Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 5-May-14 | |
Document and Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Entity Registrant Name | 'WASHINGTON REAL ESTATE INVESTMENT TRUST | ' |
Entity Central Index Key | '0000104894 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 66,630,035 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Land | $472,056 | $426,575 |
Income producing property | 1,784,850 | 1,675,652 |
Real estate investment property, at cost | 2,256,906 | 2,102,227 |
Accumulated depreciation and amortization | -581,644 | -565,342 |
Net income producing property | 1,675,262 | 1,536,885 |
Properties under development or held for future development | 68,963 | 61,315 |
Total real estate held for investment, net | 1,744,225 | 1,598,200 |
Investment in real estate sold or held for sale, net | 0 | 79,901 |
Cash and cash equivalents | 62,080 | 130,343 |
Restricted cash | 107,039 | 9,189 |
Rents and other receivables, net of allowance for doubtful accounts of $5,719 and $6,783, respectively | 52,736 | 48,756 |
Prepaid expenses and other assets | 109,092 | 105,004 |
Other assets related to properties sold or held for sale | 0 | 4,100 |
Total assets | 2,075,172 | 1,975,493 |
Liabilities | ' | ' |
Notes payable | 746,830 | 846,703 |
Mortgage notes payable | 404,359 | 294,671 |
Lines of credit | 0 | 0 |
Accounts payable and other liabilities | 56,804 | 51,742 |
Advance rents | 14,688 | 13,529 |
Tenant security deposits | 8,402 | 7,869 |
Liabilities related to properties sold or held for sale | 0 | 1,533 |
Total liabilities | 1,231,083 | 1,216,047 |
Shareholders’ equity | ' | ' |
Preferred shares; $0.01 par value; 10,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Shares of beneficial interest; $0.01 par value; 100,000 shares authorized: 66,630 and 66,531 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively | 666 | 665 |
Additional paid in capital | 1,151,353 | 1,151,174 |
Distributions in excess of net income | -312,417 | -396,880 |
Total shareholders’ equity | 839,602 | 754,959 |
Noncontrolling interests in subsidiaries | 4,487 | 4,487 |
Total equity | 844,089 | 759,446 |
Total liabilities and equity | $2,075,172 | $1,975,493 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Rents and other receivables, allowance for doubtful accounts | $5,917 | $6,783 |
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $0.01 | $0.01 |
Preferred Stock, Shares Authorized (in shares) | 10,000 | 10,000 |
Preferred Stock, Shares Issued (in shares) | 0 | 0 |
Preferred Stock, Shares Outstanding (in shares) | 0 | 0 |
Shares of beneficial interest, par value (in dollars per share) | $0.01 | $0.01 |
Shares of beneficial interest, shares authorized (in shares) | 100,000 | 100,000 |
Shares of beneficial interest, shares issued (in shares) | 66,630 | 66,531 |
Shares of beneficial interest, shares outstanding (in shares) | 66,630 | 66,531 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenue | ' | ' |
Real estate rental revenue | $68,611 | $64,560 |
Expenses | ' | ' |
Real estate expenses | 26,342 | 22,554 |
Depreciation and amortization | 22,753 | 21,123 |
Acquisition Costs | 3,045 | 213 |
General and administrative | 4,429 | 3,862 |
Total expenses | 56,569 | 47,752 |
Real estate operating income | 12,042 | 16,808 |
Other income (expense) | ' | ' |
Interest expense | -14,530 | -16,190 |
Other income | 223 | 239 |
Total other income (expense) | -14,307 | -15,951 |
(Loss) income from continuing operations | -2,265 | 857 |
Discontinued operations: | ' | ' |
Income from operations of properties sold or held for sale | 546 | 3,283 |
Gain on sale of real estate | 106,273 | 3,195 |
Net income | 104,554 | 7,335 |
Less: Net income attributable to noncontrolling interests in subsidiaries | $0 | $0 |
Basic net income per share: | ' | ' |
Continuing operations (in dollars per share) | ($0.04) | $0.01 |
Discontinued operations (in dollars per share) | $1.60 | $0.10 |
Net income per share (in dollars per share) | $1.56 | $0.11 |
Diluted net income per share: | ' | ' |
Continuing operations (in dollars per share) | ($0.04) | $0.01 |
Discontinued operations (in dollars per share) | $1.60 | $0.10 |
Net income per share (in dollars per share) | $1.56 | $0.11 |
Weighted average shares outstanding - basic (in shares) | 66,701 | 66,393 |
Weighted average shares outstanding - diluted (in shares) | 66,701 | 66,519 |
Dividends declared per share (in dollars per share) | $0.30 | $0.30 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Shares of Beneficial Interest at Par Value [Member] | Additional Paid in Capital [Member] | Distributions in Excess of Net Income Attributable to the Controlling Interests [Member] | Total Shareholders' Equity [Member] | Noncontrolling Interests in Subsidiaries [Member] |
In Thousands, unless otherwise specified | ||||||
Balance at Dec. 31, 2013 | $759,446 | $665 | $1,151,174 | ($396,880) | $754,959 | $4,487 |
Balance (in shares) at Dec. 31, 2013 | ' | 66,531 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income attributable to the controlling interests | 104,554 | ' | ' | 104,554 | 104,554 | ' |
Dividends | -20,091 | ' | ' | -20,091 | -20,091 | ' |
Share grants, net of share grant amortization and forfeitures | 180 | 1 | 179 | ' | 180 | ' |
Share grants, net of share grant amortization and forfeitures (in shares) | ' | 99 | ' | ' | ' | ' |
Balance at Mar. 31, 2014 | $844,089 | $666 | $1,151,353 | ($312,417) | $839,602 | $4,487 |
Balance (in shares) at Mar. 31, 2014 | ' | 66,630 | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities | ' | ' |
Net income | $104,554 | $7,335 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization, including amounts in discontinued operations | 22,753 | 25,524 |
Provision for losses on accounts receivable | 568 | 1,566 |
Gain on sale of real estate | -106,273 | -3,195 |
Amortization of share grants, net | 1,058 | 1,026 |
Amortization of Financing Costs and Discounts | 937 | 1,016 |
Changes in operating other assets | 3,152 | 628 |
Changes in operating other liabilities | 2,040 | 4,260 |
Net cash provided by operating activities | 22,485 | 36,904 |
Cash flows from investing activities | ' | ' |
Real estate acquisitions, net | -48,051 | 0 |
Net cash received for sale of real estate | 189,386 | 15,161 |
Escrow Deposits Related to Property Sales | -96,610 | 0 |
Capital improvements to real estate | -10,369 | -10,202 |
Development in progress | -4,203 | -3,788 |
Real estate deposits, net | -2,500 | 0 |
Non-real estate capital improvements | -17 | -7 |
Net cash provided by investing activities | 27,636 | 1,164 |
Cash flows from financing activities | ' | ' |
Line of credit borrowings, net | 0 | 70,000 |
Dividends paid | -20,091 | -20,034 |
Net contributions from noncontrolling interests | 0 | 213 |
Payment of Financing and Stock Issuance Costs | -660 | 0 |
Principal payments – mortgage notes payable | -830 | -30,828 |
Proceeds from construction loan | 3,197 | 0 |
Notes payable repayments | -100,000 | -60,000 |
Net cash used in financing activities | -118,384 | -40,649 |
Net decrease in cash and cash equivalents | -68,263 | -2,581 |
Cash and cash equivalents at beginning of period | 130,343 | 19,324 |
Cash and cash equivalents at end of period | 62,080 | 16,743 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for interest, net of amounts capitalized | 8,970 | 10,684 |
Cash paid for income taxes, net of refund | 71 | 4 |
Decrease (increase) in accrued capital improvements and development costs | 2,616 | -554 |
Noncash or Part Noncash Acquisition, Value of Liabilities Assumed | $100,861 | $0 |
Nature_of_Business
Nature of Business | 3 Months Ended |
Mar. 31, 2014 | |
Nature Of Business [Abstract] | ' |
Nature of Business | ' |
NOTE 1: NATURE OF BUSINESS | |
Washington Real Estate Investment Trust (“Washington REIT”), a Maryland real estate investment trust, is a self-administered, self-managed equity real estate investment trust, successor to a trust organized in 1960. Our business consists of the ownership and operation of income-producing real estate properties in the greater Washington metro region. We own a diversified portfolio of office buildings, multifamily buildings and retail centers. | |
Federal Income Taxes | |
We believe that we qualify as a real estate investment trust (“REIT”) under Sections 856-860 of the Internal Revenue Code and intend to continue to qualify as such. To maintain our status as a REIT, we are required to distribute 90% of our ordinary taxable income to our shareholders. When selling properties, we have the option of (a) reinvesting the sales proceeds of properties sold, allowing for a deferral of income taxes on the sale, (b) paying out capital gains to the shareholders with no tax to Washington REIT or (c) treating the capital gains as having been distributed to the shareholders, paying the tax on the gain deemed distributed and allocating the tax paid as a credit to the shareholders. During the first quarter of 2014, we closed on Transactions III (for the sale of Woodburn Medical Park I and II) and IV (for the sale of Prosperity Medical Center I, II and III) of the Medical Office Portfolio sale for an aggregate contract sales price of $193.6 million. We have identified a portion of the sold Medical Office Portfolio properties for tax deferred exchange under Section 1031 of the Internal Revenue Code. The remaining sales proceeds designated for Section 1031 exchanges as of March 31, 2014 are reported as restricted cash on our consolidated balance sheets. | |
Generally, and subject to our ongoing qualification as a REIT, no provisions for income taxes are necessary except for taxes on undistributed REIT taxable income and taxes on the income generated by our taxable REIT subsidiaries (“TRSs”). Our TRSs are subject to corporate federal and state income tax on their taxable income at regular statutory rates or as calculated under the alternative minimum tax, as appropriate. There were no material income tax provisions or material net deferred income tax items for our TRSs for the three months ended March 31, 2014 and 2013. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies and Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies and Basis of Presentation | ' |
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION | |
Significant Accounting Policies | |
We have prepared our consolidated financial statements using the accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2013. | |
New Accounting Pronouncements | |
In April 2014, the Financial Accounting Standards Board ("FASB") issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which changes the requirements for reporting discontinued operations. Specifically, under this ASU only those disposals of components of an entity that represent a strategic shift that has (or will have) a major effect on an entity’s operations and financial results will be reported as discontinued operations in the financial statements. The primary impact of this ASU is that we are no longer required to report the disposal of every operating property in discontinued operations. Adoption of this ASU is required for all disposals (or classifications as held for sale) of components of an entity that occur within annual periods beginning on or after after December 15, 2014, and interim periods within those years. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance. We early adopted this ASU effective for the first quarter of 2014. | |
Principles of Consolidation and Basis of Presentation | |
The accompanying unaudited consolidated financial statements include the consolidated accounts of Washington REIT, our majority-owned subsidiaries and entities in which Washington REIT has a controlling interest, including where Washington REIT has been determined to be a primary beneficiary of a variable interest entity (“VIE”). See note 3 for additional information on the properties for which there is a noncontrolling interest. All intercompany balances and transactions have been eliminated in consolidation. | |
We have prepared the accompanying unaudited financial statements pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, although we believe that the disclosures made are adequate to make the information presented not misleading. In addition, in the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the results for the periods presented have been included. These unaudited financial statements should be read in conjunction with the financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2013. | |
Within these notes to the financial statements, we refer to the three months ended March 31, 2014 and March 31, 2013 as the “2014 Quarter” and the “2013 Quarter,” respectively. | |
Use of Estimates in the Financial Statements | |
The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Reclassifications | |
Certain prior period amounts have been reclassified to conform to the current period presentation due to the reclassification of certain properties as discontinued operations (see note 3). |
Real_Estate
Real Estate | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Real Estate [Abstract] | ' | |||||||||||||
Real Estate | ' | |||||||||||||
NOTE 3: REAL ESTATE | ||||||||||||||
Acquisitions | ||||||||||||||
Washington REIT acquired the following properties during the 2014 Quarter: | ||||||||||||||
Rentable | Contract | |||||||||||||
Purchase Price | ||||||||||||||
Acquisition Date | Property Name | Type | Square Feet | (in thousands) | ||||||||||
February 21, 2014 | Yale West (216 units) | Multifamily | N/A | $ | 73,000 | |||||||||
March 26, 2014 | The Army Navy Club Building | Office | 108,000 | 79,000 | ||||||||||
108,000 | $ | 152,000 | ||||||||||||
The results of operations from the acquired operating properties are included in the consolidated statements of income as of their acquisition dates. | ||||||||||||||
The revenue and earnings of our 2014 acquisitions are as follows (amounts in thousands): | ||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||
Real estate revenues | $ | 757 | ||||||||||||
Net loss | (815 | ) | ||||||||||||
We record the acquired physical assets (land, building and tenant improvements), and in-place leases (absorption, tenant origination costs, leasing commissions, and net lease intangible assets/liabilities), and any other liabilities at their fair values. | ||||||||||||||
We have recorded the total purchase price of the above acquisitions as follows (in thousands): | ||||||||||||||
Land | $ | 45,481 | ||||||||||||
Buildings | 96,816 | |||||||||||||
Tenant origination costs | 3,856 | |||||||||||||
Leasing commissions/absorption costs | 7,335 | |||||||||||||
Net lease intangible assets | 3,499 | |||||||||||||
Net lease intangible liabilities | (54 | ) | ||||||||||||
Fair value of assumed mortgages | (107,125 | ) | ||||||||||||
Furniture fixtures and equipment | 932 | |||||||||||||
Total | $ | 50,740 | ||||||||||||
The weighted remaining average life for the 2014 acquisition components above, other than land and building, are 85 months for tenant origination costs, 54 months for leasing commissions/absorption costs, 89 months for net lease intangible assets and 211 months for net lease intangible liabilities. | ||||||||||||||
The difference in the total contract purchase price of $152.0 million for the 2014 acquisitions and the acquisition cost per the consolidated statement of cash flows of $48.1 million is primarily due to the assumption of two mortgage notes secured by Yale West and The Army Navy Club Building for an aggregate $100.9 million and the payment of a $3.6 million deposit for Yale West in 2013. | ||||||||||||||
The following unaudited pro-forma combined condensed statements of operations are for the 2014 and 2013 Quarters as if the above described acquisitions had occurred at the beginning of the period of acquisition and the same period in the year prior to acquisition. The unaudited pro-forma information does not purport to be indicative of the results that actually would have occurred if the acquisitions had been in effect for the 2014 and 2013 Quarters. The unaudited data presented is in thousands, except per share data. | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Real estate revenues | $ | 70,921 | $ | 67,627 | ||||||||||
Loss from continuing operations | (3,329 | ) | (934 | ) | ||||||||||
Net income | 103,490 | 5,543 | ||||||||||||
Diluted earnings per share | 1.55 | 0.08 | ||||||||||||
Redevelopment | ||||||||||||||
In the office segment, we have an active redevelopment project to renovate 7900 Westpark Drive. Our total investment in the renovation at 7900 Westpark Drive is expected to be $35.0 million. As of March 31, 2014 and December 31, 2013, we had invested $6.9 million and $3.6 million, respectively, in the renovation. | ||||||||||||||
Variable Interest Entities | ||||||||||||||
In June 2011, we executed a joint venture operating agreement with a real estate development company to develop a mid-rise multifamily property at 650 North Glebe Road in Arlington, Virginia. We estimate the total cost of the project to be $49.9 million. During the first quarter of 2013, we secured third-party debt financing for approximately 70% of the project's cost. Washington REIT is the 90% owner of the joint venture and will have management and leasing responsibilities when the project is completed and stabilized (defined as 90% of the residential units leased). The real estate development company owns 10% of the joint venture and is responsible for the development and construction of the property. The joint venture currently expects to complete this development project during the fourth quarter of 2014. | ||||||||||||||
In November 2011, we executed a joint venture operating agreement with a real estate development company to develop a high-rise multifamily property at 1225 First Street (formerly 1219 First Street) in Alexandria, Virginia. We estimate the total cost of the project to be $95.3 million, with approximately 70% of the project financed with debt. Washington REIT is the 95% owner of the joint venture and will have management and leasing responsibilities if the project is completed and stabilized. The real estate development company owns 5% of the joint venture and is responsible for the development and construction of the property. In the first quarter of 2013, we decided to delay commencement of construction due to market conditions and concerns of oversupply. We continue to reassess this project on a periodic basis going forward. | ||||||||||||||
We have determined that the 650 North Glebe Road and 1225 First Street joint ventures are variable interest entities (“VIE's”) primarily based on the fact that the equity investment at risk is not sufficient to permit either entity to finance its activities without additional financial support. We expect that 70% of the total development costs for each project would be financed through debt. We have also determined that Washington REIT is the primary beneficiary of each VIE due to the fact that Washington REIT is providing 90% to 95% of the equity contributions and will manage each property after stabilization. | ||||||||||||||
We include the joint venture land acquisitions on our consolidated balance sheets in properties under development or held for future development. As of March 31, 2014 and December 31, 2013, the land and capitalized development costs are as follows (in thousands): | ||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||
650 North Glebe | $ | 31,747 | $ | 27,343 | ||||||||||
1225 First Street | 20,793 | 20,788 | ||||||||||||
As of March 31, 2014 and December 31, 2013, the accounts payable and accrued liabilities related to the joint ventures are as follows (in thousands): | ||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||
650 North Glebe | $ | 2,494 | $ | 1,785 | ||||||||||
1225 First Street | 94 | 39 | ||||||||||||
On February 21, 2013, Washington REIT, through its consolidated joint venture to develop a mid-rise multifamily property at 650 North Glebe Road, entered into a construction loan agreement with Citizens Bank for $33.0 million. The loan bears interest at LIBOR plus 2.15%, which decreases to LIBOR plus 2.0% upon completion of construction and the joint venture not being in default. The loan matures on February 21, 2016, with two one year extension options exercisable by the joint venture, subject to fees and compliance with certain provisions in the loan agreement. As of March 31, 2014, the consolidated joint venture had $10.5 million outstanding on this construction loan agreement. | ||||||||||||||
Discontinued Operations | ||||||||||||||
We dispose of assets that no longer meet our long-term strategy or return objectives and where market conditions for sale are favorable. The proceeds from the sales may be reinvested into other properties, used to fund development operations or to support other corporate needs, or distributed to our shareholders. Properties are considered held for sale when they meet the criteria specified (see "Discontinued Operations" in note 2 of the consolidated financial statements included in Washington REIT's Annual Report on Form 10-K for the year ended December 31, 2013). Depreciation on these properties is discontinued at that time, but operating revenues, other operating expenses and interest continue to be recognized until the date of sale. | ||||||||||||||
In September 2013, we entered into four separate purchase and sale agreements to effectuate the sale of our entire medical office segment (including land held for development at 4661 Kenmore Avenue) and two office buildings (Woodholme Center and 6565 Arlington Boulevard) for an aggregate purchase price of $500.8 million. The sale was structured as four transactions. Transactions I and II closed in November 2013 and Transactions III and IV closed in January 2014. | ||||||||||||||
The results of our medical office segment are summarized as follows (amounts in thousands, except per share data): | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Real estate revenues | $ | 892 | $ | 11,028 | ||||||||||
Net income | 546 | 2,821 | ||||||||||||
Basic net income per share | 0.01 | 0.04 | ||||||||||||
Diluted net income per share | 0.01 | 0.04 | ||||||||||||
We sold the following properties in 2014 and 2013: | ||||||||||||||
Property Name | Segment | Rentable Square Feet | Contract | Gain on Sale | ||||||||||
Purchase Price | (In thousands) | |||||||||||||
(In thousands) | ||||||||||||||
Medical Office Portfolio Transactions III & IV (1) | Medical Office | 427,000 | $ | 193,561 | $ | 106,273 | ||||||||
Total 2014 | 427,000 | $ | 193,561 | $ | 106,273 | |||||||||
Atrium Building | Office | 79,000 | $ | 15,750 | $ | 3,195 | ||||||||
Medical Office Portfolio Transactions I & II (2) | Medical Office / Office | 1,093,000 | 307,189 | 18,949 | ||||||||||
Total 2013 | 1,172,000 | $ | 322,939 | $ | 22,144 | |||||||||
(1) | Woodburn Medical Park I and II and Prosperity Medical Center I, II and III. | |||||||||||||
(2) | 2440 M Street, 15001 Shady Grove Road, 15505 Shady Grove Road, 19500 at Riverside Park (formerly Lansdowne Medical Office Building), 9707 Medical Center Drive, CentreMed I and II, 8301 Arlington Boulevard, Sterling Medical Office Building, Shady Grove Medical Village II, Alexandria Professional Center, Ashburn Farm Office Park I, Ashburn Farm Office Park II, Ashburn Farm Office Park III, Woodholme Medical Office Building, two office properties (6565 Arlington Boulevard and Woodholme Center) and undeveloped land at 4661 Kenmore Avenue. | |||||||||||||
As of March 31, 2014 and December 31, 2013, investment in real estate for properties sold or held for sale, all of which were in the medical office segment, was as follows (in thousands): | ||||||||||||||
31-Mar-14 | December 31, 2013 | |||||||||||||
Investment in real estate sold or held for sale | $ | — | $ | 125,967 | ||||||||||
Less accumulated depreciation | — | (46,066 | ) | |||||||||||
Investment in real estate sold or held for sale, net | $ | — | $ | 79,901 | ||||||||||
Income from operations of properties sold or held for sale for the three months ended March 31, 2014 and 2013 was as follows (in thousands): | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Revenues | $ | 892 | $ | 12,711 | ||||||||||
Property expenses | (346 | ) | (4,699 | ) | ||||||||||
Depreciation and amortization | — | (4,401 | ) | |||||||||||
Interest expense | — | (328 | ) | |||||||||||
Income from operations of properties sold or held for sale | $ | 546 | $ | 3,283 | ||||||||||
Income from operations of properties sold or held for sale by property for the three months ended March 31, 2014 and 2013 was as follows (in thousands): | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
Property | Segment | 2014 | 2013 | |||||||||||
Atrium Building | Office | $ | — | $ | 185 | |||||||||
Medical Office Portfolio | Medical Office / Office | 546 | 3,098 | |||||||||||
$ | 546 | $ | 3,283 | |||||||||||
Mortgage_Notes_Payable
Mortgage Notes Payable | 3 Months Ended |
Mar. 31, 2014 | |
Mortgage Notes Payable [Abstract] | ' |
Mortgage Notes Payable | ' |
NOTE 4: MORTGAGE NOTES PAYABLE | |
In February 2014, we assumed a $48.2 million mortgage note as partial consideration for the acquisition of Yale West. This mortgage note bears interest at 5.55% per annum. The fair value interest rate on this mortgage note is 3.75% based on quotes obtained for similar loans. We recorded the mortgage note at its estimated fair value of $54.0 million. Principal and interest are payable monthly until January 1, 2052, at which time all unpaid principal and interest are payable in full. The loan may be prepaid, without penalty, on January 31, 2022 or thereafter on the last business day of the month until maturity, with thirty days prior written notice to the lender. | |
In March 2014, we assumed a $52.7 million mortgage note as partial consideration for acquisition of The Army Navy Club Building. This mortgage note bears interest at 3.45% per annum. The fair value interest rate on this mortgage note is 3.18% based on quotes obtained for similar loans. We recorded the mortgage at its estimated fair value of $53.2 million. Principal and interest are payable monthly until May 1, 2017, at which time all unpaid principal and interest are payable in full. |
Unsecured_Lines_of_Credit_Paya
Unsecured Lines of Credit Payable | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Unsecured Debt [Abstract] | ' | |||||||
Unsecured Lines Of Credit Payable | ' | |||||||
NOTE 5: UNSECURED LINES OF CREDIT PAYABLE | ||||||||
As of March 31, 2014, we maintained a $100.0 million unsecured line of credit maturing in June 2015 ("Credit Facility No. 1") and a $400.0 million unsecured line of credit maturing in July 2016 ("Credit Facility No. 2"). Credit Facilities No. 1 and No. 2 have accordion features that allow us to increase the facilities to $200.0 million and $600.0 million, respectively, subject to additional lender commitments. | ||||||||
The amounts of these lines of credit unused and available at March 31, 2014 are as follows (in thousands): | ||||||||
Credit Facility | Credit Facility | |||||||
No. 1 | No. 2 | |||||||
Committed capacity | $ | 100,000 | $ | 400,000 | ||||
Borrowings outstanding | — | — | ||||||
Unused and available | $ | 100,000 | $ | 400,000 | ||||
We had no borrowings and no repayments on the unsecured lines of credit during the 2014 Quarter. |
Notes_Payable
Notes Payable | 3 Months Ended |
Mar. 31, 2014 | |
Notes Payable [Abstract] | ' |
Notes Payable | ' |
NOTE 6: NOTES PAYABLE | |
We repaid without penalty the $100.0 million of our 5.25% unsecured notes on their due date of January 15, 2014, using proceeds from the sale of the Medical Office Portfolio. |
Stock_Based_Compensation
Stock Based Compensation | 3 Months Ended |
Mar. 31, 2014 | |
Share-based Compensation [Abstract] | ' |
Stock Based Compensation | ' |
NOTE 7: STOCK BASED COMPENSATION | |
Washington REIT maintains short-term ("STIP") and long-term ("LTIP") incentive plans that allow for stock-based awards to officers and non-officer employees. Stock based awards are provided to officers and non-officer employees, as well as trustees, under the Washington Real Estate Investment Trust 2007 Omnibus Long-Term Incentive Plan which allows for awards in the form of restricted shares, restricted share units, options and other awards up to an aggregate of 2,000,000 shares over the ten year period in which the plan will be in effect. Restricted share units are converted into shares of our stock upon full vesting through the issuance of new shares. | |
Total Compensation Expense | |
Total compensation expense recognized in the consolidated financial statements for all outstanding share based awards was $1.1 million and $1.0 million for the 2014 and 2013 Quarters, respectively. | |
Restricted Share Awards | |
The total fair values of restricted share awards vested was $0.2 million and $0.5 million for the 2014 and 2013 Quarters, respectively. | |
The total unvested restricted share awards at March 31, 2014 was 242,218 shares, which had a weighted average grant date fair value of $25.48 per share. As of March 31, 2014, the total compensation cost related to unvested restricted share awards was $3.1 million, which we expect to recognize over a weighted average period of 18 months. |
Fair_Value_Disclosures
Fair Value Disclosures | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||||||
Fair Value Disclosures | ' | |||||||||||||||||||||||||||||||
NOTE 8: FAIR VALUE DISCLOSURES | ||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value | ||||||||||||||||||||||||||||||||
For assets and liabilities measured at fair value on a recurring basis, quantitative disclosures about the fair value measurements are required to be disclosed separately for each major category of assets and liabilities, as follows: | ||||||||||||||||||||||||||||||||
Level 1: Quoted prices in active markets for identical assets | ||||||||||||||||||||||||||||||||
Level 2: Significant other observable inputs | ||||||||||||||||||||||||||||||||
Level 3: Significant unobservable inputs | ||||||||||||||||||||||||||||||||
The only assets or liabilities we had at March 31, 2014 and December 31, 2013 that are recorded at fair value on a recurring basis are the assets held in the Supplemental Executive Retirement Program (“SERP”). We base the valuations related to this asset on assumptions derived from significant other observable inputs and accordingly these valuations fall into Level 2 in the fair value hierarchy. | ||||||||||||||||||||||||||||||||
The fair values of these assets at March 31, 2014 and December 31, 2013 were as follows (in thousands): | ||||||||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
Fair | Level 1 | Level 2 | Level 3 | Fair | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
Value | Value | |||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
SERP | $ | 3,382 | $ | — | $ | 3,382 | $ | — | $ | 3,290 | $ | — | $ | 3,290 | $ | — | ||||||||||||||||
Financial Assets and Liabilities Not Measured at Fair Value | ||||||||||||||||||||||||||||||||
The following disclosures of estimated fair value were determined by management using available market information and established valuation methodologies, including discounted cash flow. Many of these estimates involve significant judgment. The estimated fair value disclosed may not necessarily be indicative of the amounts we could realize on disposition of the financial instruments. The use of different market assumptions or estimation methodologies could have an effect on the estimated fair value amounts. In addition, fair value estimates are made at a point in time and thus, estimates of fair value subsequent to March 31, 2014 may differ significantly from the amounts presented. | ||||||||||||||||||||||||||||||||
Following is a summary of significant methodologies used in estimating fair values and a schedule of fair values at March 31, 2014. | ||||||||||||||||||||||||||||||||
Cash and Cash Equivalents and Restricted Cash | ||||||||||||||||||||||||||||||||
Cash and cash equivalents and restricted cash include cash and commercial paper with original maturities of less than 90 days, which are valued at the carrying value, which approximates fair value due to the short maturity of these instruments (Level 1 inputs). | ||||||||||||||||||||||||||||||||
Notes Receivable | ||||||||||||||||||||||||||||||||
We acquired a note receivable ("2445 M Street note") in 2008 with the purchase of 2445 M Street. We estimate the fair value of the 2445 M Street note based on a discounted cash flow methodology using market discount rates (Level 3 inputs). | ||||||||||||||||||||||||||||||||
Debt | ||||||||||||||||||||||||||||||||
Mortgage notes payable consist of instruments in which certain of our real estate assets are used for collateral. We estimate the fair value of the mortgage notes payable by discounting the contractual cash flows at a rate equal to the relevant treasury rates (with respect to the timing of each cash flow) plus credit spreads estimated through independent comparisons to real estate assets or loans with similar characteristics. Lines of credit payable consist of bank facilities which we use for various purposes including working capital, acquisition funding or capital improvements. The lines of credit advances are priced at a specified rate plus a spread. We estimate the market value based on a comparison of the spreads of the advances to market given the adjustable base rate. We estimate the fair value of the notes payable by discounting the contractual cash flows at a rate equal to the relevant treasury rates (with respect to the timing of each cash flow) plus credit spreads derived using the relevant securities’ market prices. We classify these fair value measurements as Level 3 as we use significant unobservable inputs and management judgment due to the absence of quoted market prices. | ||||||||||||||||||||||||||||||||
As of March 31, 2014 and December 31, 2013, the carrying values and estimated fair values of our financial instruments were as follows (in thousands): | ||||||||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 62,080 | $ | 62,080 | $ | 130,343 | $ | 130,343 | ||||||||||||||||||||||||
Restricted cash | 107,039 | 107,039 | 9,189 | 9,189 | ||||||||||||||||||||||||||||
2445 M Street note | 6,280 | 7,184 | 6,070 | 6,803 | ||||||||||||||||||||||||||||
Mortgage notes payable | 404,359 | 423,454 | 294,671 | 313,476 | ||||||||||||||||||||||||||||
Notes payable | 746,830 | 772,063 | 846,703 | 856,171 | ||||||||||||||||||||||||||||
Earnings_per_Common_Share
Earnings per Common Share | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Earnings per Common Share | ' | |||||||
NOTE 9: EARNINGS PER COMMON SHARE | ||||||||
We determine “Basic earnings per share” using the two-class method as our unvested restricted share awards and units have non-forfeitable rights to dividends and are therefore considered participating securities. We compute basic earnings per share by dividing net income attributable to the controlling interest less the allocation of undistributed earnings to unvested restricted share awards and units by the weighted-average number of common shares outstanding for the period. | ||||||||
We also determine “Diluted earnings per share” under the two-class method with respect to the unvested restricted share awards. We further evaluate any other potentially dilutive securities at the end of the period and adjust the basic earnings per share calculation for the impact of those securities that are dilutive. Our dilutive earnings per share calculation includes the dilutive impact of employee stock options based on the treasury stock method and our incentive share awards with performance or market conditions under the contingently issuable method. The diluted earnings per share calculation also considers our operating partnership units under the if-converted method. We have a loss from continuing operations for the 2014 Quarter, and therefore diluted earnings per share is calculated in the same manner as basic earnings per share for this quarter. | ||||||||
The computations of basic and diluted earnings per share for the three months ended March 31, 2014 and 2013 were as follows (in thousands, except per share data): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Numerator: | ||||||||
(Loss) income from continuing operations | $ | (2,265 | ) | $ | 857 | |||
Allocation of earnings to unvested restricted share awards | (10 | ) | (14 | ) | ||||
Adjusted (loss) income from continuing operations attributable to the controlling interests | (2,275 | ) | 843 | |||||
Income from discontinued operations, including gain on sale of real estate, net of taxes | 106,819 | 6,478 | ||||||
Allocation of earnings to unvested restricted share awards | (285 | ) | (106 | ) | ||||
Adjusted income from discontinuing operations attributable to the controlling interests | 106,534 | 6,372 | ||||||
Adjusted net income attributable to the controlling interests | $ | 104,259 | $ | 7,215 | ||||
Denominator: | ||||||||
Weighted average shares outstanding – basic | 66,701 | 66,393 | ||||||
Effect of dilutive securities: | ||||||||
Operating partnership units | — | 117 | ||||||
Employee stock options and restricted share awards | — | 9 | ||||||
Weighted average shares outstanding – diluted | 66,701 | 66,519 | ||||||
Earnings (loss) per common share, basic: | ||||||||
Continuing operations | $ | (0.04 | ) | $ | 0.01 | |||
Discontinued operations | 1.6 | 0.1 | ||||||
$ | 1.56 | $ | 0.11 | |||||
Earnings (loss) per common share, diluted: | ||||||||
Continuing operations | $ | (0.04 | ) | $ | 0.01 | |||
Discontinued operations | 1.6 | 0.1 | ||||||
$ | 1.56 | $ | 0.11 | |||||
Segment_Information
Segment Information | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ' | |||||||||||||||||||||||
Segment Information | ' | |||||||||||||||||||||||
NOTE 10: SEGMENT INFORMATION | ||||||||||||||||||||||||
We have three reportable segments: office, retail and multifamily. Office buildings provide office space for various types of businesses and professions. Retail shopping centers are typically grocery store anchored neighborhood centers that include other small shop tenants or regional power centers with several junior box tenants. Multifamily properties provide rental housing for individuals and families throughout the Washington metropolitan area. During the 2014 Quarter, we completed the sale of our medical office segment (see note 3). | ||||||||||||||||||||||||
We evaluate performance based upon operating income from the combined properties in each segment. Our reportable operating segments are consolidations of similar properties. GAAP requires that segment disclosures present the measure(s) used by the chief operating decision maker for purposes of assessing segments’ performance. Net operating income is a key measurement of our segment profit and loss. Net operating income is defined as segment real estate rental revenue less segment real estate expenses. | ||||||||||||||||||||||||
The following tables present revenues, net operating income, capital expenditures and total assets for the 2014 and 2013 Quarters from these segments, and reconciles net operating income of reportable segments to net income attributable to the controlling interests as reported (in thousands): | ||||||||||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||||||
Office | Retail | Multifamily | Corporate and Other | Consolidated | ||||||||||||||||||||
Real estate rental revenue | $ | 39,064 | $ | 14,625 | $ | 14,922 | $ | — | $ | 68,611 | ||||||||||||||
Real estate expenses | 15,696 | 4,231 | 6,415 | — | 26,342 | |||||||||||||||||||
Net operating income | $ | 23,368 | $ | 10,394 | $ | 8,507 | $ | — | $ | 42,269 | ||||||||||||||
Depreciation and amortization | (22,753 | ) | ||||||||||||||||||||||
General and administrative | (4,429 | ) | ||||||||||||||||||||||
Acquisition costs | (3,045 | ) | ||||||||||||||||||||||
Interest expense | (14,530 | ) | ||||||||||||||||||||||
Other income | 223 | |||||||||||||||||||||||
Discontinued operations: | ||||||||||||||||||||||||
Income from operations of properties sold or held for sale | 546 | |||||||||||||||||||||||
Gain on sale of real estate | 106,273 | |||||||||||||||||||||||
Net income | 104,554 | |||||||||||||||||||||||
Less: Net income attributable to noncontrolling interests in subsidiaries | — | |||||||||||||||||||||||
Net income attributable to the controlling interests | $ | 104,554 | ||||||||||||||||||||||
Capital expenditures | $ | 8,703 | $ | 110 | $ | 1,556 | $ | 17 | $ | 10,386 | ||||||||||||||
Total assets | $ | 1,151,585 | $ | 341,134 | $ | 392,531 | $ | 189,922 | $ | 2,075,172 | ||||||||||||||
Three Months Ended March 31, 2013 | ||||||||||||||||||||||||
Office | Medical | Retail | Multifamily | Corporate | Consolidated | |||||||||||||||||||
Office | and Other | |||||||||||||||||||||||
Real estate rental revenue | $ | 37,393 | $ | — | $ | 13,834 | $ | 13,333 | $ | — | $ | 64,560 | ||||||||||||
Real estate expenses | 13,599 | — | 3,565 | 5,390 | — | 22,554 | ||||||||||||||||||
Net operating income | $ | 23,794 | $ | — | $ | 10,269 | $ | 7,943 | $ | — | $ | 42,006 | ||||||||||||
Depreciation and amortization | (21,123 | ) | ||||||||||||||||||||||
Acquisition costs | (213 | ) | ||||||||||||||||||||||
General and administrative | (3,862 | ) | ||||||||||||||||||||||
Interest expense | (16,190 | ) | ||||||||||||||||||||||
Other income | 239 | |||||||||||||||||||||||
Discontinued operations: | ||||||||||||||||||||||||
Income from operations of properties sold or held for sale | 3,283 | |||||||||||||||||||||||
Gain on sale of real estate | 3,195 | |||||||||||||||||||||||
Net income | 7,335 | |||||||||||||||||||||||
Less: Net income attributable to noncontrolling interests in subsidiaries | — | |||||||||||||||||||||||
Net income attributable to the controlling interests | $ | 7,335 | ||||||||||||||||||||||
Capital expenditures | $ | 7,575 | $ | 1,077 | $ | 766 | $ | 784 | $ | 7 | $ | 10,209 | ||||||||||||
Total assets | $ | 1,118,579 | $ | 325,281 | $ | 351,967 | $ | 250,680 | $ | 49,613 | $ | 2,096,120 | ||||||||||||
Subsequent_Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
SUBSEQUENT EVENTS | |
On May 1, 2014, we closed on the purchase of 1775 Eye Street, a 185,000 office building in Washington, DC, for $104.5 million, using proceeds from the Medical Office Portfolio sale. The initial accounting for the acquisition is incomplete due to the timing of the acquisition relative to the filing date of this report and, therefore, purchase price accounting and pro forma disclosures are not included. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies and Basis of Presentation (Policy) | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Significant Accounting Policies | ' |
Significant Accounting Policies | |
We have prepared our consolidated financial statements using the accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2013. | |
Principles of Consolidation and Basis of Presentation | ' |
Principles of Consolidation and Basis of Presentation | |
The accompanying unaudited consolidated financial statements include the consolidated accounts of Washington REIT, our majority-owned subsidiaries and entities in which Washington REIT has a controlling interest, including where Washington REIT has been determined to be a primary beneficiary of a variable interest entity (“VIE”). See note 3 for additional information on the properties for which there is a noncontrolling interest. All intercompany balances and transactions have been eliminated in consolidation. | |
We have prepared the accompanying unaudited financial statements pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, although we believe that the disclosures made are adequate to make the information presented not misleading. In addition, in the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the results for the periods presented have been included. These unaudited financial statements should be read in conjunction with the financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2013. | |
Within these notes to the financial statements, we refer to the three months ended March 31, 2014 and March 31, 2013 as the “2014 Quarter” and the “2013 Quarter,” respectively. | |
Use of Estimates in the Financial Statements | ' |
Use of Estimates in the Financial Statements | |
The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Reclassifications | ' |
Reclassifications | |
Certain prior period amounts have been reclassified to conform to the current period presentation due to the reclassification of certain properties as discontinued operations (see note 3). |
Real_Estate_Tables
Real Estate (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Real Estate [Abstract] | ' | |||||||||||||
Business Acquisition, Pro Forma Information [Table Text Block] | ' | |||||||||||||
The following unaudited pro-forma combined condensed statements of operations are for the 2014 and 2013 Quarters as if the above described acquisitions had occurred at the beginning of the period of acquisition and the same period in the year prior to acquisition. The unaudited pro-forma information does not purport to be indicative of the results that actually would have occurred if the acquisitions had been in effect for the 2014 and 2013 Quarters. The unaudited data presented is in thousands, except per share data. | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Real estate revenues | $ | 70,921 | $ | 67,627 | ||||||||||
Loss from continuing operations | (3,329 | ) | (934 | ) | ||||||||||
Net income | 103,490 | 5,543 | ||||||||||||
Diluted earnings per share | 1.55 | 0.08 | ||||||||||||
Schedule Of Real Estate Property Acquired [Table Text Block] | ' | |||||||||||||
Washington REIT acquired the following properties during the 2014 Quarter: | ||||||||||||||
Rentable | Contract | |||||||||||||
Purchase Price | ||||||||||||||
Acquisition Date | Property Name | Type | Square Feet | (in thousands) | ||||||||||
February 21, 2014 | Yale West (216 units) | Multifamily | N/A | $ | 73,000 | |||||||||
March 26, 2014 | The Army Navy Club Building | Office | 108,000 | 79,000 | ||||||||||
108,000 | $ | 152,000 | ||||||||||||
Revenue and Earnings From Acquisition [Table Text Block] | ' | |||||||||||||
The revenue and earnings of our 2014 acquisitions are as follows (amounts in thousands): | ||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||
Real estate revenues | $ | 757 | ||||||||||||
Net loss | (815 | ) | ||||||||||||
Land and Capitalized Development Costs | ' | |||||||||||||
As of March 31, 2014 and December 31, 2013, the land and capitalized development costs are as follows (in thousands): | ||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||
650 North Glebe | $ | 31,747 | $ | 27,343 | ||||||||||
1225 First Street | 20,793 | 20,788 | ||||||||||||
Schedule of Accounts Payable and Accrued Liabilities of Joint Ventures | ' | |||||||||||||
As of March 31, 2014 and December 31, 2013, the accounts payable and accrued liabilities related to the joint ventures are as follows (in thousands): | ||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||
650 North Glebe | $ | 2,494 | $ | 1,785 | ||||||||||
1225 First Street | 94 | 39 | ||||||||||||
Schedule of Income Statement Results for Medical Office Segment | ' | |||||||||||||
The results of our medical office segment are summarized as follows (amounts in thousands, except per share data): | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Real estate revenues | $ | 892 | $ | 11,028 | ||||||||||
Net income | 546 | 2,821 | ||||||||||||
Basic net income per share | 0.01 | 0.04 | ||||||||||||
Diluted net income per share | 0.01 | 0.04 | ||||||||||||
Schedule of Dispositions | ' | |||||||||||||
We sold the following properties in 2014 and 2013: | ||||||||||||||
Property Name | Segment | Rentable Square Feet | Contract | Gain on Sale | ||||||||||
Purchase Price | (In thousands) | |||||||||||||
(In thousands) | ||||||||||||||
Medical Office Portfolio Transactions III & IV (1) | Medical Office | 427,000 | $ | 193,561 | $ | 106,273 | ||||||||
Total 2014 | 427,000 | $ | 193,561 | $ | 106,273 | |||||||||
Atrium Building | Office | 79,000 | $ | 15,750 | $ | 3,195 | ||||||||
Medical Office Portfolio Transactions I & II (2) | Medical Office / Office | 1,093,000 | 307,189 | 18,949 | ||||||||||
Total 2013 | 1,172,000 | $ | 322,939 | $ | 22,144 | |||||||||
Schedule of Investment in Real Estate for Properties Sold or Held For Sale and Related Liabilities | ' | |||||||||||||
As of March 31, 2014 and December 31, 2013, investment in real estate for properties sold or held for sale, all of which were in the medical office segment, was as follows (in thousands): | ||||||||||||||
31-Mar-14 | December 31, 2013 | |||||||||||||
Investment in real estate sold or held for sale | $ | — | $ | 125,967 | ||||||||||
Less accumulated depreciation | — | (46,066 | ) | |||||||||||
Investment in real estate sold or held for sale, net | $ | — | $ | 79,901 | ||||||||||
Operating Income (Loss) for Discontinued Operations | ' | |||||||||||||
Income from operations of properties sold or held for sale for the three months ended March 31, 2014 and 2013 was as follows (in thousands): | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Revenues | $ | 892 | $ | 12,711 | ||||||||||
Property expenses | (346 | ) | (4,699 | ) | ||||||||||
Depreciation and amortization | — | (4,401 | ) | |||||||||||
Interest expense | — | (328 | ) | |||||||||||
Income from operations of properties sold or held for sale | $ | 546 | $ | 3,283 | ||||||||||
Operating Income (Loss) By Property Classified As Discontinued Operations | ' | |||||||||||||
Income from operations of properties sold or held for sale by property for the three months ended March 31, 2014 and 2013 was as follows (in thousands): | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
Property | Segment | 2014 | 2013 | |||||||||||
Atrium Building | Office | $ | — | $ | 185 | |||||||||
Medical Office Portfolio | Medical Office / Office | 546 | 3,098 | |||||||||||
$ | 546 | $ | 3,283 | |||||||||||
Total Purchase Price Of Acquisitions [Table Text Block] | ' | |||||||||||||
We have recorded the total purchase price of the above acquisitions as follows (in thousands): | ||||||||||||||
Land | $ | 45,481 | ||||||||||||
Buildings | 96,816 | |||||||||||||
Tenant origination costs | 3,856 | |||||||||||||
Leasing commissions/absorption costs | 7,335 | |||||||||||||
Net lease intangible assets | 3,499 | |||||||||||||
Net lease intangible liabilities | (54 | ) | ||||||||||||
Fair value of assumed mortgages | (107,125 | ) | ||||||||||||
Furniture fixtures and equipment | 932 | |||||||||||||
Total | $ | 50,740 | ||||||||||||
Unsecured_Lines_of_Credit_Paya1
Unsecured Lines of Credit Payable (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Unsecured Debt [Abstract] | ' | |||||||
Lines of Credit Unused and Available | ' | |||||||
The amounts of these lines of credit unused and available at March 31, 2014 are as follows (in thousands): | ||||||||
Credit Facility | Credit Facility | |||||||
No. 1 | No. 2 | |||||||
Committed capacity | $ | 100,000 | $ | 400,000 | ||||
Borrowings outstanding | — | — | ||||||
Unused and available | $ | 100,000 | $ | 400,000 | ||||
Fair_Value_Disclosures_Tables
Fair Value Disclosures (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||||||
Financial Assets and Liabilities Measured at Fair Value | ' | |||||||||||||||||||||||||||||||
The fair values of these assets at March 31, 2014 and December 31, 2013 were as follows (in thousands): | ||||||||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
Fair | Level 1 | Level 2 | Level 3 | Fair | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
Value | Value | |||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
SERP | $ | 3,382 | $ | — | $ | 3,382 | $ | — | $ | 3,290 | $ | — | $ | 3,290 | $ | — | ||||||||||||||||
Financial Assets and Liabilities Not Measured at Fair Value | ' | |||||||||||||||||||||||||||||||
As of March 31, 2014 and December 31, 2013, the carrying values and estimated fair values of our financial instruments were as follows (in thousands): | ||||||||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 62,080 | $ | 62,080 | $ | 130,343 | $ | 130,343 | ||||||||||||||||||||||||
Restricted cash | 107,039 | 107,039 | 9,189 | 9,189 | ||||||||||||||||||||||||||||
2445 M Street note | 6,280 | 7,184 | 6,070 | 6,803 | ||||||||||||||||||||||||||||
Mortgage notes payable | 404,359 | 423,454 | 294,671 | 313,476 | ||||||||||||||||||||||||||||
Notes payable | 746,830 | 772,063 | 846,703 | 856,171 | ||||||||||||||||||||||||||||
Earnings_per_Common_Share_Tabl
Earnings per Common Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Computation of Basic and Diluted Earnings per Share | ' | |||||||
The computations of basic and diluted earnings per share for the three months ended March 31, 2014 and 2013 were as follows (in thousands, except per share data): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Numerator: | ||||||||
(Loss) income from continuing operations | $ | (2,265 | ) | $ | 857 | |||
Allocation of earnings to unvested restricted share awards | (10 | ) | (14 | ) | ||||
Adjusted (loss) income from continuing operations attributable to the controlling interests | (2,275 | ) | 843 | |||||
Income from discontinued operations, including gain on sale of real estate, net of taxes | 106,819 | 6,478 | ||||||
Allocation of earnings to unvested restricted share awards | (285 | ) | (106 | ) | ||||
Adjusted income from discontinuing operations attributable to the controlling interests | 106,534 | 6,372 | ||||||
Adjusted net income attributable to the controlling interests | $ | 104,259 | $ | 7,215 | ||||
Denominator: | ||||||||
Weighted average shares outstanding – basic | 66,701 | 66,393 | ||||||
Effect of dilutive securities: | ||||||||
Operating partnership units | — | 117 | ||||||
Employee stock options and restricted share awards | — | 9 | ||||||
Weighted average shares outstanding – diluted | 66,701 | 66,519 | ||||||
Earnings (loss) per common share, basic: | ||||||||
Continuing operations | $ | (0.04 | ) | $ | 0.01 | |||
Discontinued operations | 1.6 | 0.1 | ||||||
$ | 1.56 | $ | 0.11 | |||||
Earnings (loss) per common share, diluted: | ||||||||
Continuing operations | $ | (0.04 | ) | $ | 0.01 | |||
Discontinued operations | 1.6 | 0.1 | ||||||
$ | 1.56 | $ | 0.11 | |||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ' | |||||||||||||||||||||||
Reconciliation of Net Operating Income of Reportable Segments | ' | |||||||||||||||||||||||
The following tables present revenues, net operating income, capital expenditures and total assets for the 2014 and 2013 Quarters from these segments, and reconciles net operating income of reportable segments to net income attributable to the controlling interests as reported (in thousands): | ||||||||||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||||||
Office | Retail | Multifamily | Corporate and Other | Consolidated | ||||||||||||||||||||
Real estate rental revenue | $ | 39,064 | $ | 14,625 | $ | 14,922 | $ | — | $ | 68,611 | ||||||||||||||
Real estate expenses | 15,696 | 4,231 | 6,415 | — | 26,342 | |||||||||||||||||||
Net operating income | $ | 23,368 | $ | 10,394 | $ | 8,507 | $ | — | $ | 42,269 | ||||||||||||||
Depreciation and amortization | (22,753 | ) | ||||||||||||||||||||||
General and administrative | (4,429 | ) | ||||||||||||||||||||||
Acquisition costs | (3,045 | ) | ||||||||||||||||||||||
Interest expense | (14,530 | ) | ||||||||||||||||||||||
Other income | 223 | |||||||||||||||||||||||
Discontinued operations: | ||||||||||||||||||||||||
Income from operations of properties sold or held for sale | 546 | |||||||||||||||||||||||
Gain on sale of real estate | 106,273 | |||||||||||||||||||||||
Net income | 104,554 | |||||||||||||||||||||||
Less: Net income attributable to noncontrolling interests in subsidiaries | — | |||||||||||||||||||||||
Net income attributable to the controlling interests | $ | 104,554 | ||||||||||||||||||||||
Capital expenditures | $ | 8,703 | $ | 110 | $ | 1,556 | $ | 17 | $ | 10,386 | ||||||||||||||
Total assets | $ | 1,151,585 | $ | 341,134 | $ | 392,531 | $ | 189,922 | $ | 2,075,172 | ||||||||||||||
Three Months Ended March 31, 2013 | ||||||||||||||||||||||||
Office | Medical | Retail | Multifamily | Corporate | Consolidated | |||||||||||||||||||
Office | and Other | |||||||||||||||||||||||
Real estate rental revenue | $ | 37,393 | $ | — | $ | 13,834 | $ | 13,333 | $ | — | $ | 64,560 | ||||||||||||
Real estate expenses | 13,599 | — | 3,565 | 5,390 | — | 22,554 | ||||||||||||||||||
Net operating income | $ | 23,794 | $ | — | $ | 10,269 | $ | 7,943 | $ | — | $ | 42,006 | ||||||||||||
Depreciation and amortization | (21,123 | ) | ||||||||||||||||||||||
Acquisition costs | (213 | ) | ||||||||||||||||||||||
General and administrative | (3,862 | ) | ||||||||||||||||||||||
Interest expense | (16,190 | ) | ||||||||||||||||||||||
Other income | 239 | |||||||||||||||||||||||
Discontinued operations: | ||||||||||||||||||||||||
Income from operations of properties sold or held for sale | 3,283 | |||||||||||||||||||||||
Gain on sale of real estate | 3,195 | |||||||||||||||||||||||
Net income | 7,335 | |||||||||||||||||||||||
Less: Net income attributable to noncontrolling interests in subsidiaries | — | |||||||||||||||||||||||
Net income attributable to the controlling interests | $ | 7,335 | ||||||||||||||||||||||
Capital expenditures | $ | 7,575 | $ | 1,077 | $ | 766 | $ | 784 | $ | 7 | $ | 10,209 | ||||||||||||
Total assets | $ | 1,118,579 | $ | 325,281 | $ | 351,967 | $ | 250,680 | $ | 49,613 | $ | 2,096,120 | ||||||||||||
Nature_of_Business_Details
Nature of Business (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | |
Percentage of distribution of ordinary taxable income | 90.00% | ' | |
Disposal Group, Including Discontinued Operation, Sale Price | $193,561 | $322,939 | |
Medical Office And Office Building [Member] | Medical Office Portfolio Transactions III & IV [Member] | ' | ' | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | |
Disposal Group, Including Discontinued Operation, Sale Price | $193,561 | [1] | ' |
[1] | Woodburn Medical Park I and II and Prosperity Medical Center I, II and III. |
Real_Estate_Variable_Interest_
Real Estate - Variable Interest Entities (Details) (USD $) | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | |||
Mar. 31, 2014 | Jun. 30, 2011 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Nov. 30, 2011 | Mar. 31, 2014 | Dec. 31, 2013 | |
650 North Glebe Road [Member] | 650 North Glebe Road [Member] | 650 North Glebe Road [Member] | 650 North Glebe Road [Member] | 1225 First Street [Member] | 1225 First Street [Member] | 1225 First Street [Member] | ||
Real Estate Properties [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated development costs | ' | $49,900,000 | ' | ' | ' | $95,300,000 | ' | ' |
Percentage of capital contribution through debt | 70.00% | ' | ' | 70.00% | ' | ' | 70.00% | ' |
Variable interest entity, qualitative or quantitative information, ownership percentage | ' | ' | 90.00% | ' | ' | ' | 95.00% | ' |
Percentage of residential property to be leased to achieve project stabilization stage | ' | ' | 90.00% | ' | ' | ' | ' | ' |
Noncontrolling interest, ownership percentage by noncontrolling owners | ' | ' | 10.00% | ' | ' | ' | 5.00% | ' |
Land and capitalized development costs related to joint ventures | ' | ' | 31,747,000 | ' | 27,343,000 | ' | 20,793,000 | 20,788,000 |
Accounts payable and accrued liabilities related to joint ventures | ' | ' | $2,494,000 | ' | $1,785,000 | ' | $94,000 | $39,000 |
Real_Estate_Discontinued_Opera
Real Estate - Discontinued Operations (Details) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |||
sqft | sqft | Medical Office Porfolio [Member] | Medical Office Building [Member] | Office Building [Member] | Office Building [Member] | Office [Member] | Office [Member] | Medical Office And Office Building [Member] | Medical Office And Office Building [Member] | Medical Office And Office Building [Member] | Medical Office And Office Building [Member] | |||||
agreements | Medical Office Portfolio Transactions III & IV [Member] | Atrium Building [Member] | Atrium Building [Member] | Atrium Building [Member] | Medical Office Porfolio [Member] | Medical Office Portfolio Transactions III & IV [Member] | Medical Office Porfolio [Member] | Medical Office Porfolio [Member] | Medical Office Portfolio Transactions I & II [Member] | |||||||
sqft | sqft | buildings | sqft | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of Purchase and Sale Agreements | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of Buildings Sold | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | |||
Rentable square feet | 427,000 | ' | 1,172,000 | ' | 427,000 | [1] | ' | ' | 79,000 | ' | ' | ' | ' | 1,093,000 | [2] | |
Contract sale price | $193,561 | ' | $322,939 | ' | ' | ' | ' | $15,750 | ' | $193,561 | [1] | $500,800 | ' | $307,189 | [2] | |
Gain on sale of real estate | 106,273 | 3,195 | 22,144 | ' | ' | ' | ' | 3,195 | ' | 106,273 | ' | ' | 18,949 | [2] | ||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenues | 892 | 12,711 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Property expenses | -346 | -4,699 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Depreciation and amortization | 0 | -4,401 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Interest expense | 0 | -328 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Income from operations of properties sold or held for sale | $546 | $3,283 | ' | ' | ' | $0 | $185 | ' | ' | ' | $546 | $3,098 | ' | |||
[1] | Woodburn Medical Park I and II and Prosperity Medical Center I, II and III. | |||||||||||||||
[2] | 2440 M Street, 15001 Shady Grove Road, 15505 Shady Grove Road, 19500 at Riverside Park (formerly Lansdowne Medical Office Building), 9707 Medical Center Drive, CentreMed I and II, 8301 Arlington Boulevard, Sterling Medical Office Building, Shady Grove Medical Village II, Alexandria Professional Center, Ashburn Farm Office Park I, Ashburn Farm Office Park II, Ashburn Farm Office Park III, Woodholme Medical Office Building, two office properties (6565 Arlington Boulevard and Woodholme Center) and undeveloped land at 4661 Kenmore Avenue. |
Real_Estate_Assets_and_liabili
Real Estate - Assets and liabilities of real estate held for sale (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | ' | ' |
Investment in real estate sold or held for sale, net | $0 | $125,967 |
Less accumulated depreciation | 0 | -46,066 |
Investment in real estate sold or held for sale, net | $0 | $79,901 |
Real_Estate_Income_statement_r
Real Estate - Income statement results of assets held for sale (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Impact of potential sale on operating results | ' | ' |
Real estate revenues | $68,611 | $64,560 |
Net income | 104,554 | 7,335 |
Basic net income per share (in dollars per share) | $1.56 | $0.11 |
Diluted net income per share (in dollars per share) | $1.56 | $0.11 |
Medical Office [Member] | ' | ' |
Impact of potential sale on operating results | ' | ' |
Real estate revenues | 892 | 11,028 |
Net income | $546 | $2,821 |
Basic net income per share (in dollars per share) | $0.01 | $0.04 |
Diluted net income per share (in dollars per share) | $0.01 | $0.04 |
Real_Estate_Secured_Debt_Detai
Real Estate - Secured Debt (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Feb. 21, 2013 | Feb. 21, 2013 | Feb. 21, 2013 |
650 N Glebe [Member] | 650 N Glebe [Member] | 650 N Glebe [Member] | 650 N Glebe [Member] | |||
extension_option | Secured Debt [Member] | Secured Debt [Member] | ||||
LIBOR [Member] | LIBOR [Member] | |||||
Maximum [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' |
Construction loan agreement | ' | ' | ' | $33,000,000 | ' | ' |
Basis spread on variable interest rate | ' | ' | ' | ' | 2.15% | 2.00% |
Mortgage notes payable | $404,359,000 | $294,671,000 | $10,500,000 | ' | ' | ' |
Number of extension options | ' | ' | 2 | ' | ' | ' |
Length of extension period | ' | ' | '1 year | ' | ' | ' |
Real_Estate_Acquisitions_Detai
Real Estate - Acquisitions (Details) (USD $) | 3 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | |
note | Tenant Origination Costs Member | Leasing Commissions Absorption Costs Member | Net Lease Intangible Assets Member | Net Lease Intangible Liabilities Member | Property Acquired [Member] | Yale West | Yale West | The Army Navy Club Building | Pro Forma [Member] | Pro Forma [Member] | |||
sqft | Property Acquired [Member] | Property Acquired [Member] | Property Acquired [Member] | ||||||||||
sqft | |||||||||||||
Real Estate Properties [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SEC Schedule III, Real Estate and Accumulated Depreciation, Date Acquired | ' | ' | ' | ' | ' | ' | ' | ' | 21-Feb-14 | ' | 26-Mar-14 | ' | ' |
Real Estate, Type of Property, Multifamily | ' | ' | ' | ' | ' | ' | ' | ' | 'Multifamily | ' | ' | ' | ' |
Real estate rental revenue | $68,611,000 | $64,560,000 | ' | ' | ' | ' | ' | $757,000 | ' | ' | ' | $70,921,000 | $67,627,000 |
Payments to Acquire Land Held-for-use | 45,481,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | ' | ' | ' | '85 months | '54 months | '89 months | '211 months | ' | ' | ' | ' | ' | ' |
Real Estate Investment Property, at Cost | 2,256,906,000 | ' | 2,102,227,000 | ' | ' | ' | ' | 152,000,000 | 73,000,000 | ' | 79,000,000 | ' | ' |
Payments to Acquire Real Estate | 48,051,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Mortgage Notes Assumed | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes Assumed | 100,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments to Acquire Buildings | 96,816,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tenant origination costs | 3,856,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leasing commissions absorption costs | 7,335,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net lease intangible assets | 3,499,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net lease intangible liabilities | -54,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | -107,125,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 932,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total property purchase price | 50,740,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Investment Income | ' | ' | ' | ' | ' | ' | ' | -815,000 | ' | ' | ' | ' | ' |
Real Estate, Type of Property, Office | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Office | ' | ' |
Square Footage Of Real Estate Property Acquired | ' | ' | ' | ' | ' | ' | ' | 108,000 | ' | ' | 108,000 | ' | ' |
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest | -2,265,000 | 857,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3,329,000 | -934,000 |
Net income attributable to the controlling interests | 104,554,000 | 7,335,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 103,490,000 | 5,543,000 |
Net income per share (in dollars per share) | $1.56 | $0.11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.55 | $0.08 |
Payments for Escrow Deposit | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3,600,000 | ' | ' | ' |
Real_Estate_Redevelopment_Deta
Real Estate - Redevelopment (Details) (7900 Westpark Drive [Member], USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
7900 Westpark Drive [Member] | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Estimated development costs | $35 | ' |
Land Available for Development | $6.90 | $3.60 |
Mortgage_Notes_Payable_Details
Mortgage Notes Payable (Details) (USD $) | 3 Months Ended | 1 Months Ended | 1 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Feb. 28, 2014 | Feb. 21, 2014 | Mar. 31, 2014 | Mar. 26, 2014 |
Mortgage Note Payable | Mortgage Note Payable | Mortgage Note Payable | Mortgage Note Payable | |||
Yale West | Yale West | The Army Navy Club Building | The Army Navy Club Building | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' |
Noncash or Part Noncash Acquisition, Value of Liabilities Assumed | $100,861 | $0 | $48,200 | ' | $52,700 | ' |
Interest rate, stated percentage | ' | ' | 5.55% | ' | 3.45% | ' |
Debt Instrument, Interest Rate, Basis for Effective Rate | ' | ' | ' | 3.75% | ' | 3.18% |
Mortgage notes payable, Fair Value | ' | ' | $54,000 | ' | $53,200 | ' |
Unsecured_Lines_of_Credit_Paya2
Unsecured Lines of Credit Payable (Details) (USD $) | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Jan. 15, 2014 |
Credit Facility No. 1 [Member] | Credit Facility No. 2 [Member] | Maximum [Member] | Maximum [Member] | 5.125% unsecured notes [Member] | |
Credit Facility No. 1 [Member] | Credit Facility No. 2 [Member] | Unsecured Debt [Member] | |||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' |
Expiration date | 30-Jun-15 | 31-Jul-16 | ' | ' | ' |
Committed capacity | $100,000 | $400,000 | $200,000 | $600,000 | ' |
Borrowings outstanding | 0 | 0 | ' | ' | ' |
Unused and available | 100,000 | 400,000 | ' | ' | ' |
Borrowings outstanding | $0 | $0 | ' | ' | ' |
Interest rate, stated percentage | ' | ' | ' | ' | 5.25% |
Notes_Payable_Details
Notes Payable (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 15, 2013 | Jan. 15, 2014 |
Unsecured Debt [Member] | Unsecured Debt [Member] | |||
5.125% unsecured notes [Member] | 5.125% unsecured notes [Member] | |||
Debt Instrument [Line Items] | ' | ' | ' | ' |
Repayments of Unsecured Debt | $100,000 | $60,000 | $100,000 | ' |
Interest rate, stated percentage | ' | ' | ' | 5.25% |
Stock_Based_Compensation_Detai
Stock Based Compensation (Details) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock-based compensation expense | $1.10 | $1 |
Restricted Share Awards [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Fair value of share grants vested | 0.2 | 0.5 |
Total unvested restricted share awards (in shares) | 242,218 | ' |
Weighted average grant date fair value (in dollars per share) | $25.48 | ' |
Total compensation costs, non-vested restricted share awards | $3.10 | ' |
Total compensation cost not yet recognized, period for recognition (in months) | '18 months | ' |
Washington Real Estate Investment Trust 2007 Omnibus Long-Term Incentive Plan [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock based plan, aggregate number of shares authorized (in shares) | 2,000,000 | ' |
Stock based plan, period in effect (in years) | '10 years | ' |
Fair_Value_Disclosures_Financi
Fair Value Disclosures - Financial Assets and Liabilities Measured at Fair Value (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Assets: SERP | $3,382 | $3,290 |
Level 1 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Assets: SERP | 0 | 0 |
Level 2 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Assets: SERP | 3,382 | 3,290 |
Level 3 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Assets: SERP | $0 | $0 |
Fair_Value_Disclosures_Financi1
Fair Value Disclosures - Financial Assets and Liabilities Not Measured at Fair Value (Details) (USD $) | 3 Months Ended | ||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 |
Carrying Value | Carrying Value | Carrying Value | Carrying Value | Fair Value | Fair Value | Fair Value | Fair Value | ||
2445 M Street Note Receivable [Member] | 2445 M Street Note Receivable [Member] | 2445 M Street Note Receivable [Member] | 2445 M Street Note Receivable [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commercial paper, maturity | '90 | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents, Fair Value | ' | $62,080 | $130,343 | ' | ' | $62,080 | $130,343 | ' | ' |
Restricted Cash, Fair Value | ' | 107,039 | 9,189 | ' | ' | 107,039 | 9,189 | ' | ' |
2445 M Street note receivable, Fair Value | ' | ' | ' | 6,280 | 6,070 | ' | ' | 7,184 | 6,803 |
Mortgage notes payable, Fair Value | ' | 404,359 | 294,671 | ' | ' | 423,454 | 313,476 | ' | ' |
Notes payable, Fair Value | ' | $746,830 | $846,703 | ' | ' | $772,063 | $856,171 | ' | ' |
Earnings_per_Common_Share_Deta
Earnings per Common Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings Per Share [Abstract] | ' | ' |
(Loss) income from continuing operations | ($2,265) | $857 |
Allocation of earnings to unvested restricted share awards | -10 | -14 |
Adjusted (loss) income from continuing operations attributable to the controlling interests | -2,275 | 843 |
Income from discontinued operations, including gain on sale of real estate, net of taxes | 106,819 | 6,478 |
Allocation of earnings to unvested restricted share awards | -285 | -106 |
Adjusted income from discontinuing operations attributable to the controlling interests | 106,534 | 6,372 |
Adjusted net income attributable to the controlling interests | $104,259 | $7,215 |
Weighted average shares outstanding - basic (in shares) | 66,701 | 66,393 |
Effect of dilutive securities: Operating partnership units | 0 | 117 |
Effect of dilutive securities: Employee stock options and restricted share awards | 0 | 9 |
Weighted average shares outstanding - diluted (in shares) | 66,701 | 66,519 |
Earnings per common share, basic, Continuing operations (in dollars per share) | ($0.04) | $0.01 |
Earnings per common share, basic, Discontinued operations (in dollars per share) | $1.60 | $0.10 |
Net income per share (in dollars per share) | $1.56 | $0.11 |
Earnings per common share, diluted, Continuing operations (in dollars per share) | ($0.04) | $0.01 |
Earnings per common share, diluted, Discontinued operations (in dollars per share) | $1.60 | $0.10 |
Net income per share (in dollars per share) | $1.56 | $0.11 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
segment | |||
Segment Reporting Information [Line Items] | ' | ' | ' |
Number of reportable segments | 3 | ' | ' |
Real estate rental revenue | $68,611 | $64,560 | ' |
Real estate expenses | 26,342 | 22,554 | ' |
Net operating income | 42,269 | 42,006 | ' |
Depreciation and amortization | -22,753 | -21,123 | ' |
General and administrative | -4,429 | -3,862 | ' |
Acquisition costs | -3,045 | -213 | ' |
Interest expense | -14,530 | -16,190 | ' |
Other income | 223 | 239 | ' |
Income from operations of properties sold or held for sale | 546 | 3,283 | ' |
Gain on sale of real estate | 106,273 | 3,195 | 22,144 |
Net income | 104,554 | 7,335 | ' |
Less: Net income attributable to noncontrolling interests in subsidiaries | 0 | 0 | ' |
Net income attributable to the controlling interests | 104,554 | 7,335 | ' |
Capital expenditures | 10,386 | 10,209 | ' |
Total assets | 2,075,172 | 2,096,120 | 1,975,493 |
Office [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Real estate rental revenue | 39,064 | 37,393 | ' |
Real estate expenses | 15,696 | 13,599 | ' |
Net operating income | 23,368 | 23,794 | ' |
Capital expenditures | 8,703 | 7,575 | ' |
Total assets | 1,151,585 | 1,118,579 | ' |
Medical Office [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Real estate rental revenue | ' | 0 | ' |
Real estate expenses | ' | 0 | ' |
Net operating income | ' | 0 | ' |
Capital expenditures | ' | 1,077 | ' |
Total assets | ' | 325,281 | ' |
Retail [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Real estate rental revenue | 14,625 | 13,834 | ' |
Real estate expenses | 4,231 | 3,565 | ' |
Net operating income | 10,394 | 10,269 | ' |
Capital expenditures | 110 | 766 | ' |
Total assets | 341,134 | 351,967 | ' |
Multifamily [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Real estate rental revenue | 14,922 | 13,333 | ' |
Real estate expenses | 6,415 | 5,390 | ' |
Net operating income | 8,507 | 7,943 | ' |
Capital expenditures | 1,556 | 784 | ' |
Total assets | 392,531 | 250,680 | ' |
Corporate and Other [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Real estate rental revenue | 0 | 0 | ' |
Real estate expenses | 0 | 0 | ' |
Net operating income | 0 | 0 | ' |
Capital expenditures | 17 | 7 | ' |
Total assets | $189,922 | $49,613 | ' |
Subsequent_Event_Details
Subsequent Event (Details) (1775 Eye Street [Member], Subsequent Event, USD $) | 1 Months Ended |
In Millions, unless otherwise specified | 31-May-14 |
sqft | |
1775 Eye Street [Member] | Subsequent Event | ' |
Subsequent Event [Line Items] | ' |
Square Footage Of Real Estate Property Acquired | 185,000 |
Business Combination, Consideration Transferred | $104.50 |