Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 27, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | FALSE | |
Entity Registrant Name | PS BUSINESS PARKS INC/CA | |
Entity Central Index Key | 866368 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 26,947,885 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and cash equivalents | $188,022 | $152,467 |
Real estate facilities, at cost: | ||
Land | 798,310 | 798,310 |
Buildings and improvements | 2,216,747 | 2,210,525 |
Gross real estate investment property | 3,015,057 | 3,008,835 |
Accumulated depreciation | -1,031,350 | -1,009,901 |
Net real estate investment property | 1,983,707 | 1,998,934 |
Properties held for disposition, net | 500 | 12,068 |
Land and building held for development | 25,614 | 24,442 |
Total real estate investments | 2,009,821 | 2,035,444 |
Rent receivable, net | 5,856 | 2,838 |
Deferred rent receivable, net | 27,040 | 26,050 |
Other assets | 6,633 | 10,315 |
Total assets | 2,237,372 | 2,227,114 |
LIABILITIES AND EQUITY | ||
Accrued and other liabilities | 68,612 | 68,905 |
Mortgage note payable | 250,000 | 250,000 |
Total liabilities | 318,612 | 318,905 |
Commitments and contingencies | ||
PS Business Parks, Inc.'s shareholders' equity: | ||
Preferred stock, $0.01 par value, 50,000,000 shares authorized, 39,800 shares issued and outstanding at March 31, 2015 and December 31, 2014 | 995,000 | 995,000 |
Common stock, $0.01 par value, 100,000,000 shares authorized, 26,947,885 and 26,919,161 shares issued and outstanding at March 31, 2015 and December 31, 2014 respectively | 268 | 268 |
Paid-in capital | 711,067 | 709,008 |
Cumulative net income | 1,279,937 | 1,244,946 |
Cumulative distributions | -1,264,527 | -1,235,941 |
Total PS Business Parks, Inc.'s shareholders' equity | 1,721,745 | 1,713,281 |
Noncontrolling interests: | ||
Common units | 197,015 | 194,928 |
Total noncontrolling interests | 197,015 | 194,928 |
Total equity | 1,918,760 | 1,908,209 |
Total liabilities and equity | $2,237,372 | $2,227,114 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Consolidated Balance Sheets [Abstract] | ||
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 39,800 | 39,800 |
Preferred stock, shares outstanding | 39,800 | 39,800 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 26,947,885 | 26,919,161 |
Common stock, shares outstanding | 26,947,885 | 26,919,161 |
Consolidated_Statements_Of_Inc
Consolidated Statements Of Income (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues: | ||
Rental income | $92,315 | $95,321 |
Facility management fees | 147 | 166 |
Total operating revenues | 92,462 | 95,487 |
Expenses: | ||
Cost of operations | 31,746 | 33,444 |
Depreciation and amortization | 26,233 | 28,441 |
General and administrative | 3,399 | 2,487 |
Total operating expenses | 61,378 | 64,372 |
Other income and (expense): | ||
Interest and other income | 107 | 62 |
Interest and other expense | -3,323 | -3,376 |
Total other income and (expense) | -3,216 | -3,314 |
Gain on sale of real estate facilities | 12,487 | |
Net income | 40,355 | 27,801 |
Net income allocable to noncontrolling interests: | ||
Noncontrolling interests - common units | 5,364 | 2,703 |
Total net income allocable to noncontrolling interests | 5,364 | 2,703 |
Net income allocable to PS Business Parks, Inc.: | ||
Preferred shareholders | 15,122 | 15,122 |
Restricted stock unit holders | 98 | 36 |
Common shareholders | 19,771 | 9,940 |
Total net income allocable to PS Business Parks, Inc. | 34,991 | 25,098 |
Net income | $40,355 | $27,801 |
Net income per common share: | ||
Basic | $0.73 | $0.37 |
Diluted | $0.73 | $0.37 |
Weighted average common shares outstanding: | ||
Basic | 26,925 | 26,863 |
Diluted | 27,024 | 26,961 |
Dividends declared per common share | $0.50 | $0.50 |
Consolidated_Statement_Of_Equi
Consolidated Statement Of Equity (USD $) | Preferred Stock [Member] | Common Stock [Member] | Paid-In Capital [Member] | Cumulative Net Income [Member] | Cumulative Distributions [Member] | Total PS Business Parks, Inc.'s Shareholders' Equity [Member] | Noncontrolling Interests [Member] | Total |
In Thousands, except Share data, unless otherwise specified | ||||||||
Balances, value at Dec. 31, 2014 | $995,000 | $268 | $709,008 | $1,244,946 | ($1,235,941) | $1,713,281 | $194,928 | $1,908,209 |
Balances, shares at Dec. 31, 2014 | 39,800 | 26,919,161 | ||||||
Exercise of stock options, value | 785 | 785 | 785 | |||||
Exercise of stock options, shares | 15,500 | 15,500 | ||||||
Stock compensation, net, value | 1,650 | 1,650 | 1,650 | |||||
Stock compensation, net, shares | 13,224 | |||||||
Net income | 34,991 | 34,991 | 5,364 | 40,355 | ||||
Distributions: | ||||||||
Preferred stock | -15,122 | -15,122 | -15,122 | |||||
Common stock | -13,464 | -13,464 | -13,464 | |||||
Noncontrolling interests | -3,653 | -3,653 | ||||||
Adjustment to noncontrolling interests in underlying operating partnership | -376 | -376 | 376 | |||||
Balances, value at Mar. 31, 2015 | $995,000 | $268 | $711,067 | $1,279,937 | ($1,264,527) | $1,721,745 | $197,015 | $1,918,760 |
Balances, shares at Mar. 31, 2015 | 39,800 | 26,947,885 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net income | $40,355 | $27,801 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 26,233 | 28,441 |
In-place lease adjustment | -311 | -197 |
Tenant improvement reimbursements net of lease incentives | -397 | -438 |
Gain on sale of real estate facilities | -12,487 | |
Stock compensation | 2,404 | 1,230 |
Increase (decrease) in receivables and other assets | -1,004 | 943 |
Decrease in accrued and other liabilities | -530 | -2,452 |
Total adjustments | 13,908 | 27,527 |
Net cash provided by operating activities | 54,263 | 55,328 |
Cash flows from investing activities: | ||
Capital expenditures to real estate facilities | -10,572 | -10,227 |
Capital expenditures to land and building held for development | -1,172 | -628 |
Proceeds from the sale of real estate facility | 24,490 | |
Net cash provided by (used in) investing activities | 12,746 | -10,855 |
Cash flows from financing activities: | ||
Proceeds from the exercise of stock options | 785 | 2,033 |
Distributions paid to preferred shareholders | -15,122 | -15,122 |
Distributions paid to noncontrolling interests - common units | -3,653 | -3,653 |
Distributions paid to common shareholders | -13,464 | -13,443 |
Net cash used in financing activities | -31,454 | -30,185 |
Net increase in cash and cash equivalents | 35,555 | 14,288 |
Cash and cash equivalents at the beginning of the period | 152,467 | 31,481 |
Cash and cash equivalents at the end of the period | 188,022 | 45,769 |
Adjustment to noncontrolling interests in underlying operating partnership: | ||
Noncontrolling interests - common units | 376 | 374 |
Paid-in capital | ($376) | ($374) |
Organization_And_Description_O
Organization And Description Of Business | 3 Months Ended |
Mar. 31, 2015 | |
Organization And Description Of Business [Abstract] | |
Organization And Description Of Business | 1. Organization and description of business |
PS Business Parks, Inc. (“PSB”) was incorporated in the state of California in 1990. As of March 31, 2015, PSB owned 77.8% of the common partnership units of PS Business Parks, L.P. (the “Operating Partnership”). The remaining common partnership units are owned by Public Storage (“PS”). PSB, as the sole general partner of the Operating Partnership, has full, exclusive and complete responsibility and discretion in managing and controlling the Operating Partnership. PSB and its subsidiaries, including the Operating Partnership are collectively referred to as the “Company.” Assuming issuance of the Company’s common stock upon redemption of its partnership units, PS would own 42.2% (or 14.5 million shares) of the outstanding shares of the Company’s common stock. | |
The Company is a fully-integrated, self-advised and self-managed real estate investment trust (“REIT”) that owns, operates, acquires and develops commercial properties, primarily multi-tenant flex, office and industrial space. As of March 31, 2015, the Company owned and operated 28.4 million rentable square feet of commercial space concentrated primarily in six states. The Company also manages 872,000 rentable square feet on behalf of PS. | |
References to the number of properties or square footage are unaudited and outside the scope of the Company’s independent registered public accounting firm’s review of the Company’s financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). | |
Summary_Of_Significant_Account
Summary Of Significant Accounting Policies | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Summary Of Significant Accounting Policies [Abstract] | ||||||
Summary Of Significant Accounting Policies | 2. Summary of significant accounting policies | |||||
Basis of presentation | ||||||
The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ended December 31, 2015. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. | ||||||
The accompanying consolidated financial statements include the accounts of PSB and the Operating Partnership. All significant inter-company balances and transactions have been eliminated in the consolidated financial statements. | ||||||
Noncontrolling interests | ||||||
The Company’s noncontrolling interests are reported as a component of equity separate from the parent’s equity. Purchases or sales of equity interests that do not result in a change in control are accounted for as equity transactions. In addition, net income attributable to the noncontrolling interests is included in consolidated net income on the face of the income statement and, upon a gain or loss of control, the interests purchased or sold, as well as any interests retained, are recorded at fair value with any gain or loss recognized in earnings. At the end of each reporting period, the Company determines the amount of equity (book value of net assets) which is allocable to the noncontrolling interests based upon the ownership interest, and an adjustment is made to the noncontrolling interests, with a corresponding adjustment to paid-in capital, to reflect the noncontrolling interests’ equity interest in the Company. | ||||||
Use of estimates | ||||||
The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates. | ||||||
Allowance for doubtful accounts | ||||||
The Company monitors the collectability of its receivable balances including the deferred rent receivable on an ongoing basis. Based on these reviews, the Company maintains an allowance for doubtful accounts for estimated losses resulting from the possible inability of tenants to make contractual rent payments to the Company. A provision for doubtful accounts is recorded during each period. The allowance for doubtful accounts, which represents the cumulative allowances less write-offs of uncollectible rent, is netted against tenant and other receivables on the consolidated balance sheets. Tenant receivables are net of an allowance for uncollectible accounts totaling $400,000 at March 31, 2015 and December 31, 2014. Deferred rent receivable is net of an allowance for uncollectible accounts totaling $872,000 and $841,000 at March 31, 2015 and December 31, 2014, respectively. | ||||||
Financial instruments | ||||||
The methods and assumptions used to estimate the fair value of financial instruments are described below. The Company has estimated the fair value of financial instruments using available market information and appropriate valuation methodologies. Considerable judgment is required in interpreting market data to develop estimates of market value. Accordingly, estimated fair values are not necessarily indicative of the amounts that could be realized in current market exchanges. The Company determines the estimated fair value of financial assets and liabilities utilizing a hierarchy of valuation techniques based on whether the inputs to a fair value measurement are considered to be observable or unobservable in a marketplace. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions. This hierarchy requires the use of observable market data when available. The following is the fair value hierarchy: | ||||||
· | Level 1—quoted prices for identical instruments in active markets; | |||||
· | Level 2—quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and | |||||
· | Level 3—fair value measurements derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. | |||||
Financial assets that are exposed to credit risk consist primarily of cash and cash equivalents and receivables. The Company considers all highly liquid investments with a remaining maturity of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents, which consist primarily of money market investments, are only invested in entities with an investment grade rating. Receivables are comprised of balances due from a large number of customers. Balances that the Company expects to become uncollectible are reserved for or written off. Due to the short period to maturity of the Company’s cash and cash equivalents, accounts receivable, other assets and accrued and other liabilities, the carrying values as presented on the consolidated balance sheets are reasonable estimates of fair value. | ||||||
Carrying values of the Company’s mortgage note payable and unsecured credit facility approximate fair value. The characteristics of these financial instruments, market data and other comparative metrics utilized in determining these fair values are “Level 2” inputs. | ||||||
Real estate facilities | ||||||
Real estate facilities are recorded at cost. Costs related to the renovation or improvement of the properties are capitalized. Expenditures for repairs and maintenance are expensed as incurred. Expenditures that are expected to benefit a period greater than two years and exceed $2,000 are capitalized and depreciated over their estimated useful life. Buildings and improvements are depreciated using the straight-line method over their estimated useful lives, which generally range from five to 30 years. Transaction costs, which include tenant improvements and lease commissions, in excess of $1,000 for leases with terms greater than one year are capitalized and depreciated over their estimated useful lives. Transaction costs less than $1,000 or for leases of one year or less are expensed as incurred. | ||||||
Land and building held for development | ||||||
Property taxes, insurance, interest and costs essential to the development of property for its intended use are capitalized during the period of development. Upon classification of an asset as held for development, depreciation of the asset is ceased. | ||||||
Properties held for disposition | ||||||
An asset is classified as an asset held for disposition when it meets certain requirements, which include, among other criteria, the approval of the sale of the asset, the marketing of the asset for sale and the expectation by the Company that the sale will likely occur within the next 12 months. Upon classification of an asset as held for disposition, depreciation of the asset is ceased, and the net book value of the asset is included on the balance sheet as properties held for disposition. | ||||||
Intangible assets/liabilities | ||||||
Intangible assets and liabilities include above-market and below-market in-place lease values of acquired properties based on the present value (using an interest rate which the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining non-cancelable term of the lease. The capitalized above-market and below-market lease values (included in other assets and accrued liabilities in the accompanying consolidated balance sheets) are amortized to rental income over the remaining non-cancelable terms of the respective leases. | ||||||
As of March 31, 2015, the value of in-place leases resulted in net intangible assets of $2.2 million, net of $8.1 million of accumulated amortization with a weighted average amortization period of 8.2 years, and net intangible liabilities of $3.3 million, net of $7.5 million of accumulated amortization with a weighted average amortization period of 4.6 years. As of December 31, 2014, the value of in-place leases resulted in net intangible assets of $2.5 million, net of $7.8 million of accumulated amortization and net intangible liabilities of $3.9 million, net of $6.9 million of accumulated amortization. | ||||||
The Company recorded a net increase in rental income of $311,000 and $197,000 for the three months ended March 31, 2015 and 2014, respectively, due to the amortization of net intangible liabilities resulting from the above-market and below-market lease values. | ||||||
Evaluation of asset impairment | ||||||
The Company evaluates its assets used in operations for impairment by identifying indicators of impairment and by comparing the sum of the estimated undiscounted future cash flows for each asset to the asset’s carrying value. When indicators of impairment are present and the sum of the estimated undiscounted future cash flows is less than the carrying value of such asset, an impairment loss is recorded equal to the difference between the asset’s current carrying value and its value based on discounting its estimated future cash flows. In addition, the Company evaluates its assets held for disposition for impairment. Assets held for disposition are reported at the lower of their carrying value or fair value, less cost of disposition. At March 31, 2015, the Company did not consider any assets to be impaired. | ||||||
Stock compensation | ||||||
All share-based payments to employees, including grants of employee stock options, are recognized as stock compensation in the Company’s income statement based on their grant date fair values. See Note 11. | ||||||
Revenue and expense recognition | ||||||
The Company must meet four basic criteria before revenue can be recognized: persuasive evidence of an arrangement exists; the delivery has occurred or services have been rendered; the fee is fixed or determinable; and collectability is reasonably assured. All leases are classified as operating leases. Rental income is recognized on a straight-line basis over the terms of the leases. Straight-line rent is recognized for all tenants with contractual fixed increases in rent that are not included on the Company’s credit watch list. Deferred rent receivable represents rental revenue recognized on a straight-line basis in excess of billed rents. Reimbursements from tenants for real estate taxes and other recoverable operating expenses are recognized as rental income in the period the applicable costs are incurred. Property management fees are recognized in the period earned. | ||||||
Costs incurred in connection with leasing (primarily tenant improvements and lease commissions) are capitalized and amortized over the lease period. | ||||||
Gains from sales of real estate facilities | ||||||
The Company recognizes gains from sales of real estate facilities at the time of sale using the full accrual method, provided that various criteria related to the terms of the transactions and any subsequent involvement by the Company with the properties sold are met. If the criteria are not met, the Company defers the gains and recognizes them when the criteria are met or uses the installment or cost recovery methods as appropriate under the circumstances. | ||||||
General and administrative expenses | ||||||
General and administrative expenses include executive and other compensation, office expenses, professional fees, acquisition transaction costs, state income taxes and other such administrative items. | ||||||
Income taxes | ||||||
The Company has qualified and intends to continue to qualify as a REIT, as defined in Section 856 of the Internal Revenue Code of 1986, as amended. As a REIT, the Company is not subject to federal income tax to the extent that it distributes its REIT taxable income to its shareholders. A REIT must distribute at least 90% of its taxable income each year. In addition, REITs are subject to a number of organizational and operating requirements. The Company may be subject to certain state and local taxes on its income and property and to federal income and excise taxes on its undistributed taxable income. The Company believes it met all organization and operating requirements to maintain its REIT status during 2014 and intends to continue to meet such requirements for 2015. Accordingly, no provision for income taxes has been made in the accompanying consolidated financial statements. | ||||||
The Company can recognize a tax benefit only if it is “more likely than not” that a particular tax position will be sustained upon examination or audit. To the extent that the “more likely than not” standard has been satisfied, the benefit associated with a position is measured as the largest amount that is greater than 50% likely of being recognized upon settlement. As of March 31, 2015, the Company did not recognize any tax benefit for uncertain tax positions. | ||||||
Accounting for preferred equity issuance costs | ||||||
The Company records issuance costs as a reduction to paid-in capital on its balance sheet at the time the preferred securities are issued and reflects the carrying value of the preferred equity at the stated value. Such issuance costs are recorded as non-cash preferred equity distributions at the time the Company notifies the holders of preferred stock or units of its intent to redeem such shares or units. | ||||||
Net income per common share | ||||||
Per share amounts are computed using the number of weighted average common shares outstanding. “Diluted” weighted average common shares outstanding includes the dilutive effect of stock options and restricted stock units under the treasury stock method. “Basic” weighted average common shares outstanding excludes such effect. The Company's restricted stock units are participating securities and are included in the computation of basic and diluted weighted average common shares outstanding. The Company’s restricted stock unit holders are paid non-forfeitable dividends in excess of the expense recorded which results in a reduction in net income allocable to common shareholders and unit holders. Earnings per share has been calculated as follows (in thousands, except per share amounts): | ||||||
For The Three Months | ||||||
Ended March 31, | ||||||
2015 | 2014 | |||||
Net income allocable to common shareholders | $ | 19,771 | $ | 9,940 | ||
Weighted average common shares outstanding: | ||||||
Basic weighted average common shares outstanding | 26,925 | 26,863 | ||||
Net effect of dilutive stock compensation — based on | ||||||
treasury stock method using average market price | 99 | 98 | ||||
Diluted weighted average common shares outstanding | 27,024 | 26,961 | ||||
Net income per common share — Basic | $ | 0.73 | $ | 0.37 | ||
Net income per common share — Diluted | $ | 0.73 | $ | 0.37 | ||
Options to purchase 16,000 and 14,000 shares for the three months ended March 31, 2015 and 2014, respectively, were not included in the computation of diluted net income per share because such options were considered anti-dilutive. | ||||||
Segment reporting | ||||||
The Company views its operations as one segment. | ||||||
Reclassifications | ||||||
Certain reclassifications have been made to the consolidated financial statements for 2014 in order to conform to the 2015 presentation. | ||||||
Recently issued accounting standards | ||||||
In May, 2014, the FASB issued new accounting guidance which amended the existing accounting standards for revenue recognition. The new accounting guidance establishes principles for recognizing revenue upon the transfer of promised goods or services to customers, in an amount that reflects the expected consideration received in exchange for those goods or services. This guidance is currently effective for the Company’s fiscal year beginning January 1, 2017. Early adoption is not permitted. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. The Company is currently in the process of evaluating the impact of adoption of the new accounting guidance on its consolidated financial statements. | ||||||
Real_Estate_Facilities
Real Estate Facilities | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Real Estate Facilities [Abstract] | ||||||||||||
Real Estate Facilities | 3. Real estate facilities | |||||||||||
The activity in real estate facilities for the three months ended March 31, 2015 is as follows (in thousands): | ||||||||||||
Buildings and | Accumulated | |||||||||||
Land | Improvements | Depreciation | Total | |||||||||
Balances at December 31, 2014 | $ | 798,310 | $ | 2,210,525 | $ | -1,009,901 | $ | 1,998,934 | ||||
Capital expenditures, net | — | 10,962 | — | 10,962 | ||||||||
Disposals | — | -4,740 | 4,740 | — | ||||||||
Depreciation and amortization | — | — | -26,233 | -26,233 | ||||||||
Transfer to properties held for disposition | — | — | 44 | 44 | ||||||||
Balances at March 31, 2015 | $ | 798,310 | $ | 2,216,747 | $ | -1,031,350 | $ | 1,983,707 | ||||
The purchase price of acquired properties is recorded to land, buildings and improvements (including tenant improvements, unamortized lease commissions, acquired in-place lease values, and tenant relationships, if any) and intangible assets and liabilities associated with the value of above-market and below-market leases based on their respective estimated fair values. Acquisition-related costs are expensed as incurred. | ||||||||||||
In determining the fair value of the tangible assets of the acquired properties, management considers the value of the properties as if vacant as of the acquisition date. Management must make significant assumptions in determining the value of assets acquired and liabilities assumed. Using different assumptions in the recording of the purchase cost of the acquired properties would affect the timing of recognition of the related revenue and expenses. Amounts recorded to land are derived from comparable sales of land within the same region. Amounts recorded to buildings and improvements, tenant improvements and unamortized lease commissions are based on current market replacement costs and other market information. The amount recorded to acquired in-place leases is determined based on management’s assessment of current market conditions and the estimated lease-up periods for the respective spaces. | ||||||||||||
On February 27, 2015, as part of an eminent domain process with the Central Puget Sound Regional Transit Authority, the Company sold five buildings, totaling 82,000 square feet, at the Company’s Overlake Business Park located in Redmond, Washington, for $13.9 million, which resulted in a net gain of $4.8 million. | ||||||||||||
On February 13, 2015, the Company completed the sale of Milwaukie Business Park located in Milwaukie, Oregon, for net proceeds of $10.6 million, which resulted in a net gain of $7.6 million. The park consists of six multi-tenant flex buildings aggregating 102,000 square feet. | ||||||||||||
The five buildings at the Company’s Overlake Business Park, Milwaukie Business Park, as well as a 23,000 square foot park in Tempe, Arizona, had been classified as properties held for disposition as of December 31, 2014, while the 23,000 square foot asset in Tempe, Arizona continued to be classified as property held for disposition as of March 31, 2015. | ||||||||||||
The Company has a 125,000 square foot building located in Northern Virginia classified as land and building held for development. The Company has entered into a joint venture, in which it will maintain a 95.0% economic interest, with a real estate development company to pursue a multi-family development on the property. During the entitlement phase, all costs related to the pre-development are split evenly between the Company and its joint venture partner. As of March 31, 2015, the Company has received all required entitlements, which allow it to develop a multi-family building up to 450,000 square feet on the property. The property will be contributed to the joint venture upon commencement of construction, which is anticipated to occur in late 2015 or early 2016. The land and capitalized development costs were $19.5 million and $18.4 million at March 31, 2015 and December 31, 2014, respectively. For the three months ended March 31, 2015, the Company capitalized costs of $1.2 million related to this development, of which $260,000 were capitalized interest costs. | ||||||||||||
Leasing_Activity
Leasing Activity | 3 Months Ended | ||
Mar. 31, 2015 | |||
Leasing Activity [Abstract] | |||
Leasing Activity | 4. Leasing activity | ||
The Company leases space in its real estate facilities to tenants primarily under non-cancelable leases generally ranging from one to 10 years. Future minimum rental revenues, excluding recovery of operating expenses under these leases, are as follows as of March 31, 2015 (in thousands): | |||
2015 | $ | 195,901 | |
2016 | 204,638 | ||
2017 | 148,121 | ||
2018 | 103,655 | ||
2019 | 71,390 | ||
Thereafter | 123,335 | ||
Total | $ | 847,040 | |
In addition to minimum rental payments, certain tenants reimburse the Company for their pro rata share of specified operating expenses. Such reimbursements amounted to $20.1 million and $21.0 million for the three months ended March 31, 2015 and 2014, respectively. These amounts are included as rental income in the accompanying consolidated statements of income. | |||
Leases accounting for 3.3% of total leased square footage are subject to termination options, of which 1.3% of total leased square footage have termination options exercisable through December 31, 2015 (unaudited). In general, these leases provide for termination payments should the termination options be exercised. The future minimum rental revenues in the above table assume such options are not exercised. | |||
Bank_Loans
Bank Loans | 3 Months Ended |
Mar. 31, 2015 | |
Bank Loans [Abstract] | |
Bank Loans | 5. Bank loans |
The Company has a line of credit (the “Credit Facility”) with Wells Fargo Bank, National Association (“Wells Fargo”). The Credit Facility has a borrowing limit of $250.0 million and expires May 1, 2019. The rate of interest charged on borrowings is based on the London Interbank Offered Rate (“LIBOR”) plus 0.875% to LIBOR plus 1.70% depending on the Company’s credit ratings. Currently, the Company’s rate under the Credit Facility is LIBOR plus 0.925%. In addition, the Company is required to pay an annual facility fee ranging from 0.125% to 0.30% of the borrowing limit depending on the Company’s credit ratings (currently 0.15%). The Company had no balance outstanding on the Credit Facility at March 31, 2015 and December 31, 2014. The Company had $942,000 and $1.0 million of unamortized commitment fees as of March 31, 2015 and December 31, 2014, respectively. The Credit Facility requires the Company to meet certain covenants, with all of which the Company was in compliance as of March 31, 2015. Interest on outstanding borrowings is payable monthly. | |
Mortgage_Note_Payable
Mortgage Note Payable | 3 Months Ended |
Mar. 31, 2015 | |
Mortgage Note Payable [Abstract] | |
Mortgage Note Payable | 6. Mortgage note payable |
The Company has one mortgage note payable with a fixed interest rate of 5.45%, secured by 4.8 million square feet of commercial properties with a net book value of $425.9 million. The interest is payable monthly, and the mortgage note payable has a maturity date of December, 2016. The Company had $250.0 million outstanding on the mortgage note payable as of March 31, 2015 and December 31, 2014. | |
Noncontrolling_Interests
Noncontrolling Interests | 3 Months Ended |
Mar. 31, 2015 | |
Noncontrolling Interests [Abstract] | |
Noncontrolling Interests | 7. Noncontrolling interests |
As described in Note 2, the Company reports noncontrolling interests within equity in the consolidated financial statements, but separate from the Company’s shareholders’ equity. In addition, net income allocable to noncontrolling interests is shown as a reduction from net income in calculating net income allocable to common shareholders. | |
Common partnership units | |
The Company presents the accounts of PSB and the Operating Partnership on a consolidated basis. Ownership interests in the Operating Partnership that can be redeemed for common stock, other than PSB’s interest, are classified as noncontrolling interests — common units in the consolidated financial statements. Net income allocable to noncontrolling interests — common units consists of the common units’ share of the consolidated operating results after allocation to preferred units and shares. Beginning one year from the date of admission as a limited partner (common units) and subject to certain limitations described below, each limited partner other than PSB has the right to require the redemption of its partnership interest. | |
A limited partner (common units) that exercises its redemption right will receive cash from the Operating Partnership in an amount equal to the market value (as defined in the Operating Partnership Agreement) of the partnership interests redeemed. In lieu of the Operating Partnership redeeming the common units for cash, PSB, as general partner, has the right to elect to acquire the partnership interest directly from a limited partner exercising its redemption right, in exchange for cash in the amount specified above or by issuance of one share of PSB common stock for each unit of limited partnership interest redeemed. | |
A limited partner (common units) cannot exercise its redemption right if delivery of shares of PSB common stock would be prohibited under the applicable articles of incorporation, or if the general partner believes that there is a risk that delivery of shares of common stock would cause the general partner to no longer qualify as a REIT, would cause a violation of the applicable securities laws, or would result in the Operating Partnership no longer being treated as a partnership for federal income tax purposes. | |
At March 31, 2015, there were 7,305,355 common units owned by PS, which are accounted for as noncontrolling interests. Combined with PS’s existing common stock ownership, on a fully converted basis, PS has a combined ownership of 42.2% (or 14.5 million shares) of the Company’s common equity. | |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 8. Related party transactions |
The Operating Partnership manages industrial, office and retail facilities for PS. These facilities, all located in the United States, operate under the “Public Storage” or “PS Business Parks” names. The PS Business Parks name and logo are owned by PS and licensed to the Company under a non-exclusive, royalty-free license agreement. The license can be terminated by either party for any reason with six months written notice. | |
Under the property management contract with PS, the Operating Partnership is compensated based on a percentage of the gross revenues of the facilities managed. Under the supervision of the property owners, the Operating Partnership coordinates rental policies, rent collections, marketing activities, the purchase of equipment and supplies, maintenance activities, and the selection and engagement of vendors, suppliers and independent contractors. In addition, the Operating Partnership assists and advises the property owners in establishing policies for the hire, discharge and supervision of employees for the operation of these facilities, including property managers and leasing, billing and maintenance personnel. | |
The property management contract with PS is for a seven-year term with the agreement automatically extending for an additional one-year period upon each one-year anniversary of its commencement (unless cancelled by either party). Either party can give notice of its intent to cancel the agreement upon expiration of its current term. Management fee revenues under this contract were $147,000 and $166,000 for the three months ended March 31, 2015 and 2014, respectively. | |
PS also provides property management services for the self-storage component of two assets owned by the Company. These self-storage facilities, located in Palm Beach County, Florida, operate under the “Public Storage” name. | |
Under the property management contract, PS is compensated based on a percentage of the gross revenues of the facilities managed. Under the supervision of the Company, PS coordinates rental policies, rent collections, marketing activities, the purchase of equipment and supplies, maintenance activities, and the selection and engagement of vendors, suppliers and independent contractors. In addition, PS is responsible for establishing the policies for the hire, discharge and supervision of employees for the operation of these facilities, including on-site managers, assistant managers and associate managers. | |
Either the Company or PS can cancel the property management contract upon 60 days’ notice. Management fee expenses under the contract were $19,000 and $16,000 for the three months ended March 31, 2015 and 2014, respectively. | |
Pursuant to a cost sharing and administrative services agreement, the Company shares costs with PS for certain administrative services and rental of corporate office space, which are allocated to PS in accordance with a methodology intended to fairly allocate those costs. These costs totaled $117,000 and $108,000 for the three months ended March 31, 2015 and 2014, respectively. | |
The Company had net amounts due to PS of $86,000 at March 31, 2015 and due from PS of $166,000 at December 31, 2014, respectively, for these contracts, as well as for certain operating expenses paid by the Company on behalf of PS. | |
Shareholders_Equity
Shareholders' Equity | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Shareholders' Equity [Abstract] | ||||||||||||
Shareholders' Equity | 9. Shareholders’ equity | |||||||||||
Preferred stock | ||||||||||||
As of March 31, 2015 and December 31, 2014, the Company had the following series of preferred stock outstanding: | ||||||||||||
Earliest Potential | Dividend | Shares | Amount | |||||||||
Series | Issuance Date | Redemption Date | Rate | Outstanding | (in thousands) | |||||||
Series R | October, 2010 | October, 2015 | 6.875% | 3,000 | $ | 75,000 | ||||||
Series S | January, 2012 | January, 2017 | 6.450% | 9,200 | 230,000 | |||||||
Series T | May, 2012 | May, 2017 | 6.000% | 14,000 | 350,000 | |||||||
Series U | September, 2012 | September, 2017 | 5.750% | 9,200 | 230,000 | |||||||
Series V | March, 2013 | March, 2018 | 5.700% | 4,400 | 110,000 | |||||||
Total | 39,800 | $ | 995,000 | |||||||||
The Company paid $15.1 million in distributions to its preferred shareholders for each of the three months ended March 31, 2015 and 2014. | ||||||||||||
Holders of the Company’s preferred stock will not be entitled to vote on most matters, except under certain conditions. In the event of a cumulative arrearage equal to six quarterly dividends, the holders of the preferred stock will have the right to elect two additional members to serve on the Company’s Board of Directors until all events of default have been cured. At March 31, 2015, there were no dividends in arrears. | ||||||||||||
Except under certain conditions relating to the Company’s qualification as a REIT, the preferred stock is not redeemable prior to the previously noted redemption dates. On or after the respective redemption dates, the respective series of preferred stock will be redeemable, at the option of the Company, in whole or in part, at $25.00 per depositary share, plus any accrued and unpaid dividends. The Company had $31.8 million of deferred costs in connection with the issuance of preferred stock as of March 31, 2015 and December 31, 2014, which the Company will report as additional non-cash distributions upon notice of its intent to redeem such shares. | ||||||||||||
Common stock | ||||||||||||
No shares of common stock were repurchased under the board approved common stock repurchase program during either of the three months ended March 31, 2015 and 2014. | ||||||||||||
The Company paid $13.5 million ($0.50 per common share) and $13.4 million ($0.50 per common share) in distributions to its common shareholders for the three months ended March 31, 2015 and 2014, respectively. | ||||||||||||
Equity stock | ||||||||||||
In addition to common and preferred stock, the Company is authorized to issue 100.0 million shares of Equity Stock. The Articles of Incorporation provide that Equity Stock may be issued from time to time in one or more series and give the Board of Directors broad authority to fix the dividend and distribution rights, conversion and voting rights, redemption provisions and liquidation rights of each series of Equity Stock. | ||||||||||||
Commitments_And_Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 10. Commitments and contingencies |
The Company currently is neither subject to any other material litigation nor, to management’s knowledge, is any material litigation currently threatened against the Company other than routine litigation and administrative proceedings arising in the ordinary course of business. | |
Stock_Compensation
Stock Compensation | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Stock Compensation [Abstract] | ||||||||||
Stock Compensation | 11. Stock compensation | |||||||||
PSB has a 2003 Stock Option and Incentive Plan (the “2003 Plan”) and a 2012 Equity and Performance-Based Incentive Compensation Plan (the “2012 Plan”) covering 1.5 million and 1.0 million shares of PSB’s common stock, respectively. Under the 2003 Plan and 2012 Plan, PSB has granted non-qualified options to certain directors, officers and key employees to purchase shares of PSB’s common stock at a price not less than the fair market value of the common stock at the date of grant. Additionally, under the 2003 Plan and 2012 Plan, PSB has granted restricted shares of common stock to certain directors and restricted stock units to officers and key employees. | ||||||||||
No options were granted for the three months ended March 31, 2015 and 2014. | ||||||||||
The weighted average grant date fair value of restricted stock unit granted during the three months ended March 31, 2015 was $83.47. The Company calculated the fair value of each restricted stock unit grant using the market value on the date of grant. No restricted stock units were granted for the three months ended March 31, 2014. | ||||||||||
At March 31, 2015, there was a combined total of 856,000 options and restricted stock units authorized to be granted. | ||||||||||
Information with respect to outstanding options and nonvested restricted stock units granted under the 2003 Plan and 2012 Plan is as follows: | ||||||||||
Weighted | Aggregate | |||||||||
Weighted | Average | Intrinsic | ||||||||
Number of | Average | Remaining | Value | |||||||
Options: | Options | Exercise Price | Contract Life | (in thousands) | ||||||
Outstanding at December 31, 2014 | 341,852 | $ | 57.11 | |||||||
Granted | — | $ | — | |||||||
Exercised | -15,500 | $ | 50.63 | |||||||
Forfeited | — | $ | — | |||||||
Outstanding at March 31, 2015 | 326,352 | $ | 57.42 | 5.29 Years | $ | 8,361 | ||||
Exercisable at March 31, 2015 | 261,499 | $ | 53.77 | 4.67 Years | $ | 7,654 | ||||
Weighted | ||||||||||
Number of | Average Grant | |||||||||
Restricted Stock Units: | Units | Date Fair Value | ||||||||
Nonvested at December 31, 2014 | 35,170 | $ | 65.62 | |||||||
Granted | 66,506 | $ | 83.47 | |||||||
Vested | -21,184 | $ | 76.73 | |||||||
Forfeited | -2,230 | $ | 69.87 | |||||||
Nonvested at March 31, 2015 | 78,262 | $ | 77.66 | |||||||
Effective March, 2014, the Company entered into a performance-based restricted stock unit program, the Senior Management Long-Term Equity Incentive Program for 2014-2017 (“2014 LTEIP”), with certain employees of the Company. Under the 2014 LTEIP, the Company established three levels of targeted restricted stock unit awards for certain employees, which would be earned only if the Company achieved one of three defined targets during 2014 to 2017. Under the 2014 LTEIP there is an annual award following the end of each of the four years in the program, with the award subject to and based on the achievement of one of three defined targets during the previous year as well as an award based on achieving one of three defined targets during the cumulative four-year period 2014-2017. In the event the minimum defined target is not achieved for an annual award, the shares allocated to be awarded for such year are added to the shares that may be received if the four-year target is achieved. All restricted stock unit awards under the 2014 LTEIP vest in four equal annual installments beginning from the date of award. Up to 85,542 restricted stock units would be granted for each of the four years assuming achievement was met and up to 85,542 restricted stock units would be granted for the cumulative four-year period assuming achievement was met. Compensation expense is recognized based on the shares expected to be awarded based on the target level that is expected to be achieved. Net compensation expense of $2.1 million and $858,000 related to the 2014 LTEIP was recognized during the three months ended March 31, 2015 and 2014, respectively. | ||||||||||
The 2014 LTEIP targets for 2014 were achieved. As such, 66,506 restricted stock units were granted during the three months ended March 31, 2015 at a weighted average grant date fair value of $83.47. | ||||||||||
Included in the Company’s consolidated statements of income for the three months ended March 31, 2015 and 2014, was $128,000 and $122,000, respectively, in net compensation expense related to stock options. Excluding the 2014 LTEIP amortization of $2.1 million and $858,000, respectively, net compensation expense of $107,000 and $175,000 related to restricted stock units was recognized during the three months ended March 31, 2015 and 2014, respectively. During the first quarter of 2014, the Company recognized one month of compensation expense related to the 2014 LTEIP based on the timing of the plan’s implementation, while the first quarter of 2015 includes a full quarter of expense. | ||||||||||
As of March 31, 2015, there was $409,000 of unamortized compensation expense related to stock options expected to be recognized over a weighted average period of 3.1 years. As of March 31, 2015, there was $26.1 million (includes $24.6 million from the 2014 LTEIP) of unamortized compensation expense related to restricted stock units expected to be recognized over a weighted average period of 4.9 years. | ||||||||||
Cash received from 15,500 stock options exercised during the three months ended March 31, 2015 was $785,000. Cash received from 40,973 stock options exercised during the three months ended March 31, 2014 was $2.0 million. The aggregate intrinsic value of the stock options exercised was $439,000 and $1.4 million during the three months ended March 31, 2015 and 2014, respectively. | ||||||||||
During the three months ended March 31, 2015, 21,184 restricted stock units vested (16,634 related to the 2014 LTEIP); in settlement of these units, 13,224 shares were issued (10,495 related to the 2014 LTEIP), net of shares applied to payroll taxes. The aggregate fair value of the shares vested for the three months ended March 31, 2015 was $1.7 million ($1.3 million related to the 2014 LTEIP). During the three months ended March 31, 2014, 8,430 restricted stock units vested; in settlement of these units, 5,341 shares were issued, net of shares applied to payroll taxes. The aggregate fair value of the shares vested for the three months ended March 31, 2014 was $708,000. | ||||||||||
Subsequent to March 31, 2015, the shareholders of the Company approved the issuance of up to 130,000 shares of common stock under the Retirement Plan for Non-Employee Directors (the “Director Plan”). Under the Director Plan, the Company grants 1,000 shares of common stock for each year served as a director up to a maximum of 8,000 shares issued upon retirement. The Company recognizes compensation expense over the requisite service period. As a result, included in the Company’s consolidated statements of income was $78,000 and $75,000 in compensation expense for the three months ended March 31, 2015 and 2014, respectively. As of March 31, 2015 and 2014, there was $1.5 million and $1.4 million, respectively, of unamortized compensation expense related to these shares. No shares were issued during the three months ended March 31, 2015 and 2014. | ||||||||||
Summary_Of_Significant_Account1
Summary Of Significant Accounting Policies (Policy) | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Summary Of Significant Accounting Policies [Abstract] | ||||||
Basis Of Presentation | Basis of presentation | |||||
The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ended December 31, 2015. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. | ||||||
The accompanying consolidated financial statements include the accounts of PSB and the Operating Partnership. All significant inter-company balances and transactions have been eliminated in the consolidated financial statements. | ||||||
Noncontrolling Interests | Noncontrolling interests | |||||
The Company’s noncontrolling interests are reported as a component of equity separate from the parent’s equity. Purchases or sales of equity interests that do not result in a change in control are accounted for as equity transactions. In addition, net income attributable to the noncontrolling interests is included in consolidated net income on the face of the income statement and, upon a gain or loss of control, the interests purchased or sold, as well as any interests retained, are recorded at fair value with any gain or loss recognized in earnings. At the end of each reporting period, the Company determines the amount of equity (book value of net assets) which is allocable to the noncontrolling interests based upon the ownership interest, and an adjustment is made to the noncontrolling interests, with a corresponding adjustment to paid-in capital, to reflect the noncontrolling interests’ equity interest in the Company. | ||||||
Use Of Estimates | ||||||
Use of estimates | ||||||
The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates. | ||||||
Allowance For Doubtful Accounts | Allowance for doubtful accounts | |||||
The Company monitors the collectability of its receivable balances including the deferred rent receivable on an ongoing basis. Based on these reviews, the Company maintains an allowance for doubtful accounts for estimated losses resulting from the possible inability of tenants to make contractual rent payments to the Company. A provision for doubtful accounts is recorded during each period. The allowance for doubtful accounts, which represents the cumulative allowances less write-offs of uncollectible rent, is netted against tenant and other receivables on the consolidated balance sheets. Tenant receivables are net of an allowance for uncollectible accounts totaling $400,000 at March 31, 2015 and December 31, 2014. Deferred rent receivable is net of an allowance for uncollectible accounts totaling $872,000 and $841,000 at March 31, 2015 and December 31, 2014, respectively. | ||||||
Financial Instruments | Financial instruments | |||||
The methods and assumptions used to estimate the fair value of financial instruments are described below. The Company has estimated the fair value of financial instruments using available market information and appropriate valuation methodologies. Considerable judgment is required in interpreting market data to develop estimates of market value. Accordingly, estimated fair values are not necessarily indicative of the amounts that could be realized in current market exchanges. The Company determines the estimated fair value of financial assets and liabilities utilizing a hierarchy of valuation techniques based on whether the inputs to a fair value measurement are considered to be observable or unobservable in a marketplace. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions. This hierarchy requires the use of observable market data when available. The following is the fair value hierarchy: | ||||||
· | Level 1—quoted prices for identical instruments in active markets; | |||||
· | Level 2—quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and | |||||
· | Level 3—fair value measurements derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. | |||||
Financial assets that are exposed to credit risk consist primarily of cash and cash equivalents and receivables. The Company considers all highly liquid investments with a remaining maturity of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents, which consist primarily of money market investments, are only invested in entities with an investment grade rating. Receivables are comprised of balances due from a large number of customers. Balances that the Company expects to become uncollectible are reserved for or written off. Due to the short period to maturity of the Company’s cash and cash equivalents, accounts receivable, other assets and accrued and other liabilities, the carrying values as presented on the consolidated balance sheets are reasonable estimates of fair value. | ||||||
Carrying values of the Company’s mortgage note payable and unsecured credit facility approximate fair value. The characteristics of these financial instruments, market data and other comparative metrics utilized in determining these fair values are “Level 2” inputs. | ||||||
Real Estate Facilities | Real estate facilities | |||||
Real estate facilities are recorded at cost. Costs related to the renovation or improvement of the properties are capitalized. Expenditures for repairs and maintenance are expensed as incurred. Expenditures that are expected to benefit a period greater than two years and exceed $2,000 are capitalized and depreciated over their estimated useful life. Buildings and improvements are depreciated using the straight-line method over their estimated useful lives, which generally range from five to 30 years. Transaction costs, which include tenant improvements and lease commissions, in excess of $1,000 for leases with terms greater than one year are capitalized and depreciated over their estimated useful lives. Transaction costs less than $1,000 or for leases of one year or less are expensed as incurred. | ||||||
Land And Building Held For Development | Land and building held for development | |||||
Property taxes, insurance, interest and costs essential to the development of property for its intended use are capitalized during the period of development. Upon classification of an asset as held for development, depreciation of the asset is ceased. | ||||||
Properties Held For Disposition | Properties held for disposition | |||||
An asset is classified as an asset held for disposition when it meets certain requirements, which include, among other criteria, the approval of the sale of the asset, the marketing of the asset for sale and the expectation by the Company that the sale will likely occur within the next 12 months. Upon classification of an asset as held for disposition, depreciation of the asset is ceased, and the net book value of the asset is included on the balance sheet as properties held for disposition. | ||||||
Intangible Assets/Liabilities | Intangible assets/liabilities | |||||
Intangible assets and liabilities include above-market and below-market in-place lease values of acquired properties based on the present value (using an interest rate which the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining non-cancelable term of the lease. The capitalized above-market and below-market lease values (included in other assets and accrued liabilities in the accompanying consolidated balance sheets) are amortized to rental income over the remaining non-cancelable terms of the respective leases. | ||||||
As of March 31, 2015, the value of in-place leases resulted in net intangible assets of $2.2 million, net of $8.1 million of accumulated amortization with a weighted average amortization period of 8.2 years, and net intangible liabilities of $3.3 million, net of $7.5 million of accumulated amortization with a weighted average amortization period of 4.6 years. As of December 31, 2014, the value of in-place leases resulted in net intangible assets of $2.5 million, net of $7.8 million of accumulated amortization and net intangible liabilities of $3.9 million, net of $6.9 million of accumulated amortization. | ||||||
The Company recorded a net increase in rental income of $311,000 and $197,000 for the three months ended March 31, 2015 and 2014, respectively, due to the amortization of net intangible liabilities resulting from the above-market and below-market lease values. | ||||||
Evaluation Of Asset Impairment | Evaluation of asset impairment | |||||
The Company evaluates its assets used in operations for impairment by identifying indicators of impairment and by comparing the sum of the estimated undiscounted future cash flows for each asset to the asset’s carrying value. When indicators of impairment are present and the sum of the estimated undiscounted future cash flows is less than the carrying value of such asset, an impairment loss is recorded equal to the difference between the asset’s current carrying value and its value based on discounting its estimated future cash flows. In addition, the Company evaluates its assets held for disposition for impairment. Assets held for disposition are reported at the lower of their carrying value or fair value, less cost of disposition. At March 31, 2015, the Company did not consider any assets to be impaired. | ||||||
Stock Compensation | Stock compensation | |||||
All share-based payments to employees, including grants of employee stock options, are recognized as stock compensation in the Company’s income statement based on their grant date fair values. See Note 11. | ||||||
Revenue And Expense Recognition | Revenue and expense recognition | |||||
The Company must meet four basic criteria before revenue can be recognized: persuasive evidence of an arrangement exists; the delivery has occurred or services have been rendered; the fee is fixed or determinable; and collectability is reasonably assured. All leases are classified as operating leases. Rental income is recognized on a straight-line basis over the terms of the leases. Straight-line rent is recognized for all tenants with contractual fixed increases in rent that are not included on the Company’s credit watch list. Deferred rent receivable represents rental revenue recognized on a straight-line basis in excess of billed rents. Reimbursements from tenants for real estate taxes and other recoverable operating expenses are recognized as rental income in the period the applicable costs are incurred. Property management fees are recognized in the period earned. | ||||||
Costs incurred in connection with leasing (primarily tenant improvements and lease commissions) are capitalized and amortized over the lease period. | ||||||
Gains From Sales Of Real Estate Facilities | Gains from sales of real estate facilities | |||||
The Company recognizes gains from sales of real estate facilities at the time of sale using the full accrual method, provided that various criteria related to the terms of the transactions and any subsequent involvement by the Company with the properties sold are met. If the criteria are not met, the Company defers the gains and recognizes them when the criteria are met or uses the installment or cost recovery methods as appropriate under the circumstances. | ||||||
General And Administrative Expenses | General and administrative expenses | |||||
General and administrative expenses include executive and other compensation, office expenses, professional fees, acquisition transaction costs, state income taxes and other such administrative items. | ||||||
Income Taxes | Income taxes | |||||
The Company has qualified and intends to continue to qualify as a REIT, as defined in Section 856 of the Internal Revenue Code of 1986, as amended. As a REIT, the Company is not subject to federal income tax to the extent that it distributes its REIT taxable income to its shareholders. A REIT must distribute at least 90% of its taxable income each year. In addition, REITs are subject to a number of organizational and operating requirements. The Company may be subject to certain state and local taxes on its income and property and to federal income and excise taxes on its undistributed taxable income. The Company believes it met all organization and operating requirements to maintain its REIT status during 2014 and intends to continue to meet such requirements for 2015. Accordingly, no provision for income taxes has been made in the accompanying consolidated financial statements. | ||||||
The Company can recognize a tax benefit only if it is “more likely than not” that a particular tax position will be sustained upon examination or audit. To the extent that the “more likely than not” standard has been satisfied, the benefit associated with a position is measured as the largest amount that is greater than 50% likely of being recognized upon settlement. As of March 31, 2015, the Company did not recognize any tax benefit for uncertain tax positions. | ||||||
Accounting For Preferred Equity Issuance Costs | ||||||
Accounting for preferred equity issuance costs | ||||||
The Company records issuance costs as a reduction to paid-in capital on its balance sheet at the time the preferred securities are issued and reflects the carrying value of the preferred equity at the stated value. Such issuance costs are recorded as non-cash preferred equity distributions at the time the Company notifies the holders of preferred stock or units of its intent to redeem such shares or units. | ||||||
Net Income Per Common Share | ||||||
Net income per common share | ||||||
Per share amounts are computed using the number of weighted average common shares outstanding. “Diluted” weighted average common shares outstanding includes the dilutive effect of stock options and restricted stock units under the treasury stock method. “Basic” weighted average common shares outstanding excludes such effect. The Company's restricted stock units are participating securities and are included in the computation of basic and diluted weighted average common shares outstanding. The Company’s restricted stock unit holders are paid non-forfeitable dividends in excess of the expense recorded which results in a reduction in net income allocable to common shareholders and unit holders. Earnings per share has been calculated as follows (in thousands, except per share amounts): | ||||||
For The Three Months | ||||||
Ended March 31, | ||||||
2015 | 2014 | |||||
Net income allocable to common shareholders | $ | 19,771 | $ | 9,940 | ||
Weighted average common shares outstanding: | ||||||
Basic weighted average common shares outstanding | 26,925 | 26,863 | ||||
Net effect of dilutive stock compensation — based on | ||||||
treasury stock method using average market price | 99 | 98 | ||||
Diluted weighted average common shares outstanding | 27,024 | 26,961 | ||||
Net income per common share — Basic | $ | 0.73 | $ | 0.37 | ||
Net income per common share — Diluted | $ | 0.73 | $ | 0.37 | ||
Options to purchase 16,000 and 14,000 shares for the three months ended March 31, 2015 and 2014, respectively, were not included in the computation of diluted net income per share because such options were considered anti-dilutive. | ||||||
Segment Reporting | Segment reporting | |||||
The Company views its operations as one segment. | ||||||
Reclassifications | Reclassifications | |||||
Certain reclassifications have been made to the consolidated financial statements for 2014 in order to conform to the 2015 presentation. | ||||||
Recently Issued Accounting Standards | Recently issued accounting standards | |||||
In May, 2014, the FASB issued new accounting guidance which amended the existing accounting standards for revenue recognition. The new accounting guidance establishes principles for recognizing revenue upon the transfer of promised goods or services to customers, in an amount that reflects the expected consideration received in exchange for those goods or services. This guidance is currently effective for the Company’s fiscal year beginning January 1, 2017. Early adoption is not permitted. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. The Company is currently in the process of evaluating the impact of adoption of the new accounting guidance on its consolidated financial statements. | ||||||
Summary_Of_Significant_Account2
Summary Of Significant Accounting Policies (Tables) | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Summary Of Significant Accounting Policies [Abstract] | ||||||
Calculation Of Earnings Per Share | ||||||
For The Three Months | ||||||
Ended March 31, | ||||||
2015 | 2014 | |||||
Net income allocable to common shareholders | $ | 19,771 | $ | 9,940 | ||
Weighted average common shares outstanding: | ||||||
Basic weighted average common shares outstanding | 26,925 | 26,863 | ||||
Net effect of dilutive stock compensation — based on | ||||||
treasury stock method using average market price | 99 | 98 | ||||
Diluted weighted average common shares outstanding | 27,024 | 26,961 | ||||
Net income per common share — Basic | $ | 0.73 | $ | 0.37 | ||
Net income per common share — Diluted | $ | 0.73 | $ | 0.37 | ||
Real_Estate_Facilities_Tables
Real Estate Facilities (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Real Estate Facilities [Abstract] | ||||||||||||
Activity In Real Estate Facilities | ||||||||||||
Buildings and | Accumulated | |||||||||||
Land | Improvements | Depreciation | Total | |||||||||
Balances at December 31, 2014 | $ | 798,310 | $ | 2,210,525 | $ | -1,009,901 | $ | 1,998,934 | ||||
Capital expenditures, net | — | 10,962 | — | 10,962 | ||||||||
Disposals | — | -4,740 | 4,740 | — | ||||||||
Depreciation and amortization | — | — | -26,233 | -26,233 | ||||||||
Transfer to properties held for disposition | — | — | 44 | 44 | ||||||||
Balances at March 31, 2015 | $ | 798,310 | $ | 2,216,747 | $ | -1,031,350 | $ | 1,983,707 | ||||
Leasing_Activity_Tables
Leasing Activity (Tables) | 3 Months Ended | ||
Mar. 31, 2015 | |||
Leasing Activity [Abstract] | |||
Summary Of Future Minimum Rental Revenues Excluding Recovery Of Operating Expenses | |||
2015 | $ | 195,901 | |
2016 | 204,638 | ||
2017 | 148,121 | ||
2018 | 103,655 | ||
2019 | 71,390 | ||
Thereafter | 123,335 | ||
Total | $ | 847,040 | |
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Shareholders' Equity [Abstract] | ||||||||||||
Schedule Of Preferred Stock Outstanding | ||||||||||||
Earliest Potential | Dividend | Shares | Amount | |||||||||
Series | Issuance Date | Redemption Date | Rate | Outstanding | (in thousands) | |||||||
Series R | October, 2010 | October, 2015 | 6.875% | 3,000 | $ | 75,000 | ||||||
Series S | January, 2012 | January, 2017 | 6.450% | 9,200 | 230,000 | |||||||
Series T | May, 2012 | May, 2017 | 6.000% | 14,000 | 350,000 | |||||||
Series U | September, 2012 | September, 2017 | 5.750% | 9,200 | 230,000 | |||||||
Series V | March, 2013 | March, 2018 | 5.700% | 4,400 | 110,000 | |||||||
Total | 39,800 | $ | 995,000 | |||||||||
Stock_Compensation_Tables
Stock Compensation (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Stock Compensation [Abstract] | ||||||||||
Summary Of Stock Options Activity | ||||||||||
Weighted | Aggregate | |||||||||
Weighted | Average | Intrinsic | ||||||||
Number of | Average | Remaining | Value | |||||||
Options: | Options | Exercise Price | Contract Life | (in thousands) | ||||||
Outstanding at December 31, 2014 | 341,852 | $ | 57.11 | |||||||
Granted | — | $ | — | |||||||
Exercised | -15,500 | $ | 50.63 | |||||||
Forfeited | — | $ | — | |||||||
Outstanding at March 31, 2015 | 326,352 | $ | 57.42 | 5.29 Years | $ | 8,361 | ||||
Exercisable at March 31, 2015 | 261,499 | $ | 53.77 | 4.67 Years | $ | 7,654 | ||||
Nonvested Restricted Stock Units | ||||||||||
Weighted | ||||||||||
Number of | Average Grant | |||||||||
Restricted Stock Units: | Units | Date Fair Value | ||||||||
Nonvested at December 31, 2014 | 35,170 | $ | 65.62 | |||||||
Granted | 66,506 | $ | 83.47 | |||||||
Vested | -21,184 | $ | 76.73 | |||||||
Forfeited | -2,230 | $ | 69.87 | |||||||
Nonvested at March 31, 2015 | 78,262 | $ | 77.66 | |||||||
Organization_And_Description_O1
Organization And Description Of Business (Details) | Mar. 31, 2015 |
In Millions, unless otherwise specified | sqft |
state | |
Organization And Description Of Business [Abstract] | |
The Company's ownership percentage of the limited partnership | 77.80% |
Affiliate's percent ownership of the Company's common equity | 42.20% |
Shares owned by Public Storage | 14.5 |
Owned and operated properties (in rentable square feet) | 28,400,000 |
Number of states with rentable commercial space | 6 |
Managed properties (in rentable square feet) | 872,000 |
Summary_Of_Significant_Account3
Summary Of Significant Accounting Policies (Narrative) (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
segment | |||
Property, Plant and Equipment [Line Items] | |||
Allowance for uncollectible accounts | $400,000 | $400,000 | |
Allowance for uncollectable deferred rent receivables | 872,000 | 841,000 | |
Cash and cash equivalents maximum benchmark (in months) | 3 months | ||
Minimum expenditure costs subject to capitalization and depreciation | 2,000 | ||
Minimum expected future benefit period on expenditures cost to be capitalized and depreciated (in years) | 2 years | ||
Minimum transaction cost subject to capitalization and depreciation | 1,000 | ||
Minimum expected future benefit period on transaction cost to be capitalized and depreciated (in years) | 1 year | ||
Maximum transaction costs subject to being expensed as incurred | 1,000 | ||
Maximum length of lease period for transaction costs to be expensed as incurred | 1 year | ||
Length of time criteria for expected sale of assets to be classified as properties held for disposition | 12 months | ||
Increase (decrease) in rental income due to amortization of net intangible assets or liabilities | 311,000 | 197,000 | |
Value of in-place leases resulting in a net intangible asset | 2,200,000 | 2,500,000 | |
Accumulated amortization - intangible assets | 8,100,000 | 7,800,000 | |
Intangible assets, weighted average amortization period (in years) | 8 years 2 months 12 days | ||
Value of in-place leases resulting in a net intangible liability | 3,300,000 | 3,900,000 | |
Accumulated amortization - intangible liabilities | 7,500,000 | 6,900,000 | |
Intangible liability, weighted average amortization period (in years) | 4 years 7 months 6 days | ||
Distribution of taxable income requirement | 90.00% | ||
Income tax provision | $0 | ||
Odds of a particular tax position will be sustained upon examination or audit | 50.00% | ||
Anti-dilutive share options to purchase | 16,000 | 14,000 | |
Number of operating segments | 1 | ||
Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life (in years) | 30 years | ||
Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life (in years) | 5 years |
Summary_Of_Significant_Account4
Summary Of Significant Accounting Policies (Calculation Of Earnings Per Share) (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Summary Of Significant Accounting Policies [Abstract] | ||
Net income allocable to common shareholders | $19,771 | $9,940 |
Basic weighted average common shares outstanding | 26,925 | 26,863 |
Net effect of dilutive stock compensation - based on treasury stock method using average market price | 99 | 98 |
Diluted weighted average common shares outstanding | 27,024 | 26,961 |
Net income per common share - Basic | $0.73 | $0.37 |
Net income per common share - Diluted | $0.73 | $0.37 |
Real_Estate_Facilities_Narrati
Real Estate Facilities (Narrative) (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||
Mar. 31, 2015 | Feb. 27, 2015 | Feb. 13, 2015 | Dec. 31, 2014 | |
Real Estate Facilities [Line Items] | ||||
Proceeds from the sale of real estate facility | $24,490,000 | |||
Land and building held for development | 25,614,000 | 24,442,000 | ||
Northern Virginia Redeveloped Land [Member] | ||||
Real Estate Facilities [Line Items] | ||||
Area of redevelopment of real estate property | 125,000 | |||
Economic interest in joint venture, percentage | 95.00% | |||
Land and building held for development | 19,500,000 | 18,400,000 | ||
Capitalized cost | 1,200,000 | |||
Captialized interest expense | 260,000 | |||
Overlake [Member] | ||||
Real Estate Facilities [Line Items] | ||||
Acquisition/disposal date of real estate | 27-Feb-15 | |||
Leasable space (in square feet) | 82,000 | |||
Proceeds from the sale of real estate facility | 13,900,000 | |||
Number of buildings sold | 5 | |||
Number of properties held for disposition | 5 | |||
Gain on sale of real estate facilities | 4,800,000 | |||
Milwaukie Business Park [Member] | ||||
Real Estate Facilities [Line Items] | ||||
Acquisition/disposal date of real estate | 13-Feb-15 | |||
Leasable space (in square feet) | 102,000 | |||
Proceeds from the sale of real estate facility | 10,600,000 | |||
Number of buildings sold | 6 | |||
Gain on sale of real estate facilities | $7,600,000 | |||
Tempe Business Park [Member] | ||||
Real Estate Facilities [Line Items] | ||||
Leasable space (in square feet) | 23,000 | |||
Number of properties held for disposition | 1 | 1 | ||
Square footage of property held for disposition | 23,000 | 23,000 | ||
Maximum [Member] | Northern Virginia Redeveloped Land [Member] | ||||
Real Estate Facilities [Line Items] | ||||
Leasable space (in square feet) | 450,000 |
Real_Estate_Facilities_Activit
Real Estate Facilities (Activity In Real Estate Facilities) (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | |||
Balances | $1,998,934 | ||
Capital expenditures, net | 10,962 | ||
Depreciation and amortization | -26,233 | -28,441 | |
Transfer to properties held for disposition | 44 | ||
Balances | 1,983,707 | ||
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Balances | 798,310 | ||
Balances | 798,310 | 798,310 | |
Building And Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Balances | 2,210,525 | ||
Capital expenditures, net | 10,962 | ||
Disposals | -4,740 | ||
Balances | 2,216,747 | ||
Accumulated Depreciation [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Balances | -1,009,901 | ||
Disposals | 4,740 | ||
Depreciation and amortization | -26,233 | ||
Transfer to properties held for disposition | 44 | ||
Balances | ($1,031,350) |
Leasing_Activity_Narrative_Det
Leasing Activity (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Tenant reimbursements | $20.10 | $21 |
Percentage of leased asset subjected to termination options | 3.30% | |
Percentage of leased asset exercisable in period | 1.30% | |
Maximum [Member] | ||
Non-cancelable leases term (in years) | 10 years | |
Minimum [Member] | ||
Non-cancelable leases term (in years) | 1 year |
Leasing_Activity_Summary_Of_Fu
Leasing Activity (Summary Of Future Minimum Rental Revenues Excluding Recovery Of Operating Expenses) (Details) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Leasing Activity [Abstract] | |
2015 | $195,901 |
2016 | 204,638 |
2017 | 148,121 |
2018 | 103,655 |
2019 | 71,390 |
Thereafter | 123,335 |
Total | $847,040 |
Bank_Loans_Details
Bank Loans (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Line of Credit Facility [Line Items] | ||
Line of credit, expiration date | 1-May-19 | |
Credit Facility, borrowing limit | $250,000,000 | |
Credit Facility, frequency of interest payment | monthly | |
Spread over LIBOR | 0.93% | |
Credit Facility, percentage of commitment fees | 0.15% | |
Credit Facility, amount outstanding | 0 | 0 |
Unamortized commitments fees | $942,000 | $1,000,000 |
Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Spread over LIBOR | 1.70% | |
Credit Facility, percentage of commitment fees | 0.30% | |
Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Spread over LIBOR | 0.88% | |
Credit Facility, percentage of commitment fees | 0.13% |
Mortgage_Note_Payable_Details
Mortgage Note Payable (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
sqft | ||
item | ||
Debt Instrument [Line Items] | ||
Mortgage notes payable, carrying amount | $250,000,000 | $250,000,000 |
5.45% Mortgage Note [Member] | ||
Debt Instrument [Line Items] | ||
Number of mortgage notes payable | 1 | |
Interest rate | 5.45% | |
Secured by square feet of real estate facilities | 4,800,000 | |
Net book value of secured property | $425,900,000 | |
Mortgage note, frequency of interest payment | monthly | |
Mortgage note due date | 1-Dec-16 |
Noncontrolling_Interests_Narra
Noncontrolling Interests (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2015 | |
Noncontrolling Interests [Abstract] | |
Number of years from date of admission as a limited partner for redemption of partnership interest | 1 year |
Number of common stock per unit of limited partnership interest redeemed | 1 |
Common units owned by affiliate | 7,305,355 |
Affiliate's percent ownership of the Company's common equity | 42.20% |
Shares owned by Public Storage | 14,500,000 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
item | |||
Related Party Transactions [Abstract] | |||
Royalty-free license agreement written notice of termination period minimum (in months) | 6 months | ||
Property management contract term (in years) | 7 years | ||
Extended property management contract period (in years) | 1 year | ||
Management fee revenues | $147,000 | $166,000 | |
Number of assets owned that are maintained by Public Storage | 2 | ||
Property management contract written notice of termination period minimum (in days) | 60 days | ||
Management fee expenses | 19,000 | 16,000 | |
Administrative services costs | 117,000 | 108,000 | |
Due from related parties | 166,000 | ||
Due to related parties | $86,000 |
Shareholders_Equity_Narrative_
Shareholders' Equity (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
item | |||
Shareholders' Equity [Abstract] | |||
Distributions recorded to preferred shareholders | $15,122,000 | $15,122,000 | |
Number of quarterly dividends in arrearage before preferred shareholders can elect additional board members | 6 | ||
Number of additional board members the preferred shareholders can elect in the case of an excess arrearage of quarterly dividends | 2 | ||
Dividends in arrears | 0 | ||
Redeemable preferred stock, redemption price per share | $25 | ||
Preferred stock, aggregate deferred issuance costs outstanding | $31,800,000 | $31,800,000 |
Shareholders_Equity_Common_And
Shareholders' Equity (Common And Equity Stock) (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Shareholders' Equity [Abstract] | ||
Aggregate number of common stock repurchased in the period | 0 | 0 |
Distributions paid to common shareholders | $13,464 | $13,443 |
Dividends declared per common share | $0.50 | $0.50 |
Equity stock, shares authorized | 100,000,000 |
Shareholders_Equity_Schedule_O
Shareholders' Equity (Schedule Of Preferred Stock Outstanding) (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Class of Stock [Line Items] | ||
Shares Outstanding | 39,800 | 39,800 |
Amount | $995,000 | $995,000 |
Series R [Member] | ||
Class of Stock [Line Items] | ||
Issuance Date | 1-Oct-10 | 1-Oct-10 |
Earliest Potential Redemption Date | 1-Oct-15 | 1-Oct-15 |
Dividend Rate | 6.88% | 6.88% |
Shares Outstanding | 3,000 | 3,000 |
Amount | 75,000 | 75,000 |
Series S [Member] | ||
Class of Stock [Line Items] | ||
Issuance Date | 1-Jan-12 | 1-Jan-12 |
Earliest Potential Redemption Date | 1-Jan-17 | 1-Jan-17 |
Dividend Rate | 6.45% | 6.45% |
Shares Outstanding | 9,200 | 9,200 |
Amount | 230,000 | 230,000 |
Series T [Member] | ||
Class of Stock [Line Items] | ||
Issuance Date | 1-May-12 | 1-May-12 |
Earliest Potential Redemption Date | 1-May-17 | 1-May-17 |
Dividend Rate | 6.00% | 6.00% |
Shares Outstanding | 14,000 | 14,000 |
Amount | 350,000 | 350,000 |
Series U [Member] | ||
Class of Stock [Line Items] | ||
Issuance Date | 1-Sep-12 | 1-Sep-12 |
Earliest Potential Redemption Date | 1-Sep-17 | 1-Sep-17 |
Dividend Rate | 5.75% | 5.75% |
Shares Outstanding | 9,200 | 9,200 |
Amount | 230,000 | 230,000 |
Series V [Member] | ||
Class of Stock [Line Items] | ||
Issuance Date | 1-Mar-13 | |
Earliest Potential Redemption Date | 1-Mar-18 | 1-Mar-18 |
Dividend Rate | 5.70% | 5.70% |
Shares Outstanding | 4,400 | 4,400 |
Amount | $110,000 | $110,000 |
Stock_Compensation_Narrative_D
Stock Compensation (Narrative) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options granted | 0 | 0 |
Weighted average grant date fair value of stock granted | $83.47 | |
Restricted stock units granted | 66,506 | |
Options and restricted stock units authorized to grant | 856,000 | |
Exercise of stock options, shares | 15,500 | |
Proceeds from the exercise of stock options | $785,000 | $2,033,000 |
Number of units vested | 21,184 | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options expense | 128,000 | 122,000 |
Unamortized compensation expense | 409,000 | |
Weighted average recognized period of unamortized compensation expenses (in years) | 3 years 1 month 6 days | |
Exercise of stock options, shares | 15,500 | 40,973 |
Aggregate intrinsic value of the stock options exercised | 439,000 | 1,400,000 |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock units expense | 107,000 | 175,000 |
Unamortized compensation expense | 26,100,000 | |
Weighted average recognized period of unamortized compensation expenses (in years) | 4 years 10 months 24 days | |
Number of units vested | 21,184 | 8,430 |
Number of units issued | 13,224 | 5,341 |
Aggregate fair value of the shares vested | 1,700,000 | 708,000 |
2003 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares covered under Stock Option and Incentive Plan | 1,500,000 | |
2012 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares covered under Stock Option and Incentive Plan | 1,000,000 | |
2014 Performance-Based Restricted Stock Unit Program [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair value of stock granted | $83.47 | |
Number of defined targets to achieve for restricted stock unit awards, maximum | 3 | |
Number of defined targets to achieve for restricted stock unit awards, minimum | 1 | |
Length of Restricted Stock Unit program (in years) | 4 years | |
Number of annual vesting installments | 4 | |
Approximate number of restricted stock units granted per year, maximum | 85,542 | |
Maximum shares for cumulative four-year period | 85,542 | |
Compensation expense | 2,100,000 | 858,000 |
Unamortized compensation expense | 24,600,000 | |
Number of units vested | 16,634 | |
Number of units issued | 10,495 | |
Aggregate fair value of the shares vested | 1,300,000 | |
Retirement Plan For Non-Employee Directors [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | 78,000 | 75,000 |
Unamortized compensation expense | $1,500,000 | $1,400,000 |
Number of units issued | 0 | 0 |
Number of shares granted for each year served | 1,000 | |
Maximum number of shares issued upon retirement | 8,000 | |
Subsequent Event [Member] | Retirement Plan For Non-Employee Directors [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares approved for issuance | 130,000 |
Stock_Compensation_Summary_Of_
Stock Compensation (Summary Of Stock Options Activity) (Details) (USD $) | 3 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 |
Stock Compensation [Abstract] | |
Number of Options, Outstanding | 341,852 |
Number of Options, Exercised | -15,500 |
Number of Options, Outstanding | 326,352 |
Number of Options, Exercisable at March 31, 2015 | 261,499 |
Weighted Average Exercise Price, Outstanding | $57.11 |
Weighted Average Exercise Price, Exercised | $50.63 |
Weighted Average Exercise Price, Outstanding | $57.42 |
Weighted Average Exercise Price, Exercisable at March 31, 2015 | $53.77 |
Weighted Average Remaining Contract Life, Outstanding at March 31, 2015 | 5 years 3 months 15 days |
Weighted Average Remaining Contract Life, Exercisable at March 31, 2015 | 4 years 8 months 1 day |
Aggregate Intrinsic Value, Outstanding at March 31, 2015 | $8,361 |
Aggregate Intrinsic Value, Exercisable at March 31, 2015 | $7,654 |
Stock_Compensation_Nonvested_R
Stock Compensation (Nonvested Restricted Stock Units) (Details) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Stock Compensation [Abstract] | |
Number of Units, Nonvested | 35,170 |
Number of Units, Granted | 66,506 |
Number of Units, Vested | -21,184 |
Number of Units, Forfeited | -2,230 |
Number of Units, Nonvested | 78,262 |
Weighted Average Grant Date Fair Value, Nonvested | $65.62 |
Weighted Average Grant Date Fair Value, Granted | $83.47 |
Weighted Average Grant Date Fair Value, Vested | $76.73 |
Weighted Average Grant Date Fair Value, Forfeited | $69.87 |
Weighted Average Grant Date Fair Value, Nonvested | $77.66 |