Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 20, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
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 | 3100 Smoketree Court | |
Entity Address, Address Line Two | Suite 600 | |
Entity Address, City or Town | Raleigh | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 27604 | |
City Area Code | 919 | |
Local Phone Number | 872-4924 | |
Title of 12(b) Security | Common Stock, $.01 par value, of Highwoods Properties, Inc. | |
Trading Symbol | HIW | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 104,055,736 | |
Entity Central Index Key | 0000921082 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Highwoods Realty Limited Partnership [Member] | ||
Entity Information [Line Items] | ||
Entity Registrant Name | HIGHWOODS REALTY LIMITED PARTNERSHIP | |
Entity Incorporation, State or Country Code | NC | |
Entity File Number | 000-21731 | |
Entity Tax Identification Number | 56-1869557 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000941713 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Real estate assets, at cost: | ||
Land | $ 474,141 | $ 466,872 |
Buildings and tenant improvements | 5,125,924 | 4,981,637 |
Development in-process | 288,406 | 259,681 |
Land held for development | 131,458 | 131,474 |
Total real estate assets | 6,019,929 | 5,839,664 |
Less-accumulated depreciation | (1,454,427) | (1,418,379) |
Net real estate assets | 4,565,502 | 4,421,285 |
Real estate and other assets, net, held for sale | 0 | 11,360 |
Cash and cash equivalents | 49,279 | 109,322 |
Restricted cash | 9,099 | 79,922 |
Accounts receivable | 23,226 | 27,488 |
Mortgages and notes receivable | 1,292 | 1,341 |
Accrued straight-line rents receivable | 263,643 | 259,381 |
Investments in and advances to unconsolidated affiliates | 638 | 27,104 |
Deferred leasing costs, net of accumulated amortization of $147,937 and $151,698, respectively | 219,790 | 209,329 |
Prepaid expenses and other assets, net of accumulated depreciation of $18,895 and $21,154, respectively | 72,845 | 62,885 |
Total Assets | 5,205,314 | 5,209,417 |
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Liabilities, Redeemable Operating Partnership Units and Capital: | ||
Mortgages and notes payable, net | 2,470,472 | 2,470,021 |
Accounts payable, accrued expenses and other liabilities | 258,026 | 268,727 |
Total Liabilities | 2,728,498 | 2,738,748 |
Commitments and contingencies | ||
Noncontrolling interests in the Operating Partnership | 121,895 | 112,499 |
Equity/Capital: | ||
Preferred Stock, $.01 par value, 50,000,000 authorized shares; 8.625% Series A Cumulative Redeemable Preferred Shares (liquidation preference $1,000 per share), 28,826 shares issued and outstanding | 28,826 | 28,826 |
Common Stock, $.01 par value, 200,000,000 authorized shares; 104,055,152 and 103,921,546 shares issued and outstanding, respectively | 1,041 | 1,039 |
Additional paid-in capital | 2,986,462 | 2,993,946 |
Distributions in excess of net income available for common stockholders | (681,613) | (686,225) |
Accumulated other comprehensive loss | (1,340) | (1,462) |
Total Stockholders’ Equity | 2,333,376 | 2,336,124 |
Noncontrolling interests in consolidated affiliates | 21,545 | 22,046 |
Total Equity/Capital | 2,354,921 | 2,358,170 |
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Capital | 5,205,314 | 5,209,417 |
Highwoods Realty Limited Partnership [Member] | ||
Real estate assets, at cost: | ||
Land | 474,141 | 466,872 |
Buildings and tenant improvements | 5,125,924 | 4,981,637 |
Development in-process | 288,406 | 259,681 |
Land held for development | 131,458 | 131,474 |
Total real estate assets | 6,019,929 | 5,839,664 |
Less-accumulated depreciation | (1,454,427) | (1,418,379) |
Net real estate assets | 4,565,502 | 4,421,285 |
Real estate and other assets, net, held for sale | 0 | 11,360 |
Cash and cash equivalents | 49,279 | 109,322 |
Restricted cash | 9,099 | 79,922 |
Accounts receivable | 23,226 | 27,488 |
Mortgages and notes receivable | 1,292 | 1,341 |
Accrued straight-line rents receivable | 263,643 | 259,381 |
Investments in and advances to unconsolidated affiliates | 638 | 27,104 |
Deferred leasing costs, net of accumulated amortization of $147,937 and $151,698, respectively | 219,790 | 209,329 |
Prepaid expenses and other assets, net of accumulated depreciation of $18,895 and $21,154, respectively | 72,845 | 62,885 |
Total Assets | 5,205,314 | 5,209,417 |
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Liabilities, Redeemable Operating Partnership Units and Capital: | ||
Mortgages and notes payable, net | 2,470,472 | 2,470,021 |
Accounts payable, accrued expenses and other liabilities | 258,026 | 268,727 |
Total Liabilities | 2,728,498 | 2,738,748 |
Commitments and contingencies | ||
Redeemable Operating Partnership Units: | ||
Common Units, 2,838,725 outstanding | 121,895 | 112,499 |
Series A Preferred Units (liquidation preference $1,000 per unit), 28,826 units issued and outstanding | 28,826 | 28,826 |
Total Redeemable Operating Partnership Units | 150,721 | 141,325 |
Equity/Capital: | ||
General partner Common Units, 1,064,851 and 1,063,515 outstanding, respectively | 23,059 | 23,087 |
Limited partner Common Units, 102,581,492 and 102,449,222 outstanding, respectively | 2,282,831 | 2,285,673 |
Accumulated other comprehensive loss | (1,340) | (1,462) |
Noncontrolling interests in consolidated affiliates | 21,545 | 22,046 |
Total Equity/Capital | 2,326,095 | 2,329,344 |
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Capital | $ 5,205,314 | $ 5,209,417 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Assets: | ||
Deferred leasing costs, accumulated amortization | $ 147,937 | $ 151,698 |
Prepaid Expenses And Other Assets Accumulated Depreciation | $ 18,895 | $ 21,154 |
Equity/Capital: | ||
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) | 28,826 | 28,826 |
Series A Preferred Stock, shares outstanding (in shares) | 28,826 | 28,826 |
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) | 104,055,152 | 103,921,546 |
Common Stock, shares outstanding (in shares) | 104,055,152 | 103,921,546 |
Highwoods Realty Limited Partnership [Member] | ||
Assets: | ||
Deferred leasing costs, accumulated amortization | $ 147,937 | $ 151,698 |
Prepaid Expenses And Other Assets Accumulated Depreciation | $ 18,895 | $ 21,154 |
Redeemable Operating Partnership Units: [Abstract] | ||
Redeemable Common Units outstanding (in shares) | 2,838,725 | 2,838,725 |
Series A Preferred Units, liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 |
Series A Preferred Units, issued (in shares) | 28,826 | 28,826 |
Series A Preferred Units, outstanding (in shares) | 28,826 | 28,826 |
Common Units: [Abstract] | ||
General partners' capital account, units outstanding (in shares) | 1,064,851 | 1,063,515 |
Limited partners' capital account, units outstanding (in shares) | 102,581,492 | 102,449,222 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Rental and other revenues | $ 183,805 | $ 192,800 |
Operating expenses: | ||
Rental property and other expenses | 56,189 | 62,202 |
Depreciation and amortization | 60,927 | 61,150 |
General and administrative | 9,952 | 10,930 |
Total operating expenses | 127,068 | 134,282 |
Interest expense | 19,768 | 21,277 |
Other income | 312 | 69 |
Gains on disposition of property | 18,937 | 153,067 |
Equity in earnings of unconsolidated affiliates | 637 | 963 |
Net income | 56,855 | 191,340 |
Net (income) attributable to noncontrolling interests in the Operating Partnership | (1,493) | (4,960) |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (281) | (285) |
Dividends on Preferred Stock | (622) | (622) |
Net income available for common stockholders | $ 54,459 | $ 185,473 |
Earnings per Common Share – basic: | ||
Net income available for common stockholders (in dollars per share) | $ 0.52 | $ 1.79 |
Weighted average Common Shares outstanding - basic (in shares) | 103,963 | 103,813 |
Earnings per Common Share - diluted: | ||
Net income available for common stockholders (in dollars per share) | $ 0.52 | $ 1.79 |
Weighted average Common Shares outstanding - diluted (in shares) | 106,810 | 106,633 |
Highwoods Realty Limited Partnership [Member] | ||
Rental and other revenues | $ 183,805 | $ 192,800 |
Operating expenses: | ||
Rental property and other expenses | 56,189 | 62,202 |
Depreciation and amortization | 60,927 | 61,150 |
General and administrative | 9,952 | 10,930 |
Total operating expenses | 127,068 | 134,282 |
Interest expense | 19,768 | 21,277 |
Other income | 312 | 69 |
Gains on disposition of property | 18,937 | 153,067 |
Equity in earnings of unconsolidated affiliates | 637 | 963 |
Net income | 56,855 | 191,340 |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (281) | (285) |
Distributions on Preferred Units | (622) | (622) |
Net income available for common unitholders | $ 55,952 | $ 190,433 |
Earnings per Common Unit - basic: | ||
Net income available for common unitholders (in dollars per share) | $ 0.53 | $ 1.79 |
Weighted average Common Units outstanding - basic (in shares) | 106,393 | 106,199 |
Earnings per Common Unit - diluted: | ||
Net income available for common unitholders (in dollars per share) | $ 0.53 | $ 1.79 |
Weighted average Common Units outstanding - diluted (in shares) | 106,401 | 106,224 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Comprehensive income: | ||
Net income | $ 56,855 | $ 191,340 |
Other comprehensive income/(loss): | ||
Unrealized losses on cash flow hedges | 0 | (1,133) |
Amortization of cash flow hedges | 122 | (72) |
Total other comprehensive income/(loss) | 122 | (1,205) |
Total comprehensive income | 56,977 | 190,135 |
Less-comprehensive (income) attributable to noncontrolling interests | (1,774) | (5,245) |
Comprehensive income attributable to common stockholders/Comprehensive income attributable to common unitholders | 55,203 | 184,890 |
Highwoods Realty Limited Partnership [Member] | ||
Comprehensive income: | ||
Net income | 56,855 | 191,340 |
Other comprehensive income/(loss): | ||
Unrealized losses on cash flow hedges | 0 | (1,133) |
Amortization of cash flow hedges | 122 | (72) |
Total other comprehensive income/(loss) | 122 | (1,205) |
Total comprehensive income | 56,977 | 190,135 |
Less-comprehensive (income) attributable to noncontrolling interests | (281) | (285) |
Comprehensive income attributable to common stockholders/Comprehensive income attributable to common unitholders | $ 56,696 | $ 189,850 |
Consolidated Statements of Equi
Consolidated Statements of Equity/Capital - USD ($) $ in Thousands | Total | Highwoods Realty Limited Partnership [Member] | Common Stock [Member] | Series A Cumulative Redeemable Preferred Shares [Member] | General Partners' Common Units [Member]Highwoods Realty Limited Partnership [Member] | Limited Partners' Common Units [Member]Highwoods Realty Limited Partnership [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Other Comprehensive Income (Loss) [Member]Highwoods Realty Limited Partnership [Member] | Noncontrolling Interests in Consolidated Affiliates [Member] | Noncontrolling Interests in Consolidated Affiliates [Member]Highwoods Realty Limited Partnership [Member] | Distributions in Excess of Net Income Available for Common Stockholders [Member] |
Balance (in shares) at Dec. 31, 2019 | 103,756,046 | |||||||||||
Balance at Dec. 31, 2019 | $ 2,174,407 | $ 2,145,548 | $ 1,038 | $ 28,859 | $ 21,240 | $ 2,102,769 | $ 2,954,779 | $ (471) | $ (471) | $ 22,010 | $ 22,010 | $ (831,808) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Issuances of Common Units, net of issuance costs and tax withholdings | 7,202 | 72 | 7,130 | |||||||||
Distributions on Common Units | (50,903) | (509) | (50,394) | |||||||||
Distributions on Preferred Units | (622) | (6) | (616) | |||||||||
Issuances of Common Stock, net of issuance costs and tax withholdings - Shares | (13,266) | |||||||||||
Issuances of Common Stock, net of issuance costs and tax withholdings | 1,039 | 1,039 | ||||||||||
Dividends on Common Stock | (49,735) | (49,735) | ||||||||||
Dividends on Preferred Stock | (622) | (622) | ||||||||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | 42,301 | 42,301 | ||||||||||
Distributions to noncontrolling interests in consolidated affiliates | (198) | (198) | (198) | (198) | ||||||||
Issuances of restricted stock - shares | 149,304 | |||||||||||
Issuances of restricted stock | 0 | |||||||||||
Redemptions/repurchases of Preferred Stock | (3) | (3) | ||||||||||
Share-based compensation expense, net of forfeitures - shares | (6,166) | |||||||||||
Share-based compensation expense, net of forfeitures | 2,496 | 2,496 | $ 1 | 25 | 2,471 | 2,495 | ||||||
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner | 32,346 | 323 | 32,023 | |||||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | (4,960) | (4,960) | ||||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | 0 | 0 | (3) | (282) | 285 | 285 | (285) | |||||
Comprehensive income: | ||||||||||||
Net income | 191,340 | 191,340 | 1,913 | 189,427 | 191,340 | |||||||
Other comprehensive income/(loss) | (1,205) | (1,205) | (1,205) | (1,205) | ||||||||
Total comprehensive income | 190,135 | 190,135 | ||||||||||
Balance (in shares) at Mar. 31, 2020 | 103,885,918 | |||||||||||
Balance at Mar. 31, 2020 | $ 2,354,860 | 2,326,004 | $ 1,039 | 28,856 | 23,055 | 2,282,528 | 3,000,614 | (1,676) | (1,676) | 22,097 | 22,097 | (696,070) |
Balance (in shares) at Dec. 31, 2020 | 103,921,546 | 103,921,546 | ||||||||||
Balance at Dec. 31, 2020 | $ 2,358,170 | 2,329,344 | $ 1,039 | 28,826 | 23,087 | 2,285,673 | 2,993,946 | (1,462) | (1,462) | 22,046 | 22,046 | (686,225) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Issuances of Common Units, net of issuance costs and tax withholdings | (1,198) | (12) | (1,186) | |||||||||
Distributions on Common Units | (51,014) | (510) | (50,504) | |||||||||
Distributions on Preferred Units | (622) | (6) | (616) | |||||||||
Issuances of Common Stock, net of issuance costs and tax withholdings - Shares | (49,058) | |||||||||||
Issuances of Common Stock, net of issuance costs and tax withholdings | (1,198) | (1,198) | ||||||||||
Dividends on Common Stock | (49,847) | (49,847) | ||||||||||
Dividends on Preferred Stock | (622) | (622) | ||||||||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | (9,266) | (9,266) | ||||||||||
Distributions to noncontrolling interests in consolidated affiliates | (782) | (782) | (782) | (782) | ||||||||
Issuances of restricted stock - shares | 183,100 | |||||||||||
Issuances of restricted stock | 0 | |||||||||||
Share-based compensation expense, net of forfeitures - shares | (436) | |||||||||||
Share-based compensation expense, net of forfeitures | 2,982 | 2,982 | $ 2 | 30 | 2,952 | 2,980 | ||||||
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner | (9,592) | (96) | (9,496) | |||||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | (1,493) | (1,493) | ||||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | 0 | 0 | (3) | (278) | 281 | 281 | (281) | |||||
Comprehensive income: | ||||||||||||
Net income | 56,855 | 56,855 | 569 | 56,286 | 56,855 | |||||||
Other comprehensive income/(loss) | 122 | 122 | 122 | 122 | ||||||||
Total comprehensive income | $ 56,977 | 56,977 | ||||||||||
Balance (in shares) at Mar. 31, 2021 | 104,055,152 | 104,055,152 | ||||||||||
Balance at Mar. 31, 2021 | $ 2,354,921 | $ 2,326,095 | $ 1,041 | $ 28,826 | $ 23,059 | $ 2,282,831 | $ 2,986,462 | $ (1,340) | $ (1,340) | $ 21,545 | $ 21,545 | $ (681,613) |
Consolidated Statements of Eq_2
Consolidated Statements of Equity/Capital (Parentheticals) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Highwoods Properties, Inc. [Member] | ||
Dividends on Common Stock (per share) | $ 0.48 | $ 0.48 |
Highwoods Properties, Inc. [Member] | Series A Cumulative Redeemable Preferred Shares [Member] | ||
Dividends on Preferred Stock (per share)/Distributions on Preferred Units (per unit) | 21.5625 | 21.5625 |
Highwoods Realty Limited Partnership [Member] | ||
Distributions on Common Units (per unit) | 0.48 | 0.48 |
Highwoods Realty Limited Partnership [Member] | Series A Cumulative Redeemable Preferred Shares [Member] | ||
Dividends on Preferred Stock (per share)/Distributions on Preferred Units (per unit) | $ 21.5625 | $ 21.5625 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Operating activities: | |||
Net income | $ 56,855 | $ 191,340 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 60,927 | 61,150 | |
Amortization of lease incentives and acquisition-related intangible assets and liabilities | (704) | (649) | |
Share-based compensation expense | 2,982 | 2,496 | |
Credit losses on operating lease receivables | 237 | 1,249 | |
Accrued interest on mortgages and notes receivable | (27) | (31) | |
Amortization of debt issuance costs | 792 | 767 | |
Amortization of cash flow hedges | 122 | (72) | |
Amortization of mortgages and notes payable fair value adjustments | 411 | 426 | |
Losses on debt extinguishment | 76 | 0 | |
Net gains on disposition of property | (18,937) | (153,067) | |
Equity in earnings of unconsolidated affiliates | (637) | (963) | |
Distributions of earnings from unconsolidated affiliates | 395 | 341 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 6,658 | 824 | |
Prepaid expenses and other assets | (5,544) | (8,745) | |
Accrued straight-line rents receivable | (4,245) | (10,888) | |
Accounts payable, accrued expenses and other liabilities | (16,381) | (20,564) | |
Net cash provided by operating activities | 82,980 | 63,614 | |
Investing activities: | |||
Investments in acquired real estate and related intangible assets, net of cash acquired | 0 | (55) | |
Investments in development in-process | (19,789) | (36,122) | |
Investments in tenant improvements and deferred leasing costs | (22,939) | (49,825) | |
Investments in building improvements | (14,422) | (15,254) | |
Investment in acquired controlling interest in unconsolidated affiliate | (127,339) | 0 | |
Net proceeds from disposition of real estate assets | 30,242 | 331,761 | |
Distributions of capital from unconsolidated affiliates | 0 | 72 | |
Investments in mortgages and notes receivable | 0 | (32) | |
Repayments of mortgages and notes receivable | 76 | 75 | |
Changes in other investing activities | (746) | 477 | |
Net cash provided by/(used in) investing activities | (154,917) | 231,097 | |
Financing activities: | |||
Dividends on Common Stock | (49,847) | (49,735) | |
Redemptions/repurchases of Preferred Stock | 0 | (3) | |
Dividends on Preferred Stock | (622) | (622) | |
Distributions to noncontrolling interests in the Operating Partnership | (1,363) | (1,364) | |
Distributions to noncontrolling interests in consolidated affiliates | (782) | (198) | |
Proceeds from the issuance of Common Stock | 493 | 2,343 | |
Costs paid for the issuance of Common Stock | (10) | (180) | |
Repurchase of shares related to tax withholdings | (1,681) | (1,124) | |
Borrowings on revolving credit facility | 0 | 110,000 | |
Repayments of revolving credit facility | 0 | (244,000) | |
Repayments of mortgages and notes payable | (501) | (481) | |
Changes in debt issuance costs and other financing activities | (4,616) | 0 | |
Net cash used in financing activities | (58,929) | (185,364) | |
Net increase/(decrease) in cash and cash equivalents and restricted cash | (130,866) | 109,347 | |
Cash and cash equivalents and restricted cash at beginning of the period | 189,244 | 14,742 | |
Cash and cash equivalents and restricted cash at end of the period | 58,378 | 124,089 | |
Reconciliation of cash and cash equivalents and restricted cash: | |||
Cash and cash equivalents at end of the period | 49,279 | 12,696 | |
Restricted cash at end of the period | 9,099 | 111,393 | |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest, net of amounts capitalized | 27,646 | 25,321 | |
Supplemental disclosure of non-cash investing and financing activities: | |||
Unrealized losses on cash flow hedges | 0 | (1,133) | |
Changes in accrued capital expenditures (1) | [1] | (454) | (4,789) |
Write-off of fully depreciated real estate assets | 15,468 | 12,033 | |
Write-off of fully amortized leasing costs | 12,848 | 5,842 | |
Write-off of fully amortized debt issuance costs | 2,983 | 0 | |
Adjustment of noncontrolling interests in the Operating Partnership to fair value | 9,266 | (42,301) | |
Issuances of Common Units to acquire real estate assets | 0 | 6,163 | |
Accrued capital expenditures included in accounts payable, accrued expenses and other liabilities | 65,500 | 63,200 | |
Highwoods Realty Limited Partnership [Member] | |||
Operating activities: | |||
Net income | 56,855 | 191,340 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 60,927 | 61,150 | |
Amortization of lease incentives and acquisition-related intangible assets and liabilities | (704) | (649) | |
Share-based compensation expense | 2,982 | 2,496 | |
Credit losses on operating lease receivables | 237 | 1,249 | |
Accrued interest on mortgages and notes receivable | (27) | (31) | |
Amortization of debt issuance costs | 792 | 767 | |
Amortization of cash flow hedges | 122 | (72) | |
Amortization of mortgages and notes payable fair value adjustments | 411 | 426 | |
Losses on debt extinguishment | 76 | 0 | |
Net gains on disposition of property | (18,937) | (153,067) | |
Equity in earnings of unconsolidated affiliates | (637) | (963) | |
Distributions of earnings from unconsolidated affiliates | 395 | 341 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 6,658 | 824 | |
Prepaid expenses and other assets | (5,544) | (8,745) | |
Accrued straight-line rents receivable | (4,245) | (10,888) | |
Accounts payable, accrued expenses and other liabilities | (16,381) | (20,564) | |
Net cash provided by operating activities | 82,980 | 63,614 | |
Investing activities: | |||
Investments in acquired real estate and related intangible assets, net of cash acquired | 0 | (55) | |
Investments in development in-process | (19,789) | (36,122) | |
Investments in tenant improvements and deferred leasing costs | (22,939) | (49,825) | |
Investments in building improvements | (14,422) | (15,254) | |
Investment in acquired controlling interest in unconsolidated affiliate | (127,339) | 0 | |
Net proceeds from disposition of real estate assets | 30,242 | 331,761 | |
Distributions of capital from unconsolidated affiliates | 0 | 72 | |
Investments in mortgages and notes receivable | 0 | (32) | |
Repayments of mortgages and notes receivable | 76 | 75 | |
Changes in other investing activities | (746) | 477 | |
Net cash provided by/(used in) investing activities | (154,917) | 231,097 | |
Financing activities: | |||
Distributions on Common Units | (51,014) | (50,903) | |
Redemptions/repurchases of Preferred Units | 0 | (3) | |
Distributions on Preferred Units | (622) | (622) | |
Distributions to noncontrolling interests in consolidated affiliates | (782) | (198) | |
Proceeds from the issuance of Common Units | 493 | 2,343 | |
Costs paid for the issuance of Common Units | (10) | (180) | |
Repurchase of units related to tax withholdings | (1,681) | (1,124) | |
Borrowings on revolving credit facility | 0 | 110,000 | |
Repayments of revolving credit facility | 0 | (244,000) | |
Repayments of mortgages and notes payable | (501) | (481) | |
Changes in debt issuance costs and other financing activities | (4,812) | (196) | |
Net cash used in financing activities | (58,929) | (185,364) | |
Net increase/(decrease) in cash and cash equivalents and restricted cash | (130,866) | 109,347 | |
Cash and cash equivalents and restricted cash at beginning of the period | 189,244 | 14,742 | |
Cash and cash equivalents and restricted cash at end of the period | 58,378 | 124,089 | |
Reconciliation of cash and cash equivalents and restricted cash: | |||
Cash and cash equivalents at end of the period | 49,279 | 12,696 | |
Restricted cash at end of the period | 9,099 | 111,393 | |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest, net of amounts capitalized | 27,646 | 25,321 | |
Supplemental disclosure of non-cash investing and financing activities: | |||
Unrealized losses on cash flow hedges | 0 | (1,133) | |
Changes in accrued capital expenditures (1) | [1] | (454) | (4,789) |
Write-off of fully depreciated real estate assets | 15,468 | 12,033 | |
Write-off of fully amortized leasing costs | 12,848 | 5,842 | |
Write-off of fully amortized debt issuance costs | 2,983 | 0 | |
Adjustment of Redeemable Common Units to fair value | 9,396 | (38,705) | |
Issuances of Common Units to acquire real estate assets | 0 | 6,163 | |
Accrued capital expenditures included in accounts payable, accrued expenses and other liabilities | $ 65,500 | $ 63,200 | |
[1] | Accrued capital expenditures included in accounts payable, accrued expenses and other liabilities at March 31, 2021 and 2020 were $65.5 million and $63.2 million, respectively. |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Significant Accounting Policies | Description of Business and Significant Accounting Policies Description of Business Highwoods Properties, Inc. (the “Company”) is a fully integrated real estate investment trust (“REIT”) that provides leasing, management, development, construction and other customer-related services for its properties and for third parties. The Company conducts its activities through Highwoods Realty Limited Partnership (the “Operating Partnership”). At March 31, 2021, we owned or had an interest in 27.4 million rentable square feet of in-service properties, 0.8 million rentable square feet of office properties under development and approximately 230 acres of development land. The Company is the sole general partner of the Operating Partnership. At March 31, 2021, the Company owned all of the Preferred Units and 103.6 million, or 97.3%, of the Common Units in the Operating Partnership. Limited partners owned the remaining 2.8 million Common Units. 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. We also consolidate those entities deemed to be variable interest entities in which we are determined to be the primary beneficiary. At March 31, 2021, we have involvement with, and are the primary beneficiary in, an entity that we concluded to be a variable interest entity (see Note 3). All intercompany transactions and accounts have been eliminated. The unaudited interim consolidated financial statements and accompanying unaudited consolidated financial information, in the opinion of management, contain all adjustments (including normal recurring accruals) necessary for a fair presentation of our financial position, results of operations and cash flows. We have condensed or omitted certain notes and other information from the interim Consolidated Financial Statements presented in this Quarterly Report as permitted by SEC rules and regulations. These Consolidated Financial Statements should be read in conjunction with our 2020 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. We have stop-loss coverage to limit our exposure to significant claims on a per claim and annual aggregate basis. We determine our liabilities for claims, including incurred but not reported losses, based on all relevant information, including actuarial estimates of claim liabilities. At March 31, 2021, a reserve of $0.4 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 the guidance on contract modifications and hedge accounting 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”). Entities can elect not to apply certain modification accounting requirements to contracts affected by reference rate reform, if certain criteria are met. An entity that makes this election would not have to remeasure the contracts at the modification date or reassess a previous accounting determination. Entities can also elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform, if certain criteria are met. The guidance in this ASU is optional and may be elected now through December 31, 2022 as reference rate reform activities occur. We will continue to evaluate the impact of this ASU; however, we currently expect to avail ourselves of such optional expedients and exceptions should our modified contracts meet the required criteria. Due to the business disruptions and challenges severely affecting the global economy caused by the COVID-19 pandemic, lessors may provide rent deferrals and other lease concessions to lessees. In April 2020, the FASB staff issued a question and answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of the COVID-19 pandemic. Under existing lease guidance, we would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant (treated within the lease modification accounting framework) or if a lease concession was under the enforceable rights and obligations within the existing lease agreement (precluded from applying the lease modification accounting framework). The Lease Modification Q&A allows us, if certain criteria have been met, to bypass the lease by lease analysis, and instead elect to either apply the lease modification accounting framework or not, with such election applied consistently to leases with similar characteristics and similar circumstances. We have elected the practical expedient and will not apply lease modification accounting on a lease by lease basis where applicable. As a result, $2.5 million of deferred rent is included in accounts receivable on our Consolidated Balance Sheets at March 31, 2021. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | 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 owned by us 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 |
Consolidated Variable Interest
Consolidated Variable Interest Entity | 3 Months Ended |
Mar. 31, 2021 | |
Variable Interest Entities [Abstract] | |
Consolidated Variable Interest Entity | Consolidated Variable Interest EntityIn 2019, we and The Bromley Companies formed a joint venture (the “Midtown One joint venture”) to construct Midtown West, a 150,000 square foot, multi-customer office building located in the mixed-use Midtown Tampa project in Tampa’s Westshore submarket. Midtown West has an anticipated total investment of $71.3 million. Construction of Midtown West began in the third quarter of 2019 with a scheduled completion date in the second quarter of 2021. At closing, we agreed to contribute cash of $20.0 million, which has been fully funded, in exchange for an 80.0% interest in the Midtown One joint venture and The Bromley Companies contributed land valued at $5.0 million in exchange for the remaining 20.0% interest. We also committed to provide a $46.3 million interest-only secured construction loan to the Midtown One joint venture that is scheduled to mature on the second anniversary of completion. The loan bears interest at LIBOR plus 250 basis points. As of March 31, 2021, $21.1 million under the loan has been funded. We determined that we have a variable interest in the Midtown One 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 an equity holder and The Bromley Companies as an equity holder. The Midtown One 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 investment provided by us and The Bromley Companies is not sufficient to finance its planned investments and operations. We, as 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 and loan commitment. As such, the Midtown One joint venture is consolidated and all intercompany transactions and accounts are eliminated. The following table sets forth the assets and liabilities of the Midtown One joint venture included on our Consolidated Balance Sheets: March 31, Development in-process $ 49,039 Cash and cash equivalents $ 85 Deferred leasing costs $ 196 Prepaid expenses and other assets $ 127 Accounts payable, accrued expenses and other liabilities $ 2,127 The assets of the Midtown One joint venture can be used only to settle obligations of the joint venture and its creditors have no recourse to our wholly owned assets. |
Real Estate Assets
Real Estate Assets | 3 Months Ended |
Mar. 31, 2021 | |
Real Estate [Abstract] | |
Real Estate Assets | Real Estate Assets Acquisitions During the first quarter of 2021, we acquired our joint venture partner’s 75.0% interest in our Highwoods DLF Forum, LLC joint venture (the “Forum”), which owned five buildings in Raleigh encompassing 636,000 rentable square feet, for a purchase price of $131.3 million. We previously accounted for our 25.0% interest in this joint venture using the equity method of accounting. The assets and liabilities of the joint venture are now wholly owned and we have determined the acquisition constitutes an asset purchase. As such, because the Forum is not a variable interest entity, we allocated our previously held equity interest at historical cost along with the consideration paid and acquisition costs to the assets acquired and liabilities assumed. The assets acquired and liabilities assumed were recorded at relative fair value as determined by management, with the assistance of third party specialists, based on information available at the acquisition date and on current assumptions as to future operations. Dispositions |
Intangible Assets and Below Mar
Intangible Assets and Below Market Lease Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
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) $ 367,727 $ 361,027 Less accumulated amortization (147,937) (151,698) $ 219,790 $ 209,329 Liabilities (in accounts payable, accrued expenses and other liabilities): Acquisition-related below market lease liabilities $ 62,490 $ 63,748 Less accumulated amortization (36,647) (37,838) $ 25,843 $ 25,910 The following table sets forth amortization of intangible assets and below market lease liabilities: Three Months Ended 2021 2020 Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization) $ 8,571 $ 8,798 Amortization of lease incentives (in rental and other revenues) $ 448 $ 490 Amortization of acquisition-related intangible assets (in rental and other revenues) $ 277 $ 288 Amortization of acquisition-related intangible assets (in rental property and other expenses) $ — $ 139 Amortization of acquisition-related below market lease liabilities (in rental and other revenues) $ (1,429) $ (1,566) 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, 2021 $ 27,307 $ 1,169 $ 725 $ (3,757) 2022 32,692 1,396 910 (4,214) 2023 29,031 1,322 754 (3,838) 2024 25,668 1,173 664 (3,171) 2025 20,705 1,095 546 (1,813) Thereafter 67,577 4,603 2,453 (9,050) $ 202,980 $ 10,758 $ 6,052 $ (25,843) Weighted average remaining amortization periods as of March 31, 2021 (in years) 8.2 9.4 9.0 8.4 The following table sets forth the intangible assets acquired and below market lease liabilities assumed as a result of 2021 acquisition activity: Acquisition-Related Intangible Assets (amortized in Rental and Other Revenues) Acquisition-Related Intangible Assets (amortized in Depreciation and Amortization) Acquisition-Related Below Market Lease Liabilities (amortized in Rental and Other Revenues) Amount recorded at acquisition $ 2,036 $ 13,168 $ (1,361) Weighted average remaining amortization periods as of March 31, 2021 (in years) 7.4 5.9 5.9 |
Mortgages and Notes Payable
Mortgages and Notes Payable | 3 Months Ended |
Mar. 31, 2021 | |
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 $ 92,850 $ 93,350 Unsecured indebtedness 2,391,063 2,390,652 Less-unamortized debt issuance costs (13,441) (13,981) Total mortgages and notes payable, net $ 2,470,472 $ 2,470,021 At March 31, 2021, our secured mortgage loan was collateralized by real estate assets with an undepreciated book value of $147.9 million. During the first quarter of 2021, we entered into a new $750.0 million unsecured revolving credit facility, which replaced our previously existing $600.0 million revolving credit facility and includes an accordion feature that allows for an additional $550.0 million of borrowing capacity subject to additional lender commitments. Our new revolving credit facility is scheduled to mature in March 2025. Assuming no defaults have occurred, we have an option to extend the maturity for two additional six-month periods. The current interest rate on the new facility at our existing credit ratings is LIBOR plus 90 basis points and 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. The financial and other covenants under the new facility are substantially similar to our previous credit facility. We incurred $4.8 million of debt issuance costs, which will be amortized along with certain existing unamortized debt issuance costs over the remaining term of our new revolving credit facility. We recorded $0.1 million of loss on debt extinguishment. There were no amounts outstanding under our new revolving credit facility at March 31, 2021. There was $160.0 million outstanding under our new revolving credit facility at April 20, 2021. At both March 31, 2021 and April 20, 2021, we had $0.1 million of outstanding letters of credit, which reduces the availability on our revolving credit facility. As a result, the unused capacity of our revolving credit facility at March 31, 2021 and April 20, 2021 was $749.9 million and $589.9 million, respectively. We are currently in compliance with financial covenants with respect to our consolidated debt. We have considered our short-term liquidity needs and the adequacy of our estimated cash flows from operating activities and other available financing sources to meet these needs. We intend to meet these short-term liquidity requirements through a combination of the following: • available cash and cash equivalents; • cash flows from operating activities; • issuance of debt securities by the Operating Partnership; • issuance of secured debt; • bank term loans; • borrowings under our revolving credit facility; • issuance of equity securities by the Company or the Operating Partnership; and • the disposition of non-core assets. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The counterparties under our swaps are major financial institutions. The swap agreements contain a provision whereby if we default on certain of our indebtedness and which default results in repayment of such indebtedness being, or becoming capable of being, accelerated by the lender, then we could also be declared in default on our swaps. Our interest rate swaps have been designated as and are being accounted for as cash flow hedges with changes in fair value recorded in other comprehensive income/(loss) each reporting period. We have no collateral requirements related to our interest rate swaps. Amounts reported in accumulated other comprehensive income/(loss) related to derivatives will be reclassified to interest expense as interest payments are made on our debt. During the period from April 1, 2021 through March 31, 2022, we estimate that $0.4 million will be reclassified as a net increase to interest expense. The following table sets forth the fair value of our derivatives: March 31, December 31, Derivatives: Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities: Interest rate swaps $ 650 $ 846 The following table sets forth the effect of our cash flow hedges on accumulated other comprehensive loss and interest expense: Three Months Ended 2021 2020 Derivatives Designated as Cash Flow Hedges: Amount of unrealized losses recognized in accumulated other comprehensive loss on derivatives: Interest rate swaps $ — $ (1,133) Amount of (gains)/losses reclassified out of accumulated other comprehensive loss into interest expense: Interest rate swaps $ 122 $ (72) |
Noncontrolling Interests
Noncontrolling Interests | 3 Months Ended |
Mar. 31, 2021 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests Noncontrolling Interests in Consolidated Affiliates At March 31, 2021, our noncontrolling interests in consolidated affiliates relate to our joint venture partners’ 50.0% interest in office properties in Richmond and 20.0% interest in an office development property in Tampa. Our joint venture partners are unrelated third parties. Noncontrolling Interests in the Operating Partnership The following table sets forth the Company’s noncontrolling interests in the Operating Partnership: Three Months Ended 2021 2020 Beginning noncontrolling interests in the Operating Partnership $ 112,499 $ 133,216 Adjustment of noncontrolling interests in the Operating Partnership to fair value 9,266 (42,301) Issuances of Common Units — 6,163 Net income attributable to noncontrolling interests in the Operating Partnership 1,493 4,960 Distributions to noncontrolling interests in the Operating Partnership (1,363) (1,364) Total noncontrolling interests in the Operating Partnership $ 121,895 $ 100,674 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 2021 2020 Net income available for common stockholders $ 54,459 $ 185,473 Issuances of Common Units — (6,163) Change from net income available for common stockholders and transfers from noncontrolling interests $ 54,459 $ 179,310 |
Disclosure About Fair Value of
Disclosure About Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2021 | |
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 interest rate swaps. The fair value of mortgages and notes receivable and mortgages and notes payable is estimated by the income approach utilizing contractual cash flows and market-based interest rates to approximate the price that would be paid in an orderly transaction between market participants. The fair value of interest rate swaps is determined using the market standard methodology of netting the discounted future fixed cash receipts and the discounted expected variable cash payments. The variable cash payments of interest rate swaps are based on the expectation of future interest rates (forward curves) derived from observed market interest rate curves. In addition, credit valuation adjustments are considered in the fair values to account for potential nonperformance risk, but were concluded to not be significant inputs to the calculation for the periods presented. Level 3. Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Our Level 3 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 at March 31, 2021: Assets: Mortgages and notes receivable, at fair value (1) $ 1,292 $ — $ 1,292 Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 2,712 2,712 — Total Assets $ 4,004 $ 2,712 $ 1,292 Noncontrolling Interests in the Operating Partnership $ 121,895 $ 121,895 $ — Liabilities: Mortgages and notes payable, net, at fair value (1) $ 2,554,474 $ — $ 2,554,474 Interest rate swaps (in accounts payable, accrued expenses and other liabilities) 650 — 650 Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 2,712 2,712 — Total Liabilities $ 2,557,836 $ 2,712 $ 2,555,124 Fair Value at December 31, 2020: Assets: Mortgages and notes receivable, at fair value (1) $ 1,341 $ — $ 1,341 Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 2,573 2,573 — Total Assets $ 3,914 $ 2,573 $ 1,341 Noncontrolling Interests in the Operating Partnership $ 112,499 $ 112,499 $ — Liabilities: Mortgages and notes payable, net, at fair value (1) $ 2,639,163 $ — $ 2,639,163 Interest rate swaps (in accounts payable, accrued expenses and other liabilities) 846 — 846 Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 2,573 2,573 — Total Liabilities $ 2,642,582 $ 2,573 $ 2,640,009 __________ |
Share-Based Payments
Share-Based Payments | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Payments | Share-Based PaymentsDuring the three months ended March 31, 2021, the Company granted 102,532 shares of time-based restricted stock and 80,568 shares of total return-based restricted stock with weighted average grant date fair values per share of $39.96 and $36.37, respectively. We recorded share-based compensation expense of $3.0 million and $2.5 million during the three months ended March 31, 2021 and 2020, respectively. At March 31, 2021, there was $9.2 million of total unrecognized share-based compensation costs, which will be recognized over a weighted average remaining contractual term of 2.3 years. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table sets forth the components of accumulated other comprehensive loss: Three Months Ended 2021 2020 Cash flow hedges: Beginning balance $ (1,462) $ (471) Unrealized losses on cash flow hedges — (1,133) Amortization of cash flow hedges (1) 122 (72) Total accumulated other comprehensive loss $ (1,340) $ (1,676) __________ (1) Amounts reclassified out of accumulated other comprehensive loss into interest expense. |
Real Estate and Other Assets He
Real Estate and Other Assets Held For Sale | 3 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Real Estate and Other Assets Held For Sale | Real Estate and Other Assets Held For Sale The following table sets forth the assets held for sale at March 31, 2021 and December 31, 2020, which are considered non-core: March 31, December 31, Assets: Land $ — $ 2,612 Buildings and tenant improvements — 12,238 Less-accumulated depreciation — (3,577) Net real estate assets — 11,273 Deferred leasing costs, net — 87 Real estate and other assets, net, held for sale $ — $ 11,360 |
Earnings Per Share and Per Unit
Earnings Per Share and Per Unit | 3 Months Ended |
Mar. 31, 2021 | |
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 2021 2020 Earnings per Common Share - basic: Numerator: Net income $ 56,855 $ 191,340 Net (income) attributable to noncontrolling interests in the Operating Partnership (1,493) (4,960) Net (income) attributable to noncontrolling interests in consolidated affiliates (281) (285) Dividends on Preferred Stock (622) (622) Net income available for common stockholders $ 54,459 $ 185,473 Denominator: Denominator for basic earnings per Common Share – weighted average shares (1) 103,963 103,813 Net income available for common stockholders $ 0.52 $ 1.79 Earnings per Common Share - diluted: Numerator: Net income $ 56,855 $ 191,340 Net (income) attributable to noncontrolling interests in consolidated affiliates (281) (285) Dividends on Preferred Stock (622) (622) Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership $ 55,952 $ 190,433 Denominator: Denominator for basic earnings per Common Share – weighted average shares (1) 103,963 103,813 Add: Stock options using the treasury method 8 25 Noncontrolling interests Common Units 2,839 2,795 Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions 106,810 106,633 Net income available for common stockholders $ 0.52 $ 1.79 __________ (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 2021 2020 Earnings per Common Unit - basic: Numerator: Net income $ 56,855 $ 191,340 Net (income) attributable to noncontrolling interests in consolidated affiliates (281) (285) Distributions on Preferred Units (622) (622) Net income available for common unitholders $ 55,952 $ 190,433 Denominator: Denominator for basic earnings per Common Unit – weighted average units (1) 106,393 106,199 Net income available for common unitholders $ 0.53 $ 1.79 Earnings per Common Unit - diluted: Numerator: Net income $ 56,855 $ 191,340 Net (income) attributable to noncontrolling interests in consolidated affiliates (281) (285) Distributions on Preferred Units (622) (622) Net income available for common unitholders $ 55,952 $ 190,433 Denominator: Denominator for basic earnings per Common Unit – weighted average units (1) 106,393 106,199 Add: Stock options using the treasury method 8 25 Denominator for diluted earnings per Common Unit – adjusted weighted average units and assumed conversions 106,401 106,224 Net income available for common unitholders $ 0.53 $ 1.79 __________ (1) Includes all unvested restricted stock where distributions on such restricted stock are non-forfeitable. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The following tables summarize the rental and other revenues and net operating income, the primary industry property-level performance metric used by our chief operating decision maker and which is defined as rental and other revenues less rental property and other expenses, for each of our reportable segments. Our segment information for the three months ended March 31, 2020 has been retrospectively revised from previously reported amounts to reflect a change in our reportable segments as a result of recent dispositions. Three Months Ended 2021 2020 Rental and Other Revenues: Office: Atlanta $ 35,975 $ 37,959 Charlotte 9,134 8,933 Nashville 35,159 34,497 Orlando 12,559 13,022 Pittsburgh 14,618 14,948 Raleigh 37,042 32,553 Richmond 11,462 12,260 Tampa 24,424 25,244 Total Office Segment 180,373 179,416 Other 3,432 13,384 Total Rental and Other Revenues $ 183,805 $ 192,800 Net Operating Income: Office: Atlanta $ 24,000 $ 25,183 Charlotte 7,252 7,202 Nashville 24,993 24,753 Orlando 7,712 8,005 Pittsburgh 8,889 8,670 Raleigh 28,136 23,636 Richmond 8,053 8,691 Tampa 16,640 16,533 Total Office Segment 125,675 122,673 Other 1,941 7,925 Total Net Operating Income 127,616 130,598 Reconciliation to net income: Depreciation and amortization (60,927) (61,150) General and administrative expenses (9,952) (10,930) Interest expense (19,768) (21,277) Other income 312 69 Gains on disposition of property 18,937 153,067 Equity in earnings of unconsolidated affiliates 637 963 Net income $ 56,855 $ 191,340 |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Loss Contingency [Abstract] | |
Contingencies | ContingenciesSince early March 2020, efforts to slow the spread of the COVID-19 virus have had a significant impact on the U.S. economy. We continue to follow the policies described in Notes 1 and 2 to our Consolidated Financial Statements contained in our 2020 Annual Report on Form 10-K, including those related to impairments of real estate assets and investments in unconsolidated affiliates, leases and estimates of credit losses on operating lease receivables. While the results of our current analyses did not result in any material adjustments to amounts as of and during the three months ended March 31, 2021, circumstances related to the COVID-19 pandemic may result in recording impairments, lease modifications and credit losses in future periods. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On April 15, 2021, we prepaid without penalty the remaining $150.0 million principal amount of 3.20% unsecured notes that was scheduled to mature in June 2021. We expect to record $0.1 million of loss on debt extinguishment related to this prepayment. On April 15, 2021, the Company declared a cash dividend of $0.48 per share of Common Stock, which is payable on June 8, 2021 to stockholders of record as of May 17, 2021. On April 16, 2021, we agreed to acquire a portfolio of office assets from Preferred Apartment Communities, Inc. (NYSE:APTS) (“PAC”). The core portfolio to be acquired consists of the following four Class A office assets in Charlotte and Raleigh, which encompass 1,630,000 square feet in total, and one mixed-use redevelopment site in Atlanta: 150 Fayetteville, Raleigh (CBD); CAPTRUST Tower, Raleigh (North Hills); Capitol Towers, Charlotte (SouthPark); Morrocroft Centre, Charlotte (SouthPark); and Galleria 75, Atlanta (Cumberland/Galleria). We have also agreed to acquire two non-core assets: a mezzanine loan related to a recently constructed office building in Atlanta; and Armour Yards, a multi-building creative office project in Atlanta. Our total investment, including the estimated value of the non-core assets, is expected to be $769 million, which includes $28 million of near-term building improvements and $5 million of transaction costs. The transaction is expected to include, among other things, the assumption of four secured loans collateralized by the core office buildings estimated to be recorded at fair value of $403 million in the aggregate, with a weighted average effective interest rate of 3.7% and a weighted average maturity of 10.8 years. The value of the non-core assets represents less than 12% of the anticipated total investment. The acquisition, which is subject to customary closing conditions, is scheduled to close during the third quarter of 2021. We have posted $50 million of earnest money deposits that are non-refundable except in limited circumstances. As part of the transaction, PAC will separately market Armour Yards for sale to a third party. If PAC chooses not to sell Armour Yards to a third party, we will close on the acquisition of the creative office project no later than the first quarter of 2022. See also Note 15 for information regarding the potential impact of the COVID-19 pandemic in future periods. The severity and duration of the COVID-19 pandemic and the resulting economic recession and the future demand for office space over the long-term are difficult to predict and could materially and adversely impact or disrupt our financial condition, results of operations, cash flows and performance. |
Description of Business and S_2
Description of Business and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
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. We also consolidate those entities deemed to be variable interest entities in which we are determined to be the primary beneficiary. At March 31, 2021, we have involvement with, and are the primary beneficiary in, an entity that we concluded to be a variable interest entity (see Note 3). All intercompany transactions and accounts have been eliminated. |
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 | InsuranceWe are primarily self-insured for health care claims for participating employees. We have stop-loss coverage to limit our exposure to significant claims on a per claim and annual aggregate basis. We determine our liabilities for claims, including incurred but not reported losses, based on all relevant information, including actuarial estimates of claim liabilities. |
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 the guidance on contract modifications and hedge accounting 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”). Entities can elect not to apply certain modification accounting requirements to contracts affected by reference rate reform, if certain criteria are met. An entity that makes this election would not have to remeasure the contracts at the modification date or reassess a previous accounting determination. Entities can also elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform, if certain criteria are met. The guidance in this ASU is optional and may be elected now through December 31, 2022 as reference rate reform activities occur. We will continue to evaluate the impact of this ASU; however, we currently expect to avail ourselves of such optional expedients and exceptions should our modified contracts meet the required criteria. |
Consolidated Variable Interes_2
Consolidated Variable Interest Entity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Variable Interest Entities [Abstract] | |
Schedule of Variable Interest Entities | The following table sets forth the assets and liabilities of the Midtown One joint venture included on our Consolidated Balance Sheets: March 31, Development in-process $ 49,039 Cash and cash equivalents $ 85 Deferred leasing costs $ 196 Prepaid expenses and other assets $ 127 Accounts payable, accrued expenses and other liabilities $ 2,127 |
Intangible Assets and Below M_2
Intangible Assets and Below Market Lease Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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) $ 367,727 $ 361,027 Less accumulated amortization (147,937) (151,698) $ 219,790 $ 209,329 Liabilities (in accounts payable, accrued expenses and other liabilities): Acquisition-related below market lease liabilities $ 62,490 $ 63,748 Less accumulated amortization (36,647) (37,838) $ 25,843 $ 25,910 |
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 2021 2020 Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization) $ 8,571 $ 8,798 Amortization of lease incentives (in rental and other revenues) $ 448 $ 490 Amortization of acquisition-related intangible assets (in rental and other revenues) $ 277 $ 288 Amortization of acquisition-related intangible assets (in rental property and other expenses) $ — $ 139 Amortization of acquisition-related below market lease liabilities (in rental and other revenues) $ (1,429) $ (1,566) |
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, 2021 $ 27,307 $ 1,169 $ 725 $ (3,757) 2022 32,692 1,396 910 (4,214) 2023 29,031 1,322 754 (3,838) 2024 25,668 1,173 664 (3,171) 2025 20,705 1,095 546 (1,813) Thereafter 67,577 4,603 2,453 (9,050) $ 202,980 $ 10,758 $ 6,052 $ (25,843) Weighted average remaining amortization periods as of March 31, 2021 (in years) 8.2 9.4 9.0 8.4 |
Total Intangible Assets and Below Market Lease Liabilities from Acquisition Activity | The following table sets forth the intangible assets acquired and below market lease liabilities assumed as a result of 2021 acquisition activity: Acquisition-Related Intangible Assets (amortized in Rental and Other Revenues) Acquisition-Related Intangible Assets (amortized in Depreciation and Amortization) Acquisition-Related Below Market Lease Liabilities (amortized in Rental and Other Revenues) Amount recorded at acquisition $ 2,036 $ 13,168 $ (1,361) Weighted average remaining amortization periods as of March 31, 2021 (in years) 7.4 5.9 5.9 |
Mortgages and Notes Payable (Ta
Mortgages and Notes Payable (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 $ 92,850 $ 93,350 Unsecured indebtedness 2,391,063 2,390,652 Less-unamortized debt issuance costs (13,441) (13,981) Total mortgages and notes payable, net $ 2,470,472 $ 2,470,021 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments, Fair Value | The following table sets forth the fair value of our derivatives: March 31, December 31, Derivatives: Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities: Interest rate swaps $ 650 $ 846 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following table sets forth the effect of our cash flow hedges on accumulated other comprehensive loss and interest expense: Three Months Ended 2021 2020 Derivatives Designated as Cash Flow Hedges: Amount of unrealized losses recognized in accumulated other comprehensive loss on derivatives: Interest rate swaps $ — $ (1,133) Amount of (gains)/losses reclassified out of accumulated other comprehensive loss into interest expense: Interest rate swaps $ 122 $ (72) |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) - Highwoods Properties, Inc. [Member] | 3 Months Ended |
Mar. 31, 2021 | |
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 2021 2020 Beginning noncontrolling interests in the Operating Partnership $ 112,499 $ 133,216 Adjustment of noncontrolling interests in the Operating Partnership to fair value 9,266 (42,301) Issuances of Common Units — 6,163 Net income attributable to noncontrolling interests in the Operating Partnership 1,493 4,960 Distributions to noncontrolling interests in the Operating Partnership (1,363) (1,364) Total noncontrolling interests in the Operating Partnership $ 121,895 $ 100,674 |
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 2021 2020 Net income available for common stockholders $ 54,459 $ 185,473 Issuances of Common Units — (6,163) Change from net income available for common stockholders and transfers from noncontrolling interests $ 54,459 $ 179,310 |
Disclosure About Fair Value o_2
Disclosure About Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 at March 31, 2021: Assets: Mortgages and notes receivable, at fair value (1) $ 1,292 $ — $ 1,292 Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 2,712 2,712 — Total Assets $ 4,004 $ 2,712 $ 1,292 Noncontrolling Interests in the Operating Partnership $ 121,895 $ 121,895 $ — Liabilities: Mortgages and notes payable, net, at fair value (1) $ 2,554,474 $ — $ 2,554,474 Interest rate swaps (in accounts payable, accrued expenses and other liabilities) 650 — 650 Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 2,712 2,712 — Total Liabilities $ 2,557,836 $ 2,712 $ 2,555,124 Fair Value at December 31, 2020: Assets: Mortgages and notes receivable, at fair value (1) $ 1,341 $ — $ 1,341 Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 2,573 2,573 — Total Assets $ 3,914 $ 2,573 $ 1,341 Noncontrolling Interests in the Operating Partnership $ 112,499 $ 112,499 $ — Liabilities: Mortgages and notes payable, net, at fair value (1) $ 2,639,163 $ — $ 2,639,163 Interest rate swaps (in accounts payable, accrued expenses and other liabilities) 846 — 846 Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 2,573 2,573 — Total Liabilities $ 2,642,582 $ 2,573 $ 2,640,009 __________ |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The following table sets forth the components of accumulated other comprehensive loss: Three Months Ended 2021 2020 Cash flow hedges: Beginning balance $ (1,462) $ (471) Unrealized losses on cash flow hedges — (1,133) Amortization of cash flow hedges (1) 122 (72) Total accumulated other comprehensive loss $ (1,340) $ (1,676) __________ (1) Amounts reclassified out of accumulated other comprehensive loss into interest expense. |
Real Estate and Other Assets _2
Real Estate and Other Assets Held For Sale (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Real Estate and Other Assets of the Properties Classified As Held For Sale | The following table sets forth the assets held for sale at March 31, 2021 and December 31, 2020, which are considered non-core: March 31, December 31, Assets: Land $ — $ 2,612 Buildings and tenant improvements — 12,238 Less-accumulated depreciation — (3,577) Net real estate assets — 11,273 Deferred leasing costs, net — 87 Real estate and other assets, net, held for sale $ — $ 11,360 |
Earnings Per Share and Per Un_2
Earnings Per Share and Per Unit (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 2021 2020 Earnings per Common Share - basic: Numerator: Net income $ 56,855 $ 191,340 Net (income) attributable to noncontrolling interests in the Operating Partnership (1,493) (4,960) Net (income) attributable to noncontrolling interests in consolidated affiliates (281) (285) Dividends on Preferred Stock (622) (622) Net income available for common stockholders $ 54,459 $ 185,473 Denominator: Denominator for basic earnings per Common Share – weighted average shares (1) 103,963 103,813 Net income available for common stockholders $ 0.52 $ 1.79 Earnings per Common Share - diluted: Numerator: Net income $ 56,855 $ 191,340 Net (income) attributable to noncontrolling interests in consolidated affiliates (281) (285) Dividends on Preferred Stock (622) (622) Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership $ 55,952 $ 190,433 Denominator: Denominator for basic earnings per Common Share – weighted average shares (1) 103,963 103,813 Add: Stock options using the treasury method 8 25 Noncontrolling interests Common Units 2,839 2,795 Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions 106,810 106,633 Net income available for common stockholders $ 0.52 $ 1.79 __________ |
Highwoods Realty Limited Partnership [Member] | |
Earnings Per Share and Per Unit Basic and Diluted [Line Items] | |
Earnings Per Unit | The following table sets forth the computation of basic and diluted earnings per unit of the Operating Partnership: Three Months Ended 2021 2020 Earnings per Common Unit - basic: Numerator: Net income $ 56,855 $ 191,340 Net (income) attributable to noncontrolling interests in consolidated affiliates (281) (285) Distributions on Preferred Units (622) (622) Net income available for common unitholders $ 55,952 $ 190,433 Denominator: Denominator for basic earnings per Common Unit – weighted average units (1) 106,393 106,199 Net income available for common unitholders $ 0.53 $ 1.79 Earnings per Common Unit - diluted: Numerator: Net income $ 56,855 $ 191,340 Net (income) attributable to noncontrolling interests in consolidated affiliates (281) (285) Distributions on Preferred Units (622) (622) Net income available for common unitholders $ 55,952 $ 190,433 Denominator: Denominator for basic earnings per Common Unit – weighted average units (1) 106,393 106,199 Add: Stock options using the treasury method 8 25 Denominator for diluted earnings per Common Unit – adjusted weighted average units and assumed conversions 106,401 106,224 Net income available for common unitholders $ 0.53 $ 1.79 __________ (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, 2021 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | The following tables summarize the rental and other revenues and net operating income, the primary industry property-level performance metric used by our chief operating decision maker and which is defined as rental and other revenues less rental property and other expenses, for each of our reportable segments. Our segment information for the three months ended March 31, 2020 has been retrospectively revised from previously reported amounts to reflect a change in our reportable segments as a result of recent dispositions. Three Months Ended 2021 2020 Rental and Other Revenues: Office: Atlanta $ 35,975 $ 37,959 Charlotte 9,134 8,933 Nashville 35,159 34,497 Orlando 12,559 13,022 Pittsburgh 14,618 14,948 Raleigh 37,042 32,553 Richmond 11,462 12,260 Tampa 24,424 25,244 Total Office Segment 180,373 179,416 Other 3,432 13,384 Total Rental and Other Revenues $ 183,805 $ 192,800 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Net Operating Income: Office: Atlanta $ 24,000 $ 25,183 Charlotte 7,252 7,202 Nashville 24,993 24,753 Orlando 7,712 8,005 Pittsburgh 8,889 8,670 Raleigh 28,136 23,636 Richmond 8,053 8,691 Tampa 16,640 16,533 Total Office Segment 125,675 122,673 Other 1,941 7,925 Total Net Operating Income 127,616 130,598 Reconciliation to net income: Depreciation and amortization (60,927) (61,150) General and administrative expenses (9,952) (10,930) Interest expense (19,768) (21,277) Other income 312 69 Gains on disposition of property 18,937 153,067 Equity in earnings of unconsolidated affiliates 637 963 Net income $ 56,855 $ 191,340 |
Description of Business and S_3
Description of Business and Significant Accounting Policies (Details) shares in Millions, ft² in Millions, $ in Millions | Mar. 31, 2021USD ($)ft²ashares |
Description of Business [Abstract] | |
Rentable square feet of commercial real estate properties (in sq feet) | ft² | 27.4 |
Rentable square feet of commercial real estate office properties under development (in sq feet) | ft² | 0.8 |
Undeveloped land suitable for future development (in acres) | a | 230 |
Self insurance liability | $ | $ 0.4 |
Deferred rents included in accounts receivable | $ | $ 2.5 |
Highwoods Properties, Inc. [Member] | |
Description of Business [Abstract] | |
Common Units of partnership owned by the Company (in shares) | shares | 103.6 |
Percentage of ownership of Common Units (in hundredths) | 97.30% |
Highwoods Realty Limited Partnership [Member] | |
Description of Business [Abstract] | |
Common Units of partnership not owned by the Company (in shares) | shares | 2.8 |
Leases ASC 842 (Details)
Leases ASC 842 (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Lessor Disclosure [Abstract] | ||
Rental and other revenues related to operating lease payments | $ 179.9 | $ 189.6 |
Variable lease income | $ 14.5 | $ 16.5 |
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 |
Consolidated Variable Interes_3
Consolidated Variable Interest Entity (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)ft² | Mar. 31, 2021USD ($)ft² | Dec. 31, 2020USD ($) | Mar. 31, 2020USD ($) | |
Consolidated Variable Interest Entity [Abstract] | ||||
Rentable square feet of office property under development (in sq feet) | ft² | 800,000 | |||
Assets and liabilities of consolidated variable interest entity [Abstract] | ||||
Development in-process | $ 288,406 | $ 259,681 | ||
Cash and cash equivalents | 49,279 | 109,322 | $ 12,696 | |
Deferred leasing costs | 219,790 | 209,329 | ||
Prepaid expense and other assets | 72,845 | 62,885 | ||
Accounts payable, accrued expenses and other liabilities | 258,026 | $ 268,727 | ||
Consolidated Variable Interest Entity [Member] | ||||
Consolidated Variable Interest Entity [Abstract] | ||||
Rentable square feet of office property under development (in sq feet) | ft² | 150,000 | |||
Total anticipated development costs | $ 71,300 | |||
Contribution of cash to acquire interest in consolidated joint venture | $ 20,000 | |||
Interest in consolidated joint venture (in hundredths) | 80.00% | |||
Partner's contribution of property to acquire interest in consolidated joint venture | $ 5,000 | |||
Advance to consolidated affiliate | $ 46,300 | |||
Amount of loan funded to affiliate | 21,100 | |||
Assets and liabilities of consolidated variable interest entity [Abstract] | ||||
Development in-process | 49,039 | |||
Cash and cash equivalents | 85 | |||
Deferred leasing costs | 196 | |||
Prepaid expense and other assets | 127 | |||
Accounts payable, accrued expenses and other liabilities | $ 2,127 | |||
Consolidated Variable Interest Entity [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Consolidated Variable Interest Entity [Abstract] | ||||
Variable interest rate basis | LIBOR | |||
Interest rate, basis spread (in hundredths) | 2.50% | |||
Variable Interest Entity [Member] | ||||
Consolidated Variable Interest Entity [Abstract] | ||||
Partner's interest in consolidated joint venture (in hundredths) | 20.00% | |||
Variable Interest Entity [Member] | Consolidated Variable Interest Entity [Member] | ||||
Consolidated Variable Interest Entity [Abstract] | ||||
Partner's interest in consolidated joint venture (in hundredths) | 20.00% |
Real Estate Assets (Details)
Real Estate Assets (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021USD ($)ft²propertyUnit | Mar. 31, 2020USD ($) | |
Acquisitions [Abstract] | ||
Rentable square feet of commercial real estate properties (in sq feet) | ft² | 27,400,000 | |
Dispositions [Abstract] | ||
Gains on disposition of property | $ 18,937 | $ 153,067 |
Forum Buildings Acquisition | ||
Acquisitions [Abstract] | ||
Percentage of partner's interest in asset acquired (in hundredths) | 75.00% | |
Number of buildings sold | propertyUnit | 5 | |
Rentable square feet of commercial real estate properties (in sq feet) | ft² | 636,000 | |
Acquisition purchase price | $ 131,300 | |
Percentage of equity interest in joint venture (in hundredths) | 25.00% | |
2021 Dispositions | ||
Dispositions [Abstract] | ||
Purchase price of real estate | $ 30,700 | |
Gains on disposition of property | $ 18,900 |
Intangible Assets and Below M_3
Intangible Assets and Below Market Lease Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Assets: | |||
Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets) | $ 367,727 | $ 361,027 | |
Deferred leasing costs, accumulated amortization | (147,937) | (151,698) | |
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | 219,790 | 209,329 | |
Liabilities (in accounts payable, accrued expenses and other liabilities): | |||
Acquisition-related below market lease liabilities, gross | 62,490 | 63,748 | |
Acquisition-related below market lease liabilities, accumulated amortization | (36,647) | (37,838) | |
Acquisition-related below market lease liabilities, net | 25,843 | $ 25,910 | |
Amortization of intangible assets and below market lease liabilities [Abstract] | |||
Acquired intangible assets (amortized in rental and other revenue) | 2,036 | ||
Acquired intangible assets (amortized in depreciation and amortization) | 13,168 | ||
Assumed below market lease liabilities (amortized in rental and other revenue) | (1,361) | ||
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 | 202,980 | ||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||
Amortization of intangible assets | 8,571 | $ 8,798 | |
Lease Incentives (in Rental and Other Revenues) [Member] | |||
Assets: | |||
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | 10,758 | ||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||
Amortization of intangible assets | 448 | 490 | |
Acquisition-Related Intangible Assets (in Rental and Other Revenues) [Member] | |||
Assets: | |||
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | 6,052 | ||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||
Amortization of intangible assets | 277 | 288 | |
Acquisition-Related Intangible Assets (in Rental Property and Other Expenses) [Member] | |||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||
Amortization of intangible assets | 0 | 139 | |
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 | 25,843 | ||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||
Amortization of acquisition-related below market lease liabilities | $ (1,429) | $ (1,566) |
Intangible Assets and Below M_4
Intangible Assets and Below Market Lease Liabilities - Scheduled Future Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Scheduled future amortization of intangible assets [Abstract] | ||
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | $ 219,790 | $ 209,329 |
Scheduled future amortization of below market lease liabilities [Abstract] | ||
Total scheduled future amortization of acquisition-related below market lease liabilities | (25,843) | $ (25,910) |
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, 2021 | 27,307 | |
2022 | 32,692 | |
2023 | 29,031 | |
2024 | 25,668 | |
2025 | 20,705 | |
Thereafter | 67,577 | |
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | $ 202,980 | |
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract] | ||
Finite-lived intangible assets, average useful life (in years) | 8 years 2 months 12 days | |
Acquired intangible assets, weighted average useful life (in years) | 5 years 10 months 24 days | |
Lease Incentives (in Rental and Other Revenues) [Member] | ||
Scheduled future amortization of intangible assets [Abstract] | ||
April 1 through December 31, 2021 | $ 1,169 | |
2022 | 1,396 | |
2023 | 1,322 | |
2024 | 1,173 | |
2025 | 1,095 | |
Thereafter | 4,603 | |
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | $ 10,758 | |
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract] | ||
Finite-lived intangible assets, average useful life (in years) | 9 years 4 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, 2021 | $ 725 | |
2022 | 910 | |
2023 | 754 | |
2024 | 664 | |
2025 | 546 | |
Thereafter | 2,453 | |
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | $ 6,052 | |
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract] | ||
Finite-lived intangible assets, average useful life (in years) | 9 years | |
Acquired intangible assets, weighted average useful life (in years) | 7 years 4 months 24 days | |
Acquisition-Related Below Market Lease Liabilities (in Rental and Other Revenues) [Member] | ||
Scheduled future amortization of below market lease liabilities [Abstract] | ||
April 1 through December 31, 2021 | $ (3,757) | |
2022 | (4,214) | |
2023 | (3,838) | |
2024 | (3,171) | |
2025 | (1,813) | |
Thereafter | (9,050) | |
Total scheduled future amortization of acquisition-related below market lease liabilities | $ (25,843) | |
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 4 months 24 days | |
Assumed finite-lived below market lease liabilities, weighted average useful life (in years) | 5 years 10 months 24 days |
Mortgages and Notes Payable (De
Mortgages and Notes Payable (Details) | 3 Months Ended | |||
Mar. 31, 2021USD ($)extension | Mar. 31, 2020USD ($) | Apr. 20, 2021USD ($) | Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | ||||
Mortgages and notes payable | $ 2,470,472,000 | $ 2,470,021,000 | ||
Unamortized debt issuance costs | (13,441,000) | (13,981,000) | ||
Loss on debt extinguishment | (76,000) | $ 0 | ||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity on revolving credit facility | 750,000,000 | 600,000,000 | ||
Additional borrowing capacity on revolving credit facility | $ 550,000,000 | |||
Number of additional extensions | extension | 2 | |||
Term of optional extension | 6 months | |||
Deferred financing fees | $ 4,800,000 | |||
Loss on debt extinguishment | (100,000) | |||
Amount outstanding on revolving credit facility | 0 | |||
Outstanding letters of credit on revolving credit facility | 100,000 | |||
Unused borrowing capacity on revolving credit facility | 749,900,000 | |||
Secured indebtedness [Member] | ||||
Debt Instrument [Line Items] | ||||
Mortgages and notes payable | 92,850,000 | 93,350,000 | ||
Aggregate undepreciated book value of secured real estate assets | 147,900,000 | |||
Unsecured indebtedness [Member] | ||||
Debt Instrument [Line Items] | ||||
Mortgages and notes payable | $ 2,391,063,000 | $ 2,390,652,000 | ||
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Facility interest rate basis | LIBOR | |||
Interest rate, basis spread (in hundredths) | 0.90% | |||
Annual facility fee (in hundredths) | 0.20% | |||
Subsequent Event [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Amount outstanding on revolving credit facility | $ 160,000,000 | |||
Outstanding letters of credit on revolving credit facility | 100,000 | |||
Unused borrowing capacity on revolving credit facility | $ 589,900,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Expected net increase to interest expense | $ 400 | ||
Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities: | |||
Interest rate swaps | 650 | $ 846 | |
Amount of unrealized losses recognized in accumulated other comprehensive loss on derivatives: | |||
Interest rate swaps | 0 | $ (1,133) | |
Amount of (gains)/losses reclassified out of accumulated other comprehensive loss into interest expense: | |||
Interest rate swaps | $ 122 | $ (72) |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Noncontrolling Interests in the Operating Partnership [Roll Forward] | ||
Beginning noncontrolling interests in the Operating Partnership | $ 112,499 | |
Adjustment of noncontrolling interests in the Operating Partnership to fair value | 9,266 | $ (42,301) |
Net income attributable to noncontrolling interests in the Operating Partnership | 1,493 | 4,960 |
Distributions to noncontrolling interests in the Operating Partnership | (1,363) | (1,364) |
Total noncontrolling interests in the Operating Partnership | 121,895 | |
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership [Abstract] | ||
Net income available for common stockholders | 54,459 | 185,473 |
Highwoods Properties, Inc. [Member] | ||
Noncontrolling Interests in the Operating Partnership [Roll Forward] | ||
Beginning noncontrolling interests in the Operating Partnership | 112,499 | 133,216 |
Adjustment of noncontrolling interests in the Operating Partnership to fair value | 9,266 | (42,301) |
Issuances of Common Units | 0 | 6,163 |
Net income attributable to noncontrolling interests in the Operating Partnership | 1,493 | 4,960 |
Distributions to noncontrolling interests in the Operating Partnership | (1,363) | (1,364) |
Total noncontrolling interests in the Operating Partnership | 121,895 | 100,674 |
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership [Abstract] | ||
Net income available for common stockholders | 54,459 | 185,473 |
Issuances of Common Units | 0 | (6,163) |
Change from net income available for common stockholders and transfers from noncontrolling interests | $ 54,459 | $ 179,310 |
Richmond Joint Venture [Member] | ||
Noncontrolling Interests in Consolidated Affiliates [Abstract] | ||
Consolidated joint venture, partner's interest (in hundredths) | 50.00% | |
Tampa Joint Venture [Member] | ||
Noncontrolling Interests in Consolidated Affiliates [Abstract] | ||
Consolidated joint venture, partner's interest (in hundredths) | 20.00% |
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, 2021 | Dec. 31, 2020 |
Assets: | ||
Mortgages and notes receivable, at fair value | $ 1,292 | $ 1,341 |
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) | 2,712 | 2,573 |
Total Assets | 4,004 | 3,914 |
Liabilities: | ||
Mortgages and notes payable, net, at fair value | 2,554,474 | 2,639,163 |
Interest rate swaps (in accounts payable, accrued expenses and other liabilities) | 650 | 846 |
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 2,712 | 2,573 |
Total Liabilities | 2,557,836 | 2,642,582 |
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) | 2,712 | 2,573 |
Total Assets | 2,712 | 2,573 |
Liabilities: | ||
Mortgages and notes payable, net, at fair value | 0 | 0 |
Interest rate swaps (in accounts payable, accrued expenses and other liabilities) | 0 | 0 |
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 2,712 | 2,573 |
Total Liabilities | 2,712 | 2,573 |
Level 2 [Member] | ||
Assets: | ||
Mortgages and notes receivable, at fair value | 1,292 | 1,341 |
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) | 0 | 0 |
Total Assets | 1,292 | 1,341 |
Liabilities: | ||
Mortgages and notes payable, net, at fair value | 2,554,474 | 2,639,163 |
Interest rate swaps (in accounts payable, accrued expenses and other liabilities) | 650 | 846 |
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 0 | 0 |
Total Liabilities | 2,555,124 | 2,640,009 |
Highwoods Properties, Inc. [Member] | ||
Assets: | ||
Noncontrolling Interests in the Operating Partnership | 121,895 | 112,499 |
Highwoods Properties, Inc. [Member] | Level 1 [Member] | ||
Assets: | ||
Noncontrolling Interests in the Operating Partnership | 121,895 | 112,499 |
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, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 2,982 | $ 2,496 |
Total unrecognized share-based compensation costs | $ 9,200 | |
Weighted average remaining contractual term for recognition of unrecognized share-based compensation costs (in years) | 2 years 3 months 18 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) | 102,532 | |
Weighted average grant date fair value of each restricted stock share granted (in dollars per share) | $ 39.96 | |
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) | 80,568 | |
Weighted average grant date fair value of each restricted stock share granted (in dollars per share) | $ 36.37 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accumulated Other Comprehensive Loss Calculation [Roll Forward] | ||
Beginning balance | $ (1,462) | $ (471) |
Unrealized losses on cash flow hedges | 0 | (1,133) |
Amortization of cash flow hedges | 122 | (72) |
Total accumulated other comprehensive loss | $ (1,340) | $ (1,676) |
Real Estate and Other Assets _3
Real Estate and Other Assets Held For Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Real Estate and Other Assets Held For Sale [Abstract] | ||
Land | $ 0 | $ 2,612 |
Buildings and tenant improvements | 0 | 12,238 |
Less-accumulated depreciation | 0 | (3,577) |
Net real estate assets | 0 | 11,273 |
Deferred leasing costs, net | 0 | 87 |
Real estate and other assets, net, held for sale | $ 0 | $ 11,360 |
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, 2021 | Mar. 31, 2020 | |
Earnings per Common Share and Per Unit - basic: [Abstract] | ||
Net income | $ 56,855 | $ 191,340 |
Net (income) attributable to noncontrolling interests in the Operating Partnership from continuing operations | (1,493) | (4,960) |
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations | (281) | (285) |
Dividends on Preferred Stock | (622) | (622) |
Net income available for common stockholders | $ 54,459 | $ 185,473 |
Denominator: | ||
Denominator for basic earnings per Common Share - weighted average shares (in shares) | 103,963 | 103,813 |
Earnings per Common Share - basic: | ||
Net income available for common stockholders (in dollars per share) | $ 0.52 | $ 1.79 |
Earnings per Common Share and Per Unit - diluted: [Abstract] | ||
Net income | $ 56,855 | $ 191,340 |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (281) | (285) |
Dividends on Preferred Stock | (622) | (622) |
Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership | $ 55,952 | $ 190,433 |
Denominator: | ||
Denominator for basic earnings per Common Share - weighted average shares (in shares) | 103,963 | 103,813 |
Stock options using the treasury method (in shares) | 8 | 25 |
Noncontrolling interests Common Units (in shares) | 2,839 | 2,795 |
Denominator for diluted earnings per Common Share - adjusted weighted average shares and assumed conversions (in shares) | 106,810 | 106,633 |
Earnings per Common Share - diluted: | ||
Net income available for common stockholders (in dollars per share) | $ 0.52 | $ 1.79 |
Highwoods Realty Limited Partnership [Member] | ||
Earnings per Common Share and Per Unit - basic: [Abstract] | ||
Net income | $ 56,855 | $ 191,340 |
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations | (281) | (285) |
Distributions on Preferred Units | (622) | (622) |
Net income available for common unitholders | $ 55,952 | $ 190,433 |
Denominator: | ||
Denominator for basic earnings per Common Unit - weighted average units (in shares) | 106,393 | 106,199 |
Earnings per Common Unit - basic: | ||
Net income available for common unitholders (in dollars per share) | $ 0.53 | $ 1.79 |
Earnings per Common Share and Per Unit - diluted: [Abstract] | ||
Net income | $ 56,855 | $ 191,340 |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (281) | (285) |
Distributions on Preferred Units | (622) | (622) |
Net income available for common unitholders | $ 55,952 | $ 190,433 |
Denominator: | ||
Denominator for basic earnings per Common Unit - weighted average units (in shares) | 106,393 | 106,199 |
Stock options using the treasury method (in shares) | 8 | 25 |
Denominator for diluted earnings per Common Unit - adjusted weighted average units and assumed conversions (in shares) | 106,401 | 106,224 |
Earnings per Common Unit - diluted: | ||
Net income available for common unitholders (in dollars per share) | $ 0.53 | $ 1.79 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | $ 183,805 | $ 192,800 |
Total Net Operating Income | 127,616 | 130,598 |
Reconciliation to net income: | ||
Depreciation and amortization | (60,927) | (61,150) |
General and administrative expenses | (9,952) | (10,930) |
Interest expense | (19,768) | (21,277) |
Other income | 312 | 69 |
Gains on disposition of property | 18,937 | 153,067 |
Equity in earnings of unconsolidated affiliates | 637 | 963 |
Net income | 56,855 | 191,340 |
Total Office Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 180,373 | 179,416 |
Total Net Operating Income | 125,675 | 122,673 |
Office Atlanta, GA [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 35,975 | 37,959 |
Total Net Operating Income | 24,000 | 25,183 |
Office Charlotte, NC [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 9,134 | 8,933 |
Total Net Operating Income | 7,252 | 7,202 |
Office Nashville, TN [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 35,159 | 34,497 |
Total Net Operating Income | 24,993 | 24,753 |
Office Orlando, FL [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 12,559 | 13,022 |
Total Net Operating Income | 7,712 | 8,005 |
Office Pittsburgh, PA [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 14,618 | 14,948 |
Total Net Operating Income | 8,889 | 8,670 |
Office Raleigh, NC [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 37,042 | 32,553 |
Total Net Operating Income | 28,136 | 23,636 |
Office Richmond, VA [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 11,462 | 12,260 |
Total Net Operating Income | 8,053 | 8,691 |
Office Tampa, FL [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 24,424 | 25,244 |
Total Net Operating Income | 16,640 | 16,533 |
Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 3,432 | 13,384 |
Total Net Operating Income | $ 1,941 | $ 7,925 |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, $ in Thousands | Apr. 16, 2021USD ($)ft²propertyUnitnumberOfLoansnumberOfAssets | Apr. 15, 2021USD ($)$ / shares | Mar. 31, 2021USD ($)ft²$ / shares | Mar. 31, 2020USD ($)$ / shares |
Subsequent Event [Line Items] | ||||
Loss on debt extinguishment | $ (76) | $ 0 | ||
Acquisition rentable square feet (in sq ft) | ft² | 27,400,000 | |||
Subsequent Event [Member] | PAC Portfolio Acquisition [Member] | ||||
Subsequent Event [Line Items] | ||||
Number of office properties acquired | propertyUnit | 4 | |||
Acquisition rentable square feet (in sq ft) | ft² | 1,630,000 | |||
Number of redevelopment properties acquired | propertyUnit | 1 | |||
Number of non-core assets acquired | numberOfAssets | 2 | |||
Acquisition purchase price | $ 769,000 | |||
Transaction costs | $ 5,000 | |||
Number of loans assumed in acquisition | numberOfLoans | 4 | |||
Fair value of debt assumed from the acquisition | $ 403,000 | |||
Effective interest rate of secured debt assumed from the acquisition | 3.70% | |||
Term of debt instrument, in years | 10 years 9 months 18 days | |||
Percentage of total investment related to non-core assets | 12.00% | |||
Near-term building improvements included in acquisition | $ 28,000 | |||
Initial incremental investment amount of acquisition | $ 50,000 | |||
Subsequent Event [Member] | 3.20% (3.363% effective rate) Notes due 2021 [Member] | ||||
Subsequent Event [Line Items] | ||||
Early repayment of debt | $ 150,000 | |||
Stated interest rate (in hundredths) | 3.20% | |||
Loss on debt extinguishment | $ (100) | |||
Highwoods Properties, Inc. [Member] | ||||
Subsequent Event [Line Items] | ||||
Dividends on Common Stock (per share) | $ / shares | $ 0.48 | $ 0.48 | ||
Highwoods Properties, Inc. [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Dividends on Common Stock (per share) | $ / shares | $ 0.48 |