Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 16, 2024 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity Registrant Name | HIGHWOODS PROPERTIES, INC. | |
Entity Incorporation, State or Country Code | MD | |
Entity File Number | 001-13100 | |
Entity Tax Identification Number | 56-1871668 | |
Entity Address, Address Line One | 150 Fayetteville Street | |
Entity Address, Address Line Two | Suite 1400 | |
Entity Address, City or Town | Raleigh | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 27601 | |
City Area Code | 919 | |
Local Phone Number | 872-4924 | |
Title of 12(b) Security | Common Stock, $.01 par value, of Highwoods Properties, Inc. | |
Trading Symbol | HIW | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 105,995,812 | |
Entity Central Index Key | 0000921082 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Highwoods Realty Limited Partnership | ||
Entity Information [Line Items] | ||
Entity Registrant Name | HIGHWOODS REALTY LIMITED PARTNERSHIP | |
Entity Incorporation, State or Country Code | NC | |
Entity File Number | 000-21731 | |
Entity Tax Identification Number | 56-1869557 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000941713 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
HPI - Consolidated Balance Shee
HPI - Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Real estate assets, at cost: | ||
Land | $ 533,361 | $ 540,050 |
Buildings and tenant improvements | 5,927,772 | 5,960,895 |
Development in-process | 0 | 8,918 |
Land held for development | 226,575 | 227,058 |
Total real estate assets | 6,687,708 | 6,736,921 |
Less-accumulated depreciation | (1,754,503) | (1,743,390) |
Net real estate assets | 4,933,205 | 4,993,531 |
Real estate and other assets, net, held for sale | 26,078 | 0 |
Cash and cash equivalents | 16,422 | 25,123 |
Restricted cash | 10,865 | 6,446 |
Accounts receivable | 34,449 | 28,094 |
Mortgages and notes receivable | 11,008 | 4,795 |
Accrued straight-line rents receivable | 311,099 | 310,649 |
Investments in and advances to unconsolidated affiliates | 372,722 | 343,241 |
Deferred leasing costs, net of accumulated amortization of $180,904 and $175,697, respectively | 222,997 | 225,924 |
Prepaid expenses and other assets, net of accumulated depreciation of $17,424 and $22,142, respectively | 74,552 | 65,125 |
Total Assets | 6,013,397 | 6,002,928 |
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity: | ||
Mortgages and notes payable, net | 3,262,327 | 3,213,206 |
Accounts payable, accrued expenses and other liabilities | 287,176 | 302,180 |
Total Liabilities | 3,549,503 | 3,515,386 |
Commitments and contingencies | ||
Noncontrolling interests in the Operating Partnership | 56,324 | 49,520 |
Equity: | ||
Preferred Stock, $.01 par value, 50,000,000 authorized shares; 8.625% Series A Cumulative Redeemable Preferred Shares (liquidation preference $1,000 per share), 28,811 shares issued and outstanding | 28,811 | 28,811 |
Common Stock, $.01 par value, 200,000,000 authorized shares; 105,995,624 and 105,710,315 shares issued and outstanding, respectively | 1,060 | 1,057 |
Additional paid-in capital | 3,099,865 | 3,103,446 |
Distributions in excess of net income available for common stockholders | (724,827) | (698,020) |
Accumulated other comprehensive loss | (2,059) | (1,997) |
Total Stockholders’ Equity | 2,402,850 | 2,433,297 |
Noncontrolling interests in consolidated affiliates | 4,720 | 4,725 |
Total Equity/Capital | 2,407,570 | 2,438,022 |
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Capital | $ 6,013,397 | $ 6,002,928 |
HPI - Consolidated Balance Sh_2
HPI - Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Assets: | ||
Deferred leasing costs, accumulated amortization | $ 180,904 | $ 175,697 |
Prepaid expenses and other assets, accumulated depreciation | $ 17,424 | $ 22,142 |
Equity: | ||
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, dividend rate percentage (in hundredths) | 8.625% | 8.625% |
Series A Preferred Stock, liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 |
Series A Preferred Stock, shares issued (in shares) | 28,811 | 28,811 |
Series A Preferred Stock, shares outstanding (in shares) | 28,811 | 28,811 |
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) | 105,995,624 | 105,710,315 |
Common Stock, shares outstanding (in shares) | 105,995,624 | 105,710,315 |
HRLP - Consolidated Balance She
HRLP - Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Real estate assets, at cost: | ||
Land | $ 533,361 | $ 540,050 |
Buildings and tenant improvements | 5,927,772 | 5,960,895 |
Development in-process | 0 | 8,918 |
Land held for development | 226,575 | 227,058 |
Total real estate assets | 6,687,708 | 6,736,921 |
Less-accumulated depreciation | (1,754,503) | (1,743,390) |
Net real estate assets | 4,933,205 | 4,993,531 |
Real estate and other assets, net, held for sale | 26,078 | 0 |
Cash and cash equivalents | 16,422 | 25,123 |
Restricted cash | 10,865 | 6,446 |
Accounts receivable | 34,449 | 28,094 |
Mortgages and notes receivable | 11,008 | 4,795 |
Accrued straight-line rents receivable | 311,099 | 310,649 |
Investments in and advances to unconsolidated affiliates | 372,722 | 343,241 |
Deferred leasing costs, net of accumulated amortization of $180,904 and $175,697, respectively | 222,997 | 225,924 |
Prepaid expenses and other assets, net of accumulated depreciation of $17,424 and $22,142, respectively | 74,552 | 65,125 |
Total Assets | 6,013,397 | 6,002,928 |
Liabilities, Redeemable Operating Partnership Units and Capital: | ||
Mortgages and notes payable, net | 3,262,327 | 3,213,206 |
Accounts payable, accrued expenses and other liabilities | 287,176 | 302,180 |
Total Liabilities | 3,549,503 | 3,515,386 |
Commitments and contingencies | ||
Capital: | ||
Accumulated other comprehensive loss | (2,059) | (1,997) |
Noncontrolling interests in consolidated affiliates | 4,720 | 4,725 |
Total Equity/Capital | 2,407,570 | 2,438,022 |
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Capital | 6,013,397 | 6,002,928 |
Highwoods Realty Limited Partnership | ||
Real estate assets, at cost: | ||
Land | 533,361 | 540,050 |
Buildings and tenant improvements | 5,927,772 | 5,960,895 |
Development in-process | 0 | 8,918 |
Land held for development | 226,575 | 227,058 |
Total real estate assets | 6,687,708 | 6,736,921 |
Less-accumulated depreciation | (1,754,503) | (1,743,390) |
Net real estate assets | 4,933,205 | 4,993,531 |
Real estate and other assets, net, held for sale | 26,078 | 0 |
Cash and cash equivalents | 16,422 | 25,123 |
Restricted cash | 10,865 | 6,446 |
Accounts receivable | 34,449 | 28,094 |
Mortgages and notes receivable | 11,008 | 4,795 |
Accrued straight-line rents receivable | 311,099 | 310,649 |
Investments in and advances to unconsolidated affiliates | 372,722 | 343,241 |
Deferred leasing costs, net of accumulated amortization of $180,904 and $175,697, respectively | 222,997 | 225,924 |
Prepaid expenses and other assets, net of accumulated depreciation of $17,424 and $22,142, respectively | 74,552 | 65,125 |
Total Assets | 6,013,397 | 6,002,928 |
Liabilities, Redeemable Operating Partnership Units and Capital: | ||
Mortgages and notes payable, net | 3,262,327 | 3,213,206 |
Accounts payable, accrued expenses and other liabilities | 287,176 | 302,180 |
Total Liabilities | 3,549,503 | 3,515,386 |
Commitments and contingencies | ||
Redeemable Operating Partnership Units: | ||
Common Units, 2,151,423 and 2,156,808 outstanding, respectively | 56,324 | 49,520 |
Series A Preferred Units (liquidation preference $1,000 per unit), 28,811 units issued and outstanding | 28,811 | 28,811 |
Total Redeemable Operating Partnership Units | 85,135 | 78,331 |
Capital: | ||
General partner Common Units, 1,077,382 and 1,074,583 outstanding, respectively | 23,760 | 24,064 |
Limited partner Common Units, 104,509,433 and 104,226,923 outstanding, respectively | 2,352,338 | 2,382,419 |
Accumulated other comprehensive loss | (2,059) | (1,997) |
Noncontrolling interests in consolidated affiliates | 4,720 | 4,725 |
Total Equity/Capital | 2,378,759 | 2,409,211 |
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Capital | $ 6,013,397 | $ 6,002,928 |
HRLP - Consolidated Balance S_2
HRLP - Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets: | ||
Deferred leasing costs, accumulated amortization | $ 180,904 | $ 175,697 |
Prepaid expenses and other assets, accumulated depreciation | 17,424 | 22,142 |
Highwoods Realty Limited Partnership | ||
Assets: | ||
Deferred leasing costs, accumulated amortization | 180,904 | 175,697 |
Prepaid expenses and other assets, accumulated depreciation | $ 17,424 | $ 22,142 |
Redeemable Operating Partnership Units: [Abstract] | ||
Redeemable Common Units outstanding (in shares) | 2,151,423 | 2,156,808 |
Series A Preferred Units, liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 |
Series A Preferred Units, issued (in shares) | 28,811 | 28,811 |
Series A Preferred Units, outstanding (in shares) | 28,811 | 28,811 |
Common Units: [Abstract] | ||
General partners' capital account, units outstanding (in shares) | 1,077,382 | 1,074,583 |
Limited partners' capital account, units outstanding (in shares) | 104,509,433 | 104,226,923 |
HPI - Consolidated Statements o
HPI - Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Rental and other revenues | $ 211,275 | $ 212,752 |
Operating expenses: | ||
Rental property and other expenses | 70,435 | 65,731 |
Depreciation and amortization | 73,671 | 70,633 |
General and administrative | 12,499 | 12,415 |
Total operating expenses | 156,605 | 148,779 |
Interest expense | 36,552 | 33,098 |
Other income | 1,232 | 1,147 |
Gains on disposition of property | 7,209 | 450 |
Gain on deconsolidation of affiliate | 0 | 11,778 |
Equity in earnings of unconsolidated affiliates | 654 | 704 |
Net income | 27,213 | 44,954 |
Net (income) attributable to noncontrolling interests in the Operating Partnership | (533) | (986) |
Net loss attributable to noncontrolling interests in consolidated affiliates | 5 | 487 |
Dividends on Preferred Stock | (621) | (621) |
Net income available for common stockholders | $ 26,064 | $ 43,834 |
Earnings per Common Share – basic: | ||
Net income available for common stockholders (in dollars per share) | $ 0.25 | $ 0.42 |
Weighted average Common Shares outstanding - basic (in shares) | 105,804 | 105,288 |
Earnings per Common Share - diluted: | ||
Net income available for common stockholders (in dollars per share) | $ 0.25 | $ 0.42 |
Weighted average Common Shares outstanding - diluted (in shares) | 107,958 | 107,646 |
HRLP - Consolidated Statements
HRLP - Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Rental and other revenues | $ 211,275 | $ 212,752 |
Operating expenses: | ||
Rental property and other expenses | 70,435 | 65,731 |
Depreciation and amortization | 73,671 | 70,633 |
General and administrative | 12,499 | 12,415 |
Total operating expenses | 156,605 | 148,779 |
Interest expense | 36,552 | 33,098 |
Other income | 1,232 | 1,147 |
Gains on disposition of property | 7,209 | 450 |
Gain on deconsolidation of affiliate | 0 | 11,778 |
Equity in earnings of unconsolidated affiliates | 654 | 704 |
Net income | 27,213 | 44,954 |
Net loss attributable to noncontrolling interests in consolidated affiliates | 5 | 487 |
Highwoods Realty Limited Partnership | ||
Rental and other revenues | 211,275 | 212,752 |
Operating expenses: | ||
Rental property and other expenses | 70,435 | 65,731 |
Depreciation and amortization | 73,671 | 70,633 |
General and administrative | 12,499 | 12,415 |
Total operating expenses | 156,605 | 148,779 |
Interest expense | 36,552 | 33,098 |
Other income | 1,232 | 1,147 |
Gains on disposition of property | 7,209 | 450 |
Gain on deconsolidation of affiliate | 0 | 11,778 |
Equity in earnings of unconsolidated affiliates | 654 | 704 |
Net income | 27,213 | 44,954 |
Net loss attributable to noncontrolling interests in consolidated affiliates | 5 | 487 |
Distributions on Preferred Units | (621) | (621) |
Net income available for common unitholders | $ 26,597 | $ 44,820 |
Earnings per Common Unit - basic: | ||
Net income available for common unitholders (in dollars per share) | $ 0.25 | $ 0.42 |
Weighted average Common Units outstanding - basic (in shares) | 107,549 | 107,237 |
Earnings per Common Unit - diluted: | ||
Net income available for common unitholders (in dollars per share) | $ 0.25 | $ 0.42 |
Weighted average Common Units outstanding - diluted (in shares) | 107,549 | 107,237 |
HPI - Consolidated Statements_2
HPI - Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Comprehensive income: | ||
Net income | $ 27,213 | $ 44,954 |
Other comprehensive loss: | ||
Amortization of cash flow hedges | (62) | (75) |
Total other comprehensive loss | (62) | (75) |
Total comprehensive income | 27,151 | 44,879 |
Less-comprehensive (income) attributable to noncontrolling interests | (528) | (499) |
Comprehensive income attributable to common stockholders/Comprehensive income attributable to common unitholders | $ 26,623 | $ 44,380 |
HRLP - Consolidated Statement_2
HRLP - Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Comprehensive income: | ||
Net income | $ 27,213 | $ 44,954 |
Other comprehensive loss: | ||
Amortization of cash flow hedges | (62) | (75) |
Other comprehensive loss | (62) | (75) |
Total comprehensive income | 27,151 | 44,879 |
Net loss attributable to noncontrolling interests in consolidated affiliates | (528) | (499) |
Comprehensive income attributable to common stockholders/Comprehensive income attributable to common unitholders | 26,623 | 44,380 |
Highwoods Realty Limited Partnership | ||
Comprehensive income: | ||
Net income | 27,213 | 44,954 |
Other comprehensive loss: | ||
Amortization of cash flow hedges | (62) | (75) |
Other comprehensive loss | (62) | (75) |
Total comprehensive income | 27,151 | 44,879 |
Net loss attributable to noncontrolling interests in consolidated affiliates | 5 | 487 |
Comprehensive income attributable to common stockholders/Comprehensive income attributable to common unitholders | $ 27,156 | $ 45,366 |
HPI - Consolidated Statements_3
HPI - Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Series A Cumulative Redeemable Preferred Shares [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interests in Consolidated Affiliates [Member] | Distributions in Excess of Net Income Available for Common Stockholders [Member] |
Balance (in shares) at Dec. 31, 2022 | 105,210,858 | ||||||
Balance at Dec. 31, 2022 | $ 2,499,000 | $ 1,052 | $ 28,821 | $ 3,081,330 | $ (1,211) | $ 22,235 | $ (633,227) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuances of Common Stock, net of issuance costs and tax withholdings - shares | (26,083) | ||||||
Issuances of Common Stock, net of issuance costs and tax withholdings | (828) | $ 0 | (828) | ||||
Conversions of Common Units to Common Stock | 0 | ||||||
Dividends on Common Stock | (52,621) | (52,621) | |||||
Dividends on Preferred Stock | (621) | (621) | |||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | 11,102 | 11,102 | |||||
Issuances of restricted stock - shares | 272,733 | ||||||
Issuances of restricted stock | 0 | ||||||
Redemptions/repurchases of Preferred Stock | (10) | (10) | |||||
Share-based compensation expense, net of forfeitures - shares | 0 | ||||||
Share-based compensation expense, net of forfeitures | 4,525 | $ 3 | 4,522 | ||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | (986) | (986) | |||||
Net loss attributable to noncontrolling interests in consolidated affiliates | 0 | (487) | 487 | ||||
Deconsolidation of affiliate | (17,281) | (17,281) | |||||
Comprehensive income: | |||||||
Net income | 44,954 | 44,954 | |||||
Other comprehensive loss | (75) | (75) | |||||
Total comprehensive income | 44,879 | ||||||
Balance (in shares) at Mar. 31, 2023 | 105,457,508 | ||||||
Balance at Mar. 31, 2023 | 2,487,159 | $ 1,055 | 28,811 | 3,096,126 | (1,286) | 4,467 | (642,014) |
Balance (in shares) at Dec. 31, 2022 | 105,210,858 | ||||||
Balance at Dec. 31, 2022 | $ 2,499,000 | $ 1,052 | 28,821 | 3,081,330 | (1,211) | 22,235 | (633,227) |
Balance (in shares) at Dec. 31, 2023 | 105,710,315 | 105,710,315 | |||||
Balance at Dec. 31, 2023 | $ 2,438,022 | $ 1,057 | 28,811 | 3,103,446 | (1,997) | 4,725 | (698,020) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuances of Common Stock, net of issuance costs and tax withholdings - shares | (44,396) | ||||||
Issuances of Common Stock, net of issuance costs and tax withholdings | (1,064) | $ 0 | (1,064) | ||||
Conversions of Common Units to Common Stock - Shares | 5,385 | ||||||
Conversions of Common Units to Common Stock | 132 | 132 | |||||
Dividends on Common Stock | (52,871) | (52,871) | |||||
Dividends on Preferred Stock | (621) | (621) | |||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | (7,479) | (7,479) | |||||
Issuances of restricted stock - shares | 324,320 | ||||||
Issuances of restricted stock | 0 | ||||||
Share-based compensation expense, net of forfeitures - shares | |||||||
Share-based compensation expense, net of forfeitures | 4,833 | $ 3 | 4,830 | ||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | (533) | (533) | |||||
Net loss attributable to noncontrolling interests in consolidated affiliates | 0 | (5) | 5 | ||||
Comprehensive income: | |||||||
Net income | 27,213 | 27,213 | |||||
Other comprehensive loss | (62) | (62) | |||||
Total comprehensive income | $ 27,151 | ||||||
Balance (in shares) at Mar. 31, 2024 | 105,995,624 | 105,995,624 | |||||
Balance at Mar. 31, 2024 | $ 2,407,570 | $ 1,060 | $ 28,811 | $ 3,099,865 | $ (2,059) | $ 4,720 | $ (724,827) |
HPI - Consolidated Statements_4
HPI - Consolidated Statements of Equity (Parentheticals) - Highwoods Properties, Inc. [Member] - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Dividends on Common Stock (per share) | $ 0.50 | $ 0.50 |
Series A Cumulative Redeemable Preferred Shares [Member] | ||
Dividends on Preferred Stock (per share) | $ 21.5625 | $ 21.5625 |
HRLP - Consolidated Statement_3
HRLP - Consolidated Statements of Capital - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||
Balance | $ 2,438,022 | $ 2,499,000 |
Share-based compensation expense, net of forfeitures | 4,833 | 4,525 |
Net loss attributable to noncontrolling interests in consolidated affiliates | 0 | 0 |
Deconsolidation of affiliate | (17,281) | |
Comprehensive income: | ||
Net income | 27,213 | 44,954 |
Other comprehensive loss | (62) | (75) |
Total comprehensive income | 27,151 | 44,879 |
Balance | 2,407,570 | 2,487,159 |
Highwoods Realty Limited Partnership | ||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||
Balance | 2,409,211 | 2,470,179 |
Issuances of Common Units, net of issuance costs and tax withholdings | (1,064) | (828) |
Distributions on Common Units | (53,742) | (53,595) |
Distributions on Preferred Units | (621) | (621) |
Share-based compensation expense, net of forfeitures | 4,833 | 4,525 |
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner | (7,009) | 11,090 |
Net loss attributable to noncontrolling interests in consolidated affiliates | 0 | 0 |
Deconsolidation of affiliate | (17,281) | |
Comprehensive income: | ||
Net income | 27,213 | 44,954 |
Other comprehensive loss | (62) | (75) |
Total comprehensive income | 27,151 | 44,879 |
Balance | 2,378,759 | 2,458,348 |
General Partners' Common Units [Member] | Highwoods Realty Limited Partnership | ||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||
Balance | 24,064 | 24,492 |
Issuances of Common Units, net of issuance costs and tax withholdings | (11) | (8) |
Distributions on Common Units | (537) | (536) |
Distributions on Preferred Units | (6) | (6) |
Share-based compensation expense, net of forfeitures | 48 | 45 |
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner | (70) | 111 |
Net loss attributable to noncontrolling interests in consolidated affiliates | 0 | 5 |
Comprehensive income: | ||
Net income | 272 | 450 |
Balance | 23,760 | 24,553 |
Limited Partners' Common Units [Member] | Highwoods Realty Limited Partnership | ||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||
Balance | 2,382,419 | 2,424,663 |
Issuances of Common Units, net of issuance costs and tax withholdings | (1,053) | (820) |
Distributions on Common Units | (53,205) | (53,059) |
Distributions on Preferred Units | (615) | (615) |
Share-based compensation expense, net of forfeitures | 4,785 | 4,480 |
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner | (6,939) | 10,979 |
Net loss attributable to noncontrolling interests in consolidated affiliates | 5 | 482 |
Comprehensive income: | ||
Net income | 26,941 | 44,504 |
Balance | 2,352,338 | 2,430,614 |
Accumulated Other Comprehensive Income (Loss) [Member] | Highwoods Realty Limited Partnership | ||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||
Balance | (1,997) | (1,211) |
Comprehensive income: | ||
Other comprehensive loss | (62) | (75) |
Balance | (2,059) | (1,286) |
Noncontrolling Interests in Consolidated Affiliates [Member] | Highwoods Realty Limited Partnership | ||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||
Balance | 4,725 | 22,235 |
Net loss attributable to noncontrolling interests in consolidated affiliates | (5) | (487) |
Deconsolidation of affiliate | (17,281) | |
Comprehensive income: | ||
Balance | $ 4,720 | $ 4,467 |
HRLP - Consolidated Statement_4
HRLP - Consolidated Statements of Capital (Parentheticals) - Highwoods Realty Limited Partnership - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Distributions on Common Units (per unit) | $ 0.50 | $ 0.50 |
Series A Cumulative Redeemable Preferred Shares [Member] | ||
Distributions on Preferred Units (per unit) | $ 21.5625 | $ 21.5625 |
HPI - Consolidated Statements_5
HPI - Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Operating activities: | |||
Net income | $ 27,213 | $ 44,954 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 73,671 | 70,633 | |
Amortization of lease incentives and acquisition-related intangible assets and liabilities | 351 | 291 | |
Share-based compensation expense | 4,833 | 4,525 | |
Net credit reversals on operating lease receivables | (140) | (122) | |
Accrued interest on mortgages and notes receivable | (125) | (19) | |
Amortization of debt issuance costs | 1,381 | 1,161 | |
Amortization of cash flow hedges | (62) | (75) | |
Amortization of mortgages and notes payable fair value adjustments | 28 | (86) | |
Losses on debt extinguishment | 173 | 0 | |
Net gains on disposition of property | (7,209) | (450) | |
Gain on deconsolidation of affiliate | 0 | (11,778) | |
Equity in earnings of unconsolidated affiliates | (654) | (704) | |
Distributions of earnings from unconsolidated affiliates | 977 | 613 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (3,651) | 1,598 | |
Prepaid expenses and other assets | (2,116) | (2,840) | |
Accrued straight-line rents receivable | (3,218) | (8,678) | |
Accounts payable, accrued expenses and other liabilities | (19,042) | (33,354) | |
Net cash provided by operating activities | 72,410 | 65,669 | |
Investing activities: | |||
Investments in development in-process | (2,558) | (9,934) | |
Investments in tenant improvements and deferred leasing costs | (29,088) | (21,296) | |
Investments in building improvements | (8,989) | (25,815) | |
Net proceeds from disposition of real estate assets | 16,249 | 1,862 | |
Distributions of capital from unconsolidated affiliates | 963 | 0 | |
Investments in mortgages and notes receivable | (6,229) | 0 | |
Repayments of mortgages and notes receivable | 16 | 72 | |
Investments in and advances to unconsolidated affiliates | (30,869) | (16,762) | |
Changes in earnest money deposits | 0 | (500) | |
Changes in other investing activities | (1,180) | (2,163) | |
Net cash used in investing activities | (61,685) | (74,536) | |
Financing activities: | |||
Dividends on Common Stock | (52,871) | (52,621) | |
Redemptions/repurchases of Preferred Stock | 0 | (10) | |
Dividends on Preferred Stock | (621) | (621) | |
Distributions to noncontrolling interests in the Operating Partnership | (1,076) | (1,179) | |
Proceeds from the issuance of Common Stock | 363 | 553 | |
Costs paid for the issuance of Common Stock | 0 | (56) | |
Repurchase of shares related to tax withholdings | (1,427) | (1,325) | |
Borrowings on revolving credit facility | 75,000 | 92,000 | |
Repayments of revolving credit facility | (25,000) | (223,000) | |
Borrowings on mortgages and notes payable | 0 | 200,000 | |
Repayments of mortgages and notes payable | (1,727) | (1,654) | |
Payments for debt issuance costs and other financing activities | (7,648) | (1,305) | |
Net cash provided by/(used in) financing activities | (15,007) | 10,782 | |
Net increase/(decrease) in cash and cash equivalents and restricted cash | (4,282) | 1,915 | |
Cash from deconsolidation of controlling interest in affiliate | 0 | (6,386) | |
Cash and cash equivalents and restricted cash at beginning of the period | 31,569 | 26,105 | |
Cash and cash equivalents and restricted cash at end of the period | 27,287 | 21,634 | |
Reconciliation of cash and cash equivalents and restricted cash: | |||
Cash and cash equivalents at end of the period | 16,422 | 15,733 | |
Restricted cash at end of the period | 10,865 | 5,901 | |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest, net of amounts capitalized | 36,772 | 39,633 | |
Supplemental disclosure of non-cash investing and financing activities: | |||
Conversions of Common Units to Common Stock | 132 | 0 | |
Changes in accrued capital expenditures | [1] | 5,734 | (4,153) |
Write-off of fully depreciated real estate assets | 19,549 | 24,625 | |
Write-off of fully amortized leasing costs | 4,691 | 11,247 | |
Write-off of fully amortized debt issuance costs | 4,083 | 0 | |
Adjustment of noncontrolling interests in the Operating Partnership to fair value | 7,479 | (11,102) | |
Accrued capital expenditures included in accounts payable, accrued expenses and other liabilities | $ 61,300 | $ 49,200 | |
[1] Accrued capital expenditures included in accounts payable, accrued expenses and other liabilities as of March 31, 2024 and 2023 were $61.3 million and $49.2 million, respectively. |
HRLP - Consolidated Statement_5
HRLP - Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Operating activities: | |||
Net income | $ 27,213 | $ 44,954 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 73,671 | 70,633 | |
Amortization of lease incentives and acquisition-related intangible assets and liabilities | 351 | 291 | |
Share-based compensation expense | 4,833 | 4,525 | |
Net credit reversals on operating lease receivables | (140) | (122) | |
Accrued interest on mortgages and notes receivable | (125) | (19) | |
Amortization of debt issuance costs | 1,381 | 1,161 | |
Amortization of cash flow hedges | (62) | (75) | |
Amortization of mortgages and notes payable fair value adjustments | 28 | (86) | |
Losses on debt extinguishment | 173 | 0 | |
Net gains on disposition of property | (7,209) | (450) | |
Gain on deconsolidation of affiliate | 0 | (11,778) | |
Equity in earnings of unconsolidated affiliates | (654) | (704) | |
Distributions of earnings from unconsolidated affiliates | 977 | 613 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (3,651) | 1,598 | |
Prepaid expenses and other assets | (2,116) | (2,840) | |
Accrued straight-line rents receivable | (3,218) | (8,678) | |
Accounts payable, accrued expenses and other liabilities | (19,042) | (33,354) | |
Net cash provided by operating activities | 72,410 | 65,669 | |
Investing activities: | |||
Investments in development in-process | (2,558) | (9,934) | |
Investments in tenant improvements and deferred leasing costs | (29,088) | (21,296) | |
Investments in building improvements | (8,989) | (25,815) | |
Net proceeds from disposition of real estate assets | 16,249 | 1,862 | |
Distributions of capital from unconsolidated affiliates | 963 | 0 | |
Investments in mortgages and notes receivable | (6,229) | 0 | |
Repayments of mortgages and notes receivable | 16 | 72 | |
Investments in and advances to unconsolidated affiliates | (30,869) | (16,762) | |
Changes in earnest money deposits | 0 | (500) | |
Changes in other investing activities | (1,180) | (2,163) | |
Net cash used in investing activities | (61,685) | (74,536) | |
Financing activities: | |||
Borrowings on revolving credit facility | 75,000 | 92,000 | |
Repayments of revolving credit facility | (25,000) | (223,000) | |
Borrowings on mortgages and notes payable | 0 | 200,000 | |
Repayments of mortgages and notes payable | (1,727) | (1,654) | |
Payments for debt issuance costs and other financing activities | (7,648) | (1,305) | |
Net cash provided by/(used in) financing activities | (15,007) | 10,782 | |
Net increase/(decrease) in cash and cash equivalents and restricted cash | (4,282) | 1,915 | |
Cash from deconsolidation of controlling interest in affiliate | 0 | (6,386) | |
Cash and cash equivalents and restricted cash at beginning of the period | 31,569 | 26,105 | |
Cash and cash equivalents and restricted cash at end of the period | 27,287 | 21,634 | |
Reconciliation of cash and cash equivalents and restricted cash: | |||
Cash and cash equivalents at end of the period | 16,422 | 15,733 | |
Restricted cash at end of the period | 10,865 | 5,901 | |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest, net of amounts capitalized | 36,772 | 39,633 | |
Supplemental disclosure of non-cash investing and financing activities: | |||
Changes in accrued capital expenditures | [1] | 5,734 | (4,153) |
Write-off of fully depreciated real estate assets | 19,549 | 24,625 | |
Write-off of fully amortized leasing costs | 4,691 | 11,247 | |
Write-off of fully amortized debt issuance costs | 4,083 | 0 | |
Accrued capital expenditures included in accounts payable, accrued expenses and other liabilities | 61,300 | 49,200 | |
Highwoods Realty Limited Partnership | |||
Operating activities: | |||
Net income | 27,213 | 44,954 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 73,671 | 70,633 | |
Amortization of lease incentives and acquisition-related intangible assets and liabilities | 351 | 291 | |
Share-based compensation expense | 4,833 | 4,525 | |
Net credit reversals on operating lease receivables | (140) | (122) | |
Accrued interest on mortgages and notes receivable | (125) | (19) | |
Amortization of debt issuance costs | 1,381 | 1,161 | |
Amortization of cash flow hedges | (62) | (75) | |
Amortization of mortgages and notes payable fair value adjustments | 28 | (86) | |
Losses on debt extinguishment | 173 | 0 | |
Net gains on disposition of property | (7,209) | (450) | |
Gain on deconsolidation of affiliate | 0 | (11,778) | |
Equity in earnings of unconsolidated affiliates | (654) | (704) | |
Distributions of earnings from unconsolidated affiliates | 977 | 613 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (3,651) | 1,598 | |
Prepaid expenses and other assets | (2,116) | (2,840) | |
Accrued straight-line rents receivable | (3,218) | (8,678) | |
Accounts payable, accrued expenses and other liabilities | (19,042) | (33,354) | |
Net cash provided by operating activities | 72,410 | 65,669 | |
Investing activities: | |||
Investments in development in-process | (2,558) | (9,934) | |
Investments in tenant improvements and deferred leasing costs | (29,088) | (21,296) | |
Investments in building improvements | (8,989) | (25,815) | |
Net proceeds from disposition of real estate assets | 16,249 | 1,862 | |
Distributions of capital from unconsolidated affiliates | 963 | 0 | |
Investments in mortgages and notes receivable | (6,229) | 0 | |
Repayments of mortgages and notes receivable | 16 | 72 | |
Investments in and advances to unconsolidated affiliates | (30,869) | (16,762) | |
Changes in earnest money deposits | 0 | (500) | |
Changes in other investing activities | (1,180) | (2,163) | |
Net cash used in investing activities | (61,685) | (74,536) | |
Financing activities: | |||
Distributions on Common Units | (53,742) | (53,595) | |
Redemptions/repurchases of Preferred Units | 0 | (10) | |
Dividends on Preferred Units | (621) | (621) | |
Proceeds from the issuance of Common Units | 363 | 553 | |
Costs paid for the issuance of Common Units | 0 | (56) | |
Repurchase of units related to tax withholdings | (1,427) | (1,325) | |
Borrowings on revolving credit facility | 75,000 | 92,000 | |
Repayments of revolving credit facility | (25,000) | (223,000) | |
Borrowings on mortgages and notes payable | 0 | 200,000 | |
Repayments of mortgages and notes payable | (1,727) | (1,654) | |
Payments for debt issuance costs and other financing activities | (7,853) | (1,510) | |
Net cash provided by/(used in) financing activities | (15,007) | 10,782 | |
Net increase/(decrease) in cash and cash equivalents and restricted cash | (4,282) | 1,915 | |
Cash from deconsolidation of controlling interest in affiliate | 0 | (6,386) | |
Cash and cash equivalents and restricted cash at beginning of the period | 31,569 | 26,105 | |
Cash and cash equivalents and restricted cash at end of the period | 27,287 | 21,634 | |
Reconciliation of cash and cash equivalents and restricted cash: | |||
Cash and cash equivalents at end of the period | 16,422 | 15,733 | |
Restricted cash at end of the period | 10,865 | 5,901 | |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest, net of amounts capitalized | 36,772 | 39,633 | |
Supplemental disclosure of non-cash investing and financing activities: | |||
Changes in accrued capital expenditures | [1] | 5,734 | (4,153) |
Write-off of fully depreciated real estate assets | 19,549 | 24,625 | |
Write-off of fully amortized leasing costs | 4,691 | 11,247 | |
Write-off of fully amortized debt issuance costs | 4,083 | 0 | |
Adjustment of Redeemable Common Units to fair value | 6,804 | (11,295) | |
Accrued capital expenditures included in accounts payable, accrued expenses and other liabilities | $ 61,300 | $ 49,200 | |
[1] Accrued capital expenditures included in accounts payable, accrued expenses and other liabilities as of March 31, 2024 and 2023 were $61.3 million and $49.2 million, respectively. |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
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 office real estate investment trust (“REIT”) that owns, develops, acquires, leases and manages properties primarily in the best business districts of Atlanta, Charlotte, Dallas, Nashville, Orlando, Raleigh, Richmond and Tampa. The Company conducts its activities through Highwoods Realty Limited Partnership (the “Operating Partnership”). As of March 31, 2024, we owned or had an interest in 28.3 million rentable square feet of in-service properties, 1.6 million rentable square feet of office properties under development and development land with approximately 5.2 million rentable square feet of potential office build out. Capital Structure The Company is the sole general partner of the Operating Partnership. As of March 31, 2024, the Company owned all of the Preferred Units and 105.6 million, or 98.0%, of the Common Units in the Operating Partnership. Limited partners owned the remaining 2.2 million Common Units. During the three months ended March 31, 2024, the Company redeemed 5,385 Common Units for a like number of shares of Common Stock. During 2023, we entered into separate equity distribution agreements in which the Company may offer and sell up to $300.0 million in aggregate gross sales price of shares of Common Stock. During the three months ended March 31, 2024, the Company issued no shares of Common Stock under its equity distribution agreements. 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. We consolidate joint venture investments, such as interests in partnerships and limited liability companies, when we control the major operating and financial policies of the investment through majority ownership, in our capacity as a general partner or managing member or through some other contractual right. In addition, we consolidate those entities deemed to be variable interest entities in which we are determined to be the primary beneficiary. As of March 31, 2024, we are involved with six entities we determined to be variable interest entities, one of which we are the primary beneficiary and is consolidated and five of which we are not the primary beneficiary and are not consolidated. All intercompany transactions and accounts have been eliminated. In the opinion of management, the unaudited interim Consolidated Financial Statements and accompanying unaudited consolidated financial information 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 2023 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 We are primarily self-insured for health care claims for participating employees. To limit our exposure to significant claims, we have stop-loss coverage on a per claim and annual aggregate basis. We use all relevant information to determine our liabilities for claims, including actuarial estimates of claim liabilities. When determining our liabilities, we include claims for incurred losses, even if they are unreported. As of March 31, 2024, a reserve of $0.5 million was recorded to cover estimated reported and unreported claims. Recently Issued Accounting Standards The Financial Accounting Standards Board (“FASB”) issued an accounting standards update (“ASU”) that provides temporary optional expedients and exceptions to ease the financial reporting burdens related to the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate (“SOFR”). These optional expedients and exceptions provide guidance on contract modifications and hedge accounting. We have completed the transition to SOFR rates for our outstanding debt instruments with no material impact to our Consolidated Financial Statements. The FASB issued an ASU that will require enhanced segment disclosures, primarily regarding significant segment expenses. The ASU is required to be adopted in our 2024 Annual Report and applied retrospectively to all prior periods presented in the financial statements. We do not expect such adoption to have a material effect on our Notes to Consolidated Financial Statements. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | Leases Operating Leases We generally lease our office properties to lessees in exchange for fixed monthly payments that cover rent, property taxes, insurance and certain cost recoveries, primarily common area maintenance. Office properties that are under lease are primarily located in Atlanta, Charlotte, Nashville, Orlando, Pittsburgh, Raleigh, Richmond and Tampa and are leased to a wide variety of lessees across many industries. Our leases are operating leases and mostly range from three |
Investments in and Advances to
Investments in and Advances to Affiliates | 3 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in and Advances to Affiliates | Investments in and Advances to Affiliates Unconsolidated Affiliates - Granite Park Six JV, LLC/ GPI 23 Springs JV, LLC (“Granite Park Six joint venture”/“23Springs joint venture”) During 2022, we entered the Dallas market through the formation of two joint ventures with Granite Properties (“Granite”) to develop Granite Park Six and 23Springs. We own a 50.0% interest in each of these two joint ventures. We determined that we have a variable interest in both the Granite Park Six and 23Springs joint ventures primarily because the entities were designed to pass along interest rate risk, equity price risk and operation risk to us and Granite as equity holders. The joint ventures were further determined to be variable interest entities as they require additional subordinated financial support in the form of loans because the initial equity investments provided by us and Granite were not sufficient to finance the planned investments and operations. We concluded that we do not have the power to direct matters that most significantly impact the activities of either entity and therefore do not qualify as the primary beneficiary. Accordingly, the entities are not consolidated. As of March 31, 2024, our risk of loss with respect to these arrangements was limited to the carrying value of each investment balance. Our investment balances were $42.2 million and $96.7 million as of March 31, 2024 for the Granite Park Six and 23Springs joint ventures, respectively. The assets of the Granite Park Six and 23Springs joint ventures can be used only to settle obligations of the respective joint venture, and their creditors have no recourse to our wholly owned assets. - M+O JV, LLC (“McKinney & Olive joint venture”) During 2022, we expanded our Dallas market presence by acquiring McKinney & Olive through the formation of another joint venture with Granite in which we own a 50.0% interest. We determined that we have a variable interest in the McKinney & Olive joint venture primarily because the entity was designed to pass along interest rate risk, equity price risk and operation risk to us and Granite as equity holders. The McKinney & Olive joint venture was further determined to be a variable interest entity as it requires additional subordinated financial support in the form of a loan because the initial equity investments by us and Granite, including the additional preferred equity provided by us that was subsequently redeemed in full during 2023, were not sufficient to finance its planned investments and operations. We concluded that we do not have the power to direct matters that most significantly impact the activities of the entity and therefore do not qualify as the primary beneficiary. Accordingly, the entity is not consolidated. As of March 31, 2024, our risk of loss with respect to this arrangement was limited to the carrying value of our investment balance of $125.3 million. The assets of the McKinney & Olive joint venture can be used only to settle obligations of the joint venture, and its creditors have no recourse to our wholly owned assets. - Midtown East Tampa, LLC (“Midtown East joint venture”) During 2022, we formed the Midtown East joint venture in Tampa with The Bromley Companies (“Bromley”). We own a 50.0% interest in this joint venture. We determined that we have a variable interest in the Midtown East joint venture primarily because the entity was designed to pass along interest rate risk, equity price risk and operation risk to us as both a debt and equity holder and to Bromley as an equity holder. The Midtown East joint venture was further determined to be a variable interest entity as it requires additional subordinated financial support in the form of a loan because the initial equity investments provided by us and Bromley were not sufficient to finance its planned investments and operations. We concluded that we do not have the power to direct matters that most significantly impact the activities of the entity and therefore do not qualify as the primary beneficiary. Accordingly, the entity is not consolidated. As of March 31, 2024, our risk of loss with respect to this arrangement was $17.8 million, which consists of the $14.1 million carrying value of our investment balance plus the $3.7 million outstanding balance of the loan we have provided to the joint venture. The outstanding balance on the loan is recorded in investments in and advances to unconsolidated affiliates on our Consolidated Balance Sheets. The assets of the Midtown East joint venture can be used only to settle obligations of the joint venture, and its creditors have no recourse to our wholly owned assets. - Brand/HRLP 2827 Peachtree LLC (“2827 Peachtree joint venture”) During 2021, we formed the 2827 Peachtree joint venture in Atlanta with Brand Properties, LLC (“Brand”). We own a 50.0% interest in this joint venture. We determined that we have a variable interest in the 2827 Peachtree joint venture primarily because the entity was designed to pass along interest rate risk, equity price risk and operation risk to us as both a debt and equity holder and to Brand as an equity holder. The 2827 Peachtree joint venture was further determined to be a variable interest entity as it requires additional subordinated financial support in the form of a loan because the initial equity investments provided by us and Brand were not sufficient to finance its planned investments and operations. We concluded that we do not have the power to direct matters that most significantly impact the activities of the entity and therefore do not qualify as the primary beneficiary. Accordingly, the entity is not consolidated. As of March 31, 2024, our risk of loss with respect to this arrangement was $61.0 million, which consists of the $13.2 million carrying value of our investment balance plus the $47.8 million outstanding balance of the loan we have provided to the joint venture. The outstanding balance on the loan is recorded in investments in and advances to unconsolidated affiliates on our Consolidated Balance Sheets. The assets of the 2827 Peachtree joint venture can be used only to settle obligations of the joint venture, and its creditors have no recourse to our wholly owned assets. Consolidated Affiliate - HRLP MTW, LLC (“Midtown West joint venture”) In 2019, we formed the Midtown West joint venture in Tampa with Bromley. We own an 80.0% interest in this joint venture. We determined that we have a variable interest in the Midtown West joint venture primarily because the entity was designed to pass along interest rate risk, equity price risk and operation risk to us and Bromley as equity holders. The Midtown West joint venture was further determined to be a variable interest entity as it requires additional subordinated financial support in the form of a loan because the initial equity investments provided by us and Bromley were not sufficient to finance its planned investments and operations. We, as the majority owner and managing member and through our control rights as set forth in the joint venture’s governance documents, were determined to be the primary beneficiary as we have both the power to direct the activities that most significantly affect the entity (primarily lease rates, property operations and capital expenditures) and significant economic exposure through our equity investment. As such, the Midtown West joint venture is consolidated and all intercompany transactions and accounts are eliminated. The following table sets forth the assets and liabilities of the Midtown West joint venture included on our Consolidated Balance Sheets: March 31, December 31, Net real estate assets $ 59,970 $ 60,410 Cash and cash equivalents $ 1,628 $ 1,096 Restricted cash $ 2,260 $ 2,260 Accrued straight-line rents receivable $ 5,124 $ 5,041 Deferred leasing costs, net $ 2,699 $ 2,783 Prepaid expenses and other assets, net $ 125 $ 124 Mortgages and notes payable, net $ 44,234 $ 44,192 Accounts payable, accrued expenses and other liabilities $ 3,038 $ 2,872 |
Real Estate Assets
Real Estate Assets | 3 Months Ended |
Mar. 31, 2024 | |
Real Estate [Abstract] | |
Real Estate Assets | Real Estate Assets Dispositions During the first quarter of 2024, we sold two buildings in Raleigh for an aggregate sales price of $16.9 million and recorded aggregate gains on disposition of property of $7.2 million. |
Intangible Assets and Below Mar
Intangible Assets and Below Market Lease Liabilities | 3 Months Ended |
Mar. 31, 2024 | |
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) $ 403,901 $ 401,621 Less accumulated amortization (180,904) (175,697) $ 222,997 $ 225,924 Liabilities (in accounts payable, accrued expenses and other liabilities): Acquisition-related below market lease liabilities $ 50,723 $ 50,842 Less accumulated amortization (31,440) (30,416) $ 19,283 $ 20,426 The following table sets forth amortization of intangible assets and below market lease liabilities: Three Months Ended 2024 2023 Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization) $ 9,645 $ 10,232 Amortization of lease incentives (in rental and other revenues) $ 693 $ 714 Amortization of acquisition-related intangible assets (in rental and other revenues) $ 802 $ 831 Amortization of acquisition-related below market lease liabilities (in rental and other revenues) $ (1,144) $ (1,254) 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 Below Market Lease Liabilities (in Rental and Other Revenues) April 1 through December 31, 2024 $ 29,774 $ 1,818 $ 2,264 $ (3,097) 2025 32,319 2,095 2,210 (2,727) 2026 28,052 1,893 1,861 (2,431) 2027 24,340 1,690 1,520 (2,062) 2028 20,468 1,440 1,404 (1,648) Thereafter 61,162 4,500 4,187 (7,318) $ 196,115 $ 13,436 $ 13,446 $ (19,283) Weighted average remaining amortization periods as of March 31, 2024 (in years) 7.5 7.9 7.0 8.1 |
Mortgages and Notes Payable
Mortgages and Notes Payable | 3 Months Ended |
Mar. 31, 2024 | |
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 $ 718,648 $ 720,752 Unsecured indebtedness 2,560,599 2,510,193 Less-unamortized debt issuance costs (16,920) (17,739) Total mortgages and notes payable, net $ 3,262,327 $ 3,213,206 As of March 31, 2024, our secured mortgage loans were collateralized by real estate assets with an undepreciated book value of $1,239.0 million. Our $750.0 million unsecured revolving credit facility was modified during the first quarter of 2024 and is now scheduled to mature in January 2028 (but can be extended for two additional six-month periods at our option assuming no defaults have occurred). The interest rate on our revolving credit facility is SOFR plus a related spread adjustment of 10 basis points and a borrowing spread of 85 basis points, based on current credit ratings. The annual facility fee is 20 basis points. The interest rate and facility fee are based on the higher of the publicly announced ratings from Moody’s Investors Service or Standard & Poor’s Ratings Services. Subject to written consent of the lenders, we may elect to amend the newly modified revolving credit facility no later than May 15, 2024 to provide that the interest rate may be adjusted upward or downward by up to 2.5 basis points subject to satisfaction of certain to-be-determined sustainability goals with respect to the ongoing reduction of greenhouse gas emissions. The financial and other covenants under our newly modified facility are substantially similar to our previous credit facility. We incurred $7.7 million of debt issuance costs during the first quarter of 2024, which will be amortized along with certain existing unamortized debt issuance costs over the remaining term of our new revolving credit facility, and recorded $0.2 million of loss on debt extinguishment. There was $70.0 million and $10.0 million outstanding under our revolving credit facility as of March 31, 2024 and April 16, 2024, respectively. As of both March 31, 2024 and April 16, 2024, we had $0.1 million of outstanding letters of credit, which reduces the availability on our revolving credit facility. As a result, the unused capacity of our revolving credit facility as of March 31, 2024 and April 16, 2024 was $679.9 million and $739.9 million, respectively. We are currently in compliance with financial covenants with respect to our consolidated debt. We have considered our short-term liquidity needs within one year from April 23, 2024 (the date of issuance of the quarterly financial statements) and the adequacy of our estimated cash flows from operating activities and other available financing sources to meet these needs. Importantly, we have no scheduled debt maturities during such one-year period. We have concluded it is probable we will 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. |
Noncontrolling Interests
Noncontrolling Interests | 3 Months Ended |
Mar. 31, 2024 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests Noncontrolling Interests in Consolidated Affiliates As of March 31, 2024, our noncontrolling interest in consolidated affiliates relates to our joint venture partner's 20.0% interest in the Midtown West joint venture. 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 2024 2023 Beginning noncontrolling interests in the Operating Partnership $ 49,520 $ 65,977 Adjustment of noncontrolling interests in the Operating Partnership to fair value 7,479 (11,102) Conversions of Common Units to Common Stock (132) — Net income attributable to noncontrolling interests in the Operating Partnership 533 986 Distributions to noncontrolling interests in the Operating Partnership (1,076) (1,179) Total noncontrolling interests in the Operating Partnership $ 56,324 $ 54,682 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 2024 2023 Net income available for common stockholders $ 26,064 $ 43,834 Increase in additional paid in capital from conversions of Common Units to Common Stock 132 — Change from net income available for common stockholders and transfers from noncontrolling interests $ 26,196 $ 43,834 |
Disclosure About Fair Value of
Disclosure About Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2024 | |
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. Our Level 2 liabilities include the fair value of our mortgages and notes payable and any interest rate swaps. The fair value of mortgages and notes receivable and mortgages and notes payable is estimated by the income approach, which uses 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 any interest rate swaps is determined using the market standard methodology of netting the discounted future fixed cash receipts and the discounted expected variable cash payments. The variable cash payments of interest rate swaps are based on the expectation of future interest rates (forward curves) derived from observed market interest rate curves. In addition, credit valuation adjustments are considered in the fair values to account for potential nonperformance risk, but were concluded to not be significant inputs to the calculation for the periods presented. Level 3. Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Our Level 3 assets include any real estate assets recorded at fair value on a non-recurring basis as a result of our quarterly impairment analysis, which are valued using unobservable local and national industry market data such as comparable sales, appraisals, brokers’ opinions of value and/or the terms of definitive sales contracts. Significant increases or decreases in any valuation inputs in isolation would result in a significantly lower or higher fair value measurement. 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 Significant Observable Inputs Fair Value as of March 31, 2024: Assets: Mortgages and notes receivable, at fair value (1) $ 11,008 $ — $ 11,008 Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 1,943 1,943 — Total Assets $ 12,951 $ 1,943 $ 11,008 Noncontrolling Interests in the Operating Partnership $ 56,324 $ 56,324 $ — Liabilities: Mortgages and notes payable, net, at fair value (1) $ 2,994,752 $ — $ 2,994,752 Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 1,943 1,943 — Total Liabilities $ 2,996,695 $ 1,943 $ 2,994,752 Fair Value as of December 31, 2023: Assets: Mortgages and notes receivable, at fair value (1) $ 4,795 $ — $ 4,795 Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 2,294 2,294 — Total Assets $ 7,089 $ 2,294 $ 4,795 Noncontrolling Interests in the Operating Partnership $ 49,520 $ 49,520 $ — Liabilities: Mortgages and notes payable, net, at fair value (1) $ 2,927,330 $ — $ 2,927,330 Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 2,294 2,294 — Total Liabilities $ 2,929,624 $ 2,294 $ 2,927,330 __________ |
Share-Based Payments
Share-Based Payments | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Payments | Share-Based Payments During the three months ended March 31, 2024, the Company granted 181,328 shares of time-based restricted stock and 142,992 shares of total return-based restricted stock with weighted average grant date fair values per share of $24.45 and $25.22, respectively. We recorded share-based compensation expense of $4.8 million and $4.5 million during the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024, there was $7.3 million of total unrecognized share-based compensation costs, which will be recognized over a weighted average remaining contractual term of 2.4 years. |
Real Estate and Other Assets He
Real Estate and Other Assets Held For Sale | 3 Months Ended |
Mar. 31, 2024 | |
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 as of March 31, 2024 and December 31, 2023, which are considered non-core: March 31, December 31, Assets: Land $ 6,143 $ — Buildings and tenant improvements 39,629 — Less-accumulated depreciation (22,289) — Net real estate assets 23,483 — Accrued straight-line rents receivable 1,626 — Deferred leasing costs, net 904 — Prepaid expenses and other assets, net 65 — Real estate and other assets, net, held for sale $ 26,078 $ — |
Earnings Per Share and Per Unit
Earnings Per Share and Per Unit | 3 Months Ended |
Mar. 31, 2024 | |
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 2024 2023 Earnings per Common Share - basic: Numerator: Net income $ 27,213 $ 44,954 Net (income) attributable to noncontrolling interests in the Operating Partnership (533) (986) Net loss attributable to noncontrolling interests in consolidated affiliates 5 487 Dividends on Preferred Stock (621) (621) Net income available for common stockholders $ 26,064 $ 43,834 Denominator: Denominator for basic earnings per Common Share – weighted average shares (1) 105,804 105,288 Net income available for common stockholders $ 0.25 $ 0.42 Earnings per Common Share - diluted: Numerator: Net income $ 27,213 $ 44,954 Net loss attributable to noncontrolling interests in consolidated affiliates 5 487 Dividends on Preferred Stock (621) (621) Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership $ 26,597 $ 44,820 Denominator: Denominator for basic earnings per Common Share – weighted average shares (1) 105,804 105,288 Add: Noncontrolling interests Common Units 2,154 2,358 Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions 107,958 107,646 Net income available for common stockholders $ 0.25 $ 0.42 __________ (1) Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable. The following table sets forth the computation of basic and diluted earnings per unit of the Operating Partnership: Three Months Ended 2024 2023 Earnings per Common Unit - basic: Numerator: Net income $ 27,213 $ 44,954 Net loss attributable to noncontrolling interests in consolidated affiliates 5 487 Distributions on Preferred Units (621) (621) Net income available for common unitholders $ 26,597 $ 44,820 Denominator: Denominator for basic earnings per Common Unit – weighted average units (1) 107,549 107,237 Net income available for common unitholders $ 0.25 $ 0.42 Earnings per Common Unit - diluted: Numerator: Net income $ 27,213 $ 44,954 Net loss attributable to noncontrolling interests in consolidated affiliates 5 487 Distributions on Preferred Units (621) (621) Net income available for common unitholders $ 26,597 $ 44,820 Denominator: Denominator for basic earnings per Common Unit – weighted average units (1) 107,549 107,237 Net income available for common unitholders $ 0.25 $ 0.42 __________ (1) Includes all unvested restricted stock where distributions on such restricted stock are non-forfeitable . |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The following tables summarize rental and other revenues and net operating income for our office properties. Net operating income is the primary industry property-level performance metric used by our chief operating decision maker and is defined as rental and other revenues less rental property and other expenses. Three Months Ended 2024 2023 Rental and Other Revenues: Atlanta $ 36,443 $ 36,870 Charlotte 21,717 21,580 Nashville 45,038 44,564 Orlando 14,776 14,394 Raleigh 45,178 45,878 Richmond 9,001 9,309 Tampa 24,579 25,391 Total Office Segment 196,732 197,986 Other 14,543 14,766 Total Rental and Other Revenues $ 211,275 $ 212,752 Net Operating Income: Atlanta $ 22,620 $ 24,225 Charlotte 15,928 16,110 Nashville 31,306 33,025 Orlando 9,168 8,772 Raleigh 32,086 33,606 Richmond 6,317 6,570 Tampa 15,488 16,404 Total Office Segment 132,913 138,712 Other 7,927 8,309 Total Net Operating Income 140,840 147,021 Reconciliation to net income: Depreciation and amortization (73,671) (70,633) General and administrative expenses (12,499) (12,415) Interest expense (36,552) (33,098) Other income 1,232 1,147 Gains on disposition of property 7,209 450 Gain on deconsolidation of affiliate — 11,778 Equity in earnings of unconsolidated affiliates 654 704 Net income $ 27,213 $ 44,954 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On April 17, 2024, the Company declared a cash dividend of $0.50 per share of Common Stock, which is payable on June 11, 2024 to stockholders of record as of May 20, 2024. |
Description of Business and S_2
Description of Business and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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. We consolidate joint venture investments, such as interests in partnerships and limited liability companies, when we control the major operating and financial policies of the investment through majority ownership, in our capacity as a general partner or managing member or through some other contractual right. In addition, we consolidate those entities deemed to be variable interest entities in which we are determined to be the primary beneficiary. As of March 31, 2024, we are involved with six entities we determined to be variable interest entities, one of which we are the primary beneficiary and is consolidated and five of which we are not the primary beneficiary and are not consolidated. All intercompany transactions and accounts have been eliminated. In the opinion of management, the unaudited interim Consolidated Financial Statements and accompanying unaudited consolidated financial information 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 2023 Annual Report on Form 10-K. |
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. |
Insurance | Insurance |
Recently Issued Accounting Standards | Recently Issued Accounting Standards The Financial Accounting Standards Board (“FASB”) issued an accounting standards update (“ASU”) that provides temporary optional expedients and exceptions to ease the financial reporting burdens related to the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate (“SOFR”). These optional expedients and exceptions provide guidance on contract modifications and hedge accounting. We have completed the transition to SOFR rates for our outstanding debt instruments with no material impact to our Consolidated Financial Statements. The FASB issued an ASU that will require enhanced segment disclosures, primarily regarding significant segment expenses. The ASU is required to be adopted in our 2024 Annual Report and applied retrospectively to all prior periods presented in the financial statements. We do not expect such adoption to have a material effect on our Notes to Consolidated Financial Statements. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Variable Interest Entities [Abstract] | |
Schedule of Variable Interest Entities | The following table sets forth the assets and liabilities of the Midtown West joint venture included on our Consolidated Balance Sheets: March 31, December 31, Net real estate assets $ 59,970 $ 60,410 Cash and cash equivalents $ 1,628 $ 1,096 Restricted cash $ 2,260 $ 2,260 Accrued straight-line rents receivable $ 5,124 $ 5,041 Deferred leasing costs, net $ 2,699 $ 2,783 Prepaid expenses and other assets, net $ 125 $ 124 Mortgages and notes payable, net $ 44,234 $ 44,192 Accounts payable, accrued expenses and other liabilities $ 3,038 $ 2,872 |
Intangible Assets and Below M_2
Intangible Assets and Below Market Lease Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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) $ 403,901 $ 401,621 Less accumulated amortization (180,904) (175,697) $ 222,997 $ 225,924 Liabilities (in accounts payable, accrued expenses and other liabilities): Acquisition-related below market lease liabilities $ 50,723 $ 50,842 Less accumulated amortization (31,440) (30,416) $ 19,283 $ 20,426 |
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 2024 2023 Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization) $ 9,645 $ 10,232 Amortization of lease incentives (in rental and other revenues) $ 693 $ 714 Amortization of acquisition-related intangible assets (in rental and other revenues) $ 802 $ 831 Amortization of acquisition-related below market lease liabilities (in rental and other revenues) $ (1,144) $ (1,254) |
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 Below Market Lease Liabilities (in Rental and Other Revenues) April 1 through December 31, 2024 $ 29,774 $ 1,818 $ 2,264 $ (3,097) 2025 32,319 2,095 2,210 (2,727) 2026 28,052 1,893 1,861 (2,431) 2027 24,340 1,690 1,520 (2,062) 2028 20,468 1,440 1,404 (1,648) Thereafter 61,162 4,500 4,187 (7,318) $ 196,115 $ 13,436 $ 13,446 $ (19,283) Weighted average remaining amortization periods as of March 31, 2024 (in years) 7.5 7.9 7.0 8.1 |
Mortgages and Notes Payable (Ta
Mortgages and Notes Payable (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 $ 718,648 $ 720,752 Unsecured indebtedness 2,560,599 2,510,193 Less-unamortized debt issuance costs (16,920) (17,739) Total mortgages and notes payable, net $ 3,262,327 $ 3,213,206 |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) - Highwoods Properties, Inc. [Member] | 3 Months Ended |
Mar. 31, 2024 | |
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 2024 2023 Beginning noncontrolling interests in the Operating Partnership $ 49,520 $ 65,977 Adjustment of noncontrolling interests in the Operating Partnership to fair value 7,479 (11,102) Conversions of Common Units to Common Stock (132) — Net income attributable to noncontrolling interests in the Operating Partnership 533 986 Distributions to noncontrolling interests in the Operating Partnership (1,076) (1,179) Total noncontrolling interests in the Operating Partnership $ 56,324 $ 54,682 |
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 2024 2023 Net income available for common stockholders $ 26,064 $ 43,834 Increase in additional paid in capital from conversions of Common Units to Common Stock 132 — Change from net income available for common stockholders and transfers from noncontrolling interests $ 26,196 $ 43,834 |
Disclosure About Fair Value o_2
Disclosure About Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 Significant Observable Inputs Fair Value as of March 31, 2024: Assets: Mortgages and notes receivable, at fair value (1) $ 11,008 $ — $ 11,008 Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 1,943 1,943 — Total Assets $ 12,951 $ 1,943 $ 11,008 Noncontrolling Interests in the Operating Partnership $ 56,324 $ 56,324 $ — Liabilities: Mortgages and notes payable, net, at fair value (1) $ 2,994,752 $ — $ 2,994,752 Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 1,943 1,943 — Total Liabilities $ 2,996,695 $ 1,943 $ 2,994,752 Fair Value as of December 31, 2023: Assets: Mortgages and notes receivable, at fair value (1) $ 4,795 $ — $ 4,795 Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 2,294 2,294 — Total Assets $ 7,089 $ 2,294 $ 4,795 Noncontrolling Interests in the Operating Partnership $ 49,520 $ 49,520 $ — Liabilities: Mortgages and notes payable, net, at fair value (1) $ 2,927,330 $ — $ 2,927,330 Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 2,294 2,294 — Total Liabilities $ 2,929,624 $ 2,294 $ 2,927,330 __________ |
Real Estate and Other Assets _2
Real Estate and Other Assets Held For Sale (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 as of March 31, 2024 and December 31, 2023, which are considered non-core: March 31, December 31, Assets: Land $ 6,143 $ — Buildings and tenant improvements 39,629 — Less-accumulated depreciation (22,289) — Net real estate assets 23,483 — Accrued straight-line rents receivable 1,626 — Deferred leasing costs, net 904 — Prepaid expenses and other assets, net 65 — Real estate and other assets, net, held for sale $ 26,078 $ — |
Earnings Per Share and Per Un_2
Earnings Per Share and Per Unit (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 2024 2023 Earnings per Common Share - basic: Numerator: Net income $ 27,213 $ 44,954 Net (income) attributable to noncontrolling interests in the Operating Partnership (533) (986) Net loss attributable to noncontrolling interests in consolidated affiliates 5 487 Dividends on Preferred Stock (621) (621) Net income available for common stockholders $ 26,064 $ 43,834 Denominator: Denominator for basic earnings per Common Share – weighted average shares (1) 105,804 105,288 Net income available for common stockholders $ 0.25 $ 0.42 Earnings per Common Share - diluted: Numerator: Net income $ 27,213 $ 44,954 Net loss attributable to noncontrolling interests in consolidated affiliates 5 487 Dividends on Preferred Stock (621) (621) Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership $ 26,597 $ 44,820 Denominator: Denominator for basic earnings per Common Share – weighted average shares (1) 105,804 105,288 Add: Noncontrolling interests Common Units 2,154 2,358 Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions 107,958 107,646 Net income available for common stockholders $ 0.25 $ 0.42 __________ (1) |
Highwoods Realty Limited Partnership | |
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 2024 2023 Earnings per Common Unit - basic: Numerator: Net income $ 27,213 $ 44,954 Net loss attributable to noncontrolling interests in consolidated affiliates 5 487 Distributions on Preferred Units (621) (621) Net income available for common unitholders $ 26,597 $ 44,820 Denominator: Denominator for basic earnings per Common Unit – weighted average units (1) 107,549 107,237 Net income available for common unitholders $ 0.25 $ 0.42 Earnings per Common Unit - diluted: Numerator: Net income $ 27,213 $ 44,954 Net loss attributable to noncontrolling interests in consolidated affiliates 5 487 Distributions on Preferred Units (621) (621) Net income available for common unitholders $ 26,597 $ 44,820 Denominator: Denominator for basic earnings per Common Unit – weighted average units (1) 107,549 107,237 Net income available for common unitholders $ 0.25 $ 0.42 __________ (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, 2024 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | The following tables summarize rental and other revenues and net operating income for our office properties. Net operating income is the primary industry property-level performance metric used by our chief operating decision maker and is defined as rental and other revenues less rental property and other expenses. Three Months Ended 2024 2023 Rental and Other Revenues: Atlanta $ 36,443 $ 36,870 Charlotte 21,717 21,580 Nashville 45,038 44,564 Orlando 14,776 14,394 Raleigh 45,178 45,878 Richmond 9,001 9,309 Tampa 24,579 25,391 Total Office Segment 196,732 197,986 Other 14,543 14,766 Total Rental and Other Revenues $ 211,275 $ 212,752 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Net Operating Income: Atlanta $ 22,620 $ 24,225 Charlotte 15,928 16,110 Nashville 31,306 33,025 Orlando 9,168 8,772 Raleigh 32,086 33,606 Richmond 6,317 6,570 Tampa 15,488 16,404 Total Office Segment 132,913 138,712 Other 7,927 8,309 Total Net Operating Income 140,840 147,021 Reconciliation to net income: Depreciation and amortization (73,671) (70,633) General and administrative expenses (12,499) (12,415) Interest expense (36,552) (33,098) Other income 1,232 1,147 Gains on disposition of property 7,209 450 Gain on deconsolidation of affiliate — 11,778 Equity in earnings of unconsolidated affiliates 654 704 Net income $ 27,213 $ 44,954 |
Description of Business and S_3
Description of Business and Significant Accounting Policies (Details) $ in Thousands, ft² in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 USD ($) ft² numberOfEntities shares | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Description of Business [Abstract] | |||
Rentable square feet of commercial real estate properties (in sq feet) | ft² | 28.3 | ||
Rentable square feet of commercial real estate office properties under development (in sq feet) | ft² | 1.6 | ||
Rentable square feet of potential office build (in sq feet) | ft² | 5.2 | ||
Net proceeds of Common Stock sold during the period | $ | $ 1,064 | $ 828 | |
Number of VIE entities | numberOfEntities | 6 | ||
Self insurance liability | $ | $ 500 | ||
Highwoods Properties, Inc. [Member] | |||
Description of Business [Abstract] | |||
Common Units of partnership owned by the Company (in shares) | 105,600,000 | ||
Percentage of ownership of Common Units (in hundredths) | 98% | ||
Common Units redeemed for a like number of common shares of stock (in shares) | 5,385 | ||
Highwoods Properties, Inc. [Member] | ATM Equity Offering | |||
Description of Business [Abstract] | |||
Number of Common Stock sold during the period (in shares) | 0 | ||
Highwoods Properties, Inc. [Member] | ATM Equity Offering | Maximum [Member] | |||
Description of Business [Abstract] | |||
Net proceeds of Common Stock sold during the period | $ | $ 300,000 | ||
Highwoods Realty Limited Partnership | |||
Description of Business [Abstract] | |||
Common Units of partnership not owned by the Company (in shares) | 2,200,000 | ||
Variable Interest Entity, Primary Beneficiary [Member] | |||
Description of Business [Abstract] | |||
Number of VIE entities | numberOfEntities | 1 | ||
Variable Interest Entity, Non Primary Beneficiary [Member] | |||
Description of Business [Abstract] | |||
Number of VIE entities | numberOfEntities | 5 |
Leases ASC 842 (Details)
Leases ASC 842 (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Lessor Disclosure [Abstract] | ||
Rental and other revenues related to operating lease payments | $ 207.8 | $ 209.4 |
Variable lease income | $ 22.5 | $ 19.4 |
Minimum [Member] | ||
Lessor Disclosure [Abstract] | ||
Operating leases, term of leases (in years) | 3 years | |
Maximum [Member] | ||
Lessor Disclosure [Abstract] | ||
Operating leases, term of leases (in years) | 10 years |
Investments in and Advances t_2
Investments in and Advances to Affiliates (Details) - numberOfJointVentures | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule of Equity Method Investments [Line Items] | ||
Number of joint ventures formed | 2 | |
Granite Park Six JV, LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of equity interest in joint venture (in hundredths) | 50% | |
GPI23 Springs JV, LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of equity interest in joint venture (in hundredths) | 50% | |
M+O JV, LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of equity interest in joint venture (in hundredths) | 50% | |
Midtown East Tampa, LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of equity interest in joint venture (in hundredths) | 50% | |
Brand/HRLP 2827 Peachtree LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of equity interest in joint venture (in hundredths) | 50% |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Variable Interest Entities [Line Items] | |||
Additional common equity contribution | $ 30,869,000 | $ 16,762,000 | |
Investments in and advances to unconsolidated affiliates | 372,722,000 | $ 343,241,000 | |
Assets and liabilities of consolidated variable interest entity [Abstract] | |||
Net real estate assets | 4,933,205,000 | 4,993,531,000 | |
Cash and cash equivalents | 16,422,000 | 15,733,000 | 25,123,000 |
Restricted cash | 10,865,000 | $ 5,901,000 | 6,446,000 |
Accrued straight-line rents receivable | 311,099,000 | 310,649,000 | |
Deferred leasing costs, net | 222,997,000 | 225,924,000 | |
Prepaid expense and other assets, net | 74,552,000 | 65,125,000 | |
Mortgages and notes payable | 3,262,327,000 | 3,213,206,000 | |
Accounts payable, accrued expenses and other liabilities | 287,176,000 | 302,180,000 | |
Revolving Credit Facility [Member] | |||
Variable Interest Entities [Line Items] | |||
Maximum borrowing capacity on credit facility | $ 750,000,000 | ||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Revolving Credit Facility [Member] | |||
Variable Interest Entities [Line Items] | |||
Facility interest rate basis | SOFR | ||
Interest rate, basis spread (in hundredths) | 0.85% | ||
Granite Park Six JV, LLC | |||
Variable Interest Entities [Line Items] | |||
Risk of loss limited to carrying value | $ 42,200,000 | ||
GPI23 Springs JV, LLC | |||
Variable Interest Entities [Line Items] | |||
Risk of loss limited to carrying value | 96,700,000 | ||
M+O JV, LLC | |||
Variable Interest Entities [Line Items] | |||
Risk of loss limited to carrying value | 125,300,000 | ||
Midtown East Tampa, LLC | |||
Variable Interest Entities [Line Items] | |||
Risk of loss limited to carrying value | 17,800,000 | ||
Amount of loan funded to affiliate | 3,700,000 | ||
Investments in and advances to unconsolidated affiliates | 14,100,000 | ||
Brand/HRLP 2827 Peachtree LLC | |||
Variable Interest Entities [Line Items] | |||
Risk of loss limited to carrying value | 61,000,000 | ||
Amount of loan funded to affiliate | 47,800,000 | ||
Investments in and advances to unconsolidated affiliates | $ 13,200,000 | ||
HRLP MTW, LLC [Member] | |||
Variable Interest Entities [Line Items] | |||
Interest in joint venture (in hundredths) | 80% | ||
Assets and liabilities of consolidated variable interest entity [Abstract] | |||
Net real estate assets | $ 59,970,000 | 60,410,000 | |
Cash and cash equivalents | 1,628,000 | 1,096,000 | |
Restricted cash | 2,260,000 | 2,260,000 | |
Accrued straight-line rents receivable | 5,124,000 | 5,041,000 | |
Deferred leasing costs, net | 2,699,000 | 2,783,000 | |
Prepaid expense and other assets, net | 125,000 | 124,000 | |
Mortgages and notes payable | 44,234,000 | 44,192,000 | |
Accounts payable, accrued expenses and other liabilities | $ 3,038,000 | $ 2,872,000 |
Real Estate Assets (Details)
Real Estate Assets (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 USD ($) numberOfBuildings | Mar. 31, 2023 USD ($) | |
Dispositions [Abstract] | ||
Gains on disposition of property | $ 7,209 | $ 450 |
2024 Dispositions | ||
Dispositions [Abstract] | ||
Number of buildings sold | numberOfBuildings | 2 | |
Sale price of real estate | $ 16,900 | |
Gains on disposition of property | $ 7,200 |
Intangible Assets and Below M_3
Intangible Assets and Below Market Lease Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Assets: | |||
Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets) | $ 403,901 | $ 401,621 | |
Deferred leasing costs, accumulated amortization | (180,904) | (175,697) | |
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | 222,997 | 225,924 | |
Liabilities (in accounts payable, accrued expenses and other liabilities): | |||
Acquisition-related below market lease liabilities, gross | 50,723 | 50,842 | |
Acquisition-related below market lease liabilities, accumulated amortization | (31,440) | (30,416) | |
Acquisition-related below market lease liabilities, net | 19,283 | $ 20,426 | |
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 | 196,115 | ||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||
Amortization of intangible assets | 9,645 | $ 10,232 | |
Lease Incentives (in Rental and Other Revenues) [Member] | |||
Assets: | |||
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | 13,436 | ||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||
Amortization of intangible assets | 693 | 714 | |
Acquisition-Related Intangible Assets (in Rental and Other Revenues) [Member] | |||
Assets: | |||
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | 13,446 | ||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||
Amortization of intangible assets | 802 | 831 | |
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 | 19,283 | ||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||
Amortization of acquisition-related below market lease liabilities | $ (1,144) | $ (1,254) |
Intangible Assets and Below M_4
Intangible Assets and Below Market Lease Liabilities - Scheduled Future Amortization (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Scheduled future amortization of intangible assets [Abstract] | ||
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | $ 222,997 | $ 225,924 |
Scheduled future amortization of below market lease liabilities [Abstract] | ||
Total scheduled future amortization of acquisition-related below market lease liabilities | (19,283) | $ (20,426) |
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, 2024 | 29,774 | |
2025 | 32,319 | |
2026 | 28,052 | |
2027 | 24,340 | |
2028 | 20,468 | |
Thereafter | 61,162 | |
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | $ 196,115 | |
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 6 months | |
Lease Incentives (in Rental and Other Revenues) [Member] | ||
Scheduled future amortization of intangible assets [Abstract] | ||
April 1 through December 31, 2024 | $ 1,818 | |
2025 | 2,095 | |
2026 | 1,893 | |
2027 | 1,690 | |
2028 | 1,440 | |
Thereafter | 4,500 | |
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | $ 13,436 | |
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 10 months 24 days | |
Acquisition-Related Intangible Assets (in Rental and Other Revenues) [Member] | ||
Scheduled future amortization of intangible assets [Abstract] | ||
April 1 through December 31, 2024 | $ 2,264 | |
2025 | 2,210 | |
2026 | 1,861 | |
2027 | 1,520 | |
2028 | 1,404 | |
Thereafter | 4,187 | |
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | $ 13,446 | |
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 | |
Acquisition-Related Below Market Lease Liabilities (in Rental and Other Revenues) [Member] | ||
Scheduled future amortization of below market lease liabilities [Abstract] | ||
April1 through December 31, 2024 | $ (3,097) | |
2025 | (2,727) | |
2026 | (2,431) | |
2027 | (2,062) | |
2028 | (1,648) | |
Thereafter | (7,318) | |
Total scheduled future amortization of acquisition-related below market lease liabilities | $ (19,283) | |
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) | 8 years 1 month 6 days |
Mortgages and Notes Payable (De
Mortgages and Notes Payable (Details) | 3 Months Ended | |||
Mar. 31, 2024 USD ($) extension | Mar. 31, 2023 USD ($) | Apr. 16, 2024 USD ($) | Dec. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | ||||
Mortgages and notes payable | $ 3,262,327,000 | $ 3,213,206,000 | ||
Unamortized debt issuance costs | (16,920,000) | (17,739,000) | ||
Loss on debt extinguishment | $ (173,000) | $ 0 | ||
Maximum liquidity requirements | 1 year | |||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity on credit facility | $ 750,000,000 | |||
Number of additional extensions | extension | 2 | |||
Term of optional extension | 6 months | |||
Temporary reduction in interest rate due to sustainability goals (in hundredths) | 0.025% | |||
Debt issuance costs | $ 7,700,000 | |||
Loss on debt extinguishment | (200,000) | |||
Amount outstanding on revolving credit facility | 70,000,000 | |||
Outstanding letters of credit on revolving credit facility | 100,000 | |||
Unused borrowing capacity on revolving credit facility | 679,900,000 | |||
Secured indebtedness [Member] | ||||
Debt Instrument [Line Items] | ||||
Mortgages and notes payable | 718,648,000 | 720,752,000 | ||
Aggregate undepreciated book value of secured real estate assets | 1,239,000,000 | |||
Unsecured indebtedness [Member] | ||||
Debt Instrument [Line Items] | ||||
Mortgages and notes payable | $ 2,560,599,000 | $ 2,510,193,000 | ||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Facility interest rate basis | SOFR | |||
Interest rate, basis spread (in hundredths) | 0.85% | |||
Annual facility fee (in hundredths) | 0.20% | |||
SOFR Related Spread Adjustment [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate, basis spread (in hundredths) | 0.10% | |||
Subsequent Event [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Amount outstanding on revolving credit facility | $ 10,000,000 | |||
Outstanding letters of credit on revolving credit facility | 100,000 | |||
Unused borrowing capacity on revolving credit facility | $ 739,900,000 |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Noncontrolling Interests in the Operating Partnership [Roll Forward] | ||
Beginning noncontrolling interests in the Operating Partnership | $ 49,520 | |
Adjustment of noncontrolling interests in the Operating Partnership to fair value | 7,479 | $ (11,102) |
Conversions of Common Units to Common Stock | (132) | 0 |
Net income attributable to noncontrolling interests in the Operating Partnership | 533 | 986 |
Distributions to noncontrolling interests in the Operating Partnership | (1,076) | (1,179) |
Total noncontrolling interests in the Operating Partnership | 56,324 | |
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership [Abstract] | ||
Net income available for common stockholders | 26,064 | 43,834 |
Highwoods Properties, Inc. [Member] | ||
Noncontrolling Interests in the Operating Partnership [Roll Forward] | ||
Beginning noncontrolling interests in the Operating Partnership | 49,520 | 65,977 |
Adjustment of noncontrolling interests in the Operating Partnership to fair value | 7,479 | (11,102) |
Conversions of Common Units to Common Stock | (132) | 0 |
Net income attributable to noncontrolling interests in the Operating Partnership | 533 | 986 |
Distributions to noncontrolling interests in the Operating Partnership | (1,076) | (1,179) |
Total noncontrolling interests in the Operating Partnership | 56,324 | 54,682 |
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership [Abstract] | ||
Net income available for common stockholders | 26,064 | 43,834 |
Increase in additional paid in capital from conversions of Common Units to Common Stock | 132 | 0 |
Change from net income available for common stockholders and transfers from noncontrolling interests | $ 26,196 | $ 43,834 |
Midtown West Joint Venture [Member] | ||
Noncontrolling Interests in Consolidated Affiliates [Abstract] | ||
Consolidated joint venture, partner's interest (in hundredths) | 20% |
Disclosure About Fair Value o_3
Disclosure About Fair Value of Financial Instruments - Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets: | ||
Mortgages and notes receivable, at fair value | $ 11,008 | $ 4,795 |
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) | 1,943 | 2,294 |
Total Assets | 12,951 | 7,089 |
Liabilities: | ||
Mortgages and notes payable, net, at fair value | 2,994,752 | 2,927,330 |
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 1,943 | 2,294 |
Total Liabilities | 2,996,695 | 2,929,624 |
Level 1 [Member] | ||
Assets: | ||
Mortgages and notes receivable, at fair value | 0 | 0 |
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) | 1,943 | 2,294 |
Total Assets | 1,943 | 2,294 |
Liabilities: | ||
Mortgages and notes payable, net, at fair value | 0 | 0 |
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 1,943 | 2,294 |
Total Liabilities | 1,943 | 2,294 |
Level 2 [Member] | ||
Assets: | ||
Mortgages and notes receivable, at fair value | 11,008 | 4,795 |
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) | 0 | 0 |
Total Assets | 11,008 | 4,795 |
Liabilities: | ||
Mortgages and notes payable, net, at fair value | 2,994,752 | 2,927,330 |
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 0 | 0 |
Total Liabilities | 2,994,752 | 2,927,330 |
Highwoods Properties, Inc. [Member] | ||
Assets: | ||
Noncontrolling Interests in the Operating Partnership | 56,324 | 49,520 |
Highwoods Properties, Inc. [Member] | Level 1 [Member] | ||
Assets: | ||
Noncontrolling Interests in the Operating Partnership | 56,324 | 49,520 |
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, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 4,833 | $ 4,525 |
Total unrecognized share-based compensation costs | $ 7,300 | |
Weighted average remaining contractual term for recognition of unrecognized share-based compensation costs (in years) | 2 years 4 months 24 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) | 181,328 | |
Weighted average grant date fair value of each restricted stock share granted (in dollars per share) | $ 24.45 | |
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) | 142,992 | |
Weighted average grant date fair value of each restricted stock share granted (in dollars per share) | $ 25.22 |
Real Estate and Other Assets _3
Real Estate and Other Assets Held For Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Real Estate and Other Assets Held For Sale [Abstract] | ||
Land | $ 6,143 | $ 0 |
Buildings and tenant improvements | 39,629 | 0 |
Less-accumulated depreciation | (22,289) | 0 |
Net real estate assets | 23,483 | 0 |
Accrued straight-line rents receivable | 1,626 | 0 |
Deferred leasing costs, net | 904 | 0 |
Prepaid expenses and other assets, net | 65 | 0 |
Real estate and other assets, net, held for sale | $ 26,078 | $ 0 |
Earnings Per Share and Per Un_3
Earnings Per Share and Per Unit (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings per Common Share and Per Unit - basic: [Abstract] | ||
Net income | $ 27,213 | $ 44,954 |
Net (income) attributable to noncontrolling interests in the Operating Partnership | (533) | (986) |
Net (income)/loss attributable to noncontrolling interests in consolidated affiliates | 5 | 487 |
Dividends on Preferred Stock | (621) | (621) |
Net income available for common stockholders | $ 26,064 | $ 43,834 |
Denominator: | ||
Denominator for basic earnings per Common Share - weighted average shares (in shares) | 105,804 | 105,288 |
Earnings per Common Share - basic: | ||
Net income available for common stockholders (in dollars per share) | $ 0.25 | $ 0.42 |
Earnings per Common Share and Per Unit - diluted: [Abstract] | ||
Net income | $ 27,213 | $ 44,954 |
Net loss attributable to noncontrolling interests in consolidated affiliates | 5 | 487 |
Dividends on Preferred Stock | (621) | (621) |
Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership | $ 26,597 | $ 44,820 |
Denominator: | ||
Denominator for basic earnings per Common Share - weighted average shares (in shares) | 105,804 | 105,288 |
Noncontrolling interests Common Units (in shares) | 2,154 | 2,358 |
Denominator for diluted earnings per Common Share - adjusted weighted average shares and assumed conversions (in shares) | 107,958 | 107,646 |
Earnings per Common Share - diluted: | ||
Net income available for common stockholders (in dollars per share) | $ 0.25 | $ 0.42 |
Highwoods Realty Limited Partnership | ||
Earnings per Common Share and Per Unit - basic: [Abstract] | ||
Net income | $ 27,213 | $ 44,954 |
Net (income)/loss attributable to noncontrolling interests in consolidated affiliates | 5 | 487 |
Distributions on Preferred Units | (621) | (621) |
Net income available for common unitholders | $ 26,597 | $ 44,820 |
Denominator: | ||
Denominator for basic earnings per Common Unit - weighted average units (in shares) | 107,549 | 107,237 |
Earnings per Common Unit - basic: | ||
Net income available for common unitholders (in dollars per share) | $ 0.25 | $ 0.42 |
Earnings per Common Share and Per Unit - diluted: [Abstract] | ||
Net income | $ 27,213 | $ 44,954 |
Net loss attributable to noncontrolling interests in consolidated affiliates | 5 | 487 |
Distributions on Preferred Units | (621) | (621) |
Net income available for common unitholders | $ 26,597 | $ 44,820 |
Denominator: | ||
Denominator for basic earnings per Common Unit - weighted average units (in shares) | 107,549 | 107,237 |
Earnings per Common Unit - diluted: | ||
Net income available for common unitholders (in dollars per share) | $ 0.25 | $ 0.42 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | $ 211,275 | $ 212,752 |
Total Net Operating Income | 140,840 | 147,021 |
Reconciliation to net income: | ||
Depreciation and amortization | (73,671) | (70,633) |
General and administrative expenses | (12,499) | (12,415) |
Interest expense | (36,552) | (33,098) |
Other income | 1,232 | 1,147 |
Gains on disposition of property | 7,209 | 450 |
Gain on deconsolidation of affiliate | 0 | 11,778 |
Equity in earnings of unconsolidated affiliates | 654 | 704 |
Net income | 27,213 | 44,954 |
Total Office Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 196,732 | 197,986 |
Total Net Operating Income | 132,913 | 138,712 |
Office Atlanta, GA [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 36,443 | 36,870 |
Total Net Operating Income | 22,620 | 24,225 |
Office Charlotte, NC [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 21,717 | 21,580 |
Total Net Operating Income | 15,928 | 16,110 |
Office Nashville, TN [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 45,038 | 44,564 |
Total Net Operating Income | 31,306 | 33,025 |
Office Orlando, FL [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 14,776 | 14,394 |
Total Net Operating Income | 9,168 | 8,772 |
Office Raleigh, NC [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 45,178 | 45,878 |
Total Net Operating Income | 32,086 | 33,606 |
Office Richmond, VA [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 9,001 | 9,309 |
Total Net Operating Income | 6,317 | 6,570 |
Office Tampa, FL [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 24,579 | 25,391 |
Total Net Operating Income | 15,488 | 16,404 |
Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 14,543 | 14,766 |
Total Net Operating Income | $ 7,927 | $ 8,309 |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Apr. 17, 2024 $ / shares | Apr. 03, 2024 USD ($) numberOfBuildings | Mar. 31, 2024 USD ($) numberOfBuildings $ / shares | Mar. 31, 2023 USD ($) $ / shares | |
Subsequent Event [Line Items] | ||||
Gains on disposition of property | $ 7,209 | $ 450 | ||
2024 Dispositions | ||||
Subsequent Event [Line Items] | ||||
Number of buildings sold | numberOfBuildings | 2 | |||
Sale price of real estate | $ 16,900 | |||
Gains on disposition of property | $ 7,200 | |||
Highwoods Properties, Inc. [Member] | ||||
Subsequent Event [Line Items] | ||||
Dividends declared per share of Common Stock (in dollars per share) | $ / shares | $ 0.50 | $ 0.50 | ||
Subsequent Event [Member] | 2024 Dispositions | ||||
Subsequent Event [Line Items] | ||||
Number of buildings sold | numberOfBuildings | 7 | |||
Sale price of real estate | $ 62,500 | |||
Gains on disposition of property | $ 35,000 | |||
Subsequent Event [Member] | Highwoods Properties, Inc. [Member] | ||||
Subsequent Event [Line Items] | ||||
Dividends declared per share of Common Stock (in dollars per share) | $ / shares | $ 0.50 |