Partners' Capital

6 Months Ended

Jun. 30, 2013

Partners' Capital

7. Partners’ Capital

Preferred Contributions

On April 11, 2013, the Company redeemed the remaining 4,000,000 Depositary Shares, each representing 1/10,000th of a share, of the Company's 7.25% Series J Cumulative Redeemable Preferred Stock, $0.01 par value (the "Series J Preferred Stock"), at a redemption price of $25.00 per Depositary Share, and paid a pro-rated second quarter dividend of $0.055382 per Depositary Share, totaling $221. An equivalent number of Series J Cumulative Redeemable Preferred Units (the "Series J Preferred Units") were redeemed on April 11, 2013 as well. Due to the redemption of the Series J Preferred Units, the remaining initial offering costs associated with the issuance of the Series J Preferred Units, as well as costs associated with the redemption, totaling $3,546 are reflected as a deduction from net income to arrive at net income available to Unitholders and participating securities in determining earnings per unit for the three and six months ended June 30, 2013.

Unit Contributions

During the six months ended June 30, 2013, the Company issued 8,400,000 shares of the Company’s common stock in an underwritten public offering. Net proceeds were approximately $132,050. The proceeds were contributed to us in exchange for Units and are reflected in our financial statements as a general partner contribution.

On March 1, 2012, the Company and the Operating Partnership entered into distribution agreements with sales agents to sell up to 12,500,000 shares of the Company's common stock, for up to $125,000 aggregate gross sale proceeds, from time to time in "at-the-market" offerings (the "ATM"). During the six months ended June 30, 2013, the Company issued 2,315,704 shares of the Company's common stock under the ATM resulting in net proceeds to the Company of approximately $41,770. These proceeds were contributed to us in exchange for an equivalent number of Units and are reflected in our financial statements as a general partner contribution. Under the terms of the ATM, sales are to be made primarily in transactions that are deemed to be "at the market" offerings, including sales made directly on the New York Stock Exchange or sales made through a market maker other than on an exchange or by privately negotiated transactions.

During the six months ended June 30, 2013, 85,028 limited partnership units were converted into an equivalent number of general partnership units, resulting in a reclassification of $804 between Limited Partners Units and General Partner Units.

During the six months ended June 30, 2013, the Company awarded 284,461 shares of restricted stock awards to certain employees, which had a fair value of approximately $4,719 on the date of approval by the Compensation Committee of the Board of Directors. We issued Units to the Company in the same amounts. These restricted stock awards vest over a period of three years. Compensation expense will be charged to earnings over the vesting period for the shares expected to vest except if the recipient is not required to provide future service in exchange for vesting of the shares. If vesting of a recipient's restricted stock is not contingent upon future service, the expense is recognized immediately at the date of grant. During the six months ended June 30, 2013, we recognized $1,008 of compensation expense related to restricted shares granted during the first quarter to our Chief Executive Officer for which future service was not required.

We recognized $841 and $2,667 for the three and six months ended June 30, 2013, respectively, and $1,299 and $2,398 for the three and six months ended June 30, 2012, respectively, in restricted stock amortization related to restricted stock and unit awards, of which $4 and $13, respectively, was capitalized in connection with development activities for the three and six months ended June 30, 2013. There was no restricted stock amortization related to restricted stock and unit awards capitalized in connection with development activities for the three and six months ended June 30, 2012. At June 30, 2013, we had $5,452 in unrecognized compensation related to unvested restricted stock and unit awards. The weighted average period that the unrecognized compensation is expected to be recognized is 1.05 years.

Distributions

The coupon rate of our Series F Preferred Units resets every quarter at 2.375% plus the greater of (i) the 30 year Treasury constant maturity treasury (“CMT”) Rate, (ii) the 10 year Treasury CMT Rate or (iii) 3 month LIBOR. For the second quarter of 2013, the new coupon rate was 5.515%. See Note 11 for additional derivative information related to the Series F Preferred Units coupon rate reset.

The following table summarizes distributions accrued during the six months ended June 30, 2013:

	Six Months Ended June 30, 2013
	Distribution per Unit		Total Distribution
General Partner/Limited Partner Units	$	0.17	$	19,286
Series F Preferred Units	$	2,725.32	$	1,363
Series G Preferred Units	$	3,618.00	$	905
Series J Preferred Units *	$	5,085.12	$	2,034
Series K Preferred Units	$	9,062.60	$	1,812

* The second quarter 2013 distribution per unit was pro-rated as discussed in the "Preferred Contributions" section.