets (“ASU 2017-05”). ASU 2017-05 provides guidance on how entities recognize sales, including partial sales, of nonfinancial assets (and in-substance nonfinancial assets) to noncustomers. ASU 2017-05 requires the seller to recognize a full gain or loss in a partial sale of nonfinancial assets, to the extent control is not retained. Any noncontrolling interest retained by the seller would, accordingly, be measured at fair value. Both ASU 2014-09 and ASU 2017-05 will be effective for public entities for annual and interim reporting periods beginning after December 15, 2017 and early adoption is permitted in periods ending after December 15, 2016. ASU 2014-09 and ASU 2017-05 allow for either full or modified retrospective ("cumulative effect") adoption. Both standards must be adopted concurrently. We have tentatively concluded that we will adopt both ASU 2014-09 and ASU 2017-05 using the cumulative effect method. We have evaluated each of our revenue streams under ASU 2014-09 and determined that our revenues that will be impacted by this standard primarily include construction and development fees charged to third parties, fees for services performed for unconsolidated joint ventures and sales of real estate. We expect that the amount and timing of revenue recognition from these revenue streams referenced above will be generally consistent with our current measurement and pattern of recognition. In addition, the pattern of recognition for sales of real estate is not expected to change significantly. We have primarily disposed of property and land in all cash transactions with no contingencies and no future involvement in the operations, and therefore, do not expect ASU 2017-05 to significantly impact the recognition of property and land sales. |
Reclassifications
Reclassifications | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure Text Block [Abstract] | |
Reclassifications | Reclassifications Certain amounts in the accompanying consolidated financial statements for 2016 , including the change in presentation for the medical office properties determined to be discontinued operations (see Note 10) and the tax payments on stock-based compensation awards pursuant to ASU 2016-09, have been reclassified to conform to the 2017 consolidated financial statement presentation. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure Text Block [Abstract] | |
Consolidation Policy for VIEs | Variable Interest Entities Partnership Due to the fact that the Limited Partners do not have kick out rights, or substantive participating rights, the Partnership is a variable interest entity ("VIE"). Because the General Partner holds majority ownership and exercises control over every aspect of the Partnership's operations, the General Partner has been determined as the primary beneficiary and, therefore, consolidates the Partnership. The assets and liabilities of the General Partner and the Partnership are substantially the same, as the General Partner does not have any significant assets other than its investment in the Partnership. All of the Company's debt is an obligation of the Partnership. Unconsolidated Joint Ventures We have equity interests in unconsolidated joint ventures that primarily own and operate rental properties or hold land for development. We consolidate those joint ventures that are considered to be VIEs where we are the primary beneficiary. We analyze our investments in joint ventures to determine if the joint venture is considered a VIE and would require consolidation. We (i) evaluate the sufficiency of the total equity investment at risk, (ii) review the voting rights and decision-making authority of the equity investment holders as a group and whether there are limited partners (or similar owning entities) that lack substantive participating or kick out rights and (iii) establish whether or not activities within the venture are on behalf of an investor with disproportionately few voting rights in making this VIE determination. To the extent that we own interests in a VIE and we (i) are the sole entity that has the power to direct the activities of the VIE and (ii) have the obligation or rights to absorb the VIE's losses or receive its benefits, then we would be determined to be the primary beneficiary and would consolidate the VIE. To the extent we own interests in a VIE, then at each reporting period, we re-assess our conclusions as to which, if any, party within the VIE is considered the primary beneficiary. Consolidated joint ventures that are VIEs are not significant in any period presented in these consolidated financial statements. To the extent that our joint ventures do not qualify as VIEs, they are consolidated if we control them through majority ownership interests or if we are the managing entity (general partner or managing member) and our partner does not have substantive participating rights. Control is further demonstrated by our ability to unilaterally make significant operating decisions, refinance debt and sell the assets of the joint venture without the consent of the non-managing entity and the inability of the non-managing entity to remove us from our role as the managing entity. Consolidated joint ventures that are not VIEs are not significant in any period presented in these consolidated financial statements. There were no unconsolidated joint ventures, in which we have any recognized assets or liabilities or have retained any economic exposure to loss at June 30, 2017 that met the criteria to be considered VIEs. Our maximum loss exposure for guarantees of unconsolidated joint venture indebtedness, none of which relate to VIEs, totaled $66.7 million at June 30, 2017 . |
Acquisitions and Dispositions
Acquisitions and Dispositions | 6 Months Ended |
Jun. 30, 2017 | |
Real Estate [Abstract] | |
Acquisitions and Dispositions | Acquisitions and Dispositions Acquisitions and dispositions for the periods presented were completed in accordance with our strategy to reposition our investment concentration among the product types and markets in which we operate and to increase our overall investments in quality industrial projects. With the exception of certain properties that have been sold or classified as held for sale, the results of operations for all acquired properties have been included in continuing operations within our consolidated financial statements since their respective dates of acquisition. Transaction costs related to asset acquisitions are capitalized and transaction costs related to business combinations and dispositions are expensed. Acquisitions We acquired 11 properties during the six months ended June 30, 2017 . We determined that the 11 properties acquired during the six months ended June 30, 2017 did not meet the revised definition of a business as the result of adopting ASU 2017-01 and, accordingly, we accounted for them as asset acquisitions as opposed to business combinations. The following table summarizes amounts recognized for each major class of assets (in thousands) for these acquisitions during the six months ended June 30, 2017 : Real estate assets $ 228,516 Lease related intangible assets 11,178 Fair value of acquired net assets $ 239,694 The leases in the acquired properties had a weighted average remaining life at acquisition of approximately 6.9 years. Fair Value Measurements We determine the fair value of the individual components of real estate asset acquisitions primarily through calculating the "as-if vacant" value of a building, using an income approach, which relies significantly upon internally determined assumptions. We have determined that these estimates primarily rely upon level 3 inputs, which are unobservable inputs based on our own assumptions. The most significant assumptions used in calculating the "as-if vacant" value for acquisition activity during the six months ended June 30, 2017 are as follows: Low High Discount rate 5.81% 6.82% Exit capitalization rate 4.31% 5.32% Lease-up period (months) 9 12 Net rental rate per square foot - Industrial $3.50 $5.70 Capitalized acquisition costs were insignificant and the fair value of the 11 properties acquired during the six months ended June 30, 2017 was substantially the same as the cost of acquisition. Dispositions Dispositions of buildings (see Note 10 for the number of buildings sold as well as for their classification between continuing and discontinued operations) and undeveloped land generated net cash proceeds of $1.98 billion and $174.9 million during the six months ended June 30, 2017 and 2016 , respectively. Dispositions for the six months ended June 30, 2017 included 77 consolidated properties sold as part of the Medical Office Portfolio Disposition to a subsidiary of Healthcare Trust of America, Inc. ("HTA"), as well as certain other buyers, for a total sales price of $2.35 billion and a gain on sale of $1.14 billion . The Medical Office Portfolio Disposition was executed in connection with our strategy to focus solely on the industrial real estate product type. A portion of the sale price for the Medical Office Portfolio Disposition was financed through either unsecured notes, or first mortgage interests in a portion of the sold properties, that we provided to HTA and other buyers, totaling $400.0 million , which is reflected within notes receivable from property sales in the Consolidated Balance Sheets. These instruments mature at various points over the next three years and all bear interest rates at 4.0% . We concluded that the value, and the rate of interest, for these financial instruments would approximate fair value as computed using an income approach and that this determination of fair value was primarily based upon level 3 inputs. We have reviewed the creditworthiness of the borrowers and have concluded it is probable that we will collect all amounts due according to their contractual terms. In connection with the Medical Office Portfolio Disposition, during the six months ended June 30, 2017 we received $105.3 million for the sale of our interest in two unconsolidated joint ventures whose underlying assets were comprised of medical office properties, which is reflected within Capital Distributions from Unconsolidated Companies within the Consolidated Statements of Cash Flows. We recorded $47.5 million of income related to the sale of our interests in these unconsolidated joint ventures within equity in earnings in the Consolidated Statements of Operations and Comprehensive Income. In connection with the sale of our interest in one of these unconsolidated joint ventures, we also recorded promote income (additional incentive-based cash distributions from the joint venture, in excess of our ownership interest) of $20.0 million from the sale of our share interest, which is reflected as a separate line item in the Consolidated Statements of Operations and Comprehensive Income and reflected within net cash provided by operating activities within the Consolidated Statements of Cash Flows. In connection with the sale, we recorded income tax expense totaling $19.7 million including $11.6 million classified within discontinued operations and $8.0 million classified within continuing operations in the Consolidated Statements of Operations and Comprehensive Income. |
Indebtedness
Indebtedness | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Indebtedness | Indebtedness All debt is held directly or indirectly by the Partnership. The General Partner does not have any indebtedness, but does guarantee some of the unsecured debt of the Partnership. The following table summarizes the book value and changes in the fair value of our debt (in thousands): Book Value at 12/31/2016 Book Value at 6/30/2017 Fair Value at 12/31/2016 Payments/Payoffs Adjustments to Fair Value Fair Value at 6/30/2017 Fixed rate secured debt $ 381,894 $ 335,713 $ 415,231 $ (46,123 ) $ (9,180 ) $ 359,928 Variable rate secured debt 2,800 2,800 2,800 — — 2,800 Unsecured debt 2,498,835 1,961,982 2,568,034 (536,853 ) 12,339 2,043,520 Unsecured line of credit 48,000 — 48,000 (48,000 ) — — Total $ 2,931,529 $ 2,300,495 $ 3,034,065 $ (630,976 ) $ 3,159 $ 2,406,248 Less: Deferred financing costs 23,052 20,367 Total indebtedness as reported on the consolidated balance sheets $ 2,908,477 $ 2,280,128 Secured Debt Because our fixed rate secured debt is not actively traded in any marketplace, we utilized a discounted cash flow methodology to determine its fair value. Accordingly, we calculated fair value by applying an estimate of the current market rate to discount the debt's remaining contractual cash flows. Our estimate of a current market rate, which is the most significant input in the discounted cash flow calculation, is intended to replicate debt of similar maturity and loan-to-value relationship. The estimated rates ranged from 3.20% to 3.70% , depending on the attributes of the specific loans. The current market rates we utilized were internally estimated; therefore, we have concluded that our determination of fair value for our fixed rate secured debt was primarily based upon level 3 inputs. During the six months ended June 30, 2017 , we repaid three fixed rate secured loans, totaling $42.9 million , which had a weighted average stated interest rate of 5.88% . Unsecured Debt At June 30, 2017 , all of our unsecured debt bore interest at fixed rates and primarily consisted of unsecured notes that are publicly traded. We utilized broker estimates in estimating the fair value of our fixed rate unsecured debt. Our unsecured notes are thinly traded and, in certain cases, the broker estimates were not based upon comparable transactions. The broker estimates took into account any recent trades within the same series of our fixed rate unsecured debt, comparisons to recent trades of other series of our fixed rate unsecured debt, trades of fixed rate unsecured debt from companies with profiles similar to ours, as well as overall economic conditions. We reviewed these broker estimates for reasonableness and accuracy, considering whether the estimates were based upon market participant assumptions within the principal and most advantageous market and whether any other observable inputs would be more accurate indicators of fair value than the broker estimates. We concluded that the broker estimates were representative of fair value. We have determined that our estimation of the fair value of our fixed rate unsecured debt was primarily based upon level 3 inputs. The estimated trading values of our fixed rate unsecured debt, depending on the maturity and coupon rates, ranged from 98.00% to 128.00% of face value. The indentures (and related supplemental indentures) governing our outstanding series of unsecured notes also require us to comply with financial ratios and other covenants regarding our operations. We were in compliance with all such financial covenants at June 30, 2017 . In June 2017, we repaid our $250.0 million variable rate term loan, which had a scheduled maturity date of January 2019 and bore interest at LIBOR plus 1.00% , and recognized a loss of $523,000 from the write-off of unamortized deferred financing costs. We also repaid $285.6 million of senior unsecured notes that had a stated interest rate of 6.50% and an effective interest rate of 6.08% , which had a scheduled maturity in January 2018, and recognized a loss of $9.0 million including the repayment premium and the write-off of unamortized deferred financing costs. Unsecured Line of Credit Our unsecured line of credit at June 30, 2017 is described as follows (in thousands): Description Borrowing Capacity Maturity Date Outstanding Balance at June 30, 2017 Unsecured Line of Credit - Partnership $ 1,200,000 January 2019 $ — The Partnership's unsecured line of credit has an interest rate on borrowings of LIBOR plus 0.93% and a maturity date of January 2019 , which may be extended by a year at our option. Subject to certain conditions, the terms also include an option to increase the facility by up to an additional $400.0 million , for a total of up to $1.60 billion . This line of credit provides us with an option to obtain borrowings from financial institutions that participate in the line at rates that may be lower than the stated interest rate, subject to certain restrictions. This line of credit contains financial covenants that require us to meet certain financial ratios and defined levels of performance, including those related to fixed charge coverage, unsecured interest expense coverage and debt-to-asset value (with asset value being defined in the Partnership's unsecured line of credit agreement). At June 30, 2017 , we were in compliance with all financial covenants under this line of credit. To the extent that there are outstanding borrowings, we utilize a discounted cash flow methodology in order to estimate the fair value of our unsecured line of credit. To the extent that credit spreads have changed since the origination of the line of credit, the net present value of the difference between future contractual interest payments and future interest payments based on our estimate of a current market rate would represent the difference between the book value and the fair value. Our estimate of a current market rate is based upon the rate, considering current market conditions and our specific credit profile, at which we estimate we could obtain similar borrowings. As our credit spreads have not changed appreciably, we believe that the contractual interest rate and the current market rate on the line of credit are the same. To the extent there are outstanding borrowings, this current market rate is internally estimated and therefore would be primarily based upon a level 3 input. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions We provide property management, asset management, leasing, construction and other tenant-related services to unconsolidated companies in which we have equity interests. We recorded the corresponding fees based on contractual terms that approximate market rates for these types of services and have eliminated our ownership percentage of these fees in the consolidated financial statements. The following table summarizes the fees earned from these companies, prior to the elimination of our ownership percentage (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Management fees $ 718 $ 1,291 $ 1,529 $ 2,550 Leasing fees 80 1,053 514 1,432 Construction and development fees 1,062 2,239 1,685 5,359 |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | Net Income Per Common Share or Common Unit Basic net income per common share or Common Unit is computed by dividing net income attributable to common shareholders or common unitholders, less dividends or distributions on share-based awards expected to vest (referred to as "participating securities" and primarily composed of unvested restricted stock units), by the weighted average number of common shares or Common Units outstanding for the period. Diluted net income per common share is computed by dividing the sum of net income attributable to common shareholders and the noncontrolling interest in earnings allocable to Limited Partner Units (to the extent the Limited Partner Units are dilutive), less dividends or distributions on participating securities that are anti-dilutive, by the sum of the weighted average number of common shares outstanding and, to the extent they are dilutive, weighted average number of Limited Partner Units outstanding and any potential dilutive securities for the period. Diluted net income per Common Unit is computed by dividing the net income attributable to common unitholders, less dividends or distributions on participating securities that are anti-dilutive, by the sum of the weighted average number of Common Units outstanding and any potential dilutive securities for the period. The following table reconciles the components of basic and diluted net income per common share or Common Unit (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 General Partner Net income attributable to common shareholders $ 1,210,543 $ 109,067 $ 1,280,743 $ 152,374 Less: dividends on participating securities (540 ) (582 ) (1,083 ) (1,171 ) Basic net income attributable to common shareholders 1,210,003 108,485 1,279,660 151,203 Add back dividends on dilutive participating securities 540 582 1,083 569 Noncontrolling interest in earnings of common unitholders 11,240 1,101 11,892 1,539 Diluted net income attributable to common shareholders $ 1,221,783 $ 110,168 $ 1,292,635 $ 153,311 Weighted average number of common shares outstanding 355,647 347,464 355,466 346,564 Weighted average Limited Partner Units outstanding 3,305 3,504 3,310 3,501 Other potential dilutive shares 3,029 3,465 3,013 2,162 Weighted average number of common shares and potential dilutive securities 361,981 354,433 361,789 352,227 Partnership Net income attributable to common unitholders $ 1,221,783 $ 110,168 $ 1,292,635 $ 153,913 Less: distributions on participating securities (540 ) (582 ) (1,083 ) (1,171 ) Basic net income attributable to common unitholders $ 1,221,243 $ 109,586 $ 1,291,552 $ 152,742 Add back distributions on dilutive participating securities 540 582 1,083 569 Diluted net income attributable to common unitholders $ 1,221,783 $ 110,168 $ 1,292,635 $ 153,311 Weighted average number of Common Units outstanding 358,952 350,968 358,776 350,065 Other potential dilutive units 3,029 3,465 3,013 2,162 Weighted average number of Common Units and potential dilutive securities 361,981 354,433 361,789 352,227 The following table summarizes the data that is excluded from the computation of net income per common share or Common Unit as a result of being anti-dilutive (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 General Partner and Partnership Other potential dilutive shares or units: Anti-dilutive outstanding potential shares or units under fixed stock option and other stock-based compensation plans — 170 — 307 Anti-dilutive outstanding participating securities — — — 1,706 |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Reportable Segments During the three months ended June 30, 2017 , we substantially completed the Medical Office Portfolio Disposition, which resulted in all of our in-service medical office properties being classified within discontinued operations with the exception of a property that did not meet the criteria for classification as held for sale at June 30, 2017 (see Note 10). As a result of this transaction, our medical office properties are no longer presented as a separate reportable segment at June 30, 2017 , with substantially all current and prior period operating results being classified within discontinued operations. The remaining medical office property included in continuing operations no longer meets the quantitative thresholds for separate presentation, and is classified as part of our non-reportable Rental Operations. Properties that are not included in our reportable segments, because they do not by themselves meet the quantitative thresholds for separate presentation as a reportable segment, are generally referred to as non-reportable Rental Operations. Our non-reportable Rental Operations primarily include our remaining office properties and medical office property at June 30, 2017 . As of June 30, 2017 , after consideration of the Medical Office Portfolio Disposition, we had two reportable operating segments, the first consisting of the ownership and rental of industrial real estate investments. All of our industrial properties across the markets in which we operate are aggregated into one reportable segment as they have similar economic characteristics and we provide similar leasing arrangements and services to similar types of, and in many cases, the same tenants. The operations of our industrial properties, as well as our non-reportable Rental Operations, are collectively referred to as "Rental Operations." Our second reportable segment consists of various real estate services such as property management, asset management, maintenance, leasing, development, general contracting and construction management to third-party property owners and joint ventures, and is collectively referred to as "Service Operations." Our reportable segments are managed separately because each segment requires different operating strategies and management expertise. Revenues by Reportable Segment The following table shows the revenues for each of the reportable segments, as well as a reconciliation to consolidated revenues (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Revenues Rental Operations: Industrial $ 162,559 $ 140,219 $ 319,441 $ 283,199 Non-reportable Rental Operations 3,182 14,054 17,598 29,959 Service Operations 23,576 26,044 32,975 49,195 Total segment revenues 189,317 180,317 370,014 362,353 Other revenue 95 3,637 473 5,339 Consolidated revenue from continuing operations 189,412 183,954 370,487 367,692 Discontinued operations 35,165 42,736 81,404 84,181 Consolidated revenue $ 224,577 $ 226,690 $ 451,891 $ 451,873 Supplemental Performance Measure Property-level net operating income on a cash basis ("PNOI") is the non-GAAP supplemental performance measure that we use to evaluate the performance of, and to allocate resources among, the real estate investments in the reportable and operating segments that comprise our Rental Operations. PNOI for our Rental Operations segments is comprised of rental revenues from continuing operations less rental expenses and real estate taxes from continuing operations, along with certain other adjusting items (collectively referred to as "Rental Operations revenues and expenses excluded from PNOI," as shown in the following table). Additionally, we do not allocate interest expense, depreciation expense and certain other non-property specific revenues and expenses (collectively referred to as "Non-Segment Items," as shown in the following table) to our individual operating segments. We evaluate the performance of our Service Operations reportable segment using net income or loss, as allocated to that segment ("Earnings from Service Operations"). The following table shows a reconciliation of our segment-level measures of profitability to consolidated income from continuing operations before income taxes (in thousands and excluding discontinued operations): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 PNOI Industrial $ 120,346 $ 103,289 $ 235,535 $ 203,892 Non-reportable Rental Operations 1,750 2,528 4,236 5,186 PNOI, excluding all sold/held-for-sale properties 122,096 105,817 239,771 209,078 PNOI from sold/held-for-sale properties included in continuing operations 372 9,812 1,956 21,366 PNOI, continuing operations $ 122,468 $ 115,629 $ 241,727 $ 230,444 Earnings from Service Operations 1,202 3,816 2,977 6,047 Rental Operations revenues and expenses excluded from PNOI: Straight-line rental income and expense, net 3,628 1,323 5,205 2,920 Revenues related to lease buyouts 72 69 9,857 234 Amortization of lease concessions and above and below market rents (566 ) (695 ) (1,450 ) (1,612 ) Intercompany rents and other adjusting items (188 ) (412 ) (413 ) (603 ) Non-Segment Items: Equity in earnings of unconsolidated companies 51,933 3,534 56,682 25,394 Gain on dissolution of unconsolidated company — 30,697 — 30,697 Promote income 20,007 24,087 20,007 24,087 Interest expense (21,680 ) (29,511 ) (44,566 ) (59,644 ) Depreciation and amortization expense (67,013 ) (61,136 ) (129,036 ) (120,669 ) Gain on sale of properties 34,341 39,314 71,387 54,891 Impairment charges — (5,651 ) (859 ) (12,056 ) Interest and other income, net 2,260 567 2,792 3,090 General and administrative expenses (11,858 ) (11,584 ) (31,090 ) (29,682 ) Gain on land sales 1,279 707 2,784 837 Other operating expenses (718 ) (836 ) (1,457 ) (2,072 ) Loss on extinguishment of debt (9,561 ) (2,430 ) (9,536 ) (2,430 ) Acquisition-related activity — (72 ) — (75 ) Other non-segment revenues and expenses, net (986 ) 80 (1,569 ) (323 ) Income from continuing operations before income taxes $ 124,620 $ 107,496 $ 193,442 $ 149,475 The most comparable GAAP measure to PNOI is income from continuing operations before income taxes. PNOI excludes expenses that materially impact our overall results of operations and, therefore, should not be considered as a substitute for income from continuing operations before income taxes or any other measures derived in accordance with GAAP. Furthermore, PNOI may not be comparable to other similarly titled measures of other companies. Assets by Reportable Segment The assets for each of the reportable segments were as follows (in thousands): June 30, December 31, Assets Rental Operations: Industrial $ 5,303,570 $ 4,828,984 Non-reportable Rental Operations 307,095 1,501,737 Service Operations 124,848 127,154 Total segment assets 5,735,513 6,457,875 Non-segment assets 1,582,056 314,127 Consolidated assets $ 7,317,569 $ 6,772,002 |
Real Estate Assets, Discontinue
Real Estate Assets, Discontinued Operations and Assets Held for Sale | 6 Months Ended |
Jun. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations and Assets Held for Sale | Real Estate Assets, Discontinued Operations and Assets Held for Sale Real Estate Assets Real estate assets, excluding assets held for sale, consisted of the following (in thousands): June 30, 2017 December 31, 2016 Buildings and tenant improvements $3,975,603 $3,752,423 Land and improvements 1,524,433 1,392,382 Real estate assets $5,500,036 $5,144,805 Discontinued Operations All of the properties included in discontinued operations are medical office properties. Because of the size of the Medical Office Portfolio Disposition, and the fact that it represented our exit from the medical office product type, we determined that the disposition represented a strategic shift that would have a major effect on our operations and financial results. As such, the consolidated in-service properties in this portfolio met the criteria to be classified within discontinued operations. As the result of its classification within discontinued operations, the in-service assets and liabilities of this portfolio are required to be presented as held for sale for all prior periods presented in our Consolidated Balance Sheets. Operating results pertaining to the properties classified within discontinued operations were reclassified to discontinued operations for all prior periods presented in our Consolidated Statements of Operations and Comprehensive Income. The following table illustrates the number of sold or held-for-sale properties included in, or excluded from, discontinued operations in this report: Held-for-Sale at June 30, 2017 Sold Year-to-Date in 2017 Sold in 2016 Total Total properties included in discontinued operations 8 73 — 81 Properties excluded from discontinued operations 2 12 32 46 Total properties sold or classified as held-for-sale 10 85 32 127 Properties sold in 2017 but excluded from discontinued operations included four properties under development, which were disposed as part of the Medical Office Portfolio Disposition, as these properties did not meet the criteria to be included in discontinued operations. For the properties that were classified in discontinued operations, we allocated interest expense to discontinued operations and have included such interest expense in computing income from discontinued operations. Interest expense allocable to discontinued operations was based upon an allocable share of our consolidated unsecured interest expense, as none of the properties included in discontinued operations were encumbered by secured debt. The allocation of unsecured interest expense to discontinued operations was based upon the gross book value of the unencumbered real estate assets included in discontinued operations as it related to the total gross book value of our unencumbered real estate assets. The following table illustrates the operational results of the buildings reflected in discontinued operations (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Revenues $ 35,165 $ 42,736 $ 81,404 $ 84,181 Operating expenses (11,170 ) (13,760 ) (26,166 ) (27,137 ) Depreciation and amortization (6,315 ) (19,025 ) (25,849 ) (37,290 ) Operating income 17,680 9,951 29,389 19,754 Interest expense (6,585 ) (7,673 ) (14,204 ) (15,270 ) Income before gain on sales 11,095 2,278 15,185 4,484 Gain on sale of depreciable properties 1,109,091 252 1,109,091 166 Income from discontinued operations before income taxes 1,120,186 2,530 1,124,276 4,650 Income tax expense (11,613 ) — (11,613 ) — Income from discontinued operations $ 1,108,573 $ 2,530 $ 1,112,663 $ 4,650 Capital expenditures on a cash basis for the six months ended June 30, 2017 and 2016 were $20.6 million and $54.8 million , respectively, related to properties within discontinued operations. Allocation of Noncontrolling Interests - General Partner The following table illustrates the General Partner's share of the income attributable to common shareholders from continuing operations and discontinued operations, reduced by the allocation of income between continuing and discontinued operations to the noncontrolling interests (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Income from continuing operations attributable to common shareholders $ 118,194 $ 106,563 $ 184,362 $ 147,771 Income from discontinued operations attributable to common shareholders 1,092,349 2,504 1,096,381 4,603 Net income attributable to common shareholders $ 1,210,543 $ 109,067 $ 1,280,743 $ 152,374 Allocation of Noncontrolling Interests - Partnership Substantially all of the income from discontinued operations for all periods presented in the Partnership's Consolidated Statements of Operations and Comprehensive Income is attributable to the common unitholders. Assets Held for Sale At June 30, 2017 , ten in-service properties were classified as held for sale, eight of which were medical office properties that met the criteria to be classified within discontinued operations. Also at June 30, 2017 , 52 acres of undeveloped land were classified as held for sale and classified within continuing operations, including undeveloped land to be sold as part of the Medical Office Portfolio Disposition, which did not meet the criteria to be classified within discontinued operations. The following table illustrates aggregate balance sheet information for all held-for-sale properties (in thousands): Held-for-Sale Properties June 30, 2017 December 31, 2016 Held-for-Sale Properties Included in Continuing Operations Properties Included in Discontinued Operations Total Held-For-Sale Properties Held-for-Sale Properties Included in Continuing Operations Properties Included in Discontinued Operations Total Held-For-Sale Properties Land and improvements $ 10,522 $ 26,560 $ 37,082 $ 3,631 $ 118,882 $ 122,513 Buildings and tenant improvements 17,351 166,573 183,924 37,495 1,218,468 1,255,963 Undeveloped land 17,082 — 17,082 22,657 — 22,657 Accumulated depreciation (6,198 ) (37,577 ) (43,775 ) (18,581 ) (240,685 ) (259,266 ) Deferred leasing and other costs, net 862 6,882 7,744 3,091 83,522 86,613 Other assets 738 10,859 11,597 3,334 92,444 95,778 Total assets held-for-sale $ 40,357 $ 173,297 $ 213,654 $ 51,627 $ 1,272,631 $ 1,324,258 Accrued expenses $ 647 $ 2,475 $ 3,122 $ 1,363 $ 22,128 $ 23,491 Other liabilities 802 5,165 5,967 298 32,502 32,800 Total liabilities held-for-sale $ 1,449 $ 7,640 $ 9,089 $ 1,661 $ 54,630 $ 56,291 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Declaration of Dividends/Distributions The General Partner's board of directors declared the following dividends/distributions at its regularly scheduled board meeting held on July 26, 2017 : Class of stock/units Quarterly Amount per Share or Unit Record Date Payment Date Common - Quarterly $0.19 August 16, 2017 August 31, 2017 Redemption of Outstanding Debt In July 2017, we redeemed $128.7 million of 6.75% senior unsecured notes due March 2020 and incurred a loss of approximately $16.6 million including the redemption premium and the write-off of deferred financing costs. Disposition of Remaining Medical Office Properties In July 2017, we sold four of the remaining medical office properties as part of the Medical Office Portfolio Disposition for total sales price of $155.1 million . |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes amounts recognized for each major class of assets (in thousands) for these acquisitions during the six months ended June 30, 2017 : Real estate assets $ 228,516 Lease related intangible assets 11,178 Fair value of acquired net assets $ 239,694 |
Summary of Most Significant Assumptions Utilized in the Estimations [Table Text Block] | The most significant assumptions used in calculating the "as-if vacant" value for acquisition activity during the six months ended June 30, 2017 are as follows: Low High Discount rate 5.81% 6.82% Exit capitalization rate 4.31% 5.32% Lease-up period (months) 9 12 Net rental rate per square foot - Industrial $3.50 $5.70 |
Indebtedness (Tables)
Indebtedness (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Fair Value, Liabilities Measured on a Recurring Basis, Disclosure Only | The following table summarizes the book value and changes in the fair value of our debt (in thousands): Book Value at 12/31/2016 Book Value at 6/30/2017 Fair Value at 12/31/2016 Payments/Payoffs Adjustments to Fair Value Fair Value at 6/30/2017 Fixed rate secured debt $ 381,894 $ 335,713 $ 415,231 $ (46,123 ) $ (9,180 ) $ 359,928 Variable rate secured debt 2,800 2,800 2,800 — — 2,800 Unsecured debt 2,498,835 1,961,982 2,568,034 (536,853 ) 12,339 2,043,520 Unsecured line of credit 48,000 — 48,000 (48,000 ) — — Total $ 2,931,529 $ 2,300,495 $ 3,034,065 $ (630,976 ) $ 3,159 $ 2,406,248 Less: Deferred financing costs 23,052 20,367 Total indebtedness as reported on the consolidated balance sheets $ 2,908,477 $ 2,280,128 |
Unsecured Line of Credit | Our unsecured line of credit at June 30, 2017 is described as follows (in thousands): Description Borrowing Capacity Maturity Date Outstanding Balance at June 30, 2017 Unsecured Line of Credit - Partnership $ 1,200,000 January 2019 $ — |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Fees Earned from Related Parties | The following table summarizes the fees earned from these companies, prior to the elimination of our ownership percentage (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Management fees $ 718 $ 1,291 $ 1,529 $ 2,550 Leasing fees 80 1,053 514 1,432 Construction and development fees 1,062 2,239 1,685 5,359 |
Net Income (Loss) Per Common 22
Net Income (Loss) Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Reconciling the Components of Basic and Diluted Net Income (Loss) per Common Share | The following table reconciles the components of basic and diluted net income per common share or Common Unit (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 General Partner Net income attributable to common shareholders $ 1,210,543 $ 109,067 $ 1,280,743 $ 152,374 Less: dividends on participating securities (540 ) (582 ) (1,083 ) (1,171 ) Basic net income attributable to common shareholders 1,210,003 108,485 1,279,660 151,203 Add back dividends on dilutive participating securities 540 582 1,083 569 Noncontrolling interest in earnings of common unitholders 11,240 1,101 11,892 1,539 Diluted net income attributable to common shareholders $ 1,221,783 $ 110,168 $ 1,292,635 $ 153,311 Weighted average number of common shares outstanding 355,647 347,464 355,466 346,564 Weighted average Limited Partner Units outstanding 3,305 3,504 3,310 3,501 Other potential dilutive shares 3,029 3,465 3,013 2,162 Weighted average number of common shares and potential dilutive securities 361,981 354,433 361,789 352,227 Partnership Net income attributable to common unitholders $ 1,221,783 $ 110,168 $ 1,292,635 $ 153,913 Less: distributions on participating securities (540 ) (582 ) (1,083 ) (1,171 ) Basic net income attributable to common unitholders $ 1,221,243 $ 109,586 $ 1,291,552 $ 152,742 Add back distributions on dilutive participating securities 540 582 1,083 569 Diluted net income attributable to common unitholders $ 1,221,783 $ 110,168 $ 1,292,635 $ 153,311 Weighted average number of Common Units outstanding 358,952 350,968 358,776 350,065 Other potential dilutive units 3,029 3,465 3,013 2,162 Weighted average number of Common Units and potential dilutive securities 361,981 354,433 361,789 352,227 |
Computation of Anti-Dilutive Common Share | The following table summarizes the data that is excluded from the computation of net income per common share or Common Unit as a result of being anti-dilutive (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 General Partner and Partnership Other potential dilutive shares or units: Anti-dilutive outstanding potential shares or units under fixed stock option and other stock-based compensation plans — 170 — 307 Anti-dilutive outstanding participating securities — — — 1,706 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | The following table shows the revenues for each of the reportable segments, as well as a reconciliation to consolidated revenues (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Revenues Rental Operations: Industrial $ 162,559 $ 140,219 $ 319,441 $ 283,199 Non-reportable Rental Operations 3,182 14,054 17,598 29,959 Service Operations 23,576 26,044 32,975 49,195 Total segment revenues 189,317 180,317 370,014 362,353 Other revenue 95 3,637 473 5,339 Consolidated revenue from continuing operations 189,412 183,954 370,487 367,692 Discontinued operations 35,165 42,736 81,404 84,181 Consolidated revenue $ 224,577 $ 226,690 $ 451,891 $ 451,873 |
Summary of Net Operation Income | The following table shows a reconciliation of our segment-level measures of profitability to consolidated income from continuing operations before income taxes (in thousands and excluding discontinued operations): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 PNOI Industrial $ 120,346 $ 103,289 $ 235,535 $ 203,892 Non-reportable Rental Operations 1,750 2,528 4,236 5,186 PNOI, excluding all sold/held-for-sale properties 122,096 105,817 239,771 209,078 PNOI from sold/held-for-sale properties included in continuing operations 372 9,812 1,956 21,366 PNOI, continuing operations $ 122,468 $ 115,629 $ 241,727 $ 230,444 Earnings from Service Operations 1,202 3,816 2,977 6,047 Rental Operations revenues and expenses excluded from PNOI: Straight-line rental income and expense, net 3,628 1,323 5,205 2,920 Revenues related to lease buyouts 72 69 9,857 234 Amortization of lease concessions and above and below market rents (566 ) (695 ) (1,450 ) (1,612 ) Intercompany rents and other adjusting items (188 ) (412 ) (413 ) (603 ) Non-Segment Items: Equity in earnings of unconsolidated companies 51,933 3,534 56,682 25,394 Gain on dissolution of unconsolidated company — 30,697 — 30,697 Promote income 20,007 24,087 20,007 24,087 Interest expense (21,680 ) (29,511 ) (44,566 ) (59,644 ) Depreciation and amortization expense (67,013 ) (61,136 ) (129,036 ) (120,669 ) Gain on sale of properties 34,341 39,314 71,387 54,891 Impairment charges — (5,651 ) (859 ) (12,056 ) Interest and other income, net 2,260 567 2,792 3,090 General and administrative expenses (11,858 ) (11,584 ) (31,090 ) (29,682 ) Gain on land sales 1,279 707 2,784 837 Other operating expenses (718 ) (836 ) (1,457 ) (2,072 ) Loss on extinguishment of debt (9,561 ) (2,430 ) (9,536 ) (2,430 ) Acquisition-related activity — (72 ) — (75 ) Other non-segment revenues and expenses, net (986 ) 80 (1,569 ) (323 ) Income from continuing operations before income taxes $ 124,620 $ 107,496 $ 193,442 $ 149,475 |
Reportable Segments Consolidated Assets | The assets for each of the reportable segments were as follows (in thousands): June 30, December 31, Assets Rental Operations: Industrial $ 5,303,570 $ 4,828,984 Non-reportable Rental Operations 307,095 1,501,737 Service Operations 124,848 127,154 Total segment assets 5,735,513 6,457,875 Non-segment assets 1,582,056 314,127 Consolidated assets $ 7,317,569 $ 6,772,002 |
Real Estate Assets, Discontin24
Real Estate Assets, Discontinued Operations and Assets Held for Sale (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Real Estate Properties [Table Text Block] | Real estate assets, excluding assets held for sale, consisted of the following (in thousands): June 30, 2017 December 31, 2016 Buildings and tenant improvements $3,975,603 $3,752,423 Land and improvements 1,524,433 1,392,382 Real estate assets $5,500,036 $5,144,805 |
Table Illustration of Number of Properties in Discontinued Operations | The following table illustrates the number of sold or held-for-sale properties included in, or excluded from, discontinued operations in this report: Held-for-Sale at June 30, 2017 Sold Year-to-Date in 2017 Sold in 2016 Total Total properties included in discontinued operations 8 73 — 81 Properties excluded from discontinued operations 2 12 32 46 Total properties sold or classified as held-for-sale 10 85 32 127 |
Table Illustration of Discontinued Operations in Statement of Operations | The following table illustrates the operational results of the buildings reflected in discontinued operations (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Revenues $ 35,165 $ 42,736 $ 81,404 $ 84,181 Operating expenses (11,170 ) (13,760 ) (26,166 ) (27,137 ) Depreciation and amortization (6,315 ) (19,025 ) (25,849 ) (37,290 ) Operating income 17,680 9,951 29,389 19,754 Interest expense (6,585 ) (7,673 ) (14,204 ) (15,270 ) Income before gain on sales 11,095 2,278 15,185 4,484 Gain on sale of depreciable properties 1,109,091 252 1,109,091 166 Income from discontinued operations before income taxes 1,120,186 2,530 1,124,276 4,650 Income tax expense (11,613 ) — (11,613 ) — Income from discontinued operations $ 1,108,573 $ 2,530 $ 1,112,663 $ 4,650 |
Allocation of Common Shareholders' Income (Loss) Between Continuing and Discontinued Operations | The following table illustrates the General Partner's share of the income attributable to common shareholders from continuing operations and discontinued operations, reduced by the allocation of income between continuing and discontinued operations to the noncontrolling interests (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Income from continuing operations attributable to common shareholders $ 118,194 $ 106,563 $ 184,362 $ 147,771 Income from discontinued operations attributable to common shareholders 1,092,349 2,504 1,096,381 4,603 Net income attributable to common shareholders $ 1,210,543 $ 109,067 $ 1,280,743 $ 152,374 |
Schedule of Discontinued Operations, Properties Held-for-Sale, Aggregate Balance Sheet Information [Table Text Block] | he following table illustrates aggregate balance sheet information for all held-for-sale properties (in thousands): Held-for-Sale Properties June 30, 2017 December 31, 2016 Held-for-Sale Properties Included in Continuing Operations Properties Included in Discontinued Operations Total Held-For-Sale Properties Held-for-Sale Properties Included in Continuing Operations Properties Included in Discontinued Operations Total Held-For-Sale Properties Land and improvements $ 10,522 $ 26,560 $ 37,082 $ 3,631 $ 118,882 $ 122,513 Buildings and tenant improvements 17,351 166,573 183,924 37,495 1,218,468 1,255,963 Undeveloped land 17,082 — 17,082 22,657 — 22,657 Accumulated depreciation (6,198 ) (37,577 ) (43,775 ) (18,581 ) (240,685 ) (259,266 ) Deferred leasing and other costs, net 862 6,882 7,744 3,091 83,522 86,613 Other assets 738 10,859 11,597 3,334 92,444 95,778 Total assets held-for-sale $ 40,357 $ 173,297 $ 213,654 $ 51,627 $ 1,272,631 $ 1,324,258 Accrued expenses $ 647 $ 2,475 $ 3,122 $ 1,363 $ 22,128 $ 23,491 Other liabilities 802 5,165 5,967 298 32,502 32,800 Total liabilities held-for-sale $ 1,449 $ 7,640 $ 9,089 $ 1,661 $ 54,630 $ 56,291 |
Subsequent Events (Tables)
Subsequent Events (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Schedule of Dividends Declared | The General Partner's board of directors declared the following dividends/distributions at its regularly scheduled board meeting held on July 26, 2017 : Class of stock/units Quarterly Amount per Share or Unit Record Date Payment Date Common - Quarterly $0.19 August 16, 2017 August 31, 2017 |
General Basis of Presentation26
General Basis of Presentation (Details) | 6 Months Ended |
Jun. 30, 2017 | |
Common partnership interests of DRLP Owned | 99.10% |
Duke Realty Limited Partnership [Member] | |
Limited Liability Company or Limited Partnership, Members or Limited Partners, Ownership Interest | 0.90% |
Variable Interest Entities (Bal
Variable Interest Entities (Balances Related to Joint Ventures) (Details) $ in Millions | Jun. 30, 2017USD ($) |
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | |
Maximum Guarantee Exposure for Joint Venture Loans | $ 66.7 |
Acquisitions and Dispositions28
Acquisitions and Dispositions (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2017buildings | |
Property, Plant and Equipment [Line Items] | |
Number Of Real Estate Properties Acquired | 11 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years 11 months |
Acquisitions and Dispositions29
Acquisitions and Dispositions (Summary of Allocation of Fair Value of Amounts Recognized) (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Property, Plant and Equipment [Line Items] | |
Recognized Identifiable Assets Acquired and Liabilities Assumed, Buildings | $ 228,516 |
Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 11,178 |
Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | $ 239,694 |
Acquisitions and Dispositions30
Acquisitions and Dispositions (Summary of Significant Assumptions Utilized in Estimates) (Details) | 6 Months Ended |
Jun. 30, 2017$ / sqftmonths | |
Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Fair Value Inputs, Discount Rate | 5.81% |
Fair Value Inputs, Cap Rate | 4.31% |
Fair Value Measurement With Unobservable Inputs Lease up Period in Months | months | 9 |
Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Fair Value Inputs, Discount Rate | 6.82% |
Fair Value Inputs, Cap Rate | 5.32% |
Fair Value Measurement With Unobservable Inputs Lease up Period in Months | months | 12 |
Industrial [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Fair Value Measurement With Unobservable Inputs Rental Rate Per Square Foot | $ / sqft | 3.50 |
Industrial [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Fair Value Measurement With Unobservable Inputs Rental Rate Per Square Foot | $ / sqft | 5.70 |
Acquisitions and Dispositions D
Acquisitions and Dispositions Dispositions (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017USD ($)entities | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)buildingsentities | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Dispositions Disclosures [Line Items] | |||||
Number of Unconsolidated Joint Ventures in which Equity Interests Held | entities | 1 | 1 | |||
Equity in earnings of unconsolidated companies | $ 51,933 | $ 3,534 | $ 56,682 | $ 25,394 | |
Proceeds from Sale of Real Estate Held-for-investment | $ 1,977,127 | 174,882 | |||
Total Properties Sold or Classified as Held for Sale | buildings | 127 | ||||
Promote income | 20,007 | 24,087 | $ 20,007 | 24,087 | |
Income Tax Expense (Benefit), Continuing Operations, Discontinued Operations | 19,700 | ||||
Income Tax Expense (Benefit) | 5,426 | (157) | 7,557 | 186 | |
Discontinued Operation, Tax Effect of Discontinued Operation | 11,613 | $ 0 | 11,613 | 0 | |
Financing Receivable, Net | $ 423,946 | 423,946 | $ 25,460 | ||
Capital distributions from unconsolidated companies | 111,557 | $ 36,328 | |||
Continuing Operations [Member] | |||||
Dispositions Disclosures [Line Items] | |||||
Income Tax Expense (Benefit) | $ (8,000) | ||||
Medical Office Portfolio Sale [Member] | |||||
Dispositions Disclosures [Line Items] | |||||
Number of Unconsolidated Joint Ventures in which Equity Interests Held | entities | 2 | 2 | |||
Equity in earnings of unconsolidated companies | $ 47,500 | ||||
Proceeds from Sale of Real Estate Held-for-investment | $ 2,350,000 | ||||
Total Properties Sold or Classified as Held for Sale | buildings | 77 | ||||
Gains (Losses) on Sales of Investment Real Estate | $ 1,140,000 | ||||
Financing Receivable, Net | $ 400,000 | $ 400,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | 4.00% | |||
Capital distributions from unconsolidated companies | $ 105,300 |
Indebtedness (Summary of Book V
Indebtedness (Summary of Book Value and Changes in Fair Value of Debt) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Book value | $ 2,280,128 | $ 2,908,477 |
Fair value | 2,406,248 | 3,034,065 |
Payments/Payoffs | (630,976) | |
Adjustments to fair value | 3,159 | |
Long-term Debt, Gross | 2,300,495 | 2,931,529 |
Debt Issuance Costs, Net | 20,367 | 23,052 |
Fixed Rate Secured Debt [Member] | ||
Book value | 335,713 | 381,894 |
Fair value | 359,928 | 415,231 |
Payments/Payoffs | (46,123) | |
Adjustments to fair value | (9,180) | |
Variable Rate Secured Debt [Member] | ||
Book value | 2,800 | 2,800 |
Fair value | 2,800 | 2,800 |
Payments/Payoffs | 0 | |
Adjustments to fair value | 0 | |
Unsecured Debt [Member] | ||
Book value | 1,961,982 | 2,498,835 |
Fair value | 2,043,520 | 2,568,034 |
Payments/Payoffs | (536,853) | |
Adjustments to fair value | 12,339 | |
Unsecured Line of Credit DRLP [Member] | ||
Book value | 0 | 48,000 |
Fair value | 0 | $ 48,000 |
Payments/Payoffs | (48,000) | |
Adjustments to fair value | $ 0 |
Indebtedness Secured Debt (Deta
Indebtedness Secured Debt (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017USD ($)loans | Jun. 30, 2016USD ($) | |
Debt Instrument [Line Items] | ||
Repayments of Secured Debt | $ 46,123 | $ 348,743 |
Fixed Rate Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Repayments of Secured Debt | $ 42,900 | |
number of secured loans repaid | loans | 3 | |
Repaid Debt, Weighted Average Interest Rate | 5.88% | |
Minimum [Member] | Fixed Rate Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Effective Percentage | 3.20% | |
Maximum [Member] | Fixed Rate Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Effective Percentage | 3.70% |
Indebtedness Unsecured Debt (De
Indebtedness Unsecured Debt (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||||
Loss on debt extinguishment | $ (9,561,000) | $ (2,430,000) | $ (9,536,000) | $ (2,430,000) | |
Repayments of Unsecured Debt | 545,924,000 | $ 75,668,000 | |||
Long-term Debt | 2,280,128,000 | 2,280,128,000 | $ 2,908,477,000 | ||
Variable Rate UnSecured Debt [Member] [Member] | |||||
Debt Instrument [Line Items] | |||||
Loss on debt extinguishment | 523,000 | ||||
Long-term Debt | $ 250,000,000 | $ 250,000,000 | |||
Fixed Rate Unsecured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Estimated Trading Values, Percent of Face Value, Minimum | 98.00% | ||||
Debt Instrument, Estimated Trading Values, Percent of Face Value, Maximum | 128.00% | ||||
Debt Instrument, Covenant Compliance | We were in compliance with all such financial covenants at | ||||
Unsecured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Loss on debt extinguishment | $ 9,000,000 | ||||
Repayments of Unsecured Debt | $ 285,600,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | 6.50% | |||
Long-term Debt | $ 1,961,982,000 | $ 1,961,982,000 | $ 2,498,835,000 | ||
Debt Instrument, Interest Rate, Effective Percentage | 6.08% | 6.08% | |||
London Interbank Offered Rate (LIBOR) [Member] | Variable Rate UnSecured Debt [Member] [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% |
Indebtedness (Unsecured Line of
Indebtedness (Unsecured Line of Credit) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Line of credit balance | $ 0 | $ 48,000 |
London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument, Description of Variable Rate Basis | LIBOR | |
Unsecured Line of Credit DRLP [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,600,000 | |
Line of Credit Facility, Covenant Compliance | we were in compliance with all financial covenants under this line of credit. | |
Maximum Capacity | $ 1,200,000 | |
Maturity date | Jan. 1, 2019 | |
Line of Credit Facility Option to Increase Borrowing Limit | $ 400,000 | |
Line of credit balance | $ 0 | |
Unsecured Line of Credit DRLP [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.925% | |
Variable Rate UnSecured Debt [Member] [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.00% |
Related Party Transactions (Sch
Related Party Transactions (Schedule of Fees Earned from Related Parties) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Management Fees [Member] | ||||
Revenue from related party transactions | $ 718 | $ 1,291 | $ 1,529 | $ 2,550 |
Leasing Fees [Member] | ||||
Revenue from related party transactions | 80 | 1,053 | 514 | 1,432 |
Construction and Development Fees [Member] | ||||
Revenue from related party transactions | $ 1,062 | $ 2,239 | $ 1,685 | $ 5,359 |
Net Income (Loss) Per Common 37
Net Income (Loss) Per Common Share Reconciling the Components of Basic and Diluted Net Income (Loss) per Common Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net income attributable to common shareholders | $ 1,210,543 | $ 109,067 | $ 1,280,743 | $ 152,374 |
Less: dividends on participating securities | (540) | (582) | (1,083) | (1,171) |
Basic net income attributable to common shareholders | 1,210,003 | 108,485 | 1,279,660 | 151,203 |
Participating Securities, Distributed and Undistributed Earnings (Loss), Diluted | 540 | 582 | 1,083 | 569 |
Noncontrolling Interest in Net Income (Loss) Operating Partnerships, Redeemable | 11,240 | 1,101 | 11,892 | 1,539 |
Diluted net income attributable to common shareholders | $ 1,221,783 | $ 110,168 | $ 1,292,635 | $ 153,311 |
Weighted average number of common shares/units outstanding, Basic | 355,647 | 347,464 | 355,466 | 346,564 |
Weighted Average Limited Partnership Units Outstanding, Basic | 3,305 | 3,504 | 3,310 | 3,501 |
Other potential dilutive shares/units | 3,029 | 3,465 | 3,013 | 2,162 |
Weighted average number of common shares/units and potential dilutive securities | 361,981 | 354,433 | 361,789 | 352,227 |
Duke Realty Limited Partnership [Member] | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net income attributable to common shareholders | $ 1,221,783 | $ 110,168 | $ 1,292,635 | $ 153,913 |
Less: dividends on participating securities | (540) | (582) | (1,083) | (1,171) |
Basic net income attributable to common unitholders | 1,221,243 | 109,586 | 1,291,552 | 152,742 |
Participating Securities, Distributed and Undistributed Earnings (Loss), Diluted | 540 | 582 | 1,083 | 569 |
Diluted Net Income Loss Attributable To Common Unitholders | $ 1,221,783 | $ 110,168 | $ 1,292,635 | $ 153,311 |
Weighted average number of common shares/units outstanding, Basic | 358,952 | 350,968 | 358,776 | 350,065 |
Other potential dilutive shares/units | 3,029 | 3,465 | 3,013 | 2,162 |
Weighted average number of common shares/units and potential dilutive securities | 361,981 | 354,433 | 361,789 | 352,227 |
Net Income (Loss) Per Common 38
Net Income (Loss) Per Common Share (Computation of Anti-Dilutive Common Shares) (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Stock Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities | 0 | 170 | 0 | 307 |
Participating Securities [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities | 0 | 0 | 0 | 1,706 |
Segment Reporting Summary of Re
Segment Reporting Summary of Revenues (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Number of Reportable Segments | 2 | |||
Rental and related revenue | $ 165,836 | $ 157,910 | $ 337,512 | $ 318,497 |
General contractor and service fee revenue | 23,576 | 26,044 | 32,975 | 49,195 |
Revenues | 189,412 | 183,954 | 370,487 | 367,692 |
Disposal Group, Including Discontinued Operation, Revenue | 35,165 | 42,736 | 81,404 | 84,181 |
Total Revenues Including Revenues Related To Discontinued Operations | 224,577 | 226,690 | 451,891 | 451,873 |
Operating Segments [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 189,317 | 180,317 | 370,014 | 362,353 |
Operating Segments [Member] | Industrial [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Rental and related revenue | 162,559 | 140,219 | 319,441 | 283,199 |
Operating Segments [Member] | All Other Segments [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Rental and related revenue | 3,182 | 14,054 | 17,598 | 29,959 |
Operating Segments [Member] | Service Operations [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
General contractor and service fee revenue | 23,576 | 26,044 | 32,975 | 49,195 |
Corporate, Non-Segment [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Rental and related revenue | 95 | 3,637 | 473 | 5,339 |
Disposal Group, Including Discontinued Operation, Revenue | $ 35,165 | $ 42,736 | $ 81,404 | $ 84,181 |
Segment Reporting (Summary of N
Segment Reporting (Summary of Net Operating Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Straight line rental income and expenses, net | $ 7,722 | $ 5,768 | ||
Income from Equity Method Investments | $ 51,933 | $ 3,534 | 56,682 | 25,394 |
Gain on dissolution of unconsolidated company | 0 | 30,697 | 0 | 30,697 |
Promote income | 20,007 | 24,087 | 20,007 | 24,087 |
Interest expense | (21,680) | (29,511) | (44,566) | (59,644) |
Depreciation and amortization on continuing operations | (67,013) | (61,136) | (129,036) | (120,669) |
Gain on sale of properties | 34,341 | 39,314 | 71,387 | 54,891 |
Impairment Charges | 0 | (5,651) | (859) | (12,056) |
Interest and other income, net | 2,260 | 567 | 2,792 | 3,090 |
General and administrative expenses | (11,858) | (11,584) | (31,090) | (29,682) |
Gain on land sales | 1,279 | 707 | 2,784 | 837 |
Other operating expenses | (718) | (836) | (1,457) | (2,072) |
Gain on Extinguishment of Debt | (9,561) | (2,430) | (9,536) | (2,430) |
Acquisition-related activity | 0 | (72) | 0 | (75) |
Income from continuing operations before income taxes | 124,620 | 107,496 | 193,442 | 149,475 |
Operating Segments [Member] | ||||
Property Level Net Operating Income – Cash Basis | 122,096 | 105,817 | 239,771 | 209,078 |
Property Level Net Income, Cash Basis, Continuing Operations | 122,468 | 115,629 | 241,727 | 230,444 |
Operating Segments [Member] | Industrial [Member] | ||||
Property Level Net Operating Income – Cash Basis | 120,346 | 103,289 | 235,535 | 203,892 |
Operating Segments [Member] | All Other Segments [Member] | ||||
Property Level Net Operating Income – Cash Basis | 1,750 | 2,528 | 4,236 | 5,186 |
Operating Segments [Member] | Service Operations [Member] | ||||
Service Operations Net Income (loss) | 1,202 | 3,816 | 2,977 | 6,047 |
Segment Reconciling Items [Member] | ||||
Sold Properties Included in Continuing Operations Net Operating Income | 372 | 9,812 | 1,956 | 21,366 |
Straight line rental income and expenses, net | 3,628 | 1,323 | 5,205 | 2,920 |
Revenues Related to Lease Buyouts | 72 | 69 | 9,857 | 234 |
Amortization of lease incentives and market rents | (566) | (695) | (1,450) | (1,612) |
Intercompany rents and other adjusting items | (188) | (412) | (413) | (603) |
Corporate, Non-Segment [Member] | ||||
Income from Equity Method Investments | 51,933 | 3,534 | 56,682 | 25,394 |
Gain on dissolution of unconsolidated company | 0 | 30,697 | 0 | 30,697 |
Promote income | 20,007 | 24,087 | 20,007 | 24,087 |
Interest expense | (21,680) | (29,511) | (44,566) | (59,644) |
Depreciation and amortization on continuing operations | (67,013) | (61,136) | (129,036) | (120,669) |
Gain on sale of properties | 34,341 | 39,314 | 71,387 | 54,891 |
Impairment Charges | 0 | (5,651) | (859) | (12,056) |
Interest and other income, net | 2,260 | 567 | 2,792 | 3,090 |
General and administrative expenses | (11,858) | (11,584) | (31,090) | (29,682) |
Gain on land sales | 1,279 | 707 | 2,784 | 837 |
Other operating expenses | (718) | (836) | (1,457) | (2,072) |
Gain on Extinguishment of Debt | (9,561) | (2,430) | (9,536) | (2,430) |
Acquisition-related activity | 0 | (72) | 0 | (75) |
Other non-segment income | $ (986) | $ 80 | $ (1,569) | $ (323) |
Segment Reporting (Reportable S
Segment Reporting (Reportable Segments Consolidated Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Total Assets | $ 7,317,569 | $ 6,772,002 |
Corporate, Non-Segment [Member] | ||
Total Assets | 1,582,056 | 314,127 |
Operating Segments [Member] | ||
Total Assets | 5,735,513 | 6,457,875 |
Operating Segments [Member] | Industrial [Member] | ||
Total Assets | 5,303,570 | 4,828,984 |
Operating Segments [Member] | All Other Segments [Member] | ||
Total Assets | 307,095 | 1,501,737 |
Operating Segments [Member] | Service Operations [Member] | ||
Total Assets | $ 124,848 | $ 127,154 |
Real Estate Assets, Discontin42
Real Estate Assets, Discontinued Operations and Assets Held for Sale Real Estate Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Real Estate Assets [Abstract] | ||
Investment Building and Building Improvements | $ 3,975,603 | $ 3,752,423 |
Land and Land Improvements | 1,524,433 | 1,392,382 |
Real Estate Assets | $ 5,500,036 | $ 5,144,805 |
Real Estate Assets, Discontin43
Real Estate Assets, Discontinued Operations and Assets Held for Sale (Table Illustration of Number of Properties in Discontinued Operations) (Details) - buildings | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Number of properties held for sale in discontinued operations | 8 | |
Number of properties sold in discontinued operations | 73 | 0 |
Total number of properties in discontinued operations | 81 | |
Continuing Operations, Number of In-service Properties Held for Sale | 2 | |
Continuing Operations, Number of Real Estate Properties Sold | 12 | 32 |
Continuing Operations, Number of Real Estate Properties Sold or Classified as Held for Sale | 46 | |
Number of Real Estate Properties Held for Sale | 10 | |
Number of Real Estate Properties Sold | 85 | 32 |
Total Properties Sold or Classified as Held for Sale | 127 | |
Medical Office Portfolio Sale [Member] | ||
Continuing Operations, Number of Real Estate Properties Sold | 4 | |
Total Properties Sold or Classified as Held for Sale | 77 |
Real Estate Assets, Discontin44
Real Estate Assets, Discontinued Operations and Assets Held for Sale (Table Illustration of Discontinued Operations in Income Statement) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Discontinued Operations | ||||
Payments For Second Generation Tenant Improvements Leasing Costs And Building Improvements | $ 20,112 | $ 30,237 | ||
Revenues | $ 35,165 | $ 42,736 | 81,404 | 84,181 |
Operating Expenses | (11,170) | (13,760) | (26,166) | (27,137) |
Depreciation and Amortization, Discontinued Operations | (6,315) | (19,025) | (25,849) | (37,290) |
Operating Income (Loss) | 17,680 | 9,951 | 29,389 | 19,754 |
Disposal Group, Including Discontinued Operation, Interest Expense | (6,585) | (7,673) | (14,204) | (15,270) |
Income before gain on sales | 11,095 | 2,278 | 15,185 | 4,484 |
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | 1,109,091 | 252 | 1,109,091 | 166 |
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | 1,120,186 | 2,530 | 1,124,276 | 4,650 |
Discontinued Operation, Tax Effect of Discontinued Operation | (11,613) | 0 | (11,613) | 0 |
Income from discontinued operations | $ 1,108,573 | $ 2,530 | 1,112,663 | 4,650 |
Discontinued Operations [Member] | ||||
Discontinued Operations | ||||
Payments For Second Generation Tenant Improvements Leasing Costs And Building Improvements | $ 20,600 | $ 54,800 |
Real Estate Assets, Discontin45
Real Estate Assets, Discontinued Operations and Assets Held for Sale (Allocation of Shareholders' Income (Loss) Between Continuing and Discontinued Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Discontinued Operations | ||||
Income (loss) from continuing operations attributable to common shareholders | $ 118,194 | $ 106,563 | $ 184,362 | $ 147,771 |
Income (loss) from discontinued operations attributable to common shareholders | 1,092,349 | 2,504 | 1,096,381 | 4,603 |
Net income attributable to common shareholders | $ 1,210,543 | $ 109,067 | $ 1,280,743 | $ 152,374 |
Real Estate Assets, Discontin46
Real Estate Assets, Discontinued Operations and Assets Held for Sale (Aggregate Balance Sheet of Properties Held for Sale Included in Discontinued Operations) (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017USD ($)abuildings | Dec. 31, 2016USD ($) | |
Held for Sale Assets in Continuing and Discontinued Operations | ||
Number of Real Estate Properties Held for Sale | buildings | 10 | |
Discontinued Operation, Number of Real Estate Properties Held for Sale | buildings | 8 | |
Area of Land | a | 52 | |
Land and Land Improvements Held-for-Sale | $ 37,082 | $ 122,513 |
Buildings and Tenant Improvements Held-for-Sale | 183,924 | 1,255,963 |
Inventory, Land Held-for-sale | 17,082 | 22,657 |
Accumulated Depreciation of Assets Held-for-Sale | (43,775) | (259,266) |
Lease Related Assets, Held for Sale | 7,744 | 86,613 |
Other assets | 11,597 | 95,778 |
Total assets held-for-sale | 213,654 | 1,324,258 |
Accrued expenses | 3,122 | 23,491 |
Other liabilities | 5,967 | 32,800 |
Total liabilities held-for-sale | 9,089 | 56,291 |
Continuing Operations [Member] | ||
Held for Sale Assets in Continuing and Discontinued Operations | ||
Land and Land Improvements Held-for-Sale | 10,522 | 3,631 |
Buildings and Tenant Improvements Held-for-Sale | 17,351 | 37,495 |
Inventory, Land Held-for-sale | 17,082 | 22,657 |
Accumulated Depreciation of Assets Held-for-Sale | (6,198) | (18,581) |
Lease Related Assets, Held for Sale | 862 | 3,091 |
Other assets | 738 | 3,334 |
Total assets held-for-sale | 40,357 | 51,627 |
Accrued expenses | 647 | 1,363 |
Other liabilities | 802 | 298 |
Total liabilities held-for-sale | 1,449 | 1,661 |
Discontinued Operations [Member] | ||
Held for Sale Assets in Continuing and Discontinued Operations | ||
Land and Land Improvements Held-for-Sale | 26,560 | 118,882 |
Buildings and Tenant Improvements Held-for-Sale | 166,573 | 1,218,468 |
Inventory, Land Held-for-sale | 0 | 0 |
Accumulated Depreciation of Assets Held-for-Sale | (37,577) | (240,685) |
Lease Related Assets, Held for Sale | 6,882 | 83,522 |
Other assets | 10,859 | 92,444 |
Total assets held-for-sale | 173,297 | 1,272,631 |
Accrued expenses | 2,475 | 22,128 |
Other liabilities | 5,165 | 32,502 |
Total liabilities held-for-sale | $ 7,640 | $ 54,630 |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Sep. 30, 2017USD ($)buildings$ / shares | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)buildings | Jun. 30, 2016USD ($) | Dec. 31, 2016buildings | |
Subsequent Event [Line Items] | ||||||
Repayments of Unsecured Debt | $ 545,924 | $ 75,668 | ||||
Loss on debt extinguishment | $ (9,561) | $ (2,430) | $ (9,536) | (2,430) | ||
Discontinued Operation, Number of Real Estate Properties Sold | buildings | 73 | 0 | ||||
Proceeds from land and depreciated property sales, net | $ 1,977,127 | $ 174,882 | ||||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Repayments of Unsecured Debt | $ 128,700 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | |||||
Loss on debt extinguishment | $ 16,600 | |||||
Discontinued Operation, Number of Real Estate Properties Sold | buildings | 4 | |||||
Proceeds from land and depreciated property sales, net | $ 155,100 | |||||
Subsequent Event [Member] | Common Stock [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Common stock dividends declared per share | $ / shares | $ 0.19 | |||||
Record date | Aug. 16, 2017 | |||||
Dividends Payable, Date to be Paid | Aug. 31, 2017 |