Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 31, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | STAG Industrial, Inc. | |
Entity Central Index Key | 1,479,094 | |
Document Period End Date | Sep. 30, 2018 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 108,893,286 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Rental Property: | ||
Land | $ 355,590 | $ 321,560 |
Buildings and improvements, net of accumulated depreciation of $301,787 and $249,057, respectively | 2,202,755 | 1,932,764 |
Deferred leasing intangibles, net of accumulated amortization of $237,892 and $280,642, respectively | 327,734 | 313,253 |
Total rental property, net | 2,886,079 | 2,567,577 |
Cash and cash equivalents | 6,024 | 24,562 |
Restricted cash | 5,231 | 3,567 |
Tenant accounts receivable, net | 39,170 | 33,602 |
Prepaid expenses and other assets | 35,122 | 25,364 |
Interest rate swaps | 17,649 | 6,079 |
Assets held for sale, net | 0 | 19,916 |
Total assets | 2,989,275 | 2,680,667 |
Liabilities: | ||
Unsecured credit facility | 95,000 | 271,000 |
Unsecured term loans, net | 596,085 | 446,265 |
Unsecured notes, net | 572,389 | 398,234 |
Mortgage notes, net | 56,993 | 58,282 |
Accounts payable, accrued expenses and other liabilities | 53,445 | 43,216 |
Interest rate swaps | 0 | 1,217 |
Tenant prepaid rent and security deposits | 19,328 | 19,045 |
Dividends and distributions payable | 14,530 | 11,880 |
Deferred leasing intangibles, net of accumulated amortization of $13,043 and $13,555, respectively | 20,708 | 21,221 |
Total liabilities | 1,428,478 | 1,270,360 |
Commitments and contingencies (Note 10) | ||
Preferred stock, par value $0.01 per share, 15,000,000 shares authorized, | ||
Common stock, par value $0.01 per share, 150,000,000 shares authorized, 107,825,791 and 97,012,543 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively | 1,078 | 970 |
Additional paid-in capital | 2,003,983 | 1,725,825 |
Cumulative dividends in excess of earnings | (589,785) | (516,691) |
Accumulated other comprehensive income | 16,485 | 3,936 |
Total stockholders’ equity | 1,506,761 | 1,359,040 |
Noncontrolling interest | 54,036 | 51,267 |
Total equity | 1,560,797 | 1,410,307 |
Total liabilities and equity | 2,989,275 | 2,680,667 |
Series B Preferred Stock | ||
Preferred stock, par value $0.01 per share, 15,000,000 shares authorized, | ||
Preferred stock | 0 | 70,000 |
Series C Preferred Stock | ||
Preferred stock, par value $0.01 per share, 15,000,000 shares authorized, | ||
Preferred stock | $ 75,000 | $ 75,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Building and Improvements | $ 301,787 | $ 249,057 |
Deferred leasing intangibles assets, accumulated amortization | 237,892 | 280,642 |
Deferred leasing intangibles liabilities, accumulated amortization | $ 13,043 | $ 13,555 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 15,000,000 | 15,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common Stock, shares, issued | 104,238,166 | 97,012,543 |
Common stock, shares outstanding | 104,238,166 | 97,012,543 |
Series B Preferred Stock | ||
Preferred stock, shares issued | 0 | 2,800,000 |
Preferred stock, shares outstanding | 0 | 2,800,000 |
Preferred stock, liquidation preference (in dollars per share) | $ 0 | $ 25 |
Series C Preferred Stock | ||
Preferred stock, shares issued | 3,000,000 | 3,000,000 |
Preferred stock, shares outstanding | 3,000,000 | 3,000,000 |
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues [Abstract] | ||||
Rental income | $ 75,159 | $ 65,673 | $ 217,227 | $ 186,621 |
Tenant recoveries | 13,518 | 12,366 | 39,443 | 32,952 |
Other income | 269 | 105 | 1,033 | 244 |
Total revenue | 88,946 | 78,144 | 257,703 | 219,817 |
Expenses | ||||
Property | 17,112 | 15,401 | 50,735 | 42,312 |
General and administrative | 8,911 | 8,380 | 25,637 | 25,090 |
Property acquisition costs | 0 | 1,386 | 0 | 4,684 |
Depreciation and amortization | 44,355 | 38,186 | 125,221 | 110,286 |
Loss on impairments | 0 | 0 | 2,934 | 0 |
Loss on involuntary conversion | 0 | 0 | 0 | 330 |
Other expenses | 223 | 58 | 864 | 1,502 |
Total expenses | 70,601 | 63,411 | 205,391 | 184,204 |
Other income (expense) | ||||
Interest and other income | 3 | 2 | 16 | 10 |
Interest expense | (12,698) | (10,446) | (35,602) | (31,557) |
Loss on extinguishment of debt | (13) | (13) | (13) | (15) |
Gain on the sales of rental property, net | 3,239 | 17,563 | 32,276 | 19,225 |
Total other income (expense) | (9,469) | 7,106 | (3,323) | (12,337) |
Net income | 8,876 | 21,839 | 48,989 | 23,276 |
Less: income attributable to noncontrolling interest after preferred stock dividends | 281 | 828 | 1,589 | 673 |
Net income attributable to STAG Industrial, Inc. | 8,595 | 21,011 | 47,400 | 22,603 |
Less: preferred stock dividends | 1,289 | 2,449 | 6,315 | 7,345 |
Less: redemption of preferred stock | 0 | 0 | 2,661 | 0 |
Less: amount allocated to participating securities | 69 | 84 | 209 | 250 |
Net income attributable to common stockholders | $ 7,237 | $ 18,478 | $ 38,215 | $ 15,008 |
Weighted average common shares outstanding — basic | 105,783 | 92,787 | 101,095 | 87,632 |
Weighted average common shares outstanding — diluted | 106,333 | 93,435 | 101,495 | 88,238 |
Net income per share — basic and diluted | ||||
Net income per share attributable to common stockholders — basic | $ 0.07 | $ 0.20 | $ 0.38 | $ 0.17 |
Net income per share attributable to common stockholders — diluted | $ 0.07 | $ 0.20 | $ 0.38 | $ 0.17 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 8,876 | $ 21,839 | $ 48,989 | $ 23,276 |
Other comprehensive income: | ||||
Income on interest rate swaps | 2,060 | 598 | 12,811 | 300 |
Other comprehensive income | 2,060 | 598 | 12,811 | 300 |
Comprehensive income | 10,936 | 22,437 | 61,800 | 23,576 |
Income attributable to noncontrolling interest after preferred stock dividends | (281) | (828) | (1,589) | (673) |
Other comprehensive income attributable to noncontrolling interest | (76) | (26) | (509) | (13) |
Comprehensive income attributable to STAG Industrial, Inc. | $ 10,579 | $ 21,583 | $ 59,702 | $ 22,890 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Common Stock Dividends in excess of Earnings | Accumulated Other Comprehensive Income (Loss) | Total Stockholders' Equity | Noncontrolling Interest - Unit holders in Operating Partnership |
Balance at Dec. 31, 2016 | $ 1,066,926 | $ 145,000 | $ 804 | $ 1,293,706 | $ (410,978) | $ (1,496) | $ 1,027,036 | $ 39,890 |
Balance (in shares) at Dec. 31, 2016 | 80,352,304 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Proceeds from sales of common stock | 339,624 | $ 132 | 339,492 | 339,624 | ||||
Proceeds from sales of common stock (in shares) | 13,165,996 | |||||||
Offering costs | (4,746) | (4,746) | (4,746) | |||||
Dividends, Preferred Stock | 0 | |||||||
Dividends, Common Stock | 100,509 | |||||||
Dividends | 100,509 | |||||||
Dividends and Distributions, Net | 105,441 | |||||||
Distribution Made to Limited Partner, Cash Distributions Declared | 4,932 | |||||||
Non-cash compensation activity, net | 6,226 | 2,911 | 2,717 | 3,509 | ||||
Non-cash compensation activity (in shares) | 43,492 | |||||||
Non-cash compensation activity (in excess of earnings) | $ 0 | (194) | ||||||
Redemption of common units to common stock | $ 3 | 3,314 | 3,317 | (3,317) | ||||
Redemption of common units to common stock (in shares) | 300,991 | |||||||
Issuance of units | 18,558 | 18,558 | ||||||
Rebalancing of noncontrolling interest | 3,632 | 3,632 | (3,632) | |||||
Other comprehensive income | 300 | 287 | 287 | 13 | ||||
Net income | 23,276 | 0 | 22,603 | 22,603 | 673 | |||
Balance at Sep. 30, 2017 | 1,344,723 | 145,000 | $ 939 | 1,638,309 | (489,078) | (1,209) | 1,293,961 | 50,762 |
Balance (in shares) at Sep. 30, 2017 | 93,862,783 | |||||||
Balance at Dec. 31, 2016 | 1,066,926 | 145,000 | $ 804 | 1,293,706 | (410,978) | (1,496) | 1,027,036 | $ 39,890 |
Balance (in shares) at Dec. 31, 2016 | 80,352,304 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Redemption of common units to common stock (in shares) | 0 | |||||||
Balance at Dec. 31, 2017 | 1,410,307 | 145,000 | $ 970 | 1,725,825 | (516,691) | 3,936 | 1,359,040 | $ 51,267 |
Balance (in shares) at Dec. 31, 2017 | 97,012,543 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Cash flow hedging instruments cumulative effect adjustment (Note 2) | (258) | 247 | (11) | 11 | ||||
Proceeds from sales of common stock | 276,457 | $ 104 | 276,353 | 276,457 | ||||
Proceeds from sales of common stock (in shares) | 10,387,962 | |||||||
Redemption of preferred stock | (70,017) | (70,000) | (5,141) | (5,158) | (70,017) | 0 | ||
Offering costs | (3,129) | (3,129) | (3,129) | |||||
Dividends, Preferred Stock | 0 | |||||||
Dividends, Common Stock | 114,541 | |||||||
Dividends | 114,541 | |||||||
Dividends and Distributions, Net | 119,794 | |||||||
Distribution Made to Limited Partner, Cash Distributions Declared | 5,253 | |||||||
Non-cash compensation activity, net | 5,173 | 1,829 | 1,293 | 3,880 | ||||
Non-cash compensation activity (in shares) | 73,231 | |||||||
Non-cash compensation activity (in excess of earnings) | $ (1) | (537) | ||||||
Redemption of common units to common stock | $ 3 | 4,398 | 4,401 | $ (4,401) | ||||
Redemption of common units to common stock (in shares) | 352,055 | 0 | ||||||
Rebalancing of noncontrolling interest | (6,434) | (6,434) | $ 6,434 | |||||
Other comprehensive income | 12,811 | 12,302 | 12,302 | 509 | ||||
Net income | 48,989 | 0 | 47,400 | 47,400 | 1,589 | |||
Balance at Sep. 30, 2018 | $ 1,560,797 | $ 75,000 | $ 1,078 | $ 2,003,983 | $ (589,785) | $ 16,485 | $ 1,506,761 | $ 54,036 |
Balance (in shares) at Sep. 30, 2018 | 107,825,791 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||||
Net income | $ 8,876 | $ 21,839 | $ 48,989 | $ 23,276 | |
Adjustment to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization | 125,221 | 110,286 | |||
Loss on impairments | 0 | 0 | 2,934 | 0 | |
Loss on involuntary conversion | 0 | 330 | |||
Non-cash portion of interest expense | 1,698 | 1,465 | |||
Intangible amortization in rental income, net | 1,150 | 1,318 | 3,206 | 3,873 | |
Straight-line rent adjustments, net | (8,297) | (4,855) | |||
Dividends on forfeited equity compensation | 15 | 2 | |||
Loss on extinguishment of debt | (13) | (13) | (13) | (15) | |
Gain on the sales of rental property, net | (32,276) | (19,225) | |||
Non-cash compensation expense | 6,671 | 7,159 | |||
Change in assets and liabilities: | |||||
Tenant accounts receivable, net | 501 | (955) | |||
Prepaid expenses and other assets | (9,597) | (10,479) | |||
Accounts payable, accrued expenses and other liabilities | 9,249 | 5,572 | |||
Tenant prepaid rent and security deposits | 283 | 3,570 | |||
Total adjustments | 99,621 | 96,758 | |||
Net cash provided by operating activities | 148,610 | 120,034 | |||
Cash flows from investing activities: | |||||
Acquisitions of land and buildings and improvements | (382,981) | (405,790) | |||
Additions of land and building and improvements | (23,578) | (27,539) | |||
Acquisitions of other assets | 794 | 0 | |||
Acquisitions of other liabilities | (242) | 0 | |||
Proceeds from sales of rental property, net | 89,407 | 43,454 | |||
Proceeds from insurance on involuntary conversion | 0 | 857 | |||
Acquisition deposits, net | (695) | 685 | |||
Acquisitions of deferred leasing intangibles | (74,851) | (79,961) | |||
Net cash used in investing activities | (393,250) | (468,294) | |||
Cash flows from financing activities: | |||||
Proceeds from unsecured credit facility | 643,000 | 538,000 | |||
Repayment of unsecured credit facility | (819,000) | (321,000) | |||
Proceeds from unsecured term loans | 150,000 | 0 | |||
Proceeds from unsecured notes | 175,000 | 0 | |||
Repayment of mortgage notes | (1,379) | (105,027) | |||
Payment of loan fees and costs | (4,451) | (1,185) | |||
Dividends and distributions | 117,146 | 103,655 | |||
Proceeds from sales of common stock | 276,457 | 339,624 | |||
Redemption of preferred stock | 70,000 | 0 | |||
Dividends and distributions | (1,524) | (969) | |||
Offering costs | (3,191) | (4,746) | |||
Net cash provided by financing activities | 227,766 | 341,042 | |||
Decrease in cash and cash equivalents and restricted cash | (16,874) | (7,218) | |||
Cash and cash equivalents and restricted cash—beginning of period | 28,129 | 21,805 | $ 21,805 | ||
Cash and cash equivalents and restricted cash—end of period | 11,255 | 14,587 | 11,255 | 14,587 | 28,129 |
Supplemental disclosure: | |||||
Cash paid for interest, net of capitalized interest | 31,875 | 30,476 | |||
Supplemental schedule of non-cash investing and financing activities | |||||
Issuance of units for acquisitions of land and building and improvements and deferred leasing intangibles | 0 | 18,558 | |||
Acquisitions of land and buildings and improvements | 232 | 17,304 | |||
Acquisitions of deferred leasing intangibles | 48 | 2,064 | |||
Partial disposal of building due to involuntary conversion of building | 0 | 363 | |||
Investing other receivables due to involuntary conversion of building | 0 | (363) | |||
Change in additions of land, building, and improvements included in accounts payable, accrued expenses, and other liabilities | (1,475) | (13,201) | |||
Additions to building and other capital improvements from non-cash compensation | (20) | (24) | |||
Change in loan fees, costs, and offering costs included in accounts payable, accrued expenses, and other liabilities | 48 | 30 | |||
Reclassification of preferred stock called for redemption to liability | 70,000 | 0 | |||
Dividends and distributions payable | $ 14,530 | $ 11,516 | $ 14,530 | $ 11,516 | $ 11,880 |
Organization and Description of
Organization and Description of Business | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business STAG Industrial, Inc. (the “Company”) is an industrial real estate operating company focused on the acquisition and operation of single-tenant, industrial properties throughout the United States. The Company was formed as a Maryland corporation and has elected to be treated and intends to continue to qualify as a real estate investment trust (“REIT”) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended. The Company is structured as an umbrella partnership REIT, commonly called an UPREIT, and owns substantially all of its assets and conducts substantially all of its business through its operating partnership, STAG Industrial Operating Partnership, L.P., a Delaware limited partnership (the “Operating Partnership”). As of September 30, 2018 and December 31, 2017 , the Company owned a 96.4% and 95.9% , respectively, common equity interest in the Operating Partnership. The Company, through its wholly owned subsidiary, is the sole general partner of the Operating Partnership. As used herein, the “Company” refers to STAG Industrial, Inc. and its consolidated subsidiaries and partnerships, including the Operating Partnership, except where context otherwise requires. As of September 30, 2018 , the Company owned 381 buildings in 37 states with approximately 75.4 million rentable square feet, consisting of 313 warehouse/distribution buildings, 59 light manufacturing buildings, and 9 flex/office buildings. The Company’s buildings were approximately 95.4% leased to 330 tenants as of September 30, 2018 . |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Interim Financial Information The accompanying interim financial statements have been presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and with the instructions to Form 10-Q and Regulation S-X for interim financial information. Accordingly, these statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the accompanying interim financial statements include all adjustments, consisting of normal recurring items, necessary for their fair statement in conformity with GAAP. Interim results are not necessarily indicative of results for a full year. The year-end consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017 . Basis of Presentation The Company’s consolidated financial statements include the accounts of the Company, the Operating Partnership, and their subsidiaries. Interests in the Operating Partnership not owned by the Company are referred to as “Noncontrolling Common Units.” These Noncontrolling Common Units are held by other limited partners in the form of common units (“Other Common Units”) and long term incentive plan units (“LTIP units”) issued pursuant to the STAG Industrial, Inc. 2011 Equity Incentive Plan, as amended (the “2011 Plan”). All significant intercompany balances and transactions have been eliminated in the consolidation of entities. The financial statements of the Company are presented on a consolidated basis for all periods presented. Reclassifications and New Accounting Standards Certain prior year amounts have been reclassified to conform to the current year presentation. New Accounting Standards Adopted In August 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . The purpose of this updated guidance is to better align a company’s financial reporting for hedging activities with the economic objectives of those activities. This standard is effective for fiscal years beginning after December 15, 2018 and interim periods within those years, with early adoption permitted, and the Company adopted this standard effective January 1, 2018 using the modified retrospective transition method. The adoption of this standard resulted in a cumulative effect adjustment of approximately $0.3 million recorded as an increase to cumulative dividends in excess of earnings and an increase to accumulated other comprehensive income as of January 1, 2018 in the accompanying Consolidated Statements of Equity. In May 2017, the FASB issued ASU 2017-09, Stock Compensation (Topic 718): Scope of Modification Accounting , which provides updated guidance about which changes to the terms or conditions of a share-based payment award would require an entity to apply modification accounting under the topic. This standard is effective for fiscal years beginning after December 15, 2017 and interim periods within those years, and the Company adopted this standard prospectively effective January 1, 2018. The adoption of this standard did not have a material effect on the Company's consolidated financial statements. In February 2017, the FASB issued ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets , which provides guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with non-customers. The new standard was issued as part of the new revenue standard (ASU 2014-09, as discussed below), and defines “in substance nonfinancial asset,” unifies guidance related to partial sales of nonfinancial assets, eliminates rules specifically addressing sales of real estate, removes exceptions to the financial asset derecognition model, and clarifies the accounting for contributions of nonfinancial assets to joint ventures. As a result of the new guidance, the guidance specific to real estate sales in Subtopic 360-20 was eliminated, and sales and partial sales of real estate assets will now be subject to the same derecognition model as all other nonfinancial assets. This standard is effective at the same time an entity adopts ASU 2014-09, which the Company adopted effective January 1, 2018. The Company adopted this standard effective January 1, 2018 using the modified retrospective approach. The adoption of this standard did not have a material effect on the Company's consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . The new standard provides a screen to determine when a set of assets and activities is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired or disposed of is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This standard is effective for annual periods beginning after December 15, 2017 and interim periods within those periods, and the Company adopted this standard prospectively effective January 1, 2018. As a result, it is expected that the majority of the Company's acquisitions will be accounted for as asset acquisitions, whereas under the former guidance the majority of the Company's acquisitions had been accounted for as business combinations. The most significant difference between the two accounting models that impacts the Company's consolidated financial statements is that in an asset acquisition, property acquisition costs are generally a component of the consideration transferred to acquire a group of assets and are capitalized as a component of the cost of the assets, whereas in a business combination, property acquisition costs are expensed and not included as part of the consideration transferred. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash . The new standard requires that the statement of cash flows explain the changes during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. This standard is effective for fiscal years beginning after December 15, 2017 and the Company adopted this standard effective January 1, 2018. As a result, the Company has included restricted cash with cash and cash equivalents when reconciling the beginning and end of period total amounts on the accompanying Consolidated Statements of Cash Flows. The effects of this standard were applied retrospectively to all prior periods presented. For the nine months ended September 30, 2017 , the effect of the change in accounting principle was a decrease in cash provided by operating activities of approximately $0.5 million and an increase in cash used in investing activities of approximately $5.6 million on the accompanying Consolidated Statements of Cash Flows. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10) . The amendments in ASU 2016-01 address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The standard primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. ASU 2016-01 is effective for the annual periods beginning after December 31, 2017 and for annual periods and interim periods within those years, and the Company adopted this standard prospectively effective January 1, 2018. The adoption of this standard did not have a material effect on the Company's consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . ASU 2014-09 is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. Additionally, the new revenue guidance requires improved disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted this standard effective January 1, 2018 using the modified retrospective approach. The adoption of this standard did not have a material effect on the Company's consolidated financial statements. New Accounting Standards Issued but not yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , and various subsequent ASU’s, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). Topic 842 supersedes the previous leases standard, Topic 840, Leases . The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. ASU 2016-02 is expected to impact the Company’s consolidated financial statements as the Company has certain operating and land lease arrangements for which it is the lessee, which will result in the recording of a right of use asset and the related lease liability. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The new standard must be adopted using the modified retrospective transition method by recognizing a cumulative effect adjustment to the opening balance of cumulative dividends in excess of earnings, by either applying the new guidance at the beginning of the earliest comparative period or by applying the new guidance at the adoption date. The Company intends to adopt available practical expedients which allows the Company to 1) not reassess whether any expired or existing contracts are or contain leases; 2) not reassess the lease classification for any expired or existing leases; and 3) not reassess initial direct costs for any existing leases. The Company is currently in the process of evaluating the impact the adoption of ASU 2016-02 will have on the Company’s financial position or results of operations, and plans to adopt this standard effective January 1, 2019. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which the Company adopted on January 1, 2018, as discussed in “New Accounting Standards Adopted” above. While lease contracts with customers, which constitute a vast majority of the Company’s revenues, are specifically excluded from the model’s scope, once the new leases standard under ASU 2016-02 is adopted by the Company, the new revenue standard may apply to executory costs and other components of revenue due under leases that are deemed to be non-lease components (such as common area maintenance and provision of utilities), even when the revenue for such activities is not separately stipulated in the lease. In that case, revenue from these items previously recognized on a straight-line basis under current lease guidance would be recognized under the new revenue guidance as the related services are delivered. As a result, while the total revenue recognized over time would not differ under the new guidance, the recognition pattern may be different. In July 2018, the FASB issued ASU 2018-11 which amends Topic 842, Leases , and provides lessors with a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component and, instead, to account for those components as a single component if the non-lease components otherwise would be accounted for under the new revenue guidance and both of the following are met: i) the timing and pattern of transfer of the non-lease component(s) and associated lease component are the same; and ii) the lease component, if accounted for separately, would be classified as an operating lease. Under this new expedient, if the non-lease components associated with the lease component are the predominant component of the combined component, a company should account for the combined component in accordance with Topic 606. Otherwise, the company should account for the combined component as an operating lease in accordance with Topic 842. The Company is currently in the process of evaluating the impact the adoption of ASU 2016-02 will have on the Company’s financial position or results of operations, and plans to adopt this standard effective January 1, 2019. Restricted Cash Restricted cash may include tenant security deposits and cash held in escrow for real estate taxes and capital improvements as required in various mortgage note agreements. Restricted cash also may include amounts held by the Company’s transfer agent for preferred stock dividends that are distributed subsequent to period end. The following table presents a reconciliation of cash and cash equivalents and restricted cash reported on the accompanying Consolidated Balance Sheets to amounts reported on the accompanying Consolidated Statements of Cash Flows. Reconciliation of cash and cash equivalents and restricted cash (in thousands) September 30, 2018 December 31, 2017 Cash and cash equivalents $ 6,024 $ 24,562 Restricted cash 5,231 3,567 Total cash and cash equivalents and restricted cash $ 11,255 $ 28,129 Tenant Accounts Receivable, net As of September 30, 2018 and December 31, 2017 , the Company had an allowance for doubtful accounts of approximately $0.6 million and $0.1 million , respectively. As of September 30, 2018 and December 31, 2017 , the Company had accrued rental income, net of allowance of approximately $30.7 million and $24.7 million , respectively. As of September 30, 2018 and December 31, 2017 , the Company had an allowance on accrued rental income of $0.2 million and $0.2 million , respectively. As of September 30, 2018 and December 31, 2017 , the Company had approximately $14.6 million and $12.7 million , respectively, of total lease security deposits available in the form of existing letters of credit, which are not reflected on the accompanying Consolidated Balance Sheets. As of September 30, 2018 and December 31, 2017 , the Company had approximately $0.7 million and $0.7 million , respectively, of lease security deposits available in cash, which are included in restricted cash on the accompanying Consolidated Balance Sheets. The Company's remaining lease security deposits are commingled in cash and cash equivalents. These funds may be used to settle tenant accounts receivables in the event of a default under the related lease. As of September 30, 2018 and December 31, 2017 , the Company's total liability associated with these lease security deposits was approximately $8.7 million and $8.1 million , respectively, and is included in tenant prepaid rent and security deposits on the accompanying Consolidated Balance Sheets. Revenue Recognition Tenant Recoveries The Company estimates that real estate taxes, which are the responsibility of certain tenants under the terms of their leases and are not reflected on the Company's consolidated financial statements, were approximately $3.8 million , $10.9 million , $2.9 million and $9.2 million for the three and nine months ended September 30, 2018 and 2017 , respectively. These amounts would have been the maximum real estate tax expense of the Company, excluding any penalties or interest, had the tenants not met their contractual obligations for these periods. Gain on the Sales of Rental Property, net The timing of the derecognition of a rental property and the corresponding recognition of gain on the sales of rental property, net is measured by various criteria related to the terms of the sale transaction, and if the Company has lost control of the property and the acquirer has gained control of the property after the transaction. If the derecognition criteria is met, the full gain is recognized. Taxes Federal Income Taxes The Company's taxable REIT subsidiaries recognized a net loss of approximately $22,000 , $0.1 million , $0.2 million and $0.4 million for the three and nine months ended September 30, 2018 and 2017 , respectively, which has been included on the accompanying Consolidated Statements of Operations. State and Local Income, Excise, and Franchise Tax State and local income, excise, and franchise taxes in the amount of $0.1 million , $0.6 million , $0.3 million and $0.7 million have been recorded in other expenses on the accompanying Consolidated Statements of Operations for the three and nine months ended September 30, 2018 and 2017 , respectively. Uncertain Tax Positions As of September 30, 2018 and December 31, 2017 , there were no liabilities for uncertain tax positions. Concentrations of Credit Risk Management believes the current credit risk portfolio is reasonably well diversified and does not contain any unusual concentration of credit risk. |
Rental Property
Rental Property | 9 Months Ended |
Sep. 30, 2018 | |
Real Estate [Abstract] | |
Rental Property | Rental Property The following table summarizes the components of rental property as of September 30, 2018 and December 31, 2017 . Rental Property (in thousands) September 30, 2018 December 31, 2017 Land $ 355,590 $ 321,560 Buildings, net of accumulated depreciation of $190,538 and $160,281, respectivel y 2,006,013 1,756,579 Tenant improvements, net of accumulated depreciation of $35,495 and $32,714, respectively 30,577 30,138 Building and land improvements, net of accumulated depreciation of $75,754 and $56,062, respectivel y 160,496 143,170 Construction in progress 5,669 2,877 Deferred leasing intangibles, net of accumulated amortization of $237,892 and $280,642, respectively 327,734 313,253 Total rental property, net $ 2,886,079 $ 2,567,577 Acquisitions The following table summarizes the acquisitions of the Company during the three and nine months ended September 30, 2018 . Market (1) Date Acquired Square Feet Buildings Purchase Price Greenville/Spartanburg, SC January 11, 2018 203,000 1 $ 10,755 Minneapolis/St Paul, MN January 26, 2018 145,351 1 13,538 Philadelphia, PA February 1, 2018 278,582 1 18,277 Houston, TX February 22, 2018 242,225 2 22,478 Greenville/Spartanburg, SC March 30, 2018 222,710 1 13,773 Three months ended March 31, 2018 1,091,868 6 78,821 Chicago, IL April 23, 2018 169,311 2 10,975 Milwaukee/Madison, WI April 26, 2018 53,680 1 4,316 Pittsburgh, PA April 30, 2018 175,000 1 15,380 Detroit, MI May 9, 2018 274,500 1 19,328 Minneapolis/St Paul, MN May 15, 2018 509,910 2 26,983 Cincinnati/Dayton, OH May 23, 2018 158,500 1 7,317 Baton Rouge, LA May 31, 2018 279,236 1 21,379 Las Vegas, NV June 12, 2018 122,472 1 17,920 Greenville/Spartanburg, SC June 15, 2018 131,805 1 5,621 Denver, CO June 18, 2018 64,750 1 7,044 Cincinnati/Dayton, OH June 25, 2018 465,136 1 16,421 Charlotte, NC June 29, 2018 69,200 1 5,446 Houston, TX June 29, 2018 252,662 1 27,170 Three months ended June 30, 2018 2,726,162 15 185,300 Knoxville, TN July 10, 2018 106,000 1 6,477 Pittsburgh, PA August 2, 2018 265,568 1 19,186 Raleigh/Durham, NC August 2, 2018 365,000 1 21,067 Detroit, MI August 6, 2018 439,150 1 21,077 Des Moines, IA August 8, 2018 121,922 1 6,053 McAllen/Edinburg/Pharr, TX August 9, 2018 270,084 1 18,523 Pittsburgh, PA August 15, 2018 200,500 1 11,327 Minneapolis/St Paul, MN August 24, 2018 120,606 1 8,422 Milwaukee/Madison, WI September 28, 2018 100,800 1 7,484 Milwaukee/Madison, WI September 28, 2018 174,633 2 13,288 Chicago, IL September 28, 2018 105,637 1 6,368 Indianapolis, IN September 28, 2018 478,721 1 29,085 Augusta/Richmond County, GA September 28, 2018 203,726 1 9,379 Charlotte, NC September 28, 2018 301,000 1 16,807 Three months ended September 30, 2018 3,253,347 15 194,543 Nine months ended September 30, 2018 7,071,377 36 $ 458,664 (1) As defined by CoStar Realty Information Inc. The following table summarizes the allocation of the consideration paid at the date of acquisition during the nine months ended September 30, 2018 for the acquired assets and liabilities in connection with the acquisitions identified in the table above. Acquired Assets and Liabilities Purchase Price (in thousands) Weighted Average Amortization Period (years) of Intangibles at Acquisition Land $ 39,340 N/A Buildings 317,293 N/A Tenant improvements 4,849 N/A Building and land improvements 21,731 N/A Deferred leasing intangibles - In-place leases 52,276 8.7 Deferred leasing intangibles - Tenant relationships 21,861 11.8 Deferred leasing intangibles - Above market leases 4,062 8.2 Deferred leasing intangibles - Below market leases (3,122 ) 6.7 Deferred leasing intangibles - Above market ground leases (178 ) 48.1 Other assets 794 N/A Other liabilities (242 ) N/A Total purchase price $ 458,664 The table below sets forth the results of operations for the three and nine months ended September 30, 2018 for the buildings acquired during the nine months ended September 30, 2018 included in the Company’s Consolidated Statements of Operations from the date of acquisition. Results of Operations (in thousands) Three months ended September 30, 2018 Nine months ended September 30, 2018 Total revenue $ 7,122 $ 11,156 Net income $ 1,556 $ 1,642 Dispositions During the nine months ended September 30, 2018 , the Company sold 11 buildings comprised of approximately 2.0 million square feet with a net book value of approximately $57.1 million to third parties. These buildings contributed approximately $0.1 million , $2.7 million , $2.6 million and $7.7 million to revenue for the three and nine months ended September 30, 2018 and 2017 , respectively. These buildings contributed approximately $5,000 , $0.1 million , $0.5 million and $1.4 million to net income (exclusive of loss on involuntary conversion, loss on impairments, and gain on the sales of rental property, net) for the three and nine months ended September 30, 2018 and 2017 , respectively. Net proceeds from the sales of rental property were approximately $89.4 million and the Company recognized the full gain on the sales of rental property, net of approximately $32.3 million for the nine months ended September 30, 2018 . Loss on Impairments The following table summarizes the Company's loss on impairments for assets held and used during the nine months ended September 30, 2018 . Market (1) Buildings Event or Change in Circumstance Leading to Impairment Evaluation (2) Valuation technique utilized to estimate fair value Fair Value (3) Loss on Impairments (in thousands) Buena Vista, VA (4) 1 Change in estimated hold period (5) Discounted cash flows (6) Sergeant Bluff, IA (4) 1 Change in estimated hold period (5) Discounted cash flows (6) Three months ended March 31, 2018 $ 3,176 $ 2,934 Nine months ended September 30, 2018 $ 3,176 $ 2,934 (1) As defined by CoStar Realty Information Inc. (2) The Company tested the asset group for impairment utilizing a probability weighted recovery analysis of certain scenarios, and it was determined that the carrying value of the property and intangibles were not recoverable from the estimated future undiscounted cash flows. (3) The estimated fair value of the assets held and used is based on Level 3 inputs and is a non-recurring fair value measurement. Level 3 is defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. (4) These buildings do not have markets as defined by CoStar Realty Information Inc. (5) This property was sold during the nine months ended September 30, 2018 . (6) Level 3 inputs used to determine fair value for the impaired assets held and used for the three months ended March 31, 2018: discount rates ranged from 11.0% to 14.5% and exit capitalization rates ranged from 11.0% to 13.0% . Deferred Leasing Intangibles The following table sets forth the deferred leasing intangibles on the accompanying Consolidated Balance Sheets as of September 30, 2018 and December 31, 2017 . September 30, 2018 December 31, 2017 Deferred Leasing Intangibles (in thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Above market leases $ 70,454 $ (31,663 ) $ 38,791 $ 78,558 $ (36,810 ) $ 41,748 Other intangible lease assets 495,172 (206,229 ) 288,943 515,337 (243,832 ) 271,505 Total deferred leasing intangible assets $ 565,626 $ (237,892 ) $ 327,734 $ 593,895 $ (280,642 ) $ 313,253 Below market leases $ 33,751 $ (13,043 ) $ 20,708 $ 34,776 $ (13,555 ) $ 21,221 Total deferred leasing intangible liabilities $ 33,751 $ (13,043 ) $ 20,708 $ 34,776 $ (13,555 ) $ 21,221 The following table sets forth the amortization expense and the net decrease to rental income for the amortization of deferred leasing intangibles during the three and nine months ended September 30, 2018 and 2017 . Three months ended September 30, Nine months ended September 30, Deferred Leasing Intangibles Amortization (in thousands) 2018 2017 2018 2017 Net decrease to rental income related to above and below market lease amortization $ 1,150 $ 1,318 $ 3,206 $ 3,873 Amortization expense related to other intangible lease assets $ 20,361 $ 17,934 $ 56,698 $ 53,747 The following table sets forth the amortization of deferred leasing intangibles over the next five calendar years beginning with 2018 as of September 30, 2018 . Year Amortization Expense Related to Other Intangible Lease Assets (in thousands) Net Decrease to Rental Income Related to Above and Below Market Lease Amortization (in thousands) Remainder of 2018 $ 17,263 $ 927 2019 $ 57,841 $ 3,926 2020 $ 47,750 $ 3,546 2021 $ 37,229 $ 2,163 2022 $ 29,690 $ 1,154 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table sets forth a summary of the Company’s outstanding indebtedness, including borrowings under the Company’s unsecured credit facility, unsecured term loans, unsecured notes, and mortgage notes as of September 30, 2018 and December 31, 2017 . Loan Principal Outstanding as of September 30, 2018 (in thousands) Principal Outstanding as of December 31, 2017 (in thousands) Interest (1) Maturity Date Prepayment Terms (2) Unsecured credit facility: Unsecured Credit Facility (3) $ 95,000 $ 271,000 L + 1.05% Jan-15-2023 i Total unsecured credit facility 95,000 271,000 Unsecured term loans: Unsecured Term Loan C 150,000 150,000 L + 1.30% Sep-29-2020 i Unsecured Term Loan B 150,000 150,000 L + 1.30% Mar-21-2021 i Unsecured Term Loan A 150,000 150,000 L + 1.30% Mar-31-2022 i Unsecured Term Loan D 150,000 — L + 1.30% Jan-04-2023 i Unsecured Term Loan E (4) — — L + 1.20% Jan-15-2024 i Total unsecured term loans 600,000 450,000 Less: Total unamortized deferred financing fees and debt issuance costs (3,915 ) (3,735 ) Total carrying value unsecured term loans, net 596,085 446,265 Unsecured notes: Series F Unsecured Notes 100,000 100,000 3.98 % Jan-05-2023 ii Series A Unsecured Notes 50,000 50,000 4.98 % Oct-1-2024 ii Series D Unsecured Notes 100,000 100,000 4.32 % Feb-20-2025 ii Series G Unsecured Notes 75,000 — 4.10 % Jun-13-2025 ii Series B Unsecured Notes 50,000 50,000 4.98 % Jul-1-2026 ii Series C Unsecured Notes 80,000 80,000 4.42 % Dec-30-2026 ii Series E Unsecured Notes 20,000 20,000 4.42 % Feb-20-2027 ii Series H Unsecured Notes 100,000 — 4.27 % Jun-13-2028 ii Total unsecured notes 575,000 400,000 Less: Total unamortized deferred financing fees and debt issuance costs (2,611 ) (1,766 ) Total carrying value unsecured notes, net 572,389 398,234 Mortgage notes (secured debt): Wells Fargo Bank, National Association CMBS Loan 53,652 54,949 4.31 % Dec-1-2022 iii Thrivent Financial for Lutherans 3,824 3,906 4.78 % Dec-15-2023 iv Total mortgage notes 57,476 58,855 Add: Total unamortized fair market value premiums 52 61 Less: Total unamortized deferred financing fees and debt issuance costs (535 ) (634 ) Total carrying value mortgage notes, net 56,993 58,282 Total / weighted average interest rate (5) $ 1,320,467 $ 1,173,781 3.69 % (1) Interest rate as of September 30, 2018 . At September 30, 2018 , the one-month LIBOR (“L”) was 2.26056% . The interest rate is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums. The spread over the applicable rate for the Company's unsecured credit facility and unsecured term loans is based on the Company's consolidated leverage ratio, as defined in the respective loan agreements. (2) Prepayment terms consist of (i) pre-payable with no penalty; (ii) pre-payable with penalty; (iii) pre-payable without penalty three months prior to the maturity date, however can be defeased beginning January 1, 2016; and (iv) pre-payable without penalty three months prior to the maturity date. (3) The capacity of the unsecured credit facility is $500.0 million . Deferred financing fees and debt issuance costs, net of accumulated amortization related to the unsecured credit facility of approximately $3.4 million and $1.5 million is included in prepaid expenses and other assets on the accompanying Consolidated Balance Sheets as of September 30, 2018 and December 31, 2017 , respectively. (4) Capacity of $175.0 million , which the Company has until July 25, 2019 to draw. (5) The weighted average interest rate was calculated using the fixed interest rate swapped on the notional amount of $600.0 million of debt that was in effect as of September 30, 2018 , and is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums. The aggregate undrawn nominal commitment on the unsecured credit facility and unsecured term loans as of September 30, 2018 was approximately $574.4 million , including issued letters of credit. The Company's actual borrowing capacity at any given point in time may be less and is restricted to a maximum amount based on the Company's debt covenant compliance. Total accrued interest for the Company's indebtedness was approximately $7.7 million and $5.6 million as of September 30, 2018 and December 31, 2017 , respectively, and is included in accounts payable, accrued expenses and other liabilities on the accompanying Consolidated Balance Sheets. The table below sets forth the costs included in interest expense related to the Company's debt arrangements on the accompanying Consolidated Statement of Operations for the three and nine months ended September 30, 2018 and 2017 . Three months ended September 30, Nine months ended September 30, Costs Included in Interest Expense (in thousands) 2018 2017 2018 2017 Amortization of deferred financing fees and debt issuance costs and fair market value premiums $ 617 $ 546 $ 1,698 $ 1,553 Facility fees and unused fees $ 275 $ 286 $ 928 $ 839 On July 26, 2018 , the Company closed on the refinancing of its unsecured credit facility. The refinancing transaction included extending the maturity date to January 15, 2023 , increasing the capacity to $500.0 million , and reducing the annual interest rate. As of September 30, 2018 , the interest rate on the unsecured credit facility was LIBOR plus a spread of 1.05% based on the Company’s consolidated leverage ratio, as defined in the credit agreement. The Company recognized a loss of approximately $13,000 as a result of the acceleration of unamortized deferred financing fees, which is included in loss on extinguishment of debt in the accompanying Consolidated Statements of Operations. The remaining unamortized deferred financing fees were carried over and will be amortized with any new deferred financing fees through the new maturity date of the unsecured credit facility. As of September 30, 2018 , the unsecured credit facility has an annual facility fee of 0.15% based on the Company’s consolidated leverage ratio, as defined in the credit agreement, of total commitments that is due and payable quarterly. The Company also is required to pay an annual fee of $50,000 . On July 26, 2018 , the Company entered into a $175.0 million unsecured term loan agreement ("Unsecured Term Loan E"). As of September 30, 2018 , the interest rate on the Unsecured Term Loan E was LIBOR plus a spread of 1.20% based on the Company's consolidated leverage ratio, as defined in the loan agreement. Unless otherwise terminated pursuant to the loan agreement, the Unsecured Term Loan E will mature on January 15, 2024 . The Unsecured Term Loan E has an accordion feature that allows the Company to increase its borrowing capacity to $350.0 million , subject to the satisfaction of certain conditions and lender consents. The agreement includes a delayed draw feature that allows the Company to draw up to six advances of at least $25.0 million each until July 25, 2019. To the extent that the Company does not request advances of the $175.0 million of aggregate commitments by July 25, 2019, the unadvanced commitments terminate. The Unsecured Term Loan E has an unused commitment fee equal to 0.15% of its unused commitments, which began to accrue on October 24, 2018 and is due and payable monthly until the earlier of (i) the date that commitments of $175.0 million have been fully advanced, (ii) July 26, 2019, and (iii) the date that commitments of $175.0 million have been reduced to zero pursuant to the terms of the agreement. The Company also is required to pay an annual fee of $35,000 . The Company and certain wholly owned subsidiaries of the Operating Partnership are guarantors of the Unsecured Term Loan E. The agreement also contains financial and other covenants substantially similar to the covenants in the Company's unsecured credit facility. On July 26, 2018, the Company entered into amendments to its unsecured term loan agreements to conform certain provisions to the Unsecured Term Loan E agreement and the new unsecured credit facility agreement. On April 10, 2018 , the Company entered into a note purchase agreement (“NPA”) for the private placement by the Operating Partnership of $75.0 million senior unsecured notes (“Series G Unsecured Notes”) maturing June 13, 2025 with a fixed annual interest rate of 4.10% , and $100.0 million senior unsecured notes (“Series H Unsecured Notes”) maturing June 13, 2028 with a fixed annual interest rate of 4.27% . The NPA contains a number of financial covenants substantially similar to the financial covenants contained in the Company’s unsecured credit facility and other unsecured notes. The Operating Partnership issued the Series G Unsecured Notes and the Series H Unsecured Notes on June 13, 2018. In addition, on April 10, 2018, the Company entered into amendments to the note purchase agreements related to the Company’s outstanding unsecured notes to conform certain provisions in the agreements to the provisions in the NPA. On March 28, 2018, the Company drew $75.0 million of the $150.0 million unsecured term loan that was entered into on July 28, 2017. On July 27, 2018, the Company drew the remaining $75.0 million of the $150.0 million unsecured term loan. Financial Covenant Considerations The Company was in compliance with all financial and other covenants as of September 30, 2018 and December 31, 2017 related to its unsecured credit facility, unsecured term loans, unsecured notes, and mortgage notes. The real estate net book value of the properties that are collateral for the Company’s debt arrangements was approximately $88.4 million and $90.9 million at September 30, 2018 and December 31, 2017 , respectively, and is limited to senior, property-level secured debt financing arrangements. Fair Value of Debt The following table presents the aggregate principal outstanding under the Company’s debt arrangements and the corresponding estimate of fair value as of September 30, 2018 and December 31, 2017 (in thousands). September 30, 2018 December 31, 2017 Principal Outstanding Fair Value Principal Outstanding Fair Value Unsecured credit facility $ 95,000 $ 95,000 $ 271,000 $ 271,528 Unsecured term loans 600,000 607,663 450,000 451,463 Unsecured notes 575,000 569,493 400,000 415,599 Mortgage notes 57,476 57,608 58,855 59,769 Total principal amount 1,327,476 $ 1,329,764 1,179,855 $ 1,198,359 Add: Total unamortized fair market value premiums 52 61 Less: Total unamortized deferred financing fees and debt issuance costs (7,061 ) (6,135 ) Total carrying value $ 1,320,467 $ 1,173,781 The applicable fair value guidance establishes a three tier value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The fair value of the Company’s debt is based on Level 3 inputs. |
Use of Derivative Financial Ins
Use of Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Use of Derivative Financial Instruments | Use of Derivative Financial Instruments Risk Management Objective of Using Derivatives The Company’s use of derivative instruments is limited to the utilization of interest rate swaps to manage interest rate risk exposure on existing and future liabilities and not for speculative purposes. The principal objective of such arrangements is to minimize the risks and related costs associated with the Company’s operating and financial structure. The following table details the Company’s outstanding interest rate swaps as of September 30, 2018 . All of the Company’s interest rate swaps are designated as qualifying cash flow hedges. Interest Rate Trade Date Effective Date Notional Amount Fair Value Pay Fixed Interest Rate Receive Variable Interest Rate Maturity Date Regions Bank Mar-01-2013 Mar-01-2013 $ 25,000 $ 471 1.3300 % One-month L Feb-14-2020 Capital One, N.A. Jun-13-2013 Jul-01-2013 $ 50,000 $ 703 1.6810 % One-month L Feb-14-2020 Capital One, N.A. Jun-13-2013 Aug-01-2013 $ 25,000 $ 344 1.7030 % One-month L Feb-14-2020 Regions Bank Sep-30-2013 Feb-03-2014 $ 25,000 $ 245 1.9925 % One-month L Feb-14-2020 The Toronto-Dominion Bank Oct-14-2015 Sep-29-2016 $ 25,000 $ 700 1.3830 % One-month L Sep-29-2020 PNC Bank, N.A. Oct-14-2015 Sep-29-2016 $ 50,000 $ 1,391 1.3906 % One-month L Sep-29-2020 Regions Bank Oct-14-2015 Sep-29-2016 $ 35,000 $ 978 1.3858 % One-month L Sep-29-2020 U.S. Bank, N.A. Oct-14-2015 Sep-29-2016 $ 25,000 $ 695 1.3950 % One-month L Sep-29-2020 Capital One, N.A. Oct-14-2015 Sep-29-2016 $ 15,000 $ 417 1.3950 % One-month L Sep-29-2020 Royal Bank of Canada Jan-08-2015 Mar-20-2015 $ 25,000 $ 684 1.7090 % One-month L Mar-21-2021 The Toronto-Dominion Bank Jan-08-2015 Mar-20-2015 $ 25,000 $ 682 1.7105 % One-month L Mar-21-2021 The Toronto-Dominion Bank Jan-08-2015 Sep-10-2017 $ 100,000 $ 1,488 2.2255 % One-month L Mar-21-2021 Wells Fargo, N.A. Jan-08-2015 Mar-20-2015 $ 25,000 $ 886 1.8280 % One-month L Mar-31-2022 The Toronto-Dominion Bank Jan-08-2015 Feb-14-2020 $ 25,000 $ 271 2.4535 % One-month L Mar-31-2022 Regions Bank Jan-08-2015 Feb-14-2020 $ 50,000 $ 520 2.4750 % One-month L Mar-31-2022 Capital One, N.A. Jan-08-2015 Feb-14-2020 $ 50,000 $ 467 2.5300 % One-month L Mar-31-2022 The Toronto-Dominion Bank Jul-20-2017 Oct-30-2017 $ 25,000 $ 1,054 1.8485 % One-month L Jan-04-2023 Royal Bank of Canada Jul-20-2017 Oct-30-2017 $ 25,000 $ 1,054 1.8505 % One-month L Jan-04-2023 Wells Fargo, N.A. Jul-20-2017 Oct-30-2017 $ 25,000 $ 1,055 1.8505 % One-month L Jan-04-2023 PNC Bank, N.A. Jul-20-2017 Oct-30-2017 $ 25,000 $ 1,052 1.8485 % One-month L Jan-04-2023 PNC Bank, N.A. Jul-20-2017 Oct-30-2017 $ 50,000 $ 2,105 1.8475 % One-month L Jan-04-2023 The Toronto-Dominion Bank Jul-24-2018 Jul-26-2019 $ 50,000 $ 111 2.9180 % One-month L Jan-12-2024 PNC Bank, N.A. Jul-24-2018 Jul-26-2019 $ 50,000 $ 106 2.9190 % One-month L Jan-12-2024 Bank of Montreal Jul-24-2018 Jul-26-2019 $ 50,000 $ 113 2.9190 % One-month L Jan-12-2024 U.S. Bank, N.A. Jul-24-2018 Jul-26-2019 $ 25,000 $ 57 2.9190 % One-month L Jan-12-2024 The fair value of the interest rate swaps outstanding as of September 30, 2018 and December 31, 2017 was as follows. Balance Sheet Line Item (in thousands) Notional Amount September 30, 2018 Fair Value Notional Amount December 31, 2017 Fair Value December 31, 2017 Interest rate swaps-Asset $ 900,000 $ 17,649 $ 475,000 $ 6,079 Interest rate swaps-Liability $ — $ — $ 250,000 $ (1,217 ) Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate swaps are to add stability to interest expense and to manage its exposure to interest rate movements. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income and subsequently reclassified into interest expense in the same periods during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives designated as qualifying cash flow hedges will be reclassified to interest expense as interest payments are made on the Company's variable rate debt. The Company estimates that approximately $5.1 million will be reclassified from accumulated other comprehensive income as a decrease to interest expense over the next 12 months. The table below presents the effect of cash flow hedge accounting and the location in the consolidated financial statements for the three and nine months ended September 30, 2018 and 2017 . Three months ended September 30, Nine months ended September 30, Effect of Cash Flow Hedge Accounting (in thousands) 2018 2017 2018 2017 Income (loss) recognized in accumulated other comprehensive income on interest rate swaps $ 2,572 $ 316 $ 13,349 $ (1,126 ) Income (loss) reclassified from accumulated other comprehensive income into income (loss) as interest expense $ 512 $ (282 ) $ 538 $ (1,426 ) Total interest expense presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded $ 12,698 $ 10,446 $ 35,602 $ 31,557 Credit-risk-related Contingent Features The Company has agreements with each of its derivative counterparties that contain a provision where the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company's default on the indebtedness. As of September 30, 2018 , the Company had no derivatives that were in a net liability position by counterparty. Fair Value of Interest Rate Swaps The Company’s valuation of the interest rate swaps is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs including interest rate curves. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of September 30, 2018 and December 31, 2017 , the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. The following sets forth the Company’s financial instruments that are accounted for at fair value on a recurring basis as of September 30, 2018 and December 31, 2017 . Fair Value Measurements as of Balance Sheet Line Item (in thousands) Fair Value Level 1 Level 2 Level 3 Interest rate swaps-Asset $ 17,649 $ — $ 17,649 $ — Interest rate swaps-Liability $ — $ — $ — $ — Fair Value Measurements as of Balance Sheet Line Item (in thousands) Fair Value December 31, 2017 Level 1 Level 2 Level 3 Interest rate swaps-Asset $ 6,079 $ — $ 6,079 $ — Interest rate swaps-Liability $ (1,217 ) $ — $ (1,217 ) $ — |
Equity
Equity | 9 Months Ended |
Sep. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Equity | Equity Preferred Stock On June 11, 2018, the Company gave notice to redeem all 2,800,000 issued and outstanding shares of the 6.625% Series B Cumulative Redeemable Preferred Stock (“Series B Preferred Stock”). The Company recognized a deemed dividend to the holders of the Series B Preferred Stock of approximately $2.7 million on the accompanying Consolidated Statements of Operations for the nine months ended September 30, 2018 related to redemption costs and the original issuance costs of the Series B Preferred Stock. On July 11, 2018, the Company redeemed all of the Series B Preferred Stock. The table below sets forth the Company’s outstanding preferred stock issuances as of September 30, 2018 . Preferred Stock Issuances Issuance Date Number of Shares Liquidation Value Per Share Interest Rate 6.875% Series C Cumulative Redeemable Preferred Stock ( “ Series C Preferred Stock ” ) March 17, 2016 3,000,000 $ 25.00 6.875 % The tables below set forth the dividends attributable to the Company's outstanding preferred stock issuances during the nine months ended September 30, 2018 and the year ended December 31, 2017 . Quarter Ended 2018 Declaration Date Series B Series C Payment Date September 30 July 11, 2018 $ 0.0460069 (1) $ 0.4296875 October 1, 2018 June 30 April 10, 2018 0.4140625 0.4296875 July 2, 2018 March 31 February 14, 2018 0.4140625 0.4296875 April 2, 2018 Total $ 0.8741319 $ 1.2890625 (1) On June 11, 2018, the Company gave notice to redeem all 2,800,000 issued and outstanding shares of the Series B Preferred Stock. On July 11, 2018, the Company redeemed all of the Series B Preferred Stock at a cash redemption price of $25.00 per share, plus accrued and unpaid dividends to but excluding the redemption date, without interest. Quarter Ended 2017 Declaration Date Series B Preferred Stock Per Share Series C Preferred Stock Per Share Payment Date December 31 November 2, 2017 $ 0.4140625 $ 0.4296875 December 29, 2017 September 30 July 31, 2017 0.4140625 0.4296875 September 29, 2017 June 30 May 1, 2017 0.4140625 0.4296875 June 30, 2017 March 31 February 15, 2017 0.4140625 0.4296875 March 31, 2017 Total $ 1.6562500 $ 1.7187500 On October 10, 2018 , the Company’s board of directors declared the Series C Preferred Stock dividends for the quarter ending December 31, 2018 at a quarterly rate of $0.4296875 per share. Common Stock The following table sets forth the terms of the Company’s at-the market (“ATM”) common stock offering program as of September 30, 2018 . ATM Common Stock Offering Program Date Maximum Aggregate Offering Price (in thousands) Aggregate Common Stock Available as of 2017 $500 million ATM November 13, 2017 $ 500,000 $ 213,217 The table below set forth the activity under the ATM common stock offering programs during the nine months ended September 30, 2018 and year ended December 31, 2017 (in thousands, except share data). Nine months ended September 30, 2018 ATM Common Stock Offering Program Shares Weighted Average Price Per Share Gross Sales Net 2017 $500 million ATM 10,387,962 $ 26.61 $ 276,457 $ 2,888 $ 273,569 Total/weighted average 10,387,962 $ 26.61 $ 276,457 $ 2,888 $ 273,569 Year ended December 31, 2017 ATM Common Stock Offering Program Shares Weighted Average Price Per Share Gross Sales Net 2017 $500 million ATM 363,843 $ 28.38 $ 10,326 $ 129 $ 10,197 2017 $300 million ATM (1) 11,098,748 $ 27.03 300,000 3,637 296,363 2016 $228 million ATM (1) 4,799,784 $ 24.42 117,216 1,604 115,612 Total/weighted average 16,262,375 $ 26.29 $ 427,542 $ 5,370 $ 422,172 (1) These programs ended before December 31, 2017 . The table below sets forth the dividends attributable to the Company's outstanding shares of common stock that were declared during the nine months ended September 30, 2018 and the year ended December 31, 2017 . Month Ended 2018 Declaration Date Record Date Per Share Payment Date September 30 July 11, 2018 September 28, 2018 $ 0.118333 October 15, 2018 August 31 July 11, 2018 August 31, 2018 0.118333 September 17, 2018 July 31 July 11, 2018 July 31, 2018 0.118333 August 15, 2018 June 30 April 10, 2018 June 29, 2018 0.118333 July 16, 2018 May 31 April 10, 2018 May 31, 2018 0.118333 June 15, 2018 April 30 April 10, 2018 April 30, 2018 0.118333 May 15, 2018 March 31 November 2, 2017 March 29, 2018 0.118333 April 16, 2018 February 28 November 2, 2017 February 28, 2018 0.118333 March 15, 2018 January 31 November 2, 2017 January 31, 2018 0.118333 February 15, 2018 Total $ 1.064997 Month Ended 2017 Declaration Date Record Date Per Share Payment Date December 31 July 31, 2017 December 29, 2017 $ 0.117500 January 16, 2018 November 30 July 31, 2017 November 30, 2017 0.117500 December 15, 2017 October 31 July 31, 2017 October 31, 2017 0.117500 November 15, 2017 September 30 May 1, 2017 September 29, 2017 0.117500 October 16, 2017 August 31 May 1, 2017 August 31, 2017 0.117500 September 15, 2017 July 31 May 1, 2017 July 31, 2017 0.117500 August 15, 2017 June 30 February 15, 2017 June 30, 2017 0.116667 July 17, 2017 May 31 February 15, 2017 May 31, 2017 0.116667 June 15, 2017 April 30 February 15, 2017 April 28, 2017 0.116667 May 15, 2017 March 31 November 2, 2016 March 31, 2017 0.116667 April 17, 2017 February 28 November 2, 2016 February 28, 2017 0.116667 March 15, 2017 January 31 November 2, 2016 January 31, 2017 0.116667 February 15, 2017 Total $ 1.405002 On October 10, 2018 , the Company’s board of directors declared the common stock dividends for the months ending October 31, 2018 , November 30, 2018 and December 31, 2018 at a monthly rate of $0.118333 per share of common stock. Restricted Stock-Based Compensation Restricted shares of common stock granted on January 5, 2018 to certain employees of the Company, subject to the recipient’s continued employment, will vest in four equal installments on January 1 of each year beginning in 2019. The following table summarizes activity related to the Company’s unvested restricted shares of common stock for the nine months ended September 30, 2018 and the year ended December 31, 2017 . Unvested Restricted Shares of Common Stock Shares Balance at December 31, 2016 272,337 Granted 75,001 (1) Vested (109,209 ) (2) Forfeited (922 ) Balance at December 31, 2017 237,207 Granted 76,659 (1) Vested (112,405 ) (2) Forfeited (10,630 ) Balance at September 30, 2018 190,831 (1) The fair value per share on the grant date of January 5, 2018 and January 6, 2017 was $26.40 and $24.41 , respectively. (2) The Company repurchased and retired 41,975 and 40,836 restricted shares of common stock that vested during the nine months ended September 30, 2018 and the year ended December 31, 2017 , respectively. The unrecognized compensation expense associated with the Company’s restricted shares of common stock at September 30, 2018 was approximately $3.1 million and is expected to be recognized over a weighted average period of approximately 2.5 years . The following table summarizes the fair value at vesting for the restricted shares of common stock that vested during the three and nine months ended September 30, 2018 and 2017 . Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Vested restricted shares of common stock — — 112,405 109,209 Fair value of vested restricted shares of common stock (in thousands) $ — $ — $ 3,002 $ 2,591 |
Noncontrolling Interest
Noncontrolling Interest | 9 Months Ended |
Sep. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest | Noncontrolling Interest The table below summarizes the activity for noncontrolling interest in the Company for the nine months ended September 30, 2018 and the year ended December 31, 2017 . LTIP Units Other Common Units Total Noncontrolling Common Units Noncontrolling Interest Balance at December 31, 2016 1,576,516 2,057,365 3,633,881 4.3 % Granted/Issued 126,239 687,827 814,066 N/A Forfeited — — — N/A Conversions from LTIP units to Other Common Units (245,685 ) 245,685 — N/A Redemptions from Other Common Units to common stock — (351,260 ) (351,260 ) N/A Balance at December 31, 2017 1,457,070 2,639,617 4,096,687 4.1 % Granted/Issued 324,802 — 324,802 N/A Forfeited — — — N/A Conversions from LTIP units to Other Common Units (165,672 ) 165,672 — N/A Redemptions from Other Common Units to common stock — (352,055 ) (352,055 ) N/A Balance at September 30, 2018 1,616,200 2,453,234 4,069,434 3.6 % LTIP Units On March 12, 2018 , the Company's board of directors appointed Michelle Dilley to serve as director of the Company. On March 12, 2018 , Ms. Dilley was granted 3,930 LTIP units which, subject to Ms. Dilley's continued service, will vest on January 1, 2019. LTIP units granted on January 5, 2018 to non-employee, independent directors, subject to the recipient’s continued service, will vest on January 1, 2019. LTIP units granted on January 5, 2018 to certain senior executive officers and senior employees, subject to the recipient’s continued employment, will vest quarterly over four years, with the first vesting date having been March 31, 2018. Refer to Note 8 for a discussion of vested LTIP units granted on January 5, 2018 pursuant to the 2015 Outperformance Program (the “2015 OPP”). The fair value of the LTIP units at the date of grant was determined by a lattice-binomial option-pricing model based on a Monte Carlo simulation. The fair value of the LTIP units are based on Level 3 inputs and are non-recurring fair value measurements. The table below sets forth the assumptions used in valuing such LTIP units granted during the nine months ended September 30, 2018 (excluding those vested LTIP units granted pursuant to the 2015 OPP; refer to Note 8 for details). LTIP Units Assumptions Grant date March 12, 2018 January 5, 2018 Expected term (years) 10 10 Expected volatility 22.0 % 22.0 % Expected dividend yield 6.0 % 6.0 % Risk-free interest rate 2.46 % 2.09 % Fair value of LTIP units at issuance (in thousands) $ 90 $ 3,447 LTIP units at issuance 3,930 137,616 Fair value unit price per LTIP unit at issuance $ 22.90 $ 25.05 The following table summarizes activity related to the Company’s unvested LTIP units for the nine months ended September 30, 2018 and the year ended December 31, 2017 . Unvested LTIP Units LTIP Units Balance at December 31, 2016 403,423 Granted 126,239 Vested (229,355 ) Forfeited — Balance at December 31, 2017 300,307 Granted 324,802 Vested (342,940 ) Forfeited — Balance at September 30, 2018 282,169 The unrecognized compensation expense associated with the Company’s LTIP units at September 30, 2018 was approximately $5.7 million and is expected to be recognized over a weighted average period of approximately 2.5 years . The following table summarizes the fair value at vesting for the LTIP units that vested during the three and nine months ended September 30, 2018 and 2017 . Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Vested LTIP units 30,949 44,942 342,940 157,816 Fair value of vested LTIP units (in thousands) $ 851 $ 1,235 $ 9,002 $ 4,146 |
Equity Incentive Plan
Equity Incentive Plan | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity Incentive Plan | Equity Incentive Plan At the Company’s annual meeting of stockholders held on April 30, 2018, the Company’s stockholders approved an amendment and restatement of the 2011 Plan, under which the Company may issue equity-based awards, including stock options, stock appreciation rights, restricted stock, restricted stock units, unrestricted stock awards and other awards based on shares of the Company’s common stock, such as LTIP units, to executive officers, directors, employees and other individuals providing bona fide services to or for the Company or its affiliates. The amendment increased the total number of shares of common stock authorized and reserved for issuance under the 2011 Plan by 3,000,000 shares to an aggregate of 6,642,461 shares, subject to certain adjustments as described in the 2011 Plan. Awards previously granted under the 2011 Plan will remain in effect pursuant to their terms. On January 5, 2018 , the Company granted performance units approved by the compensation committee of the board of directors, under the 2011 Plan to certain key employees of the Company. The terms of the performance units granted on January 5, 2018 are substantially the same as the terms of the performance units granted on January 6, 2017 and March 8, 2016, except that the measuring period commences on January 1, 2018 and ends on December 31, 2020. The fair value of the performance units at the date of grant was determined by a lattice-binomial option-pricing model based on a Monte Carlo simulation. The fair value of the performance units are based on Level 3 inputs and are non-recurring fair value measurements. The performance unit equity compensation expense is recognized into earnings ratably from the grant date over the respective vesting periods. The table below sets forth the assumptions used in valuing the performance units granted during the nine months ended September 30, 2018 . Performance Units Assumptions Grant date January 5, 2018 Expected volatility 22.0 % Expected dividend yield 6.0 % Risk-free interest rate 2.09 % Fair value of performance units grant (in thousands) $ 5,456 On January 1, 2018, the Company’s three year measurement period pursuant to the 2015 OPP concluded. It was determined that the Company's total stockholder return exceeded the threshold percentage and return hurdle and a pool of approximately $6.2 million was awarded to the participants. The compensation committee of the board of directors approved the issuance of 183,256 vested LTIP units and 53,722 vested shares of common stock (of which 15,183 shares of common stock were repurchased and retired) to the participants, all of which were issued on January 5, 2018 . The unrecognized compensation expense associated with the Company's performance units at September 30, 2018 was approximately $6.1 million and is expected to be recognized over a weighted average period of approximately 2.3 years . Non-cash Compensation Expense The following table summarizes the amount recorded in general and administrative expenses in the accompanying Consolidated Statements of Operations for the amortization of restricted shares of common stock, LTIP units, performance units, the 2015 OPP (performance units and the 2015 OPP, collectively the “Performance-based Compensation Plans”), and the Company’s director compensation for the three and nine months ended September 30, 2018 and 2017 . Three months ended September 30, Nine months ended September 30, Non-Cash Compensation Expense (in thousands) 2018 2017 2018 2017 Restricted shares of common stock $ 406 $ 594 $ 1,269 $ 1,776 LTIP units 893 1,167 2,654 3,508 Performance-based Compensation Plans 838 536 2,463 1,610 Director compensation (1) 99 87 285 265 Total non-cash compensation expense $ 2,236 $ 2,384 $ 6,671 $ 7,159 (1) All of the Company’s independent directors elected to receive shares of common stock in lieu of cash for their service during the three and nine months ended September 30, 2018 and 2017 . The number of shares of common stock granted is calculated based on the trailing 10 days average common stock price ending on the third business day preceding the grant date. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share During the three and nine months ended September 30, 2018 and 2017 , there were 193,117 , 196,871 , 237,207 and 238,129 , respectively, of unvested restricted shares of common stock on a weighted average basis that were considered participating securities. The following table sets forth the computation of basic and diluted earnings per common share for the three and nine months ended September 30, 2018 and 2017 . Three months ended September 30, Nine months ended September 30, Earnings Per Share (in thousands, except per share data) 2018 2017 2018 2017 Numerator Net income $ 8,876 $ 21,839 $ 48,989 $ 23,276 Less: preferred stock dividends 1,289 2,449 6,315 7,345 Less: redemption of preferred stock — — 2,661 — Less: amount allocated to participating securities 69 84 209 250 Less: income attributable to noncontrolling interest after preferred stock dividends 281 828 1,589 673 Net income attributable to common stockholders $ 7,237 $ 18,478 $ 38,215 $ 15,008 Denominator Weighted average common shares outstanding — basic 105,783 92,787 101,095 87,632 Effect of dilutive securities (1) Share-based compensation 550 648 400 606 Weighted average common shares outstanding — diluted 106,333 93,435 101,495 88,238 Net income per share — basic and diluted Net income per share attributable to common stockholders — basic $ 0.07 $ 0.20 $ 0.38 $ 0.17 Net income per share attributable to common stockholders — diluted $ 0.07 $ 0.20 $ 0.38 $ 0.17 (1) During the three and nine months ended September 30, 2018 and 2017 , there were approximately 193 , 197 , 237 and 238 , respectively, unvested restricted shares of common stock on a weighted average basis that were not included in the computation of diluted earnings per share because to do so would have been antidilutive for the period. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is subject to various legal proceedings and claims that arise in the ordinary course of business. These matters are generally covered by insurance subject to deductible requirements. Management believes that the ultimate settlement of these actions will not have a material adverse effect on the Company’s financial position, results of operations, or cash flows. The Company has letters of credit of approximately $5.6 million as of September 30, 2018 related to construction projects and certain other agreements. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events There were no recognized or non-recognized subsequent events. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Revenue Recognition, Real Estate Transactions, Policy [Policy Text Block] | Gain on the Sales of Rental Property, net The timing of the derecognition of a rental property and the corresponding recognition of gain on the sales of rental property, net is measured by various criteria related to the terms of the sale transaction, and if the Company has lost control of the property and the acquirer has gained control of the property after the transaction. If the derecognition criteria is met, the full gain is recognized. |
Quarterly Financial Information | Interim Financial Information The accompanying interim financial statements have been presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and with the instructions to Form 10-Q and Regulation S-X for interim financial information. Accordingly, these statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the accompanying interim financial statements include all adjustments, consisting of normal recurring items, necessary for their fair statement in conformity with GAAP. Interim results are not necessarily indicative of results for a full year. The year-end consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017 . |
Basis of Presentation | Basis of Presentation The Company’s consolidated financial statements include the accounts of the Company, the Operating Partnership, and their subsidiaries. Interests in the Operating Partnership not owned by the Company are referred to as “Noncontrolling Common Units.” These Noncontrolling Common Units are held by other limited partners in the form of common units (“Other Common Units”) and long term incentive plan units (“LTIP units”) issued pursuant to the STAG Industrial, Inc. 2011 Equity Incentive Plan, as amended (the “2011 Plan”). All significant intercompany balances and transactions have been eliminated in the consolidation of entities. The financial statements of the Company are presented on a consolidated basis for all periods presented. |
Reclassification | Certain prior year amounts have been reclassified to conform to the current year presentation. |
New Accounting Pronouncements | New Accounting Standards Adopted In August 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . The purpose of this updated guidance is to better align a company’s financial reporting for hedging activities with the economic objectives of those activities. This standard is effective for fiscal years beginning after December 15, 2018 and interim periods within those years, with early adoption permitted, and the Company adopted this standard effective January 1, 2018 using the modified retrospective transition method. The adoption of this standard resulted in a cumulative effect adjustment of approximately $0.3 million recorded as an increase to cumulative dividends in excess of earnings and an increase to accumulated other comprehensive income as of January 1, 2018 in the accompanying Consolidated Statements of Equity. In May 2017, the FASB issued ASU 2017-09, Stock Compensation (Topic 718): Scope of Modification Accounting , which provides updated guidance about which changes to the terms or conditions of a share-based payment award would require an entity to apply modification accounting under the topic. This standard is effective for fiscal years beginning after December 15, 2017 and interim periods within those years, and the Company adopted this standard prospectively effective January 1, 2018. The adoption of this standard did not have a material effect on the Company's consolidated financial statements. In February 2017, the FASB issued ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets , which provides guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with non-customers. The new standard was issued as part of the new revenue standard (ASU 2014-09, as discussed below), and defines “in substance nonfinancial asset,” unifies guidance related to partial sales of nonfinancial assets, eliminates rules specifically addressing sales of real estate, removes exceptions to the financial asset derecognition model, and clarifies the accounting for contributions of nonfinancial assets to joint ventures. As a result of the new guidance, the guidance specific to real estate sales in Subtopic 360-20 was eliminated, and sales and partial sales of real estate assets will now be subject to the same derecognition model as all other nonfinancial assets. This standard is effective at the same time an entity adopts ASU 2014-09, which the Company adopted effective January 1, 2018. The Company adopted this standard effective January 1, 2018 using the modified retrospective approach. The adoption of this standard did not have a material effect on the Company's consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . The new standard provides a screen to determine when a set of assets and activities is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired or disposed of is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This standard is effective for annual periods beginning after December 15, 2017 and interim periods within those periods, and the Company adopted this standard prospectively effective January 1, 2018. As a result, it is expected that the majority of the Company's acquisitions will be accounted for as asset acquisitions, whereas under the former guidance the majority of the Company's acquisitions had been accounted for as business combinations. The most significant difference between the two accounting models that impacts the Company's consolidated financial statements is that in an asset acquisition, property acquisition costs are generally a component of the consideration transferred to acquire a group of assets and are capitalized as a component of the cost of the assets, whereas in a business combination, property acquisition costs are expensed and not included as part of the consideration transferred. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash . The new standard requires that the statement of cash flows explain the changes during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. This standard is effective for fiscal years beginning after December 15, 2017 and the Company adopted this standard effective January 1, 2018. As a result, the Company has included restricted cash with cash and cash equivalents when reconciling the beginning and end of period total amounts on the accompanying Consolidated Statements of Cash Flows. The effects of this standard were applied retrospectively to all prior periods presented. For the nine months ended September 30, 2017 , the effect of the change in accounting principle was a decrease in cash provided by operating activities of approximately $0.5 million and an increase in cash used in investing activities of approximately $5.6 million on the accompanying Consolidated Statements of Cash Flows. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10) . The amendments in ASU 2016-01 address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The standard primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. ASU 2016-01 is effective for the annual periods beginning after December 31, 2017 and for annual periods and interim periods within those years, and the Company adopted this standard prospectively effective January 1, 2018. The adoption of this standard did not have a material effect on the Company's consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . ASU 2014-09 is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. Additionally, the new revenue guidance requires improved disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted this standard effective January 1, 2018 using the modified retrospective approach. The adoption of this standard did not have a material effect on the Company's consolidated financial statements. New Accounting Standards Issued but not yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , and various subsequent ASU’s, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). Topic 842 supersedes the previous leases standard, Topic 840, Leases . The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. ASU 2016-02 is expected to impact the Company’s consolidated financial statements as the Company has certain operating and land lease arrangements for which it is the lessee, which will result in the recording of a right of use asset and the related lease liability. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The new standard must be adopted using the modified retrospective transition method by recognizing a cumulative effect adjustment to the opening balance of cumulative dividends in excess of earnings, by either applying the new guidance at the beginning of the earliest comparative period or by applying the new guidance at the adoption date. The Company intends to adopt available practical expedients which allows the Company to 1) not reassess whether any expired or existing contracts are or contain leases; 2) not reassess the lease classification for any expired or existing leases; and 3) not reassess initial direct costs for any existing leases. The Company is currently in the process of evaluating the impact the adoption of ASU 2016-02 will have on the Company’s financial position or results of operations, and plans to adopt this standard effective January 1, 2019. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which the Company adopted on January 1, 2018, as discussed in “New Accounting Standards Adopted” above. While lease contracts with customers, which constitute a vast majority of the Company’s revenues, are specifically excluded from the model’s scope, once the new leases standard under ASU 2016-02 is adopted by the Company, the new revenue standard may apply to executory costs and other components of revenue due under leases that are deemed to be non-lease components (such as common area maintenance and provision of utilities), even when the revenue for such activities is not separately stipulated in the lease. In that case, revenue from these items previously recognized on a straight-line basis under current lease guidance would be recognized under the new revenue guidance as the related services are delivered. As a result, while the total revenue recognized over time would not differ under the new guidance, the recognition pattern may be different. In July 2018, the FASB issued ASU 2018-11 which amends Topic 842, Leases , and provides lessors with a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component and, instead, to account for those components as a single component if the non-lease components otherwise would be accounted for under the new revenue guidance and both of the following are met: i) the timing and pattern of transfer of the non-lease component(s) and associated lease component are the same; and ii) the lease component, if accounted for separately, would be classified as an operating lease. Under this new expedient, if the non-lease components associated with the lease component are the predominant component of the combined component, a company should account for the combined component in accordance with Topic 606. Otherwise, the company should account for the combined component as an operating lease in accordance with Topic 842. The Company is currently in the process of evaluating the impact the adoption of ASU 2016-02 will have on the Company’s financial position or results of operations, and plans to adopt this standard effective January 1, 2019. |
Restricted cash and cash equivalents, policy | Restricted Cash Restricted cash may include tenant security deposits and cash held in escrow for real estate taxes and capital improvements as required in various mortgage note agreements. Restricted cash also may include amounts held by the Company’s transfer agent for preferred stock dividends that are distributed subsequent to period end. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Cash, Cash Equivalents and Restricted Cash (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Cash, Cash Equivalents and Restricted Cash | The following table presents a reconciliation of cash and cash equivalents and restricted cash reported on the accompanying Consolidated Balance Sheets to amounts reported on the accompanying Consolidated Statements of Cash Flows. Reconciliation of cash and cash equivalents and restricted cash (in thousands) September 30, 2018 December 31, 2017 Cash and cash equivalents $ 6,024 $ 24,562 Restricted cash 5,231 3,567 Total cash and cash equivalents and restricted cash $ 11,255 $ 28,129 |
Rental Property (Tables)
Rental Property (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Real Estate [Abstract] | |
Schedule of components of rental property | The following table summarizes the components of rental property as of September 30, 2018 and December 31, 2017 . Rental Property (in thousands) September 30, 2018 December 31, 2017 Land $ 355,590 $ 321,560 Buildings, net of accumulated depreciation of $190,538 and $160,281, respectivel y 2,006,013 1,756,579 Tenant improvements, net of accumulated depreciation of $35,495 and $32,714, respectively 30,577 30,138 Building and land improvements, net of accumulated depreciation of $75,754 and $56,062, respectivel y 160,496 143,170 Construction in progress 5,669 2,877 Deferred leasing intangibles, net of accumulated amortization of $237,892 and $280,642, respectively 327,734 313,253 Total rental property, net $ 2,886,079 $ 2,567,577 |
Schedule of real estate properties acquired | The following table summarizes the acquisitions of the Company during the three and nine months ended September 30, 2018 . Market (1) Date Acquired Square Feet Buildings Purchase Price Greenville/Spartanburg, SC January 11, 2018 203,000 1 $ 10,755 Minneapolis/St Paul, MN January 26, 2018 145,351 1 13,538 Philadelphia, PA February 1, 2018 278,582 1 18,277 Houston, TX February 22, 2018 242,225 2 22,478 Greenville/Spartanburg, SC March 30, 2018 222,710 1 13,773 Three months ended March 31, 2018 1,091,868 6 78,821 Chicago, IL April 23, 2018 169,311 2 10,975 Milwaukee/Madison, WI April 26, 2018 53,680 1 4,316 Pittsburgh, PA April 30, 2018 175,000 1 15,380 Detroit, MI May 9, 2018 274,500 1 19,328 Minneapolis/St Paul, MN May 15, 2018 509,910 2 26,983 Cincinnati/Dayton, OH May 23, 2018 158,500 1 7,317 Baton Rouge, LA May 31, 2018 279,236 1 21,379 Las Vegas, NV June 12, 2018 122,472 1 17,920 Greenville/Spartanburg, SC June 15, 2018 131,805 1 5,621 Denver, CO June 18, 2018 64,750 1 7,044 Cincinnati/Dayton, OH June 25, 2018 465,136 1 16,421 Charlotte, NC June 29, 2018 69,200 1 5,446 Houston, TX June 29, 2018 252,662 1 27,170 Three months ended June 30, 2018 2,726,162 15 185,300 Knoxville, TN July 10, 2018 106,000 1 6,477 Pittsburgh, PA August 2, 2018 265,568 1 19,186 Raleigh/Durham, NC August 2, 2018 365,000 1 21,067 Detroit, MI August 6, 2018 439,150 1 21,077 Des Moines, IA August 8, 2018 121,922 1 6,053 McAllen/Edinburg/Pharr, TX August 9, 2018 270,084 1 18,523 Pittsburgh, PA August 15, 2018 200,500 1 11,327 Minneapolis/St Paul, MN August 24, 2018 120,606 1 8,422 Milwaukee/Madison, WI September 28, 2018 100,800 1 7,484 Milwaukee/Madison, WI September 28, 2018 174,633 2 13,288 Chicago, IL September 28, 2018 105,637 1 6,368 Indianapolis, IN September 28, 2018 478,721 1 29,085 Augusta/Richmond County, GA September 28, 2018 203,726 1 9,379 Charlotte, NC September 28, 2018 301,000 1 16,807 Three months ended September 30, 2018 3,253,347 15 194,543 Nine months ended September 30, 2018 7,071,377 36 $ 458,664 |
Summary of allocation of the consideration paid for the acquired assets and liabilities in connection with the acquisition of buildings at the date of acquisition | The following table summarizes the allocation of the consideration paid at the date of acquisition during the nine months ended September 30, 2018 for the acquired assets and liabilities in connection with the acquisitions identified in the table above. Acquired Assets and Liabilities Purchase Price (in thousands) Weighted Average Amortization Period (years) of Intangibles at Acquisition Land $ 39,340 N/A Buildings 317,293 N/A Tenant improvements 4,849 N/A Building and land improvements 21,731 N/A Deferred leasing intangibles - In-place leases 52,276 8.7 Deferred leasing intangibles - Tenant relationships 21,861 11.8 Deferred leasing intangibles - Above market leases 4,062 8.2 Deferred leasing intangibles - Below market leases (3,122 ) 6.7 Deferred leasing intangibles - Above market ground leases (178 ) 48.1 Other assets 794 N/A Other liabilities (242 ) N/A Total purchase price $ 458,664 |
Schedule of pro forma information for acquired properties | The table below sets forth the results of operations for the three and nine months ended September 30, 2018 for the buildings acquired during the nine months ended September 30, 2018 included in the Company’s Consolidated Statements of Operations from the date of acquisition. Results of Operations (in thousands) Three months ended September 30, 2018 Nine months ended September 30, 2018 Total revenue $ 7,122 $ 11,156 Net income $ 1,556 $ 1,642 |
Impaired Assets to be Disposed of by Method Other than Sale [Table Text Block] | The following table summarizes the Company's loss on impairments for assets held and used during the nine months ended September 30, 2018 . Market (1) Buildings Event or Change in Circumstance Leading to Impairment Evaluation (2) Valuation technique utilized to estimate fair value Fair Value (3) Loss on Impairments (in thousands) Buena Vista, VA (4) 1 Change in estimated hold period (5) Discounted cash flows (6) Sergeant Bluff, IA (4) 1 Change in estimated hold period (5) Discounted cash flows (6) Three months ended March 31, 2018 $ 3,176 $ 2,934 Nine months ended September 30, 2018 $ 3,176 $ 2,934 (1) As defined by CoStar Realty Information Inc. (2) The Company tested the asset group for impairment utilizing a probability weighted recovery analysis of certain scenarios, and it was determined that the carrying value of the property and intangibles were not recoverable from the estimated future undiscounted cash flows. (3) The estimated fair value of the assets held and used is based on Level 3 inputs and is a non-recurring fair value measurement. Level 3 is defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. (4) These buildings do not have markets as defined by CoStar Realty Information Inc. (5) This property was sold during the nine months ended September 30, 2018 . (6) Level 3 inputs used to determine fair value for the impaired assets held and used for the three months ended March 31, 2018: discount rates ranged from 11.0% to 14.5% and exit capitalization rates ranged from 11.0% to 13.0% . |
Schedule of Finite-Lived Intangible Assets and Below Market Leases | The following table sets forth the deferred leasing intangibles on the accompanying Consolidated Balance Sheets as of September 30, 2018 and December 31, 2017 . September 30, 2018 December 31, 2017 Deferred Leasing Intangibles (in thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Above market leases $ 70,454 $ (31,663 ) $ 38,791 $ 78,558 $ (36,810 ) $ 41,748 Other intangible lease assets 495,172 (206,229 ) 288,943 515,337 (243,832 ) 271,505 Total deferred leasing intangible assets $ 565,626 $ (237,892 ) $ 327,734 $ 593,895 $ (280,642 ) $ 313,253 Below market leases $ 33,751 $ (13,043 ) $ 20,708 $ 34,776 $ (13,555 ) $ 21,221 Total deferred leasing intangible liabilities $ 33,751 $ (13,043 ) $ 20,708 $ 34,776 $ (13,555 ) $ 21,221 The following table sets forth the amortization expense and the net decrease to rental income for the amortization of deferred leasing intangibles during the three and nine months ended September 30, 2018 and 2017 . Three months ended September 30, Nine months ended September 30, Deferred Leasing Intangibles Amortization (in thousands) 2018 2017 2018 2017 Net decrease to rental income related to above and below market lease amortization $ 1,150 $ 1,318 $ 3,206 $ 3,873 Amortization expense related to other intangible lease assets $ 20,361 $ 17,934 $ 56,698 $ 53,747 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table sets forth the amortization of deferred leasing intangibles over the next five calendar years beginning with 2018 as of September 30, 2018 . Year Amortization Expense Related to Other Intangible Lease Assets (in thousands) Net Decrease to Rental Income Related to Above and Below Market Lease Amortization (in thousands) Remainder of 2018 $ 17,263 $ 927 2019 $ 57,841 $ 3,926 2020 $ 47,750 $ 3,546 2021 $ 37,229 $ 2,163 2022 $ 29,690 $ 1,154 |
Below Market Lease, Future Amortization Income | The following table sets forth the amortization of deferred leasing intangibles over the next five calendar years beginning with 2018 as of September 30, 2018 . Year Amortization Expense Related to Other Intangible Lease Assets (in thousands) Net Decrease to Rental Income Related to Above and Below Market Lease Amortization (in thousands) Remainder of 2018 $ 17,263 $ 927 2019 $ 57,841 $ 3,926 2020 $ 47,750 $ 3,546 2021 $ 37,229 $ 2,163 2022 $ 29,690 $ 1,154 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Summary of the mortgage notes payable, unsecured term loans and credit facility | The following table sets forth a summary of the Company’s outstanding indebtedness, including borrowings under the Company’s unsecured credit facility, unsecured term loans, unsecured notes, and mortgage notes as of September 30, 2018 and December 31, 2017 . Loan Principal Outstanding as of September 30, 2018 (in thousands) Principal Outstanding as of December 31, 2017 (in thousands) Interest (1) Maturity Date Prepayment Terms (2) Unsecured credit facility: Unsecured Credit Facility (3) $ 95,000 $ 271,000 L + 1.05% Jan-15-2023 i Total unsecured credit facility 95,000 271,000 Unsecured term loans: Unsecured Term Loan C 150,000 150,000 L + 1.30% Sep-29-2020 i Unsecured Term Loan B 150,000 150,000 L + 1.30% Mar-21-2021 i Unsecured Term Loan A 150,000 150,000 L + 1.30% Mar-31-2022 i Unsecured Term Loan D 150,000 — L + 1.30% Jan-04-2023 i Unsecured Term Loan E (4) — — L + 1.20% Jan-15-2024 i Total unsecured term loans 600,000 450,000 Less: Total unamortized deferred financing fees and debt issuance costs (3,915 ) (3,735 ) Total carrying value unsecured term loans, net 596,085 446,265 Unsecured notes: Series F Unsecured Notes 100,000 100,000 3.98 % Jan-05-2023 ii Series A Unsecured Notes 50,000 50,000 4.98 % Oct-1-2024 ii Series D Unsecured Notes 100,000 100,000 4.32 % Feb-20-2025 ii Series G Unsecured Notes 75,000 — 4.10 % Jun-13-2025 ii Series B Unsecured Notes 50,000 50,000 4.98 % Jul-1-2026 ii Series C Unsecured Notes 80,000 80,000 4.42 % Dec-30-2026 ii Series E Unsecured Notes 20,000 20,000 4.42 % Feb-20-2027 ii Series H Unsecured Notes 100,000 — 4.27 % Jun-13-2028 ii Total unsecured notes 575,000 400,000 Less: Total unamortized deferred financing fees and debt issuance costs (2,611 ) (1,766 ) Total carrying value unsecured notes, net 572,389 398,234 Mortgage notes (secured debt): Wells Fargo Bank, National Association CMBS Loan 53,652 54,949 4.31 % Dec-1-2022 iii Thrivent Financial for Lutherans 3,824 3,906 4.78 % Dec-15-2023 iv Total mortgage notes 57,476 58,855 Add: Total unamortized fair market value premiums 52 61 Less: Total unamortized deferred financing fees and debt issuance costs (535 ) (634 ) Total carrying value mortgage notes, net 56,993 58,282 Total / weighted average interest rate (5) $ 1,320,467 $ 1,173,781 3.69 % (1) Interest rate as of September 30, 2018 . At September 30, 2018 , the one-month LIBOR (“L”) was 2.26056% . The interest rate is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums. The spread over the applicable rate for the Company's unsecured credit facility and unsecured term loans is based on the Company's consolidated leverage ratio, as defined in the respective loan agreements. (2) Prepayment terms consist of (i) pre-payable with no penalty; (ii) pre-payable with penalty; (iii) pre-payable without penalty three months prior to the maturity date, however can be defeased beginning January 1, 2016; and (iv) pre-payable without penalty three months prior to the maturity date. (3) The capacity of the unsecured credit facility is $500.0 million . Deferred financing fees and debt issuance costs, net of accumulated amortization related to the unsecured credit facility of approximately $3.4 million and $1.5 million is included in prepaid expenses and other assets on the accompanying Consolidated Balance Sheets as of September 30, 2018 and December 31, 2017 , respectively. (4) Capacity of $175.0 million , which the Company has until July 25, 2019 to draw. (5) The weighted average interest rate was calculated using the fixed interest rate swapped on the notional amount of $600.0 million of debt that was in effect as of September 30, 2018 , and is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums |
Interest Income and Interest Expense Disclosure [Table Text Block] | The table below sets forth the costs included in interest expense related to the Company's debt arrangements on the accompanying Consolidated Statement of Operations for the three and nine months ended September 30, 2018 and 2017 . Three months ended September 30, Nine months ended September 30, Costs Included in Interest Expense (in thousands) 2018 2017 2018 2017 Amortization of deferred financing fees and debt issuance costs and fair market value premiums $ 617 $ 546 $ 1,698 $ 1,553 Facility fees and unused fees $ 275 $ 286 $ 928 $ 839 |
Schedule of aggregate carrying value of the debt and the corresponding estimate of fair value | The following table presents the aggregate principal outstanding under the Company’s debt arrangements and the corresponding estimate of fair value as of September 30, 2018 and December 31, 2017 (in thousands). September 30, 2018 December 31, 2017 Principal Outstanding Fair Value Principal Outstanding Fair Value Unsecured credit facility $ 95,000 $ 95,000 $ 271,000 $ 271,528 Unsecured term loans 600,000 607,663 450,000 451,463 Unsecured notes 575,000 569,493 400,000 415,599 Mortgage notes 57,476 57,608 58,855 59,769 Total principal amount 1,327,476 $ 1,329,764 1,179,855 $ 1,198,359 Add: Total unamortized fair market value premiums 52 61 Less: Total unamortized deferred financing fees and debt issuance costs (7,061 ) (6,135 ) Total carrying value $ 1,320,467 $ 1,173,781 |
Use of Derivative Financial I_2
Use of Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments [Table Text Block] | The following table details the Company’s outstanding interest rate swaps as of September 30, 2018 . All of the Company’s interest rate swaps are designated as qualifying cash flow hedges. Interest Rate Trade Date Effective Date Notional Amount Fair Value Pay Fixed Interest Rate Receive Variable Interest Rate Maturity Date Regions Bank Mar-01-2013 Mar-01-2013 $ 25,000 $ 471 1.3300 % One-month L Feb-14-2020 Capital One, N.A. Jun-13-2013 Jul-01-2013 $ 50,000 $ 703 1.6810 % One-month L Feb-14-2020 Capital One, N.A. Jun-13-2013 Aug-01-2013 $ 25,000 $ 344 1.7030 % One-month L Feb-14-2020 Regions Bank Sep-30-2013 Feb-03-2014 $ 25,000 $ 245 1.9925 % One-month L Feb-14-2020 The Toronto-Dominion Bank Oct-14-2015 Sep-29-2016 $ 25,000 $ 700 1.3830 % One-month L Sep-29-2020 PNC Bank, N.A. Oct-14-2015 Sep-29-2016 $ 50,000 $ 1,391 1.3906 % One-month L Sep-29-2020 Regions Bank Oct-14-2015 Sep-29-2016 $ 35,000 $ 978 1.3858 % One-month L Sep-29-2020 U.S. Bank, N.A. Oct-14-2015 Sep-29-2016 $ 25,000 $ 695 1.3950 % One-month L Sep-29-2020 Capital One, N.A. Oct-14-2015 Sep-29-2016 $ 15,000 $ 417 1.3950 % One-month L Sep-29-2020 Royal Bank of Canada Jan-08-2015 Mar-20-2015 $ 25,000 $ 684 1.7090 % One-month L Mar-21-2021 The Toronto-Dominion Bank Jan-08-2015 Mar-20-2015 $ 25,000 $ 682 1.7105 % One-month L Mar-21-2021 The Toronto-Dominion Bank Jan-08-2015 Sep-10-2017 $ 100,000 $ 1,488 2.2255 % One-month L Mar-21-2021 Wells Fargo, N.A. Jan-08-2015 Mar-20-2015 $ 25,000 $ 886 1.8280 % One-month L Mar-31-2022 The Toronto-Dominion Bank Jan-08-2015 Feb-14-2020 $ 25,000 $ 271 2.4535 % One-month L Mar-31-2022 Regions Bank Jan-08-2015 Feb-14-2020 $ 50,000 $ 520 2.4750 % One-month L Mar-31-2022 Capital One, N.A. Jan-08-2015 Feb-14-2020 $ 50,000 $ 467 2.5300 % One-month L Mar-31-2022 The Toronto-Dominion Bank Jul-20-2017 Oct-30-2017 $ 25,000 $ 1,054 1.8485 % One-month L Jan-04-2023 Royal Bank of Canada Jul-20-2017 Oct-30-2017 $ 25,000 $ 1,054 1.8505 % One-month L Jan-04-2023 Wells Fargo, N.A. Jul-20-2017 Oct-30-2017 $ 25,000 $ 1,055 1.8505 % One-month L Jan-04-2023 PNC Bank, N.A. Jul-20-2017 Oct-30-2017 $ 25,000 $ 1,052 1.8485 % One-month L Jan-04-2023 PNC Bank, N.A. Jul-20-2017 Oct-30-2017 $ 50,000 $ 2,105 1.8475 % One-month L Jan-04-2023 The Toronto-Dominion Bank Jul-24-2018 Jul-26-2019 $ 50,000 $ 111 2.9180 % One-month L Jan-12-2024 PNC Bank, N.A. Jul-24-2018 Jul-26-2019 $ 50,000 $ 106 2.9190 % One-month L Jan-12-2024 Bank of Montreal Jul-24-2018 Jul-26-2019 $ 50,000 $ 113 2.9190 % One-month L Jan-12-2024 U.S. Bank, N.A. Jul-24-2018 Jul-26-2019 $ 25,000 $ 57 2.9190 % One-month L Jan-12-2024 |
Schedule of interest rate swaps | The fair value of the interest rate swaps outstanding as of September 30, 2018 and December 31, 2017 was as follows. Balance Sheet Line Item (in thousands) Notional Amount September 30, 2018 Fair Value Notional Amount December 31, 2017 Fair Value December 31, 2017 Interest rate swaps-Asset $ 900,000 $ 17,649 $ 475,000 $ 6,079 Interest rate swaps-Liability $ — $ — $ 250,000 $ (1,217 ) |
Schedule of the location in the financial statements of the gain or loss recognized on interest rate swaps | The table below presents the effect of cash flow hedge accounting and the location in the consolidated financial statements for the three and nine months ended September 30, 2018 and 2017 . Three months ended September 30, Nine months ended September 30, Effect of Cash Flow Hedge Accounting (in thousands) 2018 2017 2018 2017 Income (loss) recognized in accumulated other comprehensive income on interest rate swaps $ 2,572 $ 316 $ 13,349 $ (1,126 ) Income (loss) reclassified from accumulated other comprehensive income into income (loss) as interest expense $ 512 $ (282 ) $ 538 $ (1,426 ) Total interest expense presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded $ 12,698 $ 10,446 $ 35,602 $ 31,557 |
Schedule of financial instruments accounted for at fair value on a recurring basis | The following sets forth the Company’s financial instruments that are accounted for at fair value on a recurring basis as of September 30, 2018 and December 31, 2017 . Fair Value Measurements as of Balance Sheet Line Item (in thousands) Fair Value Level 1 Level 2 Level 3 Interest rate swaps-Asset $ 17,649 $ — $ 17,649 $ — Interest rate swaps-Liability $ — $ — $ — $ — Fair Value Measurements as of Balance Sheet Line Item (in thousands) Fair Value December 31, 2017 Level 1 Level 2 Level 3 Interest rate swaps-Asset $ 6,079 $ — $ 6,079 $ — Interest rate swaps-Liability $ (1,217 ) $ — $ (1,217 ) $ — |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stock by Class | he table below sets forth the Company’s outstanding preferred stock issuances as of September 30, 2018 . Preferred Stock Issuances Issuance Date Number of Shares Liquidation Value Per Share Interest Rate 6.875% Series C Cumulative Redeemable Preferred Stock ( “ Series C Preferred Stock ” ) March 17, 2016 3,000,000 $ 25.00 6.875 % |
Schedule of dividends | The tables below set forth the dividends attributable to the Company's outstanding preferred stock issuances during the nine months ended September 30, 2018 and the year ended December 31, 2017 . Quarter Ended 2018 Declaration Date Series B Series C Payment Date September 30 July 11, 2018 $ 0.0460069 (1) $ 0.4296875 October 1, 2018 June 30 April 10, 2018 0.4140625 0.4296875 July 2, 2018 March 31 February 14, 2018 0.4140625 0.4296875 April 2, 2018 Total $ 0.8741319 $ 1.2890625 (1) On June 11, 2018, the Company gave notice to redeem all 2,800,000 issued and outstanding shares of the Series B Preferred Stock. On July 11, 2018, the Company redeemed all of the Series B Preferred Stock at a cash redemption price of $25.00 per share, plus accrued and unpaid dividends to but excluding the redemption date, without interest. Quarter Ended 2017 Declaration Date Series B Preferred Stock Per Share Series C Preferred Stock Per Share Payment Date December 31 November 2, 2017 $ 0.4140625 $ 0.4296875 December 29, 2017 September 30 July 31, 2017 0.4140625 0.4296875 September 29, 2017 June 30 May 1, 2017 0.4140625 0.4296875 June 30, 2017 March 31 February 15, 2017 0.4140625 0.4296875 March 31, 2017 Total $ 1.6562500 $ 1.7187500 On October 10, 2018 , the Company’s board of directors declared the Series C Preferred Stock dividends for the quarter ending December 31, 2018 at a quarterly rate of $0.4296875 per share. The table below sets forth the dividends attributable to the Company's outstanding shares of common stock that were declared during the nine months ended September 30, 2018 and the year ended December 31, 2017 . Month Ended 2018 Declaration Date Record Date Per Share Payment Date September 30 July 11, 2018 September 28, 2018 $ 0.118333 October 15, 2018 August 31 July 11, 2018 August 31, 2018 0.118333 September 17, 2018 July 31 July 11, 2018 July 31, 2018 0.118333 August 15, 2018 June 30 April 10, 2018 June 29, 2018 0.118333 July 16, 2018 May 31 April 10, 2018 May 31, 2018 0.118333 June 15, 2018 April 30 April 10, 2018 April 30, 2018 0.118333 May 15, 2018 March 31 November 2, 2017 March 29, 2018 0.118333 April 16, 2018 February 28 November 2, 2017 February 28, 2018 0.118333 March 15, 2018 January 31 November 2, 2017 January 31, 2018 0.118333 February 15, 2018 Total $ 1.064997 Month Ended 2017 Declaration Date Record Date Per Share Payment Date December 31 July 31, 2017 December 29, 2017 $ 0.117500 January 16, 2018 November 30 July 31, 2017 November 30, 2017 0.117500 December 15, 2017 October 31 July 31, 2017 October 31, 2017 0.117500 November 15, 2017 September 30 May 1, 2017 September 29, 2017 0.117500 October 16, 2017 August 31 May 1, 2017 August 31, 2017 0.117500 September 15, 2017 July 31 May 1, 2017 July 31, 2017 0.117500 August 15, 2017 June 30 February 15, 2017 June 30, 2017 0.116667 July 17, 2017 May 31 February 15, 2017 May 31, 2017 0.116667 June 15, 2017 April 30 February 15, 2017 April 28, 2017 0.116667 May 15, 2017 March 31 November 2, 2016 March 31, 2017 0.116667 April 17, 2017 February 28 November 2, 2016 February 28, 2017 0.116667 March 15, 2017 January 31 November 2, 2016 January 31, 2017 0.116667 February 15, 2017 Total $ 1.405002 On October 10, 2018 , the Company’s board of directors declared the common stock dividends for the months ending October 31, 2018 , November 30, 2018 and December 31, 2018 at a monthly rate of $0.118333 per share of common stock. |
Schedule of stock sale activity | The following table sets forth the terms of the Company’s at-the market (“ATM”) common stock offering program as of September 30, 2018 . ATM Common Stock Offering Program Date Maximum Aggregate Offering Price (in thousands) Aggregate Common Stock Available as of 2017 $500 million ATM November 13, 2017 $ 500,000 $ 213,217 The table below set forth the activity under the ATM common stock offering programs during the nine months ended September 30, 2018 and year ended December 31, 2017 (in thousands, except share data). Nine months ended September 30, 2018 ATM Common Stock Offering Program Shares Weighted Average Price Per Share Gross Sales Net 2017 $500 million ATM 10,387,962 $ 26.61 $ 276,457 $ 2,888 $ 273,569 Total/weighted average 10,387,962 $ 26.61 $ 276,457 $ 2,888 $ 273,569 Year ended December 31, 2017 ATM Common Stock Offering Program Shares Weighted Average Price Per Share Gross Sales Net 2017 $500 million ATM 363,843 $ 28.38 $ 10,326 $ 129 $ 10,197 2017 $300 million ATM (1) 11,098,748 $ 27.03 300,000 3,637 296,363 2016 $228 million ATM (1) 4,799,784 $ 24.42 117,216 1,604 115,612 Total/weighted average 16,262,375 $ 26.29 $ 427,542 $ 5,370 $ 422,172 (1) These programs ended before December 31, 2017 . |
Schedule of activity related to unvested restricted stock awards | The following table summarizes activity related to the Company’s unvested restricted shares of common stock for the nine months ended September 30, 2018 and the year ended December 31, 2017 . Unvested Restricted Shares of Common Stock Shares Balance at December 31, 2016 272,337 Granted 75,001 (1) Vested (109,209 ) (2) Forfeited (922 ) Balance at December 31, 2017 237,207 Granted 76,659 (1) Vested (112,405 ) (2) Forfeited (10,630 ) Balance at September 30, 2018 190,831 (1) The fair value per share on the grant date of January 5, 2018 and January 6, 2017 was $26.40 and $24.41 , respectively. (2) The Company repurchased and retired 41,975 and 40,836 restricted shares of common stock that vested during the nine months ended September 30, 2018 and the year ended December 31, 2017 , respectively. |
Schedule of vested restricted shares of common stock activity | The following table summarizes the fair value at vesting for the restricted shares of common stock that vested during the three and nine months ended September 30, 2018 and 2017 . Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Vested restricted shares of common stock — — 112,405 109,209 Fair value of vested restricted shares of common stock (in thousands) $ — $ — $ 3,002 $ 2,591 |
Noncontrolling Interest (Tables
Noncontrolling Interest (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling interest activity | The table below summarizes the activity for noncontrolling interest in the Company for the nine months ended September 30, 2018 and the year ended December 31, 2017 . LTIP Units Other Common Units Total Noncontrolling Common Units Noncontrolling Interest Balance at December 31, 2016 1,576,516 2,057,365 3,633,881 4.3 % Granted/Issued 126,239 687,827 814,066 N/A Forfeited — — — N/A Conversions from LTIP units to Other Common Units (245,685 ) 245,685 — N/A Redemptions from Other Common Units to common stock — (351,260 ) (351,260 ) N/A Balance at December 31, 2017 1,457,070 2,639,617 4,096,687 4.1 % Granted/Issued 324,802 — 324,802 N/A Forfeited — — — N/A Conversions from LTIP units to Other Common Units (165,672 ) 165,672 — N/A Redemptions from Other Common Units to common stock — (352,055 ) (352,055 ) N/A Balance at September 30, 2018 1,616,200 2,453,234 4,069,434 3.6 % |
Schedule of share-based payment award, LTIP unit awards, valuation assumptions | The table below sets forth the assumptions used in valuing such LTIP units granted during the nine months ended September 30, 2018 (excluding those vested LTIP units granted pursuant to the 2015 OPP; refer to Note 8 for details). LTIP Units Assumptions Grant date March 12, 2018 January 5, 2018 Expected term (years) 10 10 Expected volatility 22.0 % 22.0 % Expected dividend yield 6.0 % 6.0 % Risk-free interest rate 2.46 % 2.09 % Fair value of LTIP units at issuance (in thousands) $ 90 $ 3,447 LTIP units at issuance 3,930 137,616 Fair value unit price per LTIP unit at issuance $ 22.90 $ 25.05 |
Schedule of activity related to unvested LTIP unit awards | The following table summarizes activity related to the Company’s unvested LTIP units for the nine months ended September 30, 2018 and the year ended December 31, 2017 . Unvested LTIP Units LTIP Units Balance at December 31, 2016 403,423 Granted 126,239 Vested (229,355 ) Forfeited — Balance at December 31, 2017 300,307 Granted 324,802 Vested (342,940 ) Forfeited — Balance at September 30, 2018 282,169 |
Schedule of vested LTIP unit award activity | The following table summarizes the fair value at vesting for the LTIP units that vested during the three and nine months ended September 30, 2018 and 2017 . Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Vested LTIP units 30,949 44,942 342,940 157,816 Fair value of vested LTIP units (in thousands) $ 851 $ 1,235 $ 9,002 $ 4,146 |
Equity Incentive Plan (Tables)
Equity Incentive Plan (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of share-based payment award, performance unit awards, valuation assumptions | The table below sets forth the assumptions used in valuing the performance units granted during the nine months ended September 30, 2018 . Performance Units Assumptions Grant date January 5, 2018 Expected volatility 22.0 % Expected dividend yield 6.0 % Risk-free interest rate 2.09 % Fair value of performance units grant (in thousands) $ 5,456 |
Summary of Equity Compensation Expense | The following table summarizes the amount recorded in general and administrative expenses in the accompanying Consolidated Statements of Operations for the amortization of restricted shares of common stock, LTIP units, performance units, the 2015 OPP (performance units and the 2015 OPP, collectively the “Performance-based Compensation Plans”), and the Company’s director compensation for the three and nine months ended September 30, 2018 and 2017 . Three months ended September 30, Nine months ended September 30, Non-Cash Compensation Expense (in thousands) 2018 2017 2018 2017 Restricted shares of common stock $ 406 $ 594 $ 1,269 $ 1,776 LTIP units 893 1,167 2,654 3,508 Performance-based Compensation Plans 838 536 2,463 1,610 Director compensation (1) 99 87 285 265 Total non-cash compensation expense $ 2,236 $ 2,384 $ 6,671 $ 7,159 (1) All of the Company’s independent directors elected to receive shares of common stock in lieu of cash for their service during the three and nine months ended September 30, 2018 and 2017 . The number of shares of common stock granted is calculated based on the trailing 10 days average common stock price ending on the third business day preceding the grant date. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted earnings per common share | The following table sets forth the computation of basic and diluted earnings per common share for the three and nine months ended September 30, 2018 and 2017 . Three months ended September 30, Nine months ended September 30, Earnings Per Share (in thousands, except per share data) 2018 2017 2018 2017 Numerator Net income $ 8,876 $ 21,839 $ 48,989 $ 23,276 Less: preferred stock dividends 1,289 2,449 6,315 7,345 Less: redemption of preferred stock — — 2,661 — Less: amount allocated to participating securities 69 84 209 250 Less: income attributable to noncontrolling interest after preferred stock dividends 281 828 1,589 673 Net income attributable to common stockholders $ 7,237 $ 18,478 $ 38,215 $ 15,008 Denominator Weighted average common shares outstanding — basic 105,783 92,787 101,095 87,632 Effect of dilutive securities (1) Share-based compensation 550 648 400 606 Weighted average common shares outstanding — diluted 106,333 93,435 101,495 88,238 Net income per share — basic and diluted Net income per share attributable to common stockholders — basic $ 0.07 $ 0.20 $ 0.38 $ 0.17 Net income per share attributable to common stockholders — diluted $ 0.07 $ 0.20 $ 0.38 $ 0.17 (1) During the three and nine months ended September 30, 2018 and 2017 , there were approximately 193 , 197 , 237 and 238 , respectively, unvested restricted shares of common stock on a weighted average basis that were not included in the computation of diluted earnings per share because to do so would have been antidilutive for the period. |
Organization and Description _2
Organization and Description of Business (Details) ft² in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018ft²tenantstatebuilding | Dec. 31, 2017 | |
Real Estate Properties [Line Items] | ||
Ownership interest in Operating Partnership (as a percent) | 96.40% | 95.90% |
Number of properties | 381 | |
Number of states in which the entity owned buildings | state | 37 | |
Area (in square feet) | ft² | 75.4 | |
Percentage of buildings leased to tenants | 95.40% | |
Number of tenants | tenant | 330 | |
Warehouse - Distribution buildings | ||
Real Estate Properties [Line Items] | ||
Number of properties | 313 | |
Light Manufacturing buildings | ||
Real Estate Properties [Line Items] | ||
Number of properties | 59 | |
Flex/Office Buildings | ||
Real Estate Properties [Line Items] | ||
Number of properties | 9 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - New Accounting Pronouncements (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase to accumulated other comprehensive income (loss) | $ 16,485 | $ 3,936 | ||
Increase in cash provided by operating activities | 148,610 | $ 120,034 | ||
Increase in cash used in investing activities | $ 393,250 | 468,294 | ||
Accounting Standards Update 2016-18 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase in cash provided by operating activities | 500 | |||
Increase in cash used in investing activities | $ (5,600) | |||
New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2017-12 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase to accumulated other comprehensive income (loss) | $ 300 | |||
Decrease in accumulated distributions in excess of net income | $ (300) |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 6,024 | $ 24,562 | ||
Restricted cash | 5,231 | 3,567 | ||
Cash and cash equivalents and restricted cash—end of period | $ 11,255 | $ 28,129 | $ 14,587 | $ 21,805 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Tenant Accounts Receivable (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Tenant Accounts Receivable, net | ||
Lease security deposits available in existing letters of credit | $ 14.6 | $ 12.7 |
Lease security deposits in restricted cash | 0.7 | 0.7 |
Lease security deposits included in tenant prepaid rent and security deposits on the Balance Sheet | 8.7 | 8.1 |
Trade Accounts Receivable | ||
Tenant Accounts Receivable, net | ||
Allowance for doubtful accounts | 0.6 | 0.1 |
Accrued Income Receivable | ||
Tenant Accounts Receivable, net | ||
Allowance for doubtful accounts | 0.2 | 0.2 |
Deferred Rent Receivables, Net | $ 30.7 | $ 24.7 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue Recognition | ||||
Estimated amount of real estate taxes, which are the responsibility of tenants | $ 3.8 | $ 2.9 | $ 10.9 | $ 9.2 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | |||||
Net income | $ 8,876,000 | $ 21,839,000 | $ 48,989,000 | $ 23,276,000 | |
State and local income, excise and franchise taxes | 100,000 | 300,000 | 600,000 | 700,000 | |
Liabilities for uncertain tax positions | 0 | 0 | $ 0 | ||
Real Estate Investment Trust | |||||
Business Acquisition [Line Items] | |||||
Net income | $ (22,000) | $ (200,000) | $ (100,000) | $ (400,000) |
Rental Property - Summary (Deta
Rental Property - Summary (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Property Subject to or Available for Operating Lease [Line Items] | ||
Rental property, net | $ 2,886,079 | $ 2,567,577 |
Deferred leasing intangibles assets, accumulated amortization | 237,892 | 280,642 |
Land | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Rental property, net | 355,590 | 321,560 |
Buildings, net of accumulated depreciation of $190,538 and $160,281, respectively | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Rental property, net | 2,006,013 | 1,756,579 |
Rental property, accumulated depreciation | 190,538 | 160,281 |
Tenant improvements, net of accumulated depreciation of $35,495 and $32,714, respectively | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Rental property, net | 30,577 | 30,138 |
Rental property, accumulated depreciation | 35,495 | 32,714 |
Building and land improvements, net of accumulated depreciation of $75,754 and $56,062, respectively | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Rental property, net | 160,496 | 143,170 |
Rental property, accumulated depreciation | 75,754 | 56,062 |
Construction in progress | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Rental property, net | 5,669 | 2,877 |
Deferred leasing intangibles, net of accumulated amortization of $280,642 and $280,642, respectively | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Rental property, net | 327,734 | 313,253 |
Deferred leasing intangibles assets, accumulated amortization | $ 237,892 | $ 280,642 |
Rental Property - Acquisitions
Rental Property - Acquisitions (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($)ft²building | Jun. 30, 2018USD ($)ft²building | Mar. 31, 2018USD ($)ft²building | Sep. 30, 2018USD ($)ft²building | |
Business Acquisition [Line Items] | ||||
Area (in square feet) | 75,400,000 | 75,400,000 | ||
Acquisitions 2018 [Member] | ||||
Business Acquisition [Line Items] | ||||
Area (in square feet) | 7,071,377 | 7,071,377 | ||
Number of Buildings Acquired | building | 36 | |||
Business Combination, Consideration Transferred | $ | $ 458,664 | |||
Acquisitions Q1 2018 [Member] | ||||
Business Acquisition [Line Items] | ||||
Area (in square feet) | 1,091,868 | |||
Number of Buildings Acquired | building | 6 | |||
Business Combination, Consideration Transferred | $ | $ 78,821 | |||
Fountain Inn, SC, Q1 2018 [Member] | ||||
Business Acquisition [Line Items] | ||||
Area (in square feet) | 203,000 | |||
Number of Buildings Acquired | building | 1 | |||
Business Combination, Consideration Transferred | $ | $ 10,755 | |||
Bloomington, MN, Q1 2018 [Member] | ||||
Business Acquisition [Line Items] | ||||
Area (in square feet) | 145,351 | |||
Number of Buildings Acquired | building | 1 | |||
Business Combination, Consideration Transferred | $ | $ 13,538 | |||
York, PA, Q1 2018 [Member] | ||||
Business Acquisition [Line Items] | ||||
Area (in square feet) | 278,582 | |||
Number of Buildings Acquired | building | 1 | |||
Business Combination, Consideration Transferred | $ | $ 18,277 | |||
Houston, TX, Q1 2018 [Member] | ||||
Business Acquisition [Line Items] | ||||
Area (in square feet) | 242,225 | |||
Number of Buildings Acquired | building | 2 | |||
Business Combination, Consideration Transferred | $ | $ 22,478 | |||
Greer, SC, Q1 2018 [Member] | ||||
Business Acquisition [Line Items] | ||||
Area (in square feet) | 222,710 | |||
Number of Buildings Acquired | building | 1 | |||
Business Combination, Consideration Transferred | $ | $ 13,773 | |||
Acquisitions Q2 2018 [Member] | ||||
Business Acquisition [Line Items] | ||||
Area (in square feet) | 2,726,162 | |||
Number of Buildings Acquired | building | 15 | |||
Business Combination, Consideration Transferred | $ | $ 185,300 | |||
McHenry, IL, Q2 2018 [Member] | ||||
Business Acquisition [Line Items] | ||||
Area (in square feet) | 169,311 | |||
Number of Buildings Acquired | building | 2 | |||
Business Combination, Consideration Transferred | $ | $ 10,975 | |||
Caledonia, WI, Q2 2018 [Member] | ||||
Business Acquisition [Line Items] | ||||
Area (in square feet) | 53,680 | |||
Number of Buildings Acquired | building | 1 | |||
Business Combination, Consideration Transferred | $ | $ 4,316 | |||
Clinton, PA, Q2 2018 [Member] | ||||
Business Acquisition [Line Items] | ||||
Area (in square feet) | 175,000 | |||
Number of Buildings Acquired | building | 1 | |||
Business Combination, Consideration Transferred | $ | $ 15,380 | |||
Romulus, MI, Q2 2018 [Member] | ||||
Business Acquisition [Line Items] | ||||
Area (in square feet) | 274,500 | |||
Number of Buildings Acquired | building | 1 | |||
Business Combination, Consideration Transferred | $ | $ 19,328 | |||
Mendota Heights, MN, Q2 2018 [Member] | ||||
Business Acquisition [Line Items] | ||||
Area (in square feet) | 509,910 | |||
Number of Buildings Acquired | building | 2 | |||
Business Combination, Consideration Transferred | $ | $ 26,983 | |||
Fairfield, OH, Q2 2018 [Member] | ||||
Business Acquisition [Line Items] | ||||
Area (in square feet) | 158,500 | |||
Number of Buildings Acquired | building | 1 | |||
Business Combination, Consideration Transferred | $ | $ 7,317 | |||
Baton Rouge, LA , Q2 2018 [Member] | ||||
Business Acquisition [Line Items] | ||||
Area (in square feet) | 279,236 | |||
Number of Buildings Acquired | building | 1 | |||
Business Combination, Consideration Transferred | $ | $ 21,379 | |||
Las Vegas, NV , Q2 2018 [Member] | ||||
Business Acquisition [Line Items] | ||||
Area (in square feet) | 122,472 | |||
Number of Buildings Acquired | building | 1 | |||
Business Combination, Consideration Transferred | $ | $ 17,920 | |||
Greer, SC , Q2 2018 [Member] | ||||
Business Acquisition [Line Items] | ||||
Area (in square feet) | 131,805 | |||
Number of Buildings Acquired | building | 1 | |||
Business Combination, Consideration Transferred | $ | $ 5,621 | |||
Longmont, CO , Q2 2018 [Member] | ||||
Business Acquisition [Line Items] | ||||
Area (in square feet) | 64,750 | |||
Number of Buildings Acquired | building | 1 | |||
Business Combination, Consideration Transferred | $ | $ 7,044 | |||
Florence, KY , Q2 2018 [Member] | ||||
Business Acquisition [Line Items] | ||||
Area (in square feet) | 465,136 | |||
Number of Buildings Acquired | building | 1 | |||
Business Combination, Consideration Transferred | $ | $ 16,421 | |||
Charlotte, NC , Q2 2018 [Member] | ||||
Business Acquisition [Line Items] | ||||
Area (in square feet) | 69,200 | |||
Number of Buildings Acquired | building | 1 | |||
Business Combination, Consideration Transferred | $ | $ 5,446 | |||
Conroe, TX , Q2 2018 [Member] | ||||
Business Acquisition [Line Items] | ||||
Area (in square feet) | 252,662 | |||
Number of Buildings Acquired | building | 1 | |||
Business Combination, Consideration Transferred | $ | $ 27,170 | |||
Acquisitions Q3 2018 [Member] | ||||
Business Acquisition [Line Items] | ||||
Area (in square feet) | 3,253,347 | 3,253,347 | ||
Number of Buildings Acquired | building | 15 | |||
Business Combination, Consideration Transferred | $ | $ 194,543 | |||
Knoxville, TN, Q3 2018 [Member] | ||||
Business Acquisition [Line Items] | ||||
Area (in square feet) | 106,000 | 106,000 | ||
Number of Buildings Acquired | building | 1 | |||
Business Combination, Consideration Transferred | $ | $ 6,477 | |||
Pittsburgh, PA, Q3 2018 [Member] | ||||
Business Acquisition [Line Items] | ||||
Area (in square feet) | 265,568 | 265,568 | ||
Number of Buildings Acquired | building | 1 | |||
Business Combination, Consideration Transferred | $ | $ 19,186 | |||
Raleigh/Durham, NC, Q3 2018 [Member] | ||||
Business Acquisition [Line Items] | ||||
Area (in square feet) | 365,000 | 365,000 | ||
Number of Buildings Acquired | building | 1 | |||
Business Combination, Consideration Transferred | $ | $ 21,067 | |||
Detroit, MI, Q3 2018 [Member] | ||||
Business Acquisition [Line Items] | ||||
Area (in square feet) | 439,150 | 439,150 | ||
Number of Buildings Acquired | building | 1 | |||
Business Combination, Consideration Transferred | $ | $ 21,077 | |||
Des Moines, IA, Q3 2018 [Member] | ||||
Business Acquisition [Line Items] | ||||
Area (in square feet) | 121,922 | 121,922 | ||
Number of Buildings Acquired | building | 1 | |||
Business Combination, Consideration Transferred | $ | $ 6,053 | |||
McAllen/Edinburg/Pharr, TX, Q3 2018 [Member] | ||||
Business Acquisition [Line Items] | ||||
Area (in square feet) | 270,084 | 270,084 | ||
Number of Buildings Acquired | building | 1 | |||
Business Combination, Consideration Transferred | $ | $ 18,523 | |||
Pittsburgh, PA2, Q3 2018 [Member] | ||||
Business Acquisition [Line Items] | ||||
Area (in square feet) | 200,500 | 200,500 | ||
Number of Buildings Acquired | building | 1 | |||
Business Combination, Consideration Transferred | $ | $ 11,327 | |||
Minneapolis/St Paul, MN, Q3 2018 [Member] | ||||
Business Acquisition [Line Items] | ||||
Area (in square feet) | 120,606 | 120,606 | ||
Number of Buildings Acquired | building | 1 | |||
Business Combination, Consideration Transferred | $ | $ 8,422 | |||
Milwaukee/Madison, WI, Q3 2018 [Member] | ||||
Business Acquisition [Line Items] | ||||
Area (in square feet) | 100,800 | 100,800 | ||
Number of Buildings Acquired | building | 1 | |||
Business Combination, Consideration Transferred | $ | $ 7,484 | |||
Milwaukee/Madison, WI2, Q3 2018 [Member] | ||||
Business Acquisition [Line Items] | ||||
Area (in square feet) | 174,633 | 174,633 | ||
Number of Buildings Acquired | building | 2 | |||
Business Combination, Consideration Transferred | $ | $ 13,288 | |||
Chicago, IL, Q3 2018 [Member] | ||||
Business Acquisition [Line Items] | ||||
Area (in square feet) | 105,637 | 105,637 | ||
Number of Buildings Acquired | building | 1 | |||
Business Combination, Consideration Transferred | $ | $ 6,368 | |||
Indianapolis, IN, Q3 2018 [Member] | ||||
Business Acquisition [Line Items] | ||||
Area (in square feet) | 478,721 | 478,721 | ||
Number of Buildings Acquired | building | 1 | |||
Business Combination, Consideration Transferred | $ | $ 29,085 | |||
Augusta/Richmond County, GA, Q3 2018 [Member] | ||||
Business Acquisition [Line Items] | ||||
Area (in square feet) | 203,726 | 203,726 | ||
Number of Buildings Acquired | building | 1 | |||
Business Combination, Consideration Transferred | $ | $ 9,379 | |||
Charlotte, NC, Q3 2018 [Member] | ||||
Business Acquisition [Line Items] | ||||
Area (in square feet) | 301,000 | 301,000 | ||
Number of Buildings Acquired | building | 1 | |||
Business Combination, Consideration Transferred | $ | $ 16,807 |
Rental Property - Acquisition_2
Rental Property - Acquisitions - Allocation of Consideration (Details) - Acquisitions 2018 [Member] $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Allocation of the consideration paid for the acquired assets and liabilities | |
Land | $ 39,340 |
Buildings | 317,293 |
Tenant improvements | 4,849 |
Building and land improvements | 21,731 |
Other assets | 794 |
Other liabilities | 242 |
Total purchase price | 458,664 |
In-place leases | |
Allocation of the consideration paid for the acquired assets and liabilities | |
Deferred leasing intangibles | $ (52,276) |
Weighted average amortization period of lease intangibles | 8 years 7 months 25 days |
Tenant relationships | |
Allocation of the consideration paid for the acquired assets and liabilities | |
Deferred leasing intangibles | $ (21,861) |
Weighted average amortization period of lease intangibles | 11 years 9 months 10 days |
Above market leases | |
Allocation of the consideration paid for the acquired assets and liabilities | |
Deferred leasing intangibles | $ (4,062) |
Weighted average amortization period of lease intangibles | 8 years 2 months 10 days |
Below market leases | |
Allocation of the consideration paid for the acquired assets and liabilities | |
Deferred leasing intangibles | $ 3,122 |
Weighted average amortization period of lease intangibles | 6 years 7 months 25 days |
Above market ground leases | |
Allocation of the consideration paid for the acquired assets and liabilities | |
Deferred leasing intangibles | $ (178) |
Weighted average amortization period of lease intangibles | 48 years 1 month |
Rental Property - Acquisition_3
Rental Property - Acquisitions - Results of Operations (Details) - Acquisitions 2018 [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Business Acquisition [Line Items] | ||
Revenue | $ 7,122 | $ 11,156 |
Net income (loss) | $ 1,556 | $ 1,642 |
Rental Property - Disposals (De
Rental Property - Disposals (Details) ft² in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018USD ($)ft²building | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)ft²building | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of buildings disposed | building | 381 | 381 | |||
Area (in square feet) | ft² | 75.4 | 75.4 | |||
Carrying value of property sold | $ 2,886,079,000 | $ 2,886,079,000 | $ 2,567,577,000 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | 2018 Disposals [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of buildings disposed | building | 11 | 11 | |||
Area (in square feet) | ft² | 2 | 2 | |||
Carrying value of property sold | $ 57,100,000 | $ 57,100,000 | |||
Contribution to revenue | 100,000 | $ 2,600,000 | 2,700,000 | $ 7,700,000 | |
Disposal Group, Including Discontinued Operation, Operating Income (Loss) | $ 5,000 | $ 500,000 | 100,000 | $ 1,400,000 | |
Net proceeds from sales of rental property | 89,400,000 | ||||
Gain (Loss) on Sale | $ 32,300,000 |
Rental Property - Loss on Impai
Rental Property - Loss on Impairments (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Mar. 31, 2018USD ($)buildingRate | Sep. 30, 2018USD ($) | |
2018 Impairments [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loss on Impairment | $ | $ 2,934 | $ 2,934 |
2018 Impairments [Member] | Income Approach Valuation Technique | Fair Value, Inputs, Level 3 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Fair Value Disclosure | $ | $ 3,176 | $ 3,176 |
2018 Impairments [Member] | Income Approach Valuation Technique | Minimum | Fair Value, Inputs, Level 3 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Fair Value Inputs Exit Capitalization Rate | 11.00% | |
2018 Impairments [Member] | Income Approach Valuation Technique | Maximum | Fair Value, Inputs, Level 3 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Fair Value Inputs Exit Capitalization Rate | 13.00% | |
Buena Vista, VA, Q3 2012 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of Buildings Impaired | building | 1 | |
Sergeant Bluff, IA, Q4 2007 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of Buildings Impaired | building | 1 | |
Measurement Input, Discount Rate [Member] | 2018 Impairments [Member] | Income Approach Valuation Technique | Minimum | Fair Value, Inputs, Level 3 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Fair Value Inputs, Discount Rates | 11.00% | |
Measurement Input, Discount Rate [Member] | 2018 Impairments [Member] | Income Approach Valuation Technique | Maximum | Fair Value, Inputs, Level 3 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Fair Value Inputs, Discount Rates | 14.50% |
Rental Property - Deferred Leas
Rental Property - Deferred Leasing Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Deferred leasing intangibles, gross | $ 565,626 | $ 565,626 | $ 593,895 | ||
Deferred leasing intangibles assets, accumulated amortization | (237,892) | (237,892) | (280,642) | ||
Deferred leasing intangibles, net | 327,734 | 327,734 | 313,253 | ||
Below market lease, gross | 33,751 | 33,751 | 34,776 | ||
Below market lease, accumulated amortization | (13,043) | (13,043) | (13,555) | ||
Below market lease, net | 20,708 | 20,708 | 21,221 | ||
Net decrease to rental revenue related to above and below market lease amortization | 1,150 | $ 1,318 | 3,206 | $ 3,873 | |
Above market leases | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Deferred leasing intangibles, gross | 70,454 | 70,454 | 78,558 | ||
Deferred leasing intangibles assets, accumulated amortization | (31,663) | (31,663) | (36,810) | ||
Deferred leasing intangibles, net | 38,791 | 38,791 | 41,748 | ||
Net decrease to rental income related to above and below market lease amortization | |||||
Estimated Net Amortization of In-Place Leases, Leasing Commissions and Tenant Relationships | |||||
Remainder of 2018 | 927 | 927 | |||
2,019 | 3,926 | 3,926 | |||
2,020 | 3,546 | 3,546 | |||
2,021 | 2,163 | 2,163 | |||
2,022 | 1,154 | 1,154 | |||
Other intangible lease assets | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Deferred leasing intangibles, gross | 495,172 | 495,172 | 515,337 | ||
Deferred leasing intangibles assets, accumulated amortization | (206,229) | (206,229) | (243,832) | ||
Deferred leasing intangibles, net | 288,943 | 288,943 | $ 271,505 | ||
Amortization expense related to other intangible lease assets | 20,361 | $ 17,934 | 56,698 | $ 53,747 | |
Estimated Net Amortization of In-Place Leases, Leasing Commissions and Tenant Relationships | |||||
Remainder of 2018 | 17,263 | 17,263 | |||
2,019 | 57,841 | 57,841 | |||
2,020 | 47,750 | 47,750 | |||
2,021 | 37,229 | 37,229 | |||
2,022 | $ 29,690 | $ 29,690 |
Debt - Summary (Details)
Debt - Summary (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2017 | Jul. 26, 2018 | Apr. 10, 2018 | |
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 1,327,476 | $ 1,179,855 | ||
Unamortized debt issuance costs | (7,061) | (6,135) | ||
Debt Instrument, Unused Borrowing Capacity, Amount | 574,400 | |||
Unamortized fair market value premium | 52 | 61 | ||
Principal outstanding | $ 1,320,467 | 1,173,781 | ||
Weighted average interest rate | 3.69% | |||
Interest Rate Swaps | ||||
Debt Instrument [Line Items] | ||||
Notional amount | $ 600,000 | |||
London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 2.26056% | |||
$175 Million Unsecured Term Loan E [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Unused Borrowing Capacity, Amount | $ 175,000 | |||
Mortgage Loans Payable | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 57,476 | 58,855 | ||
Unamortized debt issuance costs | (535) | (634) | ||
Unamortized fair market value premium | 52 | 61 | ||
Principal outstanding | 56,993 | 58,282 | ||
Mortgage Loans Payable | Wells Fargo Bank, National Association CMBS Loan | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 53,652 | 54,949 | ||
Stated interest rate | 4.31% | |||
Penalty free prepayment period | 3 months | |||
Mortgage Loans Payable | Thrivent Financial for Lutherans Due December 15, 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 3,824 | 3,906 | ||
Stated interest rate | 4.78% | |||
Penalty free prepayment period | 3 months | |||
Unsecured Term Loans | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 600,000 | 450,000 | ||
Unamortized debt issuance costs | (3,915) | (3,735) | ||
Principal outstanding | 596,085 | 446,265 | ||
Unsecured Term Loans | $150 Million Wells Fargo Unsecured Term Loan C | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 150,000 | $ 150,000 | ||
Unsecured Term Loans | $150 Million Wells Fargo Unsecured Term Loan C | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin (as a percent) | 1.30% | 1.30% | ||
Unsecured Term Loans | $150 Million Wells Fargo Unsecured Term Loan B | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 150,000 | $ 150,000 | ||
Unsecured Term Loans | $150 Million Wells Fargo Unsecured Term Loan B | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin (as a percent) | 1.30% | 1.30% | ||
Unsecured Term Loans | $150 Million Wells Fargo Unsecured Term Loan A | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 150,000 | $ 150,000 | ||
Unsecured Term Loans | $150 Million Wells Fargo Unsecured Term Loan A | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin (as a percent) | 1.30% | 1.30% | ||
Unsecured Term Loans | $150 Million Unsecured Term Loan D [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 150,000 | $ 0 | ||
Unsecured Term Loans | $150 Million Unsecured Term Loan D [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin (as a percent) | 1.30% | 1.30% | ||
Unsecured Term Loans | $175 Million Unsecured Term Loan E [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 0 | $ 0 | $ 175,000 | |
Unsecured Term Loans | $175 Million Unsecured Term Loan E [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin (as a percent) | 1.20% | |||
Unsecured Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 575,000 | 400,000 | ||
Unamortized debt issuance costs | (2,611) | (1,766) | ||
Principal outstanding | 572,389 | 398,234 | ||
Unsecured Notes | $100 Million Series F Unsecured Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 100,000 | 100,000 | ||
Stated interest rate | 3.98% | |||
Unsecured Notes | $50 Million Series A Unsecured Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 50,000 | 50,000 | ||
Stated interest rate | 4.98% | |||
Unsecured Notes | $100 Million Series D Unsecured Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 100,000 | 100,000 | ||
Stated interest rate | 4.32% | |||
Unsecured Notes | $75 Million Series G Unsecured Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 75,000 | 0 | ||
Stated interest rate | 4.10% | 4.10% | ||
Unsecured Notes | $50 Million Series B Unsecured Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 50,000 | 50,000 | ||
Stated interest rate | 4.98% | |||
Unsecured Notes | $80 Million Series C Unsecured Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 80,000 | 80,000 | ||
Stated interest rate | 4.42% | |||
Unsecured Notes | $20 Million Series E Unsecured Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 20,000 | 20,000 | ||
Stated interest rate | 4.42% | |||
Unsecured Notes | $100 Million Series H Unsecured Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 100,000 | 0 | ||
Stated interest rate | 4.27% | 4.27% | ||
Unsecured Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Principal outstanding | $ 95,000 | $ 271,000 | ||
Maximum borrowing capacity | $ 500,000 | $ 500,000 | ||
Unsecured Credit Facility | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin (as a percent) | 1.05% | 1.15% | ||
Unsecured Credit Facility | Prepaid Expenses and Other Assets | ||||
Debt Instrument [Line Items] | ||||
Unamortized debt issuance costs | $ (3,400) | $ (1,500) |
Debt - 2018 Activity (Details)
Debt - 2018 Activity (Details) | Jul. 27, 2018USD ($) | Mar. 28, 2018USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)advanceRate | Sep. 30, 2017USD ($) | Apr. 10, 2018USD ($)Rate | Dec. 31, 2017USD ($) |
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Unused Borrowing Capacity, Amount | $ 574,400,000 | $ 574,400,000 | ||||||
Amortization of deferred financing fees | 617,000 | $ 546,000 | 1,698,000 | $ 1,553,000 | ||||
Net book value of properties that are collateral for debt arrangements | 88,400,000 | $ 88,400,000 | $ 90,900,000 | |||||
Unsecured Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Write off of Deferred Debt Issuance Cost | 13,000 | |||||||
Line of Credit Facility, Commitment Fee Percentage | Rate | 0.15% | |||||||
Debt Instrument, Fee Amount | 50,000 | $ 50,000 | ||||||
Accounts Payable and Accrued Liabilities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest payable | 7,700,000 | 7,700,000 | $ 5,600,000 | |||||
$175 Million Unsecured Term Loan E [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Unused Borrowing Capacity, Amount | 175,000,000 | 175,000,000 | ||||||
$175 Million Unsecured Term Loan E [Member] | Unsecured Term Loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Accordion Feature, Increase Limit | 350,000,000 | $ 350,000,000 | ||||||
Debt Instrument, Accordion Feature, Number of Advances, Maximum | advance | 6 | |||||||
Debt Instrument, Accordion Feature, Increase Limit, Minimum Advance | $ 25,000,000 | |||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | Rate | 0.15% | |||||||
Debt Instrument, Fee Amount | $ 35,000 | $ 35,000 | ||||||
$75 Million Series G Unsecured Notes [Member] | Unsecured Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 75,000,000 | |||||||
Stated interest rate | 4.10% | 4.10% | 4.10% | |||||
$100 Million Series H Unsecured Notes [Member] | Unsecured Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 100,000,000 | |||||||
Stated interest rate | 4.27% | 4.27% | 4.27% | |||||
$150 Million Unsecured Term Loan D [Member] | Unsecured Term Loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Proceeds from Issuance of Debt | $ 75,000,000 | $ 75,000,000 | ||||||
Interest Expense [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Commitment Fee Amount | $ 275,000 | $ 286,000 | $ 928,000 | $ 839,000 |
Debt - Fair Value (Details)
Debt - Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 1,327,476 | $ 1,179,855 |
Unamortized fair market value premium | 52 | 61 |
Unamortized debt issuance costs | (7,061) | (6,135) |
Principal outstanding | 1,320,467 | 1,173,781 |
Long-term debt, fair value | 1,329,764 | 1,198,359 |
Unsecured Credit Facility | ||
Debt Instrument [Line Items] | ||
Principal outstanding | 95,000 | 271,000 |
Long-term debt, fair value | 95,000 | 271,528 |
Unsecured Term Loans | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 600,000 | 450,000 |
Unamortized debt issuance costs | (3,915) | (3,735) |
Principal outstanding | 596,085 | 446,265 |
Long-term debt, fair value | 607,663 | 451,463 |
Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 575,000 | 400,000 |
Unamortized debt issuance costs | (2,611) | (1,766) |
Principal outstanding | 572,389 | 398,234 |
Long-term debt, fair value | 569,493 | 415,599 |
Mortgage Loans Payable | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 57,476 | 58,855 |
Unamortized fair market value premium | 52 | 61 |
Unamortized debt issuance costs | (535) | (634) |
Principal outstanding | 56,993 | 58,282 |
Long-term debt, fair value | $ 57,608 | $ 59,769 |
Use of Derivative Financial I_3
Use of Derivative Financial Instruments - Risk Management and Unsecured Loan Swaps (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Interest Rate Swaps | ||
Unsecured Term Loan Swaps | ||
Notional amount assets | $ 900,000 | $ 475,000 |
Interest Rate Derivative, Regions Bank, March 01, 2013 | ||
Unsecured Term Loan Swaps | ||
Notional amount assets | 25,000 | |
Fair value | $ 471 | |
Fixed Interest Rate (as a percent) | 1.33% | |
Interest Rate Derivative, Capital One, July 01, 2013 | ||
Unsecured Term Loan Swaps | ||
Notional amount assets | $ 50,000 | |
Fair value | $ 703 | |
Fixed Interest Rate (as a percent) | 1.681% | |
Interest Rate Derivative, Capital One, August 01, 2013 | ||
Unsecured Term Loan Swaps | ||
Notional amount assets | $ 25,000 | |
Fair value | $ 344 | |
Fixed Interest Rate (as a percent) | 1.703% | |
Interest Rate Derivative, Regions Bank, February 03, 2014 | ||
Unsecured Term Loan Swaps | ||
Notional amount assets | $ 25,000 | |
Fair value | $ 245 | |
Fixed Interest Rate (as a percent) | 1.9925% | |
Interest Rate Derivative, The Toronto-Dominion Bank, September 29, 2016 | ||
Unsecured Term Loan Swaps | ||
Notional amount assets | $ 25,000 | |
Fair value | $ 700 | |
Fixed Interest Rate (as a percent) | 1.383% | |
Interest Rate Derivative, PNC Bank, September 29, 2016 | ||
Unsecured Term Loan Swaps | ||
Notional amount assets | $ 50,000 | |
Fair value | $ 1,391 | |
Fixed Interest Rate (as a percent) | 1.3906% | |
Interest Rate Derivative, Regions Bank, September 29, 2016 | ||
Unsecured Term Loan Swaps | ||
Notional amount assets | $ 35,000 | |
Fair value | $ 978 | |
Fixed Interest Rate (as a percent) | 1.3858% | |
Interest Rate Derivative, US Bank, September 29, 2016 | ||
Unsecured Term Loan Swaps | ||
Notional amount assets | $ 25,000 | |
Fair value | $ 695 | |
Fixed Interest Rate (as a percent) | 1.395% | |
Interest Rate Derivative, Capital One, September 29, 2016 | ||
Unsecured Term Loan Swaps | ||
Notional amount assets | $ 15,000 | |
Fair value | $ 417 | |
Fixed Interest Rate (as a percent) | 1.395% | |
Interest Rate Derivative, Royal Bank of Canada, March 20, 2015 | ||
Unsecured Term Loan Swaps | ||
Notional amount assets | $ 25,000 | |
Fair value | $ 684 | |
Fixed Interest Rate (as a percent) | 1.709% | |
Interest Rate Derivative, The Toronto-Dominion Bank, March 20, 2015 | ||
Unsecured Term Loan Swaps | ||
Notional amount assets | $ 25,000 | |
Fair value | $ 682 | |
Fixed Interest Rate (as a percent) | 1.7105% | |
Interest Rate Derivative, The Toronto-Dominion Bank, September 10, 2017 | ||
Unsecured Term Loan Swaps | ||
Notional amount assets | $ 100,000 | |
Fair value | $ 1,488 | |
Fixed Interest Rate (as a percent) | 2.2255% | |
Interest Rate Derivative, Wells Fargo Bank, March 20, 2015 | ||
Unsecured Term Loan Swaps | ||
Notional amount assets | $ 25,000 | |
Fair value | $ 886 | |
Fixed Interest Rate (as a percent) | 1.828% | |
Interest Rate Derivative, The Toronto-Dominion Bank, February 14, 2020 | ||
Unsecured Term Loan Swaps | ||
Notional amount assets | $ 25,000 | |
Fair value | $ 271 | |
Fixed Interest Rate (as a percent) | 2.4535% | |
Interest Rate Derivative, Regions Bank, February 14, 2020 | ||
Unsecured Term Loan Swaps | ||
Notional amount assets | $ 50,000 | |
Fair value | $ 520 | |
Fixed Interest Rate (as a percent) | 2.475% | |
Interest Rate Derivative, Capital One, February 14, 2020 | ||
Unsecured Term Loan Swaps | ||
Notional amount assets | $ 50,000 | |
Fair value | $ 467 | |
Fixed Interest Rate (as a percent) | 2.53% | |
Interest Rate Derivative, The Toronto-Dominion Bank, October 30, 2017 | ||
Unsecured Term Loan Swaps | ||
Notional amount assets | $ 25,000 | |
Fair value | $ 1,054 | |
Fixed Interest Rate (as a percent) | 1.8485% | |
Interest Rate Derivative, Royal Bank of Canada, October 30, 2017 | ||
Unsecured Term Loan Swaps | ||
Notional amount assets | $ 25,000 | |
Fair value | $ 1,054 | |
Fixed Interest Rate (as a percent) | 1.8505% | |
Interest Rate Derivative, Wells Fargo Bank, October 30, 2017 | ||
Unsecured Term Loan Swaps | ||
Notional amount assets | $ 25,000 | |
Fair value | $ 1,055 | |
Fixed Interest Rate (as a percent) | 1.8505% | |
Interest Rate Derivative, PNC Bank, $25m, October 30, 2017 | ||
Unsecured Term Loan Swaps | ||
Notional amount assets | $ 25,000 | |
Fair value | $ 1,052 | |
Fixed Interest Rate (as a percent) | 1.8485% | |
Interest Rate Derivative, PNC Bank, $50m, October 30, 2017 | ||
Unsecured Term Loan Swaps | ||
Notional amount assets | $ 50,000 | |
Fair value | $ 2,105 | |
Fixed Interest Rate (as a percent) | 1.8475% | |
Interest Rate Derivative, The Toronto-Dominion Bank, July 26, 2019 [Member] | ||
Unsecured Term Loan Swaps | ||
Notional amount assets | $ 50,000 | |
Fair value | $ 111 | |
Fixed Interest Rate (as a percent) | 2.918% | |
Interest Rate Derivative, PNC Bank, July 26, 2019 [Member] | ||
Unsecured Term Loan Swaps | ||
Notional amount assets | $ 50,000 | |
Fair value | $ 106 | |
Fixed Interest Rate (as a percent) | 2.919% | |
Interest Rate Derivative, Bank of Montreal, July 26, 2019 [Member] | ||
Unsecured Term Loan Swaps | ||
Notional amount assets | $ 50,000 | |
Fair value | $ 113 | |
Fixed Interest Rate (as a percent) | 2.919% | |
Interest Rate Derivative, US Bank, July 26, 2019 [Member] | ||
Unsecured Term Loan Swaps | ||
Notional amount assets | $ 25,000 | |
Fair value | $ 57 | |
Fixed Interest Rate (as a percent) | 2.919% |
Use of Derivative Financial I_4
Use of Derivative Financial Instruments - FV of Interest Rate Swaps (Details) - Interest Rate Swaps - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair value of the interest rate swaps outstanding | ||
Notional amount assets | $ 900,000 | $ 475,000 |
Fair value - assets | 17,649 | 6,079 |
Notional amount liabilities | 0 | 250,000 |
Fair Value - liabilities | $ 0 | $ (1,217) |
Use of Derivative Financial I_5
Use of Derivative Financial Instruments - Cash Flow Hedges and Contingent Features (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Cash Flow Hedges of Interest Rate Risk | ||||
Total interest expense presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded | $ 12,698 | $ 10,446 | $ 35,602 | $ 31,557 |
Interest Rate Swaps | ||||
Cash Flow Hedges of Interest Rate Risk | ||||
Additional amount reclassified from accumulated other comprehensive income (loss) as a decrease to interest expense over the next twelve months | (5,100) | (5,100) | ||
Income (loss) recognized in accumulated other comprehensive income on interest rate swaps | 2,572 | 316 | 13,349 | (1,126) |
Income (loss) reclassified from accumulated other comprehensive income into income (loss) as interest expense | 512 | (282) | 538 | (1,426) |
Total interest expense presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded | $ 12,698 | $ 10,446 | $ 35,602 | $ 31,557 |
Use of Derivative Financial I_6
Use of Derivative Financial Instruments - FV on Recurring Basis (Details) - Interest Rate Swaps - Fair value on recurring basis - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets (liabilities): | ||
Interest rate swaps-Asset | $ 17,649 | $ 6,079 |
Interest rate swaps-Liability | 0 | (1,217) |
Level 1 | ||
Assets (liabilities): | ||
Interest rate swaps-Asset | 0 | 0 |
Interest rate swaps-Liability | 0 | 0 |
Level 2 | ||
Assets (liabilities): | ||
Interest rate swaps-Asset | 17,649 | 6,079 |
Interest rate swaps-Liability | 0 | (1,217) |
Level 3 | ||
Assets (liabilities): | ||
Interest rate swaps-Asset | 0 | 0 |
Interest rate swaps-Liability | $ 0 | $ 0 |
Equity - Preferred Stock (Detai
Equity - Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 10, 2018 | Jun. 11, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Jul. 11, 2018 |
Class of Stock [Line Items] | |||||||||||||
Preferred Stock Redemption Premium | $ 0 | $ 0 | $ 2,661 | $ 0 | |||||||||
Preferred stock, shares authorized | 15,000,000 | 15,000,000 | 15,000,000 | 15,000,000 | |||||||||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||
Series B Preferred Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Stock Redeemed or Called During Period, Shares | 2,800,000 | ||||||||||||
Dividend rate (as a percent) | 6.625% | ||||||||||||
Preferred Stock Redemption Premium | $ 2,700 | ||||||||||||
Preferred Stock, Redemption Price Per Share | $ 25 | ||||||||||||
Preferred stock, shares issued | 0 | 2,800,000 | 0 | 2,800,000 | |||||||||
Preferred stock, liquidation preference (in dollars per share) | $ 0 | $ 25 | $ 0 | $ 25 | |||||||||
Number of shares outstanding | 2,800,000 | 0 | 2,800,000 | 0 | 2,800,000 | ||||||||
Preferred Stock, Dividends Per Share, Declared | $ 0.0460069 | $ 0.4140625 | $ 0.4140625 | $ 0.4140625 | $ 0.4140625 | $ 0.4140625 | $ 0.4140625 | $ 0.8741319 | $ 1.6562500 | ||||
Dividends Payable, Date Declared | Jul. 11, 2018 | Apr. 10, 2018 | Feb. 14, 2018 | Nov. 2, 2017 | Jul. 31, 2017 | May 1, 2017 | Feb. 15, 2017 | ||||||
Dividends Payable, Date to be Paid | Oct. 1, 2018 | Jul. 2, 2018 | Apr. 2, 2018 | Dec. 29, 2017 | Sep. 29, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | ||||||
Series C Preferred Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Dividend rate (as a percent) | 6.875% | ||||||||||||
Preferred stock, shares issued | 3,000,000 | 3,000,000 | 3,000,000 | 3,000,000 | |||||||||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 | $ 25 | $ 25 | |||||||||
Number of shares outstanding | 3,000,000 | 3,000,000 | 3,000,000 | 3,000,000 | |||||||||
Preferred Stock, Dividends Per Share, Declared | $ 0.4296875 | $ 0.4296875 | $ 0.4296875 | $ 0.4296875 | $ 0.4296875 | $ 0.4296875 | $ 0.4296875 | $ 1.2890625 | $ 1.7187500 | ||||
Dividends Payable, Date Declared | Jul. 11, 2018 | Apr. 10, 2018 | Feb. 14, 2018 | Nov. 2, 2017 | Jul. 31, 2017 | May 1, 2017 | Feb. 15, 2017 | ||||||
Dividends Payable, Date to be Paid | Oct. 1, 2018 | Jul. 2, 2018 | Apr. 2, 2018 | Dec. 29, 2017 | Sep. 29, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | ||||||
Series C Preferred Stock | Scenario, Forecast [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Preferred Stock, Dividends Per Share, Declared | $ 0.4296875 |
Equity - Common Stock ATM (Deta
Equity - Common Stock ATM (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Class of Stock [Line Items] | |||
Proceeds from sales of common stock | $ 276,457 | $ 339,624 | |
At The Market Program 2017 $500 Million | Common Stock | |||
Class of Stock [Line Items] | |||
Common Stock Value Authorized under Stock Offering Program | 500,000 | ||
Aggregate value of common stock available to be sold under the ATM | $ 213,217 | ||
Number of shares sold | 10,387,962 | 363,843 | |
Proceeds from sales of common stock | $ 276,457 | $ 10,326 | |
Sales agents' fee | 2,888 | 129 | |
Net proceeds | $ 273,569 | $ 10,197 | |
At The Market Program 2017 $300 Million | Common Stock | |||
Class of Stock [Line Items] | |||
Number of shares sold | 11,098,748 | ||
Proceeds from sales of common stock | $ 300,000 | ||
Sales agents' fee | 3,637 | ||
Net proceeds | $ 296,363 | ||
At The Market Program 2016 $228 Million | Common Stock | |||
Class of Stock [Line Items] | |||
Number of shares sold | 4,799,784 | ||
Proceeds from sales of common stock | $ 117,216 | ||
Sales agents' fee | 1,604 | ||
Net proceeds | $ 115,612 | ||
At The Market (ATM) Program | Common Stock | |||
Class of Stock [Line Items] | |||
Number of shares sold | 10,387,962 | 16,262,375 | |
Proceeds from sales of common stock | $ 276,457 | $ 427,542 | |
Sales agents' fee | 2,888 | 5,370 | |
Net proceeds | $ 273,569 | $ 422,172 | |
Weighted Average | At The Market Program 2017 $500 Million | Common Stock | |||
Class of Stock [Line Items] | |||
Issue price (in dollars per share) | $ 26.61 | $ 28.38 | |
Weighted Average | At The Market Program 2017 $300 Million | Common Stock | |||
Class of Stock [Line Items] | |||
Issue price (in dollars per share) | 27.03 | ||
Weighted Average | At The Market Program 2016 $228 Million | Common Stock | |||
Class of Stock [Line Items] | |||
Issue price (in dollars per share) | 24.42 | ||
Weighted Average | At The Market (ATM) Program | Common Stock | |||
Class of Stock [Line Items] | |||
Issue price (in dollars per share) | $ 26.61 | $ 26.29 |
Equity - Common Stock Dividends
Equity - Common Stock Dividends (Details) - Common Stock - $ / shares | Oct. 15, 2018 | Oct. 10, 2018 | Sep. 17, 2018 | Aug. 15, 2018 | Jul. 16, 2018 | Jul. 11, 2018 | Jun. 15, 2018 | May 15, 2018 | Apr. 16, 2018 | Apr. 10, 2018 | Mar. 15, 2018 | Feb. 15, 2018 | Jan. 16, 2018 | Dec. 15, 2017 | Nov. 15, 2017 | Nov. 02, 2017 | Oct. 16, 2017 | Sep. 15, 2017 | Aug. 15, 2017 | Jul. 31, 2017 | Jul. 17, 2017 | Jun. 15, 2017 | May 15, 2017 | May 01, 2017 | Apr. 17, 2017 | Mar. 15, 2017 | Feb. 15, 2017 | Nov. 02, 2016 | Sep. 30, 2018 | Dec. 31, 2017 |
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.118333 | $ 0.118333 | $ 0.118333 | $ 0.118333 | $ 0.118333 | $ 0.118333 | $ 0.118333 | $ 0.118333 | $ 0.117500 | $ 0.117500 | $ 0.117500 | $ 0.117500 | $ 0.117500 | $ 0.117500 | $ 0.116667 | $ 0.116667 | $ 0.116667 | $ 0.116667 | $ 0.116667 | $ 0.116667 | $ 1.064997 | $ 1.405002 | ||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.118333 | $ 0.118333 | $ 0.118333 | $ 0.117500 | $ 0.117500 | $ 0.116667 | $ 0.116667 | $ 1.064997 | $ 1.405002 | |||||||||||||||||||||
Scenario, Forecast [Member] | ||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.118333 | |||||||||||||||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.118333 |
Equity - Restricted Stock (Deta
Equity - Restricted Stock (Details) - Restricted stock - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Shares | |||||
Unvested at beginning of period (in shares) | 237,207 | 272,337 | 272,337 | ||
Granted (in shares) | 76,659 | 75,001 | |||
Vested (in shares) | 0 | 0 | (112,405) | (109,209) | (109,209) |
Forfeited (in shares) | (10,630) | (922) | |||
Unvested at end of period (in shares) | 190,831 | 190,831 | 237,207 | ||
Stock Repurchased and Retired During Period, Shares | 41,975 | 40,836 | |||
Unrecognized compensation costs | $ 3,100 | $ 3,100 | |||
Unrecognized compensation costs, period for recognition | 2 years 5 months 20 days | ||||
Vested (in shares) | 0 | 0 | (112,405) | (109,209) | (109,209) |
Fair value of shares vested | $ 0 | $ 0 | $ 3,002 | $ 2,591 | |
Granted on January 5, 2018 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 4 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 26.40 | ||||
Granted on January 6, 2017 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 24.41 |
Noncontrolling Interest - Summa
Noncontrolling Interest - Summary (Details) - shares | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Noncontrolling interest | |||
Noncontrolling interest ownership percentage | 3.60% | 4.10% | 4.30% |
Noncontrolling Interest - Unit holders in Operating Partnership | |||
Noncontrolling interest | |||
Units outstanding, balance at beginning of period (in units) | 4,096,687 | 3,633,881 | |
Granted/Issued | 324,802 | 814,066 | |
Forfeited | 0 | 0 | |
Conversions from LTIP units to Other Common Units | 0 | 0 | |
Redemptions from Other Common Units to common stock | 352,055 | 351,260 | |
Units outstanding, balance at end of period (in units) | 4,069,434 | 4,096,687 | |
LTIP Units | Noncontrolling Interest - Unit holders in Operating Partnership | |||
Noncontrolling interest | |||
Units outstanding, balance at beginning of period (in units) | 1,457,070 | 1,576,516 | |
Granted/Issued | 324,802 | 126,239 | |
Forfeited | 0 | 0 | |
Conversions from LTIP units to Other Common Units | 165,672 | 245,685 | |
Redemptions from Other Common Units to common stock | 0 | 0 | |
Units outstanding, balance at end of period (in units) | 1,616,200 | 1,457,070 | |
Other Common Units | Noncontrolling Interest - Unit holders in Operating Partnership | |||
Noncontrolling interest | |||
Units outstanding, balance at beginning of period (in units) | 2,639,617 | 2,057,365 | |
Granted/Issued | 0 | 687,827 | |
Forfeited | 0 | 0 | |
Conversions from LTIP units to Other Common Units | (165,672) | (245,685) | |
Redemptions from Other Common Units to common stock | 352,055 | 351,260 | |
Units outstanding, balance at end of period (in units) | 2,453,234 | 2,639,617 |
Noncontrolling Interest - LTIP
Noncontrolling Interest - LTIP FV Assumptions (Details) - LTIP Units - USD ($) $ / shares in Units, $ in Thousands | Mar. 12, 2018 | Jan. 05, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Assumptions | ||||
LTIP units at issuance | 324,802 | 126,239 | ||
Granted on March 12, 2018 | ||||
Assumptions | ||||
Expected term (years) | 10 years | |||
Expected volatility | 22.00% | |||
Expected dividend yield | 6.00% | |||
Risk-free interest rate | 2.46% | |||
Fair value of LTIP units at issuance (in thousands) | $ 90 | |||
LTIP units at issuance | 3,930 | |||
Fair value unit price per LTIP unit at issuance | $ 22.90 | |||
Granted on January 5, 2018 | ||||
Assumptions | ||||
Expected term (years) | 10 years | |||
Expected volatility | 22.00% | |||
Expected dividend yield | 6.00% | |||
Risk-free interest rate | 2.09% | |||
Fair value of LTIP units at issuance (in thousands) | $ 3,447 | |||
LTIP units at issuance | 137,616 | |||
Fair value unit price per LTIP unit at issuance | $ 25.05 | |||
Executive Officer [Member] | Share-based Compensation Award, Tranche One [Member] | Granted on January 5, 2018 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (in years) | 4 years |
Noncontrolling Interest - LTI_2
Noncontrolling Interest - LTIP Units (Details) - LTIP Units - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation costs | $ 5,700 | $ 5,700 | |||
Unrecognized compensation costs, period for recognition | 2 years 5 months 20 days | ||||
Units | |||||
Unvested at beginning of period (in shares) | 300,307 | 403,423 | 403,423 | ||
Granted (in shares) | 324,802 | 126,239 | |||
Vested (in shares) | (30,949) | (44,942) | (342,940) | (157,816) | (229,355) |
Forfeited (in shares) | 0 | 0 | |||
Unvested at end of period (in shares) | 282,169 | 282,169 | 300,307 | ||
Fair value of shares vested | $ 851 | $ 1,235 | $ 9,002 | $ 4,146 |
Equity Incentive Plan - Perform
Equity Incentive Plan - Performance Plan Assumptions (Details) - Performance shares - Awarded in 2018 $ in Thousands | Jan. 05, 2018USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility | 22.00% |
Expected dividend yield | 6.00% |
Risk-free interest rate | 2.09% |
Fair value of performance units grant (in thousands) | $ 5,456 |
Equity Incentive Plan - 2018 Ac
Equity Incentive Plan - 2018 Activity (Details) - USD ($) $ in Thousands | Apr. 30, 2018 | Jan. 01, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
LTIP Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 851 | $ 1,235 | $ 9,002 | $ 4,146 | ||
Unrecognized compensation costs | 5,700 | $ 5,700 | ||||
Unrecognized compensation costs, period for recognition | 2 years 5 months 20 days | |||||
Performance shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation costs | $ 6,100 | $ 6,100 | ||||
Unrecognized compensation costs, period for recognition | 2 years 3 months 20 days | |||||
Equity Incentive Plan2011 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 3,000,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 6,642,461 | |||||
Outperformance Program2015 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period (in years) | 3 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 6,200 | |||||
Outperformance Program2015 [Member] | LTIP Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 183,256 | |||||
Outperformance Program2015 [Member] | Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 53,722 | |||||
Stock Repurchased and Retired During Period, Shares | 15,183 |
Equity Incentive Plan - Equity
Equity Incentive Plan - Equity Non-cash Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Common Stock | ||||
Equity Incentive Plan | ||||
Number of days of average trailing stock price used to calculate number of shares of common stock granted | 10 days | |||
General and Administrative Expenses | ||||
Equity Incentive Plan | ||||
Share-based compensation | $ 2,236 | $ 2,384 | $ 6,671 | $ 7,159 |
General and Administrative Expenses | Independent Director | ||||
Equity Incentive Plan | ||||
Share-based compensation | 99 | 87 | 285 | 265 |
General and Administrative Expenses | Restricted stock | ||||
Equity Incentive Plan | ||||
Share-based compensation | 406 | 594 | 1,269 | 1,776 |
General and Administrative Expenses | LTIP Units | ||||
Equity Incentive Plan | ||||
Share-based compensation | 893 | 1,167 | 2,654 | 3,508 |
General and Administrative Expenses | Performance shares | ||||
Equity Incentive Plan | ||||
Share-based compensation | $ 838 | $ 536 | $ 2,463 | $ 1,610 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Participating securities | 193,117 | 237,207 | 196,871 | 238,129 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Numerator and Denominator (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Numerator | ||||
Net income | $ 8,876 | $ 21,839 | $ 48,989 | $ 23,276 |
Less: preferred stock dividends | 1,289 | 2,449 | 6,315 | 7,345 |
Preferred Stock Redemption Premium | 0 | 0 | 2,661 | 0 |
Less: amount allocated to participating securities | 69 | 84 | 209 | 250 |
Less: income attributable to noncontrolling interest after preferred stock dividends | 281 | 828 | 1,589 | 673 |
Net income attributable to common stockholders | $ 7,237 | $ 18,478 | $ 38,215 | $ 15,008 |
Denominator | ||||
Weighted average common shares outstanding — basic | 105,783 | 92,787 | 101,095 | 87,632 |
Share-based compensation | 550 | 648 | 400 | 606 |
Weighted average common shares outstanding — diluted | 106,333 | 93,435 | 101,495 | 88,238 |
Net income per share — basic and diluted | ||||
Net income per share attributable to common stockholders — basic | $ 0.07 | $ 0.20 | $ 0.38 | $ 0.17 |
Net income per share attributable to common stockholders — diluted | $ 0.07 | $ 0.20 | $ 0.38 | $ 0.17 |
Restricted stock | ||||
Net income per share — basic and diluted | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 193 | 237 | 197 | 238 |
Commitments and Contingencies -
Commitments and Contingencies - Agreements (Details) $ in Millions | Sep. 30, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Letters of credit outstanding | $ 5.6 |