Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 17, 2016 | |
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 | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 100,204,106 | |
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 | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Real estate assets, at cost: | ||
Land | $ 474,375 | $ 443,705 |
Buildings and tenant improvements | 4,278,303 | 4,063,328 |
Development in-process | 227,573 | 194,050 |
Land held for development | 79,603 | 68,244 |
Total real estate assets | 5,059,854 | 4,769,327 |
Less-accumulated depreciation | (1,098,492) | (1,007,104) |
Net real estate assets | 3,961,362 | 3,762,223 |
Real estate and other assets, net, held for sale | 260 | 240,948 |
Cash and cash equivalents | 6,387 | 5,036 |
Restricted cash | 37,763 | 16,769 |
Accounts receivable, net of allowance of $791 and $928, respectively | 26,756 | 29,077 |
Mortgages and notes receivable, net of allowance of $0 and $287, respectively | 9,525 | 2,096 |
Accrued straight-line rents receivable, net of allowance of $703 and $257, respectively | 167,503 | 150,392 |
Investments in and advances to unconsolidated affiliates | 18,697 | 20,676 |
Deferred leasing costs, net of accumulated amortization of $136,292 and $115,172, respectively | 218,976 | 231,765 |
Prepaid expenses and other assets, net of accumulated amortization of $20,008 and $17,830, respectively | 28,581 | 26,649 |
Total Assets | 4,475,810 | 4,485,631 |
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Liabilities, Redeemable Operating Partnership Units and Capital: | ||
Mortgages and notes payable, net | 1,901,066 | 2,491,813 |
Accounts payable, accrued expenses and other liabilities | 258,638 | 233,988 |
Liabilities held for sale | 0 | 14,119 |
Total Liabilities | 2,159,704 | 2,739,920 |
Commitments and contingencies | ||
Noncontrolling interests in the Operating Partnership | 148,005 | 126,429 |
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), 28,920 and 29,050 shares issued and outstanding, respectively | 28,920 | 29,050 |
Common Stock, $.01 par value, 200,000,000 authorized shares; 100,204,106 and 96,091,932 shares issued and outstanding, respectively | 1,002 | 961 |
Additional paid-in capital | 2,780,443 | 2,598,242 |
Distributions in excess of net income available for common stockholders | (650,954) | (1,023,135) |
Accumulated other comprehensive loss | (9,260) | (3,811) |
Total Stockholders’ Equity | 2,150,151 | 1,601,307 |
Noncontrolling interests in consolidated affiliates | 17,950 | 17,975 |
Total Equity/Capital | 2,168,101 | 1,619,282 |
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Capital | 4,475,810 | 4,485,631 |
Highwoods Realty Limited Partnership [Member] | ||
Real estate assets, at cost: | ||
Land | 474,375 | 443,705 |
Buildings and tenant improvements | 4,278,303 | 4,063,328 |
Development in-process | 227,573 | 194,050 |
Land held for development | 79,603 | 68,244 |
Total real estate assets | 5,059,854 | 4,769,327 |
Less-accumulated depreciation | (1,098,492) | (1,007,104) |
Net real estate assets | 3,961,362 | 3,762,223 |
Real estate and other assets, net, held for sale | 260 | 240,948 |
Cash and cash equivalents | 6,387 | 5,036 |
Restricted cash | 37,763 | 16,769 |
Accounts receivable, net of allowance of $791 and $928, respectively | 26,756 | 29,077 |
Mortgages and notes receivable, net of allowance of $0 and $287, respectively | 9,525 | 2,096 |
Accrued straight-line rents receivable, net of allowance of $703 and $257, respectively | 167,503 | 150,392 |
Investments in and advances to unconsolidated affiliates | 18,697 | 20,676 |
Deferred leasing costs, net of accumulated amortization of $136,292 and $115,172, respectively | 218,976 | 231,765 |
Prepaid expenses and other assets, net of accumulated amortization of $20,008 and $17,830, respectively | 28,581 | 26,649 |
Total Assets | 4,475,810 | 4,485,631 |
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Liabilities, Redeemable Operating Partnership Units and Capital: | ||
Mortgages and notes payable, net | 1,901,066 | 2,491,813 |
Accounts payable, accrued expenses and other liabilities | 258,638 | 233,988 |
Liabilities held for sale | 0 | 14,119 |
Total Liabilities | 2,159,704 | 2,739,920 |
Commitments and contingencies | ||
Redeemable Operating Partnership Units: | ||
Common Units, 2,839,704 and 2,899,752 outstanding, respectively | 148,005 | 126,429 |
Series A Preferred Units (liquidation preference $1,000 per unit), 28,920 and 29,050 units issued and outstanding, respectively | 28,920 | 29,050 |
Total Redeemable Operating Partnership Units | 176,925 | 155,479 |
Equity/Capital: | ||
General partner Common Units, 1,026,350 and 985,829 outstanding, respectively | 21,303 | 15,759 |
Limited partner Common Units, 98,768,947 and 94,697,294 outstanding, respectively | 2,109,188 | 1,560,309 |
Accumulated other comprehensive loss | (9,260) | (3,811) |
Noncontrolling interests in consolidated affiliates | 17,950 | 17,975 |
Total Equity/Capital | 2,139,181 | 1,590,232 |
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Capital | $ 4,475,810 | $ 4,485,631 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Assets: | ||
Accounts receivable allowance | $ 791 | $ 928 |
Mortgages and notes receivable allowance | 0 | 287 |
Accrued straight-line rents receivable allowance | 703 | 257 |
Deferred leasing costs, accumulated amortization | 136,292 | 115,172 |
Prepaid expenses and other assets, accumulated amortization | $ 20,008 | $ 17,830 |
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) | 28,920 | 29,050 |
Series A Preferred Stock, shares outstanding (in shares) | 28,920 | 29,050 |
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) | 100,204,106 | 96,091,932 |
Common Stock, shares outstanding (in shares) | 100,204,106 | 96,091,932 |
Highwoods Realty Limited Partnership [Member] | ||
Assets: | ||
Accounts receivable allowance | $ 791 | $ 928 |
Mortgages and notes receivable allowance | 0 | 287 |
Accrued straight-line rents receivable allowance | 703 | 257 |
Deferred leasing costs, accumulated amortization | 136,292 | 115,172 |
Prepaid expenses and other assets, accumulated amortization | $ 20,008 | $ 17,830 |
Redeemable Operating Partnership Units: [Abstract] | ||
Redeemable Common Units outstanding (in shares) | 2,839,704 | 2,899,752 |
Series A Preferred Units, liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 |
Series A Preferred Units, issued (in shares) | 28,920 | 29,050 |
Series A Preferred Units, outstanding (in shares) | 28,920 | 29,050 |
Common Units: [Abstract] | ||
General partners' capital account, units outstanding (in shares) | 1,026,350 | 985,829 |
Limited partners' capital account, units outstanding (in shares) | 98,768,947 | 94,697,294 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Rental and other revenues | $ 166,269 | $ 150,766 | $ 497,988 | $ 444,545 | |
Operating expenses: | |||||
Rental property and other expenses | 58,620 | 54,430 | 173,715 | 159,314 | |
Depreciation and amortization | 52,923 | 50,963 | 161,734 | 145,758 | |
General and administrative | 9,863 | 8,990 | 29,327 | 28,898 | |
Total operating expenses | 121,406 | 114,383 | 364,776 | 333,970 | |
Interest expense: | |||||
Contractual | 17,722 | 20,484 | 56,111 | 61,783 | |
Amortization of debt issuance costs | 844 | 873 | 2,645 | 2,501 | |
Financing obligation | 0 | 0 | 0 | 162 | |
Total interest expense | 18,566 | 21,357 | 58,756 | 64,446 | |
Other income: | |||||
Interest and other income | 833 | 379 | 1,884 | 1,481 | |
Losses on debt extinguishment | 0 | 0 | 0 | (220) | |
Total other income | 833 | 379 | 1,884 | 1,261 | |
Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates | 27,130 | 15,405 | 76,340 | 47,390 | |
Gains on disposition of property | 3,902 | 7,012 | 14,160 | 10,581 | |
Gain on disposition of investment in unconsolidated affiliate | 0 | 4,155 | 0 | 4,155 | |
Equity in earnings of unconsolidated affiliates | 2,808 | 780 | 5,010 | 4,367 | |
Income from continuing operations | 33,840 | 27,352 | 95,510 | 66,493 | |
Discontinued operations: | |||||
Income from discontinued operations | 0 | 4,265 | 4,097 | 12,850 | |
Net gains on disposition of discontinued operations | 0 | 0 | 414,496 | 0 | |
Total income from discontinued operations | 0 | 4,265 | 418,593 | 12,850 | |
Net income | 33,840 | 31,617 | 514,103 | 79,343 | |
Net (income) attributable to noncontrolling interests in the Operating Partnership | (926) | (918) | (14,876) | (2,296) | |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (319) | (324) | (941) | (948) | |
Dividends on Preferred Stock | (624) | (626) | (1,877) | (1,879) | |
Net income available for common stockholders | $ 31,971 | $ 29,749 | $ 496,409 | $ 74,220 | |
Earnings per Common Share – basic: | |||||
Income from continuing operations available for common stockholders (in dollars per share) | $ 0.32 | $ 0.27 | $ 0.92 | $ 0.66 | |
Income from discontinued operations available for common stockholders (in dollars per share) | 0 | 0.04 | 4.16 | 0.13 | |
Net income available for common stockholders (in dollars per share) | $ 0.32 | $ 0.31 | $ 5.08 | $ 0.79 | |
Weighted average Common Shares outstanding - basic (in shares) | 98,973 | 94,693 | 97,669 | 93,996 | |
Earnings per Common Share - diluted: | |||||
Income from continuing operations available for common stockholders (in dollars per share) | $ 0.32 | $ 0.27 | $ 0.92 | $ 0.66 | |
Income from discontinued operations available for common stockholders (in dollars per share) | 0 | 0.04 | 4.16 | 0.13 | |
Net income available for common stockholders (in dollars per share) | $ 0.32 | $ 0.31 | $ 5.08 | $ 0.79 | |
Weighted average Common Shares outstanding - diluted (in shares) | [1] | 101,939 | 97,661 | 100,645 | 97,003 |
Dividends declared per Common Share (in dollars per share) | $ 0.425 | $ 0.425 | $ 1.275 | $ 1.275 | |
Net income available for common stockholders: | |||||
Income from continuing operations available for common stockholders | $ 31,971 | $ 25,612 | $ 90,081 | $ 61,759 | |
Income from discontinued operations available for common stockholders | 0 | 4,137 | 406,328 | 12,461 | |
Net income available for common stockholders | 31,971 | 29,749 | 496,409 | 74,220 | |
Highwoods Realty Limited Partnership [Member] | |||||
Rental and other revenues | 166,269 | 150,766 | 497,988 | 444,545 | |
Operating expenses: | |||||
Rental property and other expenses | 58,620 | 54,430 | 173,715 | 159,314 | |
Depreciation and amortization | 52,923 | 50,963 | 161,734 | 145,758 | |
General and administrative | 9,863 | 8,990 | 29,327 | 28,898 | |
Total operating expenses | 121,406 | 114,383 | 364,776 | 333,970 | |
Interest expense: | |||||
Contractual | 17,722 | 20,484 | 56,111 | 61,783 | |
Amortization of debt issuance costs | 844 | 873 | 2,645 | 2,501 | |
Financing obligation | 0 | 0 | 0 | 162 | |
Total interest expense | 18,566 | 21,357 | 58,756 | 64,446 | |
Other income: | |||||
Interest and other income | 833 | 379 | 1,884 | 1,481 | |
Losses on debt extinguishment | 0 | 0 | 0 | (220) | |
Total other income | 833 | 379 | 1,884 | 1,261 | |
Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates | 27,130 | 15,405 | 76,340 | 47,390 | |
Gains on disposition of property | 3,902 | 7,012 | 14,160 | 10,581 | |
Gain on disposition of investment in unconsolidated affiliate | 0 | 4,155 | 0 | 4,155 | |
Equity in earnings of unconsolidated affiliates | 2,808 | 780 | 5,010 | 4,367 | |
Income from continuing operations | 33,840 | 27,352 | 95,510 | 66,493 | |
Discontinued operations: | |||||
Income from discontinued operations | 0 | 4,265 | 4,097 | 12,850 | |
Net gains on disposition of discontinued operations | 0 | 0 | 414,496 | 0 | |
Total income from discontinued operations | 0 | 4,265 | 418,593 | 12,850 | |
Net income | 33,840 | 31,617 | 514,103 | 79,343 | |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (319) | (324) | (941) | (948) | |
Distributions on Preferred Units | (624) | (626) | (1,877) | (1,879) | |
Net income available for common unitholders | $ 32,897 | $ 30,667 | $ 511,285 | $ 76,516 | |
Earnings per Common Unit - basic: | |||||
Income from continuing operations available for common unitholders (in dollars per share) | $ 0.32 | $ 0.27 | $ 0.93 | $ 0.66 | |
Income from discontinued operations available for common unitholders (in dollars per share) | 0 | 0.05 | 4.18 | 0.13 | |
Net income available for common unitholders (in dollars per share) | $ 0.32 | $ 0.32 | $ 5.11 | $ 0.79 | |
Weighted average Common Units outstanding - basic (in shares) | 101,422 | 97,194 | 100,142 | 96,505 | |
Earnings per Common Unit - diluted: | |||||
Income from continuing operations available for common unitholders (in dollars per share) | $ 0.32 | $ 0.27 | $ 0.92 | $ 0.66 | |
Income from discontinued operations available for common unitholders (in dollars per share) | 0 | 0.05 | 4.18 | 0.13 | |
Net income available for common unitholders (in dollars per share) | $ 0.32 | $ 0.32 | $ 5.10 | $ 0.79 | |
Weighted average Common Units outstanding - diluted (in shares) | [2] | 101,530 | 97,252 | 100,236 | 96,594 |
Distributions declared per Common Unit (in dollars per unit) | $ 0.425 | $ 0.425 | $ 1.275 | $ 1.275 | |
Net income available for common unitholders: | |||||
Income from continuing operations available for common unitholders | $ 32,897 | $ 26,402 | $ 92,692 | $ 63,666 | |
Income from discontinued operations available for common unitholders | 0 | 4,265 | 418,593 | 12,850 | |
Net income available for common unitholders | $ 32,897 | $ 30,667 | $ 511,285 | $ 76,516 | |
[1] | Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable. | ||||
[2] | Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Comprehensive income: | ||||
Net income | $ 33,840 | $ 31,617 | $ 514,103 | $ 79,343 |
Other comprehensive income/(loss): | ||||
Unrealized gains/(losses) on tax increment financing bond | 0 | (7) | 0 | 187 |
Unrealized gains/(losses) on cash flow hedges | 1,610 | (3,021) | (7,785) | (5,666) |
Amortization of cash flow hedges | 758 | 932 | 2,336 | 2,781 |
Total other comprehensive income/(loss) | 2,368 | (2,096) | (5,449) | (2,698) |
Total comprehensive income | 36,208 | 29,521 | 508,654 | 76,645 |
Less-comprehensive (income) attributable to noncontrolling interests | (1,245) | (1,242) | (15,817) | (3,244) |
Comprehensive income attributable to common stockholders/Comprehensive income attributable to common unitholders | 34,963 | 28,279 | 492,837 | 73,401 |
Highwoods Realty Limited Partnership [Member] | ||||
Comprehensive income: | ||||
Net income | 33,840 | 31,617 | 514,103 | 79,343 |
Other comprehensive income/(loss): | ||||
Unrealized gains/(losses) on tax increment financing bond | 0 | (7) | 0 | 187 |
Unrealized gains/(losses) on cash flow hedges | 1,610 | (3,021) | (7,785) | (5,666) |
Amortization of cash flow hedges | 758 | 932 | 2,336 | 2,781 |
Total other comprehensive income/(loss) | 2,368 | (2,096) | (5,449) | (2,698) |
Total comprehensive income | 36,208 | 29,521 | 508,654 | 76,645 |
Less-comprehensive (income) attributable to noncontrolling interests | (319) | (324) | (941) | (948) |
Comprehensive income attributable to common stockholders/Comprehensive income attributable to common unitholders | $ 35,889 | $ 29,197 | $ 507,713 | $ 75,697 |
Consolidated Statements of Equi
Consolidated Statements of Equity/Capital - USD ($) $ in Thousands | Total | Highwoods Realty Limited Partnership [Member] | Common Stock [Member] | Series A Cumulative Redeemable Preferred Shares [Member] | General Partners' Common Units [Member]Highwoods Realty Limited Partnership [Member] | Limited Partners' 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, 2014 | 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 | 93,216 | 932 | 92,284 | 0 | 0 | |||||||
Distributions paid on Common Units | (122,929) | (1,230) | (121,699) | 0 | 0 | |||||||
Distributions paid on Preferred Units | (1,879) | (19) | (1,860) | 0 | 0 | |||||||
Issuances of Common Stock, net of issuance costs and tax withholdings - Shares | 2,268,380 | |||||||||||
Issuances of Common Stock, net of issuance costs and tax withholdings | 93,216 | $ 23 | 0 | 93,193 | 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 | (119,729) | 0 | 0 | 0 | 0 | 0 | (119,729) | |||||
Dividends on Preferred Stock | (1,879) | 0 | 0 | 0 | 0 | 0 | (1,879) | |||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | 14,649 | 0 | 0 | 14,649 | 0 | 0 | 0 | |||||
Distributions to noncontrolling interests in consolidated affiliates | (1,070) | (1,070) | $ 0 | 0 | 0 | 0 | 0 | 0 | 0 | (1,070) | (1,070) | 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 | (1,703) | |||||||||||
Share-based compensation expense, net of forfeitures | 5,996 | 5,996 | $ 1 | 0 | 60 | 5,936 | 5,995 | 0 | 0 | 0 | 0 | 0 |
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner | 16,567 | 166 | 16,401 | 0 | 0 | |||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | (2,296) | 0 | 0 | 0 | 0 | 0 | (2,296) | |||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | 0 | 0 | 0 | 0 | (9) | (939) | 0 | 0 | 0 | 948 | 948 | (948) |
Comprehensive income: | ||||||||||||
Net income | 79,343 | 79,343 | 0 | 0 | 793 | 78,550 | 0 | 0 | 0 | 0 | 0 | 79,343 |
Other comprehensive loss | (2,698) | (2,698) | $ 0 | 0 | 0 | 0 | 0 | (2,698) | (2,698) | 0 | 0 | 0 |
Total comprehensive income | 76,645 | 76,645 | ||||||||||
Balance (in shares) at Sep. 30, 2015 | 95,329,758 | |||||||||||
Balance at Sep. 30, 2015 | $ 1,617,819 | 1,588,769 | $ 953 | 29,050 | 15,771 | 1,561,621 | 2,579,318 | (6,610) | (6,610) | 17,987 | 17,987 | (1,002,879) |
Balance (in shares) at Dec. 31, 2015 | 96,091,932 | 96,091,932 | ||||||||||
Balance at Dec. 31, 2015 | $ 1,619,282 | 1,590,232 | $ 961 | 29,050 | 15,759 | 1,560,309 | 2,598,242 | (3,811) | (3,811) | 17,975 | 17,975 | (1,023,135) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Issuances of Common Units, net of issuance costs and tax withholdings | 187,214 | 1,872 | 185,342 | 0 | 0 | |||||||
Distributions paid on Common Units | (127,391) | (1,274) | (126,117) | 0 | 0 | |||||||
Distributions paid on Preferred Units | (1,877) | (19) | (1,858) | 0 | 0 | |||||||
Issuances of Common Stock, net of issuance costs and tax withholdings - Shares | 3,930,262 | |||||||||||
Issuances of Common Stock, net of issuance costs and tax withholdings | 187,214 | $ 39 | 0 | 187,175 | 0 | 0 | 0 | |||||
Conversions of Common Units to Common Stock - Shares | 60,048 | |||||||||||
Conversions of Common Units to Common Stock | 3,006 | $ 0 | 0 | 3,006 | 0 | 0 | 0 | |||||
Dividends on Common Stock | (124,228) | 0 | 0 | 0 | 0 | 0 | (124,228) | |||||
Dividends on Preferred Stock | (1,877) | 0 | 0 | 0 | 0 | 0 | (1,877) | |||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | (13,390) | 0 | 0 | (13,390) | 0 | 0 | 0 | |||||
Distributions to noncontrolling interests in consolidated affiliates | (966) | (966) | $ 0 | 0 | 0 | 0 | 0 | 0 | 0 | (966) | (966) | 0 |
Issuances of restricted stock - shares | 130,752 | |||||||||||
Issuances of restricted stock | 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | |||||
Redemptions/repurchases of Preferred Stock | (130) | $ 0 | (130) | 0 | 0 | 0 | 0 | |||||
Share-based compensation expense, net of forfeitures - shares | (8,888) | |||||||||||
Share-based compensation expense, net of forfeitures | 5,412 | 5,412 | $ 2 | 0 | 54 | 5,358 | 5,410 | 0 | 0 | 0 | 0 | 0 |
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner | (22,097) | (221) | (21,876) | 0 | 0 | |||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | (14,876) | 0 | 0 | 0 | 0 | 0 | (14,876) | |||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | 0 | 0 | 0 | 0 | (9) | (932) | 0 | 0 | 0 | 941 | 941 | (941) |
Comprehensive income: | ||||||||||||
Net income | 514,103 | 514,103 | 0 | 0 | 5,141 | 508,962 | 0 | 0 | 0 | 0 | 0 | 514,103 |
Other comprehensive loss | (5,449) | (5,449) | $ 0 | 0 | 0 | 0 | 0 | (5,449) | (5,449) | 0 | 0 | 0 |
Total comprehensive income | $ 508,654 | 508,654 | ||||||||||
Balance (in shares) at Sep. 30, 2016 | 100,204,106 | 100,204,106 | ||||||||||
Balance at Sep. 30, 2016 | $ 2,168,101 | $ 2,139,181 | $ 1,002 | $ 28,920 | $ 21,303 | $ 2,109,188 | $ 2,780,443 | $ (9,260) | $ (9,260) | $ 17,950 | $ 17,950 | $ (650,954) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating activities: | ||
Net income | $ 514,103 | $ 79,343 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 161,734 | 156,200 |
Amortization of lease incentives and acquisition-related intangible assets and liabilities | (1,599) | 214 |
Share-based compensation expense | 5,412 | 5,996 |
Allowance for losses on accounts and accrued straight-line rents receivable | 1,846 | 1,851 |
Accrued interest on mortgages and notes receivable | (364) | (313) |
Amortization of debt issuance costs | 2,645 | 2,501 |
Amortization of cash flow hedges | 2,336 | 2,781 |
Amortization of mortgages and notes payable fair value adjustments | (175) | 7 |
Losses on debt extinguishment | 0 | 220 |
Net gains on disposition of property | (428,656) | (10,581) |
Gain on disposition of investment in unconsolidated affiliate | 0 | (4,155) |
Equity in earnings of unconsolidated affiliates | (5,010) | (4,367) |
Changes in financing obligation | 0 | 162 |
Distributions of earnings from unconsolidated affiliates | 3,936 | 4,099 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 4,798 | 1,716 |
Prepaid expenses and other assets | (2,243) | (3,475) |
Accrued straight-line rents receivable | (18,931) | (16,955) |
Accounts payable, accrued expenses and other liabilities | (7,447) | (5,834) |
Net cash provided by operating activities | 232,385 | 209,410 |
Investing activities: | ||
Investments in acquired real estate and related intangible assets, net of cash acquired | (110,249) | (408,634) |
Investments in development in-process | (122,839) | (87,222) |
Investments in tenant improvements and deferred leasing costs | (63,715) | (85,234) |
Investments in building improvements | (51,714) | (38,295) |
Net proceeds from disposition of real estate assets | 680,994 | 22,781 |
Net proceeds from disposition of investment in unconsolidated affiliate | 0 | 6,919 |
Distributions of capital from unconsolidated affiliates | 2,639 | 10,227 |
Investments in mortgages and notes receivable | (7,934) | (1,772) |
Repayments of mortgages and notes receivable | 869 | 9,301 |
Investments in and advances to unconsolidated affiliates | (105) | (384) |
Repayments from unconsolidated affiliates | 448 | 20,800 |
Changes in restricted cash and other investing activities | (23,310) | (12,582) |
Net cash provided by/(used in) investing activities | 305,084 | (564,095) |
Financing activities: | ||
Dividends on Common Stock | (124,228) | (119,729) |
Redemptions/repurchases of Preferred Stock | (130) | (10) |
Dividends on Preferred Stock | (1,877) | (1,879) |
Distributions to noncontrolling interests in the Operating Partnership | (3,684) | (3,721) |
Distributions to noncontrolling interests in consolidated affiliates | (966) | (1,070) |
Proceeds from the issuance of Common Stock | 194,518 | 98,485 |
Costs paid for the issuance of Common Stock | (2,888) | (1,518) |
Repurchase of shares related to tax withholdings | (4,416) | (3,751) |
Borrowings on revolving credit facility | 257,800 | 393,900 |
Repayments of revolving credit facility | (528,800) | (337,900) |
Borrowings on mortgages and notes payable | 75,000 | 375,000 |
Repayments of mortgages and notes payable | (395,455) | (43,076) |
Payments on financing obligation | 0 | (1,722) |
Changes in debt issuance costs and other financing activities | (992) | (1,972) |
Net cash provided by/(used in) financing activities | (536,118) | 351,037 |
Net increase/(decrease) in cash and cash equivalents | 1,351 | (3,648) |
Cash and cash equivalents at beginning of the period | 5,036 | 8,832 |
Cash and cash equivalents at end of the period | 6,387 | 5,184 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest, net of amounts capitalized | 58,138 | 62,661 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Unrealized losses on cash flow hedges | (7,785) | (5,666) |
Conversions of Common Units to Common Stock | 3,006 | 1,206 |
Changes in accrued capital expenditures | 25,037 | 1,759 |
Write-off of fully depreciated real estate assets | 28,783 | 44,742 |
Write-off of fully amortized debt issuance and leasing costs | 16,991 | 27,658 |
Adjustment of noncontrolling interests in the Operating Partnership to fair value | 13,390 | (14,649) |
Unrealized gains on tax increment financing bond | 0 | 187 |
Assumption of mortgages and notes payable related to acquisition activities | 0 | 19,277 |
Contingent consideration in connection with the acquisition of land | 0 | 900 |
Highwoods Realty Limited Partnership [Member] | ||
Operating activities: | ||
Net income | 514,103 | 79,343 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 161,734 | 156,200 |
Amortization of lease incentives and acquisition-related intangible assets and liabilities | (1,599) | 214 |
Share-based compensation expense | 5,412 | 5,996 |
Allowance for losses on accounts and accrued straight-line rents receivable | 1,846 | 1,851 |
Accrued interest on mortgages and notes receivable | (364) | (313) |
Amortization of debt issuance costs | 2,645 | 2,501 |
Amortization of cash flow hedges | 2,336 | 2,781 |
Amortization of mortgages and notes payable fair value adjustments | (175) | 7 |
Losses on debt extinguishment | 0 | 220 |
Net gains on disposition of property | (428,656) | (10,581) |
Gain on disposition of investment in unconsolidated affiliate | 0 | (4,155) |
Equity in earnings of unconsolidated affiliates | (5,010) | (4,367) |
Changes in financing obligation | 0 | 162 |
Distributions of earnings from unconsolidated affiliates | 3,523 | 4,099 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 4,798 | 1,716 |
Prepaid expenses and other assets | (2,243) | (3,475) |
Accrued straight-line rents receivable | (18,931) | (16,955) |
Accounts payable, accrued expenses and other liabilities | (7,447) | (5,748) |
Net cash provided by operating activities | 231,972 | 209,496 |
Investing activities: | ||
Investments in acquired real estate and related intangible assets, net of cash acquired | (110,249) | (408,634) |
Investments in development in-process | (122,839) | (87,222) |
Investments in tenant improvements and deferred leasing costs | (63,715) | (85,234) |
Investments in building improvements | (51,714) | (38,295) |
Net proceeds from disposition of real estate assets | 680,994 | 22,781 |
Net proceeds from disposition of investment in unconsolidated affiliate | 0 | 6,919 |
Distributions of capital from unconsolidated affiliates | 3,052 | 10,227 |
Investments in mortgages and notes receivable | (7,934) | (1,772) |
Repayments of mortgages and notes receivable | 869 | 9,301 |
Investments in and advances to unconsolidated affiliates | (105) | (384) |
Repayments from unconsolidated affiliates | 448 | 20,800 |
Changes in restricted cash and other investing activities | (23,310) | (12,582) |
Net cash provided by/(used in) investing activities | 305,497 | (564,095) |
Financing activities: | ||
Distributions on Common Units | (127,391) | (122,929) |
Redemptions/repurchases of Preferred Units | (130) | (10) |
Distributions on Preferred Units | (1,877) | (1,879) |
Distributions to noncontrolling interests in consolidated affiliates | (966) | (1,070) |
Proceeds from the issuance of Common Units | 194,518 | 98,485 |
Costs paid for the issuance of Common Units | (2,888) | (1,518) |
Repurchase of units related to tax withholdings | (4,416) | (3,751) |
Borrowings on revolving credit facility | 257,800 | 393,900 |
Repayments of revolving credit facility | (528,800) | (337,900) |
Borrowings on mortgages and notes payable | 75,000 | 375,000 |
Repayments of mortgages and notes payable | (395,455) | (43,076) |
Payments on financing obligation | 0 | (1,722) |
Changes in debt issuance costs and other financing activities | (1,513) | (2,685) |
Net cash provided by/(used in) financing activities | (536,118) | 350,845 |
Net increase/(decrease) in cash and cash equivalents | 1,351 | (3,754) |
Cash and cash equivalents at beginning of the period | 5,036 | 8,938 |
Cash and cash equivalents at end of the period | 6,387 | 5,184 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest, net of amounts capitalized | 58,138 | 62,661 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Unrealized losses on cash flow hedges | (7,785) | (5,666) |
Changes in accrued capital expenditures | 25,037 | 1,759 |
Write-off of fully depreciated real estate assets | 28,783 | 44,742 |
Write-off of fully amortized debt issuance and leasing costs | 16,991 | 27,658 |
Adjustment of Redeemable Common Units to fair value | 21,576 | (17,280) |
Unrealized gains on tax increment financing bond | 0 | 187 |
Assumption of mortgages and notes payable related to acquisition activities | 0 | 19,277 |
Contingent consideration in connection with the acquisition of land | $ 0 | $ 900 |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
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 September 30, 2016 , we owned or had an interest in 31.1 million rentable square feet of in-service properties, 1.1 million rentable square feet of properties under development and approximately 450 acres of development land. The Company is the sole general partner of the Operating Partnership. At September 30, 2016 , the Company owned all of the Preferred Units and 99.8 million , or 97.2% , of the Common Units in the Operating Partnership. Limited partners owned the remaining 2.8 million Common Units. During the nine months ended September 30, 2016 , the Company redeemed 60,048 Common Units for a like number of shares of Common Stock. Common Stock Offerings During the three and nine months ended September 30, 2016 , the Company issued 1,547,457 and 3,624,528 shares, respectively, of Common Stock under its equity distribution agreements at an average gross sales price of $52.79 and $49.67 per share, respectively, and received net proceeds, after sales commissions, of $80.5 million and $177.3 million , respectively. As a result of this activity and the redemptions discussed above, the percentage of Common Units owned by the Company increased from 97.1% at December 31, 2015 to 97.2% at September 30, 2016 . Basis of Presentation Our Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Our Consolidated Statements of Income for the three and nine months ended September 30, 2015 were retrospectively revised from previously reported amounts to reclassify the operations for those properties classified as discontinued operations. The Company's Consolidated Financial Statements include the Operating Partnership, wholly owned subsidiaries and those entities in which the Company has the controlling interest. The Operating Partnership's Consolidated Financial Statements include wholly owned subsidiaries and those entities in which the Operating Partnership has the controlling interest. In addition, we consolidate those entities deemed to be variable interest entities in which we are determined to be the primary beneficiary. At September 30, 2016 , we had involvement with, but are not the primary beneficiary in, an entity that we concluded to be a variable interest entity. All intercompany transactions and accounts have been eliminated. 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 2015 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 our Consolidated Financial Statements and accompanying notes. Actual results could differ from those estimates. 1. Description of Business and Significant Accounting Policies – Continued Recently Issued Accounting Standards The Financial Accounting Standards Board ("FASB") recently issued an accounting standards update ("ASU") 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 ASU is required to be adopted in 2018. 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 ASU. The FASB recently issued an ASU that amended consolidation requirements. The amendments significantly change the consolidation analysis required under GAAP and require companies to reevaluate all previous consolidation conclusions. We adopted the ASU as of January 1, 2016 and there was no impact to consolidated entities included in our Consolidated Financial Statements. However, in reevaluating our previous consolidation conclusions upon adoption of the ASU, we determined our 12.5% equity interest in an unconsolidated affiliate to be an interest in a variable interest entity because certain of its limited partners do not have substantive kick-out or participating rights. We do not qualify as the primary beneficiary since our obligation to absorb losses and receive benefits of the variable interest entity is less than that of the other general partner and we do not have the power to direct the activities that most significantly affect the economic performance of the entity. Accordingly, the entity is not consolidated. At September 30, 2016 , our maximum exposure to loss with respect to this arrangement is limited to the less than $0.1 million carrying value of our 12.5% investment in the unconsolidated affiliate. The FASB recently issued an ASU that requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability to which they relate, consistent with debt discounts, as opposed to being presented as assets. For debt issuance costs related to revolving credit facilities, the FASB allows the presentation of debt issuance costs as an asset. We adopted the ASU as of January 1, 2016 with retrospective application to our December 31, 2015 Consolidated Balance Sheets. The effect of the adoption was to reclassify debt issuance costs from deferred financing and leasing costs, net of accumulated amortization, as follows: $7.8 million to a contra account as a deduction from the related mortgages and notes payable and $2.1 million to prepaid expenses and other assets. There was no effect on our Consolidated Statements of Income. The FASB recently issued an ASU which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The ASU requires lessors to account for leases using an approach that is substantially equivalent to the existing guidance and is effective for reporting periods beginning in 2019 with early adoption permitted. We are in the process of evaluating this ASU. The FASB recently issued an ASU that requires, among other things, the use of a new current expected credit loss ("CECL") model in determining our allowances for doubtful accounts with respect to accounts receivable, accrued straight-line rents receivable and mortgages and notes receivable. The CECL model requires that we estimate our lifetime expected credit loss with respect to these receivables and record allowances that, when deducted from the balance of the receivables, represent the net amounts expected to be collected. We will also be required to disclose information about how we developed the allowances, including changes in the factors (e.g., portfolio mix, credit trends, unemployment, gross domestic product, etc.) that influenced our estimate of expected credit losses and the reasons for those changes. We will apply the ASU’s provisions as a cumulative-effect adjustment to retained earnings upon adoption in 2020. We are in the process of evaluating this ASU. The FASB recently issued an ASU that adds to and clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows. The ASU is required to be adopted in 2018 with retrospective application required. We are in the process of evaluating this ASU. |
Real Estate Assets
Real Estate Assets | 9 Months Ended |
Sep. 30, 2016 | |
Real Estate [Abstract] | |
Real Estate Assets | Real Estate Assets Acquisitions During the third quarter of 2016, we acquired a building in Raleigh, NC, which delivered in 2015 and encompasses 243,000 rentable square feet, for a net purchase price of $76.9 million . We expensed $0.3 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. During the third quarter of 2016, we also acquired: • fee simple title to the land underneath one of our buildings in Pittsburgh, PA that was previously subject to a ground lease for a purchase price of $18.5 million . We expensed $0.5 million of acquisition costs (included in general and administrative expenses) related to this acquisition; and • an acre of development land in Raleigh, NC for a purchase price, including capitalized acquisition costs, of $5.8 million . During the second quarter of 2016, we acquired 14 acres of development land in Nashville, TN for a purchase price, including capitalized acquisition costs, of $9.1 million . Pro Forma Disclosure The following table sets forth a summary of the fair value of the major assets acquired and liabilities assumed relating to the acquisition of two buildings in Atlanta, GA encompassing 896,000 rentable square feet during the third quarter of 2015: Total Purchase Price Allocation Real estate assets $ 275,639 Acquisition-related intangible assets (in deferred leasing costs) 23,722 Acquisition-related below market lease liabilities (in accounts payable, accrued expenses and other liabilities) (9,076 ) Total allocation $ 290,285 The following table sets forth the Company's revenues and net income, adjusted for interest expense, straight-line rental income, depreciation and amortization related to purchase price allocations and acquisition costs, assuming the above-referenced acquisition of two buildings in Atlanta, GA during the third quarter of 2015 had been completed as of January 1, 2014 : Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 Pro forma revenues $ 157,618 $ 465,476 Pro forma net income $ 33,354 $ 80,647 Pro forma net income available for common stockholders $ 31,486 $ 75,524 Pro forma earnings per share - basic $ 0.33 $ 0.80 Pro forma earnings per share - diluted $ 0.33 $ 0.80 2. Real Estate Assets - Continued Dispositions During the third quarter of 2016, we sold land for a sale price of $6.8 million and recorded a gain on disposition of property of $3.9 million . We deferred $0.4 million of gain related to a portion of the sale price that was escrowed for contingent future infrastructure work. During the second quarter of 2016, we sold a building for a sale price of $14.2 million and recorded a gain on disposition of property of $5.9 million . During the first quarter of 2016, we sold: • substantially all of our wholly-owned Country Club Plaza assets in Kansas City (which we refer to as the “Plaza assets”) for a sale price of $660.0 million (before closing credits to buyer of $4.8 million ). We recorded gains on disposition of discontinued operations of $414.5 million and a gain on disposition of property of $1.3 million related to the land; • a 32,000 square foot building for a sale price of $4.7 million (before closing credits to buyer of $0.1 million ) and recorded a gain on disposition of property of $1.1 million . The buyer, which leased 79% of the building, is a family business controlled by a director of the Company. The sale price exceeded the value set forth in an appraisal performed by a reputable independent commercial real estate services firm that has no relationship with the director or any of his affiliates; and • a building for a sale price of $6.4 million (before closing credits to buyer of $0.5 million ) and recorded a gain on disposition of property of $2.0 million . |
Mortgages and Notes Receivable
Mortgages and Notes Receivable | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Mortgages and Notes Receivable | Mortgages and Notes Receivable Mortgages and notes receivable were $9.5 million and $2.1 million at September 30, 2016 and December 31, 2015 , respectively. We evaluate the ability to collect our mortgages and notes receivable by monitoring the leasing statistics and/or market fundamentals of these assets. As of September 30, 2016 , 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 | 9 Months Ended |
Sep. 30, 2016 | |
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 Nine Months Ended 2016 2015 2016 2015 Income Statements: Rental and other revenues $ 10,357 $ 12,323 $ 32,339 $ 36,977 Expenses: Rental property and other expenses 4,201 5,985 13,489 17,683 Depreciation and amortization 2,459 3,193 7,862 9,418 Interest expense 1,264 1,645 3,983 5,826 Total expenses 7,924 10,823 25,334 32,927 Income before disposition of property 2,433 1,500 7,005 4,050 Gains on disposition of property 21,345 — 22,247 18,181 Net income $ 23,778 $ 1,500 $ 29,252 $ 22,231 4. Investments in and Advances to Unconsolidated Affiliates - Continued During the third quarter of 2016, 4600 Madison Associates, LP (a joint venture in which we own a 12.5% interest) sold a building to an unrelated third party for a sale price of $32.7 million and recorded a gain on disposition of property of $21.3 million . As our cost basis was different from the basis reflected at the joint venture level, we recorded $1.8 million of gain through equity in earnings of unconsolidated affiliates. Simultaneously with the sale, the joint venture used a portion of the proceeds to pay off all $6.3 million of its debt. During the first quarter of 2016, Concourse Center Associates, LLC (a joint venture in which we own a 50.0% interest) sold two buildings and land to an unrelated third party for an aggregate sale price of $11.0 million and recorded losses on disposition of property of $0.1 million . As our cost basis was different from the basis reflected at the joint venture level, we recorded $0.4 million of gains through equity in earnings of unconsolidated affiliates. Simultaneously with the sale, the joint venture repaid all $6.6 million of its debt. During the first quarter of 2016, 4600 Madison Associates, LP sold land to an unrelated third party for a sale price of $3.4 million and recorded a gain on disposition of property of $1.0 million . We recorded $0.1 million as our share of this gain through equity in earnings of unconsolidated affiliates. Simultaneously with the sale, the joint venture used all of the proceeds to pay down $3.4 million of its debt. |
Intangible Assets and Below Mar
Intangible Assets and Below Market Lease Liabilities | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Below Market Lease Liabilities | Intangible Assets and Below Market Lease Liabilities The following table sets forth total intangible assets and acquisition-related below market lease liabilities, net of accumulated amortization: September 30, December 31, Assets: Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets) $ 355,268 $ 346,937 Less accumulated amortization (136,292 ) (115,172 ) $ 218,976 $ 231,765 Liabilities (in accounts payable, accrued expenses and other liabilities): Acquisition-related below market lease liabilities $ 63,712 $ 63,830 Less accumulated amortization (23,675 ) (17,927 ) $ 40,037 $ 45,903 The following table sets forth amortization of intangible assets and below market lease liabilities: Three Months Ended Nine Months Ended 2016 2015 2016 2015 Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization) $ 10,111 $ 10,858 $ 33,177 $ 30,747 Amortization of lease incentives (in rental and other revenues) $ 273 $ 368 $ 1,374 $ 1,131 Amortization of acquisition-related intangible assets (in rental and other revenues) $ 901 $ 1,414 $ 2,904 $ 3,769 Amortization of acquisition-related intangible assets (in rental property and other expenses) $ 140 $ 140 $ 417 $ 416 Amortization of acquisition-related below market lease liabilities (in rental and other revenues) $ (1,734 ) $ (1,727 ) $ (6,294 ) $ (5,133 ) 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 Leasing Costs and Acquisition-Related Intangible Assets (in Depreciation and Amortization) Amortization of Lease Incentives (in Rental and Other Revenues) Amortization of Acquisition-Related Intangible Assets (in Rental and Other Revenues) Amortization of Acquisition-Related Intangible Assets (in Rental Property and Other Expenses) Amortization of Acquisition-Related Below Market Lease Liabilities (in Rental and Other Revenues) October 1 through December 31, 2016 $ 11,797 $ 358 $ 917 $ 137 $ (1,737 ) 2017 41,426 1,399 2,657 553 (6,231 ) 2018 34,194 1,294 1,713 553 (6,022 ) 2019 28,606 1,080 1,322 553 (5,549 ) 2020 23,983 805 1,002 525 (5,223 ) Thereafter 58,905 2,544 2,653 — (15,275 ) $ 198,911 $ 7,480 $ 10,264 $ 2,321 $ (40,037 ) Weighted average remaining amortization periods as of September 30, 2016 (in years) 6.7 7.4 6.2 4.2 7.5 The following table sets forth the intangible assets acquired and below market lease liabilities assumed as a result of 2016 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 at acquisition $ 122 $ 5,008 $ (428 ) Weighted average remaining amortization periods as of September 30, 2016 (in years) 9.8 10.2 11.2 |
Mortgages and Notes Payable
Mortgages and Notes Payable | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Mortgages and Notes Payable | Mortgages and Notes Payable The following table sets forth our mortgages and notes payable: September 30, December 31, Secured indebtedness $ 129,013 $ 175,281 Unsecured indebtedness 1,778,942 2,324,333 Less-unamortized debt issuance costs (6,889 ) (7,801 ) Total mortgages and notes payable, net $ 1,901,066 $ 2,491,813 At September 30, 2016 , our secured mortgage loans were collateralized by real estate assets with an aggregate undepreciated book value of $ 247.1 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 $ 28.0 million and $ 38.0 million outstanding under our revolving credit facility at September 30, 2016 and October 17, 2016 , respectively. At both September 30, 2016 and October 17, 2016 , we had $ 0.2 million of outstanding letters of credit, which reduces the availability on our revolving credit facility. As a result, the unused capacity of our revolving credit facility at September 30, 2016 and October 17, 2016 was $ 446.8 million and $ 436.8 million , respectively. During the second quarter of 2016, we prepaid without penalty the remaining $43.6 million balance on a secured mortgage loan with an effective interest rate of 7.5% that was originally scheduled to mature in August 2016 . During the second quarter of 2016, we executed a $150.0 million , 67 -month unsecured term loan facility. The term loan facility is originally scheduled to mature in January 2022 . The interest rate on the term loan facility at our current credit ratings is LIBOR plus 110 basis points . The purpose of the term loan facility is to repay amounts outstanding under our revolving credit facility and other general corporate purposes. There was $75.0 million outstanding under our term loan facility at both September 30, 2016 and October 17, 2016 . During the first quarter of 2016, we prepaid without penalty the $350.0 million balance on our unsecured bridge facility that was originally scheduled to mature in March 2016 . We are currently in compliance with financial covenants and other requirements with respect to our consolidated debt. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments During the first quarter of 2016, we obtained $150.0 million notional amount of forward-starting swaps that effectively lock the underlying 10 -year treasury rate at 1.90% with respect to a forecasted debt issuance expected to occur prior to March 15, 2017. The counterparties under the swaps are major financial institutions. 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 nine months ended September 30, 2016 and 2015 . We have no collateral requirements related to our interest rate swaps. Amounts reported in accumulated other comprehensive loss ("AOCL") related to derivatives will be reclassified to interest expense as interest payments are made on our variable-rate debt. During the period from October 1, 2016 through September 30, 2017 , we estimate that $2.5 million will be reclassified to interest expense. The following table sets forth the fair value of our derivatives: September 30, December 31, Derivatives: Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities: Interest rate swaps $ 8,701 $ 3,073 7. Derivative Financial Instruments - Continued The following table sets forth the effect of our cash flow hedges on AOCL and interest expense: Three Months Ended Nine Months Ended 2016 2015 2016 2015 Derivatives Designated as Cash Flow Hedges: Amount of unrealized gains/(losses) recognized in AOCL on derivatives (effective portion): Interest rate swaps $ 1,610 $ (3,021 ) $ (7,785 ) $ (5,666 ) Amount of losses reclassified out of AOCL into contractual interest expense (effective portion): Interest rate swaps $ 758 $ 932 $ 2,336 $ 2,781 |
Noncontrolling Interests
Noncontrolling Interests | 9 Months Ended |
Sep. 30, 2016 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests Noncontrolling Interests in Consolidated Affiliates At September 30, 2016 , 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: Nine Months Ended 2016 2015 Beginning noncontrolling interests in the Operating Partnership $ 126,429 $ 130,048 Adjustment of noncontrolling interests in the Operating Partnership to fair value 13,390 (14,649 ) Conversions of Common Units to Common Stock (3,006 ) (1,206 ) Net income attributable to noncontrolling interests in the Operating Partnership 14,876 2,296 Distributions to noncontrolling interests in the Operating Partnership (3,684 ) (3,721 ) Total noncontrolling interests in the Operating Partnership $ 148,005 $ 112,768 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 Nine Months Ended 2016 2015 2016 2015 Net income available for common stockholders $ 31,971 $ 29,749 $ 496,409 $ 74,220 Increase in additional paid in capital from conversions of Common Units 1,448 — 3,006 1,206 Change from net income available for common stockholders and transfers from noncontrolling interests $ 33,419 $ 29,749 $ 499,415 $ 75,426 |
Disclosure About Fair Value of
Disclosure About Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
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 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 interest rates (forward curves) derived from observed market interest rate curves. In addition, credit valuation adjustments are considered 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 asset included our tax increment financing bond, which was not routinely traded but whose fair value was 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 was 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 September 30, 2016: Assets: Mortgages and notes receivable, at fair value (1) $ 9,525 $ — $ 9,525 $ — Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 2,426 2,426 — — Total Assets $ 11,951 $ 2,426 $ 9,525 $ — Noncontrolling Interests in the Operating Partnership $ 148,005 $ 148,005 $ — $ — Liabilities: Mortgages and notes payable, net, at fair value (1) $ 1,941,317 $ — $ 1,941,317 $ — Interest rate swaps (in accounts payable, accrued expenses and other liabilities) 8,701 — 8,701 — Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 2,426 2,426 — — Total Liabilities $ 1,952,444 $ 2,426 $ 1,950,018 $ — Fair Value at December 31, 2015: Assets: Mortgages and notes receivable, at fair value (1) $ 2,096 $ — $ 2,096 $ — Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 2,736 2,736 — — Tax increment financing bond (in real estate and other assets, net, held for sale) (2) 11,197 — — 11,197 Total Assets $ 16,029 $ 2,736 $ 2,096 $ 11,197 Noncontrolling Interests in the Operating Partnership $ 126,429 $ 126,429 $ — $ — Liabilities: Mortgages and notes payable, net, at fair value (1) $ 2,517,589 $ — $ 2,517,589 $ — Interest rate swaps (in accounts payable, accrued expenses and other liabilities) 3,073 — 3,073 — Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 2,736 2,736 — — Financing obligation, at fair value (in liabilities held for sale) (1) (2) 7,402 — — 7,402 Total Liabilities $ 2,530,800 $ 2,736 $ 2,520,662 $ 7,402 __________ (1) Amounts recorded at historical cost on our Consolidated Balance Sheets at September 30, 2016 and December 31, 2015 . (2) Sold during the first quarter of 2016 in conjunction with the sales of the Plaza assets. 9. Disclosure About Fair Value of Financial Instruments - Continued The following table sets forth the changes in our Level 3 asset, which was recorded at fair value on our Consolidated Balance Sheets: Three Months Ended Nine Months Ended 2016 2015 2016 2015 Asset: Tax Increment Financing Bond: Beginning balance $ — $ 12,641 $ 11,197 $ 12,447 Assigned to the buyer of the Plaza assets — — (11,197 ) — Unrealized gains/(losses) (in AOCL) — (7 ) — 187 Ending balance $ — $ 12,634 $ — $ 12,634 During 2007, we acquired a tax increment financing bond associated with a parking garage developed by us, which was assigned in conjunction with the sales of the Plaza assets in the first quarter of 2016. The estimated fair value at the date of sale was equal to the outstanding principal amount due on the bond. The following table sets forth quantitative information about the unobservable input of our Level 3 asset, which was recorded at fair value on our Consolidated Balance Sheets: Valuation Technique Unobservable Input Rate as of December 31, 2015 Asset: Tax increment financing bond Income approach Discount rate 6.93% |
Share-Based Payments
Share-Based Payments | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Payments | Share-Based Payments During the nine months ended September 30, 2016 , the Company granted 244,664 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 $ 4.61 . During the nine months ended September 30, 2016 , the Company also granted 72,698 shares of time-based restricted stock and 58,054 shares of total return-based restricted stock with weighted average grant date fair values per share of $ 43.59 and $ 41.37 , respectively. We recorded share-based compensation expense of $0.9 million during each of the three months ended September 30, 2016 and 2015 and $ 5.4 million and $ 6.0 million during the nine months ended September 30, 2016 and 2015 , respectively. At September 30, 2016 , there was $5.9 million of total unrecognized share-based compensation costs, which will be recognized over a weighted average remaining contractual term of 2.4 years. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2016 | |
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 Nine Months Ended 2016 2015 2016 2015 Tax increment financing bond: Beginning balance $ — $ (251 ) $ — $ (445 ) Unrealized gains/(losses) on tax increment financing bond — (7 ) — 187 Ending balance — (258 ) — (258 ) Cash flow hedges: Beginning balance (11,628 ) (4,263 ) (3,811 ) (3,467 ) Unrealized gains/(losses) on cash flow hedges 1,610 (3,021 ) (7,785 ) (5,666 ) Amortization of cash flow hedges (1) 758 932 2,336 2,781 Ending balance (9,260 ) (6,352 ) (9,260 ) (6,352 ) Total accumulated other comprehensive loss $ (9,260 ) $ (6,610 ) $ (9,260 ) $ (6,610 ) __________ (1) Amounts reclassified out of AOCL into contractual interest expense. |
Real Estate, Other Assets and L
Real Estate, Other Assets and Liabilities Held For Sale and Discontinued Operations | 9 Months Ended |
Sep. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Real Estate, Other Assets and Liabilities Held For Sale and Discontinued Operations | Real Estate, Other Assets and Liabilities Held For Sale and Discontinued Operations The following tables set forth the assets and liabilities related to discontinued operations at December 31, 2015 , the results of operations for the three and nine months ended September 30, 2016 and 2015 and cash flows for the nine months ended September 30, 2016 and 2015 as well as assets held for sale at September 30, 2016 : September 30, December 31, Assets: Land $ — $ 16,681 Buildings and tenant improvements — 322,811 Land held for development 260 1,089 Less-accumulated depreciation — (131,274 ) Net real estate assets 260 209,307 Accrued straight-line rents receivable, net — 11,730 Deferred leasing costs, net — 6,690 Prepaid expenses and other assets, net — 13,221 Real estate and other assets, net, held for sale $ 260 $ 240,948 Liabilities: Accounts payable, accrued expenses and other liabilities $ — $ (6,717 ) Financing obligation — (7,402 ) Liabilities held for sale $ — $ (14,119 ) Three Months Ended Nine Months Ended 2016 2015 2016 2015 Rental and other revenues $ — $ 12,970 $ 8,484 $ 37,637 Operating expenses: Rental property and other expenses — 5,328 3,334 15,235 Depreciation and amortization — 3,689 — 10,442 General and administrative — 192 1,388 613 Total operating expenses — 9,209 4,722 26,290 Interest expense — 155 85 491 Other income — 659 420 1,994 Income from discontinued operations — 4,265 4,097 12,850 Net gains on disposition of discontinued operations — — 414,496 — Total income from discontinued operations $ — $ 4,265 $ 418,593 $ 12,850 Nine Months Ended 2016 2015 Cash flows from operating activities $ 2,040 $ 21,991 Cash flows from investing activities $ 417,097 $ (12,642 ) |
Earnings Per Share and Per Unit
Earnings Per Share and Per Unit | 9 Months Ended |
Sep. 30, 2016 | |
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 Nine Months Ended 2016 2015 2016 2015 Earnings per Common Share - basic: Numerator: Income from continuing operations $ 33,840 $ 27,352 $ 95,510 $ 66,493 Net (income) attributable to noncontrolling interests in the Operating Partnership from continuing operations (926 ) (790 ) (2,611 ) (1,907 ) Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations (319 ) (324 ) (941 ) (948 ) Dividends on Preferred Stock (624 ) (626 ) (1,877 ) (1,879 ) Income from continuing operations available for common stockholders 31,971 25,612 90,081 61,759 Income from discontinued operations — 4,265 418,593 12,850 Net (income) attributable to noncontrolling interests in the Operating Partnership from discontinued operations — (128 ) (12,265 ) (389 ) Income from discontinued operations available for common stockholders — 4,137 406,328 12,461 Net income available for common stockholders $ 31,971 $ 29,749 $ 496,409 $ 74,220 Denominator: Denominator for basic earnings per Common Share – weighted average shares 98,973 94,693 97,669 93,996 Earnings per Common Share - basic: Income from continuing operations available for common stockholders $ 0.32 $ 0.27 $ 0.92 $ 0.66 Income from discontinued operations available for common stockholders — 0.04 4.16 0.13 Net income available for common stockholders $ 0.32 $ 0.31 $ 5.08 $ 0.79 Earnings per Common Share - diluted: Numerator: Income from continuing operations $ 33,840 $ 27,352 $ 95,510 $ 66,493 Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations (319 ) (324 ) (941 ) (948 ) Dividends on Preferred Stock (624 ) (626 ) (1,877 ) (1,879 ) Income from continuing operations available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership 32,897 26,402 92,692 63,666 Income from discontinued operations available for common stockholders — 4,265 418,593 12,850 Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership $ 32,897 $ 30,667 $ 511,285 $ 76,516 Denominator: Denominator for basic earnings per Common Share – weighted average shares 98,973 94,693 97,669 93,996 Add: Stock options using the treasury method 108 58 94 89 Noncontrolling interests Common Units 2,858 2,910 2,882 2,918 Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions (1) 101,939 97,661 100,645 97,003 Earnings per Common Share - diluted: Income from continuing operations available for common stockholders $ 0.32 $ 0.27 $ 0.92 $ 0.66 Income from discontinued operations available for common stockholders — 0.04 4.16 0.13 Net income available for common stockholders $ 0.32 $ 0.31 $ 5.08 $ 0.79 __________ (1) Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable. 13. Earnings Per Share and Per Unit - Continued The following table sets forth the computation of basic and diluted earnings per unit of the Operating Partnership: Three Months Ended Nine Months Ended 2016 2015 2016 2015 Earnings per Common Unit - basic: Numerator: Income from continuing operations $ 33,840 $ 27,352 $ 95,510 $ 66,493 Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations (319 ) (324 ) (941 ) (948 ) Distributions on Preferred Units (624 ) (626 ) (1,877 ) (1,879 ) Income from continuing operations available for common unitholders 32,897 26,402 92,692 63,666 Income from discontinued operations available for common unitholders — 4,265 418,593 12,850 Net income available for common unitholders $ 32,897 $ 30,667 $ 511,285 $ 76,516 Denominator: Denominator for basic earnings per Common Unit – weighted average units 101,422 97,194 100,142 96,505 Earnings per Common Unit - basic: Income from continuing operations available for common unitholders $ 0.32 $ 0.27 $ 0.93 $ 0.66 Income from discontinued operations available for common unitholders — 0.05 4.18 0.13 Net income available for common unitholders $ 0.32 $ 0.32 $ 5.11 $ 0.79 Earnings per Common Unit - diluted: Numerator: Income from continuing operations $ 33,840 $ 27,352 $ 95,510 $ 66,493 Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations (319 ) (324 ) (941 ) (948 ) Distributions on Preferred Units (624 ) (626 ) (1,877 ) (1,879 ) Income from continuing operations available for common unitholders 32,897 26,402 92,692 63,666 Income from discontinued operations available for common unitholders — 4,265 418,593 12,850 Net income available for common unitholders $ 32,897 $ 30,667 $ 511,285 $ 76,516 Denominator: Denominator for basic earnings per Common Unit – weighted average units 101,422 97,194 100,142 96,505 Add: Stock options using the treasury method 108 58 94 89 Denominator for diluted earnings per Common Unit – adjusted weighted average units and assumed conversions (1) 101,530 97,252 100,236 96,594 Earnings per Common Unit - diluted: Income from continuing operations available for common unitholders $ 0.32 $ 0.27 $ 0.92 $ 0.66 Income from discontinued operations available for common unitholders — 0.05 4.18 0.13 Net income available for common unitholders $ 0.32 $ 0.32 $ 5.10 $ 0.79 __________ (1) Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2016 | |
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 nine months ended September 30, 2015 has been retrospectively revised from previously reported amounts to reflect a change in our reportable segments. Three Months Ended Nine Months Ended 2016 2015 2016 2015 Rental and Other Revenues: Office: Atlanta, GA $ 33,340 $ 25,737 $ 101,188 $ 76,130 Greensboro, NC 5,167 5,288 15,351 16,126 Memphis, TN 12,330 11,790 36,275 35,574 Nashville, TN 23,979 22,614 71,760 66,200 Orlando, FL 11,678 11,397 34,360 33,179 Pittsburgh, PA 14,386 14,831 43,721 44,099 Raleigh, NC 27,767 27,081 84,013 76,063 Richmond, VA 11,414 10,564 33,420 31,351 Tampa, FL 22,836 17,785 67,088 54,814 Total Office Segment 162,897 147,087 487,176 433,536 Other 3,372 3,679 10,812 11,009 Total Rental and Other Revenues $ 166,269 $ 150,766 $ 497,988 $ 444,545 14. Segment Information - Continued Three Months Ended Nine Months Ended 2016 2015 2016 2015 Net Operating Income: Office: Atlanta, GA $ 20,718 $ 15,970 $ 63,681 $ 47,000 Greensboro, NC 3,187 3,275 9,544 10,217 Memphis, TN 7,753 7,317 22,566 22,347 Nashville, TN 17,042 15,726 51,470 46,438 Orlando, FL 6,633 6,153 19,638 18,984 Pittsburgh, PA 8,482 8,840 25,193 25,472 Raleigh, NC 19,525 19,018 59,935 53,647 Richmond, VA 7,602 6,909 22,718 20,721 Tampa, FL 14,349 10,615 42,037 32,855 Total Office Segment 105,291 93,823 316,782 277,681 Other 2,358 2,513 7,491 7,550 Total Net Operating Income 107,649 96,336 324,273 285,231 Reconciliation to income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates: Depreciation and amortization (52,923 ) (50,963 ) (161,734 ) (145,758 ) General and administrative expenses (9,863 ) (8,990 ) (29,327 ) (28,898 ) Interest expense (18,566 ) (21,357 ) (58,756 ) (64,446 ) Other income 833 379 1,884 1,261 Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates $ 27,130 $ 15,405 $ 76,340 $ 47,390 |
Description of Business and S22
Description of Business and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation, Policy [Policy Text Block] | Basis of Presentation Our Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Our Consolidated Statements of Income for the three and nine months ended September 30, 2015 were retrospectively revised from previously reported amounts to reclassify the operations for those properties classified as discontinued operations. The Company's Consolidated Financial Statements include the Operating Partnership, wholly owned subsidiaries and those entities in which the Company has the controlling interest. The Operating Partnership's Consolidated Financial Statements include wholly owned subsidiaries and those entities in which the Operating Partnership has the controlling interest. In addition, we consolidate those entities deemed to be variable interest entities in which we are determined to be the primary beneficiary. At September 30, 2016 , we had involvement with, but are not the primary beneficiary in, an entity that we concluded to be a variable interest entity. All intercompany transactions and accounts have been eliminated. 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 2015 Annual Report on Form 10-K. |
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 our Consolidated Financial Statements and accompanying notes. Actual results could differ from those estimates. |
Recently Issued Accounting Standards, Policy [Policy Text Block] | Recently Issued Accounting Standards The Financial Accounting Standards Board ("FASB") recently issued an accounting standards update ("ASU") 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 ASU is required to be adopted in 2018. 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 ASU. The FASB recently issued an ASU that amended consolidation requirements. The amendments significantly change the consolidation analysis required under GAAP and require companies to reevaluate all previous consolidation conclusions. We adopted the ASU as of January 1, 2016 and there was no impact to consolidated entities included in our Consolidated Financial Statements. However, in reevaluating our previous consolidation conclusions upon adoption of the ASU, we determined our 12.5% equity interest in an unconsolidated affiliate to be an interest in a variable interest entity because certain of its limited partners do not have substantive kick-out or participating rights. We do not qualify as the primary beneficiary since our obligation to absorb losses and receive benefits of the variable interest entity is less than that of the other general partner and we do not have the power to direct the activities that most significantly affect the economic performance of the entity. Accordingly, the entity is not consolidated. At September 30, 2016 , our maximum exposure to loss with respect to this arrangement is limited to the less than $0.1 million carrying value of our 12.5% investment in the unconsolidated affiliate. The FASB recently issued an ASU that requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability to which they relate, consistent with debt discounts, as opposed to being presented as assets. For debt issuance costs related to revolving credit facilities, the FASB allows the presentation of debt issuance costs as an asset. We adopted the ASU as of January 1, 2016 with retrospective application to our December 31, 2015 Consolidated Balance Sheets. The effect of the adoption was to reclassify debt issuance costs from deferred financing and leasing costs, net of accumulated amortization, as follows: $7.8 million to a contra account as a deduction from the related mortgages and notes payable and $2.1 million to prepaid expenses and other assets. There was no effect on our Consolidated Statements of Income. The FASB recently issued an ASU which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The ASU requires lessors to account for leases using an approach that is substantially equivalent to the existing guidance and is effective for reporting periods beginning in 2019 with early adoption permitted. We are in the process of evaluating this ASU. The FASB recently issued an ASU that requires, among other things, the use of a new current expected credit loss ("CECL") model in determining our allowances for doubtful accounts with respect to accounts receivable, accrued straight-line rents receivable and mortgages and notes receivable. The CECL model requires that we estimate our lifetime expected credit loss with respect to these receivables and record allowances that, when deducted from the balance of the receivables, represent the net amounts expected to be collected. We will also be required to disclose information about how we developed the allowances, including changes in the factors (e.g., portfolio mix, credit trends, unemployment, gross domestic product, etc.) that influenced our estimate of expected credit losses and the reasons for those changes. We will apply the ASU’s provisions as a cumulative-effect adjustment to retained earnings upon adoption in 2020. We are in the process of evaluating this ASU. The FASB recently issued an ASU that adds to and clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows. The ASU is required to be adopted in 2018 with retrospective application required. We are in the process of evaluating this ASU. |
Real Estate Assets Real Estate
Real Estate Assets Real Estate Assets (Tables) - Pro Forma 2015 Acquisitions [Member] | 9 Months Ended |
Sep. 30, 2016 | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, Purchase Price Allocation [Table Text Block] | The following table sets forth a summary of the fair value of the major assets acquired and liabilities assumed relating to the acquisition of two buildings in Atlanta, GA encompassing 896,000 rentable square feet during the third quarter of 2015: Total Purchase Price Allocation Real estate assets $ 275,639 Acquisition-related intangible assets (in deferred leasing costs) 23,722 Acquisition-related below market lease liabilities (in accounts payable, accrued expenses and other liabilities) (9,076 ) Total allocation $ 290,285 |
Highwoods Properties, Inc. [Member] | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, Pro Forma [Table Text Block] | The following table sets forth the Company's revenues and net income, adjusted for interest expense, straight-line rental income, depreciation and amortization related to purchase price allocations and acquisition costs, assuming the above-referenced acquisition of two buildings in Atlanta, GA during the third quarter of 2015 had been completed as of January 1, 2014 : Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 Pro forma revenues $ 157,618 $ 465,476 Pro forma net income $ 33,354 $ 80,647 Pro forma net income available for common stockholders $ 31,486 $ 75,524 Pro forma earnings per share - basic $ 0.33 $ 0.80 Pro forma earnings per share - diluted $ 0.33 $ 0.80 |
Investments In and Advances T24
Investments In and Advances To Unconsolidated Affiliates (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 Nine Months Ended 2016 2015 2016 2015 Income Statements: Rental and other revenues $ 10,357 $ 12,323 $ 32,339 $ 36,977 Expenses: Rental property and other expenses 4,201 5,985 13,489 17,683 Depreciation and amortization 2,459 3,193 7,862 9,418 Interest expense 1,264 1,645 3,983 5,826 Total expenses 7,924 10,823 25,334 32,927 Income before disposition of property 2,433 1,500 7,005 4,050 Gains on disposition of property 21,345 — 22,247 18,181 Net income $ 23,778 $ 1,500 $ 29,252 $ 22,231 |
Intangible Assets and Below M25
Intangible Assets and Below Market Lease Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Total Intangible Assets and Below Market Lease Liabilities [Table Text Block] | The following table sets forth total intangible assets and acquisition-related below market lease liabilities, net of accumulated amortization: September 30, December 31, Assets: Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets) $ 355,268 $ 346,937 Less accumulated amortization (136,292 ) (115,172 ) $ 218,976 $ 231,765 Liabilities (in accounts payable, accrued expenses and other liabilities): Acquisition-related below market lease liabilities $ 63,712 $ 63,830 Less accumulated amortization (23,675 ) (17,927 ) $ 40,037 $ 45,903 |
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 Nine Months Ended 2016 2015 2016 2015 Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization) $ 10,111 $ 10,858 $ 33,177 $ 30,747 Amortization of lease incentives (in rental and other revenues) $ 273 $ 368 $ 1,374 $ 1,131 Amortization of acquisition-related intangible assets (in rental and other revenues) $ 901 $ 1,414 $ 2,904 $ 3,769 Amortization of acquisition-related intangible assets (in rental property and other expenses) $ 140 $ 140 $ 417 $ 416 Amortization of acquisition-related below market lease liabilities (in rental and other revenues) $ (1,734 ) $ (1,727 ) $ (6,294 ) $ (5,133 ) |
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 Leasing Costs and Acquisition-Related Intangible Assets (in Depreciation and Amortization) Amortization of Lease Incentives (in Rental and Other Revenues) Amortization of Acquisition-Related Intangible Assets (in Rental and Other Revenues) Amortization of Acquisition-Related Intangible Assets (in Rental Property and Other Expenses) Amortization of Acquisition-Related Below Market Lease Liabilities (in Rental and Other Revenues) October 1 through December 31, 2016 $ 11,797 $ 358 $ 917 $ 137 $ (1,737 ) 2017 41,426 1,399 2,657 553 (6,231 ) 2018 34,194 1,294 1,713 553 (6,022 ) 2019 28,606 1,080 1,322 553 (5,549 ) 2020 23,983 805 1,002 525 (5,223 ) Thereafter 58,905 2,544 2,653 — (15,275 ) $ 198,911 $ 7,480 $ 10,264 $ 2,321 $ (40,037 ) Weighted average remaining amortization periods as of September 30, 2016 (in years) 6.7 7.4 6.2 4.2 7.5 |
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 2016 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 at acquisition $ 122 $ 5,008 $ (428 ) Weighted average remaining amortization periods as of September 30, 2016 (in years) 9.8 10.2 11.2 |
Mortgages and Notes Payable (Ta
Mortgages and Notes Payable (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Consolidated Mortgages and Notes Payable [Table Text Block] | The following table sets forth our mortgages and notes payable: September 30, December 31, Secured indebtedness $ 129,013 $ 175,281 Unsecured indebtedness 1,778,942 2,324,333 Less-unamortized debt issuance costs (6,889 ) (7,801 ) Total mortgages and notes payable, net $ 1,901,066 $ 2,491,813 |
Derivative Financial Instrume27
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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: September 30, December 31, Derivatives: Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities: Interest rate swaps $ 8,701 $ 3,073 |
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 Nine Months Ended 2016 2015 2016 2015 Derivatives Designated as Cash Flow Hedges: Amount of unrealized gains/(losses) recognized in AOCL on derivatives (effective portion): Interest rate swaps $ 1,610 $ (3,021 ) $ (7,785 ) $ (5,666 ) Amount of losses reclassified out of AOCL into contractual interest expense (effective portion): Interest rate swaps $ 758 $ 932 $ 2,336 $ 2,781 |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) - Highwoods Properties, Inc. [Member] | 9 Months Ended |
Sep. 30, 2016 | |
Noncontrolling Interest [Line Items] | |
Noncontrolling Interests in the Operating Partnership [Table Text Block] | The following table sets forth the Company's noncontrolling interests in the Operating Partnership: Nine Months Ended 2016 2015 Beginning noncontrolling interests in the Operating Partnership $ 126,429 $ 130,048 Adjustment of noncontrolling interests in the Operating Partnership to fair value 13,390 (14,649 ) Conversions of Common Units to Common Stock (3,006 ) (1,206 ) Net income attributable to noncontrolling interests in the Operating Partnership 14,876 2,296 Distributions to noncontrolling interests in the Operating Partnership (3,684 ) (3,721 ) Total noncontrolling interests in the Operating Partnership $ 148,005 $ 112,768 |
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 Nine Months Ended 2016 2015 2016 2015 Net income available for common stockholders $ 31,971 $ 29,749 $ 496,409 $ 74,220 Increase in additional paid in capital from conversions of Common Units 1,448 — 3,006 1,206 Change from net income available for common stockholders and transfers from noncontrolling interests $ 33,419 $ 29,749 $ 499,415 $ 75,426 |
Disclosure About Fair Value o29
Disclosure About Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 September 30, 2016: Assets: Mortgages and notes receivable, at fair value (1) $ 9,525 $ — $ 9,525 $ — Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 2,426 2,426 — — Total Assets $ 11,951 $ 2,426 $ 9,525 $ — Noncontrolling Interests in the Operating Partnership $ 148,005 $ 148,005 $ — $ — Liabilities: Mortgages and notes payable, net, at fair value (1) $ 1,941,317 $ — $ 1,941,317 $ — Interest rate swaps (in accounts payable, accrued expenses and other liabilities) 8,701 — 8,701 — Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 2,426 2,426 — — Total Liabilities $ 1,952,444 $ 2,426 $ 1,950,018 $ — Fair Value at December 31, 2015: Assets: Mortgages and notes receivable, at fair value (1) $ 2,096 $ — $ 2,096 $ — Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 2,736 2,736 — — Tax increment financing bond (in real estate and other assets, net, held for sale) (2) 11,197 — — 11,197 Total Assets $ 16,029 $ 2,736 $ 2,096 $ 11,197 Noncontrolling Interests in the Operating Partnership $ 126,429 $ 126,429 $ — $ — Liabilities: Mortgages and notes payable, net, at fair value (1) $ 2,517,589 $ — $ 2,517,589 $ — Interest rate swaps (in accounts payable, accrued expenses and other liabilities) 3,073 — 3,073 — Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 2,736 2,736 — — Financing obligation, at fair value (in liabilities held for sale) (1) (2) 7,402 — — 7,402 Total Liabilities $ 2,530,800 $ 2,736 $ 2,520,662 $ 7,402 __________ (1) Amounts recorded at historical cost on our Consolidated Balance Sheets at September 30, 2016 and December 31, 2015 . (2) Sold during the first quarter of 2016 in conjunction with the sales of the Plaza assets. |
Fair Value Measurements, Unobservable Inputs Reconciliation [Table Text Block] | The following table sets forth the changes in our Level 3 asset, which was recorded at fair value on our Consolidated Balance Sheets: Three Months Ended Nine Months Ended 2016 2015 2016 2015 Asset: Tax Increment Financing Bond: Beginning balance $ — $ 12,641 $ 11,197 $ 12,447 Assigned to the buyer of the Plaza assets — — (11,197 ) — Unrealized gains/(losses) (in AOCL) — (7 ) — 187 Ending balance $ — $ 12,634 $ — $ 12,634 |
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 was recorded at fair value on our Consolidated Balance Sheets: Valuation Technique Unobservable Input Rate as of December 31, 2015 Asset: Tax increment financing bond Income approach Discount rate 6.93% |
Accumulated Other Comprehensi30
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 Nine Months Ended 2016 2015 2016 2015 Tax increment financing bond: Beginning balance $ — $ (251 ) $ — $ (445 ) Unrealized gains/(losses) on tax increment financing bond — (7 ) — 187 Ending balance — (258 ) — (258 ) Cash flow hedges: Beginning balance (11,628 ) (4,263 ) (3,811 ) (3,467 ) Unrealized gains/(losses) on cash flow hedges 1,610 (3,021 ) (7,785 ) (5,666 ) Amortization of cash flow hedges (1) 758 932 2,336 2,781 Ending balance (9,260 ) (6,352 ) (9,260 ) (6,352 ) Total accumulated other comprehensive loss $ (9,260 ) $ (6,610 ) $ (9,260 ) $ (6,610 ) __________ (1) Amounts reclassified out of AOCL into contractual interest expense. |
Real Estate, Other Assets and31
Real Estate, Other Assets and Liabilities Held For Sale and Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Real Estate and Other Assets of the Properties Classified As Held For Sale [Table Text Block] | The following tables set forth the assets and liabilities related to discontinued operations at December 31, 2015 , the results of operations for the three and nine months ended September 30, 2016 and 2015 and cash flows for the nine months ended September 30, 2016 and 2015 as well as assets held for sale at September 30, 2016 : September 30, December 31, Assets: Land $ — $ 16,681 Buildings and tenant improvements — 322,811 Land held for development 260 1,089 Less-accumulated depreciation — (131,274 ) Net real estate assets 260 209,307 Accrued straight-line rents receivable, net — 11,730 Deferred leasing costs, net — 6,690 Prepaid expenses and other assets, net — 13,221 Real estate and other assets, net, held for sale $ 260 $ 240,948 Liabilities: Accounts payable, accrued expenses and other liabilities $ — $ (6,717 ) Financing obligation — (7,402 ) Liabilities held for sale $ — $ (14,119 ) |
Operations Classified as Discontinued Operations [Table Text Block] | Three Months Ended Nine Months Ended 2016 2015 2016 2015 Rental and other revenues $ — $ 12,970 $ 8,484 $ 37,637 Operating expenses: Rental property and other expenses — 5,328 3,334 15,235 Depreciation and amortization — 3,689 — 10,442 General and administrative — 192 1,388 613 Total operating expenses — 9,209 4,722 26,290 Interest expense — 155 85 491 Other income — 659 420 1,994 Income from discontinued operations — 4,265 4,097 12,850 Net gains on disposition of discontinued operations — — 414,496 — Total income from discontinued operations $ — $ 4,265 $ 418,593 $ 12,850 Nine Months Ended 2016 2015 Cash flows from operating activities $ 2,040 $ 21,991 Cash flows from investing activities $ 417,097 $ (12,642 ) |
Earnings Per Share and Per Un32
Earnings Per Share and Per Unit (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 Nine Months Ended 2016 2015 2016 2015 Earnings per Common Share - basic: Numerator: Income from continuing operations $ 33,840 $ 27,352 $ 95,510 $ 66,493 Net (income) attributable to noncontrolling interests in the Operating Partnership from continuing operations (926 ) (790 ) (2,611 ) (1,907 ) Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations (319 ) (324 ) (941 ) (948 ) Dividends on Preferred Stock (624 ) (626 ) (1,877 ) (1,879 ) Income from continuing operations available for common stockholders 31,971 25,612 90,081 61,759 Income from discontinued operations — 4,265 418,593 12,850 Net (income) attributable to noncontrolling interests in the Operating Partnership from discontinued operations — (128 ) (12,265 ) (389 ) Income from discontinued operations available for common stockholders — 4,137 406,328 12,461 Net income available for common stockholders $ 31,971 $ 29,749 $ 496,409 $ 74,220 Denominator: Denominator for basic earnings per Common Share – weighted average shares 98,973 94,693 97,669 93,996 Earnings per Common Share - basic: Income from continuing operations available for common stockholders $ 0.32 $ 0.27 $ 0.92 $ 0.66 Income from discontinued operations available for common stockholders — 0.04 4.16 0.13 Net income available for common stockholders $ 0.32 $ 0.31 $ 5.08 $ 0.79 Earnings per Common Share - diluted: Numerator: Income from continuing operations $ 33,840 $ 27,352 $ 95,510 $ 66,493 Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations (319 ) (324 ) (941 ) (948 ) Dividends on Preferred Stock (624 ) (626 ) (1,877 ) (1,879 ) Income from continuing operations available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership 32,897 26,402 92,692 63,666 Income from discontinued operations available for common stockholders — 4,265 418,593 12,850 Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership $ 32,897 $ 30,667 $ 511,285 $ 76,516 Denominator: Denominator for basic earnings per Common Share – weighted average shares 98,973 94,693 97,669 93,996 Add: Stock options using the treasury method 108 58 94 89 Noncontrolling interests Common Units 2,858 2,910 2,882 2,918 Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions (1) 101,939 97,661 100,645 97,003 Earnings per Common Share - diluted: Income from continuing operations available for common stockholders $ 0.32 $ 0.27 $ 0.92 $ 0.66 Income from discontinued operations available for common stockholders — 0.04 4.16 0.13 Net income available for common stockholders $ 0.32 $ 0.31 $ 5.08 $ 0.79 __________ (1) 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 Nine Months Ended 2016 2015 2016 2015 Earnings per Common Unit - basic: Numerator: Income from continuing operations $ 33,840 $ 27,352 $ 95,510 $ 66,493 Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations (319 ) (324 ) (941 ) (948 ) Distributions on Preferred Units (624 ) (626 ) (1,877 ) (1,879 ) Income from continuing operations available for common unitholders 32,897 26,402 92,692 63,666 Income from discontinued operations available for common unitholders — 4,265 418,593 12,850 Net income available for common unitholders $ 32,897 $ 30,667 $ 511,285 $ 76,516 Denominator: Denominator for basic earnings per Common Unit – weighted average units 101,422 97,194 100,142 96,505 Earnings per Common Unit - basic: Income from continuing operations available for common unitholders $ 0.32 $ 0.27 $ 0.93 $ 0.66 Income from discontinued operations available for common unitholders — 0.05 4.18 0.13 Net income available for common unitholders $ 0.32 $ 0.32 $ 5.11 $ 0.79 Earnings per Common Unit - diluted: Numerator: Income from continuing operations $ 33,840 $ 27,352 $ 95,510 $ 66,493 Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations (319 ) (324 ) (941 ) (948 ) Distributions on Preferred Units (624 ) (626 ) (1,877 ) (1,879 ) Income from continuing operations available for common unitholders 32,897 26,402 92,692 63,666 Income from discontinued operations available for common unitholders — 4,265 418,593 12,850 Net income available for common unitholders $ 32,897 $ 30,667 $ 511,285 $ 76,516 Denominator: Denominator for basic earnings per Common Unit – weighted average units 101,422 97,194 100,142 96,505 Add: Stock options using the treasury method 108 58 94 89 Denominator for diluted earnings per Common Unit – adjusted weighted average units and assumed conversions (1) 101,530 97,252 100,236 96,594 Earnings per Common Unit - diluted: Income from continuing operations available for common unitholders $ 0.32 $ 0.27 $ 0.92 $ 0.66 Income from discontinued operations available for common unitholders — 0.05 4.18 0.13 Net income available for common unitholders $ 0.32 $ 0.32 $ 5.10 $ 0.79 __________ (1) Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 nine months ended September 30, 2015 has been retrospectively revised from previously reported amounts to reflect a change in our reportable segments. Three Months Ended Nine Months Ended 2016 2015 2016 2015 Rental and Other Revenues: Office: Atlanta, GA $ 33,340 $ 25,737 $ 101,188 $ 76,130 Greensboro, NC 5,167 5,288 15,351 16,126 Memphis, TN 12,330 11,790 36,275 35,574 Nashville, TN 23,979 22,614 71,760 66,200 Orlando, FL 11,678 11,397 34,360 33,179 Pittsburgh, PA 14,386 14,831 43,721 44,099 Raleigh, NC 27,767 27,081 84,013 76,063 Richmond, VA 11,414 10,564 33,420 31,351 Tampa, FL 22,836 17,785 67,088 54,814 Total Office Segment 162,897 147,087 487,176 433,536 Other 3,372 3,679 10,812 11,009 Total Rental and Other Revenues $ 166,269 $ 150,766 $ 497,988 $ 444,545 14. Segment Information - Continued Three Months Ended Nine Months Ended 2016 2015 2016 2015 Net Operating Income: Office: Atlanta, GA $ 20,718 $ 15,970 $ 63,681 $ 47,000 Greensboro, NC 3,187 3,275 9,544 10,217 Memphis, TN 7,753 7,317 22,566 22,347 Nashville, TN 17,042 15,726 51,470 46,438 Orlando, FL 6,633 6,153 19,638 18,984 Pittsburgh, PA 8,482 8,840 25,193 25,472 Raleigh, NC 19,525 19,018 59,935 53,647 Richmond, VA 7,602 6,909 22,718 20,721 Tampa, FL 14,349 10,615 42,037 32,855 Total Office Segment 105,291 93,823 316,782 277,681 Other 2,358 2,513 7,491 7,550 Total Net Operating Income 107,649 96,336 324,273 285,231 Reconciliation to income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates: Depreciation and amortization (52,923 ) (50,963 ) (161,734 ) (145,758 ) General and administrative expenses (9,863 ) (8,990 ) (29,327 ) (28,898 ) Interest expense (18,566 ) (21,357 ) (58,756 ) (64,446 ) Other income 833 379 1,884 1,261 Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates $ 27,130 $ 15,405 $ 76,340 $ 47,390 |
Description of Business and S34
Description of Business and Significant Accounting Policies (Details) $ / shares in Units, $ in Thousands, ft² in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016USD ($)aft²$ / sharesshares | Sep. 30, 2016USD ($)aft²$ / sharesshares | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Description of Business and Significant Accounting Policies [Line Items] | ||||
Rentable square feet of commercial real estate properties (in sq feet) | ft² | 31.1 | 31.1 | ||
Rentable square feet of commercial real estate properties under development (in sq feet) | ft² | 1.1 | 1.1 | ||
Undeveloped land suitable for development (in acres) | a | 450 | 450 | ||
Net proceeds of Common Stock sold during the period | $ 187,214 | $ 93,216 | ||
Percentage of equity interest in joint ventures, maximum (in hundredths) | 50.00% | 50.00% | ||
Carrying value of investment in unconsolidated affiliate | $ 18,697 | $ 18,697 | $ 20,676 | |
Debt issuance costs reclassified to contra liability account | 1,901,066 | 1,901,066 | 2,491,813 | |
Debt issuance costs reclassified to prepaid expenses and other assets | $ 28,581 | $ 28,581 | 26,649 | |
Reclassified Debt Issuance Costs Member | ||||
Description of Business and Significant Accounting Policies [Line Items] | ||||
Debt issuance costs reclassified to contra liability account | 7,800 | |||
Debt issuance costs reclassified to prepaid expenses and other assets | $ 2,100 | |||
Unconsolidated Affiliate VIE Member | ||||
Description of Business and Significant Accounting Policies [Line Items] | ||||
Percentage of equity interest in joint ventures, maximum (in hundredths) | 12.50% | 12.50% | ||
Carrying value of investment in unconsolidated affiliate | $ 100 | $ 100 | ||
Highwoods Properties, Inc. [Member] | ||||
Description of Business and Significant Accounting Policies [Line Items] | ||||
Common Units of partnership owned by the Company (in shares) | shares | 99,800,000 | 99,800,000 | ||
Percentage of ownership of Common Units (in hundredths) | 97.20% | 97.20% | 97.10% | |
Common Units redeemed for a like number of common shares of stock (in shares) | shares | 60,048 | |||
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 | 1,547,457 | 3,624,528 | ||
Average price of Common Stock sold during the period (in dollars per share) | $ / shares | $ 52.79 | $ 49.67 | ||
Net proceeds of Common Stock sold during the period | $ 80,500 | $ 177,300 | ||
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 | 2,800,000 | 2,800,000 | ||
Carrying value of investment in unconsolidated affiliate | $ 18,697 | $ 18,697 | $ 20,676 | |
Debt issuance costs reclassified to contra liability account | 1,901,066 | 1,901,066 | 2,491,813 | |
Debt issuance costs reclassified to prepaid expenses and other assets | $ 28,581 | $ 28,581 | $ 26,649 |
Real Estate Assets (Details)
Real Estate Assets (Details) ft² in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016USD ($)aft²property | Jun. 30, 2016USD ($)a | Mar. 31, 2016USD ($)ft² | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)aft²property | Sep. 30, 2015USD ($) | |
Acquisitions [Abstract] | ||||||
Acquisition of development land (in acres) | a | 450 | 450 | ||||
Dispositions [Abstract] | ||||||
Gains on disposition of property | $ 3,902 | $ 7,012 | $ 14,160 | $ 10,581 | ||
Gains on disposition of discontinued operations | $ 0 | $ 0 | $ 414,496 | $ 0 | ||
Rentable square feet of building (in sq feet) | ft² | 31,100 | 31,100 | ||||
Raleigh NC Building Acquisition (09/2016) [Member] | ||||||
Acquisitions [Abstract] | ||||||
Rentable square feet of acquisition (in sqft) | ft² | 243 | 243 | ||||
Acquisition purchase price | $ 76,900 | |||||
Acquisition-related costs | 300 | |||||
Fee Simple Title Pittsburgh, PA (09/2016) [Member] | ||||||
Acquisitions [Abstract] | ||||||
Acquisition purchase price | 18,500 | |||||
Acquisition-related costs | $ 500 | |||||
Number of buildings | property | 1 | 1 | ||||
Raleigh NC Development Land (09/2016) [Member] | ||||||
Acquisitions [Abstract] | ||||||
Acquisition purchase price | $ 5,800 | |||||
Nashville TN Land Acquisition (6/2016) [Member] | ||||||
Acquisitions [Abstract] | ||||||
Acquisition purchase price | $ 9,100 | |||||
Acquisition of development land (in acres) | a | 14 | |||||
2016 Dispositions [Member] | ||||||
Dispositions [Abstract] | ||||||
Purchase price of real estate | 6,800 | $ 14,200 | $ 6,400 | |||
Gains on disposition of property | 3,900 | $ 5,900 | 2,000 | |||
Deferred gain on sale of property | $ 400 | $ 400 | ||||
Disposition closing credits excluded | 500 | |||||
Division Exit [Member] | ||||||
Dispositions [Abstract] | ||||||
Purchase price of real estate | 660,000 | |||||
Gains on disposition of property | 1,300 | |||||
Disposition closing credits excluded | 4,800 | |||||
Gains on disposition of discontinued operations | 414,500 | |||||
Related Party Office Building Disposition [Member] | ||||||
Dispositions [Abstract] | ||||||
Purchase price of real estate | 4,700 | |||||
Gains on disposition of property | 1,100 | |||||
Disposition closing credits excluded | $ 100 | |||||
Rentable square feet of building (in sq feet) | ft² | 32 | |||||
Buyer occupancy percentage (in hundredths) | 79.00% |
Real Estate Assets Real Estat36
Real Estate Assets Real Estate Assets Pro Forma (Details) - Pro Forma 2015 Acquisitions [Member] $ / shares in Units, ft² in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015USD ($)ft²property$ / shares | Sep. 30, 2015USD ($)ft²property$ / shares | |
Business Acquisition [Line Items] | ||
Number of buildings | property | 2 | 2 |
Rentable square feet of acquisition (in sqft) | ft² | 896 | 896 |
Business Combination, Purchase Price Allocation [Abstract] | ||
Real estate assets | $ 275,639 | $ 275,639 |
Acquisition-related intangible assets (in deferred leasing costs) | 23,722 | 23,722 |
Acquisition-related below market lease liabilities (in accounts payable, accrued expenses and other liabilities) | (9,076) | (9,076) |
Total allocation | $ 290,285 | 290,285 |
Pro forma assumption date of acquisition | Jan. 1, 2014 | |
Highwoods Properties, Inc. [Member] | ||
Business Acquisition, Pro Forma Information [Abstract] | ||
Pro forma revenues | $ 157,618 | 465,476 |
Pro forma net income | 33,354 | 80,647 |
Pro forma net income available for common stockholders | $ 31,486 | $ 75,524 |
Pro forma earnings per share - basic | $ / shares | $ 0.33 | $ 0.80 |
Pro forma earnings per share - diluted | $ / shares | $ 0.33 | $ 0.80 |
Mortgages and Notes Receivable
Mortgages and Notes Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Mortgages and notes receivable [Abstract] | ||
Mortgages and notes receivable, net | $ 9,525 | $ 2,096 |
Investments In and Advances T38
Investments In and Advances To Unconsolidated Affiliates (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016USD ($) | Mar. 31, 2016USD ($)property | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | |
Income Statements: | |||||
Rental and other revenues | $ 10,357 | $ 12,323 | $ 32,339 | $ 36,977 | |
Expenses: | |||||
Rental property and other expenses | 4,201 | 5,985 | 13,489 | 17,683 | |
Depreciation and amortization | 2,459 | 3,193 | 7,862 | 9,418 | |
Interest expense | 1,264 | 1,645 | 3,983 | 5,826 | |
Total expenses | 7,924 | 10,823 | 25,334 | 32,927 | |
Income before disposition of property | 2,433 | 1,500 | 7,005 | 4,050 | |
Gains/(losses) on disposition of property | 21,345 | 0 | 22,247 | 18,181 | |
Net income | $ 23,778 | $ 1,500 | $ 29,252 | $ 22,231 | |
Percentage of equity interest in joint ventures, maximum (in hundredths) | 50.00% | 50.00% | |||
Concourse Center Associates, LLC Joint Venture [Member] | |||||
Expenses: | |||||
Gains/(losses) on disposition of property | $ (100) | ||||
Percentage of equity interest in joint ventures, maximum (in hundredths) | 50.00% | ||||
Proceeds received from disposition of property | $ 11,000 | ||||
Our share of gains on disposition of property | 400 | ||||
Repayment of debt | $ 6,600 | ||||
Number of buildings sold | property | 2 | ||||
4600 Madison Associates, LLC Joint Venture [Member] | |||||
Expenses: | |||||
Gains/(losses) on disposition of property | $ 21,300 | $ 1,000 | |||
Percentage of equity interest in joint ventures, maximum (in hundredths) | 12.50% | 12.50% | |||
Proceeds received from disposition of property | $ 32,700 | 3,400 | |||
Our share of gains on disposition of property | 1,800 | 100 | |||
Repayment of debt | $ 6,300 | $ 3,400 | $ 6,300 |
Intangible Assets and Below M39
Intangible Assets and Below Market Lease Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Intangible assets and below market lease liabilities, net [Abstract] | |||||
Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets) | $ 355,268 | $ 355,268 | $ 346,937 | ||
Deferred leasing costs, accumulated amortization | (136,292) | (136,292) | (115,172) | ||
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | 218,976 | 218,976 | 231,765 | ||
Acquisition-related below market lease liabilities, gross | 63,712 | 63,712 | 63,830 | ||
Acquisition-related below market lease liabilities, accumulated amortization | (23,675) | (23,675) | (17,927) | ||
Acquisition-related below market lease liabilities, net | 40,037 | 40,037 | $ 45,903 | ||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||||
Acquired intangible assets (amortized in rental and other revenues) | 122 | 122 | |||
Acquired intangible assets (amortized in depreciation and amortization) | 5,008 | 5,008 | |||
Assumed below market lease liabilities (amortized in rental and other revenues) | (428) | (428) | |||
Deferred Leasing Costs and Acquisition-Related Intangible Assets [Member] | |||||
Intangible assets and below market lease liabilities, net [Abstract] | |||||
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | 198,911 | 198,911 | |||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||||
Amortization of intangible assets | 10,111 | $ 10,858 | 33,177 | $ 30,747 | |
Lease Incentives [Member] | |||||
Intangible assets and below market lease liabilities, net [Abstract] | |||||
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | 7,480 | 7,480 | |||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||||
Amortization of intangible assets | 273 | 368 | 1,374 | 1,131 | |
Acquisition-Related Intangible Assets (in Rental and Other Revenues) [Member] | |||||
Intangible assets and below market lease liabilities, net [Abstract] | |||||
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | 10,264 | 10,264 | |||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||||
Amortization of intangible assets | 901 | 1,414 | 2,904 | 3,769 | |
Acquisition-Related Intangible Assets (in Rental Property and Other Expenses) [Member] | |||||
Intangible assets and below market lease liabilities, net [Abstract] | |||||
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | 2,321 | 2,321 | |||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||||
Amortization of intangible assets | 140 | 140 | 417 | 416 | |
Acquisition-Related Below Market Lease Liabilities [Member] | |||||
Intangible assets and below market lease liabilities, net [Abstract] | |||||
Acquisition-related below market lease liabilities, net | 40,037 | 40,037 | |||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||||
Amortization of acquisition-related below market lease liabilities | $ (1,734) | $ (1,727) | $ (6,294) | $ (5,133) |
Intangible Assets and Below M40
Intangible Assets and Below Market Lease Liabilities - Scheduled Future Amortization (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Scheduled future amortization of intangible assets [Abstract] | ||
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | $ 218,976 | $ 231,765 |
Scheduled future amortization of below market lease liabilities [Abstract] | ||
Total scheduled future amortization of acquisition-related below market lease liabilities | (40,037) | $ (45,903) |
Deferred Leasing Costs and Acquisition-Related Intangible Assets [Member] | ||
Scheduled future amortization of intangible assets [Abstract] | ||
October 1 through December 31, 2016 | 11,797 | |
2,017 | 41,426 | |
2,018 | 34,194 | |
2,019 | 28,606 | |
2,020 | 23,983 | |
Thereafter | 58,905 | |
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | $ 198,911 | |
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract] | ||
Finite-lived intangible assets, average useful life (in years) | 6 years 8 months 12 days | |
Lease Incentives [Member] | ||
Scheduled future amortization of intangible assets [Abstract] | ||
October 1 through December 31, 2016 | $ 358 | |
2,017 | 1,399 | |
2,018 | 1,294 | |
2,019 | 1,080 | |
2,020 | 805 | |
Thereafter | 2,544 | |
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | $ 7,480 | |
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 4 months 24 days | |
Acquisition-Related Intangible Assets (in Rental and Other Revenues) [Member] | ||
Scheduled future amortization of intangible assets [Abstract] | ||
October 1 through December 31, 2016 | $ 917 | |
2,017 | 2,657 | |
2,018 | 1,713 | |
2,019 | 1,322 | |
2,020 | 1,002 | |
Thereafter | 2,653 | |
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | $ 10,264 | |
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 2 months 12 days | |
Acquired finite-lived intangible assets, average useful life (in years) | 9 years 9 months 18 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, average useful life (in years) | 10 years 2 months 12 days | |
Acquisition-Related Intangible Assets (in Rental Property and Other Expenses) [Member] | ||
Scheduled future amortization of intangible assets [Abstract] | ||
October 1 through December 31, 2016 | $ 137 | |
2,017 | 553 | |
2,018 | 553 | |
2,019 | 553 | |
2,020 | 525 | |
Thereafter | 0 | |
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | $ 2,321 | |
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 2 months 12 days | |
Acquisition-Related Below Market Lease Liabilities [Member] | ||
Scheduled future amortization of below market lease liabilities [Abstract] | ||
October 1 through December 31, 2016 | $ (1,737) | |
2,017 | (6,231) | |
2,018 | (6,022) | |
2,019 | (5,549) | |
2,020 | (5,223) | |
Thereafter | (15,275) | |
Total scheduled future amortization of acquisition-related below market lease liabilities | $ (40,037) | |
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 6 months | |
Assumed finite-lived below market lease liabilities, average useful life (in years) | 11 years 2 months 12 days |
Mortgages and Notes Payable (De
Mortgages and Notes Payable (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2016USD ($)extensions | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Oct. 17, 2016USD ($) | Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | |||||||
Mortgages and notes payable, net | $ 1,901,066 | $ 1,901,066 | $ 2,491,813 | ||||
Unamortized debt issuance costs | (6,889) | (6,889) | (7,801) | ||||
Repayment of bridge credit facility | 528,800 | $ 337,900 | |||||
Revolving Credit Facility due 2018 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity on revolving credit facility | $ 475,000 | 475,000 | |||||
Maturity date on revolving credit facility | Jan. 1, 2018 | ||||||
Additional borrowing capacity on revolving credit facility | $ 75,000 | 75,000 | |||||
Number of additional maturity extensions | extensions | 2 | ||||||
Term of optional extension | 6 months | ||||||
Interest rate spread (in hundredths) | 1.10% | ||||||
Annual facility fee (in hundredths) | 0.20% | ||||||
Amount outstanding on revolving credit facility | $ 28,000 | 28,000 | |||||
Outstanding letters of credit on revolving credit facility | 200 | 200 | |||||
Unused borrowing capacity on revolving credit facility | 446,800 | 446,800 | |||||
7.50% Mortgage Loan due 2016 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Principal debt amount | $ 43,600 | ||||||
Effective interest rate (in hundredths) | 7.50% | ||||||
Scheduled maturity date | Aug. 6, 2016 | ||||||
Variable Rate Term Loan Facility due 2022 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity on revolving credit facility | $ 150,000 | ||||||
Maturity date on revolving credit facility | Jan. 28, 2022 | ||||||
Interest rate spread (in hundredths) | 1.10% | ||||||
Amount outstanding on revolving credit facility | 75,000 | 75,000 | |||||
Term of debt (in months) | 67 months | ||||||
Bridge Term Loan Facility due 2016 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maturity date on revolving credit facility | Mar. 28, 2016 | ||||||
Repayment of bridge credit facility | $ 350,000 | ||||||
Secured indebtedness [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Mortgages and notes payable, net | 129,013 | 129,013 | 175,281 | ||||
Aggregate undepreciated book value of secured real estate assets | 247,100 | 247,100 | |||||
Unsecured indebtedness [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Mortgages and notes payable, net | $ 1,778,942 | $ 1,778,942 | $ 2,324,333 | ||||
Subsequent Event [Member] | Revolving Credit Facility due 2018 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Amount outstanding on revolving credit facility | $ 38,000 | ||||||
Outstanding letters of credit on revolving credit facility | 200 | ||||||
Unused borrowing capacity on revolving credit facility | 436,800 | ||||||
Subsequent Event [Member] | Variable Rate Term Loan Facility due 2022 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Amount outstanding on revolving credit facility | $ 75,000 | ||||||
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility due 2018 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Facility interest rate basis | LIBOR plus 110 basis points | ||||||
London Interbank Offered Rate (LIBOR) [Member] | Variable Rate Term Loan Facility due 2022 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Facility interest rate basis | LIBOR plus 110 basis points |
Derivative Financial Instrume42
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||
Amount of borrowings, subject to swaps | $ 150,000 | |||||
Underlying treasury rate term (in years) | 10 years | |||||
Underlying treasury rate locked by forward-starting swaps (in hundredths) | 1.90% | |||||
Expected increase to interest expense | $ 2,500 | $ 2,500 | ||||
Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities [Abstract] | ||||||
Interest rate swaps | 8,701 | 8,701 | $ 3,073 | |||
Amount of unrealized gains/(losses) recognized in AOCL on derivatives (effective portion) [Abstract] | ||||||
Interest rate swaps | 1,610 | $ (3,021) | (7,785) | $ (5,666) | ||
Amount of losses reclassified out of AOCL into contractual interest expense (effective portion) [Abstract] | ||||||
Interest rate swaps | $ 758 | $ 932 | $ 2,336 | $ 2,781 |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Noncontrolling Interests in Consolidated Affiliates [Abstract] | ||||
Consolidated joint venture, partner's interest (in hundredths) | 50.00% | 50.00% | ||
Noncontrolling Interests in the Operating Partnership [Roll Forward] | ||||
Beginning noncontrolling interests in the Operating Partnership | $ 126,429 | |||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | 13,390 | $ (14,649) | ||
Conversions of Common Units to Common Stock | (3,006) | (1,206) | ||
Net income attributable to noncontrolling interests in the Operating Partnership | $ 926 | $ 918 | 14,876 | 2,296 |
Distributions to noncontrolling interests in the Operating Partnership | (3,684) | (3,721) | ||
Total noncontrolling interests in the Operating Partnership | 148,005 | 148,005 | ||
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership [Abstract] | ||||
Net income available for common stockholders | 31,971 | 29,749 | 496,409 | 74,220 |
Highwoods Properties, Inc. [Member] | ||||
Noncontrolling Interests in the Operating Partnership [Roll Forward] | ||||
Beginning noncontrolling interests in the Operating Partnership | 126,429 | 130,048 | ||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | 13,390 | (14,649) | ||
Conversions of Common Units to Common Stock | (3,006) | (1,206) | ||
Net income attributable to noncontrolling interests in the Operating Partnership | 14,876 | 2,296 | ||
Distributions to noncontrolling interests in the Operating Partnership | (3,684) | (3,721) | ||
Total noncontrolling interests in the Operating Partnership | 148,005 | 112,768 | 148,005 | 112,768 |
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership [Abstract] | ||||
Net income available for common stockholders | 31,971 | 29,749 | 496,409 | 74,220 |
Increase in additional paid in capital from conversions of Common Units to Common Stock | 1,448 | 0 | 3,006 | 1,206 |
Change from net income available for common stockholders and transfers from noncontrolling interests | $ 33,419 | $ 29,749 | $ 499,415 | $ 75,426 |
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 | Sep. 30, 2016 | Dec. 31, 2015 | |
Assets: | |||
Mortgages and notes receivable, at fair value | [1] | $ 9,525 | $ 2,096 |
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) | 2,426 | 2,736 | |
Tax increment financing bond (in real estate and other assets, net, held for sale) | [2] | 11,197 | |
Total Assets | 11,951 | 16,029 | |
Liabilities: | |||
Mortgages and notes payable, net, at fair value | [1] | 1,941,317 | 2,517,589 |
Interest rate swaps (in accounts payable, accrued expenses and other liabilities) | 8,701 | 3,073 | |
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 2,426 | 2,736 | |
Financing obligation, at fair value (in liabilities held for sale) | [1],[2] | 7,402 | |
Total Liabilities | 1,952,444 | 2,530,800 | |
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) | 2,426 | 2,736 | |
Tax increment financing bond (in real estate and other assets, net, held for sale) | [2] | 0 | |
Total Assets | 2,426 | 2,736 | |
Liabilities: | |||
Mortgages and notes payable, net, 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) | 2,426 | 2,736 | |
Financing obligation, at fair value (in liabilities held for sale) | [1],[2] | 0 | |
Total Liabilities | 2,426 | 2,736 | |
Level 2 [Member] | |||
Assets: | |||
Mortgages and notes receivable, at fair value | [1] | 9,525 | 2,096 |
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) | 0 | 0 | |
Tax increment financing bond (in real estate and other assets, net, held for sale) | [2] | 0 | |
Total Assets | 9,525 | 2,096 | |
Liabilities: | |||
Mortgages and notes payable, net, at fair value | [1] | 1,941,317 | 2,517,589 |
Interest rate swaps (in accounts payable, accrued expenses and other liabilities) | 8,701 | 3,073 | |
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 0 | 0 | |
Financing obligation, at fair value (in liabilities held for sale) | [1],[2] | 0 | |
Total Liabilities | 1,950,018 | 2,520,662 | |
Level 3 [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) | 0 | 0 | |
Tax increment financing bond (in real estate and other assets, net, held for sale) | [2] | 11,197 | |
Total Assets | 0 | 11,197 | |
Liabilities: | |||
Mortgages and notes payable, net, 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 (in liabilities held for sale) | [1],[2] | 7,402 | |
Total Liabilities | 0 | 7,402 | |
Highwoods Properties, Inc. [Member] | |||
Assets: | |||
Noncontrolling Interests in the Operating Partnership | 148,005 | 126,429 | |
Highwoods Properties, Inc. [Member] | Level 1 [Member] | |||
Assets: | |||
Noncontrolling Interests in the Operating Partnership | 148,005 | 126,429 | |
Highwoods Properties, Inc. [Member] | Level 2 [Member] | |||
Assets: | |||
Noncontrolling Interests in the Operating Partnership | 0 | 0 | |
Highwoods Properties, Inc. [Member] | Level 3 [Member] | |||
Assets: | |||
Noncontrolling Interests in the Operating Partnership | $ 0 | $ 0 | |
[1] | Amounts recorded at historical cost on our Consolidated Balance Sheets at September 30, 2016 and December 31, 2015. | ||
[2] | Sold during the first quarter of 2016 in conjunction with the sales of the Plaza assets. |
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 | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Unrealized gains/(losses) (in AOCL) | $ 0 | $ 187 | |||
Tax Increment Financing Bond [Member] | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Beginning balance | $ 0 | $ 12,641 | 11,197 | 12,447 | $ 12,447 |
Assigned to the buyer of the Plaza assets | 0 | 0 | (11,197) | 0 | |
Unrealized gains/(losses) (in AOCL) | 0 | (7) | 0 | 187 | |
Ending balance | $ 0 | $ 12,634 | $ 0 | $ 12,634 | $ 11,197 |
Discount rate (in hundredths) | 6.93% |
Share-Based Payments (Details)
Share-Based Payments (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 900 | $ 900 | $ 5,412 | $ 5,996 |
Total unrecognized stock-based compensation costs | $ 5,900 | $ 5,900 | ||
Weighted average remaining contractual term for recognition of unrecognized stock-based compensation costs (in years) | 2 years 4 months 24 days | |||
Highwoods Properties, Inc. [Member] | Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options granted | 244,664 | |||
Weighted average grant date fair value of each stock option granted (in dollars per option) | $ 4.61 | |||
Highwoods Properties, Inc. [Member] | Time-Based Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock shares granted | 72,698 | |||
Weighted average grant date fair value of each restricted stock share granted (in dollars per share) | $ 43.59 | |||
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 | 58,054 | |||
Weighted average grant date fair value of each restricted stock share granted (in dollars per share) | $ 41.37 |
Accumulated Other Comprehensi47
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Accumulated Other Comprehensive Income (Loss) Calculation [Roll Forward] | |||||
Beginning balance | $ (3,811) | ||||
Ending balance | $ (9,260) | $ (6,610) | (9,260) | $ (6,610) | |
Tax Increment Financing Bond [Member] | |||||
Accumulated Other Comprehensive Income (Loss) Calculation [Roll Forward] | |||||
Beginning balance | 0 | (251) | 0 | (445) | |
Unrealized gains/(losses) | 0 | (7) | 0 | 187 | |
Ending balance | 0 | (258) | 0 | (258) | |
Cash Flow Hedges [Member] | |||||
Accumulated Other Comprehensive Income (Loss) Calculation [Roll Forward] | |||||
Beginning balance | (11,628) | (4,263) | (3,811) | (3,467) | |
Unrealized gains/(losses) | 1,610 | (3,021) | (7,785) | (5,666) | |
Amortization | [1] | 758 | 932 | 2,336 | 2,781 |
Ending balance | $ (9,260) | $ (6,352) | $ (9,260) | $ (6,352) | |
[1] | Amounts reclassified out of AOCL into contractual interest expense. |
Real Estate, Other Assets and48
Real Estate, Other Assets and Liabilities Held For Sale and Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Assets [Abstract] | |||||
Land | $ 0 | $ 0 | $ 16,681 | ||
Buildings and tenant improvements | 0 | 0 | 322,811 | ||
Land held for development | 260 | 260 | 1,089 | ||
Less - accumulated depreciation | 0 | 0 | (131,274) | ||
Net real estate assets | 260 | 260 | 209,307 | ||
Accrued straight-line rents receivable, net | 0 | 0 | 11,730 | ||
Deferred leasing costs, net | 0 | 0 | 6,690 | ||
Prepaid expenses and other assets, net | 0 | 0 | 13,221 | ||
Real estate and other assets, net, held for sale | 260 | 260 | 240,948 | ||
Liabilities [Abstract] | |||||
Accounts payable, accrued expenses and other liabilities | 0 | 0 | (6,717) | ||
Financing obligation | 0 | 0 | (7,402) | ||
Liabilities held for sale | 0 | 0 | $ (14,119) | ||
Discontinued Operations [Abstract] | |||||
Rental and other revenues | 0 | $ 12,970 | 8,484 | $ 37,637 | |
Operating expenses: | |||||
Rental property and other expenses | 0 | 5,328 | 3,334 | 15,235 | |
Depreciation and amortization | 0 | 3,689 | 0 | 10,442 | |
General and administrative | 0 | 192 | 1,388 | 613 | |
Total operating expenses | 0 | 9,209 | 4,722 | 26,290 | |
Interest expense | 0 | 155 | 85 | 491 | |
Other income | 0 | 659 | 420 | 1,994 | |
Income from discontinued operations | 0 | 4,265 | 4,097 | 12,850 | |
Net gains on disposition of discontinued operations | 0 | 0 | 414,496 | 0 | |
Total income from discontinued operations | $ 0 | $ 4,265 | 418,593 | 12,850 | |
Net Cash Provided by/(Used in) Discontinued Operations [Abstract] | |||||
Cash flows from operating activities | 2,040 | 21,991 | |||
Cash flows from investing activities | $ 417,097 | $ (12,642) |
Earnings Per Share and Per Un49
Earnings Per Share and Per Unit (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Earnings per Common Share and Per Unit - basic: [Abstract] | |||||
Income from continuing operations | $ 33,840 | $ 27,352 | $ 95,510 | $ 66,493 | |
Net (income) attributable to noncontrolling interests in the Operating Partnership from continuing operations | (926) | (790) | (2,611) | (1,907) | |
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations | (319) | (324) | (941) | (948) | |
Dividends on Preferred Stock | (624) | (626) | (1,877) | (1,879) | |
Income from continuing operations available for common stockholders | 31,971 | 25,612 | 90,081 | 61,759 | |
Income from discontinued operations | 0 | 4,265 | 418,593 | 12,850 | |
Net (income) attributable to noncontrolling interests in the Operating Partnership from discontinued operations | 0 | (128) | (12,265) | (389) | |
Income from discontinued operations available for common stockholders | 0 | 4,137 | 406,328 | 12,461 | |
Net income available for common stockholders | $ 31,971 | $ 29,749 | $ 496,409 | $ 74,220 | |
Denominator: | |||||
Denominator for basic earnings per Common Share - weighted average shares (in shares) | 98,973 | 94,693 | 97,669 | 93,996 | |
Earnings per Common Share - basic: | |||||
Income from continuing operations available for common stockholders (in dollars per share) | $ 0.32 | $ 0.27 | $ 0.92 | $ 0.66 | |
Income from discontinued operations available for common stockholders (in dollars per share) | 0 | 0.04 | 4.16 | 0.13 | |
Net income available for common stockholders (in dollars per share) | $ 0.32 | $ 0.31 | $ 5.08 | $ 0.79 | |
Earnings per Common Share and Per Unit - diluted: [Abstract] | |||||
Income from continuing operations | $ 33,840 | $ 27,352 | $ 95,510 | $ 66,493 | |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (319) | (324) | (941) | (948) | |
Dividends on Preferred Stock | (624) | (626) | (1,877) | (1,879) | |
Income from continuing operations available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership | 32,897 | 26,402 | 92,692 | 63,666 | |
Income from discontinued operations available for common stockholders | 0 | 4,265 | 418,593 | 12,850 | |
Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership | $ 32,897 | $ 30,667 | $ 511,285 | $ 76,516 | |
Denominator: | |||||
Denominator for basic earnings per Common Share - weighted average shares (in shares) | 98,973 | 94,693 | 97,669 | 93,996 | |
Stock options using the treasury method (in shares) | 108 | 58 | 94 | 89 | |
Noncontrolling interests Common Units (in shares) | 2,858 | 2,910 | 2,882 | 2,918 | |
Denominator for diluted earnings per Common Share - adjusted weighted average shares and assumed conversions (in shares) | [1] | 101,939 | 97,661 | 100,645 | 97,003 |
Earnings per Common Share - diluted: | |||||
Income from continuing operations available for common stockholders (in dollars per share) | $ 0.32 | $ 0.27 | $ 0.92 | $ 0.66 | |
Income from discontinued operations available for common stockholders (in dollars per share) | 0 | 0.04 | 4.16 | 0.13 | |
Net income available for common stockholders (in dollars per share) | $ 0.32 | $ 0.31 | $ 5.08 | $ 0.79 | |
Highwoods Realty Limited Partnership [Member] | |||||
Earnings per Common Share and Per Unit - basic: [Abstract] | |||||
Income from continuing operations | $ 33,840 | $ 27,352 | $ 95,510 | $ 66,493 | |
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations | (319) | (324) | (941) | (948) | |
Distributions on Preferred Units | (624) | (626) | (1,877) | (1,879) | |
Income from continuing operations available for common unitholders | 32,897 | 26,402 | 92,692 | 63,666 | |
Income from discontinued operations available for common unitholders | 0 | 4,265 | 418,593 | 12,850 | |
Net income available for common unitholders | $ 32,897 | $ 30,667 | $ 511,285 | $ 76,516 | |
Denominator: | |||||
Denominator for basic earnings per Common Unit - weighted average units (in shares) | 101,422 | 97,194 | 100,142 | 96,505 | |
Earnings per Common Unit - basic: | |||||
Income from continuing operations available for common unitholders (in dollars per share) | $ 0.32 | $ 0.27 | $ 0.93 | $ 0.66 | |
Income from discontinued operations available for common unitholders (in dollars per share) | 0 | 0.05 | 4.18 | 0.13 | |
Net income available for common unitholders (in dollars per share) | $ 0.32 | $ 0.32 | $ 5.11 | $ 0.79 | |
Earnings per Common Share and Per Unit - diluted: [Abstract] | |||||
Income from continuing operations | $ 33,840 | $ 27,352 | $ 95,510 | $ 66,493 | |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (319) | (324) | (941) | (948) | |
Distributions on Preferred Units | (624) | (626) | (1,877) | (1,879) | |
Income from continuing operations available for common unitholders | 32,897 | 26,402 | 92,692 | 63,666 | |
Income from discontinued operations available for common unitholders | 0 | 4,265 | 418,593 | 12,850 | |
Net income available for common unitholders | $ 32,897 | $ 30,667 | $ 511,285 | $ 76,516 | |
Denominator: | |||||
Denominator for basic earnings per Common Unit - weighted average units (in shares) | 101,422 | 97,194 | 100,142 | 96,505 | |
Stock options using the treasury method (in shares) | 108 | 58 | 94 | 89 | |
Denominator for diluted earnings per Common Unit - adjusted weighted average units and assumed conversions (in shares) | [2] | 101,530 | 97,252 | 100,236 | 96,594 |
Earnings per Common Unit - diluted: | |||||
Income from continuing operations available for common unitholders (in dollars per share) | $ 0.32 | $ 0.27 | $ 0.92 | $ 0.66 | |
Income from discontinued operations available for common unitholders (in dollars per share) | 0 | 0.05 | 4.18 | 0.13 | |
Net income available for common unitholders (in dollars per share) | $ 0.32 | $ 0.32 | $ 5.10 | $ 0.79 | |
[1] | Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable. | ||||
[2] | Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable. |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | $ 166,269 | $ 150,766 | $ 497,988 | $ 444,545 |
Total Net Operating Income | 107,649 | 96,336 | 324,273 | 285,231 |
Reconciliation to income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates: | ||||
Depreciation and amortization | (52,923) | (50,963) | (161,734) | (145,758) |
General and administrative expenses | (9,863) | (8,990) | (29,327) | (28,898) |
Interest expense | (18,566) | (21,357) | (58,756) | (64,446) |
Other income | 833 | 379 | 1,884 | 1,261 |
Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates | 27,130 | 15,405 | 76,340 | 47,390 |
Total Office Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 162,897 | 147,087 | 487,176 | 433,536 |
Total Net Operating Income | 105,291 | 93,823 | 316,782 | 277,681 |
Office Atlanta, GA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 33,340 | 25,737 | 101,188 | 76,130 |
Total Net Operating Income | 20,718 | 15,970 | 63,681 | 47,000 |
Office Greensboro, NC [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 5,167 | 5,288 | 15,351 | 16,126 |
Total Net Operating Income | 3,187 | 3,275 | 9,544 | 10,217 |
Office Memphis, TN [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 12,330 | 11,790 | 36,275 | 35,574 |
Total Net Operating Income | 7,753 | 7,317 | 22,566 | 22,347 |
Office Nashville, TN [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 23,979 | 22,614 | 71,760 | 66,200 |
Total Net Operating Income | 17,042 | 15,726 | 51,470 | 46,438 |
Office Orlando, FL [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 11,678 | 11,397 | 34,360 | 33,179 |
Total Net Operating Income | 6,633 | 6,153 | 19,638 | 18,984 |
Office Pittsburgh, PA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 14,386 | 14,831 | 43,721 | 44,099 |
Total Net Operating Income | 8,482 | 8,840 | 25,193 | 25,472 |
Office Raleigh, NC [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 27,767 | 27,081 | 84,013 | 76,063 |
Total Net Operating Income | 19,525 | 19,018 | 59,935 | 53,647 |
Office Richmond, VA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 11,414 | 10,564 | 33,420 | 31,351 |
Total Net Operating Income | 7,602 | 6,909 | 22,718 | 20,721 |
Office Tampa, FL [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 22,836 | 17,785 | 67,088 | 54,814 |
Total Net Operating Income | 14,349 | 10,615 | 42,037 | 32,855 |
Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 3,372 | 3,679 | 10,812 | 11,009 |
Total Net Operating Income | $ 2,358 | $ 2,513 | $ 7,491 | $ 7,550 |