Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 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 | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 151,034,897 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Land | $ 993,047 | $ 897,916 |
Buildings and improvements | 6,886,909 | 5,644,546 |
Tenant improvements and lease intangibles | 768,864 | 696,647 |
Property under development | 32,871 | 26,900 |
Investment in real estate, gross | 8,681,691 | 7,266,009 |
Less: accumulated depreciation and amortization | (1,796,242) | (1,687,998) |
Investment in real estate, net | 6,885,449 | 5,578,011 |
Real estate held for sale, net | 42,591 | 42,943 |
Cash and cash equivalents | 77,166 | 101,798 |
Tenant receivables, net | 2,278 | 1,907 |
Deferred rent receivables, net | 87,473 | 79,837 |
Acquired lease intangible assets, net | 4,394 | 4,484 |
Interest rate contract assets | 0 | 4,830 |
Investment in unconsolidated real estate funds | 145,999 | 164,631 |
Other assets | 13,153 | 87,720 |
Total assets | 7,258,503 | 6,066,161 |
Liabilities | ||
Secured notes payable and revolving credit facility, net | 4,280,925 | 3,611,276 |
Interest payable, accounts payable and deferred revenue | 69,691 | 57,417 |
Security deposits | 43,755 | 38,683 |
Acquired lease intangible liabilities, net | 71,532 | 28,605 |
Interest rate contract liabilities | 46,052 | 16,310 |
Dividends payable | 32,827 | 32,322 |
Total liabilities | 4,544,782 | 3,784,613 |
Douglas Emmett, Inc. stockholders' equity: | ||
Common Stock, $0.01 par value, 750,000,000 authorized, 149,214,897 and 146,919,187 outstanding at June 30, 2016 and December 31, 2015, respectively | 1,492 | 1,469 |
Additional paid-in capital | 2,665,241 | 2,706,753 |
Accumulated other comprehensive loss | (36,992) | (9,285) |
Accumulated deficit | (804,129) | (772,726) |
Total Douglas Emmett, Inc. stockholders' equity | 1,825,612 | 1,926,211 |
Noncontrolling interests | 888,109 | 355,337 |
Total equity | 2,713,721 | 2,281,548 |
Total liabilities and equity | $ 7,258,503 | $ 6,066,161 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 750,000,000 | 750,000,000 |
Common stock, shares outstanding (in shares) | 149,214,897 | 146,919,187 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Office rental | ||||
Rental revenues | $ 126,650 | $ 103,808 | $ 237,656 | $ 204,459 |
Tenant recoveries | 10,986 | 11,463 | 21,197 | 21,613 |
Parking and other income | 25,460 | 21,520 | 48,622 | 42,175 |
Total office revenues | 163,096 | 136,791 | 307,475 | 268,247 |
Multifamily rental | ||||
Rental revenues | 22,406 | 21,975 | 44,833 | 43,619 |
Parking and other income | 1,713 | 1,691 | 3,479 | 3,400 |
Total multifamily revenues | 24,119 | 23,666 | 48,312 | 47,019 |
Total revenues | 187,215 | 160,457 | 355,787 | 315,266 |
Operating Expenses | ||||
Office expenses | 53,381 | 46,542 | 101,264 | 90,741 |
Multifamily expenses | 5,341 | 5,930 | 11,372 | 11,750 |
General and administrative | 9,403 | 7,473 | 17,474 | 14,834 |
Depreciation and amortization | 62,568 | 51,246 | 118,120 | 101,080 |
Total operating expenses | 130,693 | 111,191 | 248,230 | 218,405 |
Operating income | 56,522 | 49,266 | 107,557 | 96,861 |
Other income | 2,143 | 2,415 | 4,232 | 10,974 |
Other expenses | (1,684) | (1,619) | (3,235) | (3,191) |
Income, including depreciation, from unconsolidated real estate funds | 1,644 | 1,207 | 3,230 | 2,650 |
Interest expense | (37,703) | (35,177) | (73,363) | (68,816) |
Acquisition-related expenses | (224) | (198) | (1,677) | (488) |
Income before gains | 20,698 | 15,894 | 36,744 | 37,990 |
Gain on sale of investment in real estate | 1,082 | 0 | 1,082 | 0 |
Net income | 21,780 | 15,894 | 37,826 | 37,990 |
Less: Net income attributable to noncontrolling interests | (3,298) | (2,446) | (3,978) | (5,843) |
Net income attributable to common stockholders | $ 18,482 | $ 13,448 | $ 33,848 | $ 32,147 |
Net income attributable to common stockholders per share – basic (usd per share) | $ 0.124 | $ 0.092 | $ 0.228 | $ 0.220 |
Net income attributable to common stockholders per share – diluted (usd per share) | 0.120 | 0.089 | 0.221 | 0.213 |
Dividends declared per common share (usd per share) | $ 0.22 | $ 0.21 | $ 0.44 | $ 0.42 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 21,780 | $ 15,894 | $ 37,826 | $ 37,990 |
Other comprehensive income (loss): cash flow hedges | (14,890) | 11,367 | (35,498) | 12,385 |
Comprehensive income | 6,890 | 27,261 | 2,328 | 50,375 |
Less: Comprehensive (income) loss attributable to noncontrolling interests | 1,913 | (4,268) | 3,813 | (7,998) |
Comprehensive income attributable to common stockholders | $ 8,803 | $ 22,993 | $ 6,141 | $ 42,377 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Operating Activities | ||
Net income | $ 37,826 | $ 37,990 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Income, including depreciation, from unconsolidated real estate funds | (3,230) | (2,650) |
Gain on sale of investment in real estate | (1,082) | 0 |
Depreciation and amortization | 118,120 | 101,080 |
Net accretion of acquired lease intangibles | (8,314) | (12,940) |
Straight-line rent | (7,636) | (3,366) |
Increase in the allowance for doubtful accounts | 1,116 | 237 |
Amortization of deferred loan costs | 3,235 | 3,974 |
Amortization of stock-based compensation | 4,739 | 3,935 |
Operating distributions from unconsolidated real estate funds | 893 | 535 |
Change in working capital components: | ||
Tenant receivables | (1,487) | (476) |
Interest payable, accounts payable and deferred revenue | 12,455 | 3,133 |
Security deposits | 5,072 | (41) |
Other assets | 5,064 | 4,784 |
Net cash provided by operating activities | 166,771 | 136,195 |
Investing Activities | ||
Capital expenditures for improvements to real estate | (35,183) | (37,590) |
Capital expenditures for developments | (5,967) | (2,074) |
Property acquisitions | (1,257,513) | (89,906) |
Deposits for property acquisitions | (5,000) | 0 |
Proceeds from sale of investment in real estate | 241,053 | 0 |
Proceeds from repayment of note receivable | 0 | 1,000 |
Loan payments received from related parties | 763 | 606 |
Contributions to unconsolidated real estate funds | 0 | (12) |
Capital distributions from unconsolidated real estate funds | 18,839 | 4,053 |
Net cash used in investing activities | (1,043,008) | (123,923) |
Financing Activities | ||
Proceeds from borrowings | 1,374,500 | 662,400 |
Repayment of borrowings | (693,511) | (543,276) |
Loan costs | (14,575) | (4,641) |
Contributions from noncontrolling interests in consolidated joint venture | 320,000 | 0 |
Distributions to noncontrolling interests in our Operating Partnership | (16,787) | (11,817) |
Cash dividends to common stockholders | (64,747) | (61,054) |
Exercise of stock options | 0 | 1,823 |
Taxes paid on exercise of stock options | (52,449) | 0 |
Repurchase of OP Units | (826) | 0 |
Net cash provided by financing activities | 851,605 | 43,435 |
Increase (decrease) in cash and cash equivalents | (24,632) | 55,707 |
Cash and cash equivalents at beginning of period | 101,798 | 18,823 |
Cash and cash equivalents at end of period | 77,166 | 74,530 |
SUPPLEMENTAL CASH FLOWS INFORMATION | ||
Cash paid for interest, net of capitalized interest of $503 and $463 for the six months ended June 30, 2016 and 2015, respectively | 70,353 | 64,300 |
Accrual for capital expenditures for improvements to real estate and developments | 181 | 1,369 |
Capitalized stock-based compensation for improvements to real estate and developments | 448 | 402 |
Write-off of fully depreciated and amortized tenant improvements and lease intangibles | 9,401 | 8,009 |
Write-off of fully amortized acquired lease intangible assets | 598 | 14 |
Write-off of fully accreted acquired lease intangible liabilities | 8,100 | 20,128 |
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 | (50,142) | (5,740) |
Dividends declared | 65,252 | 61,352 |
Common stock issued in exchange for OP Units | 11,458 | 17,203 |
Fund X [Member] | ||
SUPPLEMENTAL CASH FLOWS INFORMATION | ||
Loss from market value adjustments | $ (1,149) | $ (1,609) |
Consolidated Statements of Cas7
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Cash Flows [Abstract] | ||
Capitalized interest paid | $ 503 | $ 463 |
Overview
Overview | 6 Months Ended |
Jun. 30, 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 June 30, 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 June 30, 2016 , owned eight additional office properties, for a combined sixty-six office properties in our total portfolio. See Note 17 regarding the class A multi-tenant office property that we acquired in July, 2016. 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 June 30, 2016 , our consolidated financial statements included one consolidated VIE in which we were deemed to be the primary beneficiary. The VIE was established in the first quarter of 2016 in connection with the acquisition of the Westwood Portfolio. As of June 30, 2016 , the impact of consolidating the VIE increased the Company’s total assets, liabilities and equity by $1.42 billion (of which $1.37 billion related to real estate held for investment), $631.6 million and $789.1 million (of which $550.3 million related to the noncontrolling interests equity), respectively. See Note 3 . As of June 30, 2016 , the carrying value of a property which we had agreed to sell was classified as held for sale in our consolidated balance sheets, and the carrying value in the comparable period has been reclassified to conform to the current period presentation. 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 | 6 Months Ended |
Jun. 30, 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 of 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) disclosure 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 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 are currently evaluating the impact of this ASU. 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 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 April 2016, the FASB issued ASU No. 2016-10, "Identifying Performance Obligations and Licensing" which amends "Revenue from Contracts with Customers" (Topic 606). The ASU provides guidance for identifying performance obligations and licensing. 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 May 2016, the FASB issued ASU No. 2016-12, "Narrow-Scope Improvements and Practical Expedients" which amends "Revenue from Contracts with Customers" (Topic 606). The ASU provides guidance for a variety of revenue recognition related topics. 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 June 2016, the FASB issued ASU No. 2016-13, "Measurement of Credit Losses on Financial Instruments" which amends "Financial Instruments-Credit Losses" (Topic 326). The ASU provides guidance for measuring credit losses on financial instruments. The ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those years, which for us would be the first quarter of 2020, and early adoption is permitted commencing the first quarter of 2019. The amendments in this Update should be applied retrospectively. We are currently evaluating the impact of this ASU. 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 | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Investment in Real Estate | Investment in Real Estate 2016 Acquisitions Westwood Portfolio Acquisition On February 29, 2016 (Acquisition Date), 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 had contributed sixty -percent of the equity to the joint venture, but subsequently reduced that investment to thirty -percent on May 31, 2016 (Sell Down Date) when we sold half of our ownership interest to a third party investor. The results of operations for the acquisition are included in our consolidated statements of operations after the Acquisition Date. 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 Actual at Closing (1) Pro Forma Sell Down 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 (3) (51,273 ) (51,273 ) Net assets and liabilities acquired (4) $ 1,332,513 $ 1,332,513 Source of funds: Cash on hand (5) $ 153,745 $ — $ 153,745 Credit facility (6) 290,000 (240,000 ) 50,000 Non-recourse term loan, net (7) 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 the Acquisition Date when we contributed sixty -percent of the equity to the consolidated joint venture. (2) Reflects our sale of thirty-percent of the equity in the joint venture on the Sell Down Date, presented as of the Acquisition Date, treated as in-substance real estate, which reduced our ownership interest in the joint venture to thirty -percent. We sold the interest for the $240.0 million we contributed plus an additional $1.1 million to compensate for our costs of holding the investment. We recognized a gain on the sale of $1.1 million . We used the proceeds from the sale to pay down the balance owed on our revolving credit facility. (3) As of the Acquisition Date, the weighted average remaining life of the acquired above-and below-market leases was approximately 4.4 years . (4) The difference between the contract and purchase price related to credits received for prorations and similar matters. (5) 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 our 2015 Form 10-K filing), $67.5 million paid at closing, and $11.2 million spent on loan costs in connection with securing the $580.0 million term loan. (6) Reflects borrowings using the Company's credit facility, which bears interest at LIBOR plus 1.40% . (7) Reflects 100% (not only the Company's pro rata share) of a $580.0 million interest-only non-recourse loan, net of deferred loan costs 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 deferred loan costs will be 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 $ 32,198 Net income attributable to common stockholders (1) $ 154 ______________________________________________________ (1) Excluding the impact of transaction costs , net income attributable to common stockholders would be $2.1 million . The table below (in thousands) presents the historical results of Douglas Emmett, Inc. and the Westwood Portfolio on a combined basis as if the acquisition was completed on January 1, 2015, based on our 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 purport to represent what the Company’s results of operations would have been had the acquisition occurred on January 1, 2015, or 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. Six Months Ended June 30, 2016 2015 Pro forma revenues $ 369,114 $ 361,873 Pro forma net income attributable to common stockholders (1) $ 32,698 $ 33,678 Pro forma net income attributable to common stockholders per share – basic $ 0.221 $ 0.230 Pro forma net income attributable to common stockholders per share – diluted $ 0.214 $ 0.223 _____________________________________________________ (1) In the first quarter of 2015, we recognized $6.6 million of accretion for an above-market ground lease in other income related to the purchase of the Harbor Court Land (see "2015 Acquisitions" below and Note 4 ). See Note 17 for information regarding a class A multi-tenant office property that we acquired in July, 2016. 2016 Disposition During the second quarter of 2016, we entered into an agreement to sell a 168,000 square foot class A office property located in Sherman Oaks, Los Angeles with a carrying value of $42.6 million for $56.7 million . We expect the transaction to close during the third quarter of 2016. The property is classified as real estate held for sale in our consolidated balance sheets. 2015 Acquisitions During the six months ended June 30, 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) N/A 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
Acquired Lease Intangibles | 6 Months Ended |
Jun. 30, 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: June 30, 2016 December 31, 2015 Above-market tenant leases $ 4,483 $ 4,661 Accumulated amortization - above-market tenant leases (2,543 ) (2,670 ) Below-market ground leases 3,198 3,198 Accumulated amortization - below-market ground leases (744 ) (705 ) Acquired lease intangible assets, net $ 4,394 $ 4,484 Below-market tenant leases $ 146,977 $ 103,327 Accumulated accretion - below-market tenant leases (78,978 ) (78,280 ) Above-market ground leases 4,017 4,017 Accumulated accretion - above-market ground leases (484 ) (459 ) Acquired lease intangible liabilities, net $ 71,532 $ 28,605 Impact on the Consolidated Statements of Operations The table below (in thousands) summarizes the net amortization/accretion related to our above/below-market leases: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net accretion of above/below-market tenant leases (1) $ 5,001 $ 3,202 $ 8,296 $ 6,322 Amortization of a below-market ground lease (2) (4 ) (4 ) (8 ) (8 ) Accretion of above-market ground lease (3) 13 13 26 26 Accretion of an above-market ground lease (4) — — — 6,600 Total $ 5,010 $ 3,211 $ 8,314 $ 12,940 _______________________________________________ (1) Recorded as a net increase to office and multifamily rental revenues. (2) Ground lease from which we earn ground rent income. Recorded as a decrease to office parking and other income. (3) Ground 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 . The table below (in thousands) presents the future net accretion of above- and below-market tenant and ground leases at June 30, 2016 : Twelve months ending June 30: Net increase to revenues Decrease to expenses Total 2017 $ 15,651 $ 50 $ 15,701 2018 12,198 50 12,248 2019 11,232 50 11,282 2020 9,427 50 9,477 2021 6,646 50 6,696 Thereafter 8,451 3,283 11,734 Total $ 63,605 $ 3,533 $ 67,138 |
Investments In Unconsolidated R
Investments In Unconsolidated Real Estate Funds | 6 Months Ended |
Jun. 30, 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 June 30, 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: Six Months Ended June 30, 2016 2015 Cash distributions received from our Funds $ 19,732 $ 4,588 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, and in November 2015 , we loaned $0.5 million to Partnership X to fund working capital. Both loans carried interest at LIBOR plus 2.5% per annum and 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 of $0.3 million and $0.5 million , respectively, were included in our investment in our unconsolidated funds in our consolidated balance sheet. The interest income recognized on these notes receivable was 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: June 30, 2016 December 31, 2015 Total assets $ 692,332 $ 691,543 Total liabilities 450,143 389,372 Total equity 242,189 302,171 Six Months Ended June 30, 2016 2015 Total revenues $ 35,237 $ 35,041 Operating income 8,806 7,180 Net income 3,196 1,442 |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2016 | |
Other Assets [Abstract] | |
Other Assets | Other Assets Other assets consisted of the following (in thousands): June 30, 2016 December 31, 2015 Restricted cash $ 194 $ 194 Prepaid expenses 2,304 6,720 Other indefinite-lived intangible 1,988 1,988 Deposits in escrow 5,000 75,000 Furniture, fixtures and equipment, net 1,293 1,448 Other 2,374 2,370 Total other assets $ 13,153 $ 87,720 |
Secured Notes Payable and Revol
Secured Notes Payable and Revolving Credit Facility, net | 6 Months Ended |
Jun. 30, 2016 | |
Secured Debt [Abstract] | |
Secured Notes Payable and Revolving Credit Facility, net | 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 (1) Principal Balance as of June 30, 2016 Principal Balance as of December 31, 2015 Variable Interest Rate Fixed Interest Rate (2) Swap Maturity Date Wholly Owned Subsidiaries Term Loan 12/24/2016 $ 20,000 $ 20,000 LIBOR + 1.45% N/A -- Term Loan 2/28/2018 1,000 — N/A 3.00% -- Term Loan 4/2/2018 — 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 (3) 8/5/2018 352,994 355,000 N/A 4.14% -- Term Loan (3) 2/1/2019 151,336 152,733 N/A 4.00% -- Term Loan (4) 6/5/2019 285,000 285,000 N/A 3.85% -- Fannie Mae Loan 10/1/2019 145,000 145,000 LIBOR + 1.25% N/A -- Term Loan (5) 3/1/2020 348,602 349,070 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% (7) 2.77% 4/1/2020 Term Loan 7/27/2022 180,000 180,000 LIBOR + 1.45% (7) 3.06% 7/1/2020 Term Loan 11/2/2022 400,000 400,000 LIBOR + 1.35% (7) 2.64% 11/1/2020 Term Loan 6/23/2023 360,000 — LIBOR + 1.55% (7) 2.57% 7/1/2021 Fannie Mae Loan 4/1/2025 102,400 102,400 LIBOR + 1.25% (7) 2.84% 3/1/2020 Fannie Mae Loan 12/1/2025 115,000 115,000 LIBOR + 1.25% (7) 2.76% 12/1/2020 Revolving credit line (6) 8/21/2020 — — LIBOR + 1.40% N/A -- Total Wholly Owned Debt $ 3,719,412 $ 3,618,423 Consolidated Joint Ventures Term Loan 3/1/2017 $ 15,740 $ 15,740 LIBOR + 1.60% N/A -- Term Loan 2/28/2023 580,000 — LIBOR + 1.40% (7) 2.37% 3/1/2021 Total Debt (8) (9) $ 4,315,152 $ 3,634,163 Deferred loan costs, net (10) (34,227 ) (22,887 ) Total Debt, net $ 4,280,925 $ 3,611,276 ___________________________________________________ At June 30, 2016 , the weighted average remaining life, including extension options, of our total consolidated term debt (excluding our revolving credit facility) was 4.8 years . For the $4.13 billion of term debt on which the interest rate was fixed under the terms of the loan or a swap, the weighted average (i) remaining life was 4.8 years , (ii) remaining period during which the interest rate was fixed was 3.0 years , (iii) annual interest rate was 3.31% and (iv) effective interest rate was 3.46% (including the non-cash amortization of deferred loan costs). 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 June 30, 2016 Principal Balance as of December 31, 2015 Aggregate swap fixed rate loans $ 2,995,480 $ 2,492,360 Aggregate fixed rate loans 1,138,932 1,141,803 Aggregate floating rate loans 180,740 — Total Debt $ 4,315,152 $ 3,634,163 (1) Maturity dates include the effect of extension options. (2) Includes the effect of interest rate swaps and excludes the effect of prepaid loan costs. See Note 9 for the details of our interest rate contracts. (3) Requires monthly payments of principal and interest. Principal amortization is based upon a 30 -year amortization schedule. (4) Interest only until February 2017 , with principal amortization thereafter based upon a 30 -year amortization schedule. (5) Interest rate is fixed until March 1, 2018 . Interest-only payments until May 1, 2016 , and principal amortization thereafter based upon a 30 -year amortization schedule. (6) $400.0 million revolving credit facility. Unused commitment fees range from 0.15% to 0.20% . (7) Loan agreement includes a zero-percent LIBOR floor. The corresponding swaps do not include such a floor. (8) See Note 12 for our fair value disclosures. (9) At June 30, 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 June 30: 2017 $ 52,250 2018 358,512 2019 1,293,910 2020 145,000 2021 683,080 Thereafter 1,782,400 Total future principal payments $ 4,315,152 (10) Deferred loan costs are net of accumulated amortization of $15.7 million and $15.2 million at June 30, 2016 and December 31, 2015 , respectively. The table below (in thousands) sets forth loan costs and amortization of deferred loan costs, both of which are included in interest expense in our consolidated statements of operations: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Loan costs $ 808 $ — $ 827 $ — Deferred loan cost amortization 1,916 2,201 3,235 3,974 Total $ 2,724 $ 2,201 $ 4,062 $ 3,974 |
Interest Payable, Accounts Paya
Interest Payable, Accounts Payable and Deferred Revenue | 6 Months Ended |
Jun. 30, 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): June 30, 2016 December 31, 2015 Interest payable $ 9,803 $ 10,028 Accounts payable and accrued liabilities 36,201 23,716 Deferred revenue 23,687 23,673 Total interest payable, accounts payable and deferred revenue $ 69,691 $ 57,417 |
Derivative Contracts
Derivative Contracts | 6 Months Ended |
Jun. 30, 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 derivatives of our consolidated joint ventures, 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 June 30, 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 19 $2,995,480 Unconsolidated Funds' derivatives (2) 2 $435,000 ___________________________________________________ (1) See Note 12 for our derivative fair value disclosures. (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. 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 June 30, 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): Fair value of derivatives in a liability position (1) June 30, 2016 December 31, 2015 Derivatives $ 49,540 $ 19,047 Unconsolidated Funds' derivatives (2) $ 904 $ — __________________________________________________________________________________ (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): Fair value of derivatives in an asset position (1) June 30, 2016 December 31, 2015 Derivatives $ — $ 4,220 Unconsolidated Funds' derivatives (2) $ — $ 737 ___________________________________________________ (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. 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 six months ended June 30 : 2016 2015 Derivatives Designated as Cash Flow Hedges: Loss recorded in AOCI (effective portion) - derivatives (1)(5) $ (50,142 ) $ (5,740 ) Loss recorded in AOCI (effective portion) - unconsolidated Funds' derivatives (2)(5) $ (1,149 ) $ (1,609 ) Loss reclassified from AOCI (effective portion) - derivatives (3)(5) $ (15,569 ) $ (19,259 ) Loss reclassified from AOCI (effective portion) - unconsolidated Funds' derivatives (4)(5) $ (224 ) $ (475 ) Gain (loss) recorded as interest expense (ineffective portion) (6) $ — $ — Derivatives Not Designated as Cash Flow Hedges: Gain (loss) recorded as interest expense (7) $ — $ — ___________________________________________________ (1) Represents the change in fair value of our interest rate swaps, designated as cash flow hedges, which does not impact the statement of operations. (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 (our share). (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 At June 30, 2016 , our estimate of the AOCI related to our derivatives and our unconsolidated Funds' derivatives, designated as cash flow hedges, that will be reclassified to earnings during the next twelve months, is presented in the table below (in thousands): Derivatives (1) $ 21,906 Unconsolidated Funds' derivatives (2) $ 330 ________________________________________ (1) Reclassified as an increase to interest expense. (2) Reclassified as a decrease to income, including depreciation, from unconsolidated real estate funds (our share). |
Equity
Equity | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Equity | Equity Equity Transactions During the six months ended June 30, 2016 , we (i) acquired 869 thousand OP Units in exchange for issuing to the holders of the OP Units an equal number of shares of our common stock, (ii) acquired 25 thousand OP Units for $826 thousand in cash, at an average price of $33.05 per OP Unit, (iii) issued 1.4 million shares of our common stock for the exercise of 7.5 million stock options on a net settlement basis (net of the exercise price and related taxes), and (iv) sold a thirty-percent ownership interest in the joint venture that acquired the Westwood Portfolio to an investor for $241.1 million , which reduced our ownership interest in the joint venture from sixty -percent to thirty -percent. During the six months ended June 30, 2015 , we (i) acquired 1.3 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 share. In addition, we issued 34 thousand OP Units valued at $1.0 million in connection with the acquisition of land under one of our office buildings. See Note 3 . 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 33,848 3,978 37,826 Cash flow hedge fair value adjustments (27,707 ) (7,791 ) (35,498 ) Contributions to consolidated joint venture — 320,000 320,000 Sale of equity interest in consolidated joint venture — 239,971 239,971 Dividends and distributions (65,251 ) (16,787 ) (82,038 ) Exchange of OP units for common stock 11,458 (11,458 ) — Repurchase of OP units (498 ) (328 ) (826 ) Exercise of stock options (52,449 ) — (52,449 ) Stock-based compensation — 5,187 5,187 Balance as of June 30, 2016 $ 1,825,612 $ 888,109 $ 2,713,721 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 32,147 5,843 37,990 Cash flow hedge fair value adjustments 10,230 2,155 12,385 Dividends and distributions (61,352 ) (11,817 ) (73,169 ) Exchange of OP units for common stock 17,203 (17,203 ) — Issuance of OP units for cash — 1,000 1,000 Exercise of stock options 1,823 — 1,823 Stock-based compensation — 4,358 4,358 Balance as of June 30, 2015 $ 1,943,509 $ 354,602 $ 2,298,111 Noncontrolling Interests Our noncontrolling interests consist of (i) interests in our Operating Partnership which are not owned by us, (ii) interests owned by institutional investors in the consolidated joint venture that owns the Westwood Portfolio (see Note 3 ) (amounting to seventy -percent of the capital interests as of June 30, 2016 ) and (iii) a joint venture investor that owns a 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 June 30, 2016 when we and our Operating Partnership had 149.2 million shares of common stock and 25.8 million OP Units and fully-vested 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 employees and non-employee directors as part of their compensation. These awards generally vest over a 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 attributable to common stockholders and changes in our ownership interest in our Operating Partnership: Six Months Ended June 30, 2016 2015 Net income attributable to common stockholders $ 33,848 $ 32,147 Transfers (to) from noncontrolling interests: Exchange of OP units with noncontrolling interests 11,458 17,203 Repurchase of OP units from noncontrolling interests (498 ) — Net transfers from noncontrolling interests $ 10,960 $ 17,203 Change from net income attributable to common stockholders and transfers from noncontrolling interests $ 44,808 $ 49,350 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 six months ended June 30 : 2016 2015 Beginning balance $ (9,285 ) $ (30,089 ) Other comprehensive loss before reclassifications - derivatives (50,142 ) (5,740 ) Other comprehensive loss before reclassifications - unconsolidated Funds' derivatives (1,149 ) (1,609 ) Reclassifications from AOCI - derivatives (2) 15,569 19,259 Reclassifications from AOCI - unconsolidated Funds' derivatives (3) 224 475 Net current period OCI (35,498 ) 12,385 Less OCI attributable to noncontrolling interests 7,791 (2,155 ) OCI attributable to common stockholders (27,707 ) 10,230 Ending balance $ (36,992 ) $ (19,859 ) ___________________________________________________ (1) See Note 9 for the details of our derivatives and Note 12 for our derivative fair value disclosures. (2) Reclassification as an increase to interest expense. (3) Reclassification as a decrease to income, including depreciation, from unconsolidated real estate funds. Equity Compensation On June 2, 2016, the Douglas Emmett, Inc. 2016 Omnibus Stock Incentive Plan became effective after receiving stockholder approval, superseding our prior plan, the Douglas Emmett, Inc. 2006 Omnibus Stock Incentive Plan. The key terms of the two plans are substantially identical, except for the date of expiration, the number of shares authorized for grants and various technical provisions. Our officers, employees, directors and consultants are eligible to participate in both plans, with grants awarded during June 2016 and onwards awarded under the 2016 Plan, and grants awarded prior to that date awarded under the 2006 Plan and remain outstanding according to their terms. Both plans are administered by the compensation committee of our board of directors. Total net stock-based compensation expense was $2.4 million and $2.0 million for the three months ended June 30, 2016 and 2015 , respectively, and $4.7 million and $3.9 million for the six months ended June 30, 2016 and 2015 , respectively. These amounts are net of capitalized stock-based compensation of $231 thousand and $210 thousand for the three months ended June 30, 2016 and 2015 , respectively, and $448 thousand and $402 thousand for the six months ended June 30, 2016 and 2015 , respectively. The total intrinsic value of options exercised was $100.8 million for the three months ended June 30, 2016 , and $101.9 million and $2.2 million for the six months ended June 30, 2016 and 2015 , respectively. |
EPS
EPS | 6 Months Ended |
Jun. 30, 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 June 30, Six Months Ended June 30, 2016 2015 2016 2015 Numerator (in thousands): Net income attributable to common stockholders $ 18,482 $ 13,448 $ 33,848 $ 32,147 Allocation to participating securities: Unvested LTIP units (101 ) (67 ) (184 ) (165 ) Numerator for the calculation of basic and diluted EPS $ 18,381 $ 13,381 $ 33,664 $ 31,982 Denominator (in thousands): Weighted average shares of common stock outstanding - basic 147,722 145,898 147,479 145,614 Effect of dilutive securities: Stock options (1) 5,083 4,406 4,687 4,440 Weighted average shares of common stock and common stock equivalents outstanding - diluted 152,805 150,304 152,166 150,054 Basic EPS: Net income attributable to common stockholders per share $ 0.124 $ 0.092 $ 0.228 $ 0.220 Diluted EPS: Net income attributable to common stockholders per share $ 0.120 $ 0.089 $ 0.221 $ 0.213 ____________________________________________________ (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 June 30, Six Months Ended June 30, 2016 2015 2016 2015 OP Units 25,114 26,740 25,331 26,627 Vested LTIP Units 807 4 811 351 Unvested LTIP units 679 573 613 539 (2) See Note 17 for information about common stock sales after June 30, 2016 . |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 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 June 30, 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: June 30, 2016 December 31, 2015 Fair value $ 4,376,574 $ 3,691,075 Carrying value $ 4,315,152 $ 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: June 30, 2016 December 31, 2015 Derivative Assets: Fair value - derivatives (1) $ — $ 4,830 Fair value - unconsolidated Funds' derivatives (2) $ — $ 837 Derivative Liabilities: Fair value - derivatives (1) $ 46,052 $ 16,310 Fair value - unconsolidated Funds' derivatives (2) $ 878 $ — ____________________________________________________ (1) Our derivatives 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 our 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 | 6 Months Ended |
Jun. 30, 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 June 30, Six Months Ended June 30, 2016 2015 2016 2015 Office Segment Total office revenues $ 163,096 $ 136,791 $ 307,475 $ 268,247 Office expenses (53,381 ) (46,542 ) (101,264 ) (90,741 ) Office Segment profit 109,715 90,249 206,211 177,506 Multifamily Segment Total multifamily revenues 24,119 23,666 48,312 47,019 Multifamily expenses (5,341 ) (5,930 ) (11,372 ) (11,750 ) Multifamily Segment profit 18,778 17,736 36,940 35,269 Total profit from all segments $ 128,493 $ 107,985 $ 243,151 $ 212,775 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 June 30, Six Months Ended June 30, 2016 2015 2016 2015 Total profit from all segments $ 128,493 $ 107,985 $ 243,151 $ 212,775 General and administrative (9,403 ) (7,473 ) (17,474 ) (14,834 ) Depreciation and amortization (62,568 ) (51,246 ) (118,120 ) (101,080 ) Other income 2,143 2,415 4,232 10,974 Other expenses (1,684 ) (1,619 ) (3,235 ) (3,191 ) Income, including depreciation, from unconsolidated real estate funds 1,644 1,207 3,230 2,650 Interest expense (37,703 ) (35,177 ) (73,363 ) (68,816 ) Acquisition-related expenses (224 ) (198 ) (1,677 ) (488 ) Income before gains 20,698 15,894 36,744 37,990 Gain on sale of investment in real estate 1,082 — 1,082 — Net income 21,780 15,894 37,826 37,990 Less: Net income attributable to noncontrolling interests (3,298 ) (2,446 ) (3,978 ) (5,843 ) Net income attributable to common stockholders $ 18,482 $ 13,448 $ 33,848 $ 32,147 |
Future Minimum Lease Rental Rec
Future Minimum Lease Rental Receipts | 6 Months Ended |
Jun. 30, 2016 | |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
Future Minimum Lease Rental 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 June 30, 2016 : Twelve months ending June 30: 2017 $ 468,767 2018 417,345 2019 347,467 2020 293,830 2021 229,225 Thereafter 630,645 Total future minimum base rentals (1) $ 2,387,279 _____________________________________________________ (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 early termination options held by tenants are not exercised. |
Future Minimum Lease Rental Pay
Future Minimum Lease Rental Payments | 6 Months Ended |
Jun. 30, 2016 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Future Minimum Lease Rental Payments | Future Minimum Lease Rental Payments We incurred ground lease payments of $183 thousand for the three months ended June 30, 2016 and 2015 , and $366 thousand for the six months ended June 30, 2016 and 2015 . The table below presents (in thousands) the future minimum ground lease payments as of June 30, 2016 : Twelve months ending June 30: 2017 $ 733 2018 733 2019 733 2020 733 2021 733 Thereafter 48,010 Total future minimum lease payments (1) $ 51,675 ___________________________________________________ (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 assumes that the rental payments will continue to be $733 thousand per year after February 28, 2019 . |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 6 Months Ended |
Jun. 30, 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 six months ended June 30, 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 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 June 30, 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 Contracts During the first quarter of 2016, we commenced building an additional 475 apartments (net of existing units to be removed) at our Moanalua Hillside Apartments in Honolulu, Hawaii. We expect that the construction will take approximately 18 months and cost approximately $120.0 million , which does not include the cost of the land which we already owned before beginning the project. As of June 30, 2016 , we had a remaining commitment of $114.2 million for a contract directly related to this development project. We also plan to upgrade existing units and improve certain common areas, and as of June 30, 2016 , we had a remaining commitment of $1.8 million for a contract directly related to these upgrades and improvements. 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 June 30, 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 June 30, 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 Variable Interest Rate Swap Maturity Date Swap Fixed Interest Rate Fund X (2) $ 325.0 5/1/2018 LIBOR + 1.75% 5/1/2017 2.35% Partnership X (3) 110.0 3/1/2023 LIBOR + 1.40% 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 June 30, 2016 , assuming a zero-percent LIBOR interest rate during the remaining life of the swap, the maximum future payments under the swap agreement were $1.7 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 June 30, 2016 , assuming a zero-percent LIBOR interest rate during the remaining life of the swap, the maximum future payments under the swap agreement were $4.7 million . |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent events On July 21, 2016, a new joint venture, which we manage and in which we expect to retain a twenty to thirty -percent equity interest, purchased a 365,000 square foot class A multi-tenant office property in Brentwood, Los Angeles, for $225 million , or $616 per square foot. The new joint venture paid a portion of the purchase price with a three year, interest only $90.0 million non-recourse loan bearing interest at LIBOR plus 1.55% which is secured by that office property. During July, 2016, we sold approximately 1.4 million shares of our common stock in open market transactions under our ATM program for net proceeds of $49.8 million after commissions and other expenses. |
Summary Of Significant Accoun25
Summary Of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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. |
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 of 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) disclosure 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 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 are currently evaluating the impact of this ASU. 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 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 April 2016, the FASB issued ASU No. 2016-10, "Identifying Performance Obligations and Licensing" which amends "Revenue from Contracts with Customers" (Topic 606). The ASU provides guidance for identifying performance obligations and licensing. 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 May 2016, the FASB issued ASU No. 2016-12, "Narrow-Scope Improvements and Practical Expedients" which amends "Revenue from Contracts with Customers" (Topic 606). The ASU provides guidance for a variety of revenue recognition related topics. 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 June 2016, the FASB issued ASU No. 2016-13, "Measurement of Credit Losses on Financial Instruments" which amends "Financial Instruments-Credit Losses" (Topic 326). The ASU provides guidance for measuring credit losses on financial instruments. The ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those years, which for us would be the first quarter of 2020, and early adoption is permitted commencing the first quarter of 2019. The amendments in this Update should be applied retrospectively. We are currently evaluating the impact of this ASU. 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. |
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 |
Investment in Real Estate (Tabl
Investment in Real Estate (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Westwood Portfolio [Member] | |
Business Acquisition [Line Items] | |
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 Actual at Closing (1) Pro Forma Sell Down 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 (3) (51,273 ) (51,273 ) Net assets and liabilities acquired (4) $ 1,332,513 $ 1,332,513 Source of funds: Cash on hand (5) $ 153,745 $ — $ 153,745 Credit facility (6) 290,000 (240,000 ) 50,000 Non-recourse term loan, net (7) 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 the Acquisition Date when we contributed sixty -percent of the equity to the consolidated joint venture. (2) Reflects our sale of thirty-percent of the equity in the joint venture on the Sell Down Date, presented as of the Acquisition Date, treated as in-substance real estate, which reduced our ownership interest in the joint venture to thirty -percent. We sold the interest for the $240.0 million we contributed plus an additional $1.1 million to compensate for our costs of holding the investment. We recognized a gain on the sale of $1.1 million . We used the proceeds from the sale to pay down the balance owed on our revolving credit facility. (3) As of the Acquisition Date, the weighted average remaining life of the acquired above-and below-market leases was approximately 4.4 years . (4) The difference between the contract and purchase price related to credits received for prorations and similar matters. (5) 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 our 2015 Form 10-K filing), $67.5 million paid at closing, and $11.2 million spent on loan costs in connection with securing the $580.0 million term loan. (6) Reflects borrowings using the Company's credit facility, which bears interest at LIBOR plus 1.40% . (7) Reflects 100% (not only the Company's pro rata share) of a $580.0 million interest-only non-recourse loan, net of deferred loan costs 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 deferred loan costs will be 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. |
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 $ 32,198 Net income attributable to common stockholders (1) $ 154 ______________________________________________________ (1) Excluding the impact of transaction costs , net income attributable to common stockholders would be $2.1 million . |
Business Acquisition, Pro Forma Information | The table below (in thousands) presents the historical results of Douglas Emmett, Inc. and the Westwood Portfolio on a combined basis as if the acquisition was completed on January 1, 2015, based on our 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 purport to represent what the Company’s results of operations would have been had the acquisition occurred on January 1, 2015, or 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. Six Months Ended June 30, 2016 2015 Pro forma revenues $ 369,114 $ 361,873 Pro forma net income attributable to common stockholders (1) $ 32,698 $ 33,678 Pro forma net income attributable to common stockholders per share – basic $ 0.221 $ 0.230 Pro forma net income attributable to common stockholders per share – diluted $ 0.214 $ 0.223 |
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) N/A 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) | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary Of Acquired Lease Intangibles | The table below (in thousands) summarizes our above/below-market leases: June 30, 2016 December 31, 2015 Above-market tenant leases $ 4,483 $ 4,661 Accumulated amortization - above-market tenant leases (2,543 ) (2,670 ) Below-market ground leases 3,198 3,198 Accumulated amortization - below-market ground leases (744 ) (705 ) Acquired lease intangible assets, net $ 4,394 $ 4,484 Below-market tenant leases $ 146,977 $ 103,327 Accumulated accretion - below-market tenant leases (78,978 ) (78,280 ) Above-market ground leases 4,017 4,017 Accumulated accretion - above-market ground leases (484 ) (459 ) Acquired lease intangible liabilities, net $ 71,532 $ 28,605 |
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 June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net accretion of above/below-market tenant leases (1) $ 5,001 $ 3,202 $ 8,296 $ 6,322 Amortization of a below-market ground lease (2) (4 ) (4 ) (8 ) (8 ) Accretion of above-market ground lease (3) 13 13 26 26 Accretion of an above-market ground lease (4) — — — 6,600 Total $ 5,010 $ 3,211 $ 8,314 $ 12,940 _______________________________________________ (1) Recorded as a net increase to office and multifamily rental revenues. (2) Ground lease from which we earn ground rent income. Recorded as a decrease to office parking and other income. (3) Ground 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 . |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The table below (in thousands) presents the future net accretion of above- and below-market tenant and ground leases at June 30, 2016 : Twelve months ending June 30: Net increase to revenues Decrease to expenses Total 2017 $ 15,651 $ 50 $ 15,701 2018 12,198 50 12,248 2019 11,232 50 11,282 2020 9,427 50 9,477 2021 6,646 50 6,696 Thereafter 8,451 3,283 11,734 Total $ 63,605 $ 3,533 $ 67,138 |
Investments In Unconsolidated28
Investments In Unconsolidated Real Estate Funds (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Real Estate Investments, Net [Abstract] | |
Summary Of Statement Of Operations For Investments In Unconsolidated Real Estate Funds and Cash Received From Funds | The table below presents (in thousands) cash distributions received from our Funds: Six Months Ended June 30, 2016 2015 Cash distributions received from our Funds $ 19,732 $ 4,588 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: June 30, 2016 December 31, 2015 Total assets $ 692,332 $ 691,543 Total liabilities 450,143 389,372 Total equity 242,189 302,171 Six Months Ended June 30, 2016 2015 Total revenues $ 35,237 $ 35,041 Operating income 8,806 7,180 Net income 3,196 1,442 |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Other Assets [Abstract] | |
Schedule Of Other Assets | Other assets consisted of the following (in thousands): June 30, 2016 December 31, 2015 Restricted cash $ 194 $ 194 Prepaid expenses 2,304 6,720 Other indefinite-lived intangible 1,988 1,988 Deposits in escrow 5,000 75,000 Furniture, fixtures and equipment, net 1,293 1,448 Other 2,374 2,370 Total other assets $ 13,153 $ 87,720 |
Secured Notes Payable and Rev30
Secured Notes Payable and Revolving Credit Facility, net (Tables) | 6 Months Ended |
Jun. 30, 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 (1) Principal Balance as of June 30, 2016 Principal Balance as of December 31, 2015 Variable Interest Rate Fixed Interest Rate (2) Swap Maturity Date Wholly Owned Subsidiaries Term Loan 12/24/2016 $ 20,000 $ 20,000 LIBOR + 1.45% N/A -- Term Loan 2/28/2018 1,000 — N/A 3.00% -- Term Loan 4/2/2018 — 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 (3) 8/5/2018 352,994 355,000 N/A 4.14% -- Term Loan (3) 2/1/2019 151,336 152,733 N/A 4.00% -- Term Loan (4) 6/5/2019 285,000 285,000 N/A 3.85% -- Fannie Mae Loan 10/1/2019 145,000 145,000 LIBOR + 1.25% N/A -- Term Loan (5) 3/1/2020 348,602 349,070 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% (7) 2.77% 4/1/2020 Term Loan 7/27/2022 180,000 180,000 LIBOR + 1.45% (7) 3.06% 7/1/2020 Term Loan 11/2/2022 400,000 400,000 LIBOR + 1.35% (7) 2.64% 11/1/2020 Term Loan 6/23/2023 360,000 — LIBOR + 1.55% (7) 2.57% 7/1/2021 Fannie Mae Loan 4/1/2025 102,400 102,400 LIBOR + 1.25% (7) 2.84% 3/1/2020 Fannie Mae Loan 12/1/2025 115,000 115,000 LIBOR + 1.25% (7) 2.76% 12/1/2020 Revolving credit line (6) 8/21/2020 — — LIBOR + 1.40% N/A -- Total Wholly Owned Debt $ 3,719,412 $ 3,618,423 Consolidated Joint Ventures Term Loan 3/1/2017 $ 15,740 $ 15,740 LIBOR + 1.60% N/A -- Term Loan 2/28/2023 580,000 — LIBOR + 1.40% (7) 2.37% 3/1/2021 Total Debt (8) (9) $ 4,315,152 $ 3,634,163 Deferred loan costs, net (10) (34,227 ) (22,887 ) Total Debt, net $ 4,280,925 $ 3,611,276 ___________________________________________________ At June 30, 2016 , the weighted average remaining life, including extension options, of our total consolidated term debt (excluding our revolving credit facility) was 4.8 years . For the $4.13 billion of term debt on which the interest rate was fixed under the terms of the loan or a swap, the weighted average (i) remaining life was 4.8 years , (ii) remaining period during which the interest rate was fixed was 3.0 years , (iii) annual interest rate was 3.31% and (iv) effective interest rate was 3.46% (including the non-cash amortization of deferred loan costs). 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 June 30, 2016 Principal Balance as of December 31, 2015 Aggregate swap fixed rate loans $ 2,995,480 $ 2,492,360 Aggregate fixed rate loans 1,138,932 1,141,803 Aggregate floating rate loans 180,740 — Total Debt $ 4,315,152 $ 3,634,163 (1) Maturity dates include the effect of extension options. (2) Includes the effect of interest rate swaps and excludes the effect of prepaid loan costs. See Note 9 for the details of our interest rate contracts. (3) Requires monthly payments of principal and interest. Principal amortization is based upon a 30 -year amortization schedule. (4) Interest only until February 2017 , with principal amortization thereafter based upon a 30 -year amortization schedule. (5) Interest rate is fixed until March 1, 2018 . Interest-only payments until May 1, 2016 , and principal amortization thereafter based upon a 30 -year amortization schedule. (6) $400.0 million revolving credit facility. Unused commitment fees range from 0.15% to 0.20% . (7) Loan agreement includes a zero-percent LIBOR floor. The corresponding swaps do not include such a floor. (8) See Note 12 for our fair value disclosures. (9) At June 30, 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 June 30: 2017 $ 52,250 2018 358,512 2019 1,293,910 2020 145,000 2021 683,080 Thereafter 1,782,400 Total future principal payments $ 4,315,152 (10) Deferred loan costs are net of accumulated amortization of $15.7 million and $15.2 million at June 30, 2016 and December 31, 2015 , respectively. The table below (in thousands) sets forth loan costs and amortization of deferred loan costs, both of which are included in interest expense in our consolidated statements of operations: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Loan costs $ 808 $ — $ 827 $ — Deferred loan cost amortization 1,916 2,201 3,235 3,974 Total $ 2,724 $ 2,201 $ 4,062 $ 3,974 |
Schedule Of Minimum Future Principal Payments Due On Secured Notes Payable and Revolving Credit Facility | At June 30, 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 June 30: 2017 $ 52,250 2018 358,512 2019 1,293,910 2020 145,000 2021 683,080 Thereafter 1,782,400 Total future principal payments $ 4,315,152 |
Schedule of Loan Costs and Amortization of Deferred Loan Costs | The table below (in thousands) sets forth loan costs and amortization of deferred loan costs, both of which are included in interest expense in our consolidated statements of operations: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Loan costs $ 808 $ — $ 827 $ — Deferred loan cost amortization 1,916 2,201 3,235 3,974 Total $ 2,724 $ 2,201 $ 4,062 $ 3,974 |
Interest Payable, Accounts Pa31
Interest Payable, Accounts Payable and Deferred Revenue (Tables) | 6 Months Ended |
Jun. 30, 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): June 30, 2016 December 31, 2015 Interest payable $ 9,803 $ 10,028 Accounts payable and accrued liabilities 36,201 23,716 Deferred revenue 23,687 23,673 Total interest payable, accounts payable and deferred revenue $ 69,691 $ 57,417 |
Derivative Contracts (Tables)
Derivative Contracts (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Other Derivatives | As of June 30, 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 19 $2,995,480 Unconsolidated Funds' derivatives (2) 2 $435,000 ___________________________________________________ (1) See Note 12 for our derivative fair value disclosures. (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 Liabilities at Fair Value | The fair value of our interest rate swaps in a liability position were as follows (in thousands): Fair value of derivatives in a liability position (1) June 30, 2016 December 31, 2015 Derivatives $ 49,540 $ 19,047 Unconsolidated Funds' derivatives (2) $ 904 $ — __________________________________________________________________________________ (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): Fair value of derivatives in an asset position (1) June 30, 2016 December 31, 2015 Derivatives $ — $ 4,220 Unconsolidated Funds' derivatives (2) $ — $ 737 ___________________________________________________ (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. |
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 six months ended June 30 : 2016 2015 Derivatives Designated as Cash Flow Hedges: Loss recorded in AOCI (effective portion) - derivatives (1)(5) $ (50,142 ) $ (5,740 ) Loss recorded in AOCI (effective portion) - unconsolidated Funds' derivatives (2)(5) $ (1,149 ) $ (1,609 ) Loss reclassified from AOCI (effective portion) - derivatives (3)(5) $ (15,569 ) $ (19,259 ) Loss reclassified from AOCI (effective portion) - unconsolidated Funds' derivatives (4)(5) $ (224 ) $ (475 ) Gain (loss) recorded as interest expense (ineffective portion) (6) $ — $ — Derivatives Not Designated as Cash Flow Hedges: Gain (loss) recorded as interest expense (7) $ — $ — ___________________________________________________ (1) Represents the change in fair value of our interest rate swaps, designated as cash flow hedges, which does not impact the statement of operations. (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 (our share). (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 | At June 30, 2016 , our estimate of the AOCI related to our derivatives and our unconsolidated Funds' derivatives, designated as cash flow hedges, that will be reclassified to earnings during the next twelve months, is presented in the table below (in thousands): Derivatives (1) $ 21,906 Unconsolidated Funds' derivatives (2) $ 330 ________________________________________ (1) Reclassified as an increase to interest expense. (2) Reclassified as a decrease to income, including depreciation, from unconsolidated real estate funds (our share). |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 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 33,848 3,978 37,826 Cash flow hedge fair value adjustments (27,707 ) (7,791 ) (35,498 ) Contributions to consolidated joint venture — 320,000 320,000 Sale of equity interest in consolidated joint venture — 239,971 239,971 Dividends and distributions (65,251 ) (16,787 ) (82,038 ) Exchange of OP units for common stock 11,458 (11,458 ) — Repurchase of OP units (498 ) (328 ) (826 ) Exercise of stock options (52,449 ) — (52,449 ) Stock-based compensation — 5,187 5,187 Balance as of June 30, 2016 $ 1,825,612 $ 888,109 $ 2,713,721 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 32,147 5,843 37,990 Cash flow hedge fair value adjustments 10,230 2,155 12,385 Dividends and distributions (61,352 ) (11,817 ) (73,169 ) Exchange of OP units for common stock 17,203 (17,203 ) — Issuance of OP units for cash — 1,000 1,000 Exercise of stock options 1,823 — 1,823 Stock-based compensation — 4,358 4,358 Balance as of June 30, 2015 $ 1,943,509 $ 354,602 $ 2,298,111 |
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 attributable to common stockholders and changes in our ownership interest in our Operating Partnership: Six Months Ended June 30, 2016 2015 Net income attributable to common stockholders $ 33,848 $ 32,147 Transfers (to) from noncontrolling interests: Exchange of OP units with noncontrolling interests 11,458 17,203 Repurchase of OP units from noncontrolling interests (498 ) — Net transfers from noncontrolling interests $ 10,960 $ 17,203 Change from net income attributable to common stockholders and transfers from noncontrolling interests $ 44,808 $ 49,350 |
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 six months ended June 30 : 2016 2015 Beginning balance $ (9,285 ) $ (30,089 ) Other comprehensive loss before reclassifications - derivatives (50,142 ) (5,740 ) Other comprehensive loss before reclassifications - unconsolidated Funds' derivatives (1,149 ) (1,609 ) Reclassifications from AOCI - derivatives (2) 15,569 19,259 Reclassifications from AOCI - unconsolidated Funds' derivatives (3) 224 475 Net current period OCI (35,498 ) 12,385 Less OCI attributable to noncontrolling interests 7,791 (2,155 ) OCI attributable to common stockholders (27,707 ) 10,230 Ending balance $ (36,992 ) $ (19,859 ) ___________________________________________________ (1) See Note 9 for the details of our derivatives and Note 12 for our derivative fair value disclosures. (2) Reclassification as an increase to interest expense. (3) Reclassification as a decrease to income, including depreciation, from unconsolidated real estate funds. |
EPS (Tables)
EPS (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, Six Months Ended June 30, 2016 2015 2016 2015 Numerator (in thousands): Net income attributable to common stockholders $ 18,482 $ 13,448 $ 33,848 $ 32,147 Allocation to participating securities: Unvested LTIP units (101 ) (67 ) (184 ) (165 ) Numerator for the calculation of basic and diluted EPS $ 18,381 $ 13,381 $ 33,664 $ 31,982 Denominator (in thousands): Weighted average shares of common stock outstanding - basic 147,722 145,898 147,479 145,614 Effect of dilutive securities: Stock options (1) 5,083 4,406 4,687 4,440 Weighted average shares of common stock and common stock equivalents outstanding - diluted 152,805 150,304 152,166 150,054 Basic EPS: Net income attributable to common stockholders per share $ 0.124 $ 0.092 $ 0.228 $ 0.220 Diluted EPS: Net income attributable to common stockholders per share $ 0.120 $ 0.089 $ 0.221 $ 0.213 ____________________________________________________ (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 June 30, Six Months Ended June 30, 2016 2015 2016 2015 OP Units 25,114 26,740 25,331 26,627 Vested LTIP Units 807 4 811 351 Unvested LTIP units 679 573 613 539 (2) See Note 17 for information about common stock sales after June 30, 2016 . |
Fair Value of Financial Instr35
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 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: June 30, 2016 December 31, 2015 Fair value $ 4,376,574 $ 3,691,075 Carrying value $ 4,315,152 $ 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: June 30, 2016 December 31, 2015 Derivative Assets: Fair value - derivatives (1) $ — $ 4,830 Fair value - unconsolidated Funds' derivatives (2) $ — $ 837 Derivative Liabilities: Fair value - derivatives (1) $ 46,052 $ 16,310 Fair value - unconsolidated Funds' derivatives (2) $ 878 $ — ____________________________________________________ (1) Our derivatives 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 our 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) | 6 Months Ended |
Jun. 30, 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 June 30, Six Months Ended June 30, 2016 2015 2016 2015 Office Segment Total office revenues $ 163,096 $ 136,791 $ 307,475 $ 268,247 Office expenses (53,381 ) (46,542 ) (101,264 ) (90,741 ) Office Segment profit 109,715 90,249 206,211 177,506 Multifamily Segment Total multifamily revenues 24,119 23,666 48,312 47,019 Multifamily expenses (5,341 ) (5,930 ) (11,372 ) (11,750 ) Multifamily Segment profit 18,778 17,736 36,940 35,269 Total profit from all segments $ 128,493 $ 107,985 $ 243,151 $ 212,775 |
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 June 30, Six Months Ended June 30, 2016 2015 2016 2015 Total profit from all segments $ 128,493 $ 107,985 $ 243,151 $ 212,775 General and administrative (9,403 ) (7,473 ) (17,474 ) (14,834 ) Depreciation and amortization (62,568 ) (51,246 ) (118,120 ) (101,080 ) Other income 2,143 2,415 4,232 10,974 Other expenses (1,684 ) (1,619 ) (3,235 ) (3,191 ) Income, including depreciation, from unconsolidated real estate funds 1,644 1,207 3,230 2,650 Interest expense (37,703 ) (35,177 ) (73,363 ) (68,816 ) Acquisition-related expenses (224 ) (198 ) (1,677 ) (488 ) Income before gains 20,698 15,894 36,744 37,990 Gain on sale of investment in real estate 1,082 — 1,082 — Net income 21,780 15,894 37,826 37,990 Less: Net income attributable to noncontrolling interests (3,298 ) (2,446 ) (3,978 ) (5,843 ) Net income attributable to common stockholders $ 18,482 $ 13,448 $ 33,848 $ 32,147 |
Future Minimum Lease Rental R37
Future Minimum Lease Rental Receipts (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2016 : Twelve months ending June 30: 2017 $ 468,767 2018 417,345 2019 347,467 2020 293,830 2021 229,225 Thereafter 630,645 Total future minimum base rentals (1) $ 2,387,279 _____________________________________________________ (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 early termination options held by tenants are not exercised. |
Future Minimum Lease Rental P38
Future Minimum Lease Rental Payments (Tables) | 6 Months Ended |
Jun. 30, 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 as of June 30, 2016 : Twelve months ending June 30: 2017 $ 733 2018 733 2019 733 2020 733 2021 733 Thereafter 48,010 Total future minimum lease payments (1) $ 51,675 ___________________________________________________ (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 assumes 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) | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Debt Related to Unconsolidated Funds | The table below summarizes the debt of our Funds as of June 30, 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 Variable Interest Rate Swap Maturity Date Swap Fixed Interest Rate Fund X (2) $ 325.0 5/1/2018 LIBOR + 1.75% 5/1/2017 2.35% Partnership X (3) 110.0 3/1/2023 LIBOR + 1.40% 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 June 30, 2016 , assuming a zero-percent LIBOR interest rate during the remaining life of the swap, the maximum future payments under the swap agreement were $1.7 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 June 30, 2016 , assuming a zero-percent LIBOR interest rate during the remaining life of the swap, the maximum future payments under the swap agreement were $4.7 million . |
Overview (Details)
Overview (Details) $ in Millions | 6 Months Ended |
Jun. 30, 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 | $ 1,420 |
Variable interest entity, assets related to real estate held for investment | 1,370 |
Variable interest entity, liabilities | 631.6 |
Variable interest entity, equity | 789.1 |
Variable interest entity, equity, portion attributable to noncontrolling interest | $ 550.3 |
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 ($) | Jun. 30, 2016USD ($)ft²office_property | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Jun. 30, 2016USD ($)ft²office_property | Jun. 30, 2015USD ($)property | Dec. 31, 2015USD ($) |
Real Estate Acquisition [Line Items] | |||||||||
Number of office properties acquired | office_property | 66 | 66 | |||||||
Number of acquisitions | property | 2 | ||||||||
Net accretion of acquired lease intangibles | $ (5,010) | $ (3,211) | $ (8,314) | $ (12,940) | |||||
Real estate held for sale | $ 42,591 | $ 42,591 | $ 42,943 | ||||||
Harbor Court Land [Member] | |||||||||
Real Estate Acquisition [Line Items] | |||||||||
Price of real estate acquired | $ 27,500 | ||||||||
Office Building [Member] | Sherman Oaks [Member] | |||||||||
Real Estate Acquisition [Line Items] | |||||||||
Area of real estate property | ft² | 168,000 | 168,000 | |||||||
Fair value of real estate held for sale | $ 56,700 | $ 56,700 | |||||||
Above Market Ground Leases [Member] | Other Income [Member] | |||||||||
Real Estate Acquisition [Line Items] | |||||||||
Net accretion of acquired lease intangibles | $ 0 | $ 0 | $ (6,600) | $ 0 | $ 6,600 | ||||
Westwood Portfolio [Member] | |||||||||
Real Estate Acquisition [Line Items] | |||||||||
Ownership interest | 30.00% | 30.00% | |||||||
Net income excluding transaction costs | $ 2,100 | ||||||||
Westwood Portfolio [Member] | Joint Venture [Member] | |||||||||
Real Estate Acquisition [Line Items] | |||||||||
Contract price | $ 1,340,000 | ||||||||
Acquisition price (in dollars per square foot) | $ / ft² | 777 | ||||||||
Price of real estate acquired | $ 153,745 | $ 153,745 | |||||||
Area of real estate property | ft² | 1,725,000 | 1,725,000 | 1,725,000 | ||||||
Westwood Portfolio [Member] | Joint Venture [Member] | Office Building [Member] | |||||||||
Real Estate Acquisition [Line Items] | |||||||||
Number of office properties acquired | property | 4 | ||||||||
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 |
Investment in Real Estate - Sum
Investment in Real Estate - Summary of Preliminary Purchase Accounting and Funding Sources for the Acquisition (Details) $ in Thousands | May 31, 2016USD ($) | Feb. 29, 2016USD ($)ft² | Jun. 30, 2016USD ($)ft² | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)ft² | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) |
Source of funds: | |||||||
Credit facility | $ 4,315,152 | $ 4,315,152 | $ 3,634,163 | ||||
Long-term debt | 4,280,925 | 4,280,925 | 3,611,276 | ||||
Gain on sale of investment in real estate | 1,082 | $ 0 | 1,082 | $ 0 | |||
Deposits in escrow | $ 5,000 | $ 5,000 | 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 | 1,725,000 | 1,725,000 | ||||
Uses of funds - Investment in real estate: | |||||||
Land | $ 95,127 | $ 95,127 | $ 95,127 | ||||
Buildings and improvements | 1,238,162 | 1,238,162 | 1,238,162 | ||||
Tenant improvements and lease intangibles | 50,497 | 50,497 | 50,497 | ||||
Acquired above and below-market leases, net(3) | (51,273) | (51,273) | (51,273) | ||||
Net assets and liabilities acquired | 1,332,513 | 1,332,513 | 1,332,513 | ||||
Source of funds: | |||||||
Cash on hand | 153,745 | 153,745 | |||||
Noncontrolling interests | 320,000 | 560,000 | |||||
Total source of funds | $ 1,332,513 | 1,332,513 | |||||
Percentage of equity contributed in joint venture | 30.00% | 60.00% | |||||
Noncontrolling interest, ownership percentage by parent | 30.00% | ||||||
Proceeds from sale of interest in joint venture | $ 240,000 | ||||||
Additional proceeds for compensation of costs | $ 1,100 | ||||||
Gain on sale of investment in real estate | 1,082 | ||||||
Weighted average useful live of above and below market leases | 4 years 5 months | ||||||
Cash paid at closing | $ 67,500 | ||||||
Joint Venture [Member] | Westwood Portfolio [Member] | Line of Credit [Member] | |||||||
Source of funds: | |||||||
Credit facility | 290,000 | 50,000 | 50,000 | ||||
Joint Venture [Member] | Westwood Portfolio [Member] | Secured Debt [Member] | |||||||
Source of funds: | |||||||
Long-term debt | 568,768 | 568,768 | 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: | |||||||
Credit facility | $ (240,000) | ||||||
Term Loan with Maturity Date of February 28, 2023 [Member] | Joint Venture [Member] | Secured Debt [Member] | |||||||
Source of funds: | |||||||
Credit facility | $ 580,000 | 580,000 | $ 0 | ||||
Loan costs | $ 11,200 | ||||||
Debt instrument, term | 7 years | ||||||
Fixed Interest Rate | 2.37% | 2.37% | |||||
Fixed interest rate, term | 5 years | ||||||
LIBOR [Member] | Joint Venture [Member] | Westwood Portfolio [Member] | Secured Debt [Member] | |||||||
Source of funds: | |||||||
Basis spread | 1.40% | ||||||
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 | Feb. 29, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 |
Business Acquisition [Line Items] | |||||
Total office revenues | $ 163,096 | $ 136,791 | $ 307,475 | $ 268,247 | |
Net income attributable to common stockholders(1) | $ 18,482 | $ 13,448 | $ 33,848 | $ 32,147 | |
Westwood Portfolio [Member] | |||||
Business Acquisition [Line Items] | |||||
Total office revenues | $ 32,198 | ||||
Net income attributable to common stockholders(1) | $ 154 |
Investment in Real Estate - Pro
Investment in Real Estate - Pro Forma Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Business Acquisition [Line Items] | |||||
Net accretion of acquired lease intangibles | $ 5,010 | $ 3,211 | $ 8,314 | $ 12,940 | |
Other Income [Member] | Above Market Ground Leases [Member] | |||||
Business Acquisition [Line Items] | |||||
Net accretion of acquired lease intangibles | $ 0 | $ 0 | $ 6,600 | 0 | (6,600) |
Westwood Portfolio [Member] | |||||
Business Acquisition [Line Items] | |||||
Pro forma revenues | 369,114 | 361,873 | |||
Pro forma net income attributable to common stockholders | $ 32,698 | $ 33,678 | |||
Pro forma net income attributable to common stockholders per share – basic (in dollars per share) | $ 0.00221 | $ 0.00230 | |||
Pro forma net income attributable to common stockholders per share – diluted (in dollars per share) | $ 0.00214 | $ 0.00223 |
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 | 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 | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Acquired lease intangible assets, net | $ 4,394 | $ 4,394 | $ 4,484 | |||
Acquired lease intangible liabilities, net | 71,532 | 71,532 | 28,605 | |||
Amortization/accretion of above/below-market leases | 5,010 | $ 3,211 | 8,314 | $ 12,940 | ||
Tenant Lease [Member] | Operating Lease Revenue [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Amortization/accretion of above/below-market leases | 5,001 | 3,202 | 8,296 | 6,322 | ||
Above Market Tenant Leases [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Off-market lease, assets | 4,483 | 4,483 | 4,661 | |||
Accumulated amortization | (2,543) | (2,543) | (2,670) | |||
Below Market Tenant Leases [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Off-market lease, liabilities | 146,977 | 146,977 | 103,327 | |||
Accumulated accretion | (78,978) | (78,978) | (78,280) | |||
Below Market Ground Leases [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Off-market lease, assets | 3,198 | 3,198 | 3,198 | |||
Accumulated amortization | (744) | (744) | (705) | |||
Above Market Ground Leases [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Off-market lease, liabilities | 4,017 | 4,017 | 4,017 | |||
Accumulated accretion | (484) | (484) | $ (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) | (8) | (8) | ||
Above Market Ground Leases [Member] | Office Expense [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Amortization/accretion of above/below-market leases | 13 | 13 | 26 | 26 | ||
Above Market Ground Leases [Member] | Other Income [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Amortization/accretion of above/below-market leases | $ 0 | $ 0 | $ 6,600 | $ 0 | $ (6,600) |
Acquired Lease Intangibles Futu
Acquired Lease Intangibles Future Net Accretion (Details) $ in Thousands | Jun. 30, 2016USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
Net accretion revenue, next twelve months | $ 15,701 |
Net accretion revenue, year two | 12,248 |
Net accretion revenue, year three | 11,282 |
Net accretion revenue, year four | 9,477 |
Net accretion revenue, year five | 6,696 |
Net accretion revenue, thereafter | 11,734 |
Net accretion revenue, total | 67,138 |
Sales Revenue, Net [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Net accretion revenue, next twelve months | 15,651 |
Net accretion revenue, year two | 12,198 |
Net accretion revenue, year three | 11,232 |
Net accretion revenue, year four | 9,427 |
Net accretion revenue, year five | 6,646 |
Net accretion revenue, thereafter | 8,451 |
Net accretion revenue, total | 63,605 |
Operating Expense [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Net accretion revenue, next twelve months | 50 |
Net accretion revenue, year two | 50 |
Net accretion revenue, year three | 50 |
Net accretion revenue, year four | 50 |
Net accretion revenue, year five | 50 |
Net accretion revenue, thereafter | 3,283 |
Net accretion revenue, total | $ 3,533 |
Investments In Unconsolidated48
Investments In Unconsolidated Real Estate Funds - Narrative (Details) ft² in Millions, $ in Millions | 6 Months Ended | |||
Jun. 30, 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% | |||
Fund X [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Due from related parties | $ | $ 0.3 | $ 2.9 | ||
Fund X [Member] | LIBOR [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Basis spread | 2.50% | |||
Partnership X [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Due from related parties | $ | $ 0.5 | $ 0.5 | ||
Partnership X [Member] | LIBOR [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Variable rate | LIBOR plus 2.5% | |||
Basis spread | 2.50% | |||
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 | |||
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 |
Investments In Unconsolidated49
Investments In Unconsolidated Real Estate Funds - Summary of Cash Distributions Received from Funds (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Real Estate Investments, Net [Abstract] | ||
Cash distributions received from our Funds | $ 19,732 | $ 4,588 |
Investments In Unconsolidated50
Investments In Unconsolidated Real Estate Funds - Summary Of Statement Of Financial Position For Investments In Unconsolidated Real Estate Funds (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Real Estate Investments, Net [Abstract] | ||
Total assets | $ 692,332 | $ 691,543 |
Total liabilities | 450,143 | 389,372 |
Total equity | $ 242,189 | $ 302,171 |
Investments In Unconsolidated51
Investments In Unconsolidated Real Estate Funds - Summary Of Statement Of Operations For Investments In Unconsolidated Real Estate Funds (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Real Estate Investments, Net [Abstract] | ||
Total revenues | $ 35,237 | $ 35,041 |
Operating income | 8,806 | 7,180 |
Net income | $ 3,196 | $ 1,442 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Other Assets [Abstract] | ||
Restricted cash | $ 194 | $ 194 |
Prepaid expenses | 2,304 | 6,720 |
Other indefinite-lived intangible | 1,988 | 1,988 |
Deposits in escrow | 5,000 | 75,000 |
Furniture, fixtures and equipment, net | 1,293 | 1,448 |
Other | 2,374 | 2,370 |
Total other assets | $ 13,153 | $ 87,720 |
Secured Notes Payable and Rev53
Secured Notes Payable and Revolving Credit Facility, net - Schedule Of Secured Notes Payable and Revolving Credit Facility (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Total Debt | $ 4,315,152,000 | $ 3,634,163,000 |
Deferred loan costs, net | (34,227,000) | (22,887,000) |
Total Debt, Net | $ 4,280,925,000 | 3,611,276,000 |
Weighted average remaining life of outstanding term debt (in years) | 4 years 9 months | |
Debt at fixed interest rate | $ 4,130,000,000 | |
Weighted average remaining life of interest rate swaps and fixed rate debt (in years) | 4 years 10 months | |
Weighted average annual interest rate (as a percent) | 3.31% | |
Weighted average effective interest rate, including non-cash amortization of deferred loan costs (as a percent) | 3.46% | |
Accumulated amortization | $ 15,700,000 | 15,200,000 |
Wholly Owned Subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | $ 3,719,412,000 | 3,618,423,000 |
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 | |
Revolving Credit Facility With Maturity Date 8/21/20 [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Unused commitment fees (as a percent) | 0.15% | |
Revolving Credit Facility With Maturity Date 8/21/20 [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Unused commitment fees (as a percent) | 0.20% | |
Effective Fixed Rate Loans [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | $ 2,995,480,000 | 2,492,360,000 |
Aggregate Fixed Rate Loans [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | $ 1,138,932,000 | 1,141,803,000 |
Weighted average remaining period during which interest was fixed (in years) | 3 years | |
Variable Rate Loans [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | $ 180,740,000 | 0 |
Secured Debt [Member] | Term Loan, Maturity Date December 24, 2016 [Member] | Wholly Owned Subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | Dec. 24, 2016 | |
Total Debt | $ 20,000,000 | 20,000,000 |
Variable Interest Rate | LIBOR + 1.45% | |
Secured Debt [Member] | Term Loan, Maturity Date December 24, 2016 [Member] | Wholly Owned Subsidiaries [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread | 1.45% | |
Secured Debt [Member] | Term Loan With Effective Annual Fixed Interest Rate At Three Percentage [Member] [Member] | Wholly Owned Subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | Feb. 28, 2018 | |
Total Debt | $ 1,000,000 | 0 |
Variable Interest Rate | N/A | |
Fixed Interest Rate | 3.00% | |
Secured Debt [Member] | Term Loan With Effective Annual Fixed Interest Rate At Four Point One Two Percentage [Member] | Wholly Owned Subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | Apr. 2, 2018 | |
Total Debt | $ 0 | 256,140,000 |
Variable Interest Rate | LIBOR + 2.00% | |
Fixed Interest Rate | 4.12% | |
Swap Maturity Date | Apr. 1, 2016 | |
Secured Debt [Member] | Term Loan With Effective Annual Fixed Interest Rate At Four Point One Two Percentage [Member] | Wholly Owned Subsidiaries [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread | 2.00% | |
Secured Debt [Member] | Term Loan With Effective Annual Fixed Interest Rate At Three Point Seven Four Percentage [Member] | Wholly Owned Subsidiaries [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] | Term Loan With Effective Annual Fixed Interest Rate At Three Point Seven Four Percentage [Member] | Wholly Owned Subsidiaries [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread | 1.70% | |
Secured Debt [Member] | Term Loan With Effective Annual Fixed Interest Rate At Four Point One Four Percentage [Member] | Wholly Owned Subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | Aug. 5, 2018 | |
Total Debt | $ 352,994,000 | 355,000,000 |
Fixed Interest Rate | 4.14% | |
Secured Debt [Member] | Term Loan With Effective Annual Fixed Interest Rate At Four Point Zero Zero Percentage [Member] | Wholly Owned Subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | Feb. 1, 2019 | |
Total Debt | $ 151,336,000 | 152,733,000 |
Fixed Interest Rate | 4.00% | |
Secured Debt [Member] | Long term Fixed Rate Debt with effective interest rate of 385 bps [Member] | Wholly Owned Subsidiaries [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] | Fannie Mae Loans, Maturity Date October 1, 2019 [Member] | Wholly Owned Subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | Oct. 1, 2019 | |
Total Debt | $ 145,000,000 | 145,000,000 |
Variable Interest Rate | LIBOR + 1.25% | |
Secured Debt [Member] | Fannie Mae Loans, Maturity Date October 1, 2019 [Member] | Wholly Owned Subsidiaries [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread | 1.25% | |
Secured Debt [Member] | Term Loan With Effective Annual Fixed Interest Rate At Four Point Four Six Percentage [Member] | Wholly Owned Subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | Mar. 1, 2020 | |
Total Debt | $ 348,602,000 | 349,070,000 |
Fixed Interest Rate | 4.46% | |
Secured Debt [Member] | Entity One Rate Six With Effective Annual Fixed Interest Rate At Three Point Six Five Percentage [Member] | Wholly Owned Subsidiaries [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] | Entity One Rate Six With Effective Annual Fixed Interest Rate At Three Point Six Five Percentage [Member] | Wholly Owned Subsidiaries [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread | 1.65% | |
Secured Debt [Member] | Term Loan With Maturity Date Of 04152022 [Member] | Wholly Owned Subsidiaries [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] | Term Loan With Maturity Date Of 04152022 [Member] | Wholly Owned Subsidiaries [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread | 1.40% | |
Secured Debt [Member] | Term Loan With Effective Annual Fixed Interest Rate At Three Point Zero Six Percentage [Member] | Wholly Owned Subsidiaries [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] | Term Loan With Effective Annual Fixed Interest Rate At Three Point Zero Six Percentage [Member] | Wholly Owned Subsidiaries [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread | 1.45% | |
Secured Debt [Member] | Term Loan, Fixed Interest rate of 2.64% [Member] | Wholly Owned Subsidiaries [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] | Term Loan, Fixed Interest rate of 2.64% [Member] | Wholly Owned Subsidiaries [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread | 1.35% | |
Secured Debt [Member] | Term Loan With Effective Annual Fixed Interest Rate At Two Point Five Seven Percentage [Member] | Wholly Owned Subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | Jun. 23, 2023 | |
Total Debt | $ 360,000,000 | 0 |
Variable Interest Rate | LIBOR + 1.55% | |
Fixed Interest Rate | 2.57% | |
Swap Maturity Date | Jul. 1, 2021 | |
Secured Debt [Member] | Term Loan With Effective Annual Fixed Interest Rate At Two Point Five Seven Percentage [Member] | Wholly Owned Subsidiaries [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread | 1.55% | |
Secured Debt [Member] | Fannie Mae Loan With Maturity Date Of April 1, 2025 [Member] | Wholly Owned Subsidiaries [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] | Fannie Mae Loan With Maturity Date Of April 1, 2025 [Member] | Wholly Owned Subsidiaries [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread | 1.25% | |
Secured Debt [Member] | Fannie Mae Loan with Maturity Date of December 1, 2020 [Member] | Wholly Owned Subsidiaries [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] | Fannie Mae Loan with Maturity Date of December 1, 2020 [Member] | Wholly Owned Subsidiaries [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread | 1.25% | |
Secured Debt [Member] | Term Loan With Maturity Date 3/1/2017 [Member] | Consolidated Joint Ventures [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | Mar. 1, 2017 | |
Total Debt | $ 15,740,000 | 15,740,000 |
Variable Interest Rate | LIBOR + 1.60% | |
Secured Debt [Member] | Term Loan With Maturity Date 3/1/2017 [Member] | Consolidated Joint Ventures [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread | 1.60% | |
Secured Debt [Member] | Term Loan with Maturity Date of February 28, 2023 [Member] | Consolidated Joint Ventures [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] | Term Loan with Maturity Date of February 28, 2023 [Member] | Consolidated Joint Ventures [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread | 1.40% | |
Secured Debt [Member] | Term Loan with Maturity Date of February 28, 2023 [Member] | Consolidated Joint Ventures [Member] | Minimum [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread | 0.00% | |
Line of Credit [Member] | Revolving Credit Facility With Maturity Date 8/21/20 [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread | 1.40% | |
Line of Credit [Member] | Revolving Credit Facility With Maturity Date 8/21/20 [Member] | Wholly Owned Subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | Aug. 21, 2020 | |
Total Debt | $ 0 | $ 0 |
Variable Interest Rate | LIBOR + 1.40% | |
Line of Credit [Member] | Revolving Credit Facility With Maturity Date 8/21/20 [Member] | Wholly Owned Subsidiaries [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread | 1.40% |
Secured Notes Payable and Rev54
Secured Notes Payable and Revolving Credit Facility, net - Schedule Of Minimum Future Principal Payments Due On Secured Notes Payable (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Secured Debt [Abstract] | ||
2,017 | $ 52,250 | |
2,018 | 358,512 | |
2,019 | 1,293,910 | |
2,020 | 145,000 | |
2,021 | 683,080 | |
Thereafter | 1,782,400 | |
Total future principal payments | $ 4,315,152 | $ 3,634,163 |
Secured Notes Payable and Rev55
Secured Notes Payable and Revolving Credit Facility, net Schedule of Loan Costs and Deferred Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||||
Deferred loan cost amortization | $ 3,235 | $ 3,974 | |||
Accumulated amortization | $ 15,700 | 15,700 | $ 15,200 | ||
Interest Expense [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan costs | 808 | $ 0 | 827 | 0 | |
Deferred loan cost amortization | 1,916 | 2,201 | 3,235 | 3,974 | |
Total | $ 2,724 | $ 2,201 | $ 4,062 | $ 3,974 |
Interest Payable, Accounts Pa56
Interest Payable, Accounts Payable and Deferred Revenue (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Interest payable | $ 9,803 | $ 10,028 |
Accounts payable and accrued liabilities | 36,201 | 23,716 |
Deferred revenue | 23,687 | 23,673 |
Total interest payable, accounts payable and deferred revenue | $ 69,691 | $ 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 | Jun. 30, 2016USD ($)instrument |
Derivative [Line Items] | |
Number of Instruments | instrument | 19 |
Notional | $ | $ 2,995,480 |
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) - Cash Flow Hedging [Member] - Derivatives Designated as Cash Flow Hedges [Member] - Interest Rate Swap [Member] - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value derivatives in a liability position | $ 49,540 | $ 19,047 |
Fund X [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value derivatives in a liability position | $ 904 | $ 0 |
Percent of notional amount related to the Fund | 100.00% |
Derivative Contracts - Counterp
Derivative Contracts - Counterparty Credit Risk (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value - derivatives | $ 0 | $ 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 | 0 | 4,220 |
Interest Rate Swap [Member] | Derivatives Designated as Cash Flow Hedges [Member] | Cash Flow Hedging [Member] | Fund X [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value - derivatives | $ 0 | $ 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) - Cash Flow Hedging [Member] - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Derivatives Designated as Cash Flow Hedges [Member] | ||
Derivative [Line Items] | ||
Loss recorded in AOCI (effective portion) | $ (50,142) | $ (5,740) |
Loss reclassified from AOCI (effective portion) | (15,569) | (19,259) |
Derivatives Designated as Cash Flow Hedges [Member] | Interest Expense [Member] | ||
Derivative [Line Items] | ||
Gain (loss) recorded as interest expense (ineffective portion) | 0 | 0 |
Derivatives Designated as Cash Flow Hedges [Member] | Fund X [Member] | ||
Derivative [Line Items] | ||
Loss recorded in AOCI (effective portion) | (1,149) | (1,609) |
Loss reclassified from AOCI (effective portion) | (224) | (475) |
Derivatives Not Designated as Cash Flow Hedges [Member] | Interest Expense [Member] | ||
Derivative [Line Items] | ||
Gain (loss) recorded as interest expense | $ 0 | $ 0 |
Derivative Contracts - Future R
Derivative Contracts - Future Reclassifications from AOCI (Details) $ in Thousands | Jun. 30, 2016USD ($) |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative designated as cash flow hedge to be reclassified | $ 21,906 |
Fund X [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative designated as cash flow hedge to be reclassified | $ 330 |
Equity - Narrative (Details)
Equity - Narrative (Details) $ / shares in Units, $ in Thousands | 6 Months Ended | |||
Jun. 30, 2016USD ($)office_property$ / sharesshares | Jun. 30, 2015USD ($)$ / sharesshares | Mar. 31, 2016 | Dec. 31, 2015USD ($)shares | |
Schedule of Equity Method Investments [Line Items] | ||||
Number of operating partnership units converted to shares of common stock | 869,000 | 1,300,000 | ||
Number of shares of common stock issued upon redemption of one OP unit | 1 | |||
Partners capital account, units redeemed | 25,000 | |||
Repurchase of OP units | $ | $ 826 | |||
Average purchase price of options (usd per share) | $ / shares | $ 33.05 | |||
Shares issued | 1,400,000 | 136,000 | ||
Number of stock options exercised | 7,500,000 | |||
Investment in unconsolidated real estate | $ | $ 145,999 | $ 164,631 | ||
Purchase price of stock options | $ | $ 1,800 | |||
Exercises in period, average price (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 | |||
Common stock, shares outstanding (in shares) | 149,214,897 | 146,919,187 | ||
Number of OP units and fully-vested LTIP units outstanding | 25,800,000 | |||
Investor [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investment in unconsolidated real estate | $ | $ 241,100 | |||
Ownership interest in joint venture | 30.00% | 60.00% | ||
Joint Venture [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Noncontrolling interest, ownership percentage by noncontrolling owners | 70.00% | |||
Partnership Interest [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Noncontrolling interest, ownership percentage by noncontrolling owners | 15.00% | |||
HAWAII | Joint Venture [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Noncontrolling interest, ownership percentage by noncontrolling owners | 33.33% |
Equity - Condensed Consolidated
Equity - Condensed Consolidated Statements Of Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
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 | $ 18,482 | $ 13,448 | 33,848 | 32,147 |
Noncontrolling Interests, Net Income | 3,298 | 2,446 | 3,978 | 5,843 |
Net income | 21,780 | 15,894 | 37,826 | 37,990 |
Cash flow hedge fair value adjustment | (14,890) | 11,367 | (35,498) | 12,385 |
Contributions | 320,000 | |||
Sale of equity interest in consolidated joint venture | 239,971 | |||
Dividends and distributions | (65,252) | (61,352) | ||
Dividends and distributions | (82,038) | (73,169) | ||
Common stock issued in exchange for OP Units | 0 | 0 | ||
Repurchase of OP units | 826 | |||
Issuance of OP units for cash | 0 | 1,000 | ||
Exercise of stock options | (52,449) | 1,823 | ||
Stock-based compensation | 5,187 | 4,358 | ||
Douglas Emmett, Inc. Stockholders' Equity, Ending Balance | 1,825,612 | 1,825,612 | ||
Noncontrolling Interests, Ending Balance | 888,109 | 888,109 | ||
Total Equity, Ending Balance | 2,713,721 | 2,298,111 | 2,713,721 | 2,298,111 |
Douglas Emmett Inc Stockholders Equity [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Douglas Emmett, Inc. Stockholders' Equity, Beginning Balance | 1,926,211 | 1,943,458 | ||
Net income attributable to common stockholders | 33,848 | 32,147 | ||
Cash flow hedge fair value adjustment | (27,707) | 10,230 | ||
Contributions | 0 | |||
Dividends and distributions | (65,251) | (61,352) | ||
Common stock issued in exchange for OP Units | 11,458 | 17,203 | ||
Repurchase of OP units | 498 | |||
Issuance of OP units for cash | 0 | |||
Exercise of stock options | (52,449) | 1,823 | ||
Stock-based compensation | 0 | 0 | ||
Douglas Emmett, Inc. Stockholders' Equity, Ending Balance | 1,825,612 | 1,943,509 | 1,825,612 | 1,943,509 |
Noncontrolling Interest [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Noncontrolling Interests, Beginning Balance | 355,337 | 370,266 | ||
Noncontrolling Interests, Net Income | 3,978 | 5,843 | ||
Cash flow hedge fair value adjustment | (7,791) | 2,155 | ||
Contributions | 320,000 | |||
Sale of equity interest in consolidated joint venture | 239,971 | |||
Dividends and distributions | (16,787) | (11,817) | ||
Common stock issued in exchange for OP Units | (11,458) | (17,203) | ||
Repurchase of OP units | 328 | |||
Issuance of OP units for cash | 1,000 | |||
Exercise of stock options | 0 | 0 | ||
Stock-based compensation | 5,187 | 4,358 | ||
Noncontrolling Interests, Ending Balance | $ 888,109 | $ 354,602 | $ 888,109 | $ 354,602 |
Equity - Net Income Attributabl
Equity - Net Income Attributable To Common Stockholders And Transfers (To) From Noncontrolling Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Stockholders' Equity Note [Abstract] | ||||
Net income attributable to common stockholders | $ 18,482 | $ 13,448 | $ 33,848 | $ 32,147 |
Exchange of OP units with noncontrolling interests | 11,458 | 17,203 | ||
Repurchase of OP units from noncontrolling interests | (498) | 0 | ||
Net transfers from noncontrolling interests | 10,960 | 17,203 | ||
Change from net income attributable to common stockholders and transfers from noncontrolling interests | $ 44,808 | $ 49,350 |
Equity - Accumulated Other Comp
Equity - Accumulated Other Comprehensive Income Schedule (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | $ (9,285) | |||
Net current period OCI | $ (14,890) | $ 11,367 | (35,498) | $ 12,385 |
Ending balance | (36,992) | (36,992) | ||
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 | (50,142) | (5,740) | ||
Reclassifications from AOCI | 15,569 | 19,259 | ||
Net current period OCI | (35,498) | 12,385 | ||
Less OCI attributable to noncontrolling interests | 7,791 | (2,155) | ||
OCI attributable to common stockholders | (27,707) | 10,230 | ||
Ending balance | $ (36,992) | $ (19,859) | (36,992) | (19,859) |
Cash Flow Hedging [Member] | Fund X [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Other comprehensive loss before reclassifications | (1,149) | (1,609) | ||
Reclassifications from AOCI | $ 224 | $ 475 |
Equity - Equity Compensation (D
Equity - Equity Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Stockholders' Equity Note [Abstract] | ||||
Amortization of stock-based compensation | $ 2,400 | $ 2,000 | $ 4,739 | $ 3,935 |
Capitalized stock-based compensation for improvements to real estate and developments | 231 | $ 210 | 448 | 402 |
Intrinsic value of options exercised | $ 100,800 | $ 101,900 | $ 2,200 |
EPS (Details)
EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to common stockholders | $ 18,482 | $ 13,448 | $ 33,848 | $ 32,147 |
Allocation to participating securities: Unvested LTIP units | (101) | (67) | (184) | (165) |
Numerator for the calculation of basic and diluted EPS | $ 18,381 | $ 13,381 | $ 33,664 | $ 31,982 |
Weighted average shares of common stock outstanding - basic (in shares) | 147,722 | 145,898 | 147,479 | 145,614 |
Effect of dilutive securities: Stock options (in shares) | 5,083 | 4,406 | 4,687 | 4,440 |
Weighted average shares of common stock and common stock equivalents outstanding - diluted (in shares) | 152,805 | 150,304 | 152,166 | 150,054 |
Basic EPS: | ||||
Net income attributable to common stockholders per share (usd per share) | $ 0.124 | $ 0.092 | $ 0.228 | $ 0.220 |
Diluted EPS: | ||||
Net income attributable to common stockholders per share (usd per share) | $ 0.120 | $ 0.089 | $ 0.221 | $ 0.213 |
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 (in shares) | 25,114 | 26,740 | 25,331 | 26,627 |
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 (in shares) | 807 | 4 | 811 | 351 |
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 (in shares) | 679 | 573 | 613 | 539 |
Fair Value of Financial Instr68
Fair Value of Financial Instruments - Estimated Fair Value of Secured Notes Payable (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value Disclosures [Abstract] | ||
Fair value | $ 4,376,574 | $ 3,691,075 |
Carrying value | $ 4,315,152 | $ 3,634,163 |
Fair Value of Financial Instr69
Fair Value of Financial Instruments - Fair Value Table (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Derivative Assets: | ||
Fair value - derivatives | $ 0 | $ 4,830 |
Derivative Liabilities: | ||
Fair value - derivatives | $ 46,052 | 16,310 |
Fund X [Member] | Interest Rate Swap [Member] | ||
Derivative Liabilities: | ||
Percent of notional amount related to the Fund | 100.00% | |
Level 2 | ||
Derivative Assets: | ||
Fair value - derivatives | $ 0 | 4,830 |
Derivative Liabilities: | ||
Fair value - derivatives | 46,052 | 16,310 |
Level 2 | Fund X [Member] | ||
Derivative Assets: | ||
Fair value - unconsolidated Funds' derivatives | 0 | 837 |
Derivative Liabilities: | ||
Fair value - unconsolidated Funds' derivatives | $ 878 | $ 0 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 6 Months Ended |
Jun. 30, 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 | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Total office revenues | $ 163,096 | $ 136,791 | $ 307,475 | $ 268,247 |
Office expenses | (53,381) | (46,542) | (101,264) | (90,741) |
Total multifamily revenues | 24,119 | 23,666 | 48,312 | 47,019 |
Multifamily expenses | (5,341) | (5,930) | (11,372) | (11,750) |
Segment profit | 128,493 | 107,985 | 243,151 | 212,775 |
Office Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total office revenues | 163,096 | 136,791 | 307,475 | 268,247 |
Office expenses | (53,381) | (46,542) | (101,264) | (90,741) |
Segment profit | 109,715 | 90,249 | 206,211 | 177,506 |
Multifamily Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total multifamily revenues | 24,119 | 23,666 | 48,312 | 47,019 |
Multifamily expenses | (5,341) | (5,930) | (11,372) | (11,750) |
Segment profit | $ 18,778 | $ 17,736 | $ 36,940 | $ 35,269 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation Of Segment Profit To Net Income Attributable To Common Stockholders (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting [Abstract] | ||||
Total profit from all segments | $ 128,493 | $ 107,985 | $ 243,151 | $ 212,775 |
General and administrative | (9,403) | (7,473) | (17,474) | (14,834) |
Depreciation and amortization | (62,568) | (51,246) | (118,120) | (101,080) |
Other income | 2,143 | 2,415 | 4,232 | 10,974 |
Other expenses | (1,684) | (1,619) | (3,235) | (3,191) |
Income, including depreciation, from unconsolidated real estate funds | 1,644 | 1,207 | 3,230 | 2,650 |
Interest expense | (37,703) | (35,177) | (73,363) | (68,816) |
Acquisition-related expenses | (224) | (198) | (1,677) | (488) |
Income before gains | 20,698 | 15,894 | 36,744 | 37,990 |
Gain on sale of investment in real estate | 1,082 | 0 | 1,082 | 0 |
Net income | 21,780 | 15,894 | 37,826 | 37,990 |
Less: Net income attributable to noncontrolling interests | (3,298) | (2,446) | (3,978) | (5,843) |
Net income attributable to common stockholders | $ 18,482 | $ 13,448 | $ 33,848 | $ 32,147 |
Future Minimum Lease Rental R73
Future Minimum Lease Rental Receipts (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
2,017 | $ 468,767 |
2,018 | 417,345 |
2,019 | 347,467 |
2,020 | 293,830 |
2,021 | 229,225 |
Thereafter | 630,645 |
Total future minimum base rentals | $ 2,387,279 |
Term of residential leases | 1 year |
Future Minimum Lease Rental P74
Future Minimum Lease Rental Payments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Ground lease payments | $ 183 | $ 366 | $ 366 |
Future Minimum Lease Rental P75
Future Minimum Lease Rental Payments - Future Minimum Ground Lease Payments (Details) $ in Thousands | Jun. 30, 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 | 48,010 |
Total future minimum lease payments | 51,675 |
Future ground rent payments per year | $ 733 |
Commitments, Contingencies an76
Commitments, Contingencies and Guarantees (Details) | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2016property | Jun. 30, 2016USD ($)propertytenant | Jun. 30, 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 | property | 25 | ||
Apartment Building [Member] | HAWAII | |||
Loss Contingencies [Line Items] | |||
Apartments under construction | property | 475 | ||
Estimated duration of property development (in months) | 18 years | ||
Estimated cost of construction | $ 120,000,000 | ||
Contractual amount for development project | 114,200,000 | ||
Apartment Building [Member] | HAWAII | Building Improvements [Member] | |||
Loss Contingencies [Line Items] | |||
Contractual amount for development project | $ 1,800,000 | ||
Unconsolidated Funds [Member] | |||
Loss Contingencies [Line Items] | |||
Number of properties containing Asbestos | property | 4 |
Commitments, Contingencies an77
Commitments, Contingencies and Guarantees - Schedule of Debt Related to Unconsolidated Funds (Details) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2016USD ($)propertytenant | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2015tenant | |
Debt Instrument [Line Items] | ||||
Number of tenants accounting for more than 10% of our total rental revenue and tenant recoveries | tenant | 0 | 0 | ||
Long-term debt | $ 4,280,925 | $ 3,611,276 | ||
Fund X [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 325,000 | |||
Loan Maturity Date | May 1, 2018 | |||
Collateral, number of properties | property | 6 | |||
Maximum future payments under the swap agreement | $ 1,700 | |||
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 | |||
Collateral, number of properties | property | 2 | |||
Maximum future payments under the swap agreement | $ 4,700 | |||
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 | |||
LIBOR [Member] | Fund X [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread | 1.75% | |||
LIBOR [Member] | Partnership X [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread | 1.40% |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] ft² in Thousands, shares in Millions, $ in Millions | Jul. 21, 2016USD ($)ft²$ / ft² | Jul. 31, 2016USD ($)shares |
Common Stock [Member] | ||
Subsequent Event [Line Items] | ||
Number of shares of stock sold (in shares) | shares | 1.4 | |
Net proceeds from sale of stock | $ 49.8 | |
Joint Venture [Member] | Brentwood [Member] | ||
Subsequent Event [Line Items] | ||
Area of real estate property | ft² | 365 | |
Payments to acquire property | $ 225 | |
Acquisition price (in dollars per square foot) | $ / ft² | 616 | |
Consideration transferred, new debt incurred | $ 90 | |
Joint Venture [Member] | Brentwood [Member] | LIBOR [Member] | ||
Subsequent Event [Line Items] | ||
Basis spread | 1.55% | |
Minimum [Member] | Brentwood [Member] | ||
Subsequent Event [Line Items] | ||
Ownership interest in joint venture | 20.00% | |
Maximum [Member] | Brentwood [Member] | ||
Subsequent Event [Line Items] | ||
Ownership interest in joint venture | 30.00% |