Document_and_Entity_Informatio
Document and Entity Information Document | 9 Months Ended | |
Sep. 30, 2013 | Oct. 21, 2013 | |
Entity Information [Line Items] | ||
Entity Registrant Name | HIGHWOODS PROPERTIES INC. | |
Entity Central Index Key | 921082 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 30-Sep-13 | |
Document Fiscal Year Focus | 2013 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 89,910,944 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Highwoods Realty Limited Partnership [Member] | ||
Entity Information [Line Items] | ||
Entity Registrant Name | HIGHWOODS REALTY LIMITED PARTNERSHIP | |
Entity Central Index Key | 941713 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 30-Sep-13 | |
Document Fiscal Year Focus | 2013 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | FALSE | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Real estate assets, at cost: | ||
Land | $403,556 | $345,614 |
Buildings and tenant improvements | 3,756,552 | 3,172,107 |
Development in process | 56,495 | 21,198 |
Land held for development | 112,079 | 115,416 |
Total real estate assets | 4,328,682 | 3,654,335 |
Less-accumulated depreciation | -981,602 | -903,837 |
Net real estate assets | 3,347,080 | 2,750,498 |
Real estate and other assets, net, held for sale | 16,316 | 129,400 |
Cash and cash equivalents | 31,689 | 13,783 |
Restricted cash | 15,246 | 19,702 |
Accounts receivable, net of allowance of $1,532 and $2,848, respectively | 30,839 | 23,073 |
Mortgages and notes receivable, net of allowance of $340 and $182, respectively | 26,291 | 25,472 |
Accrued straight-line rents receivable, net of allowance of $1,177 and $813, respectively | 123,047 | 111,233 |
Investments in and advances to unconsolidated affiliates | 35,856 | 66,800 |
Deferred financing and leasing costs, net of accumulated amortization of $90,241 and $75,863, respectively | 227,826 | 166,009 |
Prepaid expenses and other assets, net of accumulated amortization of $12,835 and $12,318, respectively | 42,675 | 44,458 |
Total Assets | 3,896,865 | 3,350,428 |
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Liabilities, Redeemable Operating Partnership Units and Equity: | ||
Mortgages and notes payable | 2,050,061 | 1,859,162 |
Accounts payable, accrued expenses and other liabilities | 208,536 | 172,146 |
Financing obligations | 28,192 | 29,358 |
Total Liabilities | 2,286,789 | 2,060,666 |
Commitments and contingencies | ||
Noncontrolling interests in the Operating Partnership | 103,948 | 124,869 |
Equity: | ||
Preferred Stock, $.01 par value, 50,000,000 authorized shares; 8.625% Series A Cumulative Redeemable Preferred Shares (liquidation preference $1,000 per share; 29,077 shares issued and outstanding) | 29,077 | 29,077 |
Common Stock, $.01 par value, 200,000,000 authorized shares; 89,910,944 and 80,311,437 shares issued and outstanding, respectively | 899 | 803 |
Additional paid-in capital | 2,371,925 | 2,040,306 |
Distributions in excess of net income available for common stockholders | -911,948 | -897,418 |
Accumulated other comprehensive loss | -5,003 | -12,628 |
Total Stockholders’ Equity | 1,484,950 | 1,160,140 |
Noncontrolling interests in consolidated affiliates | 21,178 | 4,753 |
Total Equity | 1,506,128 | 1,164,893 |
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Equity | 3,896,865 | 3,350,428 |
Highwoods Realty Limited Partnership [Member] | ||
Real estate assets, at cost: | ||
Land | 403,556 | 345,614 |
Buildings and tenant improvements | 3,756,552 | 3,172,107 |
Development in process | 56,495 | 21,198 |
Land held for development | 112,079 | 115,416 |
Total real estate assets | 4,328,682 | 3,654,335 |
Less-accumulated depreciation | -981,602 | -903,837 |
Net real estate assets | 3,347,080 | 2,750,498 |
Real estate and other assets, net, held for sale | 16,316 | 129,400 |
Cash and cash equivalents | 31,780 | 13,867 |
Restricted cash | 15,246 | 19,702 |
Accounts receivable, net of allowance of $1,532 and $2,848, respectively | 30,839 | 23,073 |
Mortgages and notes receivable, net of allowance of $340 and $182, respectively | 26,291 | 25,472 |
Accrued straight-line rents receivable, net of allowance of $1,177 and $813, respectively | 123,047 | 111,233 |
Investments in and advances to unconsolidated affiliates | 34,838 | 65,813 |
Deferred financing and leasing costs, net of accumulated amortization of $90,241 and $75,863, respectively | 227,826 | 166,009 |
Prepaid expenses and other assets, net of accumulated amortization of $12,835 and $12,318, respectively | 42,628 | 44,458 |
Total Assets | 3,895,891 | 3,349,525 |
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Liabilities, Redeemable Operating Partnership Units and Equity: | ||
Mortgages and notes payable | 2,050,061 | 1,859,162 |
Accounts payable, accrued expenses and other liabilities | 208,467 | 172,026 |
Financing obligations | 28,192 | 29,358 |
Total Liabilities | 2,286,720 | 2,060,546 |
Commitments and contingencies | ||
Redeemable Operating Partnership Units: | ||
Common Units, 2,943,872 and 3,733,016 outstanding, respectively | 103,948 | 124,869 |
Series A Preferred Units (liquidation preference $1,000 per unit), 29,077 units issued and outstanding | 29,077 | 29,077 |
Total Redeemable Operating Partnership Units | 133,025 | 153,946 |
Equity: | ||
General partner Common Units, 924,460 and 836,356 outstanding, respectively | 14,598 | 11,427 |
Limited partner Common Units, 88,577,675 and 79,066,272 outstanding, respectively | 1,445,373 | 1,131,481 |
Accumulated other comprehensive loss | -5,003 | -12,628 |
Noncontrolling interests in consolidated affiliates | 21,178 | 4,753 |
Total Equity | 1,476,146 | 1,135,033 |
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Equity | $3,895,891 | $3,349,525 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Assets: | ||
Accounts receivable allowance | $1,532 | $2,848 |
Mortgages and notes receivable allowance | 340 | 182 |
Accrued straight-line rents receivable allowance | 1,177 | 813 |
Deferred financing and leasing costs, accumulated amortization | 90,241 | 75,863 |
Prepaid expenses and other assets, accumulated amortization | 12,835 | 12,318 |
Equity: | ||
Series A Preferred Stock, dividend rate percentage (in hundredths) | 8.63% | 8.63% |
Series A Preferred Stock, par value (in dollars per share) | $0.01 | $0.01 |
Series A Preferred Stock, authorized shares (in shares) | 50,000,000 | 50,000,000 |
Series A Preferred Stock, liquidation preference (in dollars per share) | $1,000 | $1,000 |
Series A Preferred Stock, shares issued (in shares) | 29,077 | 29,077 |
Series A Preferred Stock, shares outstanding (in shares) | 29,077 | 29,077 |
Common Stock, par value (in dollars per share) | $0.01 | $0.01 |
Common Stock, authorized shares (in shares) | 200,000,000 | 200,000,000 |
Common Stock, shares issued (in shares) | 89,910,944 | 80,311,437 |
Common Stock, shares outstanding (in shares) | 89,910,944 | 80,311,437 |
Highwoods Realty Limited Partnership [Member] | ||
Assets: | ||
Accounts receivable allowance | 1,532 | 2,848 |
Mortgages and notes receivable allowance | 340 | 182 |
Accrued straight-line rents receivable allowance | 1,177 | 813 |
Deferred financing and leasing costs, accumulated amortization | 90,241 | 75,863 |
Prepaid expenses and other assets, accumulated amortization | $12,835 | $12,318 |
Redeemable Operating Partnership Units: [Abstract] | ||
Redeemable Common Units outstanding (in shares) | 2,943,872 | 3,733,016 |
Series A Preferred Units, liquidation preference (in dollars per share) | $1,000 | $1,000 |
Series A Preferred Units, issued (in shares) | 29,077 | 29,077 |
Series A Preferred Units, outstanding (in shares) | 29,077 | 29,077 |
Common Units: [Abstract] | ||
General partners' capital account, units outstanding (in shares) | 924,460 | 836,356 |
Limited partners' capital account, units outstanding (in shares) | 88,577,675 | 79,066,272 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Rental and other revenues | $147,294 | $123,418 | $415,961 | $368,029 | ||||
Operating expenses: | ||||||||
Rental property and other expenses | 55,365 | 45,904 | 151,802 | 134,102 | ||||
Depreciation and amortization | 48,124 | 37,041 | 130,390 | 110,656 | ||||
General and administrative | 8,969 | 9,725 | 27,948 | 28,298 | ||||
Total operating expenses | 112,458 | 92,670 | 310,140 | 273,056 | ||||
Interest expense: | ||||||||
Contractual | 22,683 | 22,910 | 67,879 | 70,309 | ||||
Amortization of deferred financing costs | 963 | 907 | 2,860 | 2,709 | ||||
Financing obligations | 26 | -205 | 87 | -357 | ||||
Total interest expense | 23,672 | 23,612 | 70,826 | 72,661 | ||||
Other income: | ||||||||
Interest and other income | 1,582 | 1,916 | 4,982 | 5,883 | ||||
Losses on debt extinguishment | -32 | 0 | -196 | -973 | ||||
Total other income | 1,550 | 1,916 | 4,786 | 4,910 | ||||
Income from continuing operations before disposition of property and condominiums and acquisition of controlling interest in and equity in earnings/(losses) of unconsolidated affiliates | 12,714 | 9,052 | 39,781 | 27,222 | ||||
Gains/(losses) on disposition of property | 34 | 0 | -3 | 0 | ||||
Gains on for-sale residential condominiums | 0 | 80 | 0 | 255 | ||||
Gain on acquisition of controlling interest in unconsolidated affiliate | 7,451 | 0 | 7,451 | 0 | ||||
Equity in earnings/(losses) of unconsolidated affiliates | -3,173 | 1,324 | -1,824 | 2,670 | ||||
Income from continuing operations | 17,026 | 10,456 | 45,405 | 30,147 | ||||
Discontinued operations: | ||||||||
Income from discontinued operations | 1,096 | 2,404 | 3,843 | 9,024 | ||||
Impairments of real estate assets | 0 | 0 | -2,194 | 0 | ||||
Net gains on disposition of discontinued operations | 37,946 | 22,936 | 52,353 | 29,455 | ||||
Total discontinued operations | 39,042 | 25,340 | 54,002 | 38,479 | ||||
Net income | 56,068 | 35,796 | 99,407 | 68,626 | ||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | -1,889 | -1,653 | -3,713 | -3,166 | ||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | -203 | -159 | -593 | -566 | ||||
Dividends on Preferred Stock | -627 | -627 | -1,881 | -1,881 | ||||
Net income available for common stockholders | 53,349 | 33,357 | 93,220 | 63,013 | ||||
Earnings per Common Share – basic: | ||||||||
Income from continuing operations available for common stockholders (in dollars per share) | $0.18 | $0.12 | $0.49 | $0.35 | ||||
Income from discontinued operations available for common stockholders (in dollars per share) | $0.43 | $0.32 | $0.62 | $0.49 | ||||
Net income available for common stockholders (in dollars per share) | $0.61 | $0.44 | $1.11 | $0.84 | ||||
Weighted average Common Shares outstanding - basic (in shares) | 87,467 | [1],[2] | 76,590 | [1],[2] | 83,793 | [1],[2] | 74,703 | [1],[2] |
Earnings per Common Share - diluted: | ||||||||
Income from continuing operations available for common stockholders (in dollars per share) | $0.18 | $0.12 | $0.49 | $0.35 | ||||
Income from discontinued operations available for common stockholders (in dollars per share) | $0.43 | $0.31 | $0.62 | $0.49 | ||||
Net income available for common stockholders (in dollars per share) | $0.61 | $0.43 | $1.11 | $0.84 | ||||
Weighted average Common Shares outstanding - diluted (in shares) | 90,769 | [1] | 80,495 | [1] | 87,443 | [1] | 78,568 | [1] |
Dividends declared per Common Share (in dollars per share) | $0.43 | $0.43 | $1.27 | $1.27 | ||||
Net income available for common stockholders: | ||||||||
Income from continuing operations available for common stockholders | 15,693 | 9,211 | 41,247 | 26,365 | ||||
Income from discontinued operations available for common stockholders | 37,656 | 24,146 | 51,973 | 36,648 | ||||
Net income available for common stockholders | 53,349 | 33,357 | 93,220 | 63,013 | ||||
Highwoods Realty Limited Partnership [Member] | ||||||||
Rental and other revenues | 147,294 | 123,418 | 415,961 | 368,029 | ||||
Operating expenses: | ||||||||
Rental property and other expenses | 55,343 | 45,830 | 151,784 | 133,907 | ||||
Depreciation and amortization | 48,124 | 37,041 | 130,390 | 110,656 | ||||
General and administrative | 8,991 | 9,799 | 27,966 | 28,493 | ||||
Total operating expenses | 112,458 | 92,670 | 310,140 | 273,056 | ||||
Interest expense: | ||||||||
Contractual | 22,683 | 22,910 | 67,879 | 70,309 | ||||
Amortization of deferred financing costs | 963 | 907 | 2,860 | 2,709 | ||||
Financing obligations | 26 | -205 | 87 | -357 | ||||
Total interest expense | 23,672 | 23,612 | 70,826 | 72,661 | ||||
Other income: | ||||||||
Interest and other income | 1,582 | 1,916 | 4,982 | 5,883 | ||||
Losses on debt extinguishment | -32 | 0 | -196 | -973 | ||||
Total other income | 1,550 | 1,916 | 4,786 | 4,910 | ||||
Income from continuing operations before disposition of property and condominiums and acquisition of controlling interest in and equity in earnings/(losses) of unconsolidated affiliates | 12,714 | 9,052 | 39,781 | 27,222 | ||||
Gains/(losses) on disposition of property | 34 | 0 | -3 | 0 | ||||
Gains on for-sale residential condominiums | 0 | 80 | 0 | 255 | ||||
Gain on acquisition of controlling interest in unconsolidated affiliate | 7,451 | 0 | 7,451 | 0 | ||||
Equity in earnings/(losses) of unconsolidated affiliates | -3,174 | 1,328 | -1,875 | 2,679 | ||||
Income from continuing operations | 17,025 | 10,460 | 45,354 | 30,156 | ||||
Discontinued operations: | ||||||||
Income from discontinued operations | 1,096 | 2,404 | 3,843 | 9,024 | ||||
Impairments of real estate assets | 0 | 0 | -2,194 | 0 | ||||
Net gains on disposition of discontinued operations | 37,946 | 22,936 | 52,353 | 29,455 | ||||
Total discontinued operations | 39,042 | 25,340 | 54,002 | 38,479 | ||||
Net income | 56,067 | 35,800 | 99,356 | 68,635 | ||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | -203 | -159 | -593 | -566 | ||||
Distributions on Preferred Units | -627 | -627 | -1,881 | -1,881 | ||||
Net income available for common unitholders | 55,237 | 35,014 | 96,882 | 66,188 | ||||
Earnings per Common Unit - basic: | ||||||||
Income from continuing operations available for common unitholders (in dollars per share) | $0.18 | $0.12 | $0.49 | $0.36 | ||||
Income from discontinued operations available for common unitholders (in dollars per share) | $0.43 | $0.32 | $0.62 | $0.49 | ||||
Net income available for common unitholders (in dollars per share) | $0.61 | $0.44 | $1.11 | $0.85 | ||||
Weighted average Common Units outstanding - basic (in shares) | 90,259 | [2],[3] | 79,949 | [2],[3] | 86,920 | [2],[3] | 78,032 | [2],[3] |
Earnings per Common Unit - diluted: | ||||||||
Income from continuing operations available for common unitholders (in dollars per share) | $0.18 | $0.12 | $0.49 | $0.36 | ||||
Income from discontinued operations available for common unitholders (in dollars per share) | $0.43 | $0.32 | $0.62 | $0.49 | ||||
Net income available for common unitholders (in dollars per share) | $0.61 | $0.44 | $1.11 | $0.85 | ||||
Weighted average Common Units outstanding - diluted (in shares) | 90,360 | [3] | 80,086 | [3] | 87,034 | [3] | 78,159 | [3] |
Distributions declared per Common Unit (in dollars per unit) | $0.43 | $0.43 | $1.27 | $1.27 | ||||
Net income available for common unitholders: | ||||||||
Income from continuing operations available for common unitholders | 16,195 | 9,674 | 42,880 | 27,709 | ||||
Income from discontinued operations available for common unitholders | 39,042 | 25,340 | 54,002 | 38,479 | ||||
Net income available for common unitholders | $55,237 | $35,014 | $96,882 | $66,188 | ||||
[1] | There were 0.3 million and 0.5 million options outstanding during the three months ended September 30, 2013 and 2012, respectively, and 0.3 million and 0.5 million options outstanding during the nine months ended September 30, 2013 and 2012, respectively, that were not included in the computation of diluted earnings per share because the impact of including such options would be anti-dilutive. | |||||||
[2] | Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable. | |||||||
[3] | There were 0.3 million and 0.5 million options outstanding during the three months ended September 30, 2013 and 2012, respectively, and 0.3 million and 0.5 million options outstanding during the nine months ended September 30, 2013 and 2012, respectively, that were not included in the computation of diluted earnings per unit because the impact of including such options would be anti-dilutive. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Comprehensive income: | ||||
Net income | $56,068 | $35,796 | $99,407 | $68,626 |
Other comprehensive income: | ||||
Unrealized gains/(losses) on tax increment financing bond | 97 | -101 | 396 | 482 |
Unrealized gains/(losses) on cash flow hedges | -1,798 | -3,337 | 4,801 | -10,424 |
Amortization of cash flow hedges | 840 | 791 | 2,428 | 2,250 |
Total other comprehensive income/(loss) | -861 | -2,647 | 7,625 | -7,692 |
Total comprehensive income | 55,207 | 33,149 | 107,032 | 60,934 |
Less-comprehensive (income) attributable to noncontrolling interests | -2,092 | -1,812 | -4,306 | -3,732 |
Comprehensive income attributable to common stockholders/Comprehensive income attributable to common unitholders | 53,115 | 31,337 | 102,726 | 57,202 |
Highwoods Realty Limited Partnership [Member] | ||||
Comprehensive income: | ||||
Net income | 56,067 | 35,800 | 99,356 | 68,635 |
Other comprehensive income: | ||||
Unrealized gains/(losses) on tax increment financing bond | 97 | -101 | 396 | 482 |
Unrealized gains/(losses) on cash flow hedges | -1,798 | -3,337 | 4,801 | -10,424 |
Amortization of cash flow hedges | 840 | 791 | 2,428 | 2,250 |
Total other comprehensive income/(loss) | -861 | -2,647 | 7,625 | -7,692 |
Total comprehensive income | 55,206 | 33,153 | 106,981 | 60,943 |
Less-comprehensive (income) attributable to noncontrolling interests | -203 | -159 | -593 | -566 |
Comprehensive income attributable to common stockholders/Comprehensive income attributable to common unitholders | $55,003 | $32,994 | $106,388 | $60,377 |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity (USD $) | Total | Highwoods Realty Limited Partnership [Member] | Common Stock [Member] | Series A Cumulative Redeemable Preferred Shares [Member] | General Partner Common Units [Member] | Limited Partner Common Units [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interests in Consolidated Affiliates [Member] | Noncontrolling Interests in Consolidated Affiliates [Member] | Distributions in Excess of Net Income Available for Common Stockholders [Member] |
In Thousands, except Share data, unless otherwise specified | Highwoods Realty Limited Partnership [Member] | Highwoods Realty Limited Partnership [Member] | Highwoods Realty Limited Partnership [Member] | Highwoods Realty Limited Partnership [Member] | ||||||||
Balance at Dec. 31, 2011 | $986,859 | $956,674 | $726 | $29,077 | $9,575 | $948,187 | $1,803,997 | ($5,734) | ($5,734) | $4,646 | $4,646 | ($845,853) |
Balance (in shares) at Dec. 31, 2011 | 72,647,697 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Issuances of Common Units, net of tax withholdings | 188,973 | 1,890 | 187,083 | 0 | 0 | |||||||
Distributions paid on Common Units | -99,334 | -994 | -98,340 | 0 | 0 | |||||||
Distributions paid on Preferred Units | -1,881 | -19 | -1,862 | 0 | 0 | |||||||
Issuances of Common Stock - Shares | 5,701,974 | |||||||||||
Issuances of Common Stock, net of tax withholdings | 186,674 | 57 | 0 | 186,617 | 0 | 0 | 0 | |||||
Conversions of Common Units to Common Stock - Shares | 21,366 | |||||||||||
Conversions of Common Units to Common Stock | 731 | 0 | 0 | 731 | 0 | 0 | 0 | |||||
Dividends on Common Stock | -95,122 | 0 | 0 | 0 | 0 | 0 | -95,122 | |||||
Dividends on Preferred Stock | -1,881 | 0 | 0 | 0 | 0 | 0 | -1,881 | |||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | -12,485 | 0 | 0 | -12,485 | 0 | 0 | 0 | |||||
Distributions to noncontrolling interests in consolidated affiliates | -663 | -663 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -663 | -663 | 0 |
Issuances of restricted stock -shares | 158,885 | |||||||||||
Issuances of restricted stock | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Share-based compensation expense, net of forfeitures | 6,464 | 6,464 | 2 | 0 | 65 | 6,399 | 6,462 | 0 | 0 | 0 | 0 | 0 |
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner | -12,814 | -128 | -12,686 | 0 | 0 | |||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | -3,166 | 0 | 0 | 0 | 0 | 0 | -3,166 | |||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | 0 | 0 | 0 | 0 | -6 | -560 | 0 | 0 | 0 | 566 | 566 | -566 |
Comprehensive income: | ||||||||||||
Net income | 68,626 | 68,635 | 0 | 0 | 686 | 67,949 | 0 | 0 | 0 | 0 | 0 | 68,626 |
Other comprehensive income/(loss) | -7,692 | -7,692 | 0 | 0 | 0 | 0 | 0 | -7,692 | -7,692 | 0 | 0 | 0 |
Total comprehensive income | 60,934 | 60,943 | ||||||||||
Balance at Sep. 30, 2012 | 1,128,345 | 1,098,362 | 785 | 29,077 | 11,069 | 1,096,170 | 1,985,322 | -13,426 | -13,426 | 4,549 | 4,549 | -877,962 |
Balance (in shares) at Sep. 30, 2012 | 78,529,922 | |||||||||||
Balance at Jun. 30, 2012 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | -1,653 | |||||||||||
Comprehensive income: | ||||||||||||
Net income | 35,796 | 35,800 | ||||||||||
Other comprehensive income/(loss) | -2,647 | -2,647 | ||||||||||
Total comprehensive income | 33,149 | 33,153 | ||||||||||
Balance at Sep. 30, 2012 | 1,128,345 | 1,098,362 | ||||||||||
Balance at Dec. 31, 2012 | 1,164,893 | 1,135,033 | 803 | 29,077 | 11,427 | 1,131,481 | 2,040,306 | -12,628 | -12,628 | 4,753 | 4,753 | -897,418 |
Balance (in shares) at Dec. 31, 2012 | 80,311,437 | 80,311,437 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Issuances of Common Units, net of tax withholdings | 305,601 | 3,056 | 302,545 | 0 | 0 | |||||||
Distributions paid on Common Units | -111,645 | -1,117 | -110,528 | 0 | 0 | |||||||
Distributions paid on Preferred Units | -1,881 | -19 | -1,862 | 0 | 0 | |||||||
Issuances of Common Stock - Shares | 8,660,546 | |||||||||||
Issuances of Common Stock, net of tax withholdings | 305,601 | 87 | 0 | 305,514 | 0 | 0 | 0 | |||||
Conversions of Common Units to Common Stock - Shares | 789,144 | |||||||||||
Conversions of Common Units to Common Stock | 28,788 | 0 | 0 | 28,788 | 0 | 0 | 0 | |||||
Dividends on Common Stock | -107,750 | 0 | 0 | 0 | 0 | 0 | -107,750 | |||||
Dividends on Preferred Stock | -1,881 | 0 | 0 | 0 | 0 | 0 | -1,881 | |||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | -8,570 | 0 | 0 | -8,570 | 0 | 0 | 0 | |||||
Distributions to noncontrolling interests in consolidated affiliates | -408 | -408 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -408 | -408 | 0 |
Contributions from noncontrolling interests in consolidated affiliates | 16,240 | 16,240 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 16,240 | 16,240 | 0 |
Issuances of restricted stock -shares | 151,630 | |||||||||||
Issuances of restricted stock | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Share-based compensation expense, net of forfeitures - Shares | -1,813 | |||||||||||
Share-based compensation expense, net of forfeitures | 5,896 | 5,896 | 9 | 0 | 59 | 5,837 | 5,887 | 0 | 0 | 0 | 0 | 0 |
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner | 20,329 | 204 | 20,125 | 0 | 0 | |||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | -3,713 | 0 | 0 | 0 | 0 | 0 | -3,713 | |||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | 0 | 0 | 0 | 0 | -6 | -587 | 0 | 0 | 0 | 593 | 593 | -593 |
Comprehensive income: | ||||||||||||
Net income | 99,407 | 99,356 | 0 | 0 | 994 | 98,362 | 0 | 0 | 0 | 0 | 0 | 99,407 |
Other comprehensive income/(loss) | 7,625 | 7,625 | 0 | 0 | 0 | 0 | 0 | 7,625 | 7,625 | 0 | 0 | 0 |
Total comprehensive income | 107,032 | 106,981 | ||||||||||
Balance at Sep. 30, 2013 | 1,506,128 | 1,476,146 | 899 | 29,077 | 14,598 | 1,445,373 | 2,371,925 | -5,003 | -5,003 | 21,178 | 21,178 | -911,948 |
Balance (in shares) at Sep. 30, 2013 | 89,910,944 | 89,910,944 | ||||||||||
Balance at Jun. 30, 2013 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | -1,889 | |||||||||||
Comprehensive income: | ||||||||||||
Net income | 56,068 | 56,067 | ||||||||||
Other comprehensive income/(loss) | -861 | -861 | ||||||||||
Total comprehensive income | 55,207 | 55,206 | ||||||||||
Balance at Sep. 30, 2013 | $1,506,128 | $1,476,146 | ||||||||||
Balance (in shares) at Sep. 30, 2013 | 89,910,944 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Operating activities: | ||
Net income | $99,407 | $68,626 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 133,556 | 117,764 |
Amortization of lease incentives and acquisition-related intangible assets and liabilities | 258 | 358 |
Share-based compensation expense | 5,896 | 6,464 |
Allowance for losses on accounts and accrued straight-line rents receivable | 1,029 | 1,235 |
Amortization of deferred financing costs | 2,860 | 2,709 |
Amortization of cash flow hedges | 2,428 | 2,250 |
Amortization of mortgages and notes payable fair value adjustments | -1,015 | 0 |
Impairments of real estate assets | 2,194 | 0 |
Losses on debt extinguishment | 196 | 973 |
Net gains on disposition of property | -52,350 | -29,455 |
Gains on for-sale residential condominiums | 0 | -255 |
Gain on acquisition of controlling interest in unconsolidated affiliate | -7,451 | 0 |
Equity in (earnings)/losses of unconsolidated affiliates | 1,824 | -2,670 |
Changes in financing obligations | -591 | -1,010 |
Distributions of earnings from unconsolidated affiliates | 3,129 | 3,249 |
Changes in operating assets and liabilities: | ||
Accounts receivable | -508 | 5,310 |
Prepaid expenses and other assets | -2,188 | -3,258 |
Accrued straight-line rents receivable | -12,368 | -13,609 |
Accounts payable, accrued expenses and other liabilities | 10,206 | -20,663 |
Net cash provided by operating activities | 186,512 | 138,018 |
Investing activities: | ||
Investments in acquired real estate and related intangible assets, net of cash acquired | -418,796 | -158,200 |
Investment in acquired controlling interest in unconsolidated affiliate | -32,818 | 0 |
Investments in development in process | -16,634 | -5,392 |
Investments in tenant improvements and deferred leasing costs | -77,456 | -61,821 |
Investments in building improvements | -38,702 | -27,229 |
Net proceeds from disposition of real estate assets | 161,970 | 152,456 |
Net proceeds from disposition of for-sale residential condominiums | 0 | 3,768 |
Distributions of capital from unconsolidated affiliates | 16,671 | 1,035 |
Investments in and repayments of mortgages and notes receivable | -864 | 1,657 |
Investments in and advances/repayments to/from unconsolidated affiliates | -429 | -3,928 |
Changes in restricted cash and other investing activities | 5,484 | 2,904 |
Net cash (used in) investing activities | -401,574 | -94,750 |
Financing activities: | ||
Dividends on Common Stock | -107,750 | -95,122 |
Dividends on Preferred Stock | -1,881 | -1,881 |
Distributions to noncontrolling interests in the Operating Partnership | -4,416 | -4,733 |
Distributions to noncontrolling interests in consolidated affiliates | -408 | -663 |
Proceeds from the issuance of Common Stock | 315,818 | 191,667 |
Costs paid for the issuance of Common Stock | -7,678 | -2,745 |
Repurchase of shares related to tax withholdings | -2,539 | -2,248 |
Borrowings on revolving credit facility | 695,300 | 219,800 |
Repayments of revolving credit facility | -511,900 | -492,800 |
Borrowings on mortgages and notes payable | 0 | 225,000 |
Repayments of mortgages and notes payable | -157,001 | -77,264 |
Payments on financing obligations | -575 | -1,316 |
Contributions from noncontrolling interests in consolidated affiliates | 16,240 | 0 |
Additions to deferred financing costs and other financing activities | -242 | -3,065 |
Net cash provided by/(used in) financing activities | 232,968 | -45,370 |
Net increase/(decrease) in cash and cash equivalents | 17,906 | -2,102 |
Cash and cash equivalents at beginning of the period | 13,783 | 11,188 |
Cash and cash equivalents at end of the period | 31,689 | 9,086 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest, net of amounts capitalized | 67,786 | 72,793 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Unrealized gains/(losses) on cash flow hedges | 4,801 | -10,424 |
Conversions of Common Units to Common Stock | 28,788 | 731 |
Changes in accrued capital expenditures | 12,778 | 1,829 |
Write-off of fully depreciated real estate assets | 24,498 | 36,918 |
Write-off of fully amortized deferred financing and leasing costs | 17,500 | 14,189 |
Unrealized gains on marketable securities of non-qualified deferred compensation plan | 558 | 310 |
Adjustment of noncontrolling interests in the Operating Partnership to fair value | 8,570 | 12,485 |
Unrealized gains on tax increment financing bond | 396 | 482 |
Assumption of mortgages and notes payable related to acquisition activities | 165,515 | 0 |
Reduction of advances to unconsolidated affiliates related to acquisition activities | 0 | 26,000 |
Issuances of Common Units to acquire real estate assets | 0 | 2,299 |
Reclass of aggregate differences between historical cost basis and the basis reflected at the joint venture level for assets acquired | 8,206 | 0 |
Highwoods Realty Limited Partnership [Member] | ||
Operating activities: | ||
Net income | 99,356 | 68,635 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 133,556 | 117,764 |
Amortization of lease incentives and acquisition-related intangible assets and liabilities | 258 | 358 |
Share-based compensation expense | 5,896 | 6,464 |
Allowance for losses on accounts and accrued straight-line rents receivable | 1,029 | 1,235 |
Amortization of deferred financing costs | 2,860 | 2,709 |
Amortization of cash flow hedges | 2,428 | 2,250 |
Amortization of mortgages and notes payable fair value adjustments | -1,015 | 0 |
Impairments of real estate assets | 2,194 | 0 |
Losses on debt extinguishment | 196 | 973 |
Net gains on disposition of property | -52,350 | -29,455 |
Gains on for-sale residential condominiums | 0 | -255 |
Gain on acquisition of controlling interest in unconsolidated affiliate | -7,451 | 0 |
Equity in (earnings)/losses of unconsolidated affiliates | 1,875 | -2,679 |
Changes in financing obligations | -591 | -1,010 |
Distributions of earnings from unconsolidated affiliates | 3,109 | 3,230 |
Changes in operating assets and liabilities: | ||
Accounts receivable | -508 | 5,310 |
Prepaid expenses and other assets | -2,141 | -3,216 |
Accrued straight-line rents receivable | -12,368 | -13,609 |
Accounts payable, accrued expenses and other liabilities | 10,257 | -20,753 |
Net cash provided by operating activities | 186,590 | 137,951 |
Investing activities: | ||
Investments in acquired real estate and related intangible assets, net of cash acquired | -418,796 | -158,200 |
Investment in acquired controlling interest in unconsolidated affiliate | -32,818 | 0 |
Investments in development in process | -16,634 | -5,392 |
Investments in tenant improvements and deferred leasing costs | -77,456 | -61,821 |
Investments in building improvements | -38,702 | -27,229 |
Net proceeds from disposition of real estate assets | 161,970 | 152,456 |
Net proceeds from disposition of for-sale residential condominiums | 0 | 3,768 |
Distributions of capital from unconsolidated affiliates | 16,671 | 1,035 |
Investments in and repayments of mortgages and notes receivable | -864 | 1,657 |
Investments in and advances/repayments to/from unconsolidated affiliates | -429 | -3,928 |
Changes in restricted cash and other investing activities | 5,484 | 2,904 |
Net cash (used in) investing activities | -401,574 | -94,750 |
Financing activities: | ||
Distributions on Common Units | -111,645 | -99,334 |
Distributions on Preferred Units | -1,881 | -1,881 |
Distributions to noncontrolling interests in consolidated affiliates | -408 | -663 |
Proceeds from the issuance of Common Units | 315,818 | 191,667 |
Costs paid for the issuance of Common Units | -7,678 | -2,745 |
Repurchase of units related to tax withholdings | -2,539 | -2,248 |
Borrowings on revolving credit facility | 695,300 | 219,800 |
Repayments of revolving credit facility | -511,900 | -492,800 |
Borrowings on mortgages and notes payable | 0 | 225,000 |
Repayments of mortgages and notes payable | -157,001 | -77,264 |
Payments on financing obligations | -575 | -1,316 |
Contributions from noncontrolling interests in consolidated affiliates | 16,240 | 0 |
Additions to deferred financing costs and other financing activities | -834 | -3,394 |
Net cash provided by/(used in) financing activities | 232,897 | -45,178 |
Net increase/(decrease) in cash and cash equivalents | 17,913 | -1,977 |
Cash and cash equivalents at beginning of the period | 13,867 | 11,151 |
Cash and cash equivalents at end of the period | 31,780 | 9,174 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest, net of amounts capitalized | 67,786 | 72,793 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Unrealized gains/(losses) on cash flow hedges | 4,801 | -10,424 |
Changes in accrued capital expenditures | 12,778 | 1,829 |
Write-off of fully depreciated real estate assets | 24,498 | 36,918 |
Write-off of fully amortized deferred financing and leasing costs | 17,500 | 14,189 |
Unrealized gains on marketable securities of non-qualified deferred compensation plan | 558 | 310 |
Adjustment of Redeemable Common Units to fair value | -20,921 | 10,187 |
Unrealized gains on tax increment financing bond | 396 | 482 |
Assumption of mortgages and notes payable related to acquisition activities | 165,515 | 0 |
Reduction of advances to unconsolidated affiliates related to acquisition activities | 0 | 26,000 |
Issuances of Common Units to acquire real estate assets | 0 | 2,299 |
Reclass of aggregate differences between historical cost basis and the basis reflected at the joint venture level for assets acquired | $8,206 | $0 |
Description_of_Business_and_Si
Description of Business and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Significant Accounting Policies | Description of Business and Significant Accounting Policies |
Description of Business | |
Highwoods Properties, Inc. (the “Company”) is a fully-integrated equity real estate investment trust (“REIT”) that provides leasing, management, development, construction and other customer-related services for its properties and for third parties. The Company conducts virtually all of its activities through Highwoods Realty Limited Partnership (the “Operating Partnership”). At September 30, 2013, the Company and/or the Operating Partnership wholly owned: 282 in-service office, industrial and retail properties, comprising 30.1 million square feet; 592 acres of undeveloped land suitable for future development, of which 496 acres are considered core assets; and four office development properties. In addition, we owned interests (50.0% or less) in 23 in-service office properties, a rental residential development property and 11 acres of undeveloped land suitable for future development, which includes a 12.5% interest in a 261,000 square foot office property directly owned by the Company (not included in the Operating Partnership’s Consolidated Financial Statements). | |
The Company is the sole general partner of the Operating Partnership. At September 30, 2013, the Company owned all of the Preferred Units and 89.5 million, or 96.8%, of the Common Units in the Operating Partnership. Limited partners own the remaining 2.9 million Common Units. During the nine months ended September 30, 2013, the Company redeemed 789,144 Common Units for a like number of shares of Common Stock. | |
Common Stock Offerings | |
During the three and nine months ended September 30, 2013, the Company issued 904,809 and 3,961,190 shares of Common Stock, respectively, under its equity sales agreements at an average gross sales price of $35.81 and $36.97 per share, respectively, and received net proceeds, after sales commissions, of $31.9 million and $144.2 million, respectively. During the third quarter of 2013, the Company issued 4,312,500 shares of Common Stock in a public offering and received net proceeds of $150.9 million. As a result of these Common Stock offerings and the redemptions discussed above, the percentage of Common Units owned by the Company increased from 95.6% at December 31, 2012 to 96.8% at September 30, 2013. | |
Basis of Presentation | |
Our Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Our Consolidated Balance Sheets at December 31, 2012 were retrospectively revised from previously reported amounts to reflect in real estate and other assets, net, held for sale those properties classified as held for sale during the three months ended September 30, 2013. Our Consolidated Statements of Income for the three and nine months ended September 30, 2012 were retrospectively revised from previously reported amounts to reflect in discontinued operations the operations for those properties classified as discontinued operations. | |
The Company's Consolidated Financial Statements include the Operating Partnership, wholly owned subsidiaries and those entities in which the Company has the controlling interest. The Operating Partnership's Consolidated Financial Statements include wholly owned subsidiaries and those entities in which the Operating Partnership has the controlling interest. All intercompany transactions and accounts have been eliminated. At September 30, 2013 and December 31, 2012, we had involvement with, but are not the primary beneficiary in, an entity that we concluded to be a variable interest entity (see Note 3). | |
1. Description of Business and Significant Accounting Policies – Continued | |
The unaudited interim consolidated financial statements and accompanying unaudited consolidated financial information, in the opinion of management, contain all adjustments (including normal recurring accruals) necessary for a fair presentation of our financial position, results of operations and cash flows. We have omitted certain notes and other information from the interim Consolidated Financial Statements presented in this Quarterly Report as permitted by SEC rules and regulations. These Consolidated Financial Statements should be read in conjunction with our 2012 Annual Report on Form 10-K. | |
Use of Estimates | |
The preparation of consolidated financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Actual results could differ from those estimates. |
Real_Estate_Assets
Real Estate Assets | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Real Estate [Abstract] | ||||||||||||||||
Real Estate Assets | Real Estate Assets | |||||||||||||||
Acquisitions | ||||||||||||||||
During the third quarter of 2013, we acquired our joint venture partner's 60.0% interest in the HIW-KC Orlando, LLC joint venture, which owns five office properties in Orlando, FL encompassing 1.3 million square feet, for a net purchase price of $112.8 million. We previously accounted for our 40.0% interest in this joint venture using the equity method of accounting. The assets and liabilities of the joint venture are now wholly owned and are recorded in our Consolidated Financial Statements, including assets recorded at fair value of $188.0 million and secured debt recorded at fair value of $127.9 million, with an effective interest rate of 3.11%. This debt matures in July 2014. As a result of acquiring a controlling interest in this joint venture, our previously held equity interest was remeasured at a fair value of $75.2 million resulting in a gain of $7.5 million, which represents the difference between the fair market value of our previously held equity interest and the cost basis in our investment on the date of acquisition. The fair market value of our previously held equity interest was determined by management based on information available at the acquisition date and on current assumptions as to future operations. | ||||||||||||||||
During the third quarter of 2013, we also acquired: | ||||||||||||||||
• | an office property in Nashville, TN encompassing 520,000 square feet for a net purchase price of $150.1 million; and | |||||||||||||||
• | our DLF II joint venture partner's 57.0% interest in two office properties in Atlanta, GA encompassing 505,000 square feet for a net purchase price of $44.5 million, including the assumption of secured debt recorded at fair value of $37.6 million, with an effective interest rate of 3.34%. This debt matures in April 2015. | |||||||||||||||
During the second quarter of 2013, we acquired an office property in Atlanta, GA encompassing 553,000 square feet for a purchase price of $140.1 million. | ||||||||||||||||
During the first quarter of 2013, we acquired: | ||||||||||||||||
• | two office properties in Tampa, FL encompassing 372,000 square feet for a purchase price of $52.5 million; | |||||||||||||||
• | two office properties in Greensboro, NC encompassing 195,000 square feet for a purchase price of $30.8 million; and | |||||||||||||||
• | five acres of development land in Memphis, TN for a purchase price of $4.8 million. | |||||||||||||||
During the three and nine months ended September 30, 2013, we expensed $0.8 million and $1.7 million, respectively, of acquisition costs (included in general and administrative expenses) related to these acquisitions. The assets acquired and liabilities assumed were recorded at fair value as determined by management based on information available at the acquisition date and on current assumptions as to future operations. | ||||||||||||||||
2. Real Estate Assets - Continued | ||||||||||||||||
The following table sets forth a summary of the fair value of the major assets acquired and liabilities assumed relating to the third quarter 2013 acquisitions in Orlando, FL and Nashville, TN and the second quarter 2013 acquisition in Atlanta, GA discussed in the preceding paragraphs: | ||||||||||||||||
Total | ||||||||||||||||
Purchase Price Allocation | ||||||||||||||||
Real estate assets | $ | 445,396 | ||||||||||||||
Acquisition-related intangible assets (in deferred financing and leasing costs) | 50,595 | |||||||||||||||
Mortgages and notes payable | (127,891 | ) | ||||||||||||||
Acquisition-related below market lease liabilities (in accounts payable, accrued expenses and other liabilities) | (17,818 | ) | ||||||||||||||
Total allocation | $ | 350,282 | ||||||||||||||
The following table sets forth our rental and other revenues and net income, adjusted for interest expense and depreciation and amortization related to purchase price allocations, acquisition costs and equity in earnings of unconsolidated affiliates previously recognized as income assuming the Orlando, FL, Nashville, TN and Atlanta, GA acquisitions discussed in the preceding paragraph had been completed as of January 1, 2012: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Pro forma rental and other revenues | $ | 152,221 | $ | 162,422 | $ | 451,317 | $ | 410,027 | ||||||||
Pro forma net income | $ | 49,818 | $ | 23,952 | $ | 90,064 | $ | 56,782 | ||||||||
Pro forma earnings per share - basic | $ | 0.54 | $ | 0.28 | $ | 1 | $ | 0.68 | ||||||||
Pro forma earnings per share - diluted | $ | 0.54 | $ | 0.29 | $ | 1 | $ | 0.69 | ||||||||
The third quarter 2013 acquisitions in Orlando, FL and Nashville, TN and the second quarter 2013 acquisition in Atlanta, GA resulted in revenues of $10.0 million and $10.3 million and net losses of $0.1 million and $0.4 million recorded in the Consolidated Statements of Income for the three and nine months ended September 30, 2013, respectively. | ||||||||||||||||
During the third quarter of 2012, we acquired a 492,000 square foot office property in Atlanta, GA for $144.9 million. The following table sets forth a summary of the fair value of the major assets acquired and liabilities assumed in this acquisition: | ||||||||||||||||
Total | ||||||||||||||||
Purchase Price Allocation | ||||||||||||||||
Real estate assets | $ | 135,128 | ||||||||||||||
Acquisition-related intangible assets (in deferred financing and leasing costs) | 21,637 | |||||||||||||||
Acquisition-related below market lease liabilities (in accounts payable, accrued expenses and other liabilities) | (11,875 | ) | ||||||||||||||
Total allocation | $ | 144,890 | ||||||||||||||
The following table sets forth our rental and other revenues and net income, adjusted for interest expense and depreciation and amortization related to purchase price allocations, and acquisition costs assuming the 492,000 square foot office building in Atlanta, GA was acquired on January 1, 2011: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2012 | 2012 | |||||||||||||||
Pro forma rental and other revenues | $ | 127,836 | $ | 381,070 | ||||||||||||
Pro forma net income | $ | 35,765 | $ | 68,526 | ||||||||||||
Pro forma earnings per share - basic | $ | 0.43 | $ | 0.84 | ||||||||||||
Pro forma earnings per share - diluted | $ | 0.43 | $ | 0.84 | ||||||||||||
2. Real Estate Assets - Continued | ||||||||||||||||
Dispositions | ||||||||||||||||
During the third quarter of 2013, we sold: | ||||||||||||||||
• | an office property in Tampa, FL for a sale price of $11.6 million and recorded a gain on disposition of discontinued operations of $1.2 million; and | |||||||||||||||
• | sixteen industrial properties and a land parcel in a single transaction in Atlanta, GA for a sale price of $91.6 million (before $0.3 million in closing credits to buyer for unfunded tenant improvements and after $0.3 million in closing credits to buyer for free rent). We recorded gains on disposition of discontinued operations of $36.7 million related to the industrial properties and a gain on disposition of property of less than $0.1 million related to the land parcel. | |||||||||||||||
During the second quarter of 2013, we sold: | ||||||||||||||||
• | five industrial properties in Atlanta, GA for a sale price of $4.5 million (after $0.1 million in closing credits to buyer for free rent) and recorded a gain on disposition of discontinued operations of less than $0.1 million; | |||||||||||||||
• | six industrial properties and a land parcel in a single transaction in Atlanta, GA for a sale price of $38.7 million (before $1.8 million in closing credits to buyer for unfunded tenant improvements and after $1.3 million in closing credits to buyer for free rent) and recorded a gain on disposition of discontinued operations of $13.2 million; and | |||||||||||||||
• | two industrial properties in Atlanta, GA for a sale price of $4.8 million and recorded a loss on disposition of discontinued operations of less than $0.1 million. | |||||||||||||||
During the first quarter of 2013, we sold two office properties in Orlando, FL for a sale price of $14.6 million (before $0.8 million in closing credits to buyer for unfunded tenant improvements) and recorded a loss on disposition of discontinued operations of $0.3 million. | ||||||||||||||||
In connection with the disposition of an office property in Jackson, MS in the third quarter of 2012, we had the right to receive additional cash consideration of up to $1.5 million upon the satisfaction of a certain post-closing requirement. The post-closing requirement was satisfied and the cash consideration was received during the first quarter of 2013. Accordingly, we recognized $1.5 million in additional gain on disposition of discontinued operations in the first quarter of 2013. | ||||||||||||||||
Impairments | ||||||||||||||||
During the second quarter of 2013, we recorded impairments of real estate assets of $1.1 million on four properties in a single office park in Winston-Salem, NC. This office park was subsequently classified as discontinued operations in the third quarter of 2013. | ||||||||||||||||
During the first quarter of 2013, we recorded impairments of real estate assets of $0.4 million on two industrial properties in Atlanta, GA and recorded impairments of real estate assets held for sale of $0.7 million on five industrial properties in Atlanta, GA. These properties were subsequently sold in the second quarter of 2013 and are classified as discontinued operations. | ||||||||||||||||
These impairments were due to a change in the assumed timing of future dispositions and leasing assumptions, which reduced the future expected cash flows from the impaired properties. |
Mortgages_and_Notes_Receivable
Mortgages and Notes Receivable | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Receivables [Abstract] | ||||||||||||||||
Mortgages and Notes Receivable | Mortgages and Notes Receivable | |||||||||||||||
The following table sets forth our mortgages and notes receivable: | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Seller financing (first mortgages) | $ | 16,454 | $ | 15,853 | ||||||||||||
Less allowance | — | — | ||||||||||||||
16,454 | 15,853 | |||||||||||||||
Mortgage receivable | 9,207 | 8,648 | ||||||||||||||
Less allowance | — | — | ||||||||||||||
9,207 | 8,648 | |||||||||||||||
Promissory notes | 970 | 1,153 | ||||||||||||||
Less allowance | (340 | ) | (182 | ) | ||||||||||||
630 | 971 | |||||||||||||||
Mortgages and notes receivable, net | $ | 26,291 | $ | 25,472 | ||||||||||||
During 2010, we provided seller financing in conjunction with two disposition transactions. The seller financing is evidenced by first mortgages secured by the assignment of rents and the underlying real estate assets. | ||||||||||||||||
During 2012, we provided secured acquisition financing to a third party. We also agreed to loan such third party $8.4 million on a secured basis to fund future infrastructure development. As of September 30, 2013, $0.2 million has been funded to the third party for infrastructure development. We concluded this arrangement to be an interest in a variable interest entity. However, since we do not have the power to direct matters that most significantly impact the activities of the entity, we do not qualify as the primary beneficiary. Accordingly, the entity is not consolidated. Our risk of loss with respect to this arrangement is limited to the carrying value of the mortgage receivable and the future infrastructure development funding commitment. | ||||||||||||||||
We evaluate the ability to collect our mortgages and notes receivable by monitoring the leasing statistics and/or market fundamentals of these assets. As of September 30, 2013, our mortgages and notes receivable were not in default and there were no other indicators of impairment. | ||||||||||||||||
The following table sets forth our notes receivable allowance, which relates only to promissory notes: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Beginning notes receivable allowance | $ | 376 | $ | 118 | $ | 182 | $ | 61 | ||||||||
Recoveries/write-offs/other | (36 | ) | 93 | 158 | 150 | |||||||||||
Total notes receivable allowance | $ | 340 | $ | 211 | $ | 340 | $ | 211 | ||||||||
Investments_In_and_Advances_To
Investments In and Advances To Affiliates | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||
Investments In and Advances To Affiliates | Investments in and Advances to Affiliates | |||||||||||||||
Unconsolidated Affiliates | ||||||||||||||||
We have equity interests of up to 50.0% in various joint ventures with unrelated third parties that are accounted for using the equity method of accounting because we have the ability to exercise significant influence over their operating and financial policies. | ||||||||||||||||
The following table sets forth combined summarized financial information for the Company's unconsolidated affiliates: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Income Statements: (1) | ||||||||||||||||
Rental and other revenues | $ | 16,911 | $ | 25,051 | $ | 64,362 | $ | 75,920 | ||||||||
Expenses: | ||||||||||||||||
Rental property and other expenses | 8,733 | 11,624 | 31,681 | 35,706 | ||||||||||||
Depreciation and amortization | 5,010 | 6,355 | 17,383 | 18,839 | ||||||||||||
Impairments of real estate assets | 15,287 | — | 20,077 | 7,180 | ||||||||||||
Interest expense | 3,141 | 4,980 | 12,569 | 16,077 | ||||||||||||
Total expenses | 32,171 | 22,959 | 81,710 | 77,802 | ||||||||||||
Income/(loss) before disposition of properties | (15,260 | ) | 2,092 | (17,348 | ) | (1,882 | ) | |||||||||
Gains on disposition of properties | 8,256 | — | 8,323 | 6,275 | ||||||||||||
Net income/(loss) | $ | (7,004 | ) | $ | 2,092 | $ | (9,025 | ) | $ | 4,393 | ||||||
The Company's share of: | ||||||||||||||||
Depreciation and amortization | $ | 1,628 | $ | 2,028 | $ | 5,735 | $ | 5,801 | ||||||||
Impairments of real estate assets | $ | 3,487 | $ | — | $ | 4,507 | $ | 1,002 | ||||||||
Interest expense | $ | 1,099 | $ | 1,775 | $ | 4,583 | $ | 5,598 | ||||||||
Gains on disposition of properties | $ | — | $ | — | $ | 431 | $ | — | ||||||||
Net income/(loss) | $ | (3,410 | ) | $ | 914 | $ | (2,835 | ) | $ | 1,252 | ||||||
The Company's share of net income/(loss) | $ | (3,410 | ) | $ | 914 | $ | (2,835 | ) | $ | 1,252 | ||||||
Adjustments for management and other fees | 237 | 410 | 1,011 | 1,418 | ||||||||||||
Equity in earnings/(losses) of unconsolidated affiliates | $ | (3,173 | ) | $ | 1,324 | $ | (1,824 | ) | $ | 2,670 | ||||||
__________ | ||||||||||||||||
-1 | For the three and nine months ended September 30, 2013, as a result of acquiring our joint venture partner's 60.0% interest in the third quarter of 2013, we consolidated a joint venture previously accounted for under the equity method of accounting. | |||||||||||||||
4. Investments in and Advances to Affiliates - Continued | ||||||||||||||||
The following table sets forth combined summarized financial information for the Operating Partnership's unconsolidated affiliates: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Income Statements: (1) | ||||||||||||||||
Rental and other revenues | $ | 15,872 | $ | 24,062 | $ | 61,243 | $ | 72,916 | ||||||||
Expenses: | ||||||||||||||||
Rental property and other expenses | 8,126 | 11,024 | 29,821 | 33,901 | ||||||||||||
Depreciation and amortization | 4,699 | 6,044 | 16,449 | 17,905 | ||||||||||||
Impairments of real estate assets | 15,287 | — | 20,077 | 7,180 | ||||||||||||
Interest expense | 2,976 | 4,817 | 12,086 | 15,583 | ||||||||||||
Total expenses | 31,088 | 21,885 | 78,433 | 74,569 | ||||||||||||
Income/(loss) before disposition of properties | (15,216 | ) | 2,177 | (17,190 | ) | (1,653 | ) | |||||||||
Gains on disposition of properties | 8,256 | — | 8,323 | 6,275 | ||||||||||||
Net income/(loss) | $ | (6,960 | ) | $ | 2,177 | $ | (8,867 | ) | $ | 4,622 | ||||||
The Operating Partnership's share of: | ||||||||||||||||
Depreciation and amortization | $ | 1,589 | $ | 1,989 | $ | 5,618 | $ | 5,684 | ||||||||
Impairments of real estate assets | $ | 3,487 | $ | — | $ | 4,507 | $ | 1,002 | ||||||||
Interest expense | $ | 1,079 | $ | 1,754 | $ | 4,523 | $ | 5,536 | ||||||||
Gains on disposition of properties | $ | — | $ | — | $ | 431 | $ | — | ||||||||
Net income/(loss) | $ | (3,405 | ) | $ | 925 | $ | (2,815 | ) | $ | 1,281 | ||||||
The Operating Partnership's share of net income/(loss) | $ | (3,405 | ) | $ | 925 | $ | (2,815 | ) | $ | 1,281 | ||||||
Adjustments for management and other fees | 231 | 403 | 940 | 1,398 | ||||||||||||
Equity in earnings/(losses) of unconsolidated affiliates | $ | (3,174 | ) | $ | 1,328 | $ | (1,875 | ) | $ | 2,679 | ||||||
__________ | ||||||||||||||||
-1 | For the three and nine months ended September 30, 2013, as a result of acquiring our joint venture partner's 60.0% interest in the third quarter of 2013, we consolidated a joint venture previously accounted for under the equity method of accounting. | |||||||||||||||
4. Investments in and Advances to Affiliates - Continued | ||||||||||||||||
Highwoods DLF 98/29, LLC ("DLF I") | ||||||||||||||||
During the second quarter of 2013, DLF I sold an office property to an unrelated third party for a sale price of $5.9 million (after $0.1 million in closing credits to buyer for free rent) and recorded a gain on disposition of discontinued operations of less than $0.1 million. We recorded less than $0.1 million as our share of this gain through equity in earnings of unconsolidated affiliates. | ||||||||||||||||
During the third quarter of 2013, DLF I recorded impairment of real estate assets of $15.3 million on an office property in Orlando, FL. We recorded $3.5 million as our share of this impairment charge through equity in earnings of unconsolidated affiliates. | ||||||||||||||||
During the first quarter of 2013, DLF I recorded impairments of real estate assets of $4.8 million on an office property in Atlanta, GA and an office property in Charlotte, NC. We recorded $1.0 million as our share of this impairment charge through equity in earnings of unconsolidated affiliates. | ||||||||||||||||
These impairments were due to a change in the assumed timing of future dispositions and/or leasing assumptions, which reduced the future expected cash flows from the impaired properties. | ||||||||||||||||
Highwoods DLF 97/26 DLF 99/32, LP ("DLF II") | ||||||||||||||||
See Note 2 for a description of our acquisition of two office properties in Atlanta, GA from DLF II during the third quarter of 2013. | ||||||||||||||||
During the first quarter of 2013, DLF II sold an office property to unrelated third parties for a sale price of $10.1 million (after $0.3 million in closing credits to buyer for free rent) and recorded a gain on disposition of property of less than $0.1 million. As our cost basis is different from the basis reflected at the joint venture level, we recorded $0.4 million of gain through equity in earnings of unconsolidated affiliates. |
Intangible_Assets_and_Below_Ma
Intangible Assets and Below Market Lease Liabilities | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Intangible Assets and Below Market Lease Liabilities | Intangible Assets and Below Market Lease Liabilities | ||||||||||||||||||||||||
The following table sets forth total intangible assets and acquisition-related below market lease liabilities, net of accumulated amortization: | |||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Deferred financing costs | $ | 19,506 | $ | 21,759 | |||||||||||||||||||||
Less accumulated amortization | (8,632 | ) | (7,862 | ) | |||||||||||||||||||||
10,874 | 13,897 | ||||||||||||||||||||||||
Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets) | 298,561 | 220,113 | |||||||||||||||||||||||
Less accumulated amortization | (81,609 | ) | (68,001 | ) | |||||||||||||||||||||
216,952 | 152,112 | ||||||||||||||||||||||||
Deferred financing and leasing costs, net | $ | 227,826 | $ | 166,009 | |||||||||||||||||||||
Liabilities (in accounts payable, accrued expenses and other liabilities): | |||||||||||||||||||||||||
Acquisition-related below market lease liabilities | $ | 55,323 | $ | 37,019 | |||||||||||||||||||||
Less accumulated amortization | (6,900 | ) | (3,383 | ) | |||||||||||||||||||||
$ | 48,423 | $ | 33,636 | ||||||||||||||||||||||
5. Intangible Assets and Below Market Lease Liabilities - Continued | |||||||||||||||||||||||||
The following table sets forth amortization of intangible assets and acquisition-related below market lease liabilities: | |||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Amortization of deferred financing costs | $ | 963 | $ | 907 | $ | 2,860 | $ | 2,709 | |||||||||||||||||
Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization) | $ | 10,751 | $ | 6,667 | $ | 26,962 | $ | 19,930 | |||||||||||||||||
Amortization of lease incentives (in rental and other revenues) | $ | 347 | $ | 386 | $ | 1,061 | $ | 1,037 | |||||||||||||||||
Amortization of acquisition-related intangible assets (in rental and other revenues) | $ | 1,548 | $ | 433 | $ | 2,499 | $ | 1,027 | |||||||||||||||||
Amortization of acquisition-related intangible assets (in rental property and other expenses) | $ | 140 | $ | 46 | $ | 416 | $ | 46 | |||||||||||||||||
Amortization of acquisition-related below market lease liabilities (in rental and other revenues) | $ | (1,584 | ) | $ | (647 | ) | $ | (3,737 | ) | $ | (1,744 | ) | |||||||||||||
The following table sets forth scheduled future amortization of intangible assets and below market lease liabilities: | |||||||||||||||||||||||||
Amortization of Deferred Financing Costs | Amortization of Deferred Leasing Costs and Acquisition-Related Intangible Assets (in Depreciation and Amortization) | Amortization of Lease Incentives (in Rental and Other Revenues) | Amortization of Acquisition-Related Intangible Assets (in Rental and Other Revenues) | Amortization of Acquisition-Related Intangible Assets (in Rental Property and Other Expenses) | Amortization of Acquisition-Related Below Market Lease Liabilities (in Rental and Other Revenues) | ||||||||||||||||||||
October 1 through December 31, 2013 | $ | 865 | $ | 10,222 | $ | 320 | $ | 1,240 | $ | 138 | $ | (1,567 | ) | ||||||||||||
2014 | 3,233 | 38,795 | 1,199 | 4,401 | 553 | (6,011 | ) | ||||||||||||||||||
2015 | 2,599 | 32,028 | 971 | 3,627 | 553 | (5,728 | ) | ||||||||||||||||||
2016 | 1,500 | 26,229 | 794 | 2,815 | 553 | (5,414 | ) | ||||||||||||||||||
2017 | 1,213 | 22,312 | 729 | 2,265 | 553 | (5,165 | ) | ||||||||||||||||||
Thereafter | 1,464 | 57,402 | 2,553 | 5,058 | 1,642 | (24,538 | ) | ||||||||||||||||||
$ | 10,874 | $ | 186,988 | $ | 6,566 | $ | 19,406 | $ | 3,992 | $ | (48,423 | ) | |||||||||||||
Weighted average remaining amortization periods as of September 30, 2013 (in years) | 5.1 | 6.7 | 7.9 | 6.7 | 7.2 | 9.3 | |||||||||||||||||||
The following table sets forth the intangible assets acquired and below market lease liabilities assumed as a result of 2013 acquisition activity: | |||||||||||||||||||||||||
Acquisition-Related Intangible Assets (amortized in Rental and Other Revenues) | Acquisition-Related Intangible Assets (amortized in Depreciation and Amortization) | Acquisition-Related Below Market Lease Liabilities (amortized in Rental and Other Revenues) | |||||||||||||||||||||||
Amount recorded from acquisition activity | $ | 17,201 | $ | 58,422 | $ | (19,124 | ) | ||||||||||||||||||
Weighted average remaining amortization periods as of September 30, 2013 (in years) | 6.5 | 6.5 | 8.9 | ||||||||||||||||||||||
Mortgages_and_Notes_Payable
Mortgages and Notes Payable | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Mortgages and Notes Payable | Mortgages and Notes Payable | |||||||
The following table sets forth our mortgages and notes payable: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Secured indebtedness | $ | 591,821 | $ | 549,607 | ||||
Unsecured indebtedness | 1,458,240 | 1,309,555 | ||||||
Total mortgages and notes payable | $ | 2,050,061 | $ | 1,859,162 | ||||
At September 30, 2013, our secured mortgage loans were collateralized by real estate assets with an aggregate undepreciated book value of $971.2 million. | ||||||||
Our $475.0 million unsecured revolving credit facility is scheduled to mature in July 2015 and includes an accordion feature that allows for an additional $75.0 million of borrowing capacity subject to additional lender commitments. Assuming no defaults have occurred, we have an option to extend the maturity for an additional year. There was $206.4 million and $284.4 million outstanding under our revolving credit facility at September 30, 2013 and October 21, 2013, respectively. At both September 30, 2013 and October 21, 2013, we had $0.1 million of outstanding letters of credit, which reduces the availability on our revolving credit facility. As a result, the unused capacity of our revolving credit facility at September 30, 2013 and October 21, 2013 was $268.5 million and $190.5 million, respectively. | ||||||||
During the third quarter of 2013, we prepaid without penalty the remaining $114.7 million balance on two secured mortgage loans bearing interest at a weighted average rate of 5.75% that were originally scheduled to mature in December 2013. We recorded less than $0.1 million of loss on debt extinguishment related to this repayment. | ||||||||
During the first quarter of 2013, we prepaid the remaining $35.0 million balance on a $200.0 million bank term loan that was originally scheduled to mature in February 2016. We recorded $0.2 million of loss on debt extinguishment related to this repayment. | ||||||||
We are currently in compliance with the debt covenants and other requirements with respect to our debt. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments | |||||||||||||||
Our interest rate swaps have been designated as and are being accounted for as cash flow hedges with changes in fair value recorded in other comprehensive income each reporting period. No gain or loss was recognized related to hedge ineffectiveness or to amounts excluded from effectiveness testing on our cash flow hedges during the nine months ended September 30, 2013. We have no collateral requirements related to our interest rate swaps. | ||||||||||||||||
Amounts reported in accumulated other comprehensive loss ("AOCL") related to derivatives will be reclassified to interest expense as interest payments are made on our variable-rate debt. During the period from October 1, 2013 through September 30, 2014, we estimate that $3.3 million will be reclassified to interest expense. | ||||||||||||||||
For the periods ended September 30, 2013 and December 31, 2012, all of our derivatives were in a liability position. The following table sets forth the fair value of our derivatives: | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Derivatives: | ||||||||||||||||
Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities: | ||||||||||||||||
Interest rate swaps | $ | 2,047 | $ | 9,369 | ||||||||||||
7 | Derivative Financial Instruments - Continued | |||||||||||||||
The following table sets forth the effect of our cash flow hedges on AOCL and interest expense: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Derivatives Designated as Cash Flow Hedges: | ||||||||||||||||
Amount of unrealized gains/(losses) recognized in AOCL on derivatives (effective portion): | ||||||||||||||||
Interest rate swaps | $ | (1,798 | ) | $ | (3,337 | ) | $ | 4,801 | $ | (10,424 | ) | |||||
Amount of losses reclassified out of AOCL into contractual interest expense (effective portion): | ||||||||||||||||
Interest rate swaps | $ | 840 | $ | 791 | $ | 2,428 | $ | 2,250 | ||||||||
Noncontrolling_Interests
Noncontrolling Interests | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Noncontrolling Interest [Abstract] | ||||||||||||||||
Noncontrolling Interests | Noncontrolling Interests | |||||||||||||||
Noncontrolling Interests in Consolidated Affiliates | ||||||||||||||||
At September 30, 2013, our noncontrolling interests in consolidated affiliates relates to our joint venture partner's 50.0% interest in office properties located in Richmond, VA. Our joint venture partner is an unrelated third party. | ||||||||||||||||
Noncontrolling Interests in the Operating Partnership | ||||||||||||||||
The following table sets forth the Company's noncontrolling interests in the Operating Partnership: | ||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Beginning noncontrolling interests in the Operating Partnership | $ | 124,869 | $ | 110,655 | ||||||||||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | 8,570 | 12,485 | ||||||||||||||
Issuances of Common Units | — | 2,299 | ||||||||||||||
Conversions of Common Units to Common Stock | (28,788 | ) | (731 | ) | ||||||||||||
Net income attributable to noncontrolling interests in the Operating Partnership | 3,713 | 3,166 | ||||||||||||||
Distributions to noncontrolling interests in the Operating Partnership | (4,416 | ) | (4,733 | ) | ||||||||||||
Total noncontrolling interests in the Operating Partnership | $ | 103,948 | $ | 123,141 | ||||||||||||
The following table sets forth net income available for common stockholders and transfers from the Company's noncontrolling interests in the Operating Partnership: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income available for common stockholders | $ | 53,349 | $ | 33,357 | $ | 93,220 | $ | 63,013 | ||||||||
Increase in additional paid in capital from conversions of Common Units | 25,937 | 100 | 28,788 | 731 | ||||||||||||
to Common Stock | ||||||||||||||||
Issuances of Common Units | — | (2,299 | ) | — | (2,299 | ) | ||||||||||
Change from net income available for common stockholders and transfers from noncontrolling interests | $ | 79,286 | $ | 31,158 | $ | 122,008 | $ | 61,445 | ||||||||
Disclosure_About_Fair_Value_of
Disclosure About Fair Value of Financial Instruments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Disclosure About Fair Value of Financial Instruments | Disclosure About Fair Value of Financial Instruments | ||||||||||||||||
The following summarizes the three levels of inputs that we use to measure fair value. | |||||||||||||||||
Level 1. Quoted prices in active markets for identical assets or liabilities. | |||||||||||||||||
Our Level 1 assets are investments in marketable securities that we use to pay benefits under our non-qualified deferred compensation plan. Our Level 1 liability is our non-qualified deferred compensation obligation. The Company's Level 1 noncontrolling interests in the Operating Partnership relate to the ownership of Common Units by various individuals and entities other than the Company. | |||||||||||||||||
Level 2. Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. | |||||||||||||||||
Our Level 2 asset is the fair value of certain of our mortgages and notes receivable, which was estimated by the income approach utilizing contractual cash flows and market-based interest rates to approximate the price that would be paid in an orderly transaction between market participants. | |||||||||||||||||
Our Level 2 liabilities include (1) the fair value of our mortgages and notes payable, which was estimated by the income approach utilizing contractual cash flows and market-based interest rates to approximate the price that would be paid in an orderly transaction between market participants and (2) interest rate swaps whose fair value is determined using the market standard methodology of netting the discounted future fixed cash receipts and the discounted expected variable cash payments. The variable cash payments of our interest rate swaps are based on the expectation of future LIBOR interest rates (forward curves) derived from observed market LIBOR interest rate curves. In addition, credit valuation adjustments are incorporated in the fair values to account for potential nonperformance risk, but were concluded to not be significant inputs to the calculation for the periods presented. | |||||||||||||||||
Level 3. Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||||||||||||||
Our Level 3 assets include (1) certain of our mortgages and notes receivable, which were estimated by the income approach utilizing internal cash flow projections and market interest rates to estimate the price that would be paid in an orderly transaction between market participants, (2) our tax increment financing bond, which is not routinely traded but whose fair value is determined by the income approach utilizing contractual cash flows and market-based interest rates to estimate the projected redemption value based on quoted bid/ask prices for similar unrated municipal bonds, and (3) any real estate assets recorded at fair value on a non-recurring basis as a result of our quarterly impairment analysis, which were valued using the terms of definitive sales contracts or the sales comparison approach and substantiated with internal cash flow projections. | |||||||||||||||||
Our Level 3 liabilities include the fair value of our contingent consideration to acquire real estate assets and financing obligations, which were estimated by the income approach to approximate the price that would be paid in an orderly transaction between market participants, utilizing: (1) contractual cash flows; (2) market-based interest rates; and (3) a number of other assumptions including demand for space, competition for customers, changes in market rental rates, costs of operation and expected ownership periods. | |||||||||||||||||
9 | Disclosure About Fair Value of Financial Instruments - Continued | ||||||||||||||||
The following table sets forth our assets and liabilities and the Company's noncontrolling interests in the Operating Partnership that are measured at fair value within the fair value hierarchy. | |||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||
Total | Quoted Prices | Significant Observable Inputs | Significant Unobservable Inputs | ||||||||||||||
in Active | |||||||||||||||||
Markets for Identical Assets or Liabilities | |||||||||||||||||
Fair Value at September 30, 2013: | |||||||||||||||||
Assets: | |||||||||||||||||
Mortgages and notes receivable, at fair value (1) | $ | 26,409 | $ | — | $ | 17,169 | $ | 9,240 | |||||||||
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) | 3,753 | 3,753 | — | — | |||||||||||||
Tax increment financing bond (in prepaid expenses and other assets) | 14,330 | — | — | 14,330 | |||||||||||||
Total Assets | $ | 44,492 | $ | 3,753 | $ | 17,169 | $ | 23,570 | |||||||||
Noncontrolling Interests in the Operating Partnership | $ | 103,948 | $ | 103,948 | $ | — | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Mortgages and notes payable, at fair value (1) | $ | 2,136,107 | $ | — | $ | 2,136,107 | $ | — | |||||||||
Interest rate swaps (in accounts payable, accrued expenses and other liabilities) | 2,047 | — | 2,047 | — | |||||||||||||
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 3,753 | 3,753 | — | — | |||||||||||||
Contingent consideration to acquire real estate assets (in accounts payable, accrued expenses and other liabilities) | 191 | — | — | 191 | |||||||||||||
Financing obligations, at fair value (1) | 24,211 | — | — | 24,211 | |||||||||||||
Total Liabilities | $ | 2,166,309 | $ | 3,753 | $ | 2,138,154 | $ | 24,402 | |||||||||
Fair Value at December 31, 2012: | |||||||||||||||||
Assets: | |||||||||||||||||
Mortgages and notes receivable, at fair value (1) | $ | 24,725 | $ | — | $ | 16,077 | $ | 8,648 | |||||||||
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) | 3,354 | 3,354 | — | — | |||||||||||||
Tax increment financing bond (in prepaid expenses and other assets) | 14,496 | — | — | 14,496 | |||||||||||||
Total Assets | $ | 42,575 | $ | 3,354 | $ | 16,077 | $ | 23,144 | |||||||||
Noncontrolling Interests in the Operating Partnership | $ | 124,869 | $ | 124,869 | $ | — | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Mortgages and notes payable, at fair value (1) | $ | 1,987,364 | $ | — | $ | 1,987,364 | $ | — | |||||||||
Interest rate swaps (in accounts payable, accrued expenses and other liabilities) | 9,369 | — | 9,369 | — | |||||||||||||
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 3,354 | 3,354 | — | — | |||||||||||||
Contingent consideration to acquire real estate assets (in accounts payable, accrued expenses and other liabilities) | 563 | — | — | 563 | |||||||||||||
Financing obligations, at fair value (1) | 23,252 | — | — | 23,252 | |||||||||||||
Total Liabilities | $ | 2,023,902 | $ | 3,354 | $ | 1,996,733 | $ | 23,815 | |||||||||
__________ | |||||||||||||||||
(1) Amounts recorded at historical cost on our Consolidated Balance Sheets at September 30, 2013 and December 31, 2012. | |||||||||||||||||
9 | Disclosure About Fair Value of Financial Instruments - Continued | ||||||||||||||||
The following table sets forth the changes in our Level 3 asset and liability, which are recorded at fair value on our Consolidated Balance Sheets: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Asset: | |||||||||||||||||
Tax Increment Financing Bond: | |||||||||||||||||
Beginning balance | $ | 14,233 | $ | 15,371 | $ | 14,496 | $ | 14,788 | |||||||||
Principal repayment | — | — | (562 | ) | — | ||||||||||||
Unrealized gains/(losses) (in AOCL) | 97 | (101 | ) | 396 | 482 | ||||||||||||
Ending balance | $ | 14,330 | $ | 15,270 | $ | 14,330 | $ | 15,270 | |||||||||
Liability: | |||||||||||||||||
Contingent Consideration to Acquire Real Estate Assets: | |||||||||||||||||
Beginning balance | $ | 384 | $ | 677 | $ | 563 | $ | 677 | |||||||||
Unrealized gains (in general and administrative expenses) | (193 | ) | (114 | ) | (372 | ) | (114 | ) | |||||||||
Ending balance | $ | 191 | $ | 563 | $ | 191 | $ | 563 | |||||||||
During 2007, we acquired a tax increment financing bond associated with a parking garage developed by us. This bond amortizes to maturity in 2020. The estimated fair value at September 30, 2013 was $1.5 million below the outstanding principal due on the bond. If the discount rate used to fair value this bond was 100 basis points higher or lower, the fair value of the bond would have been $0.4 million lower or $0.5 million higher, respectively, as of September 30, 2013. We intend to hold this bond and have concluded that we will not be required to sell this bond before recovery of the bond principal. Payment of the principal and interest for the bond is guaranteed by us. We have recorded no credit losses related to the bond during the three and nine months ended September 30, 2013 and 2012. There is no legal right of offset with the liability, which we report as a financing obligation, related to this tax increment financing bond. | |||||||||||||||||
The following table sets forth quantitative information about the unobservable inputs of our Level 3 asset and liability, which are recorded at fair value on our Consolidated Balance Sheets: | |||||||||||||||||
Fair Value at | Valuation | Unobservable | Rate/ Percentage | ||||||||||||||
30-Sep-13 | Technique | Input | |||||||||||||||
Asset: | |||||||||||||||||
Tax increment financing bond | $ | 14,330 | Income approach | Discount rate | 10.80% | ||||||||||||
Liability: | |||||||||||||||||
Contingent consideration to acquire real estate assets | $ | 191 | Income approach | Payout percentage | 25.00% | ||||||||||||
ShareBased_Payments
Share-Based Payments | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Payments | Share-Based Payments |
During the nine months ended September 30, 2013, the Company granted 168,700 stock options with an exercise price equal to the closing market price of a share of Common Stock on the date of grant. The fair value of each option is estimated on the date of grant using the Black-Scholes option pricing model, which resulted in a weighted average grant date fair value per share of $6.50. During the nine months ended September 30, 2013, the Company also granted 86,144 shares of time-based restricted stock and 65,486 shares of total return-based restricted stock with weighted average grant date fair values per share of $36.64 and $31.73, respectively. We recorded stock-based compensation expense of $1.2 million and $2.0 million during the three months ended September 30, 2013 and 2012, respectively, and $5.9 million and $6.5 million during the nine months ended September 30, 2013 and 2012, respectively. At September 30, 2013, there was $5.0 million of total unrecognized stock-based compensation costs, which will be recognized over a weighted average remaining contractual term of 2.4 years. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss | |||||||||||||||
The following table sets forth the components of AOCL: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Tax increment financing bond: | ||||||||||||||||
Beginning balance | $ | (1,599 | ) | $ | (1,726 | ) | $ | (1,898 | ) | $ | (2,309 | ) | ||||
Unrealized gains/(losses) on tax increment financing bond | 97 | (101 | ) | 396 | 482 | |||||||||||
Ending balance | (1,502 | ) | (1,827 | ) | (1,502 | ) | (1,827 | ) | ||||||||
Cash flow hedges: | ||||||||||||||||
Beginning balance | (2,543 | ) | (9,053 | ) | (10,730 | ) | (3,425 | ) | ||||||||
Unrealized gains/(losses) on cash flow hedges | (1,798 | ) | (3,337 | ) | 4,801 | (10,424 | ) | |||||||||
Amortization of cash flow hedges (1) | 840 | 791 | 2,428 | 2,250 | ||||||||||||
Ending balance | (3,501 | ) | (11,599 | ) | (3,501 | ) | (11,599 | ) | ||||||||
Total accumulated other comprehensive loss | $ | (5,003 | ) | $ | (13,426 | ) | $ | (5,003 | ) | $ | (13,426 | ) | ||||
__________ | ||||||||||||||||
(1) Amounts reclassified out of AOCL into contractual interest expense. |
Discontinued_Operations
Discontinued Operations | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||
Discontinued Operations | Discontinued Operations | |||||||||||||||
The following table sets forth our operations classified as discontinued operations: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Rental and other revenues | $ | 2,810 | $ | 5,671 | $ | 10,398 | $ | 24,211 | ||||||||
Operating expenses: | ||||||||||||||||
Rental property and other expenses | 1,049 | 1,622 | 3,389 | 7,796 | ||||||||||||
Depreciation and amortization | 665 | 1,610 | 3,166 | 7,108 | ||||||||||||
Total operating expenses | 1,714 | 3,232 | 6,555 | 14,904 | ||||||||||||
Interest expense | — | 35 | — | 283 | ||||||||||||
Income from discontinued operations | 1,096 | 2,404 | 3,843 | 9,024 | ||||||||||||
Impairments of real estate assets | — | — | (2,194 | ) | — | |||||||||||
Net gains on disposition of discontinued operations | 37,946 | 22,936 | 52,353 | 29,455 | ||||||||||||
Total discontinued operations | $ | 39,042 | $ | 25,340 | $ | 54,002 | $ | 38,479 | ||||||||
The following table sets forth the major classes of assets of our real estate and other assets, net, held for sale: | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Assets: | ||||||||||||||||
Land | $ | 1,948 | $ | 28,598 | ||||||||||||
Buildings and tenant improvements | 18,498 | 132,361 | ||||||||||||||
Land held for development | — | 2,368 | ||||||||||||||
Less-accumulated depreciation | (5,931 | ) | (43,730 | ) | ||||||||||||
Net real estate assets | 14,515 | 119,597 | ||||||||||||||
Accrued straight-line rents receivable, net | 1,187 | 5,759 | ||||||||||||||
Deferred leasing costs, net | 614 | 4,014 | ||||||||||||||
Prepaid expenses and other assets | — | 30 | ||||||||||||||
Real estate and other assets, net, held for sale | $ | 16,316 | $ | 129,400 | ||||||||||||
As of September 30, 2013, real estate and other assets, net, held for sale consisted of an office property in Atlanta, GA and four office properties in Winston-Salem, NC. As of December 31, 2012, real estate and other assets, net, held for sale consisted of an office property and 29 industrial properties in Atlanta, GA, two office properties in Orlando, FL, an office property in Tampa, FL and four office properties in Winston-Salem, NC. All of these properties are classified as discontinued operations during the three and nine months ended September 30, 2013 and 2012, respectively. |
Earnings_Per_ShareUnit
Earnings Per Share/Unit | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||
Earnings Per Share/Unit | Earnings Per Share and Per Unit | |||||||||||||||
The following table sets forth the computation of basic and diluted earnings per share of the Company: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Earnings per Common Share - basic: | ||||||||||||||||
Numerator: | ||||||||||||||||
Income from continuing operations | $ | 17,026 | $ | 10,456 | $ | 45,405 | $ | 30,147 | ||||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership from continuing operations | (503 | ) | (459 | ) | (1,684 | ) | (1,335 | ) | ||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations | (203 | ) | (159 | ) | (593 | ) | (566 | ) | ||||||||
Dividends on Preferred Stock | (627 | ) | (627 | ) | (1,881 | ) | (1,881 | ) | ||||||||
Income from continuing operations available for common stockholders | 15,693 | 9,211 | 41,247 | 26,365 | ||||||||||||
Income from discontinued operations | 39,042 | 25,340 | 54,002 | 38,479 | ||||||||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership from discontinued operations | (1,386 | ) | (1,194 | ) | (2,029 | ) | (1,831 | ) | ||||||||
Income from discontinued operations available for common stockholders | 37,656 | 24,146 | 51,973 | 36,648 | ||||||||||||
Net income available for common stockholders | $ | 53,349 | $ | 33,357 | $ | 93,220 | $ | 63,013 | ||||||||
Denominator: | ||||||||||||||||
Denominator for basic earnings per Common Share – weighted average shares (1) (2) | 87,467 | 76,590 | 83,793 | 74,703 | ||||||||||||
Earnings per Common Share - basic: | ||||||||||||||||
Income from continuing operations available for common stockholders | $ | 0.18 | $ | 0.12 | $ | 0.49 | $ | 0.35 | ||||||||
Income from discontinued operations available for common stockholders | 0.43 | 0.32 | 0.62 | 0.49 | ||||||||||||
Net income available for common stockholders | $ | 0.61 | $ | 0.44 | $ | 1.11 | $ | 0.84 | ||||||||
Earnings per Common Share - diluted: | ||||||||||||||||
Numerator: | ||||||||||||||||
Income from continuing operations | $ | 17,026 | $ | 10,456 | $ | 45,405 | $ | 30,147 | ||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations | (203 | ) | (159 | ) | (593 | ) | (566 | ) | ||||||||
Dividends on Preferred Stock | (627 | ) | (627 | ) | (1,881 | ) | (1,881 | ) | ||||||||
Income from continuing operations available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership | 16,196 | 9,670 | 42,931 | 27,700 | ||||||||||||
Income from discontinued operations available for common stockholders | 39,042 | 25,340 | 54,002 | 38,479 | ||||||||||||
Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership | $ | 55,238 | $ | 35,010 | $ | 96,933 | $ | 66,179 | ||||||||
Denominator: | ||||||||||||||||
Denominator for basic earnings per Common Share –weighted average shares (1) (2) | 87,467 | 76,590 | 83,793 | 74,703 | ||||||||||||
Add: | ||||||||||||||||
Stock options using the treasury method | 101 | 137 | 114 | 127 | ||||||||||||
Noncontrolling interests Common Units | 3,201 | 3,768 | 3,536 | 3,738 | ||||||||||||
Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions (1) | 90,769 | 80,495 | 87,443 | 78,568 | ||||||||||||
Earnings per Common Share - diluted: | ||||||||||||||||
Income from continuing operations available for common stockholders | $ | 0.18 | $ | 0.12 | $ | 0.49 | $ | 0.35 | ||||||||
Income from discontinued operations available for common stockholders | 0.43 | 0.31 | 0.62 | 0.49 | ||||||||||||
Net income available for common stockholders | $ | 0.61 | $ | 0.43 | $ | 1.11 | $ | 0.84 | ||||||||
__________ | ||||||||||||||||
13 | Earnings Per Share and Per Unit - Continued | |||||||||||||||
-1 | There were 0.3 million and 0.5 million options outstanding during the three months ended September 30, 2013 and 2012, respectively, and 0.3 million and 0.5 million options outstanding during the nine months ended September 30, 2013 and 2012, respectively, that were not included in the computation of diluted earnings per share because the impact of including such options would be anti-dilutive. | |||||||||||||||
-2 | Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable. | |||||||||||||||
The following table sets forth the computation of basic and diluted earnings per unit of the Operating Partnership: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Earnings per Common Unit - basic: | ||||||||||||||||
Numerator: | ||||||||||||||||
Income from continuing operations | $ | 17,025 | $ | 10,460 | $ | 45,354 | $ | 30,156 | ||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations | (203 | ) | (159 | ) | (593 | ) | (566 | ) | ||||||||
Distributions on Preferred Units | (627 | ) | (627 | ) | (1,881 | ) | (1,881 | ) | ||||||||
Income from continuing operations available for common unitholders | 16,195 | 9,674 | 42,880 | 27,709 | ||||||||||||
Income from discontinued operations available for common unitholders | 39,042 | 25,340 | 54,002 | 38,479 | ||||||||||||
Net income available for common unitholders | $ | 55,237 | $ | 35,014 | $ | 96,882 | $ | 66,188 | ||||||||
Denominator: | ||||||||||||||||
Denominator for basic earnings per Common Unit – weighted average units (1) (2) | 90,259 | 79,949 | 86,920 | 78,032 | ||||||||||||
Earnings per Common Unit - basic: | ||||||||||||||||
Income from continuing operations available for common unitholders | $ | 0.18 | $ | 0.12 | $ | 0.49 | $ | 0.36 | ||||||||
Income from discontinued operations available for common unitholders | 0.43 | 0.32 | 0.62 | 0.49 | ||||||||||||
Net income available for common unitholders | $ | 0.61 | $ | 0.44 | $ | 1.11 | $ | 0.85 | ||||||||
Earnings per Common Unit - diluted: | ||||||||||||||||
Numerator: | ||||||||||||||||
Income from continuing operations | $ | 17,025 | $ | 10,460 | $ | 45,354 | $ | 30,156 | ||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations | (203 | ) | (159 | ) | (593 | ) | (566 | ) | ||||||||
Distributions on Preferred Units | (627 | ) | (627 | ) | (1,881 | ) | (1,881 | ) | ||||||||
Income from continuing operations available for common unitholders | 16,195 | 9,674 | 42,880 | 27,709 | ||||||||||||
Income from discontinued operations available for common unitholders | 39,042 | 25,340 | 54,002 | 38,479 | ||||||||||||
Net income available for common unitholders | $ | 55,237 | $ | 35,014 | $ | 96,882 | $ | 66,188 | ||||||||
Denominator: | ||||||||||||||||
Denominator for basic earnings per Common Unit –weighted average units (1) (2) | 90,259 | 79,949 | 86,920 | 78,032 | ||||||||||||
Add: | ||||||||||||||||
Stock options using the treasury method | 101 | 137 | 114 | 127 | ||||||||||||
Denominator for diluted earnings per Common Unit – adjusted weighted average units and assumed conversions (1) | 90,360 | 80,086 | 87,034 | 78,159 | ||||||||||||
Earnings per Common Unit - diluted: | ||||||||||||||||
Income from continuing operations available for common unitholders | $ | 0.18 | $ | 0.12 | $ | 0.49 | $ | 0.36 | ||||||||
Income from discontinued operations available for common unitholders | 0.43 | 0.32 | 0.62 | 0.49 | ||||||||||||
Net income available for common unitholders | $ | 0.61 | $ | 0.44 | $ | 1.11 | $ | 0.85 | ||||||||
__________ | ||||||||||||||||
-1 | There were 0.3 million and 0.5 million options outstanding during the three months ended September 30, 2013 and 2012, respectively, and 0.3 million and 0.5 million options outstanding during the nine months ended September 30, 2013 and 2012, respectively, that were not included in the computation of diluted earnings per unit because the impact of including such options would be anti-dilutive. | |||||||||||||||
-2 | Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable. |
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Segment Information | Segment Information | |||||||||||||||
The following tables summarize the rental and other revenues and net operating income, the primary industry property-level performance metric which is defined as rental and other revenues less rental property and other expenses, for each of our reportable segments: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Rental and Other Revenues: (1) | ||||||||||||||||
Office: | ||||||||||||||||
Atlanta, GA | $ | 22,523 | $ | 13,704 | $ | 57,630 | $ | 43,220 | ||||||||
Greenville, SC | 2,699 | 3,296 | 9,056 | 10,286 | ||||||||||||
Kansas City, MO | 4,064 | 4,014 | 12,067 | 11,173 | ||||||||||||
Memphis, TN | 9,644 | 9,103 | 28,680 | 27,603 | ||||||||||||
Nashville, TN | 15,147 | 14,285 | 43,411 | 42,456 | ||||||||||||
Orlando, FL | 8,441 | 2,217 | 12,894 | 6,594 | ||||||||||||
Piedmont Triad, NC | 6,792 | 5,176 | 19,932 | 14,532 | ||||||||||||
Pittsburgh, PA | 14,191 | 9,482 | 41,835 | 27,671 | ||||||||||||
Raleigh, NC | 21,737 | 20,578 | 64,124 | 60,737 | ||||||||||||
Richmond, VA | 12,006 | 11,848 | 35,639 | 35,442 | ||||||||||||
Tampa, FL | 17,278 | 17,199 | 52,840 | 51,140 | ||||||||||||
Total Office Segment | 134,522 | 110,902 | 378,108 | 330,854 | ||||||||||||
Industrial: | ||||||||||||||||
Atlanta, GA | 210 | 189 | 624 | 610 | ||||||||||||
Piedmont Triad, NC | 2,998 | 3,141 | 9,238 | 9,389 | ||||||||||||
Total Industrial Segment | 3,208 | 3,330 | 9,862 | 9,999 | ||||||||||||
Retail: | ||||||||||||||||
Kansas City, MO | 9,564 | 9,186 | 27,991 | 27,176 | ||||||||||||
Total Retail Segment | 9,564 | 9,186 | 27,991 | 27,176 | ||||||||||||
Total Rental and Other Revenues | $ | 147,294 | $ | 123,418 | $ | 415,961 | $ | 368,029 | ||||||||
14 | Segment Information - Continued | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net Operating Income: (1) | ||||||||||||||||
Office: | ||||||||||||||||
Atlanta, GA | $ | 13,868 | $ | 8,408 | $ | 35,936 | $ | 27,346 | ||||||||
Greenville, SC | 1,301 | 1,806 | 4,869 | 5,986 | ||||||||||||
Kansas City, MO | 2,597 | 2,546 | 7,796 | 7,060 | ||||||||||||
Memphis, TN | 5,408 | 5,378 | 16,337 | 16,226 | ||||||||||||
Nashville, TN | 10,311 | 9,772 | 30,028 | 29,247 | ||||||||||||
Orlando, FL | 4,950 | 947 | 7,099 | 3,066 | ||||||||||||
Piedmont Triad, NC | 4,373 | 3,095 | 12,823 | 9,103 | ||||||||||||
Pittsburgh, PA | 8,001 | 4,949 | 23,322 | 13,851 | ||||||||||||
Raleigh, NC | 14,920 | 13,939 | 45,226 | 42,267 | ||||||||||||
Richmond, VA | 7,910 | 7,863 | 24,267 | 24,270 | ||||||||||||
Tampa, FL | 10,165 | 10,818 | 32,287 | 32,028 | ||||||||||||
Total Office Segment | 83,804 | 69,521 | 239,990 | 210,450 | ||||||||||||
Industrial: | ||||||||||||||||
Atlanta, GA | 122 | 100 | 361 | 347 | ||||||||||||
Piedmont Triad, NC | 2,187 | 2,256 | 6,797 | 6,848 | ||||||||||||
Total Industrial Segment | 2,309 | 2,356 | 7,158 | 7,195 | ||||||||||||
Retail: | ||||||||||||||||
Kansas City, MO | 5,837 | 5,676 | 17,066 | 16,525 | ||||||||||||
Total Retail Segment | 5,837 | 5,676 | 17,066 | 16,525 | ||||||||||||
Residential: | ||||||||||||||||
Raleigh, NC | — | (33 | ) | — | (178 | ) | ||||||||||
Total Residential Segment | — | (33 | ) | — | (178 | ) | ||||||||||
Corporate and other | (21 | ) | (6 | ) | (55 | ) | (65 | ) | ||||||||
Total Net Operating Income | 91,929 | 77,514 | 264,159 | 233,927 | ||||||||||||
Reconciliation to income from continuing operations before disposition of property and condominiums and acquisition of controlling interest in and equity in earnings/(losses) of unconsolidated affiliates: | ||||||||||||||||
Depreciation and amortization | (48,124 | ) | (37,041 | ) | (130,390 | ) | (110,656 | ) | ||||||||
General and administrative expenses | (8,969 | ) | (9,725 | ) | (27,948 | ) | (28,298 | ) | ||||||||
Interest expense | (23,672 | ) | (23,612 | ) | (70,826 | ) | (72,661 | ) | ||||||||
Other income | 1,550 | 1,916 | 4,786 | 4,910 | ||||||||||||
Income from continuing operations before disposition of property and condominiums and acquisition of controlling interest in and equity in earnings/(losses) of unconsolidated affiliates | $ | 12,714 | $ | 9,052 | $ | 39,781 | $ | 27,222 | ||||||||
__________ | ||||||||||||||||
-1 | Net of discontinued operations. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
Effective October 1, 2013, the Company contributed its 12.5% interest in the 4600 Madison Associates, LP joint venture to the Operating Partnership. | |
On October 1, 2013, our consolidated Highwoods-Markel Associates, LLC joint venture prepaid without penalty the remaining $32.3 million balance on four secured mortgage loans bearing interest at a weighted average rate of 5.79% that were originally scheduled to mature in January 2014. | |
On October 2, 2013, we sold an office property in Atlanta, GA for a sale price of $13.8 million and expect to record a gain on disposition of discontinued operations of $3.0 million. | |
On October 3, 2013, we prepaid without penalty a secured mortgage loan with a fair market value of $67.5 million bearing an effective interest rate of 5.12% that was originally scheduled to mature in January 2014. | |
On October 24, 2013, we sold four office properties in Winston-Salem, NC for a sale price of $6.2 million and expect to record a gain on disposition of discontinued operations of $0.1 million. | |
On October 28, 2013, we sold an office property in Winston-Salem, NC for a sale price of $5.3 million and expect to record a gain on disposition of discontinued operations of $2.5 million. |
Description_of_Business_and_Si1
Description of Business and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Our Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Our Consolidated Balance Sheets at December 31, 2012 were retrospectively revised from previously reported amounts to reflect in real estate and other assets, net, held for sale those properties classified as held for sale during the three months ended September 30, 2013. Our Consolidated Statements of Income for the three and nine months ended September 30, 2012 were retrospectively revised from previously reported amounts to reflect in discontinued operations the operations for those properties classified as discontinued operations. |
The Company's Consolidated Financial Statements include the Operating Partnership, wholly owned subsidiaries and those entities in which the Company has the controlling interest. The Operating Partnership's Consolidated Financial Statements include wholly owned subsidiaries and those entities in which the Operating Partnership has the controlling interest. All intercompany transactions and accounts have been eliminated. At September 30, 2013 and December 31, 2012, we had involvement with, but are not the primary beneficiary in, an entity that we concluded to be a variable interest entity (see Note 3). | |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates |
The preparation of consolidated financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Actual results could differ from those estimates. |
Real_Estate_Assets_Real_Estate
Real Estate Assets Real Estate Assets (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | |||||||||||||||||||
Pro Forma 2013 Acquisitions [Member] | ||||||||||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||||||||||
Schedule of business acquisitions, purchase price allocation, table | The following table sets forth a summary of the fair value of the major assets acquired and liabilities assumed relating to the third quarter 2013 acquisitions in Orlando, FL and Nashville, TN and the second quarter 2013 acquisition in Atlanta, GA discussed in the preceding paragraphs: | |||||||||||||||||||
Total | ||||||||||||||||||||
Purchase Price Allocation | ||||||||||||||||||||
Real estate assets | $ | 445,396 | ||||||||||||||||||
Acquisition-related intangible assets (in deferred financing and leasing costs) | 50,595 | |||||||||||||||||||
Mortgages and notes payable | (127,891 | ) | ||||||||||||||||||
Acquisition-related below market lease liabilities (in accounts payable, accrued expenses and other liabilities) | (17,818 | ) | ||||||||||||||||||
Total allocation | $ | 350,282 | ||||||||||||||||||
Schedule of business acquisitions, pro forma, table | The following table sets forth our rental and other revenues and net income, adjusted for interest expense and depreciation and amortization related to purchase price allocations, acquisition costs and equity in earnings of unconsolidated affiliates previously recognized as income assuming the Orlando, FL, Nashville, TN and Atlanta, GA acquisitions discussed in the preceding paragraph had been completed as of January 1, 2012: | |||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Pro forma rental and other revenues | $ | 152,221 | $ | 162,422 | $ | 451,317 | $ | 410,027 | ||||||||||||
Pro forma net income | $ | 49,818 | $ | 23,952 | $ | 90,064 | $ | 56,782 | ||||||||||||
Pro forma earnings per share - basic | $ | 0.54 | $ | 0.28 | $ | 1 | $ | 0.68 | ||||||||||||
Pro forma earnings per share - diluted | $ | 0.54 | $ | 0.29 | $ | 1 | $ | 0.69 | ||||||||||||
Pro Forma 2012 Acquisitions [Member] | ||||||||||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||||||||||
Schedule of business acquisitions, purchase price allocation, table | During the third quarter of 2012, we acquired a 492,000 square foot office property in Atlanta, GA for $144.9 million. The following table sets forth a summary of the fair value of the major assets acquired and liabilities assumed in this acquisition: | |||||||||||||||||||
Total | ||||||||||||||||||||
Purchase Price Allocation | ||||||||||||||||||||
Real estate assets | $ | 135,128 | ||||||||||||||||||
Acquisition-related intangible assets (in deferred financing and leasing costs) | 21,637 | |||||||||||||||||||
Acquisition-related below market lease liabilities (in accounts payable, accrued expenses and other liabilities) | (11,875 | ) | ||||||||||||||||||
Total allocation | $ | 144,890 | ||||||||||||||||||
Schedule of business acquisitions, pro forma, table | The following table sets forth our rental and other revenues and net income, adjusted for interest expense and depreciation and amortization related to purchase price allocations, and acquisition costs assuming the 492,000 square foot office building in Atlanta, GA was acquired on January 1, 2011: | |||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
2012 | 2012 | |||||||||||||||||||
Pro forma rental and other revenues | $ | 127,836 | $ | 381,070 | ||||||||||||||||
Pro forma net income | $ | 35,765 | $ | 68,526 | ||||||||||||||||
Pro forma earnings per share - basic | $ | 0.43 | $ | 0.84 | ||||||||||||||||
Pro forma earnings per share - diluted | $ | 0.43 | $ | 0.84 | ||||||||||||||||
Mortgages_and_Notes_Receivable1
Mortgages and Notes Receivable (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Receivables [Abstract] | ||||||||||||||||
Schedule of Mortgages and Notes Receivable [Table Text Block] | The following table sets forth our mortgages and notes receivable: | |||||||||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Seller financing (first mortgages) | $ | 16,454 | $ | 15,853 | ||||||||||||
Less allowance | — | — | ||||||||||||||
16,454 | 15,853 | |||||||||||||||
Mortgage receivable | 9,207 | 8,648 | ||||||||||||||
Less allowance | — | — | ||||||||||||||
9,207 | 8,648 | |||||||||||||||
Promissory notes | 970 | 1,153 | ||||||||||||||
Less allowance | (340 | ) | (182 | ) | ||||||||||||
630 | 971 | |||||||||||||||
Mortgages and notes receivable, net | $ | 26,291 | $ | 25,472 | ||||||||||||
Schedule of Notes Receivable Allowance [Table Text Block] | The following table sets forth our notes receivable allowance, which relates only to promissory notes: | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Beginning notes receivable allowance | $ | 376 | $ | 118 | $ | 182 | $ | 61 | ||||||||
Recoveries/write-offs/other | (36 | ) | 93 | 158 | 150 | |||||||||||
Total notes receivable allowance | $ | 340 | $ | 211 | $ | 340 | $ | 211 | ||||||||
Investments_In_and_Advances_To1
Investments In and Advances To Affiliates (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Schedule of Equity Method Investments Summarized Income Statement Information [Table Text Block] | The following table sets forth combined summarized financial information for the Company's unconsolidated affiliates: | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Income Statements: (1) | ||||||||||||||||
Rental and other revenues | $ | 16,911 | $ | 25,051 | $ | 64,362 | $ | 75,920 | ||||||||
Expenses: | ||||||||||||||||
Rental property and other expenses | 8,733 | 11,624 | 31,681 | 35,706 | ||||||||||||
Depreciation and amortization | 5,010 | 6,355 | 17,383 | 18,839 | ||||||||||||
Impairments of real estate assets | 15,287 | — | 20,077 | 7,180 | ||||||||||||
Interest expense | 3,141 | 4,980 | 12,569 | 16,077 | ||||||||||||
Total expenses | 32,171 | 22,959 | 81,710 | 77,802 | ||||||||||||
Income/(loss) before disposition of properties | (15,260 | ) | 2,092 | (17,348 | ) | (1,882 | ) | |||||||||
Gains on disposition of properties | 8,256 | — | 8,323 | 6,275 | ||||||||||||
Net income/(loss) | $ | (7,004 | ) | $ | 2,092 | $ | (9,025 | ) | $ | 4,393 | ||||||
The Company's share of: | ||||||||||||||||
Depreciation and amortization | $ | 1,628 | $ | 2,028 | $ | 5,735 | $ | 5,801 | ||||||||
Impairments of real estate assets | $ | 3,487 | $ | — | $ | 4,507 | $ | 1,002 | ||||||||
Interest expense | $ | 1,099 | $ | 1,775 | $ | 4,583 | $ | 5,598 | ||||||||
Gains on disposition of properties | $ | — | $ | — | $ | 431 | $ | — | ||||||||
Net income/(loss) | $ | (3,410 | ) | $ | 914 | $ | (2,835 | ) | $ | 1,252 | ||||||
The Company's share of net income/(loss) | $ | (3,410 | ) | $ | 914 | $ | (2,835 | ) | $ | 1,252 | ||||||
Adjustments for management and other fees | 237 | 410 | 1,011 | 1,418 | ||||||||||||
Equity in earnings/(losses) of unconsolidated affiliates | $ | (3,173 | ) | $ | 1,324 | $ | (1,824 | ) | $ | 2,670 | ||||||
__________ | ||||||||||||||||
-1 | For the three and nine months ended September 30, 2013, as a result of acquiring our joint venture partner's 60.0% interest in the third quarter of 2013, we consolidated a joint venture previously accounted for under the equity method of accounting. | |||||||||||||||
Highwoods Realty Limited Partnership [Member] | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Schedule of Equity Method Investments Summarized Income Statement Information [Table Text Block] | The following table sets forth combined summarized financial information for the Operating Partnership's unconsolidated affiliates: | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Income Statements: (1) | ||||||||||||||||
Rental and other revenues | $ | 15,872 | $ | 24,062 | $ | 61,243 | $ | 72,916 | ||||||||
Expenses: | ||||||||||||||||
Rental property and other expenses | 8,126 | 11,024 | 29,821 | 33,901 | ||||||||||||
Depreciation and amortization | 4,699 | 6,044 | 16,449 | 17,905 | ||||||||||||
Impairments of real estate assets | 15,287 | — | 20,077 | 7,180 | ||||||||||||
Interest expense | 2,976 | 4,817 | 12,086 | 15,583 | ||||||||||||
Total expenses | 31,088 | 21,885 | 78,433 | 74,569 | ||||||||||||
Income/(loss) before disposition of properties | (15,216 | ) | 2,177 | (17,190 | ) | (1,653 | ) | |||||||||
Gains on disposition of properties | 8,256 | — | 8,323 | 6,275 | ||||||||||||
Net income/(loss) | $ | (6,960 | ) | $ | 2,177 | $ | (8,867 | ) | $ | 4,622 | ||||||
The Operating Partnership's share of: | ||||||||||||||||
Depreciation and amortization | $ | 1,589 | $ | 1,989 | $ | 5,618 | $ | 5,684 | ||||||||
Impairments of real estate assets | $ | 3,487 | $ | — | $ | 4,507 | $ | 1,002 | ||||||||
Interest expense | $ | 1,079 | $ | 1,754 | $ | 4,523 | $ | 5,536 | ||||||||
Gains on disposition of properties | $ | — | $ | — | $ | 431 | $ | — | ||||||||
Net income/(loss) | $ | (3,405 | ) | $ | 925 | $ | (2,815 | ) | $ | 1,281 | ||||||
The Operating Partnership's share of net income/(loss) | $ | (3,405 | ) | $ | 925 | $ | (2,815 | ) | $ | 1,281 | ||||||
Adjustments for management and other fees | 231 | 403 | 940 | 1,398 | ||||||||||||
Equity in earnings/(losses) of unconsolidated affiliates | $ | (3,174 | ) | $ | 1,328 | $ | (1,875 | ) | $ | 2,679 | ||||||
__________ | ||||||||||||||||
-1 | For the three and nine months ended September 30, 2013, as a result of acquiring our joint venture partner's 60.0% interest in the third quarter of 2013, we consolidated a joint venture previously accounted for under the equity method of accounting. |
Intangible_Assets_and_Below_Ma1
Intangible Assets and Below Market Lease Liabilities (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Total intangible assets and below market lease liabilities [Table Text Block] | The following table sets forth total intangible assets and acquisition-related below market lease liabilities, net of accumulated amortization: | ||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Deferred financing costs | $ | 19,506 | $ | 21,759 | |||||||||||||||||||||
Less accumulated amortization | (8,632 | ) | (7,862 | ) | |||||||||||||||||||||
10,874 | 13,897 | ||||||||||||||||||||||||
Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets) | 298,561 | 220,113 | |||||||||||||||||||||||
Less accumulated amortization | (81,609 | ) | (68,001 | ) | |||||||||||||||||||||
216,952 | 152,112 | ||||||||||||||||||||||||
Deferred financing and leasing costs, net | $ | 227,826 | $ | 166,009 | |||||||||||||||||||||
Liabilities (in accounts payable, accrued expenses and other liabilities): | |||||||||||||||||||||||||
Acquisition-related below market lease liabilities | $ | 55,323 | $ | 37,019 | |||||||||||||||||||||
Less accumulated amortization | (6,900 | ) | (3,383 | ) | |||||||||||||||||||||
$ | 48,423 | $ | 33,636 | ||||||||||||||||||||||
Amortization of intangible assets and below market lease liabilities [Table Text Block] | The following table sets forth amortization of intangible assets and acquisition-related below market lease liabilities: | ||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Amortization of deferred financing costs | $ | 963 | $ | 907 | $ | 2,860 | $ | 2,709 | |||||||||||||||||
Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization) | $ | 10,751 | $ | 6,667 | $ | 26,962 | $ | 19,930 | |||||||||||||||||
Amortization of lease incentives (in rental and other revenues) | $ | 347 | $ | 386 | $ | 1,061 | $ | 1,037 | |||||||||||||||||
Amortization of acquisition-related intangible assets (in rental and other revenues) | $ | 1,548 | $ | 433 | $ | 2,499 | $ | 1,027 | |||||||||||||||||
Amortization of acquisition-related intangible assets (in rental property and other expenses) | $ | 140 | $ | 46 | $ | 416 | $ | 46 | |||||||||||||||||
Amortization of acquisition-related below market lease liabilities (in rental and other revenues) | $ | (1,584 | ) | $ | (647 | ) | $ | (3,737 | ) | $ | (1,744 | ) | |||||||||||||
Scheduled future amortization of intangible assets and below market lease liabilities [Table Text Block] | The following table sets forth scheduled future amortization of intangible assets and below market lease liabilities: | ||||||||||||||||||||||||
Amortization of Deferred Financing Costs | Amortization of Deferred Leasing Costs and Acquisition-Related Intangible Assets (in Depreciation and Amortization) | Amortization of Lease Incentives (in Rental and Other Revenues) | Amortization of Acquisition-Related Intangible Assets (in Rental and Other Revenues) | Amortization of Acquisition-Related Intangible Assets (in Rental Property and Other Expenses) | Amortization of Acquisition-Related Below Market Lease Liabilities (in Rental and Other Revenues) | ||||||||||||||||||||
October 1 through December 31, 2013 | $ | 865 | $ | 10,222 | $ | 320 | $ | 1,240 | $ | 138 | $ | (1,567 | ) | ||||||||||||
2014 | 3,233 | 38,795 | 1,199 | 4,401 | 553 | (6,011 | ) | ||||||||||||||||||
2015 | 2,599 | 32,028 | 971 | 3,627 | 553 | (5,728 | ) | ||||||||||||||||||
2016 | 1,500 | 26,229 | 794 | 2,815 | 553 | (5,414 | ) | ||||||||||||||||||
2017 | 1,213 | 22,312 | 729 | 2,265 | 553 | (5,165 | ) | ||||||||||||||||||
Thereafter | 1,464 | 57,402 | 2,553 | 5,058 | 1,642 | (24,538 | ) | ||||||||||||||||||
$ | 10,874 | $ | 186,988 | $ | 6,566 | $ | 19,406 | $ | 3,992 | $ | (48,423 | ) | |||||||||||||
Weighted average remaining amortization periods as of September 30, 2013 (in years) | 5.1 | 6.7 | 7.9 | 6.7 | 7.2 | 9.3 | |||||||||||||||||||
Total intangible assets and below market lease liabilities from acquisition activity [Table Text Block] | The following table sets forth the intangible assets acquired and below market lease liabilities assumed as a result of 2013 acquisition activity: | ||||||||||||||||||||||||
Acquisition-Related Intangible Assets (amortized in Rental and Other Revenues) | Acquisition-Related Intangible Assets (amortized in Depreciation and Amortization) | Acquisition-Related Below Market Lease Liabilities (amortized in Rental and Other Revenues) | |||||||||||||||||||||||
Amount recorded from acquisition activity | $ | 17,201 | $ | 58,422 | $ | (19,124 | ) | ||||||||||||||||||
Weighted average remaining amortization periods as of September 30, 2013 (in years) | 6.5 | 6.5 | 8.9 | ||||||||||||||||||||||
Mortgages_and_Notes_Payable_Ta
Mortgages and Notes Payable (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of Consolidated Mortgages and Notes Payable [Table Text Block] | The following table sets forth our mortgages and notes payable: | |||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Secured indebtedness | $ | 591,821 | $ | 549,607 | ||||
Unsecured indebtedness | 1,458,240 | 1,309,555 | ||||||
Total mortgages and notes payable | $ | 2,050,061 | $ | 1,859,162 | ||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||
Schedule of Derivative Instruments, Fair Value [Table Text Block] | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Derivatives: | ||||||||||||||||
Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities: | ||||||||||||||||
Interest rate swaps | $ | 2,047 | $ | 9,369 | ||||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | The following table sets forth the effect of our cash flow hedges on AOCL and interest expense: | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Derivatives Designated as Cash Flow Hedges: | ||||||||||||||||
Amount of unrealized gains/(losses) recognized in AOCL on derivatives (effective portion): | ||||||||||||||||
Interest rate swaps | $ | (1,798 | ) | $ | (3,337 | ) | $ | 4,801 | $ | (10,424 | ) | |||||
Amount of losses reclassified out of AOCL into contractual interest expense (effective portion): | ||||||||||||||||
Interest rate swaps | $ | 840 | $ | 791 | $ | 2,428 | $ | 2,250 | ||||||||
Noncontrolling_Interests_Table
Noncontrolling Interests (Tables) (Highwoods Properties, Inc. [Member]) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Highwoods Properties, Inc. [Member] | ||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||
Noncontrolling Interests in the Operating Partnership [Table Text Block] | The following table sets forth the Company's noncontrolling interests in the Operating Partnership: | |||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Beginning noncontrolling interests in the Operating Partnership | $ | 124,869 | $ | 110,655 | ||||||||||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | 8,570 | 12,485 | ||||||||||||||
Issuances of Common Units | — | 2,299 | ||||||||||||||
Conversions of Common Units to Common Stock | (28,788 | ) | (731 | ) | ||||||||||||
Net income attributable to noncontrolling interests in the Operating Partnership | 3,713 | 3,166 | ||||||||||||||
Distributions to noncontrolling interests in the Operating Partnership | (4,416 | ) | (4,733 | ) | ||||||||||||
Total noncontrolling interests in the Operating Partnership | $ | 103,948 | $ | 123,141 | ||||||||||||
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership [Table Text Block] | The following table sets forth net income available for common stockholders and transfers from the Company's noncontrolling interests in the Operating Partnership: | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income available for common stockholders | $ | 53,349 | $ | 33,357 | $ | 93,220 | $ | 63,013 | ||||||||
Increase in additional paid in capital from conversions of Common Units | 25,937 | 100 | 28,788 | 731 | ||||||||||||
to Common Stock | ||||||||||||||||
Issuances of Common Units | — | (2,299 | ) | — | (2,299 | ) | ||||||||||
Change from net income available for common stockholders and transfers from noncontrolling interests | $ | 79,286 | $ | 31,158 | $ | 122,008 | $ | 61,445 | ||||||||
Disclosure_About_Fair_Value_of1
Disclosure About Fair Value of Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Measurements of Assets, Liabilities and Noncontrolling Interests [Table Text Block] | The following table sets forth our assets and liabilities and the Company's noncontrolling interests in the Operating Partnership that are measured at fair value within the fair value hierarchy. | ||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||
Total | Quoted Prices | Significant Observable Inputs | Significant Unobservable Inputs | ||||||||||||||
in Active | |||||||||||||||||
Markets for Identical Assets or Liabilities | |||||||||||||||||
Fair Value at September 30, 2013: | |||||||||||||||||
Assets: | |||||||||||||||||
Mortgages and notes receivable, at fair value (1) | $ | 26,409 | $ | — | $ | 17,169 | $ | 9,240 | |||||||||
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) | 3,753 | 3,753 | — | — | |||||||||||||
Tax increment financing bond (in prepaid expenses and other assets) | 14,330 | — | — | 14,330 | |||||||||||||
Total Assets | $ | 44,492 | $ | 3,753 | $ | 17,169 | $ | 23,570 | |||||||||
Noncontrolling Interests in the Operating Partnership | $ | 103,948 | $ | 103,948 | $ | — | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Mortgages and notes payable, at fair value (1) | $ | 2,136,107 | $ | — | $ | 2,136,107 | $ | — | |||||||||
Interest rate swaps (in accounts payable, accrued expenses and other liabilities) | 2,047 | — | 2,047 | — | |||||||||||||
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 3,753 | 3,753 | — | — | |||||||||||||
Contingent consideration to acquire real estate assets (in accounts payable, accrued expenses and other liabilities) | 191 | — | — | 191 | |||||||||||||
Financing obligations, at fair value (1) | 24,211 | — | — | 24,211 | |||||||||||||
Total Liabilities | $ | 2,166,309 | $ | 3,753 | $ | 2,138,154 | $ | 24,402 | |||||||||
Fair Value at December 31, 2012: | |||||||||||||||||
Assets: | |||||||||||||||||
Mortgages and notes receivable, at fair value (1) | $ | 24,725 | $ | — | $ | 16,077 | $ | 8,648 | |||||||||
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) | 3,354 | 3,354 | — | — | |||||||||||||
Tax increment financing bond (in prepaid expenses and other assets) | 14,496 | — | — | 14,496 | |||||||||||||
Total Assets | $ | 42,575 | $ | 3,354 | $ | 16,077 | $ | 23,144 | |||||||||
Noncontrolling Interests in the Operating Partnership | $ | 124,869 | $ | 124,869 | $ | — | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Mortgages and notes payable, at fair value (1) | $ | 1,987,364 | $ | — | $ | 1,987,364 | $ | — | |||||||||
Interest rate swaps (in accounts payable, accrued expenses and other liabilities) | 9,369 | — | 9,369 | — | |||||||||||||
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 3,354 | 3,354 | — | — | |||||||||||||
Contingent consideration to acquire real estate assets (in accounts payable, accrued expenses and other liabilities) | 563 | — | — | 563 | |||||||||||||
Financing obligations, at fair value (1) | 23,252 | — | — | 23,252 | |||||||||||||
Total Liabilities | $ | 2,023,902 | $ | 3,354 | $ | 1,996,733 | $ | 23,815 | |||||||||
__________ | |||||||||||||||||
(1) Amounts recorded at historical cost on our Consolidated Balance Sheets at September 30, 2013 and December 31, 2012. | |||||||||||||||||
Fair Value Measurements, Unobservable Inputs Reconciliation [Table Text Block] | The following table sets forth the changes in our Level 3 asset and liability, which are recorded at fair value on our Consolidated Balance Sheets: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Asset: | |||||||||||||||||
Tax Increment Financing Bond: | |||||||||||||||||
Beginning balance | $ | 14,233 | $ | 15,371 | $ | 14,496 | $ | 14,788 | |||||||||
Principal repayment | — | — | (562 | ) | — | ||||||||||||
Unrealized gains/(losses) (in AOCL) | 97 | (101 | ) | 396 | 482 | ||||||||||||
Ending balance | $ | 14,330 | $ | 15,270 | $ | 14,330 | $ | 15,270 | |||||||||
Liability: | |||||||||||||||||
Contingent Consideration to Acquire Real Estate Assets: | |||||||||||||||||
Beginning balance | $ | 384 | $ | 677 | $ | 563 | $ | 677 | |||||||||
Unrealized gains (in general and administrative expenses) | (193 | ) | (114 | ) | (372 | ) | (114 | ) | |||||||||
Ending balance | $ | 191 | $ | 563 | $ | 191 | $ | 563 | |||||||||
Fair Value Measurements, Valuation Techniques [Table Text Block] | The following table sets forth quantitative information about the unobservable inputs of our Level 3 asset and liability, which are recorded at fair value on our Consolidated Balance Sheets: | ||||||||||||||||
Fair Value at | Valuation | Unobservable | Rate/ Percentage | ||||||||||||||
30-Sep-13 | Technique | Input | |||||||||||||||
Asset: | |||||||||||||||||
Tax increment financing bond | $ | 14,330 | Income approach | Discount rate | 10.80% | ||||||||||||
Liability: | |||||||||||||||||
Contingent consideration to acquire real estate assets | $ | 191 | Income approach | Payout percentage | 25.00% | ||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||
Components of Accumulated Other Comprehensive Loss [Table Text Block] | The following table sets forth the components of AOCL: | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Tax increment financing bond: | ||||||||||||||||
Beginning balance | $ | (1,599 | ) | $ | (1,726 | ) | $ | (1,898 | ) | $ | (2,309 | ) | ||||
Unrealized gains/(losses) on tax increment financing bond | 97 | (101 | ) | 396 | 482 | |||||||||||
Ending balance | (1,502 | ) | (1,827 | ) | (1,502 | ) | (1,827 | ) | ||||||||
Cash flow hedges: | ||||||||||||||||
Beginning balance | (2,543 | ) | (9,053 | ) | (10,730 | ) | (3,425 | ) | ||||||||
Unrealized gains/(losses) on cash flow hedges | (1,798 | ) | (3,337 | ) | 4,801 | (10,424 | ) | |||||||||
Amortization of cash flow hedges (1) | 840 | 791 | 2,428 | 2,250 | ||||||||||||
Ending balance | (3,501 | ) | (11,599 | ) | (3,501 | ) | (11,599 | ) | ||||||||
Total accumulated other comprehensive loss | $ | (5,003 | ) | $ | (13,426 | ) | $ | (5,003 | ) | $ | (13,426 | ) | ||||
__________ | ||||||||||||||||
(1) Amounts reclassified out of AOCL into contractual interest expense. |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||
Operations Classified As Discontinued Operations [Table Text Block] | The following table sets forth our operations classified as discontinued operations: | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Rental and other revenues | $ | 2,810 | $ | 5,671 | $ | 10,398 | $ | 24,211 | ||||||||
Operating expenses: | ||||||||||||||||
Rental property and other expenses | 1,049 | 1,622 | 3,389 | 7,796 | ||||||||||||
Depreciation and amortization | 665 | 1,610 | 3,166 | 7,108 | ||||||||||||
Total operating expenses | 1,714 | 3,232 | 6,555 | 14,904 | ||||||||||||
Interest expense | — | 35 | — | 283 | ||||||||||||
Income from discontinued operations | 1,096 | 2,404 | 3,843 | 9,024 | ||||||||||||
Impairments of real estate assets | — | — | (2,194 | ) | — | |||||||||||
Net gains on disposition of discontinued operations | 37,946 | 22,936 | 52,353 | 29,455 | ||||||||||||
Total discontinued operations | $ | 39,042 | $ | 25,340 | $ | 54,002 | $ | 38,479 | ||||||||
Major Classes of Assets and Liabilities of the Properties Classified As Held For Sale [Table Text Block] | The following table sets forth the major classes of assets of our real estate and other assets, net, held for sale: | |||||||||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Assets: | ||||||||||||||||
Land | $ | 1,948 | $ | 28,598 | ||||||||||||
Buildings and tenant improvements | 18,498 | 132,361 | ||||||||||||||
Land held for development | — | 2,368 | ||||||||||||||
Less-accumulated depreciation | (5,931 | ) | (43,730 | ) | ||||||||||||
Net real estate assets | 14,515 | 119,597 | ||||||||||||||
Accrued straight-line rents receivable, net | 1,187 | 5,759 | ||||||||||||||
Deferred leasing costs, net | 614 | 4,014 | ||||||||||||||
Prepaid expenses and other assets | — | 30 | ||||||||||||||
Real estate and other assets, net, held for sale | $ | 16,316 | $ | 129,400 | ||||||||||||
Earnings_Per_ShareUnit_Tables
Earnings Per Share/Unit (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share/Unit Basic and Diluted [Line Items] | ||||||||||||||||
Earnings Per Share [Table Text Block] | The following table sets forth the computation of basic and diluted earnings per share of the Company: | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Earnings per Common Share - basic: | ||||||||||||||||
Numerator: | ||||||||||||||||
Income from continuing operations | $ | 17,026 | $ | 10,456 | $ | 45,405 | $ | 30,147 | ||||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership from continuing operations | (503 | ) | (459 | ) | (1,684 | ) | (1,335 | ) | ||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations | (203 | ) | (159 | ) | (593 | ) | (566 | ) | ||||||||
Dividends on Preferred Stock | (627 | ) | (627 | ) | (1,881 | ) | (1,881 | ) | ||||||||
Income from continuing operations available for common stockholders | 15,693 | 9,211 | 41,247 | 26,365 | ||||||||||||
Income from discontinued operations | 39,042 | 25,340 | 54,002 | 38,479 | ||||||||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership from discontinued operations | (1,386 | ) | (1,194 | ) | (2,029 | ) | (1,831 | ) | ||||||||
Income from discontinued operations available for common stockholders | 37,656 | 24,146 | 51,973 | 36,648 | ||||||||||||
Net income available for common stockholders | $ | 53,349 | $ | 33,357 | $ | 93,220 | $ | 63,013 | ||||||||
Denominator: | ||||||||||||||||
Denominator for basic earnings per Common Share – weighted average shares (1) (2) | 87,467 | 76,590 | 83,793 | 74,703 | ||||||||||||
Earnings per Common Share - basic: | ||||||||||||||||
Income from continuing operations available for common stockholders | $ | 0.18 | $ | 0.12 | $ | 0.49 | $ | 0.35 | ||||||||
Income from discontinued operations available for common stockholders | 0.43 | 0.32 | 0.62 | 0.49 | ||||||||||||
Net income available for common stockholders | $ | 0.61 | $ | 0.44 | $ | 1.11 | $ | 0.84 | ||||||||
Earnings per Common Share - diluted: | ||||||||||||||||
Numerator: | ||||||||||||||||
Income from continuing operations | $ | 17,026 | $ | 10,456 | $ | 45,405 | $ | 30,147 | ||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations | (203 | ) | (159 | ) | (593 | ) | (566 | ) | ||||||||
Dividends on Preferred Stock | (627 | ) | (627 | ) | (1,881 | ) | (1,881 | ) | ||||||||
Income from continuing operations available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership | 16,196 | 9,670 | 42,931 | 27,700 | ||||||||||||
Income from discontinued operations available for common stockholders | 39,042 | 25,340 | 54,002 | 38,479 | ||||||||||||
Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership | $ | 55,238 | $ | 35,010 | $ | 96,933 | $ | 66,179 | ||||||||
Denominator: | ||||||||||||||||
Denominator for basic earnings per Common Share –weighted average shares (1) (2) | 87,467 | 76,590 | 83,793 | 74,703 | ||||||||||||
Add: | ||||||||||||||||
Stock options using the treasury method | 101 | 137 | 114 | 127 | ||||||||||||
Noncontrolling interests Common Units | 3,201 | 3,768 | 3,536 | 3,738 | ||||||||||||
Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions (1) | 90,769 | 80,495 | 87,443 | 78,568 | ||||||||||||
Earnings per Common Share - diluted: | ||||||||||||||||
Income from continuing operations available for common stockholders | $ | 0.18 | $ | 0.12 | $ | 0.49 | $ | 0.35 | ||||||||
Income from discontinued operations available for common stockholders | 0.43 | 0.31 | 0.62 | 0.49 | ||||||||||||
Net income available for common stockholders | $ | 0.61 | $ | 0.43 | $ | 1.11 | $ | 0.84 | ||||||||
__________ | ||||||||||||||||
13 | Earnings Per Share and Per Unit - Continued | |||||||||||||||
-1 | There were 0.3 million and 0.5 million options outstanding during the three months ended September 30, 2013 and 2012, respectively, and 0.3 million and 0.5 million options outstanding during the nine months ended September 30, 2013 and 2012, respectively, that were not included in the computation of diluted earnings per share because the impact of including such options would be anti-dilutive. | |||||||||||||||
-2 | Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable. | |||||||||||||||
Highwoods Realty Limited Partnership [Member] | ||||||||||||||||
Earnings Per Share/Unit Basic and Diluted [Line Items] | ||||||||||||||||
Earnings Per Unit [Table Text Block] | The following table sets forth the computation of basic and diluted earnings per unit of the Operating Partnership: | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Earnings per Common Unit - basic: | ||||||||||||||||
Numerator: | ||||||||||||||||
Income from continuing operations | $ | 17,025 | $ | 10,460 | $ | 45,354 | $ | 30,156 | ||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations | (203 | ) | (159 | ) | (593 | ) | (566 | ) | ||||||||
Distributions on Preferred Units | (627 | ) | (627 | ) | (1,881 | ) | (1,881 | ) | ||||||||
Income from continuing operations available for common unitholders | 16,195 | 9,674 | 42,880 | 27,709 | ||||||||||||
Income from discontinued operations available for common unitholders | 39,042 | 25,340 | 54,002 | 38,479 | ||||||||||||
Net income available for common unitholders | $ | 55,237 | $ | 35,014 | $ | 96,882 | $ | 66,188 | ||||||||
Denominator: | ||||||||||||||||
Denominator for basic earnings per Common Unit – weighted average units (1) (2) | 90,259 | 79,949 | 86,920 | 78,032 | ||||||||||||
Earnings per Common Unit - basic: | ||||||||||||||||
Income from continuing operations available for common unitholders | $ | 0.18 | $ | 0.12 | $ | 0.49 | $ | 0.36 | ||||||||
Income from discontinued operations available for common unitholders | 0.43 | 0.32 | 0.62 | 0.49 | ||||||||||||
Net income available for common unitholders | $ | 0.61 | $ | 0.44 | $ | 1.11 | $ | 0.85 | ||||||||
Earnings per Common Unit - diluted: | ||||||||||||||||
Numerator: | ||||||||||||||||
Income from continuing operations | $ | 17,025 | $ | 10,460 | $ | 45,354 | $ | 30,156 | ||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations | (203 | ) | (159 | ) | (593 | ) | (566 | ) | ||||||||
Distributions on Preferred Units | (627 | ) | (627 | ) | (1,881 | ) | (1,881 | ) | ||||||||
Income from continuing operations available for common unitholders | 16,195 | 9,674 | 42,880 | 27,709 | ||||||||||||
Income from discontinued operations available for common unitholders | 39,042 | 25,340 | 54,002 | 38,479 | ||||||||||||
Net income available for common unitholders | $ | 55,237 | $ | 35,014 | $ | 96,882 | $ | 66,188 | ||||||||
Denominator: | ||||||||||||||||
Denominator for basic earnings per Common Unit –weighted average units (1) (2) | 90,259 | 79,949 | 86,920 | 78,032 | ||||||||||||
Add: | ||||||||||||||||
Stock options using the treasury method | 101 | 137 | 114 | 127 | ||||||||||||
Denominator for diluted earnings per Common Unit – adjusted weighted average units and assumed conversions (1) | 90,360 | 80,086 | 87,034 | 78,159 | ||||||||||||
Earnings per Common Unit - diluted: | ||||||||||||||||
Income from continuing operations available for common unitholders | $ | 0.18 | $ | 0.12 | $ | 0.49 | $ | 0.36 | ||||||||
Income from discontinued operations available for common unitholders | 0.43 | 0.32 | 0.62 | 0.49 | ||||||||||||
Net income available for common unitholders | $ | 0.61 | $ | 0.44 | $ | 1.11 | $ | 0.85 | ||||||||
__________ | ||||||||||||||||
-1 | There were 0.3 million and 0.5 million options outstanding during the three months ended September 30, 2013 and 2012, respectively, and 0.3 million and 0.5 million options outstanding during the nine months ended September 30, 2013 and 2012, respectively, that were not included in the computation of diluted earnings per unit because the impact of including such options would be anti-dilutive. | |||||||||||||||
-2 | Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable. |
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Segment Information [Table Text Block] | The following tables summarize the rental and other revenues and net operating income, the primary industry property-level performance metric which is defined as rental and other revenues less rental property and other expenses, for each of our reportable segments: | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Rental and Other Revenues: (1) | ||||||||||||||||
Office: | ||||||||||||||||
Atlanta, GA | $ | 22,523 | $ | 13,704 | $ | 57,630 | $ | 43,220 | ||||||||
Greenville, SC | 2,699 | 3,296 | 9,056 | 10,286 | ||||||||||||
Kansas City, MO | 4,064 | 4,014 | 12,067 | 11,173 | ||||||||||||
Memphis, TN | 9,644 | 9,103 | 28,680 | 27,603 | ||||||||||||
Nashville, TN | 15,147 | 14,285 | 43,411 | 42,456 | ||||||||||||
Orlando, FL | 8,441 | 2,217 | 12,894 | 6,594 | ||||||||||||
Piedmont Triad, NC | 6,792 | 5,176 | 19,932 | 14,532 | ||||||||||||
Pittsburgh, PA | 14,191 | 9,482 | 41,835 | 27,671 | ||||||||||||
Raleigh, NC | 21,737 | 20,578 | 64,124 | 60,737 | ||||||||||||
Richmond, VA | 12,006 | 11,848 | 35,639 | 35,442 | ||||||||||||
Tampa, FL | 17,278 | 17,199 | 52,840 | 51,140 | ||||||||||||
Total Office Segment | 134,522 | 110,902 | 378,108 | 330,854 | ||||||||||||
Industrial: | ||||||||||||||||
Atlanta, GA | 210 | 189 | 624 | 610 | ||||||||||||
Piedmont Triad, NC | 2,998 | 3,141 | 9,238 | 9,389 | ||||||||||||
Total Industrial Segment | 3,208 | 3,330 | 9,862 | 9,999 | ||||||||||||
Retail: | ||||||||||||||||
Kansas City, MO | 9,564 | 9,186 | 27,991 | 27,176 | ||||||||||||
Total Retail Segment | 9,564 | 9,186 | 27,991 | 27,176 | ||||||||||||
Total Rental and Other Revenues | $ | 147,294 | $ | 123,418 | $ | 415,961 | $ | 368,029 | ||||||||
14 | Segment Information - Continued | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net Operating Income: (1) | ||||||||||||||||
Office: | ||||||||||||||||
Atlanta, GA | $ | 13,868 | $ | 8,408 | $ | 35,936 | $ | 27,346 | ||||||||
Greenville, SC | 1,301 | 1,806 | 4,869 | 5,986 | ||||||||||||
Kansas City, MO | 2,597 | 2,546 | 7,796 | 7,060 | ||||||||||||
Memphis, TN | 5,408 | 5,378 | 16,337 | 16,226 | ||||||||||||
Nashville, TN | 10,311 | 9,772 | 30,028 | 29,247 | ||||||||||||
Orlando, FL | 4,950 | 947 | 7,099 | 3,066 | ||||||||||||
Piedmont Triad, NC | 4,373 | 3,095 | 12,823 | 9,103 | ||||||||||||
Pittsburgh, PA | 8,001 | 4,949 | 23,322 | 13,851 | ||||||||||||
Raleigh, NC | 14,920 | 13,939 | 45,226 | 42,267 | ||||||||||||
Richmond, VA | 7,910 | 7,863 | 24,267 | 24,270 | ||||||||||||
Tampa, FL | 10,165 | 10,818 | 32,287 | 32,028 | ||||||||||||
Total Office Segment | 83,804 | 69,521 | 239,990 | 210,450 | ||||||||||||
Industrial: | ||||||||||||||||
Atlanta, GA | 122 | 100 | 361 | 347 | ||||||||||||
Piedmont Triad, NC | 2,187 | 2,256 | 6,797 | 6,848 | ||||||||||||
Total Industrial Segment | 2,309 | 2,356 | 7,158 | 7,195 | ||||||||||||
Retail: | ||||||||||||||||
Kansas City, MO | 5,837 | 5,676 | 17,066 | 16,525 | ||||||||||||
Total Retail Segment | 5,837 | 5,676 | 17,066 | 16,525 | ||||||||||||
Residential: | ||||||||||||||||
Raleigh, NC | — | (33 | ) | — | (178 | ) | ||||||||||
Total Residential Segment | — | (33 | ) | — | (178 | ) | ||||||||||
Corporate and other | (21 | ) | (6 | ) | (55 | ) | (65 | ) | ||||||||
Total Net Operating Income | 91,929 | 77,514 | 264,159 | 233,927 | ||||||||||||
Reconciliation to income from continuing operations before disposition of property and condominiums and acquisition of controlling interest in and equity in earnings/(losses) of unconsolidated affiliates: | ||||||||||||||||
Depreciation and amortization | (48,124 | ) | (37,041 | ) | (130,390 | ) | (110,656 | ) | ||||||||
General and administrative expenses | (8,969 | ) | (9,725 | ) | (27,948 | ) | (28,298 | ) | ||||||||
Interest expense | (23,672 | ) | (23,612 | ) | (70,826 | ) | (72,661 | ) | ||||||||
Other income | 1,550 | 1,916 | 4,786 | 4,910 | ||||||||||||
Income from continuing operations before disposition of property and condominiums and acquisition of controlling interest in and equity in earnings/(losses) of unconsolidated affiliates | $ | 12,714 | $ | 9,052 | $ | 39,781 | $ | 27,222 | ||||||||
__________ | ||||||||||||||||
-1 | Net of discontinued operations. |
Description_of_Business_and_Si2
Description of Business and Significant Accounting Policies (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
property | Highwoods Properties, Inc. [Member] | Highwoods Properties, Inc. [Member] | Highwoods Properties, Inc. [Member] | Highwoods Properties, Inc. [Member] | Highwoods Properties, Inc. [Member] | Highwoods Realty Limited Partnership [Member] | ||
sqft | sqft | ATM Equity Offering [Member] | ATM Equity Offering [Member] | Public Equity Offering (8/2013) [Member] | ||||
acre | ||||||||
Description of Business and Significant Accounting Policies [Line Items] | ||||||||
In-service office, industrial and retail properties (in units) | 282 | |||||||
Square footage of commercial property (in sq feet) | 30,100,000 | |||||||
Undeveloped land suitable for future development (in acres) | 592 | |||||||
Undeveloped land considered core holdings (in acres) | 496 | |||||||
Office properties under/planned for development (in units) | 4 | |||||||
Percentage of equity interest in joint ventures, maximum (in hundredths) | 50.00% | |||||||
Number of real estate properties not wholly owned (in units) | 23 | |||||||
Area of undeveloped land not wholly owned (in acres) | 11 | |||||||
Percentage of equity interest in joint venture not owned by Operating Partership | 12.50% | |||||||
Square footage of real estate property not owned by Operating Partnership (in sq feet) | 261,000 | |||||||
Common Units of partnership owned by the Company (in shares) | 89,500,000 | |||||||
Percentage of ownership of Common Units | 96.80% | 95.60% | ||||||
Common Units of partnership not owned by the Company (in shares) | 2,900,000 | |||||||
Common Units redeemed for a like number of common shares of stock (in shares) | 789,144 | |||||||
Number of Common Stock sold during the period (in shares) | 904,809 | 3,961,190 | 4,312,500 | |||||
Average price of Common Stock sold during the period (in dollars per share) | $35.81 | $36.97 | ||||||
Net proceeds of Common Stock sold during the period | $305,601 | $186,674 | $31,900 | $144,200 | $150,900 |
Real_Estate_Assets_Details
Real Estate Assets (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | |
acre | acre | Pro Forma 2013 Acquisitions [Member] | Pro Forma 2013 Acquisitions [Member] | Pro Forma 2013 Acquisitions [Member] | Pro Forma 2013 Acquisitions [Member] | Pro Forma 2012 Acquisitions [Member] | Pro Forma 2012 Acquisitions [Member] | Orlando, FL Office Properties Acquisition (9/2013) [Member] | Nashville, TN Office Property Acquisition (9/2013) [Member] | Atlanta, GA Office Properties Acquisition (9/2013) [Member] | Atlanta, GA Office Property Acquisition (6/2013) [Member] | Tampa, FL Office Properties Acquisition (3/2013) [Member] | Greensboro, NC Office Properties Acquisition (3/2013) [Member] | Memphis, TN Development Land Acquisition (3/2013) [Member] | Atlanta, GA Office Property Acquisition (9/2012) [Member] | Tampa, FL Office Property Disposition (9/2013) [Member] | Atlanta, GA Industrial Properties/Land Disposition (9/2013) [Member] | Atlanta, GA Industrial Property Disposition (6/2013) [Member] | Atlanta, GA Industrial Property/Land Disposition 2 (6/2013) [Member] | Atlanta, GA Industrial Property Disposition 3 (6/2013) [Member] | Orlando, FL Office Properties Disposition (3/2013) [Member] | Jackson, MS Office Property Disposition (9/2012) [Member] | Winston-Salem, NC Office Properties (6/2013) [Member] | Atlanta, GA Industrial Properties (3/2013) [Member] | Atlanta, GA Industrial Properties Held For Sale (3/2013) [Member] | |||
property | sqft | sqft | sqft | sqft | property | acre | sqft | property | property | property | property | property | property | property | property | |||||||||||||
sqft | property | property | sqft | |||||||||||||||||||||||||
Acquisitions [Abstract] | ||||||||||||||||||||||||||||
Percentage of equity interest acquired in unconsolidated affiliate (in hundredths) | 60.00% | 57.00% | ||||||||||||||||||||||||||
Percentage of equity interest in joint venture, previously held (in hundredths) | 40.00% | |||||||||||||||||||||||||||
Number of office properties acquired | 5 | 2 | 2 | 2 | ||||||||||||||||||||||||
Rentable square feet of acquisition (in sq. ft) | 1,300,000 | 520,000 | 505,000 | 553,000 | 372,000 | 195,000 | 492,000 | |||||||||||||||||||||
Purchase price of acquisition of unconsolidated affiliate | $112,800,000 | |||||||||||||||||||||||||||
Fair value of assets recorded from the acquisition | 188,000,000 | |||||||||||||||||||||||||||
Fair value of debt assumed from the acquisition | 127,891,000 | 127,891,000 | 127,900,000 | 37,600,000 | ||||||||||||||||||||||||
Effective interest rate of secured debt assumed from the acquisition (in hundredths) | 3.11% | 3.34% | ||||||||||||||||||||||||||
Maturity date of debt assumed from the acquisition | 1-Jul-14 | 1-Apr-15 | ||||||||||||||||||||||||||
Previously held equity interest remeasured at fair value | 75,200,000 | |||||||||||||||||||||||||||
Gain on acquisition of controlling interest in unconsolidated affiliate | 7,451,000 | 0 | 7,451,000 | 0 | 7,500,000 | |||||||||||||||||||||||
Acquisition purchase price | 150,100,000 | 44,500,000 | 140,100,000 | 52,500,000 | 30,800,000 | 4,800,000 | 144,900,000 | |||||||||||||||||||||
Acquisition development land (in acres) | 592 | 592 | 5 | |||||||||||||||||||||||||
Acquisition-related costs | 800,000 | 1,700,000 | ||||||||||||||||||||||||||
Business Acquisition, Purchase Price Allocation [Abstract] | ||||||||||||||||||||||||||||
Real estate assets | 445,396,000 | 445,396,000 | 135,128,000 | 135,128,000 | ||||||||||||||||||||||||
Acquisition-related intangible assets (in deferred financing and leasing costs) | 50,595,000 | 50,595,000 | 21,637,000 | 21,637,000 | ||||||||||||||||||||||||
Fair value of debt assumed from the acquisition | -127,891,000 | -127,891,000 | -127,900,000 | -37,600,000 | ||||||||||||||||||||||||
Acquisition-related below market lease liabilities (in accounts payable, accrued expenses and other liabilities) | -17,818,000 | -17,818,000 | -11,875,000 | -11,875,000 | ||||||||||||||||||||||||
Total allocation | 350,282,000 | 350,282,000 | 144,890,000 | 144,890,000 | ||||||||||||||||||||||||
Business Acquisition, Pro Forma Information [Abstract] | ||||||||||||||||||||||||||||
Pro forma, rental and other revenues | 152,221,000 | 162,422,000 | 451,317,000 | 410,027,000 | 127,836,000 | 381,070,000 | ||||||||||||||||||||||
Pro forma, net income | 49,818,000 | 23,952,000 | 90,064,000 | 56,782,000 | 35,765,000 | 68,526,000 | ||||||||||||||||||||||
Pro forma, earnings per share - basic | $0.54 | $0.28 | $1 | $0.68 | $0.43 | $0.84 | ||||||||||||||||||||||
Pro forma, earnings per share - diluted | $0.54 | $0.29 | $1 | $0.69 | $0.43 | $0.84 | ||||||||||||||||||||||
Pro forma, assumption date of acquisition | 1-Jan-12 | 1-Jan-11 | ||||||||||||||||||||||||||
Revenues recorded due to acquisitions | 10,000,000 | 10,300,000 | ||||||||||||||||||||||||||
Net loss recorded due to acquisitions | -100,000 | -400,000 | ||||||||||||||||||||||||||
Dispositions [Abstract] | ||||||||||||||||||||||||||||
Number of office properties sold | 2 | |||||||||||||||||||||||||||
Number of industrial real estate properties sold | 16 | 5 | 6 | 2 | ||||||||||||||||||||||||
Proceeds received from sale of real estate | 11,600,000 | 91,600,000 | 4,500,000 | 38,700,000 | 4,800,000 | 14,600,000 | ||||||||||||||||||||||
Closing credits for unfunded tenant improvements | 300,000 | 1,800,000 | 800,000 | |||||||||||||||||||||||||
Closing credits for free rent | 300,000 | 100,000 | 1,300,000 | |||||||||||||||||||||||||
Gain/(loss) on disposition of discontinued operations | 37,946,000 | 22,936,000 | 52,353,000 | 29,455,000 | 1,200,000 | 36,700,000 | 100,000 | 13,200,000 | -100,000 | -300,000 | 1,500,000 | |||||||||||||||||
Gain on disposition of property | 34,000 | 0 | -3,000 | 0 | 100,000 | |||||||||||||||||||||||
Impairments [Abstract] | ||||||||||||||||||||||||||||
Number of impaired properties | 4 | 2 | 5 | |||||||||||||||||||||||||
Impairments of real estate assets | 1,100,000 | 400,000 | ||||||||||||||||||||||||||
Impairments of real estate assets held for sale | $0 | $0 | $2,194,000 | $0 | $700,000 |
Mortgages_and_Notes_Receivable2
Mortgages and Notes Receivable (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Seller Financing [Member] | Seller Financing [Member] | Seller Financing [Member] | Mortgage Receivable [Member] | Mortgage Receivable [Member] | Promissory Notes [Member] | Promissory Notes [Member] | Promissory Notes [Member] | Promissory Notes [Member] | Promissory Notes [Member] | |||
transactions | ||||||||||||
Schedule of mortgages and notes receivable [Abstract] | ||||||||||||
Mortgages and notes receivable, gross | $16,454,000 | $15,853,000 | $9,207,000 | $8,648,000 | $970,000 | $970,000 | $1,153,000 | |||||
Mortgages and notes receivable, allowance | -340,000 | -182,000 | 0 | 0 | 0 | -340,000 | -211,000 | -340,000 | -211,000 | |||
Mortgages and notes receivable, net | 26,291,000 | 25,472,000 | 16,454,000 | 15,853,000 | 9,207,000 | 8,648,000 | 630,000 | 630,000 | 971,000 | |||
Number of transactions with seller financing | 2 | |||||||||||
Additional loan commitment to third party | 8,400,000 | |||||||||||
Cumulative funds for future infrastructure disbursed to third party | 200,000 | |||||||||||
Notes receivable allowance, promissory notes [Roll Forward] | ||||||||||||
Beginning notes receivable allowance | 340,000 | 182,000 | 0 | 0 | 0 | 376,000 | 118,000 | 182,000 | 61,000 | |||
Recoveries/write-offs/other | -36,000 | 93,000 | 158,000 | 150,000 | ||||||||
Total notes receivable allowance | $340,000 | $182,000 | $0 | $0 | $0 | $340,000 | $211,000 | $340,000 | $211,000 |
Investments_In_and_Advances_To2
Investments In and Advances To Affiliates (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | |||||
Highwoods DLF 98/29, LLC Joint Venture [Member] | Highwoods DLF 98/29, LLC Joint Venture [Member] | Highwoods DLF 98/29, LLC Joint Venture [Member] | Highwoods DLF 97/26 DLF 99/32, LP Joint Venture [Member] | Highwoods DLF 97/26 DLF 99/32, LP Joint Venture [Member] | HIW-KC Orlando, LLC Joint Venture [Member] | Highwoods Realty Limited Partnership [Member] | Highwoods Realty Limited Partnership [Member] | Highwoods Realty Limited Partnership [Member] | Highwoods Realty Limited Partnership [Member] | Highwoods Realty Limited Partnership [Member] | |||||||||
property | HIW-KC Orlando, LLC Joint Venture [Member] | ||||||||||||||||||
Income Statements: | |||||||||||||||||||
Rental and other revenues | $16,911,000 | $25,051,000 | $64,362,000 | $75,920,000 | $15,872,000 | $24,062,000 | $61,243,000 | $72,916,000 | |||||||||||
Expenses: | |||||||||||||||||||
Rental property and other expenses | 8,733,000 | 11,624,000 | 31,681,000 | 35,706,000 | 8,126,000 | 11,024,000 | 29,821,000 | 33,901,000 | |||||||||||
Depreciation and amortization | 5,010,000 | 6,355,000 | 17,383,000 | 18,839,000 | 4,699,000 | 6,044,000 | 16,449,000 | 17,905,000 | |||||||||||
Impairments of real estate assets | 15,287,000 | 0 | 20,077,000 | 7,180,000 | 15,300,000 | 4,800,000 | 15,287,000 | 0 | 20,077,000 | 7,180,000 | |||||||||
Interest expense | 3,141,000 | 4,980,000 | 12,569,000 | 16,077,000 | 2,976,000 | 4,817,000 | 12,086,000 | 15,583,000 | |||||||||||
Total expenses | 32,171,000 | 22,959,000 | 81,710,000 | 77,802,000 | 31,088,000 | 21,885,000 | 78,433,000 | 74,569,000 | |||||||||||
Income/(loss) before disposition of properties | -15,260,000 | 2,092,000 | -17,348,000 | -1,882,000 | -15,216,000 | 2,177,000 | -17,190,000 | -1,653,000 | |||||||||||
Gains on disposition of properties | 8,256,000 | 0 | 8,323,000 | 6,275,000 | 100,000 | 100,000 | 8,256,000 | 0 | 8,323,000 | 6,275,000 | |||||||||
Net income/(loss) | -7,004,000 | 2,092,000 | -9,025,000 | 4,393,000 | -6,960,000 | 2,177,000 | -8,867,000 | 4,622,000 | |||||||||||
Our share of: | |||||||||||||||||||
Depreciation and amortization of real estate assets | 1,628,000 | 2,028,000 | 5,735,000 | 5,801,000 | 1,589,000 | 1,989,000 | 5,618,000 | 5,684,000 | |||||||||||
Impairments of real estate assets | 3,487,000 | 0 | 4,507,000 | 1,002,000 | 3,500,000 | 1,000,000 | 3,487,000 | 0 | 4,507,000 | 1,002,000 | |||||||||
Interest expense | 1,099,000 | 1,775,000 | 4,583,000 | 5,598,000 | 1,079,000 | 1,754,000 | 4,523,000 | 5,536,000 | |||||||||||
Our share of gains recorded on disposition of property | 0 | 0 | 431,000 | 0 | 100,000 | 400,000 | 0 | 0 | 431,000 | 0 | |||||||||
Net income | -3,410,000 | [1] | 914,000 | -2,835,000 | [1] | 1,252,000 | -3,405,000 | [1] | 925,000 | -2,815,000 | [1] | 1,281,000 | |||||||
Our share of net income | -3,410,000 | [1] | 914,000 | -2,835,000 | [1] | 1,252,000 | -3,405,000 | [1] | 925,000 | -2,815,000 | [1] | 1,281,000 | |||||||
Adjustments for management and other fees | 237,000 | 410,000 | 1,011,000 | 1,418,000 | 231,000 | 403,000 | 940,000 | 1,398,000 | |||||||||||
Equity in earnings of unconsolidated affiliates | -3,173,000 | 1,324,000 | -1,824,000 | 2,670,000 | -3,174,000 | 1,328,000 | -1,875,000 | 2,679,000 | |||||||||||
Percentage of equity interest in joint ventures, maximum (in hundredths) | 50.00% | 50.00% | |||||||||||||||||
Percentage of equity interest acquired in unconsolidated affiliate (in hundredths) | 60.00% | 60.00% | |||||||||||||||||
Number of office properties sold | 2 | ||||||||||||||||||
Proceeds received from disposition of property | 5,900,000 | 10,100,000 | |||||||||||||||||
Closing credits for free rent | $100,000 | $300,000 | |||||||||||||||||
[1] | (1)For the three and nine months ended September 30, 2013, as a result of acquiring our joint venture partner's 60.0% interest in the third quarter of 2013, we consolidated a joint venture previously accounted for under the equity method of accounting. |
Intangible_Assets_and_Below_Ma2
Intangible Assets and Below Market Lease Liabilities (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Intangible assets and below market lease liabilities, net [Abstract] | |||||
Deferred financing and leasing costs, accumulated amortization | ($90,241) | ($90,241) | ($75,863) | ||
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets | 227,826 | 227,826 | 166,009 | ||
Acquired above market lease intangible assets | 17,201 | 17,201 | |||
Acquired in-place lease intangible assets | 58,422 | 58,422 | |||
Assumed below market lease liabilities | -19,124 | -19,124 | |||
Deferred Financing Costs [Member] | |||||
Intangible assets and below market lease liabilities, net [Abstract] | |||||
Deferred financing and leasing costs, gross | 19,506 | 19,506 | 21,759 | ||
Deferred financing and leasing costs, accumulated amortization | -8,632 | -8,632 | -7,862 | ||
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets | 10,874 | 10,874 | 13,897 | ||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||||
Amortization of intangible assets | 963 | 907 | 2,860 | 2,709 | |
Deferred Leasing Costs [Member] | |||||
Intangible assets and below market lease liabilities, net [Abstract] | |||||
Deferred financing and leasing costs, gross | 298,561 | 298,561 | 220,113 | ||
Deferred financing and leasing costs, accumulated amortization | -81,609 | -81,609 | -68,001 | ||
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets | 216,952 | 216,952 | 152,112 | ||
Deferred Leasing Costs and Acquisition-Related Intangible Assets [Member] | |||||
Intangible assets and below market lease liabilities, net [Abstract] | |||||
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets | 186,988 | 186,988 | |||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||||
Amortization of intangible assets | 10,751 | 6,667 | 26,962 | 19,930 | |
Lease Incentives [Member] | |||||
Intangible assets and below market lease liabilities, net [Abstract] | |||||
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets | 6,566 | 6,566 | |||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||||
Amortization of intangible assets | 347 | 386 | 1,061 | 1,037 | |
Acquisition-Related Intangible Assets (in Rental and Other Revenues) [Member] | |||||
Intangible assets and below market lease liabilities, net [Abstract] | |||||
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets | 19,406 | 19,406 | |||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||||
Amortization of intangible assets | 1,548 | 433 | 2,499 | 1,027 | |
Acquisition-Related Intangible Assets (in Rental Property and Other Expenses) [Member] | |||||
Intangible assets and below market lease liabilities, net [Abstract] | |||||
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets | 3,992 | 3,992 | |||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||||
Amortization of intangible assets | 140 | 46 | 416 | 46 | |
Acquisition-Related Below Market Lease Liabilities [Member] | |||||
Intangible assets and below market lease liabilities, net [Abstract] | |||||
Acquisition-related below market lease liabilities, gross | 55,323 | 55,323 | 37,019 | ||
Acquisition-related below market lease liabilities, accumulated amortization | -6,900 | -6,900 | -3,383 | ||
Acquisition-related below market lease liabilities, net | 48,423 | 48,423 | 33,636 | ||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||||
Amortization of acquisition-related below market lease liabilities | ($1,584) | ($647) | ($3,737) | ($1,744) |
Intangible_Assets_and_Below_Ma3
Intangible Assets and Below Market Lease Liabilities - Scheduled Future Amortization (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Scheduled future amortization of intangible assets [Abstract] | |||
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets | $227,826 | $227,826 | $166,009 |
Deferred Financing Costs [Member] | |||
Scheduled future amortization of intangible assets [Abstract] | |||
October 1, 2013 through December 31, 2013 | 865 | 865 | |
2014 | 3,233 | 3,233 | |
2015 | 2,599 | 2,599 | |
2016 | 1,500 | 1,500 | |
2017 | 1,213 | 1,213 | |
Thereafter | 1,464 | 1,464 | |
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets | 10,874 | 10,874 | 13,897 |
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract] | |||
Finite-lived intangible assets, average useful life (in years) | 5 years 1 month 15 days | ||
Deferred Leasing Costs and Acquisition-Related Intangible Assets [Member] | |||
Scheduled future amortization of intangible assets [Abstract] | |||
October 1, 2013 through December 31, 2013 | 10,222 | 10,222 | |
2014 | 38,795 | 38,795 | |
2015 | 32,028 | 32,028 | |
2016 | 26,229 | 26,229 | |
2017 | 22,312 | 22,312 | |
Thereafter | 57,402 | 57,402 | |
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets | 186,988 | 186,988 | |
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract] | |||
Finite-lived intangible assets, average useful life (in years) | 6 years 8 months 12 days | ||
Lease Incentives [Member] | |||
Scheduled future amortization of intangible assets [Abstract] | |||
October 1, 2013 through December 31, 2013 | 320 | 320 | |
2014 | 1,199 | 1,199 | |
2015 | 971 | 971 | |
2016 | 794 | 794 | |
2017 | 729 | 729 | |
Thereafter | 2,553 | 2,553 | |
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets | 6,566 | 6,566 | |
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract] | |||
Finite-lived intangible assets, average useful life (in years) | 7 years 11 months | ||
Acquisition-Related Intangible Assets (in Rental and Other Revenues) [Member] | |||
Scheduled future amortization of intangible assets [Abstract] | |||
October 1, 2013 through December 31, 2013 | 1,240 | 1,240 | |
2014 | 4,401 | 4,401 | |
2015 | 3,627 | 3,627 | |
2016 | 2,815 | 2,815 | |
2017 | 2,265 | 2,265 | |
Thereafter | 5,058 | 5,058 | |
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets | 19,406 | 19,406 | |
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract] | |||
Finite-lived intangible assets, average useful life (in years) | 6 years 8 months 12 days | ||
Acquired finite-lived intangible assets, average useful life (in years) | 6 years 6 months | ||
Acquisition-Related Intangible Assets (in Rental Property and Other Expenses) [Member] | |||
Scheduled future amortization of intangible assets [Abstract] | |||
October 1, 2013 through December 31, 2013 | 138 | 138 | |
2014 | 553 | 553 | |
2015 | 553 | 553 | |
2016 | 553 | 553 | |
2017 | 553 | 553 | |
Thereafter | 1,642 | 1,642 | |
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets | 3,992 | 3,992 | |
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract] | |||
Finite-lived intangible assets, average useful life (in years) | 7 years 2 months 13 days | ||
Acquisition-Related Below Market Lease Liabilities [Member] | |||
Scheduled future amortization of below market lease liabilities [Abstract] | |||
October 1, 2013 through December 31, 2013 | -1,567 | -1,567 | |
2014 | -6,011 | -6,011 | |
2015 | -5,728 | -5,728 | |
2016 | -5,414 | -5,414 | |
2017 | -5,165 | -5,165 | |
Thereafter | -24,538 | -24,538 | |
Total scheduled future amortization of acquisition-related below market lease liabilities | ($48,423) | ($48,423) | ($33,636) |
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract] | |||
Finite-lived below market lease liabilities, average useful life (in years) | 9 years 4 months | ||
Assumed finite-lived below market lease liabilities, average useful life (in years) | 8 years 11 months | ||
in-Place Lease Intangible Assets [Member] | |||
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract] | |||
Acquired finite-lived intangible assets, average useful life (in years) | 6 years 6 months |
Mortgages_and_Notes_Payable_De
Mortgages and Notes Payable (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Oct. 21, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |
Revolving Credit Facility due 2015 [Member] | Revolving Credit Facility due 2015 [Member] | Variable Rate Term Loan due 2016 [Member] | 5.68% and 6.48% Mortgage Loans Due 2013 [Member] | Secured indebtedness [Member] | Secured indebtedness [Member] | Unsecured indebtedness [Member] | Unsecured indebtedness [Member] | ||||||
loans | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Mortgages and notes payable | $2,050,061,000 | $2,050,061,000 | $1,859,162,000 | $591,821,000 | $549,607,000 | $1,458,240,000 | $1,309,555,000 | ||||||
Aggregate undepreciated book value of secured real estate assets | 971,200,000 | ||||||||||||
Maximum borrowing capacity on revolving credit facility | 475,000,000 | ||||||||||||
Maturity date on revolving credit facility | 27-Jul-15 | ||||||||||||
Additional borrowing capacity on revolving credit facility | 75,000,000 | ||||||||||||
Amount outstanding on revolving credit facility | 206,400,000 | 284,400,000 | |||||||||||
Outstanding letters of credit on revolving credit facility | 100,000 | 100,000 | |||||||||||
Unused borrowing capacity on revolving credit facility | 268,500,000 | 190,500,000 | |||||||||||
Early repayment of debt | 35,000,000 | 114,700,000 | |||||||||||
Number of debt instruments repaid | 2 | ||||||||||||
Current interest rate (in hundredths) | 5.75% | ||||||||||||
Debt instrument maturity date | 28-Feb-16 | 1-Dec-13 | |||||||||||
Principal amount of debt | 200,000,000 | ||||||||||||
Loss on extinguishment of debt | ($32,000) | $0 | ($196,000) | ($973,000) | ($200,000) | ($100,000) |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||
Expected increase to interest expense | $3,300,000 | $3,300,000 | |||
Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities [Abstract] | |||||
Interest rate swaps | 2,047,000 | 2,047,000 | 9,369,000 | ||
Amount of unrealized gains/(losses) recognized in AOCL on derivatives (effective portion) [Abstract] | |||||
Interest rate swaps | -1,798,000 | -3,337,000 | 4,801,000 | -10,424,000 | |
Amount of (gains)/losses reclassified out of AOCL into contractual interest expense (effective portion) [Abstract] | |||||
Interest rate swaps | $840,000 | $791,000 | $2,428,000 | $2,250,000 |
Noncontrolling_Interests_Detai
Noncontrolling Interests (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Noncontrolling Interests in the Operating Partnership [Roll Forward] | ||||
Beginning noncontrolling interests in the Operating Partnership | $124,869 | |||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | 8,570 | 12,485 | ||
Conversions of Common Units to Common Stock | -28,788 | -731 | ||
Net income attributable to noncontrolling interests in the Operating Partnership | 1,889 | 1,653 | 3,713 | 3,166 |
Distributions to noncontrolling interests in the Operating Partnership | 4,416 | 4,733 | ||
Total noncontrolling interests in the Operating Partnership | 103,948 | 103,948 | ||
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership [Abstract] | ||||
Net income available for common stockholders | 53,349 | 33,357 | 93,220 | 63,013 |
Noncontrolling Interests in Consolidated Affiliates [Abstract] | ||||
Consolidated joint venture, partner's interest (in hundredths) | 50.00% | 50.00% | ||
Highwoods Properties, Inc. [Member] | ||||
Noncontrolling Interests in the Operating Partnership [Roll Forward] | ||||
Beginning noncontrolling interests in the Operating Partnership | 124,869 | 110,655 | ||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | 8,570 | 12,485 | ||
Issuances of Common Units | 0 | 2,299 | ||
Conversions of Common Units to Common Stock | -28,788 | -731 | ||
Net income attributable to noncontrolling interests in the Operating Partnership | 3,713 | 3,166 | ||
Distributions to noncontrolling interests in the Operating Partnership | -4,416 | -4,733 | ||
Total noncontrolling interests in the Operating Partnership | 103,948 | 123,141 | 103,948 | 123,141 |
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership [Abstract] | ||||
Net income available for common stockholders | 53,349 | 33,357 | 93,220 | 63,013 |
Increase in additional paid in capital from conversions of Common Units to Common Stock | 25,937 | 100 | 28,788 | 731 |
Issuance of Common Units | 0 | -2,299 | 0 | -2,299 |
Change from net income available for common stockholders and transfers from noncontrolling interests | $79,286 | $31,158 | $122,008 | $61,445 |
Disclosure_About_Fair_Value_of2
Disclosure About Fair Value of Financial Instruments - Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Assets: | ||||
Mortgages and notes receivable, at fair value | $26,409 | [1] | $24,725 | [1] |
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) | 3,753 | 3,354 | ||
Tax increment financing bond (in prepaid expenses and other assets) | 14,330 | 14,496 | ||
Total Assets | 44,492 | 42,575 | ||
Liabilities: | ||||
Mortgages and notes payable, at fair value | 2,136,107 | [1] | 1,987,364 | [1] |
Interest rate swaps (in accounts payable, accrued expenses and other liabilities) | 2,047 | 9,369 | ||
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 3,753 | 3,354 | ||
Contingent consideration to acquire real estate assets (in accounts payable, accrued expenses and other liabilities) | 191 | 563 | ||
Financing obligations, at fair value | 24,211 | [1] | 23,252 | [1] |
Total Liabilities | 2,166,309 | 2,023,902 | ||
Level 1 [Member] | ||||
Assets: | ||||
Mortgages and notes receivable, at fair value | 0 | 0 | ||
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) | 3,753 | 3,354 | ||
Tax increment financing bond (in prepaid expenses and other assets) | 0 | 0 | ||
Total Assets | 3,753 | 3,354 | ||
Liabilities: | ||||
Mortgages and notes payable, at fair value | 0 | 0 | ||
Interest rate swaps (in accounts payable, accrued expenses and other liabilities) | 0 | 0 | ||
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 3,753 | 3,354 | ||
Contingent consideration to acquire real estate assets (in accounts payable, accrued expenses and other liabilities) | 0 | 0 | ||
Financing obligations, at fair value | 0 | 0 | ||
Total Liabilities | 3,753 | 3,354 | ||
Level 2 [Member] | ||||
Assets: | ||||
Mortgages and notes receivable, at fair value | 17,169 | 16,077 | ||
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) | 0 | 0 | ||
Tax increment financing bond (in prepaid expenses and other assets) | 0 | 0 | ||
Total Assets | 17,169 | 16,077 | ||
Liabilities: | ||||
Mortgages and notes payable, at fair value | 2,136,107 | 1,987,364 | ||
Interest rate swaps (in accounts payable, accrued expenses and other liabilities) | 2,047 | 9,369 | ||
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 0 | 0 | ||
Contingent consideration to acquire real estate assets (in accounts payable, accrued expenses and other liabilities) | 0 | 0 | ||
Financing obligations, at fair value | 0 | 0 | ||
Total Liabilities | 2,138,154 | 1,996,733 | ||
Level 3 [Member] | ||||
Assets: | ||||
Mortgages and notes receivable, at fair value | 9,240 | 8,648 | ||
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) | 0 | 0 | ||
Tax increment financing bond (in prepaid expenses and other assets) | 14,330 | 14,496 | ||
Total Assets | 23,570 | 23,144 | ||
Liabilities: | ||||
Mortgages and notes payable, at fair value | 0 | 0 | ||
Interest rate swaps (in accounts payable, accrued expenses and other liabilities) | 0 | 0 | ||
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 0 | 0 | ||
Contingent consideration to acquire real estate assets (in accounts payable, accrued expenses and other liabilities) | 191 | 563 | ||
Financing obligations, at fair value | 24,211 | 23,252 | ||
Total Liabilities | 24,402 | 23,815 | ||
Highwoods Properties, Inc. [Member] | ||||
Assets: | ||||
Noncontrolling Interests in the Operating Partnership | 103,948 | 124,869 | ||
Highwoods Properties, Inc. [Member] | Level 1 [Member] | ||||
Assets: | ||||
Noncontrolling Interests in the Operating Partnership | 103,948 | 124,869 | ||
Highwoods Properties, Inc. [Member] | Level 2 [Member] | ||||
Assets: | ||||
Noncontrolling Interests in the Operating Partnership | 0 | 0 | ||
Highwoods Properties, Inc. [Member] | Level 3 [Member] | ||||
Assets: | ||||
Noncontrolling Interests in the Operating Partnership | $0 | $0 | ||
[1] | Amounts recorded at historical cost on our Consolidated Balance Sheets at September 30, 2013 and December 31, 2012. |
Disclosure_About_Fair_Value_of3
Disclosure About Fair Value of Financial Instruments - Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Unrealized gains (in AOCL) | $396,000 | $482,000 | ||
Contingent Consideration to Acquire Real Estate Assets [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 384,000 | 677,000 | 563,000 | 677,000 |
Unrealized gains (in general and administrative) | -193,000 | -114,000 | -372,000 | -114,000 |
Ending balance | 191,000 | 563,000 | 191,000 | 563,000 |
Fair value of Level 3 liability | 191,000 | 563,000 | 191,000 | 563,000 |
Payout percentage (in hundredths) | 25.00% | |||
Tax Increment Financing Bond [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 14,233,000 | 15,371,000 | 14,496,000 | 14,788,000 |
Principal repayment | 0 | 0 | -562,000 | 0 |
Unrealized gains (in AOCL) | 97,000 | -101,000 | 396,000 | 482,000 |
Ending balance | 14,330,000 | 15,270,000 | 14,330,000 | 15,270,000 |
Maturity date | 20-Dec-20 | |||
Amount by which outstanding principal amount exceeds estimated fair value | 1,500,000 | |||
Change in discount rate (in hundredths) | 1.00% | |||
Fair value of Level 3 asset | 14,330,000 | 15,270,000 | 14,330,000 | 15,270,000 |
Discount rate (in hundredths) | 10.80% | |||
Tax Increment Financing Bond [Member] | Minimum [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Change in fair value of bond if discount rate changes | 400,000 | 400,000 | ||
Tax Increment Financing Bond [Member] | Maximum [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Change in fair value of bond if discount rate changes | $500,000 | $500,000 |
ShareBased_Payments_Details
Share-Based Payments (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $1,153,000 | $2,005,000 | $5,896,000 | $6,464,000 |
Total unrecognized stock-based compensation costs | $5,000,000 | $5,000,000 | ||
Weighted average remaining contractual term for recognition of unrecognized stock-based compensation costs (in years) | 2 years 4 months 25 days | |||
Highwoods Properties, Inc. [Member] | Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options granted | 168,700 | |||
Weighted average grant date fair value of each stock option granted (in dollars per option) | $6.50 | |||
Highwoods Properties, Inc. [Member] | Time-Based Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock shares granted | 86,144 | |||
Weighted average grant date fair value of each restricted stock granted (in dollars per share) | $36.64 | |||
Highwoods Properties, Inc. [Member] | Total Return-Based Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock shares granted | 65,486 | |||
Weighted average grant date fair value of each restricted stock granted (in dollars per share) | $31.73 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | Tax Increment Financing Bond [Member] | Tax Increment Financing Bond [Member] | Tax Increment Financing Bond [Member] | Tax Increment Financing Bond [Member] | Cash Flow Hedges [Member] | Cash Flow Hedges [Member] | Cash Flow Hedges [Member] | Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) Calculation [Roll Forward] | |||||||||||
Beginning balance | ($5,003) | ($12,628) | ($13,426) | ($1,599) | ($1,726) | ($1,898) | ($2,309) | ($2,543) | ($9,053) | ($10,730) | ($3,425) |
Unrealized gains/(losses) | 97 | -101 | 396 | 482 | -1,798 | -3,337 | 4,801 | -10,424 | |||
Amortization reclassified out of AOCL | 840 | 791 | 2,428 | 2,250 | |||||||
Ending balance | -5,003 | -12,628 | -13,426 | -1,502 | -1,827 | -1,502 | -1,827 | -3,501 | -11,599 | -3,501 | -11,599 |
Total accumulated other comprehensive loss | ($5,003) | ($12,628) | ($13,426) | ($1,502) | ($1,827) | ($1,502) | ($1,827) | ($3,501) | ($11,599) | ($3,501) | ($11,599) |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Discontinued operations [Abstract] | |||||
Rental and other revenues | $2,810 | $5,671 | $10,398 | $24,211 | |
Operating expenses: | |||||
Rental property and other expenses | 1,049 | 1,622 | 3,389 | 7,796 | |
Depreciation and amortization | 665 | 1,610 | 3,166 | 7,108 | |
Total operating expenses | 1,714 | 3,232 | 6,555 | 14,904 | |
Interest expense | 0 | 35 | 0 | 283 | |
Income from discontinued operations | 1,096 | 2,404 | 3,843 | 9,024 | |
Impairment of real estate assets | 0 | 0 | -2,194 | 0 | |
Net gains on disposition of discontinued operations | 37,946 | 22,936 | 52,353 | 29,455 | |
Total discontinued operations | 39,042 | 25,340 | 54,002 | 38,479 | |
Assets, held for sale [Abstract] | |||||
Land | 1,948 | 1,948 | 28,598 | ||
Buildings and tenant improvements | 18,498 | 18,498 | 132,361 | ||
Land held for development | 0 | 0 | 2,368 | ||
Less accumulated depreciation | -5,931 | -5,931 | -43,730 | ||
Net real estate assets | 14,515 | 14,515 | 119,597 | ||
Accrued straight line rents receivable | 1,187 | 1,187 | 5,759 | ||
Deferred leasing costs, net | 614 | 614 | 4,014 | ||
Prepaid expenses and other assets | 0 | 0 | 30 | ||
Real estate and other assets, net, held for sale | $16,316 | $16,316 | $129,400 | ||
Winston-Salem, NC Office Properties Disposition (9/2013) [Member] | |||||
Assets, held for sale [Abstract] | |||||
Number of office properties included in real estate and other assets, net, held for sale | 4 | 4 | 4 | ||
Atlanta, GA Industrial Properties/Land Disposition (9/2013) [Member] | |||||
Assets, held for sale [Abstract] | |||||
Number of industrial properties included in real estate and other assets, net, held for sale | 29 | ||||
Orlando, FL Office Properties Disposition (3/2013) [Member] | |||||
Assets, held for sale [Abstract] | |||||
Number of office properties included in real estate and other assets, net, held for sale | 2 |
Earnings_Per_ShareUnit_Details
Earnings Per Share/Unit (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Numerator: | ||||||||
Income from continuing operations | $17,026 | $10,456 | $45,405 | $30,147 | ||||
Net (income) attributable to noncontrolling interests in the Operating Partnership from continuing operations | -503 | -459 | -1,684 | -1,335 | ||||
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations | -203 | -159 | -593 | -566 | ||||
Dividends on Preferred Stock | -627 | -627 | -1,881 | -1,881 | ||||
Income from continuing operations available for common stockholders | 15,693 | 9,211 | 41,247 | 26,365 | ||||
Income from discontinued operations | 39,042 | 25,340 | 54,002 | 38,479 | ||||
Net (income) attributable to noncontrolling interests in the Operating Partnership from discontinued operations | -1,386 | -1,194 | -2,029 | -1,831 | ||||
Income from discontinued operations available for common stockholders | 37,656 | 24,146 | 51,973 | 36,648 | ||||
Net income available for common stockholders | 53,349 | 33,357 | 93,220 | 63,013 | ||||
Denominator: | ||||||||
Denominator for basic earnings per Common Share - weighted average shares (in shares) | 87,467,000 | [1],[2] | 76,590,000 | [1],[2] | 83,793,000 | [1],[2] | 74,703,000 | [1],[2] |
Earnings per Common Share - basic: | ||||||||
Income from continuing operations available for common stockholders (in dollars per share) | $0.18 | $0.12 | $0.49 | $0.35 | ||||
Income from discontinued operations available for common stockholders (in dollars per share) | $0.43 | $0.32 | $0.62 | $0.49 | ||||
Net income available for common stockholders (in dollars per share) | $0.61 | $0.44 | $1.11 | $0.84 | ||||
Numerator: | ||||||||
Income from continuing operations | 17,026 | 10,456 | 45,405 | 30,147 | ||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | -203 | -159 | -593 | -566 | ||||
Dividends on Preferred Stock | -627 | -627 | -1,881 | -1,881 | ||||
Income from continuing operations available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership | 16,196 | 9,670 | 42,931 | 27,700 | ||||
Income from discontinued operations available for common stockholders | 39,042 | 25,340 | 54,002 | 38,479 | ||||
Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership | 55,238 | 35,010 | 96,933 | 66,179 | ||||
Denominator: | ||||||||
Denominator for basic earnings per Common Share - weighted average shares (in shares) | 87,467,000 | [1],[2] | 76,590,000 | [1],[2] | 83,793,000 | [1],[2] | 74,703,000 | [1],[2] |
Stock options using the treasury method | 101,000 | 137,000 | 114,000 | 127,000 | ||||
Noncontrolling interests Common Units | 3,201,000 | 3,768,000 | 3,536,000 | 3,738,000 | ||||
Denominator for diluted earnings per Common Share - adjusted weighted average shares and assumed conversions (in shares) (1) | 90,769,000 | [1] | 80,495,000 | [1] | 87,443,000 | [1] | 78,568,000 | [1] |
Earnings per Common Share - diluted: | ||||||||
Income from continuing operations available for common stockholders (in dollars per share) | $0.18 | $0.12 | $0.49 | $0.35 | ||||
Income from discontinued operations available for common stockholders (in dollars per share) | $0.43 | $0.31 | $0.62 | $0.49 | ||||
Net income available for common stockholders (in dollars per share) | $0.61 | $0.43 | $1.11 | $0.84 | ||||
Earnings per Common Unit - diluted: | ||||||||
Number of anti-dilutive options and warrants not included in earnings per share (in dollars per share) | 300,000 | 500,000 | 300,000 | 500,000 | ||||
Highwoods Realty Limited Partnership [Member] | ||||||||
Numerator: | ||||||||
Income from continuing operations | 17,025 | 10,460 | 45,354 | 30,156 | ||||
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations | -203 | -159 | -593 | -566 | ||||
Distributions on Preferred Units | -627 | -627 | -1,881 | -1,881 | ||||
Income from continuing operations available for common unitholders | 16,195 | 9,674 | 42,880 | 27,709 | ||||
Income from discontinued operations available for common unitholders | 39,042 | 25,340 | 54,002 | 38,479 | ||||
Net income available for common unitholders | 55,237 | 35,014 | 96,882 | 66,188 | ||||
Denominator: | ||||||||
Denominator for basic earnings per Common Unit - weighted average units (in shares) | 90,259,000 | [2],[3] | 79,949,000 | [2],[3] | 86,920,000 | [2],[3] | 78,032,000 | [2],[3] |
Earnings per Common Unit - basic: | ||||||||
Income from continuing operations available for common unitholders (in dollars per share) | $0.18 | $0.12 | $0.49 | $0.36 | ||||
Income from discontinued operations available for common unitholders (in dollars per share) | $0.43 | $0.32 | $0.62 | $0.49 | ||||
Net income available for common unitholders (in dollars per share) | $0.61 | $0.44 | $1.11 | $0.85 | ||||
Numerator: | ||||||||
Income from continuing operations | 17,025 | 10,460 | 45,354 | 30,156 | ||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | -203 | -159 | -593 | -566 | ||||
Distributions on Preferred Units | -627 | -627 | -1,881 | -1,881 | ||||
Income from continuing operations available for common unitholders | 16,195 | 9,674 | 42,880 | 27,709 | ||||
Income from discontinued operations available for common unitholders | 39,042 | 25,340 | 54,002 | 38,479 | ||||
Net income available for common unitholders | $55,237 | $35,014 | $96,882 | $66,188 | ||||
Denominator: | ||||||||
Denominator for basic earnings per Common Unit - weighted average units (in shares) | 90,259,000 | [2],[3] | 79,949,000 | [2],[3] | 86,920,000 | [2],[3] | 78,032,000 | [2],[3] |
Stock options using the treasury method | 101,000 | 137,000 | 114,000 | 127,000 | ||||
Denominator for diluted earnings per Common Unit - adjusted weighted average units and assumed conversions (in shares) | 90,360,000 | [3] | 80,086,000 | [3] | 87,034,000 | [3] | 78,159,000 | [3] |
Earnings per Common Unit - diluted: | ||||||||
Income from continuing operations available for common unitholders (in dollars per share) | $0.18 | $0.12 | $0.49 | $0.36 | ||||
Income from discontinued operations available for common unitholders (in dollars per share) | $0.43 | $0.32 | $0.62 | $0.49 | ||||
Net income available for common unitholders (in dollars per share) | $0.61 | $0.44 | $1.11 | $0.85 | ||||
Number of anti-dilutive options and warrants not included in earnings per share (in dollars per share) | 300,000 | 500,000 | 300,000 | 500,000 | ||||
[1] | There were 0.3 million and 0.5 million options outstanding during the three months ended September 30, 2013 and 2012, respectively, and 0.3 million and 0.5 million options outstanding during the nine months ended September 30, 2013 and 2012, respectively, that were not included in the computation of diluted earnings per share because the impact of including such options would be anti-dilutive. | |||||||
[2] | Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable. | |||||||
[3] | There were 0.3 million and 0.5 million options outstanding during the three months ended September 30, 2013 and 2012, respectively, and 0.3 million and 0.5 million options outstanding during the nine months ended September 30, 2013 and 2012, respectively, that were not included in the computation of diluted earnings per unit because the impact of including such options would be anti-dilutive. |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Segment Reporting Information [Line Items] | ||||||||
Total Rental and Other Revenues | $147,294 | $123,418 | $415,961 | $368,029 | ||||
Total Net Operating Income | 91,929 | 77,514 | 264,159 | 233,927 | ||||
Reconciliation to income from continuing operations before disposition of property and condominiums and acquisition of interest in and equity in earnings of unconsolidated affiliates: | ||||||||
Depreciation and amortization | -48,124 | -37,041 | -130,390 | -110,656 | ||||
General and administrative expenses | -8,969 | -9,725 | -27,948 | -28,298 | ||||
Interest expense | -23,672 | -23,612 | -70,826 | -72,661 | ||||
Other income | 1,550 | 1,916 | 4,786 | 4,910 | ||||
Income from continuing operations before disposition of property and condominiums and acquisition of controlling interest in and equity in earnings/(losses) of unconsolidated affiliates | 12,714 | 9,052 | 39,781 | 27,222 | ||||
Total Office Segment [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total Rental and Other Revenues | 134,522 | [1] | 110,902 | [1] | 378,108 | [1] | 330,854 | [1] |
Total Net Operating Income | 83,804 | [1] | 69,521 | [1] | 239,990 | [1] | 210,450 | [1] |
Office Atlanta, GA [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total Rental and Other Revenues | 22,523 | 13,704 | 57,630 | 43,220 | ||||
Total Net Operating Income | 13,868 | 8,408 | 35,936 | 27,346 | ||||
Office Greenville, SC [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total Rental and Other Revenues | 2,699 | 3,296 | 9,056 | 10,286 | ||||
Total Net Operating Income | 1,301 | 1,806 | 4,869 | 5,986 | ||||
Office Kansas City, MO [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total Rental and Other Revenues | 4,064 | 4,014 | 12,067 | 11,173 | ||||
Total Net Operating Income | 2,597 | 2,546 | 7,796 | 7,060 | ||||
Office Memphis, TN [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total Rental and Other Revenues | 9,644 | 9,103 | 28,680 | 27,603 | ||||
Total Net Operating Income | 5,408 | 5,378 | 16,337 | 16,226 | ||||
Office Nashville, TN [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total Rental and Other Revenues | 15,147 | 14,285 | 43,411 | 42,456 | ||||
Total Net Operating Income | 10,311 | 9,772 | 30,028 | 29,247 | ||||
Office Orlando, FL [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total Rental and Other Revenues | 8,441 | 2,217 | 12,894 | 6,594 | ||||
Total Net Operating Income | 4,950 | 947 | 7,099 | 3,066 | ||||
Office Piedmont Triad, NC [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total Rental and Other Revenues | 6,792 | 5,176 | 19,932 | 14,532 | ||||
Total Net Operating Income | 4,373 | 3,095 | 12,823 | 9,103 | ||||
Office Pittsburgh, PA [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total Rental and Other Revenues | 14,191 | 9,482 | 41,835 | 27,671 | ||||
Total Net Operating Income | 8,001 | 4,949 | 23,322 | 13,851 | ||||
Office Raleigh, NC [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total Rental and Other Revenues | 21,737 | 20,578 | 64,124 | 60,737 | ||||
Total Net Operating Income | 14,920 | 13,939 | 45,226 | 42,267 | ||||
Office Richmond, VA [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total Rental and Other Revenues | 12,006 | 11,848 | 35,639 | 35,442 | ||||
Total Net Operating Income | 7,910 | 7,863 | 24,267 | 24,270 | ||||
Office Tampa, FL [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total Rental and Other Revenues | 17,278 | 17,199 | 52,840 | 51,140 | ||||
Total Net Operating Income | 10,165 | 10,818 | 32,287 | 32,028 | ||||
Total Industrial Segment [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total Rental and Other Revenues | 3,208 | [1] | 3,330 | [1] | 9,862 | [1] | 9,999 | [1] |
Total Net Operating Income | 2,309 | [1] | 2,356 | [1] | 7,158 | [1] | 7,195 | [1] |
Industrial Atlanta, GA [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total Rental and Other Revenues | 210 | 189 | 624 | 610 | ||||
Total Net Operating Income | 122 | 100 | 361 | 347 | ||||
Industrial Piedmont Triad, NC [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total Rental and Other Revenues | 2,998 | 3,141 | 9,238 | 9,389 | ||||
Total Net Operating Income | 2,187 | 2,256 | 6,797 | 6,848 | ||||
Total Retail Segment [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total Rental and Other Revenues | 9,564 | [1] | 9,186 | [1] | 27,991 | [1] | 27,176 | [1] |
Total Net Operating Income | 5,837 | [1] | 5,676 | [1] | 17,066 | [1] | 16,525 | [1] |
Retail Kansas City, MO [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total Rental and Other Revenues | 9,564 | 9,186 | 27,991 | 27,176 | ||||
Total Net Operating Income | 5,837 | 5,676 | 17,066 | 16,525 | ||||
Total Residential Segment [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total Net Operating Income | 0 | [1] | -33 | [1] | 0 | [1] | -178 | [1] |
Residential Raleigh, NC [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total Net Operating Income | 0 | -33 | 0 | -178 | ||||
Corporate and Other [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total Net Operating Income | ($21) | [1] | ($6) | [1] | ($55) | [1] | ($65) | [1] |
[1] | Net of discontinued operations. |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Oct. 02, 2013 | Oct. 24, 2013 | Oct. 28, 2013 | Oct. 02, 2013 | Oct. 03, 2013 | Sep. 30, 2013 | Oct. 02, 2013 | |
Atlanta, GA Office Property Dispositon (10/2013) [Member] | Winston-Salem, NC Office Properties Disposition (9/2013) [Member] | Winston-Salem, NC Office Property Disposition 2 (10/2013) [Member] | 5.74% to 5.89% Mortgage Loans Due 2014 [Member] | 5.45% (5.12% effective rate) Mortgage Loan due 2014 [Member] | Highwoods Properties, Inc. [Member] | Highwoods Properties, Inc. [Member] | |||||
property | loans | Board of Trade Investment Company [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||||
Percentage of equity interest in joint venture not owned by Operating Partership | 12.50% | 12.50% | |||||||||
Early repayment of debt | $32,300,000 | $67,500,000 | |||||||||
Number of debt instruments repaid | 4 | ||||||||||
Current interest rate (in hundredths) | 5.79% | 5.12% | |||||||||
Debt instrument maturity date | 1-Jan-14 | 1-Jan-14 | |||||||||
Number of office properties sold | 4 | ||||||||||
Proceeds received from sale of real estate | 13,800,000 | 6,200,000 | 5,300,000 | ||||||||
Gain/(loss) on disposition of discontinued operations | $37,946,000 | $22,936,000 | $52,353,000 | $29,455,000 | $3,000,000 | $126,000 | $2,500,000 |