(mark one) | ||
x | Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | |
for the fiscal year ended December 31, 2012 | ||
OR | ||
o | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | |
for the transition period from ______ to ______ | ||
Commission file number 000-51262 | ||
COLUMBIA PROPERTY TRUST, INC. | ||
(Exact name of registrant as specified in its charter) |
Maryland | 20-0068852 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | |
One Glenlake Parkway, Suite 1200 | ||
Atlanta, Georgia 30328 | ||
(Address of principal executive offices) (Zip Code) | ||
(404) 465-2200 | ||
(Registrant's telephone number, including area code) | ||
Securities registered pursuant to Section 12 (b) of the Act: | ||
Title of each class | Name of exchange on which registered | |
NONE | NONE |
Page No. | ||
Item 1. | ||
Item 1A. | ||
Item 1B. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
Item 7. | ||
Item 7A. | ||
Item 8. | ||
Item 9. | ||
Item 9A. | ||
Item 9B. | ||
Item 10. | ||
Item 11. | ||
Item 12. | ||
Item 13. | ||
Item 14. | ||
Item 15. | ||
ITEM 1. | BUSINESS |
ITEM 1A. | RISK FACTORS |
• | changes in general or local economic conditions; |
• | changes in supply of or demand for similar or competing properties in an area; |
• | changes in interest rates and availability of permanent mortgage funds, which may render the sale of a property difficult or unattractive; |
• | changes in tax, real estate, environmental, and zoning laws; and |
• | periods of high interest rates and tight money supply. |
• | We could enter into transactions with other WREF-sponsored programs, such as property sales or acquisitions, joint ventures, or financing arrangements. Decisions of the board or the Conflicts Committee regarding the terms of those transactions may be influenced by the board's or committee's loyalties to other WREF-sponsored programs. |
• | A decision of the board or the Conflicts Committee regarding the timing of a debt or equity offering could be influenced by concerns that the offering would compete with an offering of other WREF-sponsored programs. |
• | A decision of the board or the Conflicts Committee regarding the timing of property sales could be influenced by concerns that the sales would compete with those of other WREF-sponsored programs. |
• | In order to qualify as a REIT, we must distribute annually at least 90% of our REIT taxable income to our stockholders (which is determined without regard to the dividends-paid deduction or net capital gain). To the extent that we satisfy the distribution requirement but distribute less than 100% of our REIT taxable income, we will be subject to federal and state corporate income tax on the undistributed income. |
• | We will be subject to a 4% nondeductible excise tax on the amount, if any, by which distributions we pay in any calendar year are less than the sum of 85% of our ordinary income, 95% of our capital gains net income, and 100% of our undistributed income from prior years. |
• | If we have net income from the sale of foreclosure property that we hold primarily for sale to customers in the ordinary course of business or other nonqualifying income from foreclosure property, we must pay a tax on that income at the highest corporate income tax rate. |
• | If we sell a property, other than foreclosure property, that we hold primarily for sale to customers in the ordinary course of business, our gain would be subject to the 100% "prohibited transaction" tax. |
• | We may perform additional, noncustomary services for tenants of our buildings through our taxable REIT subsidiary, including real estate or non-real-estate-related services; however, any earnings related to such services are subject to federal and state income taxes. |
• | the burden of complying with a wide variety of foreign laws, including: |
▪ | changing governmental rules and policies, including changes in land use and zoning laws, more stringent environmental laws, or changes in such laws; and |
▪ | existing or new laws relating to the foreign ownership of real property or mortgages and laws restricting the ability of foreign persons or companies to remove profits earned from activities within the country to the person's or company's country of origin; |
• | the potential for expropriation; |
• | possible currency transfer restrictions; |
• | imposition of adverse or confiscatory taxes; |
• | changes in real estate and other tax rates, and changes in other operating expenses in particular countries; |
• | possible challenges to the anticipated tax treatment of the structures that allow us to acquire and hold investments; |
• | adverse market conditions caused by terrorism, civil unrest, and changes in national or local governmental or economic conditions; |
• | the willingness of domestic or foreign lenders to make mortgage loans in certain countries and changes in the availability, cost, and terms of mortgage funds resulting from varying national economic policies; |
• | general political and economic instability in certain regions; |
• | the potential difficulty of enforcing obligations in other countries; |
• | our willingness, or inability as a result of the United States Foreign Corrupt Practices Act, to comply with local business customs in certain regions; and |
• | our advisor's limited experience and expertise in foreign countries relative to its experience and expertise in the United States. |
• | your investment is consistent with your fiduciary and other obligations under ERISA and the Code; |
• | your investment is made in accordance with the documents and instruments governing your plan or IRA, including your plan's or account's investment policy; |
• | your investment satisfies the prudence and diversification requirements of Sections 404(a)(1)(B) and 404(a)(1)(C) of ERISA and other applicable provisions of ERISA and the Code; |
• | your investment in our shares, for which no trading market may exist, is consistent with the liquidity needs of the plan or IRA; |
• | your investment will not produce an unacceptable amount of "unrelated business taxable income" for the plan or IRA; |
• | you will be able to comply with the requirements under ERISA and the Code to value the assets of the plan or IRA annually; and |
• | your investment will not constitute a prohibited transaction under Section 406 of ERISA or Section 4975 of the Code. |
ITEM 1B. | UNRESOLVED STAFF COMMENTS |
ITEM 2. | PROPERTIES |
Year of Lease Expiration | 2012 Annualized Lease Revenue (in thousands) | Rentable Square Feet (in thousands) | Percentage of 2012 Annualized Lease Revenue | |||||||
Vacant | $ | — | 1,458 | — | % | |||||
2013 | 27,187 | 885 | 5 | % | ||||||
2014 | 16,831 | 560 | 3 | % | ||||||
2015 | 35,284 | 1,007 | 7 | % | ||||||
2016 | 67,420 | 1,704 | 13 | % | ||||||
2017 | 103,822 | 3,815 | 19 | % | ||||||
2018 | 47,379 | 1,490 | 9 | % | ||||||
2019 | 22,826 | 1,081 | 4 | % | ||||||
2020 | 57,552 | 2,559 | 11 | % | ||||||
2021 | 29,804 | 913 | 6 | % | ||||||
2022 | 36,386 | 807 | 7 | % | ||||||
Thereafter | 89,897 | 4,369 | 16 | % | ||||||
$ | 534,388 | 20,648 | 100 | % |
Location | 2012 Annualized Lease Revenue (in thousands) | Rentable Square Feet (in thousands) | Percentage of 2012 Annualized Lease Revenue | |||||||
Atlanta | $ | 75,353 | 3,462 | 15 | % | |||||
Washington, D.C. | 57,524 | 857 | 11 | % | ||||||
Northern New Jersey | 54,249 | 2,177 | 10 | % | ||||||
San Francisco | 44,700 | 959 | 9 | % | ||||||
Baltimore | 37,613 | 1,194 | 7 | % | ||||||
Cleveland | 34,143 | 1,235 | 7 | % | ||||||
Houston | 32,992 | 902 | 6 | % | ||||||
Chicago | 29,419 | 1,336 | 6 | % | ||||||
New York | 28,083 | 360 | 5 | % | ||||||
Boston | 23,073 | 1,199 | 4 | % | ||||||
Pittsburgh | 14,809 | 824 | 3 | % | ||||||
Other(1) | 92,430 | 4,685 | 17 | % | ||||||
$ | 524,388 | 19,190 | 100 | % |
(1) | No more than 2% is attributable to any individual geographic location. |
Industry | 2012 Annualized Lease Revenue (in thousands) | Rentable Square Feet (in thousands) | Percentage of 2012 Annualized Lease Revenue | |||||||
Legal Services | $ | 77,310 | 1,436 | 15 | % | |||||
Depository Institutions | 72,883 | 2,393 | 14 | % | ||||||
Communications | 50,357 | 2,566 | 10 | % | ||||||
Industrial Machinery & Equipment | 38,844 | 1,681 | 7 | % | ||||||
Electric, Gas & Sanitary Services | 36,980 | 1,880 | 7 | % | ||||||
Business Services | 30,753 | 947 | 6 | % | ||||||
Security & Commodity Brokers | 26,779 | 636 | 5 | % | ||||||
Engineering & Management | 26,527 | 1,043 | 5 | % | ||||||
Insurance Carriers | 17,280 | 815 | 3 | % | ||||||
Electronic & Other Electric Equipment | 17,271 | 781 | 3 | % | ||||||
Transportation Equipment | 13,752 | 448 | 3 | % | ||||||
Other(1) | 115,652 | 4,564 | 22 | % | ||||||
$ | 524,388 | 19,190 | 100 | % |
(1) | No more than 2% is attributable to any individual industry. |
Tenant | 2012 Annualized Lease Revenue (in thousands) | Percentage of 2012 Annualized Lease Revenue | |||||
AT&T | $ | 47,629 | 9 | % | |||
Wells Fargo | 29,297 | 6 | % | ||||
Jones Day | 27,135 | 5 | % | ||||
IBM | 24,954 | 5 | % | ||||
Key Bank | 19,110 | 4 | % | ||||
PSEG Services | 18,515 | 4 | % | ||||
T Rowe Price | 16,651 | 3 | % | ||||
Pershing | 16,323 | 3 | % | ||||
Westinghouse | 14,809 | 3 | % | ||||
Other(1) | 309,965 | 58 | % | ||||
$ | 524,388 | 100 | % |
(1) | No more than 2% is attributable to any individual tenant. |
Property | Location | Rentable Square Feet (in thousands) | Total Real Estate, Net (in thousands) | % of Total Assets | 2012 Annualized Lease Revenue (in thousands) | Average Annualized Lease Revenue per Square Foot | Occupancy | ||||||||||||||||
Market Square Buildings | Washington, DC | 684 | $ | 574,009 | 12.4 | % | $ | 47,031 | $ | 68.8 | 92.6 | % |
ITEM 3. | LEGAL PROCEEDINGS |
ITEM 4. | MINE SAFETY DISCLOSURES |
ITEM 5. | MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES |
• | the large size of our portfolio, although it may be true that some buyers are willing to pay more for a large portfolio than they are willing to pay for each property in the portfolio separately; |
• | our rights under our advisory agreement as of September 30, 2012, and our potential ability to secure the services of a management team on a long-term basis; or |
• | the potential increase in our share value if we were to list our shares on a national securities exchange. |
Real estate assets | $ | 10.00 | (1) | |
Debt | (2.68 | ) | (2) | |
Other | 0.01 | (3) | ||
Estimated net asset value per share | $ | 7.33 | ||
Estimated enterprise value premium | None assumed | |||
Total estimated per-share value | $ | 7.33 |
(1) | Our real estate assets were appraised using valuation methods that we believe are typically used by investors for properties that are similar to ours, including capitalization of the net property operating income, 10-year discounted cash flow models, and comparison with sales of similar properties. Primary emphasis was placed on the discounted cash flow analysis, with the other approaches used to confirm the reasonableness of the value conclusion. Using this methodology, the appraised value of the real estate assets we owned as of September 30, 2012 reflects an overall decline of 8.6% from original purchase price, exclusive of acquisition costs, and post-acquisition capital investments. We believe that the assumptions employed in the valuation are within the ranges used for properties that are similar to ours and held by investors with similar expectations to our investors. |
Exit capitalization rate | 7.11 | % |
Discount rate/internal rate of return ("IRR") | 8.02 | % |
Annual market rent growth rate | 3.21 | % |
Annual holding period | 10.03 years |
(2) | The fair value of our debt instruments was estimated using discounted cash flow models, which incorporate assumptions that we believe reflect the terms currently available on similar borrowing arrangements to borrowers with credit profiles similar to ours. |
(3) | The fair value of our non-real-estate assets and liabilities is estimated to reflect book value given their typically short-term (less than one year) settlement periods. |
▪ | a stockholder would be able to realize this estimated per-share value upon attempting to resell his or her shares; |
▪ | we would be able to achieve, for our stockholders, the estimated per-share value, upon a listing of our shares of common stock on a national securities exchange, selling our real estate portfolio, or merging with another company; or |
▪ | the estimated per-share value, or the methodologies relied upon to estimate the per-share value, will be found by any regulatory authority to comply with FINRA, ERISA, or any other regulatory requirements. |
2012 | ||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Total | ||||||||||||||||
Total Cash Distributed | $ | 67,954 | $ | 68,030 | $ | 68,157 | $ | 51,879 | $ | 256,020 | ||||||||||
Per-Share Investment Income | $ | 0.020 | $ | 0.020 | $ | 0.020 | $ | 0.015 | $ | 0.075 | (1) | |||||||||
Per-Share Return of Capital | $ | 0.105 | $ | 0.105 | $ | 0.105 | $ | 0.080 | $ | 0.395 | (2) | |||||||||
Total Per-Share Distribution | $ | 0.125 | $ | 0.125 | $ | 0.125 | $ | 0.095 | $ | 0.470 |
2011 | ||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Total | ||||||||||||||||
Total Cash Distributed | $ | 67,485 | $ | 67,615 | $ | 67,771 | $ | 67,849 | $ | 270,720 | ||||||||||
Per-Share Investment Income | $ | 0.049 | $ | 0.049 | $ | 0.049 | $ | 0.049 | $ | 0.196 | (1) | |||||||||
Per-Share Return of Capital | $ | 0.076 | $ | 0.076 | $ | 0.076 | $ | 0.076 | $ | 0.304 | (2) | |||||||||
Total Per-Share Distribution | $ | 0.125 | $ | 0.125 | $ | 0.125 | $ | 0.125 | $ | 0.500 |
(1) | Approximately 16% and 39% of the distributions paid during 2012 and 2011, respectively, were taxable to the investor as ordinary income. |
(2) | Approximately 84% and 61% of the distributions paid during 2012 and 2011, respectively, were characterized as a tax-deferred return of capital. |
• | First, we will limit requests for all redemptions (other than those sought within two years of a stockholder's death) on a pro rata basis so that the aggregate of such redemptions during any calendar year will not exceed 5.0% of the weighted-average number of shares outstanding in the prior calendar year. Requests precluded by this test will not be considered in the test below. |
• | In addition, if necessary, we will limit all redemption requests, including those sought within two years of a stockholder's death, on a pro rata basis so that the aggregate of such redemptions during any calendar year would not exceed the greater of 100% of the net proceeds from our DRP during the calendar year, or 5.0% of the weighted-average number of shares outstanding in the prior calendar year. |
Period | Total Number of Shares Purchased(1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(2) | Approximate Dollar Value of Shares Available That May Yet Be Redeemed Under the Program | ||||||||
October 2012 | 1,405 | $ | 6.64 | 1,405 | (3) | |||||||
November 2012 | 1,524 | $ | 6.56 | 1,524 | (3) | |||||||
December 2012 | 1,569 | $ | 6.49 | 1,569 | (3) |
(1) | All purchases of our equity securities by us in 2012 were made pursuant to our SRP. |
(2) | We announced the commencement of the program on December 10, 2003, and amendments to the program on April 22, 2004; March 28, 2006; May 11, 2006; August 10, 2006; August 8, 2007; November 13, 2008; March 31, 2009; August 13, 2009; February 18, 2010; July 21, 2010; September 23, 2010; July 19, 2011; August 12, 2011; December 12, 2011; and February 28, 2013. |
(3) | We currently limit the dollar value of shares that may be redeemed under the program as described above. |
Plan category | Number of securities to be issued upon exercise of outstanding options, warrants, and rights | Weighted-average exercise price of outstanding options, warrants, and rights | Number of securities remaining available for future issuance under equity compensation plans(1) | |||||||
Equity compensation plans approved by security holders | 29,500 | $ | 12.00 | 820,500 | ||||||
Equity compensation plans not approved by security holders | — | — | — | |||||||
Total | 29,500 | $ | 12.00 | 820,500 |
(1) | Includes 70,500 shares reserved for issuance under the Independent Director Stock Option Plan. |
ITEM 6. | SELECTED FINANCIAL DATA |
As of December 31, | ||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||
Total assets | $ | 5,730,949 | $ | 5,776,567 | $ | 5,371,685 | $ | 5,374,064 | $ | 5,474,774 | ||||||||||
Total stockholders' equity | $ | 3,163,980 | $ | 3,346,655 | $ | 3,455,697 | $ | 2,718,087 | $ | 2,576,783 | ||||||||||
Outstanding debt | $ | 1,650,296 | $ | 1,469,486 | $ | 886,939 | $ | 946,936 | $ | 1,268,522 | ||||||||||
Outstanding long-term debt | $ | 1,621,541 | $ | 1,433,295 | $ | 838,556 | $ | 812,030 | $ | 865,938 | ||||||||||
Obligations under capital leases | $ | 586,000 | $ | 646,000 | $ | 646,000 | $ | 664,000 | $ | 664,000 | ||||||||||
Year Ended December 31, | ||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||
Total revenues(1) | $ | 576,691 | $ | 576,389 | $ | 510,514 | $ | 506,890 | $ | 470,665 | ||||||||||
Net income (loss) attributable to the common stockholders of Columbia Property Trust, Inc. | $ | 48,039 | $ | 56,642 | $ | 23,266 | $ | 40,594 | $ | (22,678 | ) | |||||||||
Net cash provided by operating activities | $ | 252,839 | $ | 279,158 | $ | 270,106 | $ | 248,527 | $ | 258,854 | ||||||||||
Net cash provided by (used in) investing activities | $ | 31,047 | $ | (666,090 | ) | $ | (312,708 | ) | $ | (129,678 | ) | $ | (915,315 | ) | ||||||
Net cash (used in) provided by financing activities | $ | (269,729 | ) | $ | 387,610 | $ | (20,429 | ) | $ | (102,745 | ) | $ | 694,933 | |||||||
Distributions paid | $ | 256,020 | $ | 270,720 | $ | 313,815 | $ | 279,325 | $ | 242,367 | ||||||||||
Net proceeds raised through issuance of our common stock(2) | $ | 118,388 | $ | 130,289 | $ | 483,559 | $ | 657,563 | $ | 821,609 | ||||||||||
Net debt (repayments) proceeds(2) | $ | (28,191 | ) | $ | 375,222 | $ | (74,742 | ) | $ | (335,483 | ) | $ | 310,633 | |||||||
Investments in real estate(2) | $ | 233,798 | $ | 638,783 | $ | 318,948 | $ | 124,149 | $ | 900,269 | ||||||||||
Per weighted-average common share data: | ||||||||||||||||||||
Net income (loss) – basic and diluted | $ | 0.09 | $ | 0.10 | $ | 0.04 | $ | 0.09 | $ | (0.06 | ) | |||||||||
Distributions declared | $ | 0.47 | $ | 0.50 | $ | 0.57 | (3) | $ | 0.60 | $ | 0.60 | |||||||||
Weighted-average common shares outstanding | 546,688 | 542,721 | 524,848 | 467,922 | 407,051 |
(1) | Prior-period amounts adjusted to conform with current-period presentation, including classifying revenues generated by properties held for sale and by properties sold, as discontinued operations for all periods presented (see Note 12, Assets Held for Sale and Discontinued Operations, to the accompanying consolidating financial statements). |
(2) | Activity is presented on a cash basis. Please refer to our accompanying consolidated statements of cash flows. |
(3) | Consistent with 2008 and 2009, we paid total stockholder distributions of $0.60 per weighted-average share in 2010. The difference between the distributions declared per weighted-average common share for 2010, as compared with distributions declared for the previous periods presented, relates to a change in the timing of distribution declarations and payments made in the fourth quarter of 2010. |
ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Actual Performance | |||
Covenant Level | December 31, 2012 | ||
JP Morgan Chase Credit Facility and $450 Million Term Loan | |||
Total debt to total asset value ratio | Less than 50% | 34% | |
Secured debt to total asset value ratio | Less than 40% | 19% | |
Fixed charge coverage ratio | Greater than 1.75x | 3.76x | |
Unencumbered interest coverage ratio | Greater than 2.0x | 5.01x | |
Unencumbered asset coverage ratio | Greater than 2.0x | 2.73x | |
Unsecured Senior Notes due 2018: | |||
Aggregate debt test | Less than 60% | 28% | |
Debt service test | Greater than 1.5x | 4.19x | |
Secured debt test | Less than 40% | 15% | |
Maintenance of total unencumbered assets | Greater than 150% | 563% |
Contractual Obligations | Total | 2013 | 2014-2015 | 2016-2017 | Thereafter | |||||||||||||||
Debt obligations | $ | 1,650,068 | $ | 28,755 | $ | 353,036 | $ | 670,102 | $ | 598,175 | ||||||||||
Interest obligations on debt(1) | 387,193 | 74,127 | 134,069 | 82,721 | 96,276 | |||||||||||||||
Capital lease obligations(2) | 586,000 | 466,000 | — | — | 120,000 | |||||||||||||||
Operating lease obligations | 224,775 | 2,633 | 5,266 | 5,412 | 211,464 | |||||||||||||||
Total | $ | 2,848,036 | $ | 571,515 | $ | 492,371 | $ | 758,235 | $ | 1,025,915 |
(1) | Interest obligations on variable-rate debt are measured at the rate at which they are effectively fixed with interest rate swap agreements (where applicable), a portion of which is reflected as Loss on interest rate swaps in our consolidated statements of operations of the accompanying consolidated financial statements. Interest obligations on all other debt are measured at the contractual rate. See Item 7A, Quantitative and Qualitative Disclosure About Market Risk, for more information regarding our interest rate swaps. |
(2) | Amounts include principal obligations only. We made interest payments on these obligations of $39.8 million during 2012, all of which was funded with interest income earned on the corresponding investments in development authority bonds. |
• | Additional amortization of lease assets (liabilities). GAAP implicitly assumes that the value of intangible lease assets (liabilities) diminishes predictably over time and, thus, requires these charges to be recognized ratably over the respective lease terms. Such intangible lease assets (liabilities) arise from the allocation of acquisition price related to direct costs associated with obtaining a new tenant, the value of opportunity costs associated with lost rentals, the value of tenant relationships, and the value of effective rental rates of in-place leases that are above or below market rates of comparable leases at the time of acquisition. Like real estate values, market lease rates in aggregate have historically risen or fallen with local market conditions. As a result, we believe that by excluding these charges, AFFO provides useful supplemental information that is reflective of the performance of our real estate investments, which is useful in assessing the sustainability of our operations. |
• | Straight-line rental income. In accordance with GAAP, rental payments are recognized as income on a straight-line basis over the terms of the respective leases. Thus, for any given period, straight-line rental income represents the difference between the contractual rental billings for that period and the average rental billings over the lease term for the same length of time. This application results in income recognition that can differ significantly from the current contract terms. By adjusting for this item, we believe AFFO provides useful supplemental information reflective of the realized economic impact of our leases, which is useful in assessing the sustainability of our operating performance. |
• | Loss on interest rate swaps and remeasurement of loss on foreign currency. These items relate to fair value adjustments, which are based on the impact of current market fluctuations, underlying market conditions and the performance of the specific holding, which is not attributable to our current operating performance. By adjusting for this item, we believe that AFFO provides useful supplemental information by focusing on the changes in our core operating fundamentals (rather than anticipated gains or losses that may never be realized), which is useful in assessing the sustainability of our operations. |
• | Noncash interest expense. This item represents amortization of financing costs paid in connection with executing our debt instruments, and the accretion of premiums (and amortization of discounts) on certain of our debt instruments. GAAP requires these items to be recognized over the remaining term of the respective debt instrument, which may not correlate with the ongoing operations of our real estate portfolio. By excluding these items, we believe that AFFO provides supplemental information that allows for better comparability of reporting periods, which is useful in assessing the sustainability of our operations. |
• | Real estate acquisition-related costs. Acquisition expenses are incurred for investment purposes (i.e., to promote portfolio appreciation and generation of future earnings over the long term) and, therefore, do not correlate with the ongoing operations of our portfolio. By excluding these items, we believe that AFFO provides supplemental information that allows for better comparability of reporting periods, which is useful in assessing the sustainability of our operations. |
• | Gain on early extinguishment of debt. This item represents gains resulting from debt settled prior to the stated maturity date, which do not correlate with our ongoing operating performance. By adjusting for this item, we believe that AFFO provides better comparability of reporting periods, which is useful in assessing the sustainability of our operations. |
Years ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
Reconciliation of Net Income to Funds From Operations and Adjusted Funds From Operations: | |||||||||||
Net income attributable to the common stockholders of Columbia Property Trust, Inc. | $ | 48,039 | $ | 56,642 | $ | 23,266 | |||||
Adjustments: | |||||||||||
Depreciation of real estate assets | 120,307 | 119,772 | 102,558 | ||||||||
Amortization of lease-related costs | 102,234 | 120,384 | 117,569 | ||||||||
Impairment loss on real estate assets | 18,467 | 5,817 | — | ||||||||
(Gain) loss on disposition of discontinued operations | (20,117 | ) | — | 161 | |||||||
Total Funds From Operations adjustments | 220,891 | 245,973 | 220,288 | ||||||||
Funds From Operations | 268,930 | 302,615 | 243,554 | ||||||||
Other income (expenses) included in net income, which do not correlate with our operations: | |||||||||||
Additional amortization of lease assets (liabilities) | (1,752 | ) | 2,423 | 6,791 | |||||||
Straight-line rental income | (11,033 | ) | (22,165 | ) | (6,544 | ) | |||||
(Gain) loss on interest rate swaps | (173 | ) | 28,635 | 9,485 | |||||||
Remeasurement loss on foreign currency | — | — | 686 | ||||||||
Noncash interest expense | 3,881 | 23,967 | 18,703 | ||||||||
Gain on early extinguishment of debt | — | (66,540 | ) | — | |||||||
Subtotal | (9,077 | ) | (33,680 | ) | 29,121 | ||||||
Real estate acquisition-related costs | 1,876 | 11,250 | 10,779 | ||||||||
Adjusted Funds From Operations | $ | 261,729 | $ | 280,185 | $ | 283,454 |
Location | 2012 Annualized Lease Revenue (in thousands) | Rentable Square Feet (in thousands) | Percentage of 2012 Annualized Lease Revenue | |||||||
Atlanta | $ | 75,353 | 3,462 | 15 | % | |||||
Washington, D.C. | 57,524 | 857 | 11 | % | ||||||
Northern New Jersey | 54,249 | 2,177 | 10 | % | ||||||
San Francisco | 44,700 | 959 | 9 | % | ||||||
Baltimore | 37,613 | 1,194 | 7 | % | ||||||
$ | 269,439 | 8,649 | 52 | % |
Industry | 2012 Annualized Lease Revenue (in thousands) | Rentable Square Feet (in thousands) | Percentage of 2012 Annualized Lease Revenue | |||||||
Legal Services | $ | 77,310 | 1,436 | 15 | % | |||||
Depository Institutions | 72,883 | 2,393 | 14 | % | ||||||
Communications | 50,357 | 2,566 | 10 | % | ||||||
Industrial Machinery & Equipment | 38,844 | 1,681 | 7 | % | ||||||
Electric, Gas & Sanitary Services | 36,980 | 1,880 | 7 | % | ||||||
$ | 276,374 | 9,956 | 53 | % |
Tenant | 2012 Annualized Lease Revenue (in thousands) | Percentage of 2012 Annualized Lease Revenue | |||||
AT&T | $ | 47,629 | 9 | % | |||
Wells Fargo | 29,297 | 6 | % | ||||
Jones Day | 27,135 | 5 | % | ||||
IBM | 24,954 | 5 | % | ||||
Key Bank | 19,110 | 4 | % | ||||
$ | 148,125 | 29 | % |
Buildings | 40 years | ||
Building improvements | 5-25 years | ||
Site improvements | 15 years | ||
Tenant improvements | Shorter of economic life or lease term | ||
Intangible lease assets | Lease term |
Property | Net Book Value | Impairment Loss Recognized | Fair Value | |||||||||||
For the year ended December 31, 2012 | 180 E 100 South | $ | 30,847 | $ | (18,467 | ) | $ | 12,380 | ||||||
For the year ended December 31, 2011 | Manhattan Towers | $ | 65,317 | $ | (5,817 | ) | $ | 59,500 |
• | Direct costs associated with obtaining a new tenant, including commissions, tenant improvements, and other direct costs, are estimated based on management's consideration of current market costs to execute a similar lease. Such direct costs are included in intangible lease origination costs in the accompanying consolidated balance sheets and are amortized to expense over the remaining terms of the respective leases. |
• | The value of opportunity costs associated with lost rentals avoided by acquiring an in-place lease is calculated based on the contractual amounts to be paid pursuant to the in-place leases over a market absorption period for a similar lease. Such opportunity costs are included in intangible lease assets in the accompanying consolidated balance sheets and are amortized to expense over the remaining terms of the respective leases. |
• | The value of tenant relationships is calculated based on expected renewal of a lease or the likelihood of obtaining a particular tenant for other locations. Values associated with tenant relationships are included in intangible lease assets in the accompanying consolidated balance sheets and are amortized to expense over the remaining terms of the respective leases. |
• | The value of effective rental rates of in-place leases that are above or below the market rates of comparable leases is calculated based on the present value (using a discount rate that reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be received pursuant to the in-place leases and (ii) management's estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining terms of the leases. The capitalized above-market and below-market lease values are recorded as intangible lease assets or liabilities and amortized as an adjustment to rental income over the remaining terms of the respective leases. |
• | obligations under operating leases; |
• | obligations under capital leases; |
• | commitments under existing lease agreements; and |
• | litigation. |
• | Effective February 28, 2013, Douglas P. Williams resigned as an executive officer of the company, including his positions as Executive Vice President, Secretary, Treasurer, and Principal Financial Officer. Mr. Williams also indicated that, for personal reasons, he would not stand for re-election as a director. Mr. Williams informed us of these decisions on February 25, 2013. Mr. Williams will remain an executive officer of WREF. |
• | Effective February 28, 2013, the board of directors unanimously appointed Wendy W. Gill as an executive officer to succeed Mr. Williams as the company's Treasurer and Principal Accounting Officer, and to serve as the company's interim Principal Financial Officer. Ms. Gill currently serves as Columbia Property Trust's Senior Vice President of Corporate Operations and Chief Accounting Officer. |
ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
2013 | 2014 | 2015 | 2016 | 2017 | Thereafter | Total | ||||||||||||||||||||||
Maturing debt: | ||||||||||||||||||||||||||||
Effectively variable-rate debt | $ | — | $ | — | $ | 42,000 | $ | — | $ | — | $ | — | $ | 42,000 | ||||||||||||||
Effectively fixed-rate debt | $ | 28,755 | $ | 101,481 | $ | 211,104 | $ | 491,963 | $ | 178,139 | $ | 596,854 | $ | 1,608,296 | ||||||||||||||
Average interest rate: | ||||||||||||||||||||||||||||
Effectively variable-rate debt | — | % | — | % | 2.62 | % | — | % | — | % | — | % | 2.62 | % | ||||||||||||||
Effectively fixed-rate debt | 5.94 | % | 5.07 | % | 4.76 | % | 2.91 | % | 5.28 | % | 5.43 | % | 4.54 | % |
ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
ITEM 9A. | CONTROLS AND PROCEDURES |
• | pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and disposition of our assets; |
• | provide reasonable assurance that the transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that our receipts and expenditures are being made only in accordance with authorizations of management and/or members of the board of directors; and |
• | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on the financial statements. |
ITEM 9B. | OTHER INFORMATION |
• | Effective February 28, 2013, Douglas P. Williams resigned as an executive officer of the company, including his positions as Executive Vice President, Secretary, Treasurer, and Principal Financial Officer. Mr. Williams also indicated that, for personal reasons, he would not stand for re-election as a director. Mr. Williams informed us of these decisions on February 25, 2013. Mr. Williams will remain an executive officer of WREF. |
• | Effective February 28, 2013, the board of directors unanimously appointed Wendy W. Gill as an executive officer to succeed Mr. Williams as the company's Treasurer and Principal Accounting Officer, and to serve as the company's interim Principal Financial Officer. Ms. Gill, 38, currently serves as our Chief Accounting Officer, a role she has held since 2007, and Senior Vice President of Corporate Operations. Since our inception in 2003, Ms. Gill has provided oversight to the company's accounting and financial operations as an employee of WREF. Ms. Gill joined WREF in 2002 as Director of Financial Reporting and Accounting. From 2007 to 2011, Ms. Gill served as Vice President and Chief Accounting Officer for WREF, in which capacity she was responsible for the financial and reporting functions for the real estate programs sponsored by WREF, including the public REITs, various public and private limited partnerships, and 1031 Exchange programs. Prior to joining WREF she was a manager at Arthur Andersen in the firm's Atlanta and Washington, D.C. offices, working with various publicly traded and privately held companies, with a focus on the real estate, hospitality and financial services industries. Ms. Gill holds a Certified Public Accountant (CPA) designation from the Maryland State Board of Public Accountancy and is a member of the Georgia Society of Certified Public Accountants. |
ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE |
ITEM 11. | EXECUTIVE COMPENSATION |
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS |
ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
• | real estate acquisition services; |
• | asset management services; |
• | real estate disposition services; |
• | property management oversight services; and |
• | administrative services. |
• | Asset management fees were incurred monthly at one-twelfth of 0.625% of the lesser of (i) gross cost, as defined, of all of our properties (other than those that failed to meet specified occupancy thresholds) and investments in joint ventures, or (ii) the aggregate value of our interest in the properties and joint ventures as established with the most recent asset-based valuation, until the monthly payment equals $2.7 million (or $32.5 million annualized), as of the last day of each preceding month. From April 2011 through June 2012, asset management fees were capped at $2.7 million per month (or $32.5 million annualized) following the March 2011 acquisition of the Market Square Buildings. Effective July 1, 2012, the cap on monthly asset management fees charged under the advisory agreement was reduced by $83,333 (or, a total savings of $0.5 million for the six months ended December 31, 2012), resulting in a cap of $2.6 million. From July 2012 through December 2012, asset management fees were capped at $2.6 million per month. With respect to (ii) above, our published net asset-based valuations did not impact asset management fees incurred to date due to the continued applicability of the caps described above. Asset management fees from January 1, 2012 to December 31, 2012, totaled approximately $32.0 million. |
• | We reimbursed our advisor for all costs and expenses it incurred in fulfilling its asset management and administrative duties, which may have included wages, salaries, taxes, insurance, benefits, information technology, legal and travel, and other out-of-pocket expenses of employees engaged in ongoing management, administration, operations, and marketing functions on our behalf. We did not, however, reimburse our advisor for personnel costs in connection with services for which our advisor received acquisition fees or real estate commissions. Administrative reimbursements, net of reimbursements from tenants, from January 1, 2012 through December 31, 2012, totaled approximately $11.1 million. |
• | Acquisition fees were previously incurred at 1% of the property purchase price (excluding acquisition expenses); however, in no event could total acquisition fees for the 2012 and 2013 calendar years exceed $1.5 million in aggregate. Acquisition fees from January 1, 2012 through December 31, 2012, totaled approximately $1.5 million. |
• | The disposition fee payable for the sale of any property for which WREAS II provided substantial services was the lesser of (i) 0.3% or (ii) the broker fee paid to a third-party broker in connection with the sale. Disposition fees payable to WREAS II from July 1, 2012 through December 31, 2013 have an aggregate cap of $1.5 million. Disposition fees from January 1, 2012 through December 31, 2012, totaled $1.3 million, related to the Nine Property Sale. |
• | Effective July 1, 2012, monthly occupancy costs of $21,000 were incurred for WREAS II's dedicated office space. Occupancy costs from January 1, 2012 through December 31, 2012, totaled approximately $126,000. |
• | We may, at our option, acquire WRES, the entity charged with carrying out property management functions on behalf of WREAS II, for consideration of approximately $2.8 million payable to Wells Real Estate Funds in monthly installments from July 2013 through December 2013 under the Transition Services Agreement. As further explained in Item 1. Business, the company closed the above-described option effective February 28, 2013. |
• | Upon terminating the Advisory Agreement and effecting the WREAS II Assignment Option, we will enter into a new investor services agreement with WREF, which provides for the payment of various fees and reimbursement of third- party expenses to WREF (the "Investor Services Agreement") in connection with the provision of such services. |
• | Adjustments to acquisition and disposition fees as discussed above. |
• | For each property for which WREAS II provided property management services, we paid WREAS II a market-based property management fee based on gross monthly income of the property. |
• | For each property for which WREAS II provided leasing agent services, WREAS II was entitled to: (i) a one-time fee in an amount not to exceed one month's rent for the initial rent-up of a newly constructed building; (ii) a market-based commission based on the net rent payable during the term of a new lease; (iii) a market-based commission based on the net rent payable during the term of any renewal or extension of any tenant lease; and (iv) a market-based commission based on the net rent payable with respect to expansion space for the remaining portion of the initial lease term. |
• | For each property for which WREAS II provided construction management services, WREAS II was entitled to receive from us that portion of lease concessions for tenant-directed improvements that are specified in the lease or lease renewal, subject to a limit of 5% of such lease concessions and a management fee to be determined for other construction management activities. |
ITEM 14. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
ITEM 15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES |
(a) 3. | The Exhibits filed in response to Item 601 of Regulation S-K are listed on the Exhibit Index attached hereto. |
COLUMBIA PROPERTY TRUST, INC. (Registrant) | ||||
Dated: | February 28, 2013 | By: | /s/ WENDY W. GILL | |
WENDY W. GILL Principal Financial Officer, Principal Accounting Officer, and Treasurer |
Signature | Title | Date | ||
/s/ Charles R. Brown | Independent Director | |||
Charles R. Brown | February 28, 2013 | |||
/s/ Richard W. Carpenter | Independent Director | |||
Richard W. Carpenter | February 28, 2013 | |||
/s/ Bud Carter | Independent Director | |||
Bud Carter | February 28, 2013 | |||
/s/ John L. Dixon | Independent Director | |||
John L. Dixon | February 28, 2013 | |||
/s/ E. Nelson Mills | President, Chief Executive Officer and Director (Principal Executive Officer) | |||
E. Nelson Mills | February 28, 2013 | |||
/s/ George W. Sands | Independent Director | |||
George W. Sands | February 28, 2013 | |||
/s/ Neil H. Strickland | Independent Director | |||
Neil H. Strickland | February 28, 2013 | |||
/s/ Leo F. Wells, III | Director | |||
Leo F. Wells, III | February 28, 2013 | |||
/s/ Douglas P. Williams | Director | |||
Douglas P. Williams | February 28, 2013 | |||
Ex. | Description |
3.1* | Second Amended and Restated Articles of Incorporation as Amended by the First Articles of Amendment. |
3.2* | Second Amended and Restated Bylaws. |
4.1* | Statement regarding restrictions on transferability of shares of common stock (to appear on stock certificate or to be sent upon request and without charge to stockholders issued shares without certificates). |
4.2* | Third Amended and Restated Distribution Reinvestment Plan. |
10.1 | Advisory Agreement between the Company and Wells Real Estate Advisory Services II, LLC effective as of January 1, 2012, incorporated by reference to the Company's Annual Report on Form 10-K filed with the Commission on February 29, 2012. |
10.2 | Term Loan Agreement dated as of February 3, 2012, by and among Wells Operating Partnership II, L.P., as Borrower, J.P. Morgan Securities LLC and PNC Capital Markets LLC, as Joint Lead Arrangers and Joint Bookrunners, JPMorgan Chase Bank, N.A., as Administrative Agent and PNC Bank, National Association, as Syndication Agent and Regions Bank, U.S. Bank National Association, TD Bank, N.A. and Union Bank, N.A., as Documentation Agents and the Financial Institutions and their Assignees as Lenders (incorporated by reference to Exhibit 10.2 to the Company's quarterly Report on Form 10-Q filed with the Commission on May 4, 2012). |
10.3 | Supplemental Indenture dated as of February 3, 2012 among Wells Operating Partnership II, L.P., the Guarantors Party Hereto and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 10.3 to the Company's quarterly Report on Form 10-Q filed with the Commission on May 4, 2012). |
10.4 | Advisory Agreement between the Company and Wells Real Estate Advisory Services II, LLC effective as of April 1, 2012 (incorporated by reference to Exhibit 10.1 to the Company's quarterly Report on Form 10-Q filed with the Commission on August 6, 2012). |
10.5 | Initial Term Advisory Agreement between the Company and Wells Real Estate Advisory Services II, LLC effective as of July 1, 2012 (incorporated by reference to Exhibit 10.2 to the Company's quarterly Report on Form 10-Q filed with the Commission on August 6, 2012). |
10.6 | Transition Services Agreement between the Company, Wells Real Estate Advisory Services II, LLC and Wells Real Estate Funds, Inc. effective as of July 1, 2012 (incorporated by reference to Exhibit 10.3 to the Company's quarterly Report on Form 10-Q filed with the Commission on August 6, 2012). |
10.7 | Investor Services Agreement between the Company and Wells Real Estate Funds, Inc. effective as of July 1, 2012 (incorporated by reference to Exhibit 10.4 to the Company's quarterly Report on Form 10-Q filed with the Commission on August 6, 2012). |
10.8 | Master Property Management, Leasing and Construction Management Agreement between the Company, Wells Operating Partnership II, L.P., and Wells Management Company, Inc. effective as of July 1, 2012 (incorporated by reference to Exhibit 10.5 to the Company's quarterly Report on Form 10-Q filed with the Commission on August 6, 2012). |
10.9* | Renewal Advisory Agreement between the Company and Wells Real Estate Advisory Services II, LLC dated December 28, 2012 and effective as of January 1, 2013. |
10.10* | Renewal Investor Services Agreement between the Company and Wells Real Estate Funds, Inc. dated as of December 28, 2012 and effective as of January 1, 2013. |
10.11* | Amendment to Transition Services Agreement between the Company, Wells Real Estate Advisory Services II, LLC, Wells Real Estate Services, LLC, Wells Management Company, Inc. ("Wells Management") and Wells Real Estate Funds, Inc. dated and effective as of December 28, 2013. |
10.12* | Amendment to Master Property Management, Leasing and Construction Management Agreement between the Company, Wells Operating Partnership II, L.P., and Wells Management Company, Inc. dated as of December 28, 2012. |
21.1* | Subsidiaries of Columbia Property Trust, Inc. |
23.1* | Consent of Deloitte & Touche LLP. |
23.2* | Consent of Frazier & Deeter, LLC. |
31.1* | Certification of the Principal Executive Officer of the Company, pursuant to Securities Exchange Act Rules 13a-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.2* | Certification of the Principal Financial Officer of the Company, pursuant to Securities Exchange Act Rules 13a-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
32.1* | Certification of the Principal Executive Officer and Principal Financial Officer of the Company, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
99.1* | Sixth Amended and Restated Share Redemption Program. |
99.2* | Columbia Property Trust, Inc. Unaudited Pro Forma Financial Statements. |
99.3* | Wells Real Estate Advisory Services II, LLC and Wells Real Estate Services, LLC Carve-Out Combined Financial Statements. |
101.INS** | XBRL Instance Document. |
101.SCH** | XBRL Taxonomy Extension Schema. |
101.CAL** | XBRL Taxonomy Extension Calculation Linkbase. |
101.DEF** | XBRL Taxonomy Extension Definition Linkbase. |
101.LAB** | XBRL Taxonomy Extension Label Linkbase. |
101.PRE** | XBRL Taxonomy Extension Presentation Linkbase. |
* | Filed herewith. |
** | Furnished with this Form 10-K. |
Page | ||
December 31, | |||||||
2012 | 2011 | ||||||
Assets: | |||||||
Real estate assets, at cost: | |||||||
Land | $ | 789,237 | $ | 704,336 | |||
Buildings and improvements, less accumulated depreciation of $580,334 and $514,961, as of December 31, 2012 and 2011, respectively | 3,468,218 | 3,472,971 | |||||
Intangible lease assets, less accumulated amortization of $315,840 and $343,463, as of December 31, 2012 and 2011, respectively | 341,460 | 391,989 | |||||
Construction in progress | 12,680 | 8,414 | |||||
Real estate assets held for sale, less accumulated depreciation and amortization of $9,551, as of December 31, 2011 | — | 37,508 | |||||
Total real estate assets | 4,611,595 | 4,615,218 | |||||
Cash and cash equivalents | 53,657 | 39,468 | |||||
Tenant receivables, net of allowance for doubtful accounts of $117 and $3,728, as of December 31, 2012 and 2011, respectively | 134,099 | 130,549 | |||||
Prepaid expenses and other assets | 29,373 | 32,831 | |||||
Deferred financing costs, less accumulated amortization of $8,527 and $5,590, as of December 31, 2012 and 2011, respectively | 10,490 | 9,442 | |||||
Intangible lease origination costs, less accumulated amortization of $230,930 and $236,679, as of December 31, 2012 and 2011, respectively | 206,927 | 231,338 | |||||
Deferred lease costs, less accumulated amortization of $24,222 and $22,390, as of December 31, 2012 and 2011, respectively | 98,808 | 68,289 | |||||
Investment in development authority bonds | 586,000 | 646,000 | |||||
Other assets held for sale, less accumulated amortization of $2,260, as of December 31, 2011 | — | 3,432 | |||||
Total assets | $ | 5,730,949 | $ | 5,776,567 | |||
Liabilities: | |||||||
Line of credit and notes payable | $ | 1,401,618 | $ | 1,221,060 | |||
Bonds payable, net of discount of $1,322 and $1,574, as of December 31, 2012 and 2011, respectively | 248,678 | 248,426 | |||||
Accounts payable, accrued expenses, and accrued capital expenditures | 102,858 | 72,349 | |||||
Due to affiliates | 1,920 | 3,329 | |||||
Deferred income | 28,071 | 35,079 | |||||
Intangible lease liabilities, less accumulated amortization of $84,326 and $74,326, as of December 31, 2012 and 2011, respectively | 98,298 | 89,581 | |||||
Obligations under capital leases | 586,000 | 646,000 | |||||
Liabilities held for sale | — | 624 | |||||
Total liabilities | 2,467,443 | 2,316,448 | |||||
Commitments and Contingencies (Note 6) | — | — | |||||
Redeemable Common Stock | 99,526 | 113,147 | |||||
Equity: | |||||||
Common stock, $0.01 par value, 900,000,000 shares authorized, 547,603,642 and 546,197,750 shares issued and outstanding as of December 31, 2012 and 2011, respectively | 5,476 | 5,462 | |||||
Additional paid-in capital | 4,897,782 | 4,880,806 | |||||
Cumulative distributions in excess of earnings | (1,634,531 | ) | (1,426,550 | ) | |||
Redeemable common stock | (99,526 | ) | (113,147 | ) | |||
Other comprehensive (loss) income | (5,221 | ) | 84 | ||||
Total Columbia Property Trust, Inc. stockholders' equity | 3,163,980 | 3,346,655 | |||||
Nonredeemable noncontrolling interests | — | 317 | |||||
Total equity | 3,163,980 | 3,346,972 | |||||
Total liabilities, redeemable common stock, and equity | $ | 5,730,949 | $ | 5,776,567 |
Years ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
Revenues: | |||||||||||
Rental income | $ | 442,284 | $ | 441,907 | $ | 396,122 | |||||
Tenant reimbursements | 104,863 | 102,944 | 93,412 | ||||||||
Hotel income | 23,049 | 20,600 | 19,819 | ||||||||
Other property income | 6,495 | 10,938 | 1,161 | ||||||||
576,691 | 576,389 | 510,514 | |||||||||
Expenses: | |||||||||||
Property operating costs | 173,466 | 167,427 | 151,509 | ||||||||
Hotel operating costs | 18,362 | 17,394 | 17,035 | ||||||||
Asset and property management fees: | |||||||||||
Related-party | 34,394 | 34,568 | 30,970 | ||||||||
Other | 2,826 | 2,787 | 3,245 | ||||||||
Depreciation | 114,107 | 110,699 | 92,613 | ||||||||
Amortization | 97,649 | 111,465 | 103,537 | ||||||||
General and administrative | 25,163 | 23,735 | 23,216 | ||||||||
Acquisition fees and expenses | 1,876 | 11,250 | 10,779 | ||||||||
467,843 | 479,325 | 432,904 | |||||||||
Real estate operating income | 108,848 | 97,064 | 77,610 | ||||||||
Other income (expense): | |||||||||||
Interest expense | (106,391 | ) | (106,305 | ) | (82,038 | ) | |||||
Interest and other income | 39,871 | 42,395 | 43,083 | ||||||||
Loss on interest rate swaps | (1,225 | ) | (38,383 | ) | (19,061 | ) | |||||
Gain on the early extinguishment of debt | — | 53,018 | — | ||||||||
(67,745 | ) | (49,275 | ) | (58,016 | ) | ||||||
Income before income tax (expense) benefit | 41,103 | 47,789 | 19,594 | ||||||||
Income tax (expense) benefit | (586 | ) | 276 | 226 | |||||||
Income from continuing operations | 40,517 | 48,065 | 19,820 | ||||||||
Discontinued operations: | |||||||||||
Operating (loss) income from discontinued operations | (12,591 | ) | (4,931 | ) | 3,681 | ||||||
Gain (loss) on disposition of discontinued operations | 20,117 | 13,522 | (161 | ) | |||||||
Income from discontinued operations | 7,526 | 8,591 | 3,520 | ||||||||
Net income | 48,043 | 56,656 | 23,340 | ||||||||
Less: net income attributable to nonredeemable noncontrolling interests | (4 | ) | (14 | ) | (74 | ) | |||||
Net income attributable to the common stockholders of Columbia Property Trust, Inc. | $ | 48,039 | $ | 56,642 | $ | 23,266 | |||||
Per-share information – basic and diluted: | |||||||||||
Income from continuing operations | $ | 0.07 | $ | 0.09 | $ | 0.04 | |||||
Income from discontinued operations | $ | 0.01 | $ | 0.02 | $ | 0.01 | |||||
Net income attributable to the common stockholders of Columbia Property Trust, Inc. | $ | 0.09 | $ | 0.10 | $ | 0.04 | |||||
Weighted-average common shares outstanding – basic and diluted | 546,688 | 542,721 | 524,848 |
Years ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
Net income attributable to the common stockholders of Columbia Property Trust, Inc. | $ | 48,039 | $ | 56,642 | $ | 23,266 | |||||
Market value adjustment to interest rate swap | (5,305 | ) | 11,223 | (3,110 | ) | ||||||
Comprehensive income attributable to the common stockholders of Columbia Property Trust, Inc. | 42,734 | 67,865 | 20,156 | ||||||||
Comprehensive income attributable to noncontrolling interests | 4 | 14 | 74 | ||||||||
Comprehensive income | $ | 42,738 | $ | 67,879 | $ | 20,230 |
Stockholders' Equity | ||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Cumulative Distributions in Excess of Earnings | Redeemable Common Stock | Other Comprehensive Loss | Total Columbia Property Trust, Inc. Stockholders' Equity | Nonredeemable Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||
Balance, December 31, 2009 | 499,895 | $ | 4,999 | $ | 4,461,980 | $ | (935,019 | ) | $ | (805,844 | ) | $ | (8,029 | ) | $ | 2,718,087 | $ | 5,274 | $ | 2,723,361 | ||||||||||||||
Issuance of common stock | 49,199 | 492 | 487,609 | — | — | — | 488,101 | — | 488,101 | |||||||||||||||||||||||||
Redemptions of common stock | (8,187 | ) | (82 | ) | (72,689 | ) | — | — | — | (72,771 | ) | — | (72,771 | ) | ||||||||||||||||||||
Decrease in redeemable common stock | — | — | — | — | 644,655 | — | 644,655 | — | 644,655 | |||||||||||||||||||||||||
Distributions to common stockholders ($0.57 per share) | — | — | — | (300,719 | ) | — | — | (300,719 | ) | — | (300,719 | ) | ||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | — | (176 | ) | (176 | ) | |||||||||||||||||||||||
Acquisition of noncontrolling interest in consolidated joint venture | — | — | (3,341 | ) | — | — | — | (3,341 | ) | (4,825 | ) | (8,166 | ) | |||||||||||||||||||||
Commissions and discounts on stock sales and related dealer-manager fees | — | — | (34,294 | ) | — | — | — | (34,294 | ) | — | (34,294 | ) | ||||||||||||||||||||||
Offering costs | — | — | (4,177 | ) | — | — | — | (4,177 | ) | — | (4,177 | ) | ||||||||||||||||||||||
Net income attributable to common stockholders of Columbia Property Trust, Inc. | — | — | — | 23,266 | — | — | 23,266 | — | 23,266 | |||||||||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | — | — | 74 | 74 | |||||||||||||||||||||||||
Market value adjustment to interest rate swap | — | — | — | — | (3,110 | ) | (3,110 | ) | — | (3,110 | ) | |||||||||||||||||||||||
Balance, December 31, 2010 | 540,907 | $ | 5,409 | $ | 4,835,088 | $ | (1,212,472 | ) | $ | (161,189 | ) | $ | (11,139 | ) | $ | 3,455,697 | $ | 347 | $ | 3,456,044 |
Stockholders' Equity | ||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Cumulative Distributions in Excess of Earnings | Redeemable Common Stock | Other Comprehensive (Loss) Income | Total Columbia Property Trust, Inc. Stockholders' Equity | Nonredeemable Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||
Balance, December 31, 2010 | 540,907 | $ | 5,409 | $ | 4,835,088 | $ | (1,212,472 | ) | $ | (161,189 | ) | $ | (11,139 | ) | $ | 3,455,697 | $ | 347 | $ | 3,456,044 | ||||||||||||||
Issuance of common stock | 14,808 | 148 | 130,141 | — | — | — | 130,289 | — | 130,289 | |||||||||||||||||||||||||
Redemptions of common stock | (9,517 | ) | (95 | ) | (84,423 | ) | — | — | — | (84,518 | ) | — | (84,518 | ) | ||||||||||||||||||||
Decrease in redeemable common stock | — | — | — | — | 48,042 | — | 48,042 | — | 48,042 | |||||||||||||||||||||||||
Distributions to common stockholders ($0.50 per share) | — | — | — | (270,720 | ) | — | — | (270,720 | ) | — | (270,720 | ) | ||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | — | (44 | ) | (44 | ) | |||||||||||||||||||||||
Net income attributable to common stockholders of Columbia Property Trust, Inc. | — | — | — | 56,642 | — | — | 56,642 | — | 56,642 | |||||||||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | — | — | 14 | 14 | |||||||||||||||||||||||||
Market value adjustment to interest rate swap | — | — | — | — | — | 11,223 | 11,223 | — | 11,223 | |||||||||||||||||||||||||
Balance, December 31, 2011 | 546,198 | $ | 5,462 | $ | 4,880,806 | $ | (1,426,550 | ) | $ | (113,147 | ) | $ | 84 | $ | 3,346,655 | $ | 317 | $ | 3,346,972 |
Stockholders' Equity | ||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Cumulative Distributions in Excess of Earnings | Redeemable Common Stock | Other Comprehensive Income (Loss) | Total Columbia Property Trust, Inc. Stockholders' Equity | Nonredeemable Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||
Balance, December 31, 2011 | 546,198 | $ | 5,462 | $ | 4,880,806 | $ | (1,426,550 | ) | $ | (113,147 | ) | $ | 84 | $ | 3,346,655 | $ | 317 | $ | 3,346,972 | |||||||||||||||
Issuance of common stock | 16,666 | 167 | 118,221 | — | — | — | 118,388 | — | 118,388 | |||||||||||||||||||||||||
Redemptions of common stock | (15,260 | ) | (153 | ) | (101,243 | ) | — | — | — | (101,396 | ) | — | (101,396 | ) | ||||||||||||||||||||
Decrease in redeemable common stock | — | — | — | 13,621 | — | 13,621 | — | 13,621 | ||||||||||||||||||||||||||
Distributions to common stockholders ($0.47 per share) | — | — | — | (256,020 | ) | — | — | (256,020 | ) | — | (256,020 | ) | ||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | — | (15 | ) | (15 | ) | |||||||||||||||||||||||
Offering costs | — | (7 | ) | (7 | ) | (7 | ) | |||||||||||||||||||||||||||
Acquisition of noncontrolling interest in consolidated joint ventures | — | — | 5 | — | — | — | 5 | (306 | ) | (301 | ) | |||||||||||||||||||||||
Net income attributable to the common stockholders of Columbia Property Trust, Inc. | — | — | — | 48,039 | — | — | 48,039 | — | 48,039 | |||||||||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | — | — | 4 | 4 | |||||||||||||||||||||||||
Market value adjustment to interest rate swap | — | — | — | — | — | (5,305 | ) | (5,305 | ) | — | (5,305 | ) | ||||||||||||||||||||||
Balance, December 31, 2012 | 547,604 | $ | 5,476 | $ | 4,897,782 | $ | (1,634,531 | ) | $ | (99,526 | ) | $ | (5,221 | ) | $ | 3,163,980 | $ | — | $ | 3,163,980 |
Years ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
Cash Flows from Operating Activities: | |||||||||||
Net income | $ | 48,043 | $ | 56,656 | $ | 23,340 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Straight-line rental income | (11,033 | ) | (22,165 | ) | (6,544 | ) | |||||
Depreciation | 120,307 | 119,772 | 102,558 | ||||||||
Amortization | 100,482 | 122,807 | 124,360 | ||||||||
(Gain) loss on interest rate swaps | (173 | ) | 28,635 | 9,485 | |||||||
(Gain) loss on sale of real estate assets | (20,117 | ) | — | 161 | |||||||
Impairment losses on real estate assets | 18,467 | 5,817 | — | ||||||||
Gains on early extinguishment of debt | — | (66,540 | ) | — | |||||||
Remeasurement gain on foreign currency | — | — | 686 | ||||||||
Noncash interest expense | 3,881 | 23,967 | 18,703 | ||||||||
Changes in assets and liabilities, net of acquisitions: | |||||||||||
Increase in tenant receivables, net | (4,767 | ) | (1,438 | ) | (2,895 | ) | |||||
Decrease (increase) in prepaid expenses and other assets | 2,344 | (4,443 | ) | (4,219 | ) | ||||||
Increase in accounts payable and accrued expenses | 4,270 | 8,114 | 2,418 | ||||||||
Decrease in due to affiliates | (1,411 | ) | (1,146 | ) | (360 | ) | |||||
(Decrease) increase in deferred income | (7,454 | ) | 9,122 | 2,413 | |||||||
Net cash provided by operating activities | 252,839 | 279,158 | 270,106 | ||||||||
Cash Flows from Investing Activities: | |||||||||||
Net proceeds from the sale of real estate | 304,264 | — | 15,219 | ||||||||
Investment in real estate and earnest money paid | (233,798 | ) | (638,783 | ) | (318,948 | ) | |||||
Deferred lease costs paid | (39,419 | ) | (27,307 | ) | (8,979 | ) | |||||
Net cash provided by (used in) investing activities | 31,047 | (666,090 | ) | (312,708 | ) | ||||||
Cash Flows from Financing Activities: | |||||||||||
Financing costs paid | (4,198 | ) | (12,395 | ) | (7,338 | ) | |||||
Proceeds from lines of credit and notes payable | 599,000 | 1,543,500 | 88,000 | ||||||||
Repayments of lines of credit and notes payable | (627,191 | ) | (1,168,278 | ) | (162,742 | ) | |||||
Proceeds from issuance of bonds payable | — | 248,237 | — | ||||||||
Issuance of common stock | 118,388 | 130,289 | 483,559 | ||||||||
Redemptions of common stock | (99,381 | ) | (82,892 | ) | (72,757 | ) | |||||
Distributions paid to stockholders | (137,632 | ) | (140,431 | ) | (150,246 | ) | |||||
Distributions paid to stockholders and reinvested in shares of our common stock | (118,388 | ) | (130,289 | ) | (163,569 | ) | |||||
Redemption of noncontrolling interests | (301 | ) | (87 | ) | — | ||||||
Commissions on stock sales and related dealer-manager fees paid | — | — | (29,801 | ) | |||||||
Offering costs paid | (11 | ) | — | (5,285 | ) | ||||||
Distributions paid to nonredeemable noncontrolling interests | (15 | ) | (44 | ) | (250 | ) | |||||
Net cash (used in) provided by financing activities | (269,729 | ) | 387,610 | (20,429 | ) | ||||||
Net increase (decrease) in cash and cash equivalents | 14,157 | 678 | (63,031 | ) | |||||||
Effect of foreign exchange rate on cash and cash equivalents | 32 | (92 | ) | (812 | ) | ||||||
Cash and cash equivalents, beginning of period | 39,468 | 38,882 | 102,725 | ||||||||
Cash and cash equivalents, end of period | $ | 53,657 | $ | 39,468 | $ | 38,882 |
1. | Organization |
2. | Summary of Significant Accounting Policies |
Buildings | 40 years | ||
Building improvements | 5-25 years | ||
Site improvements | 15 years | ||
Tenant improvements | Shorter of economic life or lease term | ||
Intangible lease assets | Lease term |
Property | Net Book Value | Impairment Loss Recognized | Fair Value | |||||||||||
For the year ended December 31, 2012 | 180 E 100 South | $ | 30,847 | $ | (18,467 | ) | $ | 12,380 | ||||||
For the year ended December 31, 2011 | Manhattan Towers | $ | 65,317 | $ | (5,817 | ) | $ | 59,500 |
• | Management, having the authority to approve the action, commits to a plan to sell the property. |
• | The property is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such property. |
• | An active program to locate a buyer and other actions required to complete the plan to sell the property have been initiated. |
• | The sale of the property is probable, and transfer of the property is expected to qualify for recognition as a completed sale, within one year. |
• | The property is being actively marketed for sale at a price that is reasonable in relation to its current fair value. |
• | Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. |
• | Direct costs associated with obtaining a new tenant, including commissions, tenant improvements, and other direct costs, are estimated based on management's consideration of current market costs to execute a similar lease. Such direct costs are included in intangible lease origination costs in the accompanying consolidated balance sheets and are amortized to expense over the remaining terms of the respective leases. |
• | The value of opportunity costs associated with lost rentals avoided by acquiring an in-place lease is calculated based on contractual amounts to be paid pursuant to the in-place leases over a market absorption period for a similar lease. Such opportunity costs ("Absorption Period Costs") are included in intangible lease assets in the accompanying consolidated balance sheets and are amortized to expense over the remaining terms of the respective leases. |
• | The value of tenant relationships is calculated based on expected renewal of a lease or the likelihood of obtaining a particular tenant for other locations. Values associated with tenant relationships are included in intangible lease assets in the accompanying consolidated balance sheets and are amortized to expense over the remaining terms of the respective leases. |
• | The value of effective rental rates of in-place leases that are above or below the market rates of comparable leases is calculated based on the present value (using a discount rate that reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be received pursuant to the in-place leases and (ii) management's estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining terms of the leases. The capitalized above-market and below-market lease values are recorded as intangible lease assets or liabilities and amortized as an adjustment to rental income over the remaining terms of the respective leases. |
Intangible Lease Assets | Intangible Lease Origination Costs | Intangible Below-Market In-Place Lease Liabilities | ||||||||||||||
Above-Market In-Place Lease Assets | Absorption Period Costs | |||||||||||||||
December 31, 2012 | Gross | $ | 86,696 | $ | 459,931 | $ | 437,857 | $ | 182,624 | |||||||
Accumulated Amortization | (56,259 | ) | (248,600 | ) | (230,930 | ) | (84,326 | ) | ||||||||
Net | $ | 30,437 | $ | 211,331 | $ | 206,927 | $ | 98,298 | ||||||||
December 31, 2011 | Gross | $ | 109,457 | $ | 515,322 | $ | 468,017 | $ | 163,907 | |||||||
Accumulated Amortization | (68,706 | ) | (265,844 | ) | (236,679 | ) | (74,326 | ) | ||||||||
Net | $ | 40,751 | $ | 249,478 | $ | 231,338 | $ | 89,581 |
Intangible Lease Assets | Intangible Lease Origination Costs | Intangible Below-Market In-Place Lease Liabilities | |||||||||||||
Above-Market In-Place Lease Assets | Absorption Period Costs | ||||||||||||||
For the years ended December 31, | |||||||||||||||
2012 | $ | 8,900 | $ | 48,997 | $ | 42,866 | $ | 15,324 | |||||||
2011 | $ | 14,244 | $ | 62,902 | $ | 50,006 | $ | 17,203 | |||||||
2010 | $ | 17,445 | $ | 60,666 | $ | 50,433 | $ | 14,472 |
Intangible Lease Assets | Intangible Lease Origination Costs | Intangible Below-Market In-Place Lease Liabilities | |||||||||||||
Above-Market In-Place Lease Assets | Absorption Period Costs | ||||||||||||||
For the years ending December 31, | |||||||||||||||
2013 | $ | 6,629 | $ | 39,767 | $ | 39,383 | $ | 14,795 | |||||||
2014 | 6,224 | 35,771 | 36,425 | 14,362 | |||||||||||
2015 | 5,810 | 32,018 | 32,980 | 12,828 | |||||||||||
2016 | 5,665 | 25,676 | 26,382 | 10,398 | |||||||||||
2017 | 2,514 | 18,635 | 19,495 | 8,306 | |||||||||||
Thereafter | 3,595 | 59,464 | 52,262 | 37,609 | |||||||||||
$ | 30,437 | $ | 211,331 | $ | 206,927 | $ | 98,298 | ||||||||
Weighted-Average Amortization Period | 4 years | 6 years | 6 years | 7 years |
For the year ending December 31: | |||
2013 | $ | 2,069 | |
2014 | 2,069 | ||
2015 | 2,069 | ||
2016 | 2,069 | ||
2017 | 2,069 | ||
Thereafter | 89,347 | ||
$ | 99,692 | ||
Weighted-Average Amortization Period | 49 years |
Estimated Fair Value as of | ||||||||||
December 31, | ||||||||||
Instrument Type | Balance Sheet Classification | 2012 | 2011 | |||||||
Derivatives designated as hedging instruments: | ||||||||||
Interest rate contracts | Accounts payable | $ | (5,305 | ) | $ | — | ||||
Derivatives not designated as hedging instruments: | ||||||||||
Interest rate contracts | Accounts payable | $ | (13,109 | ) | $ | (1,722 | ) |
Years ended December 31, | |||||||
2012 | 2011 | ||||||
Market value adjustment to interest rate swaps designated as hedging instruments and included in other comprehensive income | $ | (5,305 | ) | $ | 11,223 | ||
Loss on interest rate swap recognized through earnings | $ | (1,225 | ) | $ | (38,383 | ) |
3. | Real Estate Transactions |
Property Name | City | State | Acquisition Date | Land | Buildings and Improvements | Deferred Lease Costs | Intangible Lease Assets | Intangible Lease Origination | Below- Market Lease Liability | Notes Payable Step Up | Swap | Total Purchase Price | Lease Details | |||||||||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||||||||||||||
333 Market Street | San Francisco | CA | 12/21/2012 | $ | 114,483 | $ | 273,203 | $ | — | $ | 19,637 | $ | 26,824 | $ | (25,507 | ) | $ | (1,830 | ) | $ | (11,560 | ) | $ | 395,250 | (1) | |||||||||||||||||||
$ | 114,483 | $ | 273,203 | $ | — | $ | 19,637 | $ | 26,824 | $ | (25,507 | ) | $ | (1,830 | ) | $ | (11,560 | ) | $ | 395,250 | ||||||||||||||||||||||||
2011 | ||||||||||||||||||||||||||||||||||||||||||||
Market Square Buildings | Washington, DC | N/A | 3/7/2011 | $ | 152,629 | $ | 412,548 | $ | — | $ | 45,858 | $ | 12,031 | $ | (19,680 | ) | $ | — | $ | — | $ | 603,386 | (2) | |||||||||||||||||||||
544 Lakeview(3) | Vernon Hills | IL | 4/1/2011 | 3,006 | 3,100 | — | — | — | — | — | — | 6,106 | (4) | |||||||||||||||||||||||||||||||
$ | 155,635 | $ | 415,648 | $ | — | $ | 45,858 | $ | 12,031 | $ | (19,680 | ) | $ | — | $ | — | $ | 609,492 |
(1) | As of the acquisition date, 333 Market Street was 100% leased to Wells Fargo Bank, N.A. through 2026. |
(2) | As of the acquisition date, the Market Square Buildings were 96.2% leased to 41 tenants, including Fulbright and Jaworski (18.8%), Shearman and Sterling (16.6%), and Edison Electric Institute (11.3%). |
(3) | Columbia Property Trust acquired a 50.0% controlling interest in a consolidated joint venture that owns 100.0% of 544 Lakeview, by paying $0.9 million in cash and assuming (i) a mortgage note of $9.1 million, which was included on the consolidated balance sheets as of September 30, 2011, net of discount of $0.4 million, and (ii) escrow balances of approximately $3.2 million. |
(4) | As of the acquisition date, the Lakeview Building was vacant. |
Years ended December 31, | |||||||
2011 | 2010 | ||||||
Revenues (1) | $ | 585,129 | $ | 555,161 | |||
Net income attributable to common stockholders | $ | 53,567 | $ | 1,974 |
(1) | Prior-period amounts adjusted to conform with current-period presentation, including classifying revenues generated by properties held for sale and by properties sold, as discontinued operations for all periods presented (see Note 12, Assets Held for Sale and Discontinued Operations). |
4. | Line of Credit and Notes Payable |
Rate as of December 31, 2012 | Term Debt or Interest Only | Outstanding Balance as of December 31, | |||||||||||||||
Facility | Maturity | 2012 | 2011 | ||||||||||||||
$450 Million Term Loan | LIBOR + 185 bp | (1) | Interest only | 2/3/2016 | $ | 450,000 | $ | — | |||||||||
Market Square Buildings mortgage note | 5.07 | % | Interest only | 7/1/2023 | 325,000 | 325,000 | |||||||||||
333 Market Street Building mortgage note | LIBOR + 202 bp | (2) | Interest only | 7/1/2015 | 208,308 | — | |||||||||||
100 East Pratt Street Building mortgage note | 5.08 | % | Interest only | 6/11/2017 | 105,000 | 105,000 | |||||||||||
Wildwood Buildings mortgage note | 5.00 | % | Interest only | 12/1/2014 | 90,000 | 90,000 | |||||||||||
263 Shuman Boulevard Building mortgage note | 5.55 | % | Interest only | 7/1/2017 | 49,000 | 49,000 | |||||||||||
JPMorgan Chase Credit Facility | 2.62 | % | (3) | Interest only | 5/7/2015 | 42,000 | 484,000 | ||||||||||
SanTan Corporate Center mortgage notes | 5.83 | % | Interest only | 10/11/2016 | 39,000 | 39,000 | |||||||||||
One Glenlake Building mortgage note (4) | 5.80 | % | Term debt | 12/10/2018 | 37,204 | — | |||||||||||
Three Glenlake Building mortgage note | LIBOR + 90 bp | (5) | Interest only | (6) | 7/31/2013 | 26,264 | 25,958 | ||||||||||
215 Diehl Road Building mortgage note | 5.55 | % | Interest only | 7/1/2017 | 21,000 | 21,000 | |||||||||||
544 Lakeview Building mortgage note | 5.54 | % | Interest only | 12/1/2014 | 8,842 | 8,707 | |||||||||||
One West Fourth Street Building mortgage note (4) | 5.80 | % | Term debt | 12/10/2018 | — | 39,555 | |||||||||||
Highland Landmark Building mortgage note | 4.81 | % | Interest only | 1/10/2012 | — | 33,840 | |||||||||||
Total indebtedness | $ | 1,401,618 | $ | 1,221,060 |
(1) | Columbia Property Trust is party to an interest rate swap agreement, which effectively fixes its interest rate on the $450 million Term Loan at 2.63% per annum and terminates on February 3, 2016. This interest rate swap agreement qualifies for hedge accounting treatment; therefore, changes in fair value are recorded as a market value adjustment to interest rate swap in the accompanying consolidated statements of other comprehensive income. |
(2) | Columbia Property Trust is party to an interest rate swap agreement, which effectively fixes its interest rate on the 333 Market Street Building mortgage note at 4.75% per annum and terminates on July 1, 2015. This interest rate swap agreement does not qualify for hedge accounting treatment; therefore, changes in fair value are recorded as loss on interest rate swaps in the accompanying consolidated statements of operations. |
(3) | The JPMorgan Chase Bank, N.A. (the "JPMorgan Chase Bank") unsecured debt bears interest at a rate based on, at the option of Columbia Property Trust, LIBOR for one-, two-, three-, or six-month periods, plus an applicable margin ranging from 1.25% to 2.05%, or the alternate base rate for any day is the greatest of the rate of interest publicly announced by JPMorgan Chase Bank as its prime rate in effect in its principal office in New York City for such day plus an applicable margin ranging from 1.60% to 2.40%. |
(4) | As part of the Nine Property Sale, the outstanding balance on the One West Fourth Street Building mortgage note was transferred to the One Glenlake Building. |
(5) | Columbia Property Trust is party to an interest rate swap agreement, which effectively fixes its interest rate on the Three Glenlake Building mortgage note at 5.95% per annum and terminates on July 31, 2013. This interest rate swap agreement does not qualify for hedge accounting treatment; therefore, changes in fair value are recorded as loss on interest rate swaps in the accompanying consolidated statements of operations. |
(6) | Interest is due monthly; however, under the terms of the loan agreement, a portion of the monthly debt service amount accrues and is added to the outstanding balance of the note over the term. |
• | limits the ratio of debt to total asset value, as defined, to 50% or less during the term of the facility; |
• | limits the ratio of secured debt to total asset value, as defined, to 40% or less during the term of the facility; |
• | requires the ratio of unencumbered asset value, as defined, to total unsecured debt to be at least 2:1 at all times; |
• | requires maintenance of certain interest and fixed-charge coverage ratios; |
• | limits the ratio of secured recourse debt to total asset value, as defined, to 10% or less at all times; |
• | requires maintenance of certain minimum tangible net worth balances; and |
• | limits investments that fall outside Columbia Property Trust's core investments of improved office properties located in the United States. |
2013 | $ | 28,755 | |
2014 | 101,481 | ||
2015 | 253,104 | ||
2016 | 491,963 | ||
2017 | 178,139 | ||
Thereafter | 348,176 | ||
Total | $ | 1,401,618 |
5. | Bonds Payable |
• | limits to Columbia Property Trust's ability to merge or consolidate with another entity or transfer all or substantially all of Columbia Property Trust's property and assets, subject to important exceptions and qualifications; |
• | a limitation on the ratio of debt to total assets, as defined, to 60%; |
• | limits to Columbia Property Trust's ability to incur debt if the consolidated income available for debt service to annual debt service charge, as defined, for four previous consecutive fiscal quarters is less than 1.5:1 on a pro forma basis; |
• | limits to Columbia Property Trust's ability to incur liens if, on an aggregate basis for Columbia Property Trust, the secured debt amount would exceed 40% of the value of the total assets; and |
• | a requirement that the ratio of unencumbered asset value, as defined, to total unsecured debt be at least 150% at all times. |
6. | Commitments and Contingencies |
2013 | $ | 2,633 | |
2014 | 2,633 | ||
2015 | 2,633 | ||
2016 | 2,633 | ||
2017 | 2,779 | ||
Thereafter | 211,464 | ||
Total | $ | 224,775 |
2013 | $ | 499,993 | |
2014 | 7,200 | ||
2015 | 7,200 | ||
2016 | 7,200 | ||
2017 | 7,200 | ||
Thereafter | 148,800 | ||
677,593 | |||
Amounts representing interest | (91,593 | ) | |
Total | $ | 586,000 |
7. | Stockholders' Equity |
Number | Exercise Price | Exercisable | ||||||
Outstanding as of December 31, 2009 | 29,500 | $12 | 28,500 | |||||
Granted | — | |||||||
Terminated | — | |||||||
Outstanding as of December 31, 2010 | 29,500 | $12 | 29,000 | |||||
Granted | — | |||||||
Terminated | — | |||||||
Outstanding as of December 31, 2011 | 29,500 | $12 | 29,500 | |||||
Granted | — | |||||||
Terminated | — | |||||||
Outstanding as of December 31, 2012 | 29,500 | $12 | 29,500 |
• | First, Columbia Property Trust will limit requests for all redemptions (other than those sought within two years of a stockholder's death) on a pro rata basis so that the aggregate of such redemptions during any calendar year will not exceed 5.0% of the weighted-average number of shares outstanding in the prior calendar year. Requests precluded by this test will not be considered in the test below. |
• | In addition, if necessary, Columbia Property Trust will limit all redemption requests, including those sought within two years of a stockholder's death, on a pro rata basis so that the aggregate of such redemptions during any calendar year would not exceed the greater of 100% of the net proceeds from its DRP during the calendar year, or 5.0% of weighted-average number of shares outstanding in the prior calendar year. |
2013 | $ | 418,995 | |
2014 | 422,738 | ||
2015 | 408,386 | ||
2016 | 381,546 | ||
2017 | 308,358 | ||
Thereafter | 1,214,588 | ||
Total | $ | 3,154,611 |
9. | Supplemental Disclosures of Noncash Investing and Financing Activities |
Years ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
Other assets assumed upon acquisition of properties | $ | 130 | $ | 3,202 | $ | — | |||||
Other liabilities assumed upon acquisition of property | $ | — | $ | 1,174 | $ | — | |||||
Interest rate swap assumed upon acquisition of property | $ | 11,560 | $ | — | $ | — | |||||
Notes payable assumed at acquisition | $ | 208,330 | $ | 8,607 | $ | — | |||||
Noncash interest accruing to notes payable | $ | 306 | $ | 15,891 | $ | 14,922 | |||||
Market value adjustment to interest rate swaps that qualify for hedge accounting treatment | $ | (5,305 | ) | $ | — | $ | 9,485 | ||||
Accrued capital expenditures and deferred lease costs | $ | 16,325 | $ | 7,751 | $ | 2,210 | |||||
Commissions on stock sales and related dealer-manager fees due to affiliate | $ | — | $ | — | $ | 4 | |||||
Accrued deferred financing costs | $ | 35 | $ | 48 | $ | — | |||||
Accrued redemptions of common stock | $ | 3,655 | $ | 1,640 | $ | 14 | |||||
Settlement of redeemable controlling interest through issuance of common stock | $ | — | $ | 14 | $ | — | |||||
Discounts applied to issuance of common stock | $ | — | $ | — | $ | 4,542 | |||||
Settlement of Manhattan Towers mortgage note by transferring property to lender | $ | — | $ | 75,000 | $ | — | |||||
Transfer of development authority bonds | $ | 60,000 | $ | — | $ | 18,000 | |||||
Nonrefundable earnest money for property sales | $ | — | $ | 880 | $ | — | |||||
Decrease in redeemable common stock | $ | 13,621 | $ | 48,042 | $ | 644,655 |
10. | Related-Party Transactions and Agreements |
• | Asset management fees were incurred monthly at one-twelfth of 0.625% of the lesser of (i) gross cost, as defined, of all properties of Columbia Property Trust (other than those that failed to meet specified occupancy thresholds) and investments in joint ventures, or (ii) the aggregate value of Columbia Property Trust's interest in the properties and joint ventures as established with the most recent asset-based valuation, until the monthly payment equals $2.7 million (or $32.5 million annualized), as of the last day of each preceding month. From April 2011 through June 2012, asset management fees were capped at $2.7 million per month (or $32.5 million annualized) following the March 2011 acquisition of the Market Square Buildings. Effective July 1, 2012, monthly asset management fees charged under the Advisory Agreement were reduced by $83,333 (or, a total savings of $0.5 million for the six months ended December 31, 2012), resulting in a cap of $2.6 million. From July 2012 through December 2012, asset management fees were paid at a cap of $2.6 million per month. Under the Renewal Advisory Agreement, the management fee reduction increased from $83,333 to $166,667 per |
• | Reimbursement for all costs and expenses WREAS II and its affiliates incurred in fulfilling its duties as the asset portfolio manager, generally including (i) wages and salaries and other employee-related expenses of WREAS II and its affiliates' employees, who performed a full range of real estate services for Columbia Property Trust, including management, administration, operations, and marketing, and were billed to Columbia Property Trust based on the amount of time spent on Columbia Property Trust by such personnel, provided that such expenses were not reimbursed if incurred in connection with services for which WREAS II and its affiliates could have received a disposition fee (described below) or an acquisition fee; and (ii) amounts paid for IRA custodial service costs allocated to Columbia Property Trust accounts. The Advisory Agreement limited the amount of reimbursements to the advisor of "portfolio general and administrative expenses" and "personnel expenses," as defined, to the extent they would exceed $18.2 million and $10.0 million, respectively, for the period from January 1, 2012 through December 31, 2012. |
• | Effective August 1, 2011, acquisition fees were incurred at 1.0% of property purchase price (excluding acquisition expenses); however, in no event could total acquisition fees for the calendar year exceed 2.0% of total gross offering proceeds. Columbia Property Trust also reimbursed WREAS II and its affiliates for expenses it paid to third parties in connection with acquisitions or potential acquisitions. Under the Renewal Advisory Agreement, acquisition fees payable to WREAS II for 2012 and 2013 had an aggregate cap of $1.5 million, discussed below, Columbia Property Trust paid acquisition fees of $1.5 million related to the acquisition on the 333 Market Street Building in San Francisco, California, in December 2012, and as a result, no additional acquisition fees are required to be paid by Columbia Property Trust to WREAS II in 2013. |
• | For any property sold by Columbia Property Trust, other than part of a "bulk sale" of assets, as defined, a disposition fee equal to 1.0% of the sales price, with the limitation that the total real estate commissions (including such disposition fee) for any Columbia Property Trust property sold may not exceed the lesser of (i) 6.0% of the sales price of each property or (ii) the level of real estate commissions customarily charged in light of the size, type, and location of the property. Under the Renewal Advisory Agreement, the disposition fee payable for the sale of any property for which WREAS II provided substantial services was reduced from 1.0% to the lesser of (i) 0.3% or (ii) the broker fee paid to a third-party broker in connection with the sale. In addition, pursuant to the terms of the Amendment to Transition Services Agreement discussed below, the amount of the disposition fee payable to WREAS II with respect to the Nine Property Sale would equal the amount of the broker fee paid to the third-party broker (approximately 0.5%). In December 2012, Columbia Property Trust paid disposition fees of $1.3 million related to the Nine Property Sale. |
• | Reimbursement of organization and offering costs paid by WREAS II and its affiliates on behalf of Columbia Property Trust, not to exceed 2.0% of gross offering proceeds. |
• | Effective July 1, 2012, occupancy costs of $21,000 ($252,000 annualized) are incurred for WREAS II's dedicated office space. In 2012, Columbia Property Trust paid occupancy fees of $126,000. |
• | The company may, at its option, acquire WRES, the entity charged with carrying out property management functions on behalf of WREAS II, for consideration of approximately $2.8 million payable to Wells Real Estate Funds in monthly installments from July 2013 through December 2013 under the Transition Services Agreement (the "WRES Assignment Option"). As further explained in Note 1, Organization, the company closed the above-described option on February 28, 2013. |
• | Upon terminating the Advisory Agreement and effecting the WREAS II Assignment Option, Columbia Property Trust will enter into a new investor services agreement with WREF, which provides for the payment of various fees and reimbursement of third-party expenses to WREF (the "Investor Services Agreement") in connection with the provision of such services. |
• | Adjustments to acquisition and disposition fees as discussed above. |
• | Property management fees in an amount equal to a percentage negotiated for each property managed by WREAS II of the gross monthly income collected for that property for the preceding month; |
• | Leasing commissions for new, renewal, or expansion leases entered into with respect to any property for which Wells Management serves as leasing agent, equal to a percentage as negotiated for that property of the total base rental and operating expenses to be paid to Columbia Property Trust during the applicable term of the lease, provided, however, that no commission shall be payable as to any portion of such term beyond ten years; |
• | Initial lease-up fees for newly constructed properties under the agreement, generally equal to one month's rent; |
• | Fees equal to a specified percentage of up to 5.0% of all construction build-out funded by Columbia Property Trust, given as a leasing concession, and overseen by WREAS II; and |
• | Other fees as negotiated with the addition of each specific property covered under the agreement. |
Years ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
Asset management fees | $ | 32,000 | $ | 32,094 | $ | 30,552 | |||||
Administrative reimbursements, net(1) | 11,099 | 11,609 | 13,099 | ||||||||
Property management fees | 4,462 | 4,546 | 3,564 | ||||||||
Transition services | 3,008 | — | — | ||||||||
Acquisition fees | 1,500 | 1,307 | 9,671 | ||||||||
Disposition fees | 1,311 | — | — | ||||||||
Occupancy costs | 126 | — | — | ||||||||
Construction fees(2) | 220 | 211 | 185 | ||||||||
Commissions, net of discounts(3)(4) | — | — | 21,909 | ||||||||
Dealer-manager fees, net of discounts(3) | — | — | 7,843 | ||||||||
Other offering costs(3) | — | — | 4,177 | ||||||||
Total | $ | 53,726 | $ | 49,767 | $ | 91,000 |
(1) | Administrative reimbursements are presented net of reimbursements from tenants of approximately $4.4 million, $4.0 million, and $3.5 million for the years ended December 31, 2012, 2011, and 2010, respectively. |
(2) | Construction fees are capitalized to real estate assets as incurred. |
(3) | Commissions, dealer-manager fees, and other offering costs were charged against equity as incurred. |
(4) | Substantially all commissions were re-allowed to participating broker/dealers during 2010. |
December 31, | |||||||
2012 | 2011 | ||||||
Administrative reimbursements | $ | 1,360 | $ | 217 | |||
Asset and property management fees | 560 | 3,112 | |||||
Total | $ | 1,920 | $ | 3,329 |
11. | Income Taxes |
2012 | 2011 | 2010 | |||||||||
GAAP basis financial statement net income attributable to the common stockholders of Columbia Property Trust, Inc. | $ | 48,039 | $ | 56,642 | $ | 23,266 | |||||
Increase (decrease) in net income resulting from: | |||||||||||
Depreciation and amortization expense for financial reporting purposes in excess of amounts for income tax purposes | 81,681 | 101,498 | 96,695 | ||||||||
Rental income accrued for financial reporting purposes in excess of amounts for income tax purposes | (24,798 | ) | (11,203 | ) | (1,739 | ) | |||||
Net amortization of above-/below-market lease intangibles for financial reporting purposes (less than) in excess of amounts for income tax purposes | (3,423 | ) | (2,960 | ) | 3,328 | ||||||
Loss (gain) on interest rate swaps that do not qualify for hedge accounting treatment for financial reporting purposes in excess of amounts for income tax purposes | (173 | ) | (35,487 | ) | 9,485 | ||||||
Bad debt expense for financial reporting purposes (less than) in excess of amounts for income tax purposes | (5,034 | ) | (229 | ) | 2,024 | ||||||
Gains or losses on disposition of real property for financial reporting purposes that are (more) less favorable than amounts for income tax purposes | (61,198 | ) | (16,282 | ) | (433 | ) | |||||
Other expenses for financial reporting purposes (less than) in excess of amounts for income tax purposes | 7,349 | 15,603 | 13,155 | ||||||||
Income tax basis net income, prior to dividends-paid deduction | $ | 42,443 | $ | 107,582 | $ | 145,781 |
2012 | 2011 | 2010 | ||||||
Ordinary income | 16 | % | 39 | % | 45 | % | ||
Capital gains | — | — | — | |||||
Return of capital | 84 | % | 61 | % | 55 | % | ||
Total | 100 | % | 100 | % | 100 | % |
Years ended December 31, | ||||||||
2012 | 2011 | 2010 | ||||||
Federal statutory income tax rate | 34.00 | % | 34.00 | % | 34.00 | % | ||
State income taxes, net of federal benefit | 2.12 | % | 0.93 | % | 1.34 | % | ||
Interest expense related to notes payable step up | 6.98 | % | (2.27 | )% | — | % | ||
Other | — | % | 0.22 | % | 0.28 | % | ||
Effective tax rate | 43.10 | % | 32.88 | % | 35.62 | % |
12. | Assets Held for Sale and Discontinued Operations |
December 31, | |||
2011 | |||
Real estate assets held for sale: | |||
Real estate assets, at cost: | |||
Land | $ | 11,536 | |
Buildings and improvements, less accumulated depreciation of $6,509 | 25,972 | ||
Intangible lease assets, less accumulated amortization of $3,042 | — | ||
Total real estate assets held for sale, net | $ | 37,508 | |
Other assets held for sale: | |||
Tenant receivables | $ | 1,747 | |
Prepaid expenses and other assets | 39 | ||
Intangible lease origination costs, less accumulated amortization of $2,018 | — | ||
Deferred lease costs, less accumulated amortization of $242 | 1,646 | ||
Total other assets held for sale, net | $ | 3,432 | |
Liabilities held for sale: | |||
Accounts payable, accrued expenses, and accrued capital expenditures | $ | 176 | |
Due to affiliates | 2 | ||
Deferred income | 446 | ||
Total liabilities held for sale | $ | 624 |
Years ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
Revenues: | |||||||||||
Rental income | $ | 30,644 | $ | 39,640 | $ | 50,932 | |||||
Tenant reimbursements | 1,598 | 2,712 | 6,241 | ||||||||
Other property income | — | 515 | 280 | ||||||||
32,242 | 42,867 | 57,453 | |||||||||
Expenses: | |||||||||||
Property operating costs | 10,732 | 15,672 | 18,495 | ||||||||
Asset and property management fees | 2,547 | 2,644 | 4,048 | ||||||||
Depreciation | 6,200 | 9,073 | 9,945 | ||||||||
Amortization | 4,585 | 8,919 | 14,032 | ||||||||
Impairment loss on real estate assets | 18,467 | 5,817 | — | ||||||||
General and administrative | 198 | 428 | 382 | ||||||||
Total expenses | 42,729 | 42,553 | 46,902 | ||||||||
Real estate operating (loss) income | (10,487 | ) | 314 | 10,551 | |||||||
Other income (expense): | |||||||||||
Interest expense | (2,105 | ) | (5,249 | ) | (7,686 | ) | |||||
Interest and other income | 1 | 4 | 816 | ||||||||
Operating (loss) income from discontinued operations | (12,591 | ) | (4,931 | ) | 3,681 | ||||||
Gain (loss) on sale of real assets | 20,117 | — | (161 | ) | |||||||
Gain on early extinguishment of debt | — | 13,522 | — | ||||||||
Gain (loss) on disposition of discontinued operations | 20,117 | 13,522 | (161 | ) | |||||||
Income from discontinued operations | $ | 7,526 | $ | 8,591 | $ | 3,520 |
2012 | |||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
Revenues(1) | $ | 142,928 | $ | 142,334 | $ | 146,486 | $ | 144,943 | |||||||
Net income (loss) attributable to common stockholders of Columbia Property Trust, Inc. | $ | 31,131 | $ | 10,914 | $ | (5,859 | ) | $ | 11,853 | ||||||
Basic and diluted net income (loss) attributable to common stockholders of Columbia Property Trust, Inc. per share | $ | 0.06 | $ | 0.02 | $ | (0.01 | ) | $ | 0.02 | ||||||
Distributions declared per share | $ | 0.125 | $ | 0.125 | $ | 0.125 | $ | 0.095 |
(1) | Prior-period amounts adjusted to conform with current-period presentation, including classifying revenues generated by properties held for sale and by properties sold, as discontinued operations for all periods presented (see Note 12, Assets Held for Sale and Discontinued Operations). |
2011 | |||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
Revenues(1) | $ | 133,913 | $ | 143,141 | $ | 148,909 | $ | 150,426 | |||||||
Net income (loss) attributable to common stockholders of Columbia Property Trust, Inc. | $ | 2,411 | $ | (4,482 | ) | $ | 5,102 | $ | 53,611 | ||||||
Basic and diluted net income (loss) attributable to common stockholders of Columbia Property Trust, Inc. per share | $ | — | $ | (0.01 | ) | $ | 0.01 | $ | 0.10 | ||||||
Distributions declared per share | $ | 0.125 | $ | 0.125 | $ | 0.125 | $ | 0.125 |
(1) | Prior-period amounts adjusted to conform with current-period presentation, including classifying revenues generated by properties held for sale and by properties sold, as discontinued operations for all periods presented (see Note 12, Assets Held for Sale and Discontinued Operations). |
(1) | The subsidiary issuer (Columbia Property Trust OP) and all Subsidiary Guarantors are 100% owned by the parent company guarantor (Columbia Property Trust); |
(2) | The guarantees are full and unconditional; and |
(3) | The guarantees are joint and several. |
As of December 31, 2012 | |||||||||||||||||||||||
Columbia Property Trust (Parent) | Columbia Property Trust OP (the Issuer) | Guarantors | Non- Guarantors | Consolidating Adjustments | Columbia Property Trust (Consolidated) | ||||||||||||||||||
Assets: | |||||||||||||||||||||||
Real estate assets, at cost: | |||||||||||||||||||||||
Land | $ | — | $ | 6,241 | $ | 214,425 | $ | 568,571 | $ | — | $ | 789,237 | |||||||||||
Buildings and improvements, net | — | 16,513 | 1,550,988 | 1,900,717 | — | 3,468,218 | |||||||||||||||||
Intangible lease assets, net | — | — | 120,311 | 221,149 | — | 341,460 | |||||||||||||||||
Construction in progress | — | 5,252 | 2,268 | 5,160 | — | 12,680 | |||||||||||||||||
Total real estate assets | — | 28,006 | 1,887,992 | 2,695,597 | — | 4,611,595 | |||||||||||||||||
Cash and cash equivalents | 20,914 | 4,822 | 13,673 | 14,248 | — | 53,657 | |||||||||||||||||
Investment in subsidiaries | 3,068,106 | 2,679,950 | — | — | (5,748,056 | ) | — | ||||||||||||||||
Tenant receivables, net of allowance | — | 22 | 62,412 | 75,888 | (4,223 | ) | 134,099 | ||||||||||||||||
Prepaid expenses and other assets | 178,131 | 203,589 | 1,408 | 26,929 | (380,684 | ) | 29,373 | ||||||||||||||||
Deferred financing costs, net | — | 8,498 | — | 1,992 | — | 10,490 | |||||||||||||||||
Intangible lease origination costs, net | — | — | 105,748 | 101,179 | — | 206,927 | |||||||||||||||||
Deferred lease costs, net | — | 68 | 38,619 | 60,121 | — | 98,808 | |||||||||||||||||
Investment in development authority bonds | — | — | 466,000 | 120,000 | — | 586,000 | |||||||||||||||||
Total assets | $ | 3,267,151 | $ | 2,924,955 | $ | 2,575,852 | $ | 3,095,954 | $ | (6,132,963 | ) | $ | 5,730,949 | ||||||||||
Liabilities: | |||||||||||||||||||||||
Line of credit and notes payable | $ | — | $ | 492,000 | $ | 145,974 | $ | 1,142,644 | $ | (379,000 | ) | $ | 1,401,618 | ||||||||||
Bonds payable, net | — | 248,678 | — | — | — | 248,678 | |||||||||||||||||
Accounts payable, accrued expenses, and accrued capital expenditures | 3,645 | 12,417 | 26,594 | 64,425 | (4,223 | ) | 102,858 | ||||||||||||||||
Due to affiliates | — | 960 | 1,485 | 1,159 | (1,684 | ) | 1,920 | ||||||||||||||||
Deferred income | — | 81 | 14,619 | 13,371 | — | 28,071 | |||||||||||||||||
Intangible lease liabilities, net | — | — | 32,589 | 65,709 | — | 98,298 | |||||||||||||||||
Obligations under capital leases | — | — | 466,000 | 120,000 | — | 586,000 | |||||||||||||||||
Total liabilities | 3,645 | 754,136 | 687,261 | 1,407,308 | (384,907 | ) | 2,467,443 | ||||||||||||||||
Redeemable Common Stock | 99,526 | — | — | — | — | 99,526 | |||||||||||||||||
Equity: | |||||||||||||||||||||||
Total Columbia Property Trust, Inc. stockholders' equity | 3,163,980 | 2,170,819 | 1,888,591 | 1,688,646 | (5,748,056 | ) | 3,163,980 | ||||||||||||||||
Total equity | 3,163,980 | 2,170,819 | 1,888,591 | 1,688,646 | (5,748,056 | ) | 3,163,980 | ||||||||||||||||
Total liabilities, redeemable common stock, and equity | $ | 3,267,151 | $ | 2,924,955 | $ | 2,575,852 | $ | 3,095,954 | $ | (6,132,963 | ) | $ | 5,730,949 |
As of December 31, 2011 | |||||||||||||||||||||||
Columbia Property Trust (Parent) | Columbia Property Trust OP (the Issuer) | Guarantors | Non- Guarantors | Consolidating Adjustments | Columbia Property Trust (Consolidated) | ||||||||||||||||||
Assets: | |||||||||||||||||||||||
Real estate assets, at cost: | |||||||||||||||||||||||
Land | $ | — | $ | — | $ | 223,522 | $ | 480,814 | $ | — | $ | 704,336 | |||||||||||
Building and improvements, net | — | — | 1,635,910 | 1,837,061 | — | 3,472,971 | |||||||||||||||||
Intangible lease assets, net | — | — | 153,070 | 238,919 | — | 391,989 | |||||||||||||||||
Construction in progress | — | — | 4,224 | 4,190 | — | 8,414 | |||||||||||||||||
Real estate assets held for sale, net | — | — | — | 37,508 | — | 37,508 | |||||||||||||||||
Total real estate assets | — | — | 2,016,726 | 2,598,492 | — | 4,615,218 | |||||||||||||||||
Cash and cash equivalents | 11,291 | 10,597 | 9,133 | 8,447 | — | 39,468 | |||||||||||||||||
Investment in subsidiaries | 3,275,979 | 2,786,248 | — | — | (6,062,227 | ) | — | ||||||||||||||||
Tenant receivables, net of allowance | — | — | 58,435 | 77,471 | (5,357 | ) | 130,549 | ||||||||||||||||
Prepaid expenses and other assets | 177,444 | 202,126 | 2,056 | 29,009 | (377,804 | ) | 32,831 | ||||||||||||||||
Deferred financing costs, net | — | 8,287 | — | 1,155 | — | 9,442 | |||||||||||||||||
Intangible lease origination costs, net | — | — | 133,052 | 98,286 | — | 231,338 | |||||||||||||||||
Deferred lease costs, net | — | — | 28,650 | 39,639 | — | 68,289 | |||||||||||||||||
Investment in development authority bonds | — | — | 466,000 | 180,000 | — | 646,000 | |||||||||||||||||
Other assets held for sale, net | — | — | — | 3,432 | — | 3,432 | |||||||||||||||||
Total assets | $ | 3,464,714 | $ | 3,007,258 | $ | 2,714,052 | $ | 3,035,931 | $ | (6,445,388 | ) | $ | 5,776,567 | ||||||||||
Liabilities: | |||||||||||||||||||||||
Lines of credit and notes payable | $ | — | $ | 484,000 | $ | 147,730 | $ | 966,123 | $ | (376,793 | ) | $ | 1,221,060 | ||||||||||
Bonds payable, net | — | 248,426 | — | — | — | 248,426 | |||||||||||||||||
Accounts payable, accrued expenses, and accrued capital expenditures | 1,652 | 5,696 | 24,871 | 45,487 | (5,357 | ) | 72,349 | ||||||||||||||||
Due to affiliates | — | 2,779 | 1,178 | 383 | (1,011 | ) | 3,329 | ||||||||||||||||
Deferred income | — | — | 22,280 | 12,799 | — | 35,079 | |||||||||||||||||
Intangible lease liabilities, net | — | — | 39,224 | 50,357 | — | 89,581 | |||||||||||||||||
Obligations under capital leases | — | — | 466,000 | 180,000 | — | 646,000 | |||||||||||||||||
Liabilities held for sale | — | — | — | 624 | — | 624 | |||||||||||||||||
Total liabilities | 1,652 | 740,901 | 701,283 | 1,255,773 | (383,161 | ) | 2,316,448 | ||||||||||||||||
Redeemable Common Stock | 113,147 | — | — | — | — | 113,147 | |||||||||||||||||
Equity: | |||||||||||||||||||||||
Total Columbia Property Trust, Inc. stockholders' equity | 3,349,915 | 2,266,357 | 2,012,769 | 1,779,841 | (6,062,227 | ) | 3,346,655 | ||||||||||||||||
Nonredeemable noncontrolling interests | — | — | — | 317 | — | 317 | |||||||||||||||||
Total equity | 3,349,915 | 2,266,357 | 2,012,769 | 1,780,158 | (6,062,227 | ) | 3,346,972 | ||||||||||||||||
Total liabilities, redeemable common stock, and equity | $ | 3,464,714 | $ | 3,007,258 | $ | 2,714,052 | $ | 3,035,931 | $ | (6,445,388 | ) | $ | 5,776,567 |
For the year ended December 31, 2012 | |||||||||||||||||||||||
Columbia Property Trust (Parent) | Columbia Property Trust OP (the Issuer) | Guarantors | Non- Guarantors | Consolidating Adjustments | Columbia Property Trust (Consolidated) | ||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Rental income | $ | — | $ | 1,649 | $ | 220,603 | $ | 223,674 | $ | (3,642 | ) | $ | 442,284 | ||||||||||
Tenant reimbursements | — | 103 | 40,444 | 66,773 | (2,457 | ) | 104,863 | ||||||||||||||||
Hotel income | — | — | — | 23,049 | — | 23,049 | |||||||||||||||||
Other property income | — | 86 | 4,230 | 2,775 | (596 | ) | 6,495 | ||||||||||||||||
— | 1,838 | 265,277 | 316,271 | (6,695 | ) | 576,691 | |||||||||||||||||
Expenses: | |||||||||||||||||||||||
Property operating costs | — | 1,634 | 67,104 | 107,695 | (2,967 | ) | 173,466 | ||||||||||||||||
Hotel operating costs | — | — | — | 22,004 | (3,642 | ) | 18,362 | ||||||||||||||||
Asset and property management fees: | |||||||||||||||||||||||
Related-party | 29,933 | 58 | 2,234 | 3,310 | (1,141 | ) | 34,394 | ||||||||||||||||
Other | — | — | 1,412 | 1,414 | — | 2,826 | |||||||||||||||||
Depreciation | — | 710 | 52,733 | 60,664 | — | 114,107 | |||||||||||||||||
Amortization | — | 357 | 47,718 | 49,574 | — | 97,649 | |||||||||||||||||
Impairment loss on real estate assets | — | — | — | — | — | — | |||||||||||||||||
General and administrative | 49 | 21,436 | 2,369 | 1,309 | — | 25,163 | |||||||||||||||||
Acquisition fees and expenses | — | — | — | 1,876 | — | 1,876 | |||||||||||||||||
29,982 | 24,195 | 173,570 | 247,846 | (7,750 | ) | 467,843 | |||||||||||||||||
Real estate operating (loss) income | (29,982 | ) | (22,357 | ) | 91,707 | 68,425 | 1,055 | 108,848 | |||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Interest expense | — | (32,469 | ) | (40,239 | ) | (58,622 | ) | 24,939 | (106,391 | ) | |||||||||||||
Interest and other income | 7,988 | 16,960 | 29,229 | 10,633 | (24,939 | ) | 39,871 | ||||||||||||||||
Loss on interest rate swaps | — | — | — | (1,225 | ) | — | (1,225 | ) | |||||||||||||||
Income (loss) from equity investment | 70,033 | 95,902 | — | — | (165,935 | ) | — | ||||||||||||||||
78,021 | 80,393 | (11,010 | ) | (49,214 | ) | (165,935 | ) | (67,745 | ) | ||||||||||||||
Income (loss) before income tax benefit (expense) | 48,039 | 58,036 | 80,697 | 19,211 | (164,880 | ) | 41,103 | ||||||||||||||||
Income tax benefit (expense) | — | (14 | ) | (200 | ) | (372 | ) | — | (586 | ) | |||||||||||||
Income (loss) from continuing operations | 48,039 | 58,022 | 80,497 | 18,839 | (164,880 | ) | 40,517 | ||||||||||||||||
Discontinued operations: | |||||||||||||||||||||||
Operating income (loss) from discontinued operations | — | — | 2,632 | (15,223 | ) | — | (12,591 | ) | |||||||||||||||
(Loss) gain on disposition of discontinued operations | — | — | (383 | ) | 20,500 | — | 20,117 | ||||||||||||||||
Income from discontinued operations | — | — | 2,249 | 5,277 | — | 7,526 | |||||||||||||||||
Net income (loss) | 48,039 | 58,022 | 82,746 | 24,116 | (164,880 | ) | 48,043 | ||||||||||||||||
Net income (loss) attributable to noncontrolling interests | — | — | — | (4 | ) | — | (4 | ) | |||||||||||||||
Net income (loss) attributable to the common stockholders of Columbia Property Trust, Inc. | $ | 48,039 | $ | 58,022 | $ | 82,746 | $ | 24,112 | $ | (164,880 | ) | $ | 48,039 |
For the year ended December 31, 2011 | |||||||||||||||||||||||
Columbia Property Trust (Parent) | Columbia Property Trust OP (the Issuer) | Guarantors | Non- Guarantors | Consolidating Adjustments | Columbia Property Trust (Consolidated) | ||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Rental income | $ | — | $ | — | $ | 227,439 | $ | 219,366 | $ | (4,898 | ) | $ | 441,907 | ||||||||||
Tenant reimbursements | — | — | 41,195 | 61,749 | — | 102,944 | |||||||||||||||||
Hotel income | — | — | — | 20,600 | — | 20,600 | |||||||||||||||||
Other property income | — | 145 | 433 | 11,041 | (681 | ) | 10,938 | ||||||||||||||||
— | 145 | 269,067 | 312,756 | (5,579 | ) | 576,389 | |||||||||||||||||
Expenses: | |||||||||||||||||||||||
Property operating costs | — | — | 67,598 | 100,365 | (536 | ) | 167,427 | ||||||||||||||||
Hotel operating costs | — | — | — | 22,292 | (4,898 | ) | 17,394 | ||||||||||||||||
Asset and property management fees: | |||||||||||||||||||||||
Related-party | 29,511 | — | 1,654 | 3,548 | (145 | ) | 34,568 | ||||||||||||||||
Other | — | — | 1,838 | 949 | — | 2,787 | |||||||||||||||||
Depreciation | — | — | 52,714 | 57,985 | — | 110,699 | |||||||||||||||||
Amortization | — | — | 51,320 | 60,145 | — | 111,465 | |||||||||||||||||
General and administrative | 43 | 18,124 | 2,106 | 3,462 | — | 23,735 | |||||||||||||||||
Acquisition fees and expenses | 1,307 | — | — | 9,943 | — | 11,250 | |||||||||||||||||
30,861 | 18,124 | 177,230 | 258,689 | (5,579 | ) | 479,325 | |||||||||||||||||
Real estate operating (loss) income | (30,861 | ) | (17,979 | ) | 91,837 | 54,067 | — | 97,064 | |||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Interest expense | — | (28,329 | ) | (43,015 | ) | (52,572 | ) | 17,611 | (106,305 | ) | |||||||||||||
Interest and other income (expense) | 2,129 | 17,830 | 29,231 | 10,816 | (17,611 | ) | 42,395 | ||||||||||||||||
Loss on interest rate swaps | — | — | — | (38,383 | ) | — | (38,383 | ) | |||||||||||||||
Income (loss) from equity investment | 85,374 | 118,245 | — | — | (203,619 | ) | — | ||||||||||||||||
Gain on the early extinguishment of debt | — | — | — | 53,018 | — | 53,018 | |||||||||||||||||
87,503 | 107,746 | (13,784 | ) | (27,121 | ) | (203,619 | ) | (49,275 | ) | ||||||||||||||
Income (loss) before income tax (expense) benefit | 56,642 | 89,767 | 78,053 | 26,946 | (203,619 | ) | 47,789 | ||||||||||||||||
Income tax (expense) benefit | — | — | (303 | ) | 579 | — | 276 | ||||||||||||||||
Income (loss) from continuing operations | 56,642 | 89,767 | 77,750 | 27,525 | (203,619 | ) | 48,065 | ||||||||||||||||
Discontinued operations: | |||||||||||||||||||||||
Operating income (loss) from discontinued operations | — | — | 2,714 | (7,645 | ) | — | (4,931 | ) | |||||||||||||||
Gain on disposition of discontinued operations | — | — | — | 13,522 | — | 13,522 | |||||||||||||||||
Income from discontinued operations | — | — | 2,714 | 5,877 | — | 8,591 | |||||||||||||||||
Net income (loss) | 56,642 | 89,767 | 80,464 | 33,402 | (203,619 | ) | 56,656 | ||||||||||||||||
Less: net income attributable to noncontrolling interests | — | — | — | (14 | ) | — | (14 | ) | |||||||||||||||
Net income (loss) attributable to the common stockholders of Columbia Property Trust, Inc. | $ | 56,642 | $ | 89,767 | $ | 80,464 | $ | 33,388 | $ | (203,619 | ) | $ | 56,642 |
For the year ended December 31, 2010 | |||||||||||||||||||||||
Columbia Property Trust (Parent) | Columbia Property Trust OP (the Issuer) | Guarantors | Non- Guarantors | Consolidating Adjustments | Columbia Property Trust (Consolidated) | ||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Rental income | $ | — | $ | — | $ | 222,667 | $ | 178,330 | $ | (4,875 | ) | $ | 396,122 | ||||||||||
Tenant reimbursements | — | — | 39,766 | 53,646 | — | 93,412 | |||||||||||||||||
Hotel income | — | — | — | 19,819 | — | 19,819 | |||||||||||||||||
Other property income | — | 184 | 324 | 1,471 | (818 | ) | 1,161 | ||||||||||||||||
— | 184 | 262,757 | 253,266 | (5,693 | ) | 510,514 | |||||||||||||||||
Expenses: | |||||||||||||||||||||||
Property operating costs | — | — | 66,426 | 85,717 | (634 | ) | 151,509 | ||||||||||||||||
Hotel operating costs | — | — | — | 21,910 | (4,875 | ) | 17,035 | ||||||||||||||||
Asset and property management fees: | |||||||||||||||||||||||
Related-party | 26,831 | — | 1,407 | 2,916 | (184 | ) | 30,970 | ||||||||||||||||
Other | — | — | 2,027 | 1,218 | — | 3,245 | |||||||||||||||||
Depreciation | — | — | 50,199 | 42,414 | — | 92,613 | |||||||||||||||||
Amortization | — | — | 53,305 | 50,232 | — | 103,537 | |||||||||||||||||
General and administrative | 75 | 20,834 | 925 | 1,382 | — | 23,216 | |||||||||||||||||
Acquisition fees and expenses | 9,670 | — | 206 | 903 | — | 10,779 | |||||||||||||||||
36,576 | 20,834 | 174,495 | 206,692 | (5,693 | ) | 432,904 | |||||||||||||||||
Real estate operating (loss) income | (36,576 | ) | (20,650 | ) | 88,262 | 46,574 | — | 77,610 | |||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Interest expense | — | (5,456 | ) | (47,649 | ) | (44,606 | ) | 15,673 | (82,038 | ) | |||||||||||||
Interest and other income | 1,116 | 15,721 | 29,236 | 12,683 | (15,673 | ) | 43,083 | ||||||||||||||||
Loss on interest rate swaps | — | — | — | (19,061 | ) | — | (19,061 | ) | |||||||||||||||
Income (loss) from equity investment | 58,726 | 58,906 | — | — | (117,632 | ) | — | ||||||||||||||||
59,842 | 69,171 | (18,413 | ) | (50,984 | ) | (117,632 | ) | (58,016 | ) | ||||||||||||||
Income (loss) before income tax (expense) benefit | 23,266 | 48,521 | 69,849 | (4,410 | ) | (117,632 | ) | 19,594 | |||||||||||||||
Income tax (expense) benefit | — | — | (230 | ) | 456 | — | 226 | ||||||||||||||||
Income (loss) from continuing operations | 23,266 | 48,521 | 69,619 | (3,954 | ) | (117,632 | ) | 19,820 | |||||||||||||||
Discontinued operations: | |||||||||||||||||||||||
Operating income from discontinued operations | — | — | 2,769 | 912 | — | 3,681 | |||||||||||||||||
Loss on disposition of discontinued operations | — | — | — | (161 | ) | — | (161 | ) | |||||||||||||||
Income from discontinued operations | — | — | 2,769 | 751 | — | 3,520 | |||||||||||||||||
Net income (loss) | 23,266 | 48,521 | 72,388 | (3,203 | ) | (117,632 | ) | 23,340 | |||||||||||||||
Less: net income attributable to noncontrolling interests | — | (1 | ) | — | (73 | ) | — | (74 | ) | ||||||||||||||
Net income (loss) attributable to the common stockholders of Columbia Property Trust, Inc. | $ | 23,266 | $ | 48,520 | $ | 72,388 | $ | (3,276 | ) | $ | (117,632 | ) | $ | 23,266 |
For the year ended December 31, 2012 | |||||||||||||||||||||||
Columbia Property Trust (Parent) | Columbia Property Trust OP (the Issuer) | Guarantors | Non- Guarantors | Consolidating Adjustments | Columbia Property Trust (Consolidated) | ||||||||||||||||||
Net income (loss) attributable to the common stockholders of Columbia Property Trust, Inc. | $ | 48,039 | $ | 58,022 | $ | 82,746 | $ | 24,112 | $ | (164,880 | ) | $ | 48,039 | ||||||||||
Market value adjustment to interest rate swap | (5,305 | ) | (5,305 | ) | — | — | 5,305 | (5,305 | ) | ||||||||||||||
Comprehensive income (loss) attributable to the common stockholders of Columbia Property Trust, Inc. | 42,734 | 52,717 | 82,746 | 24,112 | (159,575 | ) | 42,734 | ||||||||||||||||
Comprehensive income attributable to noncontrolling interests | — | — | — | 4 | — | 4 | |||||||||||||||||
Comprehensive income (loss) | $ | 42,734 | $ | 52,717 | $ | 82,746 | $ | 24,116 | $ | (159,575 | ) | $ | 42,738 |
For the year ended December 31, 2011 | |||||||||||||||||||||||
Columbia Property Trust (Parent) | Columbia Property Trust OP (the Issuer) | Guarantors | Non- Guarantors | Consolidating Adjustments | Columbia Property Trust (Consolidated) | ||||||||||||||||||
Net income (loss) attributable to the common stockholders of Columbia Property Trust, Inc. | $ | 56,642 | $ | 89,767 | $ | 80,464 | $ | 33,388 | $ | (203,619 | ) | $ | 56,642 | ||||||||||
Market value adjustment to interest rate swap | 11,223 | — | — | 11,223 | (11,223 | ) | 11,223 | ||||||||||||||||
Comprehensive income (loss) attributable to the common stockholders of Columbia Property Trust, Inc. | 67,865 | 89,767 | 80,464 | 44,611 | (214,842 | ) | 67,865 | ||||||||||||||||
Comprehensive income attributable to noncontrolling interests | — | — | — | 14 | — | 14 | |||||||||||||||||
Comprehensive income (loss) | $ | 67,865 | $ | 89,767 | $ | 80,464 | $ | 44,625 | $ | (214,842 | ) | $ | 67,879 |
For the year ended December 31, 2010 | |||||||||||||||||||||||
Columbia Property Trust (Parent) | Columbia Property Trust OP (the Issuer) | Guarantors | Non- Guarantors | Consolidating Adjustments | Columbia Property Trust (Consolidated) | ||||||||||||||||||
Net income (loss) attributable to the common stockholders of Columbia Property Trust, Inc. | $ | 23,266 | $ | 48,520 | $ | 72,388 | $ | (3,276 | ) | $ | (117,632 | ) | $ | 23,266 | |||||||||
Market value adjustment to interest rate swap | (3,110 | ) | — | — | (3,110 | ) | 3,110 | (3,110 | ) | ||||||||||||||
Comprehensive income (loss) attributable to the common stockholders of Columbia Property Trust, Inc. | 20,156 | 48,520 | 72,388 | (6,386 | ) | (114,522 | ) | 20,156 | |||||||||||||||
Comprehensive income attributable to noncontrolling interests | — | 1 | — | 73 | — | 74 | |||||||||||||||||
Comprehensive income (loss) | $ | 20,156 | $ | 48,521 | $ | 72,388 | $ | (6,313 | ) | $ | (114,522 | ) | $ | 20,230 |
For the year ended December 31, 2012 | |||||||||||||||||||
Columbia Property Trust (Parent) | Columbia Property Trust OP (the Issuer) | Guarantors | Non- Guarantors | Columbia Property Trust (Consolidated) | |||||||||||||||
Cash flows from operating activities: | $ | (49 | ) | $ | (83,489 | ) | $ | 191,117 | $ | 145,260 | $ | 252,839 | |||||||
Cash flows from investing activities: | |||||||||||||||||||
Net proceeds from sale of real estate | 30,441 | 273,823 | — | — | 304,264 | ||||||||||||||
Investment in real estate and related assets | — | (193,410 | ) | (33,488 | ) | (46,319 | ) | (273,217 | ) | ||||||||||
Net cash provided by (used in) investing activities | 30,441 | 80,413 | (33,488 | ) | (46,319 | ) | 31,047 | ||||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Borrowings, net of fees | — | 595,731 | — | (929 | ) | 594,802 | |||||||||||||
Repayments | — | (591,000 | ) | — | (36,191 | ) | (627,191 | ) | |||||||||||
Issuance of common stock, net of redemptions and fees | 18,996 | — | — | — | 18,996 | ||||||||||||||
Distributions | (256,020 | ) | — | — | (15 | ) | (256,035 | ) | |||||||||||
Intercompany transfers, net | 216,255 | (7,430 | ) | (153,089 | ) | (55,736 | ) | — | |||||||||||
Redemption of noncontrolling interest | — | — | — | (301 | ) | (301 | ) | ||||||||||||
Net cash used in financing activities | (20,769 | ) | (2,699 | ) | (153,089 | ) | (93,172 | ) | (269,729 | ) | |||||||||
Net increase (decrease) in cash and cash equivalents | 9,623 | (5,775 | ) | 4,540 | 5,769 | 14,157 | |||||||||||||
Effect of foreign exchange rate on cash and cash equivalents | — | — | — | 32 | 32 | ||||||||||||||
Cash and cash equivalents, beginning of period | 11,291 | 10,597 | 9,133 | 8,447 | 39,468 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 20,914 | $ | 4,822 | $ | 13,673 | $ | 14,248 | $ | 53,657 |
For the year ended December 31, 2011 | |||||||||||||||||||
Columbia Property Trust (Parent) | Columbia Property Trust OP (the Issuer) | Guarantors | Non- Guarantors | Columbia Property Trust (Consolidated) | |||||||||||||||
Cash flows from operating activities: | $ | 508 | $ | (78,219 | ) | $ | 207,710 | $ | 149,159 | $ | 279,158 | ||||||||
Cash flows from investing activities: | |||||||||||||||||||
Investment in real estate and related assets | (606,116 | ) | — | (19,588 | ) | (40,386 | ) | (666,090 | ) | ||||||||||
Net cash used in investing activities | (606,116 | ) | — | (19,588 | ) | (40,386 | ) | (666,090 | ) | ||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Borrowings, net of fees | — | 1,454,978 | — | 324,364 | 1,779,342 | ||||||||||||||
Repayments | — | (806,500 | ) | (63,396 | ) | (298,382 | ) | (1,168,278 | ) | ||||||||||
Issuance of common stock, net of redemptions and fees | 47,397 | — | — | — | 47,397 | ||||||||||||||
Distributions | (270,720 | ) | — | — | (44 | ) | (270,764 | ) | |||||||||||
Intercompany transfers | 831,941 | (570,649 | ) | (125,681 | ) | (135,611 | ) | — | |||||||||||
Redemptions of noncontrolling interest | — | (87 | ) | — | — | (87 | ) | ||||||||||||
Net cash provided by (used in) financing activities | 608,618 | 77,742 | (189,077 | ) | (109,673 | ) | 387,610 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 3,010 | (477 | ) | (955 | ) | (900 | ) | 678 | |||||||||||
Effect of foreign exchange rate on cash and cash equivalents | — | — | — | (92 | ) | (92 | ) | ||||||||||||
Cash and cash equivalents, beginning of period | 8,281 | 11,074 | 10,088 | 9,439 | 38,882 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 11,291 | $ | 10,597 | $ | 9,133 | $ | 8,447 | $ | 39,468 |
For the year ended December 31, 2010 | |||||||||||||||||||
Columbia Property Trust (Parent) | Columbia Property Trust OP (the Issuer) | Guarantors | Non- Guarantors | Columbia Property Trust (Consolidated) | |||||||||||||||
Cash flows from operating activities: | $ | (9,745 | ) | $ | (47,814 | ) | $ | 191,570 | $ | 136,095 | $ | 270,106 | |||||||
Cash flows from investing activities: | |||||||||||||||||||
Net proceeds from the sale of real estate | 15,219 | — | — | — | 15,219 | ||||||||||||||
Investment in real estate and related assets | (11,632 | ) | (286,727 | ) | (11,852 | ) | (17,716 | ) | (327,927 | ) | |||||||||
Net cash provided by (used in) investing activities | 3,587 | (286,727 | ) | (11,852 | ) | (17,716 | ) | (312,708 | ) | ||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Borrowings, net of fees | — | 80,662 | — | — | 80,662 | ||||||||||||||
Repayments | — | (16,000 | ) | (90,000 | ) | (56,742 | ) | (162,742 | ) | ||||||||||
Issuance of common stock, net of redemptions and fees | 375,716 | — | — | — | 375,716 | ||||||||||||||
Distributions | (313,815 | ) | — | — | (250 | ) | (314,065 | ) | |||||||||||
Intercompany transfers | (108,381 | ) | 256,712 | (89,187 | ) | (59,144 | ) | — | |||||||||||
Redemptions of noncontrolling interest | — | — | — | — | — | ||||||||||||||
Net cash provided by (used in) financing activities | (46,480 | ) | 321,374 | (179,187 | ) | (116,136 | ) | (20,429 | ) | ||||||||||
Net increase (decrease) in cash and cash equivalents | (52,638 | ) | (13,167 | ) | 531 | 2,243 | (63,031 | ) | |||||||||||
Effect of foreign exchange rate on cash and cash equivalents | — | — | — | (812 | ) | (812 | ) | ||||||||||||
Cash and cash equivalents, beginning of period | 60,919 | 24,241 | 9,557 | 8,008 | 102,725 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 8,281 | $ | 11,074 | $ | 10,088 | $ | 9,439 | $ | 38,882 |
15. | Subsequent Event |
• | Effective February 28, 2013, Douglas P. Williams resigned as an executive officer of the company, including his positions as Executive Vice President, Secretary, Treasurer, and Principal Financial Officer. Mr. Williams also indicated that, for personal reasons, he would not stand for re-election as a director. Mr. Williams informed us of these decisions on February 25, 2013. Mr. Williams will remain an executive officer of WREF. |
• | Effective February 28, 2013, the board of directors unanimously appointed Wendy W. Gill as an executive officer to succeed Mr. Williams as the company's Treasurer and Principal Accounting Officer, and to serve as the company's interim Principal |
Gross Amount at Which Carried at December 31, 2012 | Life on Which Depreciation and Amortization is Computed (f) | |||||||||||||||||||||||||||||||||||||||||||||
Initial Costs | ||||||||||||||||||||||||||||||||||||||||||||||
Description | Location | Ownership Percentage | Encumbrances | Land | Buildings and Improvements | Total | Costs Capitalized Subsequent to Acquisition | Land | Buildings and Improvements | Total | Accumulated Depreciation and Amortization | Date of Construction | Date Acquired | |||||||||||||||||||||||||||||||||
WEATHERFORD CENTER HOUSTON | Houston, TX | 100 | % | None | $ | 6,100 | $ | 28,905 | $ | 35,005 | $ | (1,460 | ) | $ | 6,241 | $ | 27,304 | $ | 33,545 | $ | 5,539 | 1980 | 2/10/2004 | 0 to 40 years | ||||||||||||||||||||||
333 & 777 REPUBLIC DRIVE | Allen Park, MI | 100 | % | None | 4,400 | 12,716 | 17,116 | (781 | ) | 4,502 | 11,833 | 16,335 | 2,876 | 2000 | 3/31/2004 | 0 to 40 years | ||||||||||||||||||||||||||||||
9 TECHNOLOGY DRIVE | Westborough, MA | 100 | % | None | 5,570 | 38,218 | 43,788 | (5,229 | ) | 5,627 | 32,932 | 38,559 | 8,504 | 1987 | 5/27/2004 | 0 to 40 years | ||||||||||||||||||||||||||||||
180 PARK AVENUE | Florham Park, NJ | 100 | % | None | 10,802 | 62,595 | 73,397 | 2,267 | 11,050 | 64,614 | 75,664 | 33,886 | 1982 | 6/23/2004 | 0 to 40 years | |||||||||||||||||||||||||||||||
ONE GLENLAKE PARKWAY | Atlanta, GA | 100 | % | 37,204 | 5,846 | 66,681 | 72,527 | (120 | ) | 5,934 | 66,473 | 72,407 | 20,304 | 2003 | 6/25/2004 | 0 to 40 years | ||||||||||||||||||||||||||||||
80 M STREET | Washington, DC | 100 | % | None | 26,248 | 76,269 | 102,517 | (5,992 | ) | 26,806 | 69,719 | 96,525 | 19,596 | 2001 | 6/29/2004 | 0 to 40 years | ||||||||||||||||||||||||||||||
3333 FINLEY ROAD | Downers Grove, IL | 100 | % | None | 6,925 | 34,575 | 41,500 | 630 | 7,015 | 35,115 | 42,130 | 8,383 | 1999 | 8/4/2004 | 0 to 40 years | |||||||||||||||||||||||||||||||
1501 OPUS PLACE | Downers Grove, IL | 100 | % | None | 3,579 | 17,220 | 20,799 | 328 | 3,625 | 17,502 | 21,127 | 4,213 | 1988 | 8/4/2004 | 0 to 40 years | |||||||||||||||||||||||||||||||
2500 WINDY RIDGE PARKWAY | Atlanta, GA | 100 | % | 32,000 | 7,410 | 60,601 | 68,011 | 1,667 | 7,485 | 62,193 | 69,678 | 14,627 | 1985 | 9/20/2004 | 0 to 40 years | |||||||||||||||||||||||||||||||
4100 - 4300 WILDWOOD PARKWAY | Atlanta, GA | 100 | % | 25,000 | 13,761 | 31,785 | 45,546 | (1,086 | ) | 13,898 | 30,562 | 44,460 | 7,513 | 1996 | 9/20/2004 | 0 to 40 years | ||||||||||||||||||||||||||||||
4200 WILDWOOD PARKWAY | Atlanta, GA | 100 | % | 33,000 | 8,472 | 44,221 | 52,693 | (697 | ) | 8,546 | 43,450 | 51,996 | 12,766 | 1998 | 9/20/2004 | 0 to 40 years | ||||||||||||||||||||||||||||||
800 NORTH FREDERICK | Gaithersburg, MD | 100 | % | None | 22,758 | 43,174 | 65,932 | 582 | 20,195 | 46,319 | 66,514 | 16,309 | 1986 | 10/22/2004 | 0 to 40 years | |||||||||||||||||||||||||||||||
THE CORRIDORS III | Downers Grove, IL | 100 | % | None | 2,524 | 35,016 | 37,540 | (1,761 | ) | 2,558 | 33,221 | 35,779 | 9,216 | 2001 | 11/1/2004 | 0 to 40 years | ||||||||||||||||||||||||||||||
HIGHLAND LANDMARK III | Downers Grove, IL | 100 | % | None | 3,028 | 47,454 | 50,482 | (3,594 | ) | 3,055 | 43,833 | 46,888 | 11,813 | 2000 | 12/27/2004 | 0 to 40 years | ||||||||||||||||||||||||||||||
180 PARK AVENUE 105 | Florham Park, NJ | 100 | % | None | 4,501 | 47,957 | 52,458 | (8,200 | ) | 4,501 | 39,757 | 44,258 | 9,044 | 2001 | 3/14/2005 | 0 to 40 years | ||||||||||||||||||||||||||||||
4241 IRWIN SIMPSON | Mason, OH | 100 | % | None | 1,270 | 28,688 | 29,958 | 719 | 1,299 | 29,378 | 30,677 | 6,887 | 1997 | 3/17/2005 | 0 to 40 years | |||||||||||||||||||||||||||||||
8990 DUKE ROAD | Mason, OH | 100 | % | None | 520 | 8,681 | 9,201 | 193 | 522 | 8,872 | 9,394 | 2,394 | 2001 | 3/17/2005 | 0 to 40 years | |||||||||||||||||||||||||||||||
215 DIEHL ROAD | Naperville, IL | 100 | % | 21,000 | 3,452 | 17,456 | 20,908 | 2,941 | 3,472 | 20,377 | 23,849 | 6,702 | 1988 | 4/19/2005 | 0 to 40 years | |||||||||||||||||||||||||||||||
100 EAST PRATT | Baltimore, MD | 100 | % | 105,000 | 31,234 | 140,217 | 171,451 | 30,344 | 31,777 | 170,018 | 201,795 | 47,429 | 1975/1991 | 5/12/2005 | 0 to 40 years | |||||||||||||||||||||||||||||||
COLLEGE PARK PLAZA | Indianapolis, IN | 100 | % | None | 2,822 | 22,910 | 25,732 | (1,401 | ) | 2,822 | 21,509 | 24,331 | 7,106 | 1998 | 6/21/2005 | 0 to 40 years | ||||||||||||||||||||||||||||||
ONE ROBBINS ROAD | Westford, MA | 100 | % | None | 5,391 | 33,788 | 39,179 | 19 | 5,391 | 33,807 | 39,198 | 8,648 | 1981 | 8/18/2005 | 0 to 40 years | |||||||||||||||||||||||||||||||
FOUR ROBBINS ROAD | Westford, MA | 100 | % | None | 2,950 | 32,544 | 35,494 | — | 2,950 | 32,544 | 35,494 | 12,992 | 2001 | 8/18/2005 | 0 to 40 years | |||||||||||||||||||||||||||||||
1900 UNIVERSITY CIRCLE | East Palo Alto, CA | 100 | % | None | 8,722 | 107,730 | 116,452 | (25,215 | ) | 8,803 | 82,434 | 91,237 | 16,176 | 2001 | 9/20/2005 | 0 to 40 years |
Columbia Property Trust, Inc. Schedule III - Real Estate Assets and Accumulated Depreciation and Amortization December 31, 2012 (in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
Gross Amount at Which Carried at December 31, 2012 | Life on Which Depreciation and Amortization is Computed (f) | |||||||||||||||||||||||||||||||||||||||||||||
Initial Costs | ||||||||||||||||||||||||||||||||||||||||||||||
Description | Location | Ownership Percentage | Encumbrances | Land | Buildings and Improvements | Total | Costs Capitalized Subsequent to Acquisition | Land | Buildings and Improvements | Total | Accumulated Depreciation and Amortization | Date of Construction | Date Acquired | |||||||||||||||||||||||||||||||||
1950 UNIVERSITY CIRCLE | East Palo Alto, CA | 100 | % | None | 10,040 | 93,716 | 103,756 | 1,374 | 10,134 | 94,996 | 105,130 | 18,378 | 2002 | 9/20/2005 | 0 to 40 years | |||||||||||||||||||||||||||||||
2000 UNIVERSITY CIRCLE | East Palo Alto, CA | 100 | % | None | 8,731 | 76,842 | 85,573 | 600 | 8,819 | 77,354 | 86,173 | 16,112 | 2003 | 9/20/2005 | 0 to 40 years | |||||||||||||||||||||||||||||||
MACARTHUR RIDGE | Irving, TX | 100 | % | None | 2,680 | 42,269 | 44,949 | 1,078 | 2,680 | 43,347 | 46,027 | 6,381 | 1998 | 11/15/2005 | 0 to 40 years | |||||||||||||||||||||||||||||||
5 HOUSTON CENTER | Houston, TX | 100 | % | None | 8,186 | 147,653 | 155,839 | (19,711 | ) | 8,186 | 127,942 | 136,128 | 34,698 | 2002 | 12/20/2005 | 0 to 40 years | ||||||||||||||||||||||||||||||
KEY CENTER TOWER | Cleveland, OH | 100 | % | None | (b) | 7,269 | 244,424 | 251,693 | 12,790 | 7,454 | 257,029 | 264,483 | 69,038 | 1991 | 12/22/2005 | 0 to 40 years | ||||||||||||||||||||||||||||||
KEY CENTER MARRIOTT | Cleveland, OH | 100 | % | None | 3,473 | 34,458 | 37,931 | 10,797 | 3,629 | 45,099 | 48,728 | 13,022 | 1991 | 12/22/2005 | 0 to 40 years | |||||||||||||||||||||||||||||||
ONE SANTAN CORPORATE CENTER | Chandler, AZ | 100 | % | 18,000 | 4,871 | 24,669 | 29,540 | (1,496 | ) | 4,948 | 23,096 | 28,044 | 5,219 | 2000 | 4/18/2006 | 0 to 40 years | ||||||||||||||||||||||||||||||
TWO SANTAN CORPORATE CENTER | Chandler, AZ | 100 | % | 21,000 | 3,174 | 21,613 | 24,787 | (1,752 | ) | 3,245 | 19,790 | 23,035 | 3,611 | 2003 | 4/18/2006 | 0 to 40 years | ||||||||||||||||||||||||||||||
263 SHUMAN BOULEVARD | Naperville, IL | 100 | % | 49,000 | 7,142 | 41,535 | 48,677 | 6,890 | 7,233 | 48,334 | 55,567 | 14,717 | 1986 | 7/20/2006 | 0 to 40 years | |||||||||||||||||||||||||||||||
4300 CENTREWAY PLACE | Arlington, TX | 100 | % | None | 2,539 | 13,919 | 16,458 | (2,754 | ) | 2,557 | 11,147 | 13,704 | 2,338 | 1998 | 9/15/2006 | 0 to 40 years | ||||||||||||||||||||||||||||||
80 PARK PLAZA | Newark, NJ | 100 | % | None | 31,766 | 109,952 | 141,718 | 6,333 | 32,221 | 115,830 | 148,051 | 39,607 | 1979 | 9/21/2006 | 0 to 40 years | |||||||||||||||||||||||||||||||
INTERNATIONAL FINANCIAL TOWER | Jersey City, NJ | 100 | % | None | 29,061 | 141,544 | 170,605 | 13,674 | 29,712 | 154,567 | 184,279 | 39,035 | 1989 | 10/31/2006 | 0 to 40 years | |||||||||||||||||||||||||||||||
STERLING COMMERCE | Irving, TX | 100 | % | None | 8,639 | 43,980 | 52,619 | 403 | 8,752 | 44,270 | 53,022 | 17,989 | 1999 | 12/21/2006 | 0 to 40 years | |||||||||||||||||||||||||||||||
ONE CENTURY PLACE | Nashville, TN | 100 | % | None | 8,955 | 58,339 | 67,294 | (7,582 | ) | 9,106 | 50,606 | 59,712 | 9,510 | 1991 | 1/4/2007 | 0 to 40 years | ||||||||||||||||||||||||||||||
120 EAGLE ROCK | East Hanover, NJ | 100 | % | None | 2,726 | 30,078 | 32,804 | (5,399 | ) | 2,762 | 24,643 | 27,405 | 3,662 | 1990 | 3/27/2007 | 0 to 40 years | ||||||||||||||||||||||||||||||
PASADENA CORPORATE PARK | Pasadena, CA | 100 | % | None | 53,099 | 59,630 | 112,729 | 756 | 53,099 | 60,386 | 113,485 | 9,615 | 1965/2000/ 2002/2003 | 7/11/2007 | 0 to 40 years | |||||||||||||||||||||||||||||||
7031 COLUMBIA GATEWAY DRIVE | Columbia, MD | 100 | % | None | 10,232 | 54,070 | 64,302 | 35 | 10,232 | 54,105 | 64,337 | 11,542 | 2000 | 7/12/2007 | 0 to 40 years | |||||||||||||||||||||||||||||||
222 EAST 41ST STREET | New York City, NY | 100 | % | None | (b) | — | 324,520 | 324,520 | (1,034 | ) | — | 323,486 | 323,486 | 54,355 | 2001 | 8/17/2007 | 0 to 40 years | |||||||||||||||||||||||||||||
BANNOCKBURN LAKE III | Bannockburn, IL | 100 | % | None | 7,635 | 11,002 | 18,637 | (1,879 | ) | 7,663 | 9,095 | 16,758 | 1,115 | 1987 | 9/10/2007 | 0 to 40 years | ||||||||||||||||||||||||||||||
1200 MORRIS DRIVE | Wayne, PA | 100 | % | None | 3,723 | 20,597 | 24,320 | 5,377 | 3,786 | 25,911 | 29,697 | 6,330 | 1985 | 9/14/2007 | 0 to 40 years | |||||||||||||||||||||||||||||||
SOUTH JAMAICA STREET | Englewood, CO | 100 | % | None | 13,429 | 109,781 | 123,210 | 3,252 | 13,735 | 112,727 | 126,462 | 23,693 | 2002/2003/ 2007 | 9/26/2007 | 0 to 40 years | |||||||||||||||||||||||||||||||
15815 25TH AVENUE WEST | Lynnwood, WA | 100 | % | None | 3,896 | 17,144 | 21,040 | 462 | 3,965 | 17,537 | 21,502 | 3,051 | 2007 | 11/5/2007 | 0 to 40 years | |||||||||||||||||||||||||||||||
16201 25TH AVENUE WEST | Lynnwood, WA | 100 | % | None | 2,035 | 9,262 | 11,297 | 216 | 2,071 | 9,442 | 11,513 | 1,218 | 2007 | 11/5/2007 | 0 to 40 years | |||||||||||||||||||||||||||||||
13655 RIVERPORT DRIVE | St. Louis, MO | 100 | % | None | 6,138 | 19,105 | 25,243 | 8 | 6,138 | 19,113 | 25,251 | 3,617 | 1998 | 2/1/2008 | 0 to 40 years | |||||||||||||||||||||||||||||||
11200 WEST PARKLAND AVENUE | Milwaukee, WI | 100 | % | None | 3,219 | 15,394 | 18,613 | 2,556 | 3,219 | 17,950 | 21,169 | 4,293 | 1990 | 3/3/2008 | 0 to 40 years | |||||||||||||||||||||||||||||||
LENOX PARK BUILDINGS | Atlanta, GA | 100 | % | 216,000 | (a) | 28,478 | 225,067 | 253,545 | 4,224 | 28,858 | 228,911 | 257,769 | 34,031 | 1992/1999/ 2001/2002 | 5/8/2008 | 0 to 40 years |
Columbia Property Trust, Inc. Schedule III - Real Estate Assets and Accumulated Depreciation and Amortization December 31, 2012 (in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
Gross Amount at Which Carried at December 31, 2012 | Life on Which Depreciation and Amortization is Computed (f) | |||||||||||||||||||||||||||||||||||||||||||||
Initial Costs | ||||||||||||||||||||||||||||||||||||||||||||||
Description | Location | Ownership Percentage | Encumbrances | Land | Buildings and Improvements | Total | Costs Capitalized Subsequent to Acquisition | Land | Buildings and Improvements | Total | Accumulated Depreciation and Amortization | Date of Construction | Date Acquired | |||||||||||||||||||||||||||||||||
LINDBERGH CENTER | Atlanta, GA | 100 | % | (b) | 250,000 | (b), (c) | — | 262,468 | 262,468 | 3,252 | — | 265,720 | 265,720 | 36,665 | 2002 | 7/1/2008 | 0 to 40 years | |||||||||||||||||||||||||||||
THREE GLENLAKE BUILDING | Sandy Springs, GA | 100 | % | 26,264/ 120,000 | (d) | 7,517 | 88,784 | 96,301 | 891 | 8,055 | 89,137 | 97,192 | 13,062 | 2008 | 7/31/2008 | 0 to 40 years | ||||||||||||||||||||||||||||||
1580 WEST NURSERY ROAD | Linthicum, MD | 100 | % | None | 11,410 | 78,988 | 90,398 | 1,212 | 11,745 | 79,865 | 91,610 | 13,874 | 1992 | 9/5/2008 | 0 to 40 years | |||||||||||||||||||||||||||||||
DVINTSEV BUSINESS CENTER -- TOWER B | Moscow, Russia | 100 | % | (a) | None | (b) | — | 66,387 | 66,387 | (6,174 | ) | — | 60,213 | 60,213 | 5,764 | 2009 | 5/29/2009 | 0 to 40 years | ||||||||||||||||||||||||||||
STERLING COMMERCE CENTER | Columbus, OH | 100 | % | None | 1,793 | 31,501 | 33,294 | 2,893 | 1,793 | 34,394 | 36,187 | 3,979 | 1990/1995/ 1996/1998 | 3/8/2010 | 0 to 40 years | |||||||||||||||||||||||||||||||
550 KING STREET BUILDINGS | Boston, MA | 100 | % | None | 8,632 | 74,625 | 83,257 | 7,975 | 8,632 | 82,600 | 91,232 | 11,036 | 1984 | 4/1/2010 | 0 to 40 years | |||||||||||||||||||||||||||||||
CRANBERRY WOODS DRIVE | Cranberry Township, PA | 100 | % | None | 15,512 | 173,062 | 188,574 | 1,210 | 15,512 | 174,272 | 189,784 | 17,591 | 2009/2010 | 6/1/2010 | 0 to 40 years | |||||||||||||||||||||||||||||||
HOUSTON ENERGY CENTER I | Houston, TX | 100 | % | None | 4,734 | 79,344 | 84,078 | 5,037 | 4,734 | 84,381 | 89,115 | 8,352 | 2008 | 6/28/2010 | 0 to 40 years | |||||||||||||||||||||||||||||||
SUNTRUST BUILDING | Orlando, FL | 100 | % | None | 1,222 | 20,402 | 21,624 | 938 | 1,222 | 21,340 | 22,562 | 2,250 | 1959 | 8/25/2010 | 0 to 40 years | |||||||||||||||||||||||||||||||
CHASE CENTER BUILDING | Columbus, OH | 100 | % | None | 5,148 | 24,743 | 29,891 | 2,804 | 5,148 | 27,547 | 32,695 | 2,861 | 1972/1982 | 10/21/2010 | 0 to 40 years | |||||||||||||||||||||||||||||||
MARKET SQUARE BUILDINGS | Washington, DC | 100 | % | 325,000 | 152,629 | 450,757 | 603,386 | 11,873 | 152,629 | 462,630 | 615,259 | 41,253 | 1990 | 3/7/2011 | 0 to 40 years | |||||||||||||||||||||||||||||||
544 LAKEVIEW | Vernon Hills, IL | 50 | % | (e) | 9,100 | 3,006 | 3,100 | 6,106 | 14 | 3,006 | 3,114 | 6,120 | 141 | 1994 | 4/1/2011 | 0 to 40 years | ||||||||||||||||||||||||||||||
333 MARKET STREET | San Francisco, CA | 100 | % | 206,500 | 114,483 | 292,840 | 407,323 | — | 114,483 | 292,840 | 407,323 | 246 | 1979 | 12/21/2012 | 0 to 40 years | |||||||||||||||||||||||||||||||
TOTAL REAL ESTATE ASSETS | $ | 785,507 | $ | 4,676,965 | $ | 5,462,472 | $ | 45,297 | $ | 789,237 | $ | 4,718,532 | $ | 5,507,769 | $ | 896,174 | ||||||||||||||||||||||||||||||
(a) | As a result of the acquisition of the Lenox Park Buildings, Columbia Property Trust acquired investments in bonds and certain obligations under capital leases in the amount of $216.0 million. |
(b) | Property is owned subject to a long-term ground lease. |
(c) | As a result of the acquisition of the Lindbergh Center Building, Columbia Property Trust acquired investments in bonds and certain obligations under capital leases in the amount of $250.0 million. |
(d) | As a result of the acquisition of the Three Glenlake Building, Columbia Property Trust acquired investments in bonds and certain obligations under capital leases in the amount of $120.0 million. |
(e) | Columbia Property Trust owns a 50% controlling interest in a consolidated joint venture that owns 100% of 544 Lakeview. |
(f) | Columbia Property Trust assets are depreciated or amortized using the straight-line method over the useful lives of the assets by class. Generally, tenant improvements are amortized over the shorter of economic life or lease term, lease intangibles are amortized over the respective lease term, building improvements are depreciated over 5-25 years, site improvements are depreciated over 15 years, and buildings are depreciated over 40 years. |
For the years ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
Real Estate: | |||||||||||
Balance at beginning of year | $ | 5,483,193 | $ | 4,999,902 | $ | 4,767,664 | |||||
Additions to/improvements of real estate | 453,541 | 676,230 | 297,023 | ||||||||
Sale/transfer of real estate | (328,804 | ) | (70,082 | ) | (18,143 | ) | |||||
Impairment of real estate | (18,467 | ) | (5,817 | ) | — | ||||||
Write-offs of building and tenant improvements | (301 | ) | (228 | ) | — | ||||||
Write-offs of intangible assets (1) | (1,311 | ) | (6,978 | ) | (52 | ) | |||||
Write-offs of fully depreciated assets | (80,082 | ) | (109,834 | ) | (46,590 | ) | |||||
Balance at end of the year | $ | 5,507,769 | $ | 5,483,193 | $ | 4,999,902 | |||||
Accumulated Depreciation and Amortization: | |||||||||||
Balance at beginning of year | $ | 867,975 | $ | 769,863 | $ | 635,080 | |||||
Depreciation and amortization expense | 181,155 | 225,139 | 184,155 | ||||||||
Sale/transfer of real estate | (71,654 | ) | (12,258 | ) | (2,763 | ) | |||||
Write-offs of tenant improvements | (196 | ) | (16 | ) | 25 | ||||||
Write-offs of intangible assets (1) | (1,024 | ) | (4,915 | ) | (44 | ) | |||||
Write-offs of fully depreciated assets | (80,082 | ) | (109,838 | ) | (46,590 | ) | |||||
Balance at end of the year | $ | 896,174 | $ | 867,975 | $ | 769,863 |
(1) | Consists of write-offs of intangible lease assets related to lease restructurings, amendments, and terminations. |
To the Board and to the Company: | Wells Real Estate Investment Trust II, Inc. | |
6200 The Corners Parkway, Suite 250 | ||
Norcross, Georgia 30092 | ||
To the Advisor: | Wells Real Estate Advisory Services II, LLC | |
6200 The Corners Parkway, Suite 250 | ||
Norcross, Georgia 30092 |
WELLS REAL ESTATE INVESTMENT TRUST II, INC. | ||||
By: | /s/ George W. Sands | |||
Name: | George W. Sands | |||
Title: | Authorized Signatory | |||
WELLS REAL ESTATE ADVISORY SERVICES II, LLC | ||||
By: | WELLS REAL ESTATE FUNDS, INC., its sole member | |||
By: | /s/ Robert M. McCullough | |||
Name: | Robert M. McCullough | |||
Title: | Corporate Chief Financial Officer | |||
The undersigned joins in this Advisory Agreement for the purposes set forth in Paragraph 30 hereof. | ||||
WELLS REAL ESTATE FUNDS, INC. | ||||
By: | /s/ Robert M. McCullough | |||
Name: | Robert M. McCullough | |||
Title: | Corporate Chief Financial Officer |
To the Board and to the Company: | Wells Real Estate Investment Trust II, Inc. | |
6200 The Corners Parkway, Suite 250 | ||
Norcross, Georgia 30092 | ||
To Wells REF: | Wells Real Estate Funds, Inc. | |
6200 The Corners Parkway, Suite 250 | ||
Norcross, Georgia 30092 |
WELLS REAL ESTATE INVESTMENT TRUST II, INC. | ||
By: | /s/ George W. Sands | |
Name: | George W. Sands | |
Title: | Authorized Signatory | |
WELLS REAL ESTATE FUNDS, INC. | ||
By: | /s/ Robert M. McCullough | |
Name: | Robert M. McCullough | |
Title: | Vice President |
To the Board and to the Company: | Wells Real Estate Investment Trust II, Inc. | |
6200 The Corners Parkway, Suite 250 | ||
Norcross, Georgia 30092 | ||
To the Advisor: | Wells Real Estate Advisory Services II, LLC | |
6200 The Corners Parkway, Suite 250 | ||
Norcross, Georgia 30092 |
By: | WELLS REAL ESTATE FUNDS, INC., its sole member |
To the Board and to the Company: | Wells Real Estate Investment Trust II, Inc. | |
6200 The Corners Parkway, Suite 250 | ||
Norcross, Georgia 30092 | ||
To Wells REF: | Wells Real Estate Funds | |
6200 The Corners Parkway, Suite 250 | ||
Norcross, Georgia 30092 |
If to Wells REF or Wells Management: Wells Real Estate Funds, Inc. 6200 The Corners Parkway Norcross, Georgia 30039 Attention: Robert M. McCullough | Copy to: Alston & Bird LLP 1201 West Peachtree Street Atlanta, Georgia 30309 Attention: Mark C. Kanaly |
If to WRES: c/o Wells Real Estate Funds, Inc. 6200 The Corners Parkway Norcross, Georgia 30039 Attention: Nelson Mills | Copy to: DLA Piper LLP (US) 4141 Parklake Avenue Suite 300 Raleigh, NC 27612-2350 Attention: Robert Bergdolt |
To the Company: | Wells Real Estate Investment Trust II, Inc. | |
6200 The Corners Parkway, Suite 250 | ||
Norcross, Georgia 30092 | ||
To Wells REF: | Wells Real Estate Funds, Inc. | |
6200 The Corners Parkway, Suite 250 | ||
Norcross, Georgia 30092 |
Transfer Agent Support Services | |
Task Description | Summary |
Inbound Investor Escalated Calls - REIT | Work with DST to establish escalation procedures for Inbound Investor Calls. Provide on-going resolution for escalated inquiries and coordinate with the Fund when needed. |
Inbound Rep Escalated Calls - REIT | Work with DST to establish escalation procedures for Inbound Rep Calls. Provide on-going resolution for escalated inquiries and coordinate with the Fund when needed. |
DST Vision - Support and approvals | Review and process the daily volume of inbound DSS requests related to DST Vision. Follow-up with Financial Representative, BD Employee or third party Financial Institution when necessary. |
DST FANMail - Support and approvals | Review and process the daily volume of inbound DSS requests related to DST FANMail. Follow-up with Financial Representative, BD Employee or third party Financial Institution when necessary. |
Escalated Service / Historical Research Issues - Call Center | Coordinate and execute historical research for Call Center items that come up for the period before DST began taking front line Investor and Rep calls. |
Quality Review / Reporting and Delivering Feedback | Review and provide feedback on a handful of recorded calls from the DST Call Center team on a bi-weekly basis. |
Interest Adjustments | Draft, review and approve interest adjustment requests that come in related to share impacting transactions. |
Client Services E-mail Inbox | Review and respond to the daily volume of inbound email inquiries from Investors, Reps and Third Party Financial Institutions. |
NIGO Resolution - REIT | Coordinate resolution on Not in Good Order items related to Financial transactions through outbound contacts to Investors, Reps and Third Party Financial Institutions. |
Written Inquiry Processing | Coordinate the processing of Written Inquiry requests from Investors, Reps and Third Party Financial Institutions. This includes reviewing each request and drafting or communicating the appropriate response within the specified timeframe as well as logging the requests for historical reporting purposes. |
Employee Training & Development and Corporate/Department Vision | Coordinate ongoing training for the Wells Client Services team on industry initiatives as well as product announcements. |
DST Call Center Training | Coordinate ongoing training for the DST Client Services team on industry initiatives as well as product announcements. |
Sales Support - Operational Communications and Initiatives | Coordinate educating the Sales team on Operational initiatives that will impact current and new investors as well as their Reps and BD's. |
Broker Dealer Back Office Relationship Management | Maintain and grow existing and new relationships with Key Broker Dealer contacts to facilitate existing business and help resolve day to day issues that come up. Relationships become critical when major product events occur that impact the Rep and BD community. |
Custodian Back Office Relationship Management | Maintain and grow existing and new relationships with Key Custodian contacts to facilitate existing business and help resolve day to day issues that come up. Relationships become critical when major product events occur that impact the Financial Institution community. |
Issuer Communications | Provide Business and Compliance review and approval on Operational and Issuer communication that are being sent to Investors and Reps. This also includes communications related to Sponsored IRA programs through State Street and Reliance |
Forms and Applications - Updates, Annual Review and Record Keeping | Coordinate the annual review and update process to ensure the forms used by Investors and Reps in the REIT products we support are accurate and as simple as possible. This includes working with Wells Marketing to make the updates and providing Business and Compliance sign-off. |
Forms and Applications - Updating Third Party Vendors | Ensure the most current product forms are provided and available on LaserApps, Quikforms, WellsAccess and DST Vision |
Statements - Inserts and Marketing Information | Responsible for Business review on all statement inserts. In some cases, also responsible for Compliance sign-off. |
WellsAccess - Look and Feel, Content - Updates | Responsible for the content, layout and information that is available to Reps and BD's via WellsAccess. Also, responsible for reviewing and approving all new Registration requests that are submitted for new users. |
Proxy - Vendor Relationship Management | Responsible for overseeing the Third Party Vendor that is contracted to help carryout and pass any Annual or Special proxies for the REIT products we support |
Proxy - Communication Coordination and Review | Includes coordinating the business and in some cases, Compliance sign-off for the following items: - Householding Mailing - Proxy Search Card Mailing - Proxy Mailing ( Typically includes Annual Report) - Catch-up Mailing - Reminder Mailings |
Proxy - Call Center Scripting and Training | Working with the Vendor to put together and get Business and Compliance sign-off on the script for the IVR, script to be used by the Vendor Call Center for solicitation purposes. This also includes providing Training to Vendor Call Center for more complicated proposals |
Proxy - Record Keeping | Keeping historical records of the Annual and Special Proxy mailing lists, various communications and voting files |
Proxy - Call Center Support | Wells Client Services team has helped solicit votes from the largest stockholders in various proxies to help achieve the required number of votes |
NIGO Letters - Look and Feel, Content - Updates | Responsible for ensuring the day to day Investor, Rep and Third Party communication for Not In Good Order processing is as clear and concise as possible. Also, responsible for the Compliance sign-off. |
DST FANWeb - Look and Feel - Updates | Responsible for confirming the content, disclosures and messaging is current and as accurate as possible |
Mail Room / Scanning | Responsible for opening, sorting and directing any Investor Account related mail is forwarded to the appropriate Transfer Agent for processing. |
Monitoring and Enforcing Work Queue and SLAs | Monitor DST to ensure timely and accurate processing of the daily work for the Fund including but not limited to using business intelligence tools and a battery of custom data quality reports |
Monthly Written Inquiry Reporting | Provide monthly reports to Wells Compliance to document that Written Inquiry responses are being turned around within the SEC guidelines |
Fund / Product Board Reporting - CS Information | Compile and validate data to put together performance indicators that are presented to the Board on a quarterly basis |
Tax Basis Requests - Current | Work with Wells IT to develop account level reports that provide the historical information an Investor would need to calculate their tax basis. |
Misc - Projects | Hours allocated for one-off projects and tasks that always come up through out the year |
Investor Communication Services | |
Task Description | Summary |
Custodian Distribution File Support - REITs | Using relationships at various custodian partners, create and maintain quarterly distribution files used to post dividends to investor accounts. |
Custodian Position File Support - REITs | Using relationships at various custodian partners, create and maintain monthly position files used to post account balances to investor accounts. |
Issuer Communications Mailing List Validations | Support the investor communication process by providing mailing list validation and approvals ensuring that accurate data is provided to the mail vendors |
Proxy Support | Provide validation support for proxy process including but not limited to: share counts and investor counts verification, mailing file validation Review all data pulled by Wells IT and Third Party Vendor to ensure the appropriate investor information is being populated |
CDLY - Look and Feel - Updates | Ensure daily confirmation statements (for ongoing account maintenance and re-registrations) contain current and accurate Fund information. |
Checks - Look and Feel - Updates | Ensure dividend and redemption checks contain current and accurate Fund information |
Tax Reporting - Look and Feel - Updates | Ensure year end tax forms contain current and accurate Fund information |
Monitoring and Enforcing Work Queue and SLAs | Monitor DST to ensure timely and accurate processing of the daily work for the Fund including but not limited to using business intelligence tools and a battery of custom data quality reports Daily activity includes account updates (Such as address changes, rep changes, etc.) transfers and re-registrations, redemptions, dividend check reissues, etc. Monthly activity averages around 3,000 - 4,000 transactions Several people play a role in this process that entails recurring conference calls to set priorities, manage projects, discuss system updates / implementations, etc. |
Quarterly Distribution - REITs - Oversight - Includes Ownership of the Statement | Oversee the quarterly statement and distribution process, including but not limited to: coordinating the successful transfer and quality control of statement data files from DST to SCICOM, validate the custom rep file that Wells sends as a supplement (this is needed for a number of reasons, most famous is to get the rep photo on the statement) updating disclosures, validating control totals, validating distribution calculations, reviewing statement samples, on-site vendor visits, etc. During the month leading up to the statement and for a few days after the statements are mailed, this process requires more than one FTE. |
Redemptions - Daily Oversight | Review pending redemptions entered by DST to ensure accuracy, research and resolve any errors |
Rep Maintenance - Daily Oversight | Research and resolve issues related to FA relationships to investor accounts |
Escalated Issue Resolution | Assist DST operations, Wells call center and DST call center in researching and resolving various service related issues for investor accounts |
National Change of Address (NCOA) | Oversee the quarterly NCOA process, provide certification to Wells compliance |
Requests for Information | Provide recurring custom monthly and quarterly assets under management reports to broker dealers, provide various ad-hoc reports to broker dealers for due diligence purposes. |
SEC / FINRA Audit Support | Provide ad-hoc reports to satisfy regulatory requests for specific investor information. These requests come both directly to Wells and through our broker dealers. |
Redemption Summary Reporting - Accounting / Boards / Doug | Including but not limited to - redemption accrual, redemptions by month and category, life to date redemptions by type |
Internal and Independent Audit Support | Produce documents used by internal audit to validate proper controls are in place. Example - quarterly distribution packets provided to internal audit |
Daily Fund Balancing and Reconciliation | Run daily reports used to create a schedule used to provide a sign-off to the Fund each month, research and resolve reconciling items for the Fund |
Redemptions - Monthly Balancing and Funding | Review pending redemptions entered by DST to ensure accuracy, research and resolve any errors, coordinate monthly balancing and funding with DST and the Fund |
DST Invoicing | Oversee vendor invoices, allocate expenses and provide to Fund, produce estimated budgets and projections |
SCICOM Invoicing | Oversee vendor invoices, allocate expenses and provide to Fund, produce estimated budgets and projections, postage request and funding |
Year End DST Tax Support | Oversee year-end tax processing - includes completing annual technical requirements, developing account test samples, providing reallocation numbers, providing training to staff on any tax form updates, coordinating year-end RMD and fair market value mailing |
Convert to Universal Dealer / SalesConnect | Conversion project in process to alter the source system of FA and BD information and to take advantage of DST's Universal Dealer Database and support team. This project also requires the redesign of many internal Wells systems such as integration with the datawarehouse (needed to continue to support many reporting requirements, etc.), WellsAccess and SalesForce, SCICOM statements, etc. The scope of this project is on par with the integration of Salesforce.com. I would estimate that close to 1,000 hours will have been used once the project is completed in Q1 2013. |
Misc - Projects | Hours allocated for one-off projects and tasks that always come up through out the year |
Transfer Agent Support Services and Investor Communication Services | |
Task Description | Summary |
Subpoena responses | Determine requirements, gather documents and prepare responses |
Tax Basis Requests - Future | Work with DST to implement a more automated solution that can be used distributed to Investors on demand or as part of an exit event |
Convert State Street IRAs to First Trust | Work with DST, marketing, compliance, etc. to coordinate the conversion of over 50,000 accounts to DST's new custodian vendor. Draft communication to interested parties Update all references to State Street in all print and electronic media |
Convert statement vendor from SCICOM to DSTO | Work with DST to design new statements for the Fund. The conversion project requires dedicated resources over at least a six month period. The resources design, test and implement all aspects of a statement conversion. |
Pre-listing activities for REIT II | The anticipated scope of a listing project will require over 1,000 hours from OPS / CS |
Transition workload from exiting staff | Several hundred hours have been used to work on transitioning tasks from exiting staff. The transitions have in many cases required the remaining staff to redesign processes in order to support the new organization structure. |
Implementation of A.I. Industry Initiatives | Work with Transfer Agent and Third Party Financial Institutions to participate in AIP initiative that is being rolled out via the DTCC. Timeframe and workload TBD. We expect that system changes, new procedures as well as internal and external communication and eduction will need to be developed tested and rolled out. |
1. | I have reviewed this quarterly report on Form 10-K of Columbia Property Trust, Inc. for the quarter ended December 31, 2012; |
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. |
Dated: | February 28, 2013 | By: | /s/ E. Nelson Mills |
E. Nelson Mills | |||
Principal Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Columbia Property Trust, Inc. for the quarter ended December 31, 2012; |
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. |
Dated: | February 28, 2013 | By: | /s/ Wendy W. Gill |
Wendy W. Gill | |||
Principal Financial Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
/s/ E. NELSON MILLS |
E. Nelson Mills Principal Executive Officer |
February 28, 2013 |
/s/ WENDY W. GILL |
Wendy W. Gill Principal Financial Officer |
February 28, 2013 |
Historical (a) | Self-Management Transactions | Pro Forma Total | ||||||||||
Assets: | ||||||||||||
Real estate assets, at cost: | ||||||||||||
Land | $ | 789,237 | $ | — | $ | 789,237 | ||||||
Buildings and improvements | 3,468,218 | — | 3,468,218 | |||||||||
Intangible lease assets | 341,460 | — | 341,460 | |||||||||
Construction in progress | 12,680 | — | 12,680 | |||||||||
Total real estate assets | 4,611,595 | — | 4,611,595 | |||||||||
Cash and cash equivalents | 53,657 | 2,860 | 56,517 | |||||||||
Tenant receivables | 134,099 | — | 134,099 | |||||||||
Prepaid expenses and other assets | 29,373 | 99 | (b) | |||||||||
1,980 | (c) | 31,452 | ||||||||||
Due from affiliates | — | 2,215 | (d) | |||||||||
(1,920 | ) | (e) | 295 | |||||||||
Deferred financing costs | 10,490 | — | 10,490 | |||||||||
Intangible lease origination costs | 206,927 | — | 206,927 | |||||||||
Deferred lease costs | 98,808 | — | 98,808 | |||||||||
Investment in development authority bonds | 586,000 | — | 586,000 | |||||||||
Total assets | $ | 5,730,949 | $ | 5,234 | $ | 5,736,183 | ||||||
Liabilities: | ||||||||||||
Line of credit and notes payable | $ | 1,401,618 | $ | — | $ | 1,401,618 | ||||||
Bonds payable | 248,678 | — | 248,678 | |||||||||
Accounts payable, accrued expenses, and accrued capital expenditures | 102,858 | 36,250 | (f) | |||||||||
1,364 | (g) | 140,472 | ||||||||||
Due to affiliates | 1,920 | (1,920 | ) | (e) | ||||||||
391 | (h) | 391 | ||||||||||
Deferred income | 28,071 | — | 28,071 | |||||||||
Intangible lease liabilities | 98,298 | — | 98,298 | |||||||||
Obligations under capital leases | 586,000 | — | 586,000 | |||||||||
Total liabilities | 2,467,443 | 36,085 | 2,503,528 | |||||||||
Commitments and Contingencies | — | |||||||||||
Redeemable Common Stock | 99,526 | — | 99,526 | |||||||||
Equity: | — | — | ||||||||||
Common stock | 5,476 | — | 5,476 | |||||||||
Additional paid-in capital | 4,897,782 | — | 4,897,782 | |||||||||
Cumulative distributions in excess of earnings | (1,634,531 | ) | (36,250 | ) | (f) | |||||||
1,980 | (c) | |||||||||||
3,419 | (i) | (1,665,382 | ) | |||||||||
Redeemable common stock | (99,526 | ) | — | (99,526 | ) | |||||||
Other comprehensive (loss) income | (5,221 | ) | — | (5,221 | ) | |||||||
Total Columbia Property Trust, Inc. stockholders' equity | 3,163,980 | (30,851 | ) | 3,133,129 | ||||||||
Nonredeemable noncontrolling interests | — | — | — | |||||||||
Total equity | 3,163,980 | (30,851 | ) | 3,133,129 | ||||||||
Total liabilities, redeemable common stock, and equity | $ | 5,730,949 | $ | 5,234 | $ | 5,736,183 | ||||||
(a) | Historical balances were extracted from the historical consolidated balance sheet as of December 31, 2012 of Columbia Property Trust, included herein on page F-3. | ||||
(b) | Reflects WREAS II's and WRES' prepaid 2013 operating expenses. | ||||
(c) | Reflects goodwill related to the in-place work force acquired in connection with the Self-Management Transactions, estimated based on the cost to assemble such workforce. | ||||
(d) | Reflects the amounts due to WREAS II and WRES from affiliated real estate funds, primarily related to asset management services provided by WREAS II and property management services provided by WRES. | ||||
(e) | Reflects the elimination of amounts due from/to Columbia Property Trust and WREAS II/WRES as of December 31, 2012, which is comprised of the following (in thousands): | ||||
Administrative reimbursements | $ | 1,360 | |||
Asset and property management fees | 560 | ||||
Total | $ | 1,920 | |||
(f) | Reflects fees incurred under the consulting services agreement ($30.50 million) and the transition services agreements ($5.75 million) upon executing the Self Management Transactions, which are payable monthly throughout 2013. | ||||
(g) | Reflects payroll accruals and administrative expenses owed to third-party vendors by WREAS II and WRES. | ||||
(h) | Reflects the administrative expenses owed by WREAS II and WRES to affiliated entities, primarily for operating expenses paid on WREAS II's and WRES' behalf by Wells Management or Wells Capital, Inc. | ||||
(i) | Reflects the balance of members' equity of WREAS II and WRES as of December 31, 2012. |
Historical (a) | Self-Management Transactions | Pro Forma Total | ||||||||||
Revenues: | ||||||||||||
Rental income | $ | 442,284 | $ | — | $ | 442,284 | ||||||
Tenant reimbursements | 104,863 | — | 104,863 | |||||||||
Hotel income | 23,049 | — | 23,049 | |||||||||
Other property income | 6,495 | 55,071 | (b) | |||||||||
(36,462 | ) | (c) | ||||||||||
(15,824 | ) | (d) | 9,280 | |||||||||
576,691 | 2,785 | 579,476 | ||||||||||
Expenses: | ||||||||||||
Property operating costs | 173,466 | — | 173,466 | |||||||||
Hotel operating costs | 18,362 | — | 18,362 | |||||||||
Asset and property management fees: | ||||||||||||
Related-party | 34,394 | (34,394 | ) | (c) | — | |||||||
Other | 2,826 | — | 2,826 | |||||||||
Depreciation | 114,107 | — | 114,107 | |||||||||
Amortization | 97,649 | — | 97,649 | |||||||||
Impairment loss on real estate assets | — | — | — | |||||||||
General and administrative | 25,163 | 24,190 | (e) | |||||||||
(15,824 | ) | (d) | ||||||||||
34,270 | (f) | |||||||||||
(1,311 | ) | (h) | ||||||||||
(126 | ) | (i) | 66,362 | |||||||||
Acquisition fees and expenses | 1,876 | (1,500 | ) | (j) | 376 | |||||||
467,843 | 5,305 | 473,148 | ||||||||||
Real estate operating income | 108,848 | (2,520 | ) | 106,328 | ||||||||
Other income (expense): | ||||||||||||
Interest expense | (106,391 | ) | — | (106,391 | ) | |||||||
Interest and other income | 39,871 | 2,941 | (g) | |||||||||
(1,311 | ) | (h) | ||||||||||
(126 | ) | (i) | ||||||||||
(1,500 | ) | (j) | 39,875 | |||||||||
Loss on interest rate swaps | (1,225 | ) | — | (1,225 | ) | |||||||
(67,745 | ) | 4 | (67,741 | ) | ||||||||
Income (loss) before income tax (expense) benefit | 41,103 | (2,516 | ) | 38,587 | ||||||||
Income tax (expense) benefit | (586 | ) | — | (586 | ) | |||||||
Income (loss) from continuing operations | 40,517 | (2,516 | ) | 38,001 | ||||||||
Discontinued operations: | ||||||||||||
Operating income (loss) from discontinued operations | (12,591 | ) | 2,068 | (c) | (10,523 | ) | ||||||
Gains on dispositions of discontinued operations | 20,117 | — | 20,117 | |||||||||
Income from discontinued operations | 7,526 | 2,068 | 9,594 | |||||||||
Net income (loss) | 48,043 | (448 | ) | 47,595 | ||||||||
Less: net income attributable to nonredeemable noncontrolling interests | (4 | ) | — | (4 | ) | |||||||
Net income (loss) attributable to the common stockholders of Wells Real Estate Investment Trust II, Inc. | $ | 48,039 | $ | (448 | ) | $ | 47,591 | |||||
(a) | Historical balances were extracted from the audited consolidated statements of operations as of December 31, 2012 of Columbia Property Trust included herein on page F-4. | ||
(b) | Reflects asset and property management fees, and salary and expense reimbursements earned by WREAS II and WRES during 2012. | ||
(c) | Reflects the elimination of asset and property management fees of $32.0 million and $4.5 million, respectively, incurred by Columbia Property Trust for services provided by WREAS II and WRES during 2012. Of the total fees incurred, $2.1 million relates to nine properties sold in December 2012 for $260.5 million, and is, therefore, included in operating income (loss) from discontinued operations. | ||
(d) | Reflects the elimination of salary and expense reimbursements incurred by Columbia Property Trust related to services provided by WREAS II and WRES during 2012. | ||
(e) | Reflects general and administrative costs incurred by WREAS II and WRES during 2012, primarily related to salaries and benefits and information technology costs. | ||
(f) | Reflects fees incurred under the consulting services agreement ($30.5 million) and the transition services agreements ($5.75 million) upon executing the Self Management Transactions, which are payable monthly throughout 2013. A portion of these fees ($1.98 million) was allocated to goodwill (which is included in prepaid and other assets on the balance sheet) based on the estimated value of the workforce acquired from WREAS II and WRES by Columbia Property Trust. | ||
(g) | Reflects the fees earned by WREAS II in connection with: (h) the sale of nine properties for $260.5 million in December 2012, (i) leasing space to Columbia Property Trust at WREF's corporate headquarters from July 2012 through December 2012, and (j) the acquisition of the 333 Market Street Building for $395.0 million in December 2012. | ||
(h) | Reflects the elimination of the disposition fees payable to WREAS II related to selling nine properties in December of 2012 for $260.5 million. | ||
(i) | Reflects the elimination of the $26,000 per month of rent payable to WREAS II in connection with leasing space at the WREF's corporate headquarters from July 2012 through December 2012. | ||
(j) | Reflects the elimination of the acquisition fees payable to WREAS II related to the acquisition of the 333 Market Street Building for $395.0 million in December 2012. |
December 31, | ||||||||
2012 | 2011 | |||||||
Assets: | ||||||||
Cash | $ | 2,860,285 | $ | 140,658 | ||||
Due from affiliates | 2,215,000 | 3,951,541 | ||||||
Prepaid expenses and other assets | 99,244 | 31,815 | ||||||
Total assets | $ | 5,174,529 | $ | 4,124,014 | ||||
Liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 1,364,148 | $ | 1,147,019 | ||||
Due to affiliates | 391,362 | 989,017 | ||||||
Total liabilities | 1,755,510 | 2,136,036 | ||||||
Commitments and contingencies | — | — | ||||||
Members' equity | 3,419,019 | 1,987,978 | ||||||
Total liabilities and members' equity | $ | 5,174,529 | $ | 4,124,014 | ||||
See accompanying notes. |
Years Ended December 31 | ||||||||
2012 | 2011 | |||||||
Revenues: | ||||||||
Asset management fees | $ | 32,000,000 | $ | 32,093,942 | ||||
Acquisition and advisory fees | 1,500,000 | 1,304,896 | ||||||
Property management and leasing fees | 6,037,243 | 6,621,272 | ||||||
Salary and general and administrative expense reimbursements | 17,034,376 | 17,468,489 | ||||||
Disposition fees | 1,311,400 | — | ||||||
Other income | 129,648 | 85,564 | ||||||
58,012,667 | 57,574,163 | |||||||
Expenses: | ||||||||
Salaries and benefits | 17,673,556 | 17,063,935 | ||||||
Deferred compensation expense | 680,802 | 222,550 | ||||||
General and administrative | 5,835,879 | 7,812,989 | ||||||
24,190,237 | 25,099,474 | |||||||
Net income | $ | 33,822,430 | $ | 32,474,689 | ||||
See accompanying notes. |
Members' Equity | ||||
Balance, December 31, 2010 | $ | 3,048,978 | ||
Member contributions | 3,720,992 | |||
Member distributions | (37,256,681 | ) | ||
Net income | 32,474,689 | |||
Balance, December 31, 2011 | 1,987,978 | |||
Member contributions | 17,849,981 | |||
Member distributions | (50,241,370 | ) | ||
Net income | 33,822,430 | |||
Balance, December 31, 2012 | $ | 3,419,019 | ||
See accompanying notes. |
Years ended December 31 | ||||||||
2012 | 2011 | |||||||
Operating activities: | ||||||||
Net income | $ | 33,822,430 | $ | 32,474,689 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Changes in assets and liabilities: | ||||||||
Due from affiliates | 1,736,541 | 1,012,661 | ||||||
Prepaid expenses and other assets | (67,429 | ) | 121,068 | |||||
Accounts payable and accrued expenses | 217,129 | 45,773 | ||||||
Due to affiliates | (597,655 | ) | 10,651 | |||||
Total adjustments | 1,288,586 | 1,190,153 | ||||||
Net cash provided by operating activities | 35,111,016 | 33,664,842 | ||||||
Financing activities: | ||||||||
Member contributions | 17,849,981 | 3,329,780 | ||||||
Member distributions | (50,241,370 | ) | (37,256,681 | ) | ||||
Net cash used in financing activities | (32,391,389 | ) | (33,926,901 | ) | ||||
Net increase (decrease) in cash | 2,719,627 | (262,059 | ) | |||||
Cash: | ||||||||
Beginning of the year | 140,658 | 402,717 | ||||||
Ending of the year | $ | 2,860,285 | $ | 140,658 | ||||
Supplemental disclosures of non-cash activities: | ||||||||
Contribution of common stock of affiliate | $ | — | $ | 391,212 | ||||
See accompanying notes. |
2012 | 2011 | ||||||||
Wells REIT II | $ | 1,985,353 | $ | 3,845,030 | |||||
Wells Core | 107,623 | 72,970 | |||||||
Other Affiliates | 122,024 | 33,541 | |||||||
$ | 2,215,000 | $ | 3,951,541 |
2012 | 2011 | ||||||||
Wells Capital | $ | 300,634 | $ | 527,721 | |||||
Wells Management | 90,728 | 461,296 | |||||||
Total | $ | 391,362 | $ | 989,017 |
Summary of Significant Accounting Policies (Narratives) (Details) (USD $)
|
12 Months Ended | 9 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
Buildings
|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2012
Building
|
Dec. 31, 2012
Site Improvements
|
Dec. 31, 2012
Minimum
Building Improvements
|
Dec. 31, 2012
Maximum
Building Improvements
|
Dec. 31, 2012
Below-Market Lease Assets
|
Dec. 31, 2011
Below-Market Lease Assets
|
Dec. 31, 2010
Below-Market Lease Assets
|
Sep. 30, 2011
Nine-Property Sale
Asset
|
Sep. 30, 2012
180 E 100 South Property
|
Apr. 30, 2012
One Robins Road
|
Apr. 29, 2012
One Robins Road
|
Sep. 30, 2011
Manhattan Towers Property
|
Sep. 06, 2011
Manhattan Towers Property
Buildings
|
Sep. 06, 2011
Mortgage Notes
Manhattan Towers Property
|
Dec. 31, 2012
Nine-Property Sale Contract
|
Sep. 30, 2011
New Manchester One
|
Dec. 31, 2012
Share Redemption Program
|
Dec. 31, 2011
Share Redemption Program
|
Dec. 31, 2012
Fair Value, Inputs, Level 2
|
Dec. 31, 2011
Fair Value, Inputs, Level 2
|
Dec. 31, 2011
Unsecured Debt
|
Dec. 31, 2011
Unsecured Debt
2018 Bonds Payable
|
Dec. 31, 2012
Unsecured Debt
2018 Bonds Payable
Fair Value, Inputs, Level 2
|
Dec. 31, 2011
Unsecured Debt
2018 Bonds Payable
Fair Value, Inputs, Level 2
|
|
Significant Accounting Policies [Line Items] | |||||||||||||||||||||||||||
Number of assets in outlying markets marketed for sale | 9 | ||||||||||||||||||||||||||
Impairment loss on real estate assets | $ 0 | $ 18,500,000 | |||||||||||||||||||||||||
Number of office buildings | 83 | 2 | |||||||||||||||||||||||||
Occupancy percentage | 22.00% | ||||||||||||||||||||||||||
Value of mortgage note on real estate in deed in-lieu of foreclosure transaction | 0 | 75,000,000 | 0 | 75,000,000 | |||||||||||||||||||||||
Impairment loss on real estate assets | 18,467,000 | 5,817,000 | 0 | 5,800,000 | |||||||||||||||||||||||
Gain on early extinguishment of debt | 0 | 66,540,000 | 0 | 13,500,000 | |||||||||||||||||||||||
Accumulated depreciation of below-market lease | 315,840,000 | 343,463,000 | 10,981,000 | 8,900,000 | |||||||||||||||||||||||
Cash equivalent maturity period | 3 months | ||||||||||||||||||||||||||
Provision for doubtful accounts | 200,000 | 300,000 | |||||||||||||||||||||||||
Amortization of financing costs | 3,200,000 | 8,400,000 | 4,100,000 | ||||||||||||||||||||||||
Amortization of deferred leasing costs | 10,900,000 | 6,800,000 | 4,700,000 | ||||||||||||||||||||||||
Investment in development authority bonds | 586,000,000 | 646,000,000 | 60,000,000 | 18,000,000 | |||||||||||||||||||||||
Estimated fair value of line of credit and notes payable | 1,433,100,000 | 1,282,600,000 | 1,433,100,000 | 1,282,600,000 | |||||||||||||||||||||||
Debt face amount | 250,000,000 | ||||||||||||||||||||||||||
Interest rate for debt instrument (percent) | 5.875% | ||||||||||||||||||||||||||
Discount rate of face value of issued debt instrument (percent) | 99.295% | ||||||||||||||||||||||||||
Estimated fair value of debt instrument | 250,900,000 | 251,100,000 | |||||||||||||||||||||||||
Additional percentage of noncontrolling interest acquired in consolidated joint ventures | 0.70% | ||||||||||||||||||||||||||
Acquisition of noncontrolling interest in consolidated joint ventures | 301,000 | 8,166,000 | 300,000 | ||||||||||||||||||||||||
Proceeds from dividend reinvestment program | 100.00% | ||||||||||||||||||||||||||
Percent of the weighted-average number of shares outstanding in the prior calendar year | 5.00% | ||||||||||||||||||||||||||
Redeemable common stock per share | $ 7.33 | $ 7.47 | |||||||||||||||||||||||||
Preferred stock shares authorized | 100,000,000 | ||||||||||||||||||||||||||
Preferred stock par value per share | $ 0.01 | ||||||||||||||||||||||||||
Requirement to distribute taxable income (percent) | 90.00% | ||||||||||||||||||||||||||
Fair value of interest rate swaps | (18,400,000) | (1,700,000) | |||||||||||||||||||||||||
Limit on investments in taxable real estate investment trusts (percent) | 25.00% | ||||||||||||||||||||||||||
Estimated useful life of assets | 40 years | 15 years | 5 years | 25 years | |||||||||||||||||||||||
Gross intangible assets | 110,673,000 | 110,700,000 | |||||||||||||||||||||||||
Amortization of intangible assets | $ 100,482,000 | $ 122,807,000 | $ 124,360,000 | $ 2,100,000 | $ 2,100,000 | $ 2,100,000 | |||||||||||||||||||||
Maturity period of debt instrument (in years) | 7 years |
Related-Party Transactions and Agreements (Narratives) (Details) (USD $)
|
12 Months Ended | 6 Months Ended | 12 Months Ended | 17 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2012
WREAS II
|
Dec. 31, 2012
Wells Management
|
Jun. 30, 2012
Maximum
WREAS II
|
Dec. 31, 2012
General and Administrative Expense
Maximum
WREAS II
|
Dec. 31, 2012
Personnel Expenses
Maximum
WREAS II
|
Dec. 31, 2012
Acquisition Fees
WREAS II
|
Dec. 31, 2012
Acquisition Fees
WREAS II
|
Dec. 31, 2012
Real Estate Commissions
Maximum
WREAS II
|
Dec. 31, 2012
Disposition fee
WREAS II
|
Dec. 31, 2012
Organization and Offering Costs
Maximum
WREAS II
|
Dec. 31, 2012
Leasing Commissions
Wells Management
|
Dec. 31, 2012
Initial Term Advisory
WREF
|
Dec. 31, 2012
Initial Term Advisory
WREF
|
Dec. 31, 2012
Initial Term Advisory
Maximum
WREF
|
Dec. 31, 2012
Renewal Advisory Agreement
Maximum
WREF
|
Dec. 31, 2012
Renewal Advisory Agreement
Disposition fee
WREAS II
|
Dec. 31, 2012
Transitional Services Agreement
WREF
Monthly_Installment_Payments
|
Dec. 31, 2012
Amended to Transition Services Agreement
WREF
|
Dec. 31, 2012
Occupancy Costs
|
Dec. 31, 2011
Occupancy Costs
|
Dec. 31, 2010
Occupancy Costs
|
Dec. 31, 2012
Occupancy Costs
Initial Term Advisory
WREF
|
Dec. 31, 2012
Occupancy Costs
Initial Term Advisory
WREF
|
Dec. 31, 2012
333 Market Street
Renewal Advisory Agreement
Acquisition Fees
Maximum
WREAS II
|
Dec. 31, 2012
Nine-Property Sale
|
Dec. 31, 2012
Nine-Property Sale
Disposition fee
WREAS II
|
|
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||
Monthly management fee as percentage of cost of properties owned and investments in joint venture | 0.05208% | ||||||||||||||||||||||||||||
Monthly management fee at cap | $ 2,700,000 | $ 2,600,000 | |||||||||||||||||||||||||||
Annual management fees | 32,500,000 | ||||||||||||||||||||||||||||
Savings in monthly asset management fees | 83,333 | ||||||||||||||||||||||||||||
Estimated savings for six month period from proposed agreement | 500,000 | ||||||||||||||||||||||||||||
Monthly estimated savings from proposed agreement | 166,667 | ||||||||||||||||||||||||||||
Annual Estimated Savings from Proposed Agreement | 1,000,000 | ||||||||||||||||||||||||||||
Limitation on reimbursed expenses | 18,200,000 | 10,000,000 | |||||||||||||||||||||||||||
Acquisitions fees percent of purchase price | 1.00% | ||||||||||||||||||||||||||||
Threshold percent of gross offering proceeds for reimbursement | 2.00% | 2.00% | |||||||||||||||||||||||||||
Aggregate cap of acquisition fees | 1,500,000 | ||||||||||||||||||||||||||||
Disposition fee percent of sales price | 1.00% | ||||||||||||||||||||||||||||
Real estate commission percent of sales price of each property | 6.00% | ||||||||||||||||||||||||||||
Potential Disposition Fee, Percentage | 0.30% | ||||||||||||||||||||||||||||
Broker fee paid to third party (percent) | 0.50% | ||||||||||||||||||||||||||||
Total disposition fees paid | 53,726,000 | 49,767,000 | 91,000,000 | 126,000 | 0 | 0 | 1,300,000 | ||||||||||||||||||||||
Monthly payments under agreement | 500,000 | 21,000 | |||||||||||||||||||||||||||
Annualized occupancy costs under agreement | 126,000 | 252,000 | |||||||||||||||||||||||||||
Total amount payable to related party under agreement | 6,000,000 | 2,800,000 | |||||||||||||||||||||||||||
Number of monthly installments | 12 | ||||||||||||||||||||||||||||
Maximum reimbursement obligation for out-of-pocket and third-party costs | $ 250,000 | ||||||||||||||||||||||||||||
Maximum lease term for leasing commissions payable | 10 years | ||||||||||||||||||||||||||||
Leasing concession percent of all build-out funds | 5.00% |
Line of Credit and Notes Payable Maturities (Details) (USD $)
In Thousands, unless otherwise specified |
Dec. 31, 2012
|
---|---|
Debt Disclosure [Abstract] | |
2013 | $ 28,755 |
2014 | 101,481 |
2015 | 253,104 |
2016 | 491,963 |
2017 | 178,139 |
Thereafter | 348,176 |
Total | $ 1,401,618 |
Schedule III - Real Estate Assets and Accumulated Depreciation and Amortization (Details) (USD $)
|
12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2012
WEATHERFORD CENTER HOUSTON
|
Dec. 31, 2012
333 & 777 REPUBLIC DRIVE
|
Dec. 31, 2012
9 TECHNOLOGY DRIVE
|
Dec. 31, 2012
180 PARK AVENUE
|
Dec. 31, 2012
ONE GLENLAKE PARKWAY
|
Dec. 31, 2012
80 M STREET
|
Dec. 31, 2012
3333 FINLEY ROAD
|
Dec. 31, 2012
1501 OPUS PLACE
|
Dec. 31, 2012
2500 WINDY RIDGE PARKWAY
|
Dec. 31, 2012
4100 - 4300 WILDWOOD PARKWAY
|
Dec. 31, 2012
4200 WILDWOOD PARKWAY
|
Dec. 31, 2012
800 NORTH FREDERICK
|
Dec. 31, 2012
THE CORRIDORS III
|
Dec. 31, 2012
HIGHLAND LANDMARK III
|
Dec. 31, 2012
180 PARK AVENUE 105
|
Dec. 31, 2012
4241 IRWIN SIMPSON
|
Dec. 31, 2012
8990 DUKE ROAD
|
Dec. 31, 2012
215 DIEHL ROAD
|
Dec. 31, 2012
100 EAST PRATT
|
Dec. 31, 2012
COLLEGE PARK PLAZA
|
Dec. 31, 2012
ONE ROBBINS ROAD
|
Dec. 31, 2012
FOUR ROBBINS ROAD
|
Dec. 31, 2012
1900 UNIVERSITY CIRCLE
|
Dec. 31, 2012
1950 UNIVERSITY CIRCLE
|
Dec. 31, 2012
2000 UNIVERSITY CIRCLE
|
Dec. 31, 2012
MACARTHUR RIDGE
|
Dec. 31, 2012
5 HOUSTON CENTER
|
Dec. 31, 2012
KEY CENTER TOWER
|
Dec. 31, 2012
KEY CENTER MARRIOTT
|
Dec. 31, 2012
ONE SANTAN CORPORATE CENTER
|
Dec. 31, 2012
TWO SANTAN CORPORATE CENTER
|
Dec. 31, 2012
263 SHUMAN BOULEVARD
|
Dec. 31, 2012
4300 CENTREWAY PLACE
|
Dec. 31, 2012
80 PARK PLACE
|
Dec. 31, 2012
INTERNATIONAL FINANCIAL TOWER
|
Dec. 31, 2012
STERLING COMMERCE
|
Dec. 31, 2012
ONE CENTURY PLACE
|
Dec. 31, 2012
120 EAGLE ROCK
|
Dec. 31, 2012
PASADENA CORPORATE PARK
|
Dec. 31, 2012
7031 COLUMBIA GATEWAY DRIVE
|
Dec. 31, 2012
222 EAST 41ST STREET
|
Dec. 31, 2012
BANNOCKBURN LAKE III
|
Dec. 31, 2012
1200 MORRIS DRIVE
|
Dec. 31, 2012
SOUTH JAMAICA STREET
|
Dec. 31, 2012
15815 25TH AVENUE WEST
|
Dec. 31, 2012
16201 25TH AVENUE WEST
|
Dec. 31, 2012
13655 RIVERPORT DRIVE
|
Dec. 31, 2012
11200 WEST PARKLAND AVENUE
|
Dec. 31, 2012
LENOX PARK BUILDINGS
|
Dec. 31, 2012
LINDBERGH CENTER
|
Dec. 31, 2012
THREE GLENLAKE BUILDING
|
Dec. 31, 2012
1580 WEST NURSERY ROAD
|
Dec. 31, 2012
DVINTSEV BUSINESS CENTER -- TOWER B
|
Dec. 31, 2012
STERLING COMMERCE CENTER
|
Dec. 31, 2012
FIVE HUNDRED FIFTY KING STREET BUILDING
|
Dec. 31, 2012
CRANBERRY WOODS DRIVE
|
Dec. 31, 2012
HOUSTON ENERGY CENTER I
|
Dec. 31, 2012
SUNTRUST BUILDING
|
Dec. 31, 2012
CHASE CENTER BUILDING
|
Dec. 31, 2012
MARKET SQUARE BUILDINGS
|
Dec. 31, 2012
544 LAKEVIEW
|
Dec. 31, 2011
544 LAKEVIEW
|
Dec. 31, 2012
333 MARKET STREET
|
Dec. 31, 2012
Minimum
WEATHERFORD CENTER HOUSTON
|
Dec. 31, 2012
Minimum
333 & 777 REPUBLIC DRIVE
|
Dec. 31, 2012
Minimum
9 TECHNOLOGY DRIVE
|
Dec. 31, 2012
Minimum
180 PARK AVENUE
|
Dec. 31, 2012
Minimum
ONE GLENLAKE PARKWAY
|
Dec. 31, 2012
Minimum
80 M STREET
|
Dec. 31, 2012
Minimum
3333 FINLEY ROAD
|
Dec. 31, 2012
Minimum
1501 OPUS PLACE
|
Dec. 31, 2012
Minimum
2500 WINDY RIDGE PARKWAY
|
Dec. 31, 2012
Minimum
4100 - 4300 WILDWOOD PARKWAY
|
Dec. 31, 2012
Minimum
4200 WILDWOOD PARKWAY
|
Dec. 31, 2012
Minimum
800 NORTH FREDERICK
|
Dec. 31, 2012
Minimum
THE CORRIDORS III
|
Dec. 31, 2012
Minimum
HIGHLAND LANDMARK III
|
Dec. 31, 2012
Minimum
4241 IRWIN SIMPSON
|
Dec. 31, 2012
Minimum
8990 DUKE ROAD
|
Dec. 31, 2012
Minimum
215 DIEHL ROAD
|
Dec. 31, 2012
Minimum
100 EAST PRATT
|
Dec. 31, 2012
Minimum
COLLEGE PARK PLAZA
|
Dec. 31, 2012
Minimum
ONE ROBBINS ROAD
|
Dec. 31, 2012
Minimum
FOUR ROBBINS ROAD
|
Dec. 31, 2012
Minimum
1900 UNIVERSITY CIRCLE
|
Dec. 31, 2012
Minimum
1950 UNIVERSITY CIRCLE
|
Dec. 31, 2012
Minimum
2000 UNIVERSITY CIRCLE
|
Dec. 31, 2012
Minimum
MACARTHUR RIDGE
|
Dec. 31, 2012
Minimum
5 HOUSTON CENTER
|
Dec. 31, 2012
Minimum
KEY CENTER TOWER
|
Dec. 31, 2012
Minimum
KEY CENTER MARRIOTT
|
Dec. 31, 2012
Minimum
ONE SANTAN CORPORATE CENTER
|
Dec. 31, 2012
Minimum
TWO SANTAN CORPORATE CENTER
|
Dec. 31, 2012
Minimum
263 SHUMAN BOULEVARD
|
Dec. 31, 2012
Minimum
4300 CENTREWAY PLACE
|
Dec. 31, 2012
Minimum
80 PARK PLACE
|
Dec. 31, 2012
Minimum
INTERNATIONAL FINANCIAL TOWER
|
Dec. 31, 2012
Minimum
STERLING COMMERCE
|
Dec. 31, 2012
Minimum
ONE CENTURY PLACE
|
Dec. 31, 2012
Minimum
120 EAGLE ROCK
|
Dec. 31, 2012
Minimum
PASADENA CORPORATE PARK
|
Dec. 31, 2012
Minimum
7031 COLUMBIA GATEWAY DRIVE
|
Dec. 31, 2012
Minimum
222 EAST 41ST STREET
|
Dec. 31, 2012
Minimum
BANNOCKBURN LAKE III
|
Dec. 31, 2012
Minimum
1200 MORRIS DRIVE
|
Dec. 31, 2012
Minimum
SOUTH JAMAICA STREET
|
Dec. 31, 2012
Minimum
15815 25TH AVENUE WEST
|
Dec. 31, 2012
Minimum
16201 25TH AVENUE WEST
|
Dec. 31, 2012
Minimum
13655 RIVERPORT DRIVE
|
Dec. 31, 2012
Minimum
11200 WEST PARKLAND AVENUE
|
Dec. 31, 2012
Minimum
LENOX PARK BUILDINGS
|
Dec. 31, 2012
Minimum
LINDBERGH CENTER
|
Dec. 31, 2012
Minimum
THREE GLENLAKE BUILDING
|
Dec. 31, 2012
Minimum
1580 WEST NURSERY ROAD
|
Dec. 31, 2012
Minimum
DVINTSEV BUSINESS CENTER -- TOWER B
|
Dec. 31, 2012
Minimum
STERLING COMMERCE CENTER
|
Dec. 31, 2012
Minimum
FIVE HUNDRED FIFTY KING STREET BUILDING
|
Dec. 31, 2012
Minimum
CRANBERRY WOODS DRIVE
|
Dec. 31, 2012
Minimum
HOUSTON ENERGY CENTER I
|
Dec. 31, 2012
Minimum
SUNTRUST BUILDING
|
Dec. 31, 2012
Minimum
CHASE CENTER BUILDING
|
Dec. 31, 2012
Minimum
MARKET SQUARE BUILDINGS
|
Dec. 31, 2012
Minimum
544 LAKEVIEW
|
Dec. 31, 2012
Minimum
333 MARKET STREET
|
Dec. 31, 2012
Maximum
WEATHERFORD CENTER HOUSTON
|
Dec. 31, 2012
Maximum
333 & 777 REPUBLIC DRIVE
|
Dec. 31, 2012
Maximum
9 TECHNOLOGY DRIVE
|
Dec. 31, 2012
Maximum
180 PARK AVENUE
|
Dec. 31, 2012
Maximum
ONE GLENLAKE PARKWAY
|
Dec. 31, 2012
Maximum
80 M STREET
|
Dec. 31, 2012
Maximum
3333 FINLEY ROAD
|
Dec. 31, 2012
Maximum
1501 OPUS PLACE
|
Dec. 31, 2012
Maximum
2500 WINDY RIDGE PARKWAY
|
Dec. 31, 2012
Maximum
4100 - 4300 WILDWOOD PARKWAY
|
Dec. 31, 2012
Maximum
4200 WILDWOOD PARKWAY
|
Dec. 31, 2012
Maximum
800 NORTH FREDERICK
|
Dec. 31, 2012
Maximum
THE CORRIDORS III
|
Dec. 31, 2012
Maximum
HIGHLAND LANDMARK III
|
Dec. 31, 2012
Maximum
4241 IRWIN SIMPSON
|
Dec. 31, 2012
Maximum
8990 DUKE ROAD
|
Dec. 31, 2012
Maximum
215 DIEHL ROAD
|
Dec. 31, 2012
Maximum
100 EAST PRATT
|
Dec. 31, 2012
Maximum
COLLEGE PARK PLAZA
|
Dec. 31, 2012
Maximum
ONE ROBBINS ROAD
|
Dec. 31, 2012
Maximum
FOUR ROBBINS ROAD
|
Dec. 31, 2012
Maximum
1900 UNIVERSITY CIRCLE
|
Dec. 31, 2012
Maximum
1950 UNIVERSITY CIRCLE
|
Dec. 31, 2012
Maximum
2000 UNIVERSITY CIRCLE
|
Dec. 31, 2012
Maximum
MACARTHUR RIDGE
|
Dec. 31, 2012
Maximum
5 HOUSTON CENTER
|
Dec. 31, 2012
Maximum
KEY CENTER TOWER
|
Dec. 31, 2012
Maximum
KEY CENTER MARRIOTT
|
Dec. 31, 2012
Maximum
ONE SANTAN CORPORATE CENTER
|
Dec. 31, 2012
Maximum
TWO SANTAN CORPORATE CENTER
|
Dec. 31, 2012
Maximum
263 SHUMAN BOULEVARD
|
Dec. 31, 2012
Maximum
4300 CENTREWAY PLACE
|
Dec. 31, 2012
Maximum
80 PARK PLACE
|
Dec. 31, 2012
Maximum
INTERNATIONAL FINANCIAL TOWER
|
Dec. 31, 2012
Maximum
STERLING COMMERCE
|
Dec. 31, 2012
Maximum
ONE CENTURY PLACE
|
Dec. 31, 2012
Maximum
120 EAGLE ROCK
|
Dec. 31, 2012
Maximum
PASADENA CORPORATE PARK
|
Dec. 31, 2012
Maximum
7031 COLUMBIA GATEWAY DRIVE
|
Dec. 31, 2012
Maximum
222 EAST 41ST STREET
|
Dec. 31, 2012
Maximum
BANNOCKBURN LAKE III
|
Dec. 31, 2012
Maximum
1200 MORRIS DRIVE
|
Dec. 31, 2012
Maximum
SOUTH JAMAICA STREET
|
Dec. 31, 2012
Maximum
15815 25TH AVENUE WEST
|
Dec. 31, 2012
Maximum
16201 25TH AVENUE WEST
|
Dec. 31, 2012
Maximum
13655 RIVERPORT DRIVE
|
Dec. 31, 2012
Maximum
11200 WEST PARKLAND AVENUE
|
Dec. 31, 2012
Maximum
LENOX PARK BUILDINGS
|
Dec. 31, 2012
Maximum
LINDBERGH CENTER
|
Dec. 31, 2012
Maximum
THREE GLENLAKE BUILDING
|
Dec. 31, 2012
Maximum
1580 WEST NURSERY ROAD
|
Dec. 31, 2012
Maximum
DVINTSEV BUSINESS CENTER -- TOWER B
|
Dec. 31, 2012
Maximum
STERLING COMMERCE CENTER
|
Dec. 31, 2012
Maximum
FIVE HUNDRED FIFTY KING STREET BUILDING
|
Dec. 31, 2012
Maximum
CRANBERRY WOODS DRIVE
|
Dec. 31, 2012
Maximum
HOUSTON ENERGY CENTER I
|
Dec. 31, 2012
Maximum
SUNTRUST BUILDING
|
Dec. 31, 2012
Maximum
CHASE CENTER BUILDING
|
Dec. 31, 2012
Maximum
MARKET SQUARE BUILDINGS
|
Dec. 31, 2012
Maximum
544 LAKEVIEW
|
Dec. 31, 2012
Maximum
333 MARKET STREET
|
Dec. 31, 2012
Corporate Joint Venture
544 LAKEVIEW
|
Dec. 31, 2011
Corporate Joint Venture
544 LAKEVIEW
|
Dec. 31, 2012
Mortgage Note
THREE GLENLAKE BUILDING
|
Dec. 31, 2012
Capital Lease Obligations
THREE GLENLAKE BUILDING
|
Dec. 31, 2012
Building Improvements
Minimum
|
Dec. 31, 2012
Building Improvements
Maximum
|
Dec. 31, 2012
Site Improvements
|
Dec. 31, 2012
Building
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ownership percentage | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | [1] | 100.00% | 100.00% | 100.00% | [2] | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 50.00% | [3] | 50.00% | 100.00% | 100.00% | 100.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Encumbrances | $ 0 | $ 0 | $ 0 | $ 0 | $ 37,204,000 | $ 0 | $ 0 | $ 0 | $ 32,000,000 | $ 25,000,000 | $ 33,000,000 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 21,000,000 | $ 105,000,000 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 18,000,000 | $ 21,000,000 | $ 49,000,000 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 216,000,000 | $ 250,000,000 | [1],[4] | $ 0 | $ 0 | [1] | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 325,000,000 | $ 9,100,000 | $ 206,500,000 | $ 26,264,000 | [5] | $ 120,000,000 | [5] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Initial Costs, Land | 785,507,000 | 6,100,000 | 4,400,000 | 5,570,000 | 10,802,000 | 5,846,000 | 26,248,000 | 6,925,000 | 3,579,000 | 7,410,000 | 13,761,000 | 8,472,000 | 22,758,000 | 2,524,000 | 3,028,000 | 4,501,000 | 1,270,000 | 520,000 | 3,452,000 | 31,234,000 | 2,822,000 | 5,391,000 | 2,950,000 | 8,722,000 | 10,040,000 | 8,731,000 | 2,680,000 | 8,186,000 | 7,269,000 | 3,473,000 | 4,871,000 | 3,174,000 | 7,142,000 | 2,539,000 | 31,766,000 | 29,061,000 | 8,639,000 | 8,955,000 | 2,726,000 | 53,099,000 | 10,232,000 | 0 | 7,635,000 | 3,723,000 | 13,429,000 | 3,896,000 | 2,035,000 | 6,138,000 | 3,219,000 | 28,478,000 | 0 | 7,517,000 | 11,410,000 | 0 | 1,793,000 | 8,632,000 | 15,512,000 | 4,734,000 | 1,222,000 | 5,148,000 | 152,629,000 | 3,006,000 | 114,483,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Initial Costs, Building and Improvements | 4,676,965,000 | 28,905,000 | 12,716,000 | 38,218,000 | 62,595,000 | 66,681,000 | 76,269,000 | 34,575,000 | 17,220,000 | 60,601,000 | 31,785,000 | 44,221,000 | 43,174,000 | 35,016,000 | 47,454,000 | 47,957,000 | 28,688,000 | 8,681,000 | 17,456,000 | 140,217,000 | 22,910,000 | 33,788,000 | 32,544,000 | 107,730,000 | 93,716,000 | 76,842,000 | 42,269,000 | 147,653,000 | 244,424,000 | 34,458,000 | 24,669,000 | 21,613,000 | 41,535,000 | 13,919,000 | 109,952,000 | 141,544,000 | 43,980,000 | 58,339,000 | 30,078,000 | 59,630,000 | 54,070,000 | 324,520,000 | 11,002,000 | 20,597,000 | 109,781,000 | 17,144,000 | 9,262,000 | 19,105,000 | 15,394,000 | 225,067,000 | 262,468,000 | 88,784,000 | 78,988,000 | 66,387,000 | 31,501,000 | 74,625,000 | 173,062,000 | 79,344,000 | 20,402,000 | 24,743,000 | 450,757,000 | 3,100,000 | 292,840,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Initial Costs, Total | 5,462,472,000 | 35,005,000 | 17,116,000 | 43,788,000 | 73,397,000 | 72,527,000 | 102,517,000 | 41,500,000 | 20,799,000 | 68,011,000 | 45,546,000 | 52,693,000 | 65,932,000 | 37,540,000 | 50,482,000 | 52,458,000 | 29,958,000 | 9,201,000 | 20,908,000 | 171,451,000 | 25,732,000 | 39,179,000 | 35,494,000 | 116,452,000 | 103,756,000 | 85,573,000 | 44,949,000 | 155,839,000 | 251,693,000 | 37,931,000 | 29,540,000 | 24,787,000 | 48,677,000 | 16,458,000 | 141,718,000 | 170,605,000 | 52,619,000 | 67,294,000 | 32,804,000 | 112,729,000 | 64,302,000 | 324,520,000 | 18,637,000 | 24,320,000 | 123,210,000 | 21,040,000 | 11,297,000 | 25,243,000 | 18,613,000 | 253,545,000 | 262,468,000 | 96,301,000 | 90,398,000 | 66,387,000 | 33,294,000 | 83,257,000 | 188,574,000 | 84,078,000 | 21,624,000 | 29,891,000 | 603,386,000 | 6,106,000 | 407,323,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Costs Capitalized Subsequent to Acquisition | 45,297,000 | (1,460,000) | (781,000) | (5,229,000) | 2,267,000 | (120,000) | (5,992,000) | 630,000 | 328,000 | 1,667,000 | (1,086,000) | (697,000) | 582,000 | (1,761,000) | (3,594,000) | (8,200,000) | 719,000 | 193,000 | 2,941,000 | 30,344,000 | (1,401,000) | 19,000 | 0 | (25,215,000) | 1,374,000 | 600,000 | 1,078,000 | (19,711,000) | 12,790,000 | 10,797,000 | (1,496,000) | (1,752,000) | 6,890,000 | (2,754,000) | 6,333,000 | 13,674,000 | 403,000 | (7,582,000) | (5,399,000) | 756,000 | 35,000 | (1,034,000) | (1,879,000) | 5,377,000 | 3,252,000 | 462,000 | 216,000 | 8,000 | 2,556,000 | 4,224,000 | 3,252,000 | 891,000 | 1,212,000 | (6,174,000) | 2,893,000 | 7,975,000 | 1,210,000 | 5,037,000 | 938,000 | 2,804,000 | 11,873,000 | 14,000 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Amount at Which Carried at December 31, 2012, Land | 789,237,000 | 6,241,000 | 4,502,000 | 5,627,000 | 11,050,000 | 5,934,000 | 26,806,000 | 7,015,000 | 3,625,000 | 7,485,000 | 13,898,000 | 8,546,000 | 20,195,000 | 2,558,000 | 3,055,000 | 4,501,000 | 1,299,000 | 522,000 | 3,472,000 | 31,777,000 | 2,822,000 | 5,391,000 | 2,950,000 | 8,803,000 | 10,134,000 | 8,819,000 | 2,680,000 | 8,186,000 | 7,454,000 | 3,629,000 | 4,948,000 | 3,245,000 | 7,233,000 | 2,557,000 | 32,221,000 | 29,712,000 | 8,752,000 | 9,106,000 | 2,762,000 | 53,099,000 | 10,232,000 | 0 | 7,663,000 | 3,786,000 | 13,735,000 | 3,965,000 | 2,071,000 | 6,138,000 | 3,219,000 | 28,858,000 | 0 | 8,055,000 | 11,745,000 | 0 | 1,793,000 | 8,632,000 | 15,512,000 | 4,734,000 | 1,222,000 | 5,148,000 | 152,629,000 | 3,006,000 | 114,483,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Amount at Which Carried at December 31, 2012, Buildings and Improvements | 4,718,532,000 | 27,304,000 | 11,833,000 | 32,932,000 | 64,614,000 | 66,473,000 | 69,719,000 | 35,115,000 | 17,502,000 | 62,193,000 | 30,562,000 | 43,450,000 | 46,319,000 | 33,221,000 | 43,833,000 | 39,757,000 | 29,378,000 | 8,872,000 | 20,377,000 | 170,018,000 | 21,509,000 | 33,807,000 | 32,544,000 | 82,434,000 | 94,996,000 | 77,354,000 | 43,347,000 | 127,942,000 | 257,029,000 | 45,099,000 | 23,096,000 | 19,790,000 | 48,334,000 | 11,147,000 | 115,830,000 | 154,567,000 | 44,270,000 | 50,606,000 | 24,643,000 | 60,386,000 | 54,105,000 | 323,486,000 | 9,095,000 | 25,911,000 | 112,727,000 | 17,537,000 | 9,442,000 | 19,113,000 | 17,950,000 | 228,911,000 | 265,720,000 | 89,137,000 | 79,865,000 | 60,213,000 | 34,394,000 | 82,600,000 | 174,272,000 | 84,381,000 | 21,340,000 | 27,547,000 | 462,630,000 | 3,114,000 | 292,840,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Amount at Which Carried at December 31, 2012, Total | 5,507,769,000 | 33,545,000 | 16,335,000 | 38,559,000 | 75,664,000 | 72,407,000 | 96,525,000 | 42,130,000 | 21,127,000 | 69,678,000 | 44,460,000 | 51,996,000 | 66,514,000 | 35,779,000 | 46,888,000 | 44,258,000 | 30,677,000 | 9,394,000 | 23,849,000 | 201,795,000 | 24,331,000 | 39,198,000 | 35,494,000 | 91,237,000 | 105,130,000 | 86,173,000 | 46,027,000 | 136,128,000 | 264,483,000 | 48,728,000 | 28,044,000 | 23,035,000 | 55,567,000 | 13,704,000 | 148,051,000 | 184,279,000 | 53,022,000 | 59,712,000 | 27,405,000 | 113,485,000 | 64,337,000 | 323,486,000 | 16,758,000 | 29,697,000 | 126,462,000 | 21,502,000 | 11,513,000 | 25,251,000 | 21,169,000 | 257,769,000 | 265,720,000 | 97,192,000 | 91,610,000 | 60,213,000 | 36,187,000 | 91,232,000 | 189,784,000 | 89,115,000 | 22,562,000 | 32,695,000 | 615,259,000 | 6,120,000 | 407,323,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Depreciation and Amortization | 896,174,000 | 5,539,000 | 2,876,000 | 8,504,000 | 33,886,000 | 20,304,000 | 19,596,000 | 8,383,000 | 4,213,000 | 14,627,000 | 7,513,000 | 12,766,000 | 16,309,000 | 9,216,000 | 11,813,000 | 9,044,000 | 6,887,000 | 2,394,000 | 6,702,000 | 47,429,000 | 7,106,000 | 8,648,000 | 12,992,000 | 16,176,000 | 18,378,000 | 16,112,000 | 6,381,000 | 34,698,000 | 69,038,000 | 13,022,000 | 5,219,000 | 3,611,000 | 14,717,000 | 2,338,000 | 39,607,000 | 39,035,000 | 17,989,000 | 9,510,000 | 3,662,000 | 9,615,000 | 11,542,000 | 54,355,000 | 1,115,000 | 6,330,000 | 23,693,000 | 3,051,000 | 1,218,000 | 3,617,000 | 4,293,000 | 34,031,000 | 36,665,000 | 13,062,000 | 13,874,000 | 5,764,000 | 3,979,000 | 11,036,000 | 17,591,000 | 8,352,000 | 2,250,000 | 2,861,000 | 41,253,000 | 141,000 | 246,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in development authority bonds | $ 586,000,000 | $ 646,000,000 | $ 216,000,000 | $ 250,000,000 | $ 120,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate and accumulated depreciation, life used for depreciation | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 0 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 40 years | [6] | 5 years | 25 years | 15 years | 40 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Related-Party Transactions and Agreements (Schedule of Related-Party Costs) (Details) (USD $)
|
12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Total related-party costs | $ 53,726,000 | $ 49,767,000 | $ 91,000,000 | |||||||||||
Tenant reimbursements | 4,400,000 | 4,000,000 | 3,500,000 | |||||||||||
Asset management fees
|
||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Total related-party costs | 32,000,000 | 32,094,000 | 30,552,000 | |||||||||||
Administrative reimbursements, net
|
||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Total related-party costs | 11,099,000 | [1] | 11,609,000 | [1] | 13,099,000 | [1] | ||||||||
Property management fees
|
||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Total related-party costs | 4,462,000 | 4,546,000 | 3,564,000 | |||||||||||
Transition services
|
||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Total related-party costs | 3,008,000 | 0 | 0 | |||||||||||
Acquisition Fees
|
||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Total related-party costs | 1,500,000 | 1,307,000 | 9,671,000 | |||||||||||
Disposition fee
|
||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Total related-party costs | 1,311,000 | 0 | 0 | |||||||||||
Occupancy Costs
|
||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Total related-party costs | 126,000 | 0 | 0 | |||||||||||
Construction fees
|
||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Total related-party costs | 220,000 | [2] | 211,000 | [2] | 185,000 | [2] | ||||||||
Commissions, net of discounts
|
||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Total related-party costs | 0 | [3],[4] | 0 | [3],[4] | 21,909,000 | [3],[4] | ||||||||
Dealer-manager fees, net of discounts
|
||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Total related-party costs | 0 | [3] | 0 | [3] | 7,843,000 | [3] | ||||||||
Other offering costs
|
||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Total related-party costs | $ 0 | [3] | $ 0 | [3] | $ 4,177,000 | [3] | ||||||||
|
Line of Credit and Notes Payable (Schedule of Long-Term Debt (excluding Bonds Payable)) (Details) (USD $)
|
12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2012
Term Loans
$450 Million Term Loan
|
Feb. 03, 2012
Term Loans
$450 Million Term Loan
|
Dec. 31, 2012
Mortgage Notes
Market Square Buildings Mortgage Note
|
Dec. 31, 2012
Mortgage Notes
Three Hundred Thirty Three Market Street Building Mortgage Note
|
Dec. 31, 2012
Mortgage Notes
100 East Pratt Street Building Mortgage Note
|
Dec. 31, 2012
Mortgage Notes
Wildwood Buildings
|
Dec. 31, 2012
Mortgage Notes
263 Shuman Boulevard Mortgage Note
|
Dec. 31, 2012
Mortgage Notes
SanTan Corporate Center Mortgage Notes
|
Dec. 31, 2012
Mortgage Notes
One Glenlake Building Mortgage Note
|
Dec. 31, 2012
Mortgage Notes
Three Glenlake Building Mortgage Note
|
Dec. 31, 2012
Mortgage Notes
215 Diehl Road Building Mortgage Note
|
Dec. 31, 2012
Mortgage Notes
544 Lakeview Building Mortgage Note
|
Dec. 31, 2012
Mortgage Notes
One West Fourth Street Building Mortgage Note
|
Dec. 31, 2012
Mortgage Notes
Highland Landmark Building Mortgage Note
|
Dec. 31, 2012
Credit Facilities
JPMorgan Chase Credit Facility
|
Dec. 31, 2012
Prime Rate
Credit Facilities
JPMorgan Chase Credit Facility
|
Dec. 31, 2012
Prime Rate
Credit Facilities
Minimum
JPMorgan Chase Credit Facility
|
Dec. 31, 2012
Prime Rate
Credit Facilities
Maximum
JPMorgan Chase Credit Facility
|
Dec. 31, 2012
London Interbank Offered Rate (LIBOR)
Credit Facilities
JPMorgan Chase Credit Facility
|
Dec. 31, 2012
London Interbank Offered Rate (LIBOR)
Credit Facilities
Minimum
JPMorgan Chase Credit Facility
|
Dec. 31, 2012
London Interbank Offered Rate (LIBOR)
Credit Facilities
Maximum
JPMorgan Chase Credit Facility
|
|||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Rate as of December 31, 2012 | 5.07% | 5.08% | 5.00% | 5.55% | 5.83% | 5.80% | [1] | 5.55% | 5.54% | 5.80% | [1] | 4.81% | 2.62% | [2] | |||||||||||||||||||||||||||
Maturity | Feb. 03, 2016 | Jul. 01, 2023 | Jul. 01, 2015 | Jun. 11, 2017 | Dec. 01, 2014 | Jul. 01, 2017 | Oct. 11, 2016 | Dec. 10, 2018 | [1] | Jul. 31, 2013 | Jul. 01, 2017 | Dec. 01, 2014 | Dec. 10, 2018 | [1] | Jan. 10, 2012 | May 07, 2015 | |||||||||||||||||||||||||
Oustanding Balance as of December 31, 2012 | $ 1,401,618,000 | $ 1,221,060,000 | $ 450,000,000 | $ 375,000,000 | $ 325,000,000 | $ 208,308,000 | $ 105,000,000 | $ 90,000,000 | $ 49,000,000 | $ 39,000,000 | $ 37,204,000 | [1] | $ 26,264,000 | $ 21,000,000 | $ 8,842,000 | $ 0 | [1] | $ 0 | $ 42,000,000 | ||||||||||||||||||||||
Outstanding Balance as of December 31, 2011 | 1,401,618,000 | 1,221,060,000 | 0 | 375,000,000 | 325,000,000 | 0 | 105,000,000 | 90,000,000 | 49,000,000 | 39,000,000 | 0 | [1] | 25,958,000 | 21,000,000 | 8,707,000 | 39,555,000 | [1] | 33,840,000 | 484,000,000 | ||||||||||||||||||||||
Debt face amount | $ 450,000,000 | ||||||||||||||||||||||||||||||||||||||||
Effective interest rate (percent) | 2.63% | 2.63% | 4.75% | 5.95% | |||||||||||||||||||||||||||||||||||||
Variable rate basis | LIBOR | [3] | LIBOR | [4] | LIBOR | [5],[6] | prime rate | LIBOR for one-, two-, three-, or six-month periods | |||||||||||||||||||||||||||||||||
Variable rate margin | 1.85% | [3] | 2.02% | [4] | 0.90% | [5],[6] | 1.60% | 2.40% | 1.25% | 2.05% | |||||||||||||||||||||||||||||||
|
Related-Party Transactions and Agreements (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions |
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Schedule of Amounts Due to Affiliates | The detail of amounts due to WREAS II and its affiliates is provided below as of December 31, 2012 and 2011 (in thousands):
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Schedule III - Real Estate Assets and Accumulated Depreciation and Amortization Rollforward (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | |||||||
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Dec. 31, 2012
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Dec. 31, 2011
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Dec. 31, 2010
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Real Estate [Roll Forward] | ||||||||
Balance at beginning of year | $ 5,483,193 | $ 4,999,902 | $ 4,767,664 | |||||
Additions to/improvements of real estate | 453,541 | 676,230 | 297,023 | |||||
Sale/transfer of real estate | (328,804) | (70,082) | (18,143) | |||||
Impairment of real estate | (18,467) | (5,817) | 0 | |||||
Write-offs of building and tenant improvements | (301) | (228) | 0 | |||||
Write-offs of intangible assets | (1,311) | [1] | (6,978) | [1] | (52) | [1] | ||
Write-offs of fully depreciated assets | (80,082) | (109,834) | (46,590) | |||||
Balance at end of the year | 5,507,769 | 5,483,193 | 4,999,902 | |||||
Real Estate Accumulated Depreciation and Amortization [Roll Forward] | ||||||||
Balance at beginning of year | 867,975 | 769,863 | 635,080 | |||||
Depreciation and amortization expense | 181,155 | 225,139 | 184,155 | |||||
Sale/transfer of real estate | (71,654) | (12,258) | (2,763) | |||||
Write-offs of tenant improvements | (196) | (16) | 25 | |||||
Write-offs of intangible assets | (1,024) | [1] | (4,915) | [1] | (44) | [1] | ||
Write-offs of fully depreciated assets | (80,082) | (109,838) | (46,590) | |||||
Balance at end of the year | $ 896,174 | $ 867,975 | $ 769,863 | |||||
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Summary of Significant Accounting Policies (Policies)
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12 Months Ended | ||||||||||||||||||||||||||||
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Dec. 31, 2012
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||
Basis of Presentation | Basis of Presentation The consolidated financial statements of Columbia Property Trust have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and include the accounts of Columbia Property Trust, Columbia Property Trust OP, and any variable interest entity ("VIE") in which Columbia Property Trust or Columbia Property Trust OP was deemed the primary beneficiary. With respect to entities that are not VIEs, Columbia Property Trust's consolidated financial statements shall also include the accounts of any entity in which Columbia Property Trust, Columbia Property Trust OP, or its subsidiaries own a controlling financial interest and any limited partnership in which Columbia Property Trust, Columbia Property Trust OP, or its subsidiaries own a controlling general partnership interest. In determining whether Columbia Property Trust or Columbia Property Trust OP has a controlling interest, the following factors are considered, among other things: the ownership of voting interests, protective rights, and participatory rights of the investors. All intercompany balances and transactions have been eliminated in consolidation. |
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Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements and the accompanying notes. Actual results could differ from those estimates. |
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Fair Value Measurements | Fair Value Measurements Columbia Property Trust estimates the fair value of its assets and liabilities (where currently required under GAAP) consistent with the provisions of Accounting Standard Codification ("ASC") 820, Fair Value Measurements ("ASC 820"). Under this standard, fair value is defined as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date. While various techniques and assumptions can be used to estimate fair value, depending on the nature of the asset or liability, the accounting standard for fair value measurements and disclosures provides the following fair value technique parameters and hierarchy, depending upon availability: Level 1 – Assets or liabilities for which the identical term is traded on an active exchange, such as publicly traded instruments or futures contracts. Level 2 – Assets and liabilities valued based on observable market data for similar instruments. Level 3 – Assets or liabilities for which significant valuation assumptions are not readily observable in the market. Such assets or liabilities are valued based on the best available data, some of which may be internally developed. Significant assumptions may include risk premiums that a market participant would consider. |
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Real Estate Assets | Real Estate Assets Real estate assets are stated at cost, less accumulated depreciation and amortization. Amounts capitalized to real estate assets consist of the cost of acquisition or construction, and any tenant improvements or major improvements and betterments that extend the useful life of the related asset. All repairs and maintenance are expensed as incurred. Additionally, Columbia Property Trust capitalizes interest while the development of a real estate asset is in progress. No interest was capitalized during 2012 and 2011, respectively. Columbia Property Trust is required to make subjective assessments as to the useful lives of its depreciable assets. Columbia Property Trust considers the period of future benefit of the asset to determine the appropriate useful lives. These assessments have a direct impact on net income. The estimated useful lives of its assets by class are as follows:
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Evaluating the Recoverability of Real Estate Assets | Evaluating the Recoverability of Real Estate Assets Columbia Property Trust continually monitors events and changes in circumstances that could indicate that the carrying amounts of its real estate and related intangible assets, of both operating properties and properties under construction, in which Columbia Property Trust has an ownership interest, either directly or through investments in joint ventures, may not be recoverable. When indicators of potential impairment are present that suggest that the carrying amounts of real estate assets and related intangible assets (liabilities) may not be recoverable, Columbia Property Trust assesses the recoverability of these assets by determining whether the respective carrying values will be recovered through the estimated undiscounted future operating cash flows expected from the use of the assets and their eventual disposition. In the event that such expected undiscounted future cash flows do not exceed the carrying values, Columbia Property Trust adjusts the carrying value of the real estate assets and related intangible assets to the estimated fair values, pursuant to the property, plant, and equipment accounting standard for the impairment or disposal of long-lived assets, and recognizes an impairment loss. Estimated fair values are calculated based on the following information, in order of preference, depending upon availability: (i) recently quoted market prices, (ii) market prices for comparable properties, or (iii) the present value of future cash flows, including estimated salvage value. Certain of Columbia Property Trust's assets may be carried at more than an amount that could be realized in a current disposition transaction. |
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Asssets Held for Sale | Assets Held for Sale Columbia Property Trust classifies assets as held for sale according to ASC 360, Accounting for the Impairment or Disposal of Long-Lived Assets ("ASC 360"). According to ASC 360, assets are considered held for sale when the following criteria are met:
At such time that a property is determined to be held for sale, its carrying amount is reduced to the lower of its depreciated book value or its estimated fair value, less costs to sell, and depreciation is no longer recognized. |
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Allocation of Purchase Price of Acquired Assets | Allocation of Purchase Price of Acquired Assets Upon the acquisition of real properties, Columbia Property Trust allocates the purchase price of properties to tangible assets, consisting of land, building, site improvements, and identified intangible assets and liabilities, including the value of in-place leases, based in each case on Columbia Property Trust's estimate of their fair values in accordance with ASC 820 (see Fair Value Measurements section above for additional details). The fair values of the tangible assets of an acquired property (which includes land, building, and site improvements) are determined by valuing the property as if it were vacant, and the "as-if-vacant" value is then allocated to land, building, and site improvements based on management's determination of the relative fair value of these assets. Management determines the as-if-vacant fair value of a property using methods similar to those used by independent appraisers. Factors considered by management in performing these analyses include an estimate of carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases, including leasing commissions and other related costs. In estimating carrying costs, management includes real estate taxes, insurance, and other operating expenses during the expected lease-up periods based on current market demand. |
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Intangible Assets and Liabilities Arising from In-Place Leases | Intangible Assets and Liabilities Arising from In-Place Leases where Columbia Property Trust is the Lessor As further described below, in-place leases with Columbia Property Trust as the lessor may have values related to: direct costs associated with obtaining a new tenant, opportunity costs associated with lost rentals that are avoided by acquiring an in-place lease, tenant relationships, and effective contractual rental rates that are above or below market rates:
Intangible Assets and Liabilities Arising from In-Place Leases where Columbia Property Trust is the Lessee In-place ground leases where Columbia Property Trust is the lessee may have value associated with effective contractual rental rates that are above or below market rates at the time of execution or assumption. Such values are calculated based on the present value (using a discount rate that reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place lease and (ii) management's estimate of fair market lease rates for the corresponding in-place lease at the time of execution or assumption, measured over a period equal to the remaining terms of the leases. The capitalized above-market and below-market in-place lease values are recorded as intangible lease liabilities and assets, respectively, and are amortized as an adjustment to property operating cost over the remaining term of the respective leases. |
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Cash and Cash Equivalents | Cash and Cash Equivalents Columbia Property Trust considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents may include cash and short-term investments. Short-term investments are stated at cost, which approximates fair value as of December 31, 2012 and 2011. |
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Tenant Receivables, net | Tenant Receivables, net Tenant receivables are comprised of rental and reimbursement billings due from tenants and the cumulative amount of future adjustments necessary to present rental income on a straight-line basis. Tenant receivables are recorded at the original amount earned, less an allowance for any doubtful accounts, which approximates fair value. Management assesses the realizability of tenant receivables on an ongoing basis and provides for allowances as such balances, or portions thereof, become uncollectible. |
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Prepaid Expenses and Other Assets | Prepaid Expenses and Other Assets Prepaid expenses and other assets primarily are comprised of earnest money and deposits paid in connection with future acquisitions and borrowings, escrow accounts held by lenders to pay future real estate taxes, insurance and tenant improvements, notes receivable, nontenant receivables, prepaid taxes, insurance and operating costs, hotel inventory, and deferred tax assets. Prepaid expenses and other assets will be expensed as incurred or reclassified to other asset accounts upon being put into service in future periods. |
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Deferred Costs | Deferred Financing Costs Deferred financing costs are comprised of costs incurred in connection with securing financing from third-party lenders and are capitalized and amortized over the term of the related financing arrangements. Columbia Property Trust recognized amortization of deferred financing costs for the years ended December 31, 2012, 2011, and 2010, of approximately $3.2 million, $8.4 million, and $4.1 million, respectively, which is included in interest expense in the accompanying consolidated statements of operations. Deferred Lease Costs Deferred lease costs include (i) costs incurred to procure leases, which are capitalized and recognized as amortization expense on a straight-line basis over the terms of the lease, and (ii) common area maintenance costs that are recoverable from tenants under the terms of the existing leases. Such costs are capitalized and recognized as operating expenses over the shorter of the lease term or the recovery period provided for in the lease. Columbia Property Trust recognized amortization of deferred lease costs of approximately $10.9 million, $6.8 million, and $4.7 million for 2012, 2011, and 2010, respectively, the majority of which is recorded as amortization. Upon receiving notification of a tenant's intention to terminate a lease, unamortized deferred lease costs are amortized over the shortened lease period. |
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Investments in Development Authority Bonds and Obligations Under Capital Leases | Investments in Development Authority Bonds and Obligations Under Capital Leases In connection with the acquisition of certain real estate assets, Columbia Property Trust has assumed investments in development authority bonds and corresponding obligations under capital leases of land or buildings. The county development authority issued bonds to developers to finance the initial development of these projects, a portion of which was then leased back to the developer under a capital lease. This structure enabled the developer to receive property tax abatements over the concurrent terms of the development authority bonds and capital leases. The remaining property tax abatement benefits transferred to Columbia Property Trust upon assumption of the bonds and corresponding capital leases at acquisition. The development authority bonds and the obligations under the capital leases are both recorded at their net present values, which Columbia Property Trust believes approximates fair value. The related amounts of interest income and expense are recognized as earned in equal amounts and, accordingly, do not impact net income. |
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Debts | Line of Credit and Notes Payable Certain mortgage notes included in line of credit and notes payable in the accompanying consolidated balance sheets were assumed upon the acquisition of real properties. When debt is assumed, Columbia Property Trust records the loan at fair value with a corresponding adjustment to building. The fair value adjustment is amortized to interest expense over the term of the loan using the effective interest method. As of December 31, 2012 and 2011, the estimated fair value of Columbia Property Trust's line of credit and notes payable was approximately $1,433.1 million and $1,282.6 million, respectively. Columbia Property Trust estimated the fair values of its line of credit by obtaining estimates for similar facilities from multiple market participants as of the respective reporting dates. The fair values of the notes payable were estimated based on discounted cash flow analyses using the current incremental borrowing rates for similar types of borrowing arrangements as of the respective reporting dates. The discounted cash flow method of assessing fair value results in a general approximation of value, and such value may never actually be realized. Bonds Payable On April 4, 2011, Columbia Property Trust sold $250.0 million of its seven-year unsecured 5.875% senior notes at 99.295% of their face value (the "2018 Bonds Payable"). The discount on bonds payable is amortized to interest expense over the term of the bonds using the effective-interest method. The estimated fair value of Columbia Property Trust's 2018 Bonds Payable as of December 31, 2012 and 2011, was approximately $250.9 million and $251.1 million, respectively. The fair value of the 2018 Bonds Payable was estimated based on discounted cash flow analyses using the current incremental borrowing rates for similar types of borrowing as the 2018 Bonds Payable arrangements as of the respective reporting dates. The discounted cash flow method of assessing fair value results in a general approximation of value, and such value may never actually be realized. |
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Noncontrolling Interests | Noncontrolling Interests Noncontrolling interests represent the equity interests of consolidated subsidiaries that are not owned by Columbia Property Trust. Noncontrolling interests are adjusted for contributions, distributions, and earnings attributable to the noncontrolling interest holders of the consolidated joint ventures. Pursuant to the terms of the consolidated joint venture agreements, all earnings and distributions are allocated to joint ventures in accordance with the terms of the respective joint venture agreements. Earnings allocated to such noncontrolling interest holders are recorded as net (income) loss attributable to noncontrolling interests in the accompanying consolidated statements of operations. |
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Stockholders' Equity | Redeemable Common Stock Under Columbia Property Trust's share redemption program ("SRP"), the decision to honor redemptions, subject to certain plan requirements and limitations, falls outside the control of Columbia Property Trust. As a result, Columbia Property Trust records redeemable common stock in the temporary equity section of its consolidated balance sheet. Total redemptions (including those tendered within two years of a stockholder's death) are limited to the extent that they would cause both (i) the aggregate amount paid for all redemptions during the then-current calendar year to exceed 100% of the net proceeds raised under the DRP during such calendar year and (ii) the total number of shares redeemed during the then-current calendar year to exceed 5.0% of the weighted-average number of shares outstanding in the prior calendar year. Therefore, Columbia Property Trust measures redeemable common stock at the greater of these limits (or, for the periods presented in this report, 5.0% of the weighted-average number of shares outstanding in the prior calendar year, multiplied by the maximum price at which future shares could be redeemed), less the amount incurred to redeem shares during the current calendar year. The maximum price at which shares could be redeemed (i.e., in cases of death, disability, or qualification for federal assistance for confinement to a long-term care facility) was measured at the most recently reported net asset value per share of $7.33 and $7.47 as of December 31, 2012 and 2011, respectively. Preferred Stock Columbia Property Trust is authorized to issue up to 100.0 million shares of one or more classes or series of preferred stock with a par value of $0.01 per share. Columbia Property Trust's board of directors may determine the relative rights, preferences, and privileges of each class or series of preferred stock issued, which may be more beneficial than the rights, preferences, and privileges attributable to Columbia Property Trust's common stock. To date, Columbia Property Trust has not issued any shares of preferred stock. Common Stock The par value of Columbia Property Trust's issued and outstanding shares of common stock is classified as common stock, with the remainder allocated to additional paid-in capital. Distributions To maintain its status as a REIT, Columbia Property Trust is required by the Internal Revenue Code of 1986, as amended (the "Code"), to make distributions to stockholders each taxable year equal to at least 90% of its REIT taxable income, computed without regard to the dividends-paid deduction and by excluding net capital gains attributable to stockholders ("REIT taxable income"). Distributions to the stockholders are determined by the board of directors of Columbia Property Trust and are dependent upon a number of factors relating to Columbia Property Trust, including funds available for payment of distributions, financial condition, the timing of property acquisitions, capital expenditure requirements, and annual distribution requirements in order to maintain Columbia Property Trust's status as a REIT under the Code. |
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Interest Rate Swap Agreements | Interest Rate Swap Agreements Columbia Property Trust enters into interest rate swap contracts to mitigate its interest rate risk on the related financial instruments. Columbia Property Trust does not enter into derivative or interest rate transactions for speculative purposes; however, certain of its derivatives may not qualify for hedge accounting treatment. Columbia Property Trust records the fair value of its interest rate swaps either as prepaid expenses and other assets or as accounts payable, accrued expenses, and accrued capital expenditures. Changes in the fair value of the effective portion of interest rate swaps that are designated as cash flow hedges are recorded as other comprehensive income, while changes in the fair value of the ineffective portion of a hedge, if any, is recognized currently in earnings. Changes in the fair value of interest rate swaps that do not qualify for hedge accounting treatment are recorded as loss on interest rate swaps. Amounts received or paid under interest rate swap agreements are recorded as interest expense for contracts that qualify for hedge accounting treatment and as loss on interest rate swaps for contracts that do not qualify for hedge accounting treatment. |
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Revenue Recognition | Revenue Recognition All leases on real estate assets held by Columbia Property Trust are classified as operating leases, and the related base rental income is generally recognized on a straight-line basis over the terms of the respective leases. Tenant reimbursements are recognized as revenue in the period that the related operating cost is incurred and are billed to tenants pursuant to the terms of the underlying leases. Rental income and tenant reimbursements collected in advance are recorded as deferred income in the accompanying consolidated balance sheets. Lease termination fees are recorded as other property income and recognized once the tenant has lost the right to lease the space and Columbia Property Trust has satisfied all obligations under the related lease or lease termination agreement. In conjunction with certain acquisitions, Columbia Property Trust has entered into master lease agreements with various sellers, whereby the sellers are obligated to pay rent pertaining to certain nonrevenue-producing spaces either at the time of, or subsequent to, the property acquisition. These master leases were established at the time of acquisition to mitigate the potential negative effects of lost rental revenues and expense reimbursement income. Columbia Property Trust records payments received under master lease agreements as a reduction of the basis of the underlying property rather than rental income. There were no proceeds received from master leases during 2012, 2011, and 2010. Columbia Property Trust owns a full-service hotel through a taxable REIT subsidiary. Revenues derived from the operations of the hotel include, but are not limited to, revenues from rental of rooms, food and beverage sales, telephone usage, and other service revenues. Revenue is recognized when rooms are occupied, when services have been performed, and when products are delivered. |
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Earnings Per Share | Earnings Per Share Basic earnings per share is calculated as net income attributable to the common stockholders of Columbia Property Trust divided by the weighted-average number of common shares outstanding for the period. Diluted earnings per share equals basic earnings per share, adjusted to reflect the dilution that would occur if all outstanding securities convertible into common shares or contracts to issue common shares were converted/exercised and the related proceeds were used to repurchase common shares. As the exercise price of Columbia Property Trust's director stock options exceeds the current offering price of Columbia Property Trust's common stock, the impact of assuming that the outstanding director stock options have been exercised is anti-dilutive. Therefore, basic earnings per share equals diluted earnings per share for each of the periods presented. |
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Income Taxes | Income Taxes Columbia Property Trust has elected to be taxed as a REIT under the Code, and has operated as such beginning with its taxable year ended December 31, 2003. To qualify as a REIT, Columbia Property Trust must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of its REIT taxable income, as defined by the Code, to its stockholders. As a REIT, Columbia Property Trust generally is not subject to income tax on income it distributes to stockholders. Columbia Property Trust's stockholder distributions typically exceed its taxable income due to the inclusion of noncash expenses, such as depreciation, in taxable income. As a result, Columbia Property Trust typically does not incur federal income taxes other than as described in the following paragraph. Columbia Property Trust is, however, subject to certain state and local taxes related to the operations of properties in certain locations, which have been provided for in the accompanying consolidated financial statements. Wells TRS II, LLC ("Wells TRS"); Wells KCP TRS, LLC ("Wells KCP TRS"); and Wells Energy TRS, LLC ("Wells Energy TRS") (collectively, the "TRS Entities") are wholly owned subsidiaries of Columbia Property Trust, are organized as Delaware limited liability companies, and operate, among other things, a full-service hotel. Columbia Property Trust has elected to treat the TRS Entities as taxable REIT subsidiaries. Columbia Property Trust may perform certain additional, noncustomary services for tenants of its buildings through the TRS Entities; however, any earnings related to such services are subject to federal and state income taxes. In addition, for Columbia Property Trust to continue to qualify as a REIT, Columbia Property Trust must limit its investments in taxable REIT subsidiaries to 25% of the value of the total assets. The TRS Entities' deferred tax assets and liabilities represent temporary differences between the financial reporting basis and the tax basis of assets and liabilities based on the enacted rates expected to be in effect when the temporary differences reverse. If applicable, Columbia Property Trust records interest and penalties related to uncertain tax positions as general and administrative expense in the accompanying consolidated statements of operations. |
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Operating Segments | Operating Segments Columbia Property Trust operates in a single reporting segment, and the presentation of Columbia Property Trust's financial condition and performance is consistent with the way in which Columbia Property Trust's operations are managed. |
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Reclassification | Reclassification Certain prior period amounts may be reclassified to conform with the current-period financial statement presentation, including assets held for sale and discontinued operations (see Note 12, Assets Held for Sale and Discontinued Operations). |
Commitments and Contingencies Lease Obligations (Details) (USD $)
In Thousands, unless otherwise specified |
Dec. 31, 2012
Properties
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Obligations Under Operating Leases | |
Number of properties subject to ground leases | 4 |
2013 | $ 2,633 |
2014 | 2,633 |
2015 | 2,633 |
2016 | 2,633 |
2017 | 2,779 |
Thereafter | 211,464 |
Total | 224,775 |
Obligations Under Capital Leases | |
2013 | 499,993 |
2014 | 7,200 |
2015 | 7,200 |
2016 | 7,200 |
2017 | 7,200 |
Thereafter | 148,800 |
Total payments with interest | 677,593 |
Amounts representing interest | (91,593) |
Total | $ 586,000 |
Summary of Significant Accounting Policies (Schedule of Future Amortization by Intangible Asset Class) (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | |
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Dec. 31, 2012
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Dec. 31, 2011
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For the years ending December 31: | ||
Intangible Lease Assets, Net | $ 341,460 | $ 391,989 |
Intangible Lease Origination Costs, Net | 206,927 | 231,338 |
Above-Market In-Place Lease Assets
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For the years ending December 31: | ||
2013 | 6,629 | |
2014 | 6,224 | |
2015 | 5,810 | |
2016 | 5,665 | |
2017 | 2,514 | |
Thereafter | 3,595 | |
Intangible Lease Assets, Net | 30,437 | 40,751 |
Weighted-Average Amortization Period | 4 years | |
Absorption Period Costs
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For the years ending December 31: | ||
2013 | 39,767 | |
2014 | 35,771 | |
2015 | 32,018 | |
2016 | 25,676 | |
2017 | 18,635 | |
Thereafter | 59,464 | |
Intangible Lease Assets, Net | 211,331 | 249,478 |
Weighted-Average Amortization Period | 6 years | |
Intangible Lease Origination Costs
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For the years ending December 31: | ||
2013 | 39,383 | |
2014 | 36,425 | |
2015 | 32,980 | |
2016 | 26,382 | |
2017 | 19,495 | |
Thereafter | 52,262 | |
Intangible Lease Origination Costs, Net | 206,927 | 231,338 |
Weighted-Average Amortization Period | 6 years | |
Intangible Below-Market In-Place Lease Liabilities
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For the years ending December 31: | ||
2013 | 14,795 | |
2014 | 14,362 | |
2015 | 12,828 | |
2016 | 10,398 | |
2017 | 8,306 | |
Thereafter | 37,609 | |
Intangible Lease Assets, Net | $ 98,298 | |
Weighted-Average Amortization Period | 7 years |
Financial Information for Parent Guarantor, Other Guarantor Subsidiaries and Non-Guarantor Subsidiaries (Tables)
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Dec. 31, 2012
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Financial Information for Parent Guarantor, Other Guarantor Subsidiaries and Non Guarantor Subsidiaries [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure | Set forth below are Columbia Property Trust's condensed consolidating balance sheets as of December 31, 2012 and 2011 (in thousands), as well as its condensed consolidating statements of operations and its condensed consolidating statements of comprehensive income for 2012, 2011, and 2010 (in thousands); and its condensed consolidating statements of cash flows for 2012, 2011, and 2010 (in thousands). Condensed Consolidating Balance Sheets (in thousands)
Condensed Consolidating Balance Sheets (in thousands)
Consolidating Statements of Operations (in thousands)
Consolidating Statements of Operations (in thousands)
Consolidating Statements of Operations (in thousands)
Consolidating Statements of Comprehensive Income (in thousands)
Consolidating Statements of Cash Flows (in thousands)
Consolidating Statements of Cash Flows (in thousands)
Consolidating Statements of Cash Flows (in thousands)
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Operating Leases (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended |
---|---|
Dec. 31, 2012
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Operating Leased Assets [Line Items] | |
Number of states in which entity operates | 19 |
2013 | 418,995 |
2014 | 422,738 |
2015 | 408,386 |
2016 | 381,546 |
2017 | 308,358 |
Thereafter | 1,214,588 |
Total | 3,154,611 |
Number of properties | Metropolitan Atlanta | Geographic concentration risk
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Operating Leased Assets [Line Items] | |
Concentration risk percentage | 14.00% |
Number of properties | District Of Columbia | Geographic concentration risk
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Operating Leased Assets [Line Items] | |
Concentration risk percentage | 11.00% |
Number of properties | Northern New Jersey | Geographic concentration risk
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Operating Leased Assets [Line Items] | |
Concentration risk percentage | 10.00% |
AT&T | Lease revenue | Customer concentration risk
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Operating Leased Assets [Line Items] | |
Concentration risk percentage | 9.00% |
Legal industry | Lease revenue | Customer concentration risk
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Operating Leased Assets [Line Items] | |
Concentration risk percentage | 15.00% |
Banking industry | Lease revenue | Customer concentration risk
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Operating Leased Assets [Line Items] | |
Concentration risk percentage | 14.00% |
Communications industry | Lease revenue | Customer concentration risk
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Operating Leased Assets [Line Items] | |
Concentration risk percentage | 10.00% |
Line of Credit and Notes Payable (Narratives) (Details) (USD $)
|
12 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
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Dec. 31, 2011
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Dec. 31, 2010
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Feb. 03, 2012
Term Loans
$450 Million Term Loan
Borrowing_Increase
|
Sep. 30, 2012
Term Loans
$450 Million Term Loan
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Jun. 30, 2012
Term Loans
$450 Million Term Loan
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Dec. 31, 2012
Term Loans
$450 Million Term Loan
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Dec. 31, 2011
Term Loans
$450 Million Term Loan
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Dec. 31, 2012
Mortgage Notes
Three Hundred Thirty Three Market Street Building Mortgage Note
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Dec. 31, 2011
Mortgage Notes
Three Hundred Thirty Three Market Street Building Mortgage Note
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Dec. 31, 2012
Mortgage Notes
Highland Landmark Building Mortgage Note
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Dec. 31, 2011
Mortgage Notes
Highland Landmark Building Mortgage Note
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Jan. 10, 2012
Mortgage Notes
Highland Landmark Building Mortgage Note
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Dec. 31, 2012
333 Market Street
Mortgage Notes
Three Hundred Thirty Three Market Street Building Mortgage Note
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Dec. 31, 2012
Fair Value, Inputs, Level 2
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Dec. 31, 2011
Fair Value, Inputs, Level 2
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Dec. 31, 2012
Fair Value, Inputs, Level 2
333 Market Street
Mortgage Notes
Three Hundred Thirty Three Market Street Building Mortgage Note
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Dec. 31, 2012
Minimum
Letter of Credit
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Dec. 31, 2012
Maximum
Letter of Credit
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Debt Instrument [Line Items] | |||||||||||||||||||||||||
Maturity period of debt instrument (in years) | 4 years | ||||||||||||||||||||||||
Debt face amount | $ 450,000,000 | ||||||||||||||||||||||||
Amount outstanding under term loan | 1,401,618,000 | 1,221,060,000 | 375,000,000 | 450,000,000 | 0 | 208,308,000 | 0 | 0 | 33,840,000 | ||||||||||||||||
Additional gross proceeds from term loan | 599,000,000 | 1,543,500,000 | 88,000,000 | 40,000,000 | 35,000,000 | ||||||||||||||||||||
Extension fee (percent) | 0.15% | ||||||||||||||||||||||||
Mortgage note assumed | 206,500,000 | ||||||||||||||||||||||||
Fair value of mortgage note | 208,300,000 | ||||||||||||||||||||||||
Variable rate basis | LIBOR | [1] | LIBOR | [2] | |||||||||||||||||||||
Effective interest rate (percent) | 2.63% | 2.63% | 4.75% | ||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 25,000,000 | ||||||||||||||||||||||||
Restrictive covenant ratio of debt to total asset | 50.00% | ||||||||||||||||||||||||
Restrictive covenant ratio of secured debt to total asset | 40.00% | ||||||||||||||||||||||||
Restrictive covenant ratio of secured recourse debt to total asset | 10.00% | ||||||||||||||||||||||||
Estimated fair value of line of credit and notes payable | 1,433,100,000 | 1,282,600,000 | 1,433,100,000 | 1,282,600,000 | |||||||||||||||||||||
Weighted-average interest rate | 4.25% | 4.39% | |||||||||||||||||||||||
Interest payments | 50,100,000 | 45,900,000 | 40,700,000 | ||||||||||||||||||||||
Capitalized interest paid | 500,000 | ||||||||||||||||||||||||
Extinguishment of Debt, Amount | $ 0 | $ 75,000,000 | $ 0 | $ 33,800,000 | |||||||||||||||||||||
Number of borrowing increases allowed | 2 | ||||||||||||||||||||||||
Term loan extension period | 1 year | ||||||||||||||||||||||||
Ratio of unencumbered asset value to total unsecured debt | 200.00% | ||||||||||||||||||||||||
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Organization
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12 Months Ended |
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Dec. 31, 2012
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization On February 25, 2013, Wells Real Estate Investment Trust II, Inc. changed its name to Columbia Property Trust, Inc. ("Columbia Property Trust"). Columbia Property Trust is a Maryland corporation that operates in a manner as to qualify as a real estate investment trust ("REIT") for federal income tax purposes and engages in the acquisition and ownership of commercial real estate properties, including properties that have operating histories, are newly constructed, or are under construction. Columbia Property Trust was incorporated in 2003, commenced operations in 2004, and conducts business primarily through Columbia Property Trust Operating Partnership, L.P., formerly known as Wells Operating Partnership II, L.P. ("Columbia Property Trust OP"), a Delaware limited partnership. Columbia Property Trust is the general partner and sole owner of Columbia Property Trust OP and possesses full legal control and authority over it operations. Columbia Property Trust OP acquires, develops, owns, leases, and operates real properties directly, through wholly owned subsidiaries, or through joint ventures. References to Columbia Property Trust, "we," "us," or "our" herein shall include Columbia Property Trust and all subsidiaries of Columbia Property Trust, direct and indirect, and consolidated joint ventures. From inception through February 27, 2013, Columbia Property Trust has operated as an externally advised REIT pursuant to an advisory agreement under which a subsidiary of Wells Real Estate Funds ("WREF"), including most recently Wells Real Estate Advisory Services II, LLC ("WREAS II"), and its affiliates performed certain key functions on behalf of Columbia Property Trust, including, among others, managing the day-to-day operations, investing capital proceeds, and arranging financings. Also during this period of time, a subsidiary of WREF, including most recently Wells Real Estate Services, LLC ("WRES"), provided the personnel necessary to carry out property management services on behalf of Wells Management Company, Inc. ("Wells Management") and its affiliates pursuant to the property management agreement described in Note 10, Related-Party Transactions and Agreements. On February 28, 2013, Columbia Property Trust terminated the above-mentioned advisory agreement and property management agreement, and acquired WREAS II and WRES. As a result, the services described above will be performed by employees of Columbia Property Trust going forward (other than the services to be provided by WREF under the Investor Services Agreement). Contemporaneous with this transaction, Columbia Property Trust entered into a consulting agreement and an investor services agreement with WREF for the remainder of 2013. While no fees were paid to execute this transaction, Columbia Property Trust will pay fees to WREF for consulting and investor services for the remainder of 2013. For additional details about this transaction and the related agreements, please refer to Note 10. Related-Party Transactions and Agreements. Columbia Property Trust typically invests in high-quality, income-generating office properties leased to creditworthy companies and governmental entities. As of December 31, 2012, Columbia Property Trust owned interests in 61 office properties and one hotel, which include 83 operational buildings, comprising approximately 21.0 million square feet of commercial space located in 19 states; the District of Columbia; and Moscow, Russia. Of these office properties, 60 are wholly owned and one is owned through a consolidated subsidiary. As of December 31, 2012, the office properties were approximately 92.9% leased. From December 2003 through June 2010, Columbia Property Trust raised proceeds through three uninterrupted public offerings of shares of its common stock. Columbia Property Trust is continuing to offer shares of its common stock to its current investors through its distribution reinvestment plan ("DRP") pursuant to a registration statement on Form S-3. Columbia Property Trust typically invests in high-quality, income-generating office properties leased to creditworthy companies and governmental entities. As of December 31, 2012, Columbia Property Trust had raised gross offering proceeds from the sale of common stock under its public offerings of approximately $6.1 billion. After deductions from such gross offering proceeds for selling commissions and dealer-manager fees of approximately $509.5 million, acquisition fees of approximately $116.8 million, other organization and offering expenses of approximately $75.9 million, and common stock redemptions pursuant to its share redemption program of approximately $654.9 million, Columbia Property Trust had received aggregate net offering proceeds of approximately $4.7 billion. Substantially all of Columbia Property Trust's net offering proceeds have been invested in real estate. Columbia Property Trust's stock is not listed on a public securities exchange. However, Columbia Property Trust's charter requires that in the event Columbia Property Trust's stock is not listed on a national securities exchange by October 2015, Columbia Property Trust must either seek stockholder approval to extend or amend this listing deadline or seek stockholder approval to begin liquidating investments and distributing the resulting proceeds to the stockholders. If Columbia Property Trust seeks stockholder approval to extend or amend this listing date and does not obtain it, Columbia Property Trust would then be required to seek stockholder approval to liquidate. In this circumstance, if Columbia Property Trust seeks and does not obtain approval to liquidate, Columbia Property Trust would not be required to list or liquidate and could continue to operate indefinitely as an unlisted company. |
Assets Held for Sale and Discontinued Operations (Schedule of Revenue and Expenses from Discontinued Operations) (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
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Revenues: | |||
Rental income | $ 30,644 | $ 39,640 | $ 50,932 |
Tenant reimbursements | 1,598 | 2,712 | 6,241 |
Other property income | 0 | 515 | 280 |
Revenues | 32,242 | 42,867 | 57,453 |
Expenses: | |||
Property operating costs | 10,732 | 15,672 | 18,495 |
Asset and property management fees | 2,547 | 2,644 | 4,048 |
Depreciation | 6,200 | 9,073 | 9,945 |
Amortization | 4,585 | 8,919 | 14,032 |
Impairment loss on real estate assets | 18,467 | 5,817 | 0 |
General and administrative | 198 | 428 | 382 |
Total expenses | 42,729 | 42,553 | 46,902 |
Real estate operating (loss) income | (10,487) | 314 | 10,551 |
Other income (expense): | |||
Interest expense | (2,105) | (5,249) | (7,686) |
Interest and other income | 1 | 4 | 816 |
Operating (loss) income from discontinued operations | (12,591) | (4,931) | 3,681 |
Gain (loss) on disposition of assets | 20,117 | 0 | (161) |
Gain on early extinguishment of debt | 0 | 13,522 | 0 |
Gain (loss) on disposition of discontinued operations | 20,117 | 13,522 | (161) |
Income from discontinued operations | $ 7,526 | $ 8,591 | $ 3,520 |