Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 29, 2016 | |
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 | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 147,803,520 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Land | $ 993,043 | $ 897,916 |
Buildings and improvements | 6,884,342 | 5,644,546 |
Tenant improvements and lease intangibles | 756,695 | 696,647 |
Property under development | 28,316 | 26,900 |
Investment in real estate, gross | 8,662,396 | 7,266,009 |
Less: accumulated depreciation and amortization | (1,738,848) | (1,687,998) |
Investment in real estate, net | 6,923,548 | 5,578,011 |
Real estate held for sale, net | 42,551 | 42,943 |
Cash and cash equivalents | 72,191 | 101,798 |
Tenant receivables, net | 3,668 | 1,907 |
Deferred rent receivables, net | 82,756 | 79,837 |
Acquired lease intangible assets, net | 4,661 | 4,484 |
Interest rate contract assets | 1,493 | 4,830 |
Investment in unconsolidated real estate funds | 148,602 | 164,631 |
Other assets | 11,954 | 87,720 |
Total assets | 7,291,424 | 6,066,161 |
Liabilities | ||
Secured notes payable and revolving credit facility, net | 4,469,957 | 3,611,276 |
Interest payable, accounts payable and deferred revenue | 75,587 | 57,417 |
Security deposits | 43,014 | 38,683 |
Acquired lease intangible liabilities, net | 76,752 | 28,605 |
Interest rate contract liabilities | 33,075 | 16,310 |
Dividends payable | 32,424 | 32,322 |
Total liabilities | 4,730,809 | 3,784,613 |
Douglas Emmett, Inc. stockholders' equity: | ||
Common Stock, $0.01 par value 750,000,000 authorized, 147,383,520 and 146,919,187 outstanding at March 31, 2016 and December 31, 2015, respectively | 1,474 | 1,469 |
Additional paid-in capital | 2,712,150 | 2,706,753 |
Accumulated other comprehensive loss | (27,313) | (9,285) |
Accumulated deficit | (789,784) | (772,726) |
Total Douglas Emmett, Inc. stockholders' equity | 1,896,527 | 1,926,211 |
Noncontrolling interests | 664,088 | 355,337 |
Total equity | 2,560,615 | 2,281,548 |
Total liabilities and equity | $ 7,291,424 | $ 6,066,161 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
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 | 147,383,520 | 146,919,187 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Office rental | ||
Rental revenues | $ 111,006 | $ 100,651 |
Tenant recoveries | 10,211 | 10,150 |
Parking and other income | 23,162 | 20,655 |
Total office revenues | 144,379 | 131,456 |
Multifamily rental | ||
Rental revenues | 22,427 | 21,644 |
Parking and other income | 1,766 | 1,709 |
Total multifamily revenues | 24,193 | 23,353 |
Total revenues | 168,572 | 154,809 |
Operating Expenses | ||
Office expenses | 47,883 | 44,199 |
Multifamily expenses | 6,031 | 5,820 |
General and administrative | 8,071 | 7,361 |
Depreciation and amortization | 55,552 | 49,834 |
Total operating expenses | 117,537 | 107,214 |
Operating income | 51,035 | 47,595 |
Other income | 2,089 | 8,559 |
Other expenses | (1,551) | (1,572) |
Income, including depreciation, from unconsolidated real estate funds | 1,586 | 1,443 |
Interest expense | (35,660) | (33,639) |
Acquisition-related expenses | (1,453) | (290) |
Net income | 16,046 | 22,096 |
Less: Net income attributable to noncontrolling interests | (680) | (3,397) |
Net income attributable to common stockholders | $ 15,366 | $ 18,699 |
Net income attributable to common stockholders per share – basic (usd per share) | $ 0.104 | $ 0.128 |
Net income attributable to common stockholders per share – diluted (usd per share) | 0.101 | 0.124 |
Dividends declared per common share (usd per share) | $ 0.22 | $ 0.21 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 16,046 | $ 22,096 |
Other comprehensive income (loss): cash flow hedges | (20,608) | 1,018 |
Comprehensive income (loss) | (4,562) | 23,114 |
Less: Comprehensive (income) loss attributable to noncontrolling interests | 1,900 | (3,730) |
Comprehensive income (loss) attributable to common stockholders | $ (2,662) | $ 19,384 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating Activities | ||
Net income | $ 16,046 | $ 22,096 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Income, including depreciation, from unconsolidated real estate funds | (1,586) | (1,443) |
Depreciation and amortization | 55,552 | 49,834 |
Net accretion of acquired lease intangibles | (3,304) | (9,800) |
Straight-line rent | (2,919) | (2,225) |
Increase in the allowance for doubtful accounts | 679 | (135) |
Amortization of deferred loan costs | 1,319 | 1,773 |
Amortization of stock-based compensation | 2,379 | 1,947 |
Operating distributions from unconsolidated real estate funds | 375 | 286 |
Change in working capital components: | ||
Tenant receivables | (2,440) | 458 |
Interest payable, accounts payable and deferred revenue | 18,444 | 9,719 |
Security deposits | 4,331 | (1,009) |
Other assets | 965 | 1,425 |
Net cash provided by operating activities | 89,841 | 72,926 |
Investing Activities | ||
Capital expenditures for improvements to real estate | (15,556) | (20,526) |
Capital expenditures for developments | (1,412) | (667) |
Property acquisitions | (1,257,513) | (89,906) |
Proceeds from repayment of note receivable | 0 | 1,000 |
Loan payments received from related parties | 763 | 307 |
Capital distributions from unconsolidated real estate funds | 15,773 | 2,060 |
Net cash used in investing activities | (1,257,945) | (107,732) |
Financing Activities | ||
Proceeds from borrowings | 900,000 | 214,400 |
Repayment of borrowings | (31,194) | (146,224) |
Loan costs | (11,444) | (960) |
Contributions from noncontrolling interests in consolidated joint venture | 320,000 | 0 |
Distributions to noncontrolling interests in our Operating Partnership | (6,098) | (5,995) |
Cash dividends to common stockholders | (32,322) | (30,422) |
Exercise of stock options | 0 | 1,823 |
Withholding taxes for exercise of stock options | (445) | 0 |
Net cash provided by financing activities | 1,138,497 | 32,622 |
Decrease in cash and cash equivalents | (29,607) | (2,184) |
Cash and cash equivalents at beginning of period | 101,798 | 18,823 |
Cash and cash equivalents at end of period | 72,191 | 16,639 |
SUPPLEMENTAL CASH FLOWS INFORMATION | ||
Cash paid for interest, net of capitalized interest of $238 and $166 for the three months ended March 31, 2016 and 2015, respectively | 32,893 | 31,644 |
Decrease in accrual for capital expenditures for improvements to real estate and developments | 0 | 943 |
Capitalized stock-based compensation for improvements to real estate and developments | 217 | 193 |
Write-off of fully depreciated and amortized tenant improvements and lease intangibles | 4,230 | 0 |
Write-off of fully amortized acquired lease intangible assets | 150 | 0 |
Write-off of fully accreted acquired lease intangible liabilities | 6,424 | 10,040 |
Settlement of note receivable in exchange for land and building acquired | 0 | 26,500 |
Issuance of OP Units in exchange for land and building acquired | 0 | 1,000 |
Application of deposit to purchase price of property | 75,000 | 2,500 |
Loss from market value adjustments | (28,812) | (7,022) |
Dividends declared | 32,424 | 30,631 |
Common stock issued in exchange for OP Units | 5,847 | 11,408 |
Fund X [Member] | ||
SUPPLEMENTAL CASH FLOWS INFORMATION | ||
Loss from market value adjustments | $ (611) | $ (1,333) |
Consolidated Statements of Cas7
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Cash Flows [Abstract] | ||
Capitalized interest paid | $ 238 | $ 166 |
Overview
Overview | 3 Months Ended |
Mar. 31, 2016 | |
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 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, acquiring, developing and managing 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 our Operating Partnership and its subsidiaries, our consolidated joint ventures and our unconsolidated Funds, we own or partially own, acquire, develop and manage real estate, consisting primarily of office and multifamily properties in Los Angeles County, California and Honolulu, Hawaii. As of March 31, 2016 , we owned a consolidated portfolio of (i) fifty-eight office properties (including ancillary retail space), which included five office properties owned by our consolidated joint ventures, (ii) ten multifamily properties and (iii) 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 unconsolidated Funds, which at March 31, 2016 , owned eight additional office properties, for a combined sixty-six 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 financial statements are the consolidated financial statements of Douglas Emmett, Inc. and its subsidiaries, including our Operating Partnership and our consolidated joint ventures. All significant intercompany balances and transactions have been eliminated in our consolidated financial statements. As of March 31, 2016 , the consolidated financial statements included one VIE, in which we were deemed to be the primary beneficiary. The VIE was established in the first quarter of 2016 in connection with Westwood portfolio acquisition, see Note 3 . As of March 31, 2016 , the impact of consolidating the VIE increased the Company’s total assets, liabilities and equity by approximately $1.43 billion million (of which $1.38 billion related to real estate held for investment), $631.7 million and $798.3 million (of which $318.6 million related to the noncontrolling interests equity), respectively. As of March 31, 2016 , the carrying value of a property that we are currently marketing was reclassified from investment in real estate to real estate held for sale in our accompanying Consolidated Balance Sheets, and we reclassified the comparable period to conform to the current period presentation. 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 reclassified the prior periods, which were 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 prior periods. The accompanying unaudited interim financial statements have been prepared pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with US 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, 2016 . The interim financial statements should be read in conjunction with the consolidated financial statements in our 2015 Annual Report on Form 10-K and the notes thereto. Any references in this report to the number of properties, square footage, per square footage amounts, apartment units 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 PCAOB. |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
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 2015 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 Code. 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 TRS. New Accounting Pronouncements Changes to GAAP are established by the FASB in the form ASUs. We consider the applicability and impact of all ASUs. Recently Issued and Adopted Accounting Pronouncements In January 2015, the FASB issued ASU No. 2015-01, "Income Statement—Extraordinary and Unusual Items (Subtopic 225-20)", which eliminates the concept of extraordinary items from GAAP. The Board is issuing this Update as part of its initiative to reduce complexity in accounting standards (the Simplification Initiative). The objective of the Simplification Initiative is to identify, evaluate, and improve areas of GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to the users of financial statements. The amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, which for us is the first quarter of 2016. We adopted the ASU in the first quarter of 2016 and it did not have a material impact on our financial position, results of operations or disclosures. In February 2015, the FASB issued ASU No. 2015-02, "Amendments to the Consolidation Analysis (Consolidation - Topic 810)", which provides guidance regarding the consolidation of certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. The amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, which for us is the first quarter of 2016. We adopted the ASU in the first quarter of 2016 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 ASU requires that an acquirer (i) recognize adjustments to provisional amounts from business combinations that are identified during the measurement period in the reporting period in which the adjustment amounts are determined, (ii) record, in the same period’s financial statements, the effect on earnings, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date and (iii) disclose of 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 is the first quarter of 2016. We adopted the ASU in the first quarter of 2016 and it did not have a material impact on our financial position, results of operations or disclosures. In March 2016, the FASB issued ASU No. 2016-05, "Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships", which amends "Derivatives and Hedging" (Topic 815). The ASU provides guidance on the effect of derivative contract novations on existing hedge accounting relationships. The ASU clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815, does not in and of itself require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those years, which for us would be the first quarter of 2017, and early adoption is permitted. We adopted the ASU in the first quarter of 2016 and it did not have a material impact on our financial position, results of operations or disclosures. Recently Issued Accounting Pronouncements In January 2016, the FASB issued ASU No. 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities" which amends "Financial Instruments - Overall" (Subtopic 825-10). The amendments in this Update address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those years, which for us would be the first quarter of 2018. The amendments in this Update should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption, and early adoption is permitted under certain circumstances. We do not expect the ASU to have a material impact on our financial position, results of operations or disclosures. In February 2016, the FASB issued ASU No. 2016-02, "Leases" (Topic 842). The ASU increases transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information about leasing arrangements. To meet that objective, the FASB has created Topic 842. The accounting applied by a lessor is largely unchanged from that applied under previous GAAP. For example, the vast majority of operating leases will remain classified as operating leases, and lessors will continue to recognize lease income for those leases on a generally straight-line basis over the lease term. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those years, which for us would be the first quarter of 2019, and early adoption is permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. We do not expect the ASU to have a material impact on our financial position, results of operations or disclosures. In March 2016, the FASB issued ASU No. 2016-07, "Simplifying the Transition to the Equity Method of Accounting" which amends "Investments-Equity Method and Joint Ventures" (Topic 323). The ASU simplifies the transition to the equity method of accounting by eliminating the requirement that an entity retroactively adopt the equity method of accounting if an investment qualifies for use of the equity method as a result of an increase in the level of ownership or degree of influence. The ASU requires that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment qualifies for equity method accounting. The ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those years, which for us would be the first quarter of 2017, and early adoption is permitted. The amendments in this Update should be applied prospectively. We do not expect the ASU to have a material impact on our financial position, results of operations or disclosures. In March 2016, the FASB issued ASU No. 2016-08, "Principal versus Agent Considerations (Reporting Revenue Gross versus Net)" which amends "Revenue from Contracts with Customers" (Topic 606). The ASU clarifies the implementation guidance for principal versus agent considerations. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those years, which for us would be the first quarter of 2018, and early adoption is permitted commencing the first quarter of 2017. The amendments in this Update should be applied retrospectively. We are currently evaluating the impact of this ASU. In March 2016, the FASB issued ASU No. 2016-09, "Improvements to Employee Share-Based Payment Accounting" which amends "Compensation-Stock Compensation" (Topic 718). This ASU simplifies the accounting for several aspects of share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. The ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those years, which for us would be the first quarter of 2017, and early adoption is permitted. The ASU amendments are applied on a prospective or retrospective basis depending on the specific amendment. We do not expect the ASU to have a material impact on our financial position, results of operations or disclosures. The FASB has not issued any other ASUs during 2016 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 | 3 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Investment in Real Estate | Investment in Real Estate 2016 First Quarter Acquisitions Acquisition of the Westwood Portfolio On February 29, 2016 , a consolidated joint venture which we manage and own an equity interest in, acquired four class A multi-tenant office properties located in Westwood, California (Westwood Portfolio) for a contract price of $1.34 billion or approximately $777 per square foot. As of the acquisition date, we contributed sixty percent of the equity to the joint venture, but are scheduled to reduce that investment to 30% during the second quarter of 2016. See Note 17 . The table below (in thousands) summarizes our preliminary purchase accounting and funding sources for the acquisition (the purchase accounting is subject to adjustment within twelve months of the acquisition date): Sources and Uses of Funds At February 29, 2016 (1) Adjustments (2) Pro Forma Building square footage (in thousands) 1,725 — 1,725 Uses of funds - Investment in real estate: Land $ 95,127 $ — $ 95,127 Buildings and improvements 1,238,162 — 1,238,162 Tenant improvements and lease intangibles 50,497 — 50,497 Acquired above and below-market leases, net (51,273 ) — (51,273 ) Net assets and liabilities acquired (3) $ 1,332,513 $ — $ 1,332,513 Source of funds: Cash on hand (4) $ 153,745 $ — $ 153,745 Credit facility (5) 290,000 (240,000 ) 50,000 Non-recourse term loan, net (6) 568,768 — 568,768 Noncontrolling interests 320,000 240,000 560,000 Total source of funds $ 1,332,513 $ — $ 1,332,513 ________________________________________________ (1) Reflects the purchase of the Westwood portfolio on February 29, 2016 when we contributed 60% of the equity (including $240 million of bridge equity) to the consolidated joint venture. (2) Adjusted for the repayment of $240 million of bridge equity we provided at closing, which would reduce our ownership interest to 30% . The repayment (with interest at 2% per annum) is scheduled for the second quarter. (3) Difference between the contract price and the purchase price relates to a credit received for prorations. (4) Cash paid included $75.0 million paid through a deposit made before December 31, 2015, which was included in other assets in the Company's consolidated balance sheet as reported in the Form 10-K, $67.5 million paid at closing, and $11.2 million spent on loan costs in connection with securing the $580 million term loan. (5) Reflects borrowings using the Company's credit facility, which bears interest at LIBOR plus 1.40% . See Note 7 . (6) Reflects 100% , not only the Company's pro rata share, of a $580.0 million interest-only non-recourse loan, net of loan fees of $11.2 million incurred to secure the loan. The loan has a seven -year term and is secured by the Westwood Portfolio. Interest on the loan is floating at LIBOR plus 1.40% , which has been effectively fixed at 2.37% per annum for five years through interest rate swaps. The loan costs will be deferred and amortized over the seven -year loan term. Deferred loan costs are presented in the balance sheet as a direct deduction from the carrying amount of our secured notes payable and revolving credit facility. The table below (in thousands) presents the revenues and net income attributable to common stockholders from the Westwood Portfolio which are included in the Company’s consolidated statement of operations from the date of acquisition: Total office revenues $ 8,223 Net loss attributable to common stockholders $ (2,611 ) Pro Forma Operating Results The pro forma operating results presented in the table below (in thousands) combine the historical results of Douglas Emmett Inc., along with the historical results of the Westwood Portfolio, as if the acquisition was completed on January 1, 2015, based on our expected thirty -percent ownership interest, and includes adjustments that give effect to events that are (i) directly attributable to the acquisition, (ii) expected to have a continuing impact on the Company, and (iii) are factually supportable. The pro forma reflects the hypothetical impact of the acquisition on the Company and does not (a) purport to represent what the Company’s results of operations would actually have been had the acquisition occurred on January 1, 2015, or (b) project the results of operations for any future period. The information does not reflect cost savings or operating synergies that may result from the acquisition or the costs to achieve any such potential cost savings or operating synergies. Three Months Ended March 31, 2016 2015 Pro forma revenues $ 181,900 $ 178,132 Pro forma net income attributable to common stockholders (1) $ 16,404 $ 19,153 Pro forma net income attributable to common stockholders per share – basic $ 0.111 $ 0.131 Pro forma net income attributable to common stockholders per share – diluted $ 0.108 $ 0.127 _____________________________________________________ (1) In the first quarter of 2015, we recognized an additional $6.6 million of accretion for an above-market ground lease in other income related to the purchase of the Harbor Court Land (see "2015 First Quarter Acquisitions" below and Note 4). 2015 First Quarter Acquisitions During the three months ended March 31, 2015 , we closed two acquisitions: (i) on March 5, 2015 , we purchased a 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 . 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 purchase price allocations for the acquisitions: Harbor Court Land First Financial Plaza Building square footage (if applicable) (in thousands) 227 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 Properties Held for Sale We are currently marketing a 168,000 square foot Class A office property located in Sherman Oaks that we wholly own through a consolidated subsidiary. As of March 31, 2016, the carrying value of the property was reclassified from investment in real estate to real estate held for sale in our consolidated balance sheets. |
Acquired Lease Intangibles
Acquired Lease Intangibles | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Acquired Lease Intangibles | Acquired Lease Intangibles Summary of our Acquired Lease Intangibles The table below (in thousands) summarizes our above/below-market leases: March 31, 2016 December 31, 2015 Above-market tenant leases $ 5,081 (1) $ 4,661 Accumulated amortization - above-market tenant leases (2,893 ) (1) (2,670 ) Below-market ground leases 3,198 3,198 Accumulated amortization - below-market ground leases (725 ) (705 ) Acquired lease intangible assets, net $ 4,661 $ 4,484 Below-market tenant leases $ 148,563 (1) $ 103,327 Accumulated accretion - below-market tenant leases (75,356 ) (1) (78,280 ) Above-market ground leases 4,017 4,017 Accumulated accretion - above-market ground leases (472 ) (459 ) Acquired lease intangible liabilities, net $ 76,752 $ 28,605 ________________________________________________ (1) Includes leases from the Westwood Portfolio that we purchased in the first quarter of 2016 . See Note 3 . The weighted average remaining life of the acquired above-and below-market leases is approximately 4.4 years . Impact on the Consolidated Statements of Operations Acquired above- and below-market leases are amortized/accreted over the life of the lease. The table below (in thousands) summarizes the net amortization/accretion related to our above/below-market leases: Three Months Ended March 31, 2016 2015 Net accretion of above/below-market tenant leases (1) $ 3,295 $ 3,191 Amortization of an below-market ground lease (2) (4 ) (4 ) Accretion of above-market ground leases (3) 13 13 Accretion of an above-market ground lease (4) — 6,600 Total $ 3,304 $ 9,800 _______________________________________________ (1) Recorded as a net increase to office and multifamily rental revenues. Includes the impact of leases from the Westwood Portfolio for the period after its purchase on February 29, 2016. (2) Ground lease from which we earn ground rent income. Recorded as a decrease to office parking and other income. (3) Ground lease 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. During the first quarter of 2015 , we acquired the fee interest in the land (Harbor Court Land). See Note 3 . |
Investments In Unconsolidated R
Investments In Unconsolidated Real Estate Funds | 3 Months Ended |
Mar. 31, 2016 | |
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 unconsolidated Funds, Fund X and Partnership X, through which we and investors own eight office properties totaling 1.8 million square feet. At March 31, 2016 , 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 March 31, 2016 2015 Cash distributions received from our Funds $ 16,148 $ 2,346 Notes 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 carried interest at one month LIBOR plus 2.5% per annum, and was 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. In November 2015 , we loaned $0.5 million to Partnership X to fund working capital. The loan carried interest at one month LIBOR plus 2.5% per annum, and was due and payable no later than March 31, 2016 . Both of the outstanding loans were repaid in full during the first quarter of 2016. The outstanding balance of the Fund X and Partnership X loans at December 31, 2015 were $0.3 million and $0.5 million , respectively, and were included in our investment in our unconsolidated funds on our balance sheet. The interest income recognized on these notes receivable is included in Other income in our Consolidated Statements of Operations. 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: March 31, 2016 December 31, 2015 Total assets $ 695,136 $ 691,543 Total liabilities 448,569 389,372 Total equity 246,567 302,171 Three Months Ended March 31, 2016 2015 Total revenues $ 17,475 $ 17,480 Operating income 4,242 3,814 Net income 1,404 960 |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2016 | |
Other Assets [Abstract] | |
Other Assets | Other Assets Other assets consisted of the following (in thousands): March 31, 2016 December 31, 2015 Restricted cash $ 194 $ 194 Prepaid expenses 6,657 6,720 Other indefinite-lived intangible 1,988 1,988 Deposits in escrow (1) — 75,000 Furniture, fixtures and equipment, net 1,345 1,448 Other 1,770 2,370 Total other assets $ 11,954 $ 87,720 __________________________________________________________________________________ (1) At December 31, 2015 , deposits in escrow included a $75.0 million deposit in connection with the purchase of the Westwood Portfolio. See Note 3 . |
Secured Notes Payable and Revol
Secured Notes Payable and Revolving Credit Facility | 3 Months Ended |
Mar. 31, 2016 | |
Secured Debt [Abstract] | |
Secured Notes Payable and Revolving Credit Facility | Secured Notes Payable and Revolving Credit Facility, net The following table summarizes (in thousands) our secured notes payable and revolving credit facility: Description Maturity Date Principal Balance as of March 31, 2016 Principal Balance as of December 31, 2015 Variable Interest Rate Fixed Interest Rate (1) Swap Maturity Date Wholly Owned Subsidiaries Term Loan 12/24/2016 $ 20,000 $ 20,000 LIBOR + 1.45% 3.57% 4/1/2016 Term Loan 4/2/2018 256,140 256,140 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 (2) 8/5/2018 354,501 355,000 N/A 4.14% -- Term Loan (2) 2/1/2019 152,038 152,733 N/A 4.00% -- Term Loan (3) 6/5/2019 285,000 285,000 N/A 3.85% -- Fannie Mae Loan 10/1/2019 145,000 145,000 LIBOR + 1.25% (6) 3.37% 4/1/2016 Term Loan (4) 3/1/2020 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 340,000 340,000 LIBOR + 1.40% (6) 2.77% 4/1/2020 Term Loan 7/27/2022 180,000 180,000 LIBOR + 1.45% (6) 3.06% 7/1/2020 Term Loan 11/2/2022 400,000 400,000 LIBOR + 1.35% (6) 2.64% 11/1/2020 Fannie Mae Loan 4/1/2025 102,400 102,400 LIBOR + 1.25% (6) 2.84% 3/1/2020 Fannie Mae Loan 12/1/2025 115,000 115,000 LIBOR + 1.25% (6) 2.76% 12/1/2020 Revolving credit line (5) 8/21/2020 290,000 — LIBOR + 1.40% N/A -- Total Wholly Owned Debt $ 3,907,229 $ 3,618,423 Consolidated Joint Ventures Term Loan 3/1/2017 $ 15,740 $ 15,740 LIBOR + 1.60% 3.72% 4/1/2016 Term Loan 2/28/2023 580,000 — LIBOR + 1.40% (6) 2.37% 3/1/2021 Total Debt (7) $ 4,502,969 $ 3,634,163 Deferred loan costs, net (8) (33,012 ) (22,887 ) Total Debt, net $ 4,469,957 $ 3,611,276 ___________________________________________________ As of March 31, 2016 , the weighted average remaining life, including extension options, of our term debt (excluding our revolving credit facility) was 4.6 years . For the $4.21 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 4.6 years , (ii) the weighted average remaining period during which interest was fixed was 2.7 years , (iii) the weighted average annual interest rate was 3.42% and (iv) including the non-cash amortization of deferred loan costs, the weighted average effective interest rate was 3.57% . 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. Maturity dates include the effect of extension options. The following table summarizes (in thousands) our fixed and floating rate debt: Description Principal Balance as of March 31, 2016 Principal Balance as of December 31, 2015 Aggregate swap fixed rate loans $ 3,072,360 $ 2,492,360 Aggregate fixed rate loans 1,140,609 1,141,803 Aggregate floating rate loans 290,000 — Total Debt $ 4,502,969 $ 3,634,163 (1) Includes the effect of interest rate swaps and excludes the effect of prepaid loan fees. See Note 9 for the details of our interest rate contracts. (2) Requires monthly payments of principal and interest. Principal amortization is based upon a 30 -year amortization schedule. (3) Interest only until February 2017 , with principal amortization thereafter based upon a 30 -year amortization schedule. (4) 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. (5) $400.0 million revolving credit facility. Unused commitment fees range from 0.15% to 0.20% . (6) Loan agreement includes a zero-percent LIBOR floor. The corresponding swaps do not include such a floor. (7) See Note 12 for our fair value disclosures. (8) Net of accumulated amortization of $16.6 million and $15.2 million at March 31, 2016 and December 31, 2015 , respectively. Deferred loan cost amortization was $1.3 million and $1.8 million for the three months ended March 31, 2016 and March 31, 2015 , respectively. As of March 31, 2016 , 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 March 31: 2017 $ 49,890 2018 358,828 2019 1,279,730 2020 419,041 2021 973,080 Thereafter 1,422,400 Total future principal payments $ 4,502,969 |
Interest Payable, Accounts Paya
Interest Payable, Accounts Payable and Deferred Revenue | 3 Months Ended |
Mar. 31, 2016 | |
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): March 31, 2016 December 31, 2015 Interest payable $ 11,476 $ 10,028 Accounts payable and accrued liabilities 41,285 23,716 Deferred revenue 22,826 23,673 Total interest payable, accounts payable and deferred revenue $ 75,587 $ 57,417 |
Derivative Contracts
Derivative Contracts | 3 Months Ended |
Mar. 31, 2016 | |
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 7 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 unconsolidated 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. We present our derivatives, including the derivative of our consolidated joint venture, on our consolidated balance sheet at fair value on a gross basis. Our share of the AOCI related to our unconsolidated Funds' derivatives is included in our investment in unconsolidated real estate funds on our consolidated balance sheet. Summary of our derivatives As of March 31, 2016 , all of our interest rate swaps, including our unconsolidated Funds' interest rate swaps, were designated as cash flow hedges: Number of Interest Rate Swaps Notional (in thousands) (1) Derivatives (2) 18 $3,145,480 Unconsolidated Funds' derivatives (3) 2 $435,000 ___________________________________________________ (1) See Note 12 for our derivative fair value disclosures. (2) Includes a consolidated joint venture's derivatives. (3) The notional amount presented represents 100% , not our pro-rata share, of the amounts related to our unconsolidated Funds. See Note 5 for more information regarding our unconsolidated Funds. 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 March 31, 2016 , there have been no events of default with respect to our interest rate swaps or our unconsolidated Funds' interest rate swaps. The fair value of our interest rate swaps in a liability position were as follows (in thousands): March 31, 2016 December 31, 2015 Fair value of derivatives in a liability position (1) Derivatives $ 36,692 $ 19,047 Unconsolidated Funds' derivatives (2) $ 118 $ — __________________________________________________________________________________ (1) Includes accrued interest and excludes any adjustment for nonperformance risk. (2) The notional amount presented represents 100% , not our pro-rata share, of the amounts related to our unconsolidated Funds. See Note 5 for more information regarding our unconsolidated Funds. Counterparty Credit Risk We are also subject to credit risk from the counterparties on our interest rate swap and interest rate cap contracts. We seek to minimize our credit risk by entering into agreements with a variety of high quality counterparties with investment grade ratings. The fair value of our interest rate swaps in an asset position were as follows (in thousands): March 31, 2016 December 31, 2015 Fair value of derivatives in an asset position (1) Derivatives (2) $ 1,514 $ 4,220 Unconsolidated Funds' derivatives (3) $ 621 $ 737 ___________________________________________________ (1) Includes accrued interest and excludes any adjustment for nonperformance risk. (2) Includes a consolidated joint venture's derivatives. (3) The notional amount presented represents 100% , not our pro-rata share, of the amounts related to our unconsolidated Funds. See Note 5 for more information regarding our unconsolidated Funds. Impact of Hedges on AOCI and Consolidated Statements of Operations The table below presents (in thousands) the effect of our derivative instruments, including our unconsolidated Funds' derivative instruments on our AOCI and statements of operations for the three months ended March 31 : 2016 2015 Derivatives Designated as Cash Flow Hedges: Loss recorded in AOCI (effective portion) - derivatives (1)(5) $ (28,812 ) $ (7,022 ) Loss recorded in AOCI (effective portion) - unconsolidated Funds' derivatives (2)(5) $ (611 ) $ (1,333 ) Loss reclassified from AOCI (effective portion) - derivatives (3)(5) $ (8,710 ) $ (9,133 ) Loss reclassified from AOCI (effective portion) - unconsolidated Funds' derivatives (4)(5) $ (105 ) $ (240 ) 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, including a consolidated joint venture's interest rate swaps, designated as cash flow hedges, which does not impact the statement of operations. (2) Represents our share of the change in fair value of our unconsolidated Funds' interest rate swaps designated as a cash flow hedges, 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) See the reconciliation of our AOCI in Note 10 . (6) We did not record any ineffectiveness related to our derivatives designated as cash flow hedges. (7) We do not have any derivatives that are not designated as cash flow hedges. Future Reclassifications from AOCI The table below presents (in thousands) our estimate of the AOCI related to our derivatives, including our unconsolidated Funds' derivatives, designated as cash flow hedges, that will be reclassified to earnings during the next twelve months: Derivatives (1) $ 20,457 Unconsolidated Funds' derivatives (2) $ 158 ________________________________________ (1) Reclassified as an increase to interest expense (includes the impact of the derivatives of our consolidated joint venture). (2) Reclassified as a decrease to income, including depreciation, from unconsolidated real estate funds. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Equity | Equity Equity Transactions During the three months ended March 31, 2016 , we (i) acquired 0.4 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 24 thousand shares of our common stock for the exercise of 65 thousand stock options. In connection with the acquisition of the Westwood Portfolio, an investor contributed $320.0 million to the joint venture for a forty -percent ownership interest, and we expect an additional investor to acquire a 30% interest in this joint venture during the second quarter of 2016, reducing our ownership interest to thirty percent. See Note 3 and 17 . During the three months ended March 31, 2015 , we (i) acquired 0.9 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 for the exercise of options for net proceeds of $1.8 million at an average price of $13.44 per option. 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. 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, 2016 $ 1,926,211 $ 355,337 $ 2,281,548 Net income 15,366 680 16,046 Cash flow hedge fair value adjustment (18,028 ) (2,580 ) (20,608 ) Contributions — 320,000 320,000 Dividends and distributions (32,424 ) (6,098 ) (38,522 ) Exchange of OP units 5,847 (5,847 ) — Exercise of stock options (445 ) (445 ) Stock-based compensation — 2,596 2,596 Balance as of March 31, 2016 $ 1,896,527 $ 664,088 $ 2,560,615 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 18,699 3,397 22,096 Cash flow hedge fair value adjustment 685 333 1,018 Dividends and distributions (30,630 ) (5,995 ) (36,625 ) Exchange of OP units 11,408 (11,408 ) — Issuance of OP unit for cash — 1,000 1,000 Exercise of stock options 1,823 — 1,823 Stock-based compensation — 2,155 2,155 Balance as of March 31, 2015 $ 1,945,443 $ 359,748 $ 2,305,191 Noncontrolling Interests Our noncontrolling interests consist of (i) interests in our Operating Partnership which are not owned by us, (ii) a joint venture investor who owns a forty -percent interest in a consolidated joint venture that acquired the Westwood Portfolio (see Note 3 ) and (iii) 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 LTIP Units and represented approximately 15% of our Operating Partnership's total interests as of March 31, 2016 when we and our Operating Partnership had 147.4 million shares of common stock and 26.2 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 market value of one share of our common stock at the date of redemption, 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 the service period 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 net income and changes in our ownership interest in our Operating Partnership: Three Months Ended March 31, 2016 2015 Net income attributable to common stockholders $ 15,366 $ 18,699 Transfers (to) from noncontrolling interests: Exchange of OP units with noncontrolling interests 5,847 11,408 Repurchase of OP units from noncontrolling interests — — Net transfers from noncontrolling interests $ 5,847 $ 11,408 Change from net income attributable to common stockholders and transfers from noncontrolling interests $ 21,213 $ 30,107 AOCI Reconciliation (1) 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 three months ended March 31 : 2016 2015 Beginning balance $ (9,285 ) $ (30,089 ) Other comprehensive loss before reclassifications - derivatives (2) (28,812 ) (7,022 ) Other comprehensive loss before reclassifications - unconsolidated Funds' derivatives (611 ) (1,333 ) Reclassifications from AOCI - derivatives (2)(3) 8,710 9,133 Reclassifications from AOCI - unconsolidated Funds' derivatives (4) 105 240 Net current period OCI (20,608 ) 1,018 Less OCI attributable to noncontrolling interests 2,580 (333 ) OCI attributable to common stockholders (18,028 ) 685 Ending balance $ (27,313 ) $ (29,404 ) ___________________________________________________ (1) See Note 9 for the details of our derivatives and Note 12 for our derivative fair value disclosures. (2) Includes the derivative of a consolidated joint venture. (3) Reclassification as an increase to interest expense. (4) Reclassification as an decrease to income, including depreciation, from unconsolidated real estate funds. 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 12 to the consolidated financial statements in our 2015 Annual Report on Form 10-K. Total net stock-based compensation expense for equity grants was $2.4 million and $1.9 million for the three months ended March 31, 2016 and 2015 , respectively. These amounts are net of capitalized stock-based compensation of $217 thousand and $193 thousand for the three months ended March 31, 2016 and 2015 , respectively. The total intrinsic value of options exercised for the three months ended March 31, 2016 and 2015 was $1.1 million and $2.2 million , respectively. |
EPS
EPS | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
EPS | 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 basic and diluted EPS using the two-class method. The table below presents the calculation of basic and diluted EPS: Three Months Ended March 31, 2016 2015 Numerator (in thousands): Net income attributable to common stockholders $ 15,366 $ 18,699 Allocation to participating securities: Unvested LTIP units (84 ) (98 ) Numerator for basic and diluted net income attributable to common stockholders $ 15,282 $ 18,601 Denominator (in thousands): Weighted average shares of common stock outstanding - basic 147,236 145,327 Effect of dilutive securities: Stock options (1) 4,215 4,475 Weighted average shares of common stock and common stock equivalents outstanding - diluted 151,451 149,802 Basic EPS: Net income attributable to common stockholders per share $ 0.104 $ 0.128 Diluted EPS: Net income attributable to common stockholders per share $ 0.101 $ 0.124 ____________________________________________________ (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 March 31, 2016 2015 OP Units 25,549 26,513 Vested LTIP Units 815 702 Unvested LTIP units 532 503 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 , 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. Secured notes payable: See Note 7 for the details of our secured notes payable. We estimate the fair value of our secured notes payable, which includes the secured notes payable of our consolidated joint ventures, 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: March 31, 2016 December 31, 2015 Fair value $ 4,271,849 $ 3,691,075 Carrying value $ 4,212,969 $ 3,634,163 Financial instruments measured at fair value Derivative instruments: See Note 9 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: March 31, 2016 December 31, 2015 Derivative Assets: Fair value - derivatives (1) $ 1,493 $ 4,830 Fair value - unconsolidated Funds' derivatives (2) $ 499 $ 837 Derivative Liabilities: Fair value - derivatives (1) $ 33,075 $ 16,310 Fair value - unconsolidated Funds' derivatives (2) $ 70 $ — ____________________________________________________ (1) Our derivatives, which include the derivatives of a consolidated joint venture, are included in interest rate contracts in our consolidated balance sheet. The fair value excludes accrued interest (which is included in interest payable in the consolidated balance sheet). (2) Represents 100% , not our pro-rata share, of the amounts related to the unconsolidated Funds. Our pro-rata share of the amounts related to the unconsolidated Funds' derivatives is included in our investment in unconsolidated real estate funds in our consolidated balance sheet. See Note 5 for more information regarding our unconsolidated Funds. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Segment information is prepared on the same basis that our management reviews 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 March 31, 2016 2015 Office Segment Total office revenues $ 144,379 $ 131,456 Office expenses (47,883 ) (44,199 ) Office Segment profit 96,496 87,257 Multifamily Segment Total multifamily revenues 24,193 23,353 Multifamily expenses (6,031 ) (5,820 ) Multifamily Segment profit 18,162 17,533 Total profit from all segments $ 114,658 $ 104,790 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 March 31, 2016 2015 Total profit from all segments $ 114,658 $ 104,790 General and administrative expense (8,071 ) (7,361 ) Depreciation and amortization (55,552 ) (49,834 ) Other income 2,089 8,559 Other expenses (1,551 ) (1,572 ) Income, including depreciation, from unconsolidated real estate funds 1,586 1,443 Interest expense (35,660 ) (33,639 ) Acquisition-related expenses (1,453 ) (290 ) Net income 16,046 22,096 Less: Net income attributable to noncontrolling interests (680 ) (3,397 ) Net income attributable to common stockholders $ 15,366 $ 18,699 |
Future Minimum Lease Rental Rec
Future Minimum Lease Rental Receipts | 3 Months Ended |
Mar. 31, 2016 | |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
Future Minimum Lease Receipts | Future Minimum Lease Rental 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, and we own fee interests in two parcels of land subject to ground leases from which we earn ground rent income. The table below presents (in thousands) the future minimum base rentals on our non-cancelable office tenant and ground operating leases at March 31, 2016 : Twelve months ending March 31: 2017 $ 462,305 2018 418,016 2019 344,628 2020 291,447 2021 230,194 Thereafter 630,528 Total future minimum base rentals (1) $ 2,377,118 _____________________________________________________ (1) Does not include (i) residential leases, which typically have a term of one year or less, (ii) tenant reimbursements, (iii) straight line rent, (iv) amortization/accretion of acquired above/below-market lease intangibles and (v) percentage rents. The amounts assume that those tenants with early termination options do not exercise them. |
Future Minimum Lease Rental Pay
Future Minimum Lease Rental Payments | 3 Months Ended |
Mar. 31, 2016 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Future Minimum Lease Payments | Future Minimum Lease Rental Payments We incurred lease payments related to ground leases of $183 thousand ( one ground lease) and $192 thousand ( two ground leases) for the three months ended March 31, 2016 and 2015 , respectively. We acquired the fee interest related to one ground lease in February 2015, see Note 3 . The table below presents (in thousands) the future minimum ground lease payments of our remaining ground lease as of March 31, 2016 : Twelve months ending March 31: 2017 $ 733 2018 733 2019 733 2020 733 2021 733 Thereafter 48,194 Total future minimum lease payments (1) $ 51,859 ___________________________________________________ (1) Lease term ends on December 31, 2086 . Ground rent is fixed at $733 thousand per year until February 28, 2019 , and will then be reset to the greater of the existing ground rent or market. 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 | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Guarantees | Commitments, Contingencies and Guarantees Legal Proceedings From time to time, we are party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of our 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 are subject to credit risk with respect to our tenant receivables and deferred rent receivables related to our tenant leases. Our tenants' ability to honor the terms of their respective leases remains dependent upon the economic, regulatory and social factors. We seek to minimize our credit risk from our tenant leases by (i) targeting smaller, more affluent tenants, from a diverse mix of industries, (ii) performing credit evaluations of prospective tenants and (iii) obtaining security deposits from our tenants. For the three months ended March 31, 2016 and 2015 , no tenant accounted for more than 10% of our total revenues. All of our properties (including the properties owned by our unconsolidated Funds) are located in Los Angeles County, California and Honolulu, Hawaii, and we are dependent on the Southern California and Honolulu economies. Therefore, we are susceptible to adverse local conditions and regulations, as well as natural disasters in those areas. We are also subject to credit risk from the counterparties on our interest rate swap and interest rate cap contracts that we use to manage the risk associated with our floating rate debt. See Note 9 for the details of our interest rate contracts. We seek to minimize our credit risk by entering into agreements with a variety of high quality counterparties with investment grade ratings. 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 FDIC 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-five properties in our consolidated portfolio, which included two properties owned by our consolidated joint venture which acquired the Westwood Portfolio, and four properties owned by our unconsolidated 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 March 31, 2016 , 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. Development Contract We are building an additional 475 apartments (net of existing units removed) at our Moanalua Hillside Apartments in Honolulu, Hawaii. We expect construction will take approximately 18 months and cost approximately $120.0 million . The $120.0 million estimated cost of the new units does not include the cost of the land which we owned before beginning the project. As of March 31, 2016 , we had a commitment of $118.6 million for a contract directly related to this development project. Guarantees We made certain environmental and other limited indemnities and guarantees covering customary non-recourse carve- outs for loans related to both of our unconsolidated Funds. We have also guaranteed the related swaps. The entities have agreed to indemnify us for any amounts that we would be required to pay under these agreements. As of March 31, 2016 , all obligations under these loans and swap agreements have been performed in accordance with the terms of those agreements. The table below summarizes the debt of our Funds as of March 31, 2016 , the amounts represent 100% (not our pro-rata share) of amounts related to our Funds: Fund (1) Principal Balance (1) (in millions) Loan Maturity Date Swap Maturity Date Swap Fixed Interest Rate Fund X (2) $ 325.0 5/1/2018 5/1/2017 2.35% Partnership X (3) 110.0 3/1/2023 3/1/2021 2.30% $ 435.0 ___________________________________________________ (1) See Note 5 for more information regarding our unconsolidated Funds. (2) Floating rate term loan, swapped to fixed, which is secured by six properties and requires monthly payments of interest only, with the outstanding principal due upon maturity. As of March 31, 2016 , the maximum future payments under the swap agreement were approximately $2.1 million . (3) Floating rate term loan, swapped to fixed, which is secured by two properties and requires monthly payments of interest only, with the outstanding principal due upon maturity. As of March 31, 2016 , the maximum future payments under the swap agreement were approximately $5.0 million . |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent events We have agreed to sell 30% of the joint venture that acquired the Westwood Portfolio for $240.0 million (the amount of our capital contribution with respect to the interest being sold) plus an additional amount equal to 2% per annum for the period from February 29, 2016 to the date of the closing of the sale (expected to occur during the second quarter of 2016). The sale will reduce our interest in the joint venture to 30% . See Note 3 for more detail regarding the joint venture involved. |
Summary Of Significant Accoun25
Summary Of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
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 Code. 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 TRS. |
New Accounting Pronouncements | New Accounting Pronouncements Changes to GAAP are established by the FASB in the form ASUs. We consider the applicability and impact of all ASUs. Recently Issued and Adopted Accounting Pronouncements In January 2015, the FASB issued ASU No. 2015-01, "Income Statement—Extraordinary and Unusual Items (Subtopic 225-20)", which eliminates the concept of extraordinary items from GAAP. The Board is issuing this Update as part of its initiative to reduce complexity in accounting standards (the Simplification Initiative). The objective of the Simplification Initiative is to identify, evaluate, and improve areas of GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to the users of financial statements. The amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, which for us is the first quarter of 2016. We adopted the ASU in the first quarter of 2016 and it did not have a material impact on our financial position, results of operations or disclosures. In February 2015, the FASB issued ASU No. 2015-02, "Amendments to the Consolidation Analysis (Consolidation - Topic 810)", which provides guidance regarding the consolidation of certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. The amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, which for us is the first quarter of 2016. We adopted the ASU in the first quarter of 2016 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 ASU requires that an acquirer (i) recognize adjustments to provisional amounts from business combinations that are identified during the measurement period in the reporting period in which the adjustment amounts are determined, (ii) record, in the same period’s financial statements, the effect on earnings, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date and (iii) disclose of 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 is the first quarter of 2016. We adopted the ASU in the first quarter of 2016 and it did not have a material impact on our financial position, results of operations or disclosures. In March 2016, the FASB issued ASU No. 2016-05, "Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships", which amends "Derivatives and Hedging" (Topic 815). The ASU provides guidance on the effect of derivative contract novations on existing hedge accounting relationships. The ASU clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815, does not in and of itself require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those years, which for us would be the first quarter of 2017, and early adoption is permitted. We adopted the ASU in the first quarter of 2016 and it did not have a material impact on our financial position, results of operations or disclosures. Recently Issued Accounting Pronouncements In January 2016, the FASB issued ASU No. 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities" which amends "Financial Instruments - Overall" (Subtopic 825-10). The amendments in this Update address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those years, which for us would be the first quarter of 2018. The amendments in this Update should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption, and early adoption is permitted under certain circumstances. We do not expect the ASU to have a material impact on our financial position, results of operations or disclosures. In February 2016, the FASB issued ASU No. 2016-02, "Leases" (Topic 842). The ASU increases transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information about leasing arrangements. To meet that objective, the FASB has created Topic 842. The accounting applied by a lessor is largely unchanged from that applied under previous GAAP. For example, the vast majority of operating leases will remain classified as operating leases, and lessors will continue to recognize lease income for those leases on a generally straight-line basis over the lease term. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those years, which for us would be the first quarter of 2019, and early adoption is permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. We do not expect the ASU to have a material impact on our financial position, results of operations or disclosures. In March 2016, the FASB issued ASU No. 2016-07, "Simplifying the Transition to the Equity Method of Accounting" which amends "Investments-Equity Method and Joint Ventures" (Topic 323). The ASU simplifies the transition to the equity method of accounting by eliminating the requirement that an entity retroactively adopt the equity method of accounting if an investment qualifies for use of the equity method as a result of an increase in the level of ownership or degree of influence. The ASU requires that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment qualifies for equity method accounting. The ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those years, which for us would be the first quarter of 2017, and early adoption is permitted. The amendments in this Update should be applied prospectively. We do not expect the ASU to have a material impact on our financial position, results of operations or disclosures. In March 2016, the FASB issued ASU No. 2016-08, "Principal versus Agent Considerations (Reporting Revenue Gross versus Net)" which amends "Revenue from Contracts with Customers" (Topic 606). The ASU clarifies the implementation guidance for principal versus agent considerations. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those years, which for us would be the first quarter of 2018, and early adoption is permitted commencing the first quarter of 2017. The amendments in this Update should be applied retrospectively. We are currently evaluating the impact of this ASU. In March 2016, the FASB issued ASU No. 2016-09, "Improvements to Employee Share-Based Payment Accounting" which amends "Compensation-Stock Compensation" (Topic 718). This ASU simplifies the accounting for several aspects of share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. The ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those years, which for us would be the first quarter of 2017, and early adoption is permitted. The ASU amendments are applied on a prospective or retrospective basis depending on the specific amendment. We do not expect the ASU to have a material impact on our financial position, results of operations or disclosures. The FASB has not issued any other ASUs during 2016 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) | 3 Months Ended |
Mar. 31, 2016 | |
Westwood Portfolio [Member] | |
Business Acquisition [Line Items] | |
Business Acquisition, Pro Forma Information [Table Text Block] | Three Months Ended March 31, 2016 2015 Pro forma revenues $ 181,900 $ 178,132 Pro forma net income attributable to common stockholders (1) $ 16,404 $ 19,153 Pro forma net income attributable to common stockholders per share – basic $ 0.111 $ 0.131 Pro forma net income attributable to common stockholders per share – diluted $ 0.108 $ 0.127 _____________________________________________________ (1) In the first quarter of 2015, we recognized an additional $6.6 million of accretion for an above-market ground lease in other income related to the purchase of the Harbor Court Land (see "2015 First Quarter Acquisitions" below and Note 4). |
Revenue and Net Income Attributable to Common Stockholders from the Westwood Portfolio | The table below (in thousands) presents the revenues and net income attributable to common stockholders from the Westwood Portfolio which are included in the Company’s consolidated statement of operations from the date of acquisition: Total office revenues $ 8,223 Net loss attributable to common stockholders $ (2,611 ) |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The table below (in thousands) summarizes our preliminary purchase accounting and funding sources for the acquisition (the purchase accounting is subject to adjustment within twelve months of the acquisition date): Sources and Uses of Funds At February 29, 2016 (1) Adjustments (2) Pro Forma Building square footage (in thousands) 1,725 — 1,725 Uses of funds - Investment in real estate: Land $ 95,127 $ — $ 95,127 Buildings and improvements 1,238,162 — 1,238,162 Tenant improvements and lease intangibles 50,497 — 50,497 Acquired above and below-market leases, net (51,273 ) — (51,273 ) Net assets and liabilities acquired (3) $ 1,332,513 $ — $ 1,332,513 Source of funds: Cash on hand (4) $ 153,745 $ — $ 153,745 Credit facility (5) 290,000 (240,000 ) 50,000 Non-recourse term loan, net (6) 568,768 — 568,768 Noncontrolling interests 320,000 240,000 560,000 Total source of funds $ 1,332,513 $ — $ 1,332,513 ________________________________________________ (1) Reflects the purchase of the Westwood portfolio on February 29, 2016 when we contributed 60% of the equity (including $240 million of bridge equity) to the consolidated joint venture. (2) Adjusted for the repayment of $240 million of bridge equity we provided at closing, which would reduce our ownership interest to 30% . The repayment (with interest at 2% per annum) is scheduled for the second quarter. (3) Difference between the contract price and the purchase price relates to a credit received for prorations. (4) Cash paid included $75.0 million paid through a deposit made before December 31, 2015, which was included in other assets in the Company's consolidated balance sheet as reported in the Form 10-K, $67.5 million paid at closing, and $11.2 million spent on loan costs in connection with securing the $580 million term loan. (5) Reflects borrowings using the Company's credit facility, which bears interest at LIBOR plus 1.40% . See Note 7 . (6) Reflects 100% , not only the Company's pro rata share, of a $580.0 million interest-only non-recourse loan, net of loan fees of $11.2 million incurred to secure the loan. The loan has a seven -year term and is secured by the Westwood Portfolio. Interest on the loan is floating at LIBOR plus 1.40% , which has been effectively fixed at 2.37% per annum for five years through interest rate swaps. The loan costs will be deferred and amortized over the seven -year loan term. Deferred loan costs are presented in the balance sheet as a direct deduction from the carrying amount of our secured notes payable and revolving credit facility. |
Harbor Court Land and First Financial Plaza [Member] | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The table below (in thousands) summarizes our purchase price allocations for the acquisitions: Harbor Court Land First Financial Plaza Building square footage (if applicable) (in thousands) 227 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) | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary Of Acquired Lease Intangibles | The table below (in thousands) summarizes our above/below-market leases: March 31, 2016 December 31, 2015 Above-market tenant leases $ 5,081 (1) $ 4,661 Accumulated amortization - above-market tenant leases (2,893 ) (1) (2,670 ) Below-market ground leases 3,198 3,198 Accumulated amortization - below-market ground leases (725 ) (705 ) Acquired lease intangible assets, net $ 4,661 $ 4,484 Below-market tenant leases $ 148,563 (1) $ 103,327 Accumulated accretion - below-market tenant leases (75,356 ) (1) (78,280 ) Above-market ground leases 4,017 4,017 Accumulated accretion - above-market ground leases (472 ) (459 ) Acquired lease intangible liabilities, net $ 76,752 $ 28,605 ________________________________________________ (1) Includes leases from the Westwood Portfolio that we purchased in the first quarter of 2016 . See Note 3 . The weighted average remaining life of the acquired above-and below-market leases is approximately 4.4 years . |
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 March 31, 2016 2015 Net accretion of above/below-market tenant leases (1) $ 3,295 $ 3,191 Amortization of an below-market ground lease (2) (4 ) (4 ) Accretion of above-market ground leases (3) 13 13 Accretion of an above-market ground lease (4) — 6,600 Total $ 3,304 $ 9,800 _______________________________________________ (1) Recorded as a net increase to office and multifamily rental revenues. Includes the impact of leases from the Westwood Portfolio for the period after its purchase on February 29, 2016. (2) Ground lease from which we earn ground rent income. Recorded as a decrease to office parking and other income. (3) Ground lease 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. During the first quarter of 2015 , we acquired the fee interest in the land (Harbor Court Land). See Note 3 . |
Investments In Unconsolidated28
Investments In Unconsolidated Real Estate Funds (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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: March 31, 2016 December 31, 2015 Total assets $ 695,136 $ 691,543 Total liabilities 448,569 389,372 Total equity 246,567 302,171 Three Months Ended March 31, 2016 2015 Total revenues $ 17,475 $ 17,480 Operating income 4,242 3,814 Net income 1,404 960 The table below presents (in thousands) cash distributions received from our Funds: Three Months Ended March 31, 2016 2015 Cash distributions received from our Funds $ 16,148 $ 2,346 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Other Assets [Abstract] | |
Schedule Of Other Assets | Other assets consisted of the following (in thousands): March 31, 2016 December 31, 2015 Restricted cash $ 194 $ 194 Prepaid expenses 6,657 6,720 Other indefinite-lived intangible 1,988 1,988 Deposits in escrow (1) — 75,000 Furniture, fixtures and equipment, net 1,345 1,448 Other 1,770 2,370 Total other assets $ 11,954 $ 87,720 __________________________________________________________________________________ (1) At December 31, 2015 , deposits in escrow included a $75.0 million deposit in connection with the purchase of the Westwood Portfolio. See Note 3 . |
Secured Notes Payable and Rev30
Secured Notes Payable and Revolving Credit Facility (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 Maturity Date Principal Balance as of March 31, 2016 Principal Balance as of December 31, 2015 Variable Interest Rate Fixed Interest Rate (1) Swap Maturity Date Wholly Owned Subsidiaries Term Loan 12/24/2016 $ 20,000 $ 20,000 LIBOR + 1.45% 3.57% 4/1/2016 Term Loan 4/2/2018 256,140 256,140 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 (2) 8/5/2018 354,501 355,000 N/A 4.14% -- Term Loan (2) 2/1/2019 152,038 152,733 N/A 4.00% -- Term Loan (3) 6/5/2019 285,000 285,000 N/A 3.85% -- Fannie Mae Loan 10/1/2019 145,000 145,000 LIBOR + 1.25% (6) 3.37% 4/1/2016 Term Loan (4) 3/1/2020 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 340,000 340,000 LIBOR + 1.40% (6) 2.77% 4/1/2020 Term Loan 7/27/2022 180,000 180,000 LIBOR + 1.45% (6) 3.06% 7/1/2020 Term Loan 11/2/2022 400,000 400,000 LIBOR + 1.35% (6) 2.64% 11/1/2020 Fannie Mae Loan 4/1/2025 102,400 102,400 LIBOR + 1.25% (6) 2.84% 3/1/2020 Fannie Mae Loan 12/1/2025 115,000 115,000 LIBOR + 1.25% (6) 2.76% 12/1/2020 Revolving credit line (5) 8/21/2020 290,000 — LIBOR + 1.40% N/A -- Total Wholly Owned Debt $ 3,907,229 $ 3,618,423 Consolidated Joint Ventures Term Loan 3/1/2017 $ 15,740 $ 15,740 LIBOR + 1.60% 3.72% 4/1/2016 Term Loan 2/28/2023 580,000 — LIBOR + 1.40% (6) 2.37% 3/1/2021 Total Debt (7) $ 4,502,969 $ 3,634,163 Deferred loan costs, net (8) (33,012 ) (22,887 ) Total Debt, net $ 4,469,957 $ 3,611,276 ___________________________________________________ As of March 31, 2016 , the weighted average remaining life, including extension options, of our term debt (excluding our revolving credit facility) was 4.6 years . For the $4.21 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 4.6 years , (ii) the weighted average remaining period during which interest was fixed was 2.7 years , (iii) the weighted average annual interest rate was 3.42% and (iv) including the non-cash amortization of deferred loan costs, the weighted average effective interest rate was 3.57% . 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. Maturity dates include the effect of extension options. The following table summarizes (in thousands) our fixed and floating rate debt: Description Principal Balance as of March 31, 2016 Principal Balance as of December 31, 2015 Aggregate swap fixed rate loans $ 3,072,360 $ 2,492,360 Aggregate fixed rate loans 1,140,609 1,141,803 Aggregate floating rate loans 290,000 — Total Debt $ 4,502,969 $ 3,634,163 (1) Includes the effect of interest rate swaps and excludes the effect of prepaid loan fees. See Note 9 for the details of our interest rate contracts. (2) Requires monthly payments of principal and interest. Principal amortization is based upon a 30 -year amortization schedule. (3) Interest only until February 2017 , with principal amortization thereafter based upon a 30 -year amortization schedule. (4) 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. (5) $400.0 million revolving credit facility. Unused commitment fees range from 0.15% to 0.20% . (6) Loan agreement includes a zero-percent LIBOR floor. The corresponding swaps do not include such a floor. (7) See Note 12 for our fair value disclosures. (8) Net of accumulated amortization of $16.6 million and $15.2 million at March 31, 2016 and December 31, 2015 , respectively. Deferred loan cost amortization was $1.3 million and $1.8 million for the three months ended March 31, 2016 and March 31, 2015 , respectively. |
Schedule Of Minimum Future Principal Payments Due On Secured Notes Payable and Revolving Credit Facility | As of March 31, 2016 , 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 March 31: 2017 $ 49,890 2018 358,828 2019 1,279,730 2020 419,041 2021 973,080 Thereafter 1,422,400 Total future principal payments $ 4,502,969 |
Interest Payable, Accounts Pa31
Interest Payable, Accounts Payable and Deferred Revenue (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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): March 31, 2016 December 31, 2015 Interest payable $ 11,476 $ 10,028 Accounts payable and accrued liabilities 41,285 23,716 Deferred revenue 22,826 23,673 Total interest payable, accounts payable and deferred revenue $ 75,587 $ 57,417 |
Derivative Contracts (Tables)
Derivative Contracts (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Other Derivatives | As of March 31, 2016 , all of our interest rate swaps, including our unconsolidated Funds' interest rate swaps, were designated as cash flow hedges: Number of Interest Rate Swaps Notional (in thousands) (1) Derivatives (2) 18 $3,145,480 Unconsolidated Funds' derivatives (3) 2 $435,000 ___________________________________________________ (1) See Note 12 for our derivative fair value disclosures. (2) Includes a consolidated joint venture's derivatives. (3) The notional amount presented represents 100% , not our pro-rata share, of the amounts related to our unconsolidated Funds. See Note 5 for more information regarding our unconsolidated 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): March 31, 2016 December 31, 2015 Fair value of derivatives in a liability position (1) Derivatives $ 36,692 $ 19,047 Unconsolidated Funds' derivatives (2) $ 118 $ — __________________________________________________________________________________ (1) Includes accrued interest and excludes any adjustment for nonperformance risk. (2) The notional amount presented represents 100% , not our pro-rata share, of the amounts related to our unconsolidated Funds. See Note 5 for more information regarding our unconsolidated Funds. |
Schedule of Derivative Assets at Fair Value | The fair value of our interest rate swaps in an asset position were as follows (in thousands): March 31, 2016 December 31, 2015 Fair value of derivatives in an asset position (1) Derivatives (2) $ 1,514 $ 4,220 Unconsolidated Funds' derivatives (3) $ 621 $ 737 ___________________________________________________ (1) Includes accrued interest and excludes any adjustment for nonperformance risk. (2) Includes a consolidated joint venture's derivatives. (3) The notional amount presented represents 100% , not our pro-rata share, of the amounts related to our unconsolidated Funds. See Note 5 for more information regarding our unconsolidated Funds. |
Effect Of Derivative Instruments On Consolidated Statements Of Operations | The table below presents (in thousands) the effect of our derivative instruments, including our unconsolidated Funds' derivative instruments on our AOCI and statements of operations for the three months ended March 31 : 2016 2015 Derivatives Designated as Cash Flow Hedges: Loss recorded in AOCI (effective portion) - derivatives (1)(5) $ (28,812 ) $ (7,022 ) Loss recorded in AOCI (effective portion) - unconsolidated Funds' derivatives (2)(5) $ (611 ) $ (1,333 ) Loss reclassified from AOCI (effective portion) - derivatives (3)(5) $ (8,710 ) $ (9,133 ) Loss reclassified from AOCI (effective portion) - unconsolidated Funds' derivatives (4)(5) $ (105 ) $ (240 ) 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, including a consolidated joint venture's interest rate swaps, designated as cash flow hedges, which does not impact the statement of operations. (2) Represents our share of the change in fair value of our unconsolidated Funds' interest rate swaps designated as a cash flow hedges, 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) See the reconciliation of our AOCI in Note 10 . (6) We did not record any ineffectiveness related to our derivatives designated as cash flow hedges. (7) We do not have any derivatives that are not designated as cash flow hedges. |
Schedule of Future Reclassifications from AOCI | The table below presents (in thousands) our estimate of the AOCI related to our derivatives, including our unconsolidated Funds' derivatives, designated as cash flow hedges, that will be reclassified to earnings during the next twelve months: Derivatives (1) $ 20,457 Unconsolidated Funds' derivatives (2) $ 158 ________________________________________ (1) Reclassified as an increase to interest expense (includes the impact of the derivatives of our consolidated joint venture). (2) Reclassified as a decrease to income, including depreciation, from unconsolidated real estate funds. |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 $ 1,926,211 $ 355,337 $ 2,281,548 Net income 15,366 680 16,046 Cash flow hedge fair value adjustment (18,028 ) (2,580 ) (20,608 ) Contributions — 320,000 320,000 Dividends and distributions (32,424 ) (6,098 ) (38,522 ) Exchange of OP units 5,847 (5,847 ) — Exercise of stock options (445 ) (445 ) Stock-based compensation — 2,596 2,596 Balance as of March 31, 2016 $ 1,896,527 $ 664,088 $ 2,560,615 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 18,699 3,397 22,096 Cash flow hedge fair value adjustment 685 333 1,018 Dividends and distributions (30,630 ) (5,995 ) (36,625 ) Exchange of OP units 11,408 (11,408 ) — Issuance of OP unit for cash — 1,000 1,000 Exercise of stock options 1,823 — 1,823 Stock-based compensation — 2,155 2,155 Balance as of March 31, 2015 $ 1,945,443 $ 359,748 $ 2,305,191 |
Net Income Attributable To Common Stockholders And Transfers (To) From Noncontrolling Interests | The table below presents (in thousands) the effect on our equity from net income and changes in our ownership interest in our Operating Partnership: Three Months Ended March 31, 2016 2015 Net income attributable to common stockholders $ 15,366 $ 18,699 Transfers (to) from noncontrolling interests: Exchange of OP units with noncontrolling interests 5,847 11,408 Repurchase of OP units from noncontrolling interests — — Net transfers from noncontrolling interests $ 5,847 $ 11,408 Change from net income attributable to common stockholders and transfers from noncontrolling interests $ 21,213 $ 30,107 |
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 three months ended March 31 : 2016 2015 Beginning balance $ (9,285 ) $ (30,089 ) Other comprehensive loss before reclassifications - derivatives (2) (28,812 ) (7,022 ) Other comprehensive loss before reclassifications - unconsolidated Funds' derivatives (611 ) (1,333 ) Reclassifications from AOCI - derivatives (2)(3) 8,710 9,133 Reclassifications from AOCI - unconsolidated Funds' derivatives (4) 105 240 Net current period OCI (20,608 ) 1,018 Less OCI attributable to noncontrolling interests 2,580 (333 ) OCI attributable to common stockholders (18,028 ) 685 Ending balance $ (27,313 ) $ (29,404 ) ___________________________________________________ (1) See Note 9 for the details of our derivatives and Note 12 for our derivative fair value disclosures. (2) Includes the derivative of a consolidated joint venture. (3) Reclassification as an increase to interest expense. (4) Reclassification as an decrease to income, including depreciation, from unconsolidated real estate funds. |
EPS (Tables)
EPS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 2015 Numerator (in thousands): Net income attributable to common stockholders $ 15,366 $ 18,699 Allocation to participating securities: Unvested LTIP units (84 ) (98 ) Numerator for basic and diluted net income attributable to common stockholders $ 15,282 $ 18,601 Denominator (in thousands): Weighted average shares of common stock outstanding - basic 147,236 145,327 Effect of dilutive securities: Stock options (1) 4,215 4,475 Weighted average shares of common stock and common stock equivalents outstanding - diluted 151,451 149,802 Basic EPS: Net income attributable to common stockholders per share $ 0.104 $ 0.128 Diluted EPS: Net income attributable to common stockholders per share $ 0.101 $ 0.124 ____________________________________________________ (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 March 31, 2016 2015 OP Units 25,549 26,513 Vested LTIP Units 815 702 Unvested LTIP units 532 503 |
Fair Value of Financial Instr35
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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: March 31, 2016 December 31, 2015 Fair value $ 4,271,849 $ 3,691,075 Carrying value $ 4,212,969 $ 3,634,163 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The table below presents (in thousands) the estimated fair value of our derivatives: March 31, 2016 December 31, 2015 Derivative Assets: Fair value - derivatives (1) $ 1,493 $ 4,830 Fair value - unconsolidated Funds' derivatives (2) $ 499 $ 837 Derivative Liabilities: Fair value - derivatives (1) $ 33,075 $ 16,310 Fair value - unconsolidated Funds' derivatives (2) $ 70 $ — ____________________________________________________ (1) Our derivatives, which include the derivatives of a consolidated joint venture, are included in interest rate contracts in our consolidated balance sheet. The fair value excludes accrued interest (which is included in interest payable in the consolidated balance sheet). (2) Represents 100% , not our pro-rata share, of the amounts related to the unconsolidated Funds. Our pro-rata share of the amounts related to the unconsolidated Funds' derivatives is included in our investment in unconsolidated real estate funds in our consolidated balance sheet. See Note 5 for more information regarding our unconsolidated Funds. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Operating Activity Within Reportable Segments | The table below presents (in thousands) the operating activity of our reportable segments: Three Months Ended March 31, 2016 2015 Office Segment Total office revenues $ 144,379 $ 131,456 Office expenses (47,883 ) (44,199 ) Office Segment profit 96,496 87,257 Multifamily Segment Total multifamily revenues 24,193 23,353 Multifamily expenses (6,031 ) (5,820 ) Multifamily Segment profit 18,162 17,533 Total profit from all segments $ 114,658 $ 104,790 |
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 March 31, 2016 2015 Total profit from all segments $ 114,658 $ 104,790 General and administrative expense (8,071 ) (7,361 ) Depreciation and amortization (55,552 ) (49,834 ) Other income 2,089 8,559 Other expenses (1,551 ) (1,572 ) Income, including depreciation, from unconsolidated real estate funds 1,586 1,443 Interest expense (35,660 ) (33,639 ) Acquisition-related expenses (1,453 ) (290 ) Net income 16,046 22,096 Less: Net income attributable to noncontrolling interests (680 ) (3,397 ) Net income attributable to common stockholders $ 15,366 $ 18,699 |
Future Minimum Lease Rental R37
Future Minimum Lease Rental Receipts (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 tenant and ground operating leases at March 31, 2016 : Twelve months ending March 31: 2017 $ 462,305 2018 418,016 2019 344,628 2020 291,447 2021 230,194 Thereafter 630,528 Total future minimum base rentals (1) $ 2,377,118 _____________________________________________________ (1) Does not include (i) residential leases, which typically have a term of one year or less, (ii) tenant reimbursements, (iii) straight line rent, (iv) amortization/accretion of acquired above/below-market lease intangibles and (v) percentage rents. The amounts assume that those tenants with early termination options do not exercise them. |
Future Minimum Lease Rental P38
Future Minimum Lease Rental Payments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 : Twelve months ending March 31: 2017 $ 733 2018 733 2019 733 2020 733 2021 733 Thereafter 48,194 Total future minimum lease payments (1) $ 51,859 ___________________________________________________ (1) Lease term ends on December 31, 2086 . Ground rent is fixed at $733 thousand per year until February 28, 2019 , and will then be reset to the greater of the existing ground rent or market. The table above assume that the rental payments will continue to be $733 thousand per year after February 28, 2019 . |
Commitments, Contingencies an39
Commitments, Contingencies and Guarantees Commitments, Contingencies and Guarantees (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Debt Related to Unconsolidated Funds | The table below summarizes the debt of our Funds as of March 31, 2016 , the amounts represent 100% (not our pro-rata share) of amounts related to our Funds: Fund (1) Principal Balance (1) (in millions) Loan Maturity Date Swap Maturity Date Swap Fixed Interest Rate Fund X (2) $ 325.0 5/1/2018 5/1/2017 2.35% Partnership X (3) 110.0 3/1/2023 3/1/2021 2.30% $ 435.0 ___________________________________________________ (1) See Note 5 for more information regarding our unconsolidated Funds. (2) Floating rate term loan, swapped to fixed, which is secured by six properties and requires monthly payments of interest only, with the outstanding principal due upon maturity. As of March 31, 2016 , the maximum future payments under the swap agreement were approximately $2.1 million . (3) Floating rate term loan, swapped to fixed, which is secured by two properties and requires monthly payments of interest only, with the outstanding principal due upon maturity. As of March 31, 2016 , the maximum future payments under the swap agreement were approximately $5.0 million . |
Overview (Details)
Overview (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($)land_parceloffice_propertyentitymultifamily_unit | |
Overview [Line Items] | |
Number of office properties owned | office_property | 66 |
Number of variable interest entities included in consolidated financial statements | entity | 1 |
Variable interest entity, assets | $ 1,430 |
Variable interest entity, assets related to real estate held for investment | 1,380 |
Variable interest entity, liabilities | 631.7 |
Variable interest entity, equity | 798.3 |
Variable interest entity, equity, portion attributable to noncontrolling interest | $ 318.6 |
Wholly Owned Consolidated Properties [Member] | |
Overview [Line Items] | |
Number of office properties owned | office_property | 58 |
Number of multifamily properties owned | multifamily_unit | 10 |
Number of land parcels | land_parcel | 2 |
Consolidated Joint Venture Properties [Member] | |
Overview [Line Items] | |
Number of office properties owned | office_property | 5 |
Partially Owned Properties [Member] | |
Overview [Line Items] | |
Number of office properties owned | office_property | 8 |
Investment in Real Estate - Nar
Investment in Real Estate - Narrative (Details) $ in Thousands | Feb. 29, 2016USD ($)ft²property$ / ft² | Mar. 05, 2015USD ($)$ / ft² | Feb. 12, 2015USD ($) | Jun. 30, 2016USD ($)ft² | Mar. 31, 2016USD ($)ft²office_property | Mar. 31, 2015USD ($)property |
Real Estate Acquisition [Line Items] | ||||||
Number of office properties acquired | office_property | 66 | |||||
Number of acquisitions | property | 2 | |||||
Net accretion of acquired lease intangibles | $ 3,304 | $ 9,800 | ||||
First Financial Plaza [Member] | ||||||
Real Estate Acquisition [Line Items] | ||||||
Acquisition price (in dollars per square foot) | $ / ft² | 407 | |||||
Price of real estate acquired | $ 92,400 | |||||
Above Market Ground Leases [Member] | Other Income [Member] | ||||||
Real Estate Acquisition [Line Items] | ||||||
Net accretion of acquired lease intangibles | $ 0 | $ 6,600 | ||||
Harbor Court Land [Member] | ||||||
Real Estate Acquisition [Line Items] | ||||||
Price of real estate acquired | $ 27,500 | |||||
Joint Venture [Member] | Westwood Portfolio [Member] | ||||||
Real Estate Acquisition [Line Items] | ||||||
Contract price | $ 1,340,000 | |||||
Acquisition price (in dollars per square foot) | $ / ft² | 777 | |||||
Percentage of equity contributed in joint venture | 60.00% | |||||
Price of real estate acquired | $ 153,745 | |||||
Area of real estate property acquired | ft² | 1,725,000 | |||||
Joint Venture [Member] | Office Building [Member] | Westwood Portfolio [Member] | ||||||
Real Estate Acquisition [Line Items] | ||||||
Number of office properties acquired | property | 4 | |||||
Scenario, Forecast [Member] | Joint Venture [Member] | Westwood Portfolio [Member] | ||||||
Real Estate Acquisition [Line Items] | ||||||
Percentage of equity contributed in joint venture | 30.00% | |||||
Price of real estate acquired | $ 153,745 | |||||
Area of real estate property acquired | ft² | 1,725,000 | |||||
Sherman Oaks Galleria [Member] | Office Building [Member] | ||||||
Real Estate Acquisition [Line Items] | ||||||
Area of real estate property acquired | ft² | 168,000 |
Investment in Real Estate - Sum
Investment in Real Estate - Summary of Preliminary Purchase Accounting and Funding Sources for the Acquisition (Details) $ in Thousands | Feb. 29, 2016USD ($)ft² | Jun. 30, 2016USD ($)ft² | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Source of funds: | ||||
Long-term debt | $ 4,502,969 | $ 3,634,163 | ||
Long-term debt | 4,469,957 | 3,611,276 | ||
Deposits in escrow | $ 0 | 75,000 | ||
Percentage of loan | 100.00% | |||
Westwood Portfolio [Member] | Other Assets [Member] | ||||
Source of funds: | ||||
Deposits in escrow | 75,000 | |||
Joint Venture [Member] | Westwood Portfolio [Member] | ||||
Business Acquisition [Line Items] | ||||
Building square footage (in thousands) | ft² | 1,725,000 | |||
Uses of funds - Investment in real estate: | ||||
Land | $ 95,127 | |||
Buildings and improvements | 1,238,162 | |||
Tenant improvements and lease intangibles | 50,497 | |||
Acquired above and below-market leases, net | (51,273) | |||
Net assets and liabilities acquired | 1,332,513 | |||
Source of funds: | ||||
Cash on hand | 153,745 | |||
Noncontrolling interests | 320,000 | |||
Total source of funds | $ 1,332,513 | |||
Percentage of equity contributed in joint venture | 60.00% | |||
Bridge equity | $ 240,000 | |||
Cash paid at closing | 67,500 | |||
Joint Venture [Member] | Westwood Portfolio [Member] | Line of Credit [Member] | ||||
Source of funds: | ||||
Long-term debt | 290,000 | |||
Interest rate per annum | 2.00% | |||
Joint Venture [Member] | Westwood Portfolio [Member] | Secured Debt [Member] | ||||
Source of funds: | ||||
Long-term debt | 568,768 | |||
Joint Venture [Member] | Westwood Portfolio [Member] | Scenario, Adjustment [Member] | ||||
Source of funds: | ||||
Noncontrolling interests | 240,000 | |||
Joint Venture [Member] | Westwood Portfolio [Member] | Scenario, Adjustment [Member] | Line of Credit [Member] | ||||
Source of funds: | ||||
Long-term debt | $ (240,000) | |||
Joint Venture [Member] | Westwood Portfolio [Member] | Scenario, Forecast [Member] | ||||
Business Acquisition [Line Items] | ||||
Building square footage (in thousands) | ft² | 1,725,000 | |||
Uses of funds - Investment in real estate: | ||||
Land | $ 95,127 | |||
Buildings and improvements | 1,238,162 | |||
Tenant improvements and lease intangibles | 50,497 | |||
Acquired above and below-market leases, net | (51,273) | |||
Net assets and liabilities acquired | 1,332,513 | |||
Source of funds: | ||||
Cash on hand | 153,745 | |||
Noncontrolling interests | 560,000 | |||
Total source of funds | $ 1,332,513 | |||
Percentage of equity contributed in joint venture | 30.00% | |||
Joint Venture [Member] | Westwood Portfolio [Member] | Scenario, Forecast [Member] | Line of Credit [Member] | ||||
Source of funds: | ||||
Long-term debt | $ 50,000 | |||
Joint Venture [Member] | Westwood Portfolio [Member] | Scenario, Forecast [Member] | Secured Debt [Member] | ||||
Source of funds: | ||||
Long-term debt | $ 568,768 | |||
Term Loan with Maturity Date of February 28, 2023 [Member] | Joint Venture [Member] | Secured Debt [Member] | ||||
Source of funds: | ||||
Long-term debt | $ 580,000 | $ 0 | ||
Loan costs | $ 11,200 | |||
Debt instrument, term | 7 years | |||
Fixed Interest Rate | 2.37% | |||
Fixed interest rate, term | 5 years | |||
LIBOR [Member] | Term Loan with Maturity Date of February 28, 2023 [Member] | Joint Venture [Member] | Secured Debt [Member] | ||||
Source of funds: | ||||
Basis spread | 1.40% | |||
LIBOR [Member] | Revolving Credit Facility With Maturity Date 8/21/20 [Member] | Line of Credit [Member] | ||||
Source of funds: | ||||
Basis spread | 1.40% |
Investment in Real Estate - Rev
Investment in Real Estate - Revenue and Net Income Attributable to Common Stockholders from Westwood Portfolio (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | |
Business Acquisition [Line Items] | |||
Total office revenues | $ 144,379 | $ 131,456 | |
Net loss attributable to common stockholders | $ 15,366 | $ 18,699 | |
Westwood Portfolio [Member] | |||
Business Acquisition [Line Items] | |||
Total office revenues | $ 8,223 | ||
Net loss attributable to common stockholders | $ (2,611) |
Investment in Real Estate - Pro
Investment in Real Estate - Pro Forma Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Business Acquisition [Line Items] | ||
Net accretion of acquired lease intangibles | $ 3,304 | $ 9,800 |
Westwood Portfolio [Member] | ||
Business Acquisition [Line Items] | ||
Pro forma revenues | 181,900 | 178,132 |
Pro forma net income attributable to common stockholders | $ 16,404 | $ 19,153 |
Pro forma net income attributable to common stockholders per share – basic (in dollars per share) | $ 0.00111 | $ 0.00131 |
Pro forma net income attributable to common stockholders per share – diluted (in dollars per share) | $ 0.00108 | $ 0.00127 |
Other Income [Member] | Above Market Ground Leases [Member] | ||
Business Acquisition [Line Items] | ||
Net accretion of acquired lease intangibles | $ 0 | $ 6,600 |
Investment in Real Estate - S45
Investment in Real Estate - Summary of Purchase Price Allocations for the Acquisitions (Details) ft² in Thousands, $ in Thousands | Mar. 05, 2015USD ($)ft² | Feb. 12, 2015USD ($) |
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 | |
First Financial Plaza [Member] | ||
Business Acquisition [Line Items] | ||
Area of real estate property acquired | ft² | 227 | |
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 |
Acquired Lease Intangibles - Su
Acquired Lease Intangibles - Summary Of Acquired Lease Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Acquired lease intangible assets, net | $ 4,661 | $ 4,484 | |
Acquired lease intangible liabilities, net | $ 76,752 | 28,605 | |
Weighted average useful life of acquired above- and below-market leases | 4 years 4 months 24 days | ||
Amortization/accretion of above/below-market leases | $ 3,304 | $ 9,800 | |
Tenant Lease [Member] | Operating Lease Revenue [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization/accretion of above/below-market leases | 3,295 | 3,191 | |
Above Market Tenant Leases [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Off-market lease, assets | 5,081 | 4,661 | |
Accumulated amortization | (2,893) | (2,670) | |
Below Market Tenant Leases [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Off-market lease, liabilities | 148,563 | 103,327 | |
Accumulated accretion | (75,356) | (78,280) | |
Below Market Ground Leases [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Off-market lease, assets | 3,198 | 3,198 | |
Accumulated amortization | (725) | (705) | |
Above Market Ground Leases [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Off-market lease, liabilities | 4,017 | 4,017 | |
Accumulated accretion | (472) | $ (459) | |
Above Market Ground Leases [Member] | Office Parking and Other Income [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization/accretion of above/below-market leases | (4) | (4) | |
Above Market Ground Leases [Member] | Office Expense [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization/accretion of above/below-market leases | 13 | 13 | |
Above Market Ground Leases [Member] | Other Income [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization/accretion of above/below-market leases | $ 0 | $ 6,600 |
Investments In Unconsolidated47
Investments In Unconsolidated Real Estate Funds - Narrative (Details) ft² in Millions, $ in Millions | 3 Months Ended | |||
Mar. 31, 2016ft²office_propertyNumber_of_funds_managed | Dec. 31, 2015USD ($) | Nov. 30, 2015USD ($) | Apr. 30, 2013USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||
Number of office properties owned | office_property | 66 | |||
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 | |||
Building square footage (in thousands) | ft² | 1.8 | |||
Fund X [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Due from related parties | $ | $ 0.3 | $ 2.9 | ||
Related Party Transaction, Date | Apr. 1, 2017 | |||
Partnership X [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Due from related parties | $ | $ 0.5 | $ 0.5 | ||
Fund X [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity interest of the Fund, Percent | 68.61% | |||
Partnership X [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity interest of the Fund, Percent | 24.25% | |||
Partially Owned Properties [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of office properties owned | office_property | 8 | |||
LIBOR [Member] | Fund X [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Variable rate | LIBOR plus 2.5% | |||
Basis spread | 2.50% | |||
LIBOR [Member] | Partnership X [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Variable rate | LIBOR plus 2.5% | |||
Basis spread | 2.50% |
Investments In Unconsolidated48
Investments In Unconsolidated Real Estate Funds - Summary of Cash Distributions Received from Funds (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Real Estate Investments, Net [Abstract] | ||
Cash distributions received from our Funds | $ 16,148 | $ 2,346 |
Investments In Unconsolidated49
Investments In Unconsolidated Real Estate Funds - Summary Of Statement Of Financial Position For Investments In Unconsolidated Real Estate Funds (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Real Estate Investments, Net [Abstract] | ||
Total assets | $ 695,136 | $ 691,543 |
Total liabilities | 448,569 | 389,372 |
Total equity | $ 246,567 | $ 302,171 |
Investments In Unconsolidated50
Investments In Unconsolidated Real Estate Funds - Summary Of Statement Of Operations For Investments In Unconsolidated Real Estate Funds (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Real Estate Investments, Net [Abstract] | ||
Total revenues | $ 17,475 | $ 17,480 |
Operating income | 4,242 | 3,814 |
Net income | $ 1,404 | $ 960 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Equity Method Investments [Line Items] | ||
Restricted cash | $ 194 | $ 194 |
Prepaid expenses | 6,657 | 6,720 |
Other indefinite-lived intangible | 1,988 | 1,988 |
Deposits in escrow | 0 | 75,000 |
Furniture, fixtures and equipment, net | 1,345 | 1,448 |
Other | 1,770 | 2,370 |
Total other assets | $ 11,954 | 87,720 |
Westwood Portfolio [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Deposits in escrow | $ 75,000 |
Secured Notes Payable and Rev52
Secured Notes Payable and Revolving Credit Facility - Schedule Of Secured Notes Payable and Revolving Credit Facility (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Total Debt | $ 4,502,969,000 | $ 3,634,163,000 | |
Deferred loan costs, net | (33,012,000) | (22,887,000) | |
Total Debt, Net | $ 4,469,957,000 | 3,611,276,000 | |
Weighted average remaining life of outstanding term debt (in years) | 4 years 7 months | ||
Debt at fixed interest rate | $ 4,210,000,000 | ||
Weighted average remaining life of interest rate swaps and fixed rate debt (in years) | 4 years 7 months | ||
Weighted average annual interest rate (as a percent) | 3.42% | ||
Weighted average effective interest rate, including non-cash amortization of deferred loan costs (as a percent) | 3.57% | ||
Accumulated amortization | $ 16,600,000 | 15,200,000 | |
Amortization of deferred loan costs | $ 1,319,000 | $ 1,773,000 | |
Term Loan With Effective Annual Fixed Interest Rate At Four Point Zero Zero Percentage [Member] | |||
Debt Instrument [Line Items] | |||
Fixed rate debt amortization period (in years) | 30 years | ||
Long term Fixed Rate Debt with effective interest rate of 385 bps [Member] | |||
Debt Instrument [Line Items] | |||
Fixed rate debt amortization period (in years) | 30 years | ||
Debt instrument period of monthly interest-only payments end date | Feb. 5, 2017 | ||
Term Loan With Effective Annual Fixed Interest Rate At Four Point Four Six Percentage [Member] | |||
Debt Instrument [Line Items] | |||
Fixed rate debt amortization period (in years) | 30 years | ||
Debt instrument period of monthly interest-only payments end date | May 1, 2016 | ||
Debt instrument period of fixed interest end date | Mar. 1, 2018 | ||
Revolving Credit Facility With Maturity Date 8/21/20 [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 400,000,000 | ||
Effective Fixed Rate Loans [Member] | |||
Debt Instrument [Line Items] | |||
Total Debt | 3,072,360,000 | 2,492,360,000 | |
Aggregate Fixed Rate Loans [Member] | |||
Debt Instrument [Line Items] | |||
Total Debt | $ 1,140,609,000 | 1,141,803,000 | |
Weighted average remaining period during which interest was fixed (in years) | 2 years 8 months | ||
Variable Rate Loans [Member] | |||
Debt Instrument [Line Items] | |||
Total Debt | $ 290,000,000 | 0 | |
Minimum [Member] | Revolving Credit Facility With Maturity Date 8/21/20 [Member] | |||
Debt Instrument [Line Items] | |||
Unused commitment fees (as a percent) | 0.15% | ||
Maximum [Member] | Revolving Credit Facility With Maturity Date 8/21/20 [Member] | |||
Debt Instrument [Line Items] | |||
Unused commitment fees (as a percent) | 0.20% | ||
Wholly Owned Subsidiaries [Member] | |||
Debt Instrument [Line Items] | |||
Total Debt | $ 3,907,229,000 | 3,618,423,000 | |
Secured Debt [Member] | Wholly Owned Subsidiaries [Member] | Term Loan, Maturity Date December 24, 2016 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Dec. 24, 2016 | ||
Total Debt | $ 20,000,000 | 20,000,000 | |
Variable Interest Rate | LIBOR + 1.45% | ||
Fixed Interest Rate | 3.57% | ||
Swap Maturity Date | Apr. 1, 2016 | ||
Secured Debt [Member] | Wholly Owned Subsidiaries [Member] | Term Loan With Effective Annual Fixed Interest Rate At Four Point One Two Percentage [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Apr. 2, 2018 | ||
Total Debt | $ 256,140,000 | 256,140,000 | |
Variable Interest Rate | LIBOR + 2.00% | ||
Fixed Interest Rate | 4.12% | ||
Swap Maturity Date | Apr. 1, 2016 | ||
Secured Debt [Member] | Wholly Owned Subsidiaries [Member] | Term Loan With Effective Annual Fixed Interest Rate At Three Point Seven Four Percentage [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Aug. 1, 2018 | ||
Total Debt | $ 530,000,000 | 530,000,000 | |
Variable Interest Rate | LIBOR + 1.70% | ||
Fixed Interest Rate | 3.74% | ||
Swap Maturity Date | Aug. 1, 2016 | ||
Secured Debt [Member] | Wholly Owned Subsidiaries [Member] | Term Loan With Effective Annual Fixed Interest Rate At Four Point One Four Percentage [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Aug. 5, 2018 | ||
Total Debt | $ 354,501,000 | 355,000,000 | |
Fixed Interest Rate | 4.14% | ||
Secured Debt [Member] | Wholly Owned Subsidiaries [Member] | Term Loan With Effective Annual Fixed Interest Rate At Four Point Zero Zero Percentage [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Feb. 1, 2019 | ||
Total Debt | $ 152,038,000 | 152,733,000 | |
Fixed Interest Rate | 4.00% | ||
Secured Debt [Member] | Wholly Owned Subsidiaries [Member] | Long term Fixed Rate Debt with effective interest rate of 385 bps [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Jun. 5, 2019 | ||
Total Debt | $ 285,000,000 | 285,000,000 | |
Fixed Interest Rate | 3.85% | ||
Secured Debt [Member] | Wholly Owned Subsidiaries [Member] | Fannie Mae Loans, Maturity Date October 1, 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Oct. 1, 2019 | ||
Total Debt | $ 145,000,000 | 145,000,000 | |
Variable Interest Rate | LIBOR + 1.25% | ||
Fixed Interest Rate | 3.37% | ||
Swap Maturity Date | Apr. 1, 2016 | ||
Secured Debt [Member] | Wholly Owned Subsidiaries [Member] | Term Loan With Effective Annual Fixed Interest Rate At Four Point Four Six Percentage [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Mar. 1, 2020 | ||
Total Debt | $ 349,070,000 | 349,070,000 | |
Fixed Interest Rate | 4.46% | ||
Secured Debt [Member] | Wholly Owned Subsidiaries [Member] | Entity One Rate Six With Effective Annual Fixed Interest Rate At Three Point Six Five Percentage [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Nov. 2, 2020 | ||
Total Debt | $ 388,080,000 | 388,080,000 | |
Variable Interest Rate | LIBOR + 1.65% | ||
Fixed Interest Rate | 3.65% | ||
Swap Maturity Date | Nov. 1, 2017 | ||
Secured Debt [Member] | Wholly Owned Subsidiaries [Member] | Term Loan With Maturity Date Of 04152022 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Apr. 15, 2022 | ||
Total Debt | $ 340,000,000 | 340,000,000 | |
Variable Interest Rate | LIBOR + 1.40% | ||
Fixed Interest Rate | 2.77% | ||
Swap Maturity Date | Apr. 1, 2020 | ||
Secured Debt [Member] | Wholly Owned Subsidiaries [Member] | Term Loan With Effective Annual Fixed Interest Rate At Three Point Zero Six Percentage [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Jul. 27, 2022 | ||
Total Debt | $ 180,000,000 | 180,000,000 | |
Variable Interest Rate | LIBOR + 1.45% | ||
Fixed Interest Rate | 3.06% | ||
Swap Maturity Date | Jul. 1, 2020 | ||
Secured Debt [Member] | Wholly Owned Subsidiaries [Member] | Term Loan, Fixed Interest rate of 2.64% [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Nov. 2, 2022 | ||
Total Debt | $ 400,000,000 | 400,000,000 | |
Variable Interest Rate | LIBOR + 1.35% | ||
Fixed Interest Rate | 2.64% | ||
Swap Maturity Date | Nov. 1, 2020 | ||
Secured Debt [Member] | Wholly Owned Subsidiaries [Member] | Fannie Mae Loan With Maturity Date Of April 1, 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Apr. 1, 2025 | ||
Total Debt | $ 102,400,000 | 102,400,000 | |
Variable Interest Rate | LIBOR + 1.25% | ||
Fixed Interest Rate | 2.84% | ||
Swap Maturity Date | Mar. 1, 2020 | ||
Secured Debt [Member] | Wholly Owned Subsidiaries [Member] | Fannie Mae Loan with Maturity Date of December 1, 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Dec. 1, 2025 | ||
Total Debt | $ 115,000,000 | 115,000,000 | |
Variable Interest Rate | LIBOR + 1.25% | ||
Fixed Interest Rate | 2.76% | ||
Swap Maturity Date | Dec. 1, 2020 | ||
Secured Debt [Member] | Wholly Owned Subsidiaries [Member] | LIBOR [Member] | Term Loan, Maturity Date December 24, 2016 [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.45% | ||
Secured Debt [Member] | Wholly Owned Subsidiaries [Member] | LIBOR [Member] | Term Loan With Effective Annual Fixed Interest Rate At Four Point One Two Percentage [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 2.00% | ||
Secured Debt [Member] | Wholly Owned Subsidiaries [Member] | LIBOR [Member] | Term Loan With Effective Annual Fixed Interest Rate At Three Point Seven Four Percentage [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.70% | ||
Secured Debt [Member] | Wholly Owned Subsidiaries [Member] | LIBOR [Member] | Fannie Mae Loans, Maturity Date October 1, 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.25% | ||
Secured Debt [Member] | Wholly Owned Subsidiaries [Member] | LIBOR [Member] | Entity One Rate Six With Effective Annual Fixed Interest Rate At Three Point Six Five Percentage [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.65% | ||
Secured Debt [Member] | Wholly Owned Subsidiaries [Member] | LIBOR [Member] | Term Loan With Maturity Date Of 04152022 [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.40% | ||
Secured Debt [Member] | Wholly Owned Subsidiaries [Member] | LIBOR [Member] | Term Loan With Effective Annual Fixed Interest Rate At Three Point Zero Six Percentage [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.45% | ||
Secured Debt [Member] | Wholly Owned Subsidiaries [Member] | LIBOR [Member] | Term Loan, Fixed Interest rate of 2.64% [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.35% | ||
Secured Debt [Member] | Wholly Owned Subsidiaries [Member] | LIBOR [Member] | Fannie Mae Loan With Maturity Date Of April 1, 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.25% | ||
Secured Debt [Member] | Wholly Owned Subsidiaries [Member] | LIBOR [Member] | Fannie Mae Loan with Maturity Date of December 1, 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.25% | ||
Secured Debt [Member] | Consolidated Joint Ventures [Member] | Term Loan With Maturity Date 3/1/2017 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Mar. 1, 2017 | ||
Total Debt | $ 15,740,000 | 15,740,000 | |
Variable Interest Rate | LIBOR + 1.60% | ||
Fixed Interest Rate | 3.72% | ||
Swap Maturity Date | Apr. 1, 2016 | ||
Secured Debt [Member] | Consolidated Joint Ventures [Member] | Term Loan with Maturity Date of February 28, 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Feb. 28, 2023 | ||
Total Debt | $ 580,000,000 | 0 | |
Variable Interest Rate | LIBOR + 1.40% | ||
Fixed Interest Rate | 2.37% | ||
Swap Maturity Date | Mar. 1, 2021 | ||
Secured Debt [Member] | Consolidated Joint Ventures [Member] | LIBOR [Member] | Term Loan With Maturity Date 3/1/2017 [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.60% | ||
Secured Debt [Member] | Consolidated Joint Ventures [Member] | LIBOR [Member] | Term Loan with Maturity Date of February 28, 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.40% | ||
Line of Credit [Member] | LIBOR [Member] | Revolving Credit Facility With Maturity Date 8/21/20 [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.40% | ||
Line of Credit [Member] | Wholly Owned Subsidiaries [Member] | Revolving Credit Facility With Maturity Date 8/21/20 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Aug. 21, 2020 | ||
Total Debt | $ 290,000,000 | $ 0 | |
Variable Interest Rate | LIBOR + 1.40% | ||
Line of Credit [Member] | Wholly Owned Subsidiaries [Member] | LIBOR [Member] | Revolving Credit Facility With Maturity Date 8/21/20 [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.40% |
Secured Notes Payable and Rev53
Secured Notes Payable and Revolving Credit Facility - Schedule Of Minimum Future Principal Payments Due On Secured Notes Payable (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Secured Debt [Abstract] | ||
2,017 | $ 49,890 | |
2,018 | 358,828 | |
2,019 | 1,279,730 | |
2,020 | 419,041 | |
2,021 | 973,080 | |
Thereafter | 1,422,400 | |
Total future principal payments | $ 4,502,969 | $ 3,634,163 |
Interest Payable, Accounts Pa54
Interest Payable, Accounts Payable and Deferred Revenue (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Interest payable | $ 11,476 | $ 10,028 |
Accounts payable and accrued liabilities | 41,285 | 23,716 |
Deferred revenue | 22,826 | 23,673 |
Total interest payable, accounts payable and deferred revenue | $ 75,587 | $ 57,417 |
Derivative Contracts - Summary
Derivative Contracts - Summary of Derivatives (Details) - Derivatives Designated as Cash Flow Hedges [Member] - Cash Flow Hedging [Member] - Interest Rate Swap [Member] $ in Thousands | Mar. 31, 2016USD ($)instrument |
Derivative [Line Items] | |
Number of Instruments | instrument | 18 |
Notional | $ | $ 3,145,480 |
Fund X [Member] | |
Derivative [Line Items] | |
Number of Instruments | instrument | 2 |
Notional | $ | $ 435,000 |
Percent of notional amount related to the Fund | 100.00% |
Derivative Contracts - Credit-r
Derivative Contracts - Credit-risk-related Contingent Features (Details) - Interest Rate Swap [Member] - Derivatives Designated as Cash Flow Hedges [Member] - Cash Flow Hedging [Member] - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value derivatives in a liability position | $ 36,692 | $ 19,047 |
Fund X [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value derivatives in a liability position | $ 118 | $ 0 |
Percent of notional amount related to the Fund | 100.00% |
Derivative Contracts - Counterp
Derivative Contracts - Counterparty Credit Risk (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value - derivatives | $ 1,493 | $ 4,830 |
Interest Rate Swap [Member] | Derivatives Designated as Cash Flow Hedges [Member] | Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value - derivatives | 1,514 | 4,220 |
Fund X [Member] | Interest Rate Swap [Member] | Derivatives Designated as Cash Flow Hedges [Member] | Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value - derivatives | $ 621 | $ 737 |
Percent of notional amount related to the Fund | 100.00% |
Derivative Contracts - Impact o
Derivative Contracts - Impact of Hedges on AOCI and Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Derivative [Line Items] | ||
Loss recorded in AOCI (effective portion) | $ (28,812) | $ (7,022) |
Cash Flow Hedging [Member] | Derivatives Designated as Cash Flow Hedges [Member] | ||
Derivative [Line Items] | ||
Loss recorded in AOCI (effective portion) | (28,812) | (7,022) |
Loss reclassified from AOCI (effective portion) | (8,710) | (9,133) |
Interest Expense [Member] | Cash Flow Hedging [Member] | Derivatives Designated as Cash Flow Hedges [Member] | ||
Derivative [Line Items] | ||
Gain (loss) recorded as interest expense (ineffective portion) | 0 | 0 |
Interest Expense [Member] | Cash Flow Hedging [Member] | Derivatives Not Designated as Cash Flow Hedges [Member] | ||
Derivative [Line Items] | ||
Gain (loss) recorded as interest expense | 0 | 0 |
Fund X [Member] | ||
Derivative [Line Items] | ||
Loss recorded in AOCI (effective portion) | (611) | (1,333) |
Fund X [Member] | Cash Flow Hedging [Member] | Derivatives Designated as Cash Flow Hedges [Member] | ||
Derivative [Line Items] | ||
Loss recorded in AOCI (effective portion) | (611) | (1,333) |
Loss reclassified from AOCI (effective portion) | $ (105) | $ (240) |
Derivative Contracts - Future R
Derivative Contracts - Future Reclassifications from AOCI (Details) $ in Thousands | Mar. 31, 2016USD ($) |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative designated as cash flow hedge to be reclassified | $ 20,457 |
Fund X [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative designated as cash flow hedge to be reclassified | $ 158 |
Equity - Narrative (Details)
Equity - Narrative (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Mar. 31, 2016USD ($)shares | Mar. 31, 2015USD ($)office_property$ / sharesshares | Jun. 30, 2016 | Dec. 31, 2015USD ($)shares | |
Schedule of Equity Method Investments [Line Items] | ||||
Number of operating partnership units converted to shares of common stock | 400,000 | 900,000 | ||
Shares issued | 24,000 | 136,000 | ||
Number of stock options exercised | 65,000 | |||
Equity Method Investments | $ | $ 148,602 | $ 164,631 | ||
Purchase price of stock options | $ | $ 1,800 | |||
Average purchase price of options (usd per share) | $ / shares | $ 13.44 | |||
OP Units issued | 34,000 | |||
Issuance of OP Units in exchange for land and building acquired | $ | $ 0 | $ 1,000 | ||
Number of office buildings | office_property | 1 | |||
Noncontrolling interest, ownership percentage by noncontrolling owners | 15.00% | |||
Common stock, shares outstanding | 147,383,520 | 146,919,187 | ||
Number of OP units and fully-vested LTIP units outstanding | 26,200,000 | |||
Number of shares of common stock issued upon redemption of one OP unit | 1 | |||
Investor [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investments | $ | $ 320,000 | |||
Equity Method Investment, Ownership Percentage | 40.00% | |||
Investor [Member] | Scenario, Forecast [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 30.00% |
Equity - Condensed Consolidated
Equity - Condensed Consolidated Statements Of Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Equity [Line Items] | ||
Douglas Emmett, Inc. Stockholders' Equity, Beginning Balance | $ 1,926,211 | |
Noncontrolling Interests, Beginning Balance | 355,337 | |
Total Equity, Beginning Balance | 2,281,548 | $ 2,313,724 |
Net income attributable to common stockholders | 15,366 | 18,699 |
Noncontrolling Interests, Net Income | 680 | 3,397 |
Net income | 16,046 | 22,096 |
Cash flow hedge fair value adjustment | (20,608) | 1,018 |
Contributions | 320,000 | |
Dividends and distributions | (32,424) | (30,631) |
Dividends and distributions | (38,522) | (36,625) |
Common stock issued in exchange for OP Units | 0 | 0 |
Issuance of OP unit for cash | 0 | 1,000 |
Exercise of stock options | (445) | 1,823 |
Stock-based compensation | 2,596 | 2,155 |
Douglas Emmett, Inc. Stockholders' Equity, Ending Balance | 1,896,527 | |
Noncontrolling Interests, Ending Balance | 664,088 | |
Total Equity, Ending Balance | 2,560,615 | 2,305,191 |
Douglas Emmett Inc Stockholders Equity [Member] | ||
Equity [Line Items] | ||
Douglas Emmett, Inc. Stockholders' Equity, Beginning Balance | 1,926,211 | 1,943,458 |
Net income attributable to common stockholders | 15,366 | 18,699 |
Cash flow hedge fair value adjustment | (18,028) | 685 |
Contributions | 0 | |
Dividends and distributions | (32,424) | (30,630) |
Common stock issued in exchange for OP Units | 5,847 | 11,408 |
Issuance of OP unit for cash | 0 | |
Exercise of stock options | (445) | 1,823 |
Stock-based compensation | 0 | 0 |
Douglas Emmett, Inc. Stockholders' Equity, Ending Balance | 1,896,527 | 1,945,443 |
Noncontrolling Interest [Member] | ||
Equity [Line Items] | ||
Noncontrolling Interests, Beginning Balance | 355,337 | 370,266 |
Noncontrolling Interests, Net Income | 680 | 3,397 |
Cash flow hedge fair value adjustment | (2,580) | 333 |
Contributions | 320,000 | |
Dividends and distributions | (6,098) | (5,995) |
Common stock issued in exchange for OP Units | $ (5,847) | (11,408) |
Issuance of OP unit for cash | 1,000 | |
Exercise of stock options | 0 | |
Stock-based compensation | $ 2,596 | 2,155 |
Noncontrolling Interests, Ending Balance | $ 664,088 | $ 359,748 |
Equity - Net Income Attributabl
Equity - Net Income Attributable To Common Stockholders And Transfers (To) From Noncontrolling Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Stockholders' Equity Note [Abstract] | ||
Net income attributable to common stockholders | $ 15,366 | $ 18,699 |
Exchange of OP units with noncontrolling interests | 5,847 | 11,408 |
Repurchase of OP units from noncontrolling interests | 0 | 0 |
Net transfers from noncontrolling interests | 5,847 | 11,408 |
Change from net income attributable to common stockholders and transfers from noncontrolling interests | $ 21,213 | $ 30,107 |
Equity - Accumulated Other Comp
Equity - Accumulated Other Comprehensive Income Schedule (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | $ (9,285) | |
Net current period OCI | (20,608) | $ 1,018 |
Ending balance | (27,313) | |
Cash Flow Hedging [Member] | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (9,285) | (30,089) |
Other comprehensive loss before reclassifications | (28,812) | (7,022) |
Reclassifications from AOCI | 8,710 | 9,133 |
Net current period OCI | (20,608) | 1,018 |
Less OCI attributable to noncontrolling interests | 2,580 | (333) |
OCI attributable to common stockholders | (18,028) | 685 |
Ending balance | (27,313) | (29,404) |
Fund X [Member] | Cash Flow Hedging [Member] | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Other comprehensive loss before reclassifications | (611) | (1,333) |
Reclassifications from AOCI | $ 105 | $ 240 |
Equity - Equity Compensation (D
Equity - Equity Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Stockholders' Equity Note [Abstract] | ||
Amortization of stock-based compensation | $ 2,379 | $ 1,947 |
Capitalized stock-based compensation for improvements to real estate and developments | 217 | 193 |
Intrinsic value of options exercised | $ 1,100 | $ 2,200 |
EPS (Details)
EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Net income attributable to common stockholders | $ 15,366 | $ 18,699 |
Allocation to participating securities: Unvested LTIP units | (84) | (98) |
Numerator for basic and diluted net income attributable to common stockholders | $ 15,282 | $ 18,601 |
Weighted average shares of common stock outstanding - basic | 147,236 | 145,327 |
Effect of dilutive securities: Stock options | 4,215 | 4,475 |
Weighted average shares of common stock and common stock equivalents outstanding - diluted | 151,451 | 149,802 |
Basic EPS: | ||
Net income attributable to common stockholders per share (usd per share) | $ 0.104 | $ 0.128 |
Diluted EPS: | ||
Net income attributable to common stockholders per share (usd per share) | $ 0.101 | $ 0.124 |
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 | 25,549 | 26,513 |
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 | 815 | 702 |
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 | 532 | 503 |
Fair Value of Financial Instr66
Fair Value of Financial Instruments - Estimated Fair Value of Secured Notes Payable (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value Disclosures [Abstract] | ||
Fair value | $ 4,271,849 | $ 3,691,075 |
Carrying value | $ 4,212,969 | $ 3,634,163 |
Fair Value of Financial Instr67
Fair Value of Financial Instruments - Fair Value Table (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Derivative Assets: | ||
Fair value - derivatives | $ 1,493 | $ 4,830 |
Derivative Liabilities: | ||
Fair value - derivatives | 33,075 | 16,310 |
Level 2 | ||
Derivative Assets: | ||
Fair value - derivatives | 1,493 | 4,830 |
Derivative Liabilities: | ||
Fair value - derivatives | 33,075 | 16,310 |
Fund X [Member] | Level 2 | ||
Derivative Assets: | ||
Fair value - unconsolidated Funds' derivatives | 499 | 837 |
Derivative Liabilities: | ||
Fair value - unconsolidated Funds' derivatives | $ 70 | $ 0 |
Fund X [Member] | Interest Rate Swap [Member] | ||
Derivative Liabilities: | ||
Percent of notional amount related to the Fund | 100.00% |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 3 Months Ended |
Mar. 31, 2016segment | |
Segment Reporting [Abstract] | |
Number of reportable business segments | 2 |
Segment Reporting - Operating A
Segment Reporting - Operating Activity Within Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Total office revenues | $ 144,379 | $ 131,456 |
Office expenses | (47,883) | (44,199) |
Total multifamily revenues | 24,193 | 23,353 |
Multifamily expenses | (6,031) | (5,820) |
Segment profit | 114,658 | 104,790 |
Office Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total office revenues | 144,379 | 131,456 |
Office expenses | (47,883) | (44,199) |
Segment profit | 96,496 | 87,257 |
Multifamily Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total multifamily revenues | 24,193 | 23,353 |
Multifamily expenses | (6,031) | (5,820) |
Segment profit | $ 18,162 | $ 17,533 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation Of Segment Profit To Net Income Attributable To Common Stockholders (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting [Abstract] | ||
Total profit from all segments | $ 114,658 | $ 104,790 |
General and administrative expense | (8,071) | (7,361) |
Depreciation and amortization | (55,552) | (49,834) |
Other income | 2,089 | 8,559 |
Other expenses | (1,551) | (1,572) |
Income, including depreciation, from unconsolidated real estate funds | 1,586 | 1,443 |
Interest expense | (35,660) | (33,639) |
Acquisition-related expenses | (1,453) | (290) |
Net income | 16,046 | 22,096 |
Less: Net income attributable to noncontrolling interests | (680) | (3,397) |
Net income attributable to common stockholders | $ 15,366 | $ 18,699 |
Future Minimum Lease Rental R71
Future Minimum Lease Rental Receipts (Details) $ in Thousands | Mar. 31, 2016USD ($) |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
2,017 | $ 462,305 |
2,018 | 418,016 |
2,019 | 344,628 |
2,020 | 291,447 |
2,021 | 230,194 |
Thereafter | 630,528 |
Total future minimum base rentals | $ 2,377,118 |
Future Minimum Lease Rental P72
Future Minimum Lease Rental Payments - Narrative (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($)ground_lease | Mar. 31, 2015USD ($)ground_lease | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
Ground lease payments | $ | $ 183 | $ 192 |
Number of ground leases | ground_lease | 1 | 2 |
Future Minimum Lease Rental P73
Future Minimum Lease Rental Payments - Future Minimum Ground Lease Payments (Details) $ in Thousands | Mar. 31, 2016USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,017 | $ 733 |
2,018 | 733 |
2,019 | 733 |
2,020 | 733 |
2,021 | 733 |
Thereafter | 48,194 |
Total future minimum lease payments | 51,859 |
Future ground rent payments per year | $ 733 |
Commitments, Contingencies an74
Commitments, Contingencies and Guarantees (Details) | 3 Months Ended | |
Mar. 31, 2016USD ($)propertytenant | Mar. 31, 2015tenant | |
Loss Contingencies [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 | 25 | |
Joint Venture [Member] | ||
Loss Contingencies [Line Items] | ||
Number of properties containing Asbestos | 2 | |
Apartment Building [Member] | HAWAII | ||
Loss Contingencies [Line Items] | ||
Apartments under construction | 475 | |
Estimated duration of property development (in months) | 18 years | |
Estimated cost of construction | $ | $ 120,000,000 | |
Contractual amount for development project | $ | $ 118,600,000 | |
Unconsolidated Funds [Member] | ||
Loss Contingencies [Line Items] | ||
Number of properties containing Asbestos | 4 |
Commitments, Contingencies an75
Commitments, Contingencies and Guarantees - Schedule of Debt Related to Unconsolidated Funds (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($)property | Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | ||
Long-term debt | $ 4,469,957 | $ 3,611,276 |
Fund X [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 325,000 | |
Loan Maturity Date | May 1, 2018 | |
Debt Instrument, Collateral, Number of Properties | property | 6 | |
Maximum future payments under the swap agreement | $ 2,100 | |
Fund X [Member] | Interest Rate Swap [Member] | ||
Debt Instrument [Line Items] | ||
Swap Fixed Interest Rate | 2.35% | |
Partnership X [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 110,000 | |
Loan Maturity Date | Mar. 1, 2023 | |
Debt Instrument, Collateral, Number of Properties | property | 2 | |
Maximum future payments under the swap agreement | $ 5,000 | |
Partnership X [Member] | Interest Rate Swap [Member] | ||
Debt Instrument [Line Items] | ||
Swap Fixed Interest Rate | 2.30% | |
Unconsolidated Funds [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 435,000 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | 3 Months Ended | 4 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2016 | Feb. 29, 2016 | |
Scenario, Forecast [Member] | |||
Subsequent Event [Line Items] | |||
Sale of equity in joint venture, percent | 30.00% | ||
Sale of equity in joint venture, amount | $ 240 | ||
Sale of joint venture, applicable interest rate | 2.00% | ||
Westwood Portfolio [Member] | Joint Venture [Member] | |||
Subsequent Event [Line Items] | |||
Percentage of equity contributed in joint venture | 60.00% | ||
Westwood Portfolio [Member] | Joint Venture [Member] | Scenario, Forecast [Member] | |||
Subsequent Event [Line Items] | |||
Percentage of equity contributed in joint venture | 30.00% | 30.00% |