Guarantor and Non-Guarantor Financial Information (Tables)

6 Months Ended

Jun. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidated Balance Sheets

Condensed Consolidated Balance Sheets
As of June 30, 2017
(in thousands)	Issuer		Guarantor			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets:
Real estate assets, at cost:
Land	$	43,929	$	—		$	571,005	$	—		$	614,934
Buildings and improvements, less accumulated depreciation	209,091		—			2,533,536		(300		)	2,742,327
Intangible lease assets, less accumulated amortization	453		—			84,536		—			84,989
Construction in progress	572		—			15,079		—			15,651
Real estate assets held for sale, net	—		—			225,071		—			225,071
Total real estate assets	254,045		—			3,429,227		(300		)	3,682,972
Investments in and amounts due from unconsolidated joint ventures	7,762		—			—		—			7,762
Cash and cash equivalents	5,181		150			4,265		—			9,596
Tenant and straight-line rent receivables, net	17,266		—			184,466		—			201,732
Advances to affiliates	6,465,350		1,316,446			—		(7,781,796		)	—
Investment in subsidiary	—		3,569,494			178		(3,569,672		)	—
Notes receivable	88,910		—			95,790		(184,700		)	—
Prepaid expenses, restricted cash, escrows, and other assets	5,007		76			26,752		(1,091		)	30,744
Goodwill	98,918		—			—		—			98,918
Deferred lease costs, net	14,500		—			263,866		—			278,366
Other assets held for sale, net	—		—			10,222		—			10,222
Total assets	$	6,956,939	$	4,886,166		$	4,014,766	$	(11,537,559	)	$	4,320,312
Liabilities:
Debt, net	$	1,735,196	$	—		$	502,686	$	(184,700	)	$	2,053,182
Accounts payable, accrued expenses, and accrued capital expenditures	16,328		565			95,209		(1,091		)	111,011
Advances from affiliates	729,007		5,100,839			2,050,205		(7,880,051		)	—
Deferred income	2,934		—			24,482		—			27,416
Intangible lease liabilities, net	—		—			43,328		—			43,328
Interest rate swaps	5,061		—			—		—			5,061
Total liabilities	2,488,526		5,101,404			2,715,910		(8,065,842		)	2,239,998
Stockholders’ Equity:
Common stock	—		1,455			—		—			1,455
Additional paid-in capital	3,565,494		3,678,434			1,306		(3,569,672		)	3,675,562
Retained/(cumulative distributions in excess of) earnings	898,372		(3,895,127		)	1,295,681		97,955			(1,603,119		)
Other comprehensive loss	4,547		—			—		—			4,547
Piedmont stockholders’ equity	4,468,413		(215,238		)	1,296,987		(3,471,717		)	2,078,445
Noncontrolling interest	—		—			1,869		—			1,869
Total stockholders’ equity	4,468,413		(215,238		)	1,298,856		(3,471,717		)	2,080,314
Total liabilities and stockholders’ equity	$	6,956,939	$	4,886,166		$	4,014,766	$	(11,537,559	)	$	4,320,312

Condensed Consolidated Balance Sheets
As of December 31, 2016
(in thousands)	Issuer		Guarantor			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets:
Real estate assets, at cost:
Land	$	46,133	$	—		$	571,005	$	—		$	617,138
Buildings and improvements, less accumulated depreciation	228,194		—			2,526,212		(300		)	2,754,106
Intangible lease assets, less accumulated amortization	725		—			98,970		—			99,695
Construction in progress	145		—			34,669		—			34,814
Real estate assets held for sale, net	—		—			225,939		—			225,939
Total real estate assets	275,197		—			3,456,795		(300		)	3,731,692
Investments in and amounts due from unconsolidated joint ventures	7,360		—			—		—			7,360
Cash and cash equivalents	3,674		150			3,168		—			6,992
Tenant and straight-line rent receivables, net	20,159		—			170,124		—			190,283
Advances to affiliates	6,464,135		1,315,616			—		(7,779,751		)	—
Investment in subsidiary	—		3,630,564			181		(3,630,745		)	—
Notes receivable	88,910		—			95,790		(184,700		)	—
Prepaid expenses, restricted cash, escrows, and other assets	6,189		—			20,121		(1,897		)	24,413
Goodwill	98,918		—			—		—			98,918
Deferred lease costs, net	16,550		—			282,145		—			298,695
Other assets held for sale, net	—		—			9,815		—			9,815
Total assets	$	6,981,092	$	4,946,330		$	4,038,139	$	(11,597,393	)	$	4,368,168
Liabilities:
Debt, net	$	1,701,933	$	—		$	503,242	$	(184,700	)	$	2,020,475
Accounts payable, accrued expenses, and accrued capital expenditures	17,365		31,230			118,712		(1,897		)	165,410
Advances from affiliates	708,340		5,071,521			2,098,146		(7,878,007		)	—
Deferred income	5,206		—			23,200		—			28,406
Intangible lease liabilities, net	—		—			48,005		—			48,005
Interest rate swaps	8,169		—			—		—			8,169
Total liabilities	2,441,013		5,102,751			2,791,305		(8,064,604		)	2,270,465
Stockholders’ Equity:
Common stock	—		1,452			—		—			1,452
Additional paid-in capital	3,626,564		3,676,000			1,309		(3,630,745		)	3,673,128
Retained/(cumulative distributions in excess of) earnings	911,411		(3,833,873		)	1,243,643		97,956			(1,580,863		)
Other comprehensive income	2,104		—			—		—			2,104
Piedmont stockholders’ equity	4,540,079		(156,421		)	1,244,952		(3,532,789		)	2,095,821
Noncontrolling interest	—		—			1,882		—			1,882
Total stockholders’ equity	4,540,079		(156,421		)	1,246,834		(3,532,789		)	2,097,703
Total liabilities and stockholders’ equity	$	6,981,092	$	4,946,330		$	4,038,139	$	(11,597,393	)	$	4,368,168

Condensed Consolidated Statements of Income

Condensed Consolidated Statements of Income
For the three months ended June 30, 2017
(in thousands)	Issuer			Guarantor			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues:
Rental income	$	11,092		$	—		$	113,641		$	(485	)	$	124,248
Tenant reimbursements	2,964			—			21,207			(127		)	24,044
Property management fee revenue	—			—			4,577			(4,190		)	387
	14,056			—			139,425			(4,802		)	148,679
Expenses:
Property operating costs	5,853			—			54,728			(4,802		)	55,779
Depreciation	3,281			—			26,778			—			30,059
Amortization	803			—			18,511			—			19,314
General and administrative	1,528			81			6,427			—			8,036
	11,465			81			106,444			(4,802		)	113,188
Real estate operating income/(loss)	2,591			(81		)	32,981			—			35,491
Other income (expense):
Interest expense	(14,810		)	—			(7,262		)	3,651			(18,421		)
Other income/(expense)	2,240			—			1,449			(3,651		)	38
Equity in income of unconsolidated joint ventures	107			—			—			—			107
	(12,463		)	—			(5,813		)	—			(18,276		)
Income/(loss) from continuing operations	(9,872		)	(81		)	27,168			—			17,215
Discontinued operations:
Operating income	—			—			—			—			—
Income from discontinued operations	—			—			—			—			—
Gain/(loss) on sale of real estate assets, net	6,495			—			(3		)	—			6,492
Net income/(loss)	(3,377		)	(81		)	27,165			—			23,707
Less: Net loss applicable to noncontrolling interest	—			—			3			—			3
Net income/(loss) applicable to Piedmont	$	(3,377	)	$	(81	)	$	27,168		$	—		$	23,710

Condensed Consolidated Statements of Income
For the three months ended June 30, 2016
(in thousands)	Issuer			Guarantor			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues:
Rental income	$	14,661		$	—		$	97,860		$	(754	)	$	111,767
Tenant reimbursements	3,753			—			19,409			(76		)	23,086
Property management fee revenue	—			—			4,178			(3,724		)	454
	18,414			—			121,447			(4,554		)	135,307
Expenses:
Property operating costs	8,319			—			48,568			(4,595		)	52,292
Depreciation	4,476			—			27,080			—			31,556
Amortization	941			—			16,461			—			17,402
Impairment loss on real estate assets	8,258			—			2,692			—			10,950
General and administrative	8,107			92			10,213			(10,096		)	8,316
	30,101			92			105,014			(14,691		)	120,516
Real estate operating income/(loss)	(11,687		)	(92		)	16,433			10,137			14,791
Other income (expense):
Interest expense	(12,170		)	—			(6,666		)	2,423			(16,413		)
Other income/(expense)	1,735			282			365			(2,423		)	(41		)
Equity in income of unconsolidated joint ventures	110			—			—			—			110
	(10,325		)	282			(6,301		)	—			(16,344		)
Income/(loss) from continuing operations	(22,012		)	190			10,132			10,137			(1,553		)
Discontinued operations:
Operating loss	—			—			(1		)	—			(1		)
Loss from discontinued operations	—			—			(1		)	—			(1		)
Gain on sale of real estate assets, net	29,966			—			43,869			—			73,835
Net income	7,954			190			54,000			10,137			72,281
Less: Net income applicable to noncontrolling interest	—			—			(3		)	—			(3		)
Net income applicable to Piedmont	$	7,954		$	190		$	53,997		$	10,137		$	72,278

Condensed Consolidated Statements of Income
For the six months ended June 30, 2017
(in thousands)	Issuer			Guarantor			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues:
Rental income	$	22,517		$	—		$	226,125		$	(944	)	$	247,698
Tenant reimbursements	5,964			—			42,810			(230		)	48,544
Property management fee revenue	—			—			9,201			(8,301		)	900
	28,481			—			278,136			(9,475		)	297,142
Expenses:
Property operating costs	11,655			—			108,983			(9,475		)	111,163
Depreciation	6,744			—			54,083			—			60,827
Amortization	1,659			—			38,070			—			39,729
General and administrative	3,231			183			13,218			—			16,632
	23,289			183			214,354			(9,475		)	228,351
Real estate operating income/(loss)	5,192			(183		)	63,782			—			68,791
Other income (expense):
Interest expense	(29,254		)	—			(14,514		)	7,290			(36,478		)
Other income/(expense)	4,469			—			2,759			(7,290		)	(62		)
Equity in income of unconsolidated joint ventures	118			—			—			—			118
	(24,667		)	—			(11,755		)	—			(36,422		)
Income/(loss) from continuing operations	(19,475		)	(183		)	52,027			—			32,369
Discontinued operations:
Operating income	—			—			—			—			—
Income from discontinued operations	—			—			—			—			—
Gain on sale of real estate assets, net	6,434			—			5			—			6,439
Net income/(loss)	(13,041		)	(183		)	52,032			—			38,808
Less: Net loss applicable to noncontrolling interest	—			—			6			—			6
Net income/(loss) applicable to Piedmont	$	(13,041	)	$	(183	)	$	52,038		$	—		$	38,814

Condensed Consolidated Statements of Income
For the six months ended June 30, 2016
(in thousands)	Issuer			Guarantor			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues:
Rental income	$	30,127		$	—		$	197,896		$	(1,518	)	$	226,505
Tenant reimbursements	7,026			—			38,980			(169		)	45,837
Property management fee revenue	—			—			8,495			(7,518		)	977
	37,153			—			245,371			(9,205		)	273,319
Expenses:
Property operating costs	16,762			—			99,083			(9,274		)	106,571
Depreciation	9,376			—			53,962			—			63,338
Amortization	1,991			—			33,217			—			35,208
Impairment loss of real estate assets	8,259			—			2,691			—			10,950
General and administrative	15,615			168			19,864			(19,558		)	16,089
	52,003			168			208,817			(28,832		)	232,156
Real estate operating income/(loss)	(14,850		)	(168		)	36,554			19,627			41,163
Other income (expense):
Interest expense	(24,360		)	—			(13,404		)	4,966			(32,798		)
Other income/(expense)	4,400			282			537			(4,966		)	253
Equity in income of unconsolidated joint ventures	225			—			—			—			225
	(19,735		)	282			(12,867		)	—			(32,320		)
Net income/(loss)	(34,585		)	114			23,687			19,627			8,843
Discontinued operations:
Operating loss	—			—			(1		)	—			(1		)
Loss from discontinued operations	—			—			(1		)	—			(1		)
Gain on sale of real estate assets, net	29,962			—			43,853			—			73,815
Net income/(loss)	(4,623		)	114			67,539			19,627			82,657
Less: Net income applicable to noncontrolling interest	—			—			(7		)	—			(7		)
Net income/(loss) applicable to Piedmont	$	(4,623	)	$	114		$	67,532		$	19,627		$	82,650

Condensed Consolidated Statements of Cash Flows

Condensed Consolidated Statements of Cash Flows
For the six months ended June 30, 2017
(in thousands)	Issuer			Guarantor			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net Cash Provided by/(Used in) Operating Activities	$	(10,028	)	$	3,091		$	118,599		$	—	$	111,662
Cash Flows from Investing Activities:
Investment in real estate assets, consolidated joint venture, and real estate related intangibles, net of accruals	(757		)	—			(57,563		)	—		(58,320		)
Net sales proceeds from wholly-owned properties	23,032			—			(9		)	—		23,023
Investments in unconsolidated joint ventures	(284		)	—			—			—		(284		)
Deferred lease costs paid	(736		)	—			(8,827		)	—		(9,563		)
Net cash provided by/(used in) investing activities	21,255			—			(66,399		)	—		(45,144		)
Cash Flows from Financing Activities:
Debt issuance costs paid	(102		)	—			—			—		(102		)
Proceeds from debt	147,000			—			—			—		147,000
Repayments of debt	(115,000		)	—			(694		)	—		(115,694		)
Costs of issuance of common stock	—			(74		)	—			—		(74		)
Shares withheld to pay tax obligations related to employee stock compensation	—			(3,380		)	—			—		(3,380		)
(Distributions to)/repayments from affiliates	(41,618		)	92,020			(50,402		)	—		—
Dividends paid and discount on dividend reinvestments	—			(91,657		)	(7		)	—		(91,664		)
Net cash used in financing activities	(9,720		)	(3,091		)	(51,103		)	—		(63,914		)
Net increase in cash and cash equivalents	1,507			—			1,097			—		2,604
Cash and cash equivalents, beginning of period	3,674			150			3,168			—		6,992
Cash and cash equivalents, end of period	$	5,181		$	150		$	4,265		$	—	$	9,596

Condensed Consolidated Statements of Cash Flows
For the six months ended June 30, 2016
(in thousands)	Issuer			Guarantor			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net Cash Provided by/(Used in) Operating Activities	$	(14,105	)	$	3,075		$	94,146		$	19,628		$	102,744
Cash Flows from Investing Activities:
Investment in real estate assets and real estate related intangibles, net of accruals	(13,062		)	—			(51,360		)	—			(64,422		)
Intercompany note receivable	—			—			9,600			(9,600		)	—
Net sales proceeds from wholly-owned properties	108,550			—			93,140			—			201,690
Deferred lease costs paid	(1,712		)	—			(4,554		)	—			(6,266		)
Net cash provided by/(used in) investing activities	93,776			—			46,826			(9,600		)	131,002
Cash Flows from Financing Activities:
Debt issuance costs paid	(138		)	—			—			—			(138		)
Proceeds from debt	211,000			—			—			—			211,000
Repayments of debt	(232,000		)	—			(125,597		)	—			(357,597		)
Intercompany note payable	(9,600		)	—			—			9,600			—
Costs of issuance of common stock	—			(42		)	—			—			(42		)
Shares withheld to pay tax obligations related to employee stock compensation	—			(2,283		)	—			—			(2,283		)
Repurchases of common stock as part of announced plan	—			(7,943		)	—			—			(7,943		)
(Distributions to)/repayments from affiliates	(34,837		)	68,259			(13,794		)	(19,628		)	—
Dividends paid and discount on dividend reinvestments	—			(61,066		)	(9		)	—			(61,075		)
Net cash used in financing activities	(65,575		)	(3,075		)	(139,400		)	(10,028		)	(218,078		)
Net increase in cash and cash equivalents	14,096			—			1,572			—			15,668
Cash and cash equivalents, beginning of period	2,174			150			3,117			—			5,441
Cash and cash equivalents, end of period	$	16,270		$	150		$	4,689		$	—		$	21,109