Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 17, 2018 | |
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 | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 103,421,754 | |
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 | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Real estate assets, at cost: | ||
Land | $ 485,956 | $ 485,956 |
Buildings and tenant improvements | 4,617,003 | 4,590,490 |
Development in-process | 131,671 | 88,452 |
Land held for development | 125,841 | 74,765 |
Total real estate assets | 5,360,471 | 5,239,663 |
Less-accumulated depreciation | (1,239,383) | (1,202,424) |
Net real estate assets | 4,121,088 | 4,037,239 |
Real estate and other assets, net, held for sale | 14,017 | 14,118 |
Cash and cash equivalents | 31,034 | 3,272 |
Restricted cash | 36,848 | 85,061 |
Accounts receivable, net of allowance of $784 and $753, respectively | 22,943 | 24,397 |
Mortgages and notes receivable, net of allowance of $69 and $72, respectively | 6,158 | 6,425 |
Accrued straight-line rents receivable, net of allowance of $909 and $819, respectively | 206,698 | 200,131 |
Investments in and advances to unconsolidated affiliates | 23,095 | 23,897 |
Deferred leasing costs, net of accumulated amortization of $146,909 and $143,512, respectively | 196,302 | 200,679 |
Prepaid expenses and other assets, net of accumulated depreciation of $19,860 and $19,092, respectively | 37,272 | 28,572 |
Total Assets | 4,695,455 | 4,623,791 |
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Liabilities, Redeemable Operating Partnership Units and Capital: | ||
Mortgages and notes payable, net | 2,112,584 | 2,014,333 |
Accounts payable, accrued expenses and other liabilities | 206,258 | 228,215 |
Total Liabilities | 2,318,842 | 2,242,548 |
Commitments and contingencies | ||
Noncontrolling interests in the Operating Partnership | 123,113 | 144,009 |
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), 28,887 and 28,892 shares issued and outstanding, respectively | 28,887 | 28,892 |
Common Stock, $.01 par value, 200,000,000 authorized shares; 103,421,754 and 103,266,875 shares issued and outstanding, respectively | 1,034 | 1,033 |
Additional paid-in capital | 2,953,148 | 2,929,399 |
Distributions in excess of net income available for common stockholders | (762,642) | (747,344) |
Accumulated other comprehensive income | 15,609 | 7,838 |
Total Stockholders’ Equity | 2,236,036 | 2,219,818 |
Noncontrolling interests in consolidated affiliates | 17,464 | 17,416 |
Total Equity/Capital | 2,253,500 | 2,237,234 |
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Capital | 4,695,455 | 4,623,791 |
Highwoods Realty Limited Partnership [Member] | ||
Real estate assets, at cost: | ||
Land | 485,956 | 485,956 |
Buildings and tenant improvements | 4,617,003 | 4,590,490 |
Development in-process | 131,671 | 88,452 |
Land held for development | 125,841 | 74,765 |
Total real estate assets | 5,360,471 | 5,239,663 |
Less-accumulated depreciation | (1,239,383) | (1,202,424) |
Net real estate assets | 4,121,088 | 4,037,239 |
Real estate and other assets, net, held for sale | 14,017 | 14,118 |
Cash and cash equivalents | 31,034 | 3,272 |
Restricted cash | 36,848 | 85,061 |
Accounts receivable, net of allowance of $784 and $753, respectively | 22,943 | 24,397 |
Mortgages and notes receivable, net of allowance of $69 and $72, respectively | 6,158 | 6,425 |
Accrued straight-line rents receivable, net of allowance of $909 and $819, respectively | 206,698 | 200,131 |
Investments in and advances to unconsolidated affiliates | 23,095 | 23,897 |
Deferred leasing costs, net of accumulated amortization of $146,909 and $143,512, respectively | 196,302 | 200,679 |
Prepaid expenses and other assets, net of accumulated depreciation of $19,860 and $19,092, respectively | 37,272 | 28,572 |
Total Assets | 4,695,455 | 4,623,791 |
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Liabilities, Redeemable Operating Partnership Units and Capital: | ||
Mortgages and notes payable, net | 2,112,584 | 2,014,333 |
Accounts payable, accrued expenses and other liabilities | 206,258 | 228,215 |
Total Liabilities | 2,318,842 | 2,242,548 |
Commitments and contingencies | ||
Redeemable Operating Partnership Units: | ||
Common Units, 2,809,508 and 2,828,704 outstanding, respectively | 123,113 | 144,009 |
Series A Preferred Units (liquidation preference $1,000 per unit), 28,887 and 28,892 units issued and outstanding, respectively | 28,887 | 28,892 |
Total Redeemable Operating Partnership Units | 152,000 | 172,901 |
Equity/Capital: | ||
General partner Common Units, 1,058,225 and 1,056,868 outstanding, respectively | 21,915 | 21,830 |
Limited partner Common Units, 101,954,720 and 101,801,198 outstanding, respectively | 2,169,625 | 2,161,258 |
Accumulated other comprehensive income | 15,609 | 7,838 |
Noncontrolling interests in consolidated affiliates | 17,464 | 17,416 |
Total Equity/Capital | 2,224,613 | 2,208,342 |
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Capital | $ 4,695,455 | $ 4,623,791 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Assets: | ||
Accounts receivable allowance | $ 784 | $ 753 |
Mortgages and notes receivable allowance | 69 | 72 |
Accrued straight-line rents receivable allowance | 909 | 819 |
Deferred leasing costs, accumulated amortization | 146,909 | 143,512 |
Prepaid expenses and other assets, accumulated depreciation | $ 19,860 | $ 19,092 |
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) | 28,887 | 28,892 |
Series A Preferred Stock, shares outstanding (in shares) | 28,887 | 28,892 |
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) | 103,421,754 | 103,266,875 |
Common Stock, shares outstanding (in shares) | 103,421,754 | 103,266,875 |
Highwoods Realty Limited Partnership [Member] | ||
Assets: | ||
Accounts receivable allowance | $ 784 | $ 753 |
Mortgages and notes receivable allowance | 69 | 72 |
Accrued straight-line rents receivable allowance | 909 | 819 |
Deferred leasing costs, accumulated amortization | 146,909 | 143,512 |
Prepaid expenses and other assets, accumulated depreciation | $ 19,860 | $ 19,092 |
Redeemable Operating Partnership Units: [Abstract] | ||
Redeemable Common Units outstanding (in shares) | 2,809,508 | 2,828,704 |
Series A Preferred Units, liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 |
Series A Preferred Units, issued (in shares) | 28,887 | 28,892 |
Series A Preferred Units, outstanding (in shares) | 28,887 | 28,892 |
Common Units: [Abstract] | ||
General partners' capital account, units outstanding (in shares) | 1,058,225 | 1,056,868 |
Limited partners' capital account, units outstanding (in shares) | 101,954,720 | 101,801,198 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Rental and other revenues | $ 180,438 | $ 169,408 |
Operating expenses: | ||
Rental property and other expenses | 59,432 | 57,396 |
Depreciation and amortization | 57,568 | 56,145 |
General and administrative | 11,778 | 11,490 |
Total operating expenses | 128,778 | 125,031 |
Interest expense: | ||
Contractual | 17,705 | 17,023 |
Amortization of debt issuance costs | 686 | 840 |
Total interest expense | 18,391 | 17,863 |
Other income: | ||
Interest and other income | 455 | 684 |
Total other income | 455 | 684 |
Income before disposition of investment properties and activity in unconsolidated affiliates | 33,724 | 27,198 |
Gains on disposition of property | 0 | 5,332 |
Equity in earnings of unconsolidated affiliates | 522 | 955 |
Net income | 34,246 | 33,485 |
Net (income) attributable to noncontrolling interests in the Operating Partnership | (888) | (888) |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (286) | (300) |
Dividends on Preferred Stock | (623) | (623) |
Net income available for common stockholders | $ 32,449 | $ 31,674 |
Earnings per Common Share – basic: | ||
Net income available for common stockholders (in dollars per share) | $ 0.31 | $ 0.31 |
Weighted average Common Shares outstanding - basic (in shares) | 103,324 | 101,738 |
Earnings per Common Share - diluted: | ||
Net income available for common stockholders (in dollars per share) | $ 0.31 | $ 0.31 |
Weighted average Common Shares outstanding - diluted (in shares) | 106,165 | 104,661 |
Dividends declared per Common Share (in dollars per share) | $ 0.4625 | $ 0.440 |
Highwoods Realty Limited Partnership [Member] | ||
Rental and other revenues | $ 180,438 | $ 169,408 |
Operating expenses: | ||
Rental property and other expenses | 59,432 | 57,396 |
Depreciation and amortization | 57,568 | 56,145 |
General and administrative | 11,778 | 11,490 |
Total operating expenses | 128,778 | 125,031 |
Interest expense: | ||
Contractual | 17,705 | 17,023 |
Amortization of debt issuance costs | 686 | 840 |
Total interest expense | 18,391 | 17,863 |
Other income: | ||
Interest and other income | 455 | 684 |
Total other income | 455 | 684 |
Income before disposition of investment properties and activity in unconsolidated affiliates | 33,724 | 27,198 |
Gains on disposition of property | 0 | 5,332 |
Equity in earnings of unconsolidated affiliates | 522 | 955 |
Net income | 34,246 | 33,485 |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (286) | (300) |
Distributions on Preferred Units | (623) | (623) |
Net income available for common unitholders | $ 33,337 | $ 32,562 |
Earnings per Common Unit - basic: | ||
Net income available for common unitholders (in dollars per share) | $ 0.32 | $ 0.31 |
Weighted average Common Units outstanding - basic (in shares) | 105,730 | 104,167 |
Earnings per Common Unit - diluted: | ||
Net income available for common unitholders (in dollars per share) | $ 0.32 | $ 0.31 |
Weighted average Common Units outstanding - diluted (in shares) | 105,756 | 104,252 |
Distributions declared per Common Unit (in dollars per unit) | $ 0.4625 | $ 0.44 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Comprehensive income: | ||
Net income | $ 34,246 | $ 33,485 |
Other comprehensive income: | ||
Unrealized gains on cash flow hedges | 7,877 | 452 |
Amortization of cash flow hedges | (106) | 484 |
Total other comprehensive income | 7,771 | 936 |
Total comprehensive income | 42,017 | 34,421 |
Less-comprehensive (income) attributable to noncontrolling interests | (1,174) | (1,188) |
Comprehensive income attributable to common stockholders/Comprehensive income attributable to common unitholders | 40,843 | 33,233 |
Highwoods Realty Limited Partnership [Member] | ||
Comprehensive income: | ||
Net income | 34,246 | 33,485 |
Other comprehensive income: | ||
Unrealized gains on cash flow hedges | 7,877 | 452 |
Amortization of cash flow hedges | (106) | 484 |
Total other comprehensive income | 7,771 | 936 |
Total comprehensive income | 42,017 | 34,421 |
Less-comprehensive (income) attributable to noncontrolling interests | (286) | (300) |
Comprehensive income attributable to common stockholders/Comprehensive income attributable to common unitholders | $ 41,731 | $ 34,121 |
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, 2016 | 101,665,554 | |||||||||||
Balance at Dec. 31, 2016 | $ 2,154,316 | $ 2,125,396 | $ 1,017 | $ 28,920 | $ 21,023 | $ 2,081,463 | $ 2,850,881 | $ 4,949 | $ 4,949 | $ 17,961 | $ 17,961 | $ (749,412) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Issuances of Common Units, net of issuance costs and tax withholdings | 9,134 | 91 | 9,043 | |||||||||
Distributions on Common Units | (45,986) | (460) | (45,526) | |||||||||
Distributions on Preferred Units | (623) | (6) | (617) | |||||||||
Issuances of Common Stock, net of issuance costs and tax withholdings - Shares | 239,817 | |||||||||||
Issuances of Common Stock, net of issuance costs and tax withholdings | 9,134 | $ 2 | 9,132 | |||||||||
Conversions of Common Units to Common Stock - Shares | 2,000 | |||||||||||
Conversions of Common Units to Common Stock | 102 | 102 | ||||||||||
Dividends on Common Stock | (44,917) | (44,917) | ||||||||||
Dividends on Preferred Stock | (623) | (623) | ||||||||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | 4,972 | 4,972 | ||||||||||
Distributions to noncontrolling interests in consolidated affiliates | (466) | (466) | (466) | (466) | ||||||||
Issuances of restricted stock - shares | 110,748 | |||||||||||
Issuances of restricted stock | 0 | |||||||||||
Redemptions/repurchases of Preferred Stock | (15) | (15) | ||||||||||
Share-based compensation expense, net of forfeitures | 3,783 | 3,783 | $ 1 | 38 | 3,745 | 3,782 | ||||||
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner | 5,255 | 52 | 5,203 | |||||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | (888) | (888) | ||||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | 0 | 0 | (3) | (297) | 300 | 300 | (300) | |||||
Comprehensive income: | ||||||||||||
Net income | 33,485 | 33,485 | 335 | 33,150 | 33,485 | |||||||
Other comprehensive income | 936 | 936 | 936 | 936 | ||||||||
Total comprehensive income | 34,421 | 34,421 | ||||||||||
Balance (in shares) at Mar. 31, 2017 | 102,018,119 | |||||||||||
Balance at Mar. 31, 2017 | $ 2,159,819 | 2,130,914 | $ 1,020 | 28,905 | 21,070 | 2,086,164 | 2,868,869 | 5,885 | 5,885 | 17,795 | 17,795 | (762,655) |
Balance (in shares) at Dec. 31, 2017 | 103,266,875 | 103,266,875 | ||||||||||
Balance at Dec. 31, 2017 | $ 2,237,234 | 2,208,342 | $ 1,033 | 28,892 | 21,830 | 2,161,258 | 2,929,399 | 7,838 | 7,838 | 17,416 | 17,416 | (747,344) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Issuances of Common Units, net of issuance costs and tax withholdings | (1,029) | (10) | (1,019) | |||||||||
Distributions on Common Units | (48,858) | (488) | (48,370) | |||||||||
Distributions on Preferred Units | (623) | (6) | (617) | |||||||||
Issuances of Common Stock, net of issuance costs and tax withholdings - Shares | (36,757) | |||||||||||
Issuances of Common Stock, net of issuance costs and tax withholdings | (1,029) | $ 0 | (1,029) | |||||||||
Conversions of Common Units to Common Stock - Shares | 19,196 | |||||||||||
Conversions of Common Units to Common Stock | 902 | 902 | ||||||||||
Dividends on Common Stock | (47,747) | (47,747) | ||||||||||
Dividends on Preferred Stock | (623) | (623) | ||||||||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | 19,582 | 19,582 | ||||||||||
Distributions to noncontrolling interests in consolidated affiliates | (238) | (238) | (238) | (238) | ||||||||
Issuances of restricted stock - shares | 172,440 | |||||||||||
Issuances of restricted stock | 0 | |||||||||||
Redemptions/repurchases of Preferred Stock | (5) | (5) | ||||||||||
Share-based compensation expense, net of forfeitures | 4,295 | 4,295 | $ 1 | 43 | 4,252 | 4,294 | ||||||
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner | 20,707 | 207 | 20,500 | |||||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | (888) | (888) | ||||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | 0 | 0 | (3) | (283) | 286 | 286 | (286) | |||||
Comprehensive income: | ||||||||||||
Net income | 34,246 | 34,246 | 342 | 33,904 | 34,246 | |||||||
Other comprehensive income | 7,771 | 7,771 | 7,771 | 7,771 | ||||||||
Total comprehensive income | $ 42,017 | 42,017 | ||||||||||
Balance (in shares) at Mar. 31, 2018 | 103,421,754 | 103,421,754 | ||||||||||
Balance at Mar. 31, 2018 | $ 2,253,500 | $ 2,224,613 | $ 1,034 | $ 28,887 | $ 21,915 | $ 2,169,625 | $ 2,953,148 | $ 15,609 | $ 15,609 | $ 17,464 | $ 17,464 | $ (762,642) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating activities: | ||
Net income | $ 34,246 | $ 33,485 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 57,568 | 56,145 |
Amortization of lease incentives and acquisition-related intangible assets and liabilities | (509) | (10) |
Share-based compensation expense | 4,295 | 3,783 |
Allowance for losses on accounts and accrued straight-line rents receivable | 227 | 61 |
Accrued interest on mortgages and notes receivable | (112) | (132) |
Amortization of debt issuance costs | 686 | 840 |
Amortization of cash flow hedges | (106) | 484 |
Amortization of mortgages and notes payable fair value adjustments | 317 | (30) |
Net gains on disposition of property | 0 | (5,332) |
Equity in earnings of unconsolidated affiliates | (522) | (955) |
Distributions of earnings from unconsolidated affiliates | 881 | 2,431 |
Settlement of cash flow hedges | 7,216 | 7,322 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 3,288 | 3,922 |
Prepaid expenses and other assets | (7,692) | (5,959) |
Accrued straight-line rents receivable | (6,619) | (6,185) |
Accounts payable, accrued expenses and other liabilities | (14,636) | (20,951) |
Net cash provided by operating activities | 78,528 | 68,919 |
Investing activities: | ||
Investments in acquired real estate and related intangible assets, net of cash acquired | (50,649) | 0 |
Investments in development in-process | (42,438) | (59,408) |
Investments in tenant improvements and deferred leasing costs | (33,071) | (24,649) |
Investments in building improvements | (19,293) | (17,194) |
Net proceeds from disposition of real estate assets | 0 | 11,532 |
Distributions of capital from unconsolidated affiliates | 105 | 6,512 |
Repayments of mortgages and notes receivable | 379 | 1,178 |
Changes in other investing activities | (586) | (1,596) |
Net cash used in investing activities | (145,553) | (83,625) |
Financing activities: | ||
Dividends on Common Stock | (47,747) | (44,917) |
Special dividend on Common Stock | 0 | (81,205) |
Redemptions/repurchases of Preferred Stock | (5) | (15) |
Dividends on Preferred Stock | (623) | (623) |
Distributions to noncontrolling interests in the Operating Partnership | (1,300) | (1,249) |
Special distribution to noncontrolling interests in the Operating Partnership | 0 | (2,271) |
Distributions to noncontrolling interests in consolidated affiliates | (238) | (466) |
Proceeds from the issuance of Common Stock | 561 | 13,191 |
Costs paid for the issuance of Common Stock | (46) | (250) |
Repurchase of shares related to tax withholdings | (1,544) | (3,807) |
Borrowings on revolving credit facility | 32,000 | 200,300 |
Repayments of revolving credit facility | (277,000) | (69,300) |
Borrowings on mortgages and notes payable | 345,863 | 346,001 |
Repayments of mortgages and notes payable | (444) | (380,261) |
Changes in debt issuance costs and other financing activities | (2,903) | (4,894) |
Net cash provided by/(used in) financing activities | 46,574 | (29,766) |
Net decrease in cash and cash equivalents and restricted cash | (20,451) | (44,472) |
Cash and cash equivalents and restricted cash at beginning of the period | 88,333 | 78,631 |
Cash and cash equivalents and restricted cash at end of the period | 67,882 | 34,159 |
Reconciliation of cash and cash equivalents and restricted cash: | ||
Cash and cash equivalents at end of the period | 31,034 | 4,918 |
Restricted cash at end of the period | 36,848 | 29,241 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest, net of amounts capitalized | 15,986 | 18,909 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Unrealized gains on cash flow hedges | 7,877 | 452 |
Conversions of Common Units to Common Stock | 902 | 102 |
Changes in accrued capital expenditures | (7,333) | (6,741) |
Write-off of fully depreciated real estate assets | 10,511 | 10,649 |
Write-off of fully amortized leasing costs | 7,112 | 10,091 |
Write-off of fully amortized debt issuance costs | 0 | 3,161 |
Adjustment of noncontrolling interests in the Operating Partnership to fair value | (19,582) | (4,972) |
Highwoods Realty Limited Partnership [Member] | ||
Operating activities: | ||
Net income | 34,246 | 33,485 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 57,568 | 56,145 |
Amortization of lease incentives and acquisition-related intangible assets and liabilities | (509) | (10) |
Share-based compensation expense | 4,295 | 3,783 |
Allowance for losses on accounts and accrued straight-line rents receivable | 227 | 61 |
Accrued interest on mortgages and notes receivable | (112) | (132) |
Amortization of debt issuance costs | 686 | 840 |
Amortization of cash flow hedges | (106) | 484 |
Amortization of mortgages and notes payable fair value adjustments | 317 | (30) |
Net gains on disposition of property | 0 | (5,332) |
Equity in earnings of unconsolidated affiliates | (522) | (955) |
Distributions of earnings from unconsolidated affiliates | 881 | 2,431 |
Settlement of cash flow hedges | 7,216 | 7,322 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 3,288 | 3,922 |
Prepaid expenses and other assets | (7,692) | (5,959) |
Accrued straight-line rents receivable | (6,619) | (6,185) |
Accounts payable, accrued expenses and other liabilities | (14,636) | (20,951) |
Net cash provided by operating activities | 78,528 | 68,919 |
Investing activities: | ||
Investments in acquired real estate and related intangible assets, net of cash acquired | (50,649) | 0 |
Investments in development in-process | (42,438) | (59,408) |
Investments in tenant improvements and deferred leasing costs | (33,071) | (24,649) |
Investments in building improvements | (19,293) | (17,194) |
Net proceeds from disposition of real estate assets | 0 | 11,532 |
Distributions of capital from unconsolidated affiliates | 105 | 6,512 |
Repayments of mortgages and notes receivable | 379 | 1,178 |
Changes in other investing activities | (586) | (1,596) |
Net cash used in investing activities | (145,553) | (83,625) |
Financing activities: | ||
Distributions on Common Units | (48,858) | (45,986) |
Special distribution on Common Units | 0 | (83,149) |
Redemptions/repurchases of Preferred Units | (5) | (15) |
Distributions on Preferred Units | (623) | (623) |
Distributions to noncontrolling interests in consolidated affiliates | (238) | (466) |
Proceeds from the issuance of Common Units | 561 | 13,191 |
Costs paid for the issuance of Common Units | (46) | (250) |
Repurchase of units related to tax withholdings | (1,544) | (3,807) |
Borrowings on revolving credit facility | 32,000 | 200,300 |
Repayments of revolving credit facility | (277,000) | (69,300) |
Borrowings on mortgages and notes payable | 345,863 | 346,001 |
Repayments of mortgages and notes payable | (444) | (380,261) |
Changes in debt issuance costs and other financing activities | (3,092) | (5,401) |
Net cash provided by/(used in) financing activities | 46,574 | (29,766) |
Net decrease in cash and cash equivalents and restricted cash | (20,451) | (44,472) |
Cash and cash equivalents and restricted cash at beginning of the period | 88,333 | 78,631 |
Cash and cash equivalents and restricted cash at end of the period | 67,882 | 34,159 |
Reconciliation of cash and cash equivalents and restricted cash: | ||
Cash and cash equivalents at end of the period | 31,034 | 4,918 |
Restricted cash at end of the period | 36,848 | 29,241 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest, net of amounts capitalized | 15,986 | 18,909 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Unrealized gains on cash flow hedges | 7,877 | 452 |
Changes in accrued capital expenditures | (7,333) | (6,741) |
Write-off of fully depreciated real estate assets | 10,511 | 10,649 |
Write-off of fully amortized leasing costs | 7,112 | 10,091 |
Write-off of fully amortized debt issuance costs | 0 | 3,161 |
Adjustment of Redeemable Common Units to fair value | $ (20,896) | $ (5,435) |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 , we owned or had an interest in 30.7 million rentable square feet of in-service properties, 1.5 million rentable square feet of properties under development and approximately 400 acres of development land. The Company is the sole general partner of the Operating Partnership. At March 31, 2018 , the Company owned all of the Preferred Units and 103.0 million , or 97.4% , of the Common Units in the Operating Partnership. Limited partners owned the remaining 2.8 million Common Units. During the three months ended March 31, 2018 , the Company redeemed 19,196 Common Units for a like number of shares of Common Stock. Basis of Presentation Our Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company's Consolidated Financial Statements include the Operating Partnership, wholly owned subsidiaries and those entities in which the Company has the controlling interest. The Operating Partnership's Consolidated Financial Statements include wholly owned subsidiaries and those entities in which the Operating Partnership has the controlling interest. All intercompany transactions and accounts have been eliminated. 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 2017 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. Insurance Beginning in 2018, we are primarily self-insured for health care claims for eligible participating employees. We have stop-loss coverage to limit our exposure to significant claims on a per claim and annual aggregate basis. We determine our liabilities for claims, including incurred but not reported losses, based on all relevant information, including actuarial estimates of claim liabilities. At March 31, 2018 , a reserve of $0.4 million was recorded to cover estimated reported and unreported claims. 1. Description of Business and Significant Accounting Policies – Continued Recently Issued Accounting Standards The Financial Accounting Standards Board ("FASB") issued an accounting standards update ("ASU") which superseded the revenue recognition requirements under previous guidance. We adopted the ASU on January 1, 2018. Several updates have been issued subsequently which were intended to promote a more consistent interpretation and application of the principles outlined in the ASU. The ASU requires the use of a new five-step model to recognize revenue from contracts with customers. 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 are also required to disclose information regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In analyzing our contracts with customers, we determined that the most material potential impact from the adoption of this ASU would be in how revenue is recognized for sales of real estate with continuing involvement. Prior to the adoption of this ASU, profit for such sales transactions was recognized and then reduced by the maximum exposure to loss related to the nature of the continuing involvement at the time of sale. Upon adoption of this ASU, any continuing involvement must be analyzed as a separate performance obligation in the contract and a portion of the sales price allocated to each performance obligation. When the continuing involvement performance obligation is satisfied, the sales price allocated to it will be recognized. We had no sales of real estate with continuing involvement during the first quarter of 2018 or prior periods; however, we will use such methodology for any future real estate sales with continuing involvement. Our internal controls with respect to accounting for such sales have been updated accordingly. The adoption of this ASU resulted in no other changes with respect to the timing of revenue recognition or internal controls related to our other contracts with customers which include primarily management, development and construction fees and transient parking income, all of which are not material to our Consolidated Financial Statements. As such, there is no cumulative-effect adjustment from the adoption of this ASU reflected in our Consolidated Financial Statements. The FASB issued an ASU that requires entities to show changes in total cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning of period and end of period balances rather than presented as transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. We adopted the ASU as of January 1, 2018 with retrospective application to our Consolidated Statements of Cash Flows. Accordingly, our Consolidated Statements of Cash Flows present a reconciliation of the changes in cash and cash equivalents and restricted cash. The effect of the adoption resulted in a $0.1 million decrease in net cash used in investing activities for the three months ended March 31, 2017. Restricted cash represents cash deposits that are legally restricted or held by third parties on our behalf, such as construction-related escrows, property disposition proceeds set aside and designated or intended to fund future tax-deferred exchanges of qualifying real estate investments, escrows and reserves for debt service, real estate taxes and property insurance established pursuant to certain mortgage financing arrangements and any deposits made with lenders to unencumber secured properties. The FASB issued an ASU that clarifies and narrows the definition of a business used in determining whether to account for a transaction as an asset acquisition or business combination. The guidance requires evaluation of the fair value of the assets acquired to determine if it is concentrated in a single identifiable asset or a group of similar identifiable assets. If so, the transferred assets would not be a business. The guidance also requires a business to include at least one substantive process and narrows the definition of outputs. We adopted the ASU prospectively as of January 1, 2018. We expect that the majority of our future acquisitions would not meet the definition of a business; therefore, the related acquisition costs would be capitalized as part of the purchase price. The FASB issued an ASU that clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. The guidance requires modification accounting if the value, vesting conditions or classification of the award changes. We adopted the ASU as of January 1, 2018 with no effect on our Consolidated Financial Statements. 1. Description of Business and Significant Accounting Policies – Continued The FASB issued an ASU which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. We are continuing to conduct our analysis of the impact of the guidance on our Consolidated Financial Statements and have an active project team working on the evaluation and implementation of the guidance. We continue to monitor FASB activity with respect to possible amendments to this ASU, particularly the FASB’s recent vote to provide an optional practical expedient to lessors that removes the requirement to separate lease and non-lease components when the pattern of recognition of those components are the same and, when combined as a single unit, those would be classified as operating leases. Should the proposed amendment be issued, we expect to elect the practical expedient as our initial analysis of our leases indicates that the pattern of recognition of our material non-lease components (primarily cost recovery income) are the same as the lease components and will not require the use of the five-step revenue recognition model discussed above. We currently believe that the adoption of the ASU will not significantly change the accounting for operating leases on our Consolidated Balance Sheets where we are the lessor, and that such leases will be accounted for in a similar method to existing standards with the underlying leased asset being reported and recognized as a real estate asset. In addition, the guidance requires lessors to capitalize and amortize only incremental direct leasing costs. As a result, upon the adoption of the ASU, we will no longer be able to capitalize and amortize certain leasing related costs and instead will expense these costs as incurred. We are in the process of evaluating the impact to our results of operations of expensing such costs. The ASU is required to be adopted in 2019 using a modified retrospective approach which requires a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. Leases where we are the lessee include primarily our operating ground leases which are not material to our Consolidated Financial Statements. We will continue to refine our evaluation and finalize our implementation plan throughout 2018. The FASB issued an ASU that eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item when the hedged item affects earnings. The ASU is required to be adopted in 2019 using a modified retrospective approach. We do not expect such adoption to have a material effect on our Consolidated Financial Statements. The FASB 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. |
Real Estate Assets
Real Estate Assets | 3 Months Ended |
Mar. 31, 2018 | |
Real Estate [Abstract] | |
Real Estate Assets | Real Estate Assets During the first quarter of 2018, we acquired two development parcels totaling approximately nine acres in Nashville for an aggregate purchase price, including capitalized acquisition costs, of $50.6 million . |
Mortgages and Notes Receivable
Mortgages and Notes Receivable | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Mortgages and Notes Receivable | Mortgages and Notes Receivable Mortgages and notes receivable were $6.2 million and $6.4 million at March 31, 2018 and December 31, 2017 , 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 March 31, 2018 , our mortgages and notes receivable were not in default and there were no other indicators of impairment. |
Intangible Assets and Below Mar
Intangible Assets and Below Market Lease Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
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: March 31, December 31, Assets: Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets) $ 343,211 $ 344,191 Less accumulated amortization (146,909 ) (143,512 ) $ 196,302 $ 200,679 Liabilities (in accounts payable, accrued expenses and other liabilities): Acquisition-related below market lease liabilities $ 59,646 $ 59,947 Less accumulated amortization (29,436 ) (28,214 ) $ 30,210 $ 31,733 The following table sets forth amortization of intangible assets and below market lease liabilities: Three Months Ended 2018 2017 Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization) $ 9,495 $ 10,619 Amortization of lease incentives (in rental and other revenues) $ 429 $ 397 Amortization of acquisition-related intangible assets (in rental and other revenues) $ 448 $ 1,036 Amortization of acquisition-related intangible assets (in rental property and other expenses) $ 137 $ 137 Amortization of acquisition-related below market lease liabilities (in rental and other revenues) $ (1,523 ) $ (1,580 ) 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) April 1 through December 31, 2018 $ 27,309 $ 1,218 $ 1,213 $ 416 $ (4,414 ) 2019 31,646 1,503 1,273 553 (5,446 ) 2020 27,150 1,227 959 518 (5,186 ) 2021 22,748 1,002 632 — (4,377 ) 2022 18,565 788 462 — (3,264 ) Thereafter 51,453 4,259 1,408 — (7,523 ) $ 178,871 $ 9,997 $ 5,947 $ 1,487 $ (30,210 ) Weighted average remaining amortization periods as of March 31, 2018 (in years) 7.6 9.8 6.5 2.7 6.4 |
Mortgages and Notes Payable
Mortgages and Notes Payable | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Mortgages and Notes Payable | Mortgages and Notes Payable The following table sets forth our mortgages and notes payable: March 31, December 31, Secured indebtedness $ 98,537 $ 98,981 Unsecured indebtedness 2,024,685 1,923,513 Less-unamortized debt issuance costs (10,638 ) (8,161 ) Total mortgages and notes payable, net $ 2,112,584 $ 2,014,333 At March 31, 2018 , our secured mortgage loans were collateralized by real estate assets with an aggregate undepreciated book value of $ 147.6 million . Our $ 600.0 million unsecured revolving credit facility is scheduled to mature in January 2022 and includes an accordion feature that allows for an additional $400.0 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 100 basis points and the annual facility fee is 20 basis points. There were no amounts outstanding under our revolving credit facility at March 31, 2018 . There was $172.0 million outstanding under our revolving credit facility at April 17, 2018 . At both March 31, 2018 and April 17, 2018 , we had $0.5 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 March 31, 2018 and April 17, 2018 was $ 599.5 million and $427.5 million , respectively. During the first quarter of 2018, the Operating Partnership issued $350.0 million aggregate principal amount of 4.125% notes due 2028 , less original issuance discount of $4.1 million . These notes were priced to yield 4.271% . Underwriting fees and other expenses were incurred that aggregated $2.9 million ; these costs were deferred and will be amortized over the term of the notes. We are currently in compliance with financial covenants with respect to our consolidated debt. We have considered our short-term liquidity needs and the adequacy of our estimated cash flows from operating activities and other available financing sources to meet these needs. We intend to meet these short-term liquidity requirements through a combination of the following: • available cash and cash equivalents; • cash flows from operating activities; • issuance of debt securities by the Operating Partnership; • issuance of secured debt; • bank term loans; • borrowings under our revolving credit facility; • issuance of equity securities by the Company or the Operating Partnership; and • the disposition of non-core assets. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments During 2017, we entered into $150.0 million notional amount of forward-starting swaps that effectively locked the underlying 10 -year treasury rate at 2.44% with respect to a planned issuance of debt securities by the Operating Partnership. Upon issuance of the $350.0 million aggregate principal amount of 4.125% notes due 2028 during the first quarter of 2018, we terminated the forward-starting swaps resulting in an unrealized gain of $7.0 million in accumulated other comprehensive income and a gain of $0.2 million of hedge ineffectiveness in interest expense. The counterparties under our swaps are major financial institutions. The swap agreements contain a provision whereby if we default on certain of our indebtedness and which default results in repayment of such indebtedness being, or becoming capable of being, accelerated by the lender, then we could also be declared in default on our swaps. Our interest rate swaps have been designated as and are being accounted for as cash flow hedges with the effective portion of changes in fair value recorded in other comprehensive income each reporting period. No significant gain or loss was recognized related to hedge ineffectiveness or to amounts excluded from effectiveness testing on our cash flow hedges during the three months ended March 31, 2018 and 2017 . We have no collateral requirements related to our interest rate swaps. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on our debt. During the period from April 1, 2018 through March 31, 2019 , we estimate that $2.4 million will be reclassified as a decrease to interest expense. The following table sets forth the fair value of our derivatives: March 31, December 31, Derivatives: Derivatives designated as cash flow hedges in prepaid expenses and other assets: Interest rate swaps $ 2,179 $ 1,286 The following table sets forth the effect of our cash flow hedges on accumulated other comprehensive income and interest expense: Three Months Ended 2018 2017 Derivatives Designated as Cash Flow Hedges: Amount of unrealized gains recognized in accumulated other comprehensive income on derivatives (effective portion): Interest rate swaps $ 7,877 $ 452 Amount of (gains)/losses reclassified out of accumulated other comprehensive income into contractual interest expense (effective portion): Interest rate swaps $ (106 ) $ 484 |
Noncontrolling Interests
Noncontrolling Interests | 3 Months Ended |
Mar. 31, 2018 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests Noncontrolling Interests in Consolidated Affiliates At March 31, 2018 , our noncontrolling interests in consolidated affiliates relate to our joint venture partner's 50.0% interest in office properties in Richmond. 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: Three Months Ended 2018 2017 Beginning noncontrolling interests in the Operating Partnership $ 144,009 $ 144,802 Adjustment of noncontrolling interests in the Operating Partnership to fair value (19,582 ) (4,972 ) Conversions of Common Units to Common Stock (902 ) (102 ) Net income attributable to noncontrolling interests in the Operating Partnership 888 888 Distributions to noncontrolling interests in the Operating Partnership (1,300 ) (1,249 ) Total noncontrolling interests in the Operating Partnership $ 123,113 $ 139,367 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 2018 2017 Net income available for common stockholders $ 32,449 $ 31,674 Increase in additional paid in capital from conversions of Common Units 902 102 Change from net income available for common stockholders and transfers from noncontrolling interests $ 33,351 $ 31,776 |
Disclosure About Fair Value of
Disclosure About Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Disclosure About Fair Value of Financial Instruments | Disclosure About Fair Value of Financial Instruments The following summarizes the 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 assets include the fair value of our mortgages and notes receivable and interest rate swaps. Our Level 2 liabilities include the fair value of our mortgages and notes payable. 8. Disclosure About Fair Value of Financial Instruments - Continued 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. The following table sets forth our assets and liabilities and the Company's noncontrolling interests in the Operating Partnership that are measured or disclosed at fair value within the fair value hierarchy. Level 1 Level 2 Total Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Observable Inputs Fair Value at March 31, 2018: Assets: Mortgages and notes receivable, at fair value (1) $ 6,158 $ — $ 6,158 Interest rate swaps (in prepaid expenses and other assets) 2,179 — 2,179 Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 2,376 2,376 — Total Assets $ 10,713 $ 2,376 $ 8,337 Noncontrolling Interests in the Operating Partnership $ 123,113 $ 123,113 $ — Liabilities: Mortgages and notes payable, net, at fair value (1) $ 2,090,232 $ — $ 2,090,232 Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 2,376 2,376 — Total Liabilities $ 2,092,608 $ 2,376 $ 2,090,232 Fair Value at December 31, 2017: Assets: Mortgages and notes receivable, at fair value (1) $ 6,425 $ — $ 6,425 Interest rate swaps (in prepaid expenses and other assets) 1,286 — 1,286 Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 2,388 2,388 — Total Assets $ 10,099 $ 2,388 $ 7,711 Noncontrolling Interests in the Operating Partnership $ 144,009 $ 144,009 $ — Liabilities: Mortgages and notes payable, net, at fair value (1) $ 2,015,689 $ — $ 2,015,689 Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 2,388 2,388 — Total Liabilities $ 2,018,077 $ 2,388 $ 2,015,689 __________ (1) Amounts recorded at historical cost on our Consolidated Balance Sheets at March 31, 2018 and December 31, 2017 . |
Share-Based Payments
Share-Based Payments | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Payments | Share-Based Payments During the three months ended March 31, 2018 , the Company granted 94,984 shares of time-based restricted stock and 77,456 shares of total return-based restricted stock with weighted average grant date fair values per share of $ 43.01 and $ 40.81 , respectively. We recorded share-based compensation expense of $ 4.3 million and $ 3.8 million during the three months ended March 31, 2018 and 2017 , respectively. At March 31, 2018 , there was $8.1 million of total unrecognized share-based compensation costs, which will be recognized over a weighted average remaining contractual term of 2.7 years. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income/(Loss) | Accumulated Other Comprehensive Income The following table sets forth the components of accumulated other comprehensive income: Three Months Ended 2018 2017 Cash flow hedges: Beginning balance $ 7,838 $ 4,949 Unrealized gains on cash flow hedges 7,877 452 Amortization of cash flow hedges (1) (106 ) 484 Total accumulated other comprehensive income $ 15,609 $ 5,885 __________ (1) Amounts reclassified out of accumulated other comprehensive income into contractual interest expense. |
Real Estate and Other Assets He
Real Estate and Other Assets Held For Sale | 3 Months Ended |
Mar. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Real Estate and Other Assets Held For Sale | Real Estate and Other Assets Held For Sale The following table sets forth the assets held for sale at March 31, 2018 and December 31, 2017 , which are considered non-core: March 31, December 31, Assets: Land $ 870 $ 870 Buildings and tenant improvements 21,318 21,318 Land held for development 355 355 Less-accumulated depreciation (9,304 ) (9,304 ) Net real estate assets 13,239 13,239 Accrued straight-line rents receivable 475 591 Deferred leasing costs, net 255 253 Prepaid expenses and other assets 48 35 Real estate and other assets, net, held for sale $ 14,017 $ 14,118 |
Earnings Per Share and Per Unit
Earnings Per Share and Per Unit | 3 Months Ended |
Mar. 31, 2018 | |
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 2018 2017 Earnings per Common Share - basic: Numerator: Net income $ 34,246 $ 33,485 Net (income) attributable to noncontrolling interests in the Operating Partnership (888 ) (888 ) Net (income) attributable to noncontrolling interests in consolidated affiliates (286 ) (300 ) Dividends on Preferred Stock (623 ) (623 ) Net income available for common stockholders $ 32,449 $ 31,674 Denominator: Denominator for basic earnings per Common Share – weighted average shares 103,324 101,738 Net income available for common stockholders $ 0.31 $ 0.31 Earnings per Common Share - diluted: Numerator: Net income $ 34,246 $ 33,485 Net (income) attributable to noncontrolling interests in consolidated affiliates (286 ) (300 ) Dividends on Preferred Stock (623 ) (623 ) Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership $ 33,337 $ 32,562 Denominator: Denominator for basic earnings per Common Share – weighted average shares 103,324 101,738 Add: Stock options using the treasury method 26 85 Noncontrolling interests Common Units 2,815 2,838 Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions (1) 106,165 104,661 Net income available for common stockholders $ 0.31 $ 0.31 __________ (1) Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable. 12. 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 2018 2017 Earnings per Common Unit - basic: Numerator: Net income $ 34,246 $ 33,485 Net (income) attributable to noncontrolling interests in consolidated affiliates (286 ) (300 ) Distributions on Preferred Units (623 ) (623 ) Net income available for common unitholders $ 33,337 $ 32,562 Denominator: Denominator for basic earnings per Common Unit – weighted average units 105,730 104,167 Net income available for common unitholders $ 0.32 $ 0.31 Earnings per Common Unit - diluted: Numerator: Net income $ 34,246 $ 33,485 Net (income) attributable to noncontrolling interests in consolidated affiliates (286 ) (300 ) Distributions on Preferred Units (623 ) (623 ) Net income available for common unitholders $ 33,337 $ 32,562 Denominator: Denominator for basic earnings per Common Unit – weighted average units 105,730 104,167 Add: Stock options using the treasury method 26 85 Denominator for diluted earnings per Common Unit – adjusted weighted average units and assumed conversions (1) 105,756 104,252 Net income available for common unitholders $ 0.32 $ 0.31 __________ (1) Includes all unvested restricted stock where distributions on such restricted stock are non-forfeitable. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2018 | |
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 and which is defined as rental and other revenues less rental property and other expenses, for each of our reportable segments. Three Months Ended 2018 2017 Rental and Other Revenues: Office: Atlanta $ 35,483 $ 34,209 Greensboro 6,026 5,302 Memphis 10,208 11,795 Nashville 30,723 23,690 Orlando 13,300 12,438 Pittsburgh 15,282 14,849 Raleigh 29,804 29,546 Richmond 11,049 10,942 Tampa 25,425 23,256 Total Office Segment 177,300 166,027 Other 3,138 3,381 Total Rental and Other Revenues $ 180,438 $ 169,408 Net Operating Income: Office: Atlanta $ 22,670 $ 22,006 Greensboro 4,011 3,358 Memphis 6,645 7,272 Nashville 21,983 16,624 Orlando 8,263 7,578 Pittsburgh 8,971 8,625 Raleigh 21,872 21,465 Richmond 7,581 7,621 Tampa 16,760 15,122 Total Office Segment 118,756 109,671 Other 2,250 2,341 Total Net Operating Income 121,006 112,012 Reconciliation to income before disposition of investment properties and activity in unconsolidated affiliates: Depreciation and amortization (57,568 ) (56,145 ) General and administrative expenses (11,778 ) (11,490 ) Interest expense (18,391 ) (17,863 ) Other income 455 684 Income before disposition of investment properties and activity in unconsolidated affiliates $ 33,724 $ 27,198 |
Description of Business and S21
Description of Business and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Our Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company's Consolidated Financial Statements include the Operating Partnership, wholly owned subsidiaries and those entities in which the Company has the controlling interest. The Operating Partnership's Consolidated Financial Statements include wholly owned subsidiaries and those entities in which the Operating Partnership has the controlling interest. All intercompany transactions and accounts have been eliminated. 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 2017 Annual Report on Form 10-K. |
Insurance | Insurance Beginning in 2018, we are primarily self-insured for health care claims for eligible participating employees. We have stop-loss coverage to limit our exposure to significant claims on a per claim and annual aggregate basis. We determine our liabilities for claims, including incurred but not reported losses, based on all relevant information, including actuarial estimates of claim liabilities. At March 31, 2018 , a reserve of $0.4 million was recorded to cover estimated reported and unreported claims. |
Use of Estimates | 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 | Recently Issued Accounting Standards The Financial Accounting Standards Board ("FASB") issued an accounting standards update ("ASU") which superseded the revenue recognition requirements under previous guidance. We adopted the ASU on January 1, 2018. Several updates have been issued subsequently which were intended to promote a more consistent interpretation and application of the principles outlined in the ASU. The ASU requires the use of a new five-step model to recognize revenue from contracts with customers. 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 are also required to disclose information regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In analyzing our contracts with customers, we determined that the most material potential impact from the adoption of this ASU would be in how revenue is recognized for sales of real estate with continuing involvement. Prior to the adoption of this ASU, profit for such sales transactions was recognized and then reduced by the maximum exposure to loss related to the nature of the continuing involvement at the time of sale. Upon adoption of this ASU, any continuing involvement must be analyzed as a separate performance obligation in the contract and a portion of the sales price allocated to each performance obligation. When the continuing involvement performance obligation is satisfied, the sales price allocated to it will be recognized. We had no sales of real estate with continuing involvement during the first quarter of 2018 or prior periods; however, we will use such methodology for any future real estate sales with continuing involvement. Our internal controls with respect to accounting for such sales have been updated accordingly. The adoption of this ASU resulted in no other changes with respect to the timing of revenue recognition or internal controls related to our other contracts with customers which include primarily management, development and construction fees and transient parking income, all of which are not material to our Consolidated Financial Statements. As such, there is no cumulative-effect adjustment from the adoption of this ASU reflected in our Consolidated Financial Statements. The FASB issued an ASU that requires entities to show changes in total cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning of period and end of period balances rather than presented as transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. We adopted the ASU as of January 1, 2018 with retrospective application to our Consolidated Statements of Cash Flows. Accordingly, our Consolidated Statements of Cash Flows present a reconciliation of the changes in cash and cash equivalents and restricted cash. The effect of the adoption resulted in a $0.1 million decrease in net cash used in investing activities for the three months ended March 31, 2017. Restricted cash represents cash deposits that are legally restricted or held by third parties on our behalf, such as construction-related escrows, property disposition proceeds set aside and designated or intended to fund future tax-deferred exchanges of qualifying real estate investments, escrows and reserves for debt service, real estate taxes and property insurance established pursuant to certain mortgage financing arrangements and any deposits made with lenders to unencumber secured properties. The FASB issued an ASU that clarifies and narrows the definition of a business used in determining whether to account for a transaction as an asset acquisition or business combination. The guidance requires evaluation of the fair value of the assets acquired to determine if it is concentrated in a single identifiable asset or a group of similar identifiable assets. If so, the transferred assets would not be a business. The guidance also requires a business to include at least one substantive process and narrows the definition of outputs. We adopted the ASU prospectively as of January 1, 2018. We expect that the majority of our future acquisitions would not meet the definition of a business; therefore, the related acquisition costs would be capitalized as part of the purchase price. The FASB issued an ASU that clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. The guidance requires modification accounting if the value, vesting conditions or classification of the award changes. We adopted the ASU as of January 1, 2018 with no effect on our Consolidated Financial Statements. 1. Description of Business and Significant Accounting Policies – Continued The FASB issued an ASU which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. We are continuing to conduct our analysis of the impact of the guidance on our Consolidated Financial Statements and have an active project team working on the evaluation and implementation of the guidance. We continue to monitor FASB activity with respect to possible amendments to this ASU, particularly the FASB’s recent vote to provide an optional practical expedient to lessors that removes the requirement to separate lease and non-lease components when the pattern of recognition of those components are the same and, when combined as a single unit, those would be classified as operating leases. Should the proposed amendment be issued, we expect to elect the practical expedient as our initial analysis of our leases indicates that the pattern of recognition of our material non-lease components (primarily cost recovery income) are the same as the lease components and will not require the use of the five-step revenue recognition model discussed above. We currently believe that the adoption of the ASU will not significantly change the accounting for operating leases on our Consolidated Balance Sheets where we are the lessor, and that such leases will be accounted for in a similar method to existing standards with the underlying leased asset being reported and recognized as a real estate asset. In addition, the guidance requires lessors to capitalize and amortize only incremental direct leasing costs. As a result, upon the adoption of the ASU, we will no longer be able to capitalize and amortize certain leasing related costs and instead will expense these costs as incurred. We are in the process of evaluating the impact to our results of operations of expensing such costs. The ASU is required to be adopted in 2019 using a modified retrospective approach which requires a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. Leases where we are the lessee include primarily our operating ground leases which are not material to our Consolidated Financial Statements. We will continue to refine our evaluation and finalize our implementation plan throughout 2018. The FASB issued an ASU that eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item when the hedged item affects earnings. The ASU is required to be adopted in 2019 using a modified retrospective approach. We do not expect such adoption to have a material effect on our Consolidated Financial Statements. The FASB 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. |
Intangible Assets and Below M22
Intangible Assets and Below Market Lease Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Total 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: March 31, December 31, Assets: Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets) $ 343,211 $ 344,191 Less accumulated amortization (146,909 ) (143,512 ) $ 196,302 $ 200,679 Liabilities (in accounts payable, accrued expenses and other liabilities): Acquisition-related below market lease liabilities $ 59,646 $ 59,947 Less accumulated amortization (29,436 ) (28,214 ) $ 30,210 $ 31,733 |
Amortization of Intangible Assets and Below Market Lease Liabilities | The following table sets forth amortization of intangible assets and below market lease liabilities: Three Months Ended 2018 2017 Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization) $ 9,495 $ 10,619 Amortization of lease incentives (in rental and other revenues) $ 429 $ 397 Amortization of acquisition-related intangible assets (in rental and other revenues) $ 448 $ 1,036 Amortization of acquisition-related intangible assets (in rental property and other expenses) $ 137 $ 137 Amortization of acquisition-related below market lease liabilities (in rental and other revenues) $ (1,523 ) $ (1,580 ) |
Scheduled Future Amortization of Intangible Assets and Below Market Lease Liabilities | 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) April 1 through December 31, 2018 $ 27,309 $ 1,218 $ 1,213 $ 416 $ (4,414 ) 2019 31,646 1,503 1,273 553 (5,446 ) 2020 27,150 1,227 959 518 (5,186 ) 2021 22,748 1,002 632 — (4,377 ) 2022 18,565 788 462 — (3,264 ) Thereafter 51,453 4,259 1,408 — (7,523 ) $ 178,871 $ 9,997 $ 5,947 $ 1,487 $ (30,210 ) Weighted average remaining amortization periods as of March 31, 2018 (in years) 7.6 9.8 6.5 2.7 6.4 |
Mortgages and Notes Payable (Ta
Mortgages and Notes Payable (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Consolidated Mortgages and Notes Payable | The following table sets forth our mortgages and notes payable: March 31, December 31, Secured indebtedness $ 98,537 $ 98,981 Unsecured indebtedness 2,024,685 1,923,513 Less-unamortized debt issuance costs (10,638 ) (8,161 ) Total mortgages and notes payable, net $ 2,112,584 $ 2,014,333 |
Derivative Financial Instrume24
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments, Fair Value | The following table sets forth the fair value of our derivatives: March 31, December 31, Derivatives: Derivatives designated as cash flow hedges in prepaid expenses and other assets: Interest rate swaps $ 2,179 $ 1,286 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following table sets forth the effect of our cash flow hedges on accumulated other comprehensive income and interest expense: Three Months Ended 2018 2017 Derivatives Designated as Cash Flow Hedges: Amount of unrealized gains recognized in accumulated other comprehensive income on derivatives (effective portion): Interest rate swaps $ 7,877 $ 452 Amount of (gains)/losses reclassified out of accumulated other comprehensive income into contractual interest expense (effective portion): Interest rate swaps $ (106 ) $ 484 |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) - Highwoods Properties, Inc. [Member] | 3 Months Ended |
Mar. 31, 2018 | |
Noncontrolling Interest [Line Items] | |
Noncontrolling Interests in the Operating Partnership | The following table sets forth the Company's noncontrolling interests in the Operating Partnership: Three Months Ended 2018 2017 Beginning noncontrolling interests in the Operating Partnership $ 144,009 $ 144,802 Adjustment of noncontrolling interests in the Operating Partnership to fair value (19,582 ) (4,972 ) Conversions of Common Units to Common Stock (902 ) (102 ) Net income attributable to noncontrolling interests in the Operating Partnership 888 888 Distributions to noncontrolling interests in the Operating Partnership (1,300 ) (1,249 ) Total noncontrolling interests in the Operating Partnership $ 123,113 $ 139,367 |
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership | 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 2018 2017 Net income available for common stockholders $ 32,449 $ 31,674 Increase in additional paid in capital from conversions of Common Units 902 102 Change from net income available for common stockholders and transfers from noncontrolling interests $ 33,351 $ 31,776 |
Disclosure About Fair Value o26
Disclosure About Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements of Assets, Liabilities and Noncontrolling Interests | The following table sets forth our assets and liabilities and the Company's noncontrolling interests in the Operating Partnership that are measured or disclosed at fair value within the fair value hierarchy. Level 1 Level 2 Total Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Observable Inputs Fair Value at March 31, 2018: Assets: Mortgages and notes receivable, at fair value (1) $ 6,158 $ — $ 6,158 Interest rate swaps (in prepaid expenses and other assets) 2,179 — 2,179 Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 2,376 2,376 — Total Assets $ 10,713 $ 2,376 $ 8,337 Noncontrolling Interests in the Operating Partnership $ 123,113 $ 123,113 $ — Liabilities: Mortgages and notes payable, net, at fair value (1) $ 2,090,232 $ — $ 2,090,232 Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 2,376 2,376 — Total Liabilities $ 2,092,608 $ 2,376 $ 2,090,232 Fair Value at December 31, 2017: Assets: Mortgages and notes receivable, at fair value (1) $ 6,425 $ — $ 6,425 Interest rate swaps (in prepaid expenses and other assets) 1,286 — 1,286 Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 2,388 2,388 — Total Assets $ 10,099 $ 2,388 $ 7,711 Noncontrolling Interests in the Operating Partnership $ 144,009 $ 144,009 $ — Liabilities: Mortgages and notes payable, net, at fair value (1) $ 2,015,689 $ — $ 2,015,689 Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 2,388 2,388 — Total Liabilities $ 2,018,077 $ 2,388 $ 2,015,689 __________ (1) Amounts recorded at historical cost on our Consolidated Balance Sheets at March 31, 2018 and December 31, 2017 . |
Accumulated Other Comprehensi27
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of Accumulated Other Comprehensive Income/(Loss) | The following table sets forth the components of accumulated other comprehensive income: Three Months Ended 2018 2017 Cash flow hedges: Beginning balance $ 7,838 $ 4,949 Unrealized gains on cash flow hedges 7,877 452 Amortization of cash flow hedges (1) (106 ) 484 Total accumulated other comprehensive income $ 15,609 $ 5,885 __________ (1) Amounts reclassified out of accumulated other comprehensive income into contractual interest expense. |
Real Estate and Other Assets 28
Real Estate and Other Assets Held For Sale (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Real Estate and Other Assets of the Properties Classified As Held For Sale | The following table sets forth the assets held for sale at March 31, 2018 and December 31, 2017 , which are considered non-core: March 31, December 31, Assets: Land $ 870 $ 870 Buildings and tenant improvements 21,318 21,318 Land held for development 355 355 Less-accumulated depreciation (9,304 ) (9,304 ) Net real estate assets 13,239 13,239 Accrued straight-line rents receivable 475 591 Deferred leasing costs, net 255 253 Prepaid expenses and other assets 48 35 Real estate and other assets, net, held for sale $ 14,017 $ 14,118 |
Earnings Per Share and Per Un29
Earnings Per Share and Per Unit (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share and Per Unit Basic and Diluted [Line Items] | |
Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share of the Company: Three Months Ended 2018 2017 Earnings per Common Share - basic: Numerator: Net income $ 34,246 $ 33,485 Net (income) attributable to noncontrolling interests in the Operating Partnership (888 ) (888 ) Net (income) attributable to noncontrolling interests in consolidated affiliates (286 ) (300 ) Dividends on Preferred Stock (623 ) (623 ) Net income available for common stockholders $ 32,449 $ 31,674 Denominator: Denominator for basic earnings per Common Share – weighted average shares 103,324 101,738 Net income available for common stockholders $ 0.31 $ 0.31 Earnings per Common Share - diluted: Numerator: Net income $ 34,246 $ 33,485 Net (income) attributable to noncontrolling interests in consolidated affiliates (286 ) (300 ) Dividends on Preferred Stock (623 ) (623 ) Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership $ 33,337 $ 32,562 Denominator: Denominator for basic earnings per Common Share – weighted average shares 103,324 101,738 Add: Stock options using the treasury method 26 85 Noncontrolling interests Common Units 2,815 2,838 Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions (1) 106,165 104,661 Net income available for common stockholders $ 0.31 $ 0.31 __________ (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 | The following table sets forth the computation of basic and diluted earnings per unit of the Operating Partnership: Three Months Ended 2018 2017 Earnings per Common Unit - basic: Numerator: Net income $ 34,246 $ 33,485 Net (income) attributable to noncontrolling interests in consolidated affiliates (286 ) (300 ) Distributions on Preferred Units (623 ) (623 ) Net income available for common unitholders $ 33,337 $ 32,562 Denominator: Denominator for basic earnings per Common Unit – weighted average units 105,730 104,167 Net income available for common unitholders $ 0.32 $ 0.31 Earnings per Common Unit - diluted: Numerator: Net income $ 34,246 $ 33,485 Net (income) attributable to noncontrolling interests in consolidated affiliates (286 ) (300 ) Distributions on Preferred Units (623 ) (623 ) Net income available for common unitholders $ 33,337 $ 32,562 Denominator: Denominator for basic earnings per Common Unit – weighted average units 105,730 104,167 Add: Stock options using the treasury method 26 85 Denominator for diluted earnings per Common Unit – adjusted weighted average units and assumed conversions (1) 105,756 104,252 Net income available for common unitholders $ 0.32 $ 0.31 __________ (1) Includes all unvested restricted stock where distributions on such restricted stock are non-forfeitable. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | 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 and which is defined as rental and other revenues less rental property and other expenses, for each of our reportable segments. Three Months Ended 2018 2017 Rental and Other Revenues: Office: Atlanta $ 35,483 $ 34,209 Greensboro 6,026 5,302 Memphis 10,208 11,795 Nashville 30,723 23,690 Orlando 13,300 12,438 Pittsburgh 15,282 14,849 Raleigh 29,804 29,546 Richmond 11,049 10,942 Tampa 25,425 23,256 Total Office Segment 177,300 166,027 Other 3,138 3,381 Total Rental and Other Revenues $ 180,438 $ 169,408 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Net Operating Income: Office: Atlanta $ 22,670 $ 22,006 Greensboro 4,011 3,358 Memphis 6,645 7,272 Nashville 21,983 16,624 Orlando 8,263 7,578 Pittsburgh 8,971 8,625 Raleigh 21,872 21,465 Richmond 7,581 7,621 Tampa 16,760 15,122 Total Office Segment 118,756 109,671 Other 2,250 2,341 Total Net Operating Income 121,006 112,012 Reconciliation to income before disposition of investment properties and activity in unconsolidated affiliates: Depreciation and amortization (57,568 ) (56,145 ) General and administrative expenses (11,778 ) (11,490 ) Interest expense (18,391 ) (17,863 ) Other income 455 684 Income before disposition of investment properties and activity in unconsolidated affiliates $ 33,724 $ 27,198 |
Description of Business and S31
Description of Business and Significant Accounting Policies (Details) ft² in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2018USD ($)aft²shares | Mar. 31, 2017USD ($) | |
Description of Business and Significant Accounting Policies [Line Items] | ||
Rentable square feet of commercial real estate properties (in sq feet) | ft² | 30.7 | |
Rentable square feet of commercial real estate properties under development (in sq feet) | ft² | 1.5 | |
Undeveloped land suitable for future development (in acres) | a | 400 | |
Self insurance liability | $ | $ 0.4 | |
Accounting Standards Update 2016-18 [Member] | ||
Description of Business and Significant Accounting Policies [Line Items] | ||
Net decrease in investing activities, effect of adoption, quantification | $ | $ 0.1 | |
Highwoods Properties, Inc. [Member] | ||
Description of Business and Significant Accounting Policies [Line Items] | ||
Common Units of partnership owned by the Company (in shares) | 103,000,000 | |
Percentage of ownership of Common Units (in hundredths) | 97.40% | |
Common Units redeemed for a like number of common shares of stock (in shares) | 19,196 | |
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) | 2,800,000 |
Real Estate Assets (Details)
Real Estate Assets (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($)aparcels | |
Acquisitions [Abstract] | |
Undeveloped land suitable for future development (in acres) | 400 |
Nashville TN Land Acquisition [Member] | |
Acquisitions [Abstract] | |
Number of development parcels acquired (in parcels) | parcels | 2 |
Undeveloped land suitable for future development (in acres) | 9 |
Purchase price of acquisition | $ | $ 50.6 |
Mortgages and Notes Receivable
Mortgages and Notes Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Mortgages and notes receivable [Abstract] | ||
Mortgages and notes receivable, net | $ 6,158 | $ 6,425 |
Intangible Assets and Below M34
Intangible Assets and Below Market Lease Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Assets: | |||
Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets) | $ 343,211 | $ 344,191 | |
Deferred leasing costs, accumulated amortization | (146,909) | (143,512) | |
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | 196,302 | 200,679 | |
Liabilities (in accounts payable, accrued expenses and other liabilities): | |||
Acquisition-related below market lease liabilities, gross | 59,646 | 59,947 | |
Acquisition-related below market lease liabilities, accumulated amortization | (29,436) | (28,214) | |
Acquisition-related below market lease liabilities, net | 30,210 | $ 31,733 | |
Deferred Leasing Costs and Acquisition-Related Intangible Assets (in Depreciation and Amortization) [Member] | |||
Assets: | |||
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | 178,871 | ||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||
Amortization of intangible assets | 9,495 | $ 10,619 | |
Lease Incentives (in Rental and Other Revenues) [Member] | |||
Assets: | |||
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | 9,997 | ||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||
Amortization of intangible assets | 429 | 397 | |
Acquisition-Related Intangible Assets (in Rental and Other Revenues) [Member] | |||
Assets: | |||
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | 5,947 | ||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||
Amortization of intangible assets | 448 | 1,036 | |
Acquisition-Related Intangible Assets (in Rental Property and Other Expenses) [Member] | |||
Assets: | |||
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | 1,487 | ||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||
Amortization of intangible assets | 137 | 137 | |
Acquisition-Related Below Market Lease Liabilities (in Rental and Other Revenues) [Member] | |||
Liabilities (in accounts payable, accrued expenses and other liabilities): | |||
Acquisition-related below market lease liabilities, net | 30,210 | ||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||
Amortization of acquisition-related below market lease liabilities | $ (1,523) | $ (1,580) |
Intangible Assets and Below M35
Intangible Assets and Below Market Lease Liabilities - Scheduled Future Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Scheduled future amortization of intangible assets [Abstract] | ||
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | $ 196,302 | $ 200,679 |
Scheduled future amortization of below market lease liabilities [Abstract] | ||
Total scheduled future amortization of acquisition-related below market lease liabilities | (30,210) | $ (31,733) |
Deferred Leasing Costs and Acquisition-Related Intangible Assets (in Depreciation and Amortization) [Member] | ||
Scheduled future amortization of intangible assets [Abstract] | ||
April 1 through December 31, 2018 | 27,309 | |
2,019 | 31,646 | |
2,020 | 27,150 | |
2,021 | 22,748 | |
2,022 | 18,565 | |
Thereafter | 51,453 | |
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | $ 178,871 | |
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 7 months 7 days | |
Lease Incentives (in Rental and Other Revenues) [Member] | ||
Scheduled future amortization of intangible assets [Abstract] | ||
April 1 through December 31, 2018 | $ 1,218 | |
2,019 | 1,503 | |
2,020 | 1,227 | |
2,021 | 1,002 | |
2,022 | 788 | |
Thereafter | 4,259 | |
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | $ 9,997 | |
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract] | ||
Finite-lived intangible assets, average useful life (in years) | 9 years 9 months 20 days | |
Acquisition-Related Intangible Assets (in Rental and Other Revenues) [Member] | ||
Scheduled future amortization of intangible assets [Abstract] | ||
April 1 through December 31, 2018 | $ 1,213 | |
2,019 | 1,273 | |
2,020 | 959 | |
2,021 | 632 | |
2,022 | 462 | |
Thereafter | 1,408 | |
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | $ 5,947 | |
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 6 months | |
Acquisition-Related Intangible Assets (in Rental Property and Other Expenses) [Member] | ||
Scheduled future amortization of intangible assets [Abstract] | ||
April 1 through December 31, 2018 | $ 416 | |
2,019 | 553 | |
2,020 | 518 | |
2,021 | 0 | |
2,022 | 0 | |
Thereafter | 0 | |
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | $ 1,487 | |
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract] | ||
Finite-lived intangible assets, average useful life (in years) | 2 years 8 months 15 days | |
Acquisition-Related Below Market Lease Liabilities (in Rental and Other Revenues) [Member] | ||
Scheduled future amortization of below market lease liabilities [Abstract] | ||
April 1 through December 31, 2018 | $ (4,414) | |
2,019 | (5,446) | |
2,020 | (5,186) | |
2,021 | (4,377) | |
2,022 | (3,264) | |
Thereafter | (7,523) | |
Total scheduled future amortization of acquisition-related below market lease liabilities | $ (30,210) | |
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) | 6 years 4 months 25 days |
Mortgages and Notes Payable (De
Mortgages and Notes Payable (Details) | 3 Months Ended | ||
Mar. 31, 2018USD ($)extensions | Apr. 17, 2018USD ($) | Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | |||
Mortgages and notes payable | $ 2,112,584,000 | $ 2,014,333,000 | |
Unamortized debt issuance costs | (10,638,000) | (8,161,000) | |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity on revolving credit facility | $ 600,000,000 | ||
Maturity date on revolving credit facility | Jan. 1, 2022 | ||
Additional borrowing capacity on revolving credit facility | $ 400,000,000 | ||
Number of additional extensions | extensions | 2 | ||
Term of optional extension | 6 months | ||
Annual facility fee (in hundredths) | 0.20% | ||
Amount outstanding on revolving credit facility | $ 0 | ||
Outstanding letters of credit on revolving credit facility | 500,000 | ||
Unused borrowing capacity on revolving credit facility | 599,500,000 | ||
4.125% (4.271% effective rate) Notes due 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Principal debt amount | $ 350,000,000 | ||
Interest rate (in hundredths) | 4.125% | ||
Scheduled maturity date | Mar. 15, 2028 | ||
Original issue discount | $ 4,100,000 | ||
Effective interest rate (in hundredths) | 4.271% | ||
Debt issuance costs incurred | $ 2,900,000 | ||
Secured indebtedness [Member] | |||
Debt Instrument [Line Items] | |||
Mortgages and notes payable | 98,537,000 | 98,981,000 | |
Aggregate undepreciated book value of secured real estate assets | 147,600,000 | ||
Unsecured indebtedness [Member] | |||
Debt Instrument [Line Items] | |||
Mortgages and notes payable | $ 2,024,685,000 | $ 1,923,513,000 | |
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Facility interest rate basis | LIBOR plus 100 basis points | ||
Interest rate, basis spread (in hundredths) | 1.00% | ||
Subsequent Event [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Amount outstanding on revolving credit facility | $ 172,000,000 | ||
Outstanding letters of credit on revolving credit facility | 500,000 | ||
Unused borrowing capacity on revolving credit facility | $ 427,500,000 |
Derivative Financial Instrume37
Derivative Financial Instruments (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Mar. 31, 2019 | |
Derivatives designated as cash flow hedges in prepaid expenses and other assets: | ||||
Interest rate swaps | $ 2,179,000 | $ 1,286,000 | ||
Amount of unrealized gains recognized in accumulated other comprehensive income on derivatives (effective portion): | ||||
Interest rate swaps | 7,877,000 | $ 452,000 | ||
Amount of (gains)/losses reclassified out of accumulated other comprehensive income into contractual interest expense (effective portion): | ||||
Interest rate swaps | (106,000) | $ 484,000 | ||
4.125% (4.271% effective rate) Notes due 2028 [Member] | ||||
Derivative [Line Items] | ||||
Principal debt amount | $ 350,000,000 | |||
Interest rate (in hundredths) | 4.125% | |||
Forward Starting Swaps [Member] | ||||
Derivative [Line Items] | ||||
Amount of borrowings, subject to swaps | $ 150,000,000 | |||
Underlying treasury rate term (in periods) | 10 years | |||
Underlying treasury rate locked by forward-starting swaps (in hundredths) | 2.44% | |||
Gain on forward-starting interest rate swaps | $ 7,000,000 | |||
Gain on hedge ineffectiveness in interest expense | $ 200,000 | |||
Scenario, Forecast [Member] | ||||
Derivative [Line Items] | ||||
Expected increase to interest expense | $ 2,400,000 |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Noncontrolling Interests in Consolidated Affiliates [Abstract] | ||
Consolidated joint venture, partner's interest (in hundredths) | 50.00% | |
Noncontrolling Interests in the Operating Partnership [Roll Forward] | ||
Beginning noncontrolling interests in the Operating Partnership | $ 144,009 | |
Adjustment of noncontrolling interests in the Operating Partnership to fair value | (19,582) | $ (4,972) |
Conversions of Common Units to Common Stock | (902) | (102) |
Net income attributable to noncontrolling interests in the Operating Partnership | 888 | 888 |
Distributions to noncontrolling interests in the Operating Partnership | (1,300) | (1,249) |
Total noncontrolling interests in the Operating Partnership | 123,113 | |
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership [Abstract] | ||
Net income available for common stockholders | 32,449 | 31,674 |
Highwoods Properties, Inc. [Member] | ||
Noncontrolling Interests in the Operating Partnership [Roll Forward] | ||
Beginning noncontrolling interests in the Operating Partnership | 144,009 | 144,802 |
Adjustment of noncontrolling interests in the Operating Partnership to fair value | (19,582) | (4,972) |
Conversions of Common Units to Common Stock | (902) | (102) |
Net income attributable to noncontrolling interests in the Operating Partnership | 888 | 888 |
Distributions to noncontrolling interests in the Operating Partnership | (1,300) | (1,249) |
Total noncontrolling interests in the Operating Partnership | 123,113 | 139,367 |
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership [Abstract] | ||
Net income available for common stockholders | 32,449 | 31,674 |
Increase in additional paid in capital from conversions of Common Units to Common Stock | 902 | 102 |
Change from net income available for common stockholders and transfers from noncontrolling interests | $ 33,351 | $ 31,776 |
Disclosure About Fair Value o39
Disclosure About Fair Value of Financial Instruments - Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Assets: | ||
Mortgages and notes receivable, at fair value | $ 6,158 | $ 6,425 |
Interest rate swaps (in prepaid expenses and other assets) | 2,179 | 1,286 |
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) | 2,376 | 2,388 |
Total Assets | 10,713 | 10,099 |
Liabilities: | ||
Mortgages and notes payable, net, at fair value | 2,090,232 | 2,015,689 |
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 2,376 | 2,388 |
Total Liabilities | 2,092,608 | 2,018,077 |
Level 1 [Member] | ||
Assets: | ||
Mortgages and notes receivable, at fair value | 0 | 0 |
Interest rate swaps (in prepaid expenses and other assets) | 0 | 0 |
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) | 2,376 | 2,388 |
Total Assets | 2,376 | 2,388 |
Liabilities: | ||
Mortgages and notes payable, net, at fair value | 0 | 0 |
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 2,376 | 2,388 |
Total Liabilities | 2,376 | 2,388 |
Level 2 [Member] | ||
Assets: | ||
Mortgages and notes receivable, at fair value | 6,158 | 6,425 |
Interest rate swaps (in prepaid expenses and other assets) | 2,179 | 1,286 |
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) | 0 | 0 |
Total Assets | 8,337 | 7,711 |
Liabilities: | ||
Mortgages and notes payable, net, at fair value | 2,090,232 | 2,015,689 |
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 0 | 0 |
Total Liabilities | 2,090,232 | 2,015,689 |
Highwoods Properties, Inc. [Member] | ||
Assets: | ||
Noncontrolling Interests in the Operating Partnership | 123,113 | 144,009 |
Highwoods Properties, Inc. [Member] | Level 1 [Member] | ||
Assets: | ||
Noncontrolling Interests in the Operating Partnership | 123,113 | 144,009 |
Highwoods Properties, Inc. [Member] | Level 2 [Member] | ||
Assets: | ||
Noncontrolling Interests in the Operating Partnership | $ 0 | $ 0 |
Share-Based Payments (Details)
Share-Based Payments (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 4,295 | $ 3,783 |
Total unrecognized stock-based compensation costs | $ 8,100 | |
Weighted average remaining contractual term for recognition of unrecognized stock-based compensation costs (in years) | 2 years 8 months 13 days | |
Highwoods Properties, Inc. [Member] | Time-Based Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock shares granted (in shares) | 94,984 | |
Weighted average grant date fair value of each restricted stock share granted (in dollars per share) | $ 43.01 | |
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 (in shares) | 77,456 | |
Weighted average grant date fair value of each restricted stock share granted (in dollars per share) | $ 40.81 |
Accumulated Other Comprehensi41
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) Calculation [Roll Forward] | ||
Beginning balance | $ 7,838 | $ 4,949 |
Unrealized gains on cash flow hedges | 7,877 | 452 |
Amortization of cash flow hedges | (106) | 484 |
Total accumulated other comprehensive income/(loss) | $ 15,609 | $ 5,885 |
Real Estate and Other Assets 42
Real Estate and Other Assets Held For Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Real Estate and Other Assets Held For Sale [Abstract] | ||
Land | $ 870 | $ 870 |
Buildings and tenant improvements | 21,318 | 21,318 |
Land held for development | 355 | 355 |
Less-accumulated depreciation | (9,304) | (9,304) |
Net real estate assets | 13,239 | 13,239 |
Accrued straight-line rents receivable | 475 | 591 |
Deferred leasing costs, net | 255 | 253 |
Prepaid expenses and other assets | 48 | 35 |
Real estate and other assets, net, held for sale | $ 14,017 | $ 14,118 |
Earnings Per Share and Per Un43
Earnings Per Share and Per Unit (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings per Common Share and Per Unit - basic: [Abstract] | ||
Net income | $ 34,246 | $ 33,485 |
Net (income) attributable to noncontrolling interests in the Operating Partnership from continuing operations | (888) | (888) |
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations | (286) | (300) |
Dividends on Preferred Stock | (623) | (623) |
Net income available for common stockholders | $ 32,449 | $ 31,674 |
Denominator: | ||
Denominator for basic earnings per Common Share - weighted average shares (in shares) | 103,324 | 101,738 |
Earnings per Common Share - basic: | ||
Net income available for common stockholders (in dollars per share) | $ 0.31 | $ 0.31 |
Earnings per Common Share and Per Unit - diluted: [Abstract] | ||
Net income | $ 34,246 | $ 33,485 |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (286) | (300) |
Dividends on Preferred Stock | (623) | (623) |
Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership | $ 33,337 | $ 32,562 |
Denominator: | ||
Denominator for basic earnings per Common Share - weighted average shares (in shares) | 103,324 | 101,738 |
Stock options using the treasury method (in shares) | 26 | 85 |
Noncontrolling interests Common Units (in shares) | 2,815 | 2,838 |
Denominator for diluted earnings per Common Share - adjusted weighted average shares and assumed conversions (in shares) | 106,165 | 104,661 |
Earnings per Common Share - diluted: | ||
Net income available for common stockholders (in dollars per share) | $ 0.31 | $ 0.31 |
Highwoods Realty Limited Partnership [Member] | ||
Earnings per Common Share and Per Unit - basic: [Abstract] | ||
Net income | $ 34,246 | $ 33,485 |
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations | (286) | (300) |
Distributions on Preferred Units | (623) | (623) |
Net income available for common unitholders | $ 33,337 | $ 32,562 |
Denominator: | ||
Denominator for basic earnings per Common Unit - weighted average units (in shares) | 105,730 | 104,167 |
Earnings per Common Unit - basic: | ||
Net income available for common unitholders (in dollars per share) | $ 0.32 | $ 0.31 |
Earnings per Common Share and Per Unit - diluted: [Abstract] | ||
Net income | $ 34,246 | $ 33,485 |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (286) | (300) |
Distributions on Preferred Units | (623) | (623) |
Net income available for common unitholders | $ 33,337 | $ 32,562 |
Denominator: | ||
Denominator for basic earnings per Common Unit - weighted average units (in shares) | 105,730 | 104,167 |
Stock options using the treasury method (in shares) | 26 | 85 |
Denominator for diluted earnings per Common Unit - adjusted weighted average units and assumed conversions (in shares) | 105,756 | 104,252 |
Earnings per Common Unit - diluted: | ||
Net income available for common unitholders (in dollars per share) | $ 0.32 | $ 0.31 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | $ 180,438 | $ 169,408 |
Total Net Operating Income | 121,006 | 112,012 |
Reconciliation to income before disposition of investment properties and activity in unconsolidated affiliates: | ||
Depreciation and amortization | (57,568) | (56,145) |
General and administrative expenses | (11,778) | (11,490) |
Interest expense | (18,391) | (17,863) |
Other income | 455 | 684 |
Income before disposition of investment properties and activity in unconsolidated affiliates | 33,724 | 27,198 |
Total Office Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 177,300 | 166,027 |
Total Net Operating Income | 118,756 | 109,671 |
Office Atlanta, GA [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 35,483 | 34,209 |
Total Net Operating Income | 22,670 | 22,006 |
Office Greensboro, NC [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 6,026 | 5,302 |
Total Net Operating Income | 4,011 | 3,358 |
Office Memphis, TN [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 10,208 | 11,795 |
Total Net Operating Income | 6,645 | 7,272 |
Office Nashville, TN [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 30,723 | 23,690 |
Total Net Operating Income | 21,983 | 16,624 |
Office Orlando, FL [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 13,300 | 12,438 |
Total Net Operating Income | 8,263 | 7,578 |
Office Pittsburgh, PA [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 15,282 | 14,849 |
Total Net Operating Income | 8,971 | 8,625 |
Office Raleigh, NC [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 29,804 | 29,546 |
Total Net Operating Income | 21,872 | 21,465 |
Office Richmond, VA [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 11,049 | 10,942 |
Total Net Operating Income | 7,581 | 7,621 |
Office Tampa, FL [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 25,425 | 23,256 |
Total Net Operating Income | 16,760 | 15,122 |
Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 3,138 | 3,381 |
Total Net Operating Income | $ 2,250 | $ 2,341 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | ||
Apr. 19, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Apr. 16, 2018 | |
Subsequent Event [Line Items] | ||||
Dividends declared per Common Share (in dollars per share) | $ 0.4625 | $ 0.440 | ||
7.5% Notes Due 2018 [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Principal debt amount | $ 200 | |||
Interest rate (in hundredths) | 7.50% | |||
Dividend Declared [Member] | Highwoods Properties, Inc. [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Dividends declared per Common Share (in dollars per share) | $ 0.4625 |