Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Jan. 29, 2016 | Jun. 30, 2015 | |
Document and Entity Information | |||
Entity Registrant Name | Monogram Residential Trust, Inc. | ||
Entity Central Index Key | 1,384,710 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 166,624,230 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 1,501,104,882 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Real estate | ||
Land ($176,233 and $58,938 related to VIEs as of December 31, 2015 and 2014, respectively) | $ 497,360 | $ 389,885 |
Buildings and improvements ($790,235 and $227,817 related to VIEs as of December 31, 2015 and 2014, respectively) | 2,627,693 | 2,033,819 |
Total real estate, gross | 3,125,053 | 2,423,704 |
Less accumulated depreciation ($23,324 and $4,605 related to VIEs as of December 31, 2015 and 2014, respectively) | (357,036) | (280,400) |
Net operating real estate | 2,768,017 | 2,143,304 |
Construction in progress, including land ($126,149 and $582,299 related to VIEs as of December 31, 2015 and 2014, respectively) | 333,153 | 716,930 |
Total real estate, net | 3,101,170 | 2,860,234 |
Cash and cash equivalents | 83,727 | 116,407 |
Intangibles, net | 18,066 | 21,485 |
Other assets, net | 80,183 | 110,282 |
Total assets | 3,283,146 | 3,108,408 |
Liabilities | ||
Mortgages and notes payable ($485,438 and $227,310 related to VIEs as of December 31, 2015 and 2014, respectively) | 1,473,034 | 1,186,481 |
Credit facilities payable | 49,000 | 10,000 |
Construction costs payable ($24,228 and $63,393 related to VIEs as of December 31, 2015 and 2014, respectively) | 36,975 | 75,623 |
Accounts payable and other liabilities | 28,922 | 28,053 |
Deferred revenues, primarily lease revenues, net | 19,451 | 18,955 |
Distributions payable | 12,494 | 12,485 |
Tenant security deposits | 5,616 | 4,586 |
Total liabilities | $ 1,625,492 | $ 1,336,183 |
Commitments and contingencies | ||
Redeemable noncontrolling interests ($26,090 and $27,444 related to VIEs as of December 31, 2015 and 2014, respectively) | $ 29,073 | $ 32,012 |
Equity | ||
Preferred stock, $0.0001 par value per share; 125,000,000 shares authorized as of December 31, 2015 and 2014, respectively:7.0% Series A non-participating, voting, cumulative, convertible preferred stock, liquidation preference $10 per share, 10,000 shares issued and outstanding as of December 31, 2015 and 2014, respectively | 0 | 0 |
Common stock, $0.0001 par value per share; 875,000,000 shares authorized, 166,611,549 and 166,467,726 shares issued and outstanding as of December 31, 2015 and 2014, respectively | 17 | 17 |
Additional paid-in capital | 1,436,254 | 1,492,799 |
Cumulative distributions and net income (loss) | (269,523) | (293,350) |
Total equity attributable to common stockholders | 1,166,748 | 1,199,466 |
Non-redeemable noncontrolling interests | 461,833 | 540,747 |
Total equity | 1,628,581 | 1,740,213 |
Total liabilities and equity | $ 3,283,146 | $ 3,108,408 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Land | $ 497,360 | $ 389,885 |
Buildings and improvements | 2,627,693 | 2,033,819 |
Less accumulated depreciation | (357,036) | (280,400) |
Construction in progress | 333,153 | 716,930 |
Mortgages and notes payable | 1,473,034 | 1,186,481 |
Construction costs payable | 36,975 | 75,623 |
Redeemable noncontrolling interests | $ 29,073 | $ 32,012 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 125,000,000 | 125,000,000 |
Preferred stock, shares issued | 10,000 | 10,000 |
Preferred stock, shares outstanding | 10,000 | 10,000 |
Preferred stock, liquidation preference per share | $ 10 | $ 10 |
Preferred stock, dividend rate, percentage | 7.00% | 7.00% |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 875,000,000 | 875,000,000 |
Common Stock, Shares, Issued | 166,611,549 | 166,467,726 |
Common stock, shares outstanding | 166,611,549 | 166,467,726 |
VIEs | ||
Land | $ 176,233 | $ 58,938 |
Buildings and improvements | 790,235 | 227,817 |
Less accumulated depreciation | (23,324) | (4,605) |
Construction in progress | 126,149 | 582,299 |
Mortgages and notes payable | 485,438 | 227,310 |
Construction costs payable | 24,228 | 63,393 |
Redeemable noncontrolling interests | $ 26,090 | $ 27,444 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Rental revenues | $ 238,068 | $ 209,025 | $ 190,624 |
Expenses | |||
Property operating expenses | 67,484 | 55,940 | 51,027 |
Real estate taxes | 34,443 | 29,842 | 24,740 |
Asset management fees | 0 | 3,843 | 7,673 |
General and administrative expenses | 20,813 | 15,627 | 11,373 |
Acquisition expenses | 641 | (17) | 3,677 |
Transition expenses | 0 | 12,672 | 9,003 |
Investment and development expenses | 4,171 | 1,197 | 553 |
Interest expense | 30,351 | 21,424 | 23,844 |
Amortization of deferred financing costs | 4,280 | 2,486 | 1,814 |
Depreciation and amortization | 102,726 | 93,308 | 84,296 |
Total expenses | 264,909 | 236,322 | 218,000 |
Interest income | 10,172 | 10,554 | 8,507 |
Loss on early extinguishment of debt | 0 | (230) | 0 |
Equity in income of investments in unconsolidated real estate joint ventures | 250 | 770 | 1,311 |
Other income, net | 127 | 63 | 92 |
Loss from continuing operations before gains on sales of real estate | (16,292) | (16,140) | (17,466) |
Gains on sales of real estate | 82,975 | 16,411 | 0 |
Income (loss) from continuing operations | 66,683 | 271 | (17,466) |
Income (loss) from discontinued operations: | |||
Loss from discontinued operations | 0 | 0 | (724) |
Gains on sales of real estate in discontinued operations | 0 | 0 | 50,779 |
Income from discontinued operations | 0 | 0 | 50,055 |
Net income | 66,683 | 271 | 32,589 |
Net (income) loss attributable to noncontrolling interests: | |||
Non-redeemable noncontrolling interests in continuing operations | 7,112 | (6,388) | 3,938 |
Non-redeemable noncontrolling interests in discontinued operations | 0 | 0 | (6,832) |
Net income (loss) available to the Company | 73,795 | (6,117) | 29,695 |
Dividends to preferred stockholders | (7) | (7) | (3) |
Net income (loss) attributable to common stockholders | $ 73,788 | $ (6,124) | $ 29,692 |
Weighted average number of common shares outstanding - basic | 166,561 | 168,793 | 168,650 |
Weighted average number of common shares outstanding - diluted | 167,205 | 169,029 | 168,650 |
Basic and diluted income (loss) per common share: | |||
Continuing operations (in dollars per share) | $ 0.44 | $ (0.04) | $ (0.08) |
Discontinued operations (in dollars per share) | 0 | 0 | 0.26 |
Basic and diluted income per common share (in dollars per share) | $ 0.44 | $ (0.04) | $ 0.18 |
Amounts attributable to common stockholders: | |||
Continuing operations | $ 73,788 | $ (6,124) | $ (13,531) |
Discontinued operations | 0 | 0 | 43,223 |
Net income (loss) attributable to common stockholders | $ 73,788 | $ (6,124) | $ 29,692 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands | Total | Convertible Stock | Preferred Stock | Common Stock | Additional Paid-in Capital | Noncontrolling Interests | Cumulative Distributions and Net Income (Loss) Available to the Company |
Balance at Dec. 31, 2012 | $ 1,687,802 | $ 17 | $ 1,523,646 | $ 365,350 | $ (201,211) | ||
Balance (in shares) at Dec. 31, 2012 | 1 | 167,542 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | 32,589 | 2,894 | 29,695 | ||||
Redemptions of common stock | $ (22,936) | (22,936) | |||||
Redemptions of common stock (in shares) | (2,500) | (2,483) | |||||
Acquisition of noncontrolling interests | $ (35,972) | (23,210) | (12,762) | ||||
Sale of noncontrolling interest | 5,898 | 148 | 5,750 | ||||
Contributions by noncontrolling interests | 146,276 | 146,276 | |||||
Distributions: | |||||||
Common stock - regular for the years ended December 31, 2015, 2014, 2013 respectively: $0.30, $0.34, $0.35 | (59,035) | (59,035) | |||||
Noncontrolling interests | (51,303) | (51,303) | |||||
Preferred stock | (3) | (3) | |||||
Issuance of preferred stock (in shares) | 10 | ||||||
Cancellation of convertible stock | (1) | ||||||
Stock issued pursuant to distribution reinvestment plan, net | 31,007 | 31,007 | |||||
Stock issued pursuant to distribution reinvestment plan, net (in shares) | 3,261 | ||||||
Balance at Dec. 31, 2013 | 1,734,323 | $ 17 | 1,508,655 | 456,205 | (230,554) | ||
Balance (in shares) at Dec. 31, 2013 | 10 | 168,320 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | 271 | 6,388 | (6,117) | ||||
Redemptions of common stock | $ (36,294) | (36,294) | |||||
Redemptions of common stock (in shares) | (1,600) | (4,002) | |||||
Sale of noncontrolling interest | $ 14,166 | (842) | 15,008 | ||||
Contributions by noncontrolling interests | 111,187 | 111,187 | |||||
Amortization of stock-based compensation | 790 | 790 | |||||
Distributions: | |||||||
Common stock - regular for the years ended December 31, 2015, 2014, 2013 respectively: $0.30, $0.34, $0.35 | (56,672) | (56,672) | |||||
Noncontrolling interests | (48,041) | (48,041) | |||||
Preferred stock | (7) | (7) | |||||
Stock issued pursuant to distribution reinvestment plan, net | 20,490 | 20,490 | |||||
Stock issued pursuant to distribution reinvestment plan, net (in shares) | 2,150 | ||||||
Balance at Dec. 31, 2014 | 1,740,213 | $ 17 | 1,492,799 | 540,747 | (293,350) | ||
Balance (in shares) at Dec. 31, 2014 | 10 | 166,468 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | 66,683 | (7,112) | 73,795 | ||||
Acquisition of noncontrolling interests | (119,792) | (59,152) | (60,640) | ||||
Contributions by noncontrolling interests | 37,330 | 37,330 | |||||
Amortization of stock-based compensation | 3,072 | 3,072 | |||||
Distributions: | |||||||
Common stock - regular for the years ended December 31, 2015, 2014, 2013 respectively: $0.30, $0.34, $0.35 | (49,961) | (49,961) | |||||
Noncontrolling interests | (48,492) | (48,492) | |||||
Preferred stock | (7) | (7) | |||||
Issuance of preferred stock (in shares) | 144 | ||||||
Issuance of common and restricted shares, net | (465) | (465) | |||||
Balance at Dec. 31, 2015 | $ 1,628,581 | $ 17 | $ 1,436,254 | $ 461,833 | $ (269,523) | ||
Balance (in shares) at Dec. 31, 2015 | 10 | 166,612 |
Consolidated Statements of Equ6
Consolidated Statements of Equity (Parenthetical) - $ / shares | Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock - regular, dividends, cash paid (in dollars per share) | $ 0.35 | $ 0.30 | $ 0.34 | $ 0.35 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities | |||
Net income (loss) | $ 66,683 | $ 271 | $ 32,589 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Gains on sales of real estate | (82,975) | (16,411) | (50,779) |
Loss on early extinguishment of debt | 0 | 230 | 0 |
Impairment related to development | 3,128 | 0 | 0 |
Equity in income of investments in unconsolidated real estate joint ventures | (250) | (770) | (1,311) |
Distributions received from investment in unconsolidated real estate joint ventures | 242 | 300 | 460 |
Depreciation | 99,234 | 89,113 | 85,054 |
Amortization of deferred financing costs and debt premium/discount | 2,298 | (1,462) | (1,618) |
Amortization of intangibles | 3,420 | 4,185 | 2,394 |
Amortization of deferred revenues, primarily lease revenues, net | (1,464) | 2,728 | (1,480) |
Amortization of stock-based compensation | 3,072 | 790 | 0 |
Other, net | (68) | 366 | 663 |
Changes in operating assets and liabilities: | |||
Accounts payable and other liabilities | 6,270 | (3,200) | 10,992 |
Other assets, net | 3,006 | (8,420) | (305) |
Cash provided by operating activities | 102,596 | 67,720 | 76,659 |
Cash flows from investing activities | |||
Acquisitions of real estate, including construction in progress of $48.2 million for the year ended December 31, 2015 | (213,477) | 0 | (108,014) |
Additions to existing real estate | (9,697) | (6,242) | (6,934) |
Construction in progress, including land | (329,060) | (474,260) | (325,964) |
Proceeds from sales of real estate, net | 250,311 | 33,379 | 205,336 |
Investments in unconsolidated real estate joint ventures | 0 | 0 | (4,810) |
Acquisition of a controlling interest, net of cash acquired of $0.6 million for the year ended December 31, 2013 | 0 | 0 | (8,643) |
Acquisitions of noncontrolling interests | (121,559) | (6,150) | (49,036) |
Sale of noncontrolling interest | 0 | 0 | 7,272 |
Advances on notes receivable | (9,877) | (6,012) | (31,078) |
Collections on notes receivable | 37,092 | 219 | 18,618 |
Escrow deposits | 246 | 4,688 | (2,842) |
Other, net | (745) | (25) | (544) |
Cash used in investing activities | (396,766) | (454,403) | (306,639) |
Cash flows from financing activities | |||
Mortgage and notes payable proceeds | 372,184 | 208,686 | 128,664 |
Mortgage and notes payable principal payments | (84,733) | (38,820) | (75,314) |
Proceeds from credit facilities | 342,000 | 0 | 0 |
Credit facilities payments | (306,371) | 0 | 0 |
Contributions from noncontrolling interests | 37,330 | 126,916 | 153,496 |
Distributions paid on common stock | (49,951) | (28,718) | (27,983) |
Distributions paid to noncontrolling interests | (48,497) | (48,041) | (51,303) |
Dividends paid on preferred stock | (7) | (7) | (3) |
Redemptions of common stock | 0 | (36,294) | (22,936) |
Other, net | (465) | 0 | (5,917) |
Cash provided by financing activities | 261,490 | 183,722 | 98,704 |
Net change in cash and cash equivalents | (32,680) | (202,961) | (131,276) |
Cash and cash equivalents at beginning of period | 116,407 | 319,368 | 450,644 |
Cash and cash equivalents at end of period | $ 83,727 | $ 116,407 | $ 319,368 |
Consolidated Statements of Cas8
Consolidated Statements of Cash Flows (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2013USD ($) | |
Statement of Cash Flows [Abstract] | |
Cash acquired from acquisition | $ 0.6 |
Organization and Business
Organization and Business | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business | Organization and Business Organization Monogram Residential Trust, Inc. (which, together with its subsidiaries as the context requires, may be referred to as the “Company,” “we,” “us,” or “our”) was organized in Maryland on August 4, 2006. We are a fully integrated self-managed real estate investment trust (“REIT”) that invests in, develops and operates high quality multifamily communities offering location and lifestyle amenities. We invest in stabilized operating communities and communities in various phases of development, with a focus on communities in select markets across the United States. These include luxury high-rise, mid-rise, and garden style multifamily communities. Our targeted communities include existing “core” communities, which we define as communities that are already stabilized and producing rental income, as well as communities in various phases of development, redevelopment, lease up or repositioning with the intent to transition those communities to core communities. Further, we may invest in other real estate-related securities, including mortgage, bridge, mezzanine or other loans, or in entities that make investments similar to the foregoing. We completed our first investment in April 2007. Since June 30, 2014, we have operated as a self-managed REIT, transitioning from an externally managed REIT pursuant to agreements (the “Self-Management Transition Agreements”) entered into with our prior sponsor and its affiliates, collectively referred to as “Behringer.” Our shares of common stock have traded on the New York Stock Exchange (the “NYSE”) under the ticker symbol “MORE” since November 21, 2014. We invest in multifamily communities that may be wholly owned by us or held through joint venture arrangements with third-party institutional or other national or regional real estate developers/owners which we define as “Co-Investment Ventures” or “CO-JVs.” These are predominately equity investments but may also include debt investments. If a Co-Investment Venture makes an equity or debt investment in a separate entity with additional third parties, we refer to such a separate entity as a “Property Entity” and when applicable may name the multifamily community related to the Property Entity or CO-JV. As of December 31, 2015 , we have equity and debt investments in 56 multifamily communities, of which 40 are stabilized operating multifamily communities and 16 are in various stages of lease up, pre-development or construction. Of the 56 multifamily communities, we wholly own 13 multifamily communities and four debt investments for a total of 17 wholly owned investments. The remaining 39 investments are held through Co-Investment Ventures, all of which are consolidated. As of December 31, 2015 , we are the managing member for each of the separate Co-Investment Ventures. Our two largest Co-Investment Venture partners are Stichting Depositary PGGM Private Real Estate Fund, a Dutch foundation acting in its capacity as depositary of and for the account and risk of PGGM Private Real Estate Fund and its affiliates, a real estate investment vehicle for Dutch pension funds (“PGGM” or the “PGGM Co-Investment Partner”), and Milky Way Partners, L.P. (the “MW Co-Investment Partner”), the primary partner of which is Korea Exchange Bank, as Trustee for and on behalf of National Pension Service (acting for and on behalf of the National Pension Fund of the Republic of Korea Government) (“NPS”). Our other Co-Investment Venture partners include national or regional real estate developers/owners (“Developer Partners.”) When applicable, we refer to individual investments by referencing the individual Co-Investment Venture partner or the underlying multifamily community. We refer to our Co-Investment Ventures with the PGGM Co-Investment Partner as “PGGM CO-JVs,” those with the MW Co-Investment Partner as “MW CO-JVs,” and those with Developer Partners as “Developer CO-JVs.” Certain PGGM CO-JVs that also include Developer Partners are referred to as PGGM CO-JVs. We are the 1% general partner of Monogram Residential Master Partnership I LP (the “Master Partnership” or the PGGM Co-Investment Partner), and PGGM is the 99% limited partner. We are generally a 55% owner with control of day-to-day management operations, and the Master Partnership is generally a 45% owner in the property owning CO-JVs, all of which are consolidated. The table below presents a summary of our Co-Investment Ventures as of December 31, 2015 and 2014 . The effective ownership ranges are based on our participation in the distributable operating cash from our investment in the underlying multifamily community as of the dates indicated. This effective ownership is indicative of, but may differ from, percentages for distributions, contributions or financing requirements for each respective Co-Investment Venture. Unless otherwise noted, all are reported on the consolidated basis of accounting. December 31, 2015 December 31, 2014 Co-Investment Structure Number of Multifamily Communities Our Effective Ownership Number of Multifamily Communities Our Effective Ownership PGGM CO-JVs (a) 23 50% to 70% 30 50% to 74% MW CO-JVs 14 55% 14 55% Developer CO-JVs 2 100% 2 100% Total 39 46 (a) Includes one unconsolidated investment as of December 31, 2014 , which included a debt investment that was repaid in 2015. In May 2015, we also acquired PGGM’s interests in seven PGGM CO-JVs. See Note 11, “Noncontrolling Interests” for further information. As of December 31, 2015 and 2014 , the PGGM CO-JVs include Developer Partners in 18 and 19 multifamily communities, respectively. We have elected to be taxed, and currently qualify, as a REIT for federal income tax purposes. As a REIT, we generally are not subject to corporate-level income taxes. To maintain our REIT status, we are required, among other requirements, to distribute annually at least 90% of our “REIT taxable income,” as defined by the Internal Revenue Code of 1986, as amended (the “Code”), to our stockholders. If we fail to qualify as a REIT in any taxable year, we would be subject to federal income tax on our taxable income at regular corporate tax rates. As of December 31, 2015 , we believe we are in compliance with all applicable REIT requirements. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements include our consolidated accounts and the accounts of our wholly owned subsidiaries. We also consolidate other entities in which we have a controlling financial interest or other entities (referred to as variable interest entities or “VIEs”) where we are determined to be the primary beneficiary. VIEs, as defined by U.S. generally accepted accounting principles (“GAAP”), are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. The primary beneficiary is required to consolidate a VIE for financial reporting purposes. The determination of the primary beneficiary requires management to make significant estimates and judgments about our rights, obligations and economic interests in such entities as well as the same of the other owners. See Note 6, “Variable Interest Entities” for further information about our VIEs. For entities in which we have less than a controlling financial interest or entities with respect to which we are not deemed to be the primary beneficiary, the entities are accounted for using the equity method of accounting. Accordingly, our share of the net earnings or losses of these entities is included in consolidated net income. See Note 7, “Other Assets” for further information on our unconsolidated investment. All inter-company accounts and transactions have been eliminated in consolidation. Real Estate and Other Related Intangibles Acquisitions For real estate properties acquired by us or our Co-Investment Ventures classified as business combinations, we determine the purchase price, after adjusting for contingent consideration and settlement of any pre-existing relationships. We record the acquired assets and liabilities based on their fair values, including tangible assets (consisting of land, any associated rights, buildings and improvements), identified intangible assets and liabilities, asset retirement obligations, assumed debt, other liabilities and noncontrolling interests. Identified intangible assets and liabilities primarily consist of the fair value of in-place leases and contractual rights. Goodwill is recognized as of the acquisition date and measured as the aggregate fair value of the consideration transferred and any noncontrolling interest in the acquiree over the fair value of identifiable net assets acquired. Likewise, a bargain purchase gain is recognized in current earnings when the aggregate fair value of the consideration transferred and any noncontrolling interest in the acquiree are less than the fair value of the identifiable net assets acquired. The fair value of any tangible real estate assets acquired is determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to land, buildings and improvements. Land values are derived from appraisals, and building values are calculated as replacement cost less depreciation or estimates of the relative fair value of these assets using net operating income capitalization rates, discounted cash flow analyses or similar methods. When we acquire rights to use land or improvements through contractual rights rather than fee simple interests, we determine the value of the use of these assets based on the relative fair value of the assets after considering the contractual rights and the fair value of similar assets. Assets acquired under these contractual rights are classified as intangibles and amortized on a straight-line basis over the shorter of the contractual term or the estimated useful life of the asset. Contractual rights related to land or air rights that are substantively separated from depreciating assets are amortized over the life of the contractual term or, if no term is provided, are classified as indefinite-lived intangibles. Intangible assets are evaluated at each reporting period to determine whether the indefinite and finite useful lives are appropriate. We determine in-place lease values based on our evaluation of the specific characteristics of each tenant’s lease and our overall relationship with that respective tenant by applying a fair value model. The estimates of fair value of in-place leases include an estimate of carrying costs during the expected lease up periods for the respective leasable area considering current market conditions. In estimating fair value of in-place leases, we consider items such as real estate taxes, insurance, leasing commissions, tenant improvements and other operating expenses to execute similar deals as well as projected rental revenue and carrying costs during the expected lease up period. We amortize the value of in-place leases acquired to expense over the remaining term of the leases. The in-place leases are amortized over the remaining term of the in-place leases, approximately a six month term for multifamily in-place leases and terms ranging from three to 20 years for retail in-place leases. We determine the value of above-market and below-market in-place leases for acquired properties based on the present value (using an interest rate that reflects the risks associated with the leases acquired) of the difference between (1) the contractual amounts to be paid pursuant to the in-place leases and (2) estimates of current market lease rates for the corresponding in-place leases, measured over a period equal to (i) the remaining non-cancelable lease term for above-market leases, or (ii) the remaining non-cancelable lease term plus any fixed rate renewal options for below-market leases. We record the fair value of above-market and below-market leases as intangible assets or intangible liabilities, respectively, and amortize them as an adjustment to rental income over the above determined lease term. Given the short-term nature of multifamily leases, the value of above-market or below-market in-place leases are generally not material. We determine the value of other contractual rights based on our evaluation of the specific characteristics of the underlying contracts and by applying a fair value model to the projected cash flows or usage rights that considers the timing and risks associated with the cash flows or usage. We amortize the value of finite contractual rights over the remaining contract period. Indefinite-lived contractual rights are not amortized but are evaluated for impairment. We determine the fair value of assumed debt by calculating the net present value of the scheduled debt service payments using interest rates for debt with similar terms and remaining maturities that management believes we could obtain. Any difference between the fair value and stated value of the assumed debt is recorded as a discount or premium and amortized over the remaining life of the loan. Initial valuations are subject to change until our information is finalized, which is no later than 12 months from the acquisition date. We have had no significant valuation changes for acquisitions prior to December 31, 2015 . Developments We capitalize project costs related to the development and construction of real estate (including interest, real estate taxes, insurance, and other direct costs associated with the development) as a cost of the development. Indirect project costs not clearly related to development and construction are expensed as incurred. Indirect project costs that clearly relate to development and construction are capitalized and allocated to the developments to which they relate. For each development, capitalization begins when we determine that the development is probable and significant development activities are underway. We suspend capitalization at such time as significant development activity ceases, but future development is still probable. We cease capitalization when the developments or other improvements, including any portion, are completed and ready for their intended use, or if the intended use changes such that capitalization is no longer appropriate. Developments or improvements are generally considered ready for intended use when the certificates of occupancy have been issued and the units become ready for occupancy. Depreciation Buildings are depreciated over their estimated useful lives ranging from 25 to 35 years using the straight-line method. Improvements are depreciated over their estimated useful lives ranging from 3 to 15 years using the straight-line method. Properties classified as held for sale are not depreciated. Depreciation of developments begins when the development is substantially completed and ready for its intended use. Repairs and Maintenance Expenditures for ordinary repairs and maintenance costs are charged to expense as incurred. Investment in Unconsolidated Real Estate Joint Venture We and our Co-Investment Ventures account for investments in unconsolidated real estate joint ventures using the equity method of accounting because we exercise significant influence over, but do not control, these entities. These investments are initially recorded at cost, including any acquisition costs, and are adjusted for our share of equity in earnings and distributions. We report our share of income and losses based on our economic interests in the entities. We amortize any excess of the carrying value of our investments in joint ventures over the book value of the underlying equity over the estimated useful lives of the underlying operating property, which represents the assets to which the excess is most clearly related. When we or our Co-Investment Ventures acquire a controlling interest in a previously noncontrolled investment, a gain or loss on revaluation of equity is recognized for the differences between the investment’s carrying value and fair value. Impairment of Real Estate Related Assets and Investments in Unconsolidated Real Estate Joint Ventures If events or circumstances indicate that the carrying amount of the property may not be recoverable, we make an assessment of the property’s recoverability by comparing the carrying amount of the asset to our estimate of the undiscounted future operating cash flows expected to be generated over the holding period of the asset including its eventual disposition. If the carrying amount exceeds the aggregate undiscounted future operating cash flows, we recognize an impairment loss to the extent the carrying amount exceeds the estimated fair value of the property. In addition, we evaluate indefinite-lived intangible assets for possible impairment at least annually by comparing the fair values with the carrying values. The fair value of intangibles is generally estimated by valuation of similar assets. For real estate we own through an investment in an unconsolidated real estate joint venture or other similar real estate investment structure, at each reporting date we compare the estimated fair value of our real estate investment to the carrying value. An impairment charge is recorded to the extent the fair value of our real estate investment is less than the carrying amount and the decline in value is determined to be other than a temporary decline. We recorded an impairment loss for the year ended December 31, 2015 related to one of our developments. See Note 5, “Real Estate Investments” for more information. We did not record any impairment losses for the years ended December 31, 2014 or 2013 . Assets Held for Sale and Discontinued Operations Prior to January 1, 2014, when we had no involvement after the sale of a multifamily community, the multifamily community sold was reported as a discontinued operation. Effective as of January 1, 2014, we elected to early adopt the revised guidance regarding discontinued operations. For sales of real estate or assets classified as held for sale after January 1, 2014, we evaluate whether the disposition will have a major effect on our operations and financial results and will therefore qualify as a strategic shift. If the disposition represents a strategic shift, it will be classified as discontinued operations in our consolidated statements of operations for all periods presented. If the disposition does not represent a strategic shift, it will be presented in continuing operations in our consolidated statements of operations. We classify multifamily communities as held for sale when certain criteria are met, in accordance with GAAP. At that time, we present the assets and obligations associated with the real estate held for sale separately in our consolidated balance sheet, and we cease recording depreciation and amortization expense related to that multifamily community. Real estate held for sale is reported at the lower of its carrying amount or its estimated fair value less estimated costs to sell. Cash and Cash Equivalents We consider investments in bank deposits, money market funds and highly-liquid cash investments with original maturities of three months or less to be cash equivalents. As of December 31, 2015 and 2014 , cash and cash equivalents include $32.5 million and $42.0 million , respectively, held by the Master Partnership and individual Co-Investment Ventures that are available only for use in the business of the Master Partnership and the other individual Co-Investment Ventures. Cash held by the Master Partnership and individual Co-Investment Ventures is not restricted to specific uses within those entities. However, the terms of the joint venture agreements define the timing and magnitude of the distribution of those funds to us or limit our use of them for our general corporate purposes. Cash held by the Master Partnership and individual Co-Investment Ventures is distributed from time to time to the Company and to the other Co-Investment Venture partners in accordance with the applicable Co-Investment Venture governing agreement, which may not be the same as the stated effective ownership interest. Cash distributions received by the Company from the Master Partnership and individual Co-Investment Ventures are then available for our general corporate purposes. Noncontrolling Interests Redeemable noncontrolling interests are comprised of our consolidated Co-Investment Venture partners’ interests in multifamily communities where we believe it is probable that we will be required to purchase the partner’s noncontrolling interest. We record obligations under the redeemable noncontrolling interest initially at the higher of (a) fair value or (b) the redemption value with subsequent adjustments. The redeemable noncontrolling interests are temporary equity not within our control and are presented in our consolidated balance sheet outside of permanent equity between debt and equity. The determination of the redeemable classification requires analysis of contractual provisions and judgments of redemption probabilities. Non-redeemable noncontrolling interests are comprised of our consolidated Co-Investment Venture partners’ interests in multifamily communities as well as preferred cumulative, non-voting membership units (“Preferred Units”) issued by subsidiary REITs. We record these noncontrolling interests at their initial fair value, adjusting the basis prospectively for their share of the respective consolidated investments’ net income or loss or equity contributions and distributions. These noncontrolling interests are not redeemable by the equity holders and are presented as part of permanent equity. Income and losses are allocated to the noncontrolling interest holder based on its economic interests. Transactions involving a partial sale or acquisition of a noncontrolling interest that does not result in a change of control are recorded at carrying value with no recognition of gain or loss. Any differences between the cash received or paid (net of any direct expenses) and the change in noncontrolling interest is recorded as a direct charge to additional paid-in capital. Transactions involving a partial sale or acquisition of a controlling interest resulting in a change in control are recorded at fair value with recognition of a gain or loss. Other Assets Other assets primarily include notes receivable, deferred financing costs, equity method investments, accounts receivable, restricted cash, interest rate caps, prepaid assets and deposits. We evaluate whether notes receivable are loans, investments in joint ventures or acquisitions of real estate based on a review of any rights to participate in expected residual profits and other equity and loan characteristics. Deferred financing costs are recorded at cost and are amortized using a straight-line method that approximates the effective interest method over the life of the related debt. As of and for the years ended December 31, 2015 and 2014 , all of our notes receivable were appropriately accounted for as loans. We account for our derivative financial instruments, all of which are interest rate caps, at fair value. We use interest rate cap arrangements to manage our exposure to interest rate changes. We have not designated any of these derivatives as hedges for accounting purposes, and accordingly, changes in fair value are recognized in earnings. Revenue Recognition Rental income related to leases is recognized on an accrual basis when due from residents or commercial tenants, generally on a monthly basis. Rental revenues for leases with uneven payments and terms greater than one year are recognized on a straight-line basis over the term of the lease. Any deferred revenue is classified as a liability on the consolidated balance sheet and recognized on a straight-line basis as income over its contractual term. Interest income is generated primarily on notes receivable and cash balances. Interest income is recorded on an accrual basis as earned. Acquisition Costs Non-reimbursed acquisition costs for business combinations, which are expected to include most consolidated property acquisitions other than land acquisitions, are expensed when it is probable that the transaction will be accounted for as a business combination and the purchase will be consummated. Our acquisition costs related to investments in unconsolidated real estate joint ventures are capitalized as a part of our basis in the investment. Acquisition costs related to unimproved or non-operating land, primarily related to developments, are capitalized. Through June 30, 2014, pursuant to our advisory management agreement, Behringer was obligated to reimburse us for all investment-related expenses that the Company pursued but ultimately did not consummate. During the period, prior to the determination of its status, amounts incurred were recorded in other assets. Acquisition expenses are recorded net of any reimbursements when probable of recovery. Transition Expenses Transition expenses include expenses directly and specifically related to our transition to self-management, primarily including legal, financial advisors, consultants, costs of the Company’s special committee of the board of directors (the “Special Committee”), general transition services (primarily related to staffing, name change, notices, transition-related insurance, information technology and facilities), expenses related to our listing on the NYSE and payments to Behringer in connection with the transition to self-management discussed further in Note 13, “Transition Expenses.” Income Taxes We have elected to be taxed as a REIT under the Code and have qualified as a REIT since the year ended December 31, 2007. To qualify as a REIT, we must meet a number of organizational and operational requirements, including a requirement that we distribute at least 90% of our REIT taxable income to our stockholders. As a REIT, we generally will not be subject to federal income tax at the corporate level. We intend to operate in such a manner as to continue to qualify for taxation as a REIT, but no assurance can be given that we will operate in a manner so as to remain qualified as a REIT. Beginning in 2013, taxable income from certain non-REIT activities is managed through a taxable REIT subsidiary (“TRS”) and is subject to applicable federal, state, and local income and margin taxes. We have no significant taxes associated with our TRS for the years ended December 31, 2015 , 2014 or 2013 . We have evaluated the current and deferred income tax related to state taxes with respect to which we do not have a REIT exemption, and we have no significant tax liability or benefit as of December 31, 2015 or 2014 . The carrying amounts of our assets and liabilities for financial statement purposes differ from our basis for federal income taxes due to tax accounting in Co-Investment Ventures, fair value accounting for business combinations, straight lining of lease and related agreements and differing depreciation methods. The primary asset and liability balance sheet accounts with differences are real estate, intangibles, other assets, mortgages and notes payable and deferred revenues, primarily lease revenues, net. As a result of these differences, our net federal income tax basis exceeds the carrying value for financial statement purposes as of December 31, 2015 by approximately $19.5 million . We recognize the financial statement benefit of an uncertain tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. As of December 31, 2015 and 2014 , we had no significant uncertain tax positions. Concentration of Credit Risk We invest our cash and cash equivalents among several banking institutions and money market accounts in an attempt to minimize exposure to any one of these entities. As of December 31, 2015 and 2014 , we had cash and cash equivalents deposited in certain financial institutions in excess of federally-insured levels. We regularly monitor the financial condition of these financial institutions and believe that we are not exposed to any significant credit risk in cash and cash equivalents. Share-based Compensation We have a stock-based incentive award plan for our employees and directors. Compensation expense associated with restricted stock units is recognized in general and administrative expenses in our consolidated statements of operations. We measure stock-based compensation at the estimated fair value on the grant date, net of estimated forfeitures, and recognize the amortization of compensation expense over the requisite service period. Earnings per Share Basic earnings per share is calculated by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by adjusting basic earnings per share for the dilutive effect of the assumed exercise of securities, including the effect of shares issuable under our preferred stock and our stock-based incentive plans. Our unvested share-based awards are considered participating securities and are reflected in the calculation of diluted earnings per share. During periods of net loss, the assumed exercise of securities is anti-dilutive and is not included in the calculation of earnings per share. During 2015, the dilutive impact was less than $0.01, and during 2014, any common stock equivalents were anti-dilutive. There were no common stock equivalents during 2013. For all periods presented, the convertible preferred stock was excluded from the calculation of earnings per share because the effect would not be dilutive. However, based on changing market conditions, the outstanding convertible preferred stock could be dilutive in future periods. Redemptions of Common Stock We account for the possible redemption of our shares by classifying securities that are convertible for cash at the option of the holder outside of equity. We do not reclassify the shares to be redeemed from equity to a liability until such time as the redemption has been formally approved by our board of directors. The portion of the redeemed common stock in excess of the par value is charged to additional paid-in capital. Reportable Segments Our current business primarily consists of investing in and operating multifamily communities. Substantially all of our consolidated net income (loss) is from investments in real estate properties that we wholly own or own through Co-Investment Ventures, the latter of which may be accounted for under the equity method of accounting. Our management evaluates operating performance on an individual investment level. However, as each of our investments has similar economic characteristics in our consolidated financial statements, the Company is managed on an enterprise-wide basis with one reportable segment. Use of Estimates in the Preparation of Financial Statements The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts included in the financial statements and accompanying notes to consolidated financial statements. These estimates include such items as: the purchase price allocations for real estate and other acquisitions; impairment of long-lived assets, notes receivable and equity-method real estate investments; fair value evaluations; earning recognition of noncontrolling interests and equity in earnings of investments in unconsolidated real estate joint ventures; depreciation and amortization; share-based compensation measurements; and recognition and timing of transition expenses. Actual results could differ from those estimates. Reclassifications Certain financial information on the Consolidated Statements of Operations for the years ended December 31, 2014 and 2013 have been revised to conform to the current year presentation. For the years ended December 31, 2014 and 2013 , $2.5 million and $1.8 million , respectively, of amortization of deferred financing costs previously reported in depreciation and amortization are now included in a separate line item. |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued updated guidance with respect to revenue recognition. The revised guidance outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The revised guidance will replace most existing revenue and real estate sale recognition guidance in GAAP when it becomes effective. The standard specifically excludes lease contracts, which is our primary recurring revenue source. The revised guidance allows for the use of either the full or modified retrospective transition method. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2017. Early adoption is permitted for annual periods beginning after December 15, 2016. We have not yet selected a transition method and are currently evaluating the effect that the adoption of the revised guidance will have on our consolidated financial statements and related disclosures. In June 2014, the FASB issued an update which clarifies that entities should treat performance targets that can be met after the requisite service period of a share-based payment award as performance conditions that affect vesting. The compensation expense related to such awards will be delayed until it becomes probable that the performance target will be met. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2015, with early adoption permitted, and may be applied either prospectively or retrospectively. The adoption of this guidance will not have a material impact on our consolidated financial statements. In August 2014, the FASB issued guidance regarding management’s responsibility in evaluating whether there is a substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2016. We do not believe the adoption of this guidance will have a material impact on our disclosures. In January 2015, the FASB issued guidance simplifying income statement presentation by eliminating the concept of extraordinary items. An entity will no longer be allowed to separately disclose extraordinary items, net of tax, in the income statement after income from continuing operations if an event or transaction is unusual in nature and occurs infrequently. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2015, with early adoption permitted and may be applied either prospectively or retrospectively. The adoption of this guidance will not have a material impact on our consolidated financial statements. In February 2015, the FASB issued updated guidance related to accounting for consolidation of certain legal entities. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2015, with early adoption permitted. The adoption of this guidance will not have a material impact on our financial statements, but additional disclosures will be required related to certain of our entities that were determined to be a VIE. In April 2015, the FASB issued guidance requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This guidance is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption of this guidance is permitted for financial statements that have not been previously issued, and an entity should apply the new guidance on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. The adoption of this guidance will change the classification of debt issuance costs on the consolidated balance sheet but will not otherwise impact our consolidated financial statements. |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations In September 2015, we acquired Ev, a 208 -unit multifamily community located in San Diego, California, from an unaffiliated seller, for an aggregate gross purchase price of $84.0 million , excluding closing costs. Ev was a recently completed development in lease up at the date of acquisition. In September 2015, we acquired The Mark, a 208 -unit multifamily community located in Boca Raton, Florida, from an unaffiliated seller, for an aggregate gross purchase price of $81.7 million , excluding closing costs. The Mark was a recently completed development in lease up at the date of acquisition. The following tables present certain additional information regarding our 2015 business combinations. There were no business combinations during the year ended December 31, 2014 . The amounts recognized for major assets acquired and liabilities assumed, including a reconciliation to cash consideration as of the business combination dates, are as follows (in millions): 2015 Acquisitions Land $ 23.9 Building and improvements 141.7 Accrued liabilities (0.4 ) Cash consideration $ 165.2 Certain operating information for the periods from the business combination dates to December 31, 2015 is as follows (in millions): For the Periods to December 31, 2015 Rental revenues $ 1.4 Acquisition expenses 0.6 Depreciation and amortization 1.8 Net loss attributable to common stockholders (2.3 ) |
Real Estate Investments
Real Estate Investments | 12 Months Ended |
Dec. 31, 2015 | |
Real Estate [Abstract] | |
Real Estate Investments | Real Estate Investments Real Estate Investments and Intangibles and Related Depreciation and Amortization As of December 31, 2015 and 2014 , major components of our real estate investments and intangibles and related accumulated depreciation and amortization were as follows (in millions): December 31, 2015 December 31, 2014 Buildings Intangibles Buildings Intangibles and In-Place Other and In-Place Other Improvements Leases Contractual Improvements Leases Contractual Cost $ 2,627.7 $ 37.1 $ 24.2 $ 2,033.8 $ 40.7 $ 25.6 Less: accumulated depreciation and amortization (357.0 ) (34.9 ) (8.3 ) (280.4 ) (38.3 ) (6.5 ) Net $ 2,270.7 $ 2.2 $ 15.9 $ 1,753.4 $ 2.4 $ 19.1 Depreciation expense related to our real estate investments for the years ended December 31, 2015 , 2014 , and 2013 was approximately $98.8 million , $88.8 million , and $81.8 million , respectively. Cost of intangibles relates to the value of in-place leases and other contractual intangibles. Cost of other contractual intangibles as of both December 31, 2015 and 2014 , include $7.9 million and $9.2 million , respectively, of intangibles, primarily asset management and related fee revenue services. Cost of other contractual intangibles as of both December 31, 2015 and 2014 , also includes $6.8 million related to the use rights of a parking garage and site improvements and $9.5 million of indefinite-lived contractual rights related to land air rights. Amortization expense associated with our lease and other contractual intangibles for the years ended December 31, 2015 , 2014 , and 2013 was approximately $3.4 million , $4.2 million , and $2.5 million , respectively. Anticipated amortization associated with lease and other contractual intangibles for each of the following five years is as follows (in millions): Anticipated Amortization Year of Intangibles 2016 $ 1.1 2017 1.1 2018 0.5 2019 0.5 2020 0.5 Developments In December 2015, we acquired The Mile, a 120 -unit multifamily development located in Miami, Florida, from an unaffiliated seller, for an aggregate gross purchase price of $48.0 million , excluding closing costs. As of December 31, 2015 , the development was classified as construction in progress. For the years ended December 31, 2015 , 2014 , and 2013 , we capitalized the following amounts of interest, real estate taxes and direct overhead related to our developments (in millions): For the Year Ended 2015 2014 2013 Interest $ 16.5 $ 17.8 $ 10.5 Real estate taxes 4.1 4.2 2.4 Direct overhead 0.6 0.8 0.5 Sales of Real Estate Reported in Continuing Operations The following table presents our sale of real estate for the years ended December 31, 2015 and 2014 (in millions); there were no sales of real estate reported in continuing operations for the year ended December 31, 2013 : Date of Sale Multifamily Community and Location Sales Contract Price Net Cash Proceeds Gains on Sales of Real Estate For the Year Ended December 31, 2015 July 2015 Uptown Post Oak — Houston, TX $ 90.1 $ 88.3 $ 34.4 June 2015 Burnham Pointe — Chicago, IL 126.0 123.6 48.6 June 2015 Shady Grove — Rockville, MD (a) 38.5 38.4 — Total $ 254.6 $ 250.3 $ 83.0 For the Year Ended December 31, 2014 February 2014 Tupelo Alley — Portland, OR $ 52.9 $ 33.4 $ 16.4 (a) In May 2015, we recorded an impairment of $3.1 million based on the Company’s decision to sell the development at an amount below the carrying value. The impairment, which was primarily due to certain costs capitalized for GAAP not expected to be recovered in a sale, is included in “Investment and other development expenses” on the consolidated statement of operations. In June 2015, we closed on the sale of the development to a group led by the Developer Partner for net proceeds of $38.4 million , the development’s net carrying value at the date of sale. The following table presents net income related to the multifamily communities sold in 2015 and 2014 , for the years ended December 31, 2015 , 2014 and 2013 , and includes the gains on sale of real estate (in millions): For the Year Ended 2015 2014 2013 Net income (loss) from multifamily communities sold $ 83.5 $ 22.9 $ 5.7 Less: net income attributable to noncontrolling interest — (7.2 ) — Net income (loss) attributable to common stockholders $ 83.5 $ 15.7 $ 5.7 Discontinued Operations The following table presents our sales of real estate for the year ended December 31, 2013 (in millions), all of which are reported as discontinued operations: Date of Sale Multifamily Community and Location Sales Contract Price Net Cash Proceeds Gains on Sales of Real Estate For the Year Ended December 31, 2013 September 2013 Grand Reserve Orange — Orange, CT $ 35.3 $ 34.3 $ 12.8 June 2013 Halstead — Houston, TX 43.5 42.2 11.9 May 2013 Cyan/PDX (“Cyan”) — Portland, OR 95.8 95.5 19.2 March 2013 The Reserve at John’s Creek Walk — Johns Creek, GA 37.3 33.3 6.9 Total $ 211.9 $ 205.3 $ 50.8 The table below includes the major classes of line items constituting net loss from discontinued operations, gains on sale of real estate, and depreciation and amortization and capital expenditures for the year ended December 31, 2013 for the multifamily communities that have been classified as discontinued operations in the accompanying consolidated statement of operations (in millions): For the Year Ended December 31, 2013 Rental revenue $ 8.0 Expenses Property operating expenses 2.5 Real estate taxes 1.1 Interest expense 1.0 Depreciation and amortization 3.3 Total expenses 7.9 Loss on early extinguishment of debt (0.8 ) Loss from discontinued operations (0.7 ) Income attributable to noncontrolling interests (6.9 ) Loss from discontinued operations attributable to common stockholders $ (7.6 ) Gains on sales of real estate $ 50.8 Capital expenditures $ 0.2 Changes in operating and investing noncash items related to discontinued operations were not significant for the year ended December 31, 2013 . |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2015 | |
Variable Interest Entities | |
Variable Interest Entities | Variable Interest Entities As of December 31, 2015 and 2014 , we have concluded that we are the primary beneficiary of 15 VIEs. All of these VIEs are the Property Entities of PGGM CO-JVs or Developer CO-JVs created for the purpose of developing and operating multifamily communities. At the inception of each respective Property Entity, we had determined that none of the Co-Investment Ventures were VIEs and because we were the managing member (directly or indirectly) of each Co-Investment Venture and had control of their operations and business affairs, we consolidated each Co-Investment Venture. After separate reconsideration events from 2012 through the present, all of which were related to predetermined activities, we have concluded that all of these Co-Investment Ventures are now VIEs. Because these Co-Investment Ventures were previously consolidated, the VIE determination did not affect our financial position, financial operations or cash flows. Our ownership interest in each of the Co-Investment Ventures based upon contributed capital ranges from 55% to 100% . The significant amounts of assets and liabilities related to our consolidated VIEs are identified parenthetically on our accompanying consolidated balance sheets. Twelve VIEs, all of which are actively developing or operating multifamily communities, have closed aggregate construction financing of $577.9 million as of December 31, 2015 , which we expect to be substantially drawn on during the construction of the developments. As of December 31, 2015 , $485.4 million has been drawn under these construction loans. For ten of these construction loans, we have provided partial payment guarantees ranging from 10% to 25% of the total construction loan. The total commitment of these ten construction loans is $528.1 million , of which $435.6 million is outstanding as of December 31, 2015 . Each guarantee may terminate or be reduced upon completion of the development or if the development achieves certain operating results. On the other two construction loans, the lenders have no recourse to us other than a guaranty provided by the Company with respect to the construction of the project (a completion guaranty). The construction loans are secured by a first mortgage in each multifamily community. See Note 9, “Mortgages and Notes Payable” for further information on our construction loans. The total assets of the VIEs are $1,089.9 million and $906.9 million as of December 31, 2015 and 2014 , respectively, $126.1 million and $582.3 million of which is reflected in construction in progress, respectively. The total net operating real estate of the VIEs is $943.1 million and $282.1 million as of December 31, 2015 and 2014 , respectively. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2015 | |
Other Assets [Abstract] | |
Other Assets | Other Assets The components of other assets as of December 31, 2015 and 2014 are as follows (in millions): December 31, 2015 December 31, 2014 Notes receivable, net (a) $ 36.5 $ 59.8 Deferred financing costs, net 15.2 17.4 Resident, tenant and other receivables 12.2 14.0 Escrows and restricted cash 8.7 8.0 Prepaid assets, deposits and other assets 7.6 6.1 Investment in unconsolidated real estate joint venture (b) — 5.0 Total other assets $ 80.2 $ 110.3 (a) Notes receivable include mezzanine loans, primarily related to multifamily development projects. As of December 31, 2015 , the weighted average interest rate is 15.0% and the remaining years to scheduled maturity is 0.9 years. The borrowers generally have options to prepay prior to maturity or to extend the maturity for one to two years. (b) As of December 31, 2014 , we had a $5.0 million investment in an unconsolidated joint venture, the Custer PGGM CO-JV. The primary asset of the Custer PGGM CO-JV was a mezzanine loan collateralized by the development of a 444 unit multifamily community in Allen, Texas, a suburb of Dallas. The mezzanine loan was repaid during May 2015. |
Leasing Activity
Leasing Activity | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Leasing Activity | Leasing Activity In addition to multifamily resident units, certain of our consolidated multifamily communities have retail areas, representing approximately 1% of total rentable area of our consolidated multifamily communities. Future minimum base rental receipts due to us under these non-cancelable retail leases in effect as of December 31, 2015 are as follows (in millions): Future Minimum Year Lease Receipts 2016 $ 3.5 2017 3.6 2018 3.5 2019 3.4 2020 3.3 Thereafter 22.7 Total $ 40.0 |
Mortgages and Notes Payable
Mortgages and Notes Payable | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Mortgages and Notes Payable | Mortgages and Notes Payable The following table summarizes the carrying amounts of the mortgages and notes payable classified by whether the obligation is ours or that of the applicable consolidated Co-Investment Venture as of December 31, 2015 and 2014 (dollar amounts in millions and monthly LIBOR at December 31, 2015 is 0.43% ): As of December 31, 2015 December 31, December 31, Weighted Average 2015 2014 Interest Rates Maturity Dates Company level (a) Fixed rate mortgages payable $ 297.3 $ 87.2 3.88% 2018 to 2020 Total Company level 297.3 87.2 Co-Investment Venture level - consolidated (b) Fixed rate mortgages payable 631.6 827.7 3.49% 2016 to 2020 Variable rate mortgage payable 11.6 12.0 Monthly LIBOR + 2.35% 2017 Fixed Rate construction loans payable (c) Operating 29.2 29.0 4.31% 2016 (e) In Construction 44.5 28.0 4.00% 2018 Variable rate construction loans payable (d) Operating 355.3 87.3 Monthly LIBOR + 2.12% 2016 to 2018 In Construction 101.0 111.0 Monthly LIBOR + 2.02% 2017 to 2018 1,173.2 1,095.0 Plus: unamortized adjustments from business combinations 2.5 4.3 Total Co-Investment Venture level - consolidated 1,175.7 1,099.3 Total consolidated mortgages and notes payable $ 1,473.0 $ 1,186.5 (a) Company level debt is defined as debt that is a direct obligation of the Company or one of the Company’s wholly owned subsidiaries. (b) Co-Investment Venture level debt is defined as debt that is an obligation of the Co-Investment Venture and not an obligation or contingency for us. (c) Includes two loans with total commitments of $82.7 million . One of the construction loans has an option to convert into a permanent loan with a maturity of 2023 and the other includes a one to two year extension option. As of December 31, 2015 , there is $8.9 million remaining to draw under the construction loans. We may elect not to fully draw down any unfunded commitment. (d) Includes eleven loans with total commitments of $548.7 million . As of December 31, 2015 , the Company has partially guaranteed ten of these loans with total commitments of $528.1 million , and as of December 31, 2015 , $82.8 million is recourse to the Company. Our percentage guarantee on each of these loans ranges from 10% to 25% . These loans include one to two year extension options. As of December 31, 2015 , there is $92.5 million remaining to draw under the construction loans. We may elect not to fully draw down any unfunded commitment. (e) Construction loan has an extension right to convert the loan to a permanent loan and extend the maturity to 2023. As of December 31, 2015 , $2.5 billion of the net consolidated carrying value of real estate collateralized the mortgages and notes payable. We believe we are in compliance with all financial covenants as of December 31, 2015 . As of December 31, 2015 , contractual principal payments for our mortgages and notes payable for the five subsequent years and thereafter are as follows (in millions): Co-Investment Total Year Company Level Venture Level Consolidated 2016 $ 4.7 $ 181.3 $ 186.0 2017 5.8 298.2 304.0 2018 153.4 381.3 534.7 2019 79.5 141.0 220.5 2020 53.9 171.4 225.3 Thereafter — — — Total $ 297.3 $ 1,173.2 1,470.5 Add: unamortized adjustments from business combinations 2.5 Total mortgages and notes payable $ 1,473.0 |
Credit Facility Payable
Credit Facility Payable | 12 Months Ended |
Dec. 31, 2015 | |
Line of Credit Facility [Abstract] | |
Credit Facility Payable | Credit Facilities Payable We have two credit facilities as of December 31, 2015 : a $150 million credit facility (the “$150 Million Facility”) and a $200 million revolving credit facility (the $200 Million Facility”). The following table presents the amounts outstanding under the two credit facilities as of December 31, 2015 and 2014 (dollar amounts in millions, and monthly LIBOR at December 31, 2015 was 0.43% ): Balance Outstanding December 31, 2015 December 31, 2014 Interest Rate as of December 31, 2015 Maturity Date $150 Million Facility $ 49.0 $ 10.0 Monthly LIBOR + 2.08% April 1, 2017 $200 Million Facility — — Monthly LIBOR + 2.50% January 14, 2019 Total $ 49.0 $ 10.0 The $150 Million Facility matures on April 1, 2017, when all unpaid principal and interest is due. Borrowing tranches under the $150 Million Facility bear interest at a “ base rate ” based on either the one-month or three-month LIBOR rate , selected at our option, plus an applicable margin which adjusts based on the credit facility’s debt service requirements. The $150 Million Facility also provides for fees based on unutilized amounts and minimum usage. The loan requires minimum borrowing of $10.0 million and monthly interest-only payments and monthly or annual payment of fees. Draws under the $150 Million Facility are secured by a pool of certain wholly owned multifamily communities. We have the ability to add and remove multifamily communities from the collateral pool, pursuant to the requirements under the credit facility agreement. We may also add multifamily communities at our discretion in order to increase amounts available for borrowing. As of December 31, 2015 , $118.6 million of the net carrying value of real estate collateralized the $150 Million Facility. The aggregate borrowings under the $150 Million Facility are limited to 70% of the value of the collateral pool, which may be different than the carrying value for financial statement reporting. As of December 31, 2015 , our availability to draw under the $150 Million Facility was limited to $108.2 million based upon the value of the collateral pool. The $150 Million Facility agreement contains customary provisions with respect to events of default, covenants and borrowing conditions. In particular, the $150 Million Facility agreement requires us to maintain a consolidated net worth of at least $150.0 million , liquidity of at least $15.0 million and net operating income of the collateral pool to be no less than 155% of the facility debt service cost. Certain prepayments may be required upon a breach of covenants or borrowing conditions. We believe we are in compliance with all provisions as of December 31, 2015 . In January 2015, we entered into the $200 Million Facility. The $200 Million Facility matures on January 14, 2019 , and may be extended for an additional one year term at our option. Borrowing tranches bear interest at rates based on defined leverage ratios, which as of December 31, 2015 is LIBOR + 2.5% . The $200 Million Facility also provides for fees based on unutilized amounts and minimum usage. We may increase the size of the $200 Million Facility from $200.0 million up to a total of $400.0 million after satisfying certain conditions. Draws under the $200 Million Facility are primarily supported by equity pledges of our wholly owned subsidiaries, and are secured by a first mortgage lien, an assignment of leases and rents against two wholly owned multifamily communities, and a first priority perfected assignment of a portion of certain of our notes receivable. In addition, we may provide additional security related to future property acquisitions. The $200 Million Facility agreement contains customary provisions with respect to events of default, covenants and borrowing conditions. In particular, the $200 Million Facility agreement requires us to maintain (as defined in the agreement) a tangible consolidated net worth of at least $1.16 billion , consolidated total indebtedness to total gross asset value of less than 65% , and adjusted consolidated earnings before interest, taxes, depreciation and amortization (“EBITDA”) to consolidated fixed charges of not less than 1.50 to 1. Beginning December 31, 2015 , our $200 Million Facility agreement may also limit our ability to pay distributions and share repurchases in excess of 95% of our funds from operations generally calculated in accordance with the current definition of funds from operations adopted by the National Association of Real Estate Investment Trusts. For the year ended December 31, 2015 , our declared distributions were 78% of such defined funds from operations during such period. We believe we are in compliance with all provisions of the $200 Million Facility agreement as of December 31, 2015 . |
Noncontrolling Interests
Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2015 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests Non-redeemable Noncontrolling Interests Non-redeemable noncontrolling interests for the Co-Investment Venture partners represent their proportionate share of the equity in consolidated real estate ventures. Each noncontrolling interest is not redeemable by the holder, and accordingly, is reported as equity. Income and losses are allocated to the noncontrolling interest holders based on their effective ownership percentage. This effective ownership is indicative of, but may differ from, percentages for distributions, contributions or financing requirements. As of December 31, 2015 and 2014 , non-redeemable noncontrolling interests (“NCI”) consisted of the following, including the direct and non-direct noncontrolling interests ownership ranges where applicable (dollar amounts in millions): December 31, 2015 December 31, 2014 Effective Effective Amount NCI % (a) Amount NCI % (a) PGGM Co-Investment Partner $ 332.0 30% to 45% $ 390.5 26% to 45% MW Co-Investment Partner 123.7 45% 144.9 45% Developer Partners 4.0 0% 3.4 0% Subsidiary preferred units 2.1 (b) 1.9 (b) Total non-redeemable NCI $ 461.8 $ 540.7 (a) Effective noncontrolling interest percentage is based upon the noncontrolling interest’s participation in distributable operating cash. This effective ownership is indicative of, but may differ from, percentages for distributions, contributions or financing requirements. (b) The effective NCI for the preferred units is not meaningful and the preferred units have no voting rights. Each noncontrolling interest relates to ownership interests in CO-JVs where we have substantial operational control rights. In the case of the PGGM Co-Investment Partner, their noncontrolling interest includes an interest in the Master Partnership and the PGGM CO-JVs. For PGGM CO-JVs and MW CO-JVs, capital contributions and distributions are generally made pro rata in accordance with these ownership interests; however, the Master Partnership’s and the PGGM CO-JV’s pro rata interests are subject to a promoted interest to us if certain performance returns are achieved. Developer CO-JVs generally have limited participation in contributions and generally only participate in distributions after certain preferred returns are collected by us or the PGGM CO-JVs, as applicable, which in some cases may not be until we have received all of our investment capital. None of these Co-Investment Venture partners have any rights to put or redeem their ownership interest; however, they generally provide for buy/sell rights after certain periods. In certain circumstances, the governing documents of the PGGM CO-JV or MW CO-JV may require a sale of the Co-Investment Venture or its subsidiary REIT rather than an asset sale. Noncontrolling interests also include between 121 to 125 preferred units issued by a subsidiary of each of the PGGM CO-JVs and the MW CO-JVs in order for such subsidiaries to qualify as a REIT for federal income tax purposes. The subsidiary preferred units pay an annual distribution of 12.5% on their face value and are senior in priority to all other members’ equity. The PGGM CO-JVs and MW CO-JVs may cause the subsidiary REIT, at their option, to redeem the subsidiary preferred units in whole or in part, at any time for cash at a redemption price of $500 per unit (the face value), plus all accrued and unpaid distributions thereon to and including the date fixed for redemption, plus a premium per unit generally of $50 to $100 for the first year which generally declines in value $25 per unit each year until there is no redemption premium remaining. The subsidiary preferred units are not redeemable by the unit holders, and as of December 31, 2015 , we have no current intent to exercise our redemption option. Accordingly, these noncontrolling interests are reported as equity. For the years ended December 31, 2015 , 2014 and 2013 , we paid the following distributions to noncontrolling interests (in millions): For the Year Ended December 31, 2015 2014 2013 Distributions paid to noncontrolling interests: Operating activities $ 17.7 $ 22.5 $ 25.0 Investing and financing activities 30.8 25.5 26.3 Total $ 48.5 $ 48.0 $ 51.3 On May 7, 2015, we acquired six noncontrolling interests in PGGM CO-JVs, which related to equity investments in six multifamily communities, and one controlling interest in a PGGM CO-JV, which related to a debt investment in a multifamily community. The net purchase price was $119.8 million , exclusive of closing costs. The consideration for the acquisitions was paid in cash, with $9.8 million funded from existing cash balances and the remaining $110.0 million from draws under our credit facilities. In connection with the acquisitions, we also received from the Master Partnership a disposition fee of $1.0 million and a promoted interest payment of $3.5 million , which are eliminated in our consolidation of the Master Partnership but did increase net income available to the Company. The following table summarizes each of the multifamily community interests related to the acquisition of noncontrolling and controlling interests: Our Ownership Interest (a) Multifamily Community and Location Total Units Pre-Acquisition Acquired Interest Post-Acquisition Equity investments: The District Universal Boulevard, Orlando, FL 425 55.5 % 44.5 % 100 % Veritas, Henderson, NV (b) 430 51.9 % 41.6 % 93.5 % The Cameron, Silver Spring, MD 325 55.5 % 44.5 % 100 % Skye 2905, Denver, CO 400 55.5 % 44.5 % 100 % Grand Reserve, Dallas, TX 149 74.4 % 25.6 % 100 % Stone Gate, Marlborough, MA 332 55.5 % 44.5 % 100 % 2,061 Debt investment: Jefferson Creekside, Allen, TX 444 55.5 % 44.5 % 100 % (a) Our ownership interest is based on our share of contributed capital. This ownership interest may differ over time from percentages for distributions, contributions or financing requirements for each respective CO-JV. The post-acquisition effective ownership interests based on our participation in distributable cash from the CO-JVs are the same as those presented based on contributed capital, except for Veritas where our post-acquisition effective ownership based on our current participation in distributable cash is 100%. Each of the equity investments was previously accounted for on the consolidated method of accounting with the same accounting method post-acquisition. The debt investment was previously accounted for on the equity method of accounting and post-acquisition will be accounted for on the consolidated method of accounting. (b) The remaining 6.5% is owned by a Developer Partner. Because these equity investments were previously accounted for on the consolidated method of accounting, the acquisition of the investment interests did not change the carrying value for the related assets or liabilities or reported consolidated operations for revenues and expenses included in reported net income. The acquisition of the equity investments reduced noncontrolling interests for the related amounts of the CO-JVs with the difference between the noncontrolling interest amounts and the purchase price of $59.2 million recorded to additional paid in capital. The acquisition of the debt investment resulted in a change from equity method accounting to the consolidated method of accounting and accordingly, the underlying assets and liabilities were recorded at a fair value of $16.6 million . On February 28, 2014 , we sold an approximately 37% noncontrolling interest in two Developer CO-JVs to PGGM for $13.2 million . No gain or loss was recognized in recording these transactions, but a net decrease to additional paid-in capital of $0.8 million was recorded. During the year ended 2014 , we formed two new PGGM CO-JVs to develop two separate multifamily communities in California. On July 31, 2013, we acquired the GP Master Interest in a related party transaction with Behringer for $23.1 million in cash, excluding closing costs, of which $13.8 million related to the partial acquisition of an approximate 1% noncontrolling interest in the Master Partnership’s interest in the PGGM CO-JVs. The remaining $9.3 million was accounted for as a business combination. Additionally, during the year ended 2013 , we acquired all of the noncontrolling interests in the Cyan MW CO-JV for $27.9 million in cash and sold a portion of our noncontrolling interest in the Cameron PGGM CO-JV to PGGM for $7.3 million in cash. On December 20, 2013, the Master Partnership was restructured to increase PGGM’s equity commitment, and we partially sold an approximate 42% noncontrolling interest in 13 Developer CO-JVs to PGGM for $146.4 million . No gain or loss was recognized in recording these transactions, but a net decrease to additional paid-in capital of $23.1 million was recorded. Redeemable Noncontrolling Interests As of December 31, 2015 and 2014 , redeemable noncontrolling interests (“NCI”) consisted of the following (dollar amounts in millions): December 31, 2015 December 31, 2014 Effective Effective Amount NCI % (a) Amount NCI % (a) Developer Partners $ 29.1 0% to 10% $ 32.0 0% to 10% (a) Effective noncontrolling interest percentage is based upon the noncontrolling interest’s participation in distributable operating cash. This effective ownership is indicative of, but may differ from, percentages for distributions, contributions or financing requirements. For Co-Investment Ventures where the developer’s equity has been returned, the effective noncontrolling interest percentage is shown as zero. Developer Partners included in redeemable noncontrolling interests represent ownership interests in Developer CO-JVs by regional or national multifamily developers, which may require that we pay or reimburse our Developer Partners upon certain events. These amounts include reimbursing partners once certain development milestones are achieved, generally related to permits or final budgeted construction costs. They also generally have put options, usually exercisable one year after completion of the development and thereafter, pursuant to which we would be required to acquire their ownership interest at a set price. As of December 31, 2015 , we have recorded in redeemable noncontrolling interests $28.8 million of puts, of which $5.0 million are eligible for exercise as of that date. These Developer CO-JVs also include buy/sell provisions, generally available after the tenth year after completion of the development. Each of these Developer CO-JVs is managed by a subsidiary of ours. As manager, we have substantial operational control rights. These Developer CO-JVs generally provide that we have a preferred cash flow distribution until we receive certain returns on and of our investment. All of these Developer Partners also have a back end interest, generally only attributable to distributions related to a property sale or financing. Generally, these noncontrolling interests have no obligation to make any additional capital contributions. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Capitalization In connection with our transition to self-management, on July 31, 2013, we issued 10,000 shares of a new Series A non-participating, voting, cumulative, 7.0% convertible preferred stock, par value $0.0001 per share (the “Series A Preferred Stock”), to Behringer. The shares of Series A Preferred Stock entitle the holder to one vote per share on all matters submitted to the holders of the common stock, a liquidation preference equal to $10.00 per share before the holders of common stock are paid any liquidation proceeds, and 7.0% cumulative cash dividends on the liquidation preference and any accrued and unpaid dividends. As determined and limited pursuant to the Articles Supplementary establishing the Series A Preferred Stock, the Series A Preferred Stock will automatically convert into shares of our common stock on the earlier of December 31, 2016, or the election by the holders of a majority of the then outstanding shares of Series A Preferred Stock, in each case based on the trading prices of our shares of common stock over a subsequent measurement period. At conversion, all of the shares of Series A Preferred Stock will, in total, generally convert into an amount of shares of our common stock equal in value to 17.25% of the excess, if any, of (i) (a) the per share value of our common stock at the time of conversion, as determined pursuant to the Articles Supplementary establishing the Series A Preferred Stock and assuming no shares of the Series A Preferred Stock are outstanding, multiplied by 168,537,343 shares of common stock, plus (b) the aggregate value of distributions (including distributions constituting a return of capital) paid through such time on the 168,537,343 shares of common stock over (ii) the aggregate issue price of those outstanding shares plus a 7% cumulative, non-compounded, annual return on the issue price of those outstanding shares. The conversion option terminates December 31, 2016. Stock Plans Our Second Amended and Restated Incentive Award Plan (the “Incentive Award Plan”) authorizes the grant of non-qualified and incentive stock options, restricted stock awards, restricted stock units, stock appreciation rights, dividend equivalents and other stock-based awards. A total of 20 million shares has been authorized and reserved for issuance under the Incentive Award Plan as of December 31, 2015 . Compensation cost is measured at the grant date based on the estimated fair value at the time of the award being granted and will be recognized as expense over the service period based on the tiered lapse schedule and estimated forfeiture rates. Restricted Stock Units As of December 31, 2015 , we had 549,496 restricted stock units outstanding, held by our directors and certain executive employees. These restricted stock units generally vest over a three year period. The following table includes the number of restricted stock units granted, exercised (including units used to satisfy employee income tax withholding) and outstanding as of and for the years ended December 31, 2015 and 2014 . No restricted stock units were granted in 2013. 2015 2014 Units Weighted Average Grant Date Fair Value Units Weighted Average Grant Date Fair Value Outstanding January 1, 248,691 $ 10.03 — $ — Granted 482,846 9.47 248,691 10.03 Exercised (170,632 ) 9.71 — — Forfeited (11,409 ) 9.64 — — Outstanding December 31, 549,496 $ 9.64 248,691 $ 10.03 Vested restricted stock units 64,437 $ 9.90 11,356 $ 10.03 Unvested restricted stock units 485,059 $ 9.61 237,335 $ 10.03 Restricted Stock As of December 31, 2015 , we had 20,868 shares of restricted stock outstanding held by employees. Restrictions on these shares lapse in equal increments over a three year period following the grant date. The following is a summary of the restricted stock granted, forfeited and outstanding as of and for the year ended December 31, 2015 . No restricted stock was granted in 2014 or 2013 : 2015 Shares Weighted Average Grant Date Fair Value Outstanding January 1, — $ — Granted 25,746 9.21 Forfeited (4,878 ) 9.21 Outstanding December 31, 20,868 $ 9.21 Unvested restricted stock 20,868 $ 9.21 For the years ended December 31, 2015 and 2014 , we had approximately $3.2 million and $0.8 million , respectively, in compensation costs related to share-based payments including dividend equivalent payments. For the year ended December 31, 2013 , we had no compensation cost related to share-based payments. Unearned compensation costs for restricted stock units and restricted stock was approximately $3.4 million at December 31, 2015 , and is expected to be recognized over a weighted average period of 1.9 years. Distributions The following table presents the regular distributions declared for the years ended December 31, 2015 , 2014 and 2013 (in millions, except per share amounts): For the Year Ended 2015 2014 2013 Declared (a) Declared per Share (a) Declared (a) Declared per Share (a) Declared (a) Declared per Share (a) Fourth quarter $ 12.5 $ 0.075 $ 12.5 $ 0.075 $ 14.9 $ 0.089 Third quarter 12.5 0.075 14.9 0.088 14.9 0.088 Second quarter 12.5 0.075 14.7 0.087 14.7 0.087 First quarter 12.5 0.075 14.6 0.086 14.5 0.086 Total $ 50.0 $ 0.300 $ 56.7 $ 0.336 $ 59.0 $ 0.350 (a) Represents distributions accruing during the period. Beginning with the fourth quarter of 2014, the board of directors authorizes regular distributions to be paid to stockholders of record with respect to a single record date each quarter. Prior to the fourth quarter of 2014, regular distributions accrued on a daily basis at a daily amount of $0.000958904 ( $0.35 annualized) per share of common stock and were paid in the following month. On August 12, 2014, in anticipation of the Company’s listing on a national securities exchange, our board of directors elected to suspend our distribution reinvestment plan (“DRIP”) effective August 24, 2014 , and on November 4, 2014, our board of directors approved the termination of the DRIP. As a result, all distributions paid subsequent to August 24, 2014 were paid in cash and not reinvested in shares of our common stock. During 2015 , 2014 and 2013 , our distributions were classified as follows for federal income tax purposes: 2015 2014 2013 Ordinary income 58 % 42 % 36 % Capital gains 23 % 19 % 32 % Section 1250 recapture capital gains 5 % — % 4 % Return of capital 14 % 39 % 28 % Total 100 % 100 % 100 % The classification changes in 2015 were primarily due to increased dispositions in 2015 as compared to 2014 and improved operating performance in 2015 compared to 2014 . The classification changes in 2014 were primarily due to decreased dispositions in 2014 as compared to 2013 and improved operating performance in 2014 compared to 2013 . Share Redemption Program On August 12, 2014, in anticipation of the Company’s listing on a national securities exchange, our board of directors elected to suspend our share redemption program (“SRP”), effective August 14, 2014, and on November 4, 2014, our board of directors approved the termination of the SRP. Prior to the suspension and subsequent termination of our SRP, the purchase price per share redeemed under the SRP was generally set at 85% of the then-current estimated share value pursuant to our valuation policy for ordinary redemptions and at the lesser of the then-current estimated share value pursuant to our valuation policy and the average price per share paid by the original purchaser of the shares being redeemed, less any special distributions, pursuant to our valuation policy for redemptions sought upon a stockholder’s death, qualifying disability or confinement to a long-term care facility. Prior to the suspension of our SRP in August 2014 and subsequent termination, we redeemed approximately 1.6 million common shares at an average price of $8.80 per share for $14.2 million for the year ended December 31, 2014 . For the year ended December 31, 2013 , we redeemed approximately 2.5 million common shares at an average price of $9.24 per share for $22.9 million . On December 29, 2014 , the Company acquired through a tender offer approximately 2.4 million common shares at a price of $9.25 per share for $22.1 million . |
Transition Expenses
Transition Expenses | 12 Months Ended |
Dec. 31, 2015 | |
Transition to Self-Management [Abstract] | |
Transition Expenses | Transition Expenses On July 31, 2013 (the “Initial Closing”), we entered into a series of agreements and amendments to our existing agreements and arrangements with Behringer, setting forth various terms of and conditions to the modification of the business relationships between us and Behringer. We collectively refer to these agreements as the “Self-Management Transition Agreements.” From the Initial Closing through June 30, 2014, we hired executives and staff who were previously employees of Behringer and began hiring other employees, completing our transition to a self-managed company. Commencing at the Initial Closing, the Self-Management Transition Agreements provide that in certain circumstances, Behringer will rebate to us, or may provide us a credit with respect to acquisition fees paid pursuant to the amended and restated advisory management agreement. For the years ended December 31, 2015 and 2014 , $0.1 million and $2.5 million , respectively, of acquisition fees were trued up to us. No amounts were credited for the year ended December 31, 2013. During the period from the Initial Closing through September 30, 2014, Behringer provided general transition services in support of our transition to self-management for a total cost of $7.2 million ; $0.4 million was expensed for the year ended December 31, 2014 and $6.8 million was expensed for the year ended December 31, 2013. For the period from August 1, 2013 through June 30, 2014, Behringer was paid fees and reimbursements under the terms of amended advisory and property management agreements that included a reduction of certain fees and expenses paid to Behringer under the prior agreements, which are described in Note 16, “Related Party Arrangements.” We consummated the second and final closing of the Self-Management Transition Agreements on June 30, 2014 (the “Self-Management Closing”), terminating the advisory and property management services with Behringer and paying Behringer $3.5 million for certain intangible assets, rights and contracts, $1.25 million as part of the general transition services described above and a monthly installment of $0.4 million for general transition services. Effective July 1, 2014 , we hired corporate and property management employees who were previously employees of Behringer. We also reconciled certain miscellaneous closing matters related to employee benefits of former Behringer employees hired by us, transfers of office equipment and similar items. Behringer provided shareholder services from June 30, 2014 through November 20, 2014 at a cost of $2.9 million , including an early termination payment related to our listing on the NYSE. In addition to the above transactions, the Company incurred other expenses related to our transition to self-management and listing on the NYSE, primarily related to Special Committee and Company legal and financial advisors and general transition services (primarily staffing, name change, notices, transition-related insurance, information technology and facilities). The table below represents the components of our transition expenses for the years ended December 31, 2014 and 2013 are as follows (in millions). We did not incur any transition expenses for the year ended December 31, 2015 . For the Year Ended 2014 2013 Special Committee and Company legal and financial advisors $ 0.9 $ 0.7 General transition services: Behringer 2.9 7.9 Other service providers 2.5 0.4 Expenses related to listing on the NYSE 6.4 — Total transition expenses $ 12.7 $ 9.0 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies All of our Co-Investment Ventures include buy/sell provisions. Under most of these provisions and during specific periods, a partner could make an offer to purchase the interest of the other partner and the other partner would have the option to accept the offer or purchase the offering partner’s interest at that price. As of December 31, 2015 , no such buy/sell offers are outstanding. In the ordinary course of business, the multifamily communities in which we have investments may have commitments to provide affordable housing. Under these arrangements, we generally receive from the resident a below market rent, which is determined by a local or national authority. In certain markets, a local or national housing authority may make payments covering some or substantially all of the difference between the restricted rent paid by residents and market rents. In connection with our acquisition of The Gallery at NoHo Commons, we assumed an obligation to provide affordable housing through 2048. As partial reimbursement for this obligation, the California housing authority will make level annual payments of approximately $2.0 million through 2028 and no reimbursement for the remaining 20 -year period. We may also be required to reimburse the California housing authority if certain operating results are achieved on a cumulative basis during the term of the agreement. At the acquisition, we recorded a liability of $14.0 million based on the fair value of the terms over the life of the agreement. In addition, we record rental revenue from the California housing authority on a straight-line basis, deferring a portion of the collections as deferred lease revenues. As of December 31, 2015 and 2014 , we have approximately $18.9 million and $18.3 million , respectively, of carrying value for deferred lease revenues related to The Gallery at NoHo Commons. As of December 31, 2015 , we have entered into construction and development contracts with $82.6 million remaining to be paid. These construction costs are expected to be paid during the completion of the development and construction period, generally within 24 months . Future minimum lease payments due on our lease commitment payables, primarily related to our corporate office lease which expires in 2024, are as follows (in millions): Future Minimum Lease Payments 2016 $ 0.6 2017 0.9 2018 0.8 2019 0.8 2020 0.8 Thereafter 3.2 Total $ 7.1 On November 10, 2015 , a complaint was filed in the District Court of Dallas County, Texas against the Company by Behringer, the Company’s former external advisor. The complaint alleges the Company breached certain terms of the Self-Management Transition Agreements. In the complaint, Behringer makes claims for damages to recover approximately $2.3 million in debt financing fees purportedly owed to Behringer relating to the Company’s $200 Million Facility as well as certain property-level debt financing arrangements. On January 13, 2016 , the Company filed an answer and counterclaim in the Behringer lawsuit. The Company’s counterclaim seeks approximately $1.5 million in refunds of development fees previously paid by the Company in connection with the Shady Grove acquisition. Because the litigation related to Behringer’s claims and our claims is in the beginning stages of discovery, management cannot estimate the ultimate resolution of the matters. As of December 31, 2015 , no liabilities for the matter have been recorded. We do not believe the ultimate outcome will have a material effect on our financial condition or results of operations. We are also subject to various legal proceedings and claims which arise in the ordinary course of business. Matters which relate to property damage or general liability claims are generally covered by insurance. While the resolution of these legal proceedings and claims cannot be predicted with certainty, management believes the final outcome of such matters will not have a material adverse effect on our consolidated financial statements. |
Fair Value of Derivatives and F
Fair Value of Derivatives and Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Derivatives and Financial Instruments | Fair Value of Derivatives and Financial Instruments Fair value measurements are determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy) has been established. Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets and liabilities that we have the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability that are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. In connection with our measurements of fair value related to many real estate assets, noncontrolling interests, financial instruments and contractual rights, there are generally not available observable market price inputs for substantially the same items. Accordingly, each of these are classified as Level 3, and we make assumptions and use various estimates and pricing models, including, but not limited to, the estimated cash flows, discount and interest rates used to determine present values, market capitalization rates, sales of comparable investments, rental rates, costs to lease properties, useful lives of the assets, the cost of replacing certain assets, and equity valuations. These estimates are from the perspective of market participants and may also be obtained from independent third-party appraisals. However, we are responsible for the source and use of these estimates. A change in these estimates and assumptions could be material to our results of operations and financial condition. Financial Instruments Carried at Fair Value on a Recurring Basis For the years ended December 31, 2015 , 2014 and 2013 , we had no fair value adjustments on a recurring basis. Nonrecurring Basis — Fair Value Adjustments As discussed in Note 5, “Real Estate Investments,” we recorded an impairment charge related to one of our developments in May 2015. Prior to the impairment, the development had a net carrying value of $44.4 million . The $3.1 million impairment is included in the line item “Investment and other development expenses” on the consolidated statement of operations. The fair value for the development was determined based upon the terms of the purchase and sale agreement which closed in June 2015. We consider this a Level 2 input under the fair value hierarchy. As discussed in Note 11, “Noncontrolling Interests”, we acquired a controlling interest in an unconsolidated investment in real estate joint venture in May 2015. We consolidated the Custer PGGM CO-JV and recognized a loss related to the revaluation of our equity interest for the difference between our carrying value and the fair value of the investment. The fair value was determined based upon the pay-off value of the note receivable and its related accrued interest, both of which were repaid shortly after the acquisition of the controlling interest. We consider this a Level 2 input under the fair value hierarchy. The following fair value hierarchy table presents information about our assets measured at fair value on a nonrecurring basis during the year ended December 31, 2015 (in millions): For the Year Ended December 31, 2015 Level 1 Level 2 Level 3 Total Fair Value Gain (Loss) Assets Construction in progress $ — $ 41.2 $ — $ 41.2 $ (3.1 ) Other Assets — 16.6 — 16.6 — $ — $ 57.8 $ — $ 57.8 $ (3.1 ) For the years ended December 31, 2014 and 2013, we had no fair value adjustments on a nonrecurring basis. Financial Instruments Not Carried at Fair Value Financial instruments held as of December 31, 2015 and 2014 and not measured at fair value on a recurring basis include cash and cash equivalents, notes receivable, credit facilities payable and mortgages and notes payable. With the exception of our mortgages and notes payable, the financial statement carrying amounts of these items approximate their fair values due to their short-term nature. Because the credit facilities payable bears interest at a variable rate and has a prepayment option, we believe its carrying amount approximates its fair value. Estimated fair values for mortgages and notes payable have been determined using market pricing for similar mortgages payable, which are classified as Level 2 in the fair value hierarchy. Carrying amounts and the related estimated fair value of our mortgages and notes payable as of December 31, 2015 and 2014 are as follows (in millions): December 31, 2015 December 31, 2014 Carrying Fair Carrying Fair Amount Value Amount Value Mortgages and notes payable $ 1,473.0 $ 1,473.1 $ 1,186.5 $ 1,199.6 |
Related Party Arrangements
Related Party Arrangements | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Arrangements | Related Party Arrangements From our inception to July 31, 2013, we had no employees, were externally managed by Behringer and were supported by related party service agreements, as further described below. Through July 31, 2013, we exclusively relied on Behringer to provide certain services and personnel for management and day-to-day operations, including advisory services and property management services provided or performed by Behringer. Effective July 31, 2013, we entered into the Self-Management Transition Agreements as discussed in Note 13, “Transition Expenses.” From the Initial Closing through June 30, 2014, we hired executives and staff who were previously employees of Behringer and began hiring other employees, completing our transition to a self-managed company. Behringer provided capital market services to the Company for a fee ranging from 0.9% to 1.0% of our share of the financings. Such capital market services terminated on June 30, 2015. In addition, certain acquisition and advisory fees and other reimbursements are still subject to true-up and reconciliations as of December 31, 2015. For the years ended December 31, 2015 and 2014 , $0.1 million and $2.5 million , respectively, of acquisition fees were credited to us, all of which were previously capitalized, and offset against total real estate, net. The services provided by Behringer included acquisition and advisory, property management, and asset management services which terminated on June 30, 2014 and capital market services which terminated on June 30, 2015. The table below shows the fees and expense reimbursements to Behringer in exchange for such services for the years ended December 31, 2015 , 2014 and 2013 (in millions): For the Year Ended 2015 2014 2013 Acquisition and advisory fees $ — $ 4.3 $ 15.0 Property management fees — 11.3 23.4 Debt financing fees 0.2 2.4 1.5 Asset management fees — 3.8 7.7 Administrative expense reimbursements — 1.0 1.8 Shareholder services (a) — 2.9 — (a) Includes an early termination payment of $2.3 million to Behringer related to our listing on the NYSE. See further discussion in Note 13, “Transition Expenses.” See Note 14, “Commitments and Contingencies” for discussion of litigation with Behringer. |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Disclosures of Cash Flow Information | Supplemental Disclosures of Cash Flow Information Supplemental cash flow information for the years ended December 31, 2015 , 2014 and 2013 is summarized below (in millions): For the Year Ended 2015 2014 2013 Supplemental disclosure of cash flow information: Interest paid, net of amounts capitalized of $16.5 million, $17.8 million and $10.5 million in 2015, 2014 and 2013, respectively $ 30.1 $ 20.8 $ 25.8 Non-cash investing and financing activities: Acquisition of a noncontrolling interest — — 9.0 Conversion of note receivable into an equity investment — — 4.9 Funds deposited in escrow related to a development acquisition — 1.5 1.1 Transfer of real estate from construction in progress to operating real estate 679.4 286.6 48.9 Conversion of investment in unconsolidated real estate joint venture into notes receivable 5.0 0.8 9.5 Stock issued pursuant to our DRIP — 20.5 31.0 Distributions payable 12.5 12.5 5.0 Construction costs and other related payables 34.9 92.2 43.7 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events We have evaluated subsequent events for recognition or disclosure in our consolidated financial statements. Distributions for the First Quarter of 2016 Our board of directors has authorized a distribution in the amount of $0.075 per share on all outstanding shares of common stock of the Company for the first quarter of 2016. The distribution is payable April 7, 2016 to stockholders of record at the close of business on March 31, 2016 . |
Quarterly Results (unaudited)
Quarterly Results (unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (unaudited) | Quarterly Results (unaudited) Presented below is a summary of the unaudited quarterly consolidated financial information for the years ended December 31, 2015 and 2014 (in thousands, except per share data): 2015 Quarters Ended March 31 June 30 September 30 December 31 Rental revenues $ 56,643 $ 59,105 $ 59,191 $ 63,129 Income (loss) from continuing operations $ (1,177 ) $ 44,473 $ 30,876 $ (7,489 ) Net income (loss) attributable to common stockholders $ (833 ) $ 49,196 $ 31,362 $ (5,937 ) Basic weighted average shares outstanding 166,509 166,541 166,563 166,628 Diluted weighted average shares outstanding 166,509 167,202 167,260 167,247 Basic and diluted earnings (loss) per share $ (0.01 ) $ 0.29 $ 0.19 $ (0.04 ) 2014 Quarters Ended March 31 June 30 September 30 December 31 Rental revenues $ 50,182 $ 51,047 $ 53,091 $ 54,705 Income (loss) from continuing operations $ 14,476 $ (6,870 ) $ (858 ) $ (6,477 ) Net income (loss) attributable to common stockholders $ 7,423 $ (6,775 ) $ (619 ) $ (6,153 ) Basic weighted average shares outstanding 168,714 168,857 168,780 168,818 Diluted weighted average shares outstanding 168,919 169,096 169,028 169,066 Basic and diluted earnings (loss) per share $ 0.04 $ (0.04 ) $ — $ (0.04 ) ***** |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts Schedule II | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts Schedule II | Monogram Residential Trust, Inc. Valuation and Qualifying Accounts Schedule II December 31, 2015 (in thousands) Allowance for Doubtful Accounts Balance at Beginning of Year Charged to Costs and Expenses Charged to Other Accounts Deductions Balance at End of Year For the Year Ended December 31, 2015 $ 144 $ 746 $ — $ 644 $ 246 For the Year Ended December 31, 2014 102 550 — 508 144 For the Year Ended December 31, 2013 193 492 — 583 102 |
Real Estate and Accumulated Dep
Real Estate and Accumulated Depreciation Schedule III | 12 Months Ended |
Dec. 31, 2015 | |
SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
Real Estate and Accumulated Depreciation Schedule III | Monogram Residential Trust, Inc. Real Estate and Accumulated Depreciation Schedule III December 31, 2015 (in thousands) Initial Cost Costs Subsequent to Acquisition/ Construction Gross Property Name Location Land Buildings and Improvements Accumulated Depreciation (a) Year of Completion/ Acquisition(b) Encumbrances(c) 4110 Fairmount Dallas, TX $ 7,244 $ 36,150 $ 153 $ 43,547 $ 2,720 2014/2012 $ 24,825 4550 Cherry Creek(d) Denver, CO 7,910 70,184 1,594 79,688 14,016 2004/2011 39,500 55 Hundred(d) Arlington, VA 13,196 67,515 619 81,330 12,830 2010/2011 41,047 7166 at Belmar(d) Lakewood, CO 3,385 52,298 1,828 57,511 10,222 2008/2011 28,500 Acacia on Santa Rosa Creek Santa Rosa, CA 8,100 29,512 1,847 39,459 8,561 2003/2010 29,000 Acappella San Bruno, CA 8,000 46,973 562 55,535 10,996 2010/2010 30,070 Allegro (e) Addison, TX 3,900 55,355 1,688 60,943 11,237 2013/2010 20,829 Allusion West University Houston, TX 9,440 31,372 111 40,923 2,611 2014/2012 20,623 Argenta San Francisco, CA 11,100 81,624 1,536 94,260 16,341 2008/2011 51,000 Arpeggio Victory Park Dallas, TX 11,000 47,443 117 58,560 3,713 2014/2012 29,161 Bailey's Crossing(d) Alexandria, VA 22,214 108,145 803 131,162 20,689 2010/2011 76,000 Blue Sol Costa Mesa, CA 7,167 30,145 132 37,444 1,718 2014/2013 — Briar Forest Lofts(d) Houston, TX 4,623 40,155 733 45,511 7,868 2008/2011 20,211 Burrough's Mill(d) Cherry Hill, NJ 10,075 51,869 823 62,767 11,395 2004/2011 24,440 Calypso Apartments and Lofts(d) Irvine, CA 13,902 42,730 511 57,143 8,240 2008/2011 29,500 The Cameron Silver Spring, MD 25,191 77,737 565 103,493 14,607 2010/2011 63,579 Cyan on Peachtree Atlanta, GA 9,302 59,839 — 69,141 1,497 2015/2013 39,114 The District Universal Boulevard Orlando, FL 5,161 57,448 995 63,604 11,057 2009/2011 36,589 Eclipse(d) Houston, TX 6,927 44,078 420 51,425 8,987 2009/2011 20,061 Ev San Diego, CA 10,400 73,547 — 83,947 1,062 2015/2015 — Everly Wakefield, MA 6,101 39,503 866 46,470 2,171 2014/2012 22,982 Fitzhugh Urban Flats(d) Dallas, TX 9,394 48,884 1,135 59,413 9,997 2009/2011 26,886 Forty55 Lofts(d) Marina del Rey, CA 11,382 68,966 523 80,871 13,262 2010/2011 25,500 The Franklin Delray Delray Beach, FL 9,065 24,229 79 33,373 2,499 2013/2012 — The Gallery at NoHo Commons Los Angeles, CA 28,700 78,309 2,308 109,317 22,462 2008/2009 51,300 Grand Reserve Dallas, TX 2,980 29,231 (640 ) 31,571 4,828 2009/2012 20,364 The Lofts at Park Crest McLean, VA — 49,737 482 50,219 12,288 2008/2010 43,321 Muse Museum District Houston, TX 11,533 36,189 616 48,338 2,292 2014/2012 26,700 Nouvelle Tysons Corner, VA 30,515 137,645 — 168,160 1,538 2015/2013 64,406 Pembroke Woods Pembroke, MA 11,520 29,807 1,144 42,471 5,184 2006/2012 14,516 Point 21 Denver, CO 6,453 41,375 — 47,828 1,485 2014/2012 26,552 Renaissance - Phase I(d) Concord, CA 5,786 33,660 1,669 41,115 6,208 2008/2011 — Initial Cost Costs Gross Property Name Location Land Buildings and Accumulated Depreciation (a) Year of Encumbrances(c) The Reserve at LaVista Walk Atlanta, GA 4,530 34,159 1,263 39,952 8,331 2008/2010 13,655 San Sebastian(d) Laguna Woods, CA 7,841 29,037 252 37,130 6,455 2010/2011 21,000 Satori(d) Fort Lauderdale, FL 8,223 75,126 1,260 84,609 14,629 2010/2011 51,000 SEVEN Austin, TX 6,041 54,117 — 60,158 1,385 2015/2011 31,407 Skye 2905 Denver, CO 13,831 87,491 214 101,536 16,394 2010/2011 55,647 SoMa(f) Miami, FL 21,647 51,150 — 72,797 170 2015/2013 50,431 Stone Gate Marlborough, MA 8,300 54,634 1,821 64,755 11,591 2007/2011 34,029 The Mark Boca Raton, FL 13,520 68,574 — 82,094 735 2015/2015 — Verge(f) San Diego, CA 26,620 64,262 — 90,882 887 2015/2013 50,519 Vara San Francisco, CA 20,200 88,500 602 109,302 9,308 2013/2013 57,000 The Venue(d) Clark County, NV 1,520 24,249 255 26,024 4,887 2009/2011 10,500 Veritas(d) Henderson, NV 4,950 55,607 449 61,006 9,948 2011/2012 34,775 West Village Mansfield, MA 5,301 30,068 679 36,048 6,603 2008/2011 19,747 Zinc Cambridge, MA 23,170 159,051 — 182,221 1,132 2015/2012 98,718 $ 497,360 $ 2,597,679 $ 30,014 $ 3,125,053 $ 357,036 $ 1,475,004 ____________________________________________________________________________ (a) Each of our properties has a depreciable life of 25 to 35 years . Improvements have depreciable lives ranging from 3 to 15 years . (b) For multifamily communities developed by the Company, year of acquisition represents the year of our initial investment in the development. (c) Encumbrances include mortgages and notes payable and the $150 Million Facility which had an outstanding balance of $49.0 million as of December 31, 2015 . The $150 Million Facility is collateralized by the following properties: Allegro, The Reserve at La Vista Walk and Pembroke Woods. The $150 Million Facility balance was allocated to each property based upon its relative gross real estate amount carried at December 31, 2015 . Encumbrances related to mortgage loans excludes the $2.5 million of unamortized adjustment from business combinations as of December 31, 2015 . (d) Property is owned through a Co-Investment Venture. Initial cost is the cost recorded at time of consolidation. Year acquired is the year the property was consolidated. (e) During 2013, we completed development of the second phase of Allegro which added an additional 121 units. Phase I of the property was initially completed in 2010. (f) For our developments, we transfer costs of a property to land, buildings and improvements as units are completed and capable of generating operating revenue. As of December 31, 2015 , SoMa was 95% complete and Verge was 94% complete. Both are expected to be completed in 2016 . A summary of activity for real estate and accumulated depreciation for the years ended December 31, 2015 , 2014 , and 2013 is as follows (in thousands): For the Year Ended December 31, 2015 2014 2013 Real Estate: Balance at beginning of year $ 2,423,704 $ 2,170,747 $ 2,177,429 Additions: Additions, acquisitions and/or consolidation of joint ventures 854,472 292,802 163,401 Deductions: Sale of real estate property (153,123 ) (39,845 ) (170,083 ) Balance at end of year $ 3,125,053 $ 2,423,704 $ 2,170,747 Accumulated Depreciation: Balance at beginning of year $ 280,400 $ 195,048 $ 123,360 Depreciation expense 98,796 88,806 85,054 Deductions (22,160 ) (3,454 ) (13,366 ) Balance at end of year $ 357,036 $ 280,400 $ 195,048 |
Mortgage Loans on Real Estate S
Mortgage Loans on Real Estate Schedule IV | 12 Months Ended |
Dec. 31, 2015 | |
Mortgage Loans on Real Estate [Abstract] | |
Mortgage Loans on Real Estate Schedule IV | Monogram Residential Trust, Inc. Mortgage Loans on Real Estate Schedule IV December 31, 2015 (in thousands) Mezzanine Loans by Community Interest Rate Maturity Date Periodic Payment Terms Prior Liens Face Amount of Note Carrying Amount of Note Principal Amount of Loans Subject to Delinquent Principal or Interest Kendall Square 15 % January 2016 (a) Principal and interest at maturity N/A $ 12,300 $ 12,300 $ — Jefferson Center 15 % September 2016 Principal and interest at maturity N/A 14,989 15,012 — Jefferson at Stonebriar 15 % June 2018 Principal and interest at maturity N/A 16,735 8,115 — Jefferson at Riverside 15 % June 2018 Principal and interest at maturity N/A 10,436 1,059 — $ 54,460 $ 36,486 $ — (a) In January 2016 , the borrower exercised the extension option and extended the maturity to April 15, 2016 resetting the interest rate to 17% . Reconciliation of the Carrying Amount of Mortgage Loans (in thousands): Balance at January 1, 2013 $ 36,040 Additions during 2013: New notes receivable, including advances under mezzanine loans 40,078 Capitalized acquisition costs, net of unearned fee income (31 ) Deductions during 2013: Note receivable converted into equity investment (4,880 ) Collections of principal and loan payoffs (18,425 ) Amortization of acquisition costs and fee income 29 Balance at December 31, 2013 52,811 Additions during 2014: New notes receivable, including advances under mezzanine loans 6,762 Capitalized acquisition costs, net of unearned fee income 133 Deductions during 2014: Note receivable converted into equity investment — Collections of principal and loan payoffs — Amortization of acquisition costs and fee income 44 Balance at December 31, 2014 59,750 Additions during 2015: New notes receivable, including advances under mezzanine loans (1) 9,877 Capitalized acquisition costs, net of unearned fee income (843 ) Deductions during 2015: Collections of principal and loan payoffs (1) (32,462 ) Amortization of acquisition costs and fee income 164 Balance at December 31, 2015 $ 36,486 (1) Excludes $4.4 million related to the conversion of an investment in an unconsolidated real estate joint venture into a note receivable that was subsequently repaid in May 2015. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements include our consolidated accounts and the accounts of our wholly owned subsidiaries. We also consolidate other entities in which we have a controlling financial interest or other entities (referred to as variable interest entities or “VIEs”) where we are determined to be the primary beneficiary. VIEs, as defined by U.S. generally accepted accounting principles (“GAAP”), are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. The primary beneficiary is required to consolidate a VIE for financial reporting purposes. The determination of the primary beneficiary requires management to make significant estimates and judgments about our rights, obligations and economic interests in such entities as well as the same of the other owners. See Note 6, “Variable Interest Entities” for further information about our VIEs. For entities in which we have less than a controlling financial interest or entities with respect to which we are not deemed to be the primary beneficiary, the entities are accounted for using the equity method of accounting. Accordingly, our share of the net earnings or losses of these entities is included in consolidated net income. See Note 7, “Other Assets” for further information on our unconsolidated investment. All inter-company accounts and transactions have been eliminated in consolidation. |
Consolidation | The accompanying consolidated financial statements include our consolidated accounts and the accounts of our wholly owned subsidiaries. We also consolidate other entities in which we have a controlling financial interest or other entities (referred to as variable interest entities or “VIEs”) where we are determined to be the primary beneficiary. VIEs, as defined by U.S. generally accepted accounting principles (“GAAP”), are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. The primary beneficiary is required to consolidate a VIE for financial reporting purposes. The determination of the primary beneficiary requires management to make significant estimates and judgments about our rights, obligations and economic interests in such entities as well as the same of the other owners. See Note 6, “Variable Interest Entities” for further information about our VIEs. For entities in which we have less than a controlling financial interest or entities with respect to which we are not deemed to be the primary beneficiary, the entities are accounted for using the equity method of accounting. Accordingly, our share of the net earnings or losses of these entities is included in consolidated net income. See Note 7, “Other Assets” for further information on our unconsolidated investment. All inter-company accounts and transactions have been eliminated in consolidation. |
Real Estate and Other Related Intangibles | Real Estate and Other Related Intangibles Acquisitions For real estate properties acquired by us or our Co-Investment Ventures classified as business combinations, we determine the purchase price, after adjusting for contingent consideration and settlement of any pre-existing relationships. We record the acquired assets and liabilities based on their fair values, including tangible assets (consisting of land, any associated rights, buildings and improvements), identified intangible assets and liabilities, asset retirement obligations, assumed debt, other liabilities and noncontrolling interests. Identified intangible assets and liabilities primarily consist of the fair value of in-place leases and contractual rights. Goodwill is recognized as of the acquisition date and measured as the aggregate fair value of the consideration transferred and any noncontrolling interest in the acquiree over the fair value of identifiable net assets acquired. Likewise, a bargain purchase gain is recognized in current earnings when the aggregate fair value of the consideration transferred and any noncontrolling interest in the acquiree are less than the fair value of the identifiable net assets acquired. The fair value of any tangible real estate assets acquired is determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to land, buildings and improvements. Land values are derived from appraisals, and building values are calculated as replacement cost less depreciation or estimates of the relative fair value of these assets using net operating income capitalization rates, discounted cash flow analyses or similar methods. When we acquire rights to use land or improvements through contractual rights rather than fee simple interests, we determine the value of the use of these assets based on the relative fair value of the assets after considering the contractual rights and the fair value of similar assets. Assets acquired under these contractual rights are classified as intangibles and amortized on a straight-line basis over the shorter of the contractual term or the estimated useful life of the asset. Contractual rights related to land or air rights that are substantively separated from depreciating assets are amortized over the life of the contractual term or, if no term is provided, are classified as indefinite-lived intangibles. Intangible assets are evaluated at each reporting period to determine whether the indefinite and finite useful lives are appropriate. We determine in-place lease values based on our evaluation of the specific characteristics of each tenant’s lease and our overall relationship with that respective tenant by applying a fair value model. The estimates of fair value of in-place leases include an estimate of carrying costs during the expected lease up periods for the respective leasable area considering current market conditions. In estimating fair value of in-place leases, we consider items such as real estate taxes, insurance, leasing commissions, tenant improvements and other operating expenses to execute similar deals as well as projected rental revenue and carrying costs during the expected lease up period. We amortize the value of in-place leases acquired to expense over the remaining term of the leases. The in-place leases are amortized over the remaining term of the in-place leases, approximately a six month term for multifamily in-place leases and terms ranging from three to 20 years for retail in-place leases. We determine the value of above-market and below-market in-place leases for acquired properties based on the present value (using an interest rate that reflects the risks associated with the leases acquired) of the difference between (1) the contractual amounts to be paid pursuant to the in-place leases and (2) estimates of current market lease rates for the corresponding in-place leases, measured over a period equal to (i) the remaining non-cancelable lease term for above-market leases, or (ii) the remaining non-cancelable lease term plus any fixed rate renewal options for below-market leases. We record the fair value of above-market and below-market leases as intangible assets or intangible liabilities, respectively, and amortize them as an adjustment to rental income over the above determined lease term. Given the short-term nature of multifamily leases, the value of above-market or below-market in-place leases are generally not material. We determine the value of other contractual rights based on our evaluation of the specific characteristics of the underlying contracts and by applying a fair value model to the projected cash flows or usage rights that considers the timing and risks associated with the cash flows or usage. We amortize the value of finite contractual rights over the remaining contract period. Indefinite-lived contractual rights are not amortized but are evaluated for impairment. We determine the fair value of assumed debt by calculating the net present value of the scheduled debt service payments using interest rates for debt with similar terms and remaining maturities that management believes we could obtain. Any difference between the fair value and stated value of the assumed debt is recorded as a discount or premium and amortized over the remaining life of the loan. Initial valuations are subject to change until our information is finalized, which is no later than 12 months from the acquisition date. We have had no significant valuation changes for acquisitions prior to December 31, 2015 . Developments We capitalize project costs related to the development and construction of real estate (including interest, real estate taxes, insurance, and other direct costs associated with the development) as a cost of the development. Indirect project costs not clearly related to development and construction are expensed as incurred. Indirect project costs that clearly relate to development and construction are capitalized and allocated to the developments to which they relate. For each development, capitalization begins when we determine that the development is probable and significant development activities are underway. We suspend capitalization at such time as significant development activity ceases, but future development is still probable. We cease capitalization when the developments or other improvements, including any portion, are completed and ready for their intended use, or if the intended use changes such that capitalization is no longer appropriate. Developments or improvements are generally considered ready for intended use when the certificates of occupancy have been issued and the units become ready for occupancy. Depreciation Buildings are depreciated over their estimated useful lives ranging from 25 to 35 years using the straight-line method. Improvements are depreciated over their estimated useful lives ranging from 3 to 15 years using the straight-line method. Properties classified as held for sale are not depreciated. Depreciation of developments begins when the development is substantially completed and ready for its intended use. Repairs and Maintenance Expenditures for ordinary repairs and maintenance costs are charged to expense as incurred. |
Investment in Unconsolidated Real Estate Joint Venture | Investment in Unconsolidated Real Estate Joint Venture We and our Co-Investment Ventures account for investments in unconsolidated real estate joint ventures using the equity method of accounting because we exercise significant influence over, but do not control, these entities. These investments are initially recorded at cost, including any acquisition costs, and are adjusted for our share of equity in earnings and distributions. We report our share of income and losses based on our economic interests in the entities. We amortize any excess of the carrying value of our investments in joint ventures over the book value of the underlying equity over the estimated useful lives of the underlying operating property, which represents the assets to which the excess is most clearly related. When we or our Co-Investment Ventures acquire a controlling interest in a previously noncontrolled investment, a gain or loss on revaluation of equity is recognized for the differences between the investment’s carrying value and fair value. |
Impairment of Real Estate Related Assets and Investments in Unconsolidated Real Estate Joint Ventures | Impairment of Real Estate Related Assets and Investments in Unconsolidated Real Estate Joint Ventures If events or circumstances indicate that the carrying amount of the property may not be recoverable, we make an assessment of the property’s recoverability by comparing the carrying amount of the asset to our estimate of the undiscounted future operating cash flows expected to be generated over the holding period of the asset including its eventual disposition. If the carrying amount exceeds the aggregate undiscounted future operating cash flows, we recognize an impairment loss to the extent the carrying amount exceeds the estimated fair value of the property. In addition, we evaluate indefinite-lived intangible assets for possible impairment at least annually by comparing the fair values with the carrying values. The fair value of intangibles is generally estimated by valuation of similar assets. For real estate we own through an investment in an unconsolidated real estate joint venture or other similar real estate investment structure, at each reporting date we compare the estimated fair value of our real estate investment to the carrying value. An impairment charge is recorded to the extent the fair value of our real estate investment is less than the carrying amount and the decline in value is determined to be other than a temporary decline. |
Assets Held for Sale and Discontinued Operations | Assets Held for Sale and Discontinued Operations Prior to January 1, 2014, when we had no involvement after the sale of a multifamily community, the multifamily community sold was reported as a discontinued operation. Effective as of January 1, 2014, we elected to early adopt the revised guidance regarding discontinued operations. For sales of real estate or assets classified as held for sale after January 1, 2014, we evaluate whether the disposition will have a major effect on our operations and financial results and will therefore qualify as a strategic shift. If the disposition represents a strategic shift, it will be classified as discontinued operations in our consolidated statements of operations for all periods presented. If the disposition does not represent a strategic shift, it will be presented in continuing operations in our consolidated statements of operations. We classify multifamily communities as held for sale when certain criteria are met, in accordance with GAAP. At that time, we present the assets and obligations associated with the real estate held for sale separately in our consolidated balance sheet, and we cease recording depreciation and amortization expense related to that multifamily community. Real estate held for sale is reported at the lower of its carrying amount or its estimated fair value less estimated costs to sell. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider investments in bank deposits, money market funds and highly-liquid cash investments with original maturities of three months or less to be cash equivalents. As of December 31, 2015 and 2014 , cash and cash equivalents include $32.5 million and $42.0 million , respectively, held by the Master Partnership and individual Co-Investment Ventures that are available only for use in the business of the Master Partnership and the other individual Co-Investment Ventures. Cash held by the Master Partnership and individual Co-Investment Ventures is not restricted to specific uses within those entities. However, the terms of the joint venture agreements define the timing and magnitude of the distribution of those funds to us or limit our use of them for our general corporate purposes. Cash held by the Master Partnership and individual Co-Investment Ventures is distributed from time to time to the Company and to the other Co-Investment Venture partners in accordance with the applicable Co-Investment Venture governing agreement, which may not be the same as the stated effective ownership interest. Cash distributions received by the Company from the Master Partnership and individual Co-Investment Ventures are then available for our general corporate purposes. |
Noncontrolling Interests | Noncontrolling Interests Redeemable noncontrolling interests are comprised of our consolidated Co-Investment Venture partners’ interests in multifamily communities where we believe it is probable that we will be required to purchase the partner’s noncontrolling interest. We record obligations under the redeemable noncontrolling interest initially at the higher of (a) fair value or (b) the redemption value with subsequent adjustments. The redeemable noncontrolling interests are temporary equity not within our control and are presented in our consolidated balance sheet outside of permanent equity between debt and equity. The determination of the redeemable classification requires analysis of contractual provisions and judgments of redemption probabilities. Non-redeemable noncontrolling interests are comprised of our consolidated Co-Investment Venture partners’ interests in multifamily communities as well as preferred cumulative, non-voting membership units (“Preferred Units”) issued by subsidiary REITs. We record these noncontrolling interests at their initial fair value, adjusting the basis prospectively for their share of the respective consolidated investments’ net income or loss or equity contributions and distributions. These noncontrolling interests are not redeemable by the equity holders and are presented as part of permanent equity. Income and losses are allocated to the noncontrolling interest holder based on its economic interests. Transactions involving a partial sale or acquisition of a noncontrolling interest that does not result in a change of control are recorded at carrying value with no recognition of gain or loss. Any differences between the cash received or paid (net of any direct expenses) and the change in noncontrolling interest is recorded as a direct charge to additional paid-in capital. Transactions involving a partial sale or acquisition of a controlling interest resulting in a change in control are recorded at fair value with recognition of a gain or loss. |
Other Assets | Other Assets Other assets primarily include notes receivable, deferred financing costs, equity method investments, accounts receivable, restricted cash, interest rate caps, prepaid assets and deposits. We evaluate whether notes receivable are loans, investments in joint ventures or acquisitions of real estate based on a review of any rights to participate in expected residual profits and other equity and loan characteristics. Deferred financing costs are recorded at cost and are amortized using a straight-line method that approximates the effective interest method over the life of the related debt. As of and for the years ended December 31, 2015 and 2014 , all of our notes receivable were appropriately accounted for as loans. We account for our derivative financial instruments, all of which are interest rate caps, at fair value. We use interest rate cap arrangements to manage our exposure to interest rate changes. We have not designated any of these derivatives as hedges for accounting purposes, and accordingly, changes in fair value are recognized in earnings. |
Revenue Recognition | Revenue Recognition Rental income related to leases is recognized on an accrual basis when due from residents or commercial tenants, generally on a monthly basis. Rental revenues for leases with uneven payments and terms greater than one year are recognized on a straight-line basis over the term of the lease. Any deferred revenue is classified as a liability on the consolidated balance sheet and recognized on a straight-line basis as income over its contractual term. Interest income is generated primarily on notes receivable and cash balances. Interest income is recorded on an accrual basis as earned. |
Acquisition Costs | Acquisition Costs Non-reimbursed acquisition costs for business combinations, which are expected to include most consolidated property acquisitions other than land acquisitions, are expensed when it is probable that the transaction will be accounted for as a business combination and the purchase will be consummated. Our acquisition costs related to investments in unconsolidated real estate joint ventures are capitalized as a part of our basis in the investment. Acquisition costs related to unimproved or non-operating land, primarily related to developments, are capitalized. Through June 30, 2014, pursuant to our advisory management agreement, Behringer was obligated to reimburse us for all investment-related expenses that the Company pursued but ultimately did not consummate. During the period, prior to the determination of its status, amounts incurred were recorded in other assets. Acquisition expenses are recorded net of any reimbursements when probable of recovery. |
Transition Expenses | Transition Expenses Transition expenses include expenses directly and specifically related to our transition to self-management, primarily including legal, financial advisors, consultants, costs of the Company’s special committee of the board of directors (the “Special Committee”), general transition services (primarily related to staffing, name change, notices, transition-related insurance, information technology and facilities), expenses related to our listing on the NYSE and payments to Behringer in connection with the transition to self-management discussed further in Note 13, “Transition Expenses.” |
Income Taxes | Income Taxes We have elected to be taxed as a REIT under the Code and have qualified as a REIT since the year ended December 31, 2007. To qualify as a REIT, we must meet a number of organizational and operational requirements, including a requirement that we distribute at least 90% of our REIT taxable income to our stockholders. As a REIT, we generally will not be subject to federal income tax at the corporate level. We intend to operate in such a manner as to continue to qualify for taxation as a REIT, but no assurance can be given that we will operate in a manner so as to remain qualified as a REIT. Beginning in 2013, taxable income from certain non-REIT activities is managed through a taxable REIT subsidiary (“TRS”) and is subject to applicable federal, state, and local income and margin taxes. We have no significant taxes associated with our TRS for the years ended December 31, 2015 , 2014 or 2013 . We have evaluated the current and deferred income tax related to state taxes with respect to which we do not have a REIT exemption, and we have no significant tax liability or benefit as of December 31, 2015 or 2014 . The carrying amounts of our assets and liabilities for financial statement purposes differ from our basis for federal income taxes due to tax accounting in Co-Investment Ventures, fair value accounting for business combinations, straight lining of lease and related agreements and differing depreciation methods. The primary asset and liability balance sheet accounts with differences are real estate, intangibles, other assets, mortgages and notes payable and deferred revenues, primarily lease revenues, net. As a result of these differences, our net federal income tax basis exceeds the carrying value for financial statement purposes as of December 31, 2015 by approximately $19.5 million . We recognize the financial statement benefit of an uncertain tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. |
Concentration of Credit Risk | Concentration of Credit Risk We invest our cash and cash equivalents among several banking institutions and money market accounts in an attempt to minimize exposure to any one of these entities. As of December 31, 2015 and 2014 , we had cash and cash equivalents deposited in certain financial institutions in excess of federally-insured levels. We regularly monitor the financial condition of these financial institutions and believe that we are not exposed to any significant credit risk in cash and cash equivalents. |
Share-based Compensation | Share-based Compensation We have a stock-based incentive award plan for our employees and directors. Compensation expense associated with restricted stock units is recognized in general and administrative expenses in our consolidated statements of operations. We measure stock-based compensation at the estimated fair value on the grant date, net of estimated forfeitures, and recognize the amortization of compensation expense over the requisite service period. |
Earnings per Share | Earnings per Share Basic earnings per share is calculated by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by adjusting basic earnings per share for the dilutive effect of the assumed exercise of securities, including the effect of shares issuable under our preferred stock and our stock-based incentive plans. Our unvested share-based awards are considered participating securities and are reflected in the calculation of diluted earnings per share. During periods of net loss, the assumed exercise of securities is anti-dilutive and is not included in the calculation of earnings per share. During 2015, the dilutive impact was less than $0.01, and during 2014, any common stock equivalents were anti-dilutive. There were no common stock equivalents during 2013. For all periods presented, the convertible preferred stock was excluded from the calculation of earnings per share because the effect would not be dilutive. However, based on changing market conditions, the outstanding convertible preferred stock could be dilutive in future periods. |
Redemptions of Common Stock | Redemptions of Common Stock We account for the possible redemption of our shares by classifying securities that are convertible for cash at the option of the holder outside of equity. We do not reclassify the shares to be redeemed from equity to a liability until such time as the redemption has been formally approved by our board of directors. The portion of the redeemed common stock in excess of the par value is charged to additional paid-in capital. |
Reportable Segments | Reportable Segments Our current business primarily consists of investing in and operating multifamily communities. Substantially all of our consolidated net income (loss) is from investments in real estate properties that we wholly own or own through Co-Investment Ventures, the latter of which may be accounted for under the equity method of accounting. Our management evaluates operating performance on an individual investment level. However, as each of our investments has similar economic characteristics in our consolidated financial statements, the Company is managed on an enterprise-wide basis with one reportable segment. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts included in the financial statements and accompanying notes to consolidated financial statements. These estimates include such items as: the purchase price allocations for real estate and other acquisitions; impairment of long-lived assets, notes receivable and equity-method real estate investments; fair value evaluations; earning recognition of noncontrolling interests and equity in earnings of investments in unconsolidated real estate joint ventures; depreciation and amortization; share-based compensation measurements; and recognition and timing of transition expenses. Actual results could differ from those estimates. |
Reclassification | Reclassifications Certain financial information on the Consolidated Statements of Operations for the years ended December 31, 2014 and 2013 have been revised to conform to the current year presentation. For the years ended December 31, 2014 and 2013 , $2.5 million and $1.8 million , respectively, of amortization of deferred financing costs previously reported in depreciation and amortization are now included in a separate line item. |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued updated guidance with respect to revenue recognition. The revised guidance outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The revised guidance will replace most existing revenue and real estate sale recognition guidance in GAAP when it becomes effective. The standard specifically excludes lease contracts, which is our primary recurring revenue source. The revised guidance allows for the use of either the full or modified retrospective transition method. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2017. Early adoption is permitted for annual periods beginning after December 15, 2016. We have not yet selected a transition method and are currently evaluating the effect that the adoption of the revised guidance will have on our consolidated financial statements and related disclosures. In June 2014, the FASB issued an update which clarifies that entities should treat performance targets that can be met after the requisite service period of a share-based payment award as performance conditions that affect vesting. The compensation expense related to such awards will be delayed until it becomes probable that the performance target will be met. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2015, with early adoption permitted, and may be applied either prospectively or retrospectively. The adoption of this guidance will not have a material impact on our consolidated financial statements. In August 2014, the FASB issued guidance regarding management’s responsibility in evaluating whether there is a substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2016. We do not believe the adoption of this guidance will have a material impact on our disclosures. In January 2015, the FASB issued guidance simplifying income statement presentation by eliminating the concept of extraordinary items. An entity will no longer be allowed to separately disclose extraordinary items, net of tax, in the income statement after income from continuing operations if an event or transaction is unusual in nature and occurs infrequently. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2015, with early adoption permitted and may be applied either prospectively or retrospectively. The adoption of this guidance will not have a material impact on our consolidated financial statements. In February 2015, the FASB issued updated guidance related to accounting for consolidation of certain legal entities. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2015, with early adoption permitted. The adoption of this guidance will not have a material impact on our financial statements, but additional disclosures will be required related to certain of our entities that were determined to be a VIE. In April 2015, the FASB issued guidance requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This guidance is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption of this guidance is permitted for financial statements that have not been previously issued, and an entity should apply the new guidance on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. The adoption of this guidance will change the classification of debt issuance costs on the consolidated balance sheet but will not otherwise impact our consolidated financial statements. |
Organization and Business (Tabl
Organization and Business (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of the number of each type of Co-Investment Venture and the entity's effective ownership ranges | The table below presents a summary of our Co-Investment Ventures as of December 31, 2015 and 2014 . The effective ownership ranges are based on our participation in the distributable operating cash from our investment in the underlying multifamily community as of the dates indicated. This effective ownership is indicative of, but may differ from, percentages for distributions, contributions or financing requirements for each respective Co-Investment Venture. Unless otherwise noted, all are reported on the consolidated basis of accounting. December 31, 2015 December 31, 2014 Co-Investment Structure Number of Multifamily Communities Our Effective Ownership Number of Multifamily Communities Our Effective Ownership PGGM CO-JVs (a) 23 50% to 70% 30 50% to 74% MW CO-JVs 14 55% 14 55% Developer CO-JVs 2 100% 2 100% Total 39 46 (a) Includes one unconsolidated investment as of December 31, 2014 , which included a debt investment that was repaid in 2015. In May 2015, we also acquired PGGM’s interests in seven PGGM CO-JVs. See Note 11, “Noncontrolling Interests” for further information. As of December 31, 2015 and 2014 , the PGGM CO-JVs include Developer Partners in 18 and 19 multifamily communities, respectively. |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Schedule of amounts recognized for major assets acquired and liabilities assumed, including a reconciliation to cash consideration as of the business combination date | The amounts recognized for major assets acquired and liabilities assumed, including a reconciliation to cash consideration as of the business combination dates, are as follows (in millions): 2015 Acquisitions Land $ 23.9 Building and improvements 141.7 Accrued liabilities (0.4 ) Cash consideration $ 165.2 |
Schedule of amounts recognized for revenues and net loss attributable to common stockholders from the business combination | Certain operating information for the periods from the business combination dates to December 31, 2015 is as follows (in millions): For the Periods to December 31, 2015 Rental revenues $ 1.4 Acquisition expenses 0.6 Depreciation and amortization 1.8 Net loss attributable to common stockholders (2.3 ) |
Real Estate Investments (Tables
Real Estate Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Real Estate [Abstract] | |
Schedule of major components of real estate investments and intangibles and related accumulated depreciation and amortization | As of December 31, 2015 and 2014 , major components of our real estate investments and intangibles and related accumulated depreciation and amortization were as follows (in millions): December 31, 2015 December 31, 2014 Buildings Intangibles Buildings Intangibles and In-Place Other and In-Place Other Improvements Leases Contractual Improvements Leases Contractual Cost $ 2,627.7 $ 37.1 $ 24.2 $ 2,033.8 $ 40.7 $ 25.6 Less: accumulated depreciation and amortization (357.0 ) (34.9 ) (8.3 ) (280.4 ) (38.3 ) (6.5 ) Net $ 2,270.7 $ 2.2 $ 15.9 $ 1,753.4 $ 2.4 $ 19.1 |
Schedule of anticipated amortization associated with in-place lease and other contractual intangibles | Anticipated amortization associated with lease and other contractual intangibles for each of the following five years is as follows (in millions): Anticipated Amortization Year of Intangibles 2016 $ 1.1 2017 1.1 2018 0.5 2019 0.5 2020 0.5 |
Schedule of Capitalized Interest, Taxes and Overhead Related to Developments | For the years ended December 31, 2015 , 2014 , and 2013 , we capitalized the following amounts of interest, real estate taxes and direct overhead related to our developments (in millions): For the Year Ended 2015 2014 2013 Interest $ 16.5 $ 17.8 $ 10.5 Real estate taxes 4.1 4.2 2.4 Direct overhead 0.6 0.8 0.5 |
Schedule of real estate dispositions | The following table presents our sale of real estate for the years ended December 31, 2015 and 2014 (in millions); there were no sales of real estate reported in continuing operations for the year ended December 31, 2013 : Date of Sale Multifamily Community and Location Sales Contract Price Net Cash Proceeds Gains on Sales of Real Estate For the Year Ended December 31, 2015 July 2015 Uptown Post Oak — Houston, TX $ 90.1 $ 88.3 $ 34.4 June 2015 Burnham Pointe — Chicago, IL 126.0 123.6 48.6 June 2015 Shady Grove — Rockville, MD (a) 38.5 38.4 — Total $ 254.6 $ 250.3 $ 83.0 For the Year Ended December 31, 2014 February 2014 Tupelo Alley — Portland, OR $ 52.9 $ 33.4 $ 16.4 (a) In May 2015, we recorded an impairment of $3.1 million based on the Company’s decision to sell the development at an amount below the carrying value. The impairment, which was primarily due to certain costs capitalized for GAAP not expected to be recovered in a sale, is included in “Investment and other development expenses” on the consolidated statement of operations. In June 2015, we closed on the sale of the development to a group led by the Developer Partner for net proceeds of $38.4 million , the development’s net carrying value at the date of sale. |
Net income related to sale of multifamily community | The following table presents net income related to the multifamily communities sold in 2015 and 2014 , for the years ended December 31, 2015 , 2014 and 2013 , and includes the gains on sale of real estate (in millions): For the Year Ended 2015 2014 2013 Net income (loss) from multifamily communities sold $ 83.5 $ 22.9 $ 5.7 Less: net income attributable to noncontrolling interest — (7.2 ) — Net income (loss) attributable to common stockholders $ 83.5 $ 15.7 $ 5.7 |
Schedule of real estate dispositions, discontinued operations | The following table presents our sales of real estate for the year ended December 31, 2013 (in millions), all of which are reported as discontinued operations: Date of Sale Multifamily Community and Location Sales Contract Price Net Cash Proceeds Gains on Sales of Real Estate For the Year Ended December 31, 2013 September 2013 Grand Reserve Orange — Orange, CT $ 35.3 $ 34.3 $ 12.8 June 2013 Halstead — Houston, TX 43.5 42.2 11.9 May 2013 Cyan/PDX (“Cyan”) — Portland, OR 95.8 95.5 19.2 March 2013 The Reserve at John’s Creek Walk — Johns Creek, GA 37.3 33.3 6.9 Total $ 211.9 $ 205.3 $ 50.8 |
Schedule showing the results of operations and gains on sale of real estate that have been classified as discontinued operations in the accompanying consolidated statements of operations | The table below includes the major classes of line items constituting net loss from discontinued operations, gains on sale of real estate, and depreciation and amortization and capital expenditures for the year ended December 31, 2013 for the multifamily communities that have been classified as discontinued operations in the accompanying consolidated statement of operations (in millions): For the Year Ended December 31, 2013 Rental revenue $ 8.0 Expenses Property operating expenses 2.5 Real estate taxes 1.1 Interest expense 1.0 Depreciation and amortization 3.3 Total expenses 7.9 Loss on early extinguishment of debt (0.8 ) Loss from discontinued operations (0.7 ) Income attributable to noncontrolling interests (6.9 ) Loss from discontinued operations attributable to common stockholders $ (7.6 ) Gains on sales of real estate $ 50.8 Capital expenditures $ 0.2 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Assets [Abstract] | |
Schedule of components of other assets | The components of other assets as of December 31, 2015 and 2014 are as follows (in millions): December 31, 2015 December 31, 2014 Notes receivable, net (a) $ 36.5 $ 59.8 Deferred financing costs, net 15.2 17.4 Resident, tenant and other receivables 12.2 14.0 Escrows and restricted cash 8.7 8.0 Prepaid assets, deposits and other assets 7.6 6.1 Investment in unconsolidated real estate joint venture (b) — 5.0 Total other assets $ 80.2 $ 110.3 (a) Notes receivable include mezzanine loans, primarily related to multifamily development projects. As of December 31, 2015 , the weighted average interest rate is 15.0% and the remaining years to scheduled maturity is 0.9 years. The borrowers generally have options to prepay prior to maturity or to extend the maturity for one to two years. (b) As of December 31, 2014 , we had a $5.0 million investment in an unconsolidated joint venture, the Custer PGGM CO-JV. The primary asset of the Custer PGGM CO-JV was a mezzanine loan collateralized by the development of a 444 unit multifamily community in Allen, Texas, a suburb of Dallas. The mezzanine loan was repaid during May 2015. |
Leasing Activity (Tables)
Leasing Activity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Schedule of future minimum base rental payments due to the entity under non-cancelable retail leases | Future minimum base rental receipts due to us under these non-cancelable retail leases in effect as of December 31, 2015 are as follows (in millions): Future Minimum Year Lease Receipts 2016 $ 3.5 2017 3.6 2018 3.5 2019 3.4 2020 3.3 Thereafter 22.7 Total $ 40.0 |
Mortgages and Notes Payable (Ta
Mortgages and Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of carrying amounts of the mortgages and notes payable classified by whether the obligation is of the parent company or the applicable consolidated Co-Investment Venture | The following table summarizes the carrying amounts of the mortgages and notes payable classified by whether the obligation is ours or that of the applicable consolidated Co-Investment Venture as of December 31, 2015 and 2014 (dollar amounts in millions and monthly LIBOR at December 31, 2015 is 0.43% ): As of December 31, 2015 December 31, December 31, Weighted Average 2015 2014 Interest Rates Maturity Dates Company level (a) Fixed rate mortgages payable $ 297.3 $ 87.2 3.88% 2018 to 2020 Total Company level 297.3 87.2 Co-Investment Venture level - consolidated (b) Fixed rate mortgages payable 631.6 827.7 3.49% 2016 to 2020 Variable rate mortgage payable 11.6 12.0 Monthly LIBOR + 2.35% 2017 Fixed Rate construction loans payable (c) Operating 29.2 29.0 4.31% 2016 (e) In Construction 44.5 28.0 4.00% 2018 Variable rate construction loans payable (d) Operating 355.3 87.3 Monthly LIBOR + 2.12% 2016 to 2018 In Construction 101.0 111.0 Monthly LIBOR + 2.02% 2017 to 2018 1,173.2 1,095.0 Plus: unamortized adjustments from business combinations 2.5 4.3 Total Co-Investment Venture level - consolidated 1,175.7 1,099.3 Total consolidated mortgages and notes payable $ 1,473.0 $ 1,186.5 (a) Company level debt is defined as debt that is a direct obligation of the Company or one of the Company’s wholly owned subsidiaries. (b) Co-Investment Venture level debt is defined as debt that is an obligation of the Co-Investment Venture and not an obligation or contingency for us. (c) Includes two loans with total commitments of $82.7 million . One of the construction loans has an option to convert into a permanent loan with a maturity of 2023 and the other includes a one to two year extension option. As of December 31, 2015 , there is $8.9 million remaining to draw under the construction loans. We may elect not to fully draw down any unfunded commitment. (d) Includes eleven loans with total commitments of $548.7 million . As of December 31, 2015 , the Company has partially guaranteed ten of these loans with total commitments of $528.1 million , and as of December 31, 2015 , $82.8 million is recourse to the Company. Our percentage guarantee on each of these loans ranges from 10% to 25% . These loans include one to two year extension options. As of December 31, 2015 , there is $92.5 million remaining to draw under the construction loans. We may elect not to fully draw down any unfunded commitment. (e) Construction loan has an extension right to convert the loan to a permanent loan and extend the maturity to 2023. |
Schedule of contractual principal payments for the entity's mortgages and notes payable for the five subsequent years and thereafter | As of December 31, 2015 , contractual principal payments for our mortgages and notes payable for the five subsequent years and thereafter are as follows (in millions): Co-Investment Total Year Company Level Venture Level Consolidated 2016 $ 4.7 $ 181.3 $ 186.0 2017 5.8 298.2 304.0 2018 153.4 381.3 534.7 2019 79.5 141.0 220.5 2020 53.9 171.4 225.3 Thereafter — — — Total $ 297.3 $ 1,173.2 1,470.5 Add: unamortized adjustments from business combinations 2.5 Total mortgages and notes payable $ 1,473.0 |
Credit Facility Payable (Tables
Credit Facility Payable (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Line of Credit Facility [Abstract] | |
Schedule of Line of Credit Facilities | The following table presents the amounts outstanding under the two credit facilities as of December 31, 2015 and 2014 (dollar amounts in millions, and monthly LIBOR at December 31, 2015 was 0.43% ): Balance Outstanding December 31, 2015 December 31, 2014 Interest Rate as of December 31, 2015 Maturity Date $150 Million Facility $ 49.0 $ 10.0 Monthly LIBOR + 2.08% April 1, 2017 $200 Million Facility — — Monthly LIBOR + 2.50% January 14, 2019 Total $ 49.0 $ 10.0 |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Noncontrolling Interest [Abstract] | |
Schedule of non-redeemable, noncontrolling interests | As of December 31, 2015 and 2014 , non-redeemable noncontrolling interests (“NCI”) consisted of the following, including the direct and non-direct noncontrolling interests ownership ranges where applicable (dollar amounts in millions): December 31, 2015 December 31, 2014 Effective Effective Amount NCI % (a) Amount NCI % (a) PGGM Co-Investment Partner $ 332.0 30% to 45% $ 390.5 26% to 45% MW Co-Investment Partner 123.7 45% 144.9 45% Developer Partners 4.0 0% 3.4 0% Subsidiary preferred units 2.1 (b) 1.9 (b) Total non-redeemable NCI $ 461.8 $ 540.7 (a) Effective noncontrolling interest percentage is based upon the noncontrolling interest’s participation in distributable operating cash. This effective ownership is indicative of, but may differ from, percentages for distributions, contributions or financing requirements. (b) The effective NCI for the preferred units is not meaningful and the preferred units have no voting rights. |
Schedule of distributions to noncontrolling interests | For the years ended December 31, 2015 , 2014 and 2013 , we paid the following distributions to noncontrolling interests (in millions): For the Year Ended December 31, 2015 2014 2013 Distributions paid to noncontrolling interests: Operating activities $ 17.7 $ 22.5 $ 25.0 Investing and financing activities 30.8 25.5 26.3 Total $ 48.5 $ 48.0 $ 51.3 |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net | The following table summarizes each of the multifamily community interests related to the acquisition of noncontrolling and controlling interests: Our Ownership Interest (a) Multifamily Community and Location Total Units Pre-Acquisition Acquired Interest Post-Acquisition Equity investments: The District Universal Boulevard, Orlando, FL 425 55.5 % 44.5 % 100 % Veritas, Henderson, NV (b) 430 51.9 % 41.6 % 93.5 % The Cameron, Silver Spring, MD 325 55.5 % 44.5 % 100 % Skye 2905, Denver, CO 400 55.5 % 44.5 % 100 % Grand Reserve, Dallas, TX 149 74.4 % 25.6 % 100 % Stone Gate, Marlborough, MA 332 55.5 % 44.5 % 100 % 2,061 Debt investment: Jefferson Creekside, Allen, TX 444 55.5 % 44.5 % 100 % (a) Our ownership interest is based on our share of contributed capital. This ownership interest may differ over time from percentages for distributions, contributions or financing requirements for each respective CO-JV. The post-acquisition effective ownership interests based on our participation in distributable cash from the CO-JVs are the same as those presented based on contributed capital, except for Veritas where our post-acquisition effective ownership based on our current participation in distributable cash is 100%. Each of the equity investments was previously accounted for on the consolidated method of accounting with the same accounting method post-acquisition. The debt investment was previously accounted for on the equity method of accounting and post-acquisition will be accounted for on the consolidated method of accounting. (b) The remaining 6.5% is owned by a Developer Partner. |
Schedule of redeemable, noncontrolling interests (NCI) | As of December 31, 2015 and 2014 , redeemable noncontrolling interests (“NCI”) consisted of the following (dollar amounts in millions): December 31, 2015 December 31, 2014 Effective Effective Amount NCI % (a) Amount NCI % (a) Developer Partners $ 29.1 0% to 10% $ 32.0 0% to 10% (a) Effective noncontrolling interest percentage is based upon the noncontrolling interest’s participation in distributable operating cash. This effective ownership is indicative of, but may differ from, percentages for distributions, contributions or financing requirements. For Co-Investment Ventures where the developer’s equity has been returned, the effective noncontrolling interest percentage is shown as zero. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Schedule of Nonvested Restricted Stock Units Activity | The following table includes the number of restricted stock units granted, exercised (including units used to satisfy employee income tax withholding) and outstanding as of and for the years ended December 31, 2015 and 2014 . No restricted stock units were granted in 2013. 2015 2014 Units Weighted Average Grant Date Fair Value Units Weighted Average Grant Date Fair Value Outstanding January 1, 248,691 $ 10.03 — $ — Granted 482,846 9.47 248,691 10.03 Exercised (170,632 ) 9.71 — — Forfeited (11,409 ) 9.64 — — Outstanding December 31, 549,496 $ 9.64 248,691 $ 10.03 Vested restricted stock units 64,437 $ 9.90 11,356 $ 10.03 Unvested restricted stock units 485,059 $ 9.61 237,335 $ 10.03 |
Nonvested Restricted Stock Shares Activity | The following is a summary of the restricted stock granted, forfeited and outstanding as of and for the year ended December 31, 2015 . No restricted stock was granted in 2014 or 2013 : 2015 Shares Weighted Average Grant Date Fair Value Outstanding January 1, — $ — Granted 25,746 9.21 Forfeited (4,878 ) 9.21 Outstanding December 31, 20,868 $ 9.21 Unvested restricted stock 20,868 $ 9.21 |
Dividends Declared | The following table presents the regular distributions declared for the years ended December 31, 2015 , 2014 and 2013 (in millions, except per share amounts): For the Year Ended 2015 2014 2013 Declared (a) Declared per Share (a) Declared (a) Declared per Share (a) Declared (a) Declared per Share (a) Fourth quarter $ 12.5 $ 0.075 $ 12.5 $ 0.075 $ 14.9 $ 0.089 Third quarter 12.5 0.075 14.9 0.088 14.9 0.088 Second quarter 12.5 0.075 14.7 0.087 14.7 0.087 First quarter 12.5 0.075 14.6 0.086 14.5 0.086 Total $ 50.0 $ 0.300 $ 56.7 $ 0.336 $ 59.0 $ 0.350 (a) Represents distributions accruing during the period. Beginning with the fourth quarter of 2014, the board of directors authorizes regular distributions to be paid to stockholders of record with respect to a single record date each quarter. Prior to the fourth quarter of 2014, regular distributions accrued on a daily basis at a daily amount of $0.000958904 ( $0.35 annualized) per share of common stock and were paid in the following month. |
Federal Income Tax Classification of Distributions | During 2015 , 2014 and 2013 , our distributions were classified as follows for federal income tax purposes: 2015 2014 2013 Ordinary income 58 % 42 % 36 % Capital gains 23 % 19 % 32 % Section 1250 recapture capital gains 5 % — % 4 % Return of capital 14 % 39 % 28 % Total 100 % 100 % 100 % |
Transition Expenses (Tables)
Transition Expenses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Transition to Self-Management [Abstract] | |
Schedule of Transition Expenses | The table below represents the components of our transition expenses for the years ended December 31, 2014 and 2013 are as follows (in millions). We did not incur any transition expenses for the year ended December 31, 2015 . For the Year Ended 2014 2013 Special Committee and Company legal and financial advisors $ 0.9 $ 0.7 General transition services: Behringer 2.9 7.9 Other service providers 2.5 0.4 Expenses related to listing on the NYSE 6.4 — Total transition expenses $ 12.7 $ 9.0 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future minimum lease payments | Future minimum lease payments due on our lease commitment payables, primarily related to our corporate office lease which expires in 2024, are as follows (in millions): Future Minimum Lease Payments 2016 $ 0.6 2017 0.9 2018 0.8 2019 0.8 2020 0.8 Thereafter 3.2 Total $ 7.1 |
Fair Value of Derivatives and43
Fair Value of Derivatives and Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value of assets measured at fair value on a recurring basis | The following fair value hierarchy table presents information about our assets measured at fair value on a nonrecurring basis during the year ended December 31, 2015 (in millions): For the Year Ended December 31, 2015 Level 1 Level 2 Level 3 Total Fair Value Gain (Loss) Assets Construction in progress $ — $ 41.2 $ — $ 41.2 $ (3.1 ) Other Assets — 16.6 — 16.6 — $ — $ 57.8 $ — $ 57.8 $ (3.1 ) |
Schedule of carrying amounts and related estimated fair value of mortgage and notes payable | Carrying amounts and the related estimated fair value of our mortgages and notes payable as of December 31, 2015 and 2014 are as follows (in millions): December 31, 2015 December 31, 2014 Carrying Fair Carrying Fair Amount Value Amount Value Mortgages and notes payable $ 1,473.0 $ 1,473.1 $ 1,186.5 $ 1,199.6 |
Related Party Arrangements (Tab
Related Party Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The table below shows the fees and expense reimbursements to Behringer in exchange for such services for the years ended December 31, 2015 , 2014 and 2013 (in millions): For the Year Ended 2015 2014 2013 Acquisition and advisory fees $ — $ 4.3 $ 15.0 Property management fees — 11.3 23.4 Debt financing fees 0.2 2.4 1.5 Asset management fees — 3.8 7.7 Administrative expense reimbursements — 1.0 1.8 Shareholder services (a) — 2.9 — (a) Includes an early termination payment of $2.3 million to Behringer related to our listing on the NYSE. See further discussion in Note 13, “Transition Expenses.” See Note 14, “Commitments and Contingencies” for discussion of litigation with Behringer. |
Supplemental Disclosures of C45
Supplemental Disclosures of Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
Summary of supplemental cash flow information | Supplemental cash flow information for the years ended December 31, 2015 , 2014 and 2013 is summarized below (in millions): For the Year Ended 2015 2014 2013 Supplemental disclosure of cash flow information: Interest paid, net of amounts capitalized of $16.5 million, $17.8 million and $10.5 million in 2015, 2014 and 2013, respectively $ 30.1 $ 20.8 $ 25.8 Non-cash investing and financing activities: Acquisition of a noncontrolling interest — — 9.0 Conversion of note receivable into an equity investment — — 4.9 Funds deposited in escrow related to a development acquisition — 1.5 1.1 Transfer of real estate from construction in progress to operating real estate 679.4 286.6 48.9 Conversion of investment in unconsolidated real estate joint venture into notes receivable 5.0 0.8 9.5 Stock issued pursuant to our DRIP — 20.5 31.0 Distributions payable 12.5 12.5 5.0 Construction costs and other related payables 34.9 92.2 43.7 |
Quarterly Results (unaudited) (
Quarterly Results (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of the unaudited quarterly consolidated financial information | Presented below is a summary of the unaudited quarterly consolidated financial information for the years ended December 31, 2015 and 2014 (in thousands, except per share data): 2015 Quarters Ended March 31 June 30 September 30 December 31 Rental revenues $ 56,643 $ 59,105 $ 59,191 $ 63,129 Income (loss) from continuing operations $ (1,177 ) $ 44,473 $ 30,876 $ (7,489 ) Net income (loss) attributable to common stockholders $ (833 ) $ 49,196 $ 31,362 $ (5,937 ) Basic weighted average shares outstanding 166,509 166,541 166,563 166,628 Diluted weighted average shares outstanding 166,509 167,202 167,260 167,247 Basic and diluted earnings (loss) per share $ (0.01 ) $ 0.29 $ 0.19 $ (0.04 ) 2014 Quarters Ended March 31 June 30 September 30 December 31 Rental revenues $ 50,182 $ 51,047 $ 53,091 $ 54,705 Income (loss) from continuing operations $ 14,476 $ (6,870 ) $ (858 ) $ (6,477 ) Net income (loss) attributable to common stockholders $ 7,423 $ (6,775 ) $ (619 ) $ (6,153 ) Basic weighted average shares outstanding 168,714 168,857 168,780 168,818 Diluted weighted average shares outstanding 168,919 169,096 169,028 169,066 Basic and diluted earnings (loss) per share $ 0.04 $ (0.04 ) $ — $ (0.04 ) |
Organization and Business (Deta
Organization and Business (Details) | 1 Months Ended | 12 Months Ended | |
May. 31, 2015ownership_interest | Dec. 31, 2015investmentcommunityjoint_venture | Dec. 31, 2014investmentcommunityjoint_venture | |
Organization and business | |||
Number of multifamily communities in which the entity has made wholly owned investments or joint venture equity | 56 | ||
Number of stabilized operating properties | 40 | ||
Number of multifamily communities in lease up and development | 16 | ||
Number of wholly owned multifamily communities | 13 | ||
Number of debt investments made by the entity | investment | 4 | ||
Number of wholly owned investments | investment | 17 | ||
Number of multifamily communities in which the entity is having ownership interest through Co-Investment Ventures | investment | 39 | ||
Co-Investment Ventures | |||
Number of co-investment ventures | joint_venture | 39 | 46 | |
Number of unconsolidated joint venture equity investment in multifamily community | investment | 1 | ||
Number of PGGM CO-JVs | ownership_interest | 7 | ||
Minimum Percentage Of Ordinary Taxable Income Distribution Requirement | 90.00% | ||
Corporate Joint Venture | |||
Organization and business | |||
Effective Ownership (as a percent) | 55.00% | ||
PGGM Co JVs | |||
Co-Investment Ventures | |||
Number of co-investment ventures | joint_venture | 23 | 30 | |
Number of Multifamily Communities | 18 | 19 | |
MW CO-JVs | |||
Organization and business | |||
Effective Ownership (as a percent) | 55.00% | 55.00% | |
Co-Investment Ventures | |||
Number of co-investment ventures | joint_venture | 14 | 14 | |
Developer CO-JVs | |||
Organization and business | |||
Effective Ownership (as a percent) | 100.00% | 100.00% | |
Co-Investment Ventures | |||
Number of co-investment ventures | joint_venture | 2 | 2 | |
PGGM Co JVs | |||
Organization and business | |||
General partner percent | 1.00% | ||
PGGM Co JVs | Corporate Joint Venture | |||
Organization and business | |||
Effective Ownership (as a percent) | 45.00% | ||
PGGM | |||
Organization and business | |||
Limited partner percent | 99.00% | ||
Minimum | PGGM Co JVs | |||
Organization and business | |||
Effective Ownership (as a percent) | 50.00% | 50.00% | |
Minimum | PGGM Co JVs | |||
Organization and business | |||
Limited partner percent | 30.00% | 26.00% | |
Maximum | PGGM Co JVs | |||
Organization and business | |||
Effective Ownership (as a percent) | 70.00% | 74.00% | |
Maximum | PGGM Co JVs | |||
Organization and business | |||
Limited partner percent | 45.00% | 45.00% |
Summary of Significant Accoun48
Summary of Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Real Estate and Other Related Intangibles | |||
Amortization of deferred financing costs | $ 4,280 | $ 2,486 | $ 1,814 |
Cash and Cash Equivalents | |||
Cash and cash equivalents held by individual Co-Investment Ventures | $ 32,500 | 42,000 | |
Minimum lease term to recognize rental revenues | 1 year | ||
Income Taxes | |||
Minimum Percentage Of Ordinary Taxable Income Distribution Requirement | 90.00% | ||
Difference in tax bases versus carrying values | $ 19,500 | ||
Number of reportable segments | segment | 1 | ||
Multifamily in-place leases | |||
Real Estate and Other Related Intangibles | |||
Finite-Lived Intangible Asset, Useful Life | 6 months | ||
Minimum | Retail in-place leases | |||
Real Estate and Other Related Intangibles | |||
Finite-Lived Intangible Asset, Useful Life | 3 years | ||
Maximum | Retail in-place leases | |||
Real Estate and Other Related Intangibles | |||
Finite-Lived Intangible Asset, Useful Life | 20 years | ||
Buildings | Minimum | |||
Real Estate and Other Related Intangibles | |||
Estimated useful lives | 25 years | ||
Buildings | Maximum | |||
Real Estate and Other Related Intangibles | |||
Estimated useful lives | 35 years | ||
Improvements | Minimum | |||
Real Estate and Other Related Intangibles | |||
Estimated useful lives | 3 years | ||
Improvements | Maximum | |||
Real Estate and Other Related Intangibles | |||
Estimated useful lives | 15 years | ||
Adjustment | |||
Real Estate and Other Related Intangibles | |||
Amortization of deferred financing costs | 2,500 | 1,800 | |
Adjustment | Depreciation and Amortization | |||
Real Estate and Other Related Intangibles | |||
Amortization of deferred financing costs | $ 2,500 | $ 1,800 |
Business Combinations (Narrativ
Business Combinations (Narrative) (Details) $ in Millions | 1 Months Ended | |
Sep. 30, 2015USD ($)unit | May. 07, 2015unit | |
Business Acquisition [Line Items] | ||
Number of units in real estate property | 2,061 | |
Multifamily Community, San Diego, CA | Ev | ||
Business Acquisition [Line Items] | ||
Number of units in real estate property | 208 | |
Purchase price | $ | $ 84 | |
Multifamily Community, Boca Raton, FL | The Mark | ||
Business Acquisition [Line Items] | ||
Number of units in real estate property | 208 | |
Purchase price | $ | $ 81.7 |
Business Combinations (Assets A
Business Combinations (Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Amounts recognized for major assets acquired and liabilities assumed, including a reconciliation to cash consideration as of the business combination date | |||||||||||
Land | $ 23,900 | $ 23,900 | |||||||||
Building and improvements | 141,700 | 141,700 | |||||||||
Accrued liabilities | (400) | (400) | |||||||||
Cash consideration | 165,200 | 165,200 | |||||||||
Amounts recognized for revenues and net loss from the business combination | |||||||||||
Acquisition expenses | 641 | $ (17) | $ 3,677 | ||||||||
Depreciation and amortization | 102,726 | 93,308 | 84,296 | ||||||||
Net loss attributable to common stockholders | $ (5,937) | $ 31,362 | $ 49,196 | $ (833) | $ (6,153) | $ (619) | $ (6,775) | $ 7,423 | 73,788 | $ (6,124) | $ 29,692 |
Total Acquisitions | |||||||||||
Amounts recognized for revenues and net loss from the business combination | |||||||||||
Rental revenues | 1,400 | ||||||||||
Acquisition expenses | 600 | ||||||||||
Depreciation and amortization | 1,800 | ||||||||||
Net loss attributable to common stockholders | $ (2,300) |
Real Estate Investments (Schedu
Real Estate Investments (Schedule of major components of real estate investments and intangibles and related accumulated depreciation and amortization) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Real Estate Investments | |||
Buildings and improvements | $ 2,627,693 | $ 2,033,819 | |
Less accumulated depreciation | (357,036) | (280,400) | |
Depreciation expense | 99,234 | 89,113 | $ 85,054 |
Intangibles | |||
Net | 18,066 | 21,485 | |
Amortization expense associated with lease intangibles | 3,420 | 4,185 | 2,394 |
In-Place Leases | |||
Intangibles | |||
Cost | 37,100 | 40,700 | |
Less: accumulated depreciation and amortization | (34,900) | (38,300) | |
Net | 2,200 | 2,400 | |
Amortization expense associated with lease intangibles | 3,400 | 4,200 | 2,500 |
Other Contractual | |||
Intangibles | |||
Cost | 24,200 | 25,600 | |
Less: accumulated depreciation and amortization | (8,300) | (6,500) | |
Net | 15,900 | 19,100 | |
Asset management, fee revenue services, and contracts | |||
Intangibles | |||
Net | 7,900 | 9,200 | |
Use rights of a parking garage and site improvements | |||
Intangibles | |||
Net | 6,800 | 6,800 | |
Land air rights | |||
Intangibles | |||
Net | 9,500 | 9,500 | |
Buildings and Improvements | |||
Real Estate Investments | |||
Buildings and improvements | 2,627,700 | 2,033,800 | |
Less accumulated depreciation | (357,000) | (280,400) | |
Net | 2,270,700 | 1,753,400 | |
Depreciation expense | $ 98,800 | $ 88,800 | $ 81,800 |
Real Estate Investments (Sche52
Real Estate Investments (Schedule of anticipated amortization associated with in-place lease and other contractual intangibles) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Anticipated Amortization of Lease Intangibles | |
2,016 | $ 1.1 |
2,017 | 1.1 |
2,018 | 0.5 |
2,019 | 0.5 |
2,020 | $ 0.5 |
Real Estate Investments (Sche53
Real Estate Investments (Schedule of real estate developments) (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2015USD ($)unit | Dec. 31, 2015USD ($)unit | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | May. 07, 2015unit | |
Investment [Line Items] | |||||
Number of units in real estate property | unit | 2,061 | ||||
Purchase price | $ 48.2 | ||||
Interest | 16.5 | $ 17.8 | $ 10.5 | ||
Real estate taxes | 4.1 | 4.2 | 2.4 | ||
Direct overhead | $ 0.6 | $ 0.8 | $ 0.5 | ||
The Mile | |||||
Investment [Line Items] | |||||
Number of units in real estate property | unit | 120 | 120 | |||
Purchase price | $ 48 |
Real Estate Investments (Sche54
Real Estate Investments (Schedule of real estate dispositions) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2015 | May. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Sale of Real Estate [Line Items] | |||||
Sales Contract Price | $ 211,900 | ||||
Net Cash Proceeds | $ 250,311 | $ 33,379 | 205,336 | ||
Gains on sales of real estate | 82,975 | 16,411 | 0 | ||
Impairment related to development | $ 3,100 | 3,128 | 0 | $ 0 | |
Uptown Post Oak — Houston, TX | |||||
Sale of Real Estate [Line Items] | |||||
Sales Contract Price | 90,100 | ||||
Net Cash Proceeds | 88,300 | ||||
Gains on sales of real estate | 34,400 | ||||
Burnham Pointe — Chicago, IL | |||||
Sale of Real Estate [Line Items] | |||||
Sales Contract Price | 126,000 | ||||
Net Cash Proceeds | 123,600 | ||||
Gains on sales of real estate | 48,600 | ||||
Shady Grove — Rockville, MD (a) | |||||
Sale of Real Estate [Line Items] | |||||
Sales Contract Price | 38,500 | ||||
Net Cash Proceeds | $ 38,400 | 38,400 | |||
Gains on sales of real estate | 0 | ||||
Tupelo Alley — Portland, OR | |||||
Sale of Real Estate [Line Items] | |||||
Sales Contract Price | 254,600 | 52,900 | |||
Net Cash Proceeds | 250,300 | 33,400 | |||
Gains on sales of real estate | $ 83,000 | $ 16,400 |
Real Estate Investments (Net in
Real Estate Investments (Net income related to sale of multifamily community) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Real Estate [Abstract] | |||
Net income (loss) from multifamily communities sold | $ 83.5 | $ 22.9 | $ 5.7 |
Less: net income attributable to noncontrolling interest | 0 | (7.2) | 0 |
Net income (loss) attributable to common stockholders | $ 83.5 | $ 15.7 | $ 5.7 |
Real Estate Investments (Sche56
Real Estate Investments (Schedule of real estate dispositions, discontinued operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Sales Contract Price | $ 211,900 | ||
Net Cash Proceeds | $ 250,311 | $ 33,379 | 205,336 |
Gains on sales of real estate | $ 0 | $ 0 | 50,779 |
Grand Reserve Orange — Orange, CT | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Sales Contract Price | 35,300 | ||
Net Cash Proceeds | 34,300 | ||
Gains on sales of real estate | 12,800 | ||
Halstead — Houston, TX | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Sales Contract Price | 43,500 | ||
Net Cash Proceeds | 42,200 | ||
Gains on sales of real estate | 11,900 | ||
Cyan/PDX (“Cyan”) — Portland, OR | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Sales Contract Price | 95,800 | ||
Net Cash Proceeds | 95,500 | ||
Gains on sales of real estate | 19,200 | ||
The Reserve at John’s Creek Walk — Johns Creek, GA | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Sales Contract Price | 37,300 | ||
Net Cash Proceeds | 33,300 | ||
Gains on sales of real estate | $ 6,900 |
Real Estate Investments (Sche57
Real Estate Investments (Schedule showing the results of operations and gains on sale of real estate that have been classified as discontinued operations in the accompanying consolidated statements of operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Real Estate [Abstract] | |||
Rental revenue | $ 8,000 | ||
Expenses | |||
Property operating expenses | 2,500 | ||
Real estate taxes | 1,100 | ||
Interest expense | 1,000 | ||
Depreciation and amortization | 3,300 | ||
Total expenses | 7,900 | ||
Loss on early extinguishment of debt | (800) | ||
Loss from discontinued operations | (700) | ||
Income attributable to noncontrolling interests | (6,900) | ||
Loss from discontinued operations attributable to common stockholders | (7,600) | ||
Gains on sales of real estate | $ 0 | $ 0 | 50,779 |
Capital expenditures | $ 200 |
Variable Interest Entities (Det
Variable Interest Entities (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)loanentity | Dec. 31, 2014USD ($)entity | |
Variable Interest Entities | ||
Number of VIEs having debt | entity | 15 | 15 |
Assets of VIE | $ 1,089,900 | $ 906,900 |
Construction in progress | 126,100 | 582,300 |
Total operating real estate, net | 3,101,170 | 2,860,234 |
Co-Investment ventures | ||
Variable Interest Entities | ||
Total operating real estate, net | $ 943,100 | $ 282,100 |
Minimum | Co-Investment ventures | ||
Variable Interest Entities | ||
Ownership in VIEs (as a percent) | 55.00% | |
Maximum | Co-Investment ventures | ||
Variable Interest Entities | ||
Ownership in VIEs (as a percent) | 100.00% | |
Multifamily community | ||
Variable Interest Entities | ||
Number of VIEs having debt | entity | 12 | |
Construction financing closed by VIEs | $ 577,900 | |
Amount drawn under construction loan | $ 485,400 | |
Construction Loans | ||
Variable Interest Entities | ||
Guarantor Obligations, Number of Loans | loan | 10 | |
Total commitments under guarantee | $ 528,100 | |
Amount outstanding | $ 435,600 | |
Number of non-recourse loans | loan | 2 | |
Construction loan | Minimum | ||
Variable Interest Entities | ||
Percentage guaranteed on loans | 10.00% | |
Construction loan | Maximum | ||
Variable Interest Entities | ||
Percentage guaranteed on loans | 25.00% |
Other Assets (Details)
Other Assets (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($)unit | |
Other Assets [Line Items] | ||
Notes receivable, net | $ 36,500 | $ 59,800 |
Deferred financing costs, net | 15,200 | 17,400 |
Resident, tenant and other receivables | 12,200 | 14,000 |
Escrows and restricted cash | 8,700 | 8,000 |
Prepaid assets, deposits and other assets | 7,600 | 6,100 |
Investment in unconsolidated real estate joint venture (b) | 0 | 5,000 |
Total other assets | $ 80,183 | 110,282 |
Weighted average interest rate on notes receivables (as a percent) | 15.00% | |
Remaining period to scheduled maturity on notes receivables | 11 months 12 days | |
Custer PGGM CO-JV | ||
Other Assets [Line Items] | ||
Investment in unconsolidated real estate joint venture (b) | $ 5,000 | |
Mezzanine loan | Custer PGGM CO-JV | ||
Other Assets [Line Items] | ||
Number of units to be developed (in units) | unit | 444 |
Leasing Activity (Details)
Leasing Activity (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Leases [Abstract] | |
Retail areas as a percentage of total rentable area of the entity's consolidated multifamily communities | 1.00% |
Future Minimum Lease Payments | |
2,016 | $ 3.5 |
2,017 | 3.6 |
2,018 | 3.5 |
2,019 | 3.4 |
2,020 | 3.3 |
Thereafter | 22.7 |
Total | $ 40 |
Mortgages and Notes Payable (De
Mortgages and Notes Payable (Details) | 12 Months Ended | |
Dec. 31, 2015USD ($)loan | Dec. 31, 2014USD ($) | |
Mortgage loans payable | ||
Total mortgages and notes payable | $ 1,473,034,000 | $ 1,186,481,000 |
One-month LIBOR | ||
Mortgage loans payable | ||
Monthly LIBOR interest rate at period end | 0.43% | |
Mortgages and notes payable | ||
Mortgage loans payable | ||
Total | $ 1,470,500,000 | |
Add: unamortized adjustments from business combinations | 2,500,000 | |
Total mortgages and notes payable | 1,473,000,000 | 1,186,500,000 |
Net consolidated carrying value of real estate that collateralized the mortgage loans payable | $ 2,500,000,000 | |
Minimum | Construction loan | ||
Mortgage loans payable | ||
Percentage guaranteed on loans | 10.00% | |
Maximum | Construction loan | ||
Mortgage loans payable | ||
Percentage guaranteed on loans | 25.00% | |
Consolidated co-investment venture | Mortgages and notes payable | ||
Mortgage loans payable | ||
Total | $ 1,173,200,000 | 1,095,000,000 |
Add: unamortized adjustments from business combinations | 2,500,000 | 4,300,000 |
Total mortgages and notes payable | 1,175,700,000 | 1,099,300,000 |
Consolidated co-investment venture | Mortgages and notes payable | Co-investment venture, fixed rate mortgages payable | ||
Mortgage loans payable | ||
Fixed rate mortgages payable | $ 631,600,000 | 827,700,000 |
Wtd. Average Interest Rates (as a percent) | 3.49% | |
Consolidated co-investment venture | Mortgages and notes payable | Co-investment venture, variable rate mortgage payable | ||
Mortgage loans payable | ||
Variable rate mortgages payable | $ 11,600,000 | 12,000,000 |
Interest rate margin (as a percent) | 2.35% | |
Consolidated co-investment venture | Construction loan | Co-investment venture, fixed rate construction loan payable | ||
Mortgage loans payable | ||
Fixed rate mortgages payable | $ 29,200,000 | 29,000,000 |
Wtd. Average Interest Rates (as a percent) | 4.31% | |
Number of loans | loan | 2 | |
Total loan commitment | $ 82,700,000 | |
Remaining amount available to borrow | 8,900,000 | |
Consolidated co-investment venture | Construction loan | Co-Investment Venture, Fixed Rate Construction Loan Payable, Operating [Member] | ||
Mortgage loans payable | ||
Fixed rate mortgages payable | $ 44,500,000 | 28,000,000 |
Interest rate margin (as a percent) | 4.00% | |
Consolidated co-investment venture | Construction loan | Co-investment venture, variable rate construction payable | ||
Mortgage loans payable | ||
Variable rate mortgages payable | $ 355,300,000 | 87,300,000 |
Interest rate margin (as a percent) | 2.12% | |
Number of loans | loan | 11 | |
Total loan commitment | $ 548,700,000 | |
Remaining amount available to borrow | 92,500,000 | |
Consolidated co-investment venture | Construction loan | Co-Investment Venture, Variable Rate Construction Loan Payable, Operating [Member] | ||
Mortgage loans payable | ||
Variable rate mortgages payable | $ 101,000,000 | 111,000,000 |
Interest rate margin (as a percent) | 2.02% | |
Parent | Mortgages and notes payable | ||
Mortgage loans payable | ||
Total | $ 297,300,000 | |
Total mortgages and notes payable | 297,300,000 | 87,200,000 |
Parent | Mortgages and notes payable | Parent company, fixed rate mortgage payable | ||
Mortgage loans payable | ||
Fixed rate mortgages payable | $ 297,300,000 | $ 87,200,000 |
Wtd. Average Interest Rates (as a percent) | 3.88% | |
Parent | Construction loan | Parent company, variable construction loan payable | ||
Mortgage loans payable | ||
Total mortgages and notes payable | $ 82,800,000 | |
Number of loans | loan | 10 | |
Total loan commitment | $ 528,100,000 | |
Parent | Minimum | Construction loan | Parent company, variable construction loan payable | ||
Mortgage loans payable | ||
Extension option period | 1 year | |
Percentage guaranteed on loans | 10.00% | |
Parent | Maximum | Construction loan | Parent company, variable construction loan payable | ||
Mortgage loans payable | ||
Extension option period | 2 years | |
Percentage guaranteed on loans | 25.00% |
Mortgages and Notes Payable (62
Mortgages and Notes Payable (Details 2) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Contractual principal payments for the five subsequent years and thereafter | ||
Total mortgages and notes payable | $ 1,473,034 | $ 1,186,481 |
Mortgages and notes payable | ||
Contractual principal payments for the five subsequent years and thereafter | ||
2,016 | 186,000 | |
2,017 | 304,000 | |
2,018 | 534,700 | |
2,019 | 220,500 | |
2,020 | 225,300 | |
Thereafter | 0 | |
Total | 1,470,500 | |
Add: unamortized adjustments from business combinations | 2,500 | |
Total mortgages and notes payable | 1,473,000 | 1,186,500 |
Mortgages and notes payable | Parent | ||
Contractual principal payments for the five subsequent years and thereafter | ||
2,016 | 4,700 | |
2,017 | 5,800 | |
2,018 | 153,400 | |
2,019 | 79,500 | |
2,020 | 53,900 | |
Thereafter | 0 | |
Total | 297,300 | |
Total mortgages and notes payable | 297,300 | 87,200 |
Mortgages and notes payable | Consolidated co-investment venture | ||
Contractual principal payments for the five subsequent years and thereafter | ||
2,016 | 181,300 | |
2,017 | 298,200 | |
2,018 | 381,300 | |
2,019 | 141,000 | |
2,020 | 171,400 | |
Thereafter | 0 | |
Total | 1,173,200 | 1,095,000 |
Add: unamortized adjustments from business combinations | 2,500 | 4,300 |
Total mortgages and notes payable | $ 1,175,700 | $ 1,099,300 |
Credit Facility Payable (Detail
Credit Facility Payable (Details) | 1 Months Ended | 12 Months Ended | |
Jan. 31, 2015USD ($) | Dec. 31, 2015USD ($)communitycredit_facility | Dec. 31, 2014USD ($) | |
Credit facility payable | |||
Number of credit facilities | credit_facility | 2 | ||
$150 Million Facility | |||
Credit facility payable | |||
Maximum borrowing capacity | $ 150,000,000 | $ 150,000,000 | |
Net carrying value of real estate that collateralized the credit facility | $ 118,600,000 | ||
Percentage of the value of the collateral pool up to which borrowings can be made under the facility | 70.00% | ||
Total available amount under credit facility | $ 108,200,000 | ||
$200 Million Facility | |||
Credit facility payable | |||
Maximum borrowing capacity | $ 400,000,000 | $ 200,000,000 | $ 200,000,000 |
Number of wholly owned multifamily communities | community | 2 | ||
Consolidated net worth required to be maintained | $ 1,160,000,000 | ||
Extension option period | 1 year | ||
Maximum total gross asset value percent | 65.00% | ||
Fixed charges ratio | 1.50 | ||
Percent limitation for payment of distributions and share repurchases | 95.00% | ||
Percent of defined funds | 78.00% | ||
One-month LIBOR | |||
Credit facility payable | |||
Monthly LIBOR interest rate at period end | 0.43% | ||
Base rate | $150 Million Facility | |||
Credit facility payable | |||
Variable rate basis | base rate | ||
One-month or three-month LIBOR rate | $150 Million Facility | |||
Credit facility payable | |||
Variable rate basis | one-month or three-month LIBOR rate | ||
One-month LIBOR rate | $150 Million Facility | |||
Credit facility payable | |||
Applicable margin (as a percent) | 2.08% | ||
LIBOR | $200 Million Facility | |||
Credit facility payable | |||
Applicable margin (as a percent) | 2.50% | ||
Minimum | $150 Million Facility | |||
Credit facility payable | |||
Borrowing required under the loan | $ 10,000,000 | ||
Consolidated net worth required to be maintained | 150,000,000 | ||
Consolidated liquidity required to be maintained | $ 15,000,000 | ||
Net operating income of the collateral pool required to be maintained expressed as percentage of the facility debt service cost | 155.00% |
Credit Facility Payable Schedul
Credit Facility Payable Schedule of Line of Credit Facilities (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Jan. 31, 2015 | Dec. 31, 2014 | |
Credit facility payable | |||
Credit facilities payable | $ 49,000,000 | $ 10,000,000 | |
$150 Million Facility | |||
Credit facility payable | |||
Maximum borrowing capacity | 150,000,000 | 150,000,000 | |
Credit facilities payable | 49,000,000 | 10,000,000 | |
$200 Million Facility | |||
Credit facility payable | |||
Maximum borrowing capacity | 200,000,000 | $ 400,000,000 | 200,000,000 |
Credit facilities payable | $ 0 | $ 0 | |
One-month LIBOR rate | $150 Million Facility | |||
Credit facility payable | |||
Interest rate margin (as a percent) | 2.08% | ||
LIBOR | $200 Million Facility | |||
Credit facility payable | |||
Interest rate margin (as a percent) | 2.50% |
Noncontrolling Interests (Nonre
Noncontrolling Interests (Nonredeemable Noncontrolling Interests (Details) | Feb. 28, 2014USD ($)joint_venture | Dec. 20, 2013USD ($)joint_venture | Jul. 31, 2013USD ($) | Dec. 31, 2015USD ($)investmentjoint_venture$ / sharesshares | Dec. 31, 2014USD ($)communityjoint_venture | Dec. 31, 2013USD ($) |
Noncontrolling Interest [Line Items] | ||||||
Subsidiary preferred units | $ 2,100,000 | $ 1,900,000 | ||||
Non-redeemable noncontrolling interests | 461,833,000 | 540,747,000 | ||||
Sale of noncontrolling interest | $ 0 | $ 0 | $ 7,272,000 | |||
Number of co-investment ventures | joint_venture | 39 | 46 | ||||
Number of multifamily communities in which the entity is having ownership interest through Co-Investment Ventures | investment | 39 | |||||
Acquisitions of noncontrolling interests | $ 121,559,000 | $ 6,150,000 | 49,036,000 | |||
Remaining consideration after closing costs | $ 165,200,000 | |||||
CALIFORNIA | ||||||
Noncontrolling Interest [Line Items] | ||||||
Number of co-investment ventures | joint_venture | 2 | |||||
Number of multifamily communities in which the entity is having ownership interest through Co-Investment Ventures | community | 2 | |||||
BHMP GP Interest | ||||||
Noncontrolling Interest [Line Items] | ||||||
Purchase price to acquire 1% GP Interest | $ 23,100,000 | |||||
Acquisitions of noncontrolling interests | $ 13,800,000 | |||||
Percentage of equity interest acquired | 1.00% | |||||
Remaining consideration after closing costs | $ 9,300,000 | |||||
Developer CO-JVs | ||||||
Noncontrolling Interest [Line Items] | ||||||
Percent of noncontrolling interest sold | 37.00% | 42.00% | ||||
Number of investments sold | joint_venture | 2 | 13 | ||||
Sale of noncontrolling interest | $ 13,200,000 | |||||
Proceeds from Divestiture of Interest in Joint Venture | $ 146,400,000 | |||||
Decrease in additional paid in capital | $ 800,000 | |||||
Number of co-investment ventures | joint_venture | 2 | 2 | ||||
PGGM Co JVs | ||||||
Noncontrolling Interest [Line Items] | ||||||
Joint ventures | $ 332,000,000 | $ 390,500,000 | ||||
Annual distribution rate (as a percent) | 12.50% | |||||
Redemption price of preferred units (in dollars per unit) | $ / shares | $ 500 | |||||
Redemption premium remaining of preferred units | $ 0 | |||||
PGGM Co JVs | Minimum | ||||||
Noncontrolling Interest [Line Items] | ||||||
Effective NCI (as a percent) | 30.00% | 26.00% | ||||
Number of preferred units issued by subsidiary of joint venture | shares | 121 | |||||
Redemption premium of preferred units for first year (in dollars per unit) | $ / shares | $ 50 | |||||
PGGM Co JVs | Maximum | ||||||
Noncontrolling Interest [Line Items] | ||||||
Effective NCI (as a percent) | 45.00% | 45.00% | ||||
Number of preferred units issued by subsidiary of joint venture | shares | 125 | |||||
Redemption premium of preferred units for first year (in dollars per unit) | $ / shares | $ 100 | |||||
Decline in redemption premium of preferred units (in dollars per unit) | $ / shares | $ 25 | |||||
MW Co-Investment Partner | ||||||
Noncontrolling Interest [Line Items] | ||||||
Joint ventures | $ 123,700,000 | $ 144,900,000 | ||||
Effective NCI (as a percent) | 45.00% | 45.00% | ||||
Annual distribution rate (as a percent) | 12.50% | |||||
Redemption price of preferred units (in dollars per unit) | $ / shares | $ 500 | |||||
Face value of preferred units (in dollars per unit) | $ / shares | $ 500 | |||||
Redemption premium remaining of preferred units | $ 0 | |||||
MW Co-Investment Partner | Minimum | ||||||
Noncontrolling Interest [Line Items] | ||||||
Number of preferred units issued by subsidiary of joint venture | shares | 121 | |||||
Redemption premium of preferred units for first year (in dollars per unit) | $ / shares | $ 50 | |||||
MW Co-Investment Partner | Maximum | ||||||
Noncontrolling Interest [Line Items] | ||||||
Number of preferred units issued by subsidiary of joint venture | shares | 125 | |||||
Redemption premium of preferred units for first year (in dollars per unit) | $ / shares | $ 100 | |||||
Decline in redemption premium of preferred units (in dollars per unit) | $ / shares | $ 25 | |||||
Developer CO-JVs | ||||||
Noncontrolling Interest [Line Items] | ||||||
Joint ventures | $ 4,000,000 | $ 3,400,000 | ||||
Effective NCI (as a percent) | 0.00% | 0.00% | ||||
Decrease in additional paid in capital | 23,100,000 | |||||
Cyan MW CO JV | ||||||
Noncontrolling Interest [Line Items] | ||||||
Acquisitions of noncontrolling interests | 27,900,000 | |||||
Cameron PGGM CO-JV | ||||||
Noncontrolling Interest [Line Items] | ||||||
Sale of noncontrolling interest | $ 7,300,000 |
Noncontrolling Interests (Sched
Noncontrolling Interests (Schedule of distributions to noncontrolling interests) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Noncontrolling Interest [Abstract] | |||
Operating activities | $ 17,700 | $ 22,500 | $ 25,000 |
Investing and financing activities | 30,800 | 25,500 | 26,300 |
Total | $ 48,497 | $ 48,041 | $ 51,303 |
Noncontrolling Interests Noncon
Noncontrolling Interests Noncontrolling Interest (Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net) (Details) $ in Thousands | May. 07, 2015USD ($)ownership_interestunitcommunity | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | May. 06, 2015 |
Noncontrolling Interest [Line Items] | |||||
Number of units in real estate property | unit | 2,061 | ||||
Purchase price recorded in APIC | $ 59,200 | $ 0 | $ 0 | $ 4,810 | |
FLORIDA | The District Universal Boulevard, Orlando, FL | |||||
Noncontrolling Interest [Line Items] | |||||
Number of units in real estate property | unit | 425 | ||||
General partner percent | 100.00% | 55.50% | |||
Acquired Interest | 44.50% | ||||
NEVADA | Veritas, Henderson, NV (b) | |||||
Noncontrolling Interest [Line Items] | |||||
Number of units in real estate property | unit | 430 | ||||
General partner percent | 93.50% | 51.90% | |||
Acquired Interest | 41.60% | ||||
Effective NCI (as a percent) | 6.50% | ||||
MARYLAND | The Cameron, Silver Spring, MD | |||||
Noncontrolling Interest [Line Items] | |||||
Number of units in real estate property | unit | 325 | ||||
General partner percent | 100.00% | 55.50% | |||
Acquired Interest | 44.50% | ||||
COLORADO | Skye 2905, Denver, CO | |||||
Noncontrolling Interest [Line Items] | |||||
Number of units in real estate property | unit | 400 | ||||
General partner percent | 100.00% | 55.50% | |||
Acquired Interest | 44.50% | ||||
TEXAS | Grand Reserve, Dallas, TX | |||||
Noncontrolling Interest [Line Items] | |||||
Number of units in real estate property | unit | 149 | ||||
General partner percent | 100.00% | 74.40% | |||
Acquired Interest | 25.60% | ||||
TEXAS | Jefferson Creekside, Allen, TX | |||||
Noncontrolling Interest [Line Items] | |||||
Number of units in real estate property | unit | 444 | ||||
Ownership percent | 100.00% | 55.50% | |||
Acquired interest | 44.50% | ||||
MASSACHUSETTS | Stone Gate, Marlborough, MA | |||||
Noncontrolling Interest [Line Items] | |||||
Number of units in real estate property | unit | 332 | ||||
General partner percent | 100.00% | 55.50% | |||
Acquired Interest | 44.50% | ||||
PGGM | |||||
Noncontrolling Interest [Line Items] | |||||
Number of interest acquired | ownership_interest | 6 | ||||
Number of Multifamily Communities | community | 6 | ||||
Control interests acquired | ownership_interest | 1 | ||||
Purchase price | $ 119,800 | ||||
Funded from existing cash | 9,800 | ||||
Credit facility draws | 110,000 | ||||
Disposition fee | 1,000 | ||||
Promote interest payment | 3,500 | ||||
Nonrecurring basis | |||||
Noncontrolling Interest [Line Items] | |||||
Fair value | 57,800 | ||||
Level 2 | Nonrecurring basis | |||||
Noncontrolling Interest [Line Items] | |||||
Fair value | 57,800 | ||||
Other Assets | Nonrecurring basis | |||||
Noncontrolling Interest [Line Items] | |||||
Fair value | 16,600 | ||||
Other Assets | Level 2 | Nonrecurring basis | |||||
Noncontrolling Interest [Line Items] | |||||
Fair value | $ 16,600 | $ 16,600 |
Noncontrolling Interests (Redee
Noncontrolling Interests (Redeemable Noncontrolling Interest) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Redeemable, Noncontrolling Interest | ||
Amount | $ 29,073 | $ 32,012 |
Developer CO-JVs - Redeemable | ||
Redeemable, Noncontrolling Interest | ||
Amount | 29,100 | $ 32,000 |
Redeemable noncontrolling interests puts | 28,800 | |
Puts eligible for exercise | $ 5,000 | |
Developer CO-JVs - Redeemable | Minimum | ||
Redeemable, Noncontrolling Interest | ||
Effective NCI (as a percent) | 0.00% | 0.00% |
Exercise period (in years) | 1 year | |
Developer CO-JVs - Redeemable | Maximum | ||
Redeemable, Noncontrolling Interest | ||
Effective NCI (as a percent) | 10.00% | 10.00% |
Stockholders' Equity (Capitaliz
Stockholders' Equity (Capitalization) (Details) | Jul. 31, 2013vote$ / sharesshares | Dec. 31, 2015$ / sharesshares | Dec. 31, 2014$ / sharesshares |
Capitalization | |||
Preferred stock, shares issued | shares | 10,000 | 10,000 | |
Preferred stock, dividend rate, percentage | 7.00% | 7.00% | |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Preferred stock, liquidation preference per share | $ 10 | $ 10 | |
Common stock, shares outstanding | shares | 168,537,343 | 166,611,549 | 166,467,726 |
Series A Preferred Stock | Advisor | |||
Capitalization | |||
Preferred stock, shares issued | shares | 10,000 | ||
Preferred stock, dividend rate, percentage | 7.00% | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | ||
Number of voting rights per share | vote | 1 | ||
Preferred stock, liquidation preference per share | $ 10 | ||
Excess percentage, preferred stock conversion into common stock | 17.25% | ||
Cumulative required return on issue price of outstanding shares, percentage | 7.00% |
Stockholders' Equity (Stock Pla
Stockholders' Equity (Stock Plans) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized for issuance | 20,000,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Share-based compensation expense | $ 3.2 | $ 0.8 | $ 0 |
Unearned compensation cost | $ 3.4 | ||
Weighted average period of recognition (in years) | 1 year 10 months 23 days | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Awards granted | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Beginning Balance Outstanding (in shares) | 248,691 | 0 | |
Granted (in shares) | 482,846 | 248,691 | |
Exercised (in shares) | (170,632) | 0 | |
Forfeited (in shares) | (11,409) | 0 | |
Ending Balance Outstanding (in shares) | 549,496 | 248,691 | 0 |
Vested restricted stock units (in shares) | 64,437 | 11,356 | |
Unvested restricted stock units (in shares) | 485,059 | 237,335 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Beginning Balance Outstanding (in dollars per share) | $ 10.03 | $ 0 | |
Granted (in dollars per share) | 9.47 | 10.03 | |
Exercised (in dollars per share) | 9.71 | 0 | |
Forfeited (in dollars per share) | 9.64 | 0 | |
Ending Balance Outstanding (in dollars per share) | 9.64 | 10.03 | $ 0 |
Vested restricted stock units (in dollars per share) | 9.90 | 10.03 | |
Unvested restricted stock units (in dollars per share) | $ 9.61 | $ 10.03 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Awards granted | 0 | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Beginning Balance Outstanding (in shares) | 0 | ||
Granted (in shares) | 25,746 | ||
Forfeited (in shares) | (4,878) | ||
Ending Balance Outstanding (in shares) | 20,868 | 0 | |
Unvested restricted stock units (in shares) | 20,868 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Granted (in dollars per share) | $ 9.21 | ||
Forfeited (in dollars per share) | 9.21 | ||
Unvested restricted stock units (in dollars per share) | $ 9.21 | $ 0 |
Stockholders' Equity (Distribut
Stockholders' Equity (Distributions) (Details) - USD ($) $ / shares in Units, $ in Millions | Sep. 30, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Equity [Abstract] | ||||||||||||||||
Declared | $ 12.5 | $ 12.5 | $ 12.5 | $ 12.5 | $ 12.5 | $ 14.9 | $ 14.7 | $ 14.6 | $ 14.9 | $ 14.9 | $ 14.7 | $ 14.5 | $ 50 | $ 56.7 | $ 59 | |
Declared per Share | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.088 | $ 0.087 | $ 0.086 | $ 0.089 | $ 0.088 | $ 0.087 | $ 0.086 | $ 0.3 | $ 0.336 | $ 0.35 | |
Daily distribution amount (in dollars per share) | $ 0.000958904 | |||||||||||||||
Annual distribution amount (in dollars per share) | $ 0.35 | $ 0.30 | $ 0.34 | $ 0.35 |
Stockholders' Equity (Share Red
Stockholders' Equity (Share Redemption Program) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Dec. 29, 2014 | Aug. 13, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Share Redemption Program | ||||
Per share redemption price expressed as percentage of the most recently disclosed estimated value per share | 85.00% | |||
Number of shares of common stock redeemed | 1.6 | 2.5 | ||
Common stock average redemption share price (in dollars per share) | $ 8.80 | $ 9.24 | ||
Common stock, value of redemption properly submitted | $ 14.2 | $ 22.9 | ||
Number of shares acquired through tender offer | 2.4 | |||
Price per share of shares acquired through tender offer | $ 9.25 | |||
Cost to acquire shares through tender offer | $ 22.1 |
Stockholders' Equity (Distrib73
Stockholders' Equity (Distribution Classification) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity [Abstract] | |||
Ordinary income | 58.00% | 42.00% | 36.00% |
Capital gains | 23.00% | 19.00% | 32.00% |
Section 1250 recapture capital gains | 5.00% | 0.00% | 4.00% |
Return of capital | 14.00% | 39.00% | 28.00% |
Total | 100.00% | 100.00% | 100.00% |
Transition Expenses (Details)
Transition Expenses (Details) - USD ($) $ in Thousands | 5 Months Ended | 12 Months Ended | 14 Months Ended | |||
Nov. 20, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Jun. 30, 2014 | |
Transition to Self-Management [Line Items] | ||||||
Shareholder services expense | $ 0 | $ 2,900 | $ 0 | |||
Behringer Harvard Multifamily Advisors I | ||||||
Transition to Self-Management [Line Items] | ||||||
Transaction to self-management, general transition services fee | $ 7,200 | |||||
General transition services expensed during the year | 400 | 6,800 | ||||
Certain intangible assets, rights and contracts transferred | $ 3,500 | |||||
Transaction to self-management, payment due at self-management closing | 1,250 | |||||
Transaction to self-management, monthly general transaction service fee | $ 400 | |||||
Shareholder services expense | $ 2,900 | |||||
Transition to Self-Management | Behringer Harvard Multifamily Advisors I | ||||||
Transition to Self-Management [Line Items] | ||||||
Proceeds from acquisition fees repaid | $ 100 | $ 2,500 | $ 0 |
Transition Expenses (Details 2)
Transition Expenses (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Transition to Self-Management [Abstract] | |||
Special Committee and Company legal and financial advisors | $ 900 | $ 700 | |
Behringer | 2,900 | 7,900 | |
Other service providers | 2,500 | 400 | |
Expenses related to listing on the NYSE | 6,400 | 0 | |
Total transition expenses | $ 0 | $ 12,672 | $ 9,003 |
Commitments and Contingencies76
Commitments and Contingencies (Details) - USD ($) | Jan. 13, 2016 | Nov. 10, 2015 | Dec. 31, 2015 | Dec. 31, 2014 |
Commitments | ||||
Deferred revenues, primarily lease revenues, net | $ 19,451,000 | $ 18,955,000 | ||
Commitments to provide affordable housing | The Gallery At NoHo Commons | ||||
Commitments | ||||
Level annual payments made by the housing authority | 2,000,000 | |||
Reimbursement of annual payments made by the housing authority | $ 0 | |||
Period during which no reimbursements are made by housing authority | 20 years | |||
Liability under contract | $ 14,000,000 | |||
Deferred revenues, primarily lease revenues, net | 18,900,000 | $ 18,300,000 | ||
Construction and development contracts | ||||
Commitments | ||||
Liability under contract | $ 82,600,000 | |||
Period in which construction costs are expected to be paid | 24 months | |||
Pending Litigation | Behringer Litigation | ||||
Commitments | ||||
Damages sought | $ 2,300,000 | |||
Litigation liability recorded | $ 0 | |||
Subsequent Event | Pending Litigation | Behringer Litigation | ||||
Commitments | ||||
Counterclaim amount | $ 1,500,000 |
Commitments and Contingencies77
Commitments and Contingencies (Details 2) $ in Millions | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 0.6 |
2,017 | 0.9 |
2,018 | 0.8 |
2,019 | 0.8 |
2,020 | 0.8 |
Thereafter | 3.2 |
Total | $ 7.1 |
Fair Value of Derivatives and78
Fair Value of Derivatives and Financial Instruments (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
May. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | May. 07, 2015 | Apr. 30, 2015 | |
Fair value of derivatives and financial instruments | ||||||
Carrying value | $ 4,400 | $ 44,400 | ||||
Impairment related to development | $ 3,100 | $ 3,128 | $ 0 | $ 0 | ||
Nonrecurring basis | ||||||
Fair value of derivatives and financial instruments | ||||||
Fair value | 57,800 | |||||
Fair value adjustments | (3,100) | |||||
Nonrecurring basis | Level 1 | ||||||
Fair value of derivatives and financial instruments | ||||||
Fair value | 0 | |||||
Nonrecurring basis | Level 2 | ||||||
Fair value of derivatives and financial instruments | ||||||
Fair value | 57,800 | |||||
Nonrecurring basis | Level 3 | ||||||
Fair value of derivatives and financial instruments | ||||||
Fair value | 0 | |||||
Construction in progress | Nonrecurring basis | ||||||
Fair value of derivatives and financial instruments | ||||||
Fair value | 41,200 | |||||
Fair value adjustments | (3,100) | |||||
Construction in progress | Nonrecurring basis | Level 1 | ||||||
Fair value of derivatives and financial instruments | ||||||
Fair value | 0 | |||||
Construction in progress | Nonrecurring basis | Level 2 | ||||||
Fair value of derivatives and financial instruments | ||||||
Fair value | 41,200 | |||||
Construction in progress | Nonrecurring basis | Level 3 | ||||||
Fair value of derivatives and financial instruments | ||||||
Fair value | 0 | |||||
Other Assets | Nonrecurring basis | ||||||
Fair value of derivatives and financial instruments | ||||||
Fair value | 16,600 | |||||
Fair value adjustments | 0 | |||||
Other Assets | Nonrecurring basis | Level 1 | ||||||
Fair value of derivatives and financial instruments | ||||||
Fair value | 0 | |||||
Other Assets | Nonrecurring basis | Level 2 | ||||||
Fair value of derivatives and financial instruments | ||||||
Fair value | 16,600 | $ 16,600 | ||||
Other Assets | Nonrecurring basis | Level 3 | ||||||
Fair value of derivatives and financial instruments | ||||||
Fair value | $ 0 |
Fair Value of Derivatives and79
Fair Value of Derivatives and Financial Instruments (Details 2) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value | ||
Mortgages and notes payable | $ 1,473,034 | $ 1,186,481 |
Mortgages and notes payable | ||
Fair Value | ||
Mortgages and notes payable | 1,473,000 | 1,186,500 |
Carrying Amount | Level 2 | Mortgages and notes payable | ||
Fair Value | ||
Mortgages and notes payable | 1,473,000 | 1,186,500 |
Fair Value | Level 2 | Mortgages and notes payable | ||
Fair Value | ||
Mortgages and notes payable fair value | $ 1,473,100 | $ 1,199,600 |
Related Party Arrangements (Det
Related Party Arrangements (Details) $ in Millions | 5 Months Ended | 12 Months Ended | |||
Nov. 20, 2014USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Jul. 31, 2013employee | |
Other disclosures | |||||
Acquisition and advisory fees | $ 0 | $ 4.3 | $ 15 | ||
Property management fees | 0 | 11.3 | 23.4 | ||
Debt financing fees | 0.2 | 2.4 | 1.5 | ||
Asset management fees | 0 | 3.8 | 7.7 | ||
Administrative expense reimbursements | 0 | 1 | 1.8 | ||
Shareholder services | $ 0 | 2.9 | 0 | ||
Early termination payment | 2.3 | ||||
Minimum | |||||
Related Party Transaction [Line Items] | |||||
Capital market servicing fee | 0.90% | ||||
Maximum | |||||
Related Party Transaction [Line Items] | |||||
Capital market servicing fee | 1.00% | ||||
Behringer Harvard Multifamily Advisors I | |||||
Other disclosures | |||||
Shareholder services | $ 2.9 | ||||
Related Party Transaction [Line Items] | |||||
Number of employees supported by related party service agreements | employee | 0 | ||||
Transition to Self-Management | Behringer Harvard Multifamily Advisors I | |||||
Related Party Transaction [Line Items] | |||||
Proceeds from acquisition fees repaid | $ 0.1 | $ 2.5 | $ 0 |
Supplemental Disclosures of C81
Supplemental Disclosures of Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplemental Cash Flow Information [Abstract] | |||
Interest paid, net of amounts capitalized of $16.5 million, $17.8 million and $10.5 million in 2015, 2014 and 2013, respectively | $ 30.1 | $ 20.8 | $ 25.8 |
Interest capitalized | 16.5 | 17.8 | 10.5 |
Non-cash investing and financing activities: | |||
Acquisition of a noncontrolling interest | 0 | 0 | 9 |
Conversion of note receivable into an equity investment | 0 | 0 | 4.9 |
Funds deposited in escrow related to a development acquisition | 0 | 1.5 | 1.1 |
Transfer of real estate from construction in progress to operating real estate | 679.4 | 286.6 | 48.9 |
Conversion of investment in unconsolidated real estate joint venture into notes receivable | 5 | 0.8 | 9.5 |
Stock issued pursuant to our DRIP | 0 | 20.5 | 31 |
Distributions payable | 12.5 | 12.5 | 5 |
Construction costs and other related payables | $ 34.9 | $ 92.2 | $ 43.7 |
Subsequent Events (Details)
Subsequent Events (Details) | Mar. 31, 2016$ / shares |
Forecast | Common Stock | |
Subsequent Events | |
Common stock dividends authorized (in dollars per share) | $ 0.075 |
Quarterly Results (unaudited)83
Quarterly Results (unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Rental revenues | $ 63,129 | $ 59,191 | $ 59,105 | $ 56,643 | $ 54,705 | $ 53,091 | $ 51,047 | $ 50,182 | $ 238,068 | $ 209,025 | $ 190,624 |
Income (loss) from continuing operations | (7,489) | 30,876 | 44,473 | (1,177) | (6,477) | (858) | (6,870) | 14,476 | 66,683 | 271 | (17,466) |
Net income (loss) attributable to common stockholders | $ (5,937) | $ 31,362 | $ 49,196 | $ (833) | $ (6,153) | $ (619) | $ (6,775) | $ 7,423 | $ 73,788 | $ (6,124) | $ 29,692 |
Basic weighted average shares outstanding | 166,628 | 166,563 | 166,541 | 166,509 | 168,818 | 168,780 | 168,857 | 168,714 | 166,561 | 168,793 | 168,650 |
Diluted weighted average shares outstanding | 167,247 | 167,260 | 167,202 | 166,509 | 169,066 | 169,028 | 169,096 | 168,919 | 167,205 | 169,029 | 168,650 |
Basic and diluted earnings (loss) per share (in dollars per share) | $ (0.04) | $ 0.19 | $ 0.29 | $ (0.01) | $ (0.04) | $ 0 | $ (0.04) | $ 0.04 | $ 0.44 | $ (0.04) | $ 0.18 |
Valuation and Qualifying Acco84
Valuation and Qualifying Accounts Schedule II (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Year | $ 144 | $ 102 | $ 193 |
Charged to Costs and Expenses | 746 | 550 | 492 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 644 | 508 | 583 |
Balance at End of Year | $ 246 | $ 144 | $ 102 |
Real Estate and Accumulated D85
Real Estate and Accumulated Depreciation Schedule III (Details) | 12 Months Ended | ||||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($)unit | May. 07, 2015unit | Dec. 31, 2012USD ($) | |
Real Estate and Accumulated Depreciation | |||||
Proceeds from sales of real estate, net | $ 250,311,000 | $ 33,379,000 | $ 205,336,000 | ||
Initial Cost | |||||
Land | 497,360,000 | ||||
Buildings and Improvements | 2,597,679,000 | ||||
Costs Subsequent to Acquisition/ Construction | 30,014,000 | ||||
Gross Amount Carried at December 31, 2015 | 3,125,053,000 | 2,423,704,000 | 2,170,747,000 | $ 2,177,429,000 | |
Accumulated Depreciation | 357,036,000 | 280,400,000 | $ 195,048,000 | $ 123,360,000 | |
Encumbrances | 1,475,004,000 | ||||
Outstanding balance of mortgage loans and credit facility | 49,000,000 | ||||
Number of units in real estate property | unit | 2,061 | ||||
$150 Million Facility | |||||
Initial Cost | |||||
Maximum borrowing capacity | $ 150,000,000 | 150,000,000 | |||
Minimum | |||||
Initial Cost | |||||
Depreciable life of properties | 25 years | ||||
Minimum | Improvements | |||||
Initial Cost | |||||
Depreciable life of properties | 3 years | ||||
Maximum | |||||
Initial Cost | |||||
Depreciable life of properties | 35 years | ||||
Maximum | Improvements | |||||
Initial Cost | |||||
Depreciable life of properties | 15 years | ||||
4110 Fairmount | |||||
Initial Cost | |||||
Land | $ 7,244,000 | ||||
Buildings and Improvements | 36,150,000 | ||||
Costs Subsequent to Acquisition/ Construction | 153,000 | ||||
Gross Amount Carried at December 31, 2015 | 43,547,000 | ||||
Accumulated Depreciation | 2,720,000 | ||||
Encumbrances | 24,825,000 | ||||
4550 Cherry Creek(d) | |||||
Initial Cost | |||||
Land | 7,910,000 | ||||
Buildings and Improvements | 70,184,000 | ||||
Costs Subsequent to Acquisition/ Construction | 1,594,000 | ||||
Gross Amount Carried at December 31, 2015 | 79,688,000 | ||||
Accumulated Depreciation | 14,016,000 | ||||
Encumbrances | 39,500,000 | ||||
55 Hundred(d) | |||||
Initial Cost | |||||
Land | 13,196,000 | ||||
Buildings and Improvements | 67,515,000 | ||||
Costs Subsequent to Acquisition/ Construction | 619,000 | ||||
Gross Amount Carried at December 31, 2015 | 81,330,000 | ||||
Accumulated Depreciation | 12,830,000 | ||||
Encumbrances | 41,047,000 | ||||
7166 at Belmar(d) | |||||
Initial Cost | |||||
Land | 3,385,000 | ||||
Buildings and Improvements | 52,298,000 | ||||
Costs Subsequent to Acquisition/ Construction | 1,828,000 | ||||
Gross Amount Carried at December 31, 2015 | 57,511,000 | ||||
Accumulated Depreciation | 10,222,000 | ||||
Encumbrances | 28,500,000 | ||||
Acacia on Santa Rosa Creek | |||||
Initial Cost | |||||
Land | 8,100,000 | ||||
Buildings and Improvements | 29,512,000 | ||||
Costs Subsequent to Acquisition/ Construction | 1,847,000 | ||||
Gross Amount Carried at December 31, 2015 | 39,459,000 | ||||
Accumulated Depreciation | 8,561,000 | ||||
Encumbrances | 29,000,000 | ||||
Acappella | |||||
Initial Cost | |||||
Land | 8,000,000 | ||||
Buildings and Improvements | 46,973,000 | ||||
Costs Subsequent to Acquisition/ Construction | 562,000 | ||||
Gross Amount Carried at December 31, 2015 | 55,535,000 | ||||
Accumulated Depreciation | 10,996,000 | ||||
Encumbrances | 30,070,000 | ||||
Allegro (e) | |||||
Initial Cost | |||||
Land | 3,900,000 | ||||
Buildings and Improvements | 55,355,000 | ||||
Costs Subsequent to Acquisition/ Construction | 1,688,000 | ||||
Gross Amount Carried at December 31, 2015 | 60,943,000 | ||||
Accumulated Depreciation | 11,237,000 | ||||
Encumbrances | 20,829,000 | ||||
Number of units in real estate property | unit | 121 | ||||
Allusion West University | |||||
Initial Cost | |||||
Land | 9,440,000 | ||||
Buildings and Improvements | 31,372,000 | ||||
Costs Subsequent to Acquisition/ Construction | 111,000 | ||||
Gross Amount Carried at December 31, 2015 | 40,923,000 | ||||
Accumulated Depreciation | 2,611,000 | ||||
Encumbrances | 20,623,000 | ||||
Argenta | |||||
Initial Cost | |||||
Land | 11,100,000 | ||||
Buildings and Improvements | 81,624,000 | ||||
Costs Subsequent to Acquisition/ Construction | 1,536,000 | ||||
Gross Amount Carried at December 31, 2015 | 94,260,000 | ||||
Accumulated Depreciation | 16,341,000 | ||||
Encumbrances | 51,000,000 | ||||
Arpeggio Victory Park | |||||
Initial Cost | |||||
Land | 11,000,000 | ||||
Buildings and Improvements | 47,443,000 | ||||
Costs Subsequent to Acquisition/ Construction | 117,000 | ||||
Gross Amount Carried at December 31, 2015 | 58,560,000 | ||||
Accumulated Depreciation | 3,713,000 | ||||
Encumbrances | 29,161,000 | ||||
Bailey's Crossing(d) | |||||
Initial Cost | |||||
Land | 22,214,000 | ||||
Buildings and Improvements | 108,145,000 | ||||
Costs Subsequent to Acquisition/ Construction | 803,000 | ||||
Gross Amount Carried at December 31, 2015 | 131,162,000 | ||||
Accumulated Depreciation | 20,689,000 | ||||
Encumbrances | 76,000,000 | ||||
Blue Sol | |||||
Initial Cost | |||||
Land | 7,167,000 | ||||
Buildings and Improvements | 30,145,000 | ||||
Costs Subsequent to Acquisition/ Construction | 132,000 | ||||
Gross Amount Carried at December 31, 2015 | 37,444,000 | ||||
Accumulated Depreciation | 1,718,000 | ||||
Encumbrances | 0 | ||||
Briar Forest Lofts(d) | |||||
Initial Cost | |||||
Land | 4,623,000 | ||||
Buildings and Improvements | 40,155,000 | ||||
Costs Subsequent to Acquisition/ Construction | 733,000 | ||||
Gross Amount Carried at December 31, 2015 | 45,511,000 | ||||
Accumulated Depreciation | 7,868,000 | ||||
Encumbrances | 20,211,000 | ||||
Burrough's Mill(d) | |||||
Initial Cost | |||||
Land | 10,075,000 | ||||
Buildings and Improvements | 51,869,000 | ||||
Costs Subsequent to Acquisition/ Construction | 823,000 | ||||
Gross Amount Carried at December 31, 2015 | 62,767,000 | ||||
Accumulated Depreciation | 11,395,000 | ||||
Encumbrances | 24,440,000 | ||||
Calypso Apartments and Lofts(d) | |||||
Initial Cost | |||||
Land | 13,902,000 | ||||
Buildings and Improvements | 42,730,000 | ||||
Costs Subsequent to Acquisition/ Construction | 511,000 | ||||
Gross Amount Carried at December 31, 2015 | 57,143,000 | ||||
Accumulated Depreciation | 8,240,000 | ||||
Encumbrances | 29,500,000 | ||||
The Cameron | |||||
Initial Cost | |||||
Land | 25,191,000 | ||||
Buildings and Improvements | 77,737,000 | ||||
Costs Subsequent to Acquisition/ Construction | 565,000 | ||||
Gross Amount Carried at December 31, 2015 | 103,493,000 | ||||
Accumulated Depreciation | 14,607,000 | ||||
Encumbrances | 63,579,000 | ||||
Cyan on Peachtree | |||||
Initial Cost | |||||
Land | 9,302,000 | ||||
Buildings and Improvements | 59,839,000 | ||||
Costs Subsequent to Acquisition/ Construction | 0 | ||||
Gross Amount Carried at December 31, 2015 | 69,141,000 | ||||
Accumulated Depreciation | 1,497,000 | ||||
Encumbrances | 39,114,000 | ||||
The District Universal Boulevard | |||||
Initial Cost | |||||
Land | 5,161,000 | ||||
Buildings and Improvements | 57,448,000 | ||||
Costs Subsequent to Acquisition/ Construction | 995,000 | ||||
Gross Amount Carried at December 31, 2015 | 63,604,000 | ||||
Accumulated Depreciation | 11,057,000 | ||||
Encumbrances | 36,589,000 | ||||
Eclipse(d) | |||||
Initial Cost | |||||
Land | 6,927,000 | ||||
Buildings and Improvements | 44,078,000 | ||||
Costs Subsequent to Acquisition/ Construction | 420,000 | ||||
Gross Amount Carried at December 31, 2015 | 51,425,000 | ||||
Accumulated Depreciation | 8,987,000 | ||||
Encumbrances | 20,061,000 | ||||
Ev | |||||
Initial Cost | |||||
Land | 10,400,000 | ||||
Buildings and Improvements | 73,547,000 | ||||
Costs Subsequent to Acquisition/ Construction | 0 | ||||
Gross Amount Carried at December 31, 2015 | 83,947,000 | ||||
Accumulated Depreciation | 1,062,000 | ||||
Encumbrances | 0 | ||||
Everly | |||||
Initial Cost | |||||
Land | 6,101,000 | ||||
Buildings and Improvements | 39,503,000 | ||||
Costs Subsequent to Acquisition/ Construction | 866,000 | ||||
Gross Amount Carried at December 31, 2015 | 46,470,000 | ||||
Accumulated Depreciation | 2,171,000 | ||||
Encumbrances | 22,982,000 | ||||
Fitzhugh Urban Flats(d) | |||||
Initial Cost | |||||
Land | 9,394,000 | ||||
Buildings and Improvements | 48,884,000 | ||||
Costs Subsequent to Acquisition/ Construction | 1,135,000 | ||||
Gross Amount Carried at December 31, 2015 | 59,413,000 | ||||
Accumulated Depreciation | 9,997,000 | ||||
Encumbrances | 26,886,000 | ||||
Forty55 Lofts(d) | |||||
Initial Cost | |||||
Land | 11,382,000 | ||||
Buildings and Improvements | 68,966,000 | ||||
Costs Subsequent to Acquisition/ Construction | 523,000 | ||||
Gross Amount Carried at December 31, 2015 | 80,871,000 | ||||
Accumulated Depreciation | 13,262,000 | ||||
Encumbrances | 25,500,000 | ||||
The Franklin Delray | |||||
Initial Cost | |||||
Land | 9,065,000 | ||||
Buildings and Improvements | 24,229,000 | ||||
Costs Subsequent to Acquisition/ Construction | 79,000 | ||||
Gross Amount Carried at December 31, 2015 | 33,373,000 | ||||
Accumulated Depreciation | 2,499,000 | ||||
Encumbrances | 0 | ||||
The Gallery at NoHo Commons | |||||
Initial Cost | |||||
Land | 28,700,000 | ||||
Buildings and Improvements | 78,309,000 | ||||
Costs Subsequent to Acquisition/ Construction | 2,308,000 | ||||
Gross Amount Carried at December 31, 2015 | 109,317,000 | ||||
Accumulated Depreciation | 22,462,000 | ||||
Encumbrances | 51,300,000 | ||||
Grand Reserve | |||||
Initial Cost | |||||
Land | 2,980,000 | ||||
Buildings and Improvements | 29,231,000 | ||||
Costs Subsequent to Acquisition/ Construction | (640,000) | ||||
Gross Amount Carried at December 31, 2015 | 31,571,000 | ||||
Accumulated Depreciation | 4,828,000 | ||||
Encumbrances | 20,364,000 | ||||
The Lofts at Park Crest | |||||
Initial Cost | |||||
Land | 0 | ||||
Buildings and Improvements | 49,737,000 | ||||
Costs Subsequent to Acquisition/ Construction | 482,000 | ||||
Gross Amount Carried at December 31, 2015 | 50,219,000 | ||||
Accumulated Depreciation | 12,288,000 | ||||
Encumbrances | 43,321,000 | ||||
Muse Museum District | |||||
Initial Cost | |||||
Land | 11,533,000 | ||||
Buildings and Improvements | 36,189,000 | ||||
Costs Subsequent to Acquisition/ Construction | 616,000 | ||||
Gross Amount Carried at December 31, 2015 | 48,338,000 | ||||
Accumulated Depreciation | 2,292,000 | ||||
Encumbrances | 26,700,000 | ||||
Nouvelle | |||||
Initial Cost | |||||
Land | 30,515,000 | ||||
Buildings and Improvements | 137,645,000 | ||||
Costs Subsequent to Acquisition/ Construction | 0 | ||||
Gross Amount Carried at December 31, 2015 | 168,160,000 | ||||
Accumulated Depreciation | 1,538,000 | ||||
Encumbrances | 64,406,000 | ||||
Pembroke Woods | |||||
Initial Cost | |||||
Land | 11,520,000 | ||||
Buildings and Improvements | 29,807,000 | ||||
Costs Subsequent to Acquisition/ Construction | 1,144,000 | ||||
Gross Amount Carried at December 31, 2015 | 42,471,000 | ||||
Accumulated Depreciation | 5,184,000 | ||||
Encumbrances | 14,516,000 | ||||
Point 21 | |||||
Initial Cost | |||||
Land | 6,453,000 | ||||
Buildings and Improvements | 41,375,000 | ||||
Costs Subsequent to Acquisition/ Construction | 0 | ||||
Gross Amount Carried at December 31, 2015 | 47,828,000 | ||||
Accumulated Depreciation | 1,485,000 | ||||
Encumbrances | 26,552,000 | ||||
Renaissance - Phase I(d) | |||||
Initial Cost | |||||
Land | 5,786,000 | ||||
Buildings and Improvements | 33,660,000 | ||||
Costs Subsequent to Acquisition/ Construction | 1,669,000 | ||||
Gross Amount Carried at December 31, 2015 | 41,115,000 | ||||
Accumulated Depreciation | 6,208,000 | ||||
Encumbrances | 0 | ||||
The Reserve at LaVista Walk | |||||
Initial Cost | |||||
Land | 4,530,000 | ||||
Buildings and Improvements | 34,159,000 | ||||
Costs Subsequent to Acquisition/ Construction | 1,263,000 | ||||
Gross Amount Carried at December 31, 2015 | 39,952,000 | ||||
Accumulated Depreciation | 8,331,000 | ||||
Encumbrances | 13,655,000 | ||||
San Sebastian(d) | |||||
Initial Cost | |||||
Land | 7,841,000 | ||||
Buildings and Improvements | 29,037,000 | ||||
Costs Subsequent to Acquisition/ Construction | 252,000 | ||||
Gross Amount Carried at December 31, 2015 | 37,130,000 | ||||
Accumulated Depreciation | 6,455,000 | ||||
Encumbrances | 21,000,000 | ||||
Satori(d) | |||||
Initial Cost | |||||
Land | 8,223,000 | ||||
Buildings and Improvements | 75,126,000 | ||||
Costs Subsequent to Acquisition/ Construction | 1,260,000 | ||||
Gross Amount Carried at December 31, 2015 | 84,609,000 | ||||
Accumulated Depreciation | 14,629,000 | ||||
Encumbrances | 51,000,000 | ||||
SEVEN | |||||
Initial Cost | |||||
Land | 6,041,000 | ||||
Buildings and Improvements | 54,117,000 | ||||
Costs Subsequent to Acquisition/ Construction | 0 | ||||
Gross Amount Carried at December 31, 2015 | 60,158,000 | ||||
Accumulated Depreciation | 1,385,000 | ||||
Encumbrances | 31,407,000 | ||||
Skye 2,905 | |||||
Initial Cost | |||||
Land | 13,831,000 | ||||
Buildings and Improvements | 87,491,000 | ||||
Costs Subsequent to Acquisition/ Construction | 214,000 | ||||
Gross Amount Carried at December 31, 2015 | 101,536,000 | ||||
Accumulated Depreciation | 16,394,000 | ||||
Encumbrances | 55,647,000 | ||||
SoMa(f) | |||||
Initial Cost | |||||
Land | 21,647,000 | ||||
Buildings and Improvements | 51,150,000 | ||||
Costs Subsequent to Acquisition/ Construction | 0 | ||||
Gross Amount Carried at December 31, 2015 | 72,797,000 | ||||
Accumulated Depreciation | 170,000 | ||||
Encumbrances | $ 50,431,000 | ||||
Percent complete | 95.00% | ||||
Stone Gate | |||||
Initial Cost | |||||
Land | $ 8,300,000 | ||||
Buildings and Improvements | 54,634,000 | ||||
Costs Subsequent to Acquisition/ Construction | 1,821,000 | ||||
Gross Amount Carried at December 31, 2015 | 64,755,000 | ||||
Accumulated Depreciation | 11,591,000 | ||||
Encumbrances | 34,029,000 | ||||
The Mark | |||||
Initial Cost | |||||
Land | 13,520,000 | ||||
Buildings and Improvements | 68,574,000 | ||||
Costs Subsequent to Acquisition/ Construction | 0 | ||||
Gross Amount Carried at December 31, 2015 | 82,094,000 | ||||
Accumulated Depreciation | 735,000 | ||||
Encumbrances | 0 | ||||
Verge(f) | |||||
Initial Cost | |||||
Land | 26,620,000 | ||||
Buildings and Improvements | 64,262,000 | ||||
Costs Subsequent to Acquisition/ Construction | 0 | ||||
Gross Amount Carried at December 31, 2015 | 90,882,000 | ||||
Accumulated Depreciation | 887,000 | ||||
Encumbrances | $ 50,519,000 | ||||
Percent complete | 94.00% | ||||
Vara | |||||
Initial Cost | |||||
Land | $ 20,200,000 | ||||
Buildings and Improvements | 88,500,000 | ||||
Costs Subsequent to Acquisition/ Construction | 602,000 | ||||
Gross Amount Carried at December 31, 2015 | 109,302,000 | ||||
Accumulated Depreciation | 9,308,000 | ||||
Encumbrances | 57,000,000 | ||||
The Venue(d) | |||||
Initial Cost | |||||
Land | 1,520,000 | ||||
Buildings and Improvements | 24,249,000 | ||||
Costs Subsequent to Acquisition/ Construction | 255,000 | ||||
Gross Amount Carried at December 31, 2015 | 26,024,000 | ||||
Accumulated Depreciation | 4,887,000 | ||||
Encumbrances | 10,500,000 | ||||
Veritas(d) | |||||
Initial Cost | |||||
Land | 4,950,000 | ||||
Buildings and Improvements | 55,607,000 | ||||
Costs Subsequent to Acquisition/ Construction | 449,000 | ||||
Gross Amount Carried at December 31, 2015 | 61,006,000 | ||||
Accumulated Depreciation | 9,948,000 | ||||
Encumbrances | 34,775,000 | ||||
West Village | |||||
Initial Cost | |||||
Land | 5,301,000 | ||||
Buildings and Improvements | 30,068,000 | ||||
Costs Subsequent to Acquisition/ Construction | 679,000 | ||||
Gross Amount Carried at December 31, 2015 | 36,048,000 | ||||
Accumulated Depreciation | 6,603,000 | ||||
Encumbrances | 19,747,000 | ||||
Zinc | |||||
Initial Cost | |||||
Land | 23,170,000 | ||||
Buildings and Improvements | 159,051,000 | ||||
Costs Subsequent to Acquisition/ Construction | 0 | ||||
Gross Amount Carried at December 31, 2015 | 182,221,000 | ||||
Accumulated Depreciation | 1,132,000 | ||||
Encumbrances | 98,718,000 | ||||
Mortgages and notes payable | |||||
Initial Cost | |||||
Unamortized adjustments from business combinations | 2,500,000 | ||||
Mortgages and notes payable | Consolidated co-investment venture | |||||
Initial Cost | |||||
Unamortized adjustments from business combinations | $ 2,500,000 | $ 4,300,000 |
Real Estate and Accumulated D86
Real Estate and Accumulated Depreciation Schedule III (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Real Estate: | |||
Balance at beginning of year | $ 2,423,704 | $ 2,170,747 | $ 2,177,429 |
Additions, acquisitions and/or consolidation of joint ventures | 854,472 | 292,802 | 163,401 |
Deductions, Sale of real estate property | (153,123) | (39,845) | (170,083) |
Balance at end of year | 3,125,053 | 2,423,704 | 2,170,747 |
Accumulated Depreciation: | |||
Balance at beginning of year | 280,400 | 195,048 | 123,360 |
Depreciation expense | 98,796 | 88,806 | 85,054 |
Deductions | (22,160) | (3,454) | (13,366) |
Balance at end of year | $ 357,036 | $ 280,400 | $ 195,048 |
Mortgage Loans on Real Estate87
Mortgage Loans on Real Estate Schedule IV (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Mortgage Loans on Real Estate | |||||
Face Amount of Note | $ 54,460 | ||||
Carrying Amount of Note | 36,486 | $ 59,750 | $ 52,811 | $ 36,040 | |
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 | ||||
Mezzanine Loans by Community, Kendall Square | |||||
Mortgage Loans on Real Estate | |||||
Interest rate (as a percent) | 15.00% | ||||
Face Amount of Note | $ 12,300 | ||||
Carrying Amount of Note | 12,300 | ||||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 | ||||
Mezzanine Loans by Community, Jefferson Center | |||||
Mortgage Loans on Real Estate | |||||
Interest rate (as a percent) | 15.00% | ||||
Face Amount of Note | $ 14,989 | ||||
Carrying Amount of Note | 15,012 | ||||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 | ||||
Mezzanine Loans by Community, Jefferson at Stonebriar | |||||
Mortgage Loans on Real Estate | |||||
Interest rate (as a percent) | 15.00% | ||||
Face Amount of Note | $ 16,735 | ||||
Carrying Amount of Note | 8,115 | ||||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 | ||||
Mezzanine Loans by Community, Jefferson at Riverside | |||||
Mortgage Loans on Real Estate | |||||
Interest rate (as a percent) | 15.00% | ||||
Face Amount of Note | $ 10,436 | ||||
Carrying Amount of Note | 1,059 | ||||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 | ||||
Subsequent Event | Mezzanine Loans by Community, Kendall Square | |||||
Mortgage Loans on Real Estate | |||||
Interest rate (as a percent) | 17.00% |
Mortgage Loans on Real Estate88
Mortgage Loans on Real Estate Schedule IV (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | May. 31, 2015 | Apr. 30, 2015 | |
Reconciliation of the Carrying Amount of Mortgage Loans: | |||||
Balance at the beginning of the period | $ 59,750 | $ 52,811 | $ 36,040 | ||
Additions: | |||||
New mortgage loans, including advances under mezzanine loans | 9,877 | 6,762 | 40,078 | ||
Capitalized acquisition costs, net of unearned fee income | (843) | 133 | (31) | ||
Deductions: | |||||
Note receivable converted into equity investment | 0 | (4,880) | |||
Collections of principal and loan payoffs | (32,462) | 0 | (18,425) | ||
Amortization of acquisition costs and fee income | 164 | 44 | 29 | ||
Balance at the end of the period | $ 36,486 | $ 59,750 | $ 52,811 | ||
Note receivable | $ 4,400 | $ 44,400 |