x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Indiana (Duke Realty Corporation) | 35-1740409 (Duke Realty Corporation) | |
Indiana (Duke Realty Limited Partnership) | 35-1898425 (Duke Realty Limited Partnership) | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification Number) | |
600 East 96thStreet, Suite 100 Indianapolis, Indiana | 46240 | |
(Address of Principal Executive Offices) | (Zip Code) |
Duke Realty Corporation | Yes x | No o | Duke Realty Limited Partnership | Yes x | No o |
Duke Realty Corporation | Yes x | No o | Duke Realty Limited Partnership | Yes x | No o |
Large accelerated filer x | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o |
Large accelerated filer o | Accelerated filer o | Non-accelerated filer x | Smaller reporting company o |
Duke Realty Corporation | Yes o | No x | Duke Realty Limited Partnership | Yes o | No x |
Class | Outstanding Common Shares of Duke Realty Corporation at August 5, 2015 | |
Common Stock, $.01 par value per share | 345,252,265 |
• | enhances investors' understanding of the General Partner and the Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business; |
• | eliminates duplicative disclosure and provides a more streamlined and readable presentation of information since a substantial portion of the Company's disclosure applies to both the General Partner and the Partnership; and |
• | creates time and cost efficiencies through the preparation of one combined report instead of two separate reports. |
Page | |||
Duke Realty Corporation: | |||
Consolidated Statements of Operations and Comprehensive Income (Unaudited) -Three and Six Months Ended June 30, 2015 and 2014 | |||
Consolidated Statements of Cash Flows (Unaudited) - Six Months Ended June 30, 2015 and 2014 | |||
Consolidated Statement of Changes in Equity (Unaudited) - Six Months Ended June 30, 2015 | |||
Duke Realty Limited Partnership: | |||
Consolidated Balance Sheets - June 30, 2015 (Unaudited) and December 31, 2014 | |||
Consolidated Statements of Operations and Comprehensive Income (Unaudited) -Three and Six Months Ended June 30, 2015 and 2014 | |||
Consolidated Statements of Cash Flows (Unaudited) - Six Months Ended June 30, 2015 and 2014 | |||
Consolidated Statement of Changes in Equity (Unaudited) - Six Months Ended June 30, 2015 | |||
Duke Realty Corporation and Duke Realty Limited Partnership: | |||
June 30, 2015 | December 31, 2014 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Real estate investments: | |||||||
Land and improvements | $ | 1,395,664 | $ | 1,412,867 | |||
Buildings and tenant improvements | 4,805,915 | 4,986,390 | |||||
Construction in progress | 216,352 | 246,062 | |||||
Investments in and advances to unconsolidated companies | 284,739 | 293,650 | |||||
Undeveloped land | 474,997 | 499,960 | |||||
7,177,667 | 7,438,929 | ||||||
Accumulated depreciation | (1,178,976 | ) | (1,235,337 | ) | |||
Net real estate investments | 5,998,691 | 6,203,592 | |||||
Real estate investments and other assets held-for-sale | 72,384 | 725,051 | |||||
Cash and cash equivalents | 20,254 | 17,922 | |||||
Accounts receivable, net of allowance of $1,831 and $2,742 | 22,649 | 26,168 | |||||
Straight-line rent receivable, net of allowance of $7,069 and $8,405 | 111,255 | 109,657 | |||||
Receivables on construction contracts, including retentions | 14,529 | 36,224 | |||||
Deferred financing costs, net of accumulated amortization of $30,875 and $38,863 | 32,410 | 38,734 | |||||
Deferred leasing and other costs, net of accumulated amortization of $245,840 and $259,883 | 370,172 | 387,635 | |||||
Escrow deposits and other assets | 472,177 | 209,856 | |||||
$ | 7,114,521 | $ | 7,754,839 | ||||
LIABILITIES AND EQUITY | |||||||
Indebtedness: | |||||||
Secured debt | $ | 778,869 | $ | 942,478 | |||
Unsecured debt | 2,681,874 | 3,364,161 | |||||
Unsecured line of credit | — | 106,000 | |||||
3,460,743 | 4,412,639 | ||||||
Liabilities related to real estate investments held-for-sale | 3,742 | 59,092 | |||||
Construction payables and amounts due subcontractors, including retentions | 63,396 | 69,470 | |||||
Accrued real estate taxes | 73,556 | 76,308 | |||||
Accrued interest | 37,289 | 55,110 | |||||
Other accrued expenses | 41,939 | 62,632 | |||||
Other liabilities | 105,533 | 95,566 | |||||
Tenant security deposits and prepaid rents | 36,480 | 44,142 | |||||
Total liabilities | 3,822,678 | 4,874,959 | |||||
Shareholders' equity: | |||||||
Common shares ($.01 par value); 600,000 shares authorized; 345,249 and 344,112 shares issued and outstanding | 3,451 | 3,441 | |||||
Additional paid-in capital | 4,953,224 | 4,944,800 | |||||
Accumulated other comprehensive income | 2,340 | 3,026 | |||||
Distributions in excess of net income | (1,694,574 | ) | (2,090,942 | ) | |||
Total shareholders' equity | 3,264,441 | 2,860,325 | |||||
Noncontrolling interests | 27,402 | 19,555 | |||||
Total equity | 3,291,843 | 2,879,880 | |||||
$ | 7,114,521 | $ | 7,754,839 |
Three Months Ended | Six Months Ended | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenues: | |||||||||||||||
Rental and related revenue | $ | 201,996 | $ | 204,780 | $ | 416,611 | $ | 413,426 | |||||||
General contractor and service fee revenue | 23,901 | 69,512 | 76,722 | 125,332 | |||||||||||
225,897 | 274,292 | 493,333 | 538,758 | ||||||||||||
Expenses: | |||||||||||||||
Rental expenses | 30,094 | 32,221 | 66,218 | 74,262 | |||||||||||
Real estate taxes | 27,747 | 28,652 | 58,526 | 57,855 | |||||||||||
General contractor and other services expenses | 21,738 | 63,857 | 68,762 | 111,128 | |||||||||||
Depreciation and amortization | 78,334 | 88,500 | 160,237 | 176,798 | |||||||||||
157,913 | 213,230 | 353,743 | 420,043 | ||||||||||||
Other operating activities: | |||||||||||||||
Equity in earnings of unconsolidated companies | 15,123 | 60,826 | 21,369 | 63,147 | |||||||||||
Gain on sale of properties | 107,410 | 70,318 | 130,894 | 86,171 | |||||||||||
Gain on land sales | 17,012 | 3,889 | 22,437 | 4,041 | |||||||||||
Other operating expenses | (1,555 | ) | (1,987 | ) | (3,112 | ) | (4,203 | ) | |||||||
Impairment charges | (5,470 | ) | (2,523 | ) | (5,470 | ) | (2,523 | ) | |||||||
General and administrative expenses | (19,238 | ) | (10,365 | ) | (36,242 | ) | (25,059 | ) | |||||||
113,282 | 120,158 | 129,876 | 121,574 | ||||||||||||
Operating income | 181,266 | 181,220 | 269,466 | 240,289 | |||||||||||
Other income (expenses): | |||||||||||||||
Interest and other income, net | 1,375 | 229 | 1,713 | 580 | |||||||||||
Interest expense | (42,976 | ) | (51,448 | ) | (92,567 | ) | (103,306 | ) | |||||||
Loss on debt extinguishment | (82,653 | ) | (139 | ) | (82,653 | ) | (139 | ) | |||||||
Acquisition-related activity | (1,305 | ) | (747 | ) | (1,333 | ) | (761 | ) | |||||||
Income from continuing operations before income taxes | 55,707 | 129,115 | 94,626 | 136,663 | |||||||||||
Income tax benefit (expense) | 2,288 | (364 | ) | 804 | (3,038 | ) | |||||||||
Income from continuing operations | 57,995 | 128,751 | 95,430 | 133,625 | |||||||||||
Discontinued operations: | |||||||||||||||
Income before gain on sales | 36 | 5,471 | 10,195 | 9,393 | |||||||||||
Gain on sale of depreciable properties, net of tax | 396,134 | 2,305 | 414,509 | 19,080 | |||||||||||
Income from discontinued operations | 396,170 | 7,776 | 424,704 | 28,473 | |||||||||||
Net income | 454,165 | 136,527 | 520,134 | 162,098 | |||||||||||
Dividends on preferred shares | — | (7,046 | ) | — | (14,083 | ) | |||||||||
Adjustments for redemption/repurchase of preferred shares | — | — | — | 483 | |||||||||||
Net income attributable to noncontrolling interests | (4,785 | ) | (1,793 | ) | (5,510 | ) | (2,127 | ) | |||||||
Net income attributable to common shareholders | $ | 449,380 | $ | 127,688 | $ | 514,624 | $ | 146,371 | |||||||
Basic net income per common share: | |||||||||||||||
Continuing operations attributable to common shareholders | $ | 0.16 | $ | 0.36 | $ | 0.27 | $ | 0.35 | |||||||
Discontinued operations attributable to common shareholders | 1.14 | 0.02 | 1.22 | 0.09 | |||||||||||
Total | $ | 1.30 | $ | 0.38 | $ | 1.49 | $ | 0.44 | |||||||
Diluted net income per common share: | |||||||||||||||
Continuing operations attributable to common shareholders | $ | 0.16 | $ | 0.36 | $ | 0.27 | $ | 0.35 | |||||||
Discontinued operations attributable to common shareholders | 1.14 | 0.02 | 1.22 | 0.09 | |||||||||||
Total | $ | 1.30 | $ | 0.38 | $ | 1.49 | $ | 0.44 | |||||||
Weighted average number of common shares outstanding | 345,098 | 331,753 | 344,849 | 329,442 | |||||||||||
Weighted average number of common shares and potential dilutive securities | 349,161 | 336,414 | 348,945 | 334,102 | |||||||||||
Comprehensive income: | |||||||||||||||
Net income | $ | 454,165 | $ | 136,527 | $ | 520,134 | $ | 162,098 | |||||||
Other comprehensive loss: | |||||||||||||||
Amortization of interest contracts | (276 | ) | (287 | ) | (563 | ) | (574 | ) | |||||||
Other | (123 | ) | 55 | (123 | ) | 55 | |||||||||
Total other comprehensive loss | (399 | ) | (232 | ) | (686 | ) | (519 | ) | |||||||
Comprehensive income | $ | 453,766 | $ | 136,295 | $ | 519,448 | $ | 161,579 |
2015 | 2014 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 520,134 | $ | 162,098 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation of buildings and tenant improvements | 128,624 | 144,618 | |||||
Amortization of deferred leasing and other costs | 35,130 | 51,287 | |||||
Amortization of deferred financing costs | 3,835 | 5,042 | |||||
Straight-line rental income and expense, net | (12,775 | ) | (10,892 | ) | |||
Impairment charges | 5,470 | 2,523 | |||||
Loss on debt transactions | 82,653 | 139 | |||||
Gains on land and depreciated property sales | (571,060 | ) | (107,164 | ) | |||
Third-party construction contracts, net | 4,956 | (10,209 | ) | ||||
Other accrued revenues and expenses, net | (11,924 | ) | 11,042 | ||||
Operating distributions received in excess of (less than) equity in earnings from unconsolidated companies | (9,391 | ) | (44,454 | ) | |||
Net cash provided by operating activities | 175,652 | 204,030 | |||||
Cash flows from investing activities: | |||||||
Development of real estate investments | (109,617 | ) | (226,575 | ) | |||
Acquisition of real estate investments and related intangible assets | (20,929 | ) | (85,182 | ) | |||
Acquisition of undeveloped land | (25,579 | ) | (11,800 | ) | |||
Second generation tenant improvements, leasing costs and building improvements | (30,871 | ) | (44,367 | ) | |||
Other deferred leasing costs | (22,302 | ) | (14,980 | ) | |||
Other assets | (94,745 | ) | 3,954 | ||||
Proceeds from land and depreciated property sales, net | 1,305,794 | 213,040 | |||||
Capital distributions from unconsolidated companies | 67,004 | 40,293 | |||||
Capital contributions and advances to unconsolidated companies | (50,208 | ) | (4,165 | ) | |||
Net cash provided by (used for) investing activities | 1,018,547 | (129,782 | ) | ||||
Cash flows from financing activities: | |||||||
Proceeds from issuance of common shares, net | 4,756 | 191,107 | |||||
Payments for redemption/repurchase of preferred shares | — | (17,656 | ) | ||||
Payments on unsecured debt | (759,354 | ) | (1,029 | ) | |||
Payments on secured indebtedness including principal amortization | (207,169 | ) | (88,898 | ) | |||
Repayments on line of credit, net | (106,000 | ) | (28,000 | ) | |||
Distributions to common shareholders | (117,274 | ) | (111,919 | ) | |||
Distributions to preferred shareholders | — | (14,186 | ) | ||||
Distributions to noncontrolling interests, net | (1,394 | ) | (1,304 | ) | |||
Buyout of noncontrolling interests | — | (7,717 | ) | ||||
Change in book overdrafts | (5,322 | ) | 7,659 | ||||
Deferred financing costs | (110 | ) | (355 | ) | |||
Net cash used for financing activities | (1,191,867 | ) | (72,298 | ) | |||
Net increase in cash and cash equivalents | 2,332 | 1,950 | |||||
Cash and cash equivalents at beginning of period | 17,922 | 19,275 | |||||
Cash and cash equivalents at end of period | $ | 20,254 | $ | 21,225 | |||
Non-cash investing and financing activities: | |||||||
Assumption of indebtedness and other liabilities in real estate acquisitions | $ | — | $ | 54 | |||
Mortgage note receivable from buyer in property sale | $ | 200,000 | $ | — | |||
Conversion of Limited Partner Units to common shares | $ | (1,693 | ) | $ | 56 |
Common Shareholders | ||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Distributions in Excess of Net Income | Noncontrolling Interests | Total | |||||||||||||||||||
Balance at December 31, 2014 | $ | 3,441 | $ | 4,944,800 | $ | 3,026 | $ | (2,090,942 | ) | $ | 19,555 | $ | 2,879,880 | |||||||||||
Net income | — | — | — | 514,624 | 5,510 | 520,134 | ||||||||||||||||||
Other comprehensive loss | — | — | (686 | ) | — | — | (686 | ) | ||||||||||||||||
Issuance of common shares | 2 | 4,754 | — | — | — | 4,756 | ||||||||||||||||||
Stock-based compensation plan activity | 7 | 5,364 | — | (982 | ) | 2,038 | 6,427 | |||||||||||||||||
Conversion of Limited Partner Units | 1 | (1,694 | ) | — | — | 1,693 | — | |||||||||||||||||
Distributions to common shareholders ($0.34 per share) | — | — | — | (117,274 | ) | — | (117,274 | ) | ||||||||||||||||
Distributions to noncontrolling interests, net | — | — | — | — | (1,394 | ) | (1,394 | ) | ||||||||||||||||
Balance at June 30, 2015 | $ | 3,451 | $ | 4,953,224 | $ | 2,340 | $ | (1,694,574 | ) | $ | 27,402 | $ | 3,291,843 |
June 30, 2015 | December 31, 2014 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Real estate investments: | |||||||
Land and improvements | $ | 1,395,664 | $ | 1,412,867 | |||
Buildings and tenant improvements | 4,805,915 | 4,986,390 | |||||
Construction in progress | 216,352 | 246,062 | |||||
Investments in and advances to unconsolidated companies | 284,739 | 293,650 | |||||
Undeveloped land | 474,997 | 499,960 | |||||
7,177,667 | 7,438,929 | ||||||
Accumulated depreciation | (1,178,976 | ) | (1,235,337 | ) | |||
Net real estate investments | 5,998,691 | 6,203,592 | |||||
Real estate investments and other assets held-for-sale | 72,384 | 725,051 | |||||
Cash and cash equivalents | 20,254 | 17,922 | |||||
Accounts receivable, net of allowance of $1,831 and $2,742 | 22,649 | 26,168 | |||||
Straight-line rent receivable, net of allowance of $7,609 and $8,405 | 111,255 | 109,657 | |||||
Receivables on construction contracts, including retentions | 14,529 | 36,224 | |||||
Deferred financing costs, net of accumulated amortization of $30,875 and $38,863 | 32,410 | 38,734 | |||||
Deferred leasing and other costs, net of accumulated amortization of $245,840 and $259,883 | 370,172 | 387,635 | |||||
Escrow deposits and other assets | 472,177 | 209,856 | |||||
$ | 7,114,521 | $ | 7,754,839 | ||||
LIABILITIES AND EQUITY | |||||||
Indebtedness: | |||||||
Secured debt | $ | 778,869 | $ | 942,478 | |||
Unsecured debt | 2,681,874 | 3,364,161 | |||||
Unsecured line of credit | — | 106,000 | |||||
3,460,743 | 4,412,639 | ||||||
Liabilities related to real estate investments held-for-sale | 3,742 | 59,092 | |||||
Construction payables and amounts due subcontractors, including retentions | 63,396 | 69,470 | |||||
Accrued real estate taxes | 73,556 | 76,308 | |||||
Accrued interest | 37,289 | 55,110 | |||||
Other accrued expenses | 42,168 | 62,812 | |||||
Other liabilities | 105,533 | 95,566 | |||||
Tenant security deposits and prepaid rents | 36,480 | 44,142 | |||||
Total liabilities | 3,822,907 | 4,875,139 | |||||
Partners' equity: | |||||||
General Partner: | |||||||
Common equity (345,249 and 344,112 General Partner Units issued and outstanding) | 3,261,872 | 2,857,119 | |||||
3,261,872 | 2,857,119 | ||||||
Limited Partners' common equity (3,504 and 3,717 Limited Partner Units issued and outstanding) | 25,230 | 17,289 | |||||
Accumulated other comprehensive income | 2,340 | 3,026 | |||||
Total partners' equity | 3,289,442 | 2,877,434 | |||||
Noncontrolling interests | 2,172 | 2,266 | |||||
Total equity | 3,291,614 | 2,879,700 | |||||
$ | 7,114,521 | $ | 7,754,839 |
Three Months Ended | Six Months Ended | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenues: | |||||||||||||||
Rental and related revenue | $ | 201,996 | $ | 204,780 | $ | 416,611 | $ | 413,426 | |||||||
General contractor and service fee revenue | 23,901 | 69,512 | 76,722 | 125,332 | |||||||||||
225,897 | 274,292 | 493,333 | 538,758 | ||||||||||||
Expenses: | |||||||||||||||
Rental expenses | 30,094 | 32,221 | 66,218 | 74,262 | |||||||||||
Real estate taxes | 27,747 | 28,652 | 58,526 | 57,855 | |||||||||||
General contractor and other services expenses | 21,738 | 63,857 | 68,762 | 111,128 | |||||||||||
Depreciation and amortization | 78,334 | 88,500 | 160,237 | 176,798 | |||||||||||
157,913 | 213,230 | 353,743 | 420,043 | ||||||||||||
Other operating activities: | |||||||||||||||
Equity in earnings of unconsolidated companies | 15,123 | 60,826 | 21,369 | 63,147 | |||||||||||
Gain on sale of properties | 107,410 | 70,318 | 130,894 | 86,171 | |||||||||||
Gain on land sales | 17,012 | 3,889 | 22,437 | 4,041 | |||||||||||
Other operating expenses | (1,555 | ) | (1,987 | ) | (3,112 | ) | (4,203 | ) | |||||||
Impairment charges | (5,470 | ) | (2,523 | ) | (5,470 | ) | (2,523 | ) | |||||||
General and administrative expenses | (19,238 | ) | (10,365 | ) | (36,242 | ) | (25,059 | ) | |||||||
113,282 | 120,158 | 129,876 | 121,574 | ||||||||||||
Operating income | 181,266 | 181,220 | 269,466 | 240,289 | |||||||||||
Other income (expenses): | |||||||||||||||
Interest and other income, net | 1,375 | 229 | 1,713 | 580 | |||||||||||
Interest expense | (42,976 | ) | (51,448 | ) | (92,567 | ) | (103,306 | ) | |||||||
Loss on debt extinguishment | (82,653 | ) | (139 | ) | (82,653 | ) | (139 | ) | |||||||
Acquisition-related activity | (1,305 | ) | (747 | ) | (1,333 | ) | (761 | ) | |||||||
Income from continuing operations before income taxes | 55,707 | 129,115 | 94,626 | 136,663 | |||||||||||
Income tax benefit (expense) | 2,288 | (364 | ) | 804 | (3,038 | ) | |||||||||
Income from continuing operations | 57,995 | 128,751 | 95,430 | 133,625 | |||||||||||
Discontinued operations: | |||||||||||||||
Income before gain on sales | 36 | 5,471 | 10,195 | 9,393 | |||||||||||
Gain on sale of depreciable properties, net of tax | 396,134 | 2,305 | 414,509 | 19,080 | |||||||||||
Income from discontinued operations | 396,170 | 7,776 | 424,704 | 28,473 | |||||||||||
Net income | 454,165 | 136,527 | 520,134 | 162,098 | |||||||||||
Distributions on Preferred Units | — | (7,046 | ) | — | (14,083 | ) | |||||||||
Adjustments for redemption/repurchase of Preferred Units | — | — | — | 483 | |||||||||||
Net income attributable to noncontrolling interests | (23 | ) | (100 | ) | (49 | ) | (184 | ) | |||||||
Net income attributable to common unitholders | $ | 454,142 | $ | 129,381 | $ | 520,085 | $ | 148,314 | |||||||
Basic net income per Common Unit: | |||||||||||||||
Continuing operations attributable to common unitholders | $ | 0.16 | $ | 0.36 | $ | 0.27 | $ | 0.35 | |||||||
Discontinued operations attributable to common unitholders | 1.14 | 0.02 | 1.22 | 0.09 | |||||||||||
Total | $ | 1.30 | $ | 0.38 | $ | 1.49 | $ | 0.44 | |||||||
Diluted net income per Common Unit: | |||||||||||||||
Continuing operations attributable to common unitholders | $ | 0.16 | $ | 0.36 | $ | 0.27 | $ | 0.35 | |||||||
Discontinued operations attributable to common unitholders | 1.14 | 0.02 | 1.22 | 0.09 | |||||||||||
Total | $ | 1.30 | $ | 0.38 | $ | 1.49 | $ | 0.44 | |||||||
Weighted average number of Common Units outstanding | 348,728 | 336,139 | 348,511 | 333,828 | |||||||||||
Weighted average number of Common Units and potential dilutive securities | 349,161 | 336,414 | 348,945 | 334,102 | |||||||||||
Comprehensive income: | |||||||||||||||
Net income | $ | 454,165 | $ | 136,527 | $ | 520,134 | $ | 162,098 | |||||||
Other comprehensive loss: | |||||||||||||||
Amortization of interest contracts | (276 | ) | (287 | ) | (563 | ) | (574 | ) | |||||||
Other | (123 | ) | 55 | (123 | ) | 55 | |||||||||
Total other comprehensive loss | (399 | ) | (232 | ) | (686 | ) | (519 | ) | |||||||
Comprehensive income | $ | 453,766 | $ | 136,295 | $ | 519,448 | $ | 161,579 |
2015 | 2014 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 520,134 | $ | 162,098 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation of buildings and tenant improvements | 128,624 | 144,618 | |||||
Amortization of deferred leasing and other costs | 35,130 | 51,287 | |||||
Amortization of deferred financing costs | 3,835 | 5,042 | |||||
Straight-line rental income and expense, net | (12,775 | ) | (10,892 | ) | |||
Impairment charges | 5,470 | 2,523 | |||||
Loss on debt transactions | 82,653 | 139 | |||||
Gains on land and depreciated property sales | (571,060 | ) | (107,164 | ) | |||
Third-party construction contracts, net | 4,956 | (10,209 | ) | ||||
Other accrued revenues and expenses, net | (11,875 | ) | 11,042 | ||||
Operating distributions received in excess of (less than) equity in earnings from unconsolidated companies | (9,391 | ) | (44,454 | ) | |||
Net cash provided by operating activities | 175,701 | 204,030 | |||||
Cash flows from investing activities: | |||||||
Development of real estate investments | (109,617 | ) | (226,575 | ) | |||
Acquisition of real estate investments and related intangible assets | (20,929 | ) | (85,182 | ) | |||
Acquisition of undeveloped land | (25,579 | ) | (11,800 | ) | |||
Second generation tenant improvements, leasing costs and building improvements | (30,871 | ) | (44,367 | ) | |||
Other deferred leasing costs | (22,302 | ) | (14,980 | ) | |||
Other assets | (94,745 | ) | 3,954 | ||||
Proceeds from land and depreciated property sales, net | 1,305,794 | 213,040 | |||||
Capital distributions from unconsolidated companies | 67,004 | 40,293 | |||||
Capital contributions and advances to unconsolidated companies | (50,208 | ) | (4,165 | ) | |||
Net cash provided by (used for) investing activities | 1,018,547 | (129,782 | ) | ||||
Cash flows from financing activities: | |||||||
Contributions from the General Partner | 4,707 | 191,107 | |||||
Payments for redemption/repurchase of Preferred Units | — | (17,656 | ) | ||||
Payments on unsecured debt | (759,354 | ) | (1,029 | ) | |||
Payments on secured indebtedness including principal amortization | (207,169 | ) | (88,898 | ) | |||
Repayments on line of credit, net | (106,000 | ) | (28,000 | ) | |||
Distributions to common unitholders | (118,525 | ) | (113,410 | ) | |||
Distributions to preferred unitholders | — | (14,186 | ) | ||||
Contributions from (distributions to) noncontrolling interests, net | (143 | ) | 187 | ||||
Buyout of noncontrolling interests | — | (7,717 | ) | ||||
Change in book overdrafts | (5,322 | ) | 7,659 | ||||
Deferred financing costs | (110 | ) | (355 | ) | |||
Net cash used for financing activities | (1,191,916 | ) | (72,298 | ) | |||
Net increase in cash and cash equivalents | 2,332 | 1,950 | |||||
Cash and cash equivalents at beginning of period | 17,922 | 19,275 | |||||
Cash and cash equivalents at end of period | $ | 20,254 | $ | 21,225 | |||
Non-cash investing and financing activities: | |||||||
Assumption of indebtedness and other liabilities in real estate acquisitions | $ | — | $ | 54 | |||
Mortgage note receivable from buyer in property sale | $ | 200,000 | $ | — | |||
Conversion of Limited Partner Units to common shares of the General Partner | $ | (1,693 | ) | $ | 56 |
Common Unitholders | |||||||||||||||||||||||
General | Limited | Accumulated | |||||||||||||||||||||
Partner's | Partners' | Other | Total | ||||||||||||||||||||
Common Equity | Common Equity | Comprehensive Income | Partners' Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||
Balance at December 31, 2014 | $ | 2,857,119 | $ | 17,289 | $ | 3,026 | $ | 2,877,434 | $ | 2,266 | $ | 2,879,700 | |||||||||||
Net income | 514,624 | 5,461 | — | 520,085 | 49 | 520,134 | |||||||||||||||||
Other comprehensive income loss | — | — | (686 | ) | (686 | ) | — | (686 | ) | ||||||||||||||
Capital contribution from the General Partner | 4,707 | — | — | 4,707 | — | 4,707 | |||||||||||||||||
Stock-based compensation plan activity | 4,389 | 2,038 | — | 6,427 | — | 6,427 | |||||||||||||||||
Conversion of Limited Partner Units to common shares of the General Partner | (1,693 | ) | 1,693 | — | — | — | — | ||||||||||||||||
Distributions to Partners ($0.34 per Common Unit) | (117,274 | ) | (1,251 | ) | — | (118,525 | ) | — | (118,525 | ) | |||||||||||||
Distributions to noncontrolling interests, net | — | — | — | — | (143 | ) | (143 | ) | |||||||||||||||
Balance at June 30, 2015 | $ | 3,261,872 | $ | 25,230 | $ | 2,340 | $ | 3,289,442 | $ | 2,172 | $ | 3,291,614 |
Real estate assets | $ | 18,246 | |
Lease related intangible assets | 2,001 | ||
Total acquired assets | 20,247 | ||
Other liabilities | 206 | ||
Total assumed liabilities | 206 | ||
Fair value of acquired net assets | $ | 20,041 |
Discount rate | 7.07% |
Exit capitalization rate | 5.57% |
Lease-up period (months) | 12 |
Net rental rate per square foot - Industrial | $4.85 |
Book Value at 12/31/2014 | Book Value at 6/30/2015 | Fair Value at 12/31/2014 | Payments/Payoffs | Adjustments to Fair Value | Fair Value at 6/30/2015 | ||||||||||||||||||
Fixed rate secured debt | $ | 979,842 | $ | 775,469 | $ | 1,065,301 | $ | (202,918 | ) | $ | (16,404 | ) | $ | 845,979 | |||||||||
Variable rate secured debt | 3,400 | 3,400 | 3,400 | — | — | 3,400 | |||||||||||||||||
Unsecured debt | 3,364,161 | 2,681,874 | 3,603,475 | (682,287 | ) | (111,749 | ) | 2,809,439 | |||||||||||||||
Unsecured line of credit | 106,000 | — | 106,000 | (106,000 | ) | — | — | ||||||||||||||||
Total | $ | 4,453,403 | $ | 3,460,743 | $ | 4,778,176 | $ | (991,205 | ) | $ | (128,153 | ) | $ | 3,658,818 | |||||||||
Less secured debt related to real estate assets held-for-sale | 40,764 | — | |||||||||||||||||||||
Total indebtedness as reported on consolidated balance sheets | $ | 4,412,639 | $ | 3,460,743 |
Description | Maximum Capacity | Maturity Date | Outstanding Balance at June 30, 2015 | ||||||
Unsecured Line of Credit - Partnership | $ | 1,200,000 | January 2019 | $ | — |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Management fees | $ | 1,752 | $ | 2,117 | $ | 3,553 | $ | 4,336 | |||||||
Leasing fees | 389 | 2,169 | 1,022 | 2,513 | |||||||||||
Construction and development fees | 725 | 2,417 | 1,130 | 3,382 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
General Partner | |||||||||||||||
Net income attributable to common shareholders | $ | 449,380 | $ | 127,688 | $ | 514,624 | $ | 146,371 | |||||||
Less: Dividends on participating securities | (589 | ) | (646 | ) | (1,209 | ) | (1,289 | ) | |||||||
Basic net income attributable to common shareholders | 448,791 | 127,042 | 513,415 | 145,082 | |||||||||||
Noncontrolling interest in earnings of common unitholders | 4,762 | 1,693 | 5,461 | 1,943 | |||||||||||
Diluted net income attributable to common shareholders | $ | 453,553 | $ | 128,735 | $ | 518,876 | $ | 147,025 | |||||||
Weighted average number of common shares outstanding | 345,098 | 331,753 | 344,849 | 329,442 | |||||||||||
Weighted average Limited Partner Units outstanding | 3,630 | 4,386 | 3,662 | 4,386 | |||||||||||
Other potential dilutive shares | 433 | 275 | 434 | 274 | |||||||||||
Weighted average number of common shares and potential dilutive securities | 349,161 | 336,414 | 348,945 | 334,102 | |||||||||||
Partnership | |||||||||||||||
Net income attributable to common unitholders | $ | 454,142 | $ | 129,381 | $ | 520,085 | $ | 148,314 | |||||||
Less: Distributions on participating securities | (589 | ) | (646 | ) | (1,209 | ) | (1,289 | ) | |||||||
Basic and diluted net income attributable to common unitholders | $ | 453,553 | $ | 128,735 | $ | 518,876 | $ | 147,025 | |||||||
Weighted average number of Common Units outstanding | 348,728 | 336,139 | 348,511 | 333,828 | |||||||||||
Other potential dilutive units | 433 | 275 | 434 | 274 | |||||||||||
Weighted average number of Common Units and potential dilutive securities | 349,161 | 336,414 | 348,945 | 334,102 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||
General Partner and Partnership | |||||||||||
Potential dilutive shares or units: | |||||||||||
Anti-dilutive outstanding potential shares or units under fixed stock option and other stock-based compensation plans | 997 | 1,215 | 997 | 1,215 | |||||||
Outstanding participating securities | 3,463 | 3,830 | 3,463 | 3,830 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Revenues | ||||||||||||||||
Rental Operations: | ||||||||||||||||
Industrial | $ | 135,487 | $ | 128,263 | $ | 283,115 | $ | 261,554 | ||||||||
Medical Office | 40,274 | 34,954 | 80,302 | 68,264 | ||||||||||||
Office | 23,691 | 38,586 | 48,826 | 77,565 | ||||||||||||
Non-reportable Rental Operations | — | 1,629 | — | 3,716 | ||||||||||||
Service Operations | 23,901 | 69,512 | 76,722 | 125,332 | ||||||||||||
Total segment revenues | 223,353 | 272,944 | 488,965 | 536,431 | ||||||||||||
Other revenue | 2,544 | 1,348 | 4,368 | 2,327 | ||||||||||||
Consolidated revenue from continuing operations | 225,897 | 274,292 | 493,333 | 538,758 | ||||||||||||
Discontinued operations | 49 | 29,331 | 32,164 | 59,403 | ||||||||||||
Consolidated revenue | $ | 225,946 | $ | 303,623 | $ | 525,497 | $ | 598,161 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
PNOI | ||||||||||||||||
Industrial | $ | 99,408 | $ | 87,897 | $ | 195,456 | $ | 172,056 | ||||||||
Medical Office | 25,820 | 22,015 | 51,051 | 42,592 | ||||||||||||
Office | 12,885 | 13,611 | 25,166 | 25,525 | ||||||||||||
Non-reportable Rental Operations | — | 1,300 | — | 2,405 | ||||||||||||
PNOI, excluding all sold/held for sale properties | 138,113 | 124,823 | 271,673 | 242,578 | ||||||||||||
PNOI from sold/held-for-sale properties included in continuing operations | 2,751 | 16,306 | 11,463 | 31,602 | ||||||||||||
PNOI, continuing operations | 140,864 | 141,129 | 283,136 | 274,180 | ||||||||||||
Earnings from Service Operations | 2,163 | 5,655 | 7,960 | 14,204 | ||||||||||||
Rental Operations revenues and expenses excluded from PNOI: | ||||||||||||||||
Straight-line rental income and expense, net | 3,956 | 4,077 | 11,107 | 9,778 | ||||||||||||
Revenues related to lease buyouts | 94 | 1,525 | 958 | 4,220 | ||||||||||||
Amortization of lease concessions and above and below market rents | (490 | ) | (1,389 | ) | (2,203 | ) | (3,600 | ) | ||||||||
Intercompany rents and other adjusting items | (412 | ) | (1,355 | ) | (872 | ) | (2,497 | ) | ||||||||
Non-Segment Items: | ||||||||||||||||
Equity in earnings of unconsolidated companies | 15,123 | 60,826 | 21,369 | 63,147 | ||||||||||||
Interest expense | (42,976 | ) | (51,448 | ) | (92,567 | ) | (103,306 | ) | ||||||||
Depreciation expense | (78,334 | ) | (88,500 | ) | (160,237 | ) | (176,798 | ) | ||||||||
Gain on sale of properties | 107,410 | 70,318 | 130,894 | 86,171 | ||||||||||||
Impairment charges on non-depreciable properties | (5,470 | ) | (2,523 | ) | (5,470 | ) | (2,523 | ) | ||||||||
Interest and other income, net | 1,375 | 229 | 1,713 | 580 | ||||||||||||
General and administrative expenses | (19,238 | ) | (10,365 | ) | (36,242 | ) | (25,059 | ) | ||||||||
Gain on land sales | 17,012 | 3,889 | 22,437 | 4,041 | ||||||||||||
Other operating expenses | (1,555 | ) | (1,987 | ) | (3,112 | ) | (4,203 | ) | ||||||||
Loss on extinguishment of debt | (82,653 | ) | (139 | ) | (82,653 | ) | (139 | ) | ||||||||
Acquisition-related activity | (1,305 | ) | (747 | ) | (1,333 | ) | (761 | ) | ||||||||
Other non-segment revenues and expenses, net | 143 | (80 | ) | (259 | ) | (772 | ) | |||||||||
Income from continuing operations before income taxes | $ | 55,707 | $ | 129,115 | $ | 94,626 | $ | 136,663 |
June 30, 2015 | December 31, 2014 | ||||||
Assets | |||||||
Rental Operations: | |||||||
Industrial | $ | 4,510,800 | $ | 4,677,047 | |||
Medical Office | 1,226,567 | 1,229,632 | |||||
Office | 654,467 | 1,252,627 | |||||
Non-reportable Rental Operations | — | 71,741 | |||||
Service Operations | 136,614 | 158,762 | |||||
Total segment assets | 6,528,448 | 7,389,809 | |||||
Non-segment assets | 586,073 | 365,030 | |||||
Consolidated assets | $ | 7,114,521 | $ | 7,754,839 |
Held-for-Sale at June 30, 2015 | Sold through June 30, 2015 | Sold in 2014 | Total | ||||
Industrial | 0 | 5 | 11 | 16 | |||
Medical Office | 0 | 1 | 1 | 2 | |||
Office | 0 | 56 | 0 | 56 | |||
Total properties included in discontinued operations | 0 | 62 | 12 | 74 | |||
Properties excluded from discontinued operations | 9 | 62 | 17 | 88 | |||
Total properties sold or classified as held-for-sale | 9 | 124 | 29 | 162 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenues | $ | 49 | $ | 29,331 | $ | 32,164 | $ | 59,403 | |||||||
Operating expenses | (13 | ) | (11,101 | ) | (12,399 | ) | (23,504 | ) | |||||||
Depreciation and amortization | — | (9,141 | ) | (3,517 | ) | (19,107 | ) | ||||||||
Operating income | 36 | 9,089 | 16,248 | 16,792 | |||||||||||
Interest expense | — | (3,618 | ) | (6,053 | ) | (7,399 | ) | ||||||||
Income before gain on sales | 36 | 5,471 | 10,195 | 9,393 | |||||||||||
Gain on sale of depreciable properties | 399,354 | 2,851 | 417,729 | 22,603 | |||||||||||
Income from discontinued operations before income taxes | 399,390 | 8,322 | 427,924 | 31,996 | |||||||||||
Income tax expense | (3,220 | ) | (546 | ) | (3,220 | ) | (3,523 | ) | |||||||
Income from discontinued operations | $ | 396,170 | $ | 7,776 | $ | 424,704 | $ | 28,473 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Income from continuing operations attributable to common shareholders | $ | 57,333 | $ | 120,013 | $ | 94,382 | $ | 118,272 | |||||||
Income from discontinued operations attributable to common shareholders | 392,047 | 7,675 | 420,242 | 28,099 | |||||||||||
Net income attributable to common shareholders | $ | 449,380 | $ | 127,688 | $ | 514,624 | $ | 146,371 |
June 30, 2015 | December 31, 2014 | ||||||||||||||
Properties Included in Continuing Operations | Properties Included in Continuing Operations | Properties Included in Discontinued Operations | Total Held-For-Sale Properties | ||||||||||||
Land and improvements | $ | 13,443 | $ | 21,347 | $ | 126,921 | $ | 148,268 | |||||||
Buildings and tenant improvements | 94,443 | 36,925 | 721,398 | 758,323 | |||||||||||
Undeveloped land | 2,696 | 12,443 | — | 12,443 | |||||||||||
Accumulated depreciation | (46,891 | ) | (23,071 | ) | (247,269 | ) | (270,340 | ) | |||||||
Deferred leasing and other costs, net | 4,393 | 3,480 | 44,840 | 48,320 | |||||||||||
Other assets | 4,300 | 562 | 27,475 | 28,037 | |||||||||||
Total assets held-for-sale | $ | 72,384 | $ | 51,686 | $ | 673,365 | $ | 725,051 | |||||||
Secured debt | $ | — | $ | — | $ | 40,764 | $ | 40,764 | |||||||
Accrued expenses | 1,885 | 233 | 5,180 | 5,413 | |||||||||||
Other liabilities | 1,857 | 434 | 12,481 | 12,915 | |||||||||||
Total liabilities held-for-sale | $ | 3,742 | $ | 667 | $ | 58,425 | $ | 59,092 |
Class of stock/units | Quarterly Amount per Share or Unit | Record Date | Payment Date | ||
Common | $0.17 | August 14, 2015 | August 31, 2015 |
• | Changes in general economic and business conditions, including the financial condition of our tenants and the value of our real estate assets; |
• | The General Partner's continued qualification as a real estate investment trust ("REIT") for U.S. federal income tax purposes; |
• | Heightened competition for tenants and potential decreases in property occupancy; |
• | Potential changes in the financial markets and interest rates; |
• | Volatility in the General Partner's stock price and trading volume; |
• | Our continuing ability to raise funds on favorable terms; |
• | Our ability to successfully identify, acquire, develop and/or manage properties on terms that are favorable to us; |
• | Potential increases in real estate construction costs; |
• | Our ability to successfully dispose of properties on terms that are favorable to us, including, without limitation, through one or more transactions that are consistent with our previously disclosed strategic plans; |
• | Our ability to retain our current credit ratings; |
• | Inherent risks in the real estate business, including, but not limited to, tenant defaults, potential liability relating to environmental matters and liquidity of real estate investments; and |
• | Other risks and uncertainties described herein, as well as those risks and uncertainties discussed from time to time in our other reports and other public filings with the SEC. |
• | Owned or jointly controlled 611 industrial, medical office and office properties, of which 583 properties with approximately 137.1 million square feet were in service and 28 properties with approximately 6.7 million square feet were under development. The 583 in-service properties were comprised of 505 consolidated properties with approximately 117.2 million square feet and 78 jointly controlled unconsolidated properties with approximately 19.9 million square feet. The 28 properties under development consisted of 25 consolidated properties with more than 5.6 million square feet and three jointly controlled unconsolidated properties with more than 1.0 million square feet. |
• | Owned directly, or through ownership interests in unconsolidated joint ventures (with acreage not adjusted for our percentage ownership interest), approximately 3,600 acres of land and controlled approximately 1,700 acres through purchase options. |
Total Square Feet (in thousands) | Percent of Total Square Feet | Percent Leased* | Average Annual Net Effective Rent** | ||||||||||||||||||
Type | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||
Industrial | 106,322 | 104,920 | 90.7 | % | 84.8 | % | 96.9 | % | 95.2 | % | $4.01 | $3.97 | |||||||||
Medical Office | 5,172 | 4,876 | 4.4 | % | 3.9 | % | 94.6 | % | 93.7 | % | $23.09 | $23.04 | |||||||||
Office | 5,697 | 13,592 | 4.9 | % | 11.0 | % | 86.6 | % | 87.4 | % | $12.33 | $13.32 | |||||||||
Other | — | 348 | — | % | 0.3 | % | — | % | 87.2 | % | $0.00 | $19.81 | |||||||||
Total Consolidated | 117,191 | 123,736 | 100.0 | % | 100.0 | % | 96.3 | % | 94.3 | % | $5.20 | $5.71 | |||||||||
Unconsolidated Joint Ventures | 19,893 | 21,975 | 91.9 | % | 95.9 | % | $5.86 | $7.73 | |||||||||||||
Total Including Unconsolidated Joint Ventures | 137,084 | 145,711 | 95.6 | % | 94.5 | % | $5.24 | $5.83 | |||||||||||||
*Represents the percentage of total square feet leased based on executed leases and without regard to whether the leases have commenced. | |||||||||||||||||||||
**Represents average annual base rental payments per leased square foot, on a straight-line basis for the term of each lease, from space leased to tenants at the end of the most recent reporting period. This amount excludes additional amounts paid by tenants as reimbursement for operating expenses. |
Consolidated Properties | Unconsolidated Joint Venture Properties | Total Including Unconsolidated Joint Venture Properties | ||||||
Vacant square feet at December 31, 2014 | 6,041 | 797 | 6,838 | |||||
Vacant space in completed developments | 218 | 937 | 1,155 | |||||
Dispositions | (962 | ) | (11 | ) | (973 | ) | ||
Expirations | 2,668 | 125 | 2,793 | |||||
Early lease terminations | 717 | 106 | 823 | |||||
Property structural changes/other | 2 | — | 2 | |||||
Leasing of previously vacant space | (4,319 | ) | (340 | ) | (4,659 | ) | ||
Vacant square feet at June 30, 2015 | 4,365 | 1,614 | 5,979 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2015 | 2014 | 2015 | 2014 | ||||
New Leasing Activity - First Generation | 1,194 | 2,490 | 2,940 | 3,929 | |||
New Leasing Activity - Second Generation | 1,266 | 1,644 | 2,180 | 4,188 | |||
Renewal Leasing Activity | 1,046 | 2,372 | 4,628 | 4,049 | |||
Total Consolidated Leasing Activity | 3,506 | 6,506 | 9,748 | 12,166 | |||
Unconsolidated Joint Venture Leasing Activity | 573 | 1,971 | 1,470 | 2,340 | |||
Total Including Unconsolidated Joint Venture Leasing Activity | 4,079 | 8,477 | 11,218 | 14,506 |
Square Feet of New Second Generation Leases Signed | Average Term in Years | Estimated Tenant Improvement Cost per Square Foot | Leasing Commissions per Square Foot | ||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||
Three Months | |||||||||||||||||
Industrial | 1,168 | 1,360 | 4.1 | 7.2 | $4.28 | $3.02 | $2.08 | $2.08 | |||||||||
Medical Office | 28 | 12 | 7.0 | 7.6 | $1.70 | $38.92 | $4.25 | $6.65 | |||||||||
Office | 70 | 272 | 7.1 | 5.6 | $15.72 | $14.46 | $6.53 | $6.62 | |||||||||
Total Consolidated | 1,266 | 1,644 | 4.3 | 6.9 | $4.85 | $5.18 | $2.38 | $2.86 | |||||||||
Unconsolidated Joint Ventures | 145 | 424 | 7.4 | 4.9 | $3.14 | $1.93 | $1.91 | $1.37 | |||||||||
Total Including Unconsolidated Joint Ventures | 1,411 | 2,068 | 4.7 | 6.5 | $4.68 | $4.52 | $2.33 | $2.56 | |||||||||
Six Months | |||||||||||||||||
Industrial | 1,966 | 3,742 | 5.1 | 7.4 | $3.59 | $2.90 | $1.90 | $1.99 | |||||||||
Medical Office | 39 | 27 | 6.5 | 6.8 | $5.43 | $29.29 | $5.18 | $7.72 | |||||||||
Office | 175 | 419 | 6.0 | 5.6 | $13.21 | $16.15 | $6.30 | $6.11 | |||||||||
Total Consolidated | 2,180 | 4,188 | 5.2 | 7.2 | $4.40 | $4.40 | $2.31 | $2.44 | |||||||||
Unconsolidated Joint Ventures | 314 | 497 | 5.7 | 4.5 | $6.00 | $2.30 | $4.82 | $1.73 | |||||||||
Total Including Unconsolidated Joint Ventures | 2,494 | 4,685 | 5.2 | 6.9 | $4.60 | $4.18 | $2.63 | $2.36 |
Square Feet of Leases Renewed | Percent of Expiring Leases Renewed | Average Term in Years | Growth (Decline) in Net Effective Rents* | Estimated Tenant Improvement Cost per Square Foot | Leasing Commissions per Square Foot | ||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
Three Months | |||||||||||||||||||||||||||||
Industrial | 959 | 2,143 | 66.4 | % | 64.9 | % | 4.2 | 4.6 | 20.0 | % | 6.1 | % | $0.55 | $0.72 | $1.20 | $1.33 | |||||||||||||
Medical Office | 5 | 11 | 33.9 | % | 44.4 | % | 3.5 | 4.1 | 13.0 | % | 2.4 | % | $3.62 | $0.00 | $1.69 | $2.62 | |||||||||||||
Office | 82 | 218 | 64.8 | % | 65.1 | % | 3.2 | 5.2 | 7.9 | % | 11.2 | % | $5.75 | $5.16 | $2.25 | $3.30 | |||||||||||||
Total Consolidated | 1,046 | 2,372 | 65.9 | % | 64.8 | % | 4.1 | 4.7 | 17.7 | % | 7.1 | % | $0.98 | $1.13 | $1.29 | $1.52 | |||||||||||||
Unconsolidated Joint Ventures | 174 | 930 | 81.7 | % | 78.1 | % | 3.9 | 6.7 | 1.3 | % | 8.4 | % | $1.61 | $7.60 | $1.51 | $5.95 | |||||||||||||
Total Including Unconsolidated Joint Ventures | 1,220 | 3,302 | 67.8 | % | 68.1 | % | 4.1 | 5.3 | 14.2 | % | 7.6 | % | $1.07 | $2.95 | $1.32 | $2.77 | |||||||||||||
Six Months | |||||||||||||||||||||||||||||
Industrial | 4,439 | 3,654 | 75.5 | % | 65.4 | % | 6.7 | 4.4 | 12.4 | % | 6.9 | % | $1.57 | $0.53 | $1.39 | $1.05 | |||||||||||||
Medical Office | 27 | 29 | 55.1 | % | 50.8 | % | 3.7 | 4.7 | 7.7 | % | 13.8 | % | $3.98 | $0.00 | $1.68 | $3.49 | |||||||||||||
Office | 162 | 366 | 58.9 | % | 61.9 | % | 4.3 | 4.7 | 8.1 | % | 8.8 | % | $5.77 | $4.87 | $3.60 | $3.32 | |||||||||||||
Total Consolidated | 4,628 | 4,049 | 74.6 | % | 64.9 | % | 6.6 | 4.4 | 11.8 | % | 7.5 | % | $1.73 | $0.92 | $1.47 | $1.27 | |||||||||||||
Unconsolidated Joint Ventures | 451 | 1,214 | 85.9 | % | 74.1 | % | 2.7 | 5.7 | (0.2 | )% | 8.2 | % | $0.83 | $5.88 | $0.93 | $4.72 | |||||||||||||
Total Including Unconsolidated Joint Ventures | 5,079 | 5,263 | 75.5 | % | 66.8 | % | 6.2 | 4.7 | 10.4 | % | 7.7 | % | $1.65 | $2.06 | $1.42 | $2.07 | |||||||||||||
* Represents the percentage change in net effective rent between the original leases and the renewal leases. Net effective rents represent average annual base rental payments, on a straight-line basis for the term of each lease, excluding operating expense reimbursements. |
Total Consolidated Portfolio | Industrial | Medical Office | Office | ||||||||||||||||||||||||
Year of Expiration | Square Feet | Ann. Rent Revenue* | Number of Leases | Square Feet | Ann. Rent Revenue* | Square Feet | Ann. Rent Revenue* | Square Feet | Ann. Rent Revenue* | ||||||||||||||||||
Remainder of 2015 | 3,833 | $ | 17,090 | 372 | 3,586 | $ | 13,889 | 32 | 515 | 215 | $ | 2,686 | |||||||||||||||
2016 | 12,022 | 50,806 | 374 | 11,291 | 40,224 | 206 | 4,155 | 525 | 6,427 | ||||||||||||||||||
2017 | 13,724 | 57,301 | 359 | 13,232 | 50,173 | 182 | 3,818 | 310 | 3,310 | ||||||||||||||||||
2018 | 11,612 | 57,215 | 320 | 10,664 | 40,637 | 388 | 9,781 | 560 | 6,797 | ||||||||||||||||||
2019 | 12,508 | 62,070 | 311 | 11,534 | 45,928 | 316 | 7,646 | 658 | 8,496 | ||||||||||||||||||
2020 | 11,962 | 62,376 | 208 | 11,228 | 50,265 | 414 | 8,555 | 320 | 3,556 | ||||||||||||||||||
2021 | 7,788 | 38,160 | 153 | 7,235 | 28,814 | 250 | 5,700 | 303 | 3,646 | ||||||||||||||||||
2022 | 8,888 | 39,819 | 95 | 8,477 | 31,978 | 328 | 6,895 | 83 | 946 | ||||||||||||||||||
2023 | 2,506 | 19,918 | 66 | 1,913 | 9,430 | 409 | 7,574 | 184 | 2,914 | ||||||||||||||||||
2024 | 7,357 | 38,561 | 55 | 6,878 | 30,112 | 126 | 3,262 | 353 | 5,187 | ||||||||||||||||||
2025 and Thereafter | 19,677 | 133,072 | 110 | 16,953 | 71,849 | 2,242 | 55,062 | 482 | 6,161 | ||||||||||||||||||
Total Leased | 111,877 | $ | 576,388 | 2,423 | 102,991 | $ | 413,299 | 4,893 | 112,963 | 3,993 | $ | 50,126 | |||||||||||||||
Total Portfolio Square Feet | 115,975 | 106,292 | 5,171 | 4,512 | |||||||||||||||||||||||
Percent Leased | 96.5 | % | 96.9 | % | 94.6 | % | 88.5 | % | |||||||||||||||||||
* Annualized rental revenue represents average annual base rental payments, on a straight-line basis for the term of each lease, from space leased to tenants at the end of the most recent reporting period. Annualized rental revenue excludes additional amounts paid by tenants as reimbursement for operating expenses. |
Year-to-Date 2015 Acquisitions | Full Year 2014 Acquisitions | ||||||||||||||||||
Type | Acquisition Price* | In-Place Yield** | Percent Leased at Acquisition Date*** | Acquisition Price* | In-Place Yield** | Percent Leased at Acquisition Date*** | |||||||||||||
Industrial | $ | 20,247 | 5.5 | % | 100.0 | % | $ | 118,488 | 6.2 | % | 100.0 | % | |||||||
Medical Office | — | — | % | — | % | 12,523 | 7.2 | % | 100.0 | % | |||||||||
Total | $ | 20,247 | 5.5 | % | 100.0 | % | $ | 131,011 | 6.3 | % | 100.0 | % | |||||||
* Includes real estate assets and net acquired lease-related intangible assets, including above or below market leases, but excludes other acquired working capital assets and liabilities. | |||||||||||||||||||
** In-place yields of completed acquisitions are calculated as the current annualized net rental payments from space leased to tenants at the date of acquisition, divided by the acquisition price of the acquired real estate. Annualized net rental payments are comprised of base rental payments, excluding additional amounts payable by tenants as reimbursement for operating expenses, less current annualized operating expenses not recovered through tenant reimbursements. | |||||||||||||||||||
*** Represents percentage of total square feet leased based on executed leases and without regard to whether the leases have commenced, at the date of acquisition. |
Year-to-Date 2015 Dispositions | Full Year 2014 Dispositions | ||||||||||||||||||
Type | Sales Price | In-Place Yield* | Percent Leased** | Sales Price | In-Place Yield* | Percent Leased** | |||||||||||||
Industrial | $ | 311,500 | 6.9 | % | 92.5 | % | $ | 70,807 | 4.9 | % | 60.7 | % | |||||||
Medical Office | 20,400 | 6.8 | % | 100.0 | % | 57,400 | 6.5 | % | 100.0 | % | |||||||||
Office | 1,086,878 | 7.0 | % | 88.2 | % | 348,990 | 7.5 | % | 89.3 | % | |||||||||
Other | 40,250 | 9.0 | % | 83.4 | % | — | — | % | — | % | |||||||||
Total | $ | 1,459,028 | 7.1 | % | 90.0 | % | $ | 477,197 | 7.0 | % | 76.8 | % | |||||||
* In-place yields of completed dispositions are calculated as current annualized net rental payments from space leased to tenants at the date of sale, divided by the sales price of the real estate. Annualized net rental payments are comprised of base rental payments, excluding additional amounts payable by tenants as reimbursement for operating expenses, less current annualized operating expenses not recovered through tenant reimbursements. | |||||||||||||||||||
** Represents percentage of total square feet leased based on executed leases where the leases have commenced. |
Ownership Type | Square Feet | Percent Leased | Total Estimated Project Costs | Total Incurred to Date | Amount Remaining to be Spent | ||||||||||
Consolidated properties | 5,637 | 40% | $ | 554,470 | $ | 210,814 | $ | 343,656 | |||||||
Unconsolidated joint venture properties | 1,026 | 78% | 49,622 | 8,261 | 41,361 | ||||||||||
Total | 6,663 | 46% | $ | 604,092 | $ | 219,075 | $ | 385,017 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Net income attributable to common shareholders of the General Partner | $ | 449,380 | $ | 127,688 | $ | 514,624 | $ | 146,371 | |||||||
Add back: Net income attributable to noncontrolling interests - common limited partnership interests in the Partnership | 4,762 | 1,693 | 5,461 | 1,943 | |||||||||||
Net income attributable to common unitholders of the Partnership | 454,142 | 129,381 | 520,085 | 148,314 | |||||||||||
Adjustments: | |||||||||||||||
Depreciation and amortization | 78,334 | 97,641 | 163,754 | 195,905 | |||||||||||
Company share of joint venture depreciation and amortization | 4,817 | 6,781 | 9,745 | 13,177 | |||||||||||
Impairment charges - depreciable property | 864 | — | 864 | — | |||||||||||
Gains on depreciable property sales—wholly owned | (506,764 | ) | (73,169 | ) | (548,623 | ) | (108,774 | ) | |||||||
Income tax expense triggered by depreciable property sales | 932 | 910 | 2,416 | 6,561 | |||||||||||
Gains/losses on depreciable property sales—share of joint venture | (11,989 | ) | (58,447 | ) | (13,533 | ) | (58,282 | ) | |||||||
Funds From Operations attributable to common unitholders of the Partnership | $ | 20,336 | $ | 103,097 | $ | 134,708 | $ | 196,901 | |||||||
Additional General Partner Adjustments: | |||||||||||||||
Net income attributable to noncontrolling interests - common limited partnership interests in the Partnership | (4,762 | ) | (1,693 | ) | (5,461 | ) | (1,943 | ) | |||||||
Noncontrolling interest share of adjustments | 4,515 | 352 | 4,050 | (639 | ) | ||||||||||
Funds From Operations attributable to common shareholders of the General Partner | $ | 20,089 | $ | 101,756 | $ | 133,297 | $ | 194,319 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Rental and related revenue from continuing operations - Rental Operations segments | $ | 199,452 | $ | 203,432 | $ | 412,243 | $ | 411,099 | |||||||
Rental and real estate tax expenses from continuing operations - Rental Operations segments | (55,440 | ) | (59,445 | ) | (120,117 | ) | (129,018 | ) | |||||||
Less adjusting items, continuing operations: | |||||||||||||||
Straight-line rental income and expense, net | (3,956 | ) | (4,077 | ) | (11,107 | ) | (9,778 | ) | |||||||
Revenues related to lease buyouts | (94 | ) | (1,525 | ) | (958 | ) | (4,220 | ) | |||||||
Amortization of lease concessions and above and below market rents | 490 | 1,389 | 2,203 | 3,600 | |||||||||||
Intercompany rents and other adjusting items | 412 | 1,355 | 872 | 2,497 | |||||||||||
PNOI, Continuing Operations | $ | 140,864 | $ | 141,129 | $ | 283,136 | $ | 274,180 |
Three Months Ended June 30, | Percent | ||||||||
2015 | 2014 | Change | |||||||
SPNOI | $ | 121,145 | $ | 114,101 | 6.2% | ||||
Less share of SPNOI from unconsolidated joint ventures | (7,748 | ) | (7,283 | ) | |||||
PNOI excluded from the same property population | 24,716 | 18,005 | |||||||
Earnings from Service Operations | 2,163 | 5,655 | |||||||
Rental Operations revenues and expenses excluded from PNOI | 5,899 | 19,164 | |||||||
Non-Segment Items | (90,468 | ) | (20,527 | ) | |||||
Income from continuing operations before income taxes | $ | 55,707 | $ | 129,115 |
Three Months Ended June 30, | ||||
2015 | 2014 | |||
Number of properties | 515 | 515 | ||
Square feet (in thousands) (1) | 103,915 | 103,915 | ||
Average commencement occupancy percentage (2) | 96.4% | 94.4% | ||
Average rental rate - cash basis (3) | $5.05 | $5.00 | ||
(1) Includes the total square feet of the consolidated properties that are in the same property population as well as 5.6 million square feet of space for unconsolidated joint ventures, which represents our ratable share of the 16.8 million total square feet of space for buildings owned by unconsolidated joint ventures that are in the same property population. | ||||
(2) Commencement occupancy represents the percentage of total square feet where the leases have commenced. | ||||
(3) Represents the average annualized contractual rent per square foot for the three-month periods ended June 30, 2015 and 2014 for tenants in occupancy in properties in the same property population. Cash rent does not include the tenant's obligation to pay property operating expenses and real estate taxes. If a tenant was within a free rent period at June 30, 2015 or 2014 its rent would equal zero for purposes of this metric. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Rental and related revenue from continuing operations | $ | 201,996 | $ | 204,780 | $ | 416,611 | $ | 413,426 | |||||||
General contractor and service fee revenue | 23,901 | 69,512 | 76,722 | 125,332 | |||||||||||
Operating income | 181,266 | 181,220 | 269,466 | 240,289 | |||||||||||
General Partner | |||||||||||||||
Net income attributable to common shareholders | $ | 449,380 | $ | 127,688 | $ | 514,624 | $ | 146,371 | |||||||
Weighted average common shares outstanding | 345,098 | 331,753 | 344,849 | 329,442 | |||||||||||
Weighted average common shares and potential dilutive securities | 349,161 | 336,414 | 348,945 | 334,102 | |||||||||||
Partnership | |||||||||||||||
Net income attributable to common unitholders | $ | 454,142 | $ | 129,381 | $ | 520,085 | $ | 148,314 | |||||||
Weighted average Common Units outstanding | 348,728 | 336,139 | 348,511 | 333,828 | |||||||||||
Weighted average Common Units and potential dilutive securities | 349,161 | 336,414 | 348,945 | 334,102 | |||||||||||
General Partner and Partnership | |||||||||||||||
Basic income per common share or Common Unit: | |||||||||||||||
Continuing operations | $ | 0.16 | $ | 0.36 | $ | 0.27 | $ | 0.35 | |||||||
Discontinued operations | $ | 1.14 | $ | 0.02 | $ | 1.22 | $ | 0.09 | |||||||
Diluted income per common share or Common Unit: | |||||||||||||||
Continuing operations | $ | 0.16 | $ | 0.36 | $ | 0.27 | $ | 0.35 | |||||||
Discontinued operations | $ | 1.14 | $ | 0.02 | $ | 1.22 | $ | 0.09 | |||||||
Number of in-service consolidated properties at end of period | 505 | 610 | 505 | 610 | |||||||||||
In-service consolidated square footage at end of period | 117,191 | 123,736 | 117,191 | 123,736 | |||||||||||
Number of in-service joint venture properties at end of period | 78 | 105 | 78 | 105 | |||||||||||
In-service joint venture square footage at end of period | 19,893 | 21,975 | 19,893 | 21,975 |
Three Months Ended June 30, | |||||||
2015 | 2014 | ||||||
Rental and related revenue: | |||||||
Industrial | $ | 135,487 | $ | 128,263 | |||
Medical Office | 40,274 | 34,954 | |||||
Office | 23,691 | 38,586 | |||||
Other | 2,544 | 2,977 | |||||
Total rental and related revenue from continuing operations | $ | 201,996 | $ | 204,780 | |||
Rental and Related Revenue from Discontinued Operations | 49 | 29,331 | |||||
Total Rental and Related Revenue from Continuing and Discontinued Operations | $ | 202,045 | $ | 234,111 |
• | The sale of 79 properties since January 1, 2014, which did not meet the criteria to be classified within discontinued operations resulted in a $22.2 million decrease in rental and related revenue from continuing operations in the three months ended June 30, 2015, as compared to the same period in 2014. |
• | We acquired six properties and placed 44 developments in service from January 1, 2014 to June 30, 2015, which provided incremental revenues of $11.5 million in the second quarter of 2015, as compared to the same period in 2014, which partially offset the overall decrease in rental and related revenue from continuing operations. |
• | Increased occupancy within our same property portfolio also partially offset the impact of dispositions on rental and related revenues from continuing operations. Average commencement occupancy in our same property portfolio increased by 2.0% from the three months ended June 30, 2014. |
Three Months Ended June 30, | |||||||
2015 | 2014 | ||||||
Rental expenses: | |||||||
Industrial | $ | 12,458 | $ | 12,270 | |||
Medical Office | 8,068 | 7,163 | |||||
Office | 7,302 | 11,268 | |||||
Other | 2,266 | 1,520 | |||||
Total rental expenses from continuing operations | $ | 30,094 | $ | 32,221 | |||
Rental Expenses from Discontinued Operations | 181 | 7,698 | |||||
Total Rental Expenses from Continuing and Discontinued Operations | $ | 30,275 | $ | 39,919 | |||
Real estate taxes: | |||||||
Industrial | $ | 20,447 | $ | 19,358 | |||
Medical Office | 4,697 | 3,911 | |||||
Office | 2,468 | 4,858 | |||||
Other | 135 | 525 | |||||
Total real estate tax expense from continuing operations | $ | 27,747 | $ | 28,652 | |||
Real Estate Tax Expense from Discontinued Operations | (168 | ) | 3,403 | ||||
Total Real Estate Tax Expense from Continuing and Discontinued Operations | $ | 27,579 | $ | 32,055 |
Three Months Ended June 30, | |||||||
2015 | 2014 | ||||||
Service Operations: | |||||||
General contractor and service fee revenue | $ | 23,901 | $ | 69,512 | |||
General contractor and other services expenses | (21,738 | ) | (63,857 | ) | |||
Net earnings from Service Operations | $ | 2,163 | $ | 5,655 |
General and administrative expenses - three-month period ended June 30, 2014 | $ | 10.4 | |
Decrease to overall pool of overhead costs (1) | (6.9 | ) | |
Overhead restructuring charges (2) | 7.2 | ||
Decreased absorption of costs by wholly owned leasing and development activities (3) | 1.2 | ||
Decreased allocation of costs to Service Operations and Rental Operations (4) | 7.3 | ||
General and administrative expenses - three-month period ended June 30, 2015 | $ | 19.2 |
Six Months Ended June 30, | |||||||
2015 | 2014 | ||||||
Rental and related revenue: | |||||||
Industrial | $ | 283,115 | $ | 261,554 | |||
Medical Office | 80,302 | 68,264 | |||||
Office | 48,826 | 77,565 | |||||
Other | 4,368 | 6,043 | |||||
Total rental and related revenue from continuing operations | $ | 416,611 | $ | 413,426 | |||
Rental and Related Revenue from Discontinued Operations | 32,164 | 59,403 | |||||
Total Rental and Related Revenue from Continuing and Discontinued Operations | $ | 448,775 | $ | 472,829 |
• | We acquired six properties, of which five were industrial and one was medical office, and placed 44 developments in service from January 1, 2014 to June 30, 2015, which provided incremental revenues of $26.6 million in the six months ended June 30, 2015, as compared to the same period in 2014. |
• | Increased occupancy within our same property portfolio was the primary reason for the remaining increase in rental and related revenues from continuing operations. Average commencement occupancy in our same property portfolio increased by 2.0% from the six months ended June 30, 2014. |
• | Partially offsetting the aforementioned increases was the sale of 79 properties that did not meet the criteria for inclusion within discontinued operations, since January 1, 2014, which resulted in a $35.7 million decrease in rental and related revenue from continuing operations in the six months ended June 30, 2015, as compared to the same period in 2014. |
Six Months Ended June 30, | |||||||
2015 | 2014 | ||||||
Rental expenses: | |||||||
Industrial | $ | 29,787 | $ | 30,643 | |||
Medical Office | 16,241 | 16,141 | |||||
Office | 16,187 | 24,165 | |||||
Other | 4,003 | 3,313 | |||||
Total rental expenses from continuing operations | $ | 66,218 | $ | 74,262 | |||
Rental Expenses from Discontinued Operations | 8,971 | 16,631 | |||||
Total Rental Expenses from Continuing and Discontinued Operations | $ | 75,189 | $ | 90,893 | |||
Real estate taxes: | |||||||
Industrial | $ | 43,259 | $ | 39,030 | |||
Medical Office | 9,195 | 7,848 | |||||
Office | 5,448 | 9,727 | |||||
Other | 624 | 1,250 | |||||
Total real estate tax expense from continuing operations | $ | 58,526 | $ | 57,855 | |||
Real Estate Tax Expense from Discontinued Operations | 3,428 | 6,873 | |||||
Total Real Estate Tax Expense from Continuing and Discontinued Operations | $ | 61,954 | $ | 64,728 |
Six Months Ended June 30, | |||||||
2015 | 2014 | ||||||
Service Operations: | |||||||
General contractor and service fee revenue | $ | 76,722 | $ | 125,332 | |||
General contractor and other services expenses | (68,762 | ) | (111,128 | ) | |||
Net earnings from Service Operations | $ | 7,960 | $ | 14,204 |
General and administrative expenses - six months ended June 30, 2014 | $ | 25.1 | |
Decrease to overall pool of overhead costs (1) | (6.5 | ) | |
Overhead restructuring charges (2) | 7.2 | ||
Decreased absorption of costs by wholly owned leasing and development activities (3) | 3.3 | ||
Decreased allocation of costs to Service Operations and Rental Operations (4) | 7.1 | ||
General and administrative expenses - six months ended June 30, 2015 | $ | 36.2 |
• | property investment; |
• | leasing/capital costs; |
• | dividends and distributions to shareholders and unitholders; |
• | long-term debt maturities; |
• | opportunistic repurchases of outstanding debt and preferred stock; and |
• | other contractual obligations. |
Six Months Ended June 30, | |||||||
2015 | 2014 | ||||||
Second generation tenant improvements | $ | 14,697 | $ | 24,475 | |||
Second generation leasing costs | 13,984 | 18,573 | |||||
Building improvements | 2,190 | 1,319 | |||||
Total second generation capital expenditures | $ | 30,871 | $ | 44,367 | |||
Development of real estate investments | $ | 109,617 | $ | 226,575 | |||
Other deferred leasing costs | $ | 22,302 | $ | 14,980 |
Six Months Ended June 30, | |||||||
2015 | 2014 | ||||||
Industrial | $ | 20,905 | $ | 24,225 | |||
Medical Office | 632 | 788 | |||||
Office | 9,304 | 18,855 | |||||
Non-reportable segments | 30 | 499 | |||||
Total | $ | 30,871 | $ | 44,367 |
Future Repayments | ||||||||||||||
Year | Scheduled Amortization | Maturities | Total | Weighted Average Interest Rate of Future Repayments | ||||||||||
Remainder of 2015 | $ | 6,270 | $ | 11,183 | $ | 17,453 | 6.02 | % | ||||||
2016 | 11,079 | 518,132 | 529,211 | 6.14 | % | |||||||||
2017 | 9,260 | 341,035 | 350,295 | 5.93 | % | |||||||||
2018 | 7,768 | 285,611 | 293,379 | 6.08 | % | |||||||||
2019 | 6,936 | 647,976 | 654,912 | 5.37 | % | |||||||||
2020 | 5,381 | 128,660 | 134,041 | 6.71 | % | |||||||||
2021 | 3,416 | 259,047 | 262,463 | 3.99 | % | |||||||||
2022 | 3,611 | 600,000 | 603,611 | 4.20 | % | |||||||||
2023 | 3,817 | 250,000 | 253,817 | 3.75 | % | |||||||||
2024 | 4,036 | 300,000 | 304,036 | 3.92 | % | |||||||||
2025 | 3,938 | — | 3,938 | 5.44 | % | |||||||||
Thereafter | 2,387 | 50,000 | 52,387 | 7.24 | % | |||||||||
$ | 67,899 | $ | 3,391,644 | $ | 3,459,543 | 5.13 | % |
Six Months Ended June 30, | |||||||
2015 | 2014 | ||||||
General Partner | |||||||
Net Cash Provided by Operating Activities | $ | 175.7 | $ | 204.0 | |||
Net Cash Provided by (Used for) Investing Activities | $ | 1,018.5 | $ | (129.8 | ) | ||
Net Cash Used for Financing Activities | $ | (1,191.9 | ) | $ | (72.3 | ) | |
Partnership | |||||||
Net Cash Provided by Operating Activities | $ | 175.7 | $ | 204.0 | |||
Net Cash Provided by (Used for) Investing Activities | $ | 1,018.5 | $ | (129.8 | ) | ||
Net Cash Used for Financing Activities | $ | (1,191.9 | ) | $ | (72.3 | ) |
• | During the six months ended June 30, 2015, we paid cash of approximately $20.9 million and $25.6 million for real estate and undeveloped land acquisitions, compared to $85.2 million and $11.8 million, respectively, for real estate and undeveloped land acquisitions in the same period in 2014. |
• | Real estate development costs were $109.6 million during the six months ended June 30, 2015, compared to $226.6 million for the same period in 2014. |
• | Sales of land and depreciated property provided $1.31 billion in net proceeds for the six months ended June 30, 2015, compared to $213.0 million for the same period in 2014. |
• | For the six months ended June 30, 2015, we received $67.0 million in capital distributions from unconsolidated joint ventures, compared to $40.3 million during the same period in 2014. |
• | For the six months ended June 30, 2015, we repaid the $106.0 million of net borrowings on the Partnership's unsecured line of credit, compared to a paying down $28.0 million of net borrowings for the same period in 2014. |
• | During the six months ended June 30, 2015, the General Partner repaid fifteen secured loans, which included early repayment premiums of $4.2 million for six loans that were repaid prior to their scheduled maturity dates, for cash payments totaling $201.9 million, compared to repaying six secured loans totaling $82.2 million during the same period in 2014. |
• | During the six months ended June 30, 2015, the General Partner repaid a $250.0 million senior unsecured note at its maturity date. The General partner also repurchased unsecured notes, primarily through the Tender Offer, for cash payments totaling $508.3 million, which included repurchase premiums, early repayment premiums and transaction costs of $77.1 million. There were no repayments or repurchases during the six months ended June 30, 2014. |
• | Changes in book overdrafts are classified as financing activities within our Consolidated Statements of Cash Flows. There were book overdrafts of $2.4 million at June 30, 2015, compared to $20.1 million at June 30, 2014. |
• | During the six months ended June 30, 2015, the General Partner issued 233,000 common shares for net proceeds of approximately $4.8 million, compared to 11.0 million common shares for net proceeds of $191.1 million during the same period in 2014. |
• | During the six months ended June 30, 2014, the General Partner repurchased preferred shares, among all series outstanding during the period, in the open market. In total, the General Partner repurchased preferred shares having a redemption value of $18.8 million for $17.7 million. There were no such repurchases during the six months ended June 30, 2015. |
Remainder of 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Face Value | Fair Value | ||||||||||||||||||||||||
Fixed rate secured debt | $ | 16,022 | $ | 376,541 | $ | 72,472 | $ | 4,783 | $ | 272,215 | $ | 32,235 | $ | 774,268 | $ | 845,979 | |||||||||||||||
Weighted average interest rate | 6.12 | % | 5.91 | % | 5.89 | % | 6.46 | % | 7.63 | % | 5.93 | % | 6.52 | % | |||||||||||||||||
Variable rate secured debt | $ | 300 | $ | 300 | $ | 300 | $ | 300 | $ | 300 | $ | 1,900 | $ | 3,400 | $ | 3,400 | |||||||||||||||
Weighted average interest rate | 0.10 | % | 0.10 | % | 0.10 | % | 0.10 | % | 0.10 | % | 0.10 | % | 0.10 | % | |||||||||||||||||
Fixed rate unsecured debt | $ | 1,131 | $ | 152,370 | $ | 277,523 | $ | 288,296 | $ | 132,397 | $ | 1,580,158 | $ | 2,431,875 | $ | 2,559,439 | |||||||||||||||
Weighted average interest rate | 6.26 | % | 6.71 | % | 5.95 | % | 6.08 | % | 8.33 | % | 4.33 | % | 5.09 | % | |||||||||||||||||
Variable rate unsecured notes | $ | — | $ | — | $ | — | $ | — | $ | 250,000 | $ | — | $ | 250,000 | $ | 250,000 | |||||||||||||||
Rate at June 30, 2015 | N/A | N/A | N/A | N/A | 1.34% | N/A | 1.34 | % |
3.1 | Sixth Amended and Restated Articles of Incorporation of the General Partner (filed as Exhibit 3.1 to the combined Current Report on Form 8-K of the General Partner and the Partnership as filed with the SEC on January 5, 2015, and incorporated herein by this reference). | ||
3.2 | Fourth Amended and Restated Bylaws of the General Partner (filed as Exhibit 3.2 to the General Partner's Current Report on Form 8-K as filed with the SEC on July 30, 2009, and incorporated herein by this reference). | ||
3.3 | Certificate of Limited Partnership of the Partnership, dated September 17, 1993 (filed as Exhibit 3.1(i) to the Partnership's Annual Report on Form 10-K for the year ended December 31, 2006 as filed with the SEC on March 13, 2007, and incorporated herein by this reference) (File No. 000-20625). | ||
3.4 (i) | Fifth Amended and Restated Agreement of Limited Partnership of the Partnership (filed as Exhibit 3.2 to the combined Current Report on Form 8-K of the General Partner and the Partnership as filed with the SEC on May 5, 2014, and incorporated herein by this reference). | ||
3.4 (ii) | First Amendment to Fifth Amended and Restated Agreement of Limited Partnership of the Partnership (filed as Exhibit 3.2 to the combined Current Report on Form 8-K of the General Partner and the Partnership as filed with the SEC on August 6, 2014, and incorporated herein by this reference). | ||
3.4 (iii) | Second Amendment to Fifth Amended and Restated Agreement of Limited Partnership of the Partnership (filed as Exhibit 3.2 to the combined Current Report on Form 8-K of the General Partner and the Partnership as filed with the SEC on December 16, 2014, and incorporated herein by this reference). | ||
3.4 (iv) | Third Amendment to Fifth Amended and Restated Agreement of Limited Partnership of the Partnership (filed as Exhibit 3.2 to the combined Current Report on Form 8-K of the General Partner and the Partnership as filed with the SEC on January 5, 2015, and incorporated herein by this reference). | ||
3.4 (v) | Fourth Amendment to Fifth Amended and Restated Agreement of Limited Partnership of the Partnership (filed as Exhibit 3.1 to the combined Current Report on Form 8-K of the General Partner and the Partnership as filed with the SEC on January 29, 2015, and incorporated herein by this reference). | ||
10.1 | Duke Realty Corporation 2015 Long-Term Incentive Plan (filed as Exhibit 10.1 to the combined Current Report on Form 8-K of the General Partner and the Partnership, as filed with the SEC on May 14, 2015, and incorporated herein by this reference).# | ||
10.2 | Consulting Agreement by and between Duke Realty Services Limited Partnership and BRE II, LLC, dated as of May 20, 2015 (filed as Exhibit 10.1 to the combined Current Report on Form 8-K of the General Partner and the Partnership, as filed with the SEC on May 27, 2015, and incorporated herein by this reference).# | ||
11.1 | Statement Regarding Computation of Earnings.*** | ||
12.1 | Statement of Computation of Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Charges and Preferred Dividends of the General Partner.* | ||
12.2 | Statement of Computation of Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Charges and Preferred Distributions of the Partnership.* | ||
31.1 | Rule 13a-14(a) Certification of the Chief Executive Officer of the General Partner.* | ||
31.2 | Rule 13a-14(a) Certification of the Chief Financial Officer of the General Partner.* | ||
31.3 | Rule 13a-14(a) Certification of the Chief Executive Officer for the Partnership.* | ||
31.4 | Rule 13a-14(a) Certification of the Chief Financial Officer for the Partnership.* | ||
32.1 | Section 1350 Certification of the Chief Executive Officer of the General Partner.** | ||
32.2 | Section 1350 Certification of the Chief Financial Officer of the General Partner.** | ||
32.3 | Section 1350 Certification of the Chief Executive Officer for the Partnership.** | ||
32.4 | Section 1350 Certification of the Chief Financial Officer for the Partnership.** | ||
101 | The following materials from the General Partner's and the Partnership's Quarterly Report on Form 10-Q for the quarter ended June 30, 2015 formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations and Comprehensive Income, (iii) the Consolidated Statements of Cash Flows, (iv) the Consolidated Statements of Changes in Equity, and (v) the Notes to Consolidated Financial Statements. |
* | Filed herewith. |
# | Represents management contract or compensatory plan or arrangement. |
** | The certifications attached as Exhibits 32.1, 32.2, 32.3 and 32.4 accompany this Quarterly Report on Form 10-Q and are "furnished" to the Securities and Exchange Commission pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed "filed" by the General Partner or the Partnership, respectively, for purposes of Section 18 of the Securities Exchange Act of 1934, as amended. |
*** | Data required by Financial Accounting Standards Board Auditing Standards Codification No. 260 is provided in Note 9 to the Consolidated Financial Statements included in this report. |
DUKE REALTY CORPORATION | ||
/s/ Dennis D. Oklak | ||
Dennis D. Oklak | ||
Chairman and Chief Executive Officer | ||
/s/ Mark A. Denien | ||
Mark A. Denien | ||
Executive Vice President and Chief Financial Officer | ||
DUKE REALTY LIMITED PARTNERSHIP | ||
By: DUKE REALTY CORPORATION, its general partner | ||
/s/ Dennis D. Oklak | ||
Dennis D. Oklak | ||
Chairman and Chief Executive Officer of the General Partner | ||
/s/ Mark A. Denien | ||
Mark A. Denien | ||
Executive Vice President and Chief Financial Officer of the General Partner | ||
Date: | August 5, 2015 | |
Six Months Ended June 30, 2015 | Year Ended December 31, 2014 | Year Ended December 31, 2013 | Year Ended December 31, 2012 | Year Ended December 31, 2011 | Year Ended December 31, 2010 | |||||||||||||||||||||||||
Net income (loss) from continuing operations, less preferred dividends | $ | 95,430 | $ | 190,743 | $ | 27,886 | $ | (126,873 | ) | $ | (61,143 | ) | $ | (20,215 | ) | |||||||||||||||
Preferred dividends | — | 24,943 | 31,616 | 46,438 | 60,353 | 69,468 | ||||||||||||||||||||||||
Interest expense | 92,567 | 196,090 | 202,174 | 202,109 | 181,734 | 146,987 | ||||||||||||||||||||||||
Earnings before fixed charges | $ | 187,997 | $ | 411,776 | $ | 261,676 | $ | 121,674 | $ | 180,944 | $ | 196,240 | ||||||||||||||||||
Interest expense | $ | 92,567 | $ | 196,090 | $ | 202,174 | $ | 202,109 | $ | 181,734 | $ | 146,987 | ||||||||||||||||||
Interest costs capitalized | 6,930 | 17,619 | 16,756 | 9,357 | 4,335 | 11,498 | ||||||||||||||||||||||||
Total fixed charges | 99,497 | 213,709 | 218,930 | 211,466 | 186,069 | 158,485 | ||||||||||||||||||||||||
Preferred dividends | — | 24,943 | 31,616 | 46,438 | 60,353 | 69,468 | ||||||||||||||||||||||||
Total fixed charges and preferred dividends | $ | 99,497 | $ | 238,652 | $ | 250,546 | $ | 257,904 | $ | 246,422 | $ | 227,953 | ||||||||||||||||||
Ratio of earnings to fixed charges | 1.89 | 1.93 | 1.20 | N/A | (1) | N/A | (3) | 1.24 | ||||||||||||||||||||||
Ratio of earnings to fixed charges and preferred dividends | 1.89 | 1.73 | 1.04 | N/A | (2) | N/A | (4) | N/A | (5) |
(1) | N/A - The ratio is less than 1.0; deficit of $89.8 million exists for the year ended December 31, 2012. The calculation of earnings includes $305.6 million of non-cash depreciation and amortization expense. |
(2) | N/A - The ratio is less than 1.0; deficit of $136.2 million exists for the year ended December 31, 2012. The calculation of earnings includes $305.6 million of non-cash depreciation and amortization expense. |
(3) | N/A - The ratio is less than 1.0; deficit of $5.1 million exists for the year ended December 31, 2011. The calculation of earnings includes $263.4 million of non-cash depreciation and amortization expense. |
(4) | N/A - The ratio is less than 1.0; deficit of $65.5 million exists for the year ended December 31, 2011. The calculation of earnings includes $263.4 million of non-cash depreciation and amortization expense. |
(5) | N/A - The ratio is less than 1.0; deficit of $31.7 million exists for the year ended December 31, 2010. The calculation of earnings includes $216.2 million of non-cash depreciation and amortization expense. |
Six Months Ended June 30, 2015 | Year Ended December 31, 2014 | Year Ended December 31, 2013 | Year Ended December 31, 2012 | Year Ended December 31, 2011 | Year Ended December 31, 2010 | |||||||||||||||||||||||||
Net income (loss) from continuing operations, less preferred distributions | $ | 95,430 | $ | 190,743 | $ | 27,886 | $ | (126,873 | ) | $ | (61,143 | ) | $ | (20,215 | ) | |||||||||||||||
Preferred distributions | — | 24,943 | 31,616 | 46,438 | 60,353 | 69,468 | ||||||||||||||||||||||||
Interest expense | 92,567 | 196,090 | 202,174 | 202,109 | 181,734 | 146,987 | ||||||||||||||||||||||||
Earnings before fixed charges | $ | 187,997 | $ | 411,776 | $ | 261,676 | $ | 121,674 | $ | 180,944 | $ | 196,240 | ||||||||||||||||||
Interest expense | $ | 92,567 | $ | 196,090 | $ | 202,174 | $ | 202,109 | $ | 181,734 | $ | 146,987 | ||||||||||||||||||
Interest costs capitalized | 6,930 | 17,619 | 16,756 | 9,357 | 4,335 | 11,498 | ||||||||||||||||||||||||
Total fixed charges | 99,497 | 213,709 | 218,930 | 211,466 | 186,069 | 158,485 | ||||||||||||||||||||||||
Preferred distributions | — | 24,943 | 31,616 | 46,438 | 60,353 | 69,468 | ||||||||||||||||||||||||
Total fixed charges and preferred distributions | $ | 99,497 | $ | 238,652 | $ | 250,546 | $ | 257,904 | $ | 246,422 | $ | 227,953 | ||||||||||||||||||
Ratio of earnings to fixed charges | 1.89 | 1.93 | 1.20 | N/A | (1) | N/A | (3) | 1.24 | ||||||||||||||||||||||
Ratio of earnings to fixed charges and preferred distributions | 1.89 | 1.73 | 1.04 | N/A | (2) | N/A | (4) | N/A | (5) |
(1) | N/A - The ratio is less than 1.0; deficit of $89.8 million exists for the year ended December 31, 2012. The calculation of earnings includes $305.6 million of non-cash depreciation and amortization expense. |
(2) | N/A - The ratio is less than 1.0; deficit of $136.2 million exists for the year ended December 31, 2012. The calculation of earnings includes $305.6 million of non-cash depreciation and amortization expense. |
(3) | N/A - The ratio is less than 1.0; deficit of $5.1 million exists for the year ended December 31, 2011. The calculation of earnings includes $263.4 million of non-cash depreciation and amortization expense. |
(4) | N/A - The ratio is less than 1.0; deficit of $65.5 million exists for the year ended December 31, 2011. The calculation of earnings includes $263.4 million of non-cash depreciation and amortization expense. |
(5) | N/A - The ratio is less than 1.0; deficit of $31.7 million exists for the year ended December 31, 2010. The calculation of earnings includes $216.2 million of non-cash depreciation and amortization expense. |
1 | I have reviewed this Quarterly Report on Form 10-Q of Duke Realty Corporation; |
2 | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3 | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4 | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5 | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Dennis D. Oklak |
Dennis D. Oklak |
Chairman and Chief Executive Officer |
1 | I have reviewed this Quarterly Report on Form 10-Q of Duke Realty Corporation; |
2 | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3 | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4 | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5 | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Mark A. Denien |
Mark A. Denien |
Executive Vice President and Chief Financial Officer |
1 | I have reviewed this Quarterly Report on Form 10-Q of Duke Realty Limited Partnership; |
2 | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3 | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4 | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5 | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Dennis D. Oklak |
Dennis D. Oklak |
Chairman and Chief Executive Officer of the General Partner |
1 | I have reviewed this Quarterly Report on Form 10-Q of Duke Realty Limited Partnership; |
2 | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3 | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4 | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5 | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Mark A. Denien |
Mark A. Denien |
Executive Vice President and Chief Financial Officer of the General Partner |
/s/ Dennis D. Oklak | |
Dennis D. Oklak | |
Chairman and Chief Executive Officer | |
Date: | August 5, 2015 |
/s/ Mark A. Denien | |
Mark A. Denien | |
Executive Vice President and Chief Financial Officer | |
Date: | August 5, 2015 |
/s/ Dennis D. Oklak | |
Dennis D. Oklak | |
Chairman and Chief Executive Officer of the General Partner | |
Date: | August 5, 2015 |
/s/ Mark A. Denien | |
Mark A. Denien | |
Executive Vice President and Chief Financial Officer of the General Partner | |
Date: | August 5, 2015 |
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Subsequent Events (Details) - 3 months ended Sep. 30, 2015 - Declaration of Dividends [Member] - Common Stock [Member] - $ / shares |
Total |
---|---|
Subsequent Event [Line Items] | |
Common stock dividends declared per share | $ 0.17 |
Record date | Aug. 14, 2015 |
Payment date | Aug. 31, 2015 |
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