Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 02, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | LEXINGTON REALTY TRUST | |
Entity Central Index Key | 910,108 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 235,020,699 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period Ended Date | Mar. 31, 2016 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Assets: | ||
Real estate, at cost | $ 3,773,333 | $ 3,789,711 |
Real estate - intangible assets | 692,654 | 692,778 |
Investments in real estate under construction | 115,297 | 95,402 |
Real estate, gross | 4,581,284 | 4,577,891 |
Less: accumulated depreciation and amortization | 1,201,220 | 1,179,969 |
Real estate, net | 3,380,064 | 3,397,922 |
Assets held for sale | 10,147 | 24,425 |
Cash and cash equivalents | 80,894 | 93,249 |
Restricted cash | 42,830 | 10,637 |
Investment in and advances to non-consolidated entities | 44,926 | 31,054 |
Deferred expenses, net | 39,839 | 42,000 |
Loans receivable, net | 95,770 | 95,871 |
Rent receivable – current | 20,094 | 7,193 |
Rent receivable – deferred | 93,320 | 87,547 |
Other assets | 18,176 | 18,505 |
Total assets | 3,826,060 | 3,808,403 |
Liabilities: | ||
Mortgages and notes payable, net | 922,320 | 872,643 |
Revolving credit facility borrowings | 147,000 | 177,000 |
Term loans payable, net | 500,330 | 500,076 |
Senior notes payable, net | 493,735 | 493,526 |
Convertible guaranteed notes payable, net | 12,192 | 12,126 |
Trust preferred securities, net | 127,021 | 126,996 |
Dividends payable | 45,673 | 45,440 |
Liabilities held for sale | 0 | 8,405 |
Accounts payable and other liabilities | 35,688 | 41,479 |
Accrued interest payable | 14,746 | 8,851 |
Deferred revenue - including below market leases, net | 44,026 | 42,524 |
Prepaid rent | 19,783 | 16,806 |
Total liabilities | $ 2,362,514 | $ 2,345,872 |
Commitments and contingencies | ||
Equity: | ||
Common shares, par value $0.0001 per share; authorized 400,000,000 shares, 235,009,739 and 234,575,225 shares issued and outstanding in 2016 and 2015, respectively | $ 24 | $ 23 |
Additional paid-in-capital | 2,773,788 | 2,776,837 |
Accumulated distributions in excess of net income | (1,420,554) | (1,428,908) |
Accumulated other comprehensive loss | (6,564) | (1,939) |
Total shareholders’ equity | 1,440,710 | 1,440,029 |
Noncontrolling interests | 22,836 | 22,502 |
Total equity | 1,463,546 | 1,462,531 |
Total liabilities and equity | 3,826,060 | 3,808,403 |
Series C [Member] | Cumulative Convertible [Member] | ||
Equity: | ||
Series C Cumulative Convertible Preferred, liquidation preference $96,770; 1,935,400 shares issued and outstanding | $ 94,016 | $ 94,016 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Equity: | ||
Preferred shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred shares, authorized shares (in shares) | 100,000,000 | 100,000,000 |
Common shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common shares, authorized shares (in shares) | 400,000,000 | 400,000,000 |
Common shares, shares issued (in shares) | 235,009,739 | 234,575,225 |
Common shares, outstanding (in shares) | 235,009,739 | 234,575,225 |
Series C [Member] | Cumulative Convertible [Member] | ||
Equity: | ||
Preferred shares, liquidation preference | $ 96,770 | $ 96,770 |
Preferred shares, shares issued (in shares) | 1,935,400 | 1,935,400 |
Preferred shares, shares outstanding (in shares) | 1,935,400 | 1,935,400 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Gross revenues: | ||
Rental | $ 103,559 | $ 100,016 |
Tenant reimbursements | 8,057 | 8,426 |
Total gross revenues | 111,616 | 108,442 |
Expense applicable to revenues: | ||
Depreciation and amortization | (43,127) | (40,274) |
Property operating | (12,078) | (16,582) |
General and administrative | (7,775) | (7,822) |
Non-operating income | 2,867 | 2,614 |
Interest and amortization expense | (22,893) | (23,003) |
Debt satisfaction gains (charges), net | (162) | 10,375 |
Impairment charges | 0 | (1,139) |
Gains on sales of properties | 17,015 | 148 |
Income before provision for income taxes, equity in earnings of non-consolidated entities and discontinued operations | 45,463 | 32,759 |
Provision for income taxes | (413) | (441) |
Equity in earnings of non-consolidated entities | 5,742 | 366 |
Income from continuing operations | 50,792 | 32,684 |
Discontinued operations: | ||
Income from discontinued operations | 0 | 110 |
Gain on sale of property | 0 | 1,577 |
Total discontinued operations | 0 | 1,687 |
Net income | 50,792 | 34,371 |
Less net income attributable to noncontrolling interests | (1,023) | (866) |
Net income attributable to Lexington Realty Trust shareholders | 49,769 | 33,505 |
Allocation to participating securities | (90) | (104) |
Net income attributable to common shareholders | $ 48,107 | $ 31,829 |
Income per common share – basic: | ||
Income (loss) from continuing operations (in USD per share) | $ 0.21 | $ 0.13 |
Income (loss) from discontinued operations (in USD per share) | 0 | 0.01 |
Net income (loss) attributable to common shareholders (USD per share) | $ 0.21 | $ 0.14 |
Weighted-average common shares outstanding – basic (in shares) | 232,642,803 | 232,525,675 |
Income per common share – diluted: | ||
Income from continuing operations (USD per share) | $ 0.21 | $ 0.13 |
Income (loss) from discontinued operations (USD per share) | 0 | 0.01 |
Net income (loss) attributable to common shareholders (USD per share) | $ 0.21 | $ 0.14 |
Weighted-average common shares outstanding – diluted (in shares) | 238,885,171 | 232,957,265 |
Amounts attributable to common shareholders: | ||
Income from continuing operations | $ 48,107 | $ 30,142 |
Income from discontinued operations | 0 | 1,687 |
Net income attributable to common shareholders | 48,107 | 31,829 |
Series C [Member] | ||
Discontinued operations: | ||
Dividends attributable to preferred shares – Series C | $ (1,572) | $ (1,572) |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 50,792 | $ 34,371 |
Other comprehensive loss: | ||
Change in unrealized loss on interest rate swaps, net | (4,625) | (4,096) |
Other comprehensive loss | (4,625) | (4,096) |
Comprehensive income | 46,167 | 30,275 |
Comprehensive income attributable to noncontrolling interests | (1,023) | (866) |
Comprehensive income attributable to Lexington Realty Trust shareholders | $ 45,144 | $ 29,409 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Preferred Shares [Member] | Common Stock [Member] | Additional Paid-in-Capital [Member] | Accumulated Distributions in Excess of Net Income [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Non-controlling Interests [Member] |
Beginning Balance at Dec. 31, 2014 | $ 1,508,920 | $ 94,016 | $ 23 | $ 2,763,374 | $ (1,372,051) | $ 404 | $ 23,154 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common shares upon conversion of convertible notes | 652 | 652 | |||||
Issuance of common shares and deferred compensation amortization, net | 8,815 | 8,815 | |||||
Dividends/distributions | (42,183) | (41,383) | (800) | ||||
Net income | 34,371 | 33,505 | 866 | ||||
Other comprehensive loss | (4,096) | (4,096) | |||||
Ending Balance at Mar. 31, 2015 | 1,506,479 | 94,016 | 23 | 2,772,841 | (1,379,929) | (3,692) | 23,220 |
Beginning Balance at Dec. 31, 2015 | 1,462,531 | 94,016 | 23 | 2,776,837 | (1,428,908) | (1,939) | 22,502 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Repurchase of common shares | (8,973) | (8,973) | |||||
Issuance of common shares and deferred compensation amortization, net | 5,925 | 1 | 5,924 | ||||
Dividends/distributions | (42,104) | (41,415) | (689) | ||||
Net income | 50,792 | 49,769 | 1,023 | ||||
Other comprehensive loss | (4,625) | (4,625) | |||||
Ending Balance at Mar. 31, 2016 | $ 1,463,546 | $ 94,016 | $ 24 | $ 2,773,788 | $ (1,420,554) | $ (6,564) | $ 22,836 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Cash Flows [Abstract] | ||
Net cash provided by operating activities: | $ 59,221 | $ 57,921 |
Cash flows from investing activities: | ||
Acquisition of real estate, including intangible assets | (27,197) | (197,275) |
Investment in real estate under construction | (20,812) | (30,778) |
Capital expenditures | (1,325) | (1,717) |
Net proceeds from sale of properties | 57,898 | 4,433 |
Principal payments received on loans receivable | 70 | 64 |
Investment in loans receivable | 0 | (83) |
Investments in non-consolidated entities | (14,977) | (3,032) |
Distributions from non-consolidated entities in excess of accumulated earnings | 6,850 | 221 |
Increase in deferred leasing costs | (1,230) | (1,420) |
Change in escrow deposits and restricted cash | (32,193) | (1,540) |
Real estate deposits, net | (65) | (1,999) |
Net cash used in investing activities | (32,981) | (233,126) |
Cash flows from financing activities: | ||
Dividends to common and preferred shareholders | (41,182) | (41,045) |
Principal amortization payments | (7,120) | (13,867) |
Principal payments on debt, excluding normal amortization | (8,130) | (83,320) |
Change in revolving credit facility borrowings, net | (30,000) | 93,000 |
Payment of developer liabilities | (3,851) | 0 |
Change in deferred financing costs | 99 | (2,444) |
Proceeds of mortgages and notes payable | 57,500 | 80,843 |
Cash distributions to noncontrolling interests | (689) | (800) |
Issuance of common shares, net | 3,751 | 6,582 |
Repurchase of common shares | (8,973) | 0 |
Net cash provided by (used in) financing activities | (38,595) | 38,949 |
Change in cash and cash equivalents | (12,355) | (136,256) |
Cash and cash equivalents, at beginning of period | 93,249 | 191,077 |
Cash and cash equivalents, at end of period | $ 80,894 | $ 54,821 |
The Company and Financial State
The Company and Financial Statement Presentation | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company and Financial Statement Presentation | The Company and Financial Statement Presentation Lexington Realty Trust (together with its consolidated subsidiaries, except when the context only applies to the parent entity, the “Company”) is a Maryland real estate investment trust (“REIT”) that owns a diversified portfolio of equity and debt investments in single-tenant commercial properties and land. A majority of these properties and all land interests are subject to net or similar leases, where the tenant bears all or substantially all of the costs, including cost increases, for real estate taxes, utilities, insurance and ordinary repairs. However, certain leases provide that the landlord is responsible for certain operating expenses. As of March 31, 2016 , the Company had ownership interests in approximately 215 consolidated real estate properties, located in 40 states. The properties in which the Company has an interest are leased to tenants in various industries, including service, automotive, technology, transportation/logistics and finance/insurance. The Company believes it has qualified as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”). Accordingly, the Company will not be subject to federal income tax, provided that distributions to its shareholders equal at least the amount of its REIT taxable income as defined under the Code. The Company is permitted to participate in certain activities historically prohibited for REITs in order to maintain its qualification as a REIT, so long as these activities are conducted in entities which elect to be treated as taxable REIT subsidiaries (“TRS”) under the Code. As such, the TRS are subject to federal income taxes on the income from these activities. The Company conducts its operations either directly or indirectly through (1) property owner subsidiaries and lender subsidiaries, which are single purpose entities, (2) an operating partnership, Lepercq Corporate Income Fund L.P. (“LCIF”), in which the Company is the sole unit holder of the general partner and the sole unit holder of the limited partner that holds a majority of the limited partner interests, (3) a wholly-owned TRS, and (4) investments in joint ventures. References to “OP units” refer to units of limited partner interests in LCIF. Property owner subsidiaries are landlords under leases for properties in which the Company has an interest and/or borrowers under loan agreements secured by properties in which the Company has an investment and lender subsidiaries are lenders under loan agreements where the Company made an investment in a loan asset, but in all cases are separate and distinct legal entities. Each property owner subsidiary is a separate legal entity that maintains separate books and records. The assets and credit of each property owner subsidiary with a property subject to a mortgage loan are not available to creditors to satisfy the debt and other obligations of any other person, including any other property owner subsidiary or any other affiliate. The financial statements contained in this Quarterly Report on Form 10-Q (this “Quarterly Report”) for the three months ended March 31, 2016 have been prepared by the Company in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all information and footnotes required by GAAP for complete financial statements. However, in the opinion of management, the interim financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results of the periods presented. Interim results are not necessarily indicative of the results that may be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in the Company's Form 10-K for the year ended December 31, 2015 filed with the SEC on February 25, 2016 (“Annual Report”). Basis of Presentation and Consolidation. The Company's unaudited condensed consolidated financial statements are prepared on the accrual basis of accounting in accordance with GAAP. The financial statements reflect the accounts of the Company and its consolidated subsidiaries. On January 1, 2016, the Company adopted Accounting Standards Update (“ASU”) 2015-02 (Topic 810), Amendments to the Consolidation Analysis, modifying the analysis it must perform to determine whether it should consolidate certain types of legal entities. The guidance does not amend the existing disclosure requirements for variable interest entities (“VIEs”) or voting interest model entities. The adoption of this guidance had no impact to consolidated entities included in the Company's unaudited consolidated financial statements as all entities previously consolidated are still consolidated and all entities previously not consolidated are still not consolidated. However, under the revised guidance, the Company determined that certain affiliated limited partnerships and similar entities are now considered, by definition, VIEs. The entities were determined to be VIEs as the unaffiliated partners/members did not have simple majority substantive kick-out rights or participating rights. The Company determined that it was the primary beneficiary of certain VIEs as it has a controlling financial interest in the entities. LCIF, which continues to be consolidated and in which the Company has an approximate 96% interest, was determined to be a VIE under this new guidance. The Company has a joint venture limited partnership with a developer which is a consolidated VIE. The joint venture is developing an office campus in Lake Jackson, Texas. The Company currently has a 100% interest in the joint venture; however, the developer has certain protective rights, and, upon project completion, the developer will be credited with a notional capital account for a profit interest and certain cost savings. As of March 31, 2016 and December 31, 2015 , the joint venture had $63,278 and $62,353 , respectively, in real estate under construction. The assets of the VIEs are available to satisfy its respective liabilities. Except for a $15,000 mortgage loan, the VIEs mortgages and notes payable are non-recourse to the Company. Below is a summary of selected financial data of consolidated VIEs for which we are the primary beneficiary included in the consolidated balance sheets as of March 31, 2016 and December 31, 2015 : March 31, 2016 December 31, 2015 Real estate, net $ 1,049,238 $ 1,072,463 Total assets $ 1,203,328 $ 1,192,944 Mortgages and notes payable, net $ 431,351 $ 431,599 Total liabilities $ 447,277 $ 448,057 Use of Estimates. Management has made a number of significant estimates and assumptions to prepare these unaudited condensed consolidated financial statements in conformity with GAAP, including, among others, those relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. These estimates and assumptions are based on management's best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors. Management adjusts such estimates when facts and circumstances dictate. The most significant estimates made include the recoverability of accounts receivable, the allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed, the determination of VIEs and which entities should be consolidated, the determination of impairment of long-lived assets, loans receivable and equity method investments, the valuation of derivative financial instruments, the valuation of compensation plans and the useful lives of long-lived assets. Actual results could differ materially from those estimates. Fair Value Measurements. The Company follows the guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, as amended (“Topic 820”), to determine the fair value of financial and non-financial instruments. Topic 820 defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements. Topic 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 - observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 - unobservable inputs, which are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considering counterparty credit risk. The Company has formally elected to apply the portfolio exception within Topic 820 with respect to measuring counterparty risk for all of its derivative transactions subject to master netting arrangements. Acquisition, Development and Construction Arrangements . The Company evaluates loans receivable where the Company participates in residual profits through loan provisions or other contracts to ascertain whether the Company has the same risks and rewards as an owner or a joint venture partner. Where the Company concludes that such arrangements are more appropriately treated as an investment in real estate, the Company reflects such loan receivable as an equity investment in real estate under construction in the unaudited condensed consolidated balance sheets. In these cases, no interest income is recorded on the loan receivable and the Company capitalizes interest during the construction period. In arrangements where the Company engages a developer to construct a property or provides funds to a tenant to develop a property, the Company will capitalize the funds provided to the developer/tenant and internal costs of interest and real estate taxes, if applicable, during the construction period. Restricted Cash . Restricted cash is comprised primarily of cash balances held with Section 1031 exchange intermediaries and escrow balances held by lenders. At March 31, 2016 , $29,457 was held with a Section 1031 exchange intermediary that was released subsequent to March 31, 2016 . Reclassifications. Certain amounts included in the 2015 unaudited condensed consolidated financial statements have been reclassified to conform to the 2016 presentation. The Company adopted ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, during the three months ended March 31, 2016. ASU 2015-03 amends current presentation guidance by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. Prior to the issuance of ASU 2015-03, debt issuance costs were required to be presented as an asset in the balance sheet. As shown in the table below and pursuant to the guidance in ASU 2015-03, the Company has reclassified unamortized debt issuance costs associated with certain debt obligations in the Company's previously reported consolidated balance sheet as of December 31, 2015 as follows: As previously reported December 31, 2015 Reclassifications As adjusted December 31, 2015 Deferred expenses, net $ 63,832 $ (21,832 ) $ 42,000 Mortgages and notes payable, net 882,952 (10,309 ) 872,643 Term loans payable, net 505,000 (4,924 ) 500,076 Senior notes payable, net 497,947 (4,421 ) 493,526 Convertible guaranteed notes payable, net 12,180 (54 ) 12,126 Trust preferred securities, net 129,120 (2,124 ) 126,996 Recently Issued Accounting Guidance. In April 2014, the FASB issued ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which changes the criteria for reporting discontinued operations and improves financial statement disclosures. Under this guidance, only disposals representing a strategic shift in operations that have a major effect on an organization's operations and financial results should be presented as discontinued operations. The Company adopted this guidance effective January 1, 2015. The guidance requires the Company to continue to classify any property disposal or property classified as held for sale as of December 31, 2014 as discontinued operations prospectively. Therefore, the revenues and expenses related to these properties are presented as discontinued operations as of March 31, 2015. The Company did not classify any additional properties as discontinued operations subsequent to December 31, 2014, as the dispositions did not represent a strategic shift in operations. The implementation of this guidance did not have a material impact on the Company's financial position, results of operations or cash flows. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which amends the guidance for revenue recognition to eliminate the industry-specific revenue recognition guidance and replace it with a principle-based approach for determining revenue recognition. The effective date of the new guidance was updated by ASU 2015-14 and is effective for reporting periods beginning after December 15, 2017. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies the implementation guidance on principal versus agent considerations. The Company is currently evaluating the impact of the adoption of the new guidance on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize a right of use asset and related lease liability for those leases classified as operating leases at the commencement date and have lease terms of more than 12 months. The accounting applied to lessors under this new guidance is largely unchanged from prior guidance. Lessors in most cases will continue to record operating leases as operating leases and recognize lease income from those leases generally on a straight-line basis over the lease term. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and interim periods within those years, and requires a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently evaluating the impact of the adoption of the new guidance on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation-Improvements to Employee Share-Based Payment Accounting (Topic 718), which involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period, however early adoption is permitted. The Company is currently evaluating the impact of the adoption of the new guidance on its consolidated financial statements. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share A portion of the Company's non-vested share-based payment awards are considered participating securities and as such, the Company is required to use the two-class method for the computation of basic and diluted earnings per share. Under the two-class computation method, net losses are not allocated to participating securities unless the holder of the security has a contractual obligation to share in the losses. The non-vested share-based payment awards are not allocated losses as the awards do not have a contractual obligation to share in losses of the Company. The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for the three months ended March 31, 2016 and 2015 : Three months ended March 31, 2016 2015 BASIC Income from continuing operations attributable to common shareholders $ 48,107 $ 30,142 Income from discontinued operations attributable to common shareholders — 1,687 Net income attributable to common shareholders $ 48,107 $ 31,829 Weighted-average number of common shares outstanding 232,642,803 232,525,675 Income per common share: Income from continuing operations $ 0.21 $ 0.13 Income from discontinued operations — 0.01 Net income attributable to common shareholders $ 0.21 $ 0.14 DILUTED Income from continuing operations attributable to common shareholders - basic $ 48,107 $ 30,142 Impact of assumed conversions 1,058 — Income from continuing operations attributable to common shareholders 49,165 30,142 Income from discontinued operations attributable to common shareholders - basic — 1,687 Impact of assumed conversions — — Income from discontinued operations attributable to common shareholders — 1,687 Net income attributable to common shareholders $ 49,165 $ 31,829 Weighted-average common shares outstanding - basic 232,642,803 232,525,675 Effect of dilutive securities: Share options 132,191 431,590 6.00% Convertible Guaranteed Notes 1,941,237 — Nonvested common shares 348,748 — OP Units 3,820,192 — Weighted-average common shares outstanding 238,885,171 232,957,265 Income per common share: Income from continuing operations $ 0.21 $ 0.13 Income from discontinued operations — 0.01 Net income attributable to common shareholders $ 0.21 $ 0.14 For per common share amounts, all incremental shares are considered anti-dilutive for periods that have a loss from continuing operations attributable to common shareholders. In addition, other common share equivalents may be anti-dilutive in certain periods. |
Investments in Real Estate and
Investments in Real Estate and Real Estate Under Construction | 3 Months Ended |
Mar. 31, 2016 | |
Real Estate [Abstract] | |
Investments in Real Estate and Real Estate Under Construction | Investments in Real Estate and Real Estate Under Construction The Company completed the following acquisition during the three months ended March 31, 2016 : Property Type Location Acquisition Date Initial Cost Basis Lease Expiration Land and Land Estate Building and Improvements Lease in-place Value Intangible Industrial Detroit, MI January 2016 $ 29,697 10/2035 $ 1,133 $ 25,009 $ 3,555 The Company recognized aggregate transaction costs of $146 and $468 for the three months ended March 31, 2016 and 2015 , respectively, which are included as property operating expenses within the Company's unaudited condensed consolidated statements of operations. The Company is engaged in various forms of build-to-suit development activities. The Company, through lender subsidiaries and property owner subsidiaries, may enter into the following acquisition, development and construction arrangements: (1) lend funds to construct build-to-suit projects subject to a single-tenant lease with an agreement to purchase the properties upon completion of construction and commencement of a single-tenant lease, (2) hire developers to construct built-to-suit projects on owned properties leased to single tenants, (3) fund the construction of build-to-suit projects on owned properties pursuant to the terms in single-tenant lease agreements or (4) enter into purchase and sale agreements with developers to acquire single-tenant build-to-suit properties upon completion. As of March 31, 2016 , the Company had the following development arrangements outstanding: Location Property Type Square Feet Expected Maximum Commitment/Contribution Lease Term (Years) Estimated Completion/Acquisition Date Anderson, SC Industrial 1,325,000 $ 70,012 20 2Q 16 Lake Jackson, TX (1) Office 664,000 166,164 20 4Q 16 Charlotte, NC Office 201,000 62,445 15 1Q 17 2,190,000 $ 298,621 (1) Joint venture arrangement with developer. The Company currently has a 100% interest in the joint venture. As of March 31, 2016 and December 31, 2015 , the Company's aggregate investment in development arrangements was $115,297 and $95,402 , respectively, which included $3,734 and $2,726 of capitalized interest, respectively, and is presented as investments in real estate under construction in the accompanying unaudited condensed consolidated balance sheets. The Company can give no assurances that any of these development arrangements will be consummated or, if consummated, will perform to the Company's expectations. |
Property Dispositions, Disconti
Property Dispositions, Discontinued Operations and Real Estate Impairment | 3 Months Ended |
Mar. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Property Dispositions, Discontinued Operations and Real Estate Impairment | Property Dispositions, Discontinued Operations and Real Estate Impairment During the three months ended March 31, 2016 , the Company disposed of its interests in certain properties to unrelated third parties for an aggregate gross sales price of $58,225 and a vacant parcel of land for a gross sales price of $400 . During the three months ended March 31, 2015 , the Company disposed of its interest in an office property to an unrelated third party for a gross sales price of $4,950 , which was held for sale at December 31, 2014, and conveyed two office properties along with their escrow deposits in satisfaction of a $30,293 non-recourse secured mortgage loan. In addition, during the three months ended March 31, 2015, the Company disposed of a vacant retail property, with a zero basis, upon the expiration of the related ground lease. During the three months ended March 31, 2016 and 2015 , the Company recognized aggregate gains on sales of properties of $17,015 and $1,725 , respectively. In addition, during the three months ended March 31, 2016 and 2015 , the Company recognized aggregate debt satisfaction gains (charges), net of $(162) and $10,466 , respectively, relating to disposed properties. The results of operations for properties disposed of in 2016 and 2015, that were not classified as held for sale as of December 31, 2014, are included within continuing operations in the unaudited condensed consolidated financial statements in accordance with recent guidance issued by the FASB. As of March 31, 2016 , the Company had one property classified as held for sale. Assets and liabilities of held for sale properties as of March 31, 2016 and December 31, 2015 consisted of the following: March 31, 2016 December 31, 2015 Assets: Real estate, at cost $ 6,011 $ 16,590 Real estate, intangible assets 5,589 10,786 Accumulated depreciation and amortization (2,077 ) (4,069 ) Rent receivable - deferred 624 1,118 $ 10,147 $ 24,425 Liabilities: Mortgage payable $ — $ 8,373 Other — 32 $ — $ 8,405 The Company assesses on a regular basis whether there are any indicators that the carrying value of its real estate assets may be impaired. Potential indicators may include an increase in vacancy at a property, tenant financial instability and the potential sale or transfer of the property in the near future. An asset is determined to be impaired if the asset's carrying value is in excess of its estimated fair value. During the three months ended March 31, 2015, the Company recognized impairment charges of $1,139 in continuing operations. The Company determined that the expected undiscounted cash flows based upon the revised estimated holding periods of certain assets were below the current carrying values. |
Loans Receivable
Loans Receivable | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Loans Receivable | Loans Receivable As of March 31, 2016 and December 31, 2015 , the Company's loans receivable were comprised primarily of mortgage loans on real estate. The following is a summary of our loans receivable as of March 31, 2016 and December 31, 2015 : Loan carrying-value (1) Loan 3/31/2016 12/31/2015 Interest Rate Maturity Date Kennewick, WA $ 85,554 $ 85,505 9.00 % 05/2022 Oklahoma City, OK (2) 8,420 8,501 11.50 % 03/2016 Other 1,796 1,865 8.00 % 2021-2022 $ 95,770 $ 95,871 (1) Loan carrying value includes accrued interest and is net of origination costs, if any. (2) In June 2015, the Company loaned a tenant-in-common $8,420 . The loan is secured by the tenant-in-common's interest in an office property, in which the Company has a 40% interest. The loan was in default as of March 31, 2016. The Company has one type of financing receivable: loans receivable secured by interests in commercial real estate. The Company determined that its financing receivables operated within one portfolio segment as they were within the same industry and used the same impairment methodology. In addition, the Company assesses all financing receivables for impairment, when warranted, based on an individual analysis of each receivable. The Company's financing receivables operate within one class of financing receivables as these assets (1) are collateralized by commercial real estate and (2) similar metrics are used to monitor the risk and performance of these assets. The Company's management uses credit quality indicators to monitor financing receivables such as quality of collateral, the underlying tenant's credit rating and collection experience. As of March 31, 2016 , the financing receivables were performing as anticipated and there were no significant delinquent amounts outstanding, with the exception of the maturity default of the borrower of the Oklahoma City, Oklahoma loan. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following tables present the Company's assets and liabilities measured at fair value on a recurring and non-recurring basis as of March 31, 2016 and December 31, 2015 , aggregated by the level in the fair value hierarchy within which those measurements fall: Balance Fair Value Measurements Using Description March 31, 2016 (Level 1) (Level 2) (Level 3) Interest rate swap liabilities $ (6,564 ) $ — $ (6,564 ) $ — Balance Fair Value Measurements Using Description December 31, 2015 (Level 1) (Level 2) (Level 3) Interest rate swap assets $ 4 $ — $ 4 $ — Impaired real estate assets* $ 3,015 $ — $ — $ 3,015 Interest rate swap liabilities $ (1,943 ) $ — $ (1,943 ) $ — *Represents a non-recurring fair value measurement. The table below sets forth the carrying amounts and estimated fair values of the Company's financial instruments as of March 31, 2016 and December 31, 2015 . As of March 31, 2016 As of December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Assets Loans Receivable $ 95,770 $ 101,010 $ 95,871 $ 103,014 Liabilities Debt $ 2,202,598 $ 2,198,030 $ 2,182,367 $ 2,164,571 The majority of the inputs used to value the Company's interest rate swaps fall within Level 2 of the fair value hierarchy, such as observable market interest rate curves; however, the credit valuation associated with the interest rate swaps utilizes Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. As of March 31, 2016 and December 31, 2015 , the Company determined that the credit valuation adjustment relative to the overall fair value of the interest rate swaps was not significant. As a result, the interest rate swaps have been classified in Level 2 of the fair value hierarchy. The Company estimates the fair value of its real estate assets, including non-consolidated real estate assets, by using income and market valuation techniques. The Company may estimate fair values using market information such as broker opinions of value, recent sales data for similar assets or discounted cash flow models, which primarily rely on Level 3 inputs. The cash flow models include estimated cash inflows and outflows over a specified holding period. These cash flows may include contractual rental revenues, projected future rental revenues and expenses and forecasted tenant improvements and lease commissions based upon market conditions determined through discussion with local real estate professionals, experience the Company has with its other owned properties in such markets and expectations for growth. Capitalization rates and discount rates utilized in these models are estimated by management based upon rates that management believes to be within a reasonable range of current market rates for the respective properties based upon an analysis of factors such as property and tenant quality, geographical location and local supply and demand observations. To the extent the Company under estimates forecasted cash outflows (tenant improvements, lease commissions and operating costs) or over estimates forecasted cash inflows (rental revenue rates), the estimated fair value of its real estate assets could be overstated. The Company estimates the fair values of its loans receivable utilizing Level 3 inputs by using an estimated discounted cash flow analysis consisting of scheduled cash flows and discount rate estimates to approximate those that a willing buyer and seller might use and/or the estimated value of the underlying collateral. The fair value of the Company's debt is primarily estimated utilizing Level 3 inputs by using a discounted cash flow analysis, based upon estimates of market interest rates. The Company determines the fair value of its senior notes payable and convertible guaranteed notes payable using market prices. The inputs used in determining the fair value of these notes are categorized as Level 1 due to the fact that the Company uses quoted market rates to value these instruments. However, the inputs used in determining the fair value could be categorized as Level 2 if trading volumes are low. Fair values cannot be determined with precision, may not be substantiated by comparison to quoted prices in active markets and may not be realized upon sale. Additionally, there are inherent uncertainties in any fair value measurement technique, and changes in the underlying assumptions used, including discount rates, liquidity risks and estimates of future cash flows, could significantly affect the fair value measurement amounts. Cash Equivalents, Restricted Cash, Accounts Receivable and Accounts Payable . The Company estimates that the fair value of cash equivalents, restricted cash, accounts receivable and accounts payable approximates carrying value due to the relatively short maturity of the instruments. |
Investment in and Advances to N
Investment in and Advances to Non-Consolidated Entities | 3 Months Ended |
Mar. 31, 2016 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Investment in and Advances to Non-Consolidated Entities | Investment in and Advances to Non-Consolidated Entities As of March 31, 2016 , the Company had ownership interests ranging from 15% to 40% in certain non-consolidated entities, which primarily own single-tenant net-leased assets. The acquisitions of these assets by the non-consolidated entities were partially funded through non-recourse mortgage debt with an aggregate balance of $47,476 at March 31, 2016 (the Company's proportionate share was $8,561 ) with rates ranging from 3.7% to 4.7% . In January 2016, the Company received $6,681 in connection with the sale of a non-consolidated office property in Russellville, Arkansas. The Company recognized a gain of $5,378 relating to the sale, which is included in equity in earnings of non-consolidated entities. In November 2014, the Company formed a joint venture to construct a private school in Houston, Texas. As of March 31, 2016 , the Company had a 25% interest in the joint venture. The total anticipated construction cost is $86,491 . The Company is contractually obligated to provide construction financing to the joint venture up to $56,686 , of which $23,639 had been funded as of March 31, 2016. Upon completion, the property will be net leased for a 20 -year term. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company had the following mortgages and notes payable outstanding as of March 31, 2016 and December 31, 2015 : March 31, 2016 December 31, 2015 Mortgages and notes payable $ 933,430 $ 882,952 Unamortized debt issuance costs (11,110 ) (10,309 ) $ 922,320 $ 872,643 Interest rates, including imputed rates on mortgages and notes payable, ranged from 2.2% to 7.8% at March 31, 2016 and December 31, 2015 and the mortgages and notes payables mature between 2016 and 2031 as of March 31, 2016 . The weighted-average interest rate was 4.9% at March 31, 2016 and December 31, 2015 . The Company had the following senior notes outstanding as of March 31, 2016 and December 31, 2015 : Issue Date March 31, 2016 December 31, 2015 Interest Rate Maturity Date Issue Price May 2014 $ 250,000 $ 250,000 4.40 % June 2024 99.883 % June 2013 250,000 250,000 4.25 % June 2023 99.026 % 500,000 500,000 Unamortized discount (1,984 ) (2,053 ) Unamortized debt issuance cost (4,281 ) (4,421 ) $ 493,735 $ 493,526 Each series of the senior notes is unsecured and requires payment of interest semi-annually in arrears. The Company may redeem the notes at its option at any time prior to maturity in whole or in part by paying the principal amount of the notes being redeemed plus a premium. The Company has a $905,000 unsecured credit agreement with KeyBank National Association, as agent. With lender approval, the Company can increase the size of the facility to an aggregate $1,810,000 . A summary of the significant terms are as follows: Current $400,000 Revolving Credit Facility (1) August 2019 LIBOR + 1.00% $250,000 Term Loan (2)(4) August 2020 LIBOR + 1.10% $255,000 Term Loan (3)(4) January 2021 LIBOR + 1.10% (1) Maturity date can be extended to August 2020 at the Company's option. The interest rate ranges from LIBOR plus 0.85% to 1.55% . At March 31, 2016, the revolving credit facility had $147,000 outstanding and availability of $253,000 , subject to covenant compliance. (2) The interest rate ranges from LIBOR plus 0.90% to 1.75% . The Company previously entered into aggregate interest-rate swap agreements to fix the LIBOR component at a weighted-average rate of 1.09% through February 2018 on the $250,000 of outstanding LIBOR-based borrowings. (3) The interest rate ranges from LIBOR plus 0.90% to 1.75% . The Company previously entered into aggregate interest-rate swap agreements to fix the LIBOR component at a weighted-average rate of 1.42% through January 2019 on the $255,000 of outstanding LIBOR-based borrowings. (4) The aggregate unamortized debt issuance costs for the term loans were $4,670 and $4,924 as of March 31, 2016 and December 31, 2015 , respectively. The Company was in compliance with all applicable financial covenants contained in its corporate level debt agreements at March 31, 2016 . During 2010, the Company issued $115,000 aggregate principal amount of 6.00% Convertible Guaranteed Notes due 2030. The notes pay interest semi-annually in arrears and mature in January 2030 . The holders of the notes may require the Company to repurchase their notes in January 2017 , January 2020 and January 2025 for cash equal to 100% of the notes to be repurchased, plus any accrued and unpaid interest. The Company may not redeem any notes prior to January 2017 , except to preserve its REIT status. The notes have a current conversion rate of 156.5514 common shares per one thousand principal amount of the notes, representing a conversion price of approximately $6.39 per common share. The conversion rate is subject to adjustment under certain circumstances, including increases in the Company's dividend rate above a certain threshold and the issuance of stock dividends. The notes are convertible by the holders under certain circumstances for cash, common shares or a combination of cash and common shares at the Company's election. The notes are convertible prior to the close of business on the second business day immediately preceding the stated maturity date, at any time beginning in January 2029 and also upon the occurrence of specified events. During the three months ended March 31, 2015 , $600 aggregate principal amount of the notes were converted for 90,957 common shares. The conversion resulted in debt satisfaction charges of $77 for the three months ended March 31, 2015 , respectively. Below is a summary of additional disclosures related to the 6.00% Convertible Guaranteed Notes due 2030. 6.00% Convertible Guaranteed Notes due 2030 Balance Sheets: March 31, 2016 December 31, 2015 Principal amount of debt component $ 12,400 $ 12,400 Unamortized discount (167 ) (220 ) Unamortized debt issuance costs (41 ) (54 ) Carrying amount of debt component $ 12,192 $ 12,126 Carrying amount of equity component $ (34,784 ) $ (34,784 ) Effective interest rate 8.1 % 7.8 % Period through which discount is being amortized, put date 01/2017 01/2017 Aggregate if-converted value in excess of aggregate principal amount $ 4,295 $ 2,863 Three months ended March 31, Statements of Operations: 2016 2015 6.00% Convertible Guaranteed Notes Coupon interest $ 186 $ 236 Discount amortization 53 67 $ 239 $ 303 During 2007, the Company issued $200,000 original principal amount of Trust Preferred Securities. The Trust Preferred Securities, which are classified as debt, are due in 2037, were open for redemption at the Company's option commencing April 2012 and bear interest at a fixed rate of 6.804% through April 2017 and thereafter, at a variable rate of three month LIBOR plus 170 basis points through maturity. As of March 31, 2016 and December 31, 2015, there was $129,120 original principal amount of Trust Preferred Securities outstanding and $2,099 and $2,124 , respectively, of unamortized debt issuance costs. During the three months ended March 31, 2015 , in connection with the satisfaction of mortgage notes other than those disclosed elsewhere in these financial statements, the Company had debt satisfaction charges, net of $14 . |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Derivatives and Hedging Activities Risk Management Objective of Using Derivatives . The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the type, amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities 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 derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company's known or expected cash receipts and its known or expected cash payments principally related to the Company's investments and borrowings. Cash Flow Hedges of Interest Rate Risk . The Company's objectives in using interest rate derivatives are to add stability to interest expense, to manage its exposure to interest rate movements and therefore manage its cash outflows as it relates to the underlying debt instruments. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy relating to certain of its variable rate debt instruments. 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 exchange of the underlying notional amount. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The Company did not incur any ineffectiveness during the three months ended March 31, 2016 and 2015 . The Company has designated the interest-rate swap agreements with its counterparties as cash flow hedges of the risk of variability attributable to changes in the LIBOR swap rate on $505,000 of LIBOR-indexed variable-rate unsecured term loans. Accordingly, changes in the fair value of the swaps are recorded in other comprehensive income (loss) and reclassified to earnings as interest becomes receivable or payable. Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on the term loans. During the next 12 months, the Company estimates that an additional $3,520 will be reclassified as an increase to interest expense. As of March 31, 2016 , the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk: Interest Rate Derivative Number of Instruments Notional Interest Rate Swaps 10 $505,000 The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the unaudited condensed consolidated balance sheets as of March 31, 2016 and December 31, 2015 . As of March 31, 2016 As of December 31, 2015 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest Rate Swap Asset Other Assets $ 4 Interest Rate Swap Liability Accounts Payable and Other Liabilities $ (6,564 ) Accounts Payable and Other Liabilities $ (1,943 ) The tables below present the effect of the Company's derivative financial instruments on the unaudited condensed consolidated statements of operations for the three months ended March 31, 2016 and 2015 . Derivatives in Cash Flow Amount of Loss Recognized Location of Loss Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Loss Reclassified Hedging Relationships 2016 2015 2016 2015 Interest Rate Swaps $ (5,691 ) $ (5,468 ) Interest expense $ 1,066 $ 1,372 The Company's agreements with swap derivative counterparties contain provisions whereby if the Company defaults on the underlying indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default of the swap derivative obligation. As of March 31, 2016 , the Company has not posted any collateral related to the agreements. |
Concentration of Risk
Concentration of Risk | 3 Months Ended |
Mar. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
Concentration of Risk | Concentration of Risk The Company seeks to reduce its operating and leasing risks through the geographic diversification of its properties, tenant industry diversification, avoidance of dependency on a single asset and the creditworthiness of its tenants. For the three months ended March 31, 2016 and 2015 , no single tenant represented greater than 10% of rental revenues. Cash and cash equivalent balances at certain institutions may exceed insurable amounts. The Company believes it mitigates this risk by investing in or through major financial institutions. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Equity | Equity Shareholders' Equity. During the three months ended March 31, 2016 and 2015 , the Company issued 577,823 and 627,247 common shares, respectively, under its direct share purchase plan, which includes its dividend reinvestment plan, raising net proceeds of $4,115 and $6,685 , respectively. During the three months ended March 31, 2016 and 2015, the Company granted common shares to certain employees and trustees as follows: Three months ended March 31, 2016 Three months ended Performance Shares (1) Shares issued: Index 404,466 321,018 Peer 404,463 321,011 Grant date fair value per share: (2) Index $4.53 $6.86 Peer $4.58 $6.66 Non-Vested Common Shares: (3) Shares issued 225,090 170,650 Grant date fair value $1,724 $1,916 Non-management Board of Trustee grant: (4) Shares issued 17,500 14,000 Grant date fair value $131 $157 (1) The shares vest based on the Company's total shareholder return growth after a three-year measurement period relative to an index and a group of Company peers. Dividends will not be paid on these grants until earned. Once the performance criteria are met and the actual number of shares earned is determined, such shares vest immediately. (2) The fair value of grants was determined at the grant date using a Monte Carlo simulation model. (3) The shares vest ratably over a three -year service period. (4) Annual grant and shares vested immediately. In July 2015, the Company's Board of Trustees authorized the repurchase of up to 10,000,000 common shares. During the three months ended March 31, 2016 , the Company repurchased 1,184,113 common shares at an average price of $7.56 per common share. Accumulated other comprehensive loss as of March 31, 2016 and December 31, 2015 represented $(6,564) and $(1,939) , respectively, of unrealized loss on interest rate swaps, net. Changes in Accumulated Other Comprehensive Loss Gains and Losses on Cash Flow Hedges Balance December 31, 2015 $ (1,939 ) Other comprehensive loss before reclassifications (5,691 ) Amounts of loss reclassified from accumulated other comprehensive income to interest expense 1,066 Balance March 31, 2016 $ (6,564 ) Noncontrolling Interests. In conjunction with several of the Company's acquisitions in prior years, sellers were issued OP units as a form of consideration. All OP units, other than OP units owned by the Company, are redeemable for common shares at certain times, at the option of the holders, and are generally not otherwise mandatorily redeemable by the Company. The OP units are classified as a component of permanent equity as the Company has determined that the OP units are not redeemable securities as defined by GAAP. Each OP unit is currently redeemable at the holder's option for approximately 1.13 common shares, subject to future adjustments. As of March 31, 2016 , there were approximately 3,393,000 OP units outstanding other than OP units owned by the Company. All OP units receive distributions in accordance with the LCIF partnership agreement. To the extent that the Company's dividend per common share is less than the stated distribution per OP unit per the LCIF partnership agreement, the distributions per OP unit are reduced by the percentage reduction in the Company's dividend per common share. No OP units have a liquidation preference. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions In connection with efforts to procure non-recourse mezzanine financing from an affiliate of the Company's Chairman, pursuant to the terms of the EB-5 visa program administered by the United States Citizenship and Immigration Services (“USCIS”), for a joint venture in Houston, Texas, in which the Company has an investment, the Company executed a guaranty in favor of an affiliate of its Chairman. The guaranty provides that the Company will reimburse investors providing the funds for such financing if the following occurs: (1) the joint venture receives such funds, (2) the USCIS denies the financing solely because the project is not permitted under the EB-5 visa program, and (3) the joint venture fails to return such funds. As of March 31, 2016 , the joint venture has not received any such funds and the Company has not recorded any liability as it relates to this guaranty. The maximum amount of funds that would be subject to the guaranty obligation is $18,000 . In addition, in connection with efforts, on a non-binding basis, to procure non-recourse mezzanine financing from an affiliate of the Company's Chairman, pursuant to the terms of the EB-5 visa program administered by the USCIS, for an investment in Charlotte, North Carolina, the Company agreed to reimburse the Chairman's affiliate up to approximately $7 for its expenses. There were no other related party transactions other than those disclosed elsewhere in this Quarterly Report and the audited consolidated financial statements in the Annual Report. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In addition to the commitments and contingencies disclosed elsewhere, including in Note 12 above, and previously disclosed, the Company has the following commitments and contingencies. The Company is obligated under certain tenant leases, including its proportionate share for leases for non-consolidated entities, to fund the expansion of the underlying leased properties. The Company, under certain circumstances, may guarantee to tenants the completion of base building improvements and the payment of tenant improvement allowances and lease commissions on behalf of its subsidiaries. From time to time, the Company is directly and indirectly involved in legal proceedings arising in the ordinary course of business. Management believes, based on currently available information, and after consultation with legal counsel, that although the outcomes of those normal course proceedings are uncertain, the results of such proceedings, in the aggregate, will not have a material adverse effect on the Company's business, financial condition and results of operations. GSMSC II 2006-GG6 Bridgewater Hills Corporate Center, LLC v. Lexington Realty Trust (Supreme Court of the State of New York, County of New York-Index No. 653117/2015) On September 16, 2015, GSMSC II 2006-GG6 Bridgewater Hills Corporate Center, LLC commenced an action as lender against the Company based on a limited guaranty of recourse obligations executed by a predecessor entity of the Company in connection with a mortgage loan secured by a property owner subsidiary's commercial property in Bridgewater, New Jersey. The property owner subsidiary defaulted due to non-payment after the sole tenant vacated at the end of the lease term. The lender seeks approximately $15,500 in order to satisfy the outstanding amount of the loan, plus interest, reasonable attorney’s fees and other costs and disbursements related thereto. The lender claims that the Company's limited guaranty was triggered due to the merger of Newkirk Realty Trust, Inc. and Lexington Corporate Properties Trust on December 31, 2006, arguing that it constituted an event of default because it was a transfer that was not permitted by the loan agreement. The Company intends to vigorously defend the lender’s claim. The Company filed a motion to dismiss on October 19, 2015 and a hearing is scheduled for June 15, 2016. |
Supplemental Disclosure of Stat
Supplemental Disclosure of Statement of Cash Flow Information | 3 Months Ended |
Mar. 31, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Disclosure of Statement of Cash Flow Information | Supplemental Disclosure of Statement of Cash Flow Information In addition to disclosures discussed elsewhere, during the three months ended March 31, 2016 and 2015 , the Company paid $17,002 and $18,671 , respectively, for interest and $169 and $338 , respectively, for income taxes. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Subsequent to March 31, 2016 and in addition to disclosures elsewhere in the unaudited condensed consolidated financial statements, the Company: • entered into an agreement to fund the construction of an industrial facility in Opelika, Alabama for a maximum commitment of $37,000 . Upon completion, the property will be net leased for a 25 -year term; • sold its West 45th Street, New York, New York land investment for a gross sales price $37,500 , which was subject to a $29,193 aggregate principal mortgage; and • sold its office property in Lake Forest, California for a gross sales price of $19,000 . |
The Company and Financial Sta23
The Company and Financial Statement Presentation (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation and consolidation | Basis of Presentation and Consolidation. The Company's unaudited condensed consolidated financial statements are prepared on the accrual basis of accounting in accordance with GAAP. The financial statements reflect the accounts of the Company and its consolidated subsidiaries. |
Variable interest entity | On January 1, 2016, the Company adopted Accounting Standards Update (“ASU”) 2015-02 (Topic 810), Amendments to the Consolidation Analysis, modifying the analysis it must perform to determine whether it should consolidate certain types of legal entities. The guidance does not amend the existing disclosure requirements for variable interest entities (“VIEs”) or voting interest model entities. The adoption of this guidance had no impact to consolidated entities included in the Company's unaudited consolidated financial statements as all entities previously consolidated are still consolidated and all entities previously not consolidated are still not consolidated. However, under the revised guidance, the Company determined that certain affiliated limited partnerships and similar entities are now considered, by definition, VIEs. The entities were determined to be VIEs as the unaffiliated partners/members did not have simple majority substantive kick-out rights or participating rights. The Company determined that it was the primary beneficiary of certain VIEs as it has a controlling financial interest in the entities. LCIF, which continues to be consolidated and in which the Company has an approximate 96% interest, was determined to be a VIE under this new guidance. |
Use of estimates | Use of Estimates. Management has made a number of significant estimates and assumptions to prepare these unaudited condensed consolidated financial statements in conformity with GAAP, including, among others, those relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. These estimates and assumptions are based on management's best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors. Management adjusts such estimates when facts and circumstances dictate. The most significant estimates made include the recoverability of accounts receivable, the allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed, the determination of VIEs and which entities should be consolidated, the determination of impairment of long-lived assets, loans receivable and equity method investments, the valuation of derivative financial instruments, the valuation of compensation plans and the useful lives of long-lived assets. Actual results could differ materially from those estimates. |
Fair value measurements | Fair Value Measurements. The Company follows the guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, as amended (“Topic 820”), to determine the fair value of financial and non-financial instruments. Topic 820 defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements. Topic 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 - observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 - unobservable inputs, which are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considering counterparty credit risk. The Company has formally elected to apply the portfolio exception within Topic 820 with respect to measuring counterparty risk for all of its derivative transactions subject to master netting arrangements. |
Acquisition, development and construction arrangements | Acquisition, Development and Construction Arrangements . The Company evaluates loans receivable where the Company participates in residual profits through loan provisions or other contracts to ascertain whether the Company has the same risks and rewards as an owner or a joint venture partner. Where the Company concludes that such arrangements are more appropriately treated as an investment in real estate, the Company reflects such loan receivable as an equity investment in real estate under construction in the unaudited condensed consolidated balance sheets. In these cases, no interest income is recorded on the loan receivable and the Company capitalizes interest during the construction period. In arrangements where the Company engages a developer to construct a property or provides funds to a tenant to develop a property, the Company will capitalize the funds provided to the developer/tenant and internal costs of interest and real estate taxes, if applicable, during the construction period. |
Restricted cash | Restricted Cash . Restricted cash is comprised primarily of cash balances held with Section 1031 exchange intermediaries and escrow balances held by lenders. |
Reclassifications | Reclassifications. Certain amounts included in the 2015 unaudited condensed consolidated financial statements have been reclassified to conform to the 2016 presentation. |
Recently issued accounting guidance | Recently Issued Accounting Guidance. In April 2014, the FASB issued ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which changes the criteria for reporting discontinued operations and improves financial statement disclosures. Under this guidance, only disposals representing a strategic shift in operations that have a major effect on an organization's operations and financial results should be presented as discontinued operations. The Company adopted this guidance effective January 1, 2015. The guidance requires the Company to continue to classify any property disposal or property classified as held for sale as of December 31, 2014 as discontinued operations prospectively. Therefore, the revenues and expenses related to these properties are presented as discontinued operations as of March 31, 2015. The Company did not classify any additional properties as discontinued operations subsequent to December 31, 2014, as the dispositions did not represent a strategic shift in operations. The implementation of this guidance did not have a material impact on the Company's financial position, results of operations or cash flows. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which amends the guidance for revenue recognition to eliminate the industry-specific revenue recognition guidance and replace it with a principle-based approach for determining revenue recognition. The effective date of the new guidance was updated by ASU 2015-14 and is effective for reporting periods beginning after December 15, 2017. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies the implementation guidance on principal versus agent considerations. The Company is currently evaluating the impact of the adoption of the new guidance on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize a right of use asset and related lease liability for those leases classified as operating leases at the commencement date and have lease terms of more than 12 months. The accounting applied to lessors under this new guidance is largely unchanged from prior guidance. Lessors in most cases will continue to record operating leases as operating leases and recognize lease income from those leases generally on a straight-line basis over the lease term. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and interim periods within those years, and requires a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently evaluating the impact of the adoption of the new guidance on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation-Improvements to Employee Share-Based Payment Accounting (Topic 718), which involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period, however early adoption is permitted. The Company is currently evaluating the impact of the adoption of the new guidance on its consolidated financial statements. |
The Company and Financial Sta24
The Company and Financial Statement Presentation The Company and Financial Statement Presentation (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | Below is a summary of selected financial data of consolidated VIEs for which we are the primary beneficiary included in the consolidated balance sheets as of March 31, 2016 and December 31, 2015 : March 31, 2016 December 31, 2015 Real estate, net $ 1,049,238 $ 1,072,463 Total assets $ 1,203,328 $ 1,192,944 Mortgages and notes payable, net $ 431,351 $ 431,599 Total liabilities $ 447,277 $ 448,057 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | As shown in the table below and pursuant to the guidance in ASU 2015-03, the Company has reclassified unamortized debt issuance costs associated with certain debt obligations in the Company's previously reported consolidated balance sheet as of December 31, 2015 as follows: As previously reported December 31, 2015 Reclassifications As adjusted December 31, 2015 Deferred expenses, net $ 63,832 $ (21,832 ) $ 42,000 Mortgages and notes payable, net 882,952 (10,309 ) 872,643 Term loans payable, net 505,000 (4,924 ) 500,076 Senior notes payable, net 497,947 (4,421 ) 493,526 Convertible guaranteed notes payable, net 12,180 (54 ) 12,126 Trust preferred securities, net 129,120 (2,124 ) 126,996 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Reconciliation | The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for the three months ended March 31, 2016 and 2015 : Three months ended March 31, 2016 2015 BASIC Income from continuing operations attributable to common shareholders $ 48,107 $ 30,142 Income from discontinued operations attributable to common shareholders — 1,687 Net income attributable to common shareholders $ 48,107 $ 31,829 Weighted-average number of common shares outstanding 232,642,803 232,525,675 Income per common share: Income from continuing operations $ 0.21 $ 0.13 Income from discontinued operations — 0.01 Net income attributable to common shareholders $ 0.21 $ 0.14 DILUTED Income from continuing operations attributable to common shareholders - basic $ 48,107 $ 30,142 Impact of assumed conversions 1,058 — Income from continuing operations attributable to common shareholders 49,165 30,142 Income from discontinued operations attributable to common shareholders - basic — 1,687 Impact of assumed conversions — — Income from discontinued operations attributable to common shareholders — 1,687 Net income attributable to common shareholders $ 49,165 $ 31,829 Weighted-average common shares outstanding - basic 232,642,803 232,525,675 Effect of dilutive securities: Share options 132,191 431,590 6.00% Convertible Guaranteed Notes 1,941,237 — Nonvested common shares 348,748 — OP Units 3,820,192 — Weighted-average common shares outstanding 238,885,171 232,957,265 Income per common share: Income from continuing operations $ 0.21 $ 0.13 Income from discontinued operations — 0.01 Net income attributable to common shareholders $ 0.21 $ 0.14 |
Investments in Real Estate an26
Investments in Real Estate and Real Estate Under Construction (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Real Estate [Abstract] | |
Schedule of acquired properties | The Company completed the following acquisition during the three months ended March 31, 2016 : Property Type Location Acquisition Date Initial Cost Basis Lease Expiration Land and Land Estate Building and Improvements Lease in-place Value Intangible Industrial Detroit, MI January 2016 $ 29,697 10/2035 $ 1,133 $ 25,009 $ 3,555 |
Schedule of acquisition development and construction arrangements outstanding | As of March 31, 2016 , the Company had the following development arrangements outstanding: Location Property Type Square Feet Expected Maximum Commitment/Contribution Lease Term (Years) Estimated Completion/Acquisition Date Anderson, SC Industrial 1,325,000 $ 70,012 20 2Q 16 Lake Jackson, TX (1) Office 664,000 166,164 20 4Q 16 Charlotte, NC Office 201,000 62,445 15 1Q 17 2,190,000 $ 298,621 (1) Joint venture arrangement with developer. The Company currently has a 100% interest in the joint venture. |
Property Dispositions, Discon27
Property Dispositions, Discontinued Operations and Real Estate Impairment Property Dispositions, Discontinued Operations and Real Estate Impairment (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Assets and Liabilities Held for Sale | Assets and liabilities of held for sale properties as of March 31, 2016 and December 31, 2015 consisted of the following: March 31, 2016 December 31, 2015 Assets: Real estate, at cost $ 6,011 $ 16,590 Real estate, intangible assets 5,589 10,786 Accumulated depreciation and amortization (2,077 ) (4,069 ) Rent receivable - deferred 624 1,118 $ 10,147 $ 24,425 Liabilities: Mortgage payable $ — $ 8,373 Other — 32 $ — $ 8,405 |
Loans Receivable (Tables)
Loans Receivable (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Summary of Loans Receivable | The following is a summary of our loans receivable as of March 31, 2016 and December 31, 2015 : Loan carrying-value (1) Loan 3/31/2016 12/31/2015 Interest Rate Maturity Date Kennewick, WA $ 85,554 $ 85,505 9.00 % 05/2022 Oklahoma City, OK (2) 8,420 8,501 11.50 % 03/2016 Other 1,796 1,865 8.00 % 2021-2022 $ 95,770 $ 95,871 (1) Loan carrying value includes accrued interest and is net of origination costs, if any. (2) In June 2015, the Company loaned a tenant-in-common $8,420 . The loan is secured by the tenant-in-common's interest in an office property, in which the Company has a 40% interest. The loan was in default as of March 31, 2016. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |
Schedule of Fair Value Measurement Inputs | The following tables present the Company's assets and liabilities measured at fair value on a recurring and non-recurring basis as of March 31, 2016 and December 31, 2015 , aggregated by the level in the fair value hierarchy within which those measurements fall: Balance Fair Value Measurements Using Description March 31, 2016 (Level 1) (Level 2) (Level 3) Interest rate swap liabilities $ (6,564 ) $ — $ (6,564 ) $ — Balance Fair Value Measurements Using Description December 31, 2015 (Level 1) (Level 2) (Level 3) Interest rate swap assets $ 4 $ — $ 4 $ — Impaired real estate assets* $ 3,015 $ — $ — $ 3,015 Interest rate swap liabilities $ (1,943 ) $ — $ (1,943 ) $ — *Represents a non-recurring fair value measurement. |
Schedule of Carrying Amounts and Fair Value of Financial Instruments | The table below sets forth the carrying amounts and estimated fair values of the Company's financial instruments as of March 31, 2016 and December 31, 2015 . As of March 31, 2016 As of December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Assets Loans Receivable $ 95,770 $ 101,010 $ 95,871 $ 103,014 Liabilities Debt $ 2,202,598 $ 2,198,030 $ 2,182,367 $ 2,164,571 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt Instrument Redemption | The Company had the following senior notes outstanding as of March 31, 2016 and December 31, 2015 : Issue Date March 31, 2016 December 31, 2015 Interest Rate Maturity Date Issue Price May 2014 $ 250,000 $ 250,000 4.40 % June 2024 99.883 % June 2013 250,000 250,000 4.25 % June 2023 99.026 % 500,000 500,000 Unamortized discount (1,984 ) (2,053 ) Unamortized debt issuance cost (4,281 ) (4,421 ) $ 493,735 $ 493,526 |
Schedule of Line of Credit Facilities | A summary of the significant terms are as follows: Current $400,000 Revolving Credit Facility (1) August 2019 LIBOR + 1.00% $250,000 Term Loan (2)(4) August 2020 LIBOR + 1.10% $255,000 Term Loan (3)(4) January 2021 LIBOR + 1.10% (1) Maturity date can be extended to August 2020 at the Company's option. The interest rate ranges from LIBOR plus 0.85% to 1.55% . At March 31, 2016, the revolving credit facility had $147,000 outstanding and availability of $253,000 , subject to covenant compliance. (2) The interest rate ranges from LIBOR plus 0.90% to 1.75% . The Company previously entered into aggregate interest-rate swap agreements to fix the LIBOR component at a weighted-average rate of 1.09% through February 2018 on the $250,000 of outstanding LIBOR-based borrowings. (3) The interest rate ranges from LIBOR plus 0.90% to 1.75% . The Company previously entered into aggregate interest-rate swap agreements to fix the LIBOR component at a weighted-average rate of 1.42% through January 2019 on the $255,000 of outstanding LIBOR-based borrowings. (4) The aggregate unamortized debt issuance costs for the term loans were $4,670 and $4,924 as of March 31, 2016 and December 31, 2015 , respectively. |
Schedule of Long-term Debt Instruments | Below is a summary of additional disclosures related to the 6.00% Convertible Guaranteed Notes due 2030. 6.00% Convertible Guaranteed Notes due 2030 Balance Sheets: March 31, 2016 December 31, 2015 Principal amount of debt component $ 12,400 $ 12,400 Unamortized discount (167 ) (220 ) Unamortized debt issuance costs (41 ) (54 ) Carrying amount of debt component $ 12,192 $ 12,126 Carrying amount of equity component $ (34,784 ) $ (34,784 ) Effective interest rate 8.1 % 7.8 % Period through which discount is being amortized, put date 01/2017 01/2017 Aggregate if-converted value in excess of aggregate principal amount $ 4,295 $ 2,863 Three months ended March 31, Statements of Operations: 2016 2015 6.00% Convertible Guaranteed Notes Coupon interest $ 186 $ 236 Discount amortization 53 67 $ 239 $ 303 The Company had the following mortgages and notes payable outstanding as of March 31, 2016 and December 31, 2015 : March 31, 2016 December 31, 2015 Mortgages and notes payable $ 933,430 $ 882,952 Unamortized debt issuance costs (11,110 ) (10,309 ) $ 922,320 $ 872,643 |
Derivatives and Hedging Activ31
Derivatives and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding Interest Rate Derivatives Designated as Cash Flow Hedges | As of March 31, 2016 , the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk: Interest Rate Derivative Number of Instruments Notional Interest Rate Swaps 10 $505,000 |
Fair Value of the Company's Derivative Financial Instruments and Classification on the Balance Sheets | The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the unaudited condensed consolidated balance sheets as of March 31, 2016 and December 31, 2015 . As of March 31, 2016 As of December 31, 2015 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest Rate Swap Asset Other Assets $ 4 Interest Rate Swap Liability Accounts Payable and Other Liabilities $ (6,564 ) Accounts Payable and Other Liabilities $ (1,943 ) |
Effect of the Company's Derivative Financial Instruments on the Statements of Operation | The tables below present the effect of the Company's derivative financial instruments on the unaudited condensed consolidated statements of operations for the three months ended March 31, 2016 and 2015 . Derivatives in Cash Flow Amount of Loss Recognized Location of Loss Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Loss Reclassified Hedging Relationships 2016 2015 2016 2015 Interest Rate Swaps $ (5,691 ) $ (5,468 ) Interest expense $ 1,066 $ 1,372 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Schedule of Common Stock Granted | During the three months ended March 31, 2016 and 2015, the Company granted common shares to certain employees and trustees as follows: Three months ended March 31, 2016 Three months ended Performance Shares (1) Shares issued: Index 404,466 321,018 Peer 404,463 321,011 Grant date fair value per share: (2) Index $4.53 $6.86 Peer $4.58 $6.66 Non-Vested Common Shares: (3) Shares issued 225,090 170,650 Grant date fair value $1,724 $1,916 Non-management Board of Trustee grant: (4) Shares issued 17,500 14,000 Grant date fair value $131 $157 (1) The shares vest based on the Company's total shareholder return growth after a three-year measurement period relative to an index and a group of Company peers. Dividends will not be paid on these grants until earned. Once the performance criteria are met and the actual number of shares earned is determined, such shares vest immediately. (2) The fair value of grants was determined at the grant date using a Monte Carlo simulation model. (3) The shares vest ratably over a three -year service period. (4) Annual grant and shares vested immediately. |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in Accumulated Other Comprehensive Loss Gains and Losses on Cash Flow Hedges Balance December 31, 2015 $ (1,939 ) Other comprehensive loss before reclassifications (5,691 ) Amounts of loss reclassified from accumulated other comprehensive income to interest expense 1,066 Balance March 31, 2016 $ (6,564 ) |
The Company and Financial Sta33
The Company and Financial Statement Presentation - Additional Information (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($)stateProperty | Dec. 31, 2015USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of properties | Property | 215 | |
Number of states in which entity has interests | state | 40 | |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 42,830 | $ 10,637 |
Variable Interest Entity [Line Items] | ||
Investments in real estate under construction | $ 115,297 | 95,402 |
Variable Interest Entity, Primary Beneficiary [Member] | LCIF [Member] | ||
Variable Interest Entity [Line Items] | ||
VIE, ownership percentage | 96.00% | |
Variable Interest Entity, Primary Beneficiary [Member] | LCIF [Member] | Financial Guarantee [Member] | ||
Variable Interest Entity [Line Items] | ||
Guarantor obligations | $ 15,000 | |
Variable Interest Entity, Primary Beneficiary [Member] | Lake Jackson, Texas [Member] | Office Building [Member] | ||
Variable Interest Entity [Line Items] | ||
VIE, ownership percentage | 100.00% | |
Investments in real estate under construction | $ 63,278 | $ 62,353 |
Section 1031 [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 29,457 |
The Company and Financial Sta34
The Company and Financial Statement Presentation - Schedule of Variable Interest Entities (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Variable Interest Entity [Line Items] | ||
Real estate, net | $ 3,380,064 | $ 3,397,922 |
Total assets | 3,826,060 | 3,808,403 |
Mortgages and notes payable, net | 922,320 | 872,643 |
Total liabilities | 2,362,514 | 2,345,872 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Real estate, net | 1,049,238 | 1,072,463 |
Total assets | 1,203,328 | 1,192,944 |
Mortgages and notes payable, net | 431,351 | 431,599 |
Total liabilities | $ 447,277 | $ 448,057 |
The Company and Financial Sta35
The Company and Financial Statement Presentation - New Accounting Pronouncements (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred expenses, net | $ 39,839 | $ 42,000 |
Mortgages and notes payable, net | 922,320 | 872,643 |
Term loans payable, net | 500,330 | 500,076 |
Senior notes payable, net | 493,735 | 493,526 |
Convertible guaranteed notes payable, net | 12,192 | 12,126 |
Trust preferred securities, net | $ 127,021 | 126,996 |
Accounting Standards Update 2015-03 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred expenses, net | 42,000 | |
Mortgages and notes payable, net | 872,643 | |
Term loans payable, net | 500,076 | |
Senior notes payable, net | 493,526 | |
Convertible guaranteed notes payable, net | 12,126 | |
Trust preferred securities, net | 126,996 | |
Accounting Standards Update 2015-03 [Member] | Previously Reported | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred expenses, net | 63,832 | |
Mortgages and notes payable, net | 882,952 | |
Term loans payable, net | 505,000 | |
Senior notes payable, net | 497,947 | |
Convertible guaranteed notes payable, net | 12,180 | |
Trust preferred securities, net | 129,120 | |
Accounting Standards Update 2015-03 [Member] | Reclassifications | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred expenses, net | (21,832) | |
Mortgages and notes payable, net | (10,309) | |
Term loans payable, net | (4,924) | |
Senior notes payable, net | (4,421) | |
Convertible guaranteed notes payable, net | (54) | |
Trust preferred securities, net | $ (2,124) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
BASIC | |||
Income from continuing operations attributable to common shareholders | $ 48,107 | $ 30,142 | |
Income from discontinued operations attributable to common shareholders | 0 | 1,687 | |
Net income attributable to common shareholders | $ 48,107 | $ 31,829 | |
Weighted-average number of common shares outstanding | 232,642,803 | 232,525,675 | |
Income (loss) from continuing operations (in USD per share) | $ 0.21 | $ 0.13 | |
Income (loss) from discontinued operations (in USD per share) | 0 | 0.01 | |
Net income (loss) attributable to common shareholders (USD per share) | $ 0.21 | $ 0.14 | |
DILUTED | |||
Income from continuing operations attributable to common shareholders | $ 48,107 | $ 30,142 | |
Impact of assumed conversions | 1,058 | 0 | |
Income from continuing operations attributable to common shareholders | 49,165 | 30,142 | |
Income from discontinued operations attributable to common shareholders | 0 | 1,687 | |
Impact of assumed conversions | 0 | 0 | |
Income from discontinued operations attributable to common shareholders | 0 | 1,687 | |
Net income attributable to common shareholders | $ 49,165 | $ 31,829 | |
Effect of dilutive securities: | |||
Share options (in shares) | 132,191 | 431,590 | |
6.00% Convertible Guaranteed Notes (in shares) | 1,941,237 | 0 | |
Nonvested common shares (in shares) | 348,748 | 0 | |
OP Units (in shares) | 3,820,192 | 0 | |
Weighted-average common shares outstanding (in shares) | 238,885,171 | 232,957,265 | |
Income from continuing operations (USD per share) | $ 0.21 | $ 0.13 | |
Income (loss) from discontinued operations (USD per share) | 0 | 0.01 | |
Net income (loss) attributable to common shareholders (USD per share) | $ 0.21 | $ 0.14 | |
6% Convertible Guaranteed Note [Member] | |||
Effect of dilutive securities: | |||
Stated interest rate | 6.00% | 6.00% |
Investments in Real Estate an37
Investments in Real Estate and Real Estate Under Construction - Summary of acquisitions and build-to-suit transactions (Details) - Industrial property [Member] - Detroit, Michigan [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Investments in Real Estate and Real Estate Under Construction [Line Items] | |
Initial cost basis | $ 29,697 |
Land and land estate | 1,133 |
Building and improvements | 25,009 |
Lease in-place value intangible | $ 3,555 |
Investments in Real Estate an38
Investments in Real Estate and Real Estate Under Construction - Summary of development arrangements outstanding (Details) ft² in Thousands, $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($)ft² | |
Investments in Real Estate and Real Estate Under Construction [Line Items] | |
Square Feet | ft² | 2,190 |
Expected Maximum Commitment/Contribution | $ | $ 298,621 |
Joint Venture [Member] | |
Investments in Real Estate and Real Estate Under Construction [Line Items] | |
Ownership percentage | 100.00% |
Anderson, South Carolina [Member] | Industrial property [Member] | |
Investments in Real Estate and Real Estate Under Construction [Line Items] | |
Square Feet | ft² | 1,325 |
Expected Maximum Commitment/Contribution | $ | $ 70,012 |
Lease Term (Years) | 20 years |
Lake Jackson, Texas [Member] | Office Building [Member] | |
Investments in Real Estate and Real Estate Under Construction [Line Items] | |
Square Feet | ft² | 664 |
Expected Maximum Commitment/Contribution | $ | $ 166,164 |
Lease Term (Years) | 20 years |
Charlotte, North Carolina [Member] | Office Building [Member] | |
Investments in Real Estate and Real Estate Under Construction [Line Items] | |
Square Feet | ft² | 201 |
Expected Maximum Commitment/Contribution | $ | $ 62,445 |
Lease Term (Years) | 15 years |
Investments in Real Estate an39
Investments in Real Estate and Real Estate Under Construction - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | |||
Aggregate acquisition expenses | $ 146 | $ 468 | |
Investments in real estate under construction | 115,297 | $ 95,402 | |
Development Deals [Member] | |||
Business Acquisition [Line Items] | |||
Capitalized interest | $ 3,734 | $ 2,726 |
Property Dispositions, Discon40
Property Dispositions, Discontinued Operations and Real Estate Impairment - Additional Information (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($)Property | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Debt satisfaction gains (charges), net | $ (162) | $ 10,375 |
Other asset impairment charges | 1,139 | |
Mortgages [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Debt extinguishment amount | 30,293 | |
Sold Properties [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Aggregate gross disposition price | 58,225 | 4,950 |
Gain on sale of properties | 17,015 | 1,725 |
Transferred Property [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Debt satisfaction gains (charges), net | (162) | $ 10,466 |
Office Building [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Real estate number of properties transferred | Property | 2 | |
Office Building [Member] | Transferred Property [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Aggregate gross disposition price | $ 400 |
Property Dispositions, Discon41
Property Dispositions, Discontinued Operations and Real Estate Impairment - Schedule of Assets and Liabilities Held for Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Assets: | ||
Real estate, at cost | $ 6,011 | $ 16,590 |
Real estate, intangible assets | 5,589 | 10,786 |
Accumulated depreciation and amortization | (2,077) | (4,069) |
Rent receivable - deferred | 624 | 1,118 |
Assets held for sale | 10,147 | 24,425 |
Liabilities: | ||
Mortgage payable | 0 | 8,373 |
Other | 0 | 32 |
Liabilities held for sale | $ 0 | $ 8,405 |
Loans Receivable (Details)
Loans Receivable (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016USD ($)portfolio_segmentclass_of_financingtype_of_financing | Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan carrying-value | [1] | $ 95,770 | $ 95,871 | |
Number of types of financing receivable | type_of_financing | 1 | |||
Number of portfolio segments | portfolio_segment | 1 | |||
Number of classes of financing receivable | class_of_financing | 1 | |||
Kennewick, Washington [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan carrying-value | [1] | $ 85,554 | $ 85,505 | |
Interest rate of mortgage loans | 9.00% | 9.00% | ||
Oklahoma City, Oklahoma [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan carrying-value | [1],[2] | $ 8,420 | $ 8,501 | |
Interest rate of mortgage loans | [2] | 11.50% | 11.50% | |
Oklahoma City, Oklahoma [Member] | Tenant-in-Common [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan carrying-value | $ 8,420 | |||
Ownership percentage | 40.00% | |||
Other Loan Locations [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan carrying-value | [1] | $ 1,796 | $ 1,865 | |
Interest rate of mortgage loans | 8.00% | 8.00% | ||
[1] | Loan carrying value includes accrued interest and is net of origination costs, if any. | |||
[2] | In June 2015, the Company loaned a tenant-in-common $8,420. The loan is secured by the tenant-in-common's interest in an office property, in which the Company has a 40% interest. The loan was in default as of March 31, 2016. |
Fair Value Measurements - Sche
Fair Value Measurements - Schedule Fair Value Measurements Inputs (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate swap assets | $ 4 | ||
Interest rate swap liabilities | $ (6,564) | (1,943) | |
Fair Value, Measurements, Recurring [Member] | Fair Value Measurements Using Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate swap assets | 0 | ||
Interest rate swap liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Fair Value Measurements Using Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate swap assets | 4 | ||
Interest rate swap liabilities | (6,564) | (1,943) | |
Fair Value, Measurements, Recurring [Member] | Fair Value Measurements Using Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate swap assets | 0 | ||
Interest rate swap liabilities | $ 0 | 0 | |
Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired real estate assets | [1] | 3,015 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value Measurements Using Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired real estate assets | [1] | 0 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value Measurements Using Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired real estate assets | [1] | 0 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value Measurements Using Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired real estate assets | [1] | $ 3,015 | |
[1] | Represents a non-recurring fair value measurement. |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value by Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Carrying value of loans receivable | $ 95,770 | $ 95,871 |
Carrying Amount [Member] | Fair Value Measurements Using Level 3 [Member] | ||
Assets | ||
Carrying value of loans receivable | 95,770 | 95,871 |
Liabilities | ||
Carrying value of debt | 2,202,598 | 2,182,367 |
Fair Value [Member] | Fair Value Measurements Using Level 3 [Member] | ||
Assets | ||
Fair value of loans receivable | 101,010 | 103,014 |
Liabilities | ||
Fair value of debt | $ 2,198,030 | $ 2,164,571 |
Investment in and Advances to45
Investment in and Advances to Non-Consolidated Entities (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Jan. 31, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | |
Investments in and Advances to Affiliates [Line Items] | |||
Non-recourse debt | $ 47,476 | ||
Investment in joint venture | $ 14,977 | $ 3,032 | |
Joint Venture [Member] | |||
Investments in and Advances to Affiliates [Line Items] | |||
Ownership percentage of equity method investment | 100.00% | ||
Houston, TX [Member] | |||
Investments in and Advances to Affiliates [Line Items] | |||
Investment in joint venture | $ 23,639 | ||
Anticipated construction cost | 86,491 | ||
Maximum construction financing | $ 56,686 | ||
Houston, TX [Member] | Joint Venture [Member] | |||
Investments in and Advances to Affiliates [Line Items] | |||
Ownership percentage of equity method investment | 25.00% | ||
Lease term (years) | 20 years | ||
Office Building [Member] | Russellville, Arkansas [Member] | |||
Investments in and Advances to Affiliates [Line Items] | |||
Proceeds from divestiture of interest in joint venture | $ 6,681 | ||
Gain on sale of properties | $ 5,378 | ||
Lexington Realty Trust [Member] | |||
Investments in and Advances to Affiliates [Line Items] | |||
Non-recourse debt | $ 8,561 | ||
Minimum [Member] | |||
Investments in and Advances to Affiliates [Line Items] | |||
Ownership percentage of equity method investment | 15.00% | ||
Minimum [Member] | Mortgages [Member] | |||
Investments in and Advances to Affiliates [Line Items] | |||
Stated interest rate | 3.70% | ||
Maximum [Member] | |||
Investments in and Advances to Affiliates [Line Items] | |||
Ownership percentage of equity method investment | 40.00% | ||
Maximum [Member] | Mortgages [Member] | |||
Investments in and Advances to Affiliates [Line Items] | |||
Stated interest rate | 4.70% |
Debt - Schedule of Mortgages a
Debt - Schedule of Mortgages and Notes Payable (Details) - Mortgages and Notes Payable [Member] - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Mortgages and notes payable | $ 933,430 | $ 882,952 |
Unamortized debt issuance costs | (11,110) | (10,309) |
Long-term debt | $ 922,320 | $ 872,643 |
Debt - Additional Information
Debt - Additional Information (Details) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016USD ($)$ / shares | Mar. 31, 2015USD ($)shares | Dec. 31, 2010USD ($) | Dec. 31, 2007USD ($) | Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | |||||
Percent of notes required to be repurchased at the option of the holders | 100.00% | ||||
Converted debt, shares issued (in shares) | shares | 90,957 | ||||
Debt satisfaction charges, net | $ 162,000 | $ (10,375,000) | |||
Mortgages and Notes Payable [Member] | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate | 4.90% | 4.90% | |||
6% Convertible Guaranteed Note [Member] | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 6.00% | 6.00% | |||
Face amount of debt instrument | $ 12,400,000 | $ 115,000,000 | $ 12,400,000 | ||
Maturity date | Jan. 31, 2030 | ||||
Conversion ratio numerator | 156.5514 | ||||
Conversion price (dollars per share) | $ / shares | $ 6.39 | ||||
Debt satisfaction charges, net | 77,000 | ||||
6.804% Trust Preferred Securities [Member] | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 6.804% | ||||
Face amount of debt instrument | $ 200,000,000 | ||||
Principal amount outstanding | $ 129,120,000 | 129,120,000 | |||
Unamortized debt issuance costs | 2,099,000 | $ 2,124,000 | |||
6.804% Trust Preferred Securities [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.70% | ||||
Other Debt Obligations [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt satisfaction charges, net | (14,000) | ||||
Unsecured Credit Agreement [Member] | Unsecured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 905,000,000 | ||||
Maximum borrowing capacity with lender approval | $ 1,810,000,000 | ||||
Convertible Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Amount of debt converted | $ 600,000 | ||||
Minimum [Member] | Mortgages and Notes Payable [Member] | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 2.20% | 2.20% | |||
Maximum [Member] | Mortgages and Notes Payable [Member] | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 7.80% | 7.80% |
Debt - Schedule of Debt Instru
Debt - Schedule of Debt Instrument Redemption (Details) - Senior Notes [Member] - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 500,000,000 | $ 500,000,000 |
Unamortized discount | (1,984,000) | (2,053,000) |
Unamortized debt issuance costs | (4,281,000) | (4,421,000) |
Long-term debt | 493,735,000 | 493,526,000 |
Senior Notes Due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 250,000,000 | $ 250,000,000 |
Stated interest rate | 4.40% | 4.40% |
Percentage of issuance price | 99.883% | |
Senior Notes Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 250,000,000 | $ 250,000,000 |
Stated interest rate | 4.25% | 4.25% |
Percentage of issuance price | 99.026% |
Debt - Schedule of Credit Agre
Debt - Schedule of Credit Agreement Terms (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Revolving credit facility borrowings | $ 147,000,000 | $ 177,000,000 |
Remaining borrowing capacity | 253,000,000 | |
Unsecured Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | $ 4,670,000 | $ 4,924,000 |
Unsecured Revolving Credit Facility, Expiring August 2019 [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.85% | |
Unsecured Revolving Credit Facility, Expiring August 2019 [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.55% | |
Unsecured Revolving Credit Facility, Expiring August 2019 [Member] | Unsecured Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 400,000,000 | |
Basis spread on variable at the end of the period | 1.00% | |
Revolving credit facility borrowings | $ 147,000,000 | |
Unsecured Term Loan, Expiring August 2020 [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.90% | |
Unsecured Term Loan, Expiring August 2020 [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.75% | |
Unsecured Term Loan, Expiring August 2020 [Member] | Unsecured Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 250,000,000 | |
Basis spread on variable at the end of the period | 1.10% | |
Unsecured Term Loan, Expiring February 2018 [Member] | Interest Rate Swap [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 1.09% | |
Unsecured Term Loan, Expiring February 2018 [Member] | Unsecured Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 250,000,000 | |
Unsecured Term Loan, Expiring January 2021 [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.90% | |
Unsecured Term Loan, Expiring January 2021 [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.75% | |
Unsecured Term Loan, Expiring January 2021 [Member] | Unsecured Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 255,000,000 | |
Basis spread on variable at the end of the period | 1.10% | |
Unsecured Term Loan, Expiring January 2019 [Member] | Interest Rate Swap [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 1.42% | |
Unsecured Term Loan, Expiring January 2019 [Member] | Unsecured Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 255,000,000 |
Debt - Additional disclosures
Debt - Additional disclosures related to the 6.00% Convertible Guaranteed Notes due 2030 (Details) - 6% Convertible Guaranteed Note [Member] - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2010 | |
Debt Instrument [Line Items] | ||||
Principal amount of debt component | $ 12,400,000 | $ 12,400,000 | $ 115,000,000 | |
Unamortized discount | (167,000) | (220,000) | ||
Unamortized debt issuance costs | (41,000) | (54,000) | ||
Carrying amount of debt component | 12,192,000 | 12,126,000 | ||
Carrying amount of equity component | $ (34,784,000) | $ (34,784,000) | ||
Effective interest rate | 8.10% | 7.80% | ||
Aggregate if-converted value in excess of aggregate principal amount | $ 4,295,000 | $ 2,863,000 | ||
Stated interest rate | 6.00% | 6.00% | ||
Coupon interest | $ 186,000 | $ 236,000 | ||
Discount amortization | 53,000 | 67,000 | ||
Interest expense | $ 239,000 | $ 303,000 |
Derivatives and Hedging Activ51
Derivatives and Hedging Activities (Details) | 3 Months Ended | ||
Mar. 31, 2016USD ($)Financial_Instrument | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | |
Derivative [Line Items] | |||
Expected amount of derivative related interest to be reclassified to interest expense over the next 12 months | $ 3,520,000 | ||
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Other Assets [Member] | |||
Derivative [Line Items] | |||
Derivative asset | $ 4,000 | ||
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Accounts Payable And Other Liabilities [Member] | |||
Derivative [Line Items] | |||
Derivative liability | (6,564,000) | $ (1,943,000) | |
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Notional amount | $ 505,000,000 | ||
Number of derivative instruments held | Financial_Instrument | 10 | ||
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Interest Expense [Member] | |||
Derivative [Line Items] | |||
Amount of gain (loss) recognized in OCI on derivatives (effective portion) | $ (5,691,000) | $ (5,468,000) | |
Amount of loss reclassified from accumulated OCI into income (effective portion) | $ 1,066,000 | $ 1,372,000 |
Concentration of Risk (Details)
Concentration of Risk (Details) - tenant | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Concentration Risk [Line Items] | ||
Number of tenants representing more than 10% of rental revenue | 0 | 0 |
Tenant Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 10.00% | 10.00% |
Equity - Additional Informatio
Equity - Additional Information (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Mar. 31, 2016USD ($)$ / sharesshares | Mar. 31, 2015USD ($)shares | Dec. 31, 2015USD ($) | Jul. 31, 2015shares | |
Equity [Line Items] | ||||
Proceeds from issuance of common shares | $ | $ 3,751 | $ 6,582 | ||
Authorized amount (in shares) | 10,000,000 | |||
Treasury stock acquired (in shares) | 1,184,113 | |||
Treasury stock acquired, average cost (in dollars per share) | $ / shares | $ 7.56 | |||
Gains and losses on cash flow hedges | $ | $ (6,564) | $ (1,939) | ||
OP unit equivalent in common shares | 1.13 | |||
Partners' capital account, units | 3,393,000 | |||
Direct Share Purchase Plan [Member] | ||||
Equity [Line Items] | ||||
Common shares issued during period | 577,823 | 627,247 | ||
Proceeds from issuance of common shares | $ | $ 4,115 | $ 6,685 |
Equity - Schedule of Shares Is
Equity - Schedule of Shares Issued (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Performance Shares [Member] | Index Performance Shares [Member] | ||
Class of Stock [Line Items] | ||
Shares issued | 404,466 | 321,018 |
Weighted average grant date fair value (in dollars per share) | $ 4.53 | $ 6.86 |
Performance Shares [Member] | Peer Performance Shares [Member] | ||
Class of Stock [Line Items] | ||
Shares issued | 404,463 | 321,011 |
Weighted average grant date fair value (in dollars per share) | $ 4.58 | $ 6.66 |
Restricted Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares issued | 225,090 | 170,650 |
Grant date fair value | $ 1,724 | $ 1,916 |
Award requisite service period (in years) | 3 years | |
Stock Compensation Plan [Member] | ||
Class of Stock [Line Items] | ||
Shares issued | 17,500 | 14,000 |
Grant date fair value | $ 131 | $ 157 |
Equity - Changes in Other Comp
Equity - Changes in Other Comprehensive Income (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning Balance | $ 1,462,531 |
Ending Balance | 1,463,546 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest [Member] | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning Balance | (1,939) |
Other comprehensive loss before reclassifications | (5,691) |
Amounts of loss reclassified from accumulated other comprehensive income to interest expense | 1,066 |
Ending Balance | $ (6,564) |
Related Party Transactions (Det
Related Party Transactions (Details) - Affiliated Entity [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Related Party Transaction [Line Items] | |
Guaranty obligation | $ 18,000 |
Maximum amount to be distributed to related party | $ 7 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | Sep. 16, 2015USD ($) |
Bridgewater Hills Corporate Center, LLC [Member] | |
Commitments and Contingencies [Line Items] | |
Damages sought, value | $ 15,500 |
Supplemental Disclosure of St58
Supplemental Disclosure of Statement of Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Supplemental Cash Flow Information [Abstract] | ||
Interest paid | $ 17,002 | $ 18,671 |
Income taxes paid | $ 169 | $ 338 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
May. 05, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | |
Subsequent Event [Line Items] | |||
Expected Maximum Commitment/Contribution | $ 298,621 | ||
Mortgage payable | $ 0 | $ 32 | |
Subsequent Event [Member] | Opelika, Alabama [Member] | Industrial property [Member] | |||
Subsequent Event [Line Items] | |||
Expected Maximum Commitment/Contribution | $ 37,000 | ||
Term of contract (in years) | 25 years | ||
Subsequent Event [Member] | New York, New York [Member] | Land [Member] | |||
Subsequent Event [Line Items] | |||
Proceeds from sale of real estate | $ 37,500 | ||
Mortgage payable | 29,193 | ||
Subsequent Event [Member] | Lake Forest, California [Member] | Office Building [Member] | |||
Subsequent Event [Line Items] | |||
Proceeds from sale of real estate | $ 19,000 |