Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended |
Sep. 30, 2013 | |
Document and Entity Information [Abstract] | ' |
Entity Registrant Name | 'ESSEX PORTFOLIO LP |
Entity Central Index Key | '0001053059 |
Current Fiscal Year End Date | '--12-31 |
Entity Well-known Seasoned Issuer | 'Yes |
Entity Voluntary Filers | 'No |
Entity Current Reporting Status | 'Yes |
Entity Filer Category | 'Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 0 |
Document Fiscal Year Focus | '2013 |
Document Fiscal Period Focus | 'Q3 |
Document Type | '10-Q |
Amendment Flag | 'false |
Document Period End Date | 30-Sep-13 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Rental properties: | ' | ' |
Land and land improvements | $1,057,355 | $1,003,171 |
Buildings and improvements | 4,237,557 | 4,030,501 |
Total Rental Properties | 5,294,912 | 5,033,672 |
Less: accumulated depreciation | -1,214,092 | -1,081,517 |
Net Real Estate | 4,080,820 | 3,952,155 |
Real estate under development | 45,804 | 66,851 |
Co-investments | 674,075 | 571,345 |
Total Real Estate | 4,800,699 | 4,590,351 |
Cash and cash equivalents-unrestricted | 9,509 | 18,606 |
Cash and cash equivalents-restricted | 46,485 | 23,520 |
Marketable securities | 89,899 | 92,713 |
Notes and other receivables | 67,628 | 66,163 |
Prepaid expenses and other assets | 49,270 | 35,003 |
Deferred charges, net | 22,112 | 20,867 |
Total assets | 5,085,602 | 4,847,223 |
Liabilities and Capital | ' | ' |
Mortgage notes payable | 1,495,521 | 1,565,599 |
Unsecured debt | 1,409,883 | 1,112,084 |
Lines of credit | 15,352 | 141,000 |
Accounts payable and accrued liabilities | 83,844 | 64,858 |
Construction payable | 6,936 | 5,392 |
Distributions payable | 50,486 | 45,052 |
Derivative liabilities | 3,161 | 6,606 |
Other liabilities | 22,366 | 22,167 |
Total liabilities | 3,087,549 | 2,962,758 |
Commitments and contingencies | ' | ' |
Cumulative convertible Series G preferred interest (liquidation value of $4,456) | 4,349 | 4,349 |
General Partner: | ' | ' |
Common equity (37,323,297 and 36,442,994 units issued and outstanding at September 30, 2013 and December 31, 2012, respectively) | 1,871,580 | 1,762,856 |
Preferred interest (liquidation value of $73,750) | 71,209 | 71,209 |
Total general partners capital | 1,942,789 | 1,834,065 |
Limited Partners: | ' | ' |
Common equity (2,146,293 and 2,122,381 units issued and outstanding at September 30, 2013 and December 31, 2012, respectively) | 45,854 | 45,593 |
Accumulated other comprehensive loss, net | -61,178 | -68,231 |
Total partners' capital | 1,927,465 | 1,811,427 |
Noncontrolling interest | 66,239 | 68,689 |
Total capital | 1,993,704 | 1,880,116 |
Total liabilities and capital | $5,085,602 | $4,847,223 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Condensed Consolidated Balance Sheets (Unaudited) [Abstract] | ' | ' |
Cumulative convertible Series G, Liquidation value | $4,456 | $4,456 |
General Partner: | ' | ' |
Common equity, Units issued (in shares) | 37,323,297 | 36,442,994 |
Common equity, Units outstanding (in shares) | 37,323,297 | 36,442,994 |
Preferred interest, Liquidation value | $73,750 | $73,750 |
Limited Partners: | ' | ' |
Common equity, Units issued (in shares) | 2,146,293 | 2,122,381 |
Common equity, Units outstanding (in shares) | 2,146,293 | 2,122,381 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues: | ' | ' | ' | ' |
Rental and other property | $152,945 | $134,518 | $448,318 | $388,642 |
Management and other fees from affiliates | 2,957 | 3,072 | 9,139 | 8,312 |
Total revenues | 155,902 | 137,590 | 457,457 | 396,954 |
Expenses: | ' | ' | ' | ' |
Property operating, excluding real estate taxes | 36,002 | 32,763 | 102,790 | 91,828 |
Real estate taxes | 14,561 | 12,310 | 42,852 | 35,326 |
Depreciation | 48,438 | 42,897 | 143,320 | 125,137 |
General and administrative | 6,075 | 5,276 | 18,925 | 16,440 |
Cost of management and other fees | 1,613 | 1,642 | 5,047 | 4,893 |
Total expenses | 106,689 | 94,888 | 312,934 | 273,624 |
Earnings from operations | 49,213 | 42,702 | 144,523 | 123,330 |
Interest expense before amortization | -26,187 | -25,064 | -77,724 | -74,380 |
Amortization expense | -3,005 | -2,927 | -8,937 | -8,681 |
Interest and other income | 2,387 | 3,003 | 9,326 | 10,869 |
Equity income in co-investments | 40,802 | 3,547 | 52,295 | 8,998 |
Gain (loss) on early retirement of debt | -178 | -1,211 | 846 | -2,661 |
Gain on sale of land | 0 | 0 | 1,503 | 0 |
Gain on remeasurement of co-investment | 0 | 0 | 0 | 21,947 |
Income from continuing operations | 63,032 | 20,050 | 121,832 | 79,422 |
Income from discontinued operations | 12,843 | 172 | 13,321 | 10,528 |
Net income | 75,875 | 20,222 | 135,153 | 89,950 |
Net income attributable to noncontrolling interest | -1,730 | -1,558 | -5,075 | -4,658 |
Net income attributable to controlling interest | 74,145 | 18,664 | 130,078 | 85,292 |
Preferred interest distributions - Series G & H | -1,368 | -1,368 | -4,104 | -4,104 |
Net income available to common units | 72,777 | 17,296 | 125,974 | 81,188 |
Comprehensive income | 76,112 | 16,462 | 142,206 | 86,034 |
Comprehensive income attributable to noncontrolling interest | -1,730 | -1,558 | -5,075 | -4,658 |
Comprehensive income attributable to controlling interest | $74,382 | $14,904 | $137,131 | $81,376 |
Basic: | ' | ' | ' | ' |
Income from continuing operations available to common units (in dollars per share) | $1.52 | $0.45 | $2.86 | $1.91 |
Income from discontinued operations (in dollars per share) | $0.32 | $0.01 | $0.34 | $0.29 |
Net income available to common units (in dollars per share) | $1.84 | $0.46 | $3.20 | $2.20 |
Weighted average number of common units outstanding during the period (in shares) | 39,467,492 | 37,836,555 | 39,333,100 | 36,976,298 |
Diluted: | ' | ' | ' | ' |
Income from continuing operations available to common units (in dollars per share) | $1.52 | $0.44 | $2.86 | $1.91 |
Income from discontinued operations (in dollars per share) | $0.32 | $0.01 | $0.34 | $0.28 |
Net income available to common units (in dollars per share) | $1.84 | $0.45 | $3.20 | $2.19 |
Weighted average number of common units outstanding during the period (in shares) | 39,583,913 | 37,935,449 | 39,421,896 | 37,074,063 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statement of Equity (Unaudited) (USD $) | General Partner [Member] | General Partner [Member] | Limited Partners [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Noncontrolling Interest [Member] | Total |
In Thousands, unless otherwise specified | Common Equity [Member] | Preferred Equity [Member] | Common Equity [Member] | |||
Balances at Dec. 31, 2012 | $1,762,856 | $71,209 | $45,593 | ($68,231) | $68,689 | $1,880,116 |
Balances (in shares) at Dec. 31, 2012 | 36,443 | ' | 2,122 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 118,937 | 4,104 | 7,037 | 0 | 5,075 | 135,153 |
Reversal of unrealized gains upon the sale of marketable securities | 0 | 0 | 0 | -1,767 | 0 | -1,767 |
Changes in fair value of cash flow hedges and amortization of gain on settlement of swap | 0 | 0 | 0 | 9,976 | ' | 9,976 |
Changes in fair value of marketable securities | 0 | 0 | 0 | -1,156 | 0 | -1,156 |
Issuance of common stock under | ' | ' | ' | ' | ' | ' |
Stock and unit based compensation plans | 6,411 | 0 | 0 | 0 | 0 | 6,411 |
Stock and unit based compensation plans (in shares) | 63 | ' | 0 | ' | ' | ' |
Sale of common stock by the general partner | 122,905 | 0 | 0 | 0 | 0 | 122,905 |
Sale of common stock by the general partner (in shares) | 817 | ' | 0 | ' | ' | ' |
Stock and unit based compensation costs | -759 | 0 | 1,626 | 0 | 0 | 867 |
Stock and unit based compensation costs (in shares) | 0 | ' | 24 | ' | ' | ' |
Redemptions | 0 | 0 | -528 | 0 | -1,291 | -1,819 |
Distributions to noncontrolling interest | 0 | 0 | 0 | 0 | -6,234 | -6,234 |
Distributions declared | -138,770 | -4,104 | -7,874 | 0 | 0 | -150,748 |
Balances at Sep. 30, 2013 | $1,871,580 | $71,209 | $45,854 | ($61,178) | $66,239 | $1,993,704 |
Balances (in shares) at Sep. 30, 2013 | 37,323 | ' | 2,146 | ' | ' | ' |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net income | $135,153 | $89,950 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Gain on sale of marketable securities | -1,767 | -521 |
Gain on remeasurement of co-investment | 0 | -21,947 |
Operating partnership's share of gain on the sales of co-investment | -41,252 | 0 |
Gain on the sales of real estate | -14,161 | -10,870 |
(Gain) loss on early retirement of debt | -846 | 2,661 |
Co-investments | -1,892 | 5,141 |
Amortization expense | 8,955 | 8,681 |
Amortization of discount on notes receivables | -844 | -1,373 |
Amortization of discount on marketable securities | -4,664 | -3,808 |
Depreciation | 143,662 | 125,669 |
Equity-based compensation | 3,137 | 2,880 |
Changes in operating assets and liabilities: | ' | ' |
Prepaid expenses and other assets | -19,689 | -3,653 |
Accounts payable and accrued liabilities | 19,091 | 26,167 |
Other liabilities | 199 | 358 |
Net cash provided by operating activities | 225,082 | 219,335 |
Additions to real estate: | ' | ' |
Acquisitions of real estate | -205,539 | -157,011 |
Improvements to recent acquisitions | -14,374 | -6,662 |
Redevelopment | -32,488 | -31,277 |
Revenue generating capital expenditures | -2,165 | -4,405 |
Lessor required capital expenditures | -4,320 | 0 |
Non-revenue generating capital expenditures | -21,885 | -15,776 |
Acquisitions of and additions to real estate under development | -13,963 | -22,505 |
Acquisition of membership interest in co-investment | 0 | -85,000 |
Dispositions of real estate | 33,666 | 27,800 |
Changes in restricted cash and deposits | -17,246 | -13,370 |
Purchases of marketable securities | -16,442 | -73,735 |
Sales and maturities of marketable securities | 22,830 | 6,322 |
Purchases of and advances under notes and other receivables | -56,750 | 0 |
Collections of notes and other receivables | 53,438 | 7,977 |
Contributions to co-investments | -150,852 | -158,769 |
Distributions from co-investments | 117,103 | 8,345 |
Net cash used in investing activities | -308,987 | -518,066 |
Cash flows from financing activities: | ' | ' |
Borrowings under debt agreements | 641,892 | 1,347,973 |
Repayment of debt | -536,926 | -1,196,977 |
Additions to deferred charges | -3,836 | -6,415 |
Equity related issuance cost | -616 | -309 |
Net proceeds from stock options exercised | 4,756 | 2,169 |
Net proceeds from issuance of common stock | 122,905 | 268,858 |
Contributions from noncontrolling interest | 0 | 2,400 |
Distributions to noncontrolling interest | -6,234 | -12,875 |
Redemption of limited partners common units and noncontrolling interest | -1,819 | -1,595 |
Common units and preferred interests distributions paid | -145,314 | -115,444 |
Net cash provided by financing activities | 74,808 | 287,785 |
Net decrease in cash and cash equivalents | -9,097 | -10,946 |
Cash and cash equivalents at beginning of year | 18,606 | 12,889 |
Cash and cash equivalents at end of period | 9,509 | 1,943 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for interest, net of $12.7 million, and $6.8 million capitalized in 2013 and 2012, respectively | 76,596 | 68,555 |
Supplemental disclosure of noncash investing and financing activities: | ' | ' |
Transfer from real estate under development to rental properties | 68 | 5,648 |
Transfer from real estate under development to co-investments | 27,906 | 148,053 |
Mortgage notes assumed in connection with purchases of real estate including the loan premiums recorded | 0 | 71,340 |
Contribution of note receivable to co-investment | 0 | 12,325 |
Change in accrual of distributions | 5,434 | 4,766 |
Change in fair value of derivative liabilities | 3,649 | 5,100 |
Change in fair value of marketable securities | 2,958 | 4,542 |
Change in construction payable | $1,544 | $2,239 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for interest, capitalized | $12.70 | $6.80 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Organization and Basis of Presentation [Abstract] | ' | ||||||||||||
Organization and Basis of Presentation | ' | ||||||||||||
(1) Organization and Basis of Presentation | |||||||||||||
The accompanying unaudited condensed consolidated financial statements present the accounts of Essex Portfolio, L.P. (the “Operating Partnership”) and its subsidiaries, prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q. In the opinion of management, all adjustments necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented have been included and are normal and recurring in nature. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Operating Partnership's Amendment No. 1 on Form S-4 filed with the SEC on March 12, 2013. | |||||||||||||
All significant intercompany balances and transactions have been eliminated in the condensed consolidated financial statements. Certain reclassifications have been made to conform to the current year’s presentation. Such reclassification had no effect on previously reported financial statements. | |||||||||||||
The unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2013 and 2012 include the accounts of the Operating Partnership. Essex Propery Trust, Inc. (the “Company”) is the sole general partner in the Operating Partnership, with a 94.6% general partnership interest as of September 30, 2013. Total Operating Partnership limited partner common units outstanding were 2,146,293 and 2,122,381 as of September 30, 2013 and December 31, 2012, respectively, and the redemption value of the units, based on the closing price of the Company’s common stock totaled $317.0 million and $311.2 million, as of September 30, 2013 and December 31, 2012, respectively. | |||||||||||||
As of September 30, 2013, the Operating Partnership owned or had ownership interests in 163 apartment communities, aggregating 34,416 units, excluding the Operating Partnership’s ownership in preferred interest co-investments, (collectively, the “Communities”, and individually, a “Community”), five commercial buildings and eleven active development projects (collectively, the “Portfolio”). The Communities are located in Southern California (Los Angeles, Orange, Riverside, San Diego, Santa Barbara, and Ventura counties), Northern California (the San Francisco Bay Area) and the Seattle metropolitan area. | |||||||||||||
Marketable Securities | |||||||||||||
The Operating Partnership reports its available for sale securities at fair value, based on quoted market prices (Level 2 for the unsecured bonds and Level 1 for the common stock and investment funds, as defined by the Financial Accounting Standards Board (“FASB”) standard for fair value measurements as discussed later in Note 1), and any unrealized gain or loss is recorded as other comprehensive income (loss). Realized gains and losses, interest and dividend income, and amortization of purchase discounts are included in interest and other income on the condensed consolidated statement of operations and comprehensive income. | |||||||||||||
As of September 30, 2013 and December 31, 2012, marketable securities consisted primarily of investment-grade unsecured bonds, common stock, investments in mortgage backed securities and investment funds that invest in U.S. treasury or agency securities. As of September 30, 2013 and December 31, 2012, the Operating Partnership classified its investments in mortgage backed securities, which mature in November 2019 and September 2020, as held to maturity, and accordingly, these securities are stated at their amortized cost. | |||||||||||||
As of September 30, 2013 and December 31, 2012 marketable securities consist of the following ($ in thousands): | |||||||||||||
30-Sep-13 | |||||||||||||
Cost/ | Gross | Carrying Value | |||||||||||
Amortized | Unrealized | ||||||||||||
Cost | Gain (Loss) | ||||||||||||
Available for sale: | |||||||||||||
Investment-grade unsecured bonds | $ | 15,378 | $ | 647 | $ | 16,025 | |||||||
Investment funds - US treasuries | 5,020 | 3 | 5,023 | ||||||||||
Common stock | 13,104 | (975 | ) | 12,129 | |||||||||
Held to maturity: | |||||||||||||
Mortgage backed securities | 56,722 | - | 56,722 | ||||||||||
Total | $ | 90,224 | $ | (325 | ) | $ | 89,899 | ||||||
31-Dec-12 | |||||||||||||
Cost/ | Gross | Carrying Value | |||||||||||
Amortized | Unrealized | ||||||||||||
Cost | Gain | ||||||||||||
Available for sale: | |||||||||||||
Investment-grade unsecured bonds | $ | 15,475 | $ | 826 | $ | 16,301 | |||||||
Investment funds - US treasuries | 3,788 | 1 | 3,789 | ||||||||||
Common stock | 18,917 | 1,704 | 20,621 | ||||||||||
Held to maturity: | |||||||||||||
Mortgage backed securities | 52,002 | - | 52,002 | ||||||||||
Total | $ | 90,182 | $ | 2,531 | $ | 92,713 | |||||||
The Operating Partnership uses the specific identification method to determine the cost basis of a security sold and to reclassify amounts from accumulated other comprehensive income for securities sold. For the three months ended September 30, 2013 and 2012, there were no sales of available for sale securities. For the nine months ended September 30, 2013, and 2012, the proceeds from sales of available for sale securities totaled $20.3 million and $6.3 million, respectively, which resulted in gains of $1.8 million and $0.5 million, respectively. | |||||||||||||
Variable Interest Entities | |||||||||||||
The Operating Partnership consolidates 19 DownREIT limited partnerships (comprising twelve communities) since the Operating Partnership is the primary beneficiary of these variable interest entities (“VIEs”). Total DownREIT units outstanding were 1,011,071 and 1,039,431 as of September 30, 2013 and December 31, 2012, respectively, and the redemption value of the units, based on the closing price of the Company’s common stock totaled $149.3 million and $152.4 million, as of September 30, 2013 and December 31, 2012, respectively. The consolidated total assets and liabilities related to these VIEs, net of intercompany eliminations, were approximately $201.6 million and $185.5 million, respectively, as of September 30, 2013 and $201.1 million and $178.6 million, respectively, as of December 31, 2012. Interest holders in VIEs consolidated by the Operating Partnership are allocated income equal to the cash payments made to those interest holders. The remaining results of operations are allocated to the Operating Partnership. As of September 30, 2013 and December 31, 2012, the Operating Partnership did not have any other VIEs of which it was deemed to be the primary beneficiary. | |||||||||||||
Equity Based Compensation | |||||||||||||
The Operating Partnership accounts for equity based compensation using the fair value method of accounting. The estimated fair value of stock options granted by the Company is being amortized over the vesting period of the stock options. The estimated grant date fair values of the long term incentive plan units are being amortized over the expected service periods. | |||||||||||||
Stock-based compensation expense for options and restricted stock totaled $0.5 million and $0.4 million for the three months ended September 30, 2013 and 2012, respectively, and $1.6 million and $1.2 million for the nine months ended September 30, 2013 and 2012, respectively. The intrinsic value of the stock options exercised during the three months ended September 30, 2013 and 2012 totaled $0.1 million and $0.5 million, respectively, and $2.9 million and $2.4 million for the nine months ended September 30, 2013 and 2012, respectively. As of September 30, 2013, the intrinsic value of the stock options outstanding totaled $11.2 million. As of September 30, 2013, total unrecognized compensation cost related to unvested share-based compensation granted under the stock option and restricted stock plans totaled $4.7 million. The cost is expected to be recognized over a weighted-average period of 1 to 5 years for the stock option plans and is expected to be recognized straight-line over a period of 1 to 7 years for the restricted stock awards. | |||||||||||||
The Operating Partnership has adopted an incentive program involving the issuance of Series Z-1 Incentive Units of limited partnership interest in the Operating Partnership. Stock-based compensation expense for Z-1 Units totaled $0.5 million and $0.5 million for the three months ended September 30, 2013 and 2012, respectively, and $1.5 million and $1.6 million for the nine months ended September 30, 2013 and 2012, respectively. Stock-based compensation for Z-1 units capitalized totaled $0.1 million for the three months ended September 30, 2013, and 2012 and $0.3 million and $0.4 million for the nine months ended September 30, 2013, and 2012, respectively. As of September 30, 2013, the intrinsic value of the Z-1 Units subject to future vesting totaled $15.8 million. As of September 30, 2013, total unrecognized compensation cost related to Z-1 Units subject to future vesting totaled $5.6 million. The unamortized cost is expected to be recognized up to 14 years subject to the achievement of the stated performance criteria. | |||||||||||||
Fair Value of Financial Instruments | |||||||||||||
Management believes that the carrying amounts of outstanding lines of credit, notes receivable and notes and other receivables approximate fair value as of September 30, 2013 and December 31, 2012, because interest rates, yields and other terms for these instruments are consistent with yields and other terms currently available for similar instruments. Management has estimated that the fair value of the Operating Partnership’s $2.37 billion of fixed rate debt, including unsecured bonds, at September 30, 2013 is approximately $2.43 billion and the fair value of the Operating Partnership’s $537.2 million of variable rate debt, excluding borrowings under the lines of credit, at September 30, 2013 is $517.5 million based on the terms of existing mortgage notes payable, unsecured bonds and variable rate demand notes compared to those available in the marketplace. Management believes that the carrying amounts of cash and cash equivalents, restricted cash, accounts payable and accrued liabilities, construction payables, other liabilities and dividends payable approximate fair value as of September 30, 2013 due to the short-term maturity of these instruments. Marketable securities, except mortgage backed securities, and derivatives are carried at fair value as of September 30, 2013. | |||||||||||||
At December 31, 2013, the Operating Partnership’s investments in mortgage backed securities had a carrying value of $56.7 million and the Operating Partnership estimated the fair value to be approximately $83.8 million. At December 31, 2012, the estimated fair values of the mortgage backed securities were approximately equal to the carrying values. The Operating Partnership determines the fair value of the mortgage backed securities based on unobservable inputs (level 3 of the fair value hierarchy) considering the assumptions that market participants would make in valuing these securities. Assumptions such as estimated default rates and discount rates are used to determine expected, discounted cash flows to estimate the fair value. | |||||||||||||
Capitalization of Costs | |||||||||||||
The Operating Partnership’s capitalized internal costs related to development and redevelopment projects totaled $1.8 million and $1.5 million during the three months ended September 30, 2013 and 2012, respectively, and $5.1 million and $4.5 million during the nine months ended September 30, 2013 and 2012, respectively, most of which relates to development projects. These totals include capitalized salaries of $0.8 million and $0.5 million for the three months ended September 30, 2013 and 2012, respectively, and $2.0 million and $1.9 million for the nine months ended September 30, 2013 and 2012, respectively. The Operating Partnership capitalizes leasing commissions associated with the lease-up of a development community and amortizes the costs over the life of the leases. The amounts capitalized are immaterial for all periods presented. | |||||||||||||
Co-investments | |||||||||||||
The Operating Partnership owns investments in joint ventures (“co-investments”) in which it has significant influence, but its ownership interest does not meet the criteria for consolidation in accordance with the accounting standards. Therefore, the Operating Partnership accounts for these investments using the equity method of accounting. Under the equity method of accounting, the investment is carried at the cost of assets contributed, plus the Operating Partnership’s equity in earnings less distributions received and the Operating Partnership’s share of losses. The significant accounting policies of the Operating Partnership’s co-investment entities are consistent with those of the Operating Partnership in all material respects. For preferred equity investments the Operating Partnership recognizes its preferred interest as equity in earnings. | |||||||||||||
Upon the acquisition of a controlling interest of a co-investment, the co-investment entity is consolidated and a gain or loss is recognized upon the remeasurement of co-investments in the consolidated statement of operations equal to the amount by which the fair value of the co-investment interest the Operating Partnership previously owned exceeds its carrying value. | |||||||||||||
A majority of the co-investments, excluding the preferred equity investments, compensate the Operating Partnership for its asset management services and may provide promote distributions if certain financial return benchmarks are achieved. Asset management fees are recognized when earned, and promote fees are recognized when the earnings events have occurred and the amount is determinable and collectible. | |||||||||||||
Changes in Accumulated Other Comprehensive Loss Net, by Component | |||||||||||||
Change in fair | Unrealized | Total | |||||||||||
value and amortization | gains/(losses) on | ||||||||||||
of derivatives | available for sale | ||||||||||||
securities | |||||||||||||
Balance at December 31, 2012 | $ | (70,762 | ) | $ | 2,531 | $ | (68,231 | ) | |||||
Other comprehensive income (loss) before reclassification | 3,612 | (1,156 | ) | 2,456 | |||||||||
Amounts reclassified from accumulated other comprehensive loss | 6,364 | (1,767 | ) | 4,597 | |||||||||
Net other comprehensive income (loss) | 9,976 | (2,923 | ) | 7,053 | |||||||||
Balance at September 30, 2013 | $ | (60,786 | ) | $ | (392 | ) | $ | (61,178 | ) | ||||
Amounts reclassified from accumulated other comprehensive loss in connection with derivatives are recorded in interest expense before amortization on the condensed consolidated statement of operations and comprehensive income. Realized gains and losses on available for sale securities are included in interest and other income on the condensed consolidated statement of operations and comprehensive income. | |||||||||||||
Accounting Estimates | |||||||||||||
The preparation of condensed consolidated financial statements, in accordance with U.S. generally accepted accounting principles, requires the Operating Partnership to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. On an on-going basis, the Operating Partnership evaluates its estimates, including those related to acquiring, developing and assessing the carrying values of its real estate portfolio, its investments in and advances to joint ventures and affiliates, and its notes receivables. The Operating Partnership bases its estimates on historical experience, current market conditions, and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may vary from those estimates and those estimates could be different under different assumptions or conditions. |
Significant_Transactions_Durin
Significant Transactions During the Third Quarter of 2013 and Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Significant Transactions During the Third Quarter of 2013 and Subsequent Events [Abstract] | ' |
Significant Transactions During the First Quarter of 2013 and Subsequent Events | ' |
(2) Significant Transactions During the Third Quarter of 2013 and Subsequent Events | |
Acquisitions | |
In September 2013, the Operating Partnership purchased Slater 116, located in Kirkland, Washington for $29.6 million. Construction of the 108 apartment homes and 10,100 square feet of retail space was completed in August 2013. The community is currently 44% occupied or leased and is expected to have stabilized operations in early 2014. | |
In October 2013, the Operating Partnership purchased Vox Apartments, located in Seattle, Washington, for $22.2 million. The community was built in 2013 and contains 58 apartment homes. The property is stabilized. Vox Apartments is located in the Capital Hill district in close proximity to other Essex communities. | |
Dispositions | |
During the third quarter of 2013, the Essex Apartment Value Fund II L.P. (“Fund II”) of which the Operating Partnership has a 28.2% ownership interest, sold four properties for gross proceeds of $294.0 million. In connection with the sale, Fund II incurred a prepayment penalty on debt of which the Operating Partnership’s pro rata share was $0.2 million. The total GAAP gain on the sale was $137.8 million of which the Operating Partnership’s share is $36.4 million, net of internal disposition costs. There are two remaining properties in the Fund II portfolio that are expected to be sold in 2014. | |
In August 2013, the Operating Partnership sold Linden Square, located in Seattle, Washington, for $25.3 million. The net proceeds from the sale were used as a 1031 exchange for the Slater 116 acquisition noted above. The total GAAP gain on the sale was $12.7 million. | |
Secured Debt | |
In August 2013, the Operating Partnership replaced the construction loan on Expo, located in Seattle, Washington with a new 7 year, $45.0 million term loan. The loan has a variable interest rate of 150 basis points over LIBOR. The Operating Partnership has entered into a $45.0 million swap to fix the effective rate at 3.7% for the entire seven year period. | |
During the third quarter of 2013, the Operating Partnership repaid a secured loan totaling $10.1 million. At the end of the quarter, the Operating Partnership had $609.6 million in undrawn capacity on its unsecured credit facilities. Subsequent to the quarter end, the Operating Partnership repaid a secured loan totaling $19.4 million. | |
Structured Financing | |
In August 2013, the Operating Partnership made an $8.5 million preferred equity investment in a multifamily development project located in San Jose, California. The investment has a preferred return of 12% for a 3 year term. | |
During the third quarter of 2013, the Operating Partnership restructured the terms of a preferred equity investment on a property located in Anaheim, California, reducing the rate from 13% to 9%, while extending the maximum term by one year. The Operating Partnership recorded $0.4 million of income related to the restructured investment. |
Coinvestments
Co-investments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Co-investments [Abstract] | ' | ||||||||||||||||
Co-investments | ' | ||||||||||||||||
(3) Co-investments | |||||||||||||||||
The Operating Partnership has co-investments, which are accounted for under the equity method. The co-investments own, operate and develop apartment communities. The following table details the Operating Partnership's co-investments (dollars in thousands): | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Membership interest in Wesco I | $ | 142,362 | $ | 143,874 | |||||||||||||
Membership interest in Wesco III | 37,766 | 9,941 | |||||||||||||||
Partnership interest in Fund II | 4,301 | 53,601 | |||||||||||||||
Membership interest in a limited liability company that owns Expo | 18,356 | 18,752 | |||||||||||||||
Total operating co-investments | 202,785 | 226,168 | |||||||||||||||
Membership interests in limited liability companies that own and are developing Epic, Connolly Station, Mosso I & II, Elkhorn, and The Village | 294,573 | 186,362 | |||||||||||||||
Membership interests in limited liability companies that own and are developing The Huxley and The Dylan | 17,894 | 16,552 | |||||||||||||||
Membership interest in a limited liability company that owns and is developing One South Market | 17,009 | - | |||||||||||||||
Total development co-investments | 329,476 | 202,914 | |||||||||||||||
Membership interest in Wesco II that owns a preferred equity interest in Parkmerced with a preferred return of 10.1% | 93,983 | 91,843 | |||||||||||||||
Preferred interest in related party limited liability company that owns Sage at Cupertino with a preferred return of 9.5% | 16,159 | 14,438 | |||||||||||||||
Preferred interest in a related party limited liability company that owns Madison Park at Anaheim with a preferred return of 9% | 13,824 | 13,175 | |||||||||||||||
Preferred interest in related party limited liability company that owns an apartment development in Redwood City with a preferred return of 12% | 9,234 | - | |||||||||||||||
Preferred interest in a limited liability company that owns an apartment development in San Jose with a preferred return of 12% | 8,614 | - | |||||||||||||||
Preferred interests in limited liability companies that own apartment communities in downtown Los Angeles with preferred returns of 9% and 10% repaid in 2013 | - | 22,807 | |||||||||||||||
Total preferred interest investments | 141,814 | 142,263 | |||||||||||||||
Total co-investments | $ | 674,075 | $ | 571,345 | |||||||||||||
In January 2013, the Operating Partnership invested $8.6 million as a preferred equity interest investment in an apartment development in Redwood City, California. The investment has a preferred return of 12% and matures in January 2016. | |||||||||||||||||
In March 2013, the Operating Partnership received the redemption of $9.7 million of preferred equity related to two properties located in downtown Los Angeles. The Operating Partnership recorded $0.4 million in redemption penalties due to the early redemption of these preferred equity investments. | |||||||||||||||||
In June 2013, the Operating Partnership received the redemption of $13.1 million of preferred equity related to a property located in downtown Los Angeles. The Operating Partnership recorded $0.5 million of income from redemption penalties due to the early redemption of these preferred equity investments. | |||||||||||||||||
In August 2013, the Operating Partnership made an $8.5 million preferred equity investment in a multifamily development project located in San Jose, California. The investment has a preferred return of 12% and matures in 3 years. | |||||||||||||||||
During the third quarter of 2013, the Operating Partnership restructured the terms of a preferred equity investment on a property located in Anaheim, California, reducing the rate from 13% to 9%, while extending the maximum term by one year. The Operating Partnership recorded $0.4 million of income related to the restructured investment. | |||||||||||||||||
The combined summarized balance sheet and statements of operations for co-investments are as follows (dollars in thousands). | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Balance sheets: | |||||||||||||||||
Rental properties and real estate under development | $ | 1,698,072 | $ | 1,745,147 | |||||||||||||
Other assets | 86,081 | 168,061 | |||||||||||||||
Total assets | $ | 1,784,153 | $ | 1,913,208 | |||||||||||||
Debt | $ | 651,818 | $ | 820,895 | |||||||||||||
Other liabilities | 114,405 | 91,922 | |||||||||||||||
Equity | 1,017,930 | 1,000,391 | |||||||||||||||
Total liabilities and equity | $ | 1,784,153 | $ | 1,913,208 | |||||||||||||
Operating Partnership's share of equity | $ | 674,075 | $ | 571,345 | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Statements of operations: | |||||||||||||||||
Property revenues | $ | 24,796 | $ | 34,425 | $ | 78,913 | $ | 96,981 | |||||||||
Property operating expenses | (10,170 | ) | (12,686 | ) | (29,872 | ) | (35,852 | ) | |||||||||
Net property operating income | 14,626 | 21,739 | 49,041 | 61,129 | |||||||||||||
Gain on sale of real estate | 137,845 | - | 146,663 | - | |||||||||||||
Interest expense | (6,052 | ) | (9,453 | ) | (18,924 | ) | (25,790 | ) | |||||||||
General and administrative | (1,419 | ) | (916 | ) | (4,472 | ) | (2,632 | ) | |||||||||
Depreciation and amortization | (8,718 | ) | (12,821 | ) | (29,314 | ) | (35,593 | ) | |||||||||
Net (loss) income | $ | 136,282 | $ | (1,451 | ) | $ | 142,994 | $ | (2,886 | ) | |||||||
Operating Partnership's share of net income | $ | 40,802 | $ | 3,547 | $ | 52,295 | $ | 8,998 | |||||||||
Notes_and_Other_Receivables
Notes and Other Receivables | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Notes and Other Receivables [Abstract] | ' | ||||||||
Notes and Other Receivables | ' | ||||||||
(4) Notes and Other Receivables | |||||||||
Notes receivable secured by real estate, and other receivables consist of the following as of September 30, 2013 and December 31, 2012 (dollars in thousands): | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Note receivable, secured, bearing interest at 4.0%, due December 2014 (1) | $ | 3,212 | $ | 3,212 | |||||
Notes and other receivables from affiliates (2) | 60,820 | 28,896 | |||||||
Other receivables | 3,596 | 3,785 | |||||||
Note receivable, secured, bearing interest at 8.0%, paid in full in May 2013 | - | 971 | |||||||
Note receivable, secured, bearing interest at 8.8%, paid in full March 2013 | - | 10,800 | |||||||
Note receivable, secured, effective interest at 9.6%, paid in full March 2013 | - | 18,499 | |||||||
$ | 67,628 | $ | 66,163 | ||||||
-1 | The borrower funds an impound account for capital replacement. | ||||||||
-2 | During the second quarter of 2013, the Operating Partnership provided short-term bridge loans to Fund II and Wesco III aggregating $42.4 million and $56.8 million, respectively, at rates of LIBOR + 1.75% and LIBOR + 2.50%, respectively. In July 2013, Fund II repaid the $42.4 million loan. | ||||||||
During the nine months ended September 30, 2013, the Operating Partnership received the repayment of three notes receivables totaling $30.5 million. One of the notes was repaid early, and as such the Operating Partnership recorded $0.8 million of income related to a change in estimate on the discount to the note receivable. | |||||||||
In March 2013, Wesco III repaid the Operating Partnership for a $26.0 million short-term bridge loan to assist with the purchase of Haver Hill. Wesco III used the proceeds from a $27.3 million loan secured by Haver Hill at 3.1% for a term of seven years to repay the bridge loan. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
(5) Related Party Transactions | |
Fees earned from affiliates include management, development and redevelopment fees from co-investments of $3.0 million and $2.9 million during the three months ended September 30, 2013 and 2012, respectively, and $9.1 million and $7.9 million during the nine months ended September 30, 2013 and 2012, respectively. All of these fees are net of intercompany amounts eliminated by the Operating Partnership. | |
The Company’s Chairman and founder, Mr. George Marcus, is the Chairman of The Marcus & Millichap Company (“TMMC”), which is a holding company for certain real estate brokerage services and other subsidiary companies. Fund II paid a brokerage commission totaling $0.6 million to an affiliate of TMMC related to the sale of a property in July 2013. No brokerage commissions were paid to TMMC by the Operating Partnership during the three and nine months ended September 30, 2013 and 2012, respectively. | |
As described in Note 3, the Operating Partnership restructured the terms of a preferred equity investment on a property located in Anaheim, California, reducing the rate from 13% to 9%, while extending the maximum term by one year. The Operating Partnership recorded $0.4 million of income related to the restructured investment. The entity that owns the property is an affiliate of TMMC. Independent members of the Company’s Board of Directors that serve on the Nominating and Corporate Governance and Audit Committees approved the restructuring of the investment in this entity. | |
In January 2013, the Operating Partnership invested $8.6 million as a preferred equity interest investment in an entity affiliated with TMMC that owns an apartment development in Redwood City, California. Independent members of the Company’s Board of Directors that serve on the Nominating and Corporate Governance and Audit Committees approved the investment in this entity. | |
As described in Note 4, the Operating Partnership has provided short-term bridge loans to affiliates. As of July 31, 2013, two loans have been repaid and two loans remain outstanding totaling $56.8 million. The bridge loans to Wesco III are expected to be repaid by December 31, 2013. |
Unsecured_Debt_and_Lines_of_Cr
Unsecured Debt and Lines of Credit | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Unsecured Debt and Lines of Credit [Abstract] | ' | ||||||||||||
Unsecured Debt Lines of Credit | ' | ||||||||||||
(6) Unsecured Debt and Lines of Credit | |||||||||||||
Unsecured debt and lines of credit consist of the following as of September 30, 2013 and December 31, 2012 ($ in thousands): | |||||||||||||
Weighted Average | |||||||||||||
September 30, | December 31, | Maturity | |||||||||||
2013 | 2012 | In Years | |||||||||||
Bonds private placement - fixed rate | $ | 465,000 | $ | 465,000 | 5.5 | ||||||||
Term loan - variable rate | 350,000 | 350,000 | 3.4 | ||||||||||
Bonds public offering - fixed rate | 594,883 | 297,084 | 9.2 | ||||||||||
Unsecured debt | 1,409,883 | 1,112,084 | |||||||||||
Lines of credit | 15,352 | 141,000 | 0.3 | ||||||||||
Total unsecured debt and lines of credit | $ | 1,425,235 | $ | 1,253,084 | |||||||||
Weighted average interest rate on fixed rate unsecured bonds | 4 | % | 4.2 | % | |||||||||
Weighted average interest rate on variable rate term loan | 2.5 | % | 2.7 | % | |||||||||
Weighted average interest rate on line of credit | 2.2 | % | 2.3 | % | |||||||||
In April 2013, the Operating Partnership issued $300 million aggregate principal amount of its 3.25% Senior Notes due on May 1, 2023 and such amount is included in the line item “Bonds public offering-fixed rate”, in the table above. |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Information [Abstract] | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
(7) Segment Information | |||||||||||||||||
The Operating Partnership defines its reportable operating segments as the three geographical regions in which its apartment communities are located: Southern California, Northern California and Seattle Metro. Excluded from segment revenues are properties classified in discontinued operations, management and other fees from affiliates, and interest and other income. Non-segment revenues and net operating income included in the following schedule also consist of revenue generated from commercial properties. Other non-segment assets include real estate under development, co-investments, cash and cash equivalents, marketable securities, notes and other receivables, prepaid expenses and other assets and deferred charges. | |||||||||||||||||
The revenues, net operating income, and assets for each of the reportable operating segments are summarized as follows for the three and nine months ended September 30, 2013 and 2012 (dollars in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Revenues: | |||||||||||||||||
Southern California | $ | 67,114 | $ | 64,339 | $ | 199,177 | $ | 184,255 | |||||||||
Northern California | 54,755 | 43,605 | 158,614 | 127,797 | |||||||||||||
Seattle Metro | 27,212 | 23,559 | 79,443 | 67,436 | |||||||||||||
Other real estate assets | 3,864 | 3,015 | 11,084 | 9,154 | |||||||||||||
Total property revenues | $ | 152,945 | $ | 134,518 | $ | 448,318 | $ | 388,642 | |||||||||
Net operating income: | |||||||||||||||||
Southern California | $ | 44,084 | $ | 41,932 | $ | 132,983 | $ | 122,868 | |||||||||
Northern California | 37,822 | 29,572 | 109,567 | 87,740 | |||||||||||||
Seattle Metro | 18,047 | 15,411 | 52,453 | 44,481 | |||||||||||||
Other real estate assets | 2,429 | 2,530 | 7,673 | 6,399 | |||||||||||||
Total net operating income | 102,382 | 89,445 | 302,676 | 261,488 | |||||||||||||
Management and other fees | 2,957 | 3,072 | 9,139 | 8,312 | |||||||||||||
Depreciation | (48,438 | ) | (42,897 | ) | (143,320 | ) | (125,137 | ) | |||||||||
General and administrative | (6,075 | ) | (5,276 | ) | (18,925 | ) | (16,440 | ) | |||||||||
Cost of management and other fees | (1,613 | ) | (1,642 | ) | (5,047 | ) | (4,893 | ) | |||||||||
Interest expense before amortization | (26,187 | ) | (25,064 | ) | (77,724 | ) | (74,380 | ) | |||||||||
Amortization expense | (3,005 | ) | (2,927 | ) | (8,937 | ) | (8,681 | ) | |||||||||
Interest and other income | 2,387 | 3,003 | 9,326 | 10,869 | |||||||||||||
Equity income from co-investments | 40,802 | 3,547 | 52,295 | 8,998 | |||||||||||||
Gain (loss) on early retirement of debt | (178 | ) | (1,211 | ) | 846 | (2,661 | ) | ||||||||||
Gain on sale of land | - | - | 1,503 | - | |||||||||||||
Gain on remeasurement of co-investment | - | - | - | 21,947 | |||||||||||||
Income from continuing operations | $ | 63,032 | $ | 20,050 | $ | 121,832 | $ | 79,422 | |||||||||
Total assets for each of the reportable operating segments are summarized as follows as of September 30, 2013 and December 31, 2012: | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Assets: | |||||||||||||||||
Southern California | $ | 1,650,435 | $ | 1,675,265 | |||||||||||||
Northern California | 1,620,434 | 1,489,095 | |||||||||||||||
Seattle Metro | 723,175 | 699,465 | |||||||||||||||
Other real estate assets | 86,776 | 88,330 | |||||||||||||||
Net reportable operating segment - real estate assets | 4,080,820 | 3,952,155 | |||||||||||||||
Real estate under development | 45,804 | 66,851 | |||||||||||||||
Co-investments | 674,075 | 571,345 | |||||||||||||||
Cash and cash equivalents, including restricted cash | 55,994 | 42,126 | |||||||||||||||
Marketable securities | 89,899 | 92,713 | |||||||||||||||
Notes and other receivables | 67,628 | 66,163 | |||||||||||||||
Other non-segment assets | 71,382 | 55,870 | |||||||||||||||
Total assets | $ | 5,085,602 | $ | 4,847,223 | |||||||||||||
Net_Income_Per_Common_Unit
Net Income Per Common Unit | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Net Income Per Common Unit [Abstract] | ' | ||||||||||||||||||||||||
Net Income Per Common Unit | ' | ||||||||||||||||||||||||
(8) Net Income Per Common Unit | |||||||||||||||||||||||||
(Amounts in thousands, except per unit and unit data) | |||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||||||||||
Income | Weighted- | Per | Income | Weighted- | Per | ||||||||||||||||||||
average | Common | average | Common | ||||||||||||||||||||||
Common | Unit | Common | Unit | ||||||||||||||||||||||
Units | Amount | Units | Amount | ||||||||||||||||||||||
Basic: | |||||||||||||||||||||||||
Income from continuing operations available to common unitholders | $ | 59,934 | 39,467 | $ | 1.52 | $ | 17,124 | 37,837 | $ | 0.45 | |||||||||||||||
Income from discontinued operations available to common unitholders | 12,843 | 39,467 | 0.32 | 172 | 37,837 | 0.01 | |||||||||||||||||||
72,777 | $ | 1.84 | 17,296 | $ | 0.46 | ||||||||||||||||||||
Effect of Dilutive Securities (1) | 54 | 116 | - | 99 | |||||||||||||||||||||
Diluted: | |||||||||||||||||||||||||
Income from continuing operations available to common unitholders | 59,988 | 39,583 | $ | 1.52 | 17,124 | 37,936 | $ | 0.44 | |||||||||||||||||
Income from discontinued operations available to common unitholders | 12,843 | 39,583 | 0.32 | 172 | 37,936 | 0.01 | |||||||||||||||||||
$ | 72,831 | $ | 1.84 | $ | 17,296 | $ | 0.45 | ||||||||||||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||||||||||
Income | Weighted | Per | Income | Weighted | Per | ||||||||||||||||||||
Average | Common | Average | Common | ||||||||||||||||||||||
Common | Share | Common | Share | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||
Basic: | |||||||||||||||||||||||||
Income from continuing operations available to common unitholders | $ | 112,653 | 39,333 | $ | 2.86 | $ | 70,660 | 36,976 | $ | 1.91 | |||||||||||||||
Income from discontinued operations available to common unitholders | 13,321 | 39,333 | 0.34 | 10,528 | 36,976 | 0.29 | |||||||||||||||||||
125,974 | $ | 3.2 | 81,188 | $ | 2.2 | ||||||||||||||||||||
Effect of Dilutive Securities (1) | - | 89 | - | 98 | |||||||||||||||||||||
Diluted: | |||||||||||||||||||||||||
Income from continuing operations available to common unitholders | 112,653 | 39,422 | 2.86 | $ | 70,660 | 37,074 | 1.91 | ||||||||||||||||||
Income from discontinued operations available to common unitholders | 13,321 | 39,422 | 0.34 | 10,528 | 37,074 | 0.28 | |||||||||||||||||||
$ | 125,974 | $ | 3.2 | $ | 81,188 | $ | 2.19 | ||||||||||||||||||
The instruments granted in equity-based payment transactions are considered participating securities prior to vesting and, therefore, are considered in computing basic earnings per unit under the two-class method. The two-class method is an earnings allocation method for calculating earnings per unit when a company’s capital structure includes either two or more classes of common equity or common equity and participating shares. The Company’s stock options of 38,825 for both the three and nine months ended September 30, 2013, respectively, were not included in the diluted earnings per unit calculation because the effects on earnings per unit were anti-dilutive. The Operating Partnership has the ability to redeem DownREIT limited partnership units for cash and does not consider them to be potentially dilutive securities. | |||||||||||||||||||||||||
Shares of Series G cumulative convertible preferred interests have been excluded in diluted earnings per unit for the nine months ended September 30, 2013 and 2012, respectively, and the three months ended Setpember 30, 2012 as the effect was anti-dilutive. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2013 | |
Derivative Instruments and Hedging Activities [Abstract] | ' |
Derivative Instruments and Hedging Activities | ' |
(9) Derivative Instruments and Hedging Activities | |
The Operating Partnership has entered into interest rate swap contracts with an aggregate notional amount of $300 million that effectively fixed the interest rate on $300 million of the $350 million unsecured term loan at 2.29%. These derivatives qualify for hedge accounting. | |
As of September 30, 2013 the Operating Partnership also had ten interest rate cap contracts totaling a notional amount of $176.3 million that qualify for hedge accounting as they effectively limit the Operating Partnership’s exposure to interest rate risk by providing a ceiling on the underlying variable interest rate for substantially all of the Operating Partnership’s tax exempt variable rate debt. | |
As of September 30, 2013 and December 31, 2012 the aggregate carrying value of the interest rate swap contracts was a liability of $3.2 million and $6.6 million, respectively. The aggregate carrying value of the interest rate cap contracts was zero on the balance sheet as of September 30, 2013 and December 31, 2012, respectively. |
Discontinued_Operations
Discontinued Operations | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Discontinued Operations [Abstract] | ' | ||||||||||||||||
Discontinued Operations | ' | ||||||||||||||||
(10) Discontinued Operations | |||||||||||||||||
The Operating Partnership classifies real estate as "held for sale" when the sale is considered to be probable. In August 2013, the Operating Partnership sold Linden Square, located in Seattle, Washington, for $25.3 million resulting in a gain of $12.7 million. | |||||||||||||||||
During the first quarter of 2012, the Operating Partnership sold Tierra Del Sol/Norte, a 156 unit community located in San Diego, California for $17.2 million for a gain of $7.0 million. Also in the first quarter of 2012, the Operating Partnership sold Alpine Country, a 108 unit community located in San Diego metropolitan area, for $11.1 million for a gain of $3.9 million. | |||||||||||||||||
The components of discontinued operations are outlined below and include the results of operations for the respective periods that the Operating Partnership owned such assets, as described above (dollars in thousands). | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Rental revenues | $ | 385 | $ | 552 | $ | 1,578 | $ | 2,275 | |||||||||
Property operating expenses | (151 | ) | (236 | ) | (573 | ) | (997 | ) | |||||||||
Depreciation and amortization | (49 | ) | (144 | ) | (342 | ) | (533 | ) | |||||||||
Income from real estate sold | 185 | 172 | 663 | 745 | |||||||||||||
Gain on sale | 12,658 | - | 12,658 | 10,870 | |||||||||||||
Internal disposition costs and taxes | - | - | - | (1,087 | ) | ||||||||||||
Income from discontinued operations | $ | 12,843 | $ | 172 | $ | 13,321 | $ | 10,528 |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies [Abstract] | ' |
Commitments and Contingencies | ' |
(11) Commitments and Contingencies | |
As of September 30, 2013, the Operating Partnership had six non-cancelable ground leases for certain apartment communities and buildings that expire between 2027 and 2080. Ground lease payments are typically the greater of a stated minimum or a percentage of gross rents generated by these apartment communities. Total minimum lease commitments, under ground leases and operating leases, are approximately $1.7 million per year for the next five years. | |
To the extent that an environmental matter arises or is identified in the future that has other than a remote risk of having a material impact on the financial statements, the Operating Partnership will disclose the estimated range of possible outcomes, and, if an outcome is probable, accrue an appropriate liability for remediation and other potential liability. The Operating Partnership will consider whether such occurrence results in an impairment of value on the affected property and, if so, impairment will be recognized. | |
The Operating Partnership provided a payment guarantee to the counterparties in relation to the total return swaps entered into by the joint venture responsible for the development of The Huxley (formerly Fountain at La Brea) and The Dylan (formerly Santa Monica at La Brea) communities. Further the Operating Partnership has guaranteed completion of development and made certain debt service guarantees for The Huxley and The Dylan. The outstanding balance for the loans is included in the debt line item in the summarized balance sheet of the co-investments included in Note 3. The payment guarantee is for the payment of the amounts due to the counterparty related to the total return swaps which are scheduled to mature in September and December 2016. The maximum exposure of the guarantee as of September 30, 2013 was $88.9 million based on the aggregate outstanding debt amount. | |
The Operating Partnership is subject to various other lawsuits in the normal course of its business operations. Such lawsuits are not expected to have a material adverse effect on the Operating Partnership’s financial condition, results of operations or cash flows. |
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation (Policies) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Organization and Basis of Presentation [Abstract] | ' | ||||||||||||
Marketable Securities | ' | ||||||||||||
Marketable Securities | |||||||||||||
The Operating Partnership reports its available for sale securities at fair value, based on quoted market prices (Level 2 for the unsecured bonds and Level 1 for the common stock and investment funds, as defined by the Financial Accounting Standards Board (“FASB”) standard for fair value measurements as discussed later in Note 1), and any unrealized gain or loss is recorded as other comprehensive income (loss). Realized gains and losses, interest and dividend income, and amortization of purchase discounts are included in interest and other income on the condensed consolidated statement of operations and comprehensive income. | |||||||||||||
As of September 30, 2013 and December 31, 2012, marketable securities consisted primarily of investment-grade unsecured bonds, common stock, investments in mortgage backed securities and investment funds that invest in U.S. treasury or agency securities. As of September 30, 2013 and December 31, 2012, the Operating Partnership classified its investments in mortgage backed securities, which mature in November 2019 and September 2020, as held to maturity, and accordingly, these securities are stated at their amortized cost. | |||||||||||||
As of September 30, 2013 and December 31, 2012 marketable securities consist of the following ($ in thousands): | |||||||||||||
30-Sep-13 | |||||||||||||
Cost/ | Gross | Carrying Value | |||||||||||
Amortized | Unrealized | ||||||||||||
Cost | Gain (Loss) | ||||||||||||
Available for sale: | |||||||||||||
Investment-grade unsecured bonds | $ | 15,378 | $ | 647 | $ | 16,025 | |||||||
Investment funds - US treasuries | 5,020 | 3 | 5,023 | ||||||||||
Common stock | 13,104 | (975 | ) | 12,129 | |||||||||
Held to maturity: | |||||||||||||
Mortgage backed securities | 56,722 | - | 56,722 | ||||||||||
Total | $ | 90,224 | $ | (325 | ) | $ | 89,899 | ||||||
31-Dec-12 | |||||||||||||
Cost/ | Gross | Carrying Value | |||||||||||
Amortized | Unrealized | ||||||||||||
Cost | Gain | ||||||||||||
Available for sale: | |||||||||||||
Investment-grade unsecured bonds | $ | 15,475 | $ | 826 | $ | 16,301 | |||||||
Investment funds - US treasuries | 3,788 | 1 | 3,789 | ||||||||||
Common stock | 18,917 | 1,704 | 20,621 | ||||||||||
Held to maturity: | |||||||||||||
Mortgage backed securities | 52,002 | - | 52,002 | ||||||||||
Total | $ | 90,182 | $ | 2,531 | $ | 92,713 | |||||||
The Operating Partnership uses the specific identification method to determine the cost basis of a security sold and to reclassify amounts from accumulated other comprehensive income for securities sold. For the three months ended September 30, 2013 and 2012, there were no sales of available for sale securities. For the nine months ended September 30, 2013, and 2012, the proceeds from sales of available for sale securities totaled $20.3 million and $6.3 million, respectively, which resulted in gains of $1.8 million and $0.5 million, respectively. | |||||||||||||
Variable Interest Entities | ' | ||||||||||||
Variable Interest Entities | |||||||||||||
The Operating Partnership consolidates 19 DownREIT limited partnerships (comprising twelve communities) since the Operating Partnership is the primary beneficiary of these variable interest entities (“VIEs”). Total DownREIT units outstanding were 1,011,071 and 1,039,431 as of September 30, 2013 and December 31, 2012, respectively, and the redemption value of the units, based on the closing price of the Company’s common stock totaled $149.3 million and $152.4 million, as of September 30, 2013 and December 31, 2012, respectively. The consolidated total assets and liabilities related to these VIEs, net of intercompany eliminations, were approximately $201.6 million and $185.5 million, respectively, as of September 30, 2013 and $201.1 million and $178.6 million, respectively, as of December 31, 2012. Interest holders in VIEs consolidated by the Operating Partnership are allocated income equal to the cash payments made to those interest holders. The remaining results of operations are allocated to the Operating Partnership. As of September 30, 2013 and December 31, 2012, the Operating Partnership did not have any other VIEs of which it was deemed to be the primary beneficiary. | |||||||||||||
Equity Based Compensation | ' | ||||||||||||
Equity Based Compensation | |||||||||||||
The Operating Partnership accounts for equity based compensation using the fair value method of accounting. The estimated fair value of stock options granted by the Company is being amortized over the vesting period of the stock options. The estimated grant date fair values of the long term incentive plan units are being amortized over the expected service periods. | |||||||||||||
Stock-based compensation expense for options and restricted stock totaled $0.5 million and $0.4 million for the three months ended September 30, 2013 and 2012, respectively, and $1.6 million and $1.2 million for the nine months ended September 30, 2013 and 2012, respectively. The intrinsic value of the stock options exercised during the three months ended September 30, 2013 and 2012 totaled $0.1 million and $0.5 million, respectively, and $2.9 million and $2.4 million for the nine months ended September 30, 2013 and 2012, respectively. As of September 30, 2013, the intrinsic value of the stock options outstanding totaled $11.2 million. As of September 30, 2013, total unrecognized compensation cost related to unvested share-based compensation granted under the stock option and restricted stock plans totaled $4.7 million. The cost is expected to be recognized over a weighted-average period of 1 to 5 years for the stock option plans and is expected to be recognized straight-line over a period of 1 to 7 years for the restricted stock awards. | |||||||||||||
The Operating Partnership has adopted an incentive program involving the issuance of Series Z-1 Incentive Units of limited partnership interest in the Operating Partnership. Stock-based compensation expense for Z-1 Units totaled $0.5 million and $0.5 million for the three months ended September 30, 2013 and 2012, respectively, and $1.5 million and $1.6 million for the nine months ended September 30, 2013 and 2012, respectively. Stock-based compensation for Z-1 units capitalized totaled $0.1 million for the three months ended September 30, 2013, and 2012 and $0.3 million and $0.4 million for the nine months ended September 30, 2013, and 2012, respectively. As of September 30, 2013, the intrinsic value of the Z-1 Units subject to future vesting totaled $15.8 million. As of September 30, 2013, total unrecognized compensation cost related to Z-1 Units subject to future vesting totaled $5.6 million. The unamortized cost is expected to be recognized up to 14 years subject to the achievement of the stated performance criteria. | |||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||
Fair Value of Financial Instruments | |||||||||||||
Management believes that the carrying amounts of outstanding lines of credit, notes receivable and notes and other receivables approximate fair value as of September 30, 2013 and December 31, 2012, because interest rates, yields and other terms for these instruments are consistent with yields and other terms currently available for similar instruments. Management has estimated that the fair value of the Operating Partnership’s $2.37 billion of fixed rate debt, including unsecured bonds, at September 30, 2013 is approximately $2.43 billion and the fair value of the Operating Partnership’s $537.2 million of variable rate debt, excluding borrowings under the lines of credit, at September 30, 2013 is $517.5 million based on the terms of existing mortgage notes payable, unsecured bonds and variable rate demand notes compared to those available in the marketplace. Management believes that the carrying amounts of cash and cash equivalents, restricted cash, accounts payable and accrued liabilities, construction payables, other liabilities and dividends payable approximate fair value as of September 30, 2013 due to the short-term maturity of these instruments. Marketable securities, except mortgage backed securities, and derivatives are carried at fair value as of September 30, 2013. | |||||||||||||
At December 31, 2013, the Operating Partnership’s investments in mortgage backed securities had a carrying value of $56.7 million and the Operating Partnership estimated the fair value to be approximately $83.8 million. At December 31, 2012, the estimated fair values of the mortgage backed securities were approximately equal to the carrying values. The Operating Partnership determines the fair value of the mortgage backed securities based on unobservable inputs (level 3 of the fair value hierarchy) considering the assumptions that market participants would make in valuing these securities. Assumptions such as estimated default rates and discount rates are used to determine expected, discounted cash flows to estimate the fair value. | |||||||||||||
Capitalization of Costs | ' | ||||||||||||
Capitalization of Costs | |||||||||||||
The Operating Partnership’s capitalized internal costs related to development and redevelopment projects totaled $1.8 million and $1.5 million during the three months ended September 30, 2013 and 2012, respectively, and $5.1 million and $4.5 million during the nine months ended September 30, 2013 and 2012, respectively, most of which relates to development projects. These totals include capitalized salaries of $0.8 million and $0.5 million for the three months ended September 30, 2013 and 2012, respectively, and $2.0 million and $1.9 million for the nine months ended September 30, 2013 and 2012, respectively. The Operating Partnership capitalizes leasing commissions associated with the lease-up of a development community and amortizes the costs over the life of the leases. The amounts capitalized are immaterial for all periods presented. | |||||||||||||
Co-investments | ' | ||||||||||||
Co-investments | |||||||||||||
The Operating Partnership owns investments in joint ventures (“co-investments”) in which it has significant influence, but its ownership interest does not meet the criteria for consolidation in accordance with the accounting standards. Therefore, the Operating Partnership accounts for these investments using the equity method of accounting. Under the equity method of accounting, the investment is carried at the cost of assets contributed, plus the Operating Partnership’s equity in earnings less distributions received and the Operating Partnership’s share of losses. The significant accounting policies of the Operating Partnership’s co-investment entities are consistent with those of the Operating Partnership in all material respects. For preferred equity investments the Operating Partnership recognizes its preferred interest as equity in earnings. | |||||||||||||
Upon the acquisition of a controlling interest of a co-investment, the co-investment entity is consolidated and a gain or loss is recognized upon the remeasurement of co-investments in the consolidated statement of operations equal to the amount by which the fair value of the co-investment interest the Operating Partnership previously owned exceeds its carrying value. | |||||||||||||
A majority of the co-investments, excluding the preferred equity investments, compensate the Operating Partnership for its asset management services and may provide promote distributions if certain financial return benchmarks are achieved. Asset management fees are recognized when earned, and promote fees are recognized when the earnings events have occurred and the amount is determinable and collectible. | |||||||||||||
Accounting Estimates | ' | ||||||||||||
Accounting Estimates | |||||||||||||
The preparation of condensed consolidated financial statements, in accordance with U.S. generally accepted accounting principles, requires the Operating Partnership to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. On an on-going basis, the Operating Partnership evaluates its estimates, including those related to acquiring, developing and assessing the carrying values of its real estate portfolio, its investments in and advances to joint ventures and affiliates, and its notes receivables. The Operating Partnership bases its estimates on historical experience, current market conditions, and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may vary from those estimates and those estimates could be different under different assumptions or conditions. |
Organization_and_Basis_of_Pres2
Organization and Basis of Presentation (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Organization and Basis of Presentation [Abstract] | ' | ||||||||||||
Components of Marketable Securities | ' | ||||||||||||
As of September 30, 2013 and December 31, 2012 marketable securities consist of the following ($ in thousands): | |||||||||||||
30-Sep-13 | |||||||||||||
Cost/ | Gross | Carrying Value | |||||||||||
Amortized | Unrealized | ||||||||||||
Cost | Gain (Loss) | ||||||||||||
Available for sale: | |||||||||||||
Investment-grade unsecured bonds | $ | 15,378 | $ | 647 | $ | 16,025 | |||||||
Investment funds - US treasuries | 5,020 | 3 | 5,023 | ||||||||||
Common stock | 13,104 | (975 | ) | 12,129 | |||||||||
Held to maturity: | |||||||||||||
Mortgage backed securities | 56,722 | - | 56,722 | ||||||||||
Total | $ | 90,224 | $ | (325 | ) | $ | 89,899 | ||||||
31-Dec-12 | |||||||||||||
Cost/ | Gross | Carrying Value | |||||||||||
Amortized | Unrealized | ||||||||||||
Cost | Gain | ||||||||||||
Available for sale: | |||||||||||||
Investment-grade unsecured bonds | $ | 15,475 | $ | 826 | $ | 16,301 | |||||||
Investment funds - US treasuries | 3,788 | 1 | 3,789 | ||||||||||
Common stock | 18,917 | 1,704 | 20,621 | ||||||||||
Held to maturity: | |||||||||||||
Mortgage backed securities | 52,002 | - | 52,002 | ||||||||||
Total | $ | 90,182 | $ | 2,531 | $ | 92,713 | |||||||
Changes in Accumulated Other Comprehensive Loss by Component | ' | ||||||||||||
Changes in Accumulated Other Comprehensive Loss Net, by Component | |||||||||||||
Change in fair | Unrealized | Total | |||||||||||
value and amortization | gains/(losses) on | ||||||||||||
of derivatives | available for sale | ||||||||||||
securities | |||||||||||||
Balance at December 31, 2012 | $ | (70,762 | ) | $ | 2,531 | $ | (68,231 | ) | |||||
Other comprehensive income (loss) before reclassification | 3,612 | (1,156 | ) | 2,456 | |||||||||
Amounts reclassified from accumulated other comprehensive loss | 6,364 | (1,767 | ) | 4,597 | |||||||||
Net other comprehensive income (loss) | 9,976 | (2,923 | ) | 7,053 | |||||||||
Balance at September 30, 2013 | $ | (60,786 | ) | $ | (392 | ) | $ | (61,178 | ) |
Coinvestments_Tables
Co-investments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Co-investments [Abstract] | ' | ||||||||||||||||
Summary of Operating Partnership's Co-Investment | ' | ||||||||||||||||
The following table details the Operating Partnership's co-investments (dollars in thousands): | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Membership interest in Wesco I | $ | 142,362 | $ | 143,874 | |||||||||||||
Membership interest in Wesco III | 37,766 | 9,941 | |||||||||||||||
Partnership interest in Fund II | 4,301 | 53,601 | |||||||||||||||
Membership interest in a limited liability company that owns Expo | 18,356 | 18,752 | |||||||||||||||
Total operating co-investments | 202,785 | 226,168 | |||||||||||||||
Membership interests in limited liability companies that own and are developing Epic, Connolly Station, Mosso I & II, Elkhorn, and The Village | 294,573 | 186,362 | |||||||||||||||
Membership interests in limited liability companies that own and are developing The Huxley and The Dylan | 17,894 | 16,552 | |||||||||||||||
Membership interest in a limited liability company that owns and is developing One South Market | 17,009 | - | |||||||||||||||
Total development co-investments | 329,476 | 202,914 | |||||||||||||||
Membership interest in Wesco II that owns a preferred equity interest in Parkmerced with a preferred return of 10.1% | 93,983 | 91,843 | |||||||||||||||
Preferred interest in related party limited liability company that owns Sage at Cupertino with a preferred return of 9.5% | 16,159 | 14,438 | |||||||||||||||
Preferred interest in a related party limited liability company that owns Madison Park at Anaheim with a preferred return of 9% | 13,824 | 13,175 | |||||||||||||||
Preferred interest in related party limited liability company that owns an apartment development in Redwood City with a preferred return of 12% | 9,234 | - | |||||||||||||||
Preferred interest in a limited liability company that owns an apartment development in San Jose with a preferred return of 12% | 8,614 | - | |||||||||||||||
Preferred interests in limited liability companies that own apartment communities in downtown Los Angeles with preferred returns of 9% and 10% repaid in 2013 | - | 22,807 | |||||||||||||||
Total preferred interest investments | 141,814 | 142,263 | |||||||||||||||
Total co-investments | $ | 674,075 | $ | 571,345 | |||||||||||||
Summary of Balance Sheet and Statements of Operations for Co-Investments | ' | ||||||||||||||||
The combined summarized balance sheet and statements of operations for co-investments are as follows (dollars in thousands). | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Balance sheets: | |||||||||||||||||
Rental properties and real estate under development | $ | 1,698,072 | $ | 1,745,147 | |||||||||||||
Other assets | 86,081 | 168,061 | |||||||||||||||
Total assets | $ | 1,784,153 | $ | 1,913,208 | |||||||||||||
Debt | $ | 651,818 | $ | 820,895 | |||||||||||||
Other liabilities | 114,405 | 91,922 | |||||||||||||||
Equity | 1,017,930 | 1,000,391 | |||||||||||||||
Total liabilities and equity | $ | 1,784,153 | $ | 1,913,208 | |||||||||||||
Operating Partnership's share of equity | $ | 674,075 | $ | 571,345 | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Statements of operations: | |||||||||||||||||
Property revenues | $ | 24,796 | $ | 34,425 | $ | 78,913 | $ | 96,981 | |||||||||
Property operating expenses | (10,170 | ) | (12,686 | ) | (29,872 | ) | (35,852 | ) | |||||||||
Net property operating income | 14,626 | 21,739 | 49,041 | 61,129 | |||||||||||||
Gain on sale of real estate | 137,845 | - | 146,663 | - | |||||||||||||
Interest expense | (6,052 | ) | (9,453 | ) | (18,924 | ) | (25,790 | ) | |||||||||
General and administrative | (1,419 | ) | (916 | ) | (4,472 | ) | (2,632 | ) | |||||||||
Depreciation and amortization | (8,718 | ) | (12,821 | ) | (29,314 | ) | (35,593 | ) | |||||||||
Net (loss) income | $ | 136,282 | $ | (1,451 | ) | $ | 142,994 | $ | (2,886 | ) | |||||||
Operating Partnership's share of net income | $ | 40,802 | $ | 3,547 | $ | 52,295 | $ | 8,998 | |||||||||
Notes_and_Other_Receivables_Ta
Notes and Other Receivables (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Notes and Other Receivables [Abstract] | ' | ||||||||
Notes and Other Receivables | ' | ||||||||
Notes receivable secured by real estate, and other receivables consist of the following as of September 30, 2013 and December 31, 2012 (dollars in thousands): | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Note receivable, secured, bearing interest at 4.0%, due December 2014 (1) | $ | 3,212 | $ | 3,212 | |||||
Notes and other receivables from affiliates (2) | 60,820 | 28,896 | |||||||
Other receivables | 3,596 | 3,785 | |||||||
Note receivable, secured, bearing interest at 8.0%, paid in full in May 2013 | - | 971 | |||||||
Note receivable, secured, bearing interest at 8.8%, paid in full March 2013 | - | 10,800 | |||||||
Note receivable, secured, effective interest at 9.6%, paid in full March 2013 | - | 18,499 | |||||||
$ | 67,628 | $ | 66,163 | ||||||
-1 | The borrower funds an impound account for capital replacement. | ||||||||
-2 | During the second quarter of 2013, the Operating Partnership provided short-term bridge loans to Fund II and Wesco III aggregating $42.4 million and $56.8 million, respectively, at rates of LIBOR + 1.75% and LIBOR + 2.50%, respectively. In July 2013, Fund II repaid the $42.4 million loan. |
Unsecured_Debt_and_Lines_of_Cr1
Unsecured Debt and Lines of Credit (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Unsecured Debt and Lines of Credit [Abstract] | ' | ||||||||||||
Schedule of unsecured debt and lines of credit | ' | ||||||||||||
Unsecured debt and lines of credit consist of the following as of September 30, 2013 and December 31, 2012 ($ in thousands): | |||||||||||||
Weighted Average | |||||||||||||
September 30, | December 31, | Maturity | |||||||||||
2013 | 2012 | In Years | |||||||||||
Bonds private placement - fixed rate | $ | 465,000 | $ | 465,000 | 5.5 | ||||||||
Term loan - variable rate | 350,000 | 350,000 | 3.4 | ||||||||||
Bonds public offering - fixed rate | 594,883 | 297,084 | 9.2 | ||||||||||
Unsecured debt | 1,409,883 | 1,112,084 | |||||||||||
Lines of credit | 15,352 | 141,000 | 0.3 | ||||||||||
Total unsecured debt and lines of credit | $ | 1,425,235 | $ | 1,253,084 | |||||||||
Weighted average interest rate on fixed rate unsecured bonds | 4 | % | 4.2 | % | |||||||||
Weighted average interest rate on variable rate term loan | 2.5 | % | 2.7 | % | |||||||||
Weighted average interest rate on line of credit | 2.2 | % | 2.3 | % | |||||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Information [Abstract] | ' | ||||||||||||||||
Summary of Revenues, Net Operating Income, and Assets for Reportable Operating Segments | ' | ||||||||||||||||
The revenues, net operating income, and assets for each of the reportable operating segments are summarized as follows for the three and nine months ended September 30, 2013 and 2012 (dollars in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Revenues: | |||||||||||||||||
Southern California | $ | 67,114 | $ | 64,339 | $ | 199,177 | $ | 184,255 | |||||||||
Northern California | 54,755 | 43,605 | 158,614 | 127,797 | |||||||||||||
Seattle Metro | 27,212 | 23,559 | 79,443 | 67,436 | |||||||||||||
Other real estate assets | 3,864 | 3,015 | 11,084 | 9,154 | |||||||||||||
Total property revenues | $ | 152,945 | $ | 134,518 | $ | 448,318 | $ | 388,642 | |||||||||
Net operating income: | |||||||||||||||||
Southern California | $ | 44,084 | $ | 41,932 | $ | 132,983 | $ | 122,868 | |||||||||
Northern California | 37,822 | 29,572 | 109,567 | 87,740 | |||||||||||||
Seattle Metro | 18,047 | 15,411 | 52,453 | 44,481 | |||||||||||||
Other real estate assets | 2,429 | 2,530 | 7,673 | 6,399 | |||||||||||||
Total net operating income | 102,382 | 89,445 | 302,676 | 261,488 | |||||||||||||
Management and other fees | 2,957 | 3,072 | 9,139 | 8,312 | |||||||||||||
Depreciation | (48,438 | ) | (42,897 | ) | (143,320 | ) | (125,137 | ) | |||||||||
General and administrative | (6,075 | ) | (5,276 | ) | (18,925 | ) | (16,440 | ) | |||||||||
Cost of management and other fees | (1,613 | ) | (1,642 | ) | (5,047 | ) | (4,893 | ) | |||||||||
Interest expense before amortization | (26,187 | ) | (25,064 | ) | (77,724 | ) | (74,380 | ) | |||||||||
Amortization expense | (3,005 | ) | (2,927 | ) | (8,937 | ) | (8,681 | ) | |||||||||
Interest and other income | 2,387 | 3,003 | 9,326 | 10,869 | |||||||||||||
Equity income from co-investments | 40,802 | 3,547 | 52,295 | 8,998 | |||||||||||||
Gain (loss) on early retirement of debt | (178 | ) | (1,211 | ) | 846 | (2,661 | ) | ||||||||||
Gain on sale of land | - | - | 1,503 | - | |||||||||||||
Gain on remeasurement of co-investment | - | - | - | 21,947 | |||||||||||||
Income from continuing operations | $ | 63,032 | $ | 20,050 | $ | 121,832 | $ | 79,422 | |||||||||
Summary of Assets for Reportable Operating Segments | ' | ||||||||||||||||
Total assets for each of the reportable operating segments are summarized as follows as of September 30, 2013 and December 31, 2012: | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Assets: | |||||||||||||||||
Southern California | $ | 1,650,435 | $ | 1,675,265 | |||||||||||||
Northern California | 1,620,434 | 1,489,095 | |||||||||||||||
Seattle Metro | 723,175 | 699,465 | |||||||||||||||
Other real estate assets | 86,776 | 88,330 | |||||||||||||||
Net reportable operating segment - real estate assets | 4,080,820 | 3,952,155 | |||||||||||||||
Real estate under development | 45,804 | 66,851 | |||||||||||||||
Co-investments | 674,075 | 571,345 | |||||||||||||||
Cash and cash equivalents, including restricted cash | 55,994 | 42,126 | |||||||||||||||
Marketable securities | 89,899 | 92,713 | |||||||||||||||
Notes and other receivables | 67,628 | 66,163 | |||||||||||||||
Other non-segment assets | 71,382 | 55,870 | |||||||||||||||
Total assets | $ | 5,085,602 | $ | 4,847,223 |
Net_Income_Per_Common_Unit_Tab
Net Income Per Common Unit (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Net Income Per Common Unit [Abstract] | ' | ||||||||||||||||||||||||
Net Income Per Common Unit | ' | ||||||||||||||||||||||||
(Amounts in thousands, except per unit and unit data) | |||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||||||||||
Income | Weighted- | Per | Income | Weighted- | Per | ||||||||||||||||||||
average | Common | average | Common | ||||||||||||||||||||||
Common | Unit | Common | Unit | ||||||||||||||||||||||
Units | Amount | Units | Amount | ||||||||||||||||||||||
Basic: | |||||||||||||||||||||||||
Income from continuing operations available to common unitholders | $ | 59,934 | 39,467 | $ | 1.52 | $ | 17,124 | 37,837 | $ | 0.45 | |||||||||||||||
Income from discontinued operations available to common unitholders | 12,843 | 39,467 | 0.32 | 172 | 37,837 | 0.01 | |||||||||||||||||||
72,777 | $ | 1.84 | 17,296 | $ | 0.46 | ||||||||||||||||||||
Effect of Dilutive Securities (1) | 54 | 116 | - | 99 | |||||||||||||||||||||
Diluted: | |||||||||||||||||||||||||
Income from continuing operations available to common unitholders | 59,988 | 39,583 | $ | 1.52 | 17,124 | 37,936 | $ | 0.44 | |||||||||||||||||
Income from discontinued operations available to common unitholders | 12,843 | 39,583 | 0.32 | 172 | 37,936 | 0.01 | |||||||||||||||||||
$ | 72,831 | $ | 1.84 | $ | 17,296 | $ | 0.45 | ||||||||||||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||||||||||
Income | Weighted | Per | Income | Weighted | Per | ||||||||||||||||||||
Average | Common | Average | Common | ||||||||||||||||||||||
Common | Share | Common | Share | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||
Basic: | |||||||||||||||||||||||||
Income from continuing operations available to common unitholders | $ | 112,653 | 39,333 | $ | 2.86 | $ | 70,660 | 36,976 | $ | 1.91 | |||||||||||||||
Income from discontinued operations available to common unitholders | 13,321 | 39,333 | 0.34 | 10,528 | 36,976 | 0.29 | |||||||||||||||||||
125,974 | $ | 3.2 | 81,188 | $ | 2.2 | ||||||||||||||||||||
Effect of Dilutive Securities (1) | - | 89 | - | 98 | |||||||||||||||||||||
Diluted: | |||||||||||||||||||||||||
Income from continuing operations available to common unitholders | 112,653 | 39,422 | 2.86 | $ | 70,660 | 37,074 | 1.91 | ||||||||||||||||||
Income from discontinued operations available to common unitholders | 13,321 | 39,422 | 0.34 | 10,528 | 37,074 | 0.28 | |||||||||||||||||||
$ | 125,974 | $ | 3.2 | $ | 81,188 | $ | 2.19 |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Discontinued Operations [Abstract] | ' | ||||||||||||||||
Schedule of Components from Discontinued Operations | ' | ||||||||||||||||
The components of discontinued operations are outlined below and include the results of operations for the respective periods that the Operating Partnership owned such assets, as described above (dollars in thousands). | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Rental revenues | $ | 385 | $ | 552 | $ | 1,578 | $ | 2,275 | |||||||||
Property operating expenses | (151 | ) | (236 | ) | (573 | ) | (997 | ) | |||||||||
Depreciation and amortization | (49 | ) | (144 | ) | (342 | ) | (533 | ) | |||||||||
Income from real estate sold | 185 | 172 | 663 | 745 | |||||||||||||
Gain on sale | 12,658 | - | 12,658 | 10,870 | |||||||||||||
Internal disposition costs and taxes | - | - | - | (1,087 | ) | ||||||||||||
Income from discontinued operations | $ | 12,843 | $ | 172 | $ | 13,321 | $ | 10,528 |
Organization_and_Basis_of_Pres3
Organization and Basis of Presentation (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Project | Project | ||||
Partnership | Partnership | ||||
Building | Building | ||||
Apartment | Apartment | ||||
Community | Community | ||||
Organization and Basis of Presentation [Abstract] | ' | ' | ' | ' | ' |
General partner ownership interest (in hundredths) | ' | ' | 94.60% | ' | ' |
Operating Partnership units outstanding (in shares) | 2,146,293 | ' | 2,146,293 | ' | 2,122,381 |
Redemption value of Operating Partnership units outstanding | $317,000,000 | ' | $317,000,000 | ' | $311,200,000 |
Number of apartment communities owned | 163 | ' | 163 | ' | ' |
Apartment units owned (in units) | 34,416 | ' | 34,416 | ' | ' |
Ownership interests, number of commercial buildings | 5 | ' | 5 | ' | ' |
Ownership interests, number of active development projects | 11 | ' | 11 | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' |
Total Cost/Amortized Cost | 90,224,000 | ' | 90,224,000 | ' | 90,182,000 |
Total Gross Unrealized Gain | -325,000 | ' | -325,000 | ' | 2,531,000 |
Total Carrying Value | 89,899,000 | ' | 89,899,000 | ' | 92,713,000 |
Proceeds from sales of available for sale securities | 0 | 0 | 20,300,000 | 6,300,000 | ' |
Gain from sales of available-for-sale securities | ' | ' | 1,800,000 | 500,000 | ' |
Variable Interest Entities [Abstract] | ' | ' | ' | ' | ' |
Number of DownREIT limited partnerships the company consolidates | 19 | ' | 19 | ' | ' |
Number of communities within the DownREIT partnership | 12 | ' | 12 | ' | ' |
Total DownREIT Partnership's Outstanding units (in shares) | 1,011,071 | ' | 1,011,071 | ' | 1,039,431 |
Redemption value of the variable interest entities | 149,300,000 | ' | 149,300,000 | ' | 152,400,000 |
Assets related to variable interest entities, net intercompany eliminations | 201,600,000 | ' | 201,600,000 | ' | 201,100,000 |
Liabilities related to variable interest entities, net of intercompany eliminations | 185,500,000 | ' | 185,500,000 | ' | 178,600,000 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ' |
Stock-based compensation expense for options and restricted stock | 500,000 | 400,000 | 1,600,000 | 1,200,000 | ' |
Intrinsic value of the stock options exercised | 100,000 | 500,000 | 2,900,000 | 2,400,000 | ' |
Intrinsic value of the stock options outstanding and fully vested | 11,200,000 | ' | 11,200,000 | ' | ' |
Unrecognized compensation cost related to unvested share-based compensation granted under the stock option and restricted stock plans | 4,700,000 | ' | 4,700,000 | ' | ' |
Stock-based compensation expense for the Series Z-1 Units | 500,000 | 500,000 | 1,500,000 | 1,600,000 | ' |
Capitalization of stock based compensation for Z-1 units | 100,000 | 100,000 | 300,000 | 400,000 | ' |
Intrinsic value of Series Z-1 Units outstanding | 15,800,000 | ' | 15,800,000 | ' | ' |
Total unrecognized compensation cost related to Z-1 Units subject to future vesting | 5,600,000 | ' | 5,600,000 | ' | ' |
Unamortized cost recognition period range | ' | ' | '14 years | ' | ' |
Fair Value of Financial Instruments [Abstract] | ' | ' | ' | ' | ' |
Fixed rate debt carrying amount | 2,370,000,000 | ' | 2,370,000,000 | ' | ' |
Fixed rate debt fair value | 2,430,000,000 | ' | 2,430,000,000 | ' | ' |
Variable rate debt, carrying amount | 537,200,000 | ' | 537,200,000 | ' | ' |
Variable rate debt fair value | 517,500,000 | ' | 517,500,000 | ' | ' |
Mortgage-backed securities at carrying value | 56,700,000 | ' | 56,700,000 | ' | ' |
Mortgage backed securities, fair value | 83,800,000 | ' | 83,800,000 | ' | ' |
Capitalization Policy [Abstract] | ' | ' | ' | ' | ' |
Capitalized internal costs related to development and redevelopment projects | 1,800,000 | 1,500,000 | 5,100,000 | 4,500,000 | ' |
Capitalized salaries | 800,000 | 500,000 | 2,000,000 | 1,900,000 | ' |
Change in fair value and amortization of derivatives [Abstract] | ' | ' | ' | ' | ' |
Balance at beginning | ' | ' | -70,762,000 | ' | ' |
Other comprehensive income (loss) before reclassification | ' | ' | 3,612,000 | ' | ' |
Amounts reclassified from accumulated other comprehensive loss | ' | ' | 6,364,000 | ' | ' |
Net other comprehensive income (loss) | ' | ' | 9,976,000 | ' | ' |
Balance at the end | -60,786,000 | ' | -60,786,000 | ' | ' |
Unrealized gains/(losses) on available for sale securities [Abstract] | ' | ' | ' | ' | ' |
Balance at beginning | ' | ' | 2,531,000 | ' | ' |
Other comprehensive income (loss) before reclassification, available for sale securities, total | ' | ' | -1,156,000 | ' | ' |
Amounts reclassified from accumulated other comprehensive loss | ' | ' | -1,767,000 | ' | ' |
Net other comprehensive income (loss) | ' | ' | -2,923,000 | ' | ' |
Balance at the end | -392,000 | ' | -392,000 | ' | ' |
Accumulated other comprehensive loss by component [Abstract] | ' | ' | ' | ' | ' |
Balance at beginning | ' | ' | -68,231,000 | ' | ' |
Other comprehensive income (loss) before reclassification | ' | ' | 2,456,000 | ' | ' |
Amounts reclassified from accumulated other comprehensive loss | ' | ' | 4,597,000 | ' | ' |
Net other comprehensive income (loss) | ' | ' | 7,053,000 | ' | ' |
Balance at the end | -61,178,000 | ' | -61,178,000 | ' | ' |
Minimum [Member] | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ' |
Range of weighted average period on recognition of compensation cost for stock options | ' | ' | '1 year | ' | ' |
Range of weighted average period on recognition of compensation cost for restricted stock | ' | ' | '1 year | ' | ' |
Maximum [Member] | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ' |
Range of weighted average period on recognition of compensation cost for stock options | ' | ' | '5 years | ' | ' |
Range of weighted average period on recognition of compensation cost for restricted stock | ' | ' | '7 years | ' | ' |
Investment-Grade Unsecured Bonds [Member] | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' |
Available for sale, Cost/Amortized Cost | 15,378,000 | ' | 15,378,000 | ' | 15,475,000 |
Available for sale, Gross Unrealized Gain | 647,000 | ' | 647,000 | ' | 826,000 |
Available for sale, Carrying Value | 16,025,000 | ' | 16,025,000 | ' | 16,301,000 |
Investment Funds - US Treasuries [Member] | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' |
Available for sale, Cost/Amortized Cost | 5,020,000 | ' | 5,020,000 | ' | 3,788,000 |
Available for sale, Gross Unrealized Gain | 3,000 | ' | 3,000 | ' | 1,000 |
Available for sale, Carrying Value | 5,023,000 | ' | 5,023,000 | ' | 3,789,000 |
Common Stock [Member] | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' |
Available for sale, Cost/Amortized Cost | 13,104,000 | ' | 13,104,000 | ' | 18,917,000 |
Available for sale, Gross Unrealized Gain | -975,000 | ' | -975,000 | ' | 1,704,000 |
Available for sale, Carrying Value | 12,129,000 | ' | 12,129,000 | ' | 20,621,000 |
Mortgage Backed Securities [Member] | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' |
Held to maturity, Cost/Amortized Cost | 56,722,000 | ' | 56,722,000 | ' | 52,002,000 |
Held to maturity, Gross Unrealized Gain | 0 | ' | 0 | ' | 0 |
Held to maturity, Carrying Value | $56,722,000 | ' | $56,722,000 | ' | $52,002,000 |
Significant_Transactions_Durin1
Significant Transactions During the Third Quarter of 2013 and Subsequent Events (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | |||||
Aug. 31, 2013 | Jan. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Aug. 31, 2013 | Sep. 30, 2013 | Oct. 31, 2013 | Sep. 30, 2013 | Oct. 31, 2013 | Sep. 30, 2013 | Aug. 31, 2013 | Sep. 30, 2013 | Aug. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Secured Debt [Member] | Secured Debt [Member] | Secured Debt [Member] | Slater 116 [Member] | Vox Apartments [Member] | Essex Apartment Value Fund II, LP [Member] | Linden Square [Member] | Preferred Interest in LLC, Apartment Development in San Jose [Member] | Preferred Interest in LLC, Apartment Development in San Jose [Member] | Preferred Interest in Related Party LLC, Madison Part in Anaheim [Member] | Preferred Interest in Related Party LLC, Madison Part in Anaheim [Member] | Preferred Interest in Related Party LLC, Madison Part in Anaheim [Member] | |||||||
Subsequent Event [Member] | sqft | Subsequent Event [Member] | Unit | Structured Finance [Member] | Structured Finance [Member] | |||||||||||||
Unit | Unit | |||||||||||||||||
Acquisitions [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost of acquired entity | ' | ' | ' | ' | ' | ' | ' | ' | ' | $29,600,000 | $22,200,000 | ' | ' | ' | ' | ' | ' | ' |
Number of units | ' | ' | ' | ' | ' | ' | ' | ' | ' | 108 | 58 | ' | ' | ' | ' | ' | ' | ' |
Area of real estate property (in square feet) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,100 | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of property occupied or leased (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 44.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Dispositions [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale of land held for future development | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 294,000,000 | 25,300,000 | ' | ' | ' | ' | ' |
Ownership percentage in Fund II (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28.20% | ' | ' | ' | ' | ' | ' |
Number of units disposed of | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' |
Company's share of the penalty paid on repayment of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' |
Gain on sale of land | ' | ' | 0 | 0 | 1,503,000 | 0 | ' | ' | ' | ' | ' | 137,800,000 | 12,700,000 | ' | ' | ' | ' | ' |
Company's share of the gain on sale of assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36,400,000 | ' | ' | ' | ' | ' | ' |
Number of units expected to be sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' |
Secured Debt [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity period of debt instrument | ' | ' | ' | ' | ' | ' | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of term loan | ' | ' | ' | ' | ' | ' | 45,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis spread on rate (in hundredths) | ' | ' | ' | ' | ' | ' | 1.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Description on variable interest rate | ' | ' | ' | ' | ' | ' | 'LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of interest rate swap | ' | ' | ' | ' | ' | ' | 45,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate on interest rate swap (in hundredths) | ' | ' | ' | ' | ' | ' | 3.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment of debt | ' | ' | ' | ' | 536,926,000 | 1,196,977,000 | ' | 10,100,000 | 19,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Undrawn capacity on unsecured debt | ' | ' | ' | ' | ' | ' | ' | 609,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Structured Financing [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred equity investment in multifamily development project | ' | ' | ' | ' | 150,852,000 | 158,769,000 | ' | ' | ' | ' | ' | ' | ' | ' | 8,500,000 | ' | ' | ' |
Preferred return on preferred equity investment (in hundredths) | ' | 12.00% | 9.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.00% | 12.00% | ' | 9.00% | 9.00% |
Investment period | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' |
Percentage of return on preferred equity investment before reduction (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13.00% | ' | 13.00% |
Maximum extension in investment maturity period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | '1 year |
Income from preferred equity restructuring agreement | ' | ' | $40,802,000 | $3,547,000 | $52,295,000 | $8,998,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $400,000 |
Coinvestments_Details
Co-investments (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Aug. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Jan. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total co-investment | $8,500,000 | ' | ' | ' | $674,075,000 | ' | $674,075,000 | ' | $571,345,000 |
Preferred return rate (in hundredths) | ' | ' | ' | 12.00% | 9.00% | ' | ' | ' | ' |
Preferred equity redemption | ' | 13,100,000 | 9,700,000 | ' | ' | ' | ' | ' | ' |
Early redemption penalties | ' | 500,000 | 400,000 | ' | ' | ' | ' | ' | ' |
Investment Maturity Period | '3 years | ' | ' | ' | ' | ' | ' | ' | ' |
Income from preferred equity restructuring agreement | ' | ' | ' | ' | 40,802,000 | 3,547,000 | 52,295,000 | 8,998,000 | ' |
Balance sheets [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rental properties and real estate under development | ' | ' | ' | ' | 45,804,000 | ' | 45,804,000 | ' | 66,851,000 |
Other Liabilities | ' | ' | ' | ' | 22,366,000 | ' | 22,366,000 | ' | 22,167,000 |
Statement of operations [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense | ' | ' | ' | ' | -26,187,000 | -25,064,000 | -77,724,000 | -74,380,000 | ' |
General and administrative | ' | ' | ' | ' | -6,075,000 | -5,276,000 | -18,925,000 | -16,440,000 | ' |
Depreciation and Amortization | ' | ' | ' | ' | -3,005,000 | -2,927,000 | -8,937,000 | -8,681,000 | ' |
Membership interest in Wesco I [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total co-investment | ' | ' | ' | ' | 142,362,000 | ' | 142,362,000 | ' | 143,874,000 |
Partnership interest in Fund II [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total co-investment | ' | ' | ' | ' | 4,301,000 | ' | 4,301,000 | ' | 53,601,000 |
Membership interest in a limited liability company that owns Expo [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total co-investment | ' | ' | ' | ' | 18,356,000 | ' | 18,356,000 | ' | 18,752,000 |
Membership interest in Wesco III [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total co-investment | ' | ' | ' | ' | 37,766,000 | ' | 37,766,000 | ' | 9,941,000 |
Total operating co-investments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total co-investment | ' | ' | ' | ' | 202,785,000 | ' | 202,785,000 | ' | 226,168,000 |
Membership interests in limited liability companies that own and are developing Epic, Connolly Station, Mosso I. & II. , and Elkhorn and The Village [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total co-investment | ' | ' | ' | ' | 294,573,000 | ' | 294,573,000 | ' | 186,362,000 |
Membership interests in limited liability companies that own and are developing The Huxley and The Dylan [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total co-investment | ' | ' | ' | ' | 17,894,000 | ' | 17,894,000 | ' | 16,552,000 |
Membership interests in limited liability companies that owns and is developing One South Market [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total co-investment | ' | ' | ' | ' | 17,009,000 | ' | 17,009,000 | ' | 0 |
Total development co-investments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total co-investment | ' | ' | ' | ' | 329,476,000 | ' | 329,476,000 | ' | 202,914,000 |
Membership interest in Wesco II that owns a preferred equity interest in Parkmerced with a preferred return of 10.1% [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total co-investment | ' | ' | ' | ' | 93,983,000 | ' | 93,983,000 | ' | 91,843,000 |
Preferred return rate (in hundredths) | ' | ' | ' | ' | ' | ' | 10.10% | ' | ' |
Preferred interests in related party limited liability companies that owns Sage at Cupertino with a preferred return of 9.5% [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total co-investment | ' | ' | ' | ' | 16,159,000 | ' | 16,159,000 | ' | 14,438,000 |
Preferred return rate (in hundredths) | ' | ' | ' | ' | ' | ' | 9.50% | ' | ' |
Preferred interest in a related party limited liability company that owns Madison Park at Anaheim with a preferred return of 9% [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total co-investment | ' | ' | ' | ' | 13,824,000 | ' | 13,824,000 | ' | 13,175,000 |
Preferred return rate (in hundredths) | ' | ' | ' | ' | ' | ' | 9.00% | ' | ' |
Percentage of return on preferred equity investment before reduction (in hundredths) | ' | ' | ' | ' | 13.00% | ' | ' | ' | ' |
Percentage of return on preferred equity investment after reduction (in hundredths) | ' | ' | ' | ' | 9.00% | ' | ' | ' | ' |
Maximum extension in investment maturity period | ' | ' | ' | ' | '1 year | ' | ' | ' | ' |
Preferred interest in related party limited liability company that owns an apartment development in Redwood City with a preferred return of 12% [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total co-investment | ' | ' | ' | ' | 9,234,000 | ' | 9,234,000 | ' | 0 |
Preferred return rate (in hundredths) | ' | ' | ' | ' | ' | ' | 12.00% | ' | ' |
Preferred interest in a limited liability company that owns an apartment development in San Jose with a preferred return of 12% [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total co-investment | ' | ' | ' | ' | 8,614,000 | ' | 8,614,000 | ' | 0 |
Preferred return rate (in hundredths) | ' | ' | ' | ' | ' | ' | 12.00% | ' | ' |
Preferred interests in limited liability companies that own apartment communities in downtown Los Angeles with preferred returns of 9% and 10% repaid in 2013 [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total co-investment | ' | ' | ' | ' | 0 | ' | 0 | ' | 22,807,000 |
Preferred interests in limited liability companies that own apartment communities in downtown Los Angeles with preferred returns of 9% and 10% repaid in 2013 [Member] | Minimum [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred return rate (in hundredths) | ' | ' | ' | ' | ' | ' | 9.00% | ' | ' |
Preferred interests in limited liability companies that own apartment communities in downtown Los Angeles with preferred returns of 9% and 10% repaid in 2013 [Member] | Maximum [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred return rate (in hundredths) | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' |
Total preferred interest investments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total co-investment | ' | ' | ' | ' | 141,814,000 | ' | 141,814,000 | ' | 142,263,000 |
Total co-investment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total co-investment | ' | ' | ' | ' | 674,075,000 | ' | 674,075,000 | ' | 571,345,000 |
Balance sheets [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rental properties and real estate under development | ' | ' | ' | ' | 1,698,072,000 | ' | 1,698,072,000 | ' | 1,745,147,000 |
Other Assets | ' | ' | ' | ' | 86,081,000 | ' | 86,081,000 | ' | 168,061,000 |
Total assets | ' | ' | ' | ' | 1,784,153,000 | ' | 1,784,153,000 | ' | 1,913,208,000 |
Debt | ' | ' | ' | ' | 651,818,000 | ' | 651,818,000 | ' | 820,895,000 |
Other Liabilities | ' | ' | ' | ' | 114,405,000 | ' | 114,405,000 | ' | 91,922,000 |
Equity | ' | ' | ' | ' | 1,017,930,000 | ' | 1,017,930,000 | ' | 1,000,391,000 |
Total liabilities and equity | ' | ' | ' | ' | 1,784,153,000 | ' | 1,784,153,000 | ' | 1,913,208,000 |
Operating Partnership's share of equity | ' | ' | ' | ' | 674,075,000 | ' | 674,075,000 | ' | 571,345,000 |
Statement of operations [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property revenues | ' | ' | ' | ' | 24,796,000 | 34,425,000 | 78,913,000 | 96,981,000 | ' |
Property operating expenses | ' | ' | ' | ' | -10,170,000 | -12,686,000 | -29,872,000 | -35,852,000 | ' |
Net property operating income | ' | ' | ' | ' | 14,626,000 | 21,739,000 | 49,041,000 | 61,129,000 | ' |
Gain on sale of real estate | ' | ' | ' | ' | 137,845,000 | 0 | 146,663,000 | 0 | ' |
Interest expense | ' | ' | ' | ' | -6,052,000 | -9,453,000 | -18,924,000 | -25,790,000 | ' |
General and administrative | ' | ' | ' | ' | -1,419,000 | -916,000 | -4,472,000 | -2,632,000 | ' |
Depreciation and Amortization | ' | ' | ' | ' | -8,718,000 | -12,821,000 | -29,314,000 | -35,593,000 | ' |
Net Loss | ' | ' | ' | ' | 136,282,000 | -1,451,000 | 142,994,000 | -2,886,000 | ' |
Operating Partnership's share of net income | ' | ' | ' | ' | 40,802,000 | 3,547,000 | 52,295,000 | 8,998,000 | ' |
Preferred equity Interest investment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total co-investment | ' | ' | ' | $8,600,000 | ' | ' | ' | ' | ' |
Preferred return rate (in hundredths) | 12.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Notes_and_Other_Receivables_De
Notes and Other Receivables (Details) (USD $) | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||||||
Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |||||
Note | Secured Due December 2014 [Member] | Secured Due December 2014 [Member] | Secured Due May 2013 [Member] | Secured Due May 2013 [Member] | Secured Due March 2013 [Member] | Secured Due March 2013 [Member] | Secured Effective March 2013 [Member] | Secured Effective March 2013 [Member] | Fund II [Member] | Wesco III [Member] | Wesco III [Member] | Note and Other Receivables From Affiliates [Member] | Note and Other Receivables From Affiliates [Member] | Other Receivables [Member] | Other Receivables [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Notes receivable | $67,628,000 | $66,163,000 | $3,212,000 | [1] | $3,212,000 | [1] | $0 | $971,000 | $0 | $10,800,000 | $0 | $18,499,000 | ' | ' | ' | $60,820,000 | [2] | $28,896,000 | [2] | $3,596,000 | $3,785,000 |
Stated interest rate (in hundredths) | ' | ' | 4.00% | ' | 8.00% | ' | 8.80% | ' | 9.60% | ' | ' | 3.10% | ' | ' | ' | ' | ' | ||||
Income related acceleration | 800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Variable rate basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR + 1.75% | ' | 'LIBOR + 2.50% | ' | ' | ' | ' | ||||
Basis spread on rate (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.75% | ' | 2.50% | ' | ' | ' | ' | ||||
Number of notes for which payment was received | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Proceeds from notes receivable | 30,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Note receivable contributed to Elkhorn co investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27,300,000 | ' | ' | ' | ' | ' | ||||
Short term Bridge Loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 42,400,000 | ' | 56,800,000 | ' | ' | ' | ' | ||||
Bridge loan repayment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $26,000,000 | ' | ' | ' | ' | ' | ||||
Term to repay the bridge loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years | ' | ' | ' | ' | ' | ||||
[1] | The borrower funds an impound account for capital replacement. | ||||||||||||||||||||
[2] | During the second quarter of 2013, the Operating Partnership provided short-term bridge loans to Fund II and Wesco III aggregating $42.4 million and $56.8 million, respectively, at rates of LIBOR + 1.75% and LIBOR + 2.50%, respectively. In July 2013, Fund II repaid the $42.4 million loan. |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Jan. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 31, 2013 | Jul. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 31, 2013 | |
Note | Marcus and Millichamp Company TMMC Affiliate [Member] | Marcus and Millichamp Company TMMC Affiliate [Member] | Marcus and Millichamp Company TMMC Affiliate [Member] | Marcus and Millichamp Company TMMC Affiliate [Member] | Marcus and Millichamp Company TMMC Affiliate [Member] | Wesco III [Member] | ||||||
Related Party Transactions [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Management and other fees from affiliates including management, property management, development and redevelopment fees from co-investments, net of intercompany amounts eliminated by company | ' | $3,000,000 | $2,900,000 | $9,100,000 | $7,900,000 | ' | ' | ' | ' | ' | ' | ' |
Preferred return on preferred equity investment (in hundredths) | 12.00% | 9.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from preferred equity restructuring agreement | ' | 40,802,000 | 3,547,000 | 52,295,000 | 8,998,000 | ' | ' | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Brokerage commission paid to affiliate | ' | ' | ' | ' | ' | ' | 600,000 | 0 | 0 | 0 | 0 | ' |
Related party preferred equity interest investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,600,000 | ' | ' |
Notes to affiliates which have been repaid | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' |
Notes to affiliates outstanding | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' |
Short term bridge loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $56,800,000 |
Unsecured_Debt_and_Lines_of_Cr2
Unsecured Debt and Lines of Credit (Details) (USD $) | 9 Months Ended | ||
Sep. 30, 2013 | Apr. 30, 2013 | Dec. 31, 2012 | |
Unsecured debts and line of credit [Abstract] | ' | ' | ' |
Unsecured debt | $1,409,883,000 | ' | $1,112,084,000 |
Lines of credit | 15,352,000 | ' | 141,000,000 |
Total unsecured debt and lines of credit | 1,425,235,000 | ' | 1,253,084,000 |
Senior Notes [Abstract] | ' | ' | ' |
Senior Notes | ' | 300,000,000 | ' |
Coupon Rate (in hundredths) | ' | 3.25% | ' |
Senior Note, Maturity Date | 1-May-23 | ' | ' |
Bonds Private Placement - Fixed Rate [Member] | ' | ' | ' |
Unsecured debts and line of credit [Abstract] | ' | ' | ' |
Unsecured debt | 465,000,000 | ' | 465,000,000 |
Weighted Average Maturity | '5 years 6 months | ' | ' |
Term Loan - Variable Rate [Member] | ' | ' | ' |
Unsecured debts and line of credit [Abstract] | ' | ' | ' |
Unsecured debt | 350,000,000 | ' | 350,000,000 |
Weighted Average Maturity | '3 years 4 months 24 days | ' | ' |
Weighted average interest rate (in hundredths) | 2.50% | ' | 2.70% |
Bonds Public Offering - Fixed Rate [Member] | ' | ' | ' |
Unsecured debts and line of credit [Abstract] | ' | ' | ' |
Unsecured debt | $594,883,000 | ' | $297,084,000 |
Weighted Average Maturity | '9 years 2 months 12 days | ' | ' |
Weighted average interest rate (in hundredths) | 4.00% | ' | 4.20% |
Line of Credit [Member] | ' | ' | ' |
Unsecured debts and line of credit [Abstract] | ' | ' | ' |
Weighted Average Maturity, Line of credit | '3 months 18 days | ' | ' |
Weighted average interest rate (in hundredths) | 2.20% | ' | 2.30% |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Aug. 31, 2013 | Dec. 31, 2012 |
Segment | ||||||
Segment Information [Abstract] | ' | ' | ' | ' | ' | ' |
Number of reportable operating segments defined by geographical regions | ' | ' | 3 | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' |
Total property revenues | $152,945 | $134,518 | $448,318 | $388,642 | ' | ' |
Total net operating income | 102,382 | 89,445 | 302,676 | 261,488 | ' | ' |
Management and other fees | 2,957 | 3,072 | 9,139 | 8,312 | ' | ' |
Depreciation | -48,438 | -42,897 | -143,320 | -125,137 | ' | ' |
General and administrative | -6,075 | -5,276 | -18,925 | -16,440 | ' | ' |
Cost of management and other fees | -1,613 | -1,642 | -5,047 | -4,893 | ' | ' |
Interest expense before amortization | -26,187 | -25,064 | -77,724 | -74,380 | ' | ' |
Amortization expense | -3,005 | -2,927 | -8,937 | -8,681 | ' | ' |
Interest and other income | 2,387 | 3,003 | 9,326 | 10,869 | ' | ' |
Equity income from co-investments | 40,802 | 3,547 | 52,295 | 8,998 | ' | ' |
Gain (loss) on early retirement of debt | -178 | -1,211 | 846 | -2,661 | ' | ' |
Gain on sale of land | 0 | 0 | 1,503 | 0 | ' | ' |
Gain on remeasurement of co-investment | 0 | 0 | 0 | 21,947 | ' | ' |
Income from continuing operations | 63,032 | 20,050 | 121,832 | 79,422 | ' | ' |
Net reportable operating segment - real estate assets | 4,080,820 | ' | 4,080,820 | ' | ' | 3,952,155 |
Real estate under development | 45,804 | ' | 45,804 | ' | ' | 66,851 |
Co-investments | 674,075 | ' | 674,075 | ' | 8,500 | 571,345 |
Cash and cash equivalents, including restricted cash | 55,994 | ' | 55,994 | ' | ' | 42,126 |
Marketable securities | 89,899 | ' | 89,899 | ' | ' | 92,713 |
Notes and other receivables | 67,628 | ' | 67,628 | ' | ' | 66,163 |
Other non-segment assets | 71,382 | ' | 71,382 | ' | ' | 55,870 |
Total assets | 5,085,602 | ' | 5,085,602 | ' | ' | 4,847,223 |
Southern California [Member] | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' |
Total property revenues | 67,114 | 64,339 | 199,177 | 184,255 | ' | ' |
Total net operating income | 44,084 | 41,932 | 132,983 | 122,868 | ' | ' |
Net reportable operating segment - real estate assets | 1,650,435 | ' | 1,650,435 | ' | ' | 1,675,265 |
Northern California [Member] | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' |
Total property revenues | 54,755 | 43,605 | 158,614 | 127,797 | ' | ' |
Total net operating income | 37,822 | 29,572 | 109,567 | 87,740 | ' | ' |
Net reportable operating segment - real estate assets | 1,620,434 | ' | 1,620,434 | ' | ' | 1,489,095 |
Seattle Metro [Member] | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' |
Total property revenues | 27,212 | 23,559 | 79,443 | 67,436 | ' | ' |
Total net operating income | 18,047 | 15,411 | 52,453 | 44,481 | ' | ' |
Net reportable operating segment - real estate assets | 723,175 | ' | 723,175 | ' | ' | 699,465 |
Other Real Estate Assets [Member] | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' |
Total property revenues | 3,864 | 3,015 | 11,084 | 9,154 | ' | ' |
Total net operating income | 2,429 | 2,530 | 7,673 | 6,399 | ' | ' |
Net reportable operating segment - real estate assets | $86,776 | ' | $86,776 | ' | ' | $88,330 |
Net_Income_Per_Common_Unit_Det
Net Income Per Common Unit (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Basic [Abstract] | ' | ' | ' | ' | ||||
Income from continuing operations available to common unitholders | $59,934 | $17,124 | $112,653 | $70,660 | ||||
Income from continuing operations available to common unitholders (in shares) | 39,467,492 | 37,836,555 | 39,333,100 | 36,976,298 | ||||
Income from continuing operations available to common unitholders (in dollars per share) | $1.52 | $0.45 | $2.86 | $1.91 | ||||
Income from discontinued operations available to common unitholders | 12,843 | 172 | 13,321 | 10,528 | ||||
Income from discontinued operations available to common unitholders (in shares) | 39,467,000 | 37,837,000 | 39,333,000 | 36,976,000 | ||||
Income from discontinued operations available to common unitholders (in dollars per share) | $0.32 | $0.01 | $0.34 | $0.29 | ||||
Net income available to common units | 72,777 | 17,296 | 125,974 | 81,188 | ||||
Net income available to common units (in dollars per share) | $1.84 | $0.46 | $3.20 | $2.20 | ||||
Effect of Dilutive Securities | 54 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Effect of Dilutive Securities (in shares) | 116,000 | [1] | 99,000 | [1] | 89,000 | [1] | 98,000 | [1] |
Diluted [Abstract] | ' | ' | ' | ' | ||||
Income from continuing operations available to common unitholders | 59,988 | 17,124 | 112,653 | 70,660 | ||||
Income from continuing operations available to common unitholders (in shares) | 39,583,000 | 37,936,000 | 39,422,000 | 37,074,000 | ||||
Income from continuing operations available to common unitholders (in dollars per share) | $1.52 | $0.44 | $2.86 | $1.91 | ||||
Income from discontinued operations available to common unitholders | 12,843 | 172 | 13,321 | 10,528 | ||||
Income from discontinued operations available to common unitholders (in shares) | 39,583,000 | 37,936,000 | 39,422,000 | 37,074,000 | ||||
Income from discontinued operations available to common unitholders (in dollars per share) | $0.32 | $0.01 | $0.34 | $0.28 | ||||
Total income (Diluted) | $72,831 | $17,296 | $125,974 | $81,188 | ||||
Net income available to common units (in dollars per share) | $1.84 | $0.45 | $3.20 | $2.19 | ||||
Stock Options [Member] | ' | ' | ' | ' | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ||||
Anti-dilutive securities (in shares) | 38,825 | ' | 38,825 | ' | ||||
[1] | Instruments granted in equity-based payment transactions are considered participating securities prior to vesting and, therefore, are considered in computing basic earnings per unit under the two-class method. The two-class method is an earnings allocation method for calculating earnings per unit when a companybs capital structure includes either two or more classes of common equity or common equity and participating shares. The Companybs stock options of 38,825 for both the three and nine months ended September 30, 2013, respectively, were not included in the diluted earnings per unit calculation because the effects on earnings per unit were anti-dilutive. The Operating Partnership has the ability to redeem DownREIT limited partnership units for cash and does not consider them to be potentially dilutive securities. |
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Details) (Designated as Hedging Instrument [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | Contract | |
Interest Rate Cap [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Notional amount of interest rate contracts | $176.30 | ' |
Number of derivative instruments held | 10 | ' |
Aggregate carrying value of the interest rate cap contracts | 0 | 0 |
Interest Rate Swap [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Notional amount of interest rate contracts | 300 | ' |
Total amount of unsecured loan | 350 | ' |
Interest rate (in hundredths) | 2.29% | ' |
Aggregate carrying value of the interest rate swap contracts | $3.20 | $6.60 |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 1 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2012 | Mar. 31, 2012 | Aug. 31, 2013 | |
Tierra Del Sol/Norte [Member] | Alpine Country [Member] | Linden Square [Member] | |||||
Unit | Unit | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Units in the community | ' | ' | ' | ' | 156 | 108 | ' |
Sales price of communities sold | ' | ' | ' | ' | $17,200,000 | $11,100,000 | $25,300,000 |
Gain on sale of real estate | ' | ' | ' | ' | 7,000,000 | 3,900,000 | 12,700,000 |
Schedule of components from discontinued operations [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Rental revenues | 385,000 | 552,000 | 1,578,000 | 2,275,000 | ' | ' | ' |
Property operating expenses | -151,000 | -236,000 | -573,000 | -997,000 | ' | ' | ' |
Depreciation and amortization | -49,000 | -144,000 | -342,000 | -533,000 | ' | ' | ' |
Income from real estate sold | 185,000 | 172,000 | 663,000 | 745,000 | ' | ' | ' |
Gain on sale | 12,658,000 | 0 | 12,658,000 | 10,870,000 | ' | ' | ' |
Internal disposition costs and taxes | 0 | 0 | 0 | -1,087,000 | ' | ' | ' |
Income from discontinued operations | $12,843,000 | $172,000 | $13,321,000 | $10,528,000 | ' | ' | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | Lease |
Guarantor Obligations [Line Items] | ' |
Number of non cancelable ground leases | 6 |
Total minimum lease commitments under land leases and operating leases for next five years | $1.70 |
Payment Guarantee [Member] | Construction Contracts [Member] | ' |
Guarantor Obligations [Line Items] | ' |
Maximum exposure of the guarantee | $88.90 |