DEI XBRL Filing Information
DEI XBRL Filing Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 30, 2015 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Douglas Emmett Inc | |
Entity Central Index Key | 1,364,250 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 146,779,348 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Land | $ 924,965 | $ 900,813 |
Buildings and improvements | 5,688,794 | 5,590,118 |
Tenant improvements and lease intangibles | 708,461 | 666,672 |
Investment in real estate, gross | 7,322,220 | 7,157,603 |
Less: accumulated depreciation and amortization | (1,673,716) | (1,531,157) |
Investment in real estate, net | 5,648,504 | 5,626,446 |
Cash and cash equivalents | 9,930 | 18,823 |
Tenant receivables, net | 2,036 | 2,143 |
Deferred rent receivables, net | 79,464 | 74,997 |
Acquired lease intangible assets, net | 4,729 | 3,527 |
Investment in unconsolidated real estate funds | 165,156 | 171,390 |
Other assets | 34,037 | 57,270 |
Total assets | 5,943,856 | 5,954,596 |
Liabilities | ||
Secured notes payable and revolving credit facility | 3,474,111 | 3,435,290 |
Interest payable, accounts payable and deferred revenue | 67,526 | 54,364 |
Security deposits | 38,063 | 37,450 |
Acquired lease intangible liabilities, net | 32,145 | 45,959 |
Interest rate contract liabilities | 31,465 | 37,386 |
Dividends payable | 30,735 | 30,423 |
Total liabilities | 3,674,045 | 3,640,872 |
Douglas Emmett, Inc. stockholders' equity: | ||
Common Stock, $0.01 par value 750,000,000 authorized, 146,359,348 and 144,869,101 outstanding at September 30, 2015 and December 31, 2014, respectively | 1,464 | 1,449 |
Additional paid-in capital | 2,698,708 | 2,678,798 |
Accumulated other comprehensive loss | (26,850) | (30,089) |
Accumulated deficit | (754,571) | (706,700) |
Total Douglas Emmett, Inc. stockholders' equity | 1,918,751 | 1,943,458 |
Noncontrolling interests | 351,060 | 370,266 |
Total equity | 2,269,811 | 2,313,724 |
Total liabilities and equity | $ 5,943,856 | $ 5,954,596 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares outstanding | 146,359,348 | 144,869,101 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Office rental | ||||
Rental revenues | $ 103,436 | $ 97,465 | $ 307,895 | $ 296,342 |
Tenant recoveries | 11,074 | 11,093 | 32,687 | 33,720 |
Parking and other income | 21,715 | 19,399 | 63,890 | 58,534 |
Total office revenues | 136,225 | 127,957 | 404,472 | 388,596 |
Multifamily rental | ||||
Rental revenues | 22,133 | 18,767 | 65,752 | 55,447 |
Parking and other income | 1,719 | 1,417 | 5,119 | 4,392 |
Total multifamily revenues | 23,852 | 20,184 | 70,871 | 59,839 |
Total revenues | 160,077 | 148,141 | 475,343 | 448,435 |
Operating Expenses | ||||
Office expenses | 49,195 | 47,631 | 139,936 | 135,644 |
Multifamily expenses | 6,191 | 5,261 | 17,941 | 15,490 |
General and administrative | 6,867 | 6,658 | 21,701 | 20,181 |
Depreciation and amortization | 52,229 | 50,111 | 153,309 | 151,249 |
Total operating expenses | 114,482 | 109,661 | 332,887 | 322,564 |
Operating income | 45,595 | 38,480 | 142,456 | 125,871 |
Other income | 2,129 | 3,769 | 13,103 | 12,642 |
Other expenses | (1,605) | (1,983) | (4,796) | (5,114) |
Income, including depreciation, from unconsolidated real estate funds | 898 | 665 | 3,548 | 2,725 |
Interest expense | (32,705) | (32,098) | (101,521) | (95,888) |
Acquisition-related expenses | (153) | (152) | (641) | (180) |
Net income | 14,159 | 8,681 | 52,149 | 40,056 |
Less: Net income attributable to noncontrolling interests | (2,089) | (1,292) | (7,932) | (6,328) |
Net income attributable to common stockholders | $ 12,070 | $ 7,389 | $ 44,217 | $ 33,728 |
Net income attributable to common stockholders per share – basic (usd per share) | $ 0.082 | $ 0.051 | $ 0.302 | $ 0.234 |
Net income attributable to common stockholders per share – diluted (usd per share) | 0.080 | 0.050 | 0.293 | 0.227 |
Dividends declared per common share (usd per share) | $ 0.21 | $ 0.20 | $ 0.63 | $ 0.60 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 14,159 | $ 8,681 | $ 52,149 | $ 40,056 |
Other comprehensive income: cash flow hedges | (8,237) | 12,110 | 4,148 | 20,270 |
Comprehensive income | 5,922 | 20,791 | 56,297 | 60,326 |
Less: Comprehensive income attributable to noncontrolling interests | (843) | (3,388) | (8,841) | (10,301) |
Comprehensive income attributable to common stockholders | $ 5,079 | $ 17,403 | $ 47,456 | $ 50,025 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Activities | ||
Net income | $ 52,149 | $ 40,056 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Income, including depreciation, from unconsolidated real estate funds | (3,548) | (2,725) |
Gain from insurance recoveries for damage to real estate | (82) | (6,146) |
Depreciation and amortization | 153,309 | 151,249 |
Net accretion of acquired lease intangibles | (15,806) | (10,506) |
Straight-line rent | (4,467) | (3,377) |
Increase in the allowance for doubtful accounts | 155 | 18 |
Amortization of deferred loan costs | 5,136 | 3,027 |
Non-cash market value adjustments on interest rate contracts | 0 | 50 |
Non-cash amortization of equity compensation | 5,973 | 4,049 |
Operating distributions from unconsolidated real estate funds | 762 | 660 |
Change in working capital components: | ||
Tenant receivables | (48) | 18 |
Interest payable, accounts payable and deferred revenue | 14,589 | 21,230 |
Security deposits | 613 | 771 |
Other assets | (3,084) | (3,665) |
Net cash provided by operating activities | 205,651 | 194,709 |
Investing Activities | ||
Capital expenditures for improvements to real estate | (52,833) | (63,278) |
Capital expenditures for developments | (2,636) | (3,099) |
Insurance recoveries for damage to real estate | 82 | 4,236 |
Property acquisition | (89,906) | 0 |
Deposits for property acquisitions | 0 | (3,000) |
Note receivable | 0 | (27,500) |
Proceeds from repayment of note receivable | 1,000 | 0 |
Loan payments received from related party | 906 | 882 |
Contributions to unconsolidated real estate funds | (24) | 0 |
Capital distributions from unconsolidated real estate funds | 5,711 | 8,664 |
Net cash used in investing activities | (137,700) | (83,095) |
Financing Activities | ||
Proceeds from borrowings | 1,099,400 | 189,000 |
Repayment of borrowings | (1,060,579) | (219,930) |
Loan costs | (8,164) | (377) |
Payment of refundable loan deposit | 0 | (1,550) |
Contributions by noncontrolling interests | 0 | 250 |
Distributions to noncontrolling interests | (17,549) | (17,315) |
Cash dividends to common stockholders | (91,775) | (86,080) |
Exercise of stock options | 1,823 | 0 |
Repurchase of stock options | 0 | (4,524) |
Repurchase of operating partnership units | 0 | (2,827) |
Net cash used in financing activities | (76,844) | (143,353) |
Decrease in cash and cash equivalents | (8,893) | (31,739) |
Cash and cash equivalents at beginning of period | 18,823 | 44,206 |
Cash and cash equivalents at end of period | 9,930 | 12,467 |
SUPPLEMENTAL CASH FLOWS INFORMATION | ||
Cash paid for interest, net of capitalized interest of $701 and $206 for the nine months ended September 30, 2015 and 2014, respectively | 96,617 | 93,000 |
Write-off of fully depreciated and amortized tenant improvements and lease intangibles | 10,751 | 0 |
Write-off of fully amortized acquired lease intangible assets | 36 | 0 |
Write-off of fully accreted acquired lease intangible liabilities | 22,496 | 0 |
Settlement of note receivable in exchange for land and building acquired | 26,500 | 0 |
Issuance of operating partnership units in exchange for land and building acquired | 1,000 | 0 |
Application of deposit to purchase price of property | 2,500 | 0 |
Loss from market value adjustments - derivatives | (21,975) | (7,059) |
Accrual for dividends payable to common stockholders | 30,735 | 28,959 |
Operating Partnership units redeemed with shares of the Company's common stock | 18,101 | 29,555 |
Fund X [Member] | ||
SUPPLEMENTAL CASH FLOWS INFORMATION | ||
Loss from market value adjustments - derivatives | $ (2,483) | $ (1,048) |
Consolidated Statements of Cas7
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Cash Flows [Abstract] | ||
Capitalized interest paid | $ 701 | $ 206 |
Overview
Overview | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Overview | Overview Organization and Business Description Douglas Emmett, Inc. is a fully integrated, self-administered and self-managed Real Estate Investment Trust (REIT). We are one of the largest owners and operators of high-quality office and multifamily properties in Los Angeles County, California and Honolulu, Hawaii. We focus on owning and acquiring a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities. Through our interest in Douglas Emmett Properties, LP (our operating partnership) and its subsidiaries, as well as our investment in our institutional unconsolidated real estate funds (Funds), we own or partially own, manage, lease, acquire and develop real estate, consisting primarily of office and multifamily properties in Los Angeles County, California and Honolulu, Hawaii. As of September 30, 2015 , we owned a consolidated portfolio of fifty-four office properties (including ancillary retail space) and ten multifamily properties, as well as the fee interests in two parcels of land subject to ground leases from which we earn ground rent income. Alongside our consolidated portfolio, we also manage and own equity interests in our Funds which, at September 30, 2015 , owned eight additional office properties, for a combined sixty-two office properties in our total portfolio. The terms "us," "we" and "our" as used in these financial statements refer to Douglas Emmett, Inc. and its subsidiaries. Basis of Presentation The accompanying consolidated financial statements as of September 30, 2015 and December 31, 2014 , and for the three and nine months ended September 30, 2015 and 2014 , are the consolidated financial statements of Douglas Emmett, Inc. and its subsidiaries, including our operating partnership. All significant intercompany balances and transactions have been eliminated in our consolidated financial statements, and to conform to additional line items added in the current period presentation, we have reported more detail for the prior period. During the current reporting period, we reported our proceeds from, and repayments of, borrowings related to our credit facility on a gross basis in the accompanying Consolidated Statements of Cash Flows, and we have reclassified the comparable period, which was previously reported on a net basis, to conform to the current period presentation. The change in presentation did not change the net cash provided by (used in) financing activities that we previously reported for the comparable period. The accompanying unaudited interim financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP) may have been condensed or omitted pursuant to SEC rules and regulations, although we believe that the disclosures are adequate to make their presentation not misleading. The accompanying unaudited interim financial statements include, in our opinion, all adjustments, consisting of normal recurring adjustments, necessary to present fairly the financial information set forth therein. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 . The interim financial statements should be read in conjunction with the consolidated financial statements in our 2014 Annual Report on Form 10-K and the notes thereto. Any references in this report to the number of properties, square footage and geography, are outside the scope of our independent registered public accounting firm’s review of our financial statements, in accordance with the standards of the United States Public Company Accounting Oversight Board (PCAOB). |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | Summary of Significant Accounting Policies During the period covered by this report, we have not made any material changes to our significant accounting policies included in our 2014 Annual Report on Form 10-K. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. Income Taxes We have elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended. Provided that we qualify for taxation as a REIT, we are generally not subject to corporate-level income tax on the earnings distributed currently to our stockholders that we derive from our REIT qualifying activities. We are subject to corporate-level tax on the earnings that we derive through our taxable REIT subsidiaries (TRS). New Accounting Pronouncements Changes to GAAP are established by the Financial Accounting Standards Board (FASB) in the form of Accounting Standard Updates (ASUs). We consider the applicability and impact of all ASUs. Recently Adopted Accounting Pronouncements In April 2014, the FASB issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (Topics 205 and 360), which provides guidance for reporting discontinued operations. The amendments in this ASU change the requirements for reporting discontinued operations in Subtopic 205-20, Presentation of Financial Statements . The ASU was effective for fiscal years, and interim periods within those years, beginning on or after December 15, 2014, which for us was the first quarter of 2015. We adopted the ASU in the first quarter of 2015 and it did not have a material impact on our financial position, results of operations or disclosures. In September 2015, the FASB issued ASU No. 2015-16, Simplifying the Accounting for Measurement-Period Adjustments , which amends Business Combinations (Topic 805) . The amendments in this Update require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments in this Update require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments in this Update require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, which for us would be the first quarter of 2016, and early adoption is permitted. The amendments in this Update should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this Update with earlier application permitted for financial statements that have not been issued. We do not expect the ASU to have a material impact on our financial position, results of operations or disclosures. Recently Issued Accounting Pronouncements In March 2015, the FASB issued ASU No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30), which provides guidance on the presentation of debt issuance costs. To simplify the presentation of debt issuance costs, the amendments in this Update would require that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the related debt, consistent with the manner in which debt discounts or premiums would be presented. This ASU is the final version of Proposed ASU 2014-250-Interest-Imputation of Interest (Subtopic 835-30), which has been deleted. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, which for us would be the first quarter of 2016, and early adoption is permitted. We plan on early adopting the ASU in our 10-K filing for the year ending December 31, 2015. The ASU requires that the new presentation of debt issuance costs be applied on a retrospective basis. The change in presentation is required to be disclosed as a change in accounting principle. We do not expect the ASU to have a material impact on our financial position, results of operations or disclosures. In August 2015, the FASB issued ASU No. 2015-15, which provides additional guidance regarding the presentation of debt issuance costs associated with line-of-credit arrangements. The FASB issued this ASU due to the absence of authoritative guidance within ASU No. 2015-03 for debt issuance costs related to line-of-credit arrangements. The ASU permits the debt issuance costs associated with line-of-credit arrangements to be presented as an asset, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, which for us would be the first quarter of 2016, and early adoption is permitted. We plan on early adopting the ASU in our 10-K filing for the year ending December 31, 2015. The ASU requires that the new presentation of debt issuance costs be applied on a retrospective basis. The change in presentation is required to be disclosed as a change in accounting principle. We do not expect the ASU to have a material impact on our financial position, results of operations or disclosures. In August 2015, the FASB issued ASU No. 2015-14, which defers the effective date of ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) by one year. As a result, the ASU is now effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, which for us is the first quarter of 2018. Earlier application is permitted for fiscal years beginning after December 15, 2016, including interim reporting periods within those years, which for us is the first quarter of 2017. We do not expect this ASU to have a material impact on our financial position, results of operations or disclosures, as lease contracts are not within the scope of this ASU. The FASB has not issued any other ASUs during 2015 that we expect to be applicable and have a material impact on our future financial position, results of operations or disclosures. |
Investment in Real Estate
Investment in Real Estate | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Investment in Real Estate | Investment in Real Estate 2015 Acquisitions During the nine months ended September 30, 2015 , we made two acquisitions: (i) on March 5, 2015 , we purchased a 227,000 square foot Class A multi-tenant office property (First Financial Plaza), located in Encino, California, for $92.4 million , or approximately $407 per square foot, and (ii) on February 12, 2015 , we acquired the fee interest in the land (Harbor Court Land) under one of our office buildings for $27.5 million . See Notes 5 and 13 . We recognized $6.6 million of accretion of an above-market ground lease related to the purchase of the Harbor Court Land, which is included in other income in the consolidated statement of operations. See Note 4 . The results of operations for these acquisitions are included in our consolidated statements of operations after the respective date of their acquisitions. The table below (in thousands) summarizes our preliminary purchase price allocations for the acquisitions (these allocations are subject to adjustments within twelve months of the acquisition date): Harbor Court Land First Financial Plaza Investment in real estate: Land $ 12,060 $ 12,092 Buildings and improvements 15,440 75,039 Tenant improvements and lease intangibles — 6,065 Acquired above and below-market leases, net — (790 ) Net assets and liabilities acquired $ 27,500 $ 92,406 2014 Acquisitions We did not acquire any properties during the nine months ended September 30, 2014 . |
Acquired Lease Intangibles
Acquired Lease Intangibles | 9 Months Ended |
Sep. 30, 2015 | |
Acquired Lease Intangibles [Abstract] | |
Acquired Lease Intangibles | Acquired Lease Intangibles Summary of our Acquired Lease Intangibles The table below (in thousands) summarizes our above/below-market leases: September 30, 2015 December 31, 2014 Above-market tenant leases (1) $ 4,846 $ 3,040 Accumulated amortization - above-market tenant leases (2,629 ) (2,082 ) Below-market ground leases 3,198 3,198 Accumulated amortization - below-market ground leases (686 ) (629 ) Acquired lease intangible assets, net $ 4,729 $ 3,527 Below-market tenant leases (1) $ 130,408 $ 138,088 Accumulated accretion - below-market tenant leases (101,833 ) (102,335 ) Above-market ground leases (2) 4,017 16,200 Accumulated accretion - above-market ground leases (2) (447 ) (5,994 ) Acquired lease intangible liabilities, net $ 32,145 $ 45,959 ________________________________________________ (1) Includes leases from an office property that we purchased in the first quarter of 2015 . See Note 3 . (2) In the first quarter of 2015 , we recognized $6.6 million of accretion for an above-market ground lease in other income related to the purchase of the Harbor Court Land (see Note 3 ) and removed the cost and accumulated accretion of $10.0 million for that ground lease from our balance sheet. Impact on the Consolidated Statements of Operations The table below (in thousands) summarizes the net amortization/accretion related to our above/below-market leases: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net accretion of above/below-market tenant leases (1) $ 2,858 $ 3,367 $ 9,183 $ 10,370 Amortization of an above-market ground lease (2) (4 ) (4 ) (13 ) (13 ) Accretion of above-market ground leases (3) 13 13 36 36 Accretion of an above-market ground lease (4) — 37 6,600 113 Total $ 2,867 $ 3,413 $ 15,806 $ 10,506 _______________________________________________ (1) Recorded as a net increase to office and multifamily rental revenues. (2) Ground lease from which we earn ground rent income. Recorded as a decrease to office parking and other income. (3) Ground leases from which we incur ground rent expense. Recorded as a decrease to office expense. (4) Ground lease from which we incurred ground rent expense. Recorded as an increase to other income. |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2015 | |
Other Assets [Abstract] | |
Other Assets | Other Assets Other assets consisted of the following (in thousands): September 30, 2015 December 31, 2014 Deferred loan costs, net of accumulated amortization of $14,077 and $13,042 at September 30, 2015 and December 31, 2014, respectively $ 18,653 $ 15,623 Note receivable (1) — 27,500 Restricted cash 194 194 Prepaid expenses 10,267 6,108 Other indefinite-lived intangible 1,988 1,988 Deposits in escrow — 2,500 Furniture, fixtures and equipment, net 1,310 1,425 Other 1,625 1,932 Total other assets $ 34,037 $ 57,270 __________________________________________________________________________________ (1) On February 12, 2015 , the owner of a fee interest in the land related to one of our office buildings, to whom we previously loaned $27.5 million , repaid $1.0 million of the loan with cash, and then contributed the respective fee interest valued at $27.5 million to our operating partnership, subject to the remaining balance of that loan of $26.5 million , in exchange for 34,412 units in our operating partnership ("OP Units") valued at $1.0 million . See Notes 3 and 9 . Impact on the Consolidated Statements of Operations The table below (in thousands) sets forth the amortization recognized in each period related to our deferred loan costs: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Deferred loan costs amortization (1) $ 1,162 $ 1,022 $ 5,136 $ 3,027 __________________________________________________________________________________ (1) Included in interest expense in our consolidated statements of operations. |
Secured Notes Payable and Revol
Secured Notes Payable and Revolving Credit Facility | 9 Months Ended |
Sep. 30, 2015 | |
Secured Debt [Abstract] | |
Secured Notes Payable and Revolving Credit Facility | Secured Notes Payable and Revolving Credit Facility The following table summarizes (in thousands) our secured notes payable and revolving credit facility: Description (1) Maturity Date Principal Balance as of September 30, 2015 Principal Balance as of December 31, 2014 Variable Interest Rate Fixed Interest Rate (2) Swap Maturity Date Term Loan 12/24/2015 $ 20,000 $ 20,000 LIBOR + 1.45% N/A -- Term Loan (3) 3/1/2016 16,140 16,140 LIBOR + 1.60% N/A -- Fannie Mae Loan 3/1/2016 82,000 82,000 LIBOR + 0.62% N/A -- Fannie Mae Loan 6/1/2017 18,000 18,000 LIBOR + 0.62% N/A -- Term Loan 10/2/2017 — 400,000 LIBOR + 2.00% 4.45% 7/1/2015 Term Loan 4/2/2018 (4) 510,000 510,000 LIBOR + 2.00% 4.12% 4/1/2016 Term Loan 8/1/2018 530,000 530,000 LIBOR + 1.70% 3.74% 8/1/2016 Term Loan (5) 8/5/2018 355,000 355,000 N/A 4.14% -- Term Loan (6) 2/1/2019 153,421 155,000 N/A 4.00% -- Term Loan (7) 6/5/2019 285,000 285,000 N/A 3.85% -- Fannie Mae Loan 10/1/2019 145,000 145,000 LIBOR + 1.25% N/A -- Term Loan (8) 3/1/2020 (9) 349,070 349,070 N/A 4.46% -- Fannie Mae Loans 11/2/2020 388,080 388,080 LIBOR + 1.65% 3.65% 11/1/2017 Term Loan 4/15/2022 340,000 — LIBOR + 1.40% 2.77% 4/1/2020 Term Loan 7/27/2022 (10) 180,000 — LIBOR + 1.45% 3.06% 7/1/2020 Fannie Mae Loan 4/1/2025 102,400 — LIBOR + 1.25% 2.84% 3/1/2020 Aggregate loan principal $ 3,474,111 $ 3,253,290 Revolving credit line (11) 8/21/2020 — 182,000 LIBOR + 1.40% N/A -- Total (12) $ 3,474,111 $ 3,435,290 Aggregate swap fixed rate loans $ 2,050,480 $ 1,828,080 3.60% Aggregate fixed rate loans 1,142,491 1,144,070 4.15% Aggregate floating rate loans 281,140 463,140 N/A Total (12) $ 3,474,111 $ 3,435,290 ______________________________________________________________________________________ (1) As of September 30, 2015 , the weighted average remaining life (including extension options) of our outstanding term debt (excluding our revolving credit facility) was 4.0 years . For the $3.19 billion of term debt on which the interest rate was fixed under the terms of the loan or a swap, (i) the weighted average remaining life was 4.2 years , (ii) the weighted average remaining period during which interest was fixed was 2.4 years , (iii) the weighted average annual interest rate was 3.80% and (iv) including the non-cash amortization of deferred loan costs, the weighted average effective interest rate was 3.92% . Except as otherwise noted below, each loan (including our revolving credit facility) is secured by a one or more separate collateral pools consisting of one or more properties, requiring monthly payments of interest only, with the outstanding principal due upon maturity. (2) Effective annual rate, which includes the effect of interest rate contracts as of September 30, 2015 , and excludes the effect of prepaid loan fees. See Note 8 for the details of our interest rate contracts. (3) The borrower is a consolidated entity in which our operating partnership owns a two-thirds interest. (4) We paid down $254 million of this loan on October 13, 2015 using a portion of the proceeds of a new secured, non-recourse $400 million , interest only loan with interest effectively fixed at 2.64% per annum until November 2020. (5) Interest-only until February 2016 , with principal amortization thereafter based upon a 30 -year amortization schedule. (6) Requires monthly payments of principal and interest. Principal amortization is based upon a 30 -year amortization schedule. (7) Interest only until February 2017 , with principal amortization thereafter based upon a 30 -year amortization schedule. (8) Interest is fixed until March 1, 2018 , and is floating thereafter, with interest-only payments until May 1, 2016 , and principal amortization thereafter based upon a 30 -year amortization schedule. (9) Effective term shown includes the effect of our exercise of two one-year extension options which we expect to be able to exercise. (10) Maturity date includes the effect of our exercise of a two -year extension option which we expect to be able to exercise. (11) $400.0 million revolving credit facility. Unused commitment fees range from 0.15% to 0.20% . (12) See Note 11 for our fair value disclosures. As of September 30, 2015 , the minimum future principal payments due on our secured notes payable and revolving credit facility, excluding any maturity extension options, were as follows (in thousands): Twelve months ending September 30: 2016 $ 126,344 2017 35,953 2018 1,734,889 2019 421,445 2020 325,000 Thereafter 830,480 Total future principal payments $ 3,474,111 |
Interest Payable, Accounts Paya
Interest Payable, Accounts Payable and Deferred Revenue | 9 Months Ended |
Sep. 30, 2015 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Interest Payable, Accounts Payable and Deferred Revenue | Interest Payable, Accounts Payable and Deferred Revenue Interest payable, accounts payable and deferred revenue consisted of the following (in thousands): September 30, 2015 December 31, 2014 Interest payable $ 9,424 $ 9,656 Accounts payable and accrued liabilities 37,724 22,195 Deferred revenue 20,378 22,513 Total interest payable, accounts payable and deferred revenue $ 67,526 $ 54,364 |
Derivative Contracts
Derivative Contracts | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Contracts | Derivative Contracts Hedges of Interest Rate Risk We make use of interest rate swap and interest rate cap contracts to manage the risk associated with changes in interest rates on our floating-rate debt. When we enter into a floating-rate term loan, we generally enter into an interest rate swap agreement for the equivalent principal amount, for a period covering the majority of the loan term, which effectively converts our floating-rate debt to a fixed-rate basis during that time. In limited instances, we make use of interest rate caps to limit our exposure to interest rate increases on our floating-rate debt. We do not speculate in derivatives and we do not make use of any other derivative instruments. See Note 6 for the details of our floating-rate debt that we have hedged. Accounting for Hedges of Interest Rate Risk When we enter into derivative agreements, we generally elect to have them designated as cash flow hedges for accounting purposes. For hedging instruments designated as cash flow hedges, changes in fair value of the hedging instrument are recorded in accumulated other comprehensive income (loss) (AOCI), which is a component of equity outside of earnings, and any hedge ineffectiveness is recorded as interest expense. Amounts recorded in AOCI related to our designated hedges are reclassified to interest expense as interest payments are made on the hedged floating rate debt. Amounts reported in AOCI related to our Funds' hedges are reclassified to income, including depreciation, from unconsolidated real estate funds, as interest payments are made by our Funds on their hedged floating rate debt. For hedging instruments which are not designated as cash flow hedges, changes in fair value of the hedging instrument are recorded as interest expense. Summary of our derivatives As of September 30, 2015 , all of our interest rate swaps were designated as cash flow hedges: Number of Interest Rate Swaps Notional (in thousands) (1) Consolidated 10 $2,050,480 Unconsolidated Fund (2) 1 $325,000 ___________________________________________________ (1) See Note 11 for our derivative fair value disclosures. (2) The notional amount presented represents 100% , not our pro-rata share, of the amounts related to the Fund. At September 30, 2015 , we held an equity interest of 68.61% of that Fund. See Note 16 for more information regarding our Funds. As of September 30, 2015 , we had three purchased interest rate caps with a notional value of $18.0 million that were not designated as cash flow hedges. Credit-risk-related Contingent Features We have agreements with each of our interest rate swap counterparties that contain a provision under which we could also be declared in default on our derivative obligations if we default on the underlying indebtedness that we are hedging. As of September 30, 2015 , there have been no events of default with respect to our interest rate swaps or our Fund's interest rate swap. The fair value of our interest rate swaps in a liability position were as follows (in thousands): September 30, 2015 December 31, 2014 Fair value of derivatives in a liability position (1) Consolidated $ 34,864 $ 40,953 Unconsolidated Fund (2) $ 422 $ — __________________________________________________________________________________ (1) Includes accrued interest and excludes any adjustment for nonperformance risk. (2) The amount presented represents 100% , not our pro-rata share, of the amounts related to the Fund. At September 30, 2015 , we held an equity interest of 68.61% of the Fund. See Note 16 for more information regarding our Funds. Impact of Hedges on AOCI and Consolidated Statements of Operations The table below presents (in thousands) the effect of our derivative instruments and our Fund's derivative instrument on our AOCI and statements of operations for the nine months ended September 30 : 2015 2014 Derivatives Designated as Cash Flow Hedges: Loss recorded in AOCI (effective portion) - our derivatives (1)(8) $ (21,975 ) $ (7,059 ) Loss recorded in AOCI (effective portion) - our Fund's derivatives (2)(8) $ (2,483 ) $ (1,048 ) Loss reclassified from AOCI (effective portion) - our derivatives (3)(8) $ (27,897 ) $ (27,575 ) Loss reclassified from AOCI (effective portion) - our Fund's derivatives (4)(8) $ (709 ) $ (752 ) Loss reclassified from AOCI (ineffective portion) - our derivatives (5)(7) $ — $ (50 ) Gain (loss) recorded as interest expense (ineffective portion) (6) $ — $ — Derivatives Not Designated as Cash Flow Hedges: Gain (loss) recorded as interest expense (7) $ — $ — ___________________________________________________ (1) Represents the change in fair value of our interest rate swaps designated as cash flow hedges, which does not impact the statement of operations. See Note 11 for our fair value disclosures. (2) Represents our share of the change in fair value of our Fund's interest rate swap designated as a cash flow hedge, which does not impact the statement of operations. (3) Reclassified from AOCI as an increase to interest expense. (4) Reclassified from AOCI as a decrease to income, including depreciation, from unconsolidated real estate funds. (5) Excluded from effectiveness testing. Reclassified from AOCI as an increase to interest expense. (6) Excluded from effectiveness testing. (7) Represents the change in fair value of our derivatives not designated as cash flow hedges. (8) See the reconciliation of our AOCI in Note 9 . Future Reclassifications from AOCI We estimate that $25.4 million of our AOCI related to our derivatives designated as cash flow hedges will be reclassified as an increase to interest expense during the next twelve months, and $461 thousand of our AOCI related to our Fund's derivative designated as a cash flow hedge will be reclassified as a decrease to income, including depreciation, from unconsolidated real estate funds during the next twelve months. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Equity | Equity Equity Transactions During the nine months ended September 30, 2015 , we (i) acquired 1.4 million OP Units in exchange for issuing to the holders of the OP Units an equal number of shares of our common stock, and (ii) issued 136 thousand shares of our common stock on the exercise of options for net proceeds of $1.8 million at an average price of $13.44 per share. In addition, we issued 34 thousand OP Units valued at $1.0 million in connection with the acquisition of land under one of our office buildings (see Notes 3 and 5 ). During the nine months ended September 30, 2014 , we (i) acquired 2.2 million OP Units in exchange for issuing to the holders of the OP Units an equal number of shares of our common stock, (ii) acquired 120 thousand OP Units for cash for a total purchase price of $2.8 million at an average price of $23.56 per unit, and (iii) cash settled options covering 691 thousand shares of our common stock for a total cost of $4.5 million at an average price of $6.55 per option. Condensed Consolidated Statements of Equity The tables below present (in thousands) our condensed consolidated statements of equity: Douglas Emmett, Inc. Stockholders' Equity Noncontrolling Interests Total Equity Balance as of January 1, 2015 $ 1,943,458 $ 370,266 $ 2,313,724 Net income 44,217 7,932 52,149 Cash flow hedge fair value adjustment 3,239 909 4,148 Dividends and distributions (92,087 ) (17,549 ) (109,636 ) Exchange of OP units 18,101 (18,101 ) — Issuance of OP units — 1,000 1,000 Exercise of stock options 1,823 — 1,823 Equity compensation — 6,603 6,603 Balance as of September 30, 2015 $ 1,918,751 $ 351,060 $ 2,269,811 Douglas Emmett, Inc. Stockholders' Equity Noncontrolling Interests Total Equity Balance as of January 1, 2014 $ 1,970,397 $ 396,811 $ 2,367,208 Net income 33,728 6,328 40,056 Cash flow hedge fair value adjustment 16,297 3,973 20,270 Contributions — 250 250 Dividends and distributions (86,518 ) (17,315 ) (103,833 ) Repurchase of stock options (4,524 ) — (4,524 ) Exchange of OP units 29,555 (29,555 ) — Repurchase of OP units (1,197 ) (1,630 ) (2,827 ) Equity compensation — 4,416 4,416 Balance as of September 30, 2014 $ 1,957,738 $ 363,278 $ 2,321,016 Noncontrolling Interests Our noncontrolling interests consist of (i) interests in our operating partnership that are not owned by us and (ii) a minority partner's one-third interest in a consolidated joint venture which owns an office building in Honolulu, Hawaii. Noncontrolling interests in our operating partnership consist of OP Units and fully-vested Long Term Incentive Plan Units ("LTIP Units") and represented approximately 15% of our operating partnership's total interests as of September 30, 2015 when we and our operating partnership had 146.4 million shares of common stock and 26.3 million OP Units and LTIP Units outstanding, respectively. A share of our common stock, an OP Unit and an LTIP Unit (once vested and booked up) have essentially the same economic characteristics, sharing equally in the distributions from our operating partnership. Investors who own OP Units have the right to cause our operating partnership to redeem their OP Units for an amount of cash per unit equal to the then current market value of one share of our common stock, or, at our election, exchange their OP Units for shares of our common stock on a one-for-one b asis. LTIP Units have been granted to our key employees and non-employee directors as part of their compensation. These awards generally vest over time and once vested can generally be converted to OP Units. Changes in our Ownership Interest in our Operating Partnership The table below presents (in thousands) the effect on our equity from changes in our ownership interest in our operating partnership: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net income attributable to common stockholders $ 12,070 $ 7,389 $ 44,217 $ 33,728 Transfers (to) from noncontrolling interests: Exchange of OP units with noncontrolling interests 900 9,054 18,088 29,534 Repurchase of OP units from noncontrolling interests — — — (1,197 ) Net transfers from noncontrolling interests $ 900 $ 9,054 $ 18,088 $ 28,337 Change from net income attributable to common stockholders and transfers from noncontrolling interests $ 12,970 $ 16,443 $ 62,305 $ 62,065 AOCI Reconciliation The table below presents (in thousands) a reconciliation of our AOCI, which consists solely of adjustments related to derivatives designated as cash flow hedges for the nine months ended September 30 : 2015 2014 Beginning balance $ (30,089 ) $ (50,554 ) Other comprehensive loss before reclassifications - our derivatives (21,975 ) (7,059 ) Other comprehensive loss before reclassifications - our Fund's derivative (2,483 ) (1,048 ) Reclassifications from AOCI - our derivatives (1) 27,897 27,625 Reclassifications from AOCI - our Fund's derivative (2) 709 752 Net current period OCI 4,148 20,270 Less OCI attributable to noncontrolling interests (909 ) (3,973 ) OCI attributable to common stockholders 3,239 16,297 Ending balance $ (26,850 ) $ (34,257 ) ___________________________________________________ (1) Reclassification as an increase to interest expense. (2) Reclassification as an decrease to income, including depreciation, from unconsolidated real estate funds. (3) See Note 8 for the details of our derivatives and Note 11 for our derivative fair value disclosures. Equity Compensation The Douglas Emmett, Inc. 2006 Omnibus Stock Incentive Plan, as amended, our stock incentive plan, is administered by the compensation committee of our board of directors. All officers, employees, directors and consultants are eligible to participate in our stock incentive plan. For more information on our stock incentive plan, please refer to Note 11 to the consolidated financial statements in our 2014 Annual Report on Form 10-K. Total net equity compensation expense for equity grants was $2.0 million and $1.3 million for the three months ended September 30, 2015 and 2014 , respectively, and $6.0 million and $4.0 million for the nine months ended September 30, 2015 and 2014 , respectively. These amounts are net of capitalized equity compensation of $208 thousand and $97 thousand for the three months ended September 30, 2015 and 2014 , respectively, and $610 thousand and $367 thousand for the nine months ended September 30, 2015 and 2014 , respectively. There were no options exercised or repurchased for the three months ended September 30, 2015 and 2014 , and the intrinsic value of options exercised and repurchased for the nine months ended September 30, 2015 and 2014 was $2.2 million and $4.5 million , respectively. |
Earnings Per Share (EPS)
Earnings Per Share (EPS) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share (EPS) | Earnings Per Share (EPS) We calculate basic EPS by dividing the net income attributable to common stockholders for the period by the weighted average number of common shares outstanding during the period. We calculate diluted EPS by dividing the net income attributable to common stockholders for the period by the weighted average number of common shares and dilutive instruments outstanding during the period using the treasury stock method. We account for unvested LTIP awards that contain nonforfeitable rights to dividends as participating securities and include these securities in the computation of EPS using the two-class method. The table below presents the calculation of basic and diluted EPS: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Numerator (in thousands): Net income attributable to common stockholders $ 12,070 $ 7,389 $ 44,217 $ 33,728 Allocation to participating securities: Unvested LTIP units (59 ) (24 ) (224 ) (125 ) Numerator for basic and diluted net income attributable to common stockholders $ 12,011 $ 7,365 $ 43,993 $ 33,603 Denominator (in thousands): Weighted average shares of common stock outstanding - basic 146,331 144,361 145,856 143,741 Effect of dilutive securities: Stock options (1) 4,409 4,280 4,429 4,103 Weighted average shares of common stock and common stock equivalents outstanding - diluted 150,740 148,641 150,285 147,844 Basic EPS: Net income attributable to common stockholders per share $ 0.082 $ 0.051 $ 0.302 $ 0.234 Diluted EPS: Net income attributable to common stockholders per share $ 0.080 $ 0.050 $ 0.293 $ 0.227 ____________________________________________________ (1) The following securities were excluded from the computation of the weighted average diluted shares because the effect of including them would be anti-dilutive to the calculation of diluted EPS: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 OP units and vested LTIP units 26,315 27,223 26,755 27,841 Unvested LTIP units 647 549 576 497 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Our estimates of the fair value of financial instruments were determined using available market information and widely used valuation methods. Considerable judgment is necessary to interpret market data and determine an estimated fair value. The use of different market assumptions or valuation methods may have a material effect on the estimated fair values. The FASB fair value framework hierarchy distinguishes between assumptions based on market data obtained from sources independent of the reporting entity, and the reporting entity’s own assumptions about market-based inputs. The hierarchy is as follows: Level 1 - inputs utilize unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 - inputs are observable either directly or indirectly for similar assets and liabilities in active markets. Level 3 - inputs are unobservable assumptions generated by the reporting entity As of September 30, 2015 , we did not have any fair value measurements of financial instruments using Level 3 inputs. Financial instruments disclosed at fair value Short term financial instruments: The carrying amounts for cash and cash equivalents, tenant receivables, revolving credit lines, interest payable, accounts payable, security deposits and dividends payable approximate fair value because of the short-term nature of these instruments. Note receivable: See Note 16 for the details of our note receivable. Based on observable market interest rates which we consider to be Level 2 inputs, the fair value of the note receivable approximated its carrying value at September 30, 2015 . Secured notes payable : See Note 6 for the details of our secured notes payable. We estimate the fair value of our secured notes payable by calculating the credit-adjusted present value of the principal and interest payments for each secured note payable. The calculation incorporates observable market interest rates which we consider to be Level 2 inputs, assumes that the loans will be outstanding through maturity, and excludes any maturity extension options. The table below presents (in thousands) the estimated fair value of our secured notes payable: Secured Notes Payable: September 30, 2015 December 31, 2014 Fair value $ 3,512,545 $ 3,293,351 Carrying value $ 3,474,111 $ 3,253,290 Financial instruments measured at fair value Derivative instruments: See Note 8 for the details of our derivatives. We present our derivatives on the balance sheet at fair value, on a gross basis, excluding accrued interest. We estimate the fair value of our derivative instruments by calculating the credit-adjusted present value of the expected future cash flows of each derivative. The calculation incorporates the contractual terms of the derivatives, observable market interest rates which we consider to be Level 2 inputs, and credit risk adjustments to reflect the counterparty's as well as our own nonperformance risk. Our derivatives are not subject to master netting arrangements. The table below presents (in thousands) the estimated fair value of our derivatives: September 30, 2015 December 31, 2014 Derivative Assets: Fair value - our Fund's derivative (2) $ — $ 2,282 Derivative Liabilities: Fair value - our derivatives (1) $ 31,465 $ 37,386 Fair value - our Fund's derivative (2) $ 304 $ — ____________________________________________________________________________________ (1) The fair value of our derivatives are included in interest rate contracts in our consolidated balance sheet. (2) The fair value presented represents 100% , not our pro-rata share, of the fair value related to the Fund. At September 30, 2015 , we held an equity interest of 68.61% of that Fund. Our pro-rata share of the fair value of the Fund's derivative is included in our investment in unconsolidated real estate funds in our consolidated balance sheet. See Note 16 for more information regarding our Funds. |
Future Minimum Lease Receipts
Future Minimum Lease Receipts | 9 Months Ended |
Sep. 30, 2015 | |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
Future Minimum Lease Receipts | Future Minimum Lease Receipts We lease space to tenants primarily under non-cancelable operating leases that generally contain provisions for a base rent plus reimbursement for certain operating expenses. Operating expense reimbursements are reflected in our consolidated statements of operations as tenant recoveries. The table below presents (in thousands) the future minimum base rentals on our non-cancelable office and ground operating leases at September 30, 2015 : Twelve months ending September 30: 2016 $ 392,368 2017 351,434 2018 293,781 2019 236,373 2020 184,494 Thereafter 463,838 Total future minimum base rentals (1) $ 1,922,288 _____________________________________________________ (1) Future minimum lease receipts exclude items such as (i) residential leases, which typically have a term of one year or less, (ii) tenant reimbursements, (iii) amortization of deferred rent receivables, (iv) amortization/accretion of acquired above/below-market lease intangibles and (v) percentage rents. Some leases are subject to termination options, generally upon payment of a termination fee, the preceding table assumes that these termination options are not exercised. |
Future Minimum Lease Payments
Future Minimum Lease Payments | 9 Months Ended |
Sep. 30, 2015 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Future Minimum Lease Payments | Future Minimum Lease Payments We incurred lease payments related to two ground leases of $183 thousand and $718 thousand for the three months ended September 30, 2015 and 2014 , respectively, and $550 thousand and $1.9 million for the nine months ended September 30, 2015 and 2014 , respectively. We acquired the fee interest related to one of those ground leases in February 2015 (see Notes 3 and 5 ). The table below presents (in thousands) the future minimum ground lease payments of our remaining ground lease as of September 30, 2015 : Twelve months ending September 30: 2016 $ 733 2017 733 2018 733 2019 733 2020 733 Thereafter 48,560 Total future minimum lease payments (1) $ 52,225 ___________________________________________________ (1) Lease term ends on December 31, 2086 , and requires ground rent payments of $733 thousand per year that will continue until February 28, 2019 , rental payments for successive rental periods thereafter shall be determined by mutual agreement with the lessor. The future minimum ground lease payments in the table above assume that the rental payments will continue to be $733 thousand per year after February 28, 2019 . |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Guarantees | Commitments, Contingencies and Guarantees Legal Proceedings We are subject to various legal proceedings and claims that arise in the ordinary course of business. Excluding ordinary, routine litigation incidental to our business, we are not currently a party to any legal proceedings that we believe would reasonably be expected to have a materially adverse effect on our business, financial condition or results of operations. Concentration of Risk We have exposure to credit risk, including with respect to accounts receivable and deferred rents receivable related to our leases. Although we seek to minimize our credit risk from our leases by targeting smaller, more affluent tenants supported by a diverse mix of industries, by performing credit evaluations of prospective tenants and by obtaining security deposits from our tenants, our tenants' ability to honor the terms of their respective leases remains dependent upon the economic, regulatory and social factors. For the nine months ended September 30, 2015 and 2014 , no tenant accounted for more than 10% of our total revenues. We are also subject us to credit risk from the counterparties on the interest rate swap and interest rate cap contracts we use to manage the risk associated with floating interest rates on our debt. See Note 8 for the details of our interest rate contracts. We maintain our cash and cash equivalents at high quality financial institutions with investment grade ratings. Interest bearing accounts at each U.S. banking institution are insured by the Federal Deposit Insurance Corporation up to $250 thousand . Asset Retirement Obligations Conditional asset retirement obligations represent a legal obligation to perform an asset retirement activity in which the timing and/or method of settlement is conditional on a future event that may or may not be within our control. A liability for a conditional asset retirement obligation must be recorded if the fair value of the obligation can be reasonably estimated. Environmental site assessments and investigations have identified twenty-three properties in our consolidated portfolio, and four properties owned by our Funds, which contain asbestos, and would have to be removed in compliance with applicable environmental regulations if these properties undergo major renovations or are demolished. As of September 30, 2015 , the obligations to remove the asbestos from these properties have indeterminable settlement dates, and we are unable to reasonably estimate the fair value of the associated conditional asset retirement obligation. Guarantees We made certain environmental and other limited indemnities and guarantees covering customary non-recourse carve outs for a $325.0 million loan of one of our Funds. The loan matures on May 1, 2018 and carries interest that is effectively fixed through an interest rate swap which matures on May 1, 2017 . We have also guaranteed the related swap. That Fund has agreed to indemnify us for any amounts that we would be required to pay under these agreements. As of September 30, 2015 , all obligations under the loan and swap agreements have been performed by the Fund in accordance with the terms of those agreements and the maximum future payments under the swap agreement were approximately $3.1 million . |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Segment information is prepared on the same basis that we review information for operational decision-making purposes. We operate in two business segments: (i) the acquisition, development, ownership and management of office real estate and (ii) the acquisition, development, ownership and management of multifamily real estate. The services for our office segment primarily include rental of office space and other tenant services, including parking and storage space rental. The services for our multifamily segment include rental of apartments and other tenant services, including parking and storage space rental. Asset information by segment is not reported because we do not use this measure to assess performance or make decisions to allocate resources. Therefore, depreciation and amortization expense is not allocated among segments. General and administrative expenses and interest expense are not included in segment profit as our internal reporting addresses these items on a corporate level. Segment profit is not a measure of operating income or cash flows from operating activities as measured by GAAP, it is not indicative of cash available to fund cash needs, and should not be considered as an alternative to cash flows as a measure of liquidity. Not all companies may calculate segment profit in the same manner. We consider segment profit to be an appropriate supplemental measure to net income because it can assist both investors and management in understanding the core operations of our properties. The table below presents (in thousands) the operating activity of our reportable segments: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Office Segment Total office revenues $ 136,225 $ 127,957 $ 404,472 $ 388,596 Office expenses (49,195 ) (47,631 ) (139,936 ) (135,644 ) Office Segment profit 87,030 80,326 264,536 252,952 Multifamily Segment Total multifamily revenues 23,852 20,184 70,871 59,839 Multifamily expenses (6,191 ) (5,261 ) (17,941 ) (15,490 ) Multifamily Segment profit 17,661 14,923 52,930 44,349 Total profit from all segments $ 104,691 $ 95,249 $ 317,466 $ 297,301 The table below (in thousands) is a reconciliation of the total profit from all segments to net income attributable to common stockholders: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Total profit from all segments $ 104,691 $ 95,249 $ 317,466 $ 297,301 General and administrative expense (6,867 ) (6,658 ) (21,701 ) (20,181 ) Depreciation and amortization (52,229 ) (50,111 ) (153,309 ) (151,249 ) Other income 2,129 3,769 13,103 12,642 Other expenses (1,605 ) (1,983 ) (4,796 ) (5,114 ) Income, including depreciation, from unconsolidated real estate funds 898 665 3,548 2,725 Interest expense (32,705 ) (32,098 ) (101,521 ) (95,888 ) Acquisition-related expenses (153 ) (152 ) (641 ) (180 ) Net income 14,159 8,681 52,149 40,056 Less: Net income attributable to noncontrolling interests (2,089 ) (1,292 ) (7,932 ) (6,328 ) Net income attributable to common stockholders $ 12,070 $ 7,389 $ 44,217 $ 33,728 |
Investments In Unconsolidated R
Investments In Unconsolidated Real Estate Funds | 9 Months Ended |
Sep. 30, 2015 | |
Real Estate Investments, Net [Abstract] | |
Investments In Unconsolidated Real Estate Funds | Investments in Unconsolidated Real Estate Funds Description of our Funds We manage and own equity interests in two Funds, Fund X and Partnership X, through which we and investors own eight office properties totaling 1.8 million square feet in our core markets. At September 30, 2015 , we held equity interests of 68.61% of Fund X and 24.25% of Partnership X. Our Funds pay us fees and reimburse us for certain expenses related to property management and other services we provide to the Funds. We also receive distributions based on invested capital and on any profits that exceed certain specified cash returns to the investors. The table below presents (in thousands) cash distributions received from our Funds: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Cash distributions received from our Funds $ 1,885 $ 3,140 $ 6,473 $ 9,324 Note receivable Our investment in the Funds includes an unsecured note receivable. In April 2013, we loaned $2.9 million to a related party investor in connection with a capital call made by Fund X. The loan carries interest at one month LIBOR plus 2.5% per annum, and is due and payable no later than April 1, 2017 , with mandatory prepayments equal to any distributions with respect the related party's interest in Fund X. The interest recognized on this note is included in other income in our consolidated statements of operations. As of September 30, 2015 , and December 31, 2014 , the balance outstanding on the loan was $0.6 million and $1.5 million , respectively. See Note 11 for our fair value disclosures. Summarized Financial Information for our Funds The accounting policies of the Funds are consistent with ours. The tables below present (in thousands) selected financial information for the Funds on a combined basis. The amounts presented represent 100% (not our pro-rata share) of amounts related to the Funds, and are based upon historical acquired book value: Nine Months Ended September 30, 2015 2014 Total revenues $ 52,500 $ 49,276 Operating income 10,072 8,627 Net income 1,431 60 September 30, 2015 December 31, 2014 Total assets $ 692,662 $ 703,130 Total liabilities 389,934 389,413 Total equity 302,728 313,717 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent events On October 13, 2015, we closed a secured, non-recourse $400.0 million , interest only loan. The loan bears interest at LIBOR + 1.35% , which has been effectively fixed at 2.64% per annum until November 2020 through an interest rate swap. The new loan is secured by a pool of seven of our office properties and matures in November 2022. We used a portion of the proceeds from this loan to pay down $254.0 million of our $510.0 million loan due in April 2018 . |
Summary Of Significant Accoun25
Summary Of Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. |
Income Taxes | Income Taxes We have elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended. Provided that we qualify for taxation as a REIT, we are generally not subject to corporate-level income tax on the earnings distributed currently to our stockholders that we derive from our REIT qualifying activities. We are subject to corporate-level tax on the earnings that we derive through our taxable REIT subsidiaries (TRS). |
New Accounting Pronouncements | New Accounting Pronouncements Changes to GAAP are established by the Financial Accounting Standards Board (FASB) in the form of Accounting Standard Updates (ASUs). We consider the applicability and impact of all ASUs. Recently Adopted Accounting Pronouncements In April 2014, the FASB issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (Topics 205 and 360), which provides guidance for reporting discontinued operations. The amendments in this ASU change the requirements for reporting discontinued operations in Subtopic 205-20, Presentation of Financial Statements . The ASU was effective for fiscal years, and interim periods within those years, beginning on or after December 15, 2014, which for us was the first quarter of 2015. We adopted the ASU in the first quarter of 2015 and it did not have a material impact on our financial position, results of operations or disclosures. In September 2015, the FASB issued ASU No. 2015-16, Simplifying the Accounting for Measurement-Period Adjustments , which amends Business Combinations (Topic 805) . The amendments in this Update require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments in this Update require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments in this Update require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, which for us would be the first quarter of 2016, and early adoption is permitted. The amendments in this Update should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this Update with earlier application permitted for financial statements that have not been issued. We do not expect the ASU to have a material impact on our financial position, results of operations or disclosures. Recently Issued Accounting Pronouncements In March 2015, the FASB issued ASU No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30), which provides guidance on the presentation of debt issuance costs. To simplify the presentation of debt issuance costs, the amendments in this Update would require that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the related debt, consistent with the manner in which debt discounts or premiums would be presented. This ASU is the final version of Proposed ASU 2014-250-Interest-Imputation of Interest (Subtopic 835-30), which has been deleted. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, which for us would be the first quarter of 2016, and early adoption is permitted. We plan on early adopting the ASU in our 10-K filing for the year ending December 31, 2015. The ASU requires that the new presentation of debt issuance costs be applied on a retrospective basis. The change in presentation is required to be disclosed as a change in accounting principle. We do not expect the ASU to have a material impact on our financial position, results of operations or disclosures. In August 2015, the FASB issued ASU No. 2015-15, which provides additional guidance regarding the presentation of debt issuance costs associated with line-of-credit arrangements. The FASB issued this ASU due to the absence of authoritative guidance within ASU No. 2015-03 for debt issuance costs related to line-of-credit arrangements. The ASU permits the debt issuance costs associated with line-of-credit arrangements to be presented as an asset, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, which for us would be the first quarter of 2016, and early adoption is permitted. We plan on early adopting the ASU in our 10-K filing for the year ending December 31, 2015. The ASU requires that the new presentation of debt issuance costs be applied on a retrospective basis. The change in presentation is required to be disclosed as a change in accounting principle. We do not expect the ASU to have a material impact on our financial position, results of operations or disclosures. In August 2015, the FASB issued ASU No. 2015-14, which defers the effective date of ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) by one year. As a result, the ASU is now effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, which for us is the first quarter of 2018. Earlier application is permitted for fiscal years beginning after December 15, 2016, including interim reporting periods within those years, which for us is the first quarter of 2017. We do not expect this ASU to have a material impact on our financial position, results of operations or disclosures, as lease contracts are not within the scope of this ASU. The FASB has not issued any other ASUs during 2015 that we expect to be applicable and have a material impact on our future financial position, results of operations or disclosures. |
Investment in Real Estate (Tabl
Investment in Real Estate (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The table below (in thousands) summarizes our preliminary purchase price allocations for the acquisitions (these allocations are subject to adjustments within twelve months of the acquisition date): Harbor Court Land First Financial Plaza Investment in real estate: Land $ 12,060 $ 12,092 Buildings and improvements 15,440 75,039 Tenant improvements and lease intangibles — 6,065 Acquired above and below-market leases, net — (790 ) Net assets and liabilities acquired $ 27,500 $ 92,406 |
Acquired Lease Intangibles (Tab
Acquired Lease Intangibles (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Acquired Lease Intangibles [Abstract] | |
Summary Of Acquired Lease Intangibles | The table below (in thousands) summarizes our above/below-market leases: September 30, 2015 December 31, 2014 Above-market tenant leases (1) $ 4,846 $ 3,040 Accumulated amortization - above-market tenant leases (2,629 ) (2,082 ) Below-market ground leases 3,198 3,198 Accumulated amortization - below-market ground leases (686 ) (629 ) Acquired lease intangible assets, net $ 4,729 $ 3,527 Below-market tenant leases (1) $ 130,408 $ 138,088 Accumulated accretion - below-market tenant leases (101,833 ) (102,335 ) Above-market ground leases (2) 4,017 16,200 Accumulated accretion - above-market ground leases (2) (447 ) (5,994 ) Acquired lease intangible liabilities, net $ 32,145 $ 45,959 ________________________________________________ (1) Includes leases from an office property that we purchased in the first quarter of 2015 . See Note 3 . (2) In the first quarter of 2015 , we recognized $6.6 million of accretion for an above-market ground lease in other income related to the purchase of the Harbor Court Land (see Note 3 ) and removed the cost and accumulated accretion of $10.0 million for that ground lease from our balance sheet. |
Schedule Of Net Amortization Or Accretion Of Above/Below-Market Leases | The table below (in thousands) summarizes the net amortization/accretion related to our above/below-market leases: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net accretion of above/below-market tenant leases (1) $ 2,858 $ 3,367 $ 9,183 $ 10,370 Amortization of an above-market ground lease (2) (4 ) (4 ) (13 ) (13 ) Accretion of above-market ground leases (3) 13 13 36 36 Accretion of an above-market ground lease (4) — 37 6,600 113 Total $ 2,867 $ 3,413 $ 15,806 $ 10,506 _______________________________________________ (1) Recorded as a net increase to office and multifamily rental revenues. (2) Ground lease from which we earn ground rent income. Recorded as a decrease to office parking and other income. (3) Ground leases from which we incur ground rent expense. Recorded as a decrease to office expense. (4) Ground lease from which we incurred ground rent expense. Recorded as an increase to other income. |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Other Assets [Abstract] | |
Schedule Of Other Assets | Other assets consisted of the following (in thousands): September 30, 2015 December 31, 2014 Deferred loan costs, net of accumulated amortization of $14,077 and $13,042 at September 30, 2015 and December 31, 2014, respectively $ 18,653 $ 15,623 Note receivable (1) — 27,500 Restricted cash 194 194 Prepaid expenses 10,267 6,108 Other indefinite-lived intangible 1,988 1,988 Deposits in escrow — 2,500 Furniture, fixtures and equipment, net 1,310 1,425 Other 1,625 1,932 Total other assets $ 34,037 $ 57,270 __________________________________________________________________________________ (1) On February 12, 2015 , the owner of a fee interest in the land related to one of our office buildings, to whom we previously loaned $27.5 million , repaid $1.0 million of the loan with cash, and then contributed the respective fee interest valued at $27.5 million to our operating partnership, subject to the remaining balance of that loan of $26.5 million , in exchange for 34,412 units in our operating partnership ("OP Units") valued at $1.0 million . See Notes 3 and 9 . |
Schedule of Amortization of Deferred Loan Costs | The table below (in thousands) sets forth the amortization recognized in each period related to our deferred loan costs: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Deferred loan costs amortization (1) $ 1,162 $ 1,022 $ 5,136 $ 3,027 __________________________________________________________________________________ (1) Included in interest expense in our consolidated statements of operations. |
Secured Notes Payable and Rev29
Secured Notes Payable and Revolving Credit Facility(Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Secured Debt [Abstract] | |
Schedule Of Secured Notes Payable and Revolving Credit Facility | The following table summarizes (in thousands) our secured notes payable and revolving credit facility: Description (1) Maturity Date Principal Balance as of September 30, 2015 Principal Balance as of December 31, 2014 Variable Interest Rate Fixed Interest Rate (2) Swap Maturity Date Term Loan 12/24/2015 $ 20,000 $ 20,000 LIBOR + 1.45% N/A -- Term Loan (3) 3/1/2016 16,140 16,140 LIBOR + 1.60% N/A -- Fannie Mae Loan 3/1/2016 82,000 82,000 LIBOR + 0.62% N/A -- Fannie Mae Loan 6/1/2017 18,000 18,000 LIBOR + 0.62% N/A -- Term Loan 10/2/2017 — 400,000 LIBOR + 2.00% 4.45% 7/1/2015 Term Loan 4/2/2018 (4) 510,000 510,000 LIBOR + 2.00% 4.12% 4/1/2016 Term Loan 8/1/2018 530,000 530,000 LIBOR + 1.70% 3.74% 8/1/2016 Term Loan (5) 8/5/2018 355,000 355,000 N/A 4.14% -- Term Loan (6) 2/1/2019 153,421 155,000 N/A 4.00% -- Term Loan (7) 6/5/2019 285,000 285,000 N/A 3.85% -- Fannie Mae Loan 10/1/2019 145,000 145,000 LIBOR + 1.25% N/A -- Term Loan (8) 3/1/2020 (9) 349,070 349,070 N/A 4.46% -- Fannie Mae Loans 11/2/2020 388,080 388,080 LIBOR + 1.65% 3.65% 11/1/2017 Term Loan 4/15/2022 340,000 — LIBOR + 1.40% 2.77% 4/1/2020 Term Loan 7/27/2022 (10) 180,000 — LIBOR + 1.45% 3.06% 7/1/2020 Fannie Mae Loan 4/1/2025 102,400 — LIBOR + 1.25% 2.84% 3/1/2020 Aggregate loan principal $ 3,474,111 $ 3,253,290 Revolving credit line (11) 8/21/2020 — 182,000 LIBOR + 1.40% N/A -- Total (12) $ 3,474,111 $ 3,435,290 Aggregate swap fixed rate loans $ 2,050,480 $ 1,828,080 3.60% Aggregate fixed rate loans 1,142,491 1,144,070 4.15% Aggregate floating rate loans 281,140 463,140 N/A Total (12) $ 3,474,111 $ 3,435,290 ______________________________________________________________________________________ (1) As of September 30, 2015 , the weighted average remaining life (including extension options) of our outstanding term debt (excluding our revolving credit facility) was 4.0 years . For the $3.19 billion of term debt on which the interest rate was fixed under the terms of the loan or a swap, (i) the weighted average remaining life was 4.2 years , (ii) the weighted average remaining period during which interest was fixed was 2.4 years , (iii) the weighted average annual interest rate was 3.80% and (iv) including the non-cash amortization of deferred loan costs, the weighted average effective interest rate was 3.92% . Except as otherwise noted below, each loan (including our revolving credit facility) is secured by a one or more separate collateral pools consisting of one or more properties, requiring monthly payments of interest only, with the outstanding principal due upon maturity. (2) Effective annual rate, which includes the effect of interest rate contracts as of September 30, 2015 , and excludes the effect of prepaid loan fees. See Note 8 for the details of our interest rate contracts. (3) The borrower is a consolidated entity in which our operating partnership owns a two-thirds interest. (4) We paid down $254 million of this loan on October 13, 2015 using a portion of the proceeds of a new secured, non-recourse $400 million , interest only loan with interest effectively fixed at 2.64% per annum until November 2020. (5) Interest-only until February 2016 , with principal amortization thereafter based upon a 30 -year amortization schedule. (6) Requires monthly payments of principal and interest. Principal amortization is based upon a 30 -year amortization schedule. (7) Interest only until February 2017 , with principal amortization thereafter based upon a 30 -year amortization schedule. (8) Interest is fixed until March 1, 2018 , and is floating thereafter, with interest-only payments until May 1, 2016 , and principal amortization thereafter based upon a 30 -year amortization schedule. (9) Effective term shown includes the effect of our exercise of two one-year extension options which we expect to be able to exercise. (10) Maturity date includes the effect of our exercise of a two -year extension option which we expect to be able to exercise. (11) $400.0 million revolving credit facility. Unused commitment fees range from 0.15% to 0.20% . (12) See Note 11 for our fair value disclosures. |
Schedule Of Minimum Future Principal Payments Due On Secured Notes Payable and Revolving Credit Facility | As of September 30, 2015 , the minimum future principal payments due on our secured notes payable and revolving credit facility, excluding any maturity extension options, were as follows (in thousands): Twelve months ending September 30: 2016 $ 126,344 2017 35,953 2018 1,734,889 2019 421,445 2020 325,000 Thereafter 830,480 Total future principal payments $ 3,474,111 |
Interest Payable, Accounts Pa30
Interest Payable, Accounts Payable and Deferred Revenue (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Schedule Of Accounts Payable And Accrued Liabilities | Interest payable, accounts payable and deferred revenue consisted of the following (in thousands): September 30, 2015 December 31, 2014 Interest payable $ 9,424 $ 9,656 Accounts payable and accrued liabilities 37,724 22,195 Deferred revenue 20,378 22,513 Total interest payable, accounts payable and deferred revenue $ 67,526 $ 54,364 |
Derivative Contracts (Tables)
Derivative Contracts (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Other Derivatives | As of September 30, 2015 , all of our interest rate swaps were designated as cash flow hedges: Number of Interest Rate Swaps Notional (in thousands) (1) Consolidated 10 $2,050,480 Unconsolidated Fund (2) 1 $325,000 ___________________________________________________ (1) See Note 11 for our derivative fair value disclosures. (2) The notional amount presented represents 100% , not our pro-rata share, of the amounts related to the Fund. At September 30, 2015 , we held an equity interest of 68.61% of that Fund. See Note 16 for more information regarding our Funds. |
Schedule of Derivative Liabilities at Fair Value | The fair value of our interest rate swaps in a liability position were as follows (in thousands): September 30, 2015 December 31, 2014 Fair value of derivatives in a liability position (1) Consolidated $ 34,864 $ 40,953 Unconsolidated Fund (2) $ 422 $ — __________________________________________________________________________________ (1) Includes accrued interest and excludes any adjustment for nonperformance risk. (2) The amount presented represents 100% , not our pro-rata share, of the amounts related to the Fund. At September 30, 2015 , we held an equity interest of 68.61% of the Fund. See Note 16 for more information regarding our Funds. |
Effect Of Derivative Instruments On Consolidated Statements Of Operations | The table below presents (in thousands) the effect of our derivative instruments and our Fund's derivative instrument on our AOCI and statements of operations for the nine months ended September 30 : 2015 2014 Derivatives Designated as Cash Flow Hedges: Loss recorded in AOCI (effective portion) - our derivatives (1)(8) $ (21,975 ) $ (7,059 ) Loss recorded in AOCI (effective portion) - our Fund's derivatives (2)(8) $ (2,483 ) $ (1,048 ) Loss reclassified from AOCI (effective portion) - our derivatives (3)(8) $ (27,897 ) $ (27,575 ) Loss reclassified from AOCI (effective portion) - our Fund's derivatives (4)(8) $ (709 ) $ (752 ) Loss reclassified from AOCI (ineffective portion) - our derivatives (5)(7) $ — $ (50 ) Gain (loss) recorded as interest expense (ineffective portion) (6) $ — $ — Derivatives Not Designated as Cash Flow Hedges: Gain (loss) recorded as interest expense (7) $ — $ — ___________________________________________________ (1) Represents the change in fair value of our interest rate swaps designated as cash flow hedges, which does not impact the statement of operations. See Note 11 for our fair value disclosures. (2) Represents our share of the change in fair value of our Fund's interest rate swap designated as a cash flow hedge, which does not impact the statement of operations. (3) Reclassified from AOCI as an increase to interest expense. (4) Reclassified from AOCI as a decrease to income, including depreciation, from unconsolidated real estate funds. (5) Excluded from effectiveness testing. Reclassified from AOCI as an increase to interest expense. (6) Excluded from effectiveness testing. (7) Represents the change in fair value of our derivatives not designated as cash flow hedges. (8) See the reconciliation of our AOCI in Note 9 . |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Condensed Consolidated Statements Of Equity | The tables below present (in thousands) our condensed consolidated statements of equity: Douglas Emmett, Inc. Stockholders' Equity Noncontrolling Interests Total Equity Balance as of January 1, 2015 $ 1,943,458 $ 370,266 $ 2,313,724 Net income 44,217 7,932 52,149 Cash flow hedge fair value adjustment 3,239 909 4,148 Dividends and distributions (92,087 ) (17,549 ) (109,636 ) Exchange of OP units 18,101 (18,101 ) — Issuance of OP units — 1,000 1,000 Exercise of stock options 1,823 — 1,823 Equity compensation — 6,603 6,603 Balance as of September 30, 2015 $ 1,918,751 $ 351,060 $ 2,269,811 Douglas Emmett, Inc. Stockholders' Equity Noncontrolling Interests Total Equity Balance as of January 1, 2014 $ 1,970,397 $ 396,811 $ 2,367,208 Net income 33,728 6,328 40,056 Cash flow hedge fair value adjustment 16,297 3,973 20,270 Contributions — 250 250 Dividends and distributions (86,518 ) (17,315 ) (103,833 ) Repurchase of stock options (4,524 ) — (4,524 ) Exchange of OP units 29,555 (29,555 ) — Repurchase of OP units (1,197 ) (1,630 ) (2,827 ) Equity compensation — 4,416 4,416 Balance as of September 30, 2014 $ 1,957,738 $ 363,278 $ 2,321,016 |
Net Income Attributable To Common Stockholders And Transfers (To) From Noncontrolling Interests | The table below presents (in thousands) the effect on our equity from changes in our ownership interest in our operating partnership: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net income attributable to common stockholders $ 12,070 $ 7,389 $ 44,217 $ 33,728 Transfers (to) from noncontrolling interests: Exchange of OP units with noncontrolling interests 900 9,054 18,088 29,534 Repurchase of OP units from noncontrolling interests — — — (1,197 ) Net transfers from noncontrolling interests $ 900 $ 9,054 $ 18,088 $ 28,337 Change from net income attributable to common stockholders and transfers from noncontrolling interests $ 12,970 $ 16,443 $ 62,305 $ 62,065 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The table below presents (in thousands) a reconciliation of our AOCI, which consists solely of adjustments related to derivatives designated as cash flow hedges for the nine months ended September 30 : 2015 2014 Beginning balance $ (30,089 ) $ (50,554 ) Other comprehensive loss before reclassifications - our derivatives (21,975 ) (7,059 ) Other comprehensive loss before reclassifications - our Fund's derivative (2,483 ) (1,048 ) Reclassifications from AOCI - our derivatives (1) 27,897 27,625 Reclassifications from AOCI - our Fund's derivative (2) 709 752 Net current period OCI 4,148 20,270 Less OCI attributable to noncontrolling interests (909 ) (3,973 ) OCI attributable to common stockholders 3,239 16,297 Ending balance $ (26,850 ) $ (34,257 ) ___________________________________________________ (1) Reclassification as an increase to interest expense. (2) Reclassification as an decrease to income, including depreciation, from unconsolidated real estate funds. (3) See Note 8 for the details of our derivatives and Note 11 for our derivative fair value disclosures. |
Earnings Per Share (EPS) (Table
Earnings Per Share (EPS) (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The table below presents the calculation of basic and diluted EPS: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Numerator (in thousands): Net income attributable to common stockholders $ 12,070 $ 7,389 $ 44,217 $ 33,728 Allocation to participating securities: Unvested LTIP units (59 ) (24 ) (224 ) (125 ) Numerator for basic and diluted net income attributable to common stockholders $ 12,011 $ 7,365 $ 43,993 $ 33,603 Denominator (in thousands): Weighted average shares of common stock outstanding - basic 146,331 144,361 145,856 143,741 Effect of dilutive securities: Stock options (1) 4,409 4,280 4,429 4,103 Weighted average shares of common stock and common stock equivalents outstanding - diluted 150,740 148,641 150,285 147,844 Basic EPS: Net income attributable to common stockholders per share $ 0.082 $ 0.051 $ 0.302 $ 0.234 Diluted EPS: Net income attributable to common stockholders per share $ 0.080 $ 0.050 $ 0.293 $ 0.227 ____________________________________________________ (1) The following securities were excluded from the computation of the weighted average diluted shares because the effect of including them would be anti-dilutive to the calculation of diluted EPS: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 OP units and vested LTIP units 26,315 27,223 26,755 27,841 Unvested LTIP units 647 549 576 497 |
Fair Value of Financial Instr34
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Estimated Fair Value of Secured Notes Payable | The table below presents (in thousands) the estimated fair value of our secured notes payable: Secured Notes Payable: September 30, 2015 December 31, 2014 Fair value $ 3,512,545 $ 3,293,351 Carrying value $ 3,474,111 $ 3,253,290 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The table below presents (in thousands) the estimated fair value of our derivatives: September 30, 2015 December 31, 2014 Derivative Assets: Fair value - our Fund's derivative (2) $ — $ 2,282 Derivative Liabilities: Fair value - our derivatives (1) $ 31,465 $ 37,386 Fair value - our Fund's derivative (2) $ 304 $ — ____________________________________________________________________________________ (1) The fair value of our derivatives are included in interest rate contracts in our consolidated balance sheet. (2) The fair value presented represents 100% , not our pro-rata share, of the fair value related to the Fund. At September 30, 2015 , we held an equity interest of 68.61% of that Fund. Our pro-rata share of the fair value of the Fund's derivative is included in our investment in unconsolidated real estate funds in our consolidated balance sheet. See Note 16 for more information regarding our Funds. |
Future Minimum Lease Receipts (
Future Minimum Lease Receipts (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
Schedule Of Future Minimum Base Rentals On Non-Cancelable Office And Ground Operating Leases | The table below presents (in thousands) the future minimum base rentals on our non-cancelable office and ground operating leases at September 30, 2015 : Twelve months ending September 30: 2016 $ 392,368 2017 351,434 2018 293,781 2019 236,373 2020 184,494 Thereafter 463,838 Total future minimum base rentals (1) $ 1,922,288 _____________________________________________________ (1) Future minimum lease receipts exclude items such as (i) residential leases, which typically have a term of one year or less, (ii) tenant reimbursements, (iii) amortization of deferred rent receivables, (iv) amortization/accretion of acquired above/below-market lease intangibles and (v) percentage rents. Some leases are subject to termination options, generally upon payment of a termination fee, the preceding table assumes that these termination options are not exercised. |
Future Minimum Lease Payments (
Future Minimum Lease Payments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Future Minimum Ground Lease Payments | The table below presents (in thousands) the future minimum ground lease payments of our remaining ground lease as of September 30, 2015 : Twelve months ending September 30: 2016 $ 733 2017 733 2018 733 2019 733 2020 733 Thereafter 48,560 Total future minimum lease payments (1) $ 52,225 ___________________________________________________ (1) Lease term ends on December 31, 2086 , and requires ground rent payments of $733 thousand per year that will continue until February 28, 2019 , rental payments for successive rental periods thereafter shall be determined by mutual agreement with the lessor. The future minimum ground lease payments in the table above assume that the rental payments will continue to be $733 thousand per year after February 28, 2019 . |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Operating Activity Within Reportable Segments | The table below presents (in thousands) the operating activity of our reportable segments: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Office Segment Total office revenues $ 136,225 $ 127,957 $ 404,472 $ 388,596 Office expenses (49,195 ) (47,631 ) (139,936 ) (135,644 ) Office Segment profit 87,030 80,326 264,536 252,952 Multifamily Segment Total multifamily revenues 23,852 20,184 70,871 59,839 Multifamily expenses (6,191 ) (5,261 ) (17,941 ) (15,490 ) Multifamily Segment profit 17,661 14,923 52,930 44,349 Total profit from all segments $ 104,691 $ 95,249 $ 317,466 $ 297,301 |
Reconciliation Of Segment Profit To Net Income Attributable To Common Stockholders | The table below (in thousands) is a reconciliation of the total profit from all segments to net income attributable to common stockholders: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Total profit from all segments $ 104,691 $ 95,249 $ 317,466 $ 297,301 General and administrative expense (6,867 ) (6,658 ) (21,701 ) (20,181 ) Depreciation and amortization (52,229 ) (50,111 ) (153,309 ) (151,249 ) Other income 2,129 3,769 13,103 12,642 Other expenses (1,605 ) (1,983 ) (4,796 ) (5,114 ) Income, including depreciation, from unconsolidated real estate funds 898 665 3,548 2,725 Interest expense (32,705 ) (32,098 ) (101,521 ) (95,888 ) Acquisition-related expenses (153 ) (152 ) (641 ) (180 ) Net income 14,159 8,681 52,149 40,056 Less: Net income attributable to noncontrolling interests (2,089 ) (1,292 ) (7,932 ) (6,328 ) Net income attributable to common stockholders $ 12,070 $ 7,389 $ 44,217 $ 33,728 |
Investments In Unconsolidated38
Investments In Unconsolidated Real Estate Funds (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Real Estate Investments, Net [Abstract] | |
Summary Of Statement Of Operations For Investments In Unconsolidated Real Estate Funds and Cash Received From Funds | The tables below present (in thousands) selected financial information for the Funds on a combined basis. The amounts presented represent 100% (not our pro-rata share) of amounts related to the Funds, and are based upon historical acquired book value: Nine Months Ended September 30, 2015 2014 Total revenues $ 52,500 $ 49,276 Operating income 10,072 8,627 Net income 1,431 60 September 30, 2015 December 31, 2014 Total assets $ 692,662 $ 703,130 Total liabilities 389,934 389,413 Total equity 302,728 313,717 The table below presents (in thousands) cash distributions received from our Funds: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Cash distributions received from our Funds $ 1,885 $ 3,140 $ 6,473 $ 9,324 |
Overview (Details)
Overview (Details) | Sep. 30, 2015land_parceloffice_propertymultifamily_unit |
Overview [Line Items] | |
Number of office properties owned | 62 |
Wholly Owned Consolidated Properties [Member] | |
Overview [Line Items] | |
Number of office properties owned | 54 |
Number of multifamily properties owned | multifamily_unit | 10 |
Number of land parcels | land_parcel | 2 |
Partially Owned Properties [Member] | |
Overview [Line Items] | |
Number of office properties owned | 8 |
Investment in Real Estate (Deta
Investment in Real Estate (Details) - USD ($) $ in Thousands | Mar. 05, 2015 | Feb. 12, 2015 |
First Financial Plaza [Member] | ||
Business Acquisition [Line Items] | ||
Land | $ 12,092 | |
Buildings and improvements | 75,039 | |
Tenant improvements and lease intangibles | 6,065 | |
Acquired above and below-market leases, net | (790) | |
Net assets and liabilities acquired | $ 92,406 | |
Harbor Court Land [Member] | ||
Business Acquisition [Line Items] | ||
Land | $ 12,060 | |
Buildings and improvements | 15,440 | |
Tenant improvements and lease intangibles | 0 | |
Acquired above and below-market leases, net | 0 | |
Net assets and liabilities acquired | $ 27,500 |
Investment In Real Estate (Narr
Investment In Real Estate (Narrative) (Details) ft² in Thousands, $ in Thousands | Mar. 05, 2015USD ($)ft²$ / ft² | Feb. 12, 2015USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)property | Sep. 30, 2014USD ($)property |
Real Estate Acquisition [Line Items] | ||||||
Number of acquisitions | property | 2 | 0 | ||||
Net accretion of acquired lease intangibles | $ (2,867) | $ (3,413) | $ (15,806) | $ (10,506) | ||
First Financial Plaza [Member] | ||||||
Real Estate Acquisition [Line Items] | ||||||
Area of real estate property acquired | ft² | 227 | |||||
Price of real estate acquired | $ 92,400 | |||||
Price paid for real estate acquired per square foot | $ / ft² | 407 | |||||
Harbor Court Land [Member] | ||||||
Real Estate Acquisition [Line Items] | ||||||
Price of real estate acquired | $ 27,500 | |||||
Above Market Ground Leases [Member] | Other Income [Member] | ||||||
Real Estate Acquisition [Line Items] | ||||||
Net accretion of acquired lease intangibles | $ 0 | $ (37) | $ (6,600) | $ (113) |
Acquired Lease Intangibles (Sum
Acquired Lease Intangibles (Summary Of Acquired Lease Intangibles) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Acquired lease intangible assets, net | $ 4,729 | $ 4,729 | $ 3,527 | |||
Acquired lease intangible liabilities, net | 32,145 | 32,145 | 45,959 | |||
Cost and accumulated amortization removed | 36 | $ 0 | ||||
Amortization/accretion of above/below-market leases | 2,867 | $ 3,413 | 15,806 | 10,506 | ||
Above Market Tenant Leases [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Off-market lease, assets | 4,846 | 4,846 | 3,040 | |||
Accumulated amortization | (2,629) | (2,629) | (2,082) | |||
Below Market Tenant Leases [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Off-market lease, liabilities | 130,408 | 130,408 | 138,088 | |||
Accumulated accretion | (101,833) | (101,833) | (102,335) | |||
Above Market Ground Leases [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Off-market lease, liabilities | 4,017 | 4,017 | 16,200 | |||
Accumulated accretion | (447) | (447) | (5,994) | |||
Cost and accumulated accretion removed | $ 10,000 | |||||
Below Market Ground Leases [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Off-market lease, assets | 3,198 | 3,198 | 3,198 | |||
Accumulated amortization | (686) | (686) | $ (629) | |||
Harbor Court Land [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Accretion of above-market ground lease recorded in other income | $ 6,600 | |||||
Operating Lease Revenue [Member] | Tenant Lease [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Amortization/accretion of above/below-market leases | 2,858 | 3,367 | 9,183 | 10,370 | ||
Office Parking and Other Income [Member] | Above Market Ground Leases [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Amortization/accretion of above/below-market leases | (4) | (4) | (13) | (13) | ||
Office Expense [Member] | Above Market Ground Leases [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Amortization/accretion of above/below-market leases | 13 | 13 | 36 | 36 | ||
Other Income [Member] | Above Market Ground Leases [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Amortization/accretion of above/below-market leases | $ 0 | $ 37 | $ 6,600 | $ 113 |
Other Assets (Schedule Of Other
Other Assets (Schedule Of Other Assets) (Details) - USD ($) $ in Thousands | Feb. 12, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Feb. 28, 2014 |
Other Assets [Abstract] | |||||
Deferred loan costs, net of accumulated amortization of $14,077 and $13,042 at September 30, 2015 and December 31, 2014, respectively | $ 18,653 | $ 15,623 | |||
Note receivable | 0 | 27,500 | $ 27,500 | ||
Restricted cash | 194 | 194 | |||
Prepaid expenses | 10,267 | 6,108 | |||
Other indefinite-lived intangible | 1,988 | 1,988 | |||
Deposits in escrow | 0 | 2,500 | |||
Furniture, fixtures and equipment, net | 1,310 | 1,425 | |||
Other | 1,625 | 1,932 | |||
Total other assets | 34,037 | 57,270 | |||
Accumulated amortization of deferred loan costs | 14,077 | $ 13,042 | |||
Business Acquisition [Line Items] | |||||
Proceeds from repayment of note receivable | $ 1,000 | 1,000 | $ 0 | ||
Note receivable, non cash consideration repayment | $ 26,500 | ||||
OP Units issued | 34,412 | ||||
Issuance of operating partnership units in exchange for land and building acquired | $ 1,000 | $ 1,000 | $ 0 | ||
Harbor Court Land [Member] | |||||
Business Acquisition [Line Items] | |||||
Price of real estate acquired | $ 27,500 |
Other Assets (Amortization of D
Other Assets (Amortization of Deferred Loan Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Other Assets [Abstract] | ||||
Deferred loan costs amortization | $ 1,162 | $ 1,022 | $ 5,136 | $ 3,027 |
Secured Notes Payable and Rev45
Secured Notes Payable and Revolving Credit Facility(Schedule Of Secured Notes Payable and Revolving Credit Facility) (Details) | Oct. 13, 2015USD ($) | Sep. 30, 2015USD ($)extension_optionRate | Dec. 31, 2014USD ($) |
Debt Instrument [Line Items] | |||
Aggregate term loan principal | $ 3,474,111,000 | $ 3,253,290,000 | |
Total future principal payments | $ 3,474,111,000 | 3,435,290,000 | |
Weighted average remaining life of outstanding term debt | 3 years 12 months | ||
Debt at fixed interest rate | $ 3,190,000,000 | ||
Weighted average remaining life of interest rate swaps and fixed rate debt (in years) | 4 years 2 months | ||
Weighted average interest rate for fixed & effectively fixed rate debt | 3.80% | ||
Effective weighted average interest rate for fixed & effectively fixed rate debt | 3.92% | ||
Ownership percentage in joint ventures | 66.67% | ||
Aggregate Swap Fixed Rate Loans [Member] | |||
Debt Instrument [Line Items] | |||
Total future principal payments | $ 2,050,480,000 | 1,828,080,000 | |
Effective fixed rate, percent | 3.60% | ||
Aggregate Fixed Rate Loans [Member] | |||
Debt Instrument [Line Items] | |||
Total future principal payments | $ 1,142,491,000 | 1,144,070,000 | |
Effective fixed rate, percent | 4.15% | ||
Weighted average life of fixed interest rate on effectively fixed & fixed rate debt | 2 years 5 months | ||
Aggregate Floating Rate Loans [Member] | |||
Debt Instrument [Line Items] | |||
Total future principal payments | $ 281,140,000 | 463,140,000 | |
Term Loan With Maturity Date 12/24/2015 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Dec. 24, 2015 | ||
Total future principal payments | $ 20,000,000 | 20,000,000 | |
Variable Interest Rate | LIBOR + 1.45% | ||
DEG III Term Loan With Maturity Date 3/1/16 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Mar. 1, 2016 | ||
Total future principal payments | $ 16,140,000 | 16,140,000 | |
Variable Interest Rate | LIBOR + 1.60% | ||
Ownership percentage in joint ventures | 66.67% | ||
Term Loan With Maturity Date 3/1/2016 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Mar. 1, 2016 | ||
Total future principal payments | $ 82,000,000 | 82,000,000 | |
Variable Interest Rate | LIBOR + 0.62% | ||
Term Loan With Maturity Date 6/1/2017 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Jun. 1, 2017 | ||
Total future principal payments | $ 18,000,000 | 18,000,000 | |
Variable Interest Rate | LIBOR + 0.62% | ||
Term Loan With Maturity Date 10/2/2017 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Oct. 2, 2017 | ||
Total future principal payments | $ 0 | $ 400,000,000 | |
Variable Interest Rate | LIBOR + 2.00% | ||
Derivative, Fixed Interest Rate | 4.45% | ||
Swap Maturity Date | Jul. 1, 2015 | ||
Term Loan With Maturity Date 4/2/2018 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Apr. 2, 2018 | ||
Total future principal payments | $ 510,000,000 | $ 510,000,000 | |
Variable Interest Rate | LIBOR + 2.00% | ||
Derivative, Fixed Interest Rate | 4.12% | ||
Swap Maturity Date | Apr. 1, 2016 | ||
Term Loan With Maturity Date 8/1/2018 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Aug. 1, 2018 | ||
Total future principal payments | $ 530,000,000 | $ 530,000,000 | |
Variable Interest Rate | LIBOR + 1.70% | ||
Derivative, Fixed Interest Rate | 3.74% | ||
Swap Maturity Date | Aug. 1, 2016 | ||
Term Loan With Maturity Date 8/5/2018 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Aug. 5, 2018 | ||
Total future principal payments | $ 355,000,000 | $ 355,000,000 | |
Long-term Debt, Fixed Interest Rate | 4.14% | ||
Debt instrument period of monthly interest-only payments end date | Feb. 5, 2016 | ||
Fixed rate debt amortization period | 30 years | ||
Term Loan With Maturity Date 2/1/2019 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Feb. 1, 2019 | ||
Total future principal payments | $ 153,421,000 | $ 155,000,000 | |
Long-term Debt, Fixed Interest Rate | 4.00% | ||
Fixed rate debt amortization period | 30 years | ||
Term Loan With Maturity Date 6/5/2019 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Jun. 5, 2019 | ||
Total future principal payments | $ 285,000,000 | $ 285,000,000 | |
Long-term Debt, Fixed Interest Rate | 3.85% | ||
Debt instrument period of monthly interest-only payments end date | Feb. 5, 2017 | ||
Fixed rate debt amortization period | 30 years | ||
Term Loan With Maturity Date 10/1/2019 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Oct. 1, 2019 | ||
Total future principal payments | $ 145,000,000 | $ 145,000,000 | |
Variable Interest Rate | LIBOR + 1.25% | ||
Term Loan With Maturity Date 3/1/2020 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Mar. 1, 2020 | ||
Total future principal payments | $ 349,070,000 | $ 349,070,000 | |
Long-term Debt, Fixed Interest Rate | 4.46% | ||
Debt instrument period of monthly interest-only payments end date | May 1, 2016 | ||
Fixed rate debt amortization period | 30 years | ||
Debt instrument period of fixed interest end date | Mar. 1, 2018 | ||
Number of one-year extension options | extension_option | 2 | ||
Term Loan With Maturity Date 11/2/2020 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Nov. 2, 2020 | ||
Total future principal payments | $ 388,080,000 | $ 388,080,000 | |
Variable Interest Rate | LIBOR + 1.65% | ||
Derivative, Fixed Interest Rate | 3.65% | ||
Swap Maturity Date | Nov. 1, 2017 | ||
Term Loan With Maturity Date 4/15/2022 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Apr. 15, 2022 | ||
Total future principal payments | $ 340,000,000 | $ 0 | |
Variable Interest Rate | LIBOR + 1.40% | ||
Derivative, Fixed Interest Rate | 2.77% | ||
Swap Maturity Date | Apr. 1, 2020 | ||
Term Loan With Maturity Date 7/27/2022 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Jul. 27, 2022 | ||
Total future principal payments | $ 180,000,000 | $ 0 | |
Variable Interest Rate | LIBOR + 1.45% | ||
Derivative, Fixed Interest Rate | 3.06% | ||
Swap Maturity Date | Jul. 1, 2020 | ||
Potential term extension | 2 years | ||
Term Loan With Maturity Date 4/01/2025 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Apr. 1, 2025 | ||
Total future principal payments | $ 102,400,000 | $ 0 | |
Variable Interest Rate | LIBOR + 1.25% | ||
Derivative, Fixed Interest Rate | 2.84% | ||
Swap Maturity Date | Mar. 1, 2020 | ||
Revolving Credit Facility With Maturity Date 12/11/17 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Aug. 21, 2020 | ||
Revolving credit line | $ 0 | $ 182,000,000 | |
Variable Interest Rate | LIBOR + 1.40% | ||
Maximum borrowing capacity | $ 400,000,000 | ||
LIBOR [Member] | Term Loan With Maturity Date 12/24/2015 [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.45% | ||
LIBOR [Member] | DEG III Term Loan With Maturity Date 3/1/16 [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.60% | ||
LIBOR [Member] | Term Loan With Maturity Date 3/1/2016 [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 0.62% | ||
LIBOR [Member] | Term Loan With Maturity Date 6/1/2017 [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 0.62% | ||
LIBOR [Member] | Term Loan With Maturity Date 10/2/2017 [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 2.00% | ||
LIBOR [Member] | Term Loan With Maturity Date 4/2/2018 [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 2.00% | ||
LIBOR [Member] | Term Loan With Maturity Date 8/1/2018 [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.70% | ||
LIBOR [Member] | Term Loan With Maturity Date 10/1/2019 [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.25% | ||
LIBOR [Member] | Term Loan With Maturity Date 11/2/2020 [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.65% | ||
LIBOR [Member] | Term Loan With Maturity Date 4/15/2022 [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.40% | ||
LIBOR [Member] | Term Loan With Maturity Date 7/27/2022 [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.45% | ||
LIBOR [Member] | Term Loan With Maturity Date 4/01/2025 [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.25% | ||
LIBOR [Member] | Revolving Credit Facility With Maturity Date 12/11/17 [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.40% | ||
outstanding principal is greater than $100,000,000 [Member] | Revolving Credit Facility With Maturity Date 12/11/17 [Member] | |||
Debt Instrument [Line Items] | |||
Unused commitment fees | Rate | 0.15% | ||
outstanding principal is less than $100,000,000 [Member] | Revolving Credit Facility With Maturity Date 12/11/17 [Member] | |||
Debt Instrument [Line Items] | |||
Unused commitment fees | Rate | 0.20% | ||
Subsequent Event [Member] | Term Loan With Maturity Date 4/2/2018 [Member] | |||
Debt Instrument [Line Items] | |||
Payments on loan due | $ 254,000,000 | ||
Subsequent Event [Member] | Term Loan With Maturity Date 11/01/2022 [Member] | |||
Debt Instrument [Line Items] | |||
Effective fixed rate, percent | 2.64% | ||
Term loan, amount | $ 400,000,000 | ||
Subsequent Event [Member] | LIBOR [Member] | Term Loan With Maturity Date 11/01/2022 [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.35% |
Secured Notes Payable and Rev46
Secured Notes Payable and Revolving Credit Facility (Schedule Of Minimum Future Principal Payments Due On Secured Notes Payable) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Secured Debt [Abstract] | ||
2,016 | $ 126,344 | |
2,017 | 35,953 | |
2,018 | 1,734,889 | |
2,019 | 421,445 | |
2,020 | 325,000 | |
Thereafter | 830,480 | |
Total future principal payments | $ 3,474,111 | $ 3,435,290 |
Interest Payable, Accounts Pa47
Interest Payable, Accounts Payable and Deferred Revenue (Schedule Of Accounts Payable And Accrued Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Interest payable | $ 9,424 | $ 9,656 |
Accounts payable and accrued liabilities | 37,724 | 22,195 |
Deferred revenue | 20,378 | 22,513 |
Total interest payable, accounts payable and deferred revenue | $ 67,526 | $ 54,364 |
Derivative Contracts (Summary o
Derivative Contracts (Summary of Derivatives) (Details) $ in Thousands | Sep. 30, 2015USD ($)instrument |
Fund X [Member] | |
Derivative [Line Items] | |
Equity interest of the Fund, Percent | 68.61% |
Derivatives Designated as Cash Flow Hedges: | Cash Flow Hedging [Member] | Interest Rate Swap [Member] | |
Derivative [Line Items] | |
Number of Instruments | instrument | 10 |
Notional | $ 2,050,480 |
Derivatives Designated as Cash Flow Hedges: | Cash Flow Hedging [Member] | Purchased Caps [Member] | |
Derivative [Line Items] | |
Number of Instruments | instrument | 3 |
Notional | $ 18,000 |
Derivatives Designated as Cash Flow Hedges: | Cash Flow Hedging [Member] | Fund X [Member] | |
Derivative [Line Items] | |
Equity interest of the Fund, Percent | 68.61% |
Derivatives Designated as Cash Flow Hedges: | Cash Flow Hedging [Member] | Fund X [Member] | Interest Rate Swap [Member] | |
Derivative [Line Items] | |
Number of Instruments | instrument | 1 |
Notional | $ 325,000 |
Percent of notional amount related to the Fund | 100.00% |
Derivative Contracts (Credit-ri
Derivative Contracts (Credit-risk-related Contingent Features) (Details) - Interest Rate Swap [Member] - Derivatives Designated as Cash Flow Hedges: - Cash Flow Hedging [Member] - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value derivatives in a liability position | $ 34,864 | $ 40,953 |
Fund X [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value derivatives in a liability position | $ 422 | $ 0 |
Derivative Contracts (Impact of
Derivative Contracts (Impact of Hedges on AOCI and Statements of Operations) (Details) - Cash Flow Hedging [Member] - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Derivatives Designated as Cash Flow Hedges: | ||
Derivative [Line Items] | ||
Loss recorded in AOCI (effective portion) | $ (21,975) | $ (7,059) |
Loss reclassified from AOCI (effective portion) | (27,897) | (27,575) |
Interest Expense [Member] | Derivatives Designated as Cash Flow Hedges: | ||
Derivative [Line Items] | ||
Loss reclassified from AOCI (ineffective portion) | 0 | (50) |
Gain (loss) recorded as interest expense (ineffective portion) | 0 | 0 |
Interest Expense [Member] | Derivatives Not Designated as Cash Flow Hedges: | ||
Derivative [Line Items] | ||
Gain (loss) recorded as interest expense | 0 | 0 |
Fund X [Member] | Derivatives Designated as Cash Flow Hedges: | ||
Derivative [Line Items] | ||
Loss recorded in AOCI (effective portion) | (2,483) | (1,048) |
Loss reclassified from AOCI (effective portion) | $ (709) | $ (752) |
Derivative Contracts (Future Re
Derivative Contracts (Future Reclassifications from AOCI) (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative designated as cash flow hedge to be reclassified | $ 25,400 |
Fund X [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative designated as cash flow hedge to be reclassified | $ 461 |
Equity (Narrative) (Details)
Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 12, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 |
Stockholders' Equity Note [Abstract] | ||||
Number of operating partnership units converted to shares of common stock | 1,400,000 | 2,200,000 | ||
Number of shares issued for option exercises | 136,000 | |||
Net proceeds from exercise of options | $ 1,823 | $ 0 | ||
Average price per share for exercise of options (usd per share) | $ 13.44 | |||
OP Units issued | 34,412 | |||
Issuance of operating partnership units in exchange for land and building acquired | $ 1,000 | $ 1,000 | $ 0 | |
Number of operating partnership units redeemed for cash | 120,000 | |||
Repurchase of OP units from noncontrolling interests | $ 2,827 | |||
Average redemption price (usd per share) | $ 23.56 | |||
Common stock options settled | 691,000 | |||
Purchase price of stock options | $ 0 | $ 4,524 | ||
Average purchase price of options (usd per share) | $ 6.55 | |||
Common stock, shares outstanding | 146,359,348 | 144,869,101 | ||
Number of OP units and fully-vested LTIP units outstanding | 26,300,000 | |||
Noncontrolling interest, ownership percentage by noncontrolling owners | 15.00% | |||
Number of shares of common stock issued upon redemption of one OP unit | 1 | |||
Ownership percentage in joint ventures | 66.67% |
Equity (Condensed Consolidated
Equity (Condensed Consolidated Statements Of Equity) (Details) - USD ($) $ in Thousands | Feb. 12, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 |
Equity [Line Items] | |||||
Douglas Emmett, Inc. Stockholders' Equity, Beginning Balance | $ 1,943,458 | ||||
Noncontrolling Interests, Beginning Balance | 370,266 | ||||
Total Equity, Beginning Balance | 2,313,724 | $ 2,367,208 | |||
Net income attributable to common stockholders | $ 12,070 | $ 7,389 | 44,217 | 33,728 | |
Noncontrolling Interests, Net Income | 2,089 | 1,292 | 7,932 | 6,328 | |
Net income | 14,159 | 8,681 | 52,149 | 40,056 | |
Cash flow hedge fair value adjustment | (8,237) | 12,110 | 4,148 | 20,270 | |
Contributions | 250 | ||||
Dividends and distributions | (109,636) | (103,833) | |||
Repurchase of stock options | 0 | (4,524) | |||
Exchange of OP units | 0 | 0 | |||
Repurchase of OP units | (2,827) | ||||
Issuance of OP units | $ 1,000 | 1,000 | 0 | ||
Stock Issued During Period, Value, Stock Options Exercised | 1,823 | ||||
Equity compensation | 6,603 | 4,416 | |||
Douglas Emmett, Inc. Stockholders' Equity, Ending Balance | 1,918,751 | 1,918,751 | |||
Noncontrolling Interests, Ending Balance | 351,060 | 351,060 | |||
Total Equity, Ending Balance | 2,269,811 | 2,321,016 | 2,269,811 | 2,321,016 | |
Douglas Emmett Inc Stockholders Equity [Member] | |||||
Equity [Line Items] | |||||
Douglas Emmett, Inc. Stockholders' Equity, Beginning Balance | 1,943,458 | 1,970,397 | |||
Net income attributable to common stockholders | 44,217 | 33,728 | |||
Cash flow hedge fair value adjustment | 3,239 | 16,297 | |||
Contributions | 0 | ||||
Dividends and distributions | (92,087) | (86,518) | |||
Repurchase of stock options | (4,524) | ||||
Exchange of OP units | 18,101 | 29,555 | |||
Repurchase of OP units | (1,197) | ||||
Issuance of OP units | 0 | ||||
Stock Issued During Period, Value, Stock Options Exercised | 1,823 | ||||
Equity compensation | 0 | 0 | |||
Douglas Emmett, Inc. Stockholders' Equity, Ending Balance | 1,918,751 | 1,957,738 | 1,918,751 | 1,957,738 | |
Noncontrolling Interest [Member] | |||||
Equity [Line Items] | |||||
Noncontrolling Interests, Beginning Balance | 370,266 | 396,811 | |||
Noncontrolling Interests, Net Income | 7,932 | 6,328 | |||
Cash flow hedge fair value adjustment | 909 | 3,973 | |||
Contributions | 250 | ||||
Dividends and distributions | (17,549) | (17,315) | |||
Repurchase of stock options | 0 | ||||
Exchange of OP units | (18,101) | (29,555) | |||
Repurchase of OP units | (1,630) | ||||
Issuance of OP units | 1,000 | ||||
Stock Issued During Period, Value, Stock Options Exercised | 0 | ||||
Equity compensation | 6,603 | 4,416 | |||
Noncontrolling Interests, Ending Balance | $ 351,060 | $ 363,278 | $ 351,060 | $ 363,278 |
Equity (Net Income Attributable
Equity (Net Income Attributable To Common Stockholders And Transfers (To) From Noncontrolling Interests) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Stockholders' Equity Note [Abstract] | ||||
Net income attributable to common stockholders | $ 12,070 | $ 7,389 | $ 44,217 | $ 33,728 |
Exchange of OP units with noncontrolling interests | 900 | 9,054 | 18,088 | 29,534 |
Repurchase of OP units from noncontrolling interests | 0 | 0 | 0 | (1,197) |
Net transfers from noncontrolling interests | 900 | 9,054 | 18,088 | 28,337 |
Change from net income attributable to common stockholders and transfers from noncontrolling interests | $ 12,970 | $ 16,443 | $ 62,305 | $ 62,065 |
Equity Accumulated Other Compre
Equity Accumulated Other Comprehensive Income Schedule (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | $ (30,089) | |||
Net current period OCI | $ (8,237) | $ 12,110 | 4,148 | $ 20,270 |
Ending balance | (26,850) | (26,850) | ||
Cash Flow Hedging [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (30,089) | (50,554) | ||
Other comprehensive loss before reclassifications | (21,975) | (7,059) | ||
Reclassifications from AOCI | 27,897 | 27,625 | ||
Net current period OCI | 4,148 | 20,270 | ||
Less OCI attributable to noncontrolling interests | (909) | (3,973) | ||
OCI attributable to common stockholders | 3,239 | 16,297 | ||
Ending balance | $ (26,850) | $ (34,257) | (26,850) | (34,257) |
Fund X [Member] | Cash Flow Hedging [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Other comprehensive loss before reclassifications | (2,483) | (1,048) | ||
Reclassifications from AOCI | $ 709 | $ 752 |
Equity Equity Compensation Expe
Equity Equity Compensation Expense (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Stockholders' Equity Note [Abstract] | ||||
Non-cash amortization of equity compensation | $ 2,000,000 | $ 1,300,000 | $ 5,973,000 | $ 4,049,000 |
Capitalized equity compensation | 208,000 | 97,000 | 610,000 | 367,000 |
Intrinsic value of options exercised and repurchased | $ 0 | $ 0 | $ 2,200,000 | $ 4,500,000 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net income attributable to common stockholders | $ 12,070 | $ 7,389 | $ 44,217 | $ 33,728 |
Allocation to participating securities: Unvested LTIP units | (59) | (24) | (224) | (125) |
Numerator for basic and diluted net income attributable to common stockholders | $ 12,011 | $ 7,365 | $ 43,993 | $ 33,603 |
Weighted average shares of common stock outstanding - basic | 146,331 | 144,361 | 145,856 | 143,741 |
Effect of dilutive securities: Stock options | 4,409 | 4,280 | 4,429 | 4,103 |
Weighted average shares of common stock and common stock equivalents outstanding - diluted | 150,740 | 148,641 | 150,285 | 147,844 |
Net income attributable to common stockholders per share – basic (usd per share) | $ 0.082 | $ 0.051 | $ 0.302 | $ 0.234 |
Net income attributable to common stockholders per share – diluted (usd per share) | $ 0.080 | $ 0.050 | $ 0.293 | $ 0.227 |
Operating Partnership Units and Vested LTIP Units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from the computation of weighted average diluted shares | 26,315 | 27,223 | 26,755 | 27,841 |
Unvested LTIP Units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from the computation of weighted average diluted shares | 647 | 549 | 576 | 497 |
Fair Value of Financial Instr58
Fair Value of Financial Instruments Fair Value of Financial Instruments - Estimated Fair Value of Secured Notes Payable (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value Disclosures [Abstract] | ||
Fair value | $ 3,512,545 | $ 3,293,351 |
Carrying value | $ 3,474,111 | $ 3,253,290 |
Fair Value of Financial Instr59
Fair Value of Financial Instruments Fair Value Table (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability, fair value | $ 31,465 | $ 37,386 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability, fair value | $ 31,465 | 37,386 |
Fund X [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity interest of the Fund, Percent | 68.61% | |
Fund X [Member] | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset, fair value | $ 0 | 2,282 |
Derivative liability, fair value | $ 304 | $ 0 |
Fund X [Member] | Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Percent of notional amount related to the Fund | 100.00% |
Future Minimum Lease Receipts60
Future Minimum Lease Receipts (Schedule Of Future Minimum Base Rentals On Non-Cancelable Office And Ground Operating Leases) (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
2,016 | $ 392,368 |
2,017 | 351,434 |
2,018 | 293,781 |
2,019 | 236,373 |
2,020 | 184,494 |
Thereafter | 463,838 |
Total future minimum base rentals | $ 1,922,288 |
Future Minimum Lease Payments61
Future Minimum Lease Payments (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)ground_lease | Sep. 30, 2014USD ($) | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||||
Number Of Ground Leases | 2 | |||
Ground lease payments | $ | $ 183 | $ 718 | $ 550 | $ 1,900 |
Future Minimum Lease Payments62
Future Minimum Lease Payments (Future Minimum Ground Lease Payments) (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,016 | $ 733 |
2,017 | 733 |
2,018 | 733 |
2,019 | 733 |
2,020 | 733 |
Thereafter | 48,560 |
Total future minimum lease payments | 52,225 |
Future ground rent payments per year | $ 733 |
Commitments, Contingencies an63
Commitments, Contingencies and Guarantees (Details) | 9 Months Ended | ||
Sep. 30, 2015USD ($)propertytenant | Dec. 31, 2014USD ($) | Sep. 30, 2014tenant | |
Other Commitments [Line Items] | |||
Number of tenants accounting for more than 10% of our total rental revenue and tenant recoveries | tenant | 0 | 0 | |
Amount accounts are insured for by Federal Deposit Insurance Corporation | $ 250,000 | ||
Number of properties containing Asbestos | property | 23 | ||
Loan principal | $ 3,474,111,000 | $ 3,253,290,000 | |
Fund X [Member] | |||
Other Commitments [Line Items] | |||
Loan principal | $ 325,000,000 | ||
Maturity date | May 1, 2018 | ||
Swap maturity date | May 1, 2017 | ||
Maximum future payments under the swap agreement | $ 3,100,000 | ||
Fund X [Member] | |||
Other Commitments [Line Items] | |||
Number of properties containing Asbestos | property | 4 |
Segment Reporting Segment Repor
Segment Reporting Segment Reporting (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2015segment | |
Segment Reporting [Abstract] | |
Number of reportable business segments | 2 |
Segment Reporting (Operating Ac
Segment Reporting (Operating Activity Within Reportable Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Total office revenues | $ 136,225 | $ 127,957 | $ 404,472 | $ 388,596 |
Office expenses | (49,195) | (47,631) | (139,936) | (135,644) |
Total multifamily revenues | 23,852 | 20,184 | 70,871 | 59,839 |
Multifamily expenses | (6,191) | (5,261) | (17,941) | (15,490) |
Segment profit | 104,691 | 95,249 | 317,466 | 297,301 |
Office Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total office revenues | 136,225 | 127,957 | 404,472 | 388,596 |
Office expenses | (49,195) | (47,631) | (139,936) | (135,644) |
Segment profit | 87,030 | 80,326 | 264,536 | 252,952 |
Multifamily Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total multifamily revenues | 23,852 | 20,184 | 70,871 | 59,839 |
Multifamily expenses | (6,191) | (5,261) | (17,941) | (15,490) |
Segment profit | $ 17,661 | $ 14,923 | $ 52,930 | $ 44,349 |
Segment Reporting (Reconciliati
Segment Reporting (Reconciliation Of Segment Profit To Net Income Attributable To Common Stockholders) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting [Abstract] | ||||
Total profit from all segments | $ 104,691 | $ 95,249 | $ 317,466 | $ 297,301 |
General and administrative expense | (6,867) | (6,658) | (21,701) | (20,181) |
Depreciation and amortization | (52,229) | (50,111) | (153,309) | (151,249) |
Other income | 2,129 | 3,769 | 13,103 | 12,642 |
Other expenses | (1,605) | (1,983) | (4,796) | (5,114) |
Income, including depreciation, from unconsolidated real estate funds | 898 | 665 | 3,548 | 2,725 |
Interest expense | (32,705) | (32,098) | (101,521) | (95,888) |
Acquisition-related expenses | (153) | (152) | (641) | (180) |
Net income | 14,159 | 8,681 | 52,149 | 40,056 |
Less: Net income attributable to noncontrolling interests | (2,089) | (1,292) | (7,932) | (6,328) |
Net income attributable to common stockholders | $ 12,070 | $ 7,389 | $ 44,217 | $ 33,728 |
Investments In Unconsolidated67
Investments In Unconsolidated Real Estate Funds Narrative (Details) ft² in Millions, $ in Millions | 9 Months Ended | ||
Sep. 30, 2015USD ($)ft²office_propertyNumber_of_funds_managed | Dec. 31, 2014USD ($) | Apr. 03, 2013USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||
Number of office properties owned | 62 | ||
Percentage of amounts related to the Fund | 100.00% | ||
Partially Owned Properties [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Real Estate Funds owned and managed | Number_of_funds_managed | 2 | ||
Square footage of real estate property | ft² | 1.8 | ||
Fund X [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Due from related parties | $ | $ 0.6 | $ 1.5 | $ 2.9 |
Partnership X [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity interest of the Fund, Percent | 24.25% | ||
Fund X [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity interest of the Fund, Percent | 68.61% | ||
Partially Owned Properties [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of office properties owned | 8 | ||
LIBOR [Member] | Fund X [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Variable rate | LIBOR plus 2.5% | ||
Basis spread | 2.50% |
Investments In Unconsolidated68
Investments In Unconsolidated Real Estate Funds Investments in Unconsolidated Real Estate Funds (Summary of Cash Distributions Received from Funds) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Real Estate Investments, Net [Abstract] | ||||
Cash distributions received from our Funds | $ 1,885 | $ 3,140 | $ 6,473 | $ 9,324 |
Investments In Unconsolidated69
Investments In Unconsolidated Real Estate Funds (Summary Of Statement Of Operations For Investments In Unconsolidated Real Estate Funds) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Real Estate Investments, Net [Abstract] | ||
Total revenues | $ 52,500 | $ 49,276 |
Operating income | 10,072 | 8,627 |
Net income | $ 1,431 | $ 60 |
Investments In Unconsolidated70
Investments In Unconsolidated Real Estate Funds (Summary Of Statement Of Financial Position For Investments In Unconsolidated Real Estate Funds) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Real Estate Investments, Net [Abstract] | ||
Total assets | $ 692,662 | $ 703,130 |
Total liabilities | 389,934 | 389,413 |
Total equity | $ 302,728 | $ 313,717 |
Subsequent Events (Details)
Subsequent Events (Details) | Oct. 13, 2015USD ($)collateral_pool | Sep. 30, 2015USD ($) | Dec. 31, 2014USD ($) |
Subsequent Event [Line Items] | |||
Secured notes payable and revolving credit facility | $ 3,474,111,000 | $ 3,435,290,000 | |
Term Loan With Maturity Date 11/01/2022 [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Term loan, amount | $ 400,000,000 | ||
Effective fixed rate, percent | 2.64% | ||
Number of office properties in pool securing loan | collateral_pool | 7 | ||
Term Loan With Maturity Date 4/2/2018 [Member] | |||
Subsequent Event [Line Items] | |||
Secured notes payable and revolving credit facility | $ 510,000,000 | $ 510,000,000 | |
Maturity Date | Apr. 2, 2018 | ||
Term Loan With Maturity Date 4/2/2018 [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Payments on loan due | $ 254,000,000 | ||
LIBOR [Member] | Term Loan With Maturity Date 11/01/2022 [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Basis spread | 1.35% | ||
LIBOR [Member] | Term Loan With Maturity Date 4/2/2018 [Member] | |||
Subsequent Event [Line Items] | |||
Basis spread | 2.00% |