Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 19, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
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, $.01 par value, of Highwoods Properties, Inc. | |
Trading Symbol | HIW | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 105,184,854 | |
Entity Central Index Key | 0000921082 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Highwoods Realty Limited Partnership [Member] | ||
Entity Information [Line Items] | ||
Entity Registrant Name | HIGHWOODS REALTY LIMITED PARTNERSHIP | |
Entity Incorporation, State or Country Code | NC | |
Entity File Number | 000-21731 | |
Entity Tax Identification Number | 56-1869557 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000941713 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
HPI - Consolidated Balance Shee
HPI - Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Real estate assets, at cost: | ||
Land | $ 532,215 | $ 549,228 |
Buildings and tenant improvements | 5,676,352 | 5,718,169 |
Development in-process | 19,088 | 6,890 |
Land held for development | 238,159 | 215,257 |
Total real estate assets | 6,465,814 | 6,489,544 |
Less-accumulated depreciation | (1,522,363) | (1,457,511) |
Net real estate assets | 4,943,451 | 5,032,033 |
Real estate and other assets, net, held for sale | 0 | 3,518 |
Cash and cash equivalents | 25,045 | 23,152 |
Restricted cash | 46,623 | 8,046 |
Accounts receivable | 17,938 | 14,002 |
Mortgages and notes receivable | 1,153 | 1,227 |
Accrued straight-line rents receivable | 277,086 | 268,324 |
Investments in and advances to unconsolidated affiliates | 14,457 | 7,383 |
Deferred leasing costs, net of accumulated amortization of $155,594 and $143,111, respectively | 243,624 | 258,902 |
Prepaid expenses and other assets, net of accumulated depreciation of $19,968 and $21,408, respectively | 112,937 | 78,551 |
Total Assets | 5,682,314 | 5,695,138 |
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity: | ||
Mortgages and notes payable, net | 2,804,314 | 2,788,915 |
Accounts payable, accrued expenses and other liabilities | 271,716 | 294,976 |
Total Liabilities | 3,076,030 | 3,083,891 |
Commitments and contingencies | ||
Noncontrolling interests in the Operating Partnership | 84,583 | 111,689 |
Equity: | ||
Preferred Stock, $.01 par value, 50,000,000 authorized shares; 8.625% Series A Cumulative Redeemable Preferred Shares (liquidation preference $1,000 per share), 28,821 shares issued and outstanding | 28,821 | 28,821 |
Common Stock, $.01 par value, 200,000,000 authorized shares; 105,184,854 and 104,892,780 shares issued and outstanding, respectively | 1,052 | 1,049 |
Additional paid-in capital | 3,065,208 | 3,027,861 |
Distributions in excess of net income available for common stockholders | (593,846) | (579,616) |
Accumulated other comprehensive loss | (1,062) | (973) |
Total Stockholders’ Equity | 2,500,173 | 2,477,142 |
Noncontrolling interests in consolidated affiliates | 21,528 | 22,416 |
Total Equity/Capital | 2,521,701 | 2,499,558 |
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Capital | $ 5,682,314 | $ 5,695,138 |
HPI - Consolidated Balance Sh_2
HPI - Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Assets: | ||
Deferred leasing costs, accumulated amortization | $ 155,594 | $ 143,111 |
Prepaid Expenses And Other Assets Accumulated Depreciation | $ 19,968 | $ 21,408 |
Equity: | ||
Series A Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Series A Preferred Stock, authorized shares (in shares) | 50,000,000 | 50,000,000 |
Series A Preferred Stock, dividend rate percentage (in hundredths) | 8.625% | 8.625% |
Series A Preferred Stock, liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 |
Series A Preferred Stock, shares issued (in shares) | 28,821 | 28,821 |
Series A Preferred Stock, shares outstanding (in shares) | 28,821 | 28,821 |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, authorized shares (in shares) | 200,000,000 | 200,000,000 |
Common Stock, shares issued (in shares) | 105,184,854 | 104,892,780 |
Common Stock, shares outstanding (in shares) | 105,184,854 | 104,892,780 |
HRLP - Consolidated Balance She
HRLP - Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Real estate assets, at cost: | ||
Land | $ 532,215 | $ 549,228 |
Buildings and tenant improvements | 5,676,352 | 5,718,169 |
Development in-process | 19,088 | 6,890 |
Land held for development | 238,159 | 215,257 |
Total real estate assets | 6,465,814 | 6,489,544 |
Less-accumulated depreciation | (1,522,363) | (1,457,511) |
Net real estate assets | 4,943,451 | 5,032,033 |
Real estate and other assets, net, held for sale | 0 | 3,518 |
Cash and cash equivalents | 25,045 | 23,152 |
Restricted cash | 46,623 | 8,046 |
Accounts receivable | 17,938 | 14,002 |
Mortgages and notes receivable | 1,153 | 1,227 |
Accrued straight-line rents receivable | 277,086 | 268,324 |
Investments in and advances to unconsolidated affiliates | 14,457 | 7,383 |
Deferred leasing costs, net of accumulated amortization of $155,594 and $143,111, respectively | 243,624 | 258,902 |
Prepaid expenses and other assets, net of accumulated depreciation of $19,968 and $21,408, respectively | 112,937 | 78,551 |
Total Assets | 5,682,314 | 5,695,138 |
Liabilities, Redeemable Operating Partnership Units and Capital: | ||
Mortgages and notes payable, net | 2,804,314 | 2,788,915 |
Accounts payable, accrued expenses and other liabilities | 271,716 | 294,976 |
Total Liabilities | 3,076,030 | 3,083,891 |
Commitments and contingencies | ||
Capital: | ||
Accumulated other comprehensive loss | (1,062) | (973) |
Noncontrolling interests in consolidated affiliates | 21,528 | 22,416 |
Total Equity/Capital | 2,521,701 | 2,499,558 |
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Capital | 5,682,314 | 5,695,138 |
Highwoods Realty Limited Partnership [Member] | ||
Real estate assets, at cost: | ||
Land | 532,215 | 549,228 |
Buildings and tenant improvements | 5,676,352 | 5,718,169 |
Development in-process | 19,088 | 6,890 |
Land held for development | 238,159 | 215,257 |
Total real estate assets | 6,465,814 | 6,489,544 |
Less-accumulated depreciation | (1,522,363) | (1,457,511) |
Net real estate assets | 4,943,451 | 5,032,033 |
Real estate and other assets, net, held for sale | 0 | 3,518 |
Cash and cash equivalents | 25,045 | 23,152 |
Restricted cash | 46,623 | 8,046 |
Accounts receivable | 17,938 | 14,002 |
Mortgages and notes receivable | 1,153 | 1,227 |
Accrued straight-line rents receivable | 277,086 | 268,324 |
Investments in and advances to unconsolidated affiliates | 14,457 | 7,383 |
Deferred leasing costs, net of accumulated amortization of $155,594 and $143,111, respectively | 243,624 | 258,902 |
Prepaid expenses and other assets, net of accumulated depreciation of $19,968 and $21,408, respectively | 112,937 | 78,551 |
Total Assets | 5,682,314 | 5,695,138 |
Liabilities, Redeemable Operating Partnership Units and Capital: | ||
Mortgages and notes payable, net | 2,804,314 | 2,788,915 |
Accounts payable, accrued expenses and other liabilities | 271,716 | 294,976 |
Total Liabilities | 3,076,030 | 3,083,891 |
Commitments and contingencies | ||
Redeemable Operating Partnership Units: | ||
Common Units, 2,473,896 and 2,504,805 outstanding, respectively | 84,583 | 111,689 |
Series A Preferred Units (liquidation preference $1,000 per unit), 28,821 units issued and outstanding | 28,821 | 28,821 |
Total Redeemable Operating Partnership Units | 113,404 | 140,510 |
Capital: | ||
General partner Common Units, 1,072,499 and 1,069,888 outstanding, respectively | 24,723 | 24,492 |
Limited partner Common Units, 103,703,546 and 103,414,083 outstanding, respectively | 2,447,691 | 2,424,802 |
Accumulated other comprehensive loss | (1,062) | (973) |
Noncontrolling interests in consolidated affiliates | 21,528 | 22,416 |
Total Equity/Capital | 2,492,880 | 2,470,737 |
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Capital | $ 5,682,314 | $ 5,695,138 |
HRLP - Consolidated Balance S_2
HRLP - Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets: | ||
Deferred leasing costs, accumulated amortization | $ 155,594 | $ 143,111 |
Prepaid Expenses And Other Assets Accumulated Depreciation | 19,968 | 21,408 |
Highwoods Realty Limited Partnership [Member] | ||
Assets: | ||
Deferred leasing costs, accumulated amortization | 155,594 | 143,111 |
Prepaid Expenses And Other Assets Accumulated Depreciation | $ 19,968 | $ 21,408 |
Redeemable Operating Partnership Units: [Abstract] | ||
Redeemable Common Units outstanding (in shares) | 2,473,896 | 2,504,805 |
Series A Preferred Units, liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 |
Series A Preferred Units, issued (in shares) | 28,821 | 28,821 |
Series A Preferred Units, outstanding (in shares) | 28,821 | 28,821 |
Common Units: [Abstract] | ||
General partners' capital account, units outstanding (in shares) | 1,072,499 | 1,069,888 |
Limited partners' capital account, units outstanding (in shares) | 103,703,546 | 103,414,083 |
HPI - Consolidated Statements o
HPI - Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Rental and other revenues | $ 203,841 | $ 185,502 | $ 410,219 | $ 369,307 |
Operating expenses: | ||||
Rental property and other expenses | 62,369 | 56,226 | 123,791 | 112,415 |
Depreciation and amortization | 69,742 | 61,949 | 139,409 | 122,876 |
Impairments of real estate assets | 35,000 | 0 | 35,000 | 0 |
General and administrative | 9,591 | 10,107 | 23,147 | 20,059 |
Total operating expenses | 176,702 | 128,282 | 321,347 | 255,350 |
Interest expense | 25,027 | 19,001 | 49,420 | 38,769 |
Other income | 120 | 332 | 483 | 644 |
Gains on disposition of property | 50,044 | 22,862 | 54,144 | 41,799 |
Equity in earnings of unconsolidated affiliates | 326 | 431 | 626 | 1,068 |
Net income | 52,602 | 61,844 | 94,705 | 118,699 |
Net (income) attributable to noncontrolling interests in the Operating Partnership | (1,203) | (1,624) | (2,168) | (3,117) |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (266) | (294) | (523) | (575) |
Dividends on Preferred Stock | (622) | (621) | (1,243) | (1,243) |
Net income available for common stockholders | $ 50,511 | $ 59,305 | $ 90,771 | $ 113,764 |
Earnings per Common Share – basic: | ||||
Net income available for common stockholders (in dollars per share) | $ 0.48 | $ 0.57 | $ 0.86 | $ 1.09 |
Weighted average Common Shares outstanding - basic (in shares) | 105,163 | 104,106 | 105,049 | 104,035 |
Earnings per Common Share - diluted: | ||||
Net income available for common stockholders (in dollars per share) | $ 0.48 | $ 0.57 | $ 0.86 | $ 1.09 |
Weighted average Common Shares outstanding - diluted (in shares) | 107,654 | 106,964 | 107,554 | 106,887 |
HRLP - Consolidated Statements
HRLP - Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Rental and other revenues | $ 203,841 | $ 185,502 | $ 410,219 | $ 369,307 |
Operating expenses: | ||||
Rental property and other expenses | 62,369 | 56,226 | 123,791 | 112,415 |
Depreciation and amortization | 69,742 | 61,949 | 139,409 | 122,876 |
Impairments of real estate assets | 35,000 | 0 | 35,000 | 0 |
General and administrative | 9,591 | 10,107 | 23,147 | 20,059 |
Total operating expenses | 176,702 | 128,282 | 321,347 | 255,350 |
Interest expense | 25,027 | 19,001 | 49,420 | 38,769 |
Other income | 120 | 332 | 483 | 644 |
Gains on disposition of property | 50,044 | 22,862 | 54,144 | 41,799 |
Equity in earnings of unconsolidated affiliates | 326 | 431 | 626 | 1,068 |
Net income | 52,602 | 61,844 | 94,705 | 118,699 |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (266) | (294) | (523) | (575) |
Highwoods Realty Limited Partnership [Member] | ||||
Rental and other revenues | 203,841 | 185,502 | 410,219 | 369,307 |
Operating expenses: | ||||
Rental property and other expenses | 62,369 | 56,226 | 123,791 | 112,415 |
Depreciation and amortization | 69,742 | 61,949 | 139,409 | 122,876 |
Impairments of real estate assets | 35,000 | 0 | 35,000 | 0 |
General and administrative | 9,591 | 10,107 | 23,147 | 20,059 |
Total operating expenses | 176,702 | 128,282 | 321,347 | 255,350 |
Interest expense | 25,027 | 19,001 | 49,420 | 38,769 |
Other income | 120 | 332 | 483 | 644 |
Gains on disposition of property | 50,044 | 22,862 | 54,144 | 41,799 |
Equity in earnings of unconsolidated affiliates | 326 | 431 | 626 | 1,068 |
Net income | 52,602 | 61,844 | 94,705 | 118,699 |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (266) | (294) | (523) | (575) |
Distributions on Preferred Units | (622) | (621) | (1,243) | (1,243) |
Net income available for common unitholders | $ 51,714 | $ 60,929 | $ 92,939 | $ 116,881 |
Earnings per Common Unit - basic: | ||||
Net income available for common unitholders (in dollars per share) | $ 0.48 | $ 0.57 | $ 0.87 | $ 1.10 |
Weighted average Common Units outstanding - basic (in shares) | 107,240 | 106,535 | 107,135 | 106,464 |
Earnings per Common Unit - diluted: | ||||
Net income available for common unitholders (in dollars per share) | $ 0.48 | $ 0.57 | $ 0.87 | $ 1.10 |
Weighted average Common Units outstanding - diluted (in shares) | 107,245 | 106,555 | 107,145 | 106,478 |
HPI - Consolidated Statements_2
HPI - Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Comprehensive income: | ||||
Net income | $ 52,602 | $ 61,844 | $ 94,705 | $ 118,699 |
Other comprehensive income/(loss): | ||||
Unrealized losses on cash flow hedges | 0 | (11) | 0 | (11) |
Amortization of cash flow hedges | (74) | 126 | (89) | 248 |
Other comprehensive income/(loss) | (74) | 115 | (89) | 237 |
Total comprehensive income | 52,528 | 61,959 | 94,616 | 118,936 |
Less-comprehensive (income) attributable to noncontrolling interests | (1,469) | (1,918) | (2,691) | (3,692) |
Comprehensive income attributable to common stockholders/Comprehensive income attributable to common unitholders | $ 51,059 | $ 60,041 | $ 91,925 | $ 115,244 |
HRLP - Consolidated Statement_2
HRLP - Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Comprehensive income: | ||||
Net income | $ 52,602 | $ 61,844 | $ 94,705 | $ 118,699 |
Other comprehensive income/(loss): | ||||
Unrealized losses on cash flow hedges | 0 | (11) | 0 | (11) |
Amortization of cash flow hedges | (74) | 126 | (89) | 248 |
Total other comprehensive income/(loss) | (74) | 115 | (89) | 237 |
Total comprehensive income | 52,528 | 61,959 | 94,616 | 118,936 |
Less-comprehensive (income) attributable to noncontrolling interests | (1,469) | (1,918) | (2,691) | (3,692) |
Comprehensive income attributable to common stockholders/Comprehensive income attributable to common unitholders | 51,059 | 60,041 | 91,925 | 115,244 |
Highwoods Realty Limited Partnership [Member] | ||||
Comprehensive income: | ||||
Net income | 52,602 | 61,844 | 94,705 | 118,699 |
Other comprehensive income/(loss): | ||||
Unrealized losses on cash flow hedges | 0 | (11) | 0 | (11) |
Amortization of cash flow hedges | (74) | 126 | (89) | 248 |
Total other comprehensive income/(loss) | (74) | 115 | (89) | 237 |
Total comprehensive income | 52,528 | 61,959 | 94,616 | 118,936 |
Less-comprehensive (income) attributable to noncontrolling interests | (266) | (294) | (523) | (575) |
Comprehensive income attributable to common stockholders/Comprehensive income attributable to common unitholders | $ 52,262 | $ 61,665 | $ 94,093 | $ 118,361 |
HPI - Consolidated Statements_3
HPI - Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Series A Cumulative Redeemable Preferred Shares [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interests in Consolidated Affiliates [Member] | Distributions in Excess of Net Income Available for Common Stockholders [Member] |
Balance (in shares) at Dec. 31, 2020 | 103,921,546 | ||||||
Balance at Dec. 31, 2020 | $ 2,358,170 | $ 1,039 | $ 28,826 | $ 2,993,946 | $ (1,462) | $ 22,046 | $ (686,225) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuances of Common Stock, net of issuance costs and tax withholdings - shares | 109,130 | ||||||
Issuances of Common Stock, net of issuance costs and tax withholdings | 5,897 | $ 1 | 5,896 | ||||
Conversions of Common Units to Common Stock - Shares | 1,000 | ||||||
Conversions of Common Units to Common Stock | 44 | 44 | |||||
Dividends on Common Stock | (99,778) | (99,778) | |||||
Dividends on Preferred Stock | (1,243) | (1,243) | |||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | (15,334) | (15,334) | |||||
Distributions to noncontrolling interests in consolidated affiliates | (782) | (782) | |||||
Issuances of restricted stock - shares | 184,584 | ||||||
Issuances of restricted stock | 0 | ||||||
Share-based compensation expense, net of forfeitures - shares | (6,747) | ||||||
Share-based compensation expense, net of forfeitures | 4,855 | $ 2 | 4,853 | ||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | (3,117) | (3,117) | |||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | 0 | 575 | (575) | ||||
Comprehensive income: | |||||||
Net income | 118,699 | 118,699 | |||||
Other comprehensive income/(loss) | 237 | 237 | |||||
Total comprehensive income | 118,936 | ||||||
Balance (in shares) at Jun. 30, 2021 | 104,209,513 | ||||||
Balance at Jun. 30, 2021 | 2,367,643 | $ 1,042 | 28,821 | 2,989,405 | (1,225) | 21,839 | (672,239) |
Comprehensive income: | |||||||
Redemptions/repurchases of Preferred Stock | (5) | (5) | |||||
Balance (in shares) at Mar. 31, 2021 | 104,055,152 | ||||||
Balance at Mar. 31, 2021 | 2,354,921 | $ 1,041 | 28,826 | 2,986,462 | (1,340) | 21,545 | (681,613) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuances of Common Stock, net of issuance costs and tax withholdings - shares | 158,188 | ||||||
Issuances of Common Stock, net of issuance costs and tax withholdings | 7,095 | $ 1 | 7,094 | ||||
Conversions of Common Units to Common Stock - Shares | 1,000 | ||||||
Conversions of Common Units to Common Stock | 44 | 44 | |||||
Dividends on Common Stock | (49,931) | (49,931) | |||||
Dividends on Preferred Stock | (621) | (621) | |||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | (6,068) | (6,068) | |||||
Issuances of restricted stock - shares | 1,484 | ||||||
Issuances of restricted stock | 0 | ||||||
Share-based compensation expense, net of forfeitures - shares | (6,311) | ||||||
Share-based compensation expense, net of forfeitures | 1,873 | $ 0 | 1,873 | ||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | (1,624) | (1,624) | |||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | 0 | 294 | (294) | ||||
Comprehensive income: | |||||||
Net income | 61,844 | 61,844 | |||||
Other comprehensive income/(loss) | 115 | 115 | |||||
Total comprehensive income | 61,959 | ||||||
Balance (in shares) at Jun. 30, 2021 | 104,209,513 | ||||||
Balance at Jun. 30, 2021 | 2,367,643 | $ 1,042 | 28,821 | 2,989,405 | (1,225) | 21,839 | (672,239) |
Comprehensive income: | |||||||
Redemptions/repurchases of Preferred Stock | $ (5) | (5) | |||||
Balance (in shares) at Dec. 31, 2021 | 104,892,780 | 104,892,780 | |||||
Balance at Dec. 31, 2021 | $ 2,499,558 | $ 1,049 | 28,821 | 3,027,861 | (973) | 22,416 | (579,616) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuances of Common Stock, net of issuance costs and tax withholdings - shares | 79,358 | ||||||
Issuances of Common Stock, net of issuance costs and tax withholdings | 4,435 | $ 1 | 4,434 | ||||
Conversions of Common Units to Common Stock - Shares | 30,909 | ||||||
Conversions of Common Units to Common Stock | 1,251 | 1,251 | |||||
Dividends on Common Stock | (105,001) | (105,001) | |||||
Dividends on Preferred Stock | (1,243) | (1,243) | |||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | 25,528 | 25,528 | |||||
Distributions to noncontrolling interests in consolidated affiliates | (1,411) | (1,411) | |||||
Issuances of restricted stock - shares | 181,807 | ||||||
Issuances of restricted stock | 0 | ||||||
Share-based compensation expense, net of forfeitures - shares | 0 | ||||||
Share-based compensation expense, net of forfeitures | 6,136 | $ 2 | 6,134 | ||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | (2,168) | (2,168) | |||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | 0 | 523 | (523) | ||||
Comprehensive income: | |||||||
Net income | 94,705 | 94,705 | |||||
Other comprehensive income/(loss) | (89) | (89) | |||||
Total comprehensive income | $ 94,616 | ||||||
Balance (in shares) at Jun. 30, 2022 | 105,184,854 | 105,184,854 | |||||
Balance at Jun. 30, 2022 | $ 2,521,701 | $ 1,052 | 28,821 | 3,065,208 | (1,062) | 21,528 | (593,846) |
Balance (in shares) at Mar. 31, 2022 | 105,143,984 | ||||||
Balance at Mar. 31, 2022 | 2,492,521 | $ 1,051 | 28,821 | 3,034,155 | (988) | 21,262 | (591,780) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuances of Common Stock, net of issuance costs and tax withholdings - shares | 9,537 | ||||||
Issuances of Common Stock, net of issuance costs and tax withholdings | 262 | $ 1 | 261 | ||||
Conversions of Common Units to Common Stock - Shares | 30,909 | ||||||
Conversions of Common Units to Common Stock | 1,251 | 1,251 | |||||
Dividends on Common Stock | (52,577) | (52,577) | |||||
Dividends on Preferred Stock | (622) | (622) | |||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | 28,696 | 28,696 | |||||
Issuances of restricted stock - shares | 424 | ||||||
Issuances of restricted stock | 0 | ||||||
Share-based compensation expense, net of forfeitures - shares | 0 | ||||||
Share-based compensation expense, net of forfeitures | 845 | $ 0 | 845 | ||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | (1,203) | (1,203) | |||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | 0 | 266 | (266) | ||||
Comprehensive income: | |||||||
Net income | 52,602 | 52,602 | |||||
Other comprehensive income/(loss) | (74) | (74) | |||||
Total comprehensive income | $ 52,528 | ||||||
Balance (in shares) at Jun. 30, 2022 | 105,184,854 | 105,184,854 | |||||
Balance at Jun. 30, 2022 | $ 2,521,701 | $ 1,052 | $ 28,821 | $ 3,065,208 | $ (1,062) | $ 21,528 | $ (593,846) |
HPI - Consolidated Statements_4
HPI - Consolidated Statements of Equity (Parentheticals) - Highwoods Properties, Inc. [Member] - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Dividends on Common Stock (per share) | $ 0.50 | $ 0.48 | $ 1 | $ 0.96 |
Series A Cumulative Redeemable Preferred Shares [Member] | ||||
Dividends on Preferred Stock (per share) | $ 21.5625 | $ 21.5625 | $ 43.125 | $ 43.125 |
HRLP - Consolidated Statement_3
HRLP - Consolidated Statements of Capital - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Balance | $ 2,492,521 | $ 2,354,921 | $ 2,499,558 | $ 2,358,170 |
Share-based compensation expense, net of forfeitures | 845 | 1,873 | 6,136 | 4,855 |
Distributions to noncontrolling interests in consolidated affiliates | (1,411) | (782) | ||
Net (income) attributable to noncontrolling interests in consolidated affiliates | 0 | 0 | 0 | 0 |
Comprehensive income: | ||||
Net income | 52,602 | 61,844 | 94,705 | 118,699 |
Other comprehensive income/(loss) | (74) | 115 | (89) | 237 |
Total comprehensive income | 52,528 | 61,959 | 94,616 | 118,936 |
Balance | 2,521,701 | 2,367,643 | 2,521,701 | 2,367,643 |
Highwoods Realty Limited Partnership [Member] | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Balance | 2,463,700 | 2,326,095 | 2,470,737 | 2,329,344 |
Issuances of Common Units, net of issuance costs and tax withholdings | 262 | 7,095 | 4,435 | 5,897 |
Distributions on Common Units | (53,616) | (51,098) | (107,087) | (102,112) |
Distributions on Preferred Units | (622) | (621) | (1,243) | (1,243) |
Share-based compensation expense, net of forfeitures | 845 | 1,873 | 6,136 | 4,855 |
Distributions to noncontrolling interests in consolidated affiliates | (1,411) | (782) | ||
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner | 29,783 | (6,481) | 26,697 | (16,073) |
Net (income) attributable to noncontrolling interests in consolidated affiliates | 0 | 0 | 0 | 0 |
Comprehensive income: | ||||
Net income | 52,602 | 61,844 | 94,705 | 118,699 |
Other comprehensive income/(loss) | (74) | 115 | (89) | 237 |
Total comprehensive income | 52,528 | 61,959 | 94,616 | 118,936 |
Balance | 2,492,880 | 2,338,822 | 2,492,880 | 2,338,822 |
General Partners' Common Units [Member] | Highwoods Realty Limited Partnership [Member] | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Balance | 24,433 | 23,059 | 24,492 | 23,087 |
Issuances of Common Units, net of issuance costs and tax withholdings | 2 | 71 | 44 | 59 |
Distributions on Common Units | (536) | (511) | (1,071) | (1,021) |
Distributions on Preferred Units | (6) | (6) | (12) | (12) |
Share-based compensation expense, net of forfeitures | 8 | 19 | 61 | 49 |
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner | 298 | (65) | 267 | (161) |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (2) | (3) | (5) | (6) |
Comprehensive income: | ||||
Net income | 526 | 618 | 947 | 1,187 |
Balance | 24,723 | 23,182 | 24,723 | 23,182 |
Limited Partners' Common Units [Member] | Highwoods Realty Limited Partnership [Member] | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Balance | 2,418,993 | 2,282,831 | 2,424,802 | 2,285,673 |
Issuances of Common Units, net of issuance costs and tax withholdings | 260 | 7,024 | 4,391 | 5,838 |
Distributions on Common Units | (53,080) | (50,587) | (106,016) | (101,091) |
Distributions on Preferred Units | (616) | (615) | (1,231) | (1,231) |
Share-based compensation expense, net of forfeitures | 837 | 1,854 | 6,075 | 4,806 |
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner | 29,485 | (6,416) | 26,430 | (15,912) |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (264) | (291) | (518) | (569) |
Comprehensive income: | ||||
Net income | 52,076 | 61,226 | 93,758 | 117,512 |
Balance | 2,447,691 | 2,295,026 | 2,447,691 | 2,295,026 |
Accumulated Other Comprehensive Income (Loss) [Member] | Highwoods Realty Limited Partnership [Member] | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Balance | (988) | (1,340) | (973) | (1,462) |
Comprehensive income: | ||||
Other comprehensive income/(loss) | (74) | 115 | (89) | 237 |
Balance | (1,062) | (1,225) | (1,062) | (1,225) |
Noncontrolling Interests in Consolidated Affiliates [Member] | Highwoods Realty Limited Partnership [Member] | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Balance | 21,262 | 21,545 | 22,416 | 22,046 |
Distributions to noncontrolling interests in consolidated affiliates | (1,411) | (782) | ||
Net (income) attributable to noncontrolling interests in consolidated affiliates | 266 | 294 | 523 | 575 |
Comprehensive income: | ||||
Balance | $ 21,528 | $ 21,839 | $ 21,528 | $ 21,839 |
HRLP - Consolidated Statement_4
HRLP - Consolidated Statements of Capital (Parentheticals) - Highwoods Realty Limited Partnership [Member] - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Distributions on Common Units (per unit) | $ 0.50 | $ 0.48 | $ 1 | $ 0.96 |
Series A Cumulative Redeemable Preferred Shares [Member] | ||||
Distributions on Preferred Units (per unit) | $ 21.5625 | $ 21.5625 | $ 43.125 | $ 43.125 |
HPI - Consolidated Statements_5
HPI - Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | ||
Operating activities: | |||
Net income | $ 94,705 | $ 118,699 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 139,409 | 122,876 | |
Amortization of lease incentives and acquisition-related intangible assets and liabilities | (166) | (1,439) | |
Share-based compensation expense | 6,136 | 4,855 | |
Net credit losses/(reversals) on operating lease receivables | 2,625 | (489) | |
Accrued interest on mortgages and notes receivable | (46) | (54) | |
Amortization of debt issuance costs | 2,040 | 1,661 | |
Amortization of cash flow hedges | (89) | 248 | |
Amortization of mortgages and notes payable fair value adjustments | (41) | 776 | |
Impairments of real estate assets | 35,000 | 0 | |
Losses on debt extinguishment | 0 | 134 | |
Net gains on disposition of property | (54,144) | (41,799) | |
Equity in earnings of unconsolidated affiliates | (626) | (1,068) | |
Distributions of earnings from unconsolidated affiliates | 598 | 1,402 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (3,758) | 6,694 | |
Prepaid expenses and other assets | (6,534) | (5,642) | |
Accrued straight-line rents receivable | (13,053) | (7,638) | |
Accounts payable, accrued expenses and other liabilities | (158) | (1,801) | |
Net cash provided by operating activities | 201,898 | 197,415 | |
Investing activities: | |||
Investments in acquired real estate and related intangible assets, net of cash acquired | (26,977) | (120) | |
Investments in development in-process | (20,869) | (54,365) | |
Investments in tenant improvements and deferred leasing costs | (60,661) | (44,827) | |
Investments in building improvements | (26,528) | (24,109) | |
Investment in acquired controlling interest in unconsolidated affiliate | 0 | (127,339) | |
Net proceeds from disposition of real estate assets | 107,362 | 71,501 | |
Investments in mortgages and notes receivable | (24) | (23) | |
Repayments of mortgages and notes receivable | 144 | 154 | |
Investments in and advances to unconsolidated affiliates | (7,500) | 0 | |
Payments of earnest money deposits | (37,500) | (55,000) | |
Changes in other investing activities | 2,684 | 5,711 | |
Net cash used in investing activities | (69,869) | (228,417) | |
Financing activities: | |||
Dividends on Common Stock | (105,001) | (99,778) | |
Redemptions/repurchases of Preferred Stock | 0 | (5) | |
Dividends on Preferred Stock | (1,243) | (1,243) | |
Distributions to noncontrolling interests in the Operating Partnership | (2,495) | (2,726) | |
Distributions to noncontrolling interests in consolidated affiliates | (1,411) | (782) | |
Proceeds from the issuance of Common Stock | 6,839 | 7,763 | |
Costs paid for the issuance of Common Stock | (248) | (185) | |
Repurchase of shares related to tax withholdings | (2,156) | (1,681) | |
Borrowings on revolving credit facility | 145,000 | 230,000 | |
Repayments of revolving credit facility | (125,000) | (75,000) | |
Borrowings on mortgages and notes payable | 200,000 | 0 | |
Repayments of mortgages and notes payable | (203,187) | (151,006) | |
Changes in debt issuance costs and other financing activities | (2,657) | (5,166) | |
Net cash used in financing activities | (91,559) | (99,809) | |
Net increase/(decrease) in cash and cash equivalents and restricted cash | 40,470 | (130,811) | |
Cash and cash equivalents and restricted cash at beginning of the period | 31,198 | 189,244 | |
Cash and cash equivalents and restricted cash at end of the period | 71,668 | 58,433 | |
Reconciliation of cash and cash equivalents and restricted cash: | |||
Cash and cash equivalents at end of the period | 25,045 | 6,535 | |
Restricted cash at end of the period | 46,623 | 51,898 | |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest, net of amounts capitalized | 47,762 | 36,071 | |
Supplemental disclosure of non-cash investing and financing activities: | |||
Unrealized losses on cash flow hedges | 0 | (11) | |
Conversions of Common Units to Common Stock | 1,251 | 44 | |
Changes in accrued capital expenditures | [1] | (20,066) | (23,599) |
Write-off of fully depreciated real estate assets | 21,827 | 36,798 | |
Write-off of fully amortized leasing costs | 11,628 | 28,575 | |
Write-off of fully amortized debt issuance costs | 1,216 | 4,158 | |
Adjustment of noncontrolling interests in the Operating Partnership to fair value | (25,528) | 15,334 | |
Future consideration in connection with the acquisition of land | 0 | 16,000 | |
Accrued capital expenditures included in accounts payable, accrued expenses and other liabilities | $ 34,500 | $ 42,300 | |
[1]Accrued capital expenditures included in accounts payable, accrued expenses and other liabilities at June 30, 2022 and 2021 were $34.5 million and $42.3 million, respectively. |
HRLP - Consolidated Statement_5
HRLP - Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | ||
Operating activities: | |||
Net income | $ 94,705 | $ 118,699 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 139,409 | 122,876 | |
Amortization of lease incentives and acquisition-related intangible assets and liabilities | (166) | (1,439) | |
Share-based compensation expense | 6,136 | 4,855 | |
Net credit losses/(reversals) on operating lease receivables | 2,625 | (489) | |
Accrued interest on mortgages and notes receivable | (46) | (54) | |
Amortization of debt issuance costs | 2,040 | 1,661 | |
Amortization of cash flow hedges | (89) | 248 | |
Amortization of mortgages and notes payable fair value adjustments | (41) | 776 | |
Impairments of real estate assets | 35,000 | 0 | |
Losses on debt extinguishment | 0 | 134 | |
Net gains on disposition of property | (54,144) | (41,799) | |
Equity in earnings of unconsolidated affiliates | (626) | (1,068) | |
Distributions of earnings from unconsolidated affiliates | 598 | 1,402 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (3,758) | 6,694 | |
Prepaid expenses and other assets | (6,534) | (5,642) | |
Accrued straight-line rents receivable | (13,053) | (7,638) | |
Accounts payable, accrued expenses and other liabilities | (158) | (1,801) | |
Net cash provided by operating activities | 201,898 | 197,415 | |
Investing activities: | |||
Investments in acquired real estate and related intangible assets, net of cash acquired | (26,977) | (120) | |
Investments in development in-process | (20,869) | (54,365) | |
Investments in tenant improvements and deferred leasing costs | (60,661) | (44,827) | |
Investments in building improvements | (26,528) | (24,109) | |
Investment in acquired controlling interest in unconsolidated affiliate | 0 | (127,339) | |
Net proceeds from disposition of real estate assets | 107,362 | 71,501 | |
Investments in mortgages and notes receivable | (24) | (23) | |
Repayments of mortgages and notes receivable | 144 | 154 | |
Investments in and advances to unconsolidated affiliates | (7,500) | 0 | |
Payments of earnest money deposits | (37,500) | (55,000) | |
Changes in other investing activities | 2,684 | 5,711 | |
Net cash used in investing activities | (69,869) | (228,417) | |
Financing activities: | |||
Distributions to noncontrolling interests in consolidated affiliates | (1,411) | (782) | |
Borrowings on revolving credit facility | 145,000 | 230,000 | |
Repayments of revolving credit facility | (125,000) | (75,000) | |
Borrowings on mortgages and notes payable | 200,000 | 0 | |
Repayments of mortgages and notes payable | (203,187) | (151,006) | |
Changes in debt issuance costs and other financing activities | (2,657) | (5,166) | |
Net cash used in financing activities | (91,559) | (99,809) | |
Net increase/(decrease) in cash and cash equivalents and restricted cash | 40,470 | (130,811) | |
Cash and cash equivalents and restricted cash at beginning of the period | 31,198 | 189,244 | |
Cash and cash equivalents and restricted cash at end of the period | 71,668 | 58,433 | |
Reconciliation of cash and cash equivalents and restricted cash: | |||
Cash and cash equivalents at end of the period | 25,045 | 6,535 | |
Restricted cash at end of the period | 46,623 | 51,898 | |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest, net of amounts capitalized | 47,762 | 36,071 | |
Supplemental disclosure of non-cash investing and financing activities: | |||
Unrealized losses on cash flow hedges | 0 | (11) | |
Changes in accrued capital expenditures | [1] | (20,066) | (23,599) |
Write-off of fully depreciated real estate assets | 21,827 | 36,798 | |
Write-off of fully amortized leasing costs | 11,628 | 28,575 | |
Write-off of fully amortized debt issuance costs | 1,216 | 4,158 | |
Future consideration in connection with the acquisition of land | 0 | 16,000 | |
Accrued capital expenditures included in accounts payable, accrued expenses and other liabilities | 34,500 | 42,300 | |
Highwoods Realty Limited Partnership [Member] | |||
Operating activities: | |||
Net income | 94,705 | 118,699 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 139,409 | 122,876 | |
Amortization of lease incentives and acquisition-related intangible assets and liabilities | (166) | (1,439) | |
Share-based compensation expense | 6,136 | 4,855 | |
Net credit losses/(reversals) on operating lease receivables | 2,625 | (489) | |
Accrued interest on mortgages and notes receivable | (46) | (54) | |
Amortization of debt issuance costs | 2,040 | 1,661 | |
Amortization of cash flow hedges | (89) | 248 | |
Amortization of mortgages and notes payable fair value adjustments | (41) | 776 | |
Impairments of real estate assets | 35,000 | 0 | |
Losses on debt extinguishment | 0 | 134 | |
Net gains on disposition of property | (54,144) | (41,799) | |
Equity in earnings of unconsolidated affiliates | (626) | (1,068) | |
Distributions of earnings from unconsolidated affiliates | 598 | 1,402 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (3,758) | 6,694 | |
Prepaid expenses and other assets | (6,534) | (5,642) | |
Accrued straight-line rents receivable | (13,053) | (7,638) | |
Accounts payable, accrued expenses and other liabilities | (158) | (1,801) | |
Net cash provided by operating activities | 201,898 | 197,415 | |
Investing activities: | |||
Investments in acquired real estate and related intangible assets, net of cash acquired | (26,977) | (120) | |
Investments in development in-process | (20,869) | (54,365) | |
Investments in tenant improvements and deferred leasing costs | (60,661) | (44,827) | |
Investments in building improvements | (26,528) | (24,109) | |
Investment in acquired controlling interest in unconsolidated affiliate | 0 | (127,339) | |
Net proceeds from disposition of real estate assets | 107,362 | 71,501 | |
Investments in mortgages and notes receivable | (24) | (23) | |
Repayments of mortgages and notes receivable | 144 | 154 | |
Investments in and advances to unconsolidated affiliates | (7,500) | 0 | |
Payments of earnest money deposits | (37,500) | (55,000) | |
Changes in other investing activities | 2,684 | 5,711 | |
Net cash used in investing activities | (69,869) | (228,417) | |
Financing activities: | |||
Distributions on Common Units | (107,087) | (102,112) | |
Redemptions/repurchases of Preferred Units | 0 | (5) | |
Distributions on Preferred Units | (1,243) | (1,243) | |
Distributions to noncontrolling interests in consolidated affiliates | (1,411) | (782) | |
Proceeds from the issuance of Common Units | 6,839 | 7,763 | |
Costs paid for the issuance of Common Units | (248) | (185) | |
Repurchase of units related to tax withholdings | (2,156) | (1,681) | |
Borrowings on revolving credit facility | 145,000 | 230,000 | |
Repayments of revolving credit facility | (125,000) | (75,000) | |
Borrowings on mortgages and notes payable | 200,000 | 0 | |
Repayments of mortgages and notes payable | (203,187) | (151,006) | |
Changes in debt issuance costs and other financing activities | (3,066) | (5,558) | |
Net cash used in financing activities | (91,559) | (99,809) | |
Net increase/(decrease) in cash and cash equivalents and restricted cash | 40,470 | (130,811) | |
Cash and cash equivalents and restricted cash at beginning of the period | 31,198 | 189,244 | |
Cash and cash equivalents and restricted cash at end of the period | 71,668 | 58,433 | |
Reconciliation of cash and cash equivalents and restricted cash: | |||
Cash and cash equivalents at end of the period | 25,045 | 6,535 | |
Restricted cash at end of the period | 46,623 | 51,898 | |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest, net of amounts capitalized | 47,762 | 36,071 | |
Supplemental disclosure of non-cash investing and financing activities: | |||
Unrealized losses on cash flow hedges | 0 | (11) | |
Changes in accrued capital expenditures | [1] | (20,066) | (23,599) |
Write-off of fully depreciated real estate assets | 21,827 | 36,798 | |
Write-off of fully amortized leasing costs | 11,628 | 28,575 | |
Write-off of fully amortized debt issuance costs | 1,216 | 4,158 | |
Adjustment of Redeemable Common Units to fair value | (27,106) | 15,681 | |
Future consideration in connection with the acquisition of land | 0 | 16,000 | |
Accrued capital expenditures included in accounts payable, accrued expenses and other liabilities | $ 34,500 | $ 42,300 | |
[1]Accrued capital expenditures included in accounts payable, accrued expenses and other liabilities at June 30, 2022 and 2021 were $34.5 million and $42.3 million, respectively. |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Significant Accounting Policies | Description of Business and Significant Accounting Policies Description of Business Highwoods Properties, Inc. (the “Company”) is a fully integrated office real estate investment trust (“REIT”) that owns, develops, acquires, leases and manages properties primarily in the best business districts of Atlanta, Charlotte, Dallas, Nashville, Orlando, Pittsburgh, Raleigh, Richmond and Tampa. The Company conducts its activities through Highwoods Realty Limited Partnership (the “Operating Partnership”). At June 30, 2022, we owned or had an interest in 27.6 million rentable square feet of in-service properties, 0.6 million rentable square feet of office properties under development and development land with approximately 4.9 million rentable square feet of potential office build out. Capital Structure The Company is the sole general partner of the Operating Partnership. At June 30, 2022, the Company owned all of the Preferred Units and 104.8 million, or 97.7%, of the Common Units in the Operating Partnership. Limited partners owned the remaining 2.5 million Common Units. During the six months ended June 30, 2022, the Company redeemed 30,909 Common Units for a like number of shares of Common Stock. During 2020, we entered into separate equity distribution agreements in which the Company may offer and sell up to $300.0 million in aggregate gross sales price of shares of Common Stock. During the six months ended June 30, 2022, the Company issued 130,011 shares of Common Stock under its equity distribution agreements at an average gross sales price of $46.50 per share and received net proceeds, after sales commissions, of $6.0 million. 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. At June 30, 2022, we have involvement with, and are the primary beneficiary in, an entity that we concluded to be a variable interest entity. As such, this entity is consolidated. Additionally, at June 30, 2022, we have involvement with, but are not the primary beneficiary in, an entity that we concluded to be a variable interest entity. As such, this entity is not consolidated. (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 2021 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 June 30, 2022, a reserve of $0.5 million was recorded to cover estimated reported and unreported claims. Planned Investment Activity During the second quarter of 2022, we agreed to acquire 650 South Tryon at Legacy Union in Charlotte’s Uptown CBD submarket for a total investment of $203.0 million, including $3.9 million of anticipated leasing capital expenditures to bring the property to stabilization. 650 South Tryon, which delivered in late 2020 and is currently 79% leased, is a trophy, LEED gold-certified office building encompassing 367,000 square feet. 650 South Tryon is immediately adjacent and connected to Company-owned Bank of America Tower at Legacy Union, a trophy, LEED gold-certified office building encompassing 841,000 square feet that delivered in 2019. The acquisition of 650 South Tryon is scheduled to close in August 2022. We have posted earnest money deposits totaling $37.5 million that are non-refundable except in limited circumstances. 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. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Leases | Leases Operating Leases We generally lease our office properties to lessees in exchange for fixed monthly payments that cover rent, property taxes, insurance and certain cost recoveries, primarily common area maintenance. Office properties 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 |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2022 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest Entities Consolidated Variable Interest Entity In 2019, we and The Bromley Companies formed a 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 and the building was placed in service 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 West 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 West joint venture that is scheduled to mature in June 2023. The loan bears interest at LIBOR plus 250 basis points. As of June 30, 2022, $33.2 million under the loan has been funded. We determined that we have a variable interest in the Midtown West joint venture primarily because the entity was designed to pass along interest rate risk, equity price risk and operation risk to us as both a debt and an equity holder and The Bromley Companies as an equity holder. The Midtown West joint venture was further determined to be a variable interest entity as it requires additional subordinated financial support in the form of a loan because the initial equity 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 West joint venture is consolidated and all intercompany transactions and accounts are eliminated. The following table sets forth the assets and liabilities of the Midtown West joint venture included on our Consolidated Balance Sheets: June 30, December 31, Net real estate assets $ 58,645 $ 53,191 Cash and cash equivalents $ 1,084 $ 389 Accounts receivable $ 188 $ — Accrued straight-line rents receivable $ 182 $ 121 Deferred leasing costs, net $ 1,588 $ 1,519 Prepaid expenses and other assets, net $ 284 $ 163 Accounts payable, accrued expenses and other liabilities $ 2,749 $ 646 The assets of the Midtown West joint venture can be used only to settle obligations of the joint venture and its creditors have no recourse to our wholly owned assets. Unconsolidated Variable Interest Entity During the fourth quarter of 2021, we and Brand Properties, LLC (“Brand”) formed a joint venture to construct 2827 Peachtree, a 135,000 square foot, multi-customer office building located in Atlanta’s Buckhead submarket. 2827 Peachtree has an anticipated total investment of $79.0 million. Construction of 2827 Peachtree began in the first quarter of 2022 with a scheduled completion date in the third quarter of 2023. At closing, we agreed to contribute cash of $13.3 million, which has been fully funded, in exchange for a 50.0% interest in the 2827 Peachtree joint venture and Brand contributed land valued at $7.7 million and cash of $5.6 million in exchange for the remaining 50.0% interest. We also committed to provide a $49.6 million interest-only secured construction loan to the 2827 Peachtree joint venture that is scheduled to mature in December 2024 with an option to extend for one year. The loan bears interest at LIBOR plus 300 basis points. As of June 30, 2022, no amounts under the loan have been funded. We determined that we have a variable interest in the 2827 Peachtree joint venture primarily because the entity was designed to pass along interest rate risk, equity price risk and operation risk to us as both a debt and equity holder and Brand as an equity holder. The 2827 Peachtree joint venture was further determined to be a variable interest entity as it requires additional subordinated financial support in the form of a loan because the initial equity investment provided by us and Brand is not sufficient to finance its planned investments and operations. However, since we are not the managing member or lead developer, we concluded we do not have the power to direct matters that most significantly impact the activities of the entity and therefore, do not qualify as the primary beneficiary. Accordingly, the entity is not consolidated. At June 30, 2022, our risk of loss with respect to this arrangement was limited to the carrying value of the investment balance of $13.6 million as no amounts were outstanding under the loan. The assets of the 2827 Peachtree joint venture can be used only to settle obligations of the joint venture and its creditors have no recourse to our wholly owned assets. |
Real Estate Assets
Real Estate Assets | 6 Months Ended |
Jun. 30, 2022 | |
Real Estate [Abstract] | |
Real Estate Assets | Real Estate Assets Acquisitions During the second quarter of 2022, we acquired land in Charlotte for an aggregate purchase price, including capitalized acquisition costs, of $27.0 million. Dispositions During the second quarter of 2022, we sold office buildings and land in Atlanta, Greensboro and Tampa for an aggregate sales price of $100.7 million (before closing credits to buyers of $1.1 million) and recorded aggregate gains on disposition of property of $50.0 million. During the first quarter of 2022, we sold land in Tampa for a sales price of $9.6 million and recorded a gain on disposition of property of $4.1 million. Impairments As more fully described in Note 15, we have entered the Dallas market through the formation of two 50/50 joint ventures to develop Class AA assets in two Dallas submarkets. We plan to fund our entry into Dallas, including our share of the two developments, by exiting the Pittsburgh market. Our Pittsburgh assets, which consist of 2,155,000 square feet of office that were 92.9% occupied as of June 30, 2022, represent approximately 6% of our overall net operating income. |
Intangible Assets and Below Mar
Intangible Assets and Below Market Lease Liabilities | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Below Market Lease Liabilities | Intangible Assets and Below Market Lease Liabilities The following table sets forth total intangible assets and acquisition-related below market lease liabilities, net of accumulated amortization: June 30, December 31, Assets: Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets) $ 399,218 $ 402,013 Less accumulated amortization (155,594) (143,111) $ 243,624 $ 258,902 Liabilities (in accounts payable, accrued expenses and other liabilities): Acquisition-related below market lease liabilities $ 56,888 $ 57,703 Less accumulated amortization (30,849) (28,978) $ 26,039 $ 28,725 The following table sets forth amortization of intangible assets and below market lease liabilities: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization) $ 10,933 $ 8,626 $ 22,178 $ 17,197 Amortization of lease incentives (in rental and other revenues) $ 419 $ 445 $ 869 $ 893 Amortization of acquisition-related intangible assets (in rental and other revenues) $ 821 $ 241 $ 1,651 $ 518 Amortization of acquisition-related below market lease liabilities (in rental and other revenues) $ (1,319) $ (1,421) $ (2,686) $ (2,850) 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) July 1 through December 31, 2022 $ 21,172 $ 812 $ 1,460 $ (2,608) 2023 38,414 1,536 2,745 (4,824) 2024 33,314 1,392 2,531 (4,111) 2025 26,557 1,316 1,667 (2,594) 2026 22,609 1,190 1,336 (2,294) Thereafter 76,813 3,966 4,794 (9,608) $ 218,879 $ 10,212 $ 14,533 $ (26,039) Weighted average remaining amortization periods as of June 30, 2022 (in years) 7.9 8.2 7.4 8.1 |
Mortgages and Notes Payable
Mortgages and Notes Payable | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Mortgages and Notes Payable | Mortgages and Notes Payable The following table sets forth our mortgages and notes payable: June 30, December 31, Secured indebtedness $ 488,000 $ 491,942 Unsecured indebtedness 2,332,895 2,312,180 Less-unamortized debt issuance costs (16,581) (15,207) Total mortgages and notes payable, net $ 2,804,314 $ 2,788,915 At June 30, 2022, our secured mortgage loans were collateralized by real estate assets with an undepreciated book value of $732.3 million. Our $750.0 million unsecured revolving credit facility is scheduled to mature in March 2025 and includes an accordion feature that allows for an additional $400.0 million of borrowing capacity subject to additional lender commitments. Assuming no defaults have occurred, we have an option to extend the maturity for two additional six During the second quarter of 2022, we modified our $200.0 million unsecured bank term loan to extend the maturity date from November 2022 to May 2026. As part of this modification, we also obtained a $150.0 million delayed-draw term loan, which must be drawn in its entirety by August 2022, that is scheduled to mature in May 2027. The interest rate, based on current credit ratings, is SOFR plus a related spread adjustment of 10 basis points and a borrowing spread of 95 basis points. The interest rate is based on the higher of the publicly announced ratings from Moody’s Investors Service or Standard & Poor’s Ratings Services. We may be entitled to a temporary reduction in the interest rate of one basis point provided we meet certain sustainability goals with respect to the ongoing reduction of greenhouse gas emissions. We incurred $2.7 million of debt issuance costs, which are being amortized along with certain existing unamortized debt issuance costs over the remaining term of our modified term loan. We are currently in compliance with financial covenants with respect to our consolidated debt. We have considered our short-term liquidity needs within one • 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 (including the $150.0 million delayed-draw term loan discussed above); • 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 | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments We previously entered into floating-to-fixed interest rate swaps through January 2022 with respect to an aggregate of $50.0 million LIBOR-based borrowings. These swaps effectively fixed the underlying one month LIBOR rate at a weighted average rate of 1.693%. During the first quarter of 2022, these interest rate swaps expired. Our interest rate swaps were designated as and accounted for as cash flow hedges with changes in fair value recorded in other comprehensive income/(loss) each reporting period. We had no collateral requirements related to our interest rate swaps. Amounts reported in accumulated other comprehensive income/(loss) related to derivatives are reclassified to interest expense as interest payments are made on our debt. During the period from July 1, 2022 through June 30, 2023, we estimate that $0.3 million will be reclassified as a net decrease to interest expense. The following table sets forth the fair value of our derivatives: June 30, December 31, Derivatives: Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities: Interest rate swaps $ — $ 60 The following table sets forth the effect of our cash flow hedges on accumulated other comprehensive loss and interest expense: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Derivatives Designated as Cash Flow Hedges: Amount of unrealized losses recognized in accumulated other comprehensive loss on derivatives: Interest rate swaps $ — $ (11) $ — $ (11) Amount of (gains)/losses reclassified out of accumulated other comprehensive loss into interest expense: Interest rate swaps $ (74) $ 126 $ (89) $ 248 |
Noncontrolling Interests
Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2022 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests Noncontrolling Interests in Consolidated Affiliates At June 30, 2022, 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 the Midtown West joint venture. 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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Beginning noncontrolling interests in the Operating Partnership $ 114,570 $ 121,895 $ 111,689 $ 112,499 Adjustment of noncontrolling interests in the Operating Partnership to fair value (28,696) 6,068 (25,528) 15,334 Conversions of Common Units to Common Stock (1,251) (44) (1,251) (44) Net income attributable to noncontrolling interests in the Operating Partnership 1,203 1,624 2,168 3,117 Distributions to noncontrolling interests in the Operating Partnership (1,243) (1,363) (2,495) (2,726) Total noncontrolling interests in the Operating Partnership $ 84,583 $ 128,180 $ 84,583 $ 128,180 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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net income available for common stockholders $ 50,511 $ 59,305 $ 90,771 $ 113,764 Increase in additional paid in capital from conversions of Common Units to Common Stock 1,251 44 1,251 44 Change from net income available for common stockholders and transfers from noncontrolling interests $ 51,762 $ 59,349 $ 92,022 $ 113,808 |
Disclosure About Fair Value of
Disclosure About Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Disclosure About Fair Value of Financial Instruments | Disclosure About Fair Value of Financial Instruments The following summarizes the levels of inputs that we use to measure fair value. Level 1. Quoted prices in active markets for identical assets or liabilities. Our Level 1 asset is our investment in marketable securities that we use to pay benefits under our non-qualified deferred compensation plan. Our Level 1 liability is our non-qualified deferred compensation obligation. The Company’s Level 1 noncontrolling interests in the Operating Partnership relate to the ownership of Common Units by various individuals and entities other than the Company. Level 2. Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. Our Level 2 assets include the fair value of our mortgages and notes receivable. Our Level 2 liabilities include the fair value of our mortgages and notes payable and any interest rate swaps. The fair value of mortgages and notes receivable and mortgages and notes payable is estimated by the income approach 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 any interest rate swaps is determined using the market standard methodology of netting the discounted future fixed cash receipts and the discounted expected variable cash payments. The variable cash payments of interest rate swaps are based on the expectation of future interest rates (forward curves) derived from observed market interest rate curves. In addition, credit valuation adjustments are considered in the fair values to account for potential nonperformance risk, but were concluded to not be significant inputs to the calculation for the periods presented. Level 3. Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Our Level 3 assets include any real estate assets recorded at fair value on a non-recurring basis as a result of our quarterly impairment analysis, which are valued using unobservable local and national industry market data such as comparable sales, appraisals, brokers’ opinions of value and/or the terms of definitive sales contracts. Significant increases or decreases in any valuation inputs in isolation would result in a significantly lower or higher fair value measurement. The following table sets forth our assets and liabilities and the Company’s noncontrolling interests in the Operating Partnership that are measured or disclosed at fair value within the fair value hierarchy: Level 1 Level 2 Level 3 Total Quoted Prices Significant Observable Inputs Significant Unobservable Inputs Fair Value at June 30, 2022: Assets: Mortgages and notes receivable, at fair value (1) $ 1,153 $ — $ 1,153 $ — Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 2,500 2,500 — — Impaired real estate assets 57,418 — — 57,418 Total Assets $ 61,071 $ 2,500 $ 1,153 $ 57,418 Noncontrolling Interests in the Operating Partnership $ 84,583 $ 84,583 $ — $ — Liabilities: Mortgages and notes payable, net, at fair value (1) $ 2,587,436 $ — $ 2,587,436 $ — Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 2,500 2,500 — — Total Liabilities $ 2,589,936 $ 2,500 $ 2,587,436 $ — Fair Value at December 31, 2021: Assets: Mortgages and notes receivable, at fair value (1) $ 1,227 $ — $ 1,227 $ — Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 2,866 2,866 — — Total Assets $ 4,093 $ 2,866 $ 1,227 $ — Noncontrolling Interests in the Operating Partnership $ 111,689 $ 111,689 $ — $ — Liabilities: Mortgages and notes payable, net, at fair value (1) $ 2,907,492 $ — $ 2,907,492 $ — Interest rate swaps (in accounts payable, accrued expenses and other liabilities) 60 — 60 — Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 2,866 2,866 — — Total Liabilities $ 2,910,418 $ 2,866 $ 2,907,552 $ — __________ (1) Amounts are not recorded at fair value on our Consolidated Balance Sheets at June 30, 2022 and December 31, 2021. |
Share-Based Payments
Share-Based Payments | 6 Months Ended |
Jun. 30, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Payments | Share-Based PaymentsDuring the six months ended June 30, 2022, the Company granted 99,975 shares of time-based restricted stock and 81,832 shares of total return-based restricted stock with weighted average grant date fair values per share of $43.58 and $41.94, respectively. We recorded share-based compensation expense of $0.8 million and $1.9 million during the three months ended June 30, 2022 and 2021, and $6.1 million and $4.9 million during the six months ended June 30, 2022 and 2021, respectively. At June 30, 2022, there was $5.1 million of total unrecognized share-based compensation costs, which will be recognized over a weighted average remaining contractual term of 2.2 years. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Cash flow hedges: Beginning balance $ (988) $ (1,340) $ (973) $ (1,462) Unrealized losses on cash flow hedges — (11) — (11) Amortization of cash flow hedges (1) (74) 126 (89) 248 Total accumulated other comprehensive loss $ (1,062) $ (1,225) $ (1,062) $ (1,225) __________ (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 | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 and December 31, 2021, which are considered non-core: June 30, December 31, Assets: Land held for development — $ 3,482 Net real estate assets — 3,482 Prepaid expenses and other assets, net — 36 Real estate and other assets, net, held for sale $ — $ 3,518 |
Earnings Per Share and Per Unit
Earnings Per Share and Per Unit | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Earnings per Common Share - basic: Numerator: Net income $ 52,602 $ 61,844 $ 94,705 $ 118,699 Net (income) attributable to noncontrolling interests in the Operating Partnership (1,203) (1,624) (2,168) (3,117) Net (income) attributable to noncontrolling interests in consolidated affiliates (266) (294) (523) (575) Dividends on Preferred Stock (622) (621) (1,243) (1,243) Net income available for common stockholders $ 50,511 $ 59,305 $ 90,771 $ 113,764 Denominator: Denominator for basic earnings per Common Share – weighted average shares (1) 105,163 104,106 105,049 104,035 Net income available for common stockholders $ 0.48 $ 0.57 $ 0.86 $ 1.09 Earnings per Common Share - diluted: Numerator: Net income $ 52,602 $ 61,844 $ 94,705 $ 118,699 Net (income) attributable to noncontrolling interests in consolidated affiliates (266) (294) (523) (575) Dividends on Preferred Stock (622) (621) (1,243) (1,243) Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership $ 51,714 $ 60,929 $ 92,939 $ 116,881 Denominator: Denominator for basic earnings per Common Share – weighted average shares (1) 105,163 104,106 105,049 104,035 Add: Stock options using the treasury method 5 20 10 14 Noncontrolling interests Common Units 2,486 2,838 2,495 2,838 Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions 107,654 106,964 107,554 106,887 Net income available for common stockholders $ 0.48 $ 0.57 $ 0.86 $ 1.09 __________ (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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Earnings per Common Unit - basic: Numerator: Net income $ 52,602 $ 61,844 $ 94,705 $ 118,699 Net (income) attributable to noncontrolling interests in consolidated affiliates (266) (294) (523) (575) Distributions on Preferred Units (622) (621) (1,243) (1,243) Net income available for common unitholders $ 51,714 $ 60,929 $ 92,939 $ 116,881 Denominator: Denominator for basic earnings per Common Unit – weighted average units (1) 107,240 106,535 107,135 106,464 Net income available for common unitholders $ 0.48 $ 0.57 $ 0.87 $ 1.10 Earnings per Common Unit - diluted: Numerator: Net income $ 52,602 $ 61,844 $ 94,705 $ 118,699 Net (income) attributable to noncontrolling interests in consolidated affiliates (266) (294) (523) (575) Distributions on Preferred Units (622) (621) (1,243) (1,243) Net income available for common unitholders $ 51,714 $ 60,929 $ 92,939 $ 116,881 Denominator: Denominator for basic earnings per Common Unit – weighted average units (1) 107,240 106,535 107,135 106,464 Add: Stock options using the treasury method 5 20 10 14 Denominator for diluted earnings per Common Unit – adjusted weighted average units and assumed conversions 107,245 106,555 107,145 106,478 Net income available for common unitholders $ 0.48 $ 0.57 $ 0.87 $ 1.10 __________ (1) Includes all unvested restricted stock where distributions on such restricted stock are non-forfeitable. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The following tables summarize the rental and other revenues and net operating income, the primary industry property-level performance metric used by our chief operating decision maker and which is defined as rental and other revenues less rental property and other expenses, for each of our reportable segments. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Rental and Other Revenues: Office: Atlanta $ 35,447 $ 35,738 $ 71,001 $ 71,713 Charlotte 16,874 8,917 33,818 18,051 Nashville 42,606 35,578 86,053 70,737 Orlando 13,352 12,730 26,664 25,289 Pittsburgh 14,908 13,949 29,854 28,567 Raleigh 45,535 37,655 91,831 74,697 Richmond 10,432 11,751 20,965 23,213 Tampa 23,556 25,886 47,579 50,310 Total Office Segment 202,710 182,204 407,765 362,577 Other 1,131 3,298 2,454 6,730 Total Rental and Other Revenues $ 203,841 $ 185,502 $ 410,219 $ 369,307 Net Operating Income: Office: Atlanta $ 23,267 $ 23,622 $ 46,948 $ 47,622 Charlotte 12,807 7,035 25,857 14,287 Nashville 31,417 25,824 63,939 50,817 Orlando 8,262 7,782 16,399 15,494 Pittsburgh 9,051 8,411 17,912 17,300 Raleigh 34,020 28,444 68,735 56,580 Richmond 7,363 8,234 14,588 16,287 Tampa 14,615 17,857 30,561 34,497 Total Office Segment 140,802 127,209 284,939 252,884 Other 670 2,067 1,489 4,008 Total Net Operating Income 141,472 129,276 286,428 256,892 Reconciliation to net income: Depreciation and amortization (69,742) (61,949) (139,409) (122,876) Impairments of real estate assets (35,000) — (35,000) — General and administrative expenses (9,591) (10,107) (23,147) (20,059) Interest expense (25,027) (19,001) (49,420) (38,769) Other income 120 332 483 644 Gains on disposition of property 50,044 22,862 54,144 41,799 Equity in earnings of unconsolidated affiliates 326 431 626 1,068 Net income $ 52,602 $ 61,844 $ 94,705 $ 118,699 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On July 19, 2022, we announced a series of planned investment activities. First, we have entered the Dallas market through the formation of joint ventures with Granite Properties to develop the following Class AA assets: Project BBD Own % Rentable Square Feet Pre Leased % Anticipated Total Investment (at 100%) Estimated Completion Estimated Stabilization ($ in thousands) Granite Park Six Frisco/Plano 50% 422,000 12% $ 200,000 4Q 23 1Q 26 23Springs Uptown 50% 642,000 17% $ 460,000 1Q 25 1Q 28 |
Description of Business and S_2
Description of Business and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
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. At June 30, 2022, we have involvement with, and are the primary beneficiary in, an entity that we concluded to be a variable interest entity. As such, this entity is consolidated. Additionally, at June 30, 2022, we have involvement with, but are not the primary beneficiary in, an entity that we concluded to be a variable interest entity. As such, this entity is not consolidated. (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. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Variable Interest Entities [Abstract] | |
Schedule of Variable Interest Entities | The following table sets forth the assets and liabilities of the Midtown West joint venture included on our Consolidated Balance Sheets: June 30, December 31, Net real estate assets $ 58,645 $ 53,191 Cash and cash equivalents $ 1,084 $ 389 Accounts receivable $ 188 $ — Accrued straight-line rents receivable $ 182 $ 121 Deferred leasing costs, net $ 1,588 $ 1,519 Prepaid expenses and other assets, net $ 284 $ 163 Accounts payable, accrued expenses and other liabilities $ 2,749 $ 646 |
Intangible Assets and Below M_2
Intangible Assets and Below Market Lease Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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: June 30, December 31, Assets: Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets) $ 399,218 $ 402,013 Less accumulated amortization (155,594) (143,111) $ 243,624 $ 258,902 Liabilities (in accounts payable, accrued expenses and other liabilities): Acquisition-related below market lease liabilities $ 56,888 $ 57,703 Less accumulated amortization (30,849) (28,978) $ 26,039 $ 28,725 |
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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization) $ 10,933 $ 8,626 $ 22,178 $ 17,197 Amortization of lease incentives (in rental and other revenues) $ 419 $ 445 $ 869 $ 893 Amortization of acquisition-related intangible assets (in rental and other revenues) $ 821 $ 241 $ 1,651 $ 518 Amortization of acquisition-related below market lease liabilities (in rental and other revenues) $ (1,319) $ (1,421) $ (2,686) $ (2,850) |
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) July 1 through December 31, 2022 $ 21,172 $ 812 $ 1,460 $ (2,608) 2023 38,414 1,536 2,745 (4,824) 2024 33,314 1,392 2,531 (4,111) 2025 26,557 1,316 1,667 (2,594) 2026 22,609 1,190 1,336 (2,294) Thereafter 76,813 3,966 4,794 (9,608) $ 218,879 $ 10,212 $ 14,533 $ (26,039) Weighted average remaining amortization periods as of June 30, 2022 (in years) 7.9 8.2 7.4 8.1 |
Mortgages and Notes Payable (Ta
Mortgages and Notes Payable (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Consolidated Mortgages and Notes Payable | The following table sets forth our mortgages and notes payable: June 30, December 31, Secured indebtedness $ 488,000 $ 491,942 Unsecured indebtedness 2,332,895 2,312,180 Less-unamortized debt issuance costs (16,581) (15,207) Total mortgages and notes payable, net $ 2,804,314 $ 2,788,915 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments, Fair Value | The following table sets forth the fair value of our derivatives: June 30, December 31, Derivatives: Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities: Interest rate swaps $ — $ 60 |
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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Derivatives Designated as Cash Flow Hedges: Amount of unrealized losses recognized in accumulated other comprehensive loss on derivatives: Interest rate swaps $ — $ (11) $ — $ (11) Amount of (gains)/losses reclassified out of accumulated other comprehensive loss into interest expense: Interest rate swaps $ (74) $ 126 $ (89) $ 248 |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) - Highwoods Properties, Inc. [Member] | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Beginning noncontrolling interests in the Operating Partnership $ 114,570 $ 121,895 $ 111,689 $ 112,499 Adjustment of noncontrolling interests in the Operating Partnership to fair value (28,696) 6,068 (25,528) 15,334 Conversions of Common Units to Common Stock (1,251) (44) (1,251) (44) Net income attributable to noncontrolling interests in the Operating Partnership 1,203 1,624 2,168 3,117 Distributions to noncontrolling interests in the Operating Partnership (1,243) (1,363) (2,495) (2,726) Total noncontrolling interests in the Operating Partnership $ 84,583 $ 128,180 $ 84,583 $ 128,180 |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net | 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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net income available for common stockholders $ 50,511 $ 59,305 $ 90,771 $ 113,764 Increase in additional paid in capital from conversions of Common Units to Common Stock 1,251 44 1,251 44 Change from net income available for common stockholders and transfers from noncontrolling interests $ 51,762 $ 59,349 $ 92,022 $ 113,808 |
Disclosure About Fair Value o_2
Disclosure About Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 Level 3 Total Quoted Prices Significant Observable Inputs Significant Unobservable Inputs Fair Value at June 30, 2022: Assets: Mortgages and notes receivable, at fair value (1) $ 1,153 $ — $ 1,153 $ — Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 2,500 2,500 — — Impaired real estate assets 57,418 — — 57,418 Total Assets $ 61,071 $ 2,500 $ 1,153 $ 57,418 Noncontrolling Interests in the Operating Partnership $ 84,583 $ 84,583 $ — $ — Liabilities: Mortgages and notes payable, net, at fair value (1) $ 2,587,436 $ — $ 2,587,436 $ — Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 2,500 2,500 — — Total Liabilities $ 2,589,936 $ 2,500 $ 2,587,436 $ — Fair Value at December 31, 2021: Assets: Mortgages and notes receivable, at fair value (1) $ 1,227 $ — $ 1,227 $ — Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 2,866 2,866 — — Total Assets $ 4,093 $ 2,866 $ 1,227 $ — Noncontrolling Interests in the Operating Partnership $ 111,689 $ 111,689 $ — $ — Liabilities: Mortgages and notes payable, net, at fair value (1) $ 2,907,492 $ — $ 2,907,492 $ — Interest rate swaps (in accounts payable, accrued expenses and other liabilities) 60 — 60 — Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 2,866 2,866 — — Total Liabilities $ 2,910,418 $ 2,866 $ 2,907,552 $ — __________ |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Cash flow hedges: Beginning balance $ (988) $ (1,340) $ (973) $ (1,462) Unrealized losses on cash flow hedges — (11) — (11) Amortization of cash flow hedges (1) (74) 126 (89) 248 Total accumulated other comprehensive loss $ (1,062) $ (1,225) $ (1,062) $ (1,225) __________ (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) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 and December 31, 2021, which are considered non-core: June 30, December 31, Assets: Land held for development — $ 3,482 Net real estate assets — 3,482 Prepaid expenses and other assets, net — 36 Real estate and other assets, net, held for sale $ — $ 3,518 |
Earnings Per Share and Per Un_2
Earnings Per Share and Per Unit (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Earnings per Common Share - basic: Numerator: Net income $ 52,602 $ 61,844 $ 94,705 $ 118,699 Net (income) attributable to noncontrolling interests in the Operating Partnership (1,203) (1,624) (2,168) (3,117) Net (income) attributable to noncontrolling interests in consolidated affiliates (266) (294) (523) (575) Dividends on Preferred Stock (622) (621) (1,243) (1,243) Net income available for common stockholders $ 50,511 $ 59,305 $ 90,771 $ 113,764 Denominator: Denominator for basic earnings per Common Share – weighted average shares (1) 105,163 104,106 105,049 104,035 Net income available for common stockholders $ 0.48 $ 0.57 $ 0.86 $ 1.09 Earnings per Common Share - diluted: Numerator: Net income $ 52,602 $ 61,844 $ 94,705 $ 118,699 Net (income) attributable to noncontrolling interests in consolidated affiliates (266) (294) (523) (575) Dividends on Preferred Stock (622) (621) (1,243) (1,243) Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership $ 51,714 $ 60,929 $ 92,939 $ 116,881 Denominator: Denominator for basic earnings per Common Share – weighted average shares (1) 105,163 104,106 105,049 104,035 Add: Stock options using the treasury method 5 20 10 14 Noncontrolling interests Common Units 2,486 2,838 2,495 2,838 Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions 107,654 106,964 107,554 106,887 Net income available for common stockholders $ 0.48 $ 0.57 $ 0.86 $ 1.09 __________ |
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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Earnings per Common Unit - basic: Numerator: Net income $ 52,602 $ 61,844 $ 94,705 $ 118,699 Net (income) attributable to noncontrolling interests in consolidated affiliates (266) (294) (523) (575) Distributions on Preferred Units (622) (621) (1,243) (1,243) Net income available for common unitholders $ 51,714 $ 60,929 $ 92,939 $ 116,881 Denominator: Denominator for basic earnings per Common Unit – weighted average units (1) 107,240 106,535 107,135 106,464 Net income available for common unitholders $ 0.48 $ 0.57 $ 0.87 $ 1.10 Earnings per Common Unit - diluted: Numerator: Net income $ 52,602 $ 61,844 $ 94,705 $ 118,699 Net (income) attributable to noncontrolling interests in consolidated affiliates (266) (294) (523) (575) Distributions on Preferred Units (622) (621) (1,243) (1,243) Net income available for common unitholders $ 51,714 $ 60,929 $ 92,939 $ 116,881 Denominator: Denominator for basic earnings per Common Unit – weighted average units (1) 107,240 106,535 107,135 106,464 Add: Stock options using the treasury method 5 20 10 14 Denominator for diluted earnings per Common Unit – adjusted weighted average units and assumed conversions 107,245 106,555 107,145 106,478 Net income available for common unitholders $ 0.48 $ 0.57 $ 0.87 $ 1.10 __________ (1) Includes all unvested restricted stock where distributions on such restricted stock are non-forfeitable. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | The following tables summarize the rental and other revenues and net operating income, the primary industry property-level performance metric used by our chief operating decision maker and which is defined as rental and other revenues less rental property and other expenses, for each of our reportable segments. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Rental and Other Revenues: Office: Atlanta $ 35,447 $ 35,738 $ 71,001 $ 71,713 Charlotte 16,874 8,917 33,818 18,051 Nashville 42,606 35,578 86,053 70,737 Orlando 13,352 12,730 26,664 25,289 Pittsburgh 14,908 13,949 29,854 28,567 Raleigh 45,535 37,655 91,831 74,697 Richmond 10,432 11,751 20,965 23,213 Tampa 23,556 25,886 47,579 50,310 Total Office Segment 202,710 182,204 407,765 362,577 Other 1,131 3,298 2,454 6,730 Total Rental and Other Revenues $ 203,841 $ 185,502 $ 410,219 $ 369,307 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Net Operating Income: Office: Atlanta $ 23,267 $ 23,622 $ 46,948 $ 47,622 Charlotte 12,807 7,035 25,857 14,287 Nashville 31,417 25,824 63,939 50,817 Orlando 8,262 7,782 16,399 15,494 Pittsburgh 9,051 8,411 17,912 17,300 Raleigh 34,020 28,444 68,735 56,580 Richmond 7,363 8,234 14,588 16,287 Tampa 14,615 17,857 30,561 34,497 Total Office Segment 140,802 127,209 284,939 252,884 Other 670 2,067 1,489 4,008 Total Net Operating Income 141,472 129,276 286,428 256,892 Reconciliation to net income: Depreciation and amortization (69,742) (61,949) (139,409) (122,876) Impairments of real estate assets (35,000) — (35,000) — General and administrative expenses (9,591) (10,107) (23,147) (20,059) Interest expense (25,027) (19,001) (49,420) (38,769) Other income 120 332 483 644 Gains on disposition of property 50,044 22,862 54,144 41,799 Equity in earnings of unconsolidated affiliates 326 431 626 1,068 Net income $ 52,602 $ 61,844 $ 94,705 $ 118,699 |
Subsequent Events (Tables)
Subsequent Events (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Schedule of Subsequent Events | First, we have entered the Dallas market through the formation of joint ventures with Granite Properties to develop the following Class AA assets: Project BBD Own % Rentable Square Feet Pre Leased % Anticipated Total Investment (at 100%) Estimated Completion Estimated Stabilization ($ in thousands) Granite Park Six Frisco/Plano 50% 422,000 12% $ 200,000 4Q 23 1Q 26 23Springs Uptown 50% 642,000 17% $ 460,000 1Q 25 1Q 28 |
Description of Business and S_3
Description of Business and Significant Accounting Policies (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 USD ($) ft² shares | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) ft² $ / shares shares | Jun. 30, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 ft² | |
Description of Business [Abstract] | ||||||
Rentable square feet of commercial real estate properties (in sq feet) | ft² | 27,600,000 | 27,600,000 | ||||
Rentable square feet of commercial real estate office properties under development (in sq feet) | ft² | 600,000 | 600,000 | ||||
Rentable square feet of potential office build (in sq feet) | ft² | 4,900,000 | 4,900,000 | ||||
Net proceeds of Common Stock sold during the period | $ 262 | $ 7,095 | $ 4,435 | $ 5,897 | ||
Self insurance liability | $ 500 | $ 500 | ||||
Submarket Acquisition | ||||||
Description of Business [Abstract] | ||||||
Rentable square feet of commercial real estate properties (in sq feet) | ft² | 367,000 | 367,000 | 841,000 | |||
Acquisition purchase price | $ 203,000 | |||||
Capitalized acquisition costs | $ 3,900 | $ 3,900 | ||||
Percentage of rentable square feet occupied (in hundredths) | 79% | 79% | ||||
Earnest money deposits | $ 37,500 | $ 37,500 | ||||
Highwoods Properties, Inc. [Member] | ||||||
Description of Business [Abstract] | ||||||
Common Units of partnership owned by the Company (in shares) | shares | 104,800,000 | 104,800,000 | ||||
Percentage of ownership of Common Units (in hundredths) | 97.70% | 97.70% | ||||
Common Units redeemed for a like number of common shares of stock (in shares) | shares | 30,909 | |||||
Highwoods Properties, Inc. [Member] | ATM Equity Offering | ||||||
Description of Business [Abstract] | ||||||
Net proceeds of Common Stock sold during the period | $ 6,000 | |||||
Number of Common Stock sold during the period (in shares) | shares | 130,011 | |||||
Average price of Common Stock sold during the period (in dollars per share) | $ / shares | $ 46.50 | |||||
Highwoods Properties, Inc. [Member] | ATM Equity Offering | Maximum [Member] | ||||||
Description of Business [Abstract] | ||||||
Net proceeds of Common Stock sold during the period | $ 300,000 | |||||
Highwoods Realty Limited Partnership [Member] | ||||||
Description of Business [Abstract] | ||||||
Common Units of partnership not owned by the Company (in shares) | shares | 2,500,000 | 2,500,000 |
Leases ASC 842 (Details)
Leases ASC 842 (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Lessor Disclosure [Abstract] | ||||
Rental and other revenues related to operating lease payments | $ 200.7 | $ 182.4 | $ 404.3 | $ 362.4 |
Variable lease income | $ 17.7 | $ 14.5 | $ 35 | $ 29 |
Minimum [Member] | ||||
Lessor Disclosure [Abstract] | ||||
Operating leases, term of leases (in years) | 3 years | 3 years | ||
Maximum [Member] | ||||
Lessor Disclosure [Abstract] | ||||
Operating leases, term of leases (in years) | 10 years | 10 years |
Variable Interest Entities (Det
Variable Interest Entities (Details) | 12 Months Ended | |||
Dec. 31, 2021 USD ($) ft² | Dec. 31, 2019 USD ($) ft² | Jun. 30, 2022 USD ($) ft² | Jun. 30, 2021 USD ($) | |
Variable Interest Entities [Line Items] | ||||
Rentable square feet of office property under development (in sq feet) | ft² | 600,000 | |||
Assets and liabilities of consolidated variable interest entity [Abstract] | ||||
Net real estate assets | $ 5,032,033,000 | $ 4,943,451,000 | ||
Cash and cash equivalents | 23,152,000 | 25,045,000 | $ 6,535,000 | |
Accounts receivable | 14,002,000 | 17,938,000 | ||
Accrued straight-line rents receivable | 268,324,000 | 277,086,000 | ||
Deferred leasing costs, net | 258,902,000 | 243,624,000 | ||
Prepaid expense and other assets, net | 78,551,000 | 112,937,000 | ||
Accounts payable, accrued expenses and other liabilities | $ 294,976,000 | 271,716,000 | ||
Variable Interest Entity, Non Primary Beneficiary [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Rentable square feet of office property under development (in sq feet) | ft² | 135,000 | |||
Total anticipated development costs | $ 79,000,000 | |||
Contribution of cash to acquire interest in joint venture | $ 13,300,000 | |||
Interest in joint venture (in hundredths) | 50% | |||
Advance to affiliate | $ 49,600,000 | |||
Amount of loan funded to affiliate | 0 | |||
Term of optional extension | 1 year | |||
Risk of loss limited to carrying value | 13,600,000 | |||
Variable Interest Entity, Non Primary Beneficiary [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Variable interest rate basis | LIBOR | |||
Interest rate, basis spread (in hundredths) | 3% | |||
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Rentable square feet of office property under development (in sq feet) | ft² | 150,000 | |||
Total anticipated development costs | $ 71,300,000 | |||
Contribution of cash to acquire interest in joint venture | $ 20,000,000 | |||
Interest in joint venture (in hundredths) | 80% | |||
Advance to affiliate | $ 46,300,000 | |||
Amount of loan funded to affiliate | 33,200,000 | |||
Assets and liabilities of consolidated variable interest entity [Abstract] | ||||
Net real estate assets | $ 53,191,000 | 58,645,000 | ||
Cash and cash equivalents | 389,000 | 1,084,000 | ||
Accounts receivable | 0 | 188,000 | ||
Accrued straight-line rents receivable | 121,000 | 182,000 | ||
Deferred leasing costs, net | 1,519,000 | 1,588,000 | ||
Prepaid expense and other assets, net | 163,000 | 284,000 | ||
Accounts payable, accrued expenses and other liabilities | 646,000 | $ 2,749,000 | ||
Variable Interest Entity, Primary Beneficiary [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Variable interest rate basis | LIBOR | |||
Interest rate, basis spread (in hundredths) | 2.50% | |||
Variable Interest Entity, Partner Interest [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Partner's interest in joint venture (in hundredths) | 20% | |||
Variable Interest Entity, Partner Interest [Member] | Variable Interest Entity, Non Primary Beneficiary [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Contribution of cash to acquire interest in joint venture | 5,600,000 | |||
Partner's contribution of property to acquire interest in joint venture | $ 7,700,000 | |||
Partner's interest in joint venture (in hundredths) | 50% | |||
Variable Interest Entity, Partner Interest [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Partner's contribution of property to acquire interest in joint venture | $ 5,000,000 | |||
Partner's interest in joint venture (in hundredths) | 20% |
Real Estate Assets (Details)
Real Estate Assets (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 USD ($) ft² numberOfJointVentures numberOfMarkets | Mar. 31, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) ft² numberOfJointVentures numberOfMarkets | Jun. 30, 2021 USD ($) | |
Dispositions [Abstract] | |||||
Gains on disposition of property | $ 50,044 | $ 22,862 | $ 54,144 | $ 41,799 | |
Impairments [Abstract] | |||||
Rentable square feet of commercial real estate office properties under development (in sq feet) | ft² | 600,000 | 600,000 | |||
Impairments of real estate assets | $ 35,000 | $ 0 | $ 35,000 | $ 0 | |
Charlotte Land Acquisition [Member] | |||||
Acquisitions [Abstract] | |||||
Acquisition purchase price | 27,000 | ||||
2022 Dispositions [Member] | |||||
Dispositions [Abstract] | |||||
Sale price of real estate | 100,700 | $ 9,600 | |||
Closing credits excluded | 1,100 | ||||
Gains on disposition of property | $ 50,000 | $ 4,100 | |||
Dallas Joint Ventures [Member] | |||||
Impairments [Abstract] | |||||
Number of joint ventures formed | numberOfJointVentures | 2 | 2 | |||
Number of submarkets entered | numberOfMarkets | 2 | 2 | |||
Pittsburgh Division Office [Member] | |||||
Impairments [Abstract] | |||||
Rentable square feet of commercial real estate office properties under development (in sq feet) | ft² | 2,155,000 | 2,155,000 | |||
Percent of NOI (in hundredths) | 6% | 6% | |||
Percentage of rentable square feet occupied (in hundredths) | 92.90% | 92.90% | |||
EQT Plaza Impairment [Member] | |||||
Impairments [Abstract] | |||||
Rentable square feet of commercial real estate office properties under development (in sq feet) | ft² | 616,000 | 616,000 | |||
Impairments of real estate assets | $ 35,000 | ||||
Square footage occupied by customer (in sq ft) | ft² | 317,000 | 317,000 |
Intangible Assets and Below M_3
Intangible Assets and Below Market Lease Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Assets: | |||||
Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets) | $ 399,218 | $ 399,218 | $ 402,013 | ||
Deferred leasing costs, accumulated amortization | (155,594) | (155,594) | (143,111) | ||
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | 243,624 | 243,624 | 258,902 | ||
Liabilities (in accounts payable, accrued expenses and other liabilities): | |||||
Acquisition-related below market lease liabilities, gross | 56,888 | 56,888 | 57,703 | ||
Acquisition-related below market lease liabilities, accumulated amortization | (30,849) | (30,849) | (28,978) | ||
Acquisition-related below market lease liabilities, net | 26,039 | 26,039 | $ 28,725 | ||
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 | 218,879 | 218,879 | |||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||||
Amortization of intangible assets | 10,933 | $ 8,626 | 22,178 | $ 17,197 | |
Lease Incentives (in Rental and Other Revenues) [Member] | |||||
Assets: | |||||
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | 10,212 | 10,212 | |||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||||
Amortization of intangible assets | 419 | 445 | 869 | 893 | |
Acquisition-Related Intangible Assets (in Rental and Other Revenues) [Member] | |||||
Assets: | |||||
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | 14,533 | 14,533 | |||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||||
Amortization of intangible assets | 821 | 241 | 1,651 | 518 | |
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 | 26,039 | 26,039 | |||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||||
Amortization of acquisition-related below market lease liabilities | $ (1,319) | $ (1,421) | $ (2,686) | $ (2,850) |
Intangible Assets and Below M_4
Intangible Assets and Below Market Lease Liabilities - Scheduled Future Amortization (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Scheduled future amortization of intangible assets [Abstract] | ||
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | $ 243,624 | $ 258,902 |
Scheduled future amortization of below market lease liabilities [Abstract] | ||
Total scheduled future amortization of acquisition-related below market lease liabilities | (26,039) | $ (28,725) |
Deferred Leasing Costs and Acquisition-Related Intangible Assets (in Depreciation and Amortization) [Member] | ||
Scheduled future amortization of intangible assets [Abstract] | ||
July 1 through December 31, 2022 | 21,172 | |
2023 | 38,414 | |
2024 | 33,314 | |
2025 | 26,557 | |
2026 | 22,609 | |
Thereafter | 76,813 | |
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | $ 218,879 | |
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract] | ||
Finite-lived intangible assets, average useful life (in years) | 7 years 10 months 24 days | |
Lease Incentives (in Rental and Other Revenues) [Member] | ||
Scheduled future amortization of intangible assets [Abstract] | ||
July 1 through December 31, 2022 | $ 812 | |
2023 | 1,536 | |
2024 | 1,392 | |
2025 | 1,316 | |
2026 | 1,190 | |
Thereafter | 3,966 | |
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | $ 10,212 | |
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 | |
Acquisition-Related Intangible Assets (in Rental and Other Revenues) [Member] | ||
Scheduled future amortization of intangible assets [Abstract] | ||
July 1 through December 31, 2022 | $ 1,460 | |
2023 | 2,745 | |
2024 | 2,531 | |
2025 | 1,667 | |
2026 | 1,336 | |
Thereafter | 4,794 | |
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | $ 14,533 | |
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract] | ||
Finite-lived intangible assets, average useful life (in years) | 7 years 4 months 24 days | |
Acquisition-Related Below Market Lease Liabilities (in Rental and Other Revenues) [Member] | ||
Scheduled future amortization of below market lease liabilities [Abstract] | ||
July 1 through December 31, 2022 | $ (2,608) | |
2023 | (4,824) | |
2024 | (4,111) | |
2025 | (2,594) | |
2026 | (2,294) | |
Thereafter | (9,608) | |
Total scheduled future amortization of acquisition-related below market lease liabilities | $ (26,039) | |
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract] | ||
Finite-lived below market lease liabilities, average useful life (in years) | 8 years 1 month 6 days |
Mortgages and Notes Payable (De
Mortgages and Notes Payable (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) extension | Jul. 19, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Debt Instrument [Line Items] | ||||
Mortgages and notes payable | $ 2,804,314,000 | $ 2,804,314,000 | $ 2,788,915,000 | |
Unamortized debt issuance costs | (16,581,000) | (16,581,000) | (15,207,000) | |
Debt issuance costs | $ 2,700,000 | 2,700,000 | ||
Maximum liquidity requirements | 1 year | |||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity on credit facility | $ 750,000,000 | 750,000,000 | ||
Additional borrowing capacity on revolving credit facility | 400,000,000 | $ 400,000,000 | ||
Number of additional extensions | extension | 2 | |||
Term of optional extension | 6 months | |||
Temporary reduction in interest rate due to sustainability goals (in hundredths) | 0.01% | |||
Amount outstanding on revolving credit facility | 90,000,000 | $ 90,000,000 | ||
Outstanding letters of credit on revolving credit facility | 100,000 | 100,000 | ||
Unused borrowing capacity on revolving credit facility | 659,900,000 | 659,900,000 | ||
Variable Rate Term Loan Due 2026 | ||||
Debt Instrument [Line Items] | ||||
Principal amount of debt | 200,000,000 | $ 200,000,000 | ||
Variable Rate Term Loan Due 2027 | ||||
Debt Instrument [Line Items] | ||||
Temporary reduction in interest rate due to sustainability goals (in hundredths) | 0.01% | |||
Principal amount of debt | 150,000,000 | $ 150,000,000 | ||
3.625% (3.752% Effective Rate) Notes Due 2023 | ||||
Debt Instrument [Line Items] | ||||
Principal amount of debt | 250,000,000 | 250,000,000 | ||
Secured indebtedness [Member] | ||||
Debt Instrument [Line Items] | ||||
Mortgages and notes payable | 488,000,000 | 488,000,000 | 491,942,000 | |
Aggregate undepreciated book value of secured real estate assets | 732,300,000 | 732,300,000 | ||
Unsecured indebtedness [Member] | ||||
Debt Instrument [Line Items] | ||||
Mortgages and notes payable | $ 2,332,895,000 | $ 2,332,895,000 | $ 2,312,180,000 | |
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% | |||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Facility interest rate basis | SOFR | |||
Interest rate, basis spread (in hundredths) | 0.85% | |||
Annual facility fee (in hundredths) | 0.20% | |||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Variable Rate Term Loan Due 2027 | ||||
Debt Instrument [Line Items] | ||||
Interest rate, basis spread (in hundredths) | 0.95% | |||
Variable interest rate basis | SOFR | |||
SOFR Related Spread Adjustment [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate, basis spread (in hundredths) | 0.10% | |||
SOFR Related Spread Adjustment [Member] | Variable Rate Term Loan Due 2027 | ||||
Debt Instrument [Line Items] | ||||
Interest rate, basis spread (in hundredths) | 0.10% | |||
Subsequent Event [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Amount outstanding on revolving credit facility | $ 130,000,000 | |||
Outstanding letters of credit on revolving credit facility | 100,000 | |||
Unused borrowing capacity on revolving credit facility | $ 619,900,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Derivatives, Fair Value [Line Items] | ||||||
Expected net decrease to interest expense | $ (300) | $ (300) | ||||
Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities: | ||||||
Interest rate swaps | 0 | 0 | $ 60 | |||
Amount of unrealized losses recognized in accumulated other comprehensive loss on derivatives: | ||||||
Interest rate swaps | 0 | $ (11) | 0 | $ (11) | ||
Amount of (gains)/losses reclassified out of accumulated other comprehensive loss into interest expense: | ||||||
Interest rate swaps | $ (74) | $ 126 | $ (89) | $ 248 | ||
Floating to Fixed Interest Rate Swaps (2017) [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Amount of borrowings outstanding, subject to swaps | $ 50,000 | |||||
Underlying treasury rate term (in years) | 1 month | |||||
Weighted average interest rate under derivative instruments (in hundredths) | 1.693% |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Noncontrolling Interests in the Operating Partnership [Roll Forward] | ||||
Beginning noncontrolling interests in the Operating Partnership | $ 111,689 | |||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | $ (28,696) | $ 6,068 | (25,528) | $ 15,334 |
Conversions of Common Units to Common Stock | (1,251) | (44) | (1,251) | (44) |
Net income attributable to noncontrolling interests in the Operating Partnership | 1,203 | 1,624 | 2,168 | 3,117 |
Distributions to noncontrolling interests in the Operating Partnership | (2,495) | (2,726) | ||
Total noncontrolling interests in the Operating Partnership | 84,583 | 84,583 | ||
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership [Abstract] | ||||
Net income available for common stockholders | 50,511 | 59,305 | 90,771 | 113,764 |
Highwoods Properties, Inc. [Member] | ||||
Noncontrolling Interests in the Operating Partnership [Roll Forward] | ||||
Beginning noncontrolling interests in the Operating Partnership | 114,570 | 121,895 | 111,689 | 112,499 |
Adjustment of noncontrolling interests in the Operating Partnership to fair value | (28,696) | 6,068 | (25,528) | 15,334 |
Conversions of Common Units to Common Stock | (1,251) | (44) | (1,251) | (44) |
Net income attributable to noncontrolling interests in the Operating Partnership | 1,203 | 1,624 | 2,168 | 3,117 |
Distributions to noncontrolling interests in the Operating Partnership | (1,243) | (1,363) | (2,495) | (2,726) |
Total noncontrolling interests in the Operating Partnership | 84,583 | 128,180 | 84,583 | 128,180 |
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership [Abstract] | ||||
Net income available for common stockholders | 50,511 | 59,305 | 90,771 | 113,764 |
Increase in additional paid in capital from conversions of Common Units to Common Stock | 1,251 | 44 | 1,251 | 44 |
Change from net income available for common stockholder and transfers from noncontrolling interests | $ 51,762 | $ 59,349 | $ 92,022 | $ 113,808 |
Richmond Joint Venture [Member] | ||||
Noncontrolling Interests in Consolidated Affiliates [Abstract] | ||||
Consolidated joint venture, partner's interest (in hundredths) | 50% | 50% | ||
Midtown One Joint Venture [Member] | ||||
Noncontrolling Interests in Consolidated Affiliates [Abstract] | ||||
Consolidated joint venture, partner's interest (in hundredths) | 20% | 20% |
Disclosure About Fair Value o_3
Disclosure About Fair Value of Financial Instruments - Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets: | ||
Mortgages and notes receivable, at fair value | $ 1,153 | $ 1,227 |
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) | 2,500 | 2,866 |
Impaired real estate assets | 57,418 | |
Total Assets | 61,071 | 4,093 |
Liabilities: | ||
Mortgages and notes payable, net, at fair value | 2,587,436 | 2,907,492 |
Interest rate swaps (in accounts payable, accrued expenses and other liabilities) | 60 | |
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 2,500 | 2,866 |
Total Liabilities | 2,589,936 | 2,910,418 |
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) | 2,500 | 2,866 |
Impaired real estate assets | 0 | |
Total Assets | 2,500 | 2,866 |
Liabilities: | ||
Mortgages and notes payable, net, at fair value | 0 | 0 |
Interest rate swaps (in accounts payable, accrued expenses and other liabilities) | 0 | |
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 2,500 | 2,866 |
Total Liabilities | 2,500 | 2,866 |
Level 2 [Member] | ||
Assets: | ||
Mortgages and notes receivable, at fair value | 1,153 | 1,227 |
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) | 0 | 0 |
Impaired real estate assets | 0 | |
Total Assets | 1,153 | 1,227 |
Liabilities: | ||
Mortgages and notes payable, net, at fair value | 2,587,436 | 2,907,492 |
Interest rate swaps (in accounts payable, accrued expenses and other liabilities) | 60 | |
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 0 | 0 |
Total Liabilities | 2,587,436 | 2,907,552 |
Level 3 [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) | 0 | 0 |
Impaired real estate assets | 57,418 | |
Total Assets | 57,418 | 0 |
Liabilities: | ||
Mortgages and notes payable, net, at fair value | 0 | 0 |
Interest rate swaps (in accounts payable, accrued expenses and other liabilities) | 0 | |
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 0 | 0 |
Total Liabilities | 0 | 0 |
Highwoods Properties, Inc. [Member] | ||
Assets: | ||
Noncontrolling Interests in the Operating Partnership | 84,583 | 111,689 |
Highwoods Properties, Inc. [Member] | Level 1 [Member] | ||
Assets: | ||
Noncontrolling Interests in the Operating Partnership | 84,583 | 111,689 |
Highwoods Properties, Inc. [Member] | Level 2 [Member] | ||
Assets: | ||
Noncontrolling Interests in the Operating Partnership | 0 | 0 |
Highwoods Properties, Inc. [Member] | Level 3 [Member] | ||
Assets: | ||
Noncontrolling Interests in the Operating Partnership | $ 0 | $ 0 |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures - Fair Value Measurement Inputs and Valuation Techniques (Details) | Jun. 30, 2022 |
Measurement Input, Cost to Sell [Member] | |
Valuation Technique and Input [Abstract] | |
Impairment key assumption (in hundredths) | 3.50% |
Measurement Input, Discount Rate [Member] | Minimum [Member] | |
Valuation Technique and Input [Abstract] | |
Impairment key assumption (in hundredths) | 13.20% |
Measurement Input, Discount Rate [Member] | Maximum [Member] | |
Valuation Technique and Input [Abstract] | |
Impairment key assumption (in hundredths) | 16.20% |
Measurement Input, Cap Rate [Member] | |
Valuation Technique and Input [Abstract] | |
Impairment key assumption (in hundredths) | 8% |
Share-Based Payments (Details)
Share-Based Payments (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 800 | $ 1,900 | $ 6,136 | $ 4,855 |
Total unrecognized share-based compensation costs | $ 5,100 | $ 5,100 | ||
Weighted average remaining contractual term for recognition of unrecognized share-based compensation costs (in years) | 2 years 2 months 12 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) | 99,975 | |||
Weighted average grant date fair value of each restricted stock share granted (in dollars per share) | $ 43.58 | |||
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) | 81,832 | |||
Weighted average grant date fair value of each restricted stock share granted (in dollars per share) | $ 41.94 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Accumulated Other Comprehensive Loss Calculation [Roll Forward] | ||||
Beginning balance | $ (988) | $ (1,340) | $ (973) | $ (1,462) |
Unrealized losses on cash flow hedges | 0 | (11) | 0 | (11) |
Amortization of cash flow hedges | (74) | 126 | (89) | 248 |
Total accumulated other comprehensive loss | $ (1,062) | $ (1,225) | $ (1,062) | $ (1,225) |
Real Estate and Other Assets _3
Real Estate and Other Assets Held For Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Real Estate and Other Assets Held For Sale [Abstract] | ||
Land held for development | $ 0 | $ 3,482 |
Net real estate assets | 0 | 3,482 |
Prepaid expenses and other assets, net | 0 | 36 |
Real estate and other assets, net, held for sale | $ 0 | $ 3,518 |
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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings per Common Share and Per Unit - basic: [Abstract] | ||||
Net income | $ 52,602 | $ 61,844 | $ 94,705 | $ 118,699 |
Net (income) attributable to noncontrolling interests in the Operating Partnership | (1,203) | (1,624) | (2,168) | (3,117) |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (266) | (294) | (523) | (575) |
Dividends on Preferred Stock | (622) | (621) | (1,243) | (1,243) |
Net income available for common stockholders | $ 50,511 | $ 59,305 | $ 90,771 | $ 113,764 |
Denominator: | ||||
Denominator for basic earnings per Common Share - weighted average shares (in shares) | 105,163 | 104,106 | 105,049 | 104,035 |
Earnings per Common Share - basic: | ||||
Net income available for common stockholders (in dollars per share) | $ 0.48 | $ 0.57 | $ 0.86 | $ 1.09 |
Earnings per Common Share and Per Unit - diluted: [Abstract] | ||||
Net income | $ 52,602 | $ 61,844 | $ 94,705 | $ 118,699 |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (266) | (294) | (523) | (575) |
Dividends on Preferred Stock | (622) | (621) | (1,243) | (1,243) |
Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership | $ 51,714 | $ 60,929 | $ 92,939 | $ 116,881 |
Denominator: | ||||
Denominator for basic earnings per Common Share - weighted average shares (in shares) | 105,163 | 104,106 | 105,049 | 104,035 |
Stock options using the treasury method (in shares) | 5 | 20 | 10 | 14 |
Noncontrolling interests Common Units (in shares) | 2,486 | 2,838 | 2,495 | 2,838 |
Denominator for diluted earnings per Common Share - adjusted weighted average shares and assumed conversions (in shares) | 107,654 | 106,964 | 107,554 | 106,887 |
Earnings per Common Share - diluted: | ||||
Net income available for common stockholders (in dollars per share) | $ 0.48 | $ 0.57 | $ 0.86 | $ 1.09 |
Highwoods Realty Limited Partnership [Member] | ||||
Earnings per Common Share and Per Unit - basic: [Abstract] | ||||
Net income | $ 52,602 | $ 61,844 | $ 94,705 | $ 118,699 |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (266) | (294) | (523) | (575) |
Distributions on Preferred Units | (622) | (621) | (1,243) | (1,243) |
Net income available for common unitholders | $ 51,714 | $ 60,929 | $ 92,939 | $ 116,881 |
Denominator: | ||||
Denominator for basic earnings per Common Unit - weighted average units (in shares) | 107,240 | 106,535 | 107,135 | 106,464 |
Earnings per Common Unit - basic: | ||||
Net income available for common unitholders (in dollars per share) | $ 0.48 | $ 0.57 | $ 0.87 | $ 1.10 |
Earnings per Common Share and Per Unit - diluted: [Abstract] | ||||
Net income | $ 52,602 | $ 61,844 | $ 94,705 | $ 118,699 |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (266) | (294) | (523) | (575) |
Distributions on Preferred Units | (622) | (621) | (1,243) | (1,243) |
Net income available for common unitholders | $ 51,714 | $ 60,929 | $ 92,939 | $ 116,881 |
Denominator: | ||||
Denominator for basic earnings per Common Unit - weighted average units (in shares) | 107,240 | 106,535 | 107,135 | 106,464 |
Stock options using the treasury method (in shares) | 5 | 20 | 10 | 14 |
Denominator for diluted earnings per Common Unit - adjusted weighted average units and assumed conversions (in shares) | 107,245 | 106,555 | 107,145 | 106,478 |
Earnings per Common Unit - diluted: | ||||
Net income available for common unitholders (in dollars per share) | $ 0.48 | $ 0.57 | $ 0.87 | $ 1.10 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | $ 203,841 | $ 185,502 | $ 410,219 | $ 369,307 |
Total Net Operating Income | 141,472 | 129,276 | 286,428 | 256,892 |
Reconciliation to net income: | ||||
Depreciation and amortization | (69,742) | (61,949) | (139,409) | (122,876) |
Impairments of real estate assets | (35,000) | 0 | (35,000) | 0 |
General and administrative expenses | (9,591) | (10,107) | (23,147) | (20,059) |
Interest expense | (25,027) | (19,001) | (49,420) | (38,769) |
Other income | 120 | 332 | 483 | 644 |
Gains on disposition of property | 50,044 | 22,862 | 54,144 | 41,799 |
Equity in earnings of unconsolidated affiliates | 326 | 431 | 626 | 1,068 |
Net income | 52,602 | 61,844 | 94,705 | 118,699 |
Total Office Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 202,710 | 182,204 | 407,765 | 362,577 |
Total Net Operating Income | 140,802 | 127,209 | 284,939 | 252,884 |
Office Atlanta, GA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 35,447 | 35,738 | 71,001 | 71,713 |
Total Net Operating Income | 23,267 | 23,622 | 46,948 | 47,622 |
Office Charlotte, NC [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 16,874 | 8,917 | 33,818 | 18,051 |
Total Net Operating Income | 12,807 | 7,035 | 25,857 | 14,287 |
Office Nashville, TN [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 42,606 | 35,578 | 86,053 | 70,737 |
Total Net Operating Income | 31,417 | 25,824 | 63,939 | 50,817 |
Office Orlando, FL [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 13,352 | 12,730 | 26,664 | 25,289 |
Total Net Operating Income | 8,262 | 7,782 | 16,399 | 15,494 |
Office Pittsburgh, PA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 14,908 | 13,949 | 29,854 | 28,567 |
Total Net Operating Income | 9,051 | 8,411 | 17,912 | 17,300 |
Office Raleigh, NC [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 45,535 | 37,655 | 91,831 | 74,697 |
Total Net Operating Income | 34,020 | 28,444 | 68,735 | 56,580 |
Office Richmond, VA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 10,432 | 11,751 | 20,965 | 23,213 |
Total Net Operating Income | 7,363 | 8,234 | 14,588 | 16,287 |
Office Tampa, FL [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 23,556 | 25,886 | 47,579 | 50,310 |
Total Net Operating Income | 14,615 | 17,857 | 30,561 | 34,497 |
Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 1,131 | 3,298 | 2,454 | 6,730 |
Total Net Operating Income | $ 670 | $ 2,067 | $ 1,489 | $ 4,008 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands | Jul. 19, 2022 USD ($) ft² | Jun. 30, 2022 ft² |
Subsequent Event [Line Items] | ||
Rentable square feet of commercial real estate properties (in sq feet) | ft² | 27,600,000 | |
Pittsburgh Division Office [Member] | ||
Subsequent Event [Line Items] | ||
Percentage of rentable square feet occupied (in hundredths) | 92.90% | |
Percent of NOI (in hundredths) | 6% | |
Subsequent Event [Member] | Dallas Joint Ventures [Member] | ||
Subsequent Event [Line Items] | ||
Percentage of equity interest in joint venture (in hundredths) | 50% | |
Cash funded to acquire interest in joint venture | $ | $ 55,700 | |
Construction loan related to joint venture development | $ | $ 380,000 | |
Subsequent Event [Member] | Granite Park Six [Member] | ||
Subsequent Event [Line Items] | ||
Percentage of equity interest in joint venture (in hundredths) | 50% | |
Rentable square feet of commercial real estate properties (in sq feet) | ft² | 422,000 | |
Pre-lease percentage of building under development (in hundredths) | 12% | |
Total anticipated development costs | $ | $ 200,000 | |
Subsequent Event [Member] | 23Springs [Member] | ||
Subsequent Event [Line Items] | ||
Percentage of equity interest in joint venture (in hundredths) | 50% | |
Rentable square feet of commercial real estate properties (in sq feet) | ft² | 642,000 | |
Pre-lease percentage of building under development (in hundredths) | 17% | |
Total anticipated development costs | $ | $ 460,000 | |
Subsequent Event [Member] | Pittsburgh Division Office [Member] | ||
Subsequent Event [Line Items] | ||
Rentable square feet of commercial real estate properties (in sq feet) | ft² | 2,155,000 | |
Percentage of rentable square feet occupied (in hundredths) | 92.90% | |
Percent of NOI (in hundredths) | 6% |