Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 04, 2018 | |
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, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 169,917,966 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Investment in real estate: | ||
Land | $ 1,062,326 | $ 1,062,345 |
Buildings and improvements | 7,914,592 | 7,886,201 |
Tenant improvements and lease intangibles | 773,065 | 756,190 |
Property under development | 96,920 | 124,472 |
Investment in real estate, gross | 9,846,903 | 9,829,208 |
Less: accumulated depreciation and amortization | (2,067,299) | (2,012,752) |
Investment in real estate, net | 7,779,604 | 7,816,456 |
Property held for sale, net | 17,576 | 0 |
Cash and cash equivalents | 183,556 | 176,645 |
Tenant receivables, net | 2,871 | 2,980 |
Deferred rent receivables, net | 111,005 | 106,021 |
Acquired lease intangible assets, net | 3,998 | 4,293 |
Interest rate contract assets | 98,909 | 60,069 |
Investment in unconsolidated real estate funds | 110,117 | 107,735 |
Other assets | 16,264 | 18,442 |
Total Assets | 8,323,900 | 8,292,641 |
Liabilities | ||
Secured notes payable and revolving credit facility, net | 4,098,900 | 4,117,390 |
Interest payable, accounts payable and deferred revenue | 136,874 | 103,947 |
Security deposits | 49,943 | 50,414 |
Acquired lease intangible liabilities, net | 69,187 | 75,635 |
Interest rate contract liabilities | 46 | 807 |
Dividends payable | 42,483 | 42,399 |
Total liabilities | 4,397,433 | 4,390,592 |
Douglas Emmett, Inc. stockholders' equity: | ||
Common Stock, $0.01 par value, 750,000,000 authorized, 169,900,749 and 169,564,927 outstanding at March 31, 2018 and December 31, 2017, respectively | 1,699 | 1,696 |
Additional paid-in capital | 3,277,421 | 3,272,539 |
Accumulated other comprehensive income | 74,021 | 43,099 |
Accumulated deficit | (894,289) | (879,810) |
Total Douglas Emmett, Inc. stockholders' equity | 2,458,852 | 2,437,524 |
Noncontrolling interests | 1,467,615 | 1,464,525 |
Total equity | 3,926,467 | 3,902,049 |
Total Liabilities and Equity | $ 8,323,900 | $ 8,292,641 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common Stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common Stock, authorized (in shares) | 750,000,000 | 750,000,000 |
Common Stock, outstanding (in shares) | 169,900,749 | 169,564,927 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Office rental | ||
Rental revenues | $ 147,771 | $ 133,016 |
Tenant recoveries | 11,053 | 11,050 |
Parking and other income | 28,509 | 26,282 |
Total office revenues | 187,333 | 170,348 |
Multifamily rental | ||
Rental revenues | 23,061 | 22,241 |
Parking and other income | 1,853 | 1,892 |
Total multifamily revenues | 24,914 | 24,133 |
Total revenues | 212,247 | 194,481 |
Operating Expenses | ||
Office expenses | 60,356 | 54,885 |
Multifamily expenses | 6,698 | 5,947 |
General and administrative | 9,567 | 10,156 |
Depreciation and amortization | 72,498 | 67,374 |
Total operating expenses | 149,119 | 138,362 |
Operating income | 63,128 | 56,119 |
Other income | 2,630 | 2,162 |
Other expenses | (1,733) | (1,724) |
Income, including depreciation, from unconsolidated real estate funds | 1,506 | 2,177 |
Interest expense | (32,900) | (36,954) |
Net income | 32,631 | 21,780 |
Less: Net income attributable to noncontrolling interests | (4,425) | (2,731) |
Net income attributable to common stockholders | $ 28,206 | $ 19,049 |
Net income attributable to common stockholders per share – basic (usd per share) | $ 0.17 | $ 0.12 |
Net income attributable to common stockholders per share – diluted (usd per share) | 0.17 | 0.12 |
Dividends declared per common share (usd per share) | $ 0.25 | $ 0.23 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 32,631 | $ 21,780 |
Other comprehensive income: cash flow hedges | 44,369 | 9,829 |
Comprehensive income | 77,000 | 31,609 |
Less: Comprehensive income attributable to noncontrolling interests | (17,872) | (4,858) |
Comprehensive income attributable to common stockholders | $ 59,128 | $ 26,751 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating Activities | ||
Net income | $ 32,631 | $ 21,780 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Income, including depreciation, from unconsolidated real estate funds | (1,506) | (2,177) |
Depreciation and amortization | 72,498 | 67,374 |
Net accretion of acquired lease intangibles | (6,152) | (4,192) |
Straight-line rent | (5,172) | (3,588) |
Increase (decrease) in the allowance for doubtful accounts | 1,691 | (6) |
Deferred loan costs amortized and written off | 2,309 | 2,098 |
Amortization of loan premium | (51) | 0 |
Non-cash market value adjustments on interest rate contracts | 0 | 13 |
Amortization of stock-based compensation | 3,051 | 2,708 |
Operating distributions from unconsolidated real estate funds | 1,506 | 2,177 |
Change in working capital components: | ||
Tenant receivables | (1,582) | (1,220) |
Interest payable, accounts payable and deferred revenue | 16,944 | 22,641 |
Security deposits | (471) | 163 |
Other assets | 1,921 | (219) |
Net cash provided by operating activities | 117,617 | 107,552 |
Investing Activities | ||
Capital expenditures for improvements to real estate | (25,259) | (25,280) |
Capital expenditures for developments | (11,018) | (9,905) |
Deposits for property acquisitions | 0 | (24,000) |
Capital distributions from unconsolidated real estate funds | 1,953 | 1,407 |
Net cash used in investing activities | (34,324) | (57,778) |
Financing Activities | ||
Proceeds from borrowings | 485,000 | 88,000 |
Repayment of borrowings | (502,808) | (68,145) |
Loan cost payments | (2,785) | (85) |
Contributions from noncontrolling interests in consolidated JVs | 0 | 250 |
Distributions paid to noncontrolling interests | (13,085) | (9,632) |
Dividends paid to common stockholders | (42,391) | (34,852) |
Taxes paid on exercise of stock options | (313) | (52,704) |
Net cash used in financing activities | (76,382) | (77,168) |
Increase (decrease) in cash and cash equivalents and restricted cash | 6,911 | (27,394) |
Cash and cash equivalents and restricted cash - beginning balance | 176,766 | 113,048 |
Cash and cash equivalents and restricted cash - ending balance | 183,677 | 85,654 |
Operating Activities | ||
Cash paid for interest, net of capitalized interest | 29,937 | 33,400 |
Capitalized interest paid | 773 | 521 |
Non-cash Investing Transactions | ||
Accrual increase (decrease) for additions to real estate and developments | 15,995 | (554) |
Capitalized stock-based compensation for improvements to real estate and developments | 452 | 228 |
Removal of fully depreciated and amortized tenant improvements and lease intangibles | 10,630 | 13,044 |
Removal of fully amortized acquired lease intangible assets | 206 | 65 |
Removal of fully accreted acquired lease intangible liabilities | 6,038 | 2,073 |
Non-cash Financing Transactions | ||
Gain recorded in AOCI - Adoption of ASU 2017-12 - consolidated derivatives | 211 | 0 |
Gain recorded in AOCI - derivatives | 39,731 | 4,722 |
Accrual for dividends declared | 42,483 | 35,223 |
Common stock issued in exchange for OP Units | 5,199 | 4,523 |
Unconsolidated Funds | ||
Non-cash Financing Transactions | ||
Gain recorded in AOCI - derivatives | $ 4,475 | $ 99 |
Overview
Overview | 3 Months Ended |
Mar. 31, 2018 | |
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. Through our interest in our Operating Partnership and its subsidiaries, our consolidated JVs and our unconsolidated Funds, we focus on owning, acquiring, developing and managing a significant market 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. The terms "us," "we" and "our" as used in the financial statements refer to Douglas Emmett, Inc. and its subsidiaries on a consolidated basis. At March 31, 2018 , we owned a Consolidated Portfolio consisting of (i) a 16.6 million square foot office portfolio, (ii) 3,448 multifamily apartment units and (iii) fee interests in two parcels of land from which we receive rent under ground leases. We also manage and own equity interests in our unconsolidated Funds which, at March 31, 2018 , owned an additional 1.8 million square feet of office space. We manage our unconsolidated Funds alongside our Consolidated Portfolio, and we therefore present the statistics for our office portfolio on a Total Portfolio basis. As of March 31, 2018 , our portfolio (not including two parcels of land from which we receive rent under ground leases), consisted of the following office and multifamily properties (both of which include ancillary retail space): Consolidated Portfolio Total Portfolio Office Wholly-owned properties 53 53 Consolidated JV properties 10 10 Unconsolidated Fund properties — 8 63 71 Multifamily Wholly-owned properties 10 10 Total 73 81 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 of which we are the primary beneficiary. As of March 31, 2018 , the total consolidated assets, liabilities and equity of the VIEs was $8.32 billion (of which $7.78 billion related to investment in real estate), $4.40 billion and $3.93 billion (of which $1.47 billion related to noncontrolling interests), 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, 2018 . The interim financial statements should be read in conjunction with the consolidated financial statements in our 2017 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, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies We adopted ASUs during the three months ended March 31, 2018 that changed our accounting policies for revenue recognition and hedge accounting disclosed in our 2017 Annual Report on Form 10-K - see "New Accounting Pronouncements" below. The adoption of these ASUs did not have a material impact on our financial statements. We have not made any other changes to our significant accounting policies disclosed in our 2017 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 implemented by the FASB in the form of ASUs. We consider the applicability and impact of all ASUs. Other than the ASUs discussed below, the FASB has not issued any other ASUs during 2018 that we expect to be applicable and have a material impact on our financial statements. Adopted ASUs During the three months ended March 31, 2018 we adopted the ASUs listed below: Revenue from Contracts with Customers 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, and supersedes 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 and 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 and 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 and provides guidance for a variety of revenue recognition related topics. In February 2017, the FASB issued ASU No. 2017-05 "Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets" (Subtopic 610-20), which provides guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with non-customers. Sales of real estate are now accounted for under Subtopic 610-20 which focuses on a transfer of control. The amendments in these ASUs are effective this quarter and are required to be applied on a retrospective basis. Most of our revenues are derived from lease contracts with tenants and are not within the scope of the respective ASUs. Although our office parking revenues are within the scope of the respective ASUs, the timing and pattern of revenue recognition was not impacted. However, the scoping of our revenues could be impacted by ASU No. 2016-02, "Leases" (Topic 842), which we plan to adopt in the first quarter of 2019 - see "Recently Issued Accounting Pronouncements" further below. Our office parking revenues are mostly derived from lease contracts with our office tenants. The lease contracts generally make a specified number of parking spaces available to the tenant, and we bill and recognize parking revenues on a monthly basis in accordance with the lease agreements generally using the monthly parking rates in effect at the time of billing. Office parking revenues were $25.2 million and $23.2 million for the three months ended March 31, 2018 and 2017 , respectively, and are included in Office parking and other income in the consolidated statements of operations. Office parking receivables were $1.4 million and $1.0 million as of March 31, 2018 and December 31, 2017 , respectively. Office parking receivables are included in Tenant receivables in the consolidated balance sheets. Derivatives and Hedging In August 2017, the FASB issued ASU No. 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities". The ASU requires the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness be recorded in other comprehensive income. GAAP historically provided special hedge accounting only for the portion of the hedge deemed to be “highly effective” and requires an entity to separately reflect the amount by which the hedging instrument does not offset the hedged item, which is referred to as the “ineffective” amount. The amendments are effective in the first quarter of 2019 and are required to be applied on a prospective basis. We early adopted the ASU and it did not have a material impact on our financial statements. The ASU requires the cumulative effect of initially applying the ASU as an adjustment to AOCI with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year in which the ASU is adopted. On January 1, 2018 we recorded an adjustment to AOCI and accumulated deficit of $211 thousand . See Note 10 . Statement of Cash Flows In August 2016, the FASB issued ASU No. 2016-15, "Classification of Certain Cash Receipts and Cash Payments". The ASU provides guidance regarding the presentation of certain types of transactions in the statement of cash flows. The amendments are required to be applied on a retrospective basis. In November 2016, the FASB issued ASU No. 2016-18, "Restricted Cash". The ASU provides guidance regarding the presentation of restricted cash in the statement of cash flows. The amendments in this ASU are effective this quarter and are required to be applied retrospectively. The adoption of the ASU did not have a material impact on our financial statements. Financial Instruments In January 2016, the FASB issued ASU No. 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities" which amends "Financial Instruments - Overall" (Subtopic 825-10). The amendments in this ASU address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments in this ASU are effective this quarter. The adoption of the ASU did not have a material impact on our financial statements. Stock Based Compensation In May 2017, the FASB issued ASU No. 2017-09, "Scope of Modification Accounting" which amends "Compensation-Stock Compensation" (Topic 718). The ASU provides guidance regarding the application of modification accounting in Topic 718 when there are changes to the terms or conditions of a share-based payment award. The amendments in this ASU are effective this quarter and are required to be applied on a prospective basis. The adoption of the ASU did not have a material impact on our financial statements. Recently Issued Accounting Pronouncements Leases In February 2016, the FASB issued ASU No. 2016-02, "Leases" (Topic 842). The primary difference between Topic 842 and current GAAP is the recognition of lease assets and liabilities by lessees for leases classified as operating leases under current GAAP. The accounting applied by lessors is largely unchanged from current 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 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 ("Revenue from Contracts with Customers") for lessors. However, in March 2018, the FASB approved an optional practical expedient that would allow lessors to elect, by class of underlying asset, to not separate the lease from the non-lease components. The practical expedient would be limited to circumstances in which both (i) the timing and pattern of revenue recognition are the same for the lease and non-lease components and (ii) the combined single lease component would be classified as an operating lease. 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. We pay rent under a ground lease which expires on December 31, 2086 . See Note 15 for more information regarding this ground lease. We currently account for the lease as an operating lease. We are currently evaluating the ASU to determine if this ground lease should be accounted for as a finance lease with a corresponding right-of-use asset. The ASU is effective in the first quarter of 2019 and early adoption is permitted. The ASU is required to be adopted using a modified retrospective approach which includes optional practical expedients related to leases that commenced before the effective date. We are currently evaluating the impact of this ASU on our financial statements and we plan to adopt the ASU in the first quarter of 2019. |
Investment in Real Estate
Investment in Real Estate | 3 Months Ended |
Mar. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Investment in Real Estate | Investment in Real Estate Property held for sale We are currently marketing for sale an 80,000 square foot Class A office property and a health club located in Honolulu, Hawaii. We partially own the assets through a consolidated joint venture in which we own a two-thirds interest. As of March 31, 2018 , the carrying value of the assets and liabilities classified as held for sale in our consolidated balance sheets were as follows: (In thousands) March 31, 2018 Land $ 1,863 Buildings and improvements 17,442 Tenant improvements and lease intangibles 5,150 Accumulated depreciation and amortization (7,375 ) Deferred rent receivables, net 187 Other assets 476 Interest payable, accounts payable, and deferred revenue (167 ) Property held for sale, net $ 17,576 |
Acquired Lease Intangibles
Acquired Lease Intangibles | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Acquired Lease Intangibles | Acquired Lease Intangibles Summary of our Acquired Lease Intangibles The table below summarizes our above- and below-market tenant lease assets and liabilities for which we are the lessor, an above-market ground lease asset for which we are the lessor, and an above-market ground lease liability for which we are the lessee: (In thousands) March 31, 2018 December 31, 2017 Above-market tenant leases $ 6,972 $ 7,177 Above-market tenant leases - accumulated amortization (3,931 ) (3,846 ) Above-market ground lease 1,152 1,152 Above-market ground lease - accumulated amortization (195 ) (190 ) Acquired lease intangible assets, net $ 3,998 $ 4,293 Below-market tenant leases $ 121,568 $ 127,606 Below-market tenant leases - accumulated accretion (55,826 ) (55,428 ) Above-market ground lease 4,017 4,017 Above-market ground lease - accumulated accretion (572 ) (560 ) Acquired lease intangible liabilities, net $ 69,187 $ 75,635 Impact on the Consolidated Statements of Operations The table below summarizes the net amortization/accretion related to our above- and below-market leases: Three Months Ended March 31, (In thousands) 2018 2017 Net accretion of above- and below-market tenant lease assets and liabilities (1) $ 6,144 $ 4,184 Amortization of an above-market ground lease asset (2) (4 ) (4 ) Accretion of an above-market ground lease liability (3) 12 12 Total $ 6,152 $ 4,192 ______________________________________________ (1) R ecorded as a net increase to office and multifamily rental revenues (we are the lessor). (2) Recorded as a decrease to office parking and other income (we are the lessor). (3) Recorded as a decrease to office expense (we are the lessee). |
Investments in Unconsolidated R
Investments in Unconsolidated Real Estate Funds | 3 Months Ended |
Mar. 31, 2018 | |
Real Estate Investments, Net [Abstract] | |
Investments In Unconsolidated Real Estate Funds | Investments in Unconsolidated Real Estate Funds Description of our Funds We manage and own equity interests in three unconsolidated Funds, the Opportunity Fund, Fund X and Partnership X, through which we and investors own eight office properties totaling 1.8 million square feet. At March 31, 2018 , we held direct and indirect equity interests of 6.2% of the Opportunity Fund, 69.4% of Fund X and 24.3% 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 cash distributions received from our Funds: Three Months Ended March 31, (In thousands) 2018 2017 Operating distributions received $ 1,506 $ 2,177 Capital distributions received 1,953 1,407 Total distributions received $ 3,459 $ 3,584 Summarized Financial Information for our Funds The tables below present selected financial information for the Funds on a combined basis. The amounts presented reflect 100% (not our pro-rata share) of amounts related to the Funds, and are based upon historical acquired book value: (In thousands) March 31, 2018 December 31, 2017 Total assets $ 709,102 $ 704,186 Total liabilities $ 525,179 $ 523,767 Total equity $ 183,923 $ 180,419 Three Months Ended March 31, (In thousands) 2018 2017 Total revenues $ 19,147 $ 18,625 Operating income $ 5,566 $ 4,908 Net income $ 1,434 $ 2,144 |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2018 | |
Other Assets [Abstract] | |
Other Assets | Other Assets Other assets consisted of the following: (In thousands) March 31, 2018 December 31, 2017 Restricted cash $ 121 $ 121 Prepaid expenses 7,860 9,235 Other indefinite-lived intangibles 1,988 1,988 Furniture, fixtures and equipment, net 860 1,155 Other 5,435 5,943 Total other assets $ 16,264 $ 18,442 |
Secured Notes Payable and Revol
Secured Notes Payable and Revolving Credit Facility, Net | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Secured Notes Payable and Revolving Credit Facility, Net | Secured Notes Payable and Revolving Credit Facility, Net The following table summarizes our secured notes payable and revolving credit facility: Description Maturity Date (1) Principal Balance as of March 31, 2018 Principal Balance as of December 31, 2017 Variable Interest Rate Fixed Interest Rate (2) Swap Maturity Date Wholly Owned Subsidiaries Term loan (3) — $ — $ 146,974 — — — Term loan (3) — — 280,721 — — — Fannie Mae loan 10/1/2019 145,000 145,000 LIBOR + 1.25% N/A N/A Term loan (4) 4/15/2022 340,000 340,000 LIBOR + 1.40% 2.77% 4/1/2020 Term loan (4) 7/27/2022 180,000 180,000 LIBOR + 1.45% 3.06% 7/1/2020 Term loan (4) 11/1/2022 400,000 400,000 LIBOR + 1.35% 2.64% 11/1/2020 Term loan (4) 6/23/2023 360,000 360,000 LIBOR + 1.55% 2.57% 7/1/2021 Term loan (4) 12/23/2023 220,000 220,000 LIBOR + 1.70% 3.62% 12/23/2021 Term loan (4) 1/1/2024 300,000 300,000 LIBOR + 1.55% 3.46% 1/1/2022 Term loan (4) 3/3/2025 335,000 — LIBOR + 1.30% 3.84% 3/1/2023 Fannie Mae loan (4) 4/1/2025 102,400 102,400 LIBOR + 1.25% 2.84% 3/1/2020 Fannie Mae loans (4) 12/1/2025 115,000 115,000 LIBOR + 1.25% 2.76% 12/1/2020 Fannie Mae loans (4) 6/1/2027 550,000 550,000 LIBOR + 1.37% 3.16% 6/1/2022 Term loan (5) 6/1/2038 32,100 32,213 N/A 4.55% N/A Revolving credit facility (6) 8/21/2020 75,000 — LIBOR + 1.40% N/A N/A Total Wholly Owned Subsidiary Debt 3,154,500 3,172,308 Consolidated JVs Term loan (4) 2/28/2023 580,000 580,000 LIBOR + 1.40% 2.37% 3/1/2021 Term loan (4) 12/19/2024 400,000 400,000 LIBOR + 1.30% 3.47% 1/1/2023 Total Consolidated Debt (7) 4,134,500 4,152,308 Unamortized loan premium, net 4,140 4,191 Deferred loan costs, net (39,740 ) (39,109 ) Total Consolidated Debt, net $ 4,098,900 $ 4,117,390 ___________________________________________________ Except as noted below, each loan (including our revolving credit facility) is non-recourse and secured by one or more separate collateral pools consisting of one or more properties, and requires monthly payments of interest only with the outstanding principal due upon maturity. (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, 2018 , this loan had been paid off. (4) Loan agreement includes a zero-percent LIBOR floor. The corresponding swaps do not include such a floor. (5) Requires monthly payments of principal and interest. Principal amortization is based upon a 30 -year amortization schedule. (6) $400.0 million revolving credit facility. Unused commitment fees range from 0.15% to 0.20% . (7) See Note 12 for our fair value disclosures. Debt Statistics The following table summarizes our fixed and floating rate debt: (In thousands) Principal Balance as of March 31, 2018 Principal Balance as of December 31, 2017 Aggregate swapped to fixed rate loans $ 3,882,400 $ 3,547,400 Aggregate fixed rate loans 32,100 459,908 Aggregate floating rate loans 220,000 145,000 Total Debt $ 4,134,500 $ 4,152,308 The following table summarizes certain debt statistics at March 31, 2018 : Statistics for consolidated loans with interest fixed under the terms of the loan or a swap Principal balance (in billions) $3.91 Weighted average remaining life (including extension options) 6.1 years Weighted average remaining fixed interest period 3.4 years Weighted average annual interest rate 3.07% Future Principal Payments At March 31, 2018 , the minimum future principal payments due on our secured notes payable and revolving credit facility were as follows: Twelve months ending March 31: Excluding Maturity Extension Options Including Maturity Extension Options (1) (In thousands) 2019 $ 694 $ 694 2020 145,727 145,727 2021 370,760 75,760 2022 300,796 796 2023 1,655,833 1,500,833 Thereafter 1,660,690 2,410,690 Total future principal payments $ 4,134,500 $ 4,134,500 ____________________________________________ (1) Our loan agreements generally require that we meet certain minimum financial thresholds to be able to extend the loan maturity. Loan Costs Deferred loan costs are net of accumulated amortization of $18.2 million and $18.0 million at March 31, 2018 and December 31, 2017 , respectively. The table below presents loan costs which are included in Interest expense in our consolidated statements of operations: Three Months Ended March 31, (In thousands) 2018 2017 Loan costs expensed $ 404 $ — Deferred loan cost amortization 1,905 2,098 Total $ 2,309 $ 2,098 |
Interest Payable, Accounts Paya
Interest Payable, Accounts Payable and Deferred Revenue | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 December 31, 2017 Interest payable $ 10,887 $ 9,829 Accounts payable and accrued liabilities 90,940 62,741 Deferred revenue 35,047 31,377 Total interest payable, accounts payable and deferred revenue $ 136,874 $ 103,947 |
Derivative Contracts
Derivative Contracts | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Contracts | Derivative Contracts We make use of interest rate swap and cap contracts to manage the risk associated with changes in interest rates on our floating-rate debt. When we enter into a floating-rate term loan, we generally enter into an interest rate swap agreement for the equivalent principal amount, for a period covering the majority of the loan term, which effectively converts our floating-rate debt to a fixed-rate basis during that time. In limited instances, we also make use of interest rate caps to limit our exposure to interest rate increases on our floating-rate debt. We do not speculate in derivatives and we do not make use of any other derivative instruments. See Note 7 regarding our debt, and our consolidated JVs debt, that is hedged. See Note 16 regarding our unconsolidated Funds debt that is hedged. Derivative Summary As of March 31, 2018 , 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)(3) 27 $ 3,882,400 Unconsolidated Funds' derivatives (2)(3) 4 $ 510,000 ___________________________________________________ (1) The notional amount reflects 100% , not our pro-rata share, of our consolidated JVs' derivatives. (2) The notional amount reflects 100% , not our pro-rata share, of our unconsolidated Funds' derivatives. (3) See Note 12 for our derivative fair value disclosures. 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, 2018 , there have been no events of default with respect to our interest rate swaps or our consolidated JVs' or unconsolidated Funds' interest rate swaps. We do not post collateral for our interest rate swap contract liabilities. The fair value of our interest rate swap contract liabilities, including accrued interest and excluding credit risk adjustments, were as follows: (In thousands) March 31, 2018 December 31, 2017 Consolidated derivatives (1) $ 339 $ 915 Unconsolidated Funds' derivatives (2) $ — $ — ___________________________________________________ (1) The amounts reflect 100% , not our pro-rata share, of our consolidated JVs' derivatives. (2) Our unconsolidated Funds did not have any derivatives in a liability position. Counterparty Credit Risk We are subject to credit risk from the counterparties on our interest rate swap contract assets because we do not receive collateral. We seek to minimize that risk by entering into agreements with a variety of high quality counterparties with investment grade ratings. The fair value of our interest rate swap contract assets, including accrued interest and excluding credit risk adjustments, were as follows: (In thousands) March 31, 2018 December 31, 2017 Consolidated derivatives (1) $ 99,908 $ 60,093 Unconsolidated Funds' derivatives (2) $ 16,737 $ 9,350 ___________________________________________________ (1) The amounts reflect 100% , not our pro-rata share, of our consolidated JVs' derivatives. (2) The amounts reflect 100% , not our pro-rata share, of our unconsolidated Funds' derivatives. Impact of Hedges on AOCI and the Consolidated Statements of Operations The table below presents the effect of our derivatives on our AOCI and the consolidated statements of operations: (In thousands) Three Months Ended March 31, 2018 2017 Derivatives Designated as Cash Flow Hedges: Consolidated derivatives: Gain recorded in AOCI - adoption of ASU 2017-12 (1)(2) $ 211 $ — Gain recorded in AOCI (1)(2) $ 39,731 $ 4,722 Gain (loss) reclassified from AOCI to Interest Expense (1) $ 131 $ (5,100 ) Total Interest Expense presented in the consolidated statements of operations $ 32,900 $ 36,954 Gain related to ineffectiveness recorded in Interest Expense $ — $ 13 Unconsolidated Funds' derivatives (our share) (3) : Gain recorded in AOCI (1) $ 4,475 $ 99 Gain (loss) reclassified from AOCI to Income, including depreciation, from unconsolidated real estate funds (1) $ (83 ) $ 92 Total Income, including depreciation, from unconsolidated real estate funds presented in the consolidated statements of operations $ 1,506 $ 2,177 ___________________________________________________ (1) See Note 10 for our AOCI reconciliation. (2) See Note 2 regarding the ASU adoption. (3) We calculate our share by multiplying the total amount for each Fund by our equity interest in the respective Fund. Future Reclassifications from AOCI At March 31, 2018 , 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 interest rate swap payments are made is as follows: (In thousands) Consolidated derivatives: Gains to be reclassified from AOCI to Interest Expense $ 20,574 Unconsolidated Funds' derivatives (our share): Gains to be reclassified from AOCI to Income, including depreciation, from unconsolidated real estate funds $ 1,282 |
Equity
Equity | 3 Months Ended |
Mar. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Equity | Equity Transactions During the three months ended March 31, 2018 , we (i) acquired 322 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 14 thousand shares of our common stock for the exercise of 32 thousand stock options on a net settlement basis (net of the exercise price and related taxes). 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). Condensed Consolidated Statements of Equity The tables below present our condensed consolidated statements of equity: (In thousands) DEI Stockholders' Equity Noncontrolling Interests Total Equity Balance as of January 1, 2018 $ 2,437,524 $ 1,464,525 $ 3,902,049 Adjustment to opening balance of accumulated deficit (1) (211 ) — (211 ) Net income 28,206 4,425 32,631 Cash flow hedge fair value adjustments 30,922 13,447 44,369 Dividends and distributions (42,475 ) (13,085 ) (55,560 ) Exchange of OP units for common stock 5,199 (5,199 ) — Exercise of stock options (2) (313 ) — (313 ) Stock-based compensation — 3,502 3,502 Balance as of March 31, 2018 $ 2,458,852 $ 1,467,615 $ 3,926,467 __________________________________________________ (1) Reflects the adoption of ASU No. 2017-12. See Note 2 for the details. (2) 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). (In thousands) 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). 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, 2018 when we and our Operating Partnership had 169.9 million shares of common stock and 27.5 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 acquire 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 acquisition, 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 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, (In thousands) 2018 2017 Net income attributable to common stockholders $ 28,206 $ 19,049 Transfers from noncontrolling interests: Exchange of OP Units with noncontrolling interests 5,199 4,523 Net transfers from noncontrolling interests 5,199 4,523 Change from net income attributable to common stockholders and transfers from noncontrolling interests $ 33,405 $ 23,572 AOCI Reconciliation (1) The table below presents a reconciliation of our AOCI, which consists solely of adjustments related to derivatives designated as cash flow hedges: Three Months Ended March 31, (In thousands) 2018 2017 Beginning balance $ 43,099 $ 15,156 Adoption of ASU 2017-12 - cumulative opening balance adjustment (2) 211 — Consolidated derivatives: Other comprehensive income before reclassifications 39,731 4,722 Reclassification of (gains) losses from AOCI to Interest Expense (131 ) 5,100 Unconsolidated Funds' derivatives (our share): Other comprehensive income before reclassifications 4,475 99 Reclassification of (gains) losses from AOCI to Income, including depreciation, from unconsolidated real estate funds 83 (92 ) Net current period OCI 44,369 9,829 OCI attributable to noncontrolling interests (13,447 ) (2,127 ) OCI attributable to common stockholders 30,922 7,702 Ending balance $ 74,021 $ 22,858 ___________________________________________________ (1) See Note 9 for the details of our derivatives and Note 12 for our derivative fair value disclosures. (2) See Note 2 regarding our adoption of the ASU on January 1, 2018. 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 $3.1 million and $2.7 million for the three months ended March 31, 2018 and 2017 respectively. These amounts are net of capitalized stock-based compensation of $452 thousand and $228 thousand for the three months ended March 31, 2018 and 2017 respectively. The intrinsic value of options exercised was $803 thousand and $102.1 million for the three months ended March 31, 2018 and 2017 respectively. |
EPS
EPS | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 2017 Numerator (In thousands): Net income attributable to common stockholders $ 28,206 $ 19,049 Allocation to participating securities: Unvested LTIP Units (117 ) (98 ) Numerator for basic and diluted net income attributable to common stock holders $ 28,089 $ 18,951 Denominator (In thousands): Weighted average shares of common stock outstanding - basic 169,601 152,490 Effect of dilutive securities: Stock options (1) 24 1,165 Weighted average shares of common stock and common stock equivalents outstanding - diluted 169,625 153,655 Basic EPS: Net income attributable to common stockholders per share $ 0.17 $ 0.12 Diluted EPS: Net income attributable to common stockholders per share $ 0.17 $ 0.12 ____________________________________________________ (1) The following securities were excluded from the calculation of diluted EPS because including them would be anti-dilutive to the calculation: Three Months Ended March 31, (In thousands) 2018 2017 OP Units 26,943 24,661 Vested LTIP Units 800 762 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 , 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 consolidated secured notes payable (excluding our revolving credit facility) 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 the estimated fair value of our secured notes payable: (In thousands) March 31, 2018 December 31, 2017 Fair value $ 4,092,680 $ 4,195,489 Carrying value $ 4,063,640 $ 4,156,499 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 the estimated fair value of our derivatives: (In thousands) March 31, 2018 December 31, 2017 Derivative Assets: Fair value - consolidated derivatives (1) $ 98,909 $ 60,069 Fair value - unconsolidated Funds' derivatives (2) $ 16,611 $ 9,437 Derivative Liabilities: Fair value - consolidated derivatives (1) $ 46 $ 807 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 sheets. The fair values exclude accrued interest which is included in interest payable in the consolidated balance sheets. (2) Reflects 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 sheets. See Note 16 regarding our unconsolidated Funds debt and derivatives. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2018 | |
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. The table below presents the operating activity of our reportable segments: (In thousands) Three Months Ended March 31, 2018 2017 Office Segment Total office revenues $ 187,333 $ 170,348 Office expenses (60,356 ) (54,885 ) Office segment profit 126,977 115,463 Multifamily Segment Total multifamily revenues 24,914 24,133 Multifamily expenses (6,698 ) (5,947 ) Multifamily segment profit 18,216 18,186 Total profit from all segments $ 145,193 $ 133,649 The table below presents a reconciliation of the total profit from all segments to net income attributable to common stockholders: (In thousands) Three Months Ended March 31, 2018 2017 Total profit from all segments $ 145,193 $ 133,649 General and administrative (9,567 ) (10,156 ) Depreciation and amortization (72,498 ) (67,374 ) Other income 2,630 2,162 Other expenses (1,733 ) (1,724 ) Income, including depreciation, from unconsolidated real estate funds 1,506 2,177 Interest expense (32,900 ) (36,954 ) Net income 32,631 21,780 Less: Net income attributable to noncontrolling interests (4,425 ) (2,731 ) Net income attributable to common stockholders $ 28,206 $ 19,049 |
Future Minimum Lease Rental Rec
Future Minimum Lease Rental Receipts | 3 Months Ended |
Mar. 31, 2018 | |
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 from which we receive rent under ground leases. The table below presents the future minimum base rentals on our non-cancelable office tenant and ground leases at March 31, 2018 : Twelve months ending March 31: (In thousands) 2019 $ 541,977 2020 496,874 2021 429,106 2022 337,392 2023 261,907 Thereafter 652,889 Total future minimum base rentals (1) $ 2,720,145 _____________________________________________________ (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 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, 2018 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Future Minimum Lease Rental Payments | Future Minimum Lease Rental Payments We pay rent under a ground lease which expires on December 31, 2086 . The 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. We incurred ground rent expense of $183 thousand for the three months ended March 31, 2018 and 2017 . The table below, which assumes that the ground rent payments will continue to be $733 thousand per year after February 28, 2019 , presents the future minimum ground lease payments as of March 31, 2018 : Twelve months ending March 31: (In thousands) 2019 $ 733 2020 733 2021 733 2022 733 2023 733 Thereafter 46,728 Total future minimum lease payments $ 50,393 |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 and 2017 , 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 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-eight 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, 2018 , 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 and Other Contracts During 2016, we commenced building an additional 475 apartments (net of existing apartments removed) at our Moanalua Hillside Apartments in Honolulu, Hawaii. We are also investing additional capital to upgrade the existing apartments, improve the parking and landscaping, building a new leasing and management office, and construct a new recreation and fitness facility with a new pool. As of March 31, 2018 , we had leased 104 apartments. In West Los Angeles, we plan to build a high-rise apartment building with 376 apartments. As of March 31, 2018 , we had an aggregate remaining contractual commitment for these development projects of approximately $244.8 million . As of March 31, 2018 , we had an aggregate remaining contractual commitment for capital expenditure projects, repositionings and tenant improvements of approximately $29.0 million . Guarantees We have made certain environmental and other limited indemnities and guarantees covering customary non-recourse carve- outs for our unconsolidated Funds' debt. We have 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, 2018 , 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, 2018 . The amounts represent 100% (not our pro-rata share) of the amounts related to our Funds: Fund (1) Loan Maturity Date Principal Balance (In Millions) Variable Interest Rate Swap Fixed Interest Rate Swap Maturity Date Partnership X (2)(4) 3/1/2023 $ 110.0 LIBOR + 1.40% 2.30% 3/1/2021 Fund X (3)(4)(5) 7/1/2024 400.0 LIBOR + 1.65% 3.44% 7/1/2022 $ 510.0 ___________________________________________________ (1) See Note 5 for more information regarding our unconsolidated Funds. (2) 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, 2018 , assuming a zero-percent LIBOR interest rate during the remaining life of the swap, the maximum future payments under the swap agreement were $2.9 million . (3) 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, 2018 , assuming a zero-percent LIBOR interest rate during the remaining life of the swap, the maximum future payments under the swap agreement were $30.9 million . (4) Loan agreement includes a zero-percent LIBOR floor. The corresponding swaps do not include such a floor. (5) Loan agreement includes the requirement to purchase an interest rate cap if one month LIBOR equals or exceeds 3.56% for fourteen consecutive days after the related swap matures. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
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. Our Operating Partnership and consolidated JVs are VIEs of which we are the primary beneficiary. As of March 31, 2018 , the total consolidated assets, liabilities and equity of the VIEs was $8.32 billion (of which $7.78 billion related to investment in real estate), $4.40 billion and $3.93 billion (of which $1.47 billion related to noncontrolling interests), 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, 2018 . The interim financial statements should be read in conjunction with the consolidated financial statements in our 2017 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. |
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 implemented by the FASB in the form of ASUs. We consider the applicability and impact of all ASUs. Other than the ASUs discussed below, the FASB has not issued any other ASUs during 2018 that we expect to be applicable and have a material impact on our financial statements. Adopted ASUs During the three months ended March 31, 2018 we adopted the ASUs listed below: Revenue from Contracts with Customers 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, and supersedes 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 and 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 and 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 and provides guidance for a variety of revenue recognition related topics. In February 2017, the FASB issued ASU No. 2017-05 "Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets" (Subtopic 610-20), which provides guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with non-customers. Sales of real estate are now accounted for under Subtopic 610-20 which focuses on a transfer of control. The amendments in these ASUs are effective this quarter and are required to be applied on a retrospective basis. Most of our revenues are derived from lease contracts with tenants and are not within the scope of the respective ASUs. Although our office parking revenues are within the scope of the respective ASUs, the timing and pattern of revenue recognition was not impacted. However, the scoping of our revenues could be impacted by ASU No. 2016-02, "Leases" (Topic 842), which we plan to adopt in the first quarter of 2019 - see "Recently Issued Accounting Pronouncements" further below. Our office parking revenues are mostly derived from lease contracts with our office tenants. The lease contracts generally make a specified number of parking spaces available to the tenant, and we bill and recognize parking revenues on a monthly basis in accordance with the lease agreements generally using the monthly parking rates in effect at the time of billing. Office parking revenues were $25.2 million and $23.2 million for the three months ended March 31, 2018 and 2017 , respectively, and are included in Office parking and other income in the consolidated statements of operations. Office parking receivables were $1.4 million and $1.0 million as of March 31, 2018 and December 31, 2017 , respectively. Office parking receivables are included in Tenant receivables in the consolidated balance sheets. Derivatives and Hedging In August 2017, the FASB issued ASU No. 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities". The ASU requires the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness be recorded in other comprehensive income. GAAP historically provided special hedge accounting only for the portion of the hedge deemed to be “highly effective” and requires an entity to separately reflect the amount by which the hedging instrument does not offset the hedged item, which is referred to as the “ineffective” amount. The amendments are effective in the first quarter of 2019 and are required to be applied on a prospective basis. We early adopted the ASU and it did not have a material impact on our financial statements. The ASU requires the cumulative effect of initially applying the ASU as an adjustment to AOCI with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year in which the ASU is adopted. On January 1, 2018 we recorded an adjustment to AOCI and accumulated deficit of $211 thousand . See Note 10 . Statement of Cash Flows In August 2016, the FASB issued ASU No. 2016-15, "Classification of Certain Cash Receipts and Cash Payments". The ASU provides guidance regarding the presentation of certain types of transactions in the statement of cash flows. The amendments are required to be applied on a retrospective basis. In November 2016, the FASB issued ASU No. 2016-18, "Restricted Cash". The ASU provides guidance regarding the presentation of restricted cash in the statement of cash flows. The amendments in this ASU are effective this quarter and are required to be applied retrospectively. The adoption of the ASU did not have a material impact on our financial statements. Financial Instruments In January 2016, the FASB issued ASU No. 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities" which amends "Financial Instruments - Overall" (Subtopic 825-10). The amendments in this ASU address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments in this ASU are effective this quarter. The adoption of the ASU did not have a material impact on our financial statements. Stock Based Compensation In May 2017, the FASB issued ASU No. 2017-09, "Scope of Modification Accounting" which amends "Compensation-Stock Compensation" (Topic 718). The ASU provides guidance regarding the application of modification accounting in Topic 718 when there are changes to the terms or conditions of a share-based payment award. The amendments in this ASU are effective this quarter and are required to be applied on a prospective basis. The adoption of the ASU did not have a material impact on our financial statements. Recently Issued Accounting Pronouncements Leases In February 2016, the FASB issued ASU No. 2016-02, "Leases" (Topic 842). The primary difference between Topic 842 and current GAAP is the recognition of lease assets and liabilities by lessees for leases classified as operating leases under current GAAP. The accounting applied by lessors is largely unchanged from current 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 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 ("Revenue from Contracts with Customers") for lessors. However, in March 2018, the FASB approved an optional practical expedient that would allow lessors to elect, by class of underlying asset, to not separate the lease from the non-lease components. The practical expedient would be limited to circumstances in which both (i) the timing and pattern of revenue recognition are the same for the lease and non-lease components and (ii) the combined single lease component would be classified as an operating lease. 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. We pay rent under a ground lease which expires on December 31, 2086 . See Note 15 for more information regarding this ground lease. We currently account for the lease as an operating lease. We are currently evaluating the ASU to determine if this ground lease should be accounted for as a finance lease with a corresponding right-of-use asset. The ASU is effective in the first quarter of 2019 and early adoption is permitted. The ASU is required to be adopted using a modified retrospective approach which includes optional practical expedients related to leases that commenced before the effective date. We are currently evaluating the impact of this ASU on our financial statements and we plan to adopt the ASU in the first quarter of 2019. |
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, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Real Estate Properties | As of March 31, 2018 , our portfolio (not including two parcels of land from which we receive rent under ground leases), consisted of the following office and multifamily properties (both of which include ancillary retail space): Consolidated Portfolio Total Portfolio Office Wholly-owned properties 53 53 Consolidated JV properties 10 10 Unconsolidated Fund properties — 8 63 71 Multifamily Wholly-owned properties 10 10 Total 73 81 |
Investment in Real Estate (Tabl
Investment in Real Estate (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Carrying Value of Assets and Liabilities Classified as Held for Sale | As of March 31, 2018 , the carrying value of the assets and liabilities classified as held for sale in our consolidated balance sheets were as follows: (In thousands) March 31, 2018 Land $ 1,863 Buildings and improvements 17,442 Tenant improvements and lease intangibles 5,150 Accumulated depreciation and amortization (7,375 ) Deferred rent receivables, net 187 Other assets 476 Interest payable, accounts payable, and deferred revenue (167 ) Property held for sale, net $ 17,576 |
Acquired Lease Intangibles (Tab
Acquired Lease Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Acquired Lease Intangibles | The table below summarizes our above- and below-market tenant lease assets and liabilities for which we are the lessor, an above-market ground lease asset for which we are the lessor, and an above-market ground lease liability for which we are the lessee: (In thousands) March 31, 2018 December 31, 2017 Above-market tenant leases $ 6,972 $ 7,177 Above-market tenant leases - accumulated amortization (3,931 ) (3,846 ) Above-market ground lease 1,152 1,152 Above-market ground lease - accumulated amortization (195 ) (190 ) Acquired lease intangible assets, net $ 3,998 $ 4,293 Below-market tenant leases $ 121,568 $ 127,606 Below-market tenant leases - accumulated accretion (55,826 ) (55,428 ) Above-market ground lease 4,017 4,017 Above-market ground lease - accumulated accretion (572 ) (560 ) Acquired lease intangible liabilities, net $ 69,187 $ 75,635 |
Schedule of Net Amortization or Accretion of Above- and Below-Market Leases | The table below summarizes the net amortization/accretion related to our above- and below-market leases: Three Months Ended March 31, (In thousands) 2018 2017 Net accretion of above- and below-market tenant lease assets and liabilities (1) $ 6,144 $ 4,184 Amortization of an above-market ground lease asset (2) (4 ) (4 ) Accretion of an above-market ground lease liability (3) 12 12 Total $ 6,152 $ 4,192 ______________________________________________ (1) R ecorded as a net increase to office and multifamily rental revenues (we are the lessor). (2) Recorded as a decrease to office parking and other income (we are the lessor). (3) Recorded as a decrease to office expense (we are the lessee). |
Investments in Unconsolidated27
Investments in Unconsolidated Real Estate Funds (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 cash distributions received from our Funds: Three Months Ended March 31, (In thousands) 2018 2017 Operating distributions received $ 1,506 $ 2,177 Capital distributions received 1,953 1,407 Total distributions received $ 3,459 $ 3,584 The tables below present selected financial information for the Funds on a combined basis. The amounts presented reflect 100% (not our pro-rata share) of amounts related to the Funds, and are based upon historical acquired book value: (In thousands) March 31, 2018 December 31, 2017 Total assets $ 709,102 $ 704,186 Total liabilities $ 525,179 $ 523,767 Total equity $ 183,923 $ 180,419 Three Months Ended March 31, (In thousands) 2018 2017 Total revenues $ 19,147 $ 18,625 Operating income $ 5,566 $ 4,908 Net income $ 1,434 $ 2,144 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Other Assets [Abstract] | |
Schedule of Other Assets | Other assets consisted of the following: (In thousands) March 31, 2018 December 31, 2017 Restricted cash $ 121 $ 121 Prepaid expenses 7,860 9,235 Other indefinite-lived intangibles 1,988 1,988 Furniture, fixtures and equipment, net 860 1,155 Other 5,435 5,943 Total other assets $ 16,264 $ 18,442 |
Secured Notes Payable and Rev29
Secured Notes Payable and Revolving Credit Facility, Net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Secured Notes Payable and Revolving Credit Facility | The following table summarizes our secured notes payable and revolving credit facility: Description Maturity Date (1) Principal Balance as of March 31, 2018 Principal Balance as of December 31, 2017 Variable Interest Rate Fixed Interest Rate (2) Swap Maturity Date Wholly Owned Subsidiaries Term loan (3) — $ — $ 146,974 — — — Term loan (3) — — 280,721 — — — Fannie Mae loan 10/1/2019 145,000 145,000 LIBOR + 1.25% N/A N/A Term loan (4) 4/15/2022 340,000 340,000 LIBOR + 1.40% 2.77% 4/1/2020 Term loan (4) 7/27/2022 180,000 180,000 LIBOR + 1.45% 3.06% 7/1/2020 Term loan (4) 11/1/2022 400,000 400,000 LIBOR + 1.35% 2.64% 11/1/2020 Term loan (4) 6/23/2023 360,000 360,000 LIBOR + 1.55% 2.57% 7/1/2021 Term loan (4) 12/23/2023 220,000 220,000 LIBOR + 1.70% 3.62% 12/23/2021 Term loan (4) 1/1/2024 300,000 300,000 LIBOR + 1.55% 3.46% 1/1/2022 Term loan (4) 3/3/2025 335,000 — LIBOR + 1.30% 3.84% 3/1/2023 Fannie Mae loan (4) 4/1/2025 102,400 102,400 LIBOR + 1.25% 2.84% 3/1/2020 Fannie Mae loans (4) 12/1/2025 115,000 115,000 LIBOR + 1.25% 2.76% 12/1/2020 Fannie Mae loans (4) 6/1/2027 550,000 550,000 LIBOR + 1.37% 3.16% 6/1/2022 Term loan (5) 6/1/2038 32,100 32,213 N/A 4.55% N/A Revolving credit facility (6) 8/21/2020 75,000 — LIBOR + 1.40% N/A N/A Total Wholly Owned Subsidiary Debt 3,154,500 3,172,308 Consolidated JVs Term loan (4) 2/28/2023 580,000 580,000 LIBOR + 1.40% 2.37% 3/1/2021 Term loan (4) 12/19/2024 400,000 400,000 LIBOR + 1.30% 3.47% 1/1/2023 Total Consolidated Debt (7) 4,134,500 4,152,308 Unamortized loan premium, net 4,140 4,191 Deferred loan costs, net (39,740 ) (39,109 ) Total Consolidated Debt, net $ 4,098,900 $ 4,117,390 ___________________________________________________ Except as noted below, each loan (including our revolving credit facility) is non-recourse and secured by one or more separate collateral pools consisting of one or more properties, and requires monthly payments of interest only with the outstanding principal due upon maturity. (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, 2018 , this loan had been paid off. (4) Loan agreement includes a zero-percent LIBOR floor. The corresponding swaps do not include such a floor. (5) Requires monthly payments of principal and interest. Principal amortization is based upon a 30 -year amortization schedule. (6) $400.0 million revolving credit facility. Unused commitment fees range from 0.15% to 0.20% . (7) See Note 12 for our fair value disclosures. Debt Statistics The following table summarizes our fixed and floating rate debt: (In thousands) Principal Balance as of March 31, 2018 Principal Balance as of December 31, 2017 Aggregate swapped to fixed rate loans $ 3,882,400 $ 3,547,400 Aggregate fixed rate loans 32,100 459,908 Aggregate floating rate loans 220,000 145,000 Total Debt $ 4,134,500 $ 4,152,308 The following table summarizes certain debt statistics at March 31, 2018 : Statistics for consolidated loans with interest fixed under the terms of the loan or a swap Principal balance (in billions) $3.91 Weighted average remaining life (including extension options) 6.1 years Weighted average remaining fixed interest period 3.4 years Weighted average annual interest rate 3.07% |
Schedule of Future Minimum Principal Payments Due on Secured Notes Payable and Revolving Credit Facility | At March 31, 2018 , the minimum future principal payments due on our secured notes payable and revolving credit facility were as follows: Twelve months ending March 31: Excluding Maturity Extension Options Including Maturity Extension Options (1) (In thousands) 2019 $ 694 $ 694 2020 145,727 145,727 2021 370,760 75,760 2022 300,796 796 2023 1,655,833 1,500,833 Thereafter 1,660,690 2,410,690 Total future principal payments $ 4,134,500 $ 4,134,500 ____________________________________________ (1) Our loan agreements generally require that we meet certain minimum financial thresholds to be able to extend the loan maturity. |
Schedule of Loan Costs and Amortization of Deferred Loan Costs | The table below presents loan costs which are included in Interest expense in our consolidated statements of operations: Three Months Ended March 31, (In thousands) 2018 2017 Loan costs expensed $ 404 $ — Deferred loan cost amortization 1,905 2,098 Total $ 2,309 $ 2,098 |
Interest Payable, Accounts Pa30
Interest Payable, Accounts Payable and Deferred Revenue (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Schedule of Interest Payable, Accounts Payable and Deferred Revenue | Interest payable, accounts payable and deferred revenue consisted of the following: (In thousands) March 31, 2018 December 31, 2017 Interest payable $ 10,887 $ 9,829 Accounts payable and accrued liabilities 90,940 62,741 Deferred revenue 35,047 31,377 Total interest payable, accounts payable and deferred revenue $ 136,874 $ 103,947 |
Derivative Contracts (Tables)
Derivative Contracts (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Other Derivatives | As of March 31, 2018 , 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)(3) 27 $ 3,882,400 Unconsolidated Funds' derivatives (2)(3) 4 $ 510,000 ___________________________________________________ (1) The notional amount reflects 100% , not our pro-rata share, of our consolidated JVs' derivatives. (2) The notional amount reflects 100% , not our pro-rata share, of our unconsolidated Funds' derivatives. (3) See Note 12 for our derivative fair value disclosures. |
Schedule of Derivative Liabilities at Fair Value | The fair value of our interest rate swap contract liabilities, including accrued interest and excluding credit risk adjustments, were as follows: (In thousands) March 31, 2018 December 31, 2017 Consolidated derivatives (1) $ 339 $ 915 Unconsolidated Funds' derivatives (2) $ — $ — ___________________________________________________ (1) The amounts reflect 100% , not our pro-rata share, of our consolidated JVs' derivatives. (2) 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 swap contract assets, including accrued interest and excluding credit risk adjustments, were as follows: (In thousands) March 31, 2018 December 31, 2017 Consolidated derivatives (1) $ 99,908 $ 60,093 Unconsolidated Funds' derivatives (2) $ 16,737 $ 9,350 ___________________________________________________ (1) The amounts reflect 100% , not our pro-rata share, of our consolidated JVs' derivatives. (2) The amounts reflect 100% , not our pro-rata share, of our unconsolidated Funds' derivatives. |
Effect of Derivative Instruments on Consolidated Statements of Operations | The table below presents the effect of our derivatives on our AOCI and the consolidated statements of operations: (In thousands) Three Months Ended March 31, 2018 2017 Derivatives Designated as Cash Flow Hedges: Consolidated derivatives: Gain recorded in AOCI - adoption of ASU 2017-12 (1)(2) $ 211 $ — Gain recorded in AOCI (1)(2) $ 39,731 $ 4,722 Gain (loss) reclassified from AOCI to Interest Expense (1) $ 131 $ (5,100 ) Total Interest Expense presented in the consolidated statements of operations $ 32,900 $ 36,954 Gain related to ineffectiveness recorded in Interest Expense $ — $ 13 Unconsolidated Funds' derivatives (our share) (3) : Gain recorded in AOCI (1) $ 4,475 $ 99 Gain (loss) reclassified from AOCI to Income, including depreciation, from unconsolidated real estate funds (1) $ (83 ) $ 92 Total Income, including depreciation, from unconsolidated real estate funds presented in the consolidated statements of operations $ 1,506 $ 2,177 ___________________________________________________ (1) See Note 10 for our AOCI reconciliation. (2) See Note 2 regarding the ASU adoption. (3) We calculate our share by multiplying the total amount for each Fund by our equity interest in the respective Fund. |
Schedule of Future Reclassifications from AOCI | At March 31, 2018 , 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 interest rate swap payments are made is as follows: (In thousands) Consolidated derivatives: Gains to be reclassified from AOCI to Interest Expense $ 20,574 Unconsolidated Funds' derivatives (our share): Gains to be reclassified from AOCI to Income, including depreciation, from unconsolidated real estate funds $ 1,282 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Condensed Consolidated Statements of Equity | The tables below present our condensed consolidated statements of equity: (In thousands) DEI Stockholders' Equity Noncontrolling Interests Total Equity Balance as of January 1, 2018 $ 2,437,524 $ 1,464,525 $ 3,902,049 Adjustment to opening balance of accumulated deficit (1) (211 ) — (211 ) Net income 28,206 4,425 32,631 Cash flow hedge fair value adjustments 30,922 13,447 44,369 Dividends and distributions (42,475 ) (13,085 ) (55,560 ) Exchange of OP units for common stock 5,199 (5,199 ) — Exercise of stock options (2) (313 ) — (313 ) Stock-based compensation — 3,502 3,502 Balance as of March 31, 2018 $ 2,458,852 $ 1,467,615 $ 3,926,467 __________________________________________________ (1) Reflects the adoption of ASU No. 2017-12. See Note 2 for the details. (2) 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). (In thousands) 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). |
Net Income Attributable to Common Stockholders and Transfers (to) from Noncontrolling Interests | The table below presents 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, (In thousands) 2018 2017 Net income attributable to common stockholders $ 28,206 $ 19,049 Transfers from noncontrolling interests: Exchange of OP Units with noncontrolling interests 5,199 4,523 Net transfers from noncontrolling interests 5,199 4,523 Change from net income attributable to common stockholders and transfers from noncontrolling interests $ 33,405 $ 23,572 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The table below presents a reconciliation of our AOCI, which consists solely of adjustments related to derivatives designated as cash flow hedges: Three Months Ended March 31, (In thousands) 2018 2017 Beginning balance $ 43,099 $ 15,156 Adoption of ASU 2017-12 - cumulative opening balance adjustment (2) 211 — Consolidated derivatives: Other comprehensive income before reclassifications 39,731 4,722 Reclassification of (gains) losses from AOCI to Interest Expense (131 ) 5,100 Unconsolidated Funds' derivatives (our share): Other comprehensive income before reclassifications 4,475 99 Reclassification of (gains) losses from AOCI to Income, including depreciation, from unconsolidated real estate funds 83 (92 ) Net current period OCI 44,369 9,829 OCI attributable to noncontrolling interests (13,447 ) (2,127 ) OCI attributable to common stockholders 30,922 7,702 Ending balance $ 74,021 $ 22,858 ___________________________________________________ (1) See Note 9 for the details of our derivatives and Note 12 for our derivative fair value disclosures. (2) See Note 2 regarding our adoption of the ASU on January 1, 2018. |
EPS (Tables)
EPS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 2017 Numerator (In thousands): Net income attributable to common stockholders $ 28,206 $ 19,049 Allocation to participating securities: Unvested LTIP Units (117 ) (98 ) Numerator for basic and diluted net income attributable to common stock holders $ 28,089 $ 18,951 Denominator (In thousands): Weighted average shares of common stock outstanding - basic 169,601 152,490 Effect of dilutive securities: Stock options (1) 24 1,165 Weighted average shares of common stock and common stock equivalents outstanding - diluted 169,625 153,655 Basic EPS: Net income attributable to common stockholders per share $ 0.17 $ 0.12 Diluted EPS: Net income attributable to common stockholders per share $ 0.17 $ 0.12 ____________________________________________________ (1) The following securities were excluded from the calculation of diluted EPS because including them would be anti-dilutive to the calculation: Three Months Ended March 31, (In thousands) 2018 2017 OP Units 26,943 24,661 Vested LTIP Units 800 762 |
Fair Value of Financial Instr34
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Estimated Fair Value of Secured Notes Payable | The table below presents the estimated fair value of our secured notes payable: (In thousands) March 31, 2018 December 31, 2017 Fair value $ 4,092,680 $ 4,195,489 Carrying value $ 4,063,640 $ 4,156,499 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The table below presents the estimated fair value of our derivatives: (In thousands) March 31, 2018 December 31, 2017 Derivative Assets: Fair value - consolidated derivatives (1) $ 98,909 $ 60,069 Fair value - unconsolidated Funds' derivatives (2) $ 16,611 $ 9,437 Derivative Liabilities: Fair value - consolidated derivatives (1) $ 46 $ 807 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 sheets. The fair values exclude accrued interest which is included in interest payable in the consolidated balance sheets. (2) Reflects 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 sheets. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Summary of Operating Activity of Reportable Segments | The table below presents the operating activity of our reportable segments: (In thousands) Three Months Ended March 31, 2018 2017 Office Segment Total office revenues $ 187,333 $ 170,348 Office expenses (60,356 ) (54,885 ) Office segment profit 126,977 115,463 Multifamily Segment Total multifamily revenues 24,914 24,133 Multifamily expenses (6,698 ) (5,947 ) Multifamily segment profit 18,216 18,186 Total profit from all segments $ 145,193 $ 133,649 |
Reconciliation of Segment Profit to Net Income Attributable to Common Stockholders | The table below presents a reconciliation of the total profit from all segments to net income attributable to common stockholders: (In thousands) Three Months Ended March 31, 2018 2017 Total profit from all segments $ 145,193 $ 133,649 General and administrative (9,567 ) (10,156 ) Depreciation and amortization (72,498 ) (67,374 ) Other income 2,630 2,162 Other expenses (1,733 ) (1,724 ) Income, including depreciation, from unconsolidated real estate funds 1,506 2,177 Interest expense (32,900 ) (36,954 ) Net income 32,631 21,780 Less: Net income attributable to noncontrolling interests (4,425 ) (2,731 ) Net income attributable to common stockholders $ 28,206 $ 19,049 |
Future Minimum Lease Rental R36
Future Minimum Lease Rental Receipts (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 the future minimum base rentals on our non-cancelable office tenant and ground leases at March 31, 2018 : Twelve months ending March 31: (In thousands) 2019 $ 541,977 2020 496,874 2021 429,106 2022 337,392 2023 261,907 Thereafter 652,889 Total future minimum base rentals (1) $ 2,720,145 _____________________________________________________ (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 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 P37
Future Minimum Lease Rental Payments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Schedule of Future Minimum Ground Lease Payments | The table below, which assumes that the ground rent payments will continue to be $733 thousand per year after February 28, 2019 , presents the future minimum ground lease payments as of March 31, 2018 : Twelve months ending March 31: (In thousands) 2019 $ 733 2020 733 2021 733 2022 733 2023 733 Thereafter 46,728 Total future minimum lease payments $ 50,393 |
Commitments, Contingencies an38
Commitments, Contingencies and Guarantees (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Debt Related to Unconsolidated Funds | The table below summarizes our Funds' debt as of March 31, 2018 . The amounts represent 100% (not our pro-rata share) of the amounts related to our Funds: Fund (1) Loan Maturity Date Principal Balance (In Millions) Variable Interest Rate Swap Fixed Interest Rate Swap Maturity Date Partnership X (2)(4) 3/1/2023 $ 110.0 LIBOR + 1.40% 2.30% 3/1/2021 Fund X (3)(4)(5) 7/1/2024 400.0 LIBOR + 1.65% 3.44% 7/1/2022 $ 510.0 ___________________________________________________ (1) See Note 5 for more information regarding our unconsolidated Funds. (2) 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, 2018 , assuming a zero-percent LIBOR interest rate during the remaining life of the swap, the maximum future payments under the swap agreement were $2.9 million . (3) 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, 2018 , assuming a zero-percent LIBOR interest rate during the remaining life of the swap, the maximum future payments under the swap agreement were $30.9 million . (4) Loan agreement includes a zero-percent LIBOR floor. The corresponding swaps do not include such a floor. (5) Loan agreement includes the requirement to purchase an interest rate cap if one month LIBOR equals or exceeds 3.56% for fourteen consecutive days after the related swap matures. |
Overview - Narrative (Details)
Overview - Narrative (Details) ft² in Millions, $ in Millions | Mar. 31, 2018USD ($)ft² | Dec. 31, 2017ft²land_parcelunit |
Real Estate Properties [Line Items] | ||
Variable interest entity, assets | $ 8,320 | |
Variable interest entity, assets related to real estate held for investment | 7,780 | |
Variable interest entity, liabilities | 4,400 | |
Variable interest entity, equity | 3,930 | |
Variable interest entity, equity, portion attributable to noncontrolling interest | $ 1,470 | |
Wholly owned and Consolidated properties | ||
Real Estate Properties [Line Items] | ||
Number of land parcels subject to ground lease | land_parcel | 2 | |
Wholly owned and Consolidated properties | Office | ||
Real Estate Properties [Line Items] | ||
Area of real estate portfolio (sq ft) | ft² | 16.6 | |
Wholly owned and Consolidated properties | Multifamily | ||
Real Estate Properties [Line Items] | ||
Number of units in real estate portfolio | unit | 3,448 | |
Unconsolidated Fund properties | Office | ||
Real Estate Properties [Line Items] | ||
Area of real estate portfolio (sq ft) | ft² | 1.8 |
Overview - Schedule of Properti
Overview - Schedule of Properties Portfolio (Details) | Mar. 31, 2018office_property |
Real Estate Properties [Line Items] | |
Number of properties | 81 |
Reportable Legal Entities | |
Real Estate Properties [Line Items] | |
Number of properties | 73 |
Office | |
Real Estate Properties [Line Items] | |
Number of properties | 71 |
Office | Wholly-owned properties | |
Real Estate Properties [Line Items] | |
Number of properties | 53 |
Office | Consolidated JV properties | |
Real Estate Properties [Line Items] | |
Number of properties | 10 |
Office | Unconsolidated Fund properties | |
Real Estate Properties [Line Items] | |
Number of properties | 8 |
Office | Reportable Legal Entities | |
Real Estate Properties [Line Items] | |
Number of properties | 63 |
Office | Reportable Legal Entities | Wholly-owned properties | |
Real Estate Properties [Line Items] | |
Number of properties | 53 |
Office | Reportable Legal Entities | Consolidated JV properties | |
Real Estate Properties [Line Items] | |
Number of properties | 10 |
Office | Reportable Legal Entities | Unconsolidated Fund properties | |
Real Estate Properties [Line Items] | |
Number of properties | 0 |
Multifamily | Wholly-owned properties | |
Real Estate Properties [Line Items] | |
Number of properties | 10 |
Multifamily | Reportable Legal Entities | Wholly-owned properties | |
Real Estate Properties [Line Items] | |
Number of properties | 10 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies - New Accounting Pronouncements (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements [Line Items] | ||||
Parking revenue | $ 25,200 | $ 23,200 | ||
Parking receivables | $ 1,400 | $ 1,000 | ||
AOCI | ||||
New Accounting Pronouncements [Line Items] | ||||
Cumulative effect adjustment related to adoption of new accounting standard | $ 211 | |||
ASU No. 2017-12 | AOCI | ||||
New Accounting Pronouncements [Line Items] | ||||
Cumulative effect adjustment related to adoption of new accounting standard | 211 | |||
ASU No. 2017-12 | Accumulated Deficit | ||||
New Accounting Pronouncements [Line Items] | ||||
Cumulative effect adjustment related to adoption of new accounting standard | $ (211) |
Investment in Real Estate - Car
Investment in Real Estate - Carrying Value of Assets and Liabilities Held for Sale (Details) $ in Thousands | Mar. 31, 2018USD ($)ft² | Dec. 31, 2017USD ($) |
Assets and Liabilities Classified as Held for Sale on Balance Sheet | ||
Property held for sale, net | $ 17,576 | $ 0 |
Property Held for Sale | Class A Office Property and Health Club Honolulu | ||
Assets and Liabilities Classified as Held for Sale on Balance Sheet | ||
Land | 1,863 | |
Buildings and improvements | 17,442 | |
Tenant improvements and lease intangibles | 5,150 | |
Accumulated depreciation and amortization | (7,375) | |
Deferred rent receivables, net | 187 | |
Other assets | 476 | |
Interest payable, accounts payable, and deferred revenue | (167) | |
Property held for sale, net | $ 17,576 | |
Property Held for Sale | Class A Office Property and Health Club Honolulu | Office Building | ||
Property Held For Sale [Line Items] | ||
Area of real estate property (sq ft) | ft² | 80,000 |
Acquired Lease Intangibles - Su
Acquired Lease Intangibles - Summary of Acquired Lease Intangibles (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired lease intangible assets, net | $ 3,998 | $ 4,293 |
Acquired lease intangible liabilities, net | 69,187 | 75,635 |
Above Market Tenant Leases | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Off-market lease, assets | 6,972 | 7,177 |
Accumulated amortization | (3,931) | (3,846) |
Below Market Tenant Leases | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Off-market lease, liabilities | 121,568 | 127,606 |
Accumulated accretion | (55,826) | (55,428) |
Above Market Ground Leases | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Off-market lease, assets | 1,152 | 1,152 |
Accumulated amortization | (195) | (190) |
Off-market lease, liabilities | 4,017 | 4,017 |
Accumulated accretion | $ (572) | $ (560) |
Acquired Lease Intangibles - Im
Acquired Lease Intangibles - Impact on Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization/accretion of above/below-market leases | $ 6,152 | $ 4,192 |
Operating Lease Revenue | Tenant Lease | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization/accretion of above/below-market leases | 6,144 | 4,184 |
Office Parking and Other Income | Above Market Ground Leases | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization/accretion of above/below-market leases | (4) | (4) |
Office Expense | Above Market Ground Leases | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization/accretion of above/below-market leases | $ 12 | $ 12 |
Investments in Unconsolidated45
Investments in Unconsolidated Real Estate Funds - Narrative (Details) ft² in Millions | 3 Months Ended |
Mar. 31, 2018ft²office_propertyfund | |
Schedule of Equity Method Investments [Line Items] | |
Number of properties | 81 |
Percentage of amounts related to the Fund | 100.00% |
Opportunity Fund | |
Schedule of Equity Method Investments [Line Items] | |
Equity interest of the Fund, percent | 6.20% |
Fund X | |
Schedule of Equity Method Investments [Line Items] | |
Equity interest of the Fund, percent | 69.40% |
Partnership X | |
Schedule of Equity Method Investments [Line Items] | |
Equity interest of the Fund, percent | 24.30% |
Unconsolidated Fund properties | |
Schedule of Equity Method Investments [Line Items] | |
Number of real estate funds owned and managed | fund | 3 |
Office Building | |
Schedule of Equity Method Investments [Line Items] | |
Number of properties | 71 |
Office Building | Unconsolidated Fund properties | |
Schedule of Equity Method Investments [Line Items] | |
Number of properties | 8 |
Area of real estate portfolio (sq ft) | ft² | 1.8 |
Investments in Unconsolidated46
Investments in Unconsolidated Real Estate Funds - Summary of Cash Distributions Received from Funds (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Real Estate Investments, Net [Abstract] | ||
Operating distributions received | $ 1,506 | $ 2,177 |
Capital distributions received | 1,953 | 1,407 |
Total distributions received | $ 3,459 | $ 3,584 |
Investments in Unconsolidated47
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, 2018 | Dec. 31, 2017 |
Real Estate Investments, Net [Abstract] | ||
Total assets | $ 709,102 | $ 704,186 |
Total liabilities | 525,179 | 523,767 |
Total equity | $ 183,923 | $ 180,419 |
Investments in Unconsolidated48
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, 2018 | Mar. 31, 2017 | |
Real Estate Investments, Net [Abstract] | ||
Total revenues | $ 19,147 | $ 18,625 |
Operating income | 5,566 | 4,908 |
Net income | $ 1,434 | $ 2,144 |
Other Assets - Summary of Other
Other Assets - Summary of Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Other Assets [Abstract] | ||
Restricted cash | $ 121 | $ 121 |
Prepaid expenses | 7,860 | 9,235 |
Other indefinite-lived intangibles | 1,988 | 1,988 |
Furniture, fixtures and equipment, net | 860 | 1,155 |
Other | 5,435 | 5,943 |
Total other assets | $ 16,264 | $ 18,442 |
Secured Notes Payable and Rev50
Secured Notes Payable and Revolving Credit Facility, Net - Schedule of Secured Notes Payable and Revolving Credit Facility (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Principal Balance | $ 4,134,500,000 | $ 4,152,308,000 |
Unamortized loan premium, net | 4,140,000 | 4,191,000 |
Deferred loan costs, net | (39,740,000) | (39,109,000) |
Total Consolidated Debt, Net | 4,098,900,000 | 4,117,390,000 |
Revolving Credit Facility With Maturity Date of August 21, 2020 | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 400,000,000 | |
Revolving Credit Facility With Maturity Date of August 21, 2020 | Minimum | ||
Debt Instrument [Line Items] | ||
Unused commitment fees (as a percent) | 0.15% | |
Revolving Credit Facility With Maturity Date of August 21, 2020 | Maximum | ||
Debt Instrument [Line Items] | ||
Unused commitment fees (as a percent) | 0.20% | |
Secured Debt | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis Spread on Variable Rate | 0.00% | |
Secured Debt | Term Loan With Maturity Date of June 1, 2038 | ||
Debt Instrument [Line Items] | ||
Fixed Rate Debt Amortization Period | 30 years | |
Wholly Owned Subsidiaries | ||
Debt Instrument [Line Items] | ||
Principal Balance | $ 3,154,500,000 | 3,172,308,000 |
Wholly Owned Subsidiaries | Secured Debt | Term Loan With Effective Annual Fixed Interest Rate At 4.00% | ||
Debt Instrument [Line Items] | ||
Principal Balance | 0 | 146,974,000 |
Wholly Owned Subsidiaries | Secured Debt | Term Loan With Effective Annual Fixed Interest Rate At 3.85% | ||
Debt Instrument [Line Items] | ||
Principal Balance | $ 0 | 280,721,000 |
Wholly Owned Subsidiaries | Secured Debt | Fannie Mae Loan With Maturity Date of October 1, 2019 | ||
Debt Instrument [Line Items] | ||
Maturity Date | Oct. 1, 2019 | |
Principal Balance | $ 145,000,000 | 145,000,000 |
Variable Interest Rate | LIBOR + 1.25% | |
Wholly Owned Subsidiaries | Secured Debt | Fannie Mae Loan With Maturity Date of October 1, 2019 | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis Spread on Variable Rate | 1.25% | |
Wholly Owned Subsidiaries | Secured Debt | Term Loan With Effective Annual Fixed Interest Rate At 2.77% | ||
Debt Instrument [Line Items] | ||
Maturity Date | Apr. 15, 2022 | |
Principal Balance | $ 340,000,000 | 340,000,000 |
Variable Interest Rate | LIBOR + 1.40% | |
Fixed Interest Rate | 2.77% | |
Swap Maturity Date | Apr. 1, 2020 | |
Wholly Owned Subsidiaries | Secured Debt | Term Loan With Effective Annual Fixed Interest Rate At 2.77% | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis Spread on Variable Rate | 1.40% | |
Wholly Owned Subsidiaries | Secured Debt | Term Loan With Effective Annual Fixed Interest Rate At 3.06% | ||
Debt Instrument [Line Items] | ||
Maturity Date | Jul. 27, 2022 | |
Principal Balance | $ 180,000,000 | 180,000,000 |
Variable Interest Rate | LIBOR + 1.45% | |
Fixed Interest Rate | 3.06% | |
Swap Maturity Date | Jul. 1, 2020 | |
Wholly Owned Subsidiaries | Secured Debt | Term Loan With Effective Annual Fixed Interest Rate At 3.06% | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis Spread on Variable Rate | 1.45% | |
Wholly Owned Subsidiaries | Secured Debt | Term Loan With Effective Annual Fixed Interest Rate At 2.64% | ||
Debt Instrument [Line Items] | ||
Maturity Date | Nov. 1, 2022 | |
Principal Balance | $ 400,000,000 | 400,000,000 |
Variable Interest Rate | LIBOR + 1.35% | |
Fixed Interest Rate | 2.64% | |
Swap Maturity Date | Nov. 1, 2020 | |
Wholly Owned Subsidiaries | Secured Debt | Term Loan With Effective Annual Fixed Interest Rate At 2.64% | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis Spread on Variable Rate | 1.35% | |
Wholly Owned Subsidiaries | Secured Debt | Term Loan With Effective Annual Fixed Interest Rate At 2.57% | ||
Debt Instrument [Line Items] | ||
Maturity Date | Jun. 23, 2023 | |
Principal Balance | $ 360,000,000 | 360,000,000 |
Variable Interest Rate | LIBOR + 1.55% | |
Fixed Interest Rate | 2.57% | |
Swap Maturity Date | Jul. 1, 2021 | |
Wholly Owned Subsidiaries | Secured Debt | Term Loan With Effective Annual Fixed Interest Rate At 2.57% | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis Spread on Variable Rate | 1.55% | |
Wholly Owned Subsidiaries | Secured Debt | Term Loan With Effective Annual Fixed Interest Rate At 3.62% | ||
Debt Instrument [Line Items] | ||
Maturity Date | Dec. 23, 2023 | |
Principal Balance | $ 220,000,000 | 220,000,000 |
Variable Interest Rate | LIBOR + 1.70% | |
Fixed Interest Rate | 3.62% | |
Swap Maturity Date | Dec. 23, 2021 | |
Wholly Owned Subsidiaries | Secured Debt | Term Loan With Effective Annual Fixed Interest Rate At 3.62% | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis Spread on Variable Rate | 1.70% | |
Wholly Owned Subsidiaries | Secured Debt | Term Loan With Effective Annual Fixed Interest Rate At 3.46% | ||
Debt Instrument [Line Items] | ||
Maturity Date | Jan. 1, 2024 | |
Principal Balance | $ 300,000,000 | 300,000,000 |
Variable Interest Rate | LIBOR + 1.55% | |
Fixed Interest Rate | 3.46% | |
Swap Maturity Date | Jan. 1, 2022 | |
Wholly Owned Subsidiaries | Secured Debt | Term Loan With Effective Annual Fixed Interest Rate At 3.46% | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis Spread on Variable Rate | 1.55% | |
Wholly Owned Subsidiaries | Secured Debt | Term Loan With Effective Annual Fixed Interest Rate At 3.84% | ||
Debt Instrument [Line Items] | ||
Maturity Date | Mar. 3, 2025 | |
Principal Balance | $ 335,000,000 | 0 |
Variable Interest Rate | LIBOR + 1.30% | |
Fixed Interest Rate | 3.84% | |
Swap Maturity Date | Mar. 1, 2023 | |
Wholly Owned Subsidiaries | Secured Debt | Term Loan With Effective Annual Fixed Interest Rate At 3.84% | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis Spread on Variable Rate | 1.30% | |
Wholly Owned Subsidiaries | Secured Debt | Fannie Mae Loan With Maturity Date of April 1, 2025 | ||
Debt Instrument [Line Items] | ||
Maturity Date | Apr. 1, 2025 | |
Principal Balance | $ 102,400,000 | 102,400,000 |
Variable Interest Rate | LIBOR + 1.25% | |
Fixed Interest Rate | 2.84% | |
Swap Maturity Date | Mar. 1, 2020 | |
Wholly Owned Subsidiaries | Secured Debt | Fannie Mae Loan With Maturity Date of April 1, 2025 | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis Spread on Variable Rate | 1.25% | |
Wholly Owned Subsidiaries | Secured Debt | Fannie Mae Loans With Maturity Date of December 1, 2025 | ||
Debt Instrument [Line Items] | ||
Maturity Date | Dec. 1, 2025 | |
Principal Balance | $ 115,000,000 | 115,000,000 |
Variable Interest Rate | LIBOR + 1.25% | |
Fixed Interest Rate | 2.76% | |
Swap Maturity Date | Dec. 1, 2020 | |
Wholly Owned Subsidiaries | Secured Debt | Fannie Mae Loans With Maturity Date of December 1, 2025 | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis Spread on Variable Rate | 1.25% | |
Wholly Owned Subsidiaries | Secured Debt | Fannie Mae Loans With Maturity Date of June 1, 2027 | ||
Debt Instrument [Line Items] | ||
Maturity Date | Jun. 1, 2027 | |
Principal Balance | $ 550,000,000 | 550,000,000 |
Variable Interest Rate | LIBOR + 1.37% | |
Fixed Interest Rate | 3.16% | |
Swap Maturity Date | Jun. 1, 2022 | |
Wholly Owned Subsidiaries | Secured Debt | Fannie Mae Loans With Maturity Date of June 1, 2027 | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis Spread on Variable Rate | 1.37% | |
Wholly Owned Subsidiaries | Secured Debt | Term Loan With Maturity Date of June 1, 2038 | ||
Debt Instrument [Line Items] | ||
Maturity Date | Jun. 1, 2038 | |
Principal Balance | $ 32,100,000 | 32,213,000 |
Fixed Interest Rate | 4.55% | |
Wholly Owned Subsidiaries | Line of Credit | Revolving Credit Facility With Maturity Date of August 21, 2020 | ||
Debt Instrument [Line Items] | ||
Maturity Date | Aug. 21, 2020 | |
Principal Balance | $ 75,000,000 | 0 |
Variable Interest Rate | LIBOR + 1.40% | |
Wholly Owned Subsidiaries | Line of Credit | Revolving Credit Facility With Maturity Date of August 21, 2020 | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis Spread on Variable Rate | 1.40% | |
Consolidated JV | Secured Debt | Term Loan With Maturity Date of February 28, 2023 | ||
Debt Instrument [Line Items] | ||
Maturity Date | Feb. 28, 2023 | |
Principal Balance | $ 580,000,000 | 580,000,000 |
Variable Interest Rate | LIBOR + 1.40% | |
Fixed Interest Rate | 2.37% | |
Swap Maturity Date | Mar. 1, 2021 | |
Consolidated JV | Secured Debt | Term Loan With Maturity Date of February 28, 2023 | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis Spread on Variable Rate | 1.40% | |
Consolidated JV | Secured Debt | Term Loan With Maturity Date of December 19, 2024 | ||
Debt Instrument [Line Items] | ||
Maturity Date | Dec. 19, 2024 | |
Principal Balance | $ 400,000,000 | $ 400,000,000 |
Variable Interest Rate | LIBOR + 1.30% | |
Fixed Interest Rate | 3.47% | |
Swap Maturity Date | Jan. 1, 2023 | |
Consolidated JV | Secured Debt | Term Loan With Maturity Date of December 19, 2024 | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis Spread on Variable Rate | 1.30% |
Secured Notes Payable and Rev51
Secured Notes Payable and Revolving Credit Facility, Net - Schedule of Debt Statistics (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Debt Disclosure [Abstract] | ||
Principal balance of consolidated fixed rate debt | $ 3,910,000 | |
Weighted average remaining life (including extension options) of consolidated fixed rate debt (in years) | 6 years 1 month | |
Weighted average remaining fixed interest period of consolidated fixed rate debt (in years) | 3 years 5 months | |
Weighted average annual interest rate of consolidated fixed rate debt (as a percent) | 3.07% | |
Debt Instrument [Line Items] | ||
Principal Balance | $ 4,134,500 | $ 4,152,308 |
Aggregate Swapped to Fixed Rate Loans | ||
Debt Instrument [Line Items] | ||
Principal Balance | 3,882,400 | 3,547,400 |
Aggregate Fixed Rate Loans | ||
Debt Instrument [Line Items] | ||
Principal Balance | 32,100 | 459,908 |
Aggregate Floating Rate Loans | ||
Debt Instrument [Line Items] | ||
Principal Balance | $ 220,000 | $ 145,000 |
Secured Notes Payable and Rev52
Secured Notes Payable and Revolving Credit Facility, Net - Schedule of Minimum Future Principal Payments (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Excluding Maturity Extension Options | ||
2,019 | $ 694 | |
2,020 | 145,727 | |
2,021 | 370,760 | |
2,022 | 300,796 | |
2,023 | 1,655,833 | |
Thereafter | 1,660,690 | |
Total future principal payments | 4,134,500 | $ 4,152,308 |
Including Maturity Extension Options | ||
2,019 | 694 | |
2,020 | 145,727 | |
2,021 | 75,760 | |
2,022 | 796 | |
2,023 | 1,500,833 | |
Thereafter | 2,410,690 | |
Total future principal payments | $ 4,134,500 | $ 4,152,308 |
Secured Notes Payable and Rev53
Secured Notes Payable and Revolving Credit Facility, Net - Schedule of Loan Costs and Accumulated Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |||
Accumulated amortization on deferred loan costs | $ 18,200 | $ 18,000 | |
Loan Costs Included In Interest Expense | |||
Deferred loan cost amortization | 2,309 | $ 2,098 | |
Interest Expense | |||
Loan Costs Included In Interest Expense | |||
Loan costs expensed | 404 | 0 | |
Deferred loan cost amortization | 1,905 | 2,098 | |
Total | $ 2,309 | $ 2,098 |
Interest Payable, Accounts Pa54
Interest Payable, Accounts Payable and Deferred Revenue - Summary of Balances (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Interest payable | $ 10,887 | $ 9,829 |
Accounts payable and accrued liabilities | 90,940 | 62,741 |
Deferred revenue | 35,047 | 31,377 |
Total interest payable, accounts payable and deferred revenue | $ 136,874 | $ 103,947 |
Derivative Contracts - Summary
Derivative Contracts - Summary of Derivatives (Details) - Interest Rate Swap - Derivatives Designated as Cash Flow Hedges - Cash Flow Hedging $ in Thousands | Mar. 31, 2018USD ($)instrument |
Derivative [Line Items] | |
Number of Interest Rate Swaps | instrument | 27 |
Notional | $ | $ 3,882,400 |
Percent of notional amount related to the Fund | 100.00% |
Unconsolidated Funds | |
Derivative [Line Items] | |
Number of Interest Rate Swaps | instrument | 4 |
Notional | $ | $ 510,000 |
Percent of notional amount related to the Fund | 100.00% |
Derivative Contracts - Credit-r
Derivative Contracts - Credit-risk-related Contingent Features (Details) - Interest Rate Swap - Derivatives Designated as Cash Flow Hedges - Cash Flow Hedging - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value derivatives in a liability position | $ 339 | $ 915 |
Percent of notional amount related to the Fund | 100.00% | |
Unconsolidated Funds | ||
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, 2018 | Dec. 31, 2017 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value of derivatives in an asset position | $ 98,909 | $ 60,069 |
Interest Rate Swap | Derivatives Designated as Cash Flow Hedges | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value of derivatives in an asset position | $ 99,908 | 60,093 |
Percent of notional amount related to the Fund | 100.00% | |
Interest Rate Swap | Derivatives Designated as Cash Flow Hedges | Cash Flow Hedging | Unconsolidated Funds | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value of derivatives in an asset position | $ 16,737 | $ 9,350 |
Percent of notional amount related to the Fund | 100.00% |
Derivative Contracts - Impact o
Derivative Contracts - Impact of Hedges on AOCI and Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative [Line Items] | ||
Gain recorded in AOCI - adoption of ASU 2017-12 | $ 211 | $ 0 |
Gain recorded in AOCI | 39,731 | 4,722 |
Interest Expense | 32,900 | 36,954 |
Income, including depreciation, from unconsolidated real estate funds | 1,506 | 2,177 |
Unconsolidated Funds | ||
Derivative [Line Items] | ||
Gain recorded in AOCI | 4,475 | 99 |
Cash Flow Hedging | Derivatives Designated as Cash Flow Hedges | ||
Derivative [Line Items] | ||
Gain recorded in AOCI - adoption of ASU 2017-12 | 211 | 0 |
Gain recorded in AOCI | 39,731 | 4,722 |
Gain (loss) reclassified from AOCI | 131 | (5,100) |
Cash Flow Hedging | Derivatives Designated as Cash Flow Hedges | Interest Expense | ||
Derivative [Line Items] | ||
Gain related to ineffectiveness recorded in Interest Expense | 0 | 13 |
Cash Flow Hedging | Derivatives Designated as Cash Flow Hedges | Unconsolidated Funds | ||
Derivative [Line Items] | ||
Gain recorded in AOCI | 4,475 | 99 |
Gain (loss) reclassified from AOCI | $ (83) | $ 92 |
Derivative Contracts - Future R
Derivative Contracts - Future Reclassifications from AOCI (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative designated as cash flow hedge to be reclassified | $ 20,574 |
Unconsolidated Funds | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative designated as cash flow hedge to be reclassified | $ 1,282 |
Equity - Narrative (Details)
Equity - Narrative (Details) - shares | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||
Number of operating partnership units converted to shares of common stock (shares) | 322,000 | 337,000 | |
Shares of common stock issued for exercise of stock options (shares) | 1,300,000 | 14,000 | |
Number of stock options exercised (shares) | 3,900,000 | 32,000 | |
Common stock, outstanding (in shares) | 169,900,749 | 169,564,927 | |
Number of OP units and fully-vested LTIP units outstanding | 27,500,000 | ||
Number of shares of common stock issued upon redemption of one OP unit (shares) | 1 | ||
Partnership Interest | |||
Schedule of Equity Method Investments [Line Items] | |||
Investors' ownership in joint venture (percent) | 14.00% |
Equity - Condensed Consolidated
Equity - Condensed Consolidated Statements of Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Douglas Emmett, Inc. Stockholders' Equity, Beginning Balance | $ 2,437,524 | |
Noncontrolling Interests, Beginning Balance | 1,464,525 | |
Beginning Balance | 3,902,049 | $ 3,014,071 |
Adjustment to opening balance of accumulated deficit | (211) | |
Net income attributable to common stockholders | 28,206 | 19,049 |
Noncontrolling Interests, Net Income | 4,425 | 2,731 |
Net income | 32,631 | 21,780 |
Cash flow hedge fair value adjustment, total equity | 44,369 | 9,829 |
Contributions to consolidated JVs | 250 | |
Dividends and distributions, Douglas Emmett, Inc. Stockholders' Equity | (42,483) | (35,223) |
Dividends and distributions, total equity | (55,560) | (44,855) |
Exchange of OP units for common stock | 0 | 0 |
Exercise of stock options(2) | (313) | (52,704) |
Stock-based compensation, total equity | 3,502 | 2,936 |
Douglas Emmett, Inc. Stockholders' Equity, Ending Balance | 2,458,852 | |
Noncontrolling Interests, Ending Balance | 1,467,615 | |
Ending Balance | 3,926,467 | 2,951,307 |
DEI Stockholders' Equity | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Douglas Emmett, Inc. Stockholders' Equity, Beginning Balance | 2,437,524 | 1,921,143 |
Adjustment to opening balance of accumulated deficit | (211) | |
Net income attributable to common stockholders | 28,206 | 19,049 |
Cash flow hedge fair value adjustment, Douglas Emmett, Inc. Stockholders' Equity | 30,922 | 7,702 |
Contributions to consolidated JVs | 0 | |
Dividends and distributions, Douglas Emmett, Inc. Stockholders' Equity | (42,475) | (35,223) |
Exchange of OP units for common stock | 5,199 | 4,523 |
Exercise of stock options(2) | (313) | (52,704) |
Stock-based compensation, Douglas Emmett Stockholders' Equity | 0 | 0 |
Douglas Emmett, Inc. Stockholders' Equity, Ending Balance | 2,458,852 | 1,864,490 |
Noncontrolling Interests | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Noncontrolling Interests, Beginning Balance | 1,464,525 | 1,092,928 |
Adjustment to opening balance of accumulated deficit | 0 | |
Noncontrolling Interests, Net Income | 4,425 | 2,731 |
Cash flow hedge fair value adjustment, noncontrolling interest | 13,447 | 2,127 |
Contributions to consolidated JVs | 250 | |
Dividends and distributions, noncontrolling interest | (13,085) | (9,632) |
Exchange of OP units for common stock | (5,199) | (4,523) |
Exercise of stock options(2) | 0 | 0 |
Stock-based compensation, noncontrolling interest | 3,502 | 2,936 |
Noncontrolling Interests, Ending Balance | $ 1,467,615 | $ 1,086,817 |
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, 2018 | Mar. 31, 2017 | |
Stockholders' Equity Note [Abstract] | ||
Net income attributable to common stockholders | $ 28,206 | $ 19,049 |
Transfers from noncontrolling interests: | ||
Exchange of OP Units with noncontrolling interests | 5,199 | 4,523 |
Net transfers from noncontrolling interests | 5,199 | 4,523 |
Change from net income attributable to common stockholders and transfers from noncontrolling interests | $ 33,405 | $ 23,572 |
Equity - AOCI Reconciliation (D
Equity - AOCI Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Jan. 01, 2018 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | $ 3,902,049 | $ 3,014,071 | |
Net current period OCI | 44,369 | 9,829 | |
OCI attributable to noncontrolling interests | (13,447) | (2,127) | |
OCI attributable to common stockholders | 30,922 | 7,702 | |
Ending Balance | 3,926,467 | 2,951,307 | |
AOCI | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | 43,099 | 15,156 | |
Adoption of ASU 2017-12 - cumulative opening balance adjustment | $ 211 | ||
Ending Balance | 74,021 | 22,858 | |
Accumulated Net Gain (Loss) from Cash Flow Hedges | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Other comprehensive income before reclassifications | 39,731 | 4,722 | |
Reclassification of (gains) losses from AOCI | 131 | (5,100) | |
Accumulated Net Gain (Loss) from Cash Flow Hedges | Fund X | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Other comprehensive income before reclassifications | 4,475 | 99 | |
Reclassification of (gains) losses from AOCI | $ (83) | $ 92 |
Equity - Equity Compensation (D
Equity - Equity Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Stockholders' Equity Note [Abstract] | ||
Net stock-based compensation expense | $ 3,051 | $ 2,708 |
Capitalized stock-based compensation for improvements to real estate and developments | 452 | 228 |
Intrinsic value of options exercised | $ 803 | $ 102,100 |
EPS - Summary of EPS Computatio
EPS - Summary of EPS Computation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Net income attributable to common stockholders | $ 28,206 | $ 19,049 |
Allocation to participating securities: Unvested LTIP Units | (117) | (98) |
Numerator for basic and diluted net income attributable to common stock holders | $ 28,089 | $ 18,951 |
Weighted average shares of common stock outstanding - basic (in shares) | 169,601 | 152,490 |
Effect of dilutive securities: Stock options (in shares) | 24 | 1,165 |
Weighted average shares of common stock and common stock equivalents outstanding - diluted (in shares) | 169,625 | 153,655 |
Basic EPS: | ||
Net income attributable to common stockholders per share (usd per share) | $ 0.17 | $ 0.12 |
Diluted EPS: | ||
Net income attributable to common stockholders per share (usd per share) | $ 0.17 | $ 0.12 |
Operating Partnership Units and Vested LTIP Units | ||
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) | 26,943 | 24,661 |
Vested LTIP Units | ||
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) | 800 | 762 |
Fair Value of Financial Instr66
Fair Value of Financial Instruments - Estimated Fair Value of Secured Notes Payable (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Secured notes payable | $ 4,092,680 | $ 4,195,489 |
Reported Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Secured notes payable | $ 4,063,640 | $ 4,156,499 |
Fair Value of Financial Instr67
Fair Value of Financial Instruments - Financial Instruments Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Derivative Assets: | ||
Fair value - derivatives | $ 98,909 | $ 60,069 |
Derivative Liabilities: | ||
Fair value - derivatives | $ 46 | 807 |
Fund X | Interest Rate Swap | ||
Derivative Liabilities: | ||
Percent of notional amount related to the Fund | 100.00% | |
Level 2 | ||
Derivative Assets: | ||
Fair value - derivatives | $ 98,909 | 60,069 |
Derivative Liabilities: | ||
Fair value - derivatives | 46 | 807 |
Level 2 | Fund X | ||
Derivative Assets: | ||
Fair value - unconsolidated Funds' derivatives | 16,611 | 9,437 |
Derivative Liabilities: | ||
Fair value - unconsolidated Funds' derivatives | $ 0 | $ 0 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 3 Months Ended |
Mar. 31, 2018segment | |
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, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Total office revenues | $ 187,333 | $ 170,348 |
Office expenses | (60,356) | (54,885) |
Total multifamily revenues | 24,914 | 24,133 |
Multifamily expenses | (6,698) | (5,947) |
Segment profit | 145,193 | 133,649 |
Office segment | ||
Segment Reporting Information [Line Items] | ||
Total office revenues | 187,333 | 170,348 |
Office expenses | (60,356) | (54,885) |
Segment profit | 126,977 | 115,463 |
Multifamily segment | ||
Segment Reporting Information [Line Items] | ||
Total multifamily revenues | 24,914 | 24,133 |
Multifamily expenses | (6,698) | (5,947) |
Segment profit | $ 18,216 | $ 18,186 |
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, 2018 | Mar. 31, 2017 | |
Segment Reporting [Abstract] | ||
Total profit from all segments | $ 145,193 | $ 133,649 |
General and administrative | (9,567) | (10,156) |
Depreciation and amortization | (72,498) | (67,374) |
Other income | 2,630 | 2,162 |
Other expenses | (1,733) | (1,724) |
Income, including depreciation, from unconsolidated real estate funds | 1,506 | 2,177 |
Interest expense | (32,900) | (36,954) |
Net income | 32,631 | 21,780 |
Less: Net income attributable to noncontrolling interests | (4,425) | (2,731) |
Net income attributable to common stockholders | $ 28,206 | $ 19,049 |
Future Minimum Lease Rental R71
Future Minimum Lease Rental Receipts - Summary of Minimum Rental Receipts (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($)land_parcel | |
Real Estate Properties [Line Items] | |
2,019 | $ 541,977 |
2,020 | 496,874 |
2,021 | 429,106 |
2,022 | 337,392 |
2,023 | 261,907 |
Thereafter | 652,889 |
Total future minimum base rentals | $ 2,720,145 |
Term of residential leases | 1 year |
Wholly-owned properties | |
Real Estate Properties [Line Items] | |
Number of land parcels | land_parcel | 2 |
Future Minimum Lease Rental P72
Future Minimum Lease Rental Payments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
Ground lease payments | $ 183 | $ 183 |
Future Minimum Lease Rental P73
Future Minimum Lease Rental Payments - Summary of Ground Lease Payments (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,019 | $ 733 |
2,020 | 733 |
2,021 | 733 |
2,022 | 733 |
2,023 | 733 |
Thereafter | 46,728 |
Total future minimum lease payments | 50,393 |
Future ground rent payments per year | $ 733 |
Commitments, Contingencies an74
Commitments, Contingencies and Guarantees - Narrative (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018USD ($)apartmentproperty | Dec. 31, 2016apartment | |
Loss Contingencies [Line Items] | ||
Number of properties containing Asbestos | property | 28 | |
Contractual amount for development project | $ | $ 29,000,000 | |
Development Projects | ||
Loss Contingencies [Line Items] | ||
Contractual amount for development project | $ | $ 244,800,000 | |
Development Projects | Hawaii | ||
Loss Contingencies [Line Items] | ||
Number of apartments under construction | apartment | 475 | |
Number of apartments leased | apartment | 104 | |
Development Projects | California | ||
Loss Contingencies [Line Items] | ||
Expected number of apartments to be constructed | apartment | 376 | |
Maximum | ||
Loss Contingencies [Line Items] | ||
Amount accounts are insured for by Federal Deposit Insurance Corporation | $ | $ 250,000 | |
Unconsolidated Funds | ||
Loss Contingencies [Line Items] | ||
Number of properties containing Asbestos | property | 4 |
Commitments, Contingencies an75
Commitments, Contingencies and Guarantees - Schedule of Debt Related to Unconsolidated Funds (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($)property | Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | ||
Principal Balance | $ 4,098,900 | $ 4,117,390 |
Partnership X | ||
Debt Instrument [Line Items] | ||
Loan Maturity Date | Mar. 1, 2023 | |
Principal Balance | $ 110,000 | |
Collateral, number of properties | property | 2 | |
Maximum future payments under the swap agreement | $ 2,900 | |
Partnership X | Interest Rate Swap | ||
Debt Instrument [Line Items] | ||
Variable Interest Rate - basis spread | 1.40% | |
Swap Fixed Interest Rate | 2.30% | |
Swap Maturity Date | Mar. 1, 2021 | |
Fund X | ||
Debt Instrument [Line Items] | ||
Loan Maturity Date | Jul. 1, 2024 | |
Principal Balance | $ 400,000 | |
Collateral, number of properties | property | 6 | |
Maximum future payments under the swap agreement | $ 30,900 | |
Loan agreement, one month LIBOR maximum for interest rate cap requirement | 3.56% | |
Loan agreement, number of consecutive days | 14 days | |
Fund X | Interest Rate Swap | ||
Debt Instrument [Line Items] | ||
Variable Interest Rate - basis spread | 1.65% | |
Swap Fixed Interest Rate | 3.44% | |
Swap Maturity Date | Jul. 1, 2022 | |
Unconsolidated Funds | ||
Debt Instrument [Line Items] | ||
Principal Balance | $ 510,000 | |
LIBOR | Partnership X | ||
Debt Instrument [Line Items] | ||
Loan agreement LIBOR floor | 0.00% | |
LIBOR | Fund X | ||
Debt Instrument [Line Items] | ||
Loan agreement LIBOR floor | 0.00% |