Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 27, 2015 | |
Entity Information [Line Items] | ||
Entity Registrant Name | HIGHWOODS PROPERTIES INC. | |
Entity Central Index Key | 921,082 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 94,118,906 | |
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 | 941,713 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
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 ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Real estate assets, at cost: | ||
Land | $ 407,180 | $ 384,301 |
Buildings and tenant improvements | 3,991,536 | 3,807,315 |
Development in process | 104,693 | 205,971 |
Land held for development | 76,955 | 79,355 |
Total real estate assets | 4,580,364 | 4,476,942 |
Less-accumulated depreciation | (1,066,945) | (1,024,936) |
Net real estate assets | 3,513,419 | 3,452,006 |
Real estate and other assets, net, held for sale | 10,631 | 1,038 |
Cash and cash equivalents | 4,939 | 8,832 |
Restricted cash | 15,703 | 14,595 |
Accounts receivable, net of allowance of $1,487 and $1,314, respectively | 27,027 | 48,557 |
Mortgages and notes receivable, net of allowance of $410 and $275, respectively | 5,935 | 13,116 |
Accrued straight-line rents receivable, net of allowance of $1,022 and $600, respectively | 151,028 | 142,037 |
Investments in and advances to unconsolidated affiliates | 43,979 | 50,685 |
Deferred financing and leasing costs, net of accumulated amortization of $119,396 and $112,804, respectively | 223,380 | 228,768 |
Prepaid expenses and other assets, net of accumulated amortization of $15,242 and $14,259, respectively | 43,601 | 39,489 |
Total Assets | 4,039,642 | 3,999,123 |
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Liabilities, Redeemable Operating Partnership Units and Capital: | ||
Mortgages and notes payable | 2,124,028 | 2,071,389 |
Accounts payable, accrued expenses and other liabilities | 214,131 | 237,633 |
Financing obligation | 8,962 | 8,962 |
Total Liabilities | $ 2,347,121 | $ 2,317,984 |
Commitments and contingencies | ||
Noncontrolling interests in the Operating Partnership | $ 116,260 | $ 130,048 |
Equity/Capital: | ||
Preferred Stock, $.01 par value, 50,000,000 authorized shares; 8.625% Series A Cumulative Redeemable Preferred Shares (liquidation preference $1,000 per share), 29,050 and 29,060 shares issued and outstanding, respectively | 29,050 | 29,060 |
Common Stock, $.01 par value, 200,000,000 authorized shares; 94,118,006 and 92,907,310 shares issued and outstanding, respectively | 941 | 929 |
Additional paid-in capital | 2,525,227 | 2,464,275 |
Distributions in excess of net income available for common stockholders | (992,425) | (957,370) |
Accumulated other comprehensive loss | (4,514) | (3,912) |
Total Stockholders’ Equity | 1,558,279 | 1,532,982 |
Noncontrolling interests in consolidated affiliates | 17,982 | 18,109 |
Total Equity/Capital | 1,576,261 | 1,551,091 |
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Capital | 4,039,642 | 3,999,123 |
Highwoods Realty Limited Partnership [Member] | ||
Real estate assets, at cost: | ||
Land | 407,180 | 384,301 |
Buildings and tenant improvements | 3,991,536 | 3,807,315 |
Development in process | 104,693 | 205,971 |
Land held for development | 76,955 | 79,355 |
Total real estate assets | 4,580,364 | 4,476,942 |
Less-accumulated depreciation | (1,066,945) | (1,024,936) |
Net real estate assets | 3,513,419 | 3,452,006 |
Real estate and other assets, net, held for sale | 10,631 | 1,038 |
Cash and cash equivalents | 4,939 | 8,938 |
Restricted cash | 15,703 | 14,595 |
Accounts receivable, net of allowance of $1,487 and $1,314, respectively | 27,027 | 48,557 |
Mortgages and notes receivable, net of allowance of $410 and $275, respectively | 5,935 | 13,116 |
Accrued straight-line rents receivable, net of allowance of $1,022 and $600, respectively | 151,028 | 142,037 |
Investments in and advances to unconsolidated affiliates | 43,979 | 50,685 |
Deferred financing and leasing costs, net of accumulated amortization of $119,396 and $112,804, respectively | 223,380 | 228,768 |
Prepaid expenses and other assets, net of accumulated amortization of $15,242 and $14,259, respectively | 43,601 | 39,489 |
Total Assets | 4,039,642 | 3,999,229 |
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Liabilities, Redeemable Operating Partnership Units and Capital: | ||
Mortgages and notes payable | 2,124,028 | 2,071,389 |
Accounts payable, accrued expenses and other liabilities | 214,131 | 237,547 |
Financing obligation | 8,962 | 8,962 |
Total Liabilities | $ 2,347,121 | $ 2,317,898 |
Commitments and contingencies | ||
Redeemable Operating Partnership Units: | ||
Common Units, 2,910,135 and 2,936,955 outstanding, respectively | $ 116,260 | $ 130,048 |
Series A Preferred Units (liquidation preference $1,000 per unit), 29,050 and 29,060 units issued and outstanding, respectively | 29,050 | 29,060 |
Total Redeemable Operating Partnership Units | 145,310 | 159,108 |
Equity/Capital: | ||
General partner Common Units, 966,193 and 954,355 outstanding, respectively | 15,335 | 15,078 |
Limited partner Common Units, 92,743,004 and 91,544,146 outstanding, respectively | 1,518,408 | 1,492,948 |
Accumulated other comprehensive loss | (4,514) | (3,912) |
Noncontrolling interests in consolidated affiliates | 17,982 | 18,109 |
Total Equity/Capital | 1,547,211 | 1,522,223 |
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Capital | $ 4,039,642 | $ 3,999,229 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Assets: | ||
Accounts receivable allowance | $ 1,487 | $ 1,314 |
Mortgages and notes receivable allowance | 410 | 275 |
Accrued straight-line rents receivable allowance | 1,022 | 600 |
Deferred financing and leasing costs, accumulated amortization | 119,396 | 112,804 |
Prepaid expenses and other assets, accumulated amortization | $ 15,242 | $ 14,259 |
Equity/Capital: | ||
Series A Preferred Stock, dividend rate percentage (in hundredths) | 8.625% | 8.625% |
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) | 29,050 | 29,060 |
Series A Preferred Stock, shares outstanding (in shares) | 29,050 | 29,060 |
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) | 94,118,006 | 92,907,310 |
Common Stock, shares outstanding (in shares) | 94,118,006 | 92,907,310 |
Highwoods Realty Limited Partnership [Member] | ||
Assets: | ||
Accounts receivable allowance | $ 1,487 | $ 1,314 |
Mortgages and notes receivable allowance | 410 | 275 |
Accrued straight-line rents receivable allowance | 1,022 | 600 |
Deferred financing and leasing costs, accumulated amortization | 119,396 | 112,804 |
Prepaid expenses and other assets, accumulated amortization | $ 15,242 | $ 14,259 |
Redeemable Operating Partnership Units: [Abstract] | ||
Redeemable Common Units outstanding (in shares) | 2,910,135 | 2,936,955 |
Series A Preferred Units, liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 |
Series A Preferred Units, issued (in shares) | 29,050 | 29,060 |
Series A Preferred Units, outstanding (in shares) | 29,050 | 29,060 |
Common Units: [Abstract] | ||
General partners' capital account, units outstanding (in shares) | 966,193 | 954,355 |
Limited partners' capital account, units outstanding (in shares) | 92,743,004 | 91,544,146 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Rental and other revenues | $ 161,136 | $ 152,722 | $ 318,446 | $ 301,175 | |
Operating expenses: | |||||
Rental property and other expenses | 57,278 | 55,275 | 114,791 | 111,665 | |
Depreciation and amortization | 51,240 | 50,443 | 101,548 | 98,608 | |
Impairments of real estate assets | 0 | 588 | 0 | 588 | |
General and administrative | 8,892 | 8,733 | 20,329 | 19,447 | |
Total operating expenses | 117,410 | 115,039 | 236,668 | 230,308 | |
Interest expense: | |||||
Contractual | 20,857 | 20,640 | 41,299 | 41,390 | |
Amortization of deferred financing costs | 828 | 799 | 1,628 | 1,451 | |
Financing obligation | 317 | (226) | 498 | (266) | |
Total interest expense | 22,002 | 21,213 | 43,425 | 42,575 | |
Other income: | |||||
Interest and other income | 1,199 | 1,410 | 2,437 | 2,809 | |
Gains/(losses) on debt extinguishment | (220) | 18 | (220) | 18 | |
Total other income | 979 | 1,428 | 2,217 | 2,827 | |
Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates | 22,703 | 17,898 | 40,570 | 31,119 | |
Gains on disposition of property | 2,412 | 5,947 | 3,569 | 5,947 | |
Equity in earnings of unconsolidated affiliates | 1,776 | 667 | 3,587 | 638 | |
Income from continuing operations | 26,891 | 24,512 | 47,726 | 37,704 | |
Discontinued operations: | |||||
Net gains on disposition of discontinued operations | 0 | 0 | 0 | 384 | |
Total discontinued operations | 0 | 0 | 0 | 384 | |
Net income | 26,891 | 24,512 | 47,726 | 38,088 | |
Net (income) attributable to noncontrolling interests in the Operating Partnership | (782) | (742) | (1,378) | (1,140) | |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (328) | (438) | (624) | (861) | |
Dividends on Preferred Stock | (626) | (627) | (1,253) | (1,254) | |
Net income available for common stockholders | $ 25,155 | $ 22,705 | $ 44,471 | $ 34,833 | |
Earnings per Common Share – basic: | |||||
Income from continuing operations available for common stockholders (in dollars per share) | $ 0.27 | $ 0.25 | $ 0.47 | $ 0.38 | |
Income from discontinued operations available for common stockholders (in dollars per share) | 0 | 0 | 0 | 0.01 | |
Net income available for common stockholders (in dollars per share) | $ 0.27 | $ 0.25 | $ 0.47 | $ 0.39 | |
Weighted average Common Shares outstanding - basic (in shares) | 94,055 | 90,254 | 93,641 | 90,111 | |
Earnings per Common Share - diluted: | |||||
Income from continuing operations available for common stockholders (in dollars per share) | $ 0.27 | $ 0.25 | $ 0.47 | $ 0.38 | |
Income from discontinued operations available for common stockholders (in dollars per share) | 0 | 0 | 0 | 0.01 | |
Net income available for common stockholders (in dollars per share) | $ 0.27 | $ 0.25 | $ 0.47 | $ 0.39 | |
Weighted average Common Shares outstanding - diluted (in shares) | [1],[2] | 97,049 | 93,312 | 96,666 | 93,172 |
Dividends declared per Common Share (in dollars per share) | $ 0.425 | $ 0.425 | $ 0.850 | $ 0.850 | |
Net income available for common stockholders: | |||||
Income from continuing operations available for common stockholders | $ 25,155 | $ 22,705 | $ 44,471 | $ 34,461 | |
Income from discontinued operations available for common stockholders | 0 | 0 | 0 | 372 | |
Net income available for common stockholders | 25,155 | 22,705 | 44,471 | 34,833 | |
Highwoods Realty Limited Partnership [Member] | |||||
Rental and other revenues | 161,136 | 152,722 | 318,446 | 301,175 | |
Operating expenses: | |||||
Rental property and other expenses | 57,278 | 55,258 | 114,791 | 111,632 | |
Depreciation and amortization | 51,240 | 50,443 | 101,548 | 98,608 | |
Impairments of real estate assets | 0 | 588 | 0 | 588 | |
General and administrative | 8,892 | 8,750 | 20,329 | 19,480 | |
Total operating expenses | 117,410 | 115,039 | 236,668 | 230,308 | |
Interest expense: | |||||
Contractual | 20,857 | 20,640 | 41,299 | 41,390 | |
Amortization of deferred financing costs | 828 | 799 | 1,628 | 1,451 | |
Financing obligation | 317 | (226) | 498 | (266) | |
Total interest expense | 22,002 | 21,213 | 43,425 | 42,575 | |
Other income: | |||||
Interest and other income | 1,199 | 1,410 | 2,437 | 2,809 | |
Gains/(losses) on debt extinguishment | (220) | 18 | (220) | 18 | |
Total other income | 979 | 1,428 | 2,217 | 2,827 | |
Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates | 22,703 | 17,898 | 40,570 | 31,119 | |
Gains on disposition of property | 2,412 | 5,947 | 3,569 | 5,947 | |
Equity in earnings of unconsolidated affiliates | 1,776 | 667 | 3,587 | 638 | |
Income from continuing operations | 26,891 | 24,512 | 47,726 | 37,704 | |
Discontinued operations: | |||||
Net gains on disposition of discontinued operations | 0 | 0 | 0 | 384 | |
Total discontinued operations | 0 | 0 | 0 | 384 | |
Net income | 26,891 | 24,512 | 47,726 | 38,088 | |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (328) | (438) | (624) | (861) | |
Distributions on Preferred Units | (626) | (627) | (1,253) | (1,254) | |
Net income available for common unitholders | $ 25,937 | $ 23,447 | $ 45,849 | $ 35,973 | |
Earnings per Common Unit - basic: | |||||
Income from continuing operations available for common unitholders (in dollars per share) | $ 0.27 | $ 0.25 | $ 0.48 | $ 0.38 | |
Income from discontinued operations available for common unitholders (in dollars per share) | 0 | 0 | 0 | 0.01 | |
Net income available for common unitholders (in dollars per share) | $ 0.27 | $ 0.25 | $ 0.48 | $ 0.39 | |
Weighted average Common Units outstanding - basic (in shares) | 96,556 | 92,782 | 96,153 | 92,640 | |
Earnings per Common Unit - diluted: | |||||
Income from continuing operations available for common unitholders (in dollars per share) | $ 0.27 | $ 0.25 | $ 0.48 | $ 0.38 | |
Income from discontinued operations available for common unitholders (in dollars per share) | 0 | 0 | 0 | 0.01 | |
Net income available for common unitholders (in dollars per share) | $ 0.27 | $ 0.25 | $ 0.48 | $ 0.39 | |
Weighted average Common Units outstanding - diluted (in shares) | [3],[4] | 96,640 | 92,903 | 96,257 | 92,763 |
Distributions declared per Common Unit (in dollars per unit) | $ 0.425 | $ 0.425 | $ 0.850 | $ 0.850 | |
Net income available for common unitholders: | |||||
Income from continuing operations available for common unitholders | $ 25,937 | $ 23,447 | $ 45,849 | $ 35,589 | |
Income from discontinued operations available for common unitholders | 0 | 0 | 0 | 384 | |
Net income available for common unitholders | $ 25,937 | $ 23,447 | $ 45,849 | $ 35,973 | |
[1] | Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable. | ||||
[2] | There were 0.2 million options outstanding during each of the three and six months ended June 30, 2015 and the six months ended June 30, 2014 that were not included in the computation of diluted earnings per share because the impact of including such options would be anti-dilutive. There were no such options outstanding during the three months ended June 30, 2014. | ||||
[3] | Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable. | ||||
[4] | There were 0.2 million options outstanding during each of the three and six months ended June 30, 2015 and the six months ended June 30, 2014 that were not included in the computation of diluted earnings per unit because the impact of including such options would be anti-dilutive. There were no such options outstanding during the three months ended June 30, 2014. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Comprehensive income: | ||||
Net income | $ 26,891 | $ 24,512 | $ 47,726 | $ 38,088 |
Other comprehensive income/(loss): | ||||
Unrealized gains on tax increment financing bond | 1 | 105 | 194 | 270 |
Unrealized gains/(losses) on cash flow hedges | 269 | (2,846) | (2,645) | (4,250) |
Amortization of cash flow hedges | 925 | 944 | 1,849 | 1,872 |
Total other comprehensive income/(loss) | 1,195 | (1,797) | (602) | (2,108) |
Total comprehensive income | 28,086 | 22,715 | 47,124 | 35,980 |
Less-comprehensive (income) attributable to noncontrolling interests | (1,110) | (1,180) | (2,002) | (2,001) |
Comprehensive income attributable to common stockholders/Comprehensive income attributable to common unitholders | 26,976 | 21,535 | 45,122 | 33,979 |
Highwoods Realty Limited Partnership [Member] | ||||
Comprehensive income: | ||||
Net income | 26,891 | 24,512 | 47,726 | 38,088 |
Other comprehensive income/(loss): | ||||
Unrealized gains on tax increment financing bond | 1 | 105 | 194 | 270 |
Unrealized gains/(losses) on cash flow hedges | 269 | (2,846) | (2,645) | (4,250) |
Amortization of cash flow hedges | 925 | 944 | 1,849 | 1,872 |
Total other comprehensive income/(loss) | 1,195 | (1,797) | (602) | (2,108) |
Total comprehensive income | 28,086 | 22,715 | 47,124 | 35,980 |
Less-comprehensive (income) attributable to noncontrolling interests | (328) | (438) | (624) | (861) |
Comprehensive income attributable to common stockholders/Comprehensive income attributable to common unitholders | $ 27,758 | $ 22,277 | $ 46,500 | $ 35,119 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Highwoods Realty Limited Partnership [Member] | Common Stock [Member] | Series A Cumulative Redeemable Preferred Shares [Member] | General Partner Common Units [Member]Highwoods Realty Limited Partnership [Member] | Limited Partner Common Units [Member]Highwoods Realty Limited Partnership [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Other Comprehensive Income (Loss) [Member]Highwoods Realty Limited Partnership [Member] | Noncontrolling Interests in Consolidated Affiliates [Member] | Noncontrolling Interests in Consolidated Affiliates [Member]Highwoods Realty Limited Partnership [Member] | Distributions in Excess of Net Income Available for Common Stockholders [Member] |
Balance (in shares) at Dec. 31, 2013 | 89,920,915 | |||||||||||
Balance at Dec. 31, 2013 | $ 1,507,467 | $ 1,478,562 | $ 899 | $ 29,077 | $ 14,596 | $ 1,445,181 | $ 2,370,368 | $ (2,611) | $ (2,611) | $ 21,396 | $ 21,396 | $ (911,662) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Issuances of Common Units, net of issuance costs and tax withholdings | 8,712 | 87 | 8,625 | 0 | 0 | |||||||
Redemptions of Common Units | (93) | (1) | (92) | 0 | 0 | |||||||
Distributions paid on Common Units | (78,754) | (788) | (77,966) | 0 | 0 | |||||||
Distributions paid on Preferred Units | (1,254) | (13) | (1,241) | 0 | 0 | |||||||
Issuances of Common Stock - Shares | 281,992 | |||||||||||
Issuances of Common Stock, net of issuance costs and tax withholdings | 8,712 | $ 3 | 0 | 8,709 | 0 | 0 | 0 | |||||
Conversions of Common Units to Common Stock - Shares | 4,417 | |||||||||||
Conversions of Common Units to Common Stock | 162 | $ 0 | 0 | 162 | 0 | 0 | 0 | |||||
Dividends on Common Stock | (76,605) | 0 | 0 | 0 | 0 | 0 | (76,605) | |||||
Dividends on Preferred Stock | (1,254) | 0 | 0 | 0 | 0 | 0 | (1,254) | |||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | (18,337) | 0 | 0 | (18,337) | 0 | 0 | 0 | |||||
Distributions to noncontrolling interests in consolidated affiliates | (940) | (940) | $ 0 | 0 | 0 | 0 | 0 | 0 | 0 | (940) | (940) | 0 |
Issuances of restricted stock - shares | 154,383 | |||||||||||
Issuances of restricted stock | 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | |||||
Share-based compensation expense, net of forfeitures | 5,381 | 5,381 | 2 | 0 | 54 | 5,327 | 5,379 | 0 | 0 | 0 | 0 | 0 |
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner | (17,175) | (171) | (17,004) | 0 | 0 | |||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | (1,140) | 0 | 0 | 0 | 0 | 0 | (1,140) | |||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | 0 | 0 | 0 | 0 | (9) | (852) | 0 | 0 | 0 | 861 | 861 | (861) |
Comprehensive income: | ||||||||||||
Net income | 38,088 | 38,088 | 0 | 0 | 381 | 37,707 | 0 | 0 | 0 | 0 | 0 | 38,088 |
Other comprehensive loss | (2,108) | (2,108) | 0 | 0 | 0 | 0 | 0 | (2,108) | (2,108) | 0 | 0 | 0 |
Total comprehensive income | 35,980 | 35,980 | ||||||||||
Balance at Jun. 30, 2014 | $ 1,459,426 | 1,430,419 | $ 904 | 29,077 | 14,136 | 1,399,685 | 2,366,281 | (4,719) | (4,719) | 21,317 | 21,317 | (953,434) |
Balance (in shares) at Jun. 30, 2014 | 90,361,707 | |||||||||||
Balance (in shares) at Dec. 31, 2014 | 92,907,310 | 92,907,310 | ||||||||||
Balance at Dec. 31, 2014 | $ 1,551,091 | 1,522,223 | $ 929 | 29,060 | 15,078 | 1,492,948 | 2,464,275 | (3,912) | (3,912) | 18,109 | 18,109 | (957,370) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Issuances of Common Units, net of issuance costs and tax withholdings | 43,216 | 432 | 42,784 | 0 | 0 | |||||||
Distributions paid on Common Units | (81,663) | (817) | (80,846) | 0 | 0 | |||||||
Distributions paid on Preferred Units | (1,253) | (13) | (1,240) | 0 | 0 | |||||||
Issuances of Common Stock - Shares | 1,055,491 | |||||||||||
Issuances of Common Stock, net of issuance costs and tax withholdings | 43,216 | $ 11 | 0 | 43,205 | 0 | 0 | 0 | |||||
Conversions of Common Units to Common Stock - Shares | 26,820 | |||||||||||
Conversions of Common Units to Common Stock | 1,206 | $ 0 | 0 | 1,206 | 0 | 0 | 0 | |||||
Dividends on Common Stock | (79,526) | 0 | 0 | 0 | 0 | 0 | (79,526) | |||||
Dividends on Preferred Stock | (1,253) | 0 | 0 | 0 | 0 | 0 | (1,253) | |||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | 11,475 | 0 | 0 | 11,475 | 0 | 0 | 0 | |||||
Distributions to noncontrolling interests in consolidated affiliates | (751) | (751) | $ 0 | 0 | 0 | 0 | 0 | 0 | 0 | (751) | (751) | 0 |
Issuances of restricted stock - shares | 128,951 | |||||||||||
Issuances of restricted stock | 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | |||||
Redemptions/repurchases of Preferred Stock | (10) | $ 0 | (10) | 0 | 0 | 0 | 0 | |||||
Share-based compensation expense, net of forfeitures - shares | (566) | |||||||||||
Share-based compensation expense, net of forfeitures | 5,067 | 5,067 | $ 1 | 0 | 51 | 5,016 | 5,066 | 0 | 0 | 0 | 0 | 0 |
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner | 13,248 | 133 | 13,115 | 0 | 0 | |||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | (1,378) | 0 | 0 | 0 | 0 | 0 | (1,378) | |||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | 0 | 0 | 0 | 0 | (6) | (618) | 0 | 0 | 0 | 624 | 624 | (624) |
Comprehensive income: | ||||||||||||
Net income | 47,726 | 47,726 | 0 | 0 | 477 | 47,249 | 0 | 0 | 0 | 0 | 0 | 47,726 |
Other comprehensive loss | (602) | (602) | 0 | 0 | 0 | 0 | 0 | (602) | (602) | 0 | 0 | 0 |
Total comprehensive income | 47,124 | 47,124 | ||||||||||
Balance at Jun. 30, 2015 | $ 1,576,261 | $ 1,547,211 | $ 941 | $ 29,050 | $ 15,335 | $ 1,518,408 | $ 2,525,227 | $ (4,514) | $ (4,514) | $ 17,982 | $ 17,982 | $ (992,425) |
Balance (in shares) at Jun. 30, 2015 | 94,118,006 | 94,118,006 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Operating activities: | ||
Net income | $ 47,726 | $ 38,088 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 101,548 | 98,608 |
Amortization of lease incentives and acquisition-related intangible assets and liabilities | 9 | 234 |
Share-based compensation expense | 5,067 | 5,381 |
Allowance for losses on accounts and accrued straight-line rents receivable | 1,174 | 1,278 |
Accrued interest on mortgages and notes receivable | (268) | (232) |
Amortization of deferred financing costs | 1,628 | 1,451 |
Amortization of cash flow hedges | 1,849 | 1,872 |
Amortization of mortgages and notes payable fair value adjustments | 84 | (902) |
Impairments of real estate assets | 0 | 588 |
(Gains)/losses on debt extinguishment | 220 | (18) |
Net gains on disposition of property | (3,569) | (6,331) |
Equity in earnings of unconsolidated affiliates | (3,587) | (638) |
Changes in financing obligation | 162 | (628) |
Distributions of earnings from unconsolidated affiliates | 3,438 | 1,216 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 1,723 | 1,491 |
Prepaid expenses and other assets | (4,365) | (4,962) |
Accrued straight-line rents receivable | (11,417) | (10,365) |
Accounts payable, accrued expenses and other liabilities | (19,127) | (11,597) |
Net cash provided by operating activities | 122,295 | 114,534 |
Investing activities: | ||
Investments in acquired real estate and related intangible assets, net of cash acquired | (4,277) | 0 |
Investments in development in process | (44,601) | (69,928) |
Investments in tenant improvements and deferred leasing costs | (61,282) | (54,794) |
Investments in building improvements | (23,513) | (28,877) |
Net proceeds from disposition of real estate assets | 6,070 | 8,975 |
Distributions of capital from unconsolidated affiliates | 10,077 | 468 |
Investments in mortgages and notes receivable | (1,772) | (234) |
Repayments of mortgages and notes receivable | 9,221 | 16,817 |
Investments in and advances to unconsolidated affiliates | 0 | (6,225) |
Changes in restricted cash and other investing activities | (6,741) | 686 |
Net cash used in investing activities | (116,818) | (133,112) |
Financing activities: | ||
Dividends on Common Stock | (79,526) | (76,605) |
Redemptions/repurchases of Preferred Stock | (10) | 0 |
Redemptions of Common Units | 0 | (93) |
Dividends on Preferred Stock | (1,253) | (1,254) |
Distributions to noncontrolling interests in the Operating Partnership | (2,485) | (2,497) |
Distributions to noncontrolling interests in consolidated affiliates | (751) | (940) |
Proceeds from the issuance of Common Stock | 47,678 | 11,404 |
Costs paid for the issuance of Common Stock | (735) | (42) |
Repurchase of shares related to tax withholdings | (3,727) | (2,650) |
Borrowings on revolving credit facility | 183,900 | 302,100 |
Repayments of revolving credit facility | (233,900) | (360,800) |
Borrowings on mortgages and notes payable | 125,000 | 296,949 |
Repayments of mortgages and notes payable | (41,887) | (134,648) |
Payments on financing obligation | (162) | (1,364) |
Additions to deferred financing costs and other financing activities | (1,512) | (2,467) |
Net cash provided by/(used in) financing activities | (9,370) | 27,093 |
Net increase/(decrease) in cash and cash equivalents | (3,893) | 8,515 |
Cash and cash equivalents at beginning of the period | 8,832 | 10,184 |
Cash and cash equivalents at end of the period | 4,939 | 18,699 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest, net of amounts capitalized | 40,540 | 41,468 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Unrealized losses on cash flow hedges | (2,645) | (4,250) |
Conversions of Common Units to Common Stock | 1,206 | 162 |
Changes in accrued capital expenditures | (3,250) | 10,726 |
Write-off of fully depreciated real estate assets | 31,011 | 16,994 |
Write-off of fully amortized deferred financing and leasing costs | 17,812 | 13,273 |
Adjustment of noncontrolling interests in the Operating Partnership to fair value | (11,475) | 18,337 |
Unrealized gains on tax increment financing bond | 194 | 270 |
Assumption of mortgages and notes payable related to acquisition activities | 19,277 | 0 |
Receivable related to redemption of investment in unconsolidated affiliate | 0 | 4,660 |
Reduction in the carrying amount of real estate purchased from unconsolidated affiliate by our share of the unconsolidated affiliate's gain | 3,124 | 0 |
Contingent consideration in connection with the acquisition of land | 900 | 0 |
Highwoods Realty Limited Partnership [Member] | ||
Operating activities: | ||
Net income | 47,726 | 38,088 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 101,548 | 98,608 |
Amortization of lease incentives and acquisition-related intangible assets and liabilities | 9 | 234 |
Share-based compensation expense | 5,067 | 5,381 |
Allowance for losses on accounts and accrued straight-line rents receivable | 1,174 | 1,278 |
Accrued interest on mortgages and notes receivable | (268) | (232) |
Amortization of deferred financing costs | 1,628 | 1,451 |
Amortization of cash flow hedges | 1,849 | 1,872 |
Amortization of mortgages and notes payable fair value adjustments | 84 | (902) |
Impairments of real estate assets | 0 | 588 |
(Gains)/losses on debt extinguishment | 220 | (18) |
Net gains on disposition of property | (3,569) | (6,331) |
Equity in earnings of unconsolidated affiliates | (3,587) | (638) |
Changes in financing obligation | 162 | (628) |
Distributions of earnings from unconsolidated affiliates | 3,438 | 1,216 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 1,723 | 1,491 |
Prepaid expenses and other assets | (4,365) | (4,892) |
Accrued straight-line rents receivable | (11,417) | (10,365) |
Accounts payable, accrued expenses and other liabilities | (19,041) | (11,568) |
Net cash provided by operating activities | 122,381 | 114,633 |
Investing activities: | ||
Investments in acquired real estate and related intangible assets, net of cash acquired | (4,277) | 0 |
Investments in development in process | (44,601) | (69,928) |
Investments in tenant improvements and deferred leasing costs | (61,282) | (54,794) |
Investments in building improvements | (23,513) | (28,877) |
Net proceeds from disposition of real estate assets | 6,070 | 8,975 |
Distributions of capital from unconsolidated affiliates | 10,077 | 468 |
Investments in mortgages and notes receivable | (1,772) | (234) |
Repayments of mortgages and notes receivable | 9,221 | 16,817 |
Investments in and advances to unconsolidated affiliates | 0 | (6,225) |
Changes in restricted cash and other investing activities | (6,741) | 686 |
Net cash used in investing activities | (116,818) | (133,112) |
Financing activities: | ||
Distributions on Common Units | (81,663) | (78,754) |
Redemptions/repurchases of Preferred Units | (10) | 0 |
Redemptions of Common Units | 0 | (93) |
Distributions on Preferred Units | (1,253) | (1,254) |
Distributions to noncontrolling interests in consolidated affiliates | (751) | (940) |
Proceeds from the issuance of Common Units | 47,678 | 11,404 |
Costs paid for the issuance of Common Units | (735) | (42) |
Repurchase of units related to tax withholdings | (3,727) | (2,650) |
Borrowings on revolving credit facility | 183,900 | 302,100 |
Repayments of revolving credit facility | (233,900) | (360,800) |
Borrowings on mortgages and notes payable | 125,000 | 296,949 |
Repayments of mortgages and notes payable | (41,887) | (134,648) |
Payments on financing obligation | (162) | (1,364) |
Additions to deferred financing costs and other financing activities | (2,052) | (2,917) |
Net cash provided by/(used in) financing activities | (9,562) | 26,991 |
Net increase/(decrease) in cash and cash equivalents | (3,999) | 8,512 |
Cash and cash equivalents at beginning of the period | 8,938 | 10,281 |
Cash and cash equivalents at end of the period | 4,939 | 18,793 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest, net of amounts capitalized | 40,540 | 41,468 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Unrealized losses on cash flow hedges | (2,645) | (4,250) |
Changes in accrued capital expenditures | (3,250) | 10,726 |
Write-off of fully depreciated real estate assets | 31,011 | 16,994 |
Write-off of fully amortized deferred financing and leasing costs | 17,812 | 13,273 |
Adjustment of Redeemable Common Units to fair value | (13,788) | 16,725 |
Unrealized gains on tax increment financing bond | 194 | 270 |
Assumption of mortgages and notes payable related to acquisition activities | 19,277 | 0 |
Receivable related to redemption of investment in unconsolidated affiliate | 0 | 4,660 |
Reduction in the carrying amount of real estate purchased from unconsolidated affiliate by our share of the unconsolidated affiliate's gain | 3,124 | 0 |
Contingent consideration in connection with the acquisition of land | $ 900 | $ 0 |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
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 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 its activities through Highwoods Realty Limited Partnership (the “Operating Partnership”). At June 30, 2015 , we owned or had an interest in 31.4 million rentable square feet of in-service properties, 0.9 million rentable square feet of properties under development and approximately 500 acres of development land. The Company is the sole general partner of the Operating Partnership. At June 30, 2015 , the Company owned all of the Preferred Units and 93.7 million , or 97.0% , of the Common Units in the Operating Partnership. Limited partners own the remaining 2.9 million Common Units. During the six months ended June 30, 2015 , the Company redeemed 26,820 Common Units for a like number of shares of Common Stock. Common Stock Offerings During the three and six months ended June 30, 2015 , the Company issued 58,533 and 972,659 shares, respectively, of Common Stock under its equity sales agreements at an average gross sales price of $41.72 and $45.12 per share, respectively, and received net proceeds, after sales commissions, of $2.4 million and $43.2 million , respectively. As a result of this activity and the redemptions discussed above, the percentage of Common Units owned by the Company increased from 96.9% at December 31, 2014 to 97.0% at June 30, 2015 . Basis of Presentation Our Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). 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 December 31, 2014 , we had involvement with, but were not the primary beneficiary in, an entity that we concluded to be a variable interest entity (see Note 3). During the second quarter of 2015, as a result of our partner’s irrevocable exercise of a buy-sell provision in one of our joint venture agreements, our partner’s right to put its 80.0% equity interest back to us became no longer exercisable. As a result, we recorded the original contribution transaction as a partial sale and recognized $2.2 million of gain. Our investment in this joint venture now qualifies for the equity method of accounting, which resulted in the retrospective revision of the Consolidated Balance Sheets and Consolidated Statements of Equity and Capital for all prior periods presented. The effects of the retrospective application of the equity method of accounting to the Consolidated Statements of Income, Comprehensive Income and Cash Flows were not material. The effects of the retrospective application of the equity method of accounting to the Company's December 31, 2014 Balance Sheet were as follows: December 31, Previously Reported As Revised Net real estate assets $ 3,481,406 $ 3,452,006 Investments in and advances to unconsolidated affiliates $ 27,071 $ 50,685 Total Assets $ 4,004,909 $ 3,999,123 Financing obligations $ 23,519 $ 8,962 Distributions in excess of net income available for common stockholders $ (966,141 ) $ (957,370 ) Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity $ 4,004,909 $ 3,999,123 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 condensed or 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 2014 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. Recently Issued Accounting Standards The Financial Accounting Standards Board ("FASB") recently issued an accounting standards update that requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that we identify the contract with the customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when we satisfy the performance obligations. We will also be required to disclose information regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The accounting standards update is required to be adopted in 2017. Retrospective application is required either to all periods presented or with the cumulative effect of initial adoption recognized in the period of adoption. We are in the process of evaluating this accounting standards update. The FASB recently issued an accounting standards update that amends consolidation requirements. The amendments significantly change the consolidation analysis required under GAAP and will require companies to reevaluate all previous consolidation conclusions. The accounting standards update is required to be adopted in 2016. We are in the process of evaluating this accounting standards update. The FASB recently issued an accounting standards update that requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The accounting standards update is required to be adopted in 2016. Retrospective application is required. We are in the process of evaluating this accounting standards update. |
Real Estate Assets
Real Estate Assets | 6 Months Ended |
Jun. 30, 2015 | |
Real Estate [Abstract] | |
Real Estate Assets | Real Estate Assets Acquisitions During the second quarter of 2015, we acquired: • land in Atlanta, GA for a purchase price and related transaction costs of $5.2 million (including contingent consideration of $0.9 million ); and • our Highwoods DLF 98/29, LLC joint venture partner’s 77.2% interest in a building in Orlando, FL encompassing 168,000 rentable square feet in exchange for the assumption of secured debt recorded at fair value of $19.3 million (see Note 6). We expensed $0.1 million of acquisition costs (included in general and administrative expenses) related to this acquisition. 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. Dispositions During the second quarter of 2015, we sold land for a sale price of $0.5 million and recorded a gain on disposition of property of $0.2 million . During the first quarter of 2015, we sold: • two buildings for an aggregate sale price of $3.5 million and recorded aggregate gains on disposition of property of $0.4 million ; and • land for a sale price of $2.5 million and recorded a gain on disposition of property of $0.8 million . |
Mortgages and Notes Receivable
Mortgages and Notes Receivable | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Mortgages and Notes Receivable | Mortgages and Notes Receivable Mortgages and notes receivable were $5.9 million and $13.1 million at June 30, 2015 and December 31, 2014 , respectively, and consisted primarily of secured financing provided to a third party. During the second quarter of 2015, $9.9 million of secured acquisition financing provided to a third party in 2012 was repaid, including accrued interest. Previously, we concluded this arrangement to be an interest in a variable interest entity. However, since we did not have the power to direct matters that most significantly impact the activities of the entity, we did not qualify as the primary beneficiary. Accordingly, the entity was not consolidated. Our risk of loss with respect to this arrangement was limited to the carrying value of the mortgage receivable. 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 June 30, 2015 , our mortgages and notes receivable were not in default and there were no other indicators of impairment. |
Investments In and Advances To
Investments In and Advances To Unconsolidated Affiliates | 6 Months Ended |
Jun. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments In and Advances To Unconsolidated Affiliates | Investments in and Advances to 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 the summarized income statements of our unconsolidated affiliates: Three Months Ended Six Months Ended 2015 2014 2015 2014 Income Statements: Rental and other revenues $ 12,423 $ 12,845 $ 24,654 $ 25,278 Expenses: Rental property and other expenses 6,031 6,236 11,698 12,439 Depreciation and amortization 3,110 3,328 6,225 6,817 Interest expense 2,032 2,301 4,181 4,512 Total expenses 11,173 11,865 22,104 23,768 Income before disposition of property 1,250 980 2,550 1,510 Gains on disposition of property 16,054 — 18,181 1,949 Net income $ 17,304 $ 980 $ 20,731 $ 3,459 We have a 20.0% interest in SF-HIW Harborview Plaza, LP (“Harborview”). We are the manager and leasing agent for Harborview’s property in Tampa, FL and receive customary management and leasing fees. During 2012, we also provided a three -year $20.8 million interest-only secured loan to Harborview that is scheduled to mature in September 2015 . The loan bears interest at LIBOR plus 500 basis points, subject to a LIBOR floor of 0.5% . Previously, we accounted for the original contribution transaction as a financing obligation since our partner had the right to put its 80.0% equity interest back to us any time during the one-year period prior to September 11, 2015. During the second quarter of 2015, as a result of our partner’s irrevocable exercise of a buy-sell provision in our joint venture agreement, our partner’s right to put its 80.0% equity interest back to us became no longer exercisable, which resulted in recording the original contribution transaction as a partial sale. Harborview is now accounted for using the equity method of accounting. See Note 1. See Note 2 for a description of our acquisition of a building in Orlando, FL from Highwoods DLF 98/29, LLC during the second quarter of 2015. The joint venture recorded a gain on disposition of property of $13.7 million . Our share of $3.1 million was recorded as a reduction to real estate assets. During the second quarter of 2015, Highwoods KC Glenridge Office, LLC and Highwoods KC Glenridge Land, LLC collectively sold two buildings and land to an unrelated third party for an aggregate sale price of $24.5 million (before closing credits to buyer of $0.3 million for unfunded tenant improvements) and recorded gains on disposition of property of $2.4 million . We recorded $0.9 million as our share of these gains through equity in earnings of unconsolidated affiliates. During the first quarter of 2015, Highwoods DLF 97/26 DLF 99/32, LP sold a building to an unrelated third party for a sale price of $7.0 million and recorded a gain on disposition of property of $2.1 million . We recorded $1.1 million as our share of this gain through equity in earnings of unconsolidated affiliates. |
Intangible Assets and Below Mar
Intangible Assets and Below Market Lease Liabilities | 6 Months Ended |
Jun. 30, 2015 | |
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: June 30, December 31, Assets: Deferred financing costs $ 19,508 $ 19,478 Less accumulated amortization (8,093 ) (7,953 ) 11,415 11,525 Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets) 323,268 322,094 Less accumulated amortization (111,303 ) (104,851 ) 211,965 217,243 Deferred financing and leasing costs, net $ 223,380 $ 228,768 Liabilities (in accounts payable, accrued expenses and other liabilities): Acquisition-related below market lease liabilities $ 55,166 $ 55,783 Less accumulated amortization (16,300 ) (13,548 ) $ 38,866 $ 42,235 The following table sets forth amortization of intangible assets and below market lease liabilities: Three Months Ended Six Months Ended 2015 2014 2015 2014 Amortization of deferred financing costs $ 828 $ 799 $ 1,628 $ 1,451 Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization) $ 10,169 $ 10,050 $ 20,462 $ 19,978 Amortization of lease incentives (in rental and other revenues) $ 422 $ 399 $ 784 $ 750 Amortization of acquisition-related intangible assets (in rental and other revenues) $ 1,189 $ 1,114 $ 2,355 $ 2,230 Amortization of acquisition-related intangible assets (in rental property and other expenses) $ 139 $ 139 $ 276 $ 276 Amortization of acquisition-related below market lease liabilities (in rental and other revenues) $ (1,674 ) $ (1,500 ) $ (3,406 ) $ (3,022 ) 5. Intangible Assets and Below Market Lease Liabilities - Continued 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) July 1 through December 31, 2015 $ 1,643 $ 20,519 $ 706 $ 2,213 $ 273 $ (3,098 ) 2016 3,035 35,511 1,238 3,294 553 (5,555 ) 2017 2,720 30,630 1,121 2,294 553 (5,284 ) 2018 1,538 26,145 1,015 1,474 553 (5,123 ) 2019 1,130 21,716 822 1,054 553 (4,810 ) Thereafter 1,349 53,743 2,582 2,870 533 (14,996 ) $ 11,415 $ 188,264 $ 7,484 $ 13,199 $ 3,018 $ (38,866 ) Weighted average remaining amortization periods as of June 30, 2015 (in years) 4.3 7.0 7.9 6.1 5.5 7.8 The following table sets forth the intangible assets acquired and below market lease liabilities assumed as a result of 2015 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 $ 498 $ 1,671 $ (37 ) Weighted average remaining amortization periods as of June 30, 2015 (in years) 2.1 2.3 4.8 |
Mortgages and Notes Payable
Mortgages and Notes Payable | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Mortgages and Notes Payable | Mortgages and Notes Payable The following table sets forth our mortgages and notes payable: June 30, December 31, Secured indebtedness $ 290,101 $ 312,868 Unsecured indebtedness 1,833,927 1,758,521 Total mortgages and notes payable $ 2,124,028 $ 2,071,389 At June 30, 2015 , our secured mortgage loans were collateralized by real estate assets with an aggregate undepreciated book value of $ 545.5 million . 6. Mortgages and Notes Payable - Continued Our $ 475.0 million unsecured revolving credit facility is scheduled to mature in January 2018 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 two additional six-month periods. The interest rate at our current credit ratings is LIBOR plus 110 basis points and the annual facility fee is 20 basis points. There was $ 159.0 million and $ 158.0 million outstanding under our revolving credit facility at June 30, 2015 and July 27, 2015 , respectively. At both June 30, 2015 and July 27, 2015 , we had $ 0.4 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 June 30, 2015 and July 27, 2015 was $ 315.6 million and $ 316.6 million , respectively. During the second quarter of 2015, we amended our $225.0 million , seven-year unsecured bank term loan, which was scheduled to mature in January 2019 . We increased the borrowed amount to $350.0 million . The amended term loan is now scheduled to mature in June 2020 and the interest rate, based on our current credit ratings, was reduced from LIBOR plus 175 basis points to LIBOR plus 110 basis points. The interest rate is based on the higher of the publicly announced ratings from Moody’s Investors Service or Standard & Poor’s Ratings Services. The financial and other covenants under the amended term loan are unchanged. We incurred $1.3 million of deferred financing fees in connection with this amendment, which will be amortized along with existing unamortized deferred loan fees over the remaining term of the new loan. During the second quarter of 2015, we prepaid without penalty the remaining $39.4 million balance on a secured mortgage loan with an effective interest rate of 6.43% that was originally scheduled to mature in November 2015 . We recorded $0.2 million of loss on debt extinguishment related to this prepayment. During the second quarter of 2015, we acquired our joint venture partner’s 77.2% interest in a building in Orlando, FL. Simultaneously with this acquisition, the joint venture's previously existing mortgage note was restructured into a new $18.0 million first mortgage note and a $10.2 million subordinated note, both of which are scheduled to mature in July 2017 . The first mortgage note is interest only with an effective interest rate of 5.36% , payable monthly. The subordinated note has an effective interest rate of 8.6% . Additionally, we deposited $3.0 million into escrow to fund tenant improvements, leasing commissions and building improvements. The first mortgage note and subordinated note can be prepaid at any time commencing October 2016 upon a sale or refinancing of the property. In such event, the subordinated note and any and all accrued interest thereon would be deemed fully satisfied upon payment of a "waterfall payment," if any. Such "waterfall payment" would be a cash payment equal to 50.0% of the amount, if any, by which the net sale proceeds or appraised value in the event of a refinancing exceeds (1) the outstanding principal of the first mortgage note, (2) the funds deposited by us into escrow to fund tenant improvements, leasing commissions and building improvements and (3) a 10.0% return on such funds deposited by us into escrow. As of June 30, 2015, the fair value of the first mortgage note was $18.3 million and the fair value of the subordinated note equaled the projected waterfall payment of $1.0 million . We are currently in compliance with financial covenants and other requirements with respect to our consolidated debt. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2015 | |
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/(loss) 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 six months ended June 30, 2015 and 2014 . 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 July 1, 2015 through June 30, 2016, we estimate that $2.9 million will be reclassified to interest expense. 7. Derivative Financial Instruments - Continued The following table sets forth the fair value of our derivatives: June 30, December 31, Derivatives: Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities: Interest rate swaps $ 3,366 $ 2,412 The following table sets forth the effect of our cash flow hedges on AOCL and interest expense: Three Months Ended Six Months Ended 2015 2014 2015 2014 Derivatives Designated as Cash Flow Hedges: Amount of unrealized gains/(losses) recognized in AOCL on derivatives (effective portion): Interest rate swaps $ 269 $ (2,846 ) $ (2,645 ) $ (4,250 ) Amount of losses reclassified out of AOCL into contractual interest expense (effective portion): Interest rate swaps $ 925 $ 944 $ 1,849 $ 1,872 |
Noncontrolling Interests
Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2015 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests Noncontrolling Interests in Consolidated Affiliates At June 30, 2015 , our noncontrolling interests in consolidated affiliates relate to our joint venture partner's 50.0% interest in office properties 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: Six Months Ended 2015 2014 Beginning noncontrolling interests in the Operating Partnership $ 130,048 $ 106,480 Adjustment of noncontrolling interests in the Operating Partnership to fair value (11,475 ) 18,337 Conversions of Common Units to Common Stock (1,206 ) (162 ) Redemptions of Common Units — (93 ) Net income attributable to noncontrolling interests in the Operating Partnership 1,378 1,140 Distributions to noncontrolling interests in the Operating Partnership (2,485 ) (2,497 ) Total noncontrolling interests in the Operating Partnership $ 116,260 $ 123,205 8. Noncontrolling Interests - Continued 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 Six Months Ended 2015 2014 2015 2014 Net income available for common stockholders $ 25,155 $ 22,705 $ 44,471 $ 34,833 Increase in additional paid in capital from conversions of Common Units — — 1,206 162 Change from net income available for common stockholders and transfers from noncontrolling interests $ 25,155 $ 22,705 $ 45,677 $ 34,995 |
Disclosure About Fair Value of
Disclosure About Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2015 | |
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 asset is our investment 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. Our Level 2 liabilities include the fair value of our mortgages and notes payable and interest rate swaps. The fair value of mortgages and notes receivable and mortgages and notes payable is 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. The fair value of interest rate swaps 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 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, and (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. Our Level 3 liability is the fair value of our financing obligation, which was 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 in Active Markets for Identical Assets or Liabilities Significant Observable Inputs Significant Unobservable Inputs Fair Value at June 30, 2015: Assets: Mortgages and notes receivable, at fair value (1) $ 5,943 $ — $ 2,167 $ 3,776 Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 3,512 3,512 — — Tax increment financing bond (in prepaid expenses and other assets) 12,641 — — 12,641 Total Assets $ 22,096 $ 3,512 $ 2,167 $ 16,417 Noncontrolling Interests in the Operating Partnership $ 116,260 $ 116,260 $ — $ — Liabilities: Mortgages and notes payable, at fair value (1) $ 2,178,032 $ — $ 2,178,032 $ — Interest rate swaps (in accounts payable, accrued expenses and other liabilities) 3,366 — 3,366 — Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 3,512 3,512 — — Financing obligation, at fair value (1) 8,700 — — 8,700 Total Liabilities $ 2,193,610 $ 3,512 $ 2,181,398 $ 8,700 Fair Value at December 31, 2014: Assets: Mortgages and notes receivable, at fair value (1) $ 13,142 $ — $ 2,247 $ 10,895 Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 3,635 3,635 — — Tax increment financing bond (in prepaid expenses and other assets) 12,447 — — 12,447 Total Assets $ 29,224 $ 3,635 $ 2,247 $ 23,342 Noncontrolling Interests in the Operating Partnership $ 130,048 $ 130,048 $ — $ — Liabilities: Mortgages and notes payable, at fair value (1) $ 2,141,334 $ — $ 2,141,334 $ — Interest rate swaps (in accounts payable, accrued expenses and other liabilities) 2,412 — 2,412 — Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 3,635 3,635 — — Financing obligation, at fair value (as revised) (1) 8,623 — — 8,623 Total Liabilities (as revised) $ 2,156,004 $ 3,635 $ 2,143,746 $ 8,623 __________ (1) Amounts recorded at historical cost on our Consolidated Balance Sheets at June 30, 2015 and December 31, 2014 . 9. Disclosure About Fair Value of Financial Instruments - Continued The following table sets forth the changes in our Level 3 asset, which is recorded at fair value on our Consolidated Balance Sheets: Three Months Ended Six Months Ended 2015 2014 2015 2014 Asset: Tax Increment Financing Bond: Beginning balance $ 12,640 $ 13,568 $ 12,447 $ 13,403 Unrealized gains (in AOCL) 1 105 194 270 Ending balance $ 12,641 $ 13,673 $ 12,641 $ 13,673 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 June 30, 2015 was $0.2 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 $0.3 million lower or $0.4 million higher, respectively, as of June 30, 2015 . 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 six months ended June 30, 2015 and 2014 . 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 input of our Level 3 asset, which is recorded at fair value on our Consolidated Balance Sheets: Valuation Technique Unobservable Input Rate as of June 30, December 31, Asset: Tax increment financing bond Income approach Discount rate 8.1% 8.4% |
Share-Based Payments
Share-Based Payments | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Payments | Share-Based Payments During the six months ended June 30, 2015 , the Company granted 197,408 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 $ 6.19 . During the six months ended June 30, 2015 , the Company also granted 71,994 shares of time-based restricted stock and 56,957 shares of total return-based restricted stock with weighted average grant date fair values per share of $ 45.91 and $ 43.77 , respectively. We recorded share-based compensation expense of $1.2 million and $1.1 million during the three months ended June 30, 2015 and 2014 , respectively, and $ 5.1 million and $ 5.4 million during the six months ended June 30, 2015 and 2014 , respectively. At June 30, 2015 , there was $6.7 million of total unrecognized share-based compensation costs, which will be recognized over a weighted average remaining contractual term of 2.6 years. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2015 | |
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 Six Months Ended 2015 2014 2015 2014 Tax increment financing bond: Beginning balance $ (252 ) $ (864 ) $ (445 ) $ (1,029 ) Unrealized gains on tax increment financing bond 1 105 194 270 Ending balance (251 ) (759 ) (251 ) (759 ) Cash flow hedges: Beginning balance (5,457 ) (2,058 ) (3,467 ) (1,582 ) Unrealized gains/(losses) on cash flow hedges 269 (2,846 ) (2,645 ) (4,250 ) Amortization of cash flow hedges (1) 925 944 1,849 1,872 Ending balance (4,263 ) (3,960 ) (4,263 ) (3,960 ) Total accumulated other comprehensive loss $ (4,514 ) $ (4,719 ) $ (4,514 ) $ (4,719 ) __________ (1) Amounts reclassified out of AOCL into contractual interest expense. |
Real Estate and Other Assets He
Real Estate and Other Assets Held For Sale | 6 Months Ended |
Jun. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Real Estate and Other Assets Held For Sale | Real Estate and Other Assets Held For Sale The following table sets forth the major classes of assets of our real estate and other assets, net, held for sale: June 30, December 31, Assets: Land $ 1,450 $ — Buildings and tenant improvements 11,576 — Land held for development 2,184 995 Less-accumulated depreciation (5,062 ) — Net real estate assets 10,148 995 Accrued straight-line rents receivable, net 335 — Deferred leasing costs, net 128 — Prepaid expenses and other assets 20 43 Real estate and other assets, net, held for sale $ 10,631 $ 1,038 |
Earnings Per Share and Per Unit
Earnings Per Share and Per Unit | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share and Per 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 Six Months Ended 2015 2014 2015 2014 Earnings per Common Share - basic: Numerator: Income from continuing operations $ 26,891 $ 24,512 $ 47,726 $ 37,704 Net (income) attributable to noncontrolling interests in the Operating Partnership from continuing operations (782 ) (742 ) (1,378 ) (1,128 ) Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations (328 ) (438 ) (624 ) (861 ) Dividends on Preferred Stock (626 ) (627 ) (1,253 ) (1,254 ) Income from continuing operations available for common stockholders 25,155 22,705 44,471 34,461 Income from discontinued operations — — — 384 Net (income) attributable to noncontrolling interests in the Operating Partnership from discontinued operations — — — (12 ) Income from discontinued operations available for common stockholders — — — 372 Net income available for common stockholders $ 25,155 $ 22,705 $ 44,471 $ 34,833 Denominator: Denominator for basic earnings per Common Share – weighted average shares 94,055 90,254 93,641 90,111 Earnings per Common Share - basic: Income from continuing operations available for common stockholders $ 0.27 $ 0.25 $ 0.47 $ 0.38 Income from discontinued operations available for common stockholders — — — 0.01 Net income available for common stockholders $ 0.27 $ 0.25 $ 0.47 $ 0.39 Earnings per Common Share - diluted: Numerator: Income from continuing operations $ 26,891 $ 24,512 $ 47,726 $ 37,704 Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations (328 ) (438 ) (624 ) (861 ) Dividends on Preferred Stock (626 ) (627 ) (1,253 ) (1,254 ) Income from continuing operations available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership 25,937 23,447 45,849 35,589 Income from discontinued operations available for common stockholders — — — 384 Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership $ 25,937 $ 23,447 $ 45,849 $ 35,973 Denominator: Denominator for basic earnings per Common Share – weighted average shares 94,055 90,254 93,641 90,111 Add: Stock options using the treasury method 84 121 104 123 Noncontrolling interests Common Units 2,910 2,937 2,921 2,938 Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions (1) (2) 97,049 93,312 96,666 93,172 Earnings per Common Share - diluted: Income from continuing operations available for common stockholders $ 0.27 $ 0.25 $ 0.47 $ 0.38 Income from discontinued operations available for common stockholders — — — 0.01 Net income available for common stockholders $ 0.27 $ 0.25 $ 0.47 $ 0.39 __________ 13. Earnings Per Share and Per Unit - Continued (1) There were 0.2 million options outstanding during each of the three and six months ended June 30, 2015 and the six months ended June 30, 2014 that were not included in the computation of diluted earnings per share because the impact of including such options would be anti-dilutive. There were no such options outstanding during the three months ended June 30, 2014. (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 Six Months Ended 2015 2014 2015 2014 Earnings per Common Unit - basic: Numerator: Income from continuing operations $ 26,891 $ 24,512 $ 47,726 $ 37,704 Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations (328 ) (438 ) (624 ) (861 ) Distributions on Preferred Units (626 ) (627 ) (1,253 ) (1,254 ) Income from continuing operations available for common unitholders 25,937 23,447 45,849 35,589 Income from discontinued operations available for common unitholders — — — 384 Net income available for common unitholders $ 25,937 $ 23,447 $ 45,849 $ 35,973 Denominator: Denominator for basic earnings per Common Unit – weighted average units 96,556 92,782 96,153 92,640 Earnings per Common Unit - basic: Income from continuing operations available for common unitholders $ 0.27 $ 0.25 $ 0.48 $ 0.38 Income from discontinued operations available for common unitholders — — — 0.01 Net income available for common unitholders $ 0.27 $ 0.25 $ 0.48 $ 0.39 Earnings per Common Unit - diluted: Numerator: Income from continuing operations $ 26,891 $ 24,512 $ 47,726 $ 37,704 Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations (328 ) (438 ) (624 ) (861 ) Distributions on Preferred Units (626 ) (627 ) (1,253 ) (1,254 ) Income from continuing operations available for common unitholders 25,937 23,447 45,849 35,589 Income from discontinued operations available for common unitholders — — — 384 Net income available for common unitholders $ 25,937 $ 23,447 $ 45,849 $ 35,973 Denominator: Denominator for basic earnings per Common Unit – weighted average units 96,556 92,782 96,153 92,640 Add: Stock options using the treasury method 84 121 104 123 Denominator for diluted earnings per Common Unit – adjusted weighted average units and assumed conversions (1) (2) 96,640 92,903 96,257 92,763 Earnings per Common Unit - diluted: Income from continuing operations available for common unitholders $ 0.27 $ 0.25 $ 0.48 $ 0.38 Income from discontinued operations available for common unitholders — — — 0.01 Net income available for common unitholders $ 0.27 $ 0.25 $ 0.48 $ 0.39 __________ (1) There were 0.2 million options outstanding during each of the three and six months ended June 30, 2015 and the six months ended June 30, 2014 that were not included in the computation of diluted earnings per unit because the impact of including such options would be anti-dilutive . There were no such options outstanding during the three months ended June 30, 2014. (2) Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2015 | |
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 used by our chief operating decision maker which is defined as rental and other revenues less rental property and other expenses, for each of our reportable segments. Our segment information for the three and six months ended June 30, 2014 has been retrospectively revised from previously reported amounts to reflect a change in our reportable segments. Three Months Ended Six Months Ended 2015 2014 2015 2014 Rental and Other Revenues: Office: Atlanta, GA $ 25,611 $ 23,627 $ 50,393 $ 46,604 Greensboro, NC 5,398 6,580 10,838 13,030 Greenville, SC — 767 — 1,608 Kansas City, MO 4,142 4,086 8,358 8,183 Memphis, TN 12,050 10,055 23,784 19,890 Nashville, TN 21,770 20,182 43,586 39,787 Orlando, FL 10,948 9,148 21,782 18,068 Pittsburgh, PA 14,719 14,014 29,268 27,771 Raleigh, NC 25,541 22,538 48,982 44,029 Richmond, VA 10,203 12,020 20,787 23,763 Tampa, FL 18,602 17,129 37,029 33,756 Total Office Segment 148,984 140,146 294,807 276,489 Retail: Kansas City, MO 9,140 9,366 17,703 18,584 Total Retail Segment 9,140 9,366 17,703 18,584 Other 3,012 3,210 5,936 6,102 Total Rental and Other Revenues $ 161,136 $ 152,722 $ 318,446 $ 301,175 14. Segment Information - Continued Three Months Ended Six Months Ended 2015 2014 2015 2014 Net Operating Income: Office: Atlanta, GA $ 15,663 $ 14,321 $ 31,030 $ 28,018 Greensboro, NC 3,516 4,249 6,942 8,247 Greenville, SC — 390 — 865 Kansas City, MO 2,713 2,698 5,462 5,303 Memphis, TN 7,641 5,789 15,030 11,396 Nashville, TN 15,480 13,999 30,712 27,152 Orlando, FL 6,348 5,346 12,831 10,722 Pittsburgh, PA 8,670 7,988 16,632 15,181 Raleigh, NC 18,358 16,326 34,629 31,358 Richmond, VA 6,932 8,265 13,812 15,941 Tampa, FL 11,020 10,031 22,240 20,066 Total Office Segment 96,341 89,402 189,320 174,249 Retail: Kansas City, MO 5,351 5,764 10,063 11,029 Total Retail Segment 5,351 5,764 10,063 11,029 Other 2,166 2,281 4,272 4,232 Total Net Operating Income 103,858 97,447 203,655 189,510 Reconciliation to income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates: Depreciation and amortization (51,240 ) (50,443 ) (101,548 ) (98,608 ) Impairments of real estate assets — (588 ) — (588 ) General and administrative expenses (8,892 ) (8,733 ) (20,329 ) (19,447 ) Interest expense (22,002 ) (21,213 ) (43,425 ) (42,575 ) Other income 979 1,428 2,217 2,827 Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates $ 22,703 $ 17,898 $ 40,570 $ 31,119 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On July 23, 2015, we sold a building for a sale price of $15.3 million and expect to record a gain on disposition of property of $6.5 million . |
Description of Business and S23
Description of Business and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
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”). 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. |
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. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Standards The Financial Accounting Standards Board ("FASB") recently issued an accounting standards update that requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that we identify the contract with the customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when we satisfy the performance obligations. We will also be required to disclose information regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The accounting standards update is required to be adopted in 2017. Retrospective application is required either to all periods presented or with the cumulative effect of initial adoption recognized in the period of adoption. We are in the process of evaluating this accounting standards update. The FASB recently issued an accounting standards update that amends consolidation requirements. The amendments significantly change the consolidation analysis required under GAAP and will require companies to reevaluate all previous consolidation conclusions. The accounting standards update is required to be adopted in 2016. We are in the process of evaluating this accounting standards update. The FASB recently issued an accounting standards update that requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The accounting standards update is required to be adopted in 2016. Retrospective application is required. We are in the process of evaluating this accounting standards update. |
Description of Business and S24
Description of Business and Significant Accounting Policies Description of Business and Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule Of Retrospective Application Of The Equity Method Of Accounting [Table Text Block] | The effects of the retrospective application of the equity method of accounting to the Company's December 31, 2014 Balance Sheet were as follows: December 31, Previously Reported As Revised Net real estate assets $ 3,481,406 $ 3,452,006 Investments in and advances to unconsolidated affiliates $ 27,071 $ 50,685 Total Assets $ 4,004,909 $ 3,999,123 Financing obligations $ 23,519 $ 8,962 Distributions in excess of net income available for common stockholders $ (966,141 ) $ (957,370 ) Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity $ 4,004,909 $ 3,999,123 |
Investments In and Advances T25
Investments In and Advances To Unconsolidated Affiliates (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments Summarized Income Statement Information [Table Text Block] | The following table sets forth the summarized income statements of our unconsolidated affiliates: Three Months Ended Six Months Ended 2015 2014 2015 2014 Income Statements: Rental and other revenues $ 12,423 $ 12,845 $ 24,654 $ 25,278 Expenses: Rental property and other expenses 6,031 6,236 11,698 12,439 Depreciation and amortization 3,110 3,328 6,225 6,817 Interest expense 2,032 2,301 4,181 4,512 Total expenses 11,173 11,865 22,104 23,768 Income before disposition of property 1,250 980 2,550 1,510 Gains on disposition of property 16,054 — 18,181 1,949 Net income $ 17,304 $ 980 $ 20,731 $ 3,459 |
Intangible Assets and Below M26
Intangible Assets and Below Market Lease Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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: June 30, December 31, Assets: Deferred financing costs $ 19,508 $ 19,478 Less accumulated amortization (8,093 ) (7,953 ) 11,415 11,525 Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets) 323,268 322,094 Less accumulated amortization (111,303 ) (104,851 ) 211,965 217,243 Deferred financing and leasing costs, net $ 223,380 $ 228,768 Liabilities (in accounts payable, accrued expenses and other liabilities): Acquisition-related below market lease liabilities $ 55,166 $ 55,783 Less accumulated amortization (16,300 ) (13,548 ) $ 38,866 $ 42,235 |
Amortization of intangible assets and below market lease liabilities [Table Text Block] | The following table sets forth amortization of intangible assets and below market lease liabilities: Three Months Ended Six Months Ended 2015 2014 2015 2014 Amortization of deferred financing costs $ 828 $ 799 $ 1,628 $ 1,451 Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization) $ 10,169 $ 10,050 $ 20,462 $ 19,978 Amortization of lease incentives (in rental and other revenues) $ 422 $ 399 $ 784 $ 750 Amortization of acquisition-related intangible assets (in rental and other revenues) $ 1,189 $ 1,114 $ 2,355 $ 2,230 Amortization of acquisition-related intangible assets (in rental property and other expenses) $ 139 $ 139 $ 276 $ 276 Amortization of acquisition-related below market lease liabilities (in rental and other revenues) $ (1,674 ) $ (1,500 ) $ (3,406 ) $ (3,022 ) |
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) July 1 through December 31, 2015 $ 1,643 $ 20,519 $ 706 $ 2,213 $ 273 $ (3,098 ) 2016 3,035 35,511 1,238 3,294 553 (5,555 ) 2017 2,720 30,630 1,121 2,294 553 (5,284 ) 2018 1,538 26,145 1,015 1,474 553 (5,123 ) 2019 1,130 21,716 822 1,054 553 (4,810 ) Thereafter 1,349 53,743 2,582 2,870 533 (14,996 ) $ 11,415 $ 188,264 $ 7,484 $ 13,199 $ 3,018 $ (38,866 ) Weighted average remaining amortization periods as of June 30, 2015 (in years) 4.3 7.0 7.9 6.1 5.5 7.8 |
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 2015 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 $ 498 $ 1,671 $ (37 ) Weighted average remaining amortization periods as of June 30, 2015 (in years) 2.1 2.3 4.8 |
Mortgages and Notes Payable (Ta
Mortgages and Notes Payable (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Consolidated Mortgages and Notes Payable [Table Text Block] | The following table sets forth our mortgages and notes payable: June 30, December 31, Secured indebtedness $ 290,101 $ 312,868 Unsecured indebtedness 1,833,927 1,758,521 Total mortgages and notes payable $ 2,124,028 $ 2,071,389 |
Derivative Financial Instrume28
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments, Fair Value [Table Text Block] | The following table sets forth the fair value of our derivatives: June 30, December 31, Derivatives: Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities: Interest rate swaps $ 3,366 $ 2,412 |
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 Six Months Ended 2015 2014 2015 2014 Derivatives Designated as Cash Flow Hedges: Amount of unrealized gains/(losses) recognized in AOCL on derivatives (effective portion): Interest rate swaps $ 269 $ (2,846 ) $ (2,645 ) $ (4,250 ) Amount of losses reclassified out of AOCL into contractual interest expense (effective portion): Interest rate swaps $ 925 $ 944 $ 1,849 $ 1,872 |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) - Highwoods Properties, Inc. [Member] | 6 Months Ended |
Jun. 30, 2015 | |
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: Six Months Ended 2015 2014 Beginning noncontrolling interests in the Operating Partnership $ 130,048 $ 106,480 Adjustment of noncontrolling interests in the Operating Partnership to fair value (11,475 ) 18,337 Conversions of Common Units to Common Stock (1,206 ) (162 ) Redemptions of Common Units — (93 ) Net income attributable to noncontrolling interests in the Operating Partnership 1,378 1,140 Distributions to noncontrolling interests in the Operating Partnership (2,485 ) (2,497 ) Total noncontrolling interests in the Operating Partnership $ 116,260 $ 123,205 |
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 Six Months Ended 2015 2014 2015 2014 Net income available for common stockholders $ 25,155 $ 22,705 $ 44,471 $ 34,833 Increase in additional paid in capital from conversions of Common Units — — 1,206 162 Change from net income available for common stockholders and transfers from noncontrolling interests $ 25,155 $ 22,705 $ 45,677 $ 34,995 |
Disclosure About Fair Value o30
Disclosure About Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 in Active Markets for Identical Assets or Liabilities Significant Observable Inputs Significant Unobservable Inputs Fair Value at June 30, 2015: Assets: Mortgages and notes receivable, at fair value (1) $ 5,943 $ — $ 2,167 $ 3,776 Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 3,512 3,512 — — Tax increment financing bond (in prepaid expenses and other assets) 12,641 — — 12,641 Total Assets $ 22,096 $ 3,512 $ 2,167 $ 16,417 Noncontrolling Interests in the Operating Partnership $ 116,260 $ 116,260 $ — $ — Liabilities: Mortgages and notes payable, at fair value (1) $ 2,178,032 $ — $ 2,178,032 $ — Interest rate swaps (in accounts payable, accrued expenses and other liabilities) 3,366 — 3,366 — Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 3,512 3,512 — — Financing obligation, at fair value (1) 8,700 — — 8,700 Total Liabilities $ 2,193,610 $ 3,512 $ 2,181,398 $ 8,700 Fair Value at December 31, 2014: Assets: Mortgages and notes receivable, at fair value (1) $ 13,142 $ — $ 2,247 $ 10,895 Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 3,635 3,635 — — Tax increment financing bond (in prepaid expenses and other assets) 12,447 — — 12,447 Total Assets $ 29,224 $ 3,635 $ 2,247 $ 23,342 Noncontrolling Interests in the Operating Partnership $ 130,048 $ 130,048 $ — $ — Liabilities: Mortgages and notes payable, at fair value (1) $ 2,141,334 $ — $ 2,141,334 $ — Interest rate swaps (in accounts payable, accrued expenses and other liabilities) 2,412 — 2,412 — Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 3,635 3,635 — — Financing obligation, at fair value (as revised) (1) 8,623 — — 8,623 Total Liabilities (as revised) $ 2,156,004 $ 3,635 $ 2,143,746 $ 8,623 __________ (1) Amounts recorded at historical cost on our Consolidated Balance Sheets at June 30, 2015 and December 31, 2014 . |
Fair Value Measurements, Unobservable Inputs Reconciliation [Table Text Block] | The following table sets forth the changes in our Level 3 asset, which is recorded at fair value on our Consolidated Balance Sheets: Three Months Ended Six Months Ended 2015 2014 2015 2014 Asset: Tax Increment Financing Bond: Beginning balance $ 12,640 $ 13,568 $ 12,447 $ 13,403 Unrealized gains (in AOCL) 1 105 194 270 Ending balance $ 12,641 $ 13,673 $ 12,641 $ 13,673 |
Fair Value Measurements, Valuation Techniques [Table Text Block] | The following table sets forth quantitative information about the unobservable input of our Level 3 asset, which is recorded at fair value on our Consolidated Balance Sheets: Valuation Technique Unobservable Input Rate as of June 30, December 31, Asset: Tax increment financing bond Income approach Discount rate 8.1% 8.4% |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 Six Months Ended 2015 2014 2015 2014 Tax increment financing bond: Beginning balance $ (252 ) $ (864 ) $ (445 ) $ (1,029 ) Unrealized gains on tax increment financing bond 1 105 194 270 Ending balance (251 ) (759 ) (251 ) (759 ) Cash flow hedges: Beginning balance (5,457 ) (2,058 ) (3,467 ) (1,582 ) Unrealized gains/(losses) on cash flow hedges 269 (2,846 ) (2,645 ) (4,250 ) Amortization of cash flow hedges (1) 925 944 1,849 1,872 Ending balance (4,263 ) (3,960 ) (4,263 ) (3,960 ) Total accumulated other comprehensive loss $ (4,514 ) $ (4,719 ) $ (4,514 ) $ (4,719 ) __________ (1) Amounts reclassified out of AOCL into contractual interest expense. |
Real Estate and Other Assets 32
Real Estate and Other Assets Held For Sale (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
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: June 30, December 31, Assets: Land $ 1,450 $ — Buildings and tenant improvements 11,576 — Land held for development 2,184 995 Less-accumulated depreciation (5,062 ) — Net real estate assets 10,148 995 Accrued straight-line rents receivable, net 335 — Deferred leasing costs, net 128 — Prepaid expenses and other assets 20 43 Real estate and other assets, net, held for sale $ 10,631 $ 1,038 |
Earnings Per Share and Per Un33
Earnings Per Share and Per Unit (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share and Per 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 Six Months Ended 2015 2014 2015 2014 Earnings per Common Share - basic: Numerator: Income from continuing operations $ 26,891 $ 24,512 $ 47,726 $ 37,704 Net (income) attributable to noncontrolling interests in the Operating Partnership from continuing operations (782 ) (742 ) (1,378 ) (1,128 ) Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations (328 ) (438 ) (624 ) (861 ) Dividends on Preferred Stock (626 ) (627 ) (1,253 ) (1,254 ) Income from continuing operations available for common stockholders 25,155 22,705 44,471 34,461 Income from discontinued operations — — — 384 Net (income) attributable to noncontrolling interests in the Operating Partnership from discontinued operations — — — (12 ) Income from discontinued operations available for common stockholders — — — 372 Net income available for common stockholders $ 25,155 $ 22,705 $ 44,471 $ 34,833 Denominator: Denominator for basic earnings per Common Share – weighted average shares 94,055 90,254 93,641 90,111 Earnings per Common Share - basic: Income from continuing operations available for common stockholders $ 0.27 $ 0.25 $ 0.47 $ 0.38 Income from discontinued operations available for common stockholders — — — 0.01 Net income available for common stockholders $ 0.27 $ 0.25 $ 0.47 $ 0.39 Earnings per Common Share - diluted: Numerator: Income from continuing operations $ 26,891 $ 24,512 $ 47,726 $ 37,704 Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations (328 ) (438 ) (624 ) (861 ) Dividends on Preferred Stock (626 ) (627 ) (1,253 ) (1,254 ) Income from continuing operations available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership 25,937 23,447 45,849 35,589 Income from discontinued operations available for common stockholders — — — 384 Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership $ 25,937 $ 23,447 $ 45,849 $ 35,973 Denominator: Denominator for basic earnings per Common Share – weighted average shares 94,055 90,254 93,641 90,111 Add: Stock options using the treasury method 84 121 104 123 Noncontrolling interests Common Units 2,910 2,937 2,921 2,938 Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions (1) (2) 97,049 93,312 96,666 93,172 Earnings per Common Share - diluted: Income from continuing operations available for common stockholders $ 0.27 $ 0.25 $ 0.47 $ 0.38 Income from discontinued operations available for common stockholders — — — 0.01 Net income available for common stockholders $ 0.27 $ 0.25 $ 0.47 $ 0.39 __________ 13. Earnings Per Share and Per Unit - Continued (1) There were 0.2 million options outstanding during each of the three and six months ended June 30, 2015 and the six months ended June 30, 2014 that were not included in the computation of diluted earnings per share because the impact of including such options would be anti-dilutive. There were no such options outstanding during the three months ended June 30, 2014. (2) Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable. |
Highwoods Realty Limited Partnership [Member] | |
Earnings Per Share and Per 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 Six Months Ended 2015 2014 2015 2014 Earnings per Common Unit - basic: Numerator: Income from continuing operations $ 26,891 $ 24,512 $ 47,726 $ 37,704 Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations (328 ) (438 ) (624 ) (861 ) Distributions on Preferred Units (626 ) (627 ) (1,253 ) (1,254 ) Income from continuing operations available for common unitholders 25,937 23,447 45,849 35,589 Income from discontinued operations available for common unitholders — — — 384 Net income available for common unitholders $ 25,937 $ 23,447 $ 45,849 $ 35,973 Denominator: Denominator for basic earnings per Common Unit – weighted average units 96,556 92,782 96,153 92,640 Earnings per Common Unit - basic: Income from continuing operations available for common unitholders $ 0.27 $ 0.25 $ 0.48 $ 0.38 Income from discontinued operations available for common unitholders — — — 0.01 Net income available for common unitholders $ 0.27 $ 0.25 $ 0.48 $ 0.39 Earnings per Common Unit - diluted: Numerator: Income from continuing operations $ 26,891 $ 24,512 $ 47,726 $ 37,704 Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations (328 ) (438 ) (624 ) (861 ) Distributions on Preferred Units (626 ) (627 ) (1,253 ) (1,254 ) Income from continuing operations available for common unitholders 25,937 23,447 45,849 35,589 Income from discontinued operations available for common unitholders — — — 384 Net income available for common unitholders $ 25,937 $ 23,447 $ 45,849 $ 35,973 Denominator: Denominator for basic earnings per Common Unit – weighted average units 96,556 92,782 96,153 92,640 Add: Stock options using the treasury method 84 121 104 123 Denominator for diluted earnings per Common Unit – adjusted weighted average units and assumed conversions (1) (2) 96,640 92,903 96,257 92,763 Earnings per Common Unit - diluted: Income from continuing operations available for common unitholders $ 0.27 $ 0.25 $ 0.48 $ 0.38 Income from discontinued operations available for common unitholders — — — 0.01 Net income available for common unitholders $ 0.27 $ 0.25 $ 0.48 $ 0.39 __________ (1) There were 0.2 million options outstanding during each of the three and six months ended June 30, 2015 and the six months ended June 30, 2014 that were not included in the computation of diluted earnings per unit because the impact of including such options would be anti-dilutive . There were no such options outstanding during the three months ended June 30, 2014. (2) Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 used by our chief operating decision maker which is defined as rental and other revenues less rental property and other expenses, for each of our reportable segments. Our segment information for the three and six months ended June 30, 2014 has been retrospectively revised from previously reported amounts to reflect a change in our reportable segments. Three Months Ended Six Months Ended 2015 2014 2015 2014 Rental and Other Revenues: Office: Atlanta, GA $ 25,611 $ 23,627 $ 50,393 $ 46,604 Greensboro, NC 5,398 6,580 10,838 13,030 Greenville, SC — 767 — 1,608 Kansas City, MO 4,142 4,086 8,358 8,183 Memphis, TN 12,050 10,055 23,784 19,890 Nashville, TN 21,770 20,182 43,586 39,787 Orlando, FL 10,948 9,148 21,782 18,068 Pittsburgh, PA 14,719 14,014 29,268 27,771 Raleigh, NC 25,541 22,538 48,982 44,029 Richmond, VA 10,203 12,020 20,787 23,763 Tampa, FL 18,602 17,129 37,029 33,756 Total Office Segment 148,984 140,146 294,807 276,489 Retail: Kansas City, MO 9,140 9,366 17,703 18,584 Total Retail Segment 9,140 9,366 17,703 18,584 Other 3,012 3,210 5,936 6,102 Total Rental and Other Revenues $ 161,136 $ 152,722 $ 318,446 $ 301,175 14. Segment Information - Continued Three Months Ended Six Months Ended 2015 2014 2015 2014 Net Operating Income: Office: Atlanta, GA $ 15,663 $ 14,321 $ 31,030 $ 28,018 Greensboro, NC 3,516 4,249 6,942 8,247 Greenville, SC — 390 — 865 Kansas City, MO 2,713 2,698 5,462 5,303 Memphis, TN 7,641 5,789 15,030 11,396 Nashville, TN 15,480 13,999 30,712 27,152 Orlando, FL 6,348 5,346 12,831 10,722 Pittsburgh, PA 8,670 7,988 16,632 15,181 Raleigh, NC 18,358 16,326 34,629 31,358 Richmond, VA 6,932 8,265 13,812 15,941 Tampa, FL 11,020 10,031 22,240 20,066 Total Office Segment 96,341 89,402 189,320 174,249 Retail: Kansas City, MO 5,351 5,764 10,063 11,029 Total Retail Segment 5,351 5,764 10,063 11,029 Other 2,166 2,281 4,272 4,232 Total Net Operating Income 103,858 97,447 203,655 189,510 Reconciliation to income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates: Depreciation and amortization (51,240 ) (50,443 ) (101,548 ) (98,608 ) Impairments of real estate assets — (588 ) — (588 ) General and administrative expenses (8,892 ) (8,733 ) (20,329 ) (19,447 ) Interest expense (22,002 ) (21,213 ) (43,425 ) (42,575 ) Other income 979 1,428 2,217 2,827 Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates $ 22,703 $ 17,898 $ 40,570 $ 31,119 |
Description of Business and S35
Description of Business and Significant Accounting Policies (Details) $ / shares in Units, $ in Thousands, ft² in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015USD ($)aft²$ / sharesshares | Jun. 30, 2015USD ($)aft²$ / sharesshares | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Description of Business and Significant Accounting Policies [Line Items] | ||||
Rentable square feet of commercial real estate property (in sq feet) | ft² | 31.4 | 31.4 | ||
Rentable square feet of commercial real estate properties under development (in sq feet) | ft² | 0.9 | 0.9 | ||
Undeveloped land suitable for development (in acres) | a | 500 | 500 | ||
Common Units redeemed for a like number of common shares of stock (in shares) | shares | 26,820 | |||
Net proceeds of Common Stock sold during the period | $ 43,216 | $ 8,712 | ||
Joint venture partner's interest (in hundredths) | 80.00% | 80.00% | ||
Gain recognized on partial sale | $ 2,200 | |||
Net real estate assets | 3,513,419 | $ 3,513,419 | $ 3,452,006 | |
Investments in and advances to unconsolidated affiliates | 43,979 | 43,979 | 50,685 | |
Total Assets | 4,039,642 | 4,039,642 | 3,999,123 | |
Financing obligation | 8,962 | 8,962 | 8,962 | |
Distributions in excess of net income available for common stockholders | (992,425) | (992,425) | (957,370) | |
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity | $ 4,039,642 | $ 4,039,642 | $ 3,999,123 | |
Highwoods Properties, Inc. [Member] | ||||
Description of Business and Significant Accounting Policies [Line Items] | ||||
Common Units of partnership owned by the Company (in shares) | shares | 93,700,000 | 93,700,000 | ||
Percentage of ownership of Common Units (in hundredths) | 97.00% | 97.00% | 96.90% | |
Highwoods Properties, Inc. [Member] | Previously Reported Disclosure [Member] | ||||
Description of Business and Significant Accounting Policies [Line Items] | ||||
Net real estate assets | $ 3,481,406 | |||
Investments in and advances to unconsolidated affiliates | 27,071 | |||
Total Assets | 4,004,909 | |||
Financing obligation | 23,519 | |||
Distributions in excess of net income available for common stockholders | (966,141) | |||
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity | 4,004,909 | |||
Highwoods Properties, Inc. [Member] | Revised Disclosure [Member] | ||||
Description of Business and Significant Accounting Policies [Line Items] | ||||
Net real estate assets | 3,452,006 | |||
Investments in and advances to unconsolidated affiliates | 50,685 | |||
Total Assets | 3,999,123 | |||
Financing obligation | 8,962 | |||
Distributions in excess of net income available for common stockholders | (957,370) | |||
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity | 3,999,123 | |||
Highwoods Properties, Inc. [Member] | ATM Equity Offering [Member] | ||||
Description of Business and Significant Accounting Policies [Line Items] | ||||
Number of Common Stock sold during the period (in shares) | shares | 58,533 | 972,659 | ||
Average price of Common Stock sold during the period (in dollars per share) | $ / shares | $ 41.72 | $ 45.12 | ||
Net proceeds of Common Stock sold during the period | $ 2,400 | $ 43,200 | ||
Highwoods Realty Limited Partnership [Member] | ||||
Description of Business and Significant Accounting Policies [Line Items] | ||||
Common Units of partnership not owned by the Company (in shares) | shares | 2,900,000 | 2,900,000 | ||
Net real estate assets | $ 3,513,419 | $ 3,513,419 | 3,452,006 | |
Investments in and advances to unconsolidated affiliates | 43,979 | 43,979 | 50,685 | |
Total Assets | 4,039,642 | 4,039,642 | 3,999,229 | |
Financing obligation | 8,962 | 8,962 | 8,962 | |
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity | $ 4,039,642 | $ 4,039,642 | $ 3,999,229 |
Real Estate Assets (Details)
Real Estate Assets (Details) ft² in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015USD ($)ft² | Mar. 31, 2015USD ($)property | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)ft² | Jun. 30, 2014USD ($) | |
Acquisitions [Abstract] | |||||
Contingent consideration in connection with the acquisition of land | $ 900 | $ 0 | |||
Dispositions [Abstract] | |||||
Gain on disposition of property | $ 2,412 | $ 5,947 | $ 3,569 | $ 5,947 | |
Atlanta, GA Land Acquisition [Member] (6/2015) [Member] | |||||
Acquisitions [Abstract] | |||||
Purchase price of acquisition | 5,200 | ||||
Contingent consideration in connection with the acquisition of land | $ 900 | ||||
Orlando, FL Building Acquisition [Member] (6/2015) [Member] | |||||
Acquisitions [Abstract] | |||||
Percentage of equity interest acquired in unconsolidated affiliate (in hundredths) | 77.20% | 77.20% | |||
Acquisition rentable square feet (in sq. ft.) | ft² | 168 | 168 | |||
Fair value of debt assumed in connection with the acquisition | $ 19,300 | $ 19,300 | |||
Acquisition-related costs | 100 | ||||
Building Dispositions [Member] | |||||
Dispositions [Abstract] | |||||
Number of buildings sold | property | 2 | ||||
Purchase price of real estate | $ 3,500 | ||||
Gain on disposition of property | 400 | ||||
Land Dispositions [Member] | |||||
Dispositions [Abstract] | |||||
Purchase price of real estate | 500 | 2,500 | |||
Gain on disposition of property | $ 200 | $ 800 |
Mortgages and Notes Receivable
Mortgages and Notes Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Schedule of mortgages and notes receivable [Abstract] | ||||
Mortgages and notes receivable, net | $ 5,935 | $ 5,935 | $ 13,116 | |
Repayment of secured acquisition financing | $ 9,221 | $ 16,817 | ||
Mortgages Receivable [Member] | ||||
Schedule of mortgages and notes receivable [Abstract] | ||||
Repayment of secured acquisition financing | $ 9,900 |
Investments In and Advances T38
Investments In and Advances To Unconsolidated Affiliates (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015USD ($)property | Mar. 31, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)property | Jun. 30, 2014USD ($) | |
Income Statements: | |||||
Rental and other revenues | $ 12,423 | $ 12,845 | $ 24,654 | $ 25,278 | |
Expenses: | |||||
Rental property and other expenses | 6,031 | 6,236 | 11,698 | 12,439 | |
Depreciation and amortization | 3,110 | 3,328 | 6,225 | 6,817 | |
Interest expense | 2,032 | 2,301 | 4,181 | 4,512 | |
Total expenses | 11,173 | 11,865 | 22,104 | 23,768 | |
Income before disposition of property | 1,250 | 980 | 2,550 | 1,510 | |
Gains on disposition of property | 16,054 | 0 | 18,181 | 1,949 | |
Net income | $ 17,304 | $ 980 | $ 20,731 | $ 3,459 | |
Percentage of equity interest in joint ventures, maximum (in hundredths) | 50.00% | 50.00% | |||
Joint venture partner's interest (in hundredths) | 50.00% | 50.00% | |||
SF-Harborview Plaza, LP Joint Venture [Member] | |||||
Expenses: | |||||
Percentage of equity interest in joint ventures, maximum (in hundredths) | 20.00% | 20.00% | |||
Term of debt instrument | 3 years | ||||
Advances to affiliate loan amount | $ 20,800 | $ 20,800 | |||
Maturity date of advance to affiliate | Sep. 11, 2015 | ||||
Joint venture partner's interest (in hundredths) | 80.00% | 80.00% | |||
Term of put option right (in years) | 1 year | ||||
Advance to affiliate, variable interest rate basis | LIBOR plus 500 basis points | ||||
Advance to affiliate, interest rate (in hundredths) | 5.00% | ||||
Advance to affiliate, minimum interest rate (in hundredths) | 0.50% | ||||
Highwoods DLF 98/29, LLC Joint Venture [Member] | |||||
Expenses: | |||||
Gains on disposition of property | $ 13,700 | ||||
Our share of gains on disposition of property | 3,100 | ||||
Highwoods KC Glenridge Office, LLC Joint Venture [Member] | |||||
Expenses: | |||||
Gains on disposition of property | $ 2,400 | ||||
Number of buildings sold | property | 2 | 2 | |||
Proceeds received from disposition of property | $ 24,500 | ||||
Closing credits for unfunded tenant improvements | 300 | ||||
Our share of gains on disposition of property | $ 900 | ||||
Highwoods DLF 97/26 DLF 99/32, LP Joint Venture [Member] | |||||
Expenses: | |||||
Gains on disposition of property | $ 2,100 | ||||
Proceeds received from disposition of property | 7,000 | ||||
Our share of gains on disposition of property | $ 1,100 |
Intangible Assets and Below M39
Intangible Assets and Below Market Lease Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Intangible assets and below market lease liabilities, net [Abstract] | |||||
Deferred financing and leasing costs, accumulated amortization | $ (119,396) | $ (119,396) | $ (112,804) | ||
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets | 223,380 | 223,380 | 228,768 | ||
Acquired intangible assets (amortized in rental and other revenue) | 498 | 498 | |||
Acquired intangible assets (amortized in depreciation and amortization) | 1,671 | 1,671 | |||
Assumed below market lease liabilities (amortized in rental and other revenue) | (37) | (37) | |||
Deferred Financing Costs [Member] | |||||
Intangible assets and below market lease liabilities, net [Abstract] | |||||
Deferred financing and leasing costs, gross | 19,508 | 19,508 | 19,478 | ||
Deferred financing and leasing costs, accumulated amortization | (8,093) | (8,093) | (7,953) | ||
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets | 11,415 | 11,415 | 11,525 | ||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||||
Amortization of intangible assets | 828 | $ 799 | 1,628 | $ 1,451 | |
Deferred Leasing Costs [Member] | |||||
Intangible assets and below market lease liabilities, net [Abstract] | |||||
Deferred financing and leasing costs, gross | 323,268 | 323,268 | 322,094 | ||
Deferred financing and leasing costs, accumulated amortization | (111,303) | (111,303) | (104,851) | ||
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets | 211,965 | 211,965 | 217,243 | ||
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 | 188,264 | 188,264 | |||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||||
Amortization of intangible assets | 10,169 | 10,050 | 20,462 | 19,978 | |
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 | 7,484 | 7,484 | |||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||||
Amortization of intangible assets | 422 | 399 | 784 | 750 | |
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 | 13,199 | 13,199 | |||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||||
Amortization of intangible assets | 1,189 | 1,114 | 2,355 | 2,230 | |
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 | 3,018 | 3,018 | |||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||||
Amortization of intangible assets | 139 | 139 | 276 | 276 | |
Acquisition-Related Below Market Lease Liabilities [Member] | |||||
Intangible assets and below market lease liabilities, net [Abstract] | |||||
Acquisition-related below market lease liabilities, gross | 55,166 | 55,166 | 55,783 | ||
Acquisition-related below market lease liabilities, accumulated amortization | (16,300) | (16,300) | (13,548) | ||
Acquisition-related below market lease liabilities, net | 38,866 | 38,866 | $ 42,235 | ||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||||
Amortization of acquisition-related below market lease liabilities | $ (1,674) | $ (1,500) | $ (3,406) | $ (3,022) |
Intangible Assets and Below M40
Intangible Assets and Below Market Lease Liabilities - Scheduled Future Amortization (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Scheduled future amortization of intangible assets [Abstract] | ||
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets | $ 223,380 | $ 228,768 |
Deferred Financing Costs [Member] | ||
Scheduled future amortization of intangible assets [Abstract] | ||
July 1, 2015 through December 31, 2015 | 1,643 | |
2,016 | 3,035 | |
2,017 | 2,720 | |
2,018 | 1,538 | |
2,019 | 1,130 | |
Thereafter | 1,349 | |
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets | $ 11,415 | 11,525 |
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract] | ||
Finite-lived intangible assets, average useful life (in years) | 4 years 4 months | |
Deferred Leasing Costs and Acquisition-Related Intangible Assets [Member] | ||
Scheduled future amortization of intangible assets [Abstract] | ||
July 1, 2015 through December 31, 2015 | $ 20,519 | |
2,016 | 35,511 | |
2,017 | 30,630 | |
2,018 | 26,145 | |
2,019 | 21,716 | |
Thereafter | 53,743 | |
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets | $ 188,264 | |
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 | |
Lease Incentives [Member] | ||
Scheduled future amortization of intangible assets [Abstract] | ||
July 1, 2015 through December 31, 2015 | $ 706 | |
2,016 | 1,238 | |
2,017 | 1,121 | |
2,018 | 1,015 | |
2,019 | 822 | |
Thereafter | 2,582 | |
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets | $ 7,484 | |
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] | ||
July 1, 2015 through December 31, 2015 | $ 2,213 | |
2,016 | 3,294 | |
2,017 | 2,294 | |
2,018 | 1,474 | |
2,019 | 1,054 | |
Thereafter | 2,870 | |
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets | $ 13,199 | |
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 1 month 5 days | |
Acquired finite-lived intangible assets, weighted average useful life (in years) | 2 years 1 month 5 days | |
Acquisition-Related Intangible Assets (amortized in Depreciation and Amortization) [Member] | ||
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract] | ||
Acquired finite-lived intangible assets, weighted average useful life (in years) | 2 years 4 months | |
Acquisition-Related Intangible Assets (in Rental Property and Other Expenses) [Member] | ||
Scheduled future amortization of intangible assets [Abstract] | ||
July 1, 2015 through December 31, 2015 | $ 273 | |
2,016 | 553 | |
2,017 | 553 | |
2,018 | 553 | |
2,019 | 553 | |
Thereafter | 533 | |
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets | $ 3,018 | |
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 6 months | |
Acquisition-Related Below Market Lease Liabilities [Member] | ||
Scheduled future amortization of below market lease liabilities [Abstract] | ||
July 1, 2015 through December 31, 2015 | $ (3,098) | |
2,016 | (5,555) | |
2,017 | (5,284) | |
2,018 | (5,123) | |
2,019 | (4,810) | |
Thereafter | (14,996) | |
Total scheduled future amortization of acquisition-related below market lease liabilities | $ (38,866) | $ (42,235) |
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) | 7 years 9 months 20 days | |
Assumed finite-lived below market lease liabilities, weighted average useful life (in years) | 4 years 9 months 20 days |
Mortgages and Notes Payable (De
Mortgages and Notes Payable (Details) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015USD ($)extensions | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jul. 27, 2015USD ($) | Dec. 31, 2014USD ($) | |
Debt Instrument [Line Items] | ||||||
Mortgages and notes payable | $ 2,124,028,000 | $ 2,124,028,000 | $ 2,071,389,000 | |||
Loss on debt extinguishment | (220,000) | $ 18,000 | (220,000) | $ 18,000 | ||
Amount of funded capital expenditures reserve | 15,703,000 | 15,703,000 | 14,595,000 | |||
Revolving Credit Facility due 2018 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity on revolving credit facility | 475,000,000 | $ 475,000,000 | ||||
Maturity date on revolving credit facility | Jan. 1, 2018 | |||||
Additional borrowing capacity on revolving credit facility | $ 75,000,000 | $ 75,000,000 | ||||
Facility interest rate basis | LIBOR plus 110 basis points | |||||
Interest rate spread (in hundredths) | 1.10% | |||||
Annual facility fee (in hundredths) | 0.20% | |||||
Term of optional extension | 6 months | |||||
Number of additional maturity extensions | extensions | 2 | |||||
Amount outstanding on revolving credit facility | $ 159,000,000 | 159,000,000 | ||||
Outstanding letters of credit on revolving credit facility | 400,000 | 400,000 | ||||
Unused borrowing capacity on revolving credit facility | $ 315,600,000 | 315,600,000 | ||||
Variable Rate Term Loan (2) due 2019 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate spread (in hundredths) | 1.75% | |||||
Principal debt amount | $ 225,000,000 | 225,000,000 | ||||
Term of debt instrument | 7 years | |||||
Scheduled maturity date | Jan. 1, 2019 | |||||
Debt, variable interest rate basis | LIBOR plus 175 basis points | |||||
Variable Rate Term Loan due 2020 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate spread (in hundredths) | 1.10% | |||||
Principal debt amount | $ 350,000,000 | 350,000,000 | ||||
Scheduled maturity date | Jun. 1, 2020 | |||||
Debt, variable interest rate basis | LIBOR plus 110 basis points | |||||
Deferred financing fees | $ 1,300,000 | $ 1,300,000 | ||||
5.17% (6.43% effective rate) Mortage Loan due 2015 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Early repayment of debt | $ 39,400,000 | |||||
Scheduled maturity date | Nov. 1, 2015 | |||||
Effective interest rate (in hundredths) | 6.43% | 6.43% | ||||
Loss on debt extinguishment | $ 200,000 | |||||
6.11% (5.36% effective rate) Mortgage Loan due 2017 (Note A) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal debt amount | $ 18,000,000 | $ 18,000,000 | ||||
Scheduled maturity date | Jul. 6, 2017 | |||||
Effective interest rate (in hundredths) | 5.36% | 5.36% | ||||
Percentage of equity interest acquired in unconsolidated affiliate (in hundredths) | 77.20% | 77.20% | ||||
Amount of funded capital expenditures reserve | $ 3,000,000 | $ 3,000,000 | ||||
Mortgage prepayment date | Oct. 6, 2016 | |||||
Fair value of debt assumed in connection with the acquisition | $ 18,300,000 | 18,300,000 | ||||
6.11% (8.60% effective rate) Mortgage Loan due 2017 (Note B) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal debt amount | $ 10,200,000 | $ 10,200,000 | ||||
Scheduled maturity date | Jul. 6, 2017 | |||||
Effective interest rate (in hundredths) | 8.60% | 8.60% | ||||
Mortgage prepayment date | Oct. 6, 2016 | |||||
Percentage of excess funds after waterfall payments (in hundredths) | 50.00% | 50.00% | ||||
Stated return on funds deposited in escrow (in hundredths) | 10.00% | 10.00% | ||||
Fair value of debt assumed in connection with the acquisition | $ 1,000,000 | $ 1,000,000 | ||||
Secured indebtedness [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Mortgages and notes payable | 290,101,000 | 290,101,000 | 312,868,000 | |||
Aggregate undepreciated book value of secured real estate assets | 545,500,000 | 545,500,000 | ||||
Unsecured indebtedness [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Mortgages and notes payable | $ 1,833,927,000 | $ 1,833,927,000 | $ 1,758,521,000 | |||
Subsequent Event [Member] | Revolving Credit Facility due 2018 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Amount outstanding on revolving credit facility | $ 158,000,000 | |||||
Outstanding letters of credit on revolving credit facility | 400,000 | |||||
Unused borrowing capacity on revolving credit facility | $ 316,600,000 |
Derivative Financial Instrume42
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||
Expected increase to interest expense | $ 2,900 | $ 2,900 | |||
Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities [Abstract] | |||||
Interest rate swaps | 3,366 | 3,366 | $ 2,412 | ||
Amount of unrealized gains/(losses) recognized in AOCL on derivatives (effective portion) [Abstract] | |||||
Interest rate swaps | 269 | $ (2,846) | (2,645) | $ (4,250) | |
Amount of losses reclassified out of AOCL into contractual interest expense (effective portion) [Abstract] | |||||
Interest rate swaps | $ 925 | $ 944 | $ 1,849 | $ 1,872 |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Noncontrolling Interests in the Operating Partnership [Roll Forward] | ||||
Beginning noncontrolling interests in the Operating Partnership | $ 130,048 | |||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | (11,475) | $ 18,337 | ||
Conversions of Common Units to Common Stock | (1,206) | (162) | ||
Redemptions of Common Units | 0 | (93) | ||
Net income attributable to noncontrolling interests in the Operating Partnership | $ 782 | $ 742 | 1,378 | 1,140 |
Distributions to noncontrolling interests in the Operating Partnership | (2,485) | (2,497) | ||
Total noncontrolling interests in the Operating Partnership | 116,260 | 116,260 | ||
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership [Abstract] | ||||
Net income available for common stockholders | $ 25,155 | 22,705 | $ 44,471 | 34,833 |
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 | $ 130,048 | 106,480 | ||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | (11,475) | 18,337 | ||
Conversions of Common Units to Common Stock | (1,206) | (162) | ||
Redemptions of Common Units | 0 | (93) | ||
Net income attributable to noncontrolling interests in the Operating Partnership | 1,378 | 1,140 | ||
Distributions to noncontrolling interests in the Operating Partnership | (2,485) | (2,497) | ||
Total noncontrolling interests in the Operating Partnership | $ 116,260 | 123,205 | 116,260 | 123,205 |
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership [Abstract] | ||||
Net income available for common stockholders | 25,155 | 22,705 | 44,471 | 34,833 |
Increase in additional paid in capital from conversions of Common Units to Common Stock | 0 | 0 | 1,206 | 162 |
Change from net income available for common stockholders and transfers from noncontrolling interests | $ 25,155 | $ 22,705 | $ 45,677 | $ 34,995 |
Disclosure About Fair Value o44
Disclosure About Fair Value of Financial Instruments - Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Assets: | |||
Mortgages and notes receivable, at fair value | [1] | $ 5,943 | $ 13,142 |
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) | 3,512 | 3,635 | |
Tax increment financing bond (in prepaid expenses and other assets) | 12,641 | 12,447 | |
Total Assets | 22,096 | 29,224 | |
Liabilities: | |||
Mortgages and notes payable, at fair value | [1] | 2,178,032 | 2,141,334 |
Interest rate swaps (in accounts payable, accrued expenses and other liabilities) | 3,366 | 2,412 | |
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 3,512 | 3,635 | |
Financing obligation, at fair value | [1] | 8,700 | 8,623 |
Total Liabilities | 2,193,610 | 2,156,004 | |
Level 1 [Member] | |||
Assets: | |||
Mortgages and notes receivable, at fair value | [1] | 0 | 0 |
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) | 3,512 | 3,635 | |
Tax increment financing bond (in prepaid expenses and other assets) | 0 | 0 | |
Total Assets | 3,512 | 3,635 | |
Liabilities: | |||
Mortgages and notes payable, at fair value | [1] | 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) | 3,512 | 3,635 | |
Financing obligation, at fair value | [1] | 0 | 0 |
Total Liabilities | 3,512 | 3,635 | |
Level 2 [Member] | |||
Assets: | |||
Mortgages and notes receivable, at fair value | [1] | 2,167 | 2,247 |
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 | 2,167 | 2,247 | |
Liabilities: | |||
Mortgages and notes payable, at fair value | [1] | 2,178,032 | 2,141,334 |
Interest rate swaps (in accounts payable, accrued expenses and other liabilities) | 3,366 | 2,412 | |
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 0 | 0 | |
Financing obligation, at fair value | [1] | 0 | 0 |
Total Liabilities | 2,181,398 | 2,143,746 | |
Level 3 [Member] | |||
Assets: | |||
Mortgages and notes receivable, at fair value | [1] | 3,776 | 10,895 |
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) | 12,641 | 12,447 | |
Total Assets | 16,417 | 23,342 | |
Liabilities: | |||
Mortgages and notes payable, at fair value | [1] | 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 | |
Financing obligation, at fair value | [1] | 8,700 | 8,623 |
Total Liabilities | 8,700 | 8,623 | |
Highwoods Properties, Inc. [Member] | |||
Assets: | |||
Noncontrolling Interests in the Operating Partnership | 116,260 | 130,048 | |
Highwoods Properties, Inc. [Member] | Level 1 [Member] | |||
Assets: | |||
Noncontrolling Interests in the Operating Partnership | 116,260 | 130,048 | |
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 June 30, 2015 and December 31, 2014. |
Disclosure About Fair Value o45
Disclosure About Fair Value of Financial Instruments - Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Unrealized gains (in AOCL) | $ 194 | $ 270 | |||
Tax Increment Financing Bond [Member] | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Beginning balance | $ 12,640 | $ 13,568 | 12,447 | 13,403 | $ 13,403 |
Unrealized gains (in AOCL) | 1 | 105 | 194 | 270 | |
Ending balance | $ 12,641 | $ 13,673 | $ 12,641 | $ 13,673 | $ 12,447 |
Maturity date | Dec. 20, 2020 | ||||
Amount by which outstanding principal amount exceeds estimated fair value | $ 200 | ||||
Change in discount rate (in hundredths) | 1.00% | ||||
Discount rate (in hundredths) | 8.10% | 8.40% | |||
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 | $ 300 | $ 300 | |||
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 | $ 400 | $ 400 |
Share-Based Payments (Details)
Share-Based Payments (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 1,200 | $ 1,119 | $ 5,067 | $ 5,381 |
Total unrecognized stock-based compensation costs | $ 6,700 | $ 6,700 | ||
Weighted average remaining contractual term for recognition of unrecognized stock-based compensation costs (in years) | 2 years 7 months 7 days | |||
Highwoods Properties, Inc. [Member] | Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options granted | 197,408 | |||
Weighted average grant date fair value of each stock option granted (in dollars per option) | $ 6.19 | |||
Highwoods Properties, Inc. [Member] | Time-Based Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock shares granted | 71,994 | |||
Weighted average grant date fair value of each restricted stock granted (in dollars per share) | $ 45.91 | |||
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 | 56,957 | |||
Weighted average grant date fair value of each restricted stock granted (in dollars per share) | $ 43.77 |
Accumulated Other Comprehensi47
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Accumulated Other Comprehensive Income (Loss) Calculation [Roll Forward] | |||||
Beginning balance | $ (3,912) | ||||
Ending balance | $ (4,514) | $ (4,719) | (4,514) | $ (4,719) | |
Tax Increment Financing Bond [Member] | |||||
Accumulated Other Comprehensive Income (Loss) Calculation [Roll Forward] | |||||
Beginning balance | (252) | (864) | (445) | (1,029) | |
Unrealized gains/(losses) | 1 | 105 | 194 | 270 | |
Ending balance | (251) | (759) | (251) | (759) | |
Cash Flow Hedges [Member] | |||||
Accumulated Other Comprehensive Income (Loss) Calculation [Roll Forward] | |||||
Beginning balance | (5,457) | (2,058) | (3,467) | (1,582) | |
Unrealized gains/(losses) | 269 | (2,846) | (2,645) | (4,250) | |
Amortization reclassified out of AOCL | [1] | 925 | 944 | 1,849 | 1,872 |
Ending balance | $ (4,263) | $ (3,960) | $ (4,263) | $ (3,960) | |
[1] | Amounts reclassified out of AOCL into contractual interest expense. |
Real Estate and Other Assets 48
Real Estate and Other Assets Held For Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Assets, held for sale [Abstract] | ||
Land | $ 1,450 | $ 0 |
Buildings and tenant improvements | 11,576 | 0 |
Land held for development | 2,184 | 995 |
Less - accumulated depreciation | (5,062) | 0 |
Net real estate assets | 10,148 | 995 |
Accrued straight-line rents receivable, net | 335 | 0 |
Deferred leasing costs, net | 128 | 0 |
Prepaid expenses and other assets | 20 | 43 |
Real estate and other assets, net, held for sale | $ 10,631 | $ 1,038 |
Earnings Per Share and Per Un49
Earnings Per Share and Per Unit (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Numerator: | |||||
Income from continuing operations | $ 26,891 | $ 24,512 | $ 47,726 | $ 37,704 | |
Net (income) attributable to noncontrolling interests in the Operating Partnership from continuing operations | (782) | (742) | (1,378) | (1,128) | |
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations | (328) | (438) | (624) | (861) | |
Dividends on Preferred Stock | (626) | (627) | (1,253) | (1,254) | |
Income from continuing operations available for common stockholders | 25,155 | 22,705 | 44,471 | 34,461 | |
Income from discontinued operations | 0 | 0 | 0 | 384 | |
Net (income) attributable to noncontrolling interests in the Operating Partnership from discontinued operations | 0 | 0 | 0 | (12) | |
Income from discontinued operations available for common stockholders | 0 | 0 | 0 | 372 | |
Net income available for common stockholders | $ 25,155 | $ 22,705 | $ 44,471 | $ 34,833 | |
Denominator: | |||||
Denominator for basic earnings per Common Share - weighted average shares (in shares) | 94,055,000 | 90,254,000 | 93,641,000 | 90,111,000 | |
Earnings per Common Share - basic: | |||||
Income from continuing operations available for common stockholders (in dollars per share) | $ 0.27 | $ 0.25 | $ 0.47 | $ 0.38 | |
Income from discontinued operations available for common stockholders (in dollars per share) | 0 | 0 | 0 | 0.01 | |
Net income available for common stockholders (in dollars per share) | $ 0.27 | $ 0.25 | $ 0.47 | $ 0.39 | |
Numerator: | |||||
Income from continuing operations | $ 26,891 | $ 24,512 | $ 47,726 | $ 37,704 | |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (328) | (438) | (624) | (861) | |
Dividends on Preferred Stock | (626) | (627) | (1,253) | (1,254) | |
Income from continuing operations available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership | 25,937 | 23,447 | 45,849 | 35,589 | |
Income from discontinued operations available for common stockholders | 0 | 0 | 0 | 384 | |
Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership | $ 25,937 | $ 23,447 | $ 45,849 | $ 35,973 | |
Denominator: | |||||
Denominator for basic earnings per Common Share - weighted average shares (in shares) | 94,055,000 | 90,254,000 | 93,641,000 | 90,111,000 | |
Stock options using the treasury method | 84,000 | 121,000 | 104,000 | 123,000 | |
Noncontrolling interests Common Units | 2,910,000 | 2,937,000 | 2,921,000 | 2,938,000 | |
Denominator for diluted earnings per Common Share - adjusted weighted average shares and assumed conversions (in shares) | [1],[2] | 97,049,000 | 93,312,000 | 96,666,000 | 93,172,000 |
Earnings per Common Share - diluted: | |||||
Income from continuing operations available for common stockholders (in dollars per share) | $ 0.27 | $ 0.25 | $ 0.47 | $ 0.38 | |
Income from discontinued operations available for common stockholders (in dollars per share) | 0 | 0 | 0 | 0.01 | |
Net income available for common stockholders (in dollars per share) | $ 0.27 | $ 0.25 | $ 0.47 | $ 0.39 | |
Earnings Per Share and Per Unit, Basic and Diluted, Other Disclosures [Abstract] | |||||
Number of anti-dilutive options and warrants not included in earnings per share (in shares) | 222,000 | 197,000 | 166,000 | ||
Highwoods Realty Limited Partnership [Member] | |||||
Numerator: | |||||
Income from continuing operations | $ 26,891 | $ 24,512 | $ 47,726 | $ 37,704 | |
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations | (328) | (438) | (624) | (861) | |
Distributions on Preferred Units | (626) | (627) | (1,253) | (1,254) | |
Income from continuing operations available for common unitholders | 25,937 | 23,447 | 45,849 | 35,589 | |
Income from discontinued operations available for common unitholders | 0 | 0 | 0 | 384 | |
Net income available for common unitholders | $ 25,937 | $ 23,447 | $ 45,849 | $ 35,973 | |
Denominator: | |||||
Denominator for basic earnings per Common Unit - weighted average units (in shares) | 96,556,000 | 92,782,000 | 96,153,000 | 92,640,000 | |
Earnings per Common Unit - basic: | |||||
Income from continuing operations available for common unitholders (in dollars per share) | $ 0.27 | $ 0.25 | $ 0.48 | $ 0.38 | |
Income from discontinued operations available for common unitholders (in dollars per share) | 0 | 0 | 0 | 0.01 | |
Net income available for common unitholders (in dollars per share) | $ 0.27 | $ 0.25 | $ 0.48 | $ 0.39 | |
Numerator: | |||||
Income from continuing operations | $ 26,891 | $ 24,512 | $ 47,726 | $ 37,704 | |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (328) | (438) | (624) | (861) | |
Distributions on Preferred Units | (626) | (627) | (1,253) | (1,254) | |
Income from continuing operations available for common unitholders | 25,937 | 23,447 | 45,849 | 35,589 | |
Income from discontinued operations available for common unitholders | 0 | 0 | 0 | 384 | |
Net income available for common unitholders | $ 25,937 | $ 23,447 | $ 45,849 | $ 35,973 | |
Denominator: | |||||
Denominator for basic earnings per Common Unit - weighted average units (in shares) | 96,556,000 | 92,782,000 | 96,153,000 | 92,640,000 | |
Stock options using the treasury method | 84,000 | 121,000 | 104,000 | 123,000 | |
Denominator for diluted earnings per Common Unit - adjusted weighted average units and assumed conversions (in shares) | [3],[4] | 96,640,000 | 92,903,000 | 96,257,000 | 92,763,000 |
Earnings per Common Unit - diluted: | |||||
Income from continuing operations available for common unitholders (in dollars per share) | $ 0.27 | $ 0.25 | $ 0.48 | $ 0.38 | |
Income from discontinued operations available for common unitholders (in dollars per share) | 0 | 0 | 0 | 0.01 | |
Net income available for common unitholders (in dollars per share) | $ 0.27 | $ 0.25 | $ 0.48 | $ 0.39 | |
Earnings Per Share and Per Unit, Basic and Diluted, Other Disclosures [Abstract] | |||||
Number of anti-dilutive options and warrants not included in earnings per share (in shares) | 222,000 | 197,000 | 166,000 | ||
[1] | Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable. | ||||
[2] | There were 0.2 million options outstanding during each of the three and six months ended June 30, 2015 and the six months ended June 30, 2014 that were not included in the computation of diluted earnings per share because the impact of including such options would be anti-dilutive. There were no such options outstanding during the three months ended June 30, 2014. | ||||
[3] | Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable. | ||||
[4] | There were 0.2 million options outstanding during each of the three and six months ended June 30, 2015 and the six months ended June 30, 2014 that were not included in the computation of diluted earnings per unit because the impact of including such options would be anti-dilutive. There were no such options outstanding during the three months ended June 30, 2014. |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | $ 161,136 | $ 152,722 | $ 318,446 | $ 301,175 |
Total Net Operating Income | 103,858 | 97,447 | 203,655 | 189,510 |
Reconciliation to income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates: | ||||
Depreciation and amortization | (51,240) | (50,443) | (101,548) | (98,608) |
Impairments of real estate assets | 0 | (588) | 0 | (588) |
General and administrative expenses | (8,892) | (8,733) | (20,329) | (19,447) |
Interest expense | (22,002) | (21,213) | (43,425) | (42,575) |
Other income | 979 | 1,428 | 2,217 | 2,827 |
Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates | 22,703 | 17,898 | 40,570 | 31,119 |
Total Office Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 148,984 | 140,146 | 294,807 | 276,489 |
Total Net Operating Income | 96,341 | 89,402 | 189,320 | 174,249 |
Office Atlanta, GA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 25,611 | 23,627 | 50,393 | 46,604 |
Total Net Operating Income | 15,663 | 14,321 | 31,030 | 28,018 |
Office Greensboro, NC [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 5,398 | 6,580 | 10,838 | 13,030 |
Total Net Operating Income | 3,516 | 4,249 | 6,942 | 8,247 |
Office Greenville, SC [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 0 | 767 | 0 | 1,608 |
Total Net Operating Income | 0 | 390 | 0 | 865 |
Office Kansas City, MO [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 4,142 | 4,086 | 8,358 | 8,183 |
Total Net Operating Income | 2,713 | 2,698 | 5,462 | 5,303 |
Office Memphis, TN [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 12,050 | 10,055 | 23,784 | 19,890 |
Total Net Operating Income | 7,641 | 5,789 | 15,030 | 11,396 |
Office Nashville, TN [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 21,770 | 20,182 | 43,586 | 39,787 |
Total Net Operating Income | 15,480 | 13,999 | 30,712 | 27,152 |
Office Orlando, FL [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 10,948 | 9,148 | 21,782 | 18,068 |
Total Net Operating Income | 6,348 | 5,346 | 12,831 | 10,722 |
Office Pittsburgh, PA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 14,719 | 14,014 | 29,268 | 27,771 |
Total Net Operating Income | 8,670 | 7,988 | 16,632 | 15,181 |
Office Raleigh, NC [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 25,541 | 22,538 | 48,982 | 44,029 |
Total Net Operating Income | 18,358 | 16,326 | 34,629 | 31,358 |
Office Richmond, VA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 10,203 | 12,020 | 20,787 | 23,763 |
Total Net Operating Income | 6,932 | 8,265 | 13,812 | 15,941 |
Office Tampa, FL [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 18,602 | 17,129 | 37,029 | 33,756 |
Total Net Operating Income | 11,020 | 10,031 | 22,240 | 20,066 |
Total Retail Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 9,140 | 9,366 | 17,703 | 18,584 |
Total Net Operating Income | 5,351 | 5,764 | 10,063 | 11,029 |
Retail Kansas City, MO [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 9,140 | 9,366 | 17,703 | 18,584 |
Total Net Operating Income | 5,351 | 5,764 | 10,063 | 11,029 |
Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 3,012 | 3,210 | 5,936 | 6,102 |
Total Net Operating Income | $ 2,166 | $ 2,281 | $ 4,272 | $ 4,232 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jul. 23, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Subsequent Event [Line Items] | |||||
Gain on disposition of property | $ 2,412 | $ 5,947 | $ 3,569 | $ 5,947 | |
3Q15 Building Dispositions [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Purchase price of real estate | $ 15,300 | ||||
Gain on disposition of property | $ 6,500 |