Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 28, 2017 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Douglas Emmett Inc | |
Entity Central Index Key | 1,364,250 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 154,584,972 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Investment in real estate: | ||
Land | $ 1,022,340 | $ 1,022,340 |
Buildings and improvements | 7,223,644 | 7,221,124 |
Tenant improvements and lease intangibles | 703,537 | 696,197 |
Property under development | 70,416 | 58,459 |
Investment in real estate, gross | 9,019,937 | 8,998,120 |
Less: accumulated depreciation and amortization | (1,844,009) | (1,789,678) |
Investment in real estate, net | 7,175,928 | 7,208,442 |
Cash and cash equivalents | 85,533 | 112,927 |
Tenant receivables, net | 3,391 | 2,165 |
Deferred rent receivables, net | 96,754 | 93,165 |
Acquired lease intangible assets, net | 4,833 | 5,147 |
Interest rate contract assets | 41,234 | 35,656 |
Investment in unconsolidated real estate funds | 142,655 | 144,289 |
Other assets | 36,371 | 11,914 |
Total assets | 7,586,699 | 7,613,705 |
Liabilities | ||
Secured notes payable and revolving credit facility, net | 4,391,410 | 4,369,537 |
Interest payable, accounts payable and deferred revenue | 97,316 | 75,229 |
Security deposits | 46,153 | 45,990 |
Acquired lease intangible liabilities, net | 62,685 | 67,191 |
Interest rate contract liabilities | 2,600 | 6,830 |
Dividends payable | 35,228 | 34,857 |
Total liabilities | 4,635,392 | 4,599,634 |
Douglas Emmett, Inc. stockholders' equity: | ||
Common Stock, $0.01 par value, 750,000,000 authorized, 153,144,327 and 151,530,210 outstanding at March 31, 2017 and December 31, 2016, respectively | 1,531 | 1,515 |
Additional paid-in capital | 2,676,960 | 2,725,157 |
Accumulated other comprehensive income | 22,858 | 15,156 |
Accumulated deficit | (836,859) | (820,685) |
Total Douglas Emmett, Inc. stockholders' equity | 1,864,490 | 1,921,143 |
Noncontrolling interests | 1,086,817 | 1,092,928 |
Total equity | 2,951,307 | 3,014,071 |
Total liabilities and equity | $ 7,586,699 | $ 7,613,705 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
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) | 153,144,327 | 151,530,210 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Office rental | ||
Rental revenues | $ 133,016 | $ 111,006 |
Tenant recoveries | 11,050 | 10,211 |
Parking and other income | 26,282 | 23,162 |
Total office revenues | 170,348 | 144,379 |
Multifamily rental | ||
Rental revenues | 22,241 | 22,427 |
Parking and other income | 1,892 | 1,766 |
Total multifamily revenues | 24,133 | 24,193 |
Total revenues | 194,481 | 168,572 |
Operating Expenses | ||
Office expenses | 54,885 | 47,883 |
Multifamily expenses | 5,947 | 6,031 |
General and administrative | 10,156 | 8,071 |
Depreciation and amortization | 67,374 | 55,552 |
Total operating expenses | 138,362 | 117,537 |
Operating income | 56,119 | 51,035 |
Other income | 2,162 | 2,089 |
Other expenses | (1,724) | (3,004) |
Income, including depreciation, from unconsolidated real estate funds | 2,177 | 1,586 |
Interest expense | (36,954) | (35,660) |
Net income | 21,780 | 16,046 |
Less: Net income attributable to noncontrolling interests | (2,731) | (680) |
Net income attributable to common stockholders | $ 19,049 | $ 15,366 |
Net income attributable to common stockholders per share – basic (usd per share) | $ 0.124 | $ 0.104 |
Net income attributable to common stockholders per share – diluted (usd per share) | 0.123 | 0.101 |
Dividends declared per common share (usd per share) | $ 0.23 | $ 0.22 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 21,780 | $ 16,046 |
Other comprehensive income (loss): cash flow hedges | 9,829 | (20,608) |
Comprehensive income (loss) | 31,609 | (4,562) |
Less: Comprehensive (income) loss attributable to noncontrolling interests | (4,858) | 1,900 |
Comprehensive income (loss) attributable to common stockholders | $ 26,751 | $ (2,662) |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Operating Activities | ||
Net income | $ 21,780 | $ 16,046 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Income, including depreciation, from unconsolidated real estate funds | (2,177) | (1,586) |
Depreciation and amortization | 67,374 | 55,552 |
Net accretion of acquired lease intangibles | (4,192) | (3,304) |
Straight-line rent | (3,588) | (2,919) |
Bad debt (recovery) expense | (6) | 679 |
Amortization of deferred loan costs | 2,098 | 1,319 |
Non-cash market value adjustments on interest rate contracts | (13) | 0 |
Amortization of stock-based compensation | 2,708 | 2,379 |
Operating distributions from unconsolidated real estate funds | 2,177 | 375 |
Change in working capital components: | ||
Tenant receivables | (1,220) | (2,440) |
Interest payable, accounts payable and deferred revenue | 22,641 | 18,444 |
Security deposits | 163 | 4,331 |
Other assets | (219) | 965 |
Net cash provided by operating activities | 107,552 | 89,841 |
Investing Activities | ||
Capital expenditures for improvements to real estate | (25,280) | (15,556) |
Capital expenditures for developments | (9,905) | (1,412) |
Property acquisitions | 0 | (1,257,513) |
Deposits for property acquisitions | 24,000 | 0 |
Loan payments received from related parties | 0 | 763 |
Capital distributions from unconsolidated real estate funds | 1,407 | 15,773 |
Net cash used in investing activities | (57,778) | (1,257,945) |
Financing Activities | ||
Proceeds from borrowings | 88,000 | 900,000 |
Repayment of borrowings | (68,145) | (31,194) |
Loan cost payments | (85) | (11,444) |
Contributions from noncontrolling interests in consolidated JVs | 250 | 320,000 |
Distributions paid to noncontrolling interests | (9,632) | (6,098) |
Dividends paid to common stockholders | (34,852) | (32,322) |
Taxes paid on exercise of stock options | (52,704) | (445) |
Net cash (used in) provided by financing activities | (77,168) | 1,138,497 |
Decrease in cash and cash equivalents | (27,394) | (29,607) |
Cash and cash equivalents at the beginning of the year | 112,927 | 101,798 |
Cash and cash equivalents at quarter end | 85,533 | 72,191 |
SUPPLEMENTAL CASH FLOWS INFORMATION | ||
Cash paid for interest, net of capitalized interest | 33,400 | 32,893 |
Capitalized interest paid | 521 | 238 |
NON-CASH INVESTING TRANSACTIONS | ||
Accrual increase/(decrease) for capital expenditures for improvements to real estate | (2,593) | 0 |
Accrual increase/(decrease) for capital expenditures for developments | 2,039 | 0 |
Capitalized stock-based compensation for improvements to real estate and developments | 228 | 217 |
Removal of fully depreciated and amortized building and tenant improvements and lease intangibles | 13,044 | 4,230 |
Removal of fully amortized acquired lease intangible assets | 65 | 150 |
Removal of fully accreted acquired lease intangible liabilities | 2,073 | 6,424 |
Application of deposit to purchase price of property | 0 | 75,000 |
NON-CASH FINANCING TRANSACTIONS | ||
Gain (loss) from market value adjustments | 4,722 | (28,812) |
Dividends declared | 35,223 | 32,424 |
Common stock issued in exchange for OP Units | 4,523 | 5,847 |
Unconsolidated Funds [Member] | ||
NON-CASH FINANCING TRANSACTIONS | ||
Gain (loss) from market value adjustments | $ 99 | $ (611) |
Overview
Overview | 3 Months Ended |
Mar. 31, 2017 | |
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 JVs 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, California and Honolulu, Hawaii. The terms "us," "we" and "our" as used in these financial statements refer to Douglas Emmett, Inc. and its subsidiaries on a consolidated basis. As of March 31, 2017 , our portfolio of properties consisted of: Consolidated Portfolio (1) Total Portfolio (1) Office (2) Wholly-owned properties 52 52 JV properties 7 7 Fund properties — 8 59 67 Multifamily Wholly-owned properties 10 10 Total 69 77 __________________________________________________ (1) In addition to our properties, we own fee interests in two parcels of land subject to ground leases from which we earn ground rent income. (2) Office portfolio includes ancillary retail space. 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 JVs. All significant intercompany balances and transactions have been eliminated in our consolidated financial statements. Our Operating Partnership and consolidated JVs are VIEs and we are the primary beneficiary. As of March 31, 2017 , the total consolidated assets, liabilities and equity of the VIEs was $7.59 billion (of which $7.18 billion related to investment in real estate), $4.64 billion and $2.95 billion (of which $1.09 billion related to noncontrolling interest), respectively. 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 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, 2017 . The interim financial statements should be read in conjunction with the consolidated financial statements in our 2016 Annual Report on Form 10-K and the notes thereto. References in this report to the number of properties, square footage, per square footage amounts, apartment units and geography, are outside the scope of our independent registered public accounting firm’s review of our financial statements in accordance with the standards of the PCAOB. |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | Summary of Significant Accounting Policies We adopted ASU No. 2017-01, "Clarifying the Definition of a Business" in the first quarter of 2017. The ASU changes our accounting policy "Investment in Real Estate" disclosed in our 2016 Annual Report on Form 10-K. The ASU will impact our future financial position, results of operations and disclosures because we expect that our property acquisitions will be accounted for as asset purchases, and the related acquisition expenses will be capitalized as part of the respective asset. We historically accounted for our property acquisitions as business combinations and expensed the related acquisition expenses as incurred. See "Recently issued and adopted accounting literature below". We have not made any other changes during the period covered by this Report to our significant accounting policies disclosed in our 2016 Annual Report on Form 10-K. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates 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 March 2016, the FASB issued ASU No. 2016-07, "Simplifying the Transition to the Equity Method of Accounting" which amends "Investments-Equity Method and Joint Ventures" (Topic 323). The ASU simplifies the transition to the equity method of accounting by eliminating the requirement that an entity retroactively adopt the equity method of accounting if an investment qualifies for equity method accounting as a result of an increase in the level of ownership or degree of influence. The ASU requires that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment qualifies for equity method accounting. The ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those years, which for us would be the first quarter of 2017, and early adoption is permitted. The amendments in this ASU should be applied prospectively. We adopted the ASU in the first quarter of 2017 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. 2016-09, "Improvements to Employee Share-Based Payment Accounting" which amends "Compensation-Stock Compensation" (Topic 718). This ASU simplifies the accounting for several aspects of share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. The ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those years, which for us would be the first quarter of 2017, and early adoption is permitted. The ASU amendments are applied on a prospective or retrospective basis depending on the specific amendment. We adopted the ASU in the first quarter of 2017 and it did not have a material impact on our financial position, results of operations or disclosures. In October 2016, the FASB issued ASU No. 2016-17, "Interests Held Through Related Parties That Are Under Common Control". The ASU provides guidance regarding the consolidation of VIEs. The ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those years, which for us would be the first quarter of 2017. The amendments in this ASU should be applied retrospectively. We adopted the ASU in the first quarter of 2017 and it did not have a material impact on our financial position, results of operations or disclosures. In January 2017, the FASB issued ASU No. 2017-01, "Clarifying the Definition of a Business". The ASU provides guidance regarding the definition of a business with the objective of providing guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those years, which for us would be the first quarter of 2018. The ASU should be applied prospectively and early adoption is permitted. We adopted the ASU in the first quarter of 2017 and it did not have a material impact on our financial position, results of operations or disclosures upon adoption. The ASU will impact our future financial position, results of operations and disclosures because we expect that our property acquisitions will be accounted for as asset purchases, and the related acquisition expenses will be capitalized as part of the respective asset. We historically accounted for our property acquisitions as business combinations and expensed the related acquisition expenses as incurred. Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, "Leases" (Topic 842). The main difference between previous GAAP and Topic 842 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under prevailing GAAP. The accounting applied by a lessor is largely unchanged from that applied under prevailing 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 straight-line basis over the lease term. Topic 842 requires an entity to separate the lease components from the non-lease components (for example, maintenance services or other activities that transfer a good or service to the customer) in a contract. Only the lease components must be accounted for in accordance with Topic 842. The consideration in the contract is allocated to the lease and non-lease components on a relative standalone price basis (for lessees) or in accordance with the allocation guidance in Topic 606 (for lessors). Topic 842 defines initial direct costs of a lease (which may be capitalized) as costs that would not have been incurred had the lease not been executed. Costs to negotiate a lease that would have been incurred regardless of whether the lease was executed, such as fixed employee salaries, are not considered to be initial direct costs, and may not be capitalized. 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 May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers" (Topic 606), which provides guidance for the accounting of revenue from contracts with customers. The guidance supersedes the revenue recognition requirements in Topic 605, "Revenue Recognition", and most industry-specific guidance throughout the Industry Topics of the Codification. In March 2016, the FASB issued ASU No. 2016-08, "Principal versus Agent Considerations (Reporting Revenue Gross versus Net)" which amends Topic 606. The ASU clarifies the guidance for principal versus agent considerations. In April 2016, the FASB issued ASU No. 2016-10, "Identifying Performance Obligations and Licensing" which amends Topic 606. The ASU provides guidance for identifying performance obligations and licensing. In May 2016, the FASB issued ASU No. 2016-12, "Narrow-Scope Improvements and Practical Expedients" which amends Topic 606. The ASU provides guidance for a variety of revenue recognition related topics. In August 2015, the FASB issued ASU No. 2015-14, which defers the effective date of ASU No. 2014-09 (Topic 606) by one year. In February 2017, the FASB issued ASU No. 2017-05 "Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets" (Subtopic 610-20). The ASU provides guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with noncustomers. As a result, the various ASUs listed above are now effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, which for us is the first quarter of 2018. Earlier application is permitted for fiscal years beginning after December 15, 2016, including interim reporting periods within those years, which for us is the first quarter of 2017. The amendments in this ASU should be applied retrospectively. We are not planning on early adopting the ASU and we expect to use the modified retrospective method of adoption. We are currently evaluating the potential impact to our accounting, particularly with respect to our tenant recovery revenues, and whether such changes will be material to our future results of operations and financial position. As noted above, ASU 2016-02 "Leases" requires that non-lease components such as tenant recovery revenues be accounted for in accordance with ASU 2014-09, which means that the classification and timing of our tenant recovery revenues could be impacted. The FASB has not issued any other ASUs during 2017 that we expect to be applicable and have a material impact on our future financial position, results of operations or disclosures. |
Investment in Real Estate
Investment in Real Estate | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Investment in Real Estate | Investment in Real Estate The results of operations from our acquisitions are included in our consolidated statements of operations after the respective acquisition dates. The purchase accounting for our 2016 acquisitions is subject to adjustment within twelve months of the acquisition date because they were accounted for as business combinations. 2017 First Quarter Acquisitions We did not acquire any properties during the first quarter of 2017. See Note 17 regarding our purchase of two Class A office properties in April 2017. 2016 First Quarter Acquisitions Westwood Portfolio Acquisition On February 29, 2016 (Acquisition Date), a consolidated JV which we manage and in which we own an equity interest acquired four Class A office properties located in Westwood, California (Westwood Portfolio) for a contract price of $1.34 billion . As of the Acquisition Date, we had contributed sixty -percent of the equity to the JV, which was subsequently reduced to thirty -percent on May 31, 2016 (Sell Down Date) when we sold half of our equity interest to a third party investor. The table below (in thousands) summarizes our purchase accounting and funding sources for the acquisition: Sources and Uses of Funds Actual at Closing (1) Pro Forma Sell Down Adjustments (2) Pro Forma Building square footage 1,725 1,725 Uses of funds - Investment in real estate: Land $ 94,996 $ 94,996 Buildings and improvements 1,236,786 1,236,786 Tenant improvements and lease intangibles 50,439 50,439 Acquired above and below-market leases, net (3) (49,708 ) (49,708 ) 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 JV. (2) Reflects our sale of thirty -percent of the equity in the JV on the Sell Down Date, presented as of the Acquisition Date, treated as in-substance real estate, which reduced our ownership interest in the JV to thirty -percent. We sold the interest for the $240.0 million we contributed plus an additional $1.1 million to compensate us 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 a $75.0 million deposit, $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 + 1.40% . (7) Reflects 100% (not 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 + 1.40% , which has been effectively fixed at 2.37% per annum for five years through interest rate swaps. See Note 7 for information regarding our consolidated debt. The table below (in thousands) presents the revenues and net income attributable to common stockholders from the Westwood Portfolio included in the consolidated statement of operations after the Acquisition Date: Three Months Ended March 31, 2017 2016 Total office revenues $ 23,949 $ 8,223 Net income (loss) attributable to common stockholders (1) $ 1,034 $ (2,214 ) ______________________________________________________ (1) Excluding transaction costs, net income (loss) attributable to common stockholders was $1.0 million and $(0.3) million for the three months ended March 31, 2017 and 2016 , respectively. The table below (in thousands, except per share information) 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, 2016, 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 us, and (iii) are factually supportable. The pro forma reflects the hypothetical impact of the acquisition on us and does not purport to represent what our results of operations would have been had the acquisition occurred on January 1, 2016, 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. Transaction costs related to the acquisition have been excluded. Three months ended March 31, 2016 Pro forma revenues $ 181,900 Pro forma net income attributable to common stockholders $ 16,404 Pro forma net income attributable to common stockholders per share – basic $ 0.111 Pro forma net income attributable to common stockholders per share – diluted $ 0.108 |
Acquired Lease Intangibles
Acquired Lease Intangibles | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Acquired Lease Intangibles | Acquired Lease Intangibles Summary of our Acquired Lease Intangibles The table below (in thousands) summarizes our above/below-market leases: March 31, 2017 December 31, 2016 Above-market tenant leases $ 5,045 $ 5,110 Accumulated amortization - above-market tenant leases (2,608 ) (2,379 ) Below-market ground leases 3,198 3,198 Accumulated amortization - below-market ground leases (802 ) (782 ) Acquired lease intangible assets, net $ 4,833 $ 5,147 Below-market tenant leases $ 102,852 $ 104,925 Accumulated accretion - below-market tenant leases (43,662 ) (41,241 ) Above-market ground leases 4,017 16,200 Accumulated accretion - above-market ground leases (522 ) (12,693 ) Acquired lease intangible liabilities, net $ 62,685 $ 67,191 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 March 31, 2017 2016 Net accretion of above/below-market tenant leases (1) $ 4,184 $ 3,295 Amortization of above-market ground lease (2) (4 ) (4 ) Accretion of above-market ground lease (3) 12 13 Total $ 4,192 $ 3,304 _______________________________________________ (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. |
Investments In Unconsolidated R
Investments In Unconsolidated Real Estate Funds | 3 Months Ended |
Mar. 31, 2017 | |
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 interest in two unconsolidated Funds, Fund X and Partnership X, through which we and investors own eight office properties totaling 1.8 million square feet. At March 31, 2017 , 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. We also receive distributions based on invested capital and on any profits that exceed certain specified cash returns to the investors. The table below presents (in thousands) cash distributions received from our Funds: Three Months Ended March 31, 2017 2016 Operating distributions received $ 2,177 $ 375 Capital distributions received 1,407 15,773 Total distributions received $ 3,584 $ 16,148 Summarized Financial Information for our Funds The accounting policies of the Funds are consistent with ours. The tables below present (in thousands) selected financial information for the Funds on a combined basis. The amounts presented represent 100% (not our pro-rata share) of amounts related to the Funds, and are based upon historical acquired book value: March 31, 2017 December 31, 2016 Total assets $ 688,492 $ 689,991 Total liabilities $ 449,994 $ 448,522 Total equity $ 238,498 $ 241,469 Three Months Ended March 31, 2017 2016 Total revenues $ 18,625 $ 17,475 Operating income $ 4,926 $ 4,242 Net income $ 2,161 $ 1,404 |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2017 | |
Other Assets [Abstract] | |
Other Assets | Other Assets Other assets consisted of the following (in thousands): March 31, 2017 December 31, 2016 Restricted cash $ 121 $ 121 Prepaid expenses 7,300 6,779 Other indefinite-lived intangible 1,988 1,988 Deposits in escrow 24,000 — Furniture, fixtures and equipment, net 984 1,093 Other 1,978 1,933 Total other assets $ 36,371 $ 11,914 |
Secured Notes Payable and Revol
Secured Notes Payable and Revolving Credit Facility, net | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 Principal Balance as of December 31, 2016 Variable Interest Rate Fixed Interest Rate (2) Swap Maturity Date Wholly Owned Subsidiaries Term Loan (3) $ — $ 1,000 N/A 3.00% -- Term Loan (4) 8/5/2018 348,379 349,933 N/A 4.14% -- Term Loan (4) 2/1/2019 149,188 149,911 N/A 4.00% -- Term Loan (4) 6/5/2019 284,578 285,000 N/A 3.85% -- Fannie Mae Loan 10/1/2019 145,000 145,000 LIBOR + 1.25% N/A -- Term Loan (4)(5) 3/1/2020 344,314 345,759 N/A 4.46% -- Fannie Mae Loans 11/1/2020 388,080 388,080 LIBOR + 1.65% 3.65% 11/1/2017 Term Loan (6) 4/15/2022 340,000 340,000 LIBOR + 1.40% 2.77% 4/1/2020 Term Loan (6) 7/27/2022 180,000 180,000 LIBOR + 1.45% 3.06% 7/1/2020 Term Loan (6) 11/1/2022 400,000 400,000 LIBOR + 1.35% 2.64% 11/1/2020 Term Loan (6) 6/23/2023 360,000 360,000 LIBOR + 1.55% 2.57% 7/1/2021 Term Loan (6) 12/23/2023 220,000 220,000 LIBOR + 1.70% 3.62% 12/23/2021 Term Loan (6) 1/1/2024 300,000 300,000 LIBOR + 1.55% 3.46% 1/1/2022 Fannie Mae Loan (6) 4/1/2025 102,400 102,400 LIBOR + 1.25% 2.84% 3/1/2020 Fannie Mae Loan (6) 12/1/2025 115,000 115,000 LIBOR + 1.25% 2.76% 12/1/2020 Revolving credit facility (7) 8/21/2020 25,000 — LIBOR + 1.40% N/A -- Total Wholly Owned Debt 3,701,939 3,682,083 Consolidated JVs Term Loan 7/21/2019 146,000 146,000 LIBOR + 1.55% N/A -- Term Loan (6) 2/28/2023 580,000 580,000 LIBOR + 1.40% 2.37% 3/1/2021 Total Consolidated Debt (8) (9)(10) 4,427,939 4,408,083 Deferred loan costs, net (11) (36,529 ) (38,546 ) Total Consolidated Debt, net $ 4,391,410 $ 4,369,537 ___________________________________________________ (1) Maturity dates include the effect of extension options. (2) Includes the effect of interest rate swaps and excludes the effect of prepaid loan fees. See Note 9 for details of our interest rate swaps. (3) At March 31, 2017 , this loan had been paid off. (4) Requires monthly payments of principal and interest. Principal amortization is based upon a 30 -year amortization schedule. (5) Interest is fixed until March 2018 . (6) Loan agreement includes a zero-percent LIBOR floor. The corresponding swaps do not include such a floor. (7) $400.0 million revolving credit facility. Unused commitment fees range from 0.15% to 0.20% . (8) See Note 12 for our fair value disclosures. (9) At March 31, 2017 , the minimum future principal payments due on our secured notes payable and revolving credit facility, excluding any maturity extension options, were as follows (in thousands): Twelve months ending March 31: 2018 $ 358,828 2019 493,590 2020 565,040 2021 708,080 2022 300,000 Thereafter 2,002,401 Total future principal payments $ 4,427,939 (10) At March 31, 2017 , the weighted average remaining life, including extension options, of our total consolidated term debt (excluding our revolving credit facility) was 4.6 years . For the $4.11 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 interest was fixed was 2.9 years , (iii) annual interest rate was 3.28% and (iv) effective interest rate was 3.43% (including the non-cash amortization of deferred loan costs). Except as otherwise noted below, each loan (including our revolving credit facility) is secured by 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. The following table summarizes (in thousands) our fixed and floating rate debt: Description Principal Balance as of March 31, 2017 Principal Balance as of December 31, 2016 Aggregate swapped to fixed rate loans $ 2,985,480 $ 2,985,480 Aggregate fixed rate loans 1,126,459 1,131,603 Aggregate floating rate loans 316,000 291,000 Total Debt $ 4,427,939 $ 4,408,083 (11) Deferred loan costs are net of accumulated amortization of $17.5 million and $15.4 million at March 31, 2017 and December 31, 2016 respectively. The table below (in thousands) sets forth amortization of deferred loan costs, which is included in Interest Expense in our consolidated statement of operations: Three Months Ended March 31, 2017 2016 Deferred loan cost amortization $ 2,098 $ 1,319 |
Interest Payable, Accounts Paya
Interest Payable, Accounts Payable and Deferred Revenue | 3 Months Ended |
Mar. 31, 2017 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Interest Payable, Accounts Payable and Deferred Revenue | Interest Payable, Accounts Payable and Deferred Revenue Interest payable, accounts payable and deferred revenue consisted of the following (in thousands): March 31, 2017 December 31, 2016 Interest payable $ 11,000 $ 9,561 Accounts payable and accrued liabilities 57,111 36,880 Deferred revenue 29,205 28,788 Total interest payable, accounts payable and deferred revenue $ 97,316 $ 75,229 |
Derivative Contracts
Derivative Contracts | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Contracts | Derivative Contracts Derivative Summary As of March 31, 2017 , all of our interest rate swaps, which include the interest rate swaps of our consolidated JVs and our unconsolidated Funds, were designated as cash flow hedges: Number of Interest Rate Swaps Notional (in thousands) Consolidated derivatives (1) 22 $ 2,985,480 Unconsolidated Funds' derivatives (2) 2 $ 435,000 ___________________________________________________ (1) The notional amount includes 100% , not our pro-rata share, of our consolidated JVs' derivatives. (2) The notional amount includes 100% , not our pro-rata share, of our unconsolidated Funds' derivatives. Credit-risk-related Contingent Features We have agreements with each of our interest rate swap counterparties that contain a provision under which we could also be declared in default on our derivative obligations if we default on the underlying indebtedness that we are hedging. As of March 31, 2017 , there have been no events of default with respect to our interest rate swaps or our unconsolidated Funds' interest rate swaps. We do not post collateral for our swaps in a liability position. 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) March 31, 2017 December 31, 2016 Consolidated derivatives (2) $ 3,596 $ 7,689 Unconsolidated Funds' derivatives (3) $ — $ — __________________________________________________________________________________ (1) Includes accrued interest and excludes adjustments for credit risk. (2) Includes 100% , not our pro-rata share, of our consolidated JVs' derivatives. (3) Our unconsolidated Funds did not have any derivatives in a liability position. 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. We do not receive collateral for our swaps in an asset position. 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) March 31, 2017 December 31, 2016 Our derivatives (2) $ 40,748 $ 35,144 Our Funds' derivatives (3) $ 3,904 $ 3,724 ___________________________________________________ (1) Includes accrued interest and excludes adjustments for credit risk. (2) Includes 100% , not our pro-rata share, of our consolidated JVs' derivatives. (3) Includes 100% , not our pro-rata share, of our unconsolidated Funds' derivatives. Impact of Hedges on AOCI and Consolidated Statements of Operations The table below presents (in thousands) the effect of derivative instruments on our AOCI and statements of operations: Three Months Ended March 31, 2017 2016 Derivatives Designated as Cash Flow Hedges: Gain (loss) recorded in AOCI - Consolidated derivatives (1)(5) $ 4,722 $ (28,812 ) Gain (loss) recorded in AOCI - unconsolidated Funds' derivatives (2)(5) $ 99 $ (611 ) Loss reclassified from AOCI - Consolidated derivatives (3)(5) $ (5,100 ) $ (8,710 ) Gain (loss) reclassified from AOCI - unconsolidated Funds' derivatives (4)(5) $ 92 $ (105 ) Gain (loss) recorded - Consolidated derivatives (6) $ 13 $ — Derivatives Not Designated as Cash Flow Hedges: Gain (loss) recorded as interest expense (7) $ — $ — ___________________________________________________ (1) Represents the effective portion of the change in fair value of interest rate swaps. (2) Represents our share of the effective portion of the change in fair value of our unconsolidated Funds' interest rate swaps. (3) Reclassified from AOCI as an increase to Interest expense. (4) Reclassified from AOCI as a increase (decrease) to Income, including depreciation, from unconsolidated real estate funds (our share). (5) See the reconciliation of our AOCI in Note 10 . (6) Represents the ineffective portion of the change in fair value of interest rate swaps, which is recorded as a reduction (increase) to interest expense. (7) We do not have any derivatives that are not designated as cash flow hedges. Future Reclassifications from AOCI At March 31, 2017 , our estimate of the AOCI related to derivatives, designated as cash flow hedges, that will be reclassified to earnings during the next twelve months as swap interest payments are made, is presented in the table below (in thousands): Consolidated derivatives (1) $ 5,279 Unconsolidated Funds' derivatives (2) $ (158 ) ________________________________________ (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 | 3 Months Ended |
Mar. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Equity | Equity Equity Transactions During the three months ended March 31, 2017 , we (i) acquired 337 thousand OP Units in exchange for issuing an equal number of shares of our common stock to the holders of the OP Units, and (ii) issued 1.3 million shares of our common stock for the exercise of 3.9 million stock options on a net settlement basis (net of the exercise price and related taxes). See Note 17 regarding our common stock sales in April 2017. During the three months ended March 31, 2016 , we (i) created a JV which acquired the Westwood Portfolio, and investors contributed $320.0 million directly to the JV for a forty -percent interest, see Note 3 for more information regarding the JV, (ii) acquired 426 thousand OP Units in exchange for issuing an equal number of shares of our common stock to the holders of the OP Units, and (iii) issued 24 thousand shares of our common stock for the exercise of 65 thousand stock options on a net settlement basis (net of the exercise price and related taxes). Condensed Consolidated Statements of Equity The tables below present (in thousands) our condensed consolidated statements of equity: DEI Stockholders' Equity Noncontrolling Interests Total Equity Balance as of January 1, 2017 $ 1,921,143 $ 1,092,928 $ 3,014,071 Net income 19,049 2,731 21,780 Cash flow hedge fair value adjustments 7,702 2,127 9,829 Contributions to consolidated JV — 250 250 Dividends and distributions (35,223 ) (9,632 ) (44,855 ) Exchange of OP units for common stock 4,523 (4,523 ) — Exercise of stock options (1) (52,704 ) — (52,704 ) Stock-based compensation — 2,936 2,936 Balance as of March 31, 2017 $ 1,864,490 $ 1,086,817 $ 2,951,307 __________________________________________________ (1) Reflects withholding taxes. We issued shares of our common stock for the exercise of stock options on a net settlement basis (net of the exercise price and related taxes). DEI Stockholders' Equity Noncontrolling Interests Total Equity Balance as of January 1, 2016 $ 1,926,211 $ 355,337 $ 2,281,548 Net income 15,366 680 16,046 Cash flow hedge fair value adjustments (18,028 ) (2,580 ) (20,608 ) Contributions — 320,000 320,000 Dividends and distributions (32,424 ) (6,098 ) (38,522 ) Exchange of OP units for common stock 5,847 (5,847 ) — Exercise of stock options (445 ) — (445 ) Stock-based compensation — 2,596 2,596 Balance as of March 31, 2016 $ 1,896,527 $ 664,088 $ 2,560,615 Noncontrolling Interests Our noncontrolling interests consist of interests in our Operating Partnership and consolidated JVs which are not owned by us. Noncontrolling interests in our Operating Partnership consist of OP Units and fully-vested LTIP Units, and represented approximately 14% of our Operating Partnership's total interests as of March 31, 2017 when we and our Operating Partnership had 153.1 million shares of common stock and 25.3 million OP Units and fully-vested LTIP Units outstanding. A share of our common stock, an OP Unit and an LTIP Unit (once vested and booked up) have essentially the same economic characteristics, sharing equally in the distributions from our Operating Partnership. Investors who own OP Units have the right to cause our Operating Partnership to redeem their OP Units for an amount of cash per unit equal to the market value of one share of our common stock at the date of redemption, or, at our election, exchange their OP Units for shares of our common stock on a one-for-one b asis. LTIP Units have been granted to our key employees and non-employee directors as part of their compensation. These awards generally vest over the service period and once vested can generally be converted to OP Units. Changes in our Ownership Interest in our Operating Partnership The table below presents (in thousands) the effect on our equity from net income attributable to common stockholders and changes in our ownership interest in our Operating Partnership: Three Months Ended March 31, 2017 2016 Net income attributable to common stockholders $ 19,049 $ 15,366 Transfers from noncontrolling interests: Exchange of OP Units with noncontrolling interests 4,523 5,847 Net transfers from noncontrolling interests 4,523 5,847 Change from net income attributable to common stockholders and transfers from noncontrolling interests $ 23,572 $ 21,213 AOCI Reconciliation (1) The table below presents (in thousands) a reconciliation of our AOCI, which consists solely of adjustments related to derivatives designated as cash flow hedges for the three months ended March 31 : 2017 2016 Beginning balance $ 15,156 $ (9,285 ) Other comprehensive income (loss) before reclassifications - our derivatives 4,722 (28,812 ) Other comprehensive income (loss) before reclassifications - our Fund's derivatives 99 (611 ) Reclassifications from AOCI - our derivatives (2) 5,100 8,710 Reclassifications from AOCI - our Fund's derivatives (3) (92 ) 105 Net current period OCI 9,829 (20,608 ) Less OCI attributable to noncontrolling interests (2,127 ) 2,580 OCI attributable to common stockholders 7,702 (18,028 ) Ending balance $ 22,858 $ (27,313 ) ___________________________________________________ (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 an (increase) decrease to Income, including depreciation, from unconsolidated real estate funds. Equity Compensation On June 2, 2016, the Douglas Emmett 2016 Omnibus Stock Incentive Plan ("2016 Plan") became effective after receiving stockholder approval, superseding our prior plan, the Douglas Emmett 2006 Omnibus Stock Incentive Plan ("2006 Plan"), both of which allow for awards to our directors, officers, employees and consultants. 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. Grants after June 2, 2016 were awarded under the 2016 Plan, while grants prior to that date were awarded under the 2006 Plan (grants under the 2006 Plan 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 $2.7 million and $2.4 million for the three months ended March 31, 2017 and 2016 , respectively. These amounts are net of capitalized stock-based compensation of $228 thousand and $217 thousand for the three months ended March 31, 2017 and 2016 , respectively. The total intrinsic value of options exercised for the three months ended March 31, 2017 and 2016 was $102.1 million and $1.1 million , respectively. |
EPS
EPS | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
EPS | EPS We calculate basic EPS by dividing the net income attributable to common stockholders for the period by the weighted average number of common shares outstanding during the period. We calculate diluted EPS by dividing the net income attributable to common stockholders for the period by the weighted average number of common shares and dilutive instruments outstanding during the period using the treasury stock method. We account for unvested LTIP awards that contain nonforfeitable rights to dividends as participating securities and include these securities in the computation of basic and diluted EPS using the two-class method. The table below presents the calculation of basic and diluted EPS: Three Months Ended March 31, 2017 2016 Numerator (in thousands): Net income attributable to common stockholders $ 19,049 $ 15,366 Allocation to participating securities: Unvested LTIP Units (98 ) (84 ) Numerator for basic and diluted net income attributable to common stock holders $ 18,951 $ 15,282 Denominator (in thousands): Weighted average shares of common stock outstanding - basic 152,490 147,236 Effect of dilutive securities: Stock options (1) 1,165 4,215 Weighted average shares of common stock and common stock equivalents outstanding - diluted 153,655 151,451 Basic EPS: Net income attributable to common stockholders per share $ 0.124 $ 0.104 Diluted EPS: Net income attributable to common stockholders per share $ 0.123 $ 0.101 ____________________________________________________ (1) The following securities (in thousands) were excluded from the computation of the weighted average shares of common stock and common stock equivalents outstanding - diluted because the effect of including them would be anti-dilutive to the calculation of diluted EPS: Three Months Ended March 31, 2017 2016 OP Units 24,661 25,549 Vested LTIP Units 762 815 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Our estimates of the fair value of financial instruments were determined using available market information and widely used valuation methods. Considerable judgment is necessary to interpret market data and determine an estimated fair value. The use of different market assumptions or valuation methods may have a material effect on the estimated fair values. The FASB fair value framework hierarchy distinguishes between assumptions based on market data obtained from sources independent of the reporting entity, and the reporting entity’s own assumptions about market-based inputs. The hierarchy is as follows: Level 1 - inputs utilize unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 - inputs are observable either directly or indirectly for similar assets and liabilities in active markets. Level 3 - inputs are unobservable assumptions generated by the reporting entity As of March 31, 2017 , we did not have any fair value estimates 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 line, 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 JVs, by calculating the credit-adjusted present value of the principal and interest payments for each secured note payable. The calculation incorporates observable market interest rates which we consider to be Level 2 inputs, assumes that the loans will be outstanding through maturity, and excludes any maturity extension options. The table below presents (in thousands) the estimated fair value of our secured notes payable: Secured Notes Payable: March 31, 2017 December 31, 2016 Fair value $ 4,418,661 $ 4,429,224 Carrying value $ 4,402,939 $ 4,408,083 Financial instruments measured at fair value Derivative instruments: See Note 9 for the details of our derivatives. We present our derivatives on the balance sheet at fair value, on a gross basis, excluding accrued interest. We estimate the fair value of our derivative instruments by calculating the credit-adjusted present value of the expected future cash flows of each derivative. The calculation incorporates the contractual terms of the derivatives, observable market interest rates which we consider to be Level 2 inputs, and credit risk adjustments to reflect the counterparty's as well as our own nonperformance risk. Our derivatives are not subject to master netting arrangements. The table below presents (in thousands) the estimated fair value of our derivatives: March 31, 2017 December 31, 2016 Derivative Assets: Fair value - consolidated derivatives (1) $ 41,234 $ 35,656 Fair value - unconsolidated Funds' derivatives (2) $ 3,840 $ 3,605 Derivative Liabilities: Fair value - consolidated derivatives (1) $ 2,600 $ 6,830 Fair value - unconsolidated Funds' derivatives (2) $ — $ — ____________________________________________________ (1) Consolidated derivatives, which include 100% , not our pro-rata share, of our consolidated JVs' 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 our unconsolidated Funds' derivatives. Our pro-rata share of the amounts related to the unconsolidated Funds' derivatives is included in our Investment in unconsolidated real estate funds in our consolidated balance sheet. See Note 5 for more information regarding our unconsolidated Funds. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2017 | |
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 it should not be considered as an alternative to cash flows as a measure of liquidity. Not all companies may calculate segment profit in the same manner. We consider segment profit to be an appropriate supplemental measure to net income because it can assist both investors and management in understanding the core operations of our properties. The table below presents (in thousands) the operating activity of our reportable segments: Three Months Ended March 31, 2017 2016 Office Segment Total office revenues $ 170,348 $ 144,379 Office expenses (54,885 ) (47,883 ) Office Segment profit 115,463 96,496 Multifamily Segment Total multifamily revenues 24,133 24,193 Multifamily expenses (5,947 ) (6,031 ) Multifamily Segment profit 18,186 18,162 Total profit from all segments $ 133,649 $ 114,658 The table below (in thousands) is a reconciliation of the total profit from all segments to net income attributable to common stockholders: Three Months Ended March 31, 2017 2016 Total profit from all segments $ 133,649 $ 114,658 General and administrative (10,156 ) (8,071 ) Depreciation and amortization (67,374 ) (55,552 ) Other income 2,162 2,089 Other expenses (1,724 ) (3,004 ) Income, including depreciation, from unconsolidated real estate funds 2,177 1,586 Interest expense (36,954 ) (35,660 ) Net income 21,780 16,046 Less: Net income attributable to noncontrolling interests (2,731 ) (680 ) Net income attributable to common stockholders $ 19,049 $ 15,366 |
Future Minimum Lease Rental Rec
Future Minimum Lease Rental Receipts | 3 Months Ended |
Mar. 31, 2017 | |
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 of 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 leases at March 31, 2017 : Twelve months ending March 31: 2018 $ 493,666 2019 428,623 2020 372,372 2021 306,184 2022 230,853 Thereafter 634,361 Total future minimum base rentals (1) $ 2,466,059 _____________________________________________________ (1) Does not include (i) residential leases, which typically have a term of one year or less, (ii) holdover rent, (iii) other types of rent such as storage rent and antenna rent, (iv) tenant reimbursements, (v) straight line rent, (vi) amortization/accretion of acquired above/below-market lease intangibles and (vii) 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 | 3 Months Ended |
Mar. 31, 2017 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Future Minimum Lease Rental Payments | Future Minimum Lease Rental Payments We incurred ground rent expense for a ground lease of $183 thousand for the three months ended March 31, 2017 and 2016 . The table below (in thousands) presents the future minimum ground lease payments as of March 31, 2017 : Twelve months ending March 31: 2018 $ 733 2019 733 2020 733 2021 733 2022 733 Thereafter 47,461 Total future minimum lease payments (1) $ 51,126 ___________________________________________________ (1) Lease term ends on December 31, 2086 . Ground rent is fixed at $733 thousand per year until February 28, 2019 , and will then 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 | 3 Months Ended |
Mar. 31, 2017 | |
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 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 or letters of credit from our tenants. For the three months ended March 31, 2017 and 2016 , no tenant accounted for more than 10% of our total revenues. All of our properties, including the properties of our consolidated JVs and unconsolidated Funds, are located in Los Angeles County, California and Honolulu, Hawaii, and we are therefore susceptible to adverse economic and regulatory developments, as well as natural disasters, in those markets. We are also subject to credit risk with respect to our interest rate swap counterparties that we use to manage the risk associated with our floating rate debt. We do not post or receive collateral with respect to our swap transactions. 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 have significant cash balances invested in a variety of short-term money market funds that are intended to preserve principal value and maintain a high degree of liquidity while providing current income. These investments are not insured against loss of principal and there is no guarantee that our investments in these funds will be redeemable at par value. We also have significant cash balances in bank accounts with high quality financial institutions with investment grade ratings. Interest bearing bank 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 have identified twenty-five buildings in our Consolidated Portfolio and four buildings owned by our unconsolidated Funds which contain asbestos, and would have to be removed in compliance with applicable environmental regulations if these properties are demolished or undergo major renovations. As of March 31, 2017 , 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 apartments to be removed) at our Moanalua Hillside Apartments in Honolulu, Hawaii. The $120.0 million estimated cost of the new apartments does not include the cost of the land which we already owned before beginning the project. We also plan to invest additional capital to upgrade the existing apartments, improve the parking and landscaping, build a new leasing and management office, and construct a new recreation and fitness facility with a new pool. In West Los Angeles, we plan to build a high-rise apartment building with 376 apartments. We expect the cost of the development to be approximately $120.0 million to $140.0 million , which does not include the cost of the land or the existing underground parking garage, both of which we owned before beginning the project. As of March 31, 2017 , we had an aggregate remaining contractual commitment for these development projects of $94.1 million . Other Contracts As of March 31, 2017 , we had an aggregate remaining contractual commitment for capital expenditure projects and repositionings was approximately $8.8 million . Guarantees We made certain environmental and other limited indemnities and guarantees covering customary non-recourse carve- outs for our unconsolidated Funds' debt. We also guaranteed the related swaps. Our Funds have agreed to indemnify us for any amounts that we would be required to pay under these agreements. As of March 31, 2017 , all of the obligations under the related debt and swap agreements have been performed in accordance with the terms of those agreements. The table below summarizes our Funds' debt as of March 31, 2017 . The amounts represent 100% (not our pro-rata share) of amounts related to our Funds: Fund (1) Loan Maturity Date Principal Balance (in millions) Variable Interest Rate Swap Fixed Interest Rate Swap Maturity Date Fund X (2) 5/1/2018 $ 325.0 LIBOR + 1.75% 2.35% 5/1/2017 Partnership X (3) 3/1/2023 110.0 LIBOR + 1.40% 2.30% 3/1/2021 $ 435.0 ___________________________________________________ (1) See Note 5 for more information regarding our unconsolidated Funds. (2) Floating rate term loan, swapped to fixed, which is secured by six properties and requires monthly payments of interest only, with the outstanding principal due upon maturity. As of March 31, 2017 , assuming a zero-percent LIBOR interest rate during the remaining life of the swap, the maximum future payments under the swap agreement were $0.2 million . (3) Floating rate term loan, swapped to fixed, which is secured by two properties and requires monthly payments of interest only, with the outstanding principal due upon maturity. As of March 31, 2017 , assuming a zero-percent LIBOR interest rate during the remaining life of the swap, the maximum future payments under the swap agreement were $3.9 million . |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On April 25, 2017, a consolidated joint venture that we manage and in which we own a twenty -percent interest acquired two Class A office properties in downtown Santa Monica totaling approximately 293,000 square feet for a combined purchase price of $352.8 million . The properties are located at 1299 Ocean Avenue and 429 Santa Monica Blvd. The joint venture financed a portion of the purchase price with a $142 million secured, non–recourse, interest only loan that matures in July 2019 and bears interest at LIBOR + 1.55% . During April, 2017, we sold approximately 1.1 million shares of our common stock under our ATM program for net proceeds of $43.9 million after commissions. |
Summary Of Significant Accoun24
Summary Of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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 JVs. All significant intercompany balances and transactions have been eliminated in our consolidated financial statements. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates 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 March 2016, the FASB issued ASU No. 2016-07, "Simplifying the Transition to the Equity Method of Accounting" which amends "Investments-Equity Method and Joint Ventures" (Topic 323). The ASU simplifies the transition to the equity method of accounting by eliminating the requirement that an entity retroactively adopt the equity method of accounting if an investment qualifies for equity method accounting as a result of an increase in the level of ownership or degree of influence. The ASU requires that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment qualifies for equity method accounting. The ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those years, which for us would be the first quarter of 2017, and early adoption is permitted. The amendments in this ASU should be applied prospectively. We adopted the ASU in the first quarter of 2017 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. 2016-09, "Improvements to Employee Share-Based Payment Accounting" which amends "Compensation-Stock Compensation" (Topic 718). This ASU simplifies the accounting for several aspects of share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. The ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those years, which for us would be the first quarter of 2017, and early adoption is permitted. The ASU amendments are applied on a prospective or retrospective basis depending on the specific amendment. We adopted the ASU in the first quarter of 2017 and it did not have a material impact on our financial position, results of operations or disclosures. In October 2016, the FASB issued ASU No. 2016-17, "Interests Held Through Related Parties That Are Under Common Control". The ASU provides guidance regarding the consolidation of VIEs. The ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those years, which for us would be the first quarter of 2017. The amendments in this ASU should be applied retrospectively. We adopted the ASU in the first quarter of 2017 and it did not have a material impact on our financial position, results of operations or disclosures. In January 2017, the FASB issued ASU No. 2017-01, "Clarifying the Definition of a Business". The ASU provides guidance regarding the definition of a business with the objective of providing guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those years, which for us would be the first quarter of 2018. The ASU should be applied prospectively and early adoption is permitted. We adopted the ASU in the first quarter of 2017 and it did not have a material impact on our financial position, results of operations or disclosures upon adoption. The ASU will impact our future financial position, results of operations and disclosures because we expect that our property acquisitions will be accounted for as asset purchases, and the related acquisition expenses will be capitalized as part of the respective asset. We historically accounted for our property acquisitions as business combinations and expensed the related acquisition expenses as incurred. Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, "Leases" (Topic 842). The main difference between previous GAAP and Topic 842 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under prevailing GAAP. The accounting applied by a lessor is largely unchanged from that applied under prevailing 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 straight-line basis over the lease term. Topic 842 requires an entity to separate the lease components from the non-lease components (for example, maintenance services or other activities that transfer a good or service to the customer) in a contract. Only the lease components must be accounted for in accordance with Topic 842. The consideration in the contract is allocated to the lease and non-lease components on a relative standalone price basis (for lessees) or in accordance with the allocation guidance in Topic 606 (for lessors). Topic 842 defines initial direct costs of a lease (which may be capitalized) as costs that would not have been incurred had the lease not been executed. Costs to negotiate a lease that would have been incurred regardless of whether the lease was executed, such as fixed employee salaries, are not considered to be initial direct costs, and may not be capitalized. 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 May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers" (Topic 606), which provides guidance for the accounting of revenue from contracts with customers. The guidance supersedes the revenue recognition requirements in Topic 605, "Revenue Recognition", and most industry-specific guidance throughout the Industry Topics of the Codification. In March 2016, the FASB issued ASU No. 2016-08, "Principal versus Agent Considerations (Reporting Revenue Gross versus Net)" which amends Topic 606. The ASU clarifies the guidance for principal versus agent considerations. In April 2016, the FASB issued ASU No. 2016-10, "Identifying Performance Obligations and Licensing" which amends Topic 606. The ASU provides guidance for identifying performance obligations and licensing. In May 2016, the FASB issued ASU No. 2016-12, "Narrow-Scope Improvements and Practical Expedients" which amends Topic 606. The ASU provides guidance for a variety of revenue recognition related topics. In August 2015, the FASB issued ASU No. 2015-14, which defers the effective date of ASU No. 2014-09 (Topic 606) by one year. In February 2017, the FASB issued ASU No. 2017-05 "Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets" (Subtopic 610-20). The ASU provides guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with noncustomers. As a result, the various ASUs listed above are now effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, which for us is the first quarter of 2018. Earlier application is permitted for fiscal years beginning after December 15, 2016, including interim reporting periods within those years, which for us is the first quarter of 2017. The amendments in this ASU should be applied retrospectively. We are not planning on early adopting the ASU and we expect to use the modified retrospective method of adoption. We are currently evaluating the potential impact to our accounting, particularly with respect to our tenant recovery revenues, and whether such changes will be material to our future results of operations and financial position. As noted above, ASU 2016-02 "Leases" requires that non-lease components such as tenant recovery revenues be accounted for in accordance with ASU 2014-09, which means that the classification and timing of our tenant recovery revenues could be impacted. The FASB has not issued any other ASUs during 2017 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 |
Overview (Tables)
Overview (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Real Estate Properties | As of March 31, 2017 , our portfolio of properties consisted of: Consolidated Portfolio (1) Total Portfolio (1) Office (2) Wholly-owned properties 52 52 JV properties 7 7 Fund properties — 8 59 67 Multifamily Wholly-owned properties 10 10 Total 69 77 __________________________________________________ (1) In addition to our properties, we own fee interests in two parcels of land subject to ground leases from which we earn ground rent income. (2) Office portfolio includes ancillary retail space. |
Investment in Real Estate (Tabl
Investment in Real Estate (Tables) - Westwood Portfolio [Member] | 3 Months Ended |
Mar. 31, 2017 | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The table below (in thousands) summarizes our purchase accounting and funding sources for the acquisition: Sources and Uses of Funds Actual at Closing (1) Pro Forma Sell Down Adjustments (2) Pro Forma Building square footage 1,725 1,725 Uses of funds - Investment in real estate: Land $ 94,996 $ 94,996 Buildings and improvements 1,236,786 1,236,786 Tenant improvements and lease intangibles 50,439 50,439 Acquired above and below-market leases, net (3) (49,708 ) (49,708 ) 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 JV. (2) Reflects our sale of thirty -percent of the equity in the JV on the Sell Down Date, presented as of the Acquisition Date, treated as in-substance real estate, which reduced our ownership interest in the JV to thirty -percent. We sold the interest for the $240.0 million we contributed plus an additional $1.1 million to compensate us 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 a $75.0 million deposit, $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 + 1.40% . (7) Reflects 100% (not 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 + 1.40% , which has been effectively fixed at 2.37% per annum for five years through interest rate swaps. See Note 7 for information regarding our consolidated debt. |
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 included in the consolidated statement of operations after the Acquisition Date: Three Months Ended March 31, 2017 2016 Total office revenues $ 23,949 $ 8,223 Net income (loss) attributable to common stockholders (1) $ 1,034 $ (2,214 ) ______________________________________________________ (1) Excluding transaction costs, net income (loss) attributable to common stockholders was $1.0 million and $(0.3) million for the three months ended March 31, 2017 and 2016 , respectively. |
Business Acquisition, Pro Forma Information | The table below (in thousands, except per share information) 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, 2016, 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 us, and (iii) are factually supportable. The pro forma reflects the hypothetical impact of the acquisition on us and does not purport to represent what our results of operations would have been had the acquisition occurred on January 1, 2016, 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. Transaction costs related to the acquisition have been excluded. Three months ended March 31, 2016 Pro forma revenues $ 181,900 Pro forma net income attributable to common stockholders $ 16,404 Pro forma net income attributable to common stockholders per share – basic $ 0.111 Pro forma net income attributable to common stockholders per share – diluted $ 0.108 |
Acquired Lease Intangibles (Tab
Acquired Lease Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary Of Acquired Lease Intangibles | The table below (in thousands) summarizes our above/below-market leases: March 31, 2017 December 31, 2016 Above-market tenant leases $ 5,045 $ 5,110 Accumulated amortization - above-market tenant leases (2,608 ) (2,379 ) Below-market ground leases 3,198 3,198 Accumulated amortization - below-market ground leases (802 ) (782 ) Acquired lease intangible assets, net $ 4,833 $ 5,147 Below-market tenant leases $ 102,852 $ 104,925 Accumulated accretion - below-market tenant leases (43,662 ) (41,241 ) Above-market ground leases 4,017 16,200 Accumulated accretion - above-market ground leases (522 ) (12,693 ) Acquired lease intangible liabilities, net $ 62,685 $ 67,191 |
Schedule Of Net Amortization Or Accretion Of Above/Below-Market Leases | The table below (in thousands) summarizes the net amortization/accretion related to our above/below-market leases: Three Months Ended March 31, 2017 2016 Net accretion of above/below-market tenant leases (1) $ 4,184 $ 3,295 Amortization of above-market ground lease (2) (4 ) (4 ) Accretion of above-market ground lease (3) 12 13 Total $ 4,192 $ 3,304 _______________________________________________ (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. |
Investments In Unconsolidated28
Investments In Unconsolidated Real Estate Funds (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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: Three Months Ended March 31, 2017 2016 Operating distributions received $ 2,177 $ 375 Capital distributions received 1,407 15,773 Total distributions received $ 3,584 $ 16,148 The tables below present (in thousands) selected financial information for the Funds on a combined basis. The amounts presented represent 100% (not our pro-rata share) of amounts related to the Funds, and are based upon historical acquired book value: March 31, 2017 December 31, 2016 Total assets $ 688,492 $ 689,991 Total liabilities $ 449,994 $ 448,522 Total equity $ 238,498 $ 241,469 Three Months Ended March 31, 2017 2016 Total revenues $ 18,625 $ 17,475 Operating income $ 4,926 $ 4,242 Net income $ 2,161 $ 1,404 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Other Assets [Abstract] | |
Schedule Of Other Assets | Other assets consisted of the following (in thousands): March 31, 2017 December 31, 2016 Restricted cash $ 121 $ 121 Prepaid expenses 7,300 6,779 Other indefinite-lived intangible 1,988 1,988 Deposits in escrow 24,000 — Furniture, fixtures and equipment, net 984 1,093 Other 1,978 1,933 Total other assets $ 36,371 $ 11,914 |
Secured Notes Payable and Rev30
Secured Notes Payable and Revolving Credit Facility, net (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 Principal Balance as of December 31, 2016 Variable Interest Rate Fixed Interest Rate (2) Swap Maturity Date Wholly Owned Subsidiaries Term Loan (3) $ — $ 1,000 N/A 3.00% -- Term Loan (4) 8/5/2018 348,379 349,933 N/A 4.14% -- Term Loan (4) 2/1/2019 149,188 149,911 N/A 4.00% -- Term Loan (4) 6/5/2019 284,578 285,000 N/A 3.85% -- Fannie Mae Loan 10/1/2019 145,000 145,000 LIBOR + 1.25% N/A -- Term Loan (4)(5) 3/1/2020 344,314 345,759 N/A 4.46% -- Fannie Mae Loans 11/1/2020 388,080 388,080 LIBOR + 1.65% 3.65% 11/1/2017 Term Loan (6) 4/15/2022 340,000 340,000 LIBOR + 1.40% 2.77% 4/1/2020 Term Loan (6) 7/27/2022 180,000 180,000 LIBOR + 1.45% 3.06% 7/1/2020 Term Loan (6) 11/1/2022 400,000 400,000 LIBOR + 1.35% 2.64% 11/1/2020 Term Loan (6) 6/23/2023 360,000 360,000 LIBOR + 1.55% 2.57% 7/1/2021 Term Loan (6) 12/23/2023 220,000 220,000 LIBOR + 1.70% 3.62% 12/23/2021 Term Loan (6) 1/1/2024 300,000 300,000 LIBOR + 1.55% 3.46% 1/1/2022 Fannie Mae Loan (6) 4/1/2025 102,400 102,400 LIBOR + 1.25% 2.84% 3/1/2020 Fannie Mae Loan (6) 12/1/2025 115,000 115,000 LIBOR + 1.25% 2.76% 12/1/2020 Revolving credit facility (7) 8/21/2020 25,000 — LIBOR + 1.40% N/A -- Total Wholly Owned Debt 3,701,939 3,682,083 Consolidated JVs Term Loan 7/21/2019 146,000 146,000 LIBOR + 1.55% N/A -- Term Loan (6) 2/28/2023 580,000 580,000 LIBOR + 1.40% 2.37% 3/1/2021 Total Consolidated Debt (8) (9)(10) 4,427,939 4,408,083 Deferred loan costs, net (11) (36,529 ) (38,546 ) Total Consolidated Debt, net $ 4,391,410 $ 4,369,537 ___________________________________________________ (1) Maturity dates include the effect of extension options. (2) Includes the effect of interest rate swaps and excludes the effect of prepaid loan fees. See Note 9 for details of our interest rate swaps. (3) At March 31, 2017 , this loan had been paid off. (4) Requires monthly payments of principal and interest. Principal amortization is based upon a 30 -year amortization schedule. (5) Interest is fixed until March 2018 . (6) Loan agreement includes a zero-percent LIBOR floor. The corresponding swaps do not include such a floor. (7) $400.0 million revolving credit facility. Unused commitment fees range from 0.15% to 0.20% . (8) See Note 12 for our fair value disclosures. (9) At March 31, 2017 , the minimum future principal payments due on our secured notes payable and revolving credit facility, excluding any maturity extension options, were as follows (in thousands): Twelve months ending March 31: 2018 $ 358,828 2019 493,590 2020 565,040 2021 708,080 2022 300,000 Thereafter 2,002,401 Total future principal payments $ 4,427,939 (10) At March 31, 2017 , the weighted average remaining life, including extension options, of our total consolidated term debt (excluding our revolving credit facility) was 4.6 years . For the $4.11 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 interest was fixed was 2.9 years , (iii) annual interest rate was 3.28% and (iv) effective interest rate was 3.43% (including the non-cash amortization of deferred loan costs). Except as otherwise noted below, each loan (including our revolving credit facility) is secured by 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. The following table summarizes (in thousands) our fixed and floating rate debt: Description Principal Balance as of March 31, 2017 Principal Balance as of December 31, 2016 Aggregate swapped to fixed rate loans $ 2,985,480 $ 2,985,480 Aggregate fixed rate loans 1,126,459 1,131,603 Aggregate floating rate loans 316,000 291,000 Total Debt $ 4,427,939 $ 4,408,083 (11) Deferred loan costs are net of accumulated amortization of $17.5 million and $15.4 million at March 31, 2017 and December 31, 2016 respectively. The table below (in thousands) sets forth amortization of deferred loan costs, which is included in Interest Expense in our consolidated statement of operations: Three Months Ended March 31, 2017 2016 Deferred loan cost amortization $ 2,098 $ 1,319 |
Interest Payable, Accounts Pa31
Interest Payable, Accounts Payable and Deferred Revenue (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Schedule Of Accounts Payable And Accrued Liabilities | Interest payable, accounts payable and deferred revenue consisted of the following (in thousands): March 31, 2017 December 31, 2016 Interest payable $ 11,000 $ 9,561 Accounts payable and accrued liabilities 57,111 36,880 Deferred revenue 29,205 28,788 Total interest payable, accounts payable and deferred revenue $ 97,316 $ 75,229 |
Derivative Contracts (Tables)
Derivative Contracts (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Other Derivatives | As of March 31, 2017 , all of our interest rate swaps, which include the interest rate swaps of our consolidated JVs and our unconsolidated Funds, were designated as cash flow hedges: Number of Interest Rate Swaps Notional (in thousands) Consolidated derivatives (1) 22 $ 2,985,480 Unconsolidated Funds' derivatives (2) 2 $ 435,000 ___________________________________________________ (1) The notional amount includes 100% , not our pro-rata share, of our consolidated JVs' derivatives. (2) The notional amount includes 100% , not our pro-rata share, of our unconsolidated Funds' derivatives. |
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) March 31, 2017 December 31, 2016 Consolidated derivatives (2) $ 3,596 $ 7,689 Unconsolidated Funds' derivatives (3) $ — $ — __________________________________________________________________________________ (1) Includes accrued interest and excludes adjustments for credit risk. (2) Includes 100% , not our pro-rata share, of our consolidated JVs' derivatives. (3) Our unconsolidated Funds did not have any derivatives in a liability position. |
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) March 31, 2017 December 31, 2016 Our derivatives (2) $ 40,748 $ 35,144 Our Funds' derivatives (3) $ 3,904 $ 3,724 ___________________________________________________ (1) Includes accrued interest and excludes adjustments for credit risk. (2) Includes 100% , not our pro-rata share, of our consolidated JVs' derivatives. (3) Includes 100% , not our pro-rata share, of our unconsolidated Funds' derivatives. |
Effect Of Derivative Instruments On Consolidated Statements Of Operations | The table below presents (in thousands) the effect of derivative instruments on our AOCI and statements of operations: Three Months Ended March 31, 2017 2016 Derivatives Designated as Cash Flow Hedges: Gain (loss) recorded in AOCI - Consolidated derivatives (1)(5) $ 4,722 $ (28,812 ) Gain (loss) recorded in AOCI - unconsolidated Funds' derivatives (2)(5) $ 99 $ (611 ) Loss reclassified from AOCI - Consolidated derivatives (3)(5) $ (5,100 ) $ (8,710 ) Gain (loss) reclassified from AOCI - unconsolidated Funds' derivatives (4)(5) $ 92 $ (105 ) Gain (loss) recorded - Consolidated derivatives (6) $ 13 $ — Derivatives Not Designated as Cash Flow Hedges: Gain (loss) recorded as interest expense (7) $ — $ — ___________________________________________________ (1) Represents the effective portion of the change in fair value of interest rate swaps. (2) Represents our share of the effective portion of the change in fair value of our unconsolidated Funds' interest rate swaps. (3) Reclassified from AOCI as an increase to Interest expense. (4) Reclassified from AOCI as a increase (decrease) to Income, including depreciation, from unconsolidated real estate funds (our share). (5) See the reconciliation of our AOCI in Note 10 . (6) Represents the ineffective portion of the change in fair value of interest rate swaps, which is recorded as a reduction (increase) to interest expense. (7) We do not have any derivatives that are not designated as cash flow hedges. |
Schedule of Future Reclassifications from AOCI | At March 31, 2017 , our estimate of the AOCI related to derivatives, designated as cash flow hedges, that will be reclassified to earnings during the next twelve months as swap interest payments are made, is presented in the table below (in thousands): Consolidated derivatives (1) $ 5,279 Unconsolidated Funds' derivatives (2) $ (158 ) ________________________________________ (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) | 3 Months Ended |
Mar. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Condensed Consolidated Statements Of Equity | The tables below present (in thousands) our condensed consolidated statements of equity: DEI Stockholders' Equity Noncontrolling Interests Total Equity Balance as of January 1, 2017 $ 1,921,143 $ 1,092,928 $ 3,014,071 Net income 19,049 2,731 21,780 Cash flow hedge fair value adjustments 7,702 2,127 9,829 Contributions to consolidated JV — 250 250 Dividends and distributions (35,223 ) (9,632 ) (44,855 ) Exchange of OP units for common stock 4,523 (4,523 ) — Exercise of stock options (1) (52,704 ) — (52,704 ) Stock-based compensation — 2,936 2,936 Balance as of March 31, 2017 $ 1,864,490 $ 1,086,817 $ 2,951,307 __________________________________________________ (1) Reflects withholding taxes. We issued shares of our common stock for the exercise of stock options on a net settlement basis (net of the exercise price and related taxes). DEI Stockholders' Equity Noncontrolling Interests Total Equity Balance as of January 1, 2016 $ 1,926,211 $ 355,337 $ 2,281,548 Net income 15,366 680 16,046 Cash flow hedge fair value adjustments (18,028 ) (2,580 ) (20,608 ) Contributions — 320,000 320,000 Dividends and distributions (32,424 ) (6,098 ) (38,522 ) Exchange of OP units for common stock 5,847 (5,847 ) — Exercise of stock options (445 ) — (445 ) Stock-based compensation — 2,596 2,596 Balance as of March 31, 2016 $ 1,896,527 $ 664,088 $ 2,560,615 |
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: Three Months Ended March 31, 2017 2016 Net income attributable to common stockholders $ 19,049 $ 15,366 Transfers from noncontrolling interests: Exchange of OP Units with noncontrolling interests 4,523 5,847 Net transfers from noncontrolling interests 4,523 5,847 Change from net income attributable to common stockholders and transfers from noncontrolling interests $ 23,572 $ 21,213 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The table below presents (in thousands) a reconciliation of our AOCI, which consists solely of adjustments related to derivatives designated as cash flow hedges for the three months ended March 31 : 2017 2016 Beginning balance $ 15,156 $ (9,285 ) Other comprehensive income (loss) before reclassifications - our derivatives 4,722 (28,812 ) Other comprehensive income (loss) before reclassifications - our Fund's derivatives 99 (611 ) Reclassifications from AOCI - our derivatives (2) 5,100 8,710 Reclassifications from AOCI - our Fund's derivatives (3) (92 ) 105 Net current period OCI 9,829 (20,608 ) Less OCI attributable to noncontrolling interests (2,127 ) 2,580 OCI attributable to common stockholders 7,702 (18,028 ) Ending balance $ 22,858 $ (27,313 ) ___________________________________________________ (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 an (increase) decrease to Income, including depreciation, from unconsolidated real estate funds. |
EPS (Tables)
EPS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The table below presents the calculation of basic and diluted EPS: Three Months Ended March 31, 2017 2016 Numerator (in thousands): Net income attributable to common stockholders $ 19,049 $ 15,366 Allocation to participating securities: Unvested LTIP Units (98 ) (84 ) Numerator for basic and diluted net income attributable to common stock holders $ 18,951 $ 15,282 Denominator (in thousands): Weighted average shares of common stock outstanding - basic 152,490 147,236 Effect of dilutive securities: Stock options (1) 1,165 4,215 Weighted average shares of common stock and common stock equivalents outstanding - diluted 153,655 151,451 Basic EPS: Net income attributable to common stockholders per share $ 0.124 $ 0.104 Diluted EPS: Net income attributable to common stockholders per share $ 0.123 $ 0.101 ____________________________________________________ (1) The following securities (in thousands) were excluded from the computation of the weighted average shares of common stock and common stock equivalents outstanding - diluted because the effect of including them would be anti-dilutive to the calculation of diluted EPS: Three Months Ended March 31, 2017 2016 OP Units 24,661 25,549 Vested LTIP Units 762 815 |
Fair Value of Financial Instr35
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Estimated Fair Value of Secured Notes Payable | The table below presents (in thousands) the estimated fair value of our secured notes payable: Secured Notes Payable: March 31, 2017 December 31, 2016 Fair value $ 4,418,661 $ 4,429,224 Carrying value $ 4,402,939 $ 4,408,083 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The table below presents (in thousands) the estimated fair value of our derivatives: March 31, 2017 December 31, 2016 Derivative Assets: Fair value - consolidated derivatives (1) $ 41,234 $ 35,656 Fair value - unconsolidated Funds' derivatives (2) $ 3,840 $ 3,605 Derivative Liabilities: Fair value - consolidated derivatives (1) $ 2,600 $ 6,830 Fair value - unconsolidated Funds' derivatives (2) $ — $ — ____________________________________________________ (1) Consolidated derivatives, which include 100% , not our pro-rata share, of our consolidated JVs' 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 our unconsolidated Funds' derivatives. Our pro-rata share of the amounts related to the unconsolidated Funds' derivatives is included in our Investment in unconsolidated real estate funds in our consolidated balance sheet. See Note 5 for more information regarding our unconsolidated Funds. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Operating Activity Within Reportable Segments | The table below presents (in thousands) the operating activity of our reportable segments: Three Months Ended March 31, 2017 2016 Office Segment Total office revenues $ 170,348 $ 144,379 Office expenses (54,885 ) (47,883 ) Office Segment profit 115,463 96,496 Multifamily Segment Total multifamily revenues 24,133 24,193 Multifamily expenses (5,947 ) (6,031 ) Multifamily Segment profit 18,186 18,162 Total profit from all segments $ 133,649 $ 114,658 |
Reconciliation Of Segment Profit To Net Income Attributable To Common Stockholders | The table below (in thousands) is a reconciliation of the total profit from all segments to net income attributable to common stockholders: Three Months Ended March 31, 2017 2016 Total profit from all segments $ 133,649 $ 114,658 General and administrative (10,156 ) (8,071 ) Depreciation and amortization (67,374 ) (55,552 ) Other income 2,162 2,089 Other expenses (1,724 ) (3,004 ) Income, including depreciation, from unconsolidated real estate funds 2,177 1,586 Interest expense (36,954 ) (35,660 ) Net income 21,780 16,046 Less: Net income attributable to noncontrolling interests (2,731 ) (680 ) Net income attributable to common stockholders $ 19,049 $ 15,366 |
Future Minimum Lease Rental R37
Future Minimum Lease Rental Receipts (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 leases at March 31, 2017 : Twelve months ending March 31: 2018 $ 493,666 2019 428,623 2020 372,372 2021 306,184 2022 230,853 Thereafter 634,361 Total future minimum base rentals (1) $ 2,466,059 _____________________________________________________ (1) Does not include (i) residential leases, which typically have a term of one year or less, (ii) holdover rent, (iii) other types of rent such as storage rent and antenna rent, (iv) tenant reimbursements, (v) straight line rent, (vi) amortization/accretion of acquired above/below-market lease intangibles and (vii) 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) | 3 Months Ended |
Mar. 31, 2017 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Future Minimum Ground Lease Payments | the future minimum ground lease payments as of March 31, 2017 : Twelve months ending March 31: 2018 $ 733 2019 733 2020 733 2021 733 2022 733 Thereafter 47,461 Total future minimum lease payments (1) $ 51,126 ___________________________________________________ (1) Lease term ends on December 31, 2086 . Ground rent is fixed at $733 thousand per year until February 28, 2019 , and will then 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) | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Debt Related to Unconsolidated Funds | The table below summarizes our Funds' debt as of March 31, 2017 . The amounts represent 100% (not our pro-rata share) of amounts related to our Funds: Fund (1) Loan Maturity Date Principal Balance (in millions) Variable Interest Rate Swap Fixed Interest Rate Swap Maturity Date Fund X (2) 5/1/2018 $ 325.0 LIBOR + 1.75% 2.35% 5/1/2017 Partnership X (3) 3/1/2023 110.0 LIBOR + 1.40% 2.30% 3/1/2021 $ 435.0 ___________________________________________________ (1) See Note 5 for more information regarding our unconsolidated Funds. (2) Floating rate term loan, swapped to fixed, which is secured by six properties and requires monthly payments of interest only, with the outstanding principal due upon maturity. As of March 31, 2017 , assuming a zero-percent LIBOR interest rate during the remaining life of the swap, the maximum future payments under the swap agreement were $0.2 million . (3) Floating rate term loan, swapped to fixed, which is secured by two properties and requires monthly payments of interest only, with the outstanding principal due upon maturity. As of March 31, 2017 , assuming a zero-percent LIBOR interest rate during the remaining life of the swap, the maximum future payments under the swap agreement were $3.9 million . |
Overview (Details)
Overview (Details) $ in Millions | Mar. 31, 2017USD ($) |
Overview [Line Items] | |
Variable interest entity, assets | $ 7,590 |
Variable interest entity, assets related to real estate held for investment | 7,180 |
Variable interest entity, liabilities | 4,640 |
Variable interest entity, equity | 2,950 |
Variable interest entity, equity, portion attributable to noncontrolling interest | $ 1,090 |
Overview Schedule of Properties
Overview Schedule of Properties (Details) | Mar. 31, 2017land_parceloffice_property |
Real Estate Properties [Line Items] | |
Number of office properties owned | 67 |
Total properties | 77 |
Wholly Owned Properties [Member] | |
Real Estate Properties [Line Items] | |
Number of office properties owned | 52 |
Number of multifamily properties owned | 10 |
Number of land parcels | land_parcel | 2 |
Consolidated Properties [Member] | |
Real Estate Properties [Line Items] | |
Number of office properties owned | 7 |
Partially Owned Properties [Member] | |
Real Estate Properties [Line Items] | |
Number of office properties owned | 8 |
Total properties | 8 |
Reportable Legal Entities [Member] | |
Real Estate Properties [Line Items] | |
Number of office properties owned | 59 |
Total properties | 69 |
Reportable Legal Entities [Member] | Wholly Owned Properties [Member] | |
Real Estate Properties [Line Items] | |
Number of office properties owned | 52 |
Number of multifamily properties owned | 10 |
Reportable Legal Entities [Member] | Consolidated Properties [Member] | |
Real Estate Properties [Line Items] | |
Number of office properties owned | 7 |
Reportable Legal Entities [Member] | Partially Owned Properties [Member] | |
Real Estate Properties [Line Items] | |
Number of office properties owned | 0 |
Investment in Real Estate - Nar
Investment in Real Estate - Narrative (Details) $ in Millions | Feb. 29, 2016USD ($)property | Apr. 25, 2017property | Mar. 31, 2017office_property | May 31, 2016 |
Real Estate Acquisition [Line Items] | ||||
Number of office properties owned | office_property | 77 | |||
Westwood Portfolio [Member] | Corporate Joint Venture [Member] | ||||
Real Estate Acquisition [Line Items] | ||||
Consideration transferred, excluding credits received | $ | $ 1,340 | |||
Percentage of equity contributed in joint venture | 60.00% | 30.00% | ||
Westwood Portfolio [Member] | Corporate Joint Venture [Member] | Office Building [Member] | ||||
Real Estate Acquisition [Line Items] | ||||
Number of office properties owned | 4 | |||
Corporate Joint Venture [Member] | Subsequent Event [Member] | Santa Monica Properties [Member] | Office Building [Member] | ||||
Real Estate Acquisition [Line Items] | ||||
Number of office properties owned | 2 |
Investment in Real Estate - Sum
Investment in Real Estate - Summary of Preliminary Purchase Accounting and Funding Sources for the Acquisition (Details) ft² in Thousands, $ in Thousands | May 31, 2016USD ($) | Feb. 29, 2016USD ($)ft² | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Source of funds: | ||||
Credit facility | $ 4,427,939 | $ 4,408,083 | ||
Long-term debt | 4,391,410 | 4,369,537 | ||
Deposits in escrow | 24,000 | 0 | ||
Percentage of loan | 100.00% | |||
Westwood Portfolio [Member] | Other Assets [Member] | ||||
Source of funds: | ||||
Deposits in escrow | $ 75,000 | |||
Corporate Joint Venture [Member] | Secured Debt [Member] | Term Loan with Maturity Date of February 28, 2023 [Member] | ||||
Source of funds: | ||||
Credit facility | 580,000 | $ 580,000 | 580,000 | |
Loan costs | $ 11,200 | |||
Debt instrument, term | 7 years | |||
Fixed interest rate | 2.37% | |||
Fixed interest rate, term | 5 years | |||
Corporate Joint Venture [Member] | Secured Debt [Member] | Term Loan with Maturity Date of February 28, 2023 [Member] | LIBOR [Member] | ||||
Source of funds: | ||||
Basis spread | 1.40% | |||
Corporate Joint Venture [Member] | Westwood Portfolio [Member] | ||||
Business Acquisition [Line Items] | ||||
Building square footage | ft² | 1,725 | |||
Uses of funds - Investment in real estate: | ||||
Land | $ 94,996 | |||
Buildings and improvements | 1,236,786 | |||
Tenant improvements and lease intangibles | 50,439 | |||
Acquired above and below-market leases, net(3) | (49,708) | |||
Net assets and liabilities acquired | 1,332,513 | |||
Source of funds: | ||||
Cash on hand | 153,745 | |||
Noncontrolling interests | 320,000 | |||
Total source of funds | $ 1,332,513 | |||
Percentage of equity contributed in joint venture | 30.00% | 60.00% | ||
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 | $ 1,100 | |||
Weighted average useful live of above and below market leases | 4 years 5 months | |||
Cash paid at closing | $ 67,500 | |||
Corporate Joint Venture [Member] | Westwood Portfolio [Member] | Pro Forma [Member] | ||||
Business Acquisition [Line Items] | ||||
Building square footage | ft² | 1,725 | |||
Uses of funds - Investment in real estate: | ||||
Land | 94,996 | |||
Buildings and improvements | 1,236,786 | |||
Tenant improvements and lease intangibles | 50,439 | |||
Acquired above and below-market leases, net(3) | (49,708) | |||
Net assets and liabilities acquired | 1,332,513 | |||
Source of funds: | ||||
Cash on hand | 153,745 | |||
Noncontrolling interests | 560,000 | |||
Total source of funds | 1,332,513 | |||
Corporate Joint Venture [Member] | Westwood Portfolio [Member] | Scenario, Adjustment [Member] | ||||
Source of funds: | ||||
Noncontrolling interests | $ 240,000 | |||
Corporate Joint Venture [Member] | Westwood Portfolio [Member] | Line of Credit [Member] | ||||
Source of funds: | ||||
Credit facility | 290,000 | |||
Corporate Joint Venture [Member] | Westwood Portfolio [Member] | Line of Credit [Member] | Pro Forma [Member] | ||||
Source of funds: | ||||
Credit facility | 50,000 | |||
Corporate Joint Venture [Member] | Westwood Portfolio [Member] | Line of Credit [Member] | Scenario, Adjustment [Member] | ||||
Source of funds: | ||||
Credit facility | (240,000) | |||
Corporate Joint Venture [Member] | Westwood Portfolio [Member] | Secured Debt [Member] | ||||
Source of funds: | ||||
Long-term debt | $ 568,768 | |||
Corporate Joint Venture [Member] | Westwood Portfolio [Member] | Secured Debt [Member] | Pro Forma [Member] | ||||
Source of funds: | ||||
Long-term debt | 568,768 | |||
Subsidiaries [Member] | ||||
Source of funds: | ||||
Credit facility | $ 3,701,939 | 3,682,083 | ||
Subsidiaries [Member] | Line of Credit [Member] | Revolving Credit Facility With Maturity Date 8/21/20 [Member] | ||||
Source of funds: | ||||
Credit facility | $ 25,000 | $ 0 | ||
Subsidiaries [Member] | Line of Credit [Member] | Revolving Credit Facility With Maturity Date 8/21/20 [Member] | LIBOR [Member] | ||||
Source of funds: | ||||
Basis spread | 1.40% | 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 | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Business Acquisition [Line Items] | ||
Total office revenues | $ 170,348 | $ 144,379 |
Net income attributable to common stockholders(1) | 19,049 | 15,366 |
Westwood Portfolio [Member] | ||
Business Acquisition [Line Items] | ||
Total office revenues | 23,949 | 8,223 |
Net income attributable to common stockholders(1) | 1,034 | (2,214) |
Net income excluding transaction costsLoss) Attributable to Common Stockholders, Excluding Transaction Costs | $ 1,000 | $ (300) |
Investment in Real Estate - Pro
Investment in Real Estate - Pro Forma Results (Details) - Westwood Portfolio [Member] $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Pro forma revenues | $ | $ 181,900 |
Pro forma net income attributable to common stockholders | $ | $ 16,404 |
Pro forma net income attributable to common stockholders per share – basic (in dollars per share) | $ / shares | $ 0.00111 |
Pro forma net income attributable to common stockholders per share – diluted (in dollars per share) | $ / shares | $ 0.00108 |
Acquired Lease Intangibles - Su
Acquired Lease Intangibles - Summary Of Acquired Lease Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Acquired lease intangible assets, net | $ 4,833 | $ 5,147 | |
Acquired lease intangible liabilities, net | 62,685 | 67,191 | |
Amortization/accretion of above/below-market leases | 4,192 | $ 3,304 | |
Above Market Tenant Leases [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Off-market lease, assets | 5,045 | 5,110 | |
Accumulated amortization | (2,608) | (2,379) | |
Below Market Ground Leases [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Off-market lease, assets | 3,198 | 3,198 | |
Accumulated amortization | (802) | (782) | |
Below Market Tenant Leases [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Off-market lease, liabilities | 102,852 | 104,925 | |
Accumulated accretion | (43,662) | (41,241) | |
Tenant Lease [Member] | Operating Lease Revenue [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization/accretion of above/below-market leases | 4,184 | 3,295 | |
Above Market Ground Leases [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Off-market lease, liabilities | 4,017 | 16,200 | |
Accumulated accretion | (522) | $ (12,693) | |
Above Market Ground Leases [Member] | Office Parking and Other Income [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization/accretion of above/below-market leases | (4) | (4) | |
Above Market Ground Leases [Member] | Office Expense [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization/accretion of above/below-market leases | $ 12 | $ 13 |
Investments In Unconsolidated47
Investments In Unconsolidated Real Estate Funds - Narrative (Details) ft² in Millions | 3 Months Ended |
Mar. 31, 2017ft²office_propertyNumber_of_funds_managed | |
Schedule of Equity Method Investments [Line Items] | |
Number of office properties owned | 77 |
Percentage of amounts related to the Fund | 100.00% |
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 | 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 | ft² | 1.8 |
Investments In Unconsolidated48
Investments In Unconsolidated Real Estate Funds - Summary of Cash Distributions Received from Funds (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Real Estate Investments, Net [Abstract] | ||
Operating distributions received | $ 2,177 | $ 375 |
Capital distributions received | 1,407 | 15,773 |
Total distributions received | $ 3,584 | $ 16,148 |
Investments In Unconsolidated49
Investments In Unconsolidated Real Estate Funds - Summary Of Statement Of Financial Position For Investments In Unconsolidated Real Estate Funds (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Real Estate Investments, Net [Abstract] | ||
Total assets | $ 688,492 | $ 689,991 |
Total liabilities | 449,994 | 448,522 |
Total equity | $ 238,498 | $ 241,469 |
Investments In Unconsolidated50
Investments In Unconsolidated Real Estate Funds - Summary Of Statement Of Operations For Investments In Unconsolidated Real Estate Funds (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Real Estate Investments, Net [Abstract] | ||
Total revenues | $ 18,625 | $ 17,475 |
Operating income | 4,926 | 4,242 |
Net income | $ 2,161 | $ 1,404 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Other Assets [Abstract] | ||
Restricted cash | $ 121 | $ 121 |
Prepaid expenses | 7,300 | 6,779 |
Other indefinite-lived intangible | 1,988 | 1,988 |
Deposits in escrow | 24,000 | 0 |
Furniture, fixtures and equipment, net | 984 | 1,093 |
Other | 1,978 | 1,933 |
Total other assets | $ 36,371 | $ 11,914 |
Secured Notes Payable and Rev52
Secured Notes Payable and Revolving Credit Facility, net - Schedule Of Secured Notes Payable and Revolving Credit Facility (Details) - USD ($) $ in Thousands | Feb. 29, 2016 | Mar. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | |||
Total Debt | $ 4,427,939 | $ 4,408,083 | |
Deferred loan costs, net | (36,529) | (38,546) | |
Total Debt, Net | $ 4,391,410 | 4,369,537 | |
Weighted average remaining life of outstanding term debt (in years) | 4 years 7 months | ||
Debt at fixed interest rate | $ 4,110,000 | ||
Weighted average remaining life of interest rate swaps and fixed rate debt (in years) | 4 years 9 months | ||
Weighted average annual interest rate (as a percent) | 3.28% | ||
Weighted average effective interest rate, including non-cash amortization of deferred loan costs (as a percent) | 3.43% | ||
Accumulated amortization | $ 17,500 | 15,400 | |
Revolving Credit Facility With Maturity Date 8/21/20 [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 400,000 | ||
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 | $ 2,985,480 | 2,985,480 | |
Aggregate Fixed Rate Loans [Member] | |||
Debt Instrument [Line Items] | |||
Total Debt | $ 1,126,459 | 1,131,603 | |
Weighted average remaining period during which interest was fixed (in years) | 2 years 11 months | ||
Variable Rate Loans [Member] | |||
Debt Instrument [Line Items] | |||
Total Debt | $ 316,000 | 291,000 | |
Subsidiaries [Member] | |||
Debt Instrument [Line Items] | |||
Total Debt | 3,701,939 | 3,682,083 | |
Subsidiaries [Member] | Secured Debt [Member] | Term Loan With Effective Annual Fixed Interest Rate At 3.00% [Member] | |||
Debt Instrument [Line Items] | |||
Total Debt | $ 0 | 1,000 | |
Fixed interest rate | 3.00% | ||
Subsidiaries [Member] | Secured Debt [Member] | Term Loan With Effective Annual Fixed Interest Rate At 4.14% [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Aug. 5, 2018 | ||
Total Debt | $ 348,379 | 349,933 | |
Fixed interest rate | 4.14% | ||
Subsidiaries [Member] | Secured Debt [Member] | Term Loan With Effective Annual Fixed Interest Rate At 4.00% [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Feb. 1, 2019 | ||
Total Debt | $ 149,188 | 149,911 | |
Fixed interest rate | 4.00% | ||
Subsidiaries [Member] | Secured Debt [Member] | Term Loan With Effective Annual Fixed Interest Rate at 3.85% [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Jun. 5, 2019 | ||
Total Debt | $ 284,578 | 285,000 | |
Fixed interest rate | 3.85% | ||
Subsidiaries [Member] | Secured Debt [Member] | Fannie Mae Loans, Maturity Date October 1, 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Oct. 1, 2019 | ||
Total Debt | $ 145,000 | 145,000 | |
Variable Interest Rate | LIBOR + 1.25% | ||
Subsidiaries [Member] | Secured Debt [Member] | Fannie Mae Loans, Maturity Date October 1, 2019 [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.25% | ||
Subsidiaries [Member] | Secured Debt [Member] | Term Loan With Effective Annual Fixed Interest Rate At 4.46% [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Mar. 1, 2020 | ||
Total Debt | $ 344,314 | 345,759 | |
Fixed interest rate | 4.46% | ||
Subsidiaries [Member] | Secured Debt [Member] | Entity One Rate Six With Effective Annual Fixed Interest Rate At 3.65% [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Nov. 1, 2020 | ||
Total Debt | $ 388,080 | 388,080 | |
Variable Interest Rate | LIBOR + 1.65% | ||
Fixed interest rate | 3.65% | ||
Swap Maturity Date | Nov. 1, 2017 | ||
Subsidiaries [Member] | Secured Debt [Member] | Entity One Rate Six With Effective Annual Fixed Interest Rate At 3.65% [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.65% | ||
Subsidiaries [Member] | Secured Debt [Member] | Term Loan With Effective Annual Fixed Interest Rate At 2.77% [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Apr. 15, 2022 | ||
Total Debt | $ 340,000 | 340,000 | |
Variable Interest Rate | LIBOR + 1.40% | ||
Fixed interest rate | 2.77% | ||
Swap Maturity Date | Apr. 1, 2020 | ||
Subsidiaries [Member] | Secured Debt [Member] | Term Loan With Effective Annual Fixed Interest Rate At 2.77% [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.40% | ||
Subsidiaries [Member] | Secured Debt [Member] | Term Loan With Effective Annual Fixed Interest Rate At 3.06% [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Jul. 27, 2022 | ||
Total Debt | $ 180,000 | 180,000 | |
Variable Interest Rate | LIBOR + 1.45% | ||
Fixed interest rate | 3.06% | ||
Swap Maturity Date | Jul. 1, 2020 | ||
Subsidiaries [Member] | Secured Debt [Member] | Term Loan With Effective Annual Fixed Interest Rate At 3.06% [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.45% | ||
Subsidiaries [Member] | Secured Debt [Member] | Term Loan With Effective Annual Fixed Interest Rate At 2.64% [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Nov. 1, 2022 | ||
Total Debt | $ 400,000 | 400,000 | |
Variable Interest Rate | LIBOR + 1.35% | ||
Fixed interest rate | 2.64% | ||
Swap Maturity Date | Nov. 1, 2020 | ||
Subsidiaries [Member] | Secured Debt [Member] | Term Loan With Effective Annual Fixed Interest Rate At 2.64% [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.35% | ||
Subsidiaries [Member] | Secured Debt [Member] | Term Loan With Effective Annual Fixed Interest Rate At 2.57% [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Jun. 23, 2023 | ||
Total Debt | $ 360,000 | 360,000 | |
Variable Interest Rate | LIBOR + 1.55% | ||
Fixed interest rate | 2.57% | ||
Swap Maturity Date | Jul. 1, 2021 | ||
Subsidiaries [Member] | Secured Debt [Member] | Term Loan With Effective Annual Fixed Interest Rate At 2.57% [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.55% | ||
Subsidiaries [Member] | Secured Debt [Member] | Term Loan With Effective Annual Fixed Interest Rate At 3.62% [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Dec. 23, 2023 | ||
Total Debt | $ 220,000 | 220,000 | |
Variable Interest Rate | LIBOR + 1.70% | ||
Fixed interest rate | 3.62% | ||
Swap Maturity Date | Dec. 23, 2021 | ||
Subsidiaries [Member] | Secured Debt [Member] | Term Loan With Effective Annual Fixed Interest Rate At 3.46% [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Jan. 1, 2024 | ||
Total Debt | $ 300,000 | 300,000 | |
Variable Interest Rate | LIBOR + 1.55% | ||
Fixed interest rate | 3.46% | ||
Swap Maturity Date | Jan. 1, 2022 | ||
Subsidiaries [Member] | Secured Debt [Member] | Fannie Mae Loan With Maturity Date Of April 1, 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Apr. 1, 2025 | ||
Total Debt | $ 102,400 | 102,400 | |
Variable Interest Rate | LIBOR + 1.25% | ||
Fixed interest rate | 2.84% | ||
Swap Maturity Date | Mar. 1, 2020 | ||
Subsidiaries [Member] | Secured Debt [Member] | Fannie Mae Loan With Maturity Date Of April 1, 2025 [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.25% | ||
Subsidiaries [Member] | Secured Debt [Member] | Fannie Mae Loan with Maturity Date of December 1, 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Dec. 1, 2025 | ||
Total Debt | $ 115,000 | 115,000 | |
Variable Interest Rate | LIBOR + 1.25% | ||
Fixed interest rate | 2.76% | ||
Swap Maturity Date | Dec. 1, 2020 | ||
Subsidiaries [Member] | Secured Debt [Member] | Fannie Mae Loan with Maturity Date of December 1, 2020 [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.25% | ||
Subsidiaries [Member] | Line of Credit [Member] | Revolving Credit Facility With Maturity Date 8/21/20 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Aug. 21, 2020 | ||
Total Debt | $ 25,000 | 0 | |
Variable Interest Rate | LIBOR + 1.40% | ||
Subsidiaries [Member] | Line of Credit [Member] | Revolving Credit Facility With Maturity Date 8/21/20 [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.40% | 1.40% | |
Consolidated Joint Ventures [Member] | Secured Debt [Member] | Term Loan With Maturity Date 7/21/2019 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Jul. 21, 2019 | ||
Total Debt | $ 146,000 | 146,000 | |
Variable Interest Rate | LIBOR + 1.55% | ||
Consolidated Joint Ventures [Member] | Secured Debt [Member] | Term Loan With Maturity Date 7/21/2019 [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.55% | ||
Consolidated Joint Ventures [Member] | Secured Debt [Member] | Term Loan with Maturity Date of February 28, 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Feb. 28, 2023 | ||
Total Debt | $ 580,000 | $ 580,000 | $ 580,000 |
Variable Interest Rate | LIBOR + 1.40% | ||
Fixed interest rate | 2.37% | ||
Swap Maturity Date | Mar. 1, 2021 | ||
Consolidated Joint Ventures [Member] | Secured Debt [Member] | Term Loan with Maturity Date of February 28, 2023 [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.40% | ||
Consolidated Joint Ventures [Member] | Secured Debt [Member] | Term Loan with Maturity Date of February 28, 2023 [Member] | LIBOR [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread | 0.00% |
Secured Notes Payable and Rev53
Secured Notes Payable and Revolving Credit Facility, net - Schedule Of Minimum Future Principal Payments Due On Secured Notes Payable (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Secured Debt [Abstract] | ||
2,018 | $ 358,828 | |
2,019 | 493,590 | |
2,020 | 565,040 | |
2,021 | 708,080 | |
2,022 | 300,000 | |
Thereafter | 2,002,401 | |
Total future principal payments | $ 4,427,939 | $ 4,408,083 |
Secured Notes Payable and Rev54
Secured Notes Payable and Revolving Credit Facility, net - Schedule of Loan Costs and Deferred Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Debt Instrument [Line Items] | ||
Deferred loan cost amortization | $ 2,098 | $ 1,319 |
Interest Expense [Member] | ||
Debt Instrument [Line Items] | ||
Deferred loan cost amortization | $ 2,098 | $ 1,319 |
Interest Payable, Accounts Pa55
Interest Payable, Accounts Payable and Deferred Revenue (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Interest payable | $ 11,000 | $ 9,561 |
Accounts payable and accrued liabilities | 57,111 | 36,880 |
Deferred revenue | 29,205 | 28,788 |
Total interest payable, accounts payable and deferred revenue | $ 97,316 | $ 75,229 |
Derivative Contracts - Summary
Derivative Contracts - Summary of Derivatives (Details) - Derivatives Designated as Cash Flow Hedges [Member] - Cash Flow Hedging [Member] - Interest Rate Swap [Member] $ in Thousands | Mar. 31, 2017USD ($)instrument |
Derivative [Line Items] | |
Number of Instruments | instrument | 22 |
Notional | $ | $ 2,985,480 |
Percent of notional amount related to the Fund | 100.00% |
Unconsolidated Funds [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 | Mar. 31, 2017 | Dec. 31, 2016 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value derivatives in a liability position | $ 3,596 | $ 7,689 |
Percent of notional amount related to the Fund | 100.00% | |
Unconsolidated Funds [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value derivatives in a liability position | $ 0 | $ 0 |
Percent of notional amount related to the Fund | 100.00% |
Derivative Contracts - Counterp
Derivative Contracts - Counterparty Credit Risk (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value of derivatives in an asset position | $ 41,234 | $ 35,656 |
Interest Rate Swap [Member] | Derivatives Designated as Cash Flow Hedges [Member] | Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value of derivatives in an asset position | $ 40,748 | 35,144 |
Percent of notional amount related to the Fund | 100.00% | |
Interest Rate Swap [Member] | Derivatives Designated as Cash Flow Hedges [Member] | Cash Flow Hedging [Member] | Unconsolidated Funds [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value of derivatives in an asset position | $ 3,904 | $ 3,724 |
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 | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Derivatives Designated as Cash Flow Hedges [Member] | ||
Derivative [Line Items] | ||
Gain (loss) recorded in AOCI | $ 4,722 | $ (28,812) |
Gain (loss) reclassified from AOCI | 5,100 | 8,710 |
Derivatives Designated as Cash Flow Hedges [Member] | Interest Expense [Member] | ||
Derivative [Line Items] | ||
Gain (loss) recorded | 13 | 0 |
Derivatives Designated as Cash Flow Hedges [Member] | Unconsolidated Funds [Member] | ||
Derivative [Line Items] | ||
Gain (loss) recorded in AOCI | 99 | (611) |
Gain (loss) reclassified from AOCI | (92) | 105 |
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 | Mar. 31, 2017USD ($) |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative designated as cash flow hedge to be reclassified | $ 5,279 |
Unconsolidated Funds [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative designated as cash flow hedge to be reclassified | $ (158) |
Equity - Narrative (Details)
Equity - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||
Number of operating partnership units converted to shares of common stock | 337,000 | 426,000 | |
Shares issued (shares) | 1,300,000 | 24,000 | |
Number of stock options exercised (shares) | 3,900,000 | 65,000 | |
Common stock, shares outstanding (in shares) | 153,144,327 | 151,530,210 | |
Number of OP units and fully-vested LTIP units outstanding | 25,300,000 | ||
Number of shares of common stock issued upon redemption of one OP unit (shares) | 1 | ||
Partnership Interest [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Noncontrolling interest, ownership percentage by noncontrolling owners | 14.00% | ||
Westwood Portfolio [Member] | Corporate Joint Venture [Member] | Investor [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Contribution to joint venture | $ 320 | ||
Ownership interest in joint venture | 40.00% |
Equity - Condensed Consolidated
Equity - Condensed Consolidated Statements Of Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Douglas Emmett, Inc. Stockholders' Equity, Beginning Balance | $ 1,921,143 | |
Noncontrolling Interests, Beginning Balance | 1,092,928 | |
Total Equity, Beginning Balance | 3,014,071 | $ 2,281,548 |
Net income attributable to common stockholders | 19,049 | 15,366 |
Noncontrolling Interests, Net Income | 2,731 | 680 |
Net income | 21,780 | 16,046 |
Cash flow hedge fair value adjustment, total equity | 9,829 | (20,608) |
Contributions to consolidated JV | 250 | 320,000 |
Dividends and distributions, Douglas Emmett, Inc. Stockholders' Equity | (35,223) | (32,424) |
Dividends and distributions, total equity | (44,855) | (38,522) |
Common stock issued in exchange for OP Units | 0 | 0 |
Exercise of stock options(1) | (52,704) | (445) |
Stock-based compensation, total equity | 2,936 | 2,596 |
Douglas Emmett, Inc. Stockholders' Equity, Ending Balance | 1,864,490 | |
Noncontrolling Interests, Ending Balance | 1,086,817 | |
Total Equity, Ending Balance | 2,951,307 | 2,560,615 |
Douglas Emmett Inc Stockholders Equity [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Douglas Emmett, Inc. Stockholders' Equity, Beginning Balance | 1,921,143 | 1,926,211 |
Net income attributable to common stockholders | 19,049 | 15,366 |
Cash flow hedge fair value adjustment, Douglas Emmett, Inc. Stockholder's Equity | 7,702 | (18,028) |
Contributions to consolidated JV | 0 | 0 |
Dividends and distributions, Douglas Emmett, Inc. Stockholders' Equity | (35,223) | (32,424) |
Common stock issued in exchange for OP Units | 4,523 | 5,847 |
Exercise of stock options(1) | (52,704) | (445) |
Stock-based compensation, Douglas Emmett Stockholders' Equity | 0 | 0 |
Douglas Emmett, Inc. Stockholders' Equity, Ending Balance | 1,864,490 | 1,896,527 |
Noncontrolling Interest [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Noncontrolling Interests, Beginning Balance | 1,092,928 | 355,337 |
Noncontrolling Interests, Net Income | 2,731 | 680 |
Cash flow hedge fair value adjustment, noncontrolling interest | 2,127 | (2,580) |
Contributions to consolidated JV | 250 | 320,000 |
Dividends and distributions, noncontrolling interest | (9,632) | (6,098) |
Common stock issued in exchange for OP Units | (4,523) | (5,847) |
Exercise of stock options(1) | 0 | 0 |
Stock-based compensation, noncontrolling interest | 2,936 | 2,596 |
Noncontrolling Interests, Ending Balance | $ 1,086,817 | $ 664,088 |
Equity - Net Income Attributabl
Equity - Net Income Attributable To Common Stockholders And Transfers (To) From Noncontrolling Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Stockholders' Equity Note [Abstract] | ||
Net income attributable to common stockholders | $ 19,049 | $ 15,366 |
Exchange of OP Units with noncontrolling interests | 4,523 | 5,847 |
Net transfers from noncontrolling interests | 4,523 | 5,847 |
Change from net income attributable to common stockholders and transfers from noncontrolling interests | $ 23,572 | $ 21,213 |
Equity - Accumulated Other Comp
Equity - Accumulated Other Comprehensive Income Schedule (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | $ 15,156 | |
Net current period OCI | 9,829 | $ (20,608) |
Ending balance | 22,858 | |
Cash Flow Hedging [Member] | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | 15,156 | (9,285) |
Other comprehensive loss before reclassifications | 4,722 | (28,812) |
Reclassifications from AOCI | 5,100 | 8,710 |
Net current period OCI | 9,829 | (20,608) |
Less OCI attributable to noncontrolling interests | (2,127) | 2,580 |
OCI attributable to common stockholders | 7,702 | (18,028) |
Ending balance | 22,858 | (27,313) |
Cash Flow Hedging [Member] | Fund X [Member] | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Other comprehensive loss before reclassifications | 99 | (611) |
Reclassifications from AOCI | $ (92) | $ 105 |
Equity - Equity Compensation (D
Equity - Equity Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Stockholders' Equity Note [Abstract] | ||
Amortization of stock-based compensation | $ 2,708 | $ 2,379 |
Capitalized stock-based compensation for improvements to real estate and developments | 228 | 217 |
Intrinsic value of options exercised | $ 102,100 | $ 1,100 |
EPS (Details)
EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Net income attributable to common stockholders | $ 19,049 | $ 15,366 |
Allocation to participating securities: Unvested LTIP Units | (98) | (84) |
Numerator for basic and diluted net income attributable to common stock holders | $ 18,951 | $ 15,282 |
Weighted average shares of common stock outstanding - basic (in shares) | 152,490 | 147,236 |
Effect of dilutive securities: Stock options (in shares) | 1,165 | 4,215 |
Weighted average shares of common stock and common stock equivalents outstanding - diluted (in shares) | 153,655 | 151,451 |
Basic EPS: | ||
Net income attributable to common stockholders per share (usd per share) | $ 0.124 | $ 0.104 |
Diluted EPS: | ||
Net income attributable to common stockholders per share (usd per share) | $ 0.123 | $ 0.101 |
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) | 24,661 | 25,549 |
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) | 762 | 815 |
Fair Value of Financial Instr67
Fair Value of Financial Instruments - Estimated Fair Value of Secured Notes Payable (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value Disclosures [Abstract] | ||
Fair value | $ 4,418,661 | $ 4,429,224 |
Carrying value | $ 4,402,939 | $ 4,408,083 |
Fair Value of Financial Instr68
Fair Value of Financial Instruments - Fair Value Table (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Derivative Assets: | ||
Fair value - derivatives | $ 41,234 | $ 35,656 |
Derivative Liabilities: | ||
Fair value - derivatives | $ 2,600 | 6,830 |
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 | $ 41,234 | 35,656 |
Derivative Liabilities: | ||
Fair value - derivatives | 2,600 | 6,830 |
Level 2 | Fund X [Member] | ||
Derivative Assets: | ||
Fair value - unconsolidated Funds' derivatives | 3,840 | 3,605 |
Derivative Liabilities: | ||
Fair value - unconsolidated Funds' derivatives | $ 0 | $ 0 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 3 Months Ended |
Mar. 31, 2017segment | |
Segment Reporting [Abstract] | |
Number of reportable business segments | 2 |
Segment Reporting - Operating A
Segment Reporting - Operating Activity Within Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting Information [Line Items] | ||
Total office revenues | $ 170,348 | $ 144,379 |
Office expenses | (54,885) | (47,883) |
Total multifamily revenues | 24,133 | 24,193 |
Multifamily expenses | (5,947) | (6,031) |
Segment profit | 133,649 | 114,658 |
Operating Segments [Member] | Office Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total office revenues | 170,348 | 144,379 |
Office expenses | (54,885) | (47,883) |
Segment profit | 115,463 | 96,496 |
Operating Segments [Member] | Multifamily Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total multifamily revenues | 24,133 | 24,193 |
Multifamily expenses | (5,947) | (6,031) |
Segment profit | $ 18,186 | $ 18,162 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation Of Segment Profit To Net Income Attributable To Common Stockholders (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting [Abstract] | ||
Total profit from all segments | $ 133,649 | $ 114,658 |
General and administrative | (10,156) | (8,071) |
Depreciation and amortization | (67,374) | (55,552) |
Other income | 2,162 | 2,089 |
Other expenses | (1,724) | (3,004) |
Income, including depreciation, from unconsolidated real estate funds | 2,177 | 1,586 |
Interest expense | (36,954) | (35,660) |
Net income | 21,780 | 16,046 |
Less: Net income attributable to noncontrolling interests | (2,731) | (680) |
Net income attributable to common stockholders | $ 19,049 | $ 15,366 |
Future Minimum Lease Rental R72
Future Minimum Lease Rental Receipts (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($)land_parcel | |
Real Estate Properties [Line Items] | |
2,018 | $ 493,666 |
2,019 | 428,623 |
2,020 | 372,372 |
2,021 | 306,184 |
2,022 | 230,853 |
Thereafter | 634,361 |
Total future minimum base rentals | $ 2,466,059 |
Term of residential leases | 1 year |
Wholly Owned Properties [Member] | |
Real Estate Properties [Line Items] | |
Number of land parcels | land_parcel | 2 |
Future Minimum Lease Rental P73
Future Minimum Lease Rental Payments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
Ground lease payments | $ 183 | $ 183 |
Future Minimum Lease Rental P74
Future Minimum Lease Rental Payments - Future Minimum Ground Lease Payments (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,018 | $ 733 |
2,019 | 733 |
2,020 | 733 |
2,021 | 733 |
2,022 | 733 |
Thereafter | 47,461 |
Total future minimum lease payments | 51,126 |
Future ground rent payments per year | $ 733 |
Commitments, Contingencies an75
Commitments, Contingencies and Guarantees (Details) | 3 Months Ended | |
Mar. 31, 2017USD ($)property | Mar. 31, 2016USD ($)property | |
Loss Contingencies [Line Items] | ||
Amount accounts are insured for by Federal Deposit Insurance Corporation | $ 250,000 | |
Number of properties containing Asbestos | property | 25 | |
Contractual amount for development project | $ 8,800,000 | |
Apartment Building [Member] | ||
Loss Contingencies [Line Items] | ||
Contractual amount for development project | $ 94,100,000 | |
Apartment Building [Member] | HAWAII | ||
Loss Contingencies [Line Items] | ||
Number of apartments under construction | property | 475 | |
Estimated construction costs | $ 120,000,000 | |
Apartment Building [Member] | CALIFORNIA | ||
Loss Contingencies [Line Items] | ||
Expected number of apartments to be constructed | property | 376 | |
Minimum [Member] | Apartment Building [Member] | CALIFORNIA | ||
Loss Contingencies [Line Items] | ||
Estimated construction costs | $ 120,000,000 | |
Maximum [Member] | Apartment Building [Member] | CALIFORNIA | ||
Loss Contingencies [Line Items] | ||
Estimated construction costs | $ 140,000,000 | |
Unconsolidated Funds [Member] | ||
Loss Contingencies [Line Items] | ||
Number of properties containing Asbestos | property | 4 |
Commitments, Contingencies an76
Commitments, Contingencies and Guarantees - Schedule of Debt Related to Unconsolidated Funds (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017USD ($)property | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | ||
Long-term debt | $ 4,391,410 | $ 4,369,537 |
Fund X [Member] | ||
Debt Instrument [Line Items] | ||
Loan Maturity Date | May 1, 2018 | |
Long-term debt | $ 325,000 | |
Collateral, number of properties | property | 6 | |
Maximum future payments under the swap agreement | $ 200 | |
Fund X [Member] | Interest Rate Swap [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread | 1.75% | |
Swap Fixed Interest Rate | 2.35% | |
Swap Maturity Date | May 1, 2017 | |
Partnership X [Member] | ||
Debt Instrument [Line Items] | ||
Loan Maturity Date | Mar. 1, 2023 | |
Long-term debt | $ 110,000 | |
Collateral, number of properties | property | 2 | |
Maximum future payments under the swap agreement | $ 3,900 | |
Partnership X [Member] | Interest Rate Swap [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread | 1.40% | |
Swap Fixed Interest Rate | 2.30% | |
Swap Maturity Date | Mar. 1, 2021 | |
Unconsolidated Funds [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 435,000 |
Subsequent Events Narrative (De
Subsequent Events Narrative (Details) ft² in Thousands, $ in Thousands, shares in Millions | Apr. 25, 2017USD ($)ft²property | Apr. 30, 2017USD ($)shares | Mar. 31, 2017USD ($)office_property | Dec. 31, 2016USD ($) |
Subsequent Event [Line Items] | ||||
Secured, non-recourse, interest only loan | $ 4,402,939 | $ 4,408,083 | ||
Number of office properties owned | office_property | 77 | |||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Shares of common stock sold (in shares) | shares | 1.1 | |||
Proceeds from issuance of common stock | $ 43,900 | |||
Corporate Joint Venture [Member] | Subsequent Event [Member] | Santa Monica Properties [Member] | ||||
Subsequent Event [Line Items] | ||||
Percentage of equity contributed in joint venture | 20.00% | |||
Building square footage | ft² | 293 | |||
Purchase price | $ 352,800 | |||
Corporate Joint Venture [Member] | Subsequent Event [Member] | Office Building [Member] | Santa Monica Properties [Member] | ||||
Subsequent Event [Line Items] | ||||
Number of office properties owned | property | 2 | |||
Secured Debt [Member] | Corporate Joint Venture [Member] | Subsequent Event [Member] | LIBOR [Member] | ||||
Subsequent Event [Line Items] | ||||
Basis spread | 1.55% | |||
Secured Debt [Member] | Corporate Joint Venture [Member] | Subsequent Event [Member] | Santa Monica Properties [Member] | ||||
Subsequent Event [Line Items] | ||||
Secured, non-recourse, interest only loan | $ 142,000 |