Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 1-May-15 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | HEALTHCARE REALTY TRUST INC | |
Entity Central Index Key | 899749 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 100,391,509 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Real estate properties: | ||
Land | $187,951 | $183,060 |
Buildings, improvements and lease intangibles | 3,077,828 | 3,048,251 |
Personal property | 10,014 | 9,914 |
Land held for development | 21,376 | 17,054 |
Real estate properties, Total | 3,297,169 | 3,258,279 |
Less accumulated depreciation | -723,393 | -700,671 |
Total real estate properties, net | 2,573,776 | 2,557,608 |
Cash and cash equivalents | 10,417 | 3,519 |
Mortgage notes receivable | 1,900 | 1,900 |
Assets held for sale and discontinued operations, net | 14,164 | 9,146 |
Other assets, net | 188,198 | 185,337 |
Total assets | 2,788,455 | 2,757,510 |
Liabilities: | ||
Notes and bonds payable | 1,444,555 | 1,403,692 |
Accounts payable and accrued liabilities | 50,144 | 70,240 |
Liabilities of discontinued operations | 102 | 372 |
Other liabilities | 64,469 | 62,152 |
Total liabilities | 1,559,270 | 1,536,456 |
Commitments and contingencies | ||
Stockholders' Equity: | ||
Preferred stock, $.01 par value; 50,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock, $.01 par value; 150,000 shares authorized; 100,087 and 98,828 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively | 1,001 | 988 |
Additional paid-in capital | 2,423,121 | 2,389,830 |
Accumulated other comprehensive loss | -3,242 | -2,519 |
Cumulative net income attributable to common stockholders | 845,631 | 840,249 |
Cumulative dividends | -2,037,326 | -2,007,494 |
Total stockholders’ equity | 1,229,185 | 1,221,054 |
Total liabilities and equity | $2,788,455 | $2,757,510 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (dollars per share) | $0.01 | $0.01 |
Preferred stock, authorized shares | 50,000,000 | 50,000,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, par value (dollars per share) | $0.01 | $0.01 |
Common stock, authorized shares | 150,000,000 | 150,000,000 |
Common stock, issued shares | 100,087,000 | 98,828,000 |
Common stock, outstanding shares | 100,087,000 | 98,828,000 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
REVENUES | ||
Rental income | $95,034 | $86,502 |
Mortgage interest | 31 | 2,621 |
Other operating | 1,391 | 1,448 |
Revenues | 96,456 | 90,571 |
EXPENSES | ||
Property operating | 34,263 | 32,831 |
General and administrative | 6,738 | 5,972 |
Depreciation | 26,387 | 23,667 |
Amortization | 2,667 | 2,759 |
Bad debts, net of recoveries | -207 | 47 |
Total Expenses | 69,848 | 65,276 |
OTHER INCOME (EXPENSE) | ||
Interest expense | -18,322 | -17,918 |
Impairment | -3,328 | 0 |
Interest and other income, net | 91 | 100 |
Total other income (expense) | -21,559 | -17,818 |
INCOME FROM CONTINUING OPERATIONS | 5,049 | 7,477 |
DISCONTINUED OPERATIONS | ||
Income (loss) from discontinued operations | 333 | -89 |
Impairments | -3,425 | |
INCOME (LOSS) FROM DISCONTINUED OPERATIONS | 333 | -3,514 |
NET INCOME | 5,382 | 3,963 |
Less: Net income attributable to noncontrolling interests | -111 | |
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $5,382 | $3,852 |
BASIC EARNINGS (LOSS) PER COMMON SHARE: | ||
Income from continuing operations (in dollars per share) | $0.05 | $0.08 |
Discontinued operations (in dollars per share) | ($0.04) | |
Net income attributable to common stockholders (in dollars per share) | $0.05 | $0.04 |
DILUTED EARNINGS (LOSS) PER COMMON SHARE: | ||
Income from continuing operations (in dollars per share) | $0.05 | $0.08 |
Discontinued operations (in dollars per share) | ($0.04) | |
Net income attributable to common stockholders (in dollars per share) | $0.05 | $0.04 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC (in shares) | 98,359,958 | 94,152,252 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - DILUTED (in shares) | 99,136,897 | 95,585,432 |
DIVIDENDS DECLARED, PER COMMON SHARE, DURING THE PERIOD (in dollars per share) | $0.30 | $0.30 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
NET INCOME | $5,382 | $3,963 |
Other comprehensive income (loss): | ||
Income from noncontrolling interests | -111 | |
Unrecognized loss on cash flow hedges | -723 | |
Total other comprehensive loss | -723 | -111 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $4,659 | $3,852 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
OPERATING ACTIVITIES | ||
Net income | $5,382 | $3,963 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 30,214 | 28,049 |
Stock-based compensation | 1,617 | 1,516 |
Straight-line rent receivable | -2,858 | -2,303 |
Straight-line rent liability | 195 | 108 |
Impairments | 3,328 | 3,425 |
Provision for bad debts, net | -208 | 47 |
Changes in operating assets and liabilities: | ||
Other assets | -2,914 | -3,087 |
Accounts payable and accrued liabilities | -18,989 | -21,577 |
Other liabilities | 1,337 | -1,848 |
Net cash provided by operating activities | 17,104 | 8,293 |
INVESTING ACTIVITIES | ||
Acquisitions of real estate | -37,139 | |
Development of real estate | -4,320 | |
Acquisition of additional long-lived assets | -11,161 | -15,882 |
Funding of mortgages and notes receivable | -798 | |
Proceeds from acquisition of real estate upon mortgage note receivable default | 204 | |
Proceeds from mortgages and notes receivable repayments | 5 | 4 |
Net cash used in investing activities | -52,615 | -16,472 |
FINANCING ACTIVITIES | ||
Net borrowings (repayments) on unsecured credit facility | 57,000 | -159,000 |
Borrowings on term loan | 200,000 | |
Repayments on notes and bonds payable | -16,468 | -1,462 |
Dividends paid | -29,832 | -28,802 |
Net proceeds from issuance of common stock | 31,910 | 374 |
Common stock redemptions | -201 | -227 |
Distributions to noncontrolling interest holders | -32 | |
Debt issuance and assumption costs | -1,174 | |
Net cash provided by financing activities | 42,409 | 9,677 |
Increase in cash and cash equivalents | 6,898 | 1,498 |
Cash and cash equivalents, beginning of period | 3,519 | 8,671 |
Cash and cash equivalents, end of period | 10,417 | 10,169 |
Supplemental Cash Flow Information: | ||
Interest paid | 25,313 | 25,153 |
Invoices accrued for construction, tenant improvement and other capitalized costs | $4,247 | $6,988 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies |
Business Overview | |
Healthcare Realty Trust Incorporated (the “Company”) is a real estate investment trust that integrates owning, managing, financing and developing income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States. The Company had investments of approximately $3.3 billion in 199 real estate properties and mortgages as of March 31, 2015. The Company’s 198 owned real estate properties are located in 30 states and total approximately 14.3 million square feet. The Company provided property management services to approximately 9.5 million square feet nationwide. | |
Basis of Presentation | |
The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all of the information and footnotes required by GAAP for complete financial statements. However, except as disclosed herein, management believes there has been no material change in the information disclosed in the Notes to Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2014. All material intercompany transactions and balances have been eliminated in consolidation. | |
This interim financial information should be read in conjunction with the financial statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in this report and in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. Management believes that all adjustments of a normal, recurring nature considered necessary for a fair presentation have been included. In addition, the interim financial information does not necessarily represent or indicate what the operating results will be for the year ending December 31, 2015 for many reasons including, but not limited to, acquisitions, dispositions, capital financing transactions, changes in interest rates and the effects of other trends, risks and uncertainties. | |
Use of Estimates in the Condensed Consolidated Financial Statements | |
Preparation of the Condensed Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions that affect amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. Actual results may differ from those estimates. | |
Fair Value of Derivative Financial Instruments | |
Derivative financial instruments are recorded at fair value on the Company's Condensed Consolidated Balance Sheets as other assets or other liabilities. The valuation of derivative instruments requires the Company to make estimates and judgments that affect the fair value of the instruments. Fair values of derivatives are estimated by pricing models that consider the forward yield curves and discount rates. The fair value of the Company's forward exchange contracts are estimated by pricing models that consider foreign trade rates and discount rates. Such amounts and the recognition of such amounts are subject to significant estimates that may change in the future. See Note 4 for additional information. | |
New Accounting Pronouncements | |
Accounting Standards Update No. 2015-03 | |
In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs." This standard requires debt issuance costs to be reported in the balance sheet as a direct reduction from the face amount of the note in which it is directly related. | |
This standard is effective for the Company beginning on January 1, 2016 with early adoption permitted, on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. Upon transition, the Company is required to comply with the applicable disclosures for a change in an accounting principle. The Company does not expect the adoption of this standard to have a material impact on the Company's consolidated financial position or cash flows. | |
Accounting Standards Update No. 2014-08 | |
In April 2014, the FASB issued ASU No. 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” This standard changes the requirements for reporting discontinued operations by raising the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations, and certain other disposals that do not meet the definition of a discontinued operation. The standard limits discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on an entity’s operations and financial results. | |
This standard is effective for the Company on a prospective basis for annual periods beginning on January 1, 2015 and interim periods within that year. Early adoption was permitted but only for disposals (or classifications as held for sale) that had not been reported in financial statements previously issued. The Company adopted this standard on the effective date of January 1, 2015 and does not expect it to have a material impact on the Company's consolidated financial position or cash flows, but it could have a material impact on the presentation of the Consolidated Statement of Operations. | |
Accounting Standards Update No. 2014-09 | |
In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers", a comprehensive new revenue recognition standard that supersedes most existing revenue recognition guidance, including sales of real estate. This standard's core principle is that a company will recognize revenue when it transfers goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods and services. However, leasing contracts, representing the major source of the Company's revenues, are not within the scope of the new standard and will continue to be accounted for under existing standards. | |
This new standard is effective for the Company for annual and interim periods beginning on January 1, 2017 with early adoption prohibited. However, the FASB issued an exposure draft on April 29, 2015 that would defer the effective date one year. The Company has not yet determined the effects on the Consolidated Financial Statements and related notes resulting from the adoption of this new standard. | |
Reclassifications | |
Certain amounts in the Company’s Condensed Consolidated Balance Sheets have been reclassified for the current period presentation of assets held for sale and related liabilities. |
Real_Estate_Investments
Real Estate Investments | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Business Combinations [Abstract] | ||||||||
Real Estate Investments | Real Estate Investments | |||||||
2015 Acquisition | ||||||||
In January 2015, the Company acquired a 110,679 square foot medical office building in California for a purchase price and cash consideration of $39.3 million. The property is located adjacent to two hospital campuses, Kaiser Permanente, a 106-bed hospital, and Washington Hospital Healthcare System, a 353-bed hospital. Upon acquisition, this property was 97% leased, with leases to the two hospitals comprising 59% of the rentable square footage. | ||||||||
Assets Held for Sale | ||||||||
During the first quarter of 2015, the Company reclassified one off-campus medical office building to held for sale in connection with management's decision to sell the property. The Company expects that the property will be sold during 2015. The Company recorded an impairment charge of $3.3 million to record the property at estimated fair value less costs to sell, which was based on a purchase and sale agreement, a level 3 input, that was subsequently terminated. At March 31, 2015 and December 31, 2014, the Company had three and two properties classified as held for sale, respectively. | ||||||||
The table below reflects the assets and liabilities of the properties classified as held for sale as of March 31, 2015 and December 31, 2014. | ||||||||
(Dollars in thousands) | March 31, | December 31, | ||||||
2015 | 2014 | |||||||
Balance Sheet data: | ||||||||
Land | $ | 2,524 | $ | 422 | ||||
Buildings, improvements and lease intangibles | 21,513 | 12,822 | ||||||
Personal property | 21 | 13 | ||||||
24,058 | 13,257 | |||||||
Accumulated depreciation | (10,322 | ) | (4,464 | ) | ||||
Assets held for sale, net | 13,736 | 8,793 | ||||||
Other assets, net (including receivables) | 428 | 353 | ||||||
Assets of discontinued operations, net | 428 | 353 | ||||||
Assets held for sale and discontinued operations, net | $ | 14,164 | $ | 9,146 | ||||
Accounts payable and accrued liabilities | $ | 93 | $ | 86 | ||||
Other liabilities | 9 | 286 | ||||||
Liabilities of discontinued operations | $ | 102 | $ | 372 | ||||
Discontinued Operations | ||||||||
The Company adopted Accounting Standards Update No. 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity” during the first quarter of 2015. As of December 31, 2014, the Company had two properties classified as held for sale and recorded in discontinued operations. These two properties will remain classified as discontinued operations until the properties are sold. During the three months ended March 31, 2015, the Company reclassified a property to held for sale upon management's decision to sell the property that did not meet the amended criteria as a discontinued operation. Therefore, the operating results of the property is not included in the table below which reflects the results of operations of the properties included in discontinued operations on the Company's Condensed Consolidated Statements of Operations for the three months ended March 31, 2015 and 2014. | ||||||||
Three Months Ended March 31, | ||||||||
(Dollars in thousands) | 2015 | 2014 | ||||||
Statements of Operations data: | ||||||||
Revenues | ||||||||
Rental income | $ | 341 | $ | 1,585 | ||||
Other Operating Income | — | 1 | ||||||
341 | 1,586 | |||||||
Expenses | ||||||||
Property operating | 29 | 1,113 | ||||||
General and administrative | — | 7 | ||||||
Depreciation | — | 555 | ||||||
Bad debts, net of recoveries | (1 | ) | — | |||||
28 | 1,675 | |||||||
Other Income (Expense) | ||||||||
Interest and other income, net | 20 | — | ||||||
20 | — | |||||||
Discontinued Operations | ||||||||
Income (loss) from discontinued operations | 333 | (89 | ) | |||||
Impairments | — | (3,425 | ) | |||||
Income (Loss) from Discontinued Operations | $ | 333 | $ | (3,514 | ) | |||
Notes_and_Bonds_Payable
Notes and Bonds Payable | 3 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
Notes and Bonds Payable | Notes and Bonds Payable |
First Quarter | |
In January 2015, the Company repaid in full a secured loan from Wells Fargo Commercial Mortgage bearing an interest rate of 5.45% consisting of outstanding principal of $15.0 million and accrued interest as of the redemption date of $0.1 million. | |
Subsequent Activity | |
On April 1, 2015, the Company repaid in full a secured loan from Wells Fargo Commercial Mortgage bearing an interest rate of 5.0% consisting of principal of $10.2 million. | |
On April 24, 2015, the Company issued $250.0 million of unsecured senior notes due 2025 (the "Senior Notes due 2025") in a registered public offering. The Senior Notes due 2025 bear interest at 3.875%, payable semi-annually on May 1 and November 1, beginning November 1, 2015, and are due on May 1, 2025, unless redeemed earlier by the Company. The notes were issued at a discount of approximately $0.2 million, which yielded a 3.885% interest rate per annum upon issuance. The Company incurred approximately $2.1 million in debt issuance costs that are included in Other assets, which will be amortized to maturity using the effective interest method. See Note 4 for discussion regarding the concurrent termination of the four forward starting interest rate swaps and related impact. The Senior Notes due 2025 have various financial covenants that are required to be met on a quarterly and annual basis. | |
Also in April 2015, the Company issued a notice of its intent to redeem its unsecured senior notes due 2017 on May 15, 2015 at a redemption price equal to an aggregate of $333.2 million, consisting of outstanding principal of $300.0 million, accrued interest of $6.4 million, and a "make-whole" amount of approximately $26.8 million for the early extinguishment of debt. The unaccreted discount and unamortized costs on these notes of $1.2 million will be written off upon redemption. In the second quarter of 2015, the Company expects to recognize a loss on early extinguishment of debt of approximately $28.0 million related to this redemption. | |
On May 4, 2015, the Company repaid in full a mortgage note payable bearing an interest rate of 5.41% consisting of outstanding principal of $16.3 million and accrued interest as of the redemption date of $0.1 million. |
Derivative_Instruments
Derivative Instruments | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||
Derivative Instruments | Derivative Financial Instruments | ||||||
Risk Management Objective of Using Derivatives | |||||||
In addition to operational risks which arise in the normal course of business, the Company is exposed to economic risks such as interest rate, liquidity, and credit risk. In certain situations, the Company may enter into derivative financial instruments such as interest rate swap and interest rate cap agreements to manage interest rate risk exposure arising from variable rate debt transactions that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company's objective in using interest rate derivatives is to manage its exposure to interest rate movements. | |||||||
Cash Flow Hedges of Interest Rate Risk | |||||||
Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without changing the underlying notional amount. | |||||||
During the three months ended March 31, 2015, the Company entered into two forward starting interest rate swaps with a total notional value of $125.0 million to hedge the risk of changes in the interest-related cash flows associated with the potential issuance of long-term debt that was issued in April 2015 as discussed in Note 3. The Company was hedging its exposure to the variability in future cash flows for forecasted transactions. As of March 31, 2015, the Company had hedged $125.0 million associated with the potential incurrence of long-term debt. | |||||||
A detail of the Company's interest rate derivatives outstanding as of March 31, 2015 is as follows (in thousands): | |||||||
Interest Rate Derivative | Notional Amount | ||||||
Interest Rate Swaps | $ | 125,000 | |||||
The Company has elected to present its interest rate derivatives on its Condensed Consolidated Balance Sheets on a gross basis as interest rate swap assets and interest rate swap liabilities. A detail of the Company's fair value of interest rate derivatives on a gross and net basis as of March 31, 2015 is as follows (in thousands): | |||||||
Interest Rate Swaps Classified as: | Fair Value of Derivative Instruments | ||||||
Gross derivative liabilities | $ | (723 | ) | ||||
Derivative liability | $ | (723 | ) | ||||
All of the Company's interest rate swap agreements outstanding for the three months ended March 31, 2015 were designated as cash flow hedges of interest rate risk. The effective portion of the changes in fair value of derivatives designated as, and that qualify as, cash flow hedges is recorded in other comprehensive income (loss) ("OCI") and will be reclassified into earnings as interest expense in the period that the hedged forecasted transaction affects earnings. | |||||||
The following presents the impacts of derivative instruments on the Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2015 (in thousands): | |||||||
Location | For the Three Months Ended March 31, 2015 | ||||||
Loss on forward starting interest rate swap agreements recognized in OCI | OCI | $ | 723 | ||||
The Company estimates that an additional $0.2 million will be reclassified from accumulated other comprehensive loss as an increase to interest expense over the next 12 months. No gain or loss was recognized related to hedge ineffectiveness or to amounts excluded from effectiveness testing on the Company's cash flow hedges during the three months ended March 31, 2015. | |||||||
Credit-risk-related Contingent Features | |||||||
The Company has agreements with its derivative counterparties that contain a provision whereby if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. If the Company were to breach any of the contractual provisions of the derivative contracts, it would be required to settle its obligations under the agreements at their termination value including accrued interest, or approximately $0.7 million at March 31, 2015. Additionally, the Company does have rights of set-off under certain of its derivative agreements related to potential termination fees and amounts payable under the agreements, if a termination were to occur. | |||||||
Subsequent Activity | |||||||
On April 1 and April 3, 2015, the Company entered into two forward starting swap agreements with a total notional value of $62.5 million and $37.5 million, respectively. | |||||||
On April 24, 2015 and in conjunction with the Company's issuance of the Senior Notes due 2025, the Company settled the four previously outstanding forward starting swap agreements for a loss of approximately $1.7 million. The loss was recorded as accumulated other comprehensive income and is being amortized as additional interest expense over the ten-year term of the Senior Notes due 2025 resulting in an effective interest rate of 3.97%. The Company classifies cash flows from the settlement of hedging derivative instruments in the same category as the underlying exposure which is being hedged. As the cash settlement of approximately $1.7 million was the result of hedging the Company's exposure to interest rate changes and their effect on interest expense, such cash settlement is classified as an operating cash flow in the accompanying consolidated statements of cash flows. See Note 3 for more information on the bond issuance. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies |
Legal Proceedings | |
The Company is, from time to time, involved in litigation arising in the ordinary course of business or which is expected to be covered by insurance. The Company is not aware of any pending or threatened litigation that, if resolved against the Company, would have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. | |
Redevelopment Activity | |
The Company is in the process of redeveloping two properties in Tennessee and will begin constructing an expansion of one of the buildings beginning in the second quarter of 2015. The Company has spent approximately $9.4 million toward these projects through March 31, 2015, including the acquisition of a land parcel for $4.3 million on which the Company intends to build a parking garage. The total estimated budget of the redevelopment of these properties is expected to be $47.8 million and the project is expected to be completed near the end of 2016. | |
The Company will commence redevelopment of a property in Alabama, which will include building a parking garage. Construction is expected to begin in the second quarter of 2015. The total redevelopment budget is $15.4 million, of which $1.5 million has been spent as of March 31, 2015. Construction is expected to be completed at the beginning of 2016. |
Stockholders_Equity
Stockholders' Equity | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||
Stockholders' Equity | Stockholders' Equity | ||||||||||||||||||
The following table provides a reconciliation of total stockholders' equity for the three months ended March 31, 2015: | |||||||||||||||||||
(Dollars in thousands, except per share data) | Common | Additional | Accumulated | Cumulative | Cumulative | Total | |||||||||||||
Stock | Paid-In | Other | Net | Dividends | Stockholders’ | ||||||||||||||
Capital | Comprehensive | Income Attributable to Common Stockholders | Equity | ||||||||||||||||
Loss | |||||||||||||||||||
Balance at December 31, 2014 | $ | 988 | $ | 2,389,830 | $ | (2,519 | ) | $ | 840,249 | $ | (2,007,494 | ) | $ | 1,221,054 | |||||
Issuance of common stock | 12 | 31,876 | — | — | — | 31,888 | |||||||||||||
Common stock redemptions | — | (201 | ) | — | — | — | (201 | ) | |||||||||||
Stock-based compensation | 1 | 1,616 | — | — | — | 1,617 | |||||||||||||
Net income | — | — | — | 5,382 | — | 5,382 | |||||||||||||
Loss on forward starting interest rate swaps | — | — | (723 | ) | — | — | (723 | ) | |||||||||||
Dividends to common stockholders ($0.30 per share) | — | — | — | — | (29,832 | ) | (29,832 | ) | |||||||||||
Balance at March 31, 2015 | $ | 1,001 | $ | 2,423,121 | $ | (3,242 | ) | $ | 845,631 | $ | (2,037,326 | ) | $ | 1,229,185 | |||||
The following table discloses changes in the balances of each component of accumulated comprehensive loss for the three months ended March 31, 2015: | |||||||||||||||||||
Forward-starting Interest Rate Swaps | Defined Benefit Pension Plans | Accumulated Other Comprehensive Loss | |||||||||||||||||
Beginning balance | $ | — | $ | (2,519 | ) | $ | (2,519 | ) | |||||||||||
Current-period other comprehensive loss | (723 | ) | — | (723 | ) | ||||||||||||||
Ending balance | $ | (723 | ) | $ | (2,519 | ) | $ | (3,242 | ) | ||||||||||
Common Stock | |||||||||||||||||||
The following table provides a reconciliation of the beginning and ending shares of common stock outstanding for the three months ended March 31, 2015 and the year ended December 31, 2014: | |||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||
Balance, beginning of period | 98,828,098 | 95,924,339 | |||||||||||||||||
Issuance of common stock | 1,176,702 | 3,073,445 | |||||||||||||||||
Nonvested share-based awards, net | 81,786 | (169,686 | ) | ||||||||||||||||
Balance, end of period | 100,086,586 | 98,828,098 | |||||||||||||||||
At-The-Market Equity Offering Program | |||||||||||||||||||
During the three months ended March 31, 2015, the Company sold 1,140,362 shares of common stock under its at-the-market equity offering program, generating $31.2 million in net proceeds at prices ranging from $26.35 to $29.15 per share (weighted average of $27.78 per share). In April 2015, the Company sold 304,752 shares of common stock, generating $8.3 million in net proceeds at prices ranging from $27.04 to $28.00 per share (weighted average of $27.77 per share). The Company's existing sales agreements with four investment banks allow sales under this program of up to 9,000,000 shares of common stock, with 936,525 authorized shares remaining available to be sold under the these agreements as of May 1, 2015. | |||||||||||||||||||
Common Stock Dividends | |||||||||||||||||||
During the first three months of 2015, the Company declared and paid common stock dividends totaling $0.30 per share. On May 5, 2015, the Company declared a quarterly common stock dividend in the amount of $0.30 per share payable on May 29, 2015 to stockholders of record on May 18, 2015. | |||||||||||||||||||
Earnings (Loss) Per Common Share | |||||||||||||||||||
The following table sets forth the computation of basic and diluted earnings (loss) per common share for the three months ended March 31, 2015 and 2014. | |||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||
(Dollars in thousands, except per share data) | 2015 | 2014 | |||||||||||||||||
Weighted average Common Shares outstanding | |||||||||||||||||||
Weighted average Common Shares outstanding | 99,467,804 | 96,009,788 | |||||||||||||||||
Nonvested shares | (1,107,846 | ) | (1,857,536 | ) | |||||||||||||||
Weighted average Common Shares outstanding—Basic | 98,359,958 | 94,152,252 | |||||||||||||||||
Weighted average Common Shares—Basic | 98,359,958 | 94,152,252 | |||||||||||||||||
Dilutive effect of restricted stock | 615,511 | 1,299,287 | |||||||||||||||||
Dilutive effect of employee stock purchase plan | 161,428 | 133,893 | |||||||||||||||||
Weighted average Common Shares outstanding—Diluted | 99,136,897 | 95,585,432 | |||||||||||||||||
Net Income (Loss) | |||||||||||||||||||
Income from continuing operations | $ | 5,049 | $ | 7,477 | |||||||||||||||
Noncontrolling interests’ share in net loss | — | (111 | ) | ||||||||||||||||
Income from continuing operations attributable to common stockholders | 5,049 | 7,366 | |||||||||||||||||
Discontinued operations | 333 | (3,514 | ) | ||||||||||||||||
Net income attributable to common stockholders | $ | 5,382 | $ | 3,852 | |||||||||||||||
Basic Earnings (Loss) Per Common Share | |||||||||||||||||||
Income from continuing operations | $ | 0.05 | $ | 0.08 | |||||||||||||||
Discontinued operations | 0 | (0.04 | ) | ||||||||||||||||
Net income attributable to common stockholders | $ | 0.05 | $ | 0.04 | |||||||||||||||
Diluted Earnings (Loss) Per Common Share | |||||||||||||||||||
Income from continuing operations | $ | 0.05 | $ | 0.08 | |||||||||||||||
Discontinued operations | 0 | (0.04 | ) | ||||||||||||||||
Net income attributable to common stockholders | $ | 0.05 | $ | 0.04 | |||||||||||||||
Incentive Plans | |||||||||||||||||||
The Company has various stock-based incentive plans for its employees and directors. Awards under these plans include nonvested common stock issued to employees and the Company’s directors. During the three months ended March 31, 2015 and 2014, the Company issued 89,068 and 101,522 shares of nonvested common stock, respectively, to participants under these incentive plans and withheld 7,282 and 9,974 shares of common stock, respectively, from participants to pay estimated withholding taxes related to shares that vested. | |||||||||||||||||||
A summary of the activity under the stock-based incentive plans for the three months ended March 31, 2015 and 2014 is included in the table below. | |||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||
2015 | 2014 | ||||||||||||||||||
Stock-based awards, beginning of period | 1,057,732 | 1,788,168 | |||||||||||||||||
Granted | 89,068 | 101,522 | |||||||||||||||||
Vested | (28,386 | ) | (34,365 | ) | |||||||||||||||
Stock-based awards, end of period | 1,118,414 | 1,855,325 | |||||||||||||||||
The Company recorded approximately $0.2 million in general and administrative expenses during the first quarter of 2015 relating to the annual grant of options to its employees under the Employee Stock Purchase Plan based on the Company's estimate of option exercises. | |||||||||||||||||||
A summary of the activity under the Employee Stock Purchase Plan for the three months ended March 31, 2015 and 2014 is included in the table below. | |||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||
2015 | 2014 | ||||||||||||||||||
Outstanding and exercisable, beginning of period | 393,902 | 391,108 | |||||||||||||||||
Granted | 197,640 | 275,655 | |||||||||||||||||
Exercised | (33,046 | ) | (18,502 | ) | |||||||||||||||
Forfeited | (20,779 | ) | (22,426 | ) | |||||||||||||||
Expired | (158,946 | ) | (157,875 | ) | |||||||||||||||
Outstanding and exercisable, end of period | 378,771 | 467,960 | |||||||||||||||||
Defined_Benefit_Pension_Plan
Defined Benefit Pension Plan | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||
Defined Benefit Pension Plan | Defined Benefit Pension Plan | |||||||
The Company’s Executive Retirement Plan provides benefits upon retirement for three of the Company’s founding officers. The plan is unfunded and benefits will be paid from cash flows of the Company. The maximum annual benefits payable to each individual under the Executive Retirement Plan is $0.9 million, subject to cost-of-living adjustments. As of March 31, 2015, only the Company’s Chief Executive Officer was eligible to retire under the Executive Retirement Plan. | ||||||||
Net periodic benefit cost recorded related to the Company’s pension plan for the three months ended March 31, 2015 and 2014 is detailed in the following table. | ||||||||
Three Months Ended March 31, | ||||||||
(Dollars in thousands) | 2015 | 2014 | ||||||
Service cost | $ | 21 | $ | 22 | ||||
Interest cost | 169 | 172 | ||||||
Amortization of net gain (loss) | (149 | ) | 117 | |||||
Amortization of prior service cost | 258 | (297 | ) | |||||
Total recognized in net periodic benefit cost | $ | 299 | $ | 14 | ||||
Subsequent Activity | ||||||||
Effective May 5, 2015, the Company terminated its Executive Retirement Plan. The Company will settle benefits under the plan by paying the plan participants lump sum amounts. In accordance with Section 409A of the Internal Revenue Code, these amounts will be paid no earlier than twelve and no later than twenty-four months following the termination date. The Second Amendment to the Second Amended and Restated Executive Retirement Plan (the “Termination Amendment”), which provides for the termination of the plan, is filed with this Quarterly Report on Form 10-Q as Exhibit 10.1. Additional information regarding the Executive Retirement Plan can be found in the Company’s proxy statement filed with the Securities and Exchange Commission in connection with the Company’s annual meeting of shareholders to be held on May 12, 2015. | ||||||||
At March 31, 2015, the Company recognized a total benefit obligation of $16.8 million in connection with the Executive Retirement Plan. The Company expects the total costs associated with the termination of the Executive Retirement Plan to be approximately $19.6 million and that it will record a current period charge in the second quarter of 2015 of approximately $5.3 million, inclusive of the acceleration of $2.5 million recorded in accumulated other comprehensive income (loss) on the consolidated balance sheet that was being amortized. The charge includes amounts resulting from assumed additional years of service for plan participants who have not reached age 65 and payments associated with FICA and other tax obligations. | ||||||||
The Company’s chairman and chief executive officer, Mr. David Emery, is the only named executive officer that is a participant under the plan. As a result of the termination, Mr. Emery will receive a lump sum amount equal to his accrued benefit under the plan of approximately $14.4 million. The Company expects that Mr. Emery and the other officer participants will take the settlement payments in Company stock, but can elect to receive cash. | ||||||||
The preceding summary is qualified in its entirety by the full text of the Termination Amendment and, in the event of any discrepancy, the text of the Termination Amendment shall control. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | |||||||||||||||
The following methods and assumptions were used to estimate the fair value of each class of financial instrument for which it is practical to estimate that value. | ||||||||||||||||
Cash and cash equivalents - The carrying amount approximates fair value. | ||||||||||||||||
Mortgage notes receivable - The fair value of mortgage notes receivable is estimated based either on cash flow analyses at an assumed market rate of interest or at a rate consistent with the rates on mortgage notes acquired by the Company recently. | ||||||||||||||||
Borrowings under the unsecured credit facility due 2017 - The carrying amount approximates fair value because the borrowings are based on variable interest rates. | ||||||||||||||||
Senior unsecured notes payable - The fair value of notes and bonds payable is estimated using cash flow analyses, based on the Company’s current interest rates for similar types of borrowing arrangements. | ||||||||||||||||
Mortgage notes payable - The fair value is estimated using cash flow analyses, based on the Company’s current interest rates for similar types of borrowing arrangements. | ||||||||||||||||
Interest rate swap agreements - Interest rate swap agreements are recorded in other liabilities on the Company's Condensed Consolidated Balance Sheets at fair value. Fair value is estimated by utilizing pricing models that consider forward yield curves and discount rates. | ||||||||||||||||
The table below details the fair values and carrying values for notes and bonds payable, mortgage notes receivable and interest rate swaps at March 31, 2015 and December 31, 2014. | ||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||
(Dollars in millions) | Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
Notes and bonds payable (1) | $ | 1,444.60 | $ | 1,487.50 | $ | 1,403.70 | $ | 1,438.80 | ||||||||
Mortgage notes receivable (2) | $ | 1.9 | $ | 1.9 | $ | 1.9 | $ | 1.9 | ||||||||
Interest rate swaps (2) | $ | 0.7 | $ | 0.7 | $ | — | $ | — | ||||||||
______ | ||||||||||||||||
(1) Level 3 - Fair value derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. | ||||||||||||||||
(2) Level 2 - Fair value based on 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. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Business Overview | Business Overview |
Healthcare Realty Trust Incorporated (the “Company”) is a real estate investment trust that integrates owning, managing, financing and developing income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States. The Company had investments of approximately $3.3 billion in 199 real estate properties and mortgages as of March 31, 2015. The Company’s 198 owned real estate properties are located in 30 states and total approximately 14.3 million square feet. The Company provided property management services to approximately 9.5 million square feet nationwide. | |
Basis of Presentation | Basis of Presentation |
The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all of the information and footnotes required by GAAP for complete financial statements. However, except as disclosed herein, management believes there has been no material change in the information disclosed in the Notes to Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2014. All material intercompany transactions and balances have been eliminated in consolidation. | |
This interim financial information should be read in conjunction with the financial statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in this report and in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. Management believes that all adjustments of a normal, recurring nature considered necessary for a fair presentation have been included. In addition, the interim financial information does not necessarily represent or indicate what the operating results will be for the year ending December 31, 2015 for many reasons including, but not limited to, acquisitions, dispositions, capital financing transactions, changes in interest rates and the effects of other trends, risks and uncertainties. | |
Use of Estimates in the Condensed Consolidated Financial Statements | Use of Estimates in the Condensed Consolidated Financial Statements |
Preparation of the Condensed Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions that affect amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. Actual results may differ from those estimates. | |
Fair Value of Derivative Instruments | Fair Value of Derivative Financial Instruments |
Derivative financial instruments are recorded at fair value on the Company's Condensed Consolidated Balance Sheets as other assets or other liabilities. The valuation of derivative instruments requires the Company to make estimates and judgments that affect the fair value of the instruments. Fair values of derivatives are estimated by pricing models that consider the forward yield curves and discount rates. The fair value of the Company's forward exchange contracts are estimated by pricing models that consider foreign trade rates and discount rates. Such amounts and the recognition of such amounts are subject to significant estimates that may change in the future. | |
New Accounting Pronouncements | New Accounting Pronouncements |
Accounting Standards Update No. 2015-03 | |
In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs." This standard requires debt issuance costs to be reported in the balance sheet as a direct reduction from the face amount of the note in which it is directly related. | |
This standard is effective for the Company beginning on January 1, 2016 with early adoption permitted, on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. Upon transition, the Company is required to comply with the applicable disclosures for a change in an accounting principle. The Company does not expect the adoption of this standard to have a material impact on the Company's consolidated financial position or cash flows. | |
Accounting Standards Update No. 2014-08 | |
In April 2014, the FASB issued ASU No. 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” This standard changes the requirements for reporting discontinued operations by raising the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations, and certain other disposals that do not meet the definition of a discontinued operation. The standard limits discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on an entity’s operations and financial results. | |
This standard is effective for the Company on a prospective basis for annual periods beginning on January 1, 2015 and interim periods within that year. Early adoption was permitted but only for disposals (or classifications as held for sale) that had not been reported in financial statements previously issued. The Company adopted this standard on the effective date of January 1, 2015 and does not expect it to have a material impact on the Company's consolidated financial position or cash flows, but it could have a material impact on the presentation of the Consolidated Statement of Operations. | |
Accounting Standards Update No. 2014-09 | |
In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers", a comprehensive new revenue recognition standard that supersedes most existing revenue recognition guidance, including sales of real estate. This standard's core principle is that a company will recognize revenue when it transfers goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods and services. However, leasing contracts, representing the major source of the Company's revenues, are not within the scope of the new standard and will continue to be accounted for under existing standards. | |
This new standard is effective for the Company for annual and interim periods beginning on January 1, 2017 with early adoption prohibited. However, the FASB issued an exposure draft on April 29, 2015 that would defer the effective date one year. The Company has not yet determined the effects on the Consolidated Financial Statements and related notes resulting from the adoption of this new standard. | |
Reclassifications | Reclassifications |
Certain amounts in the Company’s Condensed Consolidated Balance Sheets have been reclassified for the current period presentation of assets held for sale and related liabilities. |
Real_Estate_Investments_Tables
Real Estate Investments (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Business Combinations [Abstract] | ||||||||
Discontinued Operations and Assets Held for Sale | The table below reflects the assets and liabilities of the properties classified as held for sale as of March 31, 2015 and December 31, 2014. | |||||||
(Dollars in thousands) | March 31, | December 31, | ||||||
2015 | 2014 | |||||||
Balance Sheet data: | ||||||||
Land | $ | 2,524 | $ | 422 | ||||
Buildings, improvements and lease intangibles | 21,513 | 12,822 | ||||||
Personal property | 21 | 13 | ||||||
24,058 | 13,257 | |||||||
Accumulated depreciation | (10,322 | ) | (4,464 | ) | ||||
Assets held for sale, net | 13,736 | 8,793 | ||||||
Other assets, net (including receivables) | 428 | 353 | ||||||
Assets of discontinued operations, net | 428 | 353 | ||||||
Assets held for sale and discontinued operations, net | $ | 14,164 | $ | 9,146 | ||||
Accounts payable and accrued liabilities | $ | 93 | $ | 86 | ||||
Other liabilities | 9 | 286 | ||||||
Liabilities of discontinued operations | $ | 102 | $ | 372 | ||||
Discontinued Operations | ||||||||
The Company adopted Accounting Standards Update No. 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity” during the first quarter of 2015. As of December 31, 2014, the Company had two properties classified as held for sale and recorded in discontinued operations. These two properties will remain classified as discontinued operations until the properties are sold. During the three months ended March 31, 2015, the Company reclassified a property to held for sale upon management's decision to sell the property that did not meet the amended criteria as a discontinued operation. Therefore, the operating results of the property is not included in the table below which reflects the results of operations of the properties included in discontinued operations on the Company's Condensed Consolidated Statements of Operations for the three months ended March 31, 2015 and 2014. | ||||||||
Three Months Ended March 31, | ||||||||
(Dollars in thousands) | 2015 | 2014 | ||||||
Statements of Operations data: | ||||||||
Revenues | ||||||||
Rental income | $ | 341 | $ | 1,585 | ||||
Other Operating Income | — | 1 | ||||||
341 | 1,586 | |||||||
Expenses | ||||||||
Property operating | 29 | 1,113 | ||||||
General and administrative | — | 7 | ||||||
Depreciation | — | 555 | ||||||
Bad debts, net of recoveries | (1 | ) | — | |||||
28 | 1,675 | |||||||
Other Income (Expense) | ||||||||
Interest and other income, net | 20 | — | ||||||
20 | — | |||||||
Discontinued Operations | ||||||||
Income (loss) from discontinued operations | 333 | (89 | ) | |||||
Impairments | — | (3,425 | ) | |||||
Income (Loss) from Discontinued Operations | $ | 333 | $ | (3,514 | ) | |||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||
Schedule of Interest Rate Derivatives | A detail of the Company's interest rate derivatives outstanding as of March 31, 2015 is as follows (in thousands): | ||||||
Interest Rate Derivative | Notional Amount | ||||||
Interest Rate Swaps | $ | 125,000 | |||||
Schedule of Derivative Liabilities at Fair Value | A detail of the Company's fair value of interest rate derivatives on a gross and net basis as of March 31, 2015 is as follows (in thousands): | ||||||
Interest Rate Swaps Classified as: | Fair Value of Derivative Instruments | ||||||
Gross derivative liabilities | $ | (723 | ) | ||||
Derivative liability | $ | (723 | ) | ||||
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The following presents the impacts of derivative instruments on the Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2015 (in thousands): | ||||||
Location | For the Three Months Ended March 31, 2015 | ||||||
Loss on forward starting interest rate swap agreements recognized in OCI | OCI | $ | 723 | ||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||
Reconciliation of total equity | The following table provides a reconciliation of total stockholders' equity for the three months ended March 31, 2015: | ||||||||||||||||||
(Dollars in thousands, except per share data) | Common | Additional | Accumulated | Cumulative | Cumulative | Total | |||||||||||||
Stock | Paid-In | Other | Net | Dividends | Stockholders’ | ||||||||||||||
Capital | Comprehensive | Income Attributable to Common Stockholders | Equity | ||||||||||||||||
Loss | |||||||||||||||||||
Balance at December 31, 2014 | $ | 988 | $ | 2,389,830 | $ | (2,519 | ) | $ | 840,249 | $ | (2,007,494 | ) | $ | 1,221,054 | |||||
Issuance of common stock | 12 | 31,876 | — | — | — | 31,888 | |||||||||||||
Common stock redemptions | — | (201 | ) | — | — | — | (201 | ) | |||||||||||
Stock-based compensation | 1 | 1,616 | — | — | — | 1,617 | |||||||||||||
Net income | — | — | — | 5,382 | — | 5,382 | |||||||||||||
Loss on forward starting interest rate swaps | — | — | (723 | ) | — | — | (723 | ) | |||||||||||
Dividends to common stockholders ($0.30 per share) | — | — | — | — | (29,832 | ) | (29,832 | ) | |||||||||||
Balance at March 31, 2015 | $ | 1,001 | $ | 2,423,121 | $ | (3,242 | ) | $ | 845,631 | $ | (2,037,326 | ) | $ | 1,229,185 | |||||
Schedule of accumulated other comprehensive income (loss) | The following table discloses changes in the balances of each component of accumulated comprehensive loss for the three months ended March 31, 2015: | ||||||||||||||||||
Forward-starting Interest Rate Swaps | Defined Benefit Pension Plans | Accumulated Other Comprehensive Loss | |||||||||||||||||
Beginning balance | $ | — | $ | (2,519 | ) | $ | (2,519 | ) | |||||||||||
Current-period other comprehensive loss | (723 | ) | — | (723 | ) | ||||||||||||||
Ending balance | $ | (723 | ) | $ | (2,519 | ) | $ | (3,242 | ) | ||||||||||
Reconciliation of beginning and ending common stock outstanding | Common Stock | ||||||||||||||||||
The following table provides a reconciliation of the beginning and ending shares of common stock outstanding for the three months ended March 31, 2015 and the year ended December 31, 2014: | |||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||
Balance, beginning of period | 98,828,098 | 95,924,339 | |||||||||||||||||
Issuance of common stock | 1,176,702 | 3,073,445 | |||||||||||||||||
Nonvested share-based awards, net | 81,786 | (169,686 | ) | ||||||||||||||||
Balance, end of period | 100,086,586 | 98,828,098 | |||||||||||||||||
Earnings (loss) per share | Earnings (Loss) Per Common Share | ||||||||||||||||||
The following table sets forth the computation of basic and diluted earnings (loss) per common share for the three months ended March 31, 2015 and 2014. | |||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||
(Dollars in thousands, except per share data) | 2015 | 2014 | |||||||||||||||||
Weighted average Common Shares outstanding | |||||||||||||||||||
Weighted average Common Shares outstanding | 99,467,804 | 96,009,788 | |||||||||||||||||
Nonvested shares | (1,107,846 | ) | (1,857,536 | ) | |||||||||||||||
Weighted average Common Shares outstanding—Basic | 98,359,958 | 94,152,252 | |||||||||||||||||
Weighted average Common Shares—Basic | 98,359,958 | 94,152,252 | |||||||||||||||||
Dilutive effect of restricted stock | 615,511 | 1,299,287 | |||||||||||||||||
Dilutive effect of employee stock purchase plan | 161,428 | 133,893 | |||||||||||||||||
Weighted average Common Shares outstanding—Diluted | 99,136,897 | 95,585,432 | |||||||||||||||||
Net Income (Loss) | |||||||||||||||||||
Income from continuing operations | $ | 5,049 | $ | 7,477 | |||||||||||||||
Noncontrolling interests’ share in net loss | — | (111 | ) | ||||||||||||||||
Income from continuing operations attributable to common stockholders | 5,049 | 7,366 | |||||||||||||||||
Discontinued operations | 333 | (3,514 | ) | ||||||||||||||||
Net income attributable to common stockholders | $ | 5,382 | $ | 3,852 | |||||||||||||||
Basic Earnings (Loss) Per Common Share | |||||||||||||||||||
Income from continuing operations | $ | 0.05 | $ | 0.08 | |||||||||||||||
Discontinued operations | 0 | (0.04 | ) | ||||||||||||||||
Net income attributable to common stockholders | $ | 0.05 | $ | 0.04 | |||||||||||||||
Diluted Earnings (Loss) Per Common Share | |||||||||||||||||||
Income from continuing operations | $ | 0.05 | $ | 0.08 | |||||||||||||||
Discontinued operations | 0 | (0.04 | ) | ||||||||||||||||
Net income attributable to common stockholders | $ | 0.05 | $ | 0.04 | |||||||||||||||
Summary of the activity under the Incentive Plan | A summary of the activity under the stock-based incentive plans for the three months ended March 31, 2015 and 2014 is included in the table below. | ||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||
2015 | 2014 | ||||||||||||||||||
Stock-based awards, beginning of period | 1,057,732 | 1,788,168 | |||||||||||||||||
Granted | 89,068 | 101,522 | |||||||||||||||||
Vested | (28,386 | ) | (34,365 | ) | |||||||||||||||
Stock-based awards, end of period | 1,118,414 | 1,855,325 | |||||||||||||||||
Summary of employee stock purchase plan activity | A summary of the activity under the Employee Stock Purchase Plan for the three months ended March 31, 2015 and 2014 is included in the table below. | ||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||
2015 | 2014 | ||||||||||||||||||
Outstanding and exercisable, beginning of period | 393,902 | 391,108 | |||||||||||||||||
Granted | 197,640 | 275,655 | |||||||||||||||||
Exercised | (33,046 | ) | (18,502 | ) | |||||||||||||||
Forfeited | (20,779 | ) | (22,426 | ) | |||||||||||||||
Expired | (158,946 | ) | (157,875 | ) | |||||||||||||||
Outstanding and exercisable, end of period | 378,771 | 467,960 | |||||||||||||||||
Defined_Benefit_Pension_Plan_T
Defined Benefit Pension Plan (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||
Net periodic benefit cost recorded related to the Company's pension plans | Net periodic benefit cost recorded related to the Company’s pension plan for the three months ended March 31, 2015 and 2014 is detailed in the following table. | |||||||
Three Months Ended March 31, | ||||||||
(Dollars in thousands) | 2015 | 2014 | ||||||
Service cost | $ | 21 | $ | 22 | ||||
Interest cost | 169 | 172 | ||||||
Amortization of net gain (loss) | (149 | ) | 117 | |||||
Amortization of prior service cost | 258 | (297 | ) | |||||
Total recognized in net periodic benefit cost | $ | 299 | $ | 14 | ||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair value and carrying values for notes and bonds payable, mortgage notes receivable, and notes receivable | The table below details the fair values and carrying values for notes and bonds payable, mortgage notes receivable and interest rate swaps at March 31, 2015 and December 31, 2014. | |||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||
(Dollars in millions) | Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
Notes and bonds payable (1) | $ | 1,444.60 | $ | 1,487.50 | $ | 1,403.70 | $ | 1,438.80 | ||||||||
Mortgage notes receivable (2) | $ | 1.9 | $ | 1.9 | $ | 1.9 | $ | 1.9 | ||||||||
Interest rate swaps (2) | $ | 0.7 | $ | 0.7 | $ | — | $ | — | ||||||||
______ | ||||||||||||||||
(1) Level 3 - Fair value derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. | ||||||||||||||||
(2) Level 2 - Fair value based on 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. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | Mar. 31, 2015 |
In Billions, unless otherwise specified | state |
sqft | |
property | |
Business Overview: | |
Gross investment amount, total | $3.30 |
Number of real estate properties | 199 |
Total number of company owned real estate properties | 198 |
Number of states that the Company owns real estate in, whole units | 30 |
Square footage of owned real estate properties | 14,300,000 |
Approximate square feet for which Nationwide property management services provided by company | 9,500,000 |
Real_Estate_Investments_Acquis
Real Estate Investments - Acquisitions (Details) (CALIFORNIA, Real Estate Acquisitions [Member], USD $) | 1 Months Ended |
In Millions, unless otherwise specified | Jan. 31, 2015 |
building | |
Business Acquisition [Line Items] | |
Purchase Price | $39.30 |
Number of medical office buildings in health system | 2 |
Percentage of medical office building leased | 97.00% |
Kaiser Permanente and Washington Hospital Healthcare System [Member] | |
Business Acquisition [Line Items] | |
Square Footage | 110,679 |
Percentage of property leased | 59.00% |
Real_Estate_Investments_Assets
Real Estate Investments - Assets Held for Sale (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
property | property | |
Acquisitions and Dispositions [Line Items] | ||
Number of properties held for sale | 3 | 2 |
Discontinued Operations [Member] | ||
Acquisitions and Dispositions [Line Items] | ||
Number of properties reclassified to held for sale | 1 | |
Impairments related to property held for sale | $3.30 | |
Number of properties held for sale | 2 | 2 |
Real_Estate_Investments_Discon
Real Estate Investments - Discontinued Operations and Assets Held for Sale - Balance Sheet (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Balance Sheet data (as of the period ended): | ||
Land | $187,951 | $183,060 |
Buildings, improvements and lease intangibles | 3,077,828 | 3,048,251 |
Personal property | 10,014 | 9,914 |
Real estate properties, Total | 3,297,169 | 3,258,279 |
Less accumulated depreciation | -723,393 | -700,671 |
Total real estate properties, net | 2,573,776 | 2,557,608 |
Other assets, net (including receivables) | 188,198 | 185,337 |
Assets held for sale and discontinued operations, net | 14,164 | 9,146 |
Accounts payable and accrued liabilities | 50,144 | 70,240 |
Other liabilities | 64,469 | 62,152 |
Liabilities of discontinued operations | 102 | 372 |
Discontinued Operations [Member] | ||
Balance Sheet data (as of the period ended): | ||
Land | 2,524 | 422 |
Buildings, improvements and lease intangibles | 21,513 | 12,822 |
Personal property | 21 | 13 |
Real estate properties, Total | 24,058 | 13,257 |
Less accumulated depreciation | -10,322 | -4,464 |
Total real estate properties, net | 13,736 | 8,793 |
Other assets, net (including receivables) | 428 | 353 |
Assets of discontinued operations, net | 428 | 353 |
Assets held for sale and discontinued operations, net | 14,164 | 9,146 |
Accounts payable and accrued liabilities | 93 | 86 |
Other liabilities | 9 | 286 |
Liabilities of discontinued operations | $102 | $372 |
Real_Estate_Investments_Discon1
Real Estate Investments - Discontinued Operations and Assets Held for Sale - Income Statement (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
property | property | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of properties held for sale | 3 | 2 | |
Revenues | |||
Rental income | $95,034 | $86,502 | |
Other Operating Income | 1,391 | 1,448 | |
Revenues | 96,456 | 90,571 | |
Expenses | |||
Property operating | 34,263 | 32,831 | |
General and administrative | 6,738 | 5,972 | |
Depreciation | 26,387 | 23,667 | |
Bad debts, net of recoveries | -207 | 47 | |
Total Expenses | 69,848 | 65,276 | |
Other Income (Expense) | |||
Interest and other income, net | 91 | 100 | |
Total other income (expense) | -21,559 | -17,818 | |
Discontinued Operations | |||
Income (loss) from discontinued operations | 333 | -89 | |
Impairments | -3,425 | ||
INCOME (LOSS) FROM DISCONTINUED OPERATIONS | 333 | -3,514 | |
Discontinued Operations [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of properties held for sale | 2 | 2 | |
Revenues | |||
Rental income | 341 | 1,585 | |
Other Operating Income | 0 | 1 | |
Revenues | 341 | 1,586 | |
Expenses | |||
Property operating | 29 | 1,113 | |
General and administrative | 0 | 7 | |
Depreciation | 0 | 555 | |
Bad debts, net of recoveries | -1 | 0 | |
Total Expenses | 28 | 1,675 | |
Other Income (Expense) | |||
Interest and other income, net | 20 | 0 | |
Total other income (expense) | 20 | 0 | |
Discontinued Operations | |||
Income (loss) from discontinued operations | 333 | -89 | |
Impairments | 0 | -3,425 | |
INCOME (LOSS) FROM DISCONTINUED OPERATIONS | $333 | ($3,514) |
Notes_and_Bonds_Payable_Detail
Notes and Bonds Payable (Details) (USD $) | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 3 Months Ended | |
Jan. 31, 2015 | Apr. 01, 2015 | Apr. 30, 2015 | 4-May-15 | Jun. 30, 2015 | Apr. 24, 2015 | |
Senior Notes [Member] | 5.45% Secured Note [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate (percent) | 5.45% | |||||
Amount of debt repaid | $15,000,000 | |||||
Debt repayment, accrued interest | 100,000 | |||||
Subsequent Event [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate (percent) | 3.97% | |||||
Subsequent Event [Member] | Senior Notes [Member] | 5.0% Secured Note [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate (percent) | 5.00% | |||||
Amount of debt repaid | 10,200,000 | |||||
Subsequent Event [Member] | Senior Notes [Member] | 3.875% Unsecured Senior Notes due 2025 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate (percent) | 3.88% | |||||
Debt discount | 200,000 | |||||
Effective interest rate (percent) | 3.89% | |||||
Debt issuance costs | 2,100,000 | |||||
Debt face amount | 250,000,000 | |||||
Subsequent Event [Member] | Senior Notes [Member] | Unsecured Senior Notes Due 2017 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt redemption price | 333,200,000 | |||||
Notes and bonds payable | 300,000,000 | |||||
Debt Redemption, accrued interest | 6,400,000 | |||||
Make-whole payment | 26,800,000 | |||||
Unaccreted discount and unamortized costs | 1,200,000 | |||||
Subsequent Event [Member] | Mortgages [Member] | 5.41% Mortgage Note Payable [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate (percent) | 5.41% | |||||
Amount of debt repaid | 16,300,000 | |||||
Debt repayment, accrued interest | 100,000 | |||||
Scenario, Forecast [Member] | Senior Notes [Member] | Unsecured Senior Notes Due 2017 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Loss on early extinguishment of debt | ($28,000,000) |
Derivative_Instruments_Details
Derivative Instruments (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||
Mar. 31, 2015 | Apr. 24, 2015 | Apr. 03, 2015 | Apr. 01, 2015 | |
swap_agreement | ||||
Interest Rate Swaps Classified as: | ||||
Interest rate cash flow hedge gain (loss) to be reclassified to interest expense during the next 12 months | ($200,000) | |||
Derivative termination value | 700,000 | |||
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Notional value | 125,000,000 | |||
Interest Rate Swaps Classified as: | ||||
Loss on forward starting interest rate swap agreements recognized in OCI | -723,000 | |||
Interest Rate Swap Liabilities [Member] | ||||
Interest Rate Swaps Classified as: | ||||
Gross derivative liabilities | -723,000 | |||
Derivative liability | -723,000 | |||
Subsequent Event [Member] | ||||
Interest Rate Swaps Classified as: | ||||
Number of swap agreements settled | 4 | |||
Unrealized loss on interest rate cash flow hedges in accumulated other comprehensive income | 1,700,000 | |||
Amortization period (years) | 10 years | |||
Effective interest rate (percent) | 3.97% | |||
Cash settlement of derivatives | 1,700,000 | |||
Subsequent Event [Member] | Forward Starting Swap [Member] | ||||
Derivative [Line Items] | ||||
Notional value | $37,500,000 | $62,500,000 | ||
Interest Rate Swaps Classified as: | ||||
Number of Forward Starting Swaps | 2 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 |
property | |||
Property, Plant and Equipment [Line Items] | |||
Land held for redevelopment | $21,376,000 | $17,054,000 | |
TENNESSEE | |||
Property, Plant and Equipment [Line Items] | |||
Number of redevelopment properties | 2 | ||
Redevelopment in process | 9,400,000 | ||
Land held for redevelopment | 4,300,000 | ||
Redevelopment budget | 47,800,000 | ||
ALABAMA | |||
Property, Plant and Equipment [Line Items] | |||
Redevelopment in process | 1,500,000 | ||
Redevelopment budget | $15,400,000 | ||
Scenario, Forecast [Member] | TENNESSEE | |||
Property, Plant and Equipment [Line Items] | |||
Number of redevelopment properties | 1 |
Stockholders_Equity_Reconcilia
Stockholders' Equity - Reconciliation of total stockholders' equity (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Increase (Decrease) in Stockholders' Equity [Rollforward] | ||
Net income | $5,382 | $3,963 |
Common Stock [Member] | ||
Increase (Decrease) in Stockholders' Equity [Rollforward] | ||
Balance at December 31, 2014 | 988 | |
Issuance of common stock | 12 | |
Stock-based compensation | 1 | |
Balance at March 31, 2015 | 1,001 | |
Additional Paid-In Capital [Member] | ||
Increase (Decrease) in Stockholders' Equity [Rollforward] | ||
Balance at December 31, 2014 | 2,389,830 | |
Issuance of common stock | 31,876 | |
Common stock redemptions | -201 | |
Stock-based compensation | 1,616 | |
Balance at March 31, 2015 | 2,423,121 | |
Accumulated Other Comprehensive Loss [Member] | ||
Increase (Decrease) in Stockholders' Equity [Rollforward] | ||
Balance at December 31, 2014 | -2,519 | |
Loss on forward starting interest rate swaps | -723 | |
Balance at March 31, 2015 | -3,242 | |
Cumulative Net Income Attributable to Common Stockholders [Member] | ||
Increase (Decrease) in Stockholders' Equity [Rollforward] | ||
Balance at December 31, 2014 | 840,249 | |
Net income | 5,382 | |
Balance at March 31, 2015 | 845,631 | |
Cumulative Dividends [Member] | ||
Increase (Decrease) in Stockholders' Equity [Rollforward] | ||
Balance at December 31, 2014 | -2,007,494 | |
Dividends to common stockholders ($0.60 per share) | -29,832 | |
Balance at March 31, 2015 | -2,037,326 | |
Total Stockholders' Equity [Member] | ||
Increase (Decrease) in Stockholders' Equity [Rollforward] | ||
Balance at December 31, 2014 | 1,221,054 | |
Issuance of common stock | 31,888 | |
Common stock redemptions | -201 | |
Stock-based compensation | 1,617 | |
Net income | 5,382 | |
Loss on forward starting interest rate swaps | -723 | |
Dividends to common stockholders ($0.60 per share) | -29,832 | |
Balance at March 31, 2015 | $1,229,185 |
Stockholders_Equity_Changes_in
Stockholders' Equity - Changes in accumulated other comprehensive income (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | ($2,519) | ||
Current-period other comprehensive income | -723 | -111 | |
Ending balance | -3,242 | ||
Forward-starting Interest Rate Swaps | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 0 | ||
Current-period other comprehensive income | -723 | ||
Ending balance | -723 | ||
Defined Benefit Pension Plans | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | -2,519 | ||
Ending balance | ($2,519) | ($2,519) |
Stockholders_Equity_Reconcilia1
Stockholders' Equity - Reconciliation of beginning and ending common stock outstanding (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of the beginning and ending common stock outstanding | ||
Balance, end of period | 100,087,000 | 98,828,000 |
Common Stock [Member] | ||
Reconciliation of the beginning and ending common stock outstanding | ||
Balance, beginning of period | 98,828,098 | 95,924,339 |
Issuance of common stock | 1,176,702 | 3,073,445 |
Nonvested share-based awards, net | 81,786 | -169,686 |
Balance, end of period | 100,086,586 | 98,828,098 |
Stockholders_Equity_Stock_Tran
Stockholders' Equity (Stock Transactions - Narrative) (Details) (USD $) | 3 Months Ended | 0 Months Ended | 1 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | 5-May-15 | Apr. 30, 2015 | 1-May-15 |
Class of Stock [Line Items] | |||||
Net proceeds from issuance of common stock | $31,910 | $374 | |||
Dividends per share paid to common stockholders (in dollars per share) | $0.30 | ||||
Dividends per share declared to common stockholders (in dollars per share) | $0.30 | $0.30 | |||
At The Market Equity Offering Program [Member] | |||||
Class of Stock [Line Items] | |||||
Issuance of common stock (shares) | 1,140,362 | ||||
Net proceeds from issuance of common stock | 31,200 | ||||
Number of investment banks in sales agreements | 4 | ||||
Shares authorized to be sold under the program | 9,000,000 | ||||
Subsequent Event [Member] | |||||
Class of Stock [Line Items] | |||||
Dividends per share declared to common stockholders (in dollars per share) | $0.30 | ||||
Subsequent Event [Member] | At The Market Equity Offering Program [Member] | |||||
Class of Stock [Line Items] | |||||
Issuance of common stock (shares) | 304,752 | ||||
Net proceeds from issuance of common stock | $8,300 | ||||
Number of authorized shares remaining under offering program | 936,525 | ||||
Minimum [Member] | At The Market Equity Offering Program [Member] | |||||
Class of Stock [Line Items] | |||||
Issuance of common stock (price per share) | $26.35 | ||||
Minimum [Member] | Subsequent Event [Member] | At The Market Equity Offering Program [Member] | |||||
Class of Stock [Line Items] | |||||
Issuance of common stock (price per share) | $27.04 | ||||
Maximum [Member] | At The Market Equity Offering Program [Member] | |||||
Class of Stock [Line Items] | |||||
Issuance of common stock (price per share) | $29.15 | ||||
Maximum [Member] | Subsequent Event [Member] | At The Market Equity Offering Program [Member] | |||||
Class of Stock [Line Items] | |||||
Issuance of common stock (price per share) | $28 | ||||
Weighted Average [Member] | At The Market Equity Offering Program [Member] | |||||
Class of Stock [Line Items] | |||||
Issuance of common stock (price per share) | $27.78 | ||||
Weighted Average [Member] | Subsequent Event [Member] | At The Market Equity Offering Program [Member] | |||||
Class of Stock [Line Items] | |||||
Issuance of common stock (price per share) | $27.77 |
Stockholders_Equity_Computatio
Stockholders' Equity - Computation of basic and diluted earnings (loss) per common share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Weighted average Common Shares outstanding | ||
Weighted average Common Shares outstanding | 99,467,804 | 96,009,788 |
Nonvested shares | -1,107,846 | -1,857,536 |
Weighted average Common Shares—Basic | 98,359,958 | 94,152,252 |
Dilutive effect of restricted stock | 615,511 | 1,299,287 |
Dilutive effect of employee stock purchase plan | 161,428 | 133,893 |
Weighted average Common Shares outstanding—Diluted | 99,136,897 | 95,585,432 |
Net Income (Loss) | ||
Income from continuing operations | $5,049 | $7,477 |
Noncontrolling interests’ share in net loss | -111 | |
Income from continuing operations attributable to common stockholders | 5,049 | 7,366 |
Discontinued operations | 333 | -3,514 |
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $5,382 | $3,852 |
Basic Earnings (Loss) Per Common Share | ||
Income from continuing operations (in dollars per share) | $0.05 | $0.08 |
Discontinued operations (in dollars per share) | ($0.04) | |
Net income (loss) attributable to common stockholders (in dollars per share) | $0.05 | $0.04 |
Diluted Earnings (Loss) Per Common Share | ||
Income from continuing operations (in dollars per share) | $0.05 | $0.08 |
Discontinued operations (in dollars per share) | ($0.04) | |
Net income attributable to common stockholders | $0.05 | $0.04 |
Stockholders_Equity_Summary_of
Stockholders' Equity - Summary of activity under stock-based incentive plans (Details) (Stock Incentive Plan [Member], Restricted Stock [Member]) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Stock Incentive Plan [Member] | Restricted Stock [Member] | ||
Summary of the activity under the incentive plans | ||
Stock-based awards, beginning of period (shares) | 1,057,732 | 1,788,168 |
Granted (shares) | 89,068 | 101,522 |
Vested (shares) | -28,386 | -34,365 |
Stock-based awards, end of period (shares) | 1,118,414 | 1,855,325 |
Shares withheld to pay estimated withholding taxes | 7,282 | 9,974 |
Stockholders_Equity_Summary_of1
Stockholders' Equity - Summary of activity under Employee Stock Purchase Plan (Details) (Employee Stock Purchase Plan [Member], USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Summary of the Employee Stock Purchase Plan activity | ||
Outstanding and exercisable, beginning of period (shares) | 393,902 | 391,108 |
Granted (shares) | 197,640 | 275,655 |
Exercised (shares) | -33,046 | -18,502 |
Forfeited (shares) | -20,779 | -22,426 |
Expired (shares) | -158,946 | -157,875 |
Outstanding and exercisable, end of period (shares) | 378,771 | 467,960 |
General and Administrative Expense | ||
Summary of the Employee Stock Purchase Plan activity | ||
Share-based compensation expense | 0.2 |
Defined_Benefit_Pension_Plan_D
Defined Benefit Pension Plan (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Jun. 30, 2015 | 5-May-15 | |
Officer | ||||
Subsequent Event [Line Items] | ||||
Number of founding officers eligible for retirement benefit plan | 3 | |||
Maximum annual benefits payable under the Executive Retirement Plan, frozen subject to cost-of-living adjustments | $900,000 | |||
Net periodic benefit cost recorded related to the Company's pension plans | ||||
Service costs | 21,000 | 22,000 | ||
Interest costs | 169,000 | 172,000 | ||
Amortization of net gain (loss) | -149,000 | 117,000 | ||
Amortization of prior service cost | 258,000 | -297,000 | ||
Total recognized in net periodic benefit cost | 299,000 | 14,000 | ||
Subsequent Activity [Abstract] | ||||
Total benefit obligation | 16,800,000 | |||
Scenario, Forecast [Member] | ||||
Subsequent Activity [Abstract] | ||||
Total benefit obligation | 19,600,000 | |||
Current period charge | 5,300,000 | |||
Accumulated Other Comprehensive Income (Loss) [Member] | Scenario, Forecast [Member] | ||||
Subsequent Activity [Abstract] | ||||
Current period charge | 2,500,000 | |||
Chief Executive Officer [Member] | Subsequent Event [Member] | ||||
Subsequent Activity [Abstract] | ||||
Lump sum benefit obligation at termination of plan | $14,400,000 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Carrying Value [Member] | ||||
Derivative [Line Items] | ||||
Notes and bonds payable, Fair value | $1,444.60 | [1] | $1,403.70 | [1] |
Mortgage notes receivable, Fair value | 1.9 | [2] | 1.9 | [2] |
Carrying Value [Member] | Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Interest rate swaps, Fair Value | 0.7 | [2] | 0 | [2] |
Fair Value [Member] | ||||
Derivative [Line Items] | ||||
Notes and bonds payable, Fair value | 1,487.50 | [1] | 1,438.80 | [1] |
Mortgage notes receivable, Fair value | 1.9 | [2] | 1.9 | [2] |
Fair Value [Member] | Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Interest rate swaps, Fair Value | $0.70 | [2] | $0 | [2] |
[1] | Level 3 - Fair value derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. | |||
[2] | Level 2 - Fair value based on 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. |