x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
MARYLAND | 37-1470730 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Large Accelerated Filer | x | Accelerated Filer | ¨ | |
Non-Accelerated Filer | ¨ | Smaller Reporting Company | ¨ | |
(Do not check if a smaller reporting company) |
Page | ||
Part I: | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Part II: | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
• | changes in general or regional economic conditions; |
• | the Company’s ability to timely lease or re-lease space at current or anticipated rents; |
• | changes in interest rates; |
• | changes in operating costs; |
• | the Company’s ability to complete dispositions and acquisitions on acceptable terms, or at all; |
• | the Company’s ability to manage its current debt levels and repay or refinance its indebtedness upon maturity or other required payment dates; |
• | the Company’s ability to maintain financial covenant compliance under its debt agreements; |
• | the Company’s ability to maintain effective internal controls over financial reporting and disclosure controls and procedures; |
• | any impact of the informal inquiry initiated in 2012 by the U.S. Securities and Exchange Commission (the “SEC”); |
• | the Company’s ability to obtain debt and/or financing on attractive terms, or at all; and |
• | other risks detailed under “Risk Factors” in Part I, Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2015 and in the other documents the Company files with the SEC, which are accessible on the SEC’s website at www.sec.gov. |
June 30, 2016 | December 31, 2015 | ||||||
(unaudited) | |||||||
Assets: | |||||||
Rental property, net | $ | 1,085,108 | $ | 1,130,266 | |||
Assets held-for-sale | 55,144 | 90,674 | |||||
Cash and cash equivalents | 13,703 | 13,527 | |||||
Escrows and reserves | 2,220 | 2,514 | |||||
Accounts and other receivables, net of allowance for doubtful accounts of $908 and $876, respectively | 6,377 | 9,868 | |||||
Accrued straight-line rents, net of allowance for doubtful accounts of $316 and $105, respectively | 39,482 | 36,888 | |||||
Notes receivable | — | 34,000 | |||||
Investment in affiliates | 48,715 | 48,223 | |||||
Deferred costs, net | 36,416 | 36,537 | |||||
Prepaid expenses and other assets | 4,608 | 6,950 | |||||
Intangible assets, net | 28,273 | 32,959 | |||||
Total assets | $ | 1,320,046 | $ | 1,442,406 | |||
Liabilities: | |||||||
Mortgage loans, net | $ | 309,879 | $ | 307,769 | |||
Unsecured term loan, net | 299,339 | 299,404 | |||||
Unsecured revolving credit facility, net | 144,159 | 116,865 | |||||
Liabilities held-for-sale | 24,493 | 1,513 | |||||
Accounts payable and other liabilities | 38,041 | 47,972 | |||||
Accrued interest | 1,448 | 1,603 | |||||
Rents received in advance | 6,780 | 6,003 | |||||
Tenant security deposits | 5,080 | 4,982 | |||||
Deferred market rent, net | 1,966 | 2,154 | |||||
Total liabilities | 831,185 | 788,265 | |||||
Noncontrolling interests in the Operating Partnership | 26,290 | 28,813 | |||||
Equity: | |||||||
Preferred Shares, $0.001 par value per share, 50,000 shares authorized; | |||||||
7.750% Series A Preferred Shares, $25 per share liquidation preference, 600 and 6,400 shares issued and outstanding, respectively | 15,000 | 160,000 | |||||
Common shares, $0.001 par value per share, 150,000 shares authorized; 58,129 and 57,718 shares issued and outstanding, respectively | 58 | 58 | |||||
Additional paid-in capital | 914,311 | 907,220 | |||||
Noncontrolling interests in a consolidated partnership | 690 | 800 | |||||
Accumulated other comprehensive loss | (2,992 | ) | (2,360 | ) | |||
Dividends in excess of accumulated earnings | (464,496 | ) | (440,390 | ) | |||
Total equity | 462,571 | 625,328 | |||||
Total liabilities, noncontrolling interests and equity | $ | 1,320,046 | $ | 1,442,406 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenues: | |||||||||||||||
Rental | $ | 31,554 | $ | 34,844 | $ | 65,398 | $ | 69,224 | |||||||
Tenant reimbursements and other | 6,939 | 8,195 | 15,792 | 17,664 | |||||||||||
Total revenues | 38,493 | 43,039 | 81,190 | 86,888 | |||||||||||
Operating expenses: | |||||||||||||||
Property operating | 8,543 | 10,661 | 20,080 | 23,775 | |||||||||||
Real estate taxes and insurance | 4,920 | 4,811 | 10,136 | 9,854 | |||||||||||
General and administrative | 4,305 | 4,979 | 8,884 | 10,505 | |||||||||||
Depreciation and amortization | 15,141 | 16,817 | 30,147 | 33,151 | |||||||||||
Impairment of rental property | 2,772 | — | 2,772 | — | |||||||||||
Total operating expenses | 35,681 | 37,268 | 72,019 | 77,285 | |||||||||||
Operating income | 2,812 | 5,771 | 9,171 | 9,603 | |||||||||||
Other expenses (income) | |||||||||||||||
Interest expense | 6,568 | 6,725 | 13,384 | 13,633 | |||||||||||
Interest and other income | (1,101 | ) | (974 | ) | (2,104 | ) | (4,802 | ) | |||||||
Equity in earnings of affiliates | (663 | ) | (456 | ) | (1,219 | ) | (803 | ) | |||||||
Loss on sale of rental property | — | — | 1,155 | — | |||||||||||
Loss on debt extinguishment | — | — | 48 | — | |||||||||||
Total other expenses (income) | 4,804 | 5,295 | 11,264 | 8,028 | |||||||||||
(Loss) income from continuing operations | (1,992 | ) | 476 | (2,093 | ) | 1,575 | |||||||||
Discontinued operations: | |||||||||||||||
Loss from operations | — | — | — | (975 | ) | ||||||||||
Loss on debt extinguishment | — | — | — | (489 | ) | ||||||||||
Gain on sale of rental property | — | — | — | 857 | |||||||||||
Loss from discontinued operations | — | — | — | (607 | ) | ||||||||||
Net (loss) income | (1,992 | ) | 476 | (2,093 | ) | 968 | |||||||||
Less: Net loss attributable to noncontrolling interests | 390 | 114 | 537 | 227 | |||||||||||
Net (loss) income attributable to First Potomac Realty Trust | (1,602 | ) | 590 | (1,556 | ) | 1,195 | |||||||||
Less: Dividends on preferred shares | (794 | ) | (3,100 | ) | (3,042 | ) | (6,200 | ) | |||||||
Less: Issuance costs of redeemed preferred shares | (3,095 | ) | — | (4,999 | ) | — | |||||||||
Net loss attributable to common shareholders | $ | (5,491 | ) | $ | (2,510 | ) | $ | (9,597 | ) | $ | (5,005 | ) | |||
Basic and diluted earnings per common share: | |||||||||||||||
Loss from continuing operations attributable to common shareholders | $ | (0.10 | ) | $ | (0.04 | ) | $ | (0.17 | ) | $ | (0.08 | ) | |||
Loss from discontinued operations attributable to common shareholders | — | — | — | (0.01 | ) | ||||||||||
Net loss attributable to common shareholders | $ | (0.10 | ) | $ | (0.04 | ) | $ | (0.17 | ) | $ | (0.09 | ) | |||
Weighted average common shares outstanding: | |||||||||||||||
Basic and diluted | 57,577 | 58,280 | 57,559 | 58,241 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net (loss) income | $ | (1,992 | ) | $ | 476 | $ | (2,093 | ) | $ | 968 | |||||
Unrealized gain on derivative instruments | 350 | 748 | 505 | 397 | |||||||||||
Unrealized loss on derivative instruments | (148 | ) | — | (1,165 | ) | (725 | ) | ||||||||
Total comprehensive (loss) income | (1,790 | ) | 1,224 | (2,753 | ) | 640 | |||||||||
Net loss attributable to noncontrolling interests | 390 | 114 | 537 | 227 | |||||||||||
Net (gain) loss from derivative instruments attributable to noncontrolling interests | (9 | ) | (32 | ) | 28 | 14 | |||||||||
Comprehensive (loss) income attributable to First Potomac Realty Trust | $ | (1,409 | ) | $ | 1,306 | $ | (2,188 | ) | $ | 881 |
FIRST POTOMAC REALTY TRUST AND SUBSIDIARIES Consolidated Statements of Cash Flows (Unaudited, amounts in thousands) | |||||||
Six Months Ended June 30, | |||||||
2016 | 2015 | ||||||
Cash flows from operating activities: | |||||||
Net (loss) income | $ | (2,093 | ) | $ | 968 | ||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||
Discontinued operations: | |||||||
Gain on sale of rental property | — | (857 | ) | ||||
Depreciation and amortization | — | 1,222 | |||||
Depreciation and amortization | 30,713 | 33,693 | |||||
Stock based compensation | 994 | 1,531 | |||||
Bad debt expense | 371 | 394 | |||||
Amortization of deferred market rent | 155 | 77 | |||||
Amortization of financing costs and discounts | 791 | 665 | |||||
Equity in earnings of affiliates | (1,219 | ) | (803 | ) | |||
Distributions from investments in affiliates | 726 | 632 | |||||
Impairment of rental property | 2,772 | — | |||||
Loss on sale of rental property | 1,155 | — | |||||
Changes in assets and liabilities: | |||||||
Escrows and reserves | 73 | 281 | |||||
Accounts and other receivables | 3,166 | (1,555 | ) | ||||
Accrued straight-line rents | (2,953 | ) | (4,583 | ) | |||
Prepaid expenses and other assets | 1,604 | 1,051 | |||||
Tenant security deposits | (650 | ) | (509 | ) | |||
Accounts payable and accrued expenses | (1,211 | ) | 2,123 | ||||
Accrued interest | (102 | ) | (63 | ) | |||
Rents received in advance | 238 | (1,330 | ) | ||||
Deferred costs | (2,651 | ) | (4,833 | ) | |||
Total adjustments | 33,972 | 27,136 | |||||
Net cash provided by operating activities | 31,879 | 28,104 | |||||
Cash flows from investing activities: | |||||||
Proceeds from sale of rental property | 90,501 | 56,943 | |||||
Principal payments from note receivable | 34,000 | 29,720 | |||||
Change in escrow and reserve accounts | 221 | 176 | |||||
Additions to rental property and furniture, fixtures and equipment | (30,953 | ) | (23,760 | ) | |||
Additions to construction in progress | (10,586 | ) | (7,565 | ) | |||
Contributions to investment in affiliates | — | (405 | ) | ||||
Net cash provided by investing activities | 83,183 | 55,109 | |||||
Cash flows from financing activities: | |||||||
Financing costs | (309 | ) | (108 | ) | |||
Issuance of debt | 201,408 | 26,000 | |||||
Repayments of debt | (151,036 | ) | (84,883 | ) | |||
Dividends to common shareholders | (14,511 | ) | (17,611 | ) | |||
Dividends to preferred shareholders | (4,442 | ) | (6,200 | ) | |||
Distributions to consolidated joint venture partners | — | (96 | ) | ||||
Distributions to noncontrolling interests | (651 | ) | (788 | ) | |||
Redemption of preferred shares | (145,000 | ) | — | ||||
Redemption of operating partnership units | (345 | ) | (134 | ) | |||
Proceeds from stock option exercises | — | 19 | |||||
Net cash used in financing activities | (114,886 | ) | (83,801 | ) | |||
Net increase (decrease) in cash and cash equivalents | 176 | (588 | ) | ||||
Cash and cash equivalents, beginning of period | 13,527 | 13,323 | |||||
Cash and cash equivalents, end of period | $ | 13,703 | $ | 12,735 |
2016 | 2015 | ||||||
Cash paid for interest, net | $ | 12,432 | $ | 12,877 | |||
Non-cash investing and financing activities: | |||||||
Value of common shares retired to settle employee income tax obligations | 137 | 454 | |||||
Change in fair value of the outstanding common Operating Partnership units | (1,072 | ) | (1,783 | ) | |||
Changes in accruals: | |||||||
Additions to rental property and furniture, fixtures and equipment | (1,049 | ) | (967 | ) | |||
Additions to development and redevelopment | (4,853 | ) | 3,266 |
Buildings | 39 years | ||
Building improvements | 5 to 20 years | ||
Furniture, fixtures and equipment | 5 to 15 years | ||
Lease related intangible assets | The term of the lease | ||
Tenant improvements | Shorter of the useful life of the asset or the term of the related lease |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Numerator for basic and diluted earnings per common share: | |||||||||||||||
(Loss) income from continuing operations | $ | (1,992 | ) | $ | 476 | $ | (2,093 | ) | $ | 1,575 | |||||
Loss from discontinued operations | — | — | — | (607 | ) | ||||||||||
Net (loss) income | (1,992 | ) | 476 | (2,093 | ) | 968 | |||||||||
Less: Net loss from continuing operations attributable to noncontrolling interests | 390 | 114 | 537 | 201 | |||||||||||
Less: Net loss from discontinued operations attributable to noncontrolling interests | — | — | — | 26 | |||||||||||
Net (loss) income attributable to First Potomac Realty Trust | (1,602 | ) | 590 | (1,556 | ) | 1,195 | |||||||||
Less: Dividends on preferred shares | (794 | ) | (3,100 | ) | (3,042 | ) | (6,200 | ) | |||||||
Less: Issuance costs of redeemed preferred shares (1) | (3,095 | ) | — | (4,999 | ) | — | |||||||||
Net loss attributable to common shareholders | (5,491 | ) | (2,510 | ) | (9,597 | ) | (5,005 | ) | |||||||
Less: Allocation to participating securities | (53 | ) | (69 | ) | (126 | ) | (142 | ) | |||||||
Net loss attributable to common shareholders | $ | (5,544 | ) | $ | (2,579 | ) | $ | (9,723 | ) | $ | (5,147 | ) | |||
Denominator for basic and diluted earnings per common share: | |||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic and diluted | 57,577 | 58,280 | 57,559 | 58,241 | |||||||||||
Basic and diluted earnings per common share: | |||||||||||||||
Loss from continuing operations attributable to common shareholders | $ | (0.10 | ) | $ | (0.04 | ) | $ | (0.17 | ) | $ | (0.08 | ) | |||
Loss from discontinued operations attributable to common shareholders | — | — | — | (0.01 | ) | ||||||||||
Net loss attributable to common shareholders | $ | (0.10 | ) | $ | (0.04 | ) | $ | (0.17 | ) | $ | (0.09 | ) |
(1) | Represents the original issuance costs associated with the redemption of 3.6 million and 5.8 million 7.750% Series A Cumulative Redeemable Perpetual Preferred Shares during the three and six months ended June 30, 2016, respectively. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||
Stock option awards | 982 | 1,046 | 1,000 | 1,069 | |||||||
Non-vested share awards | 489 | 405 | 505 | 450 | |||||||
1,471 | 1,451 | 1,505 | 1,519 |
June 30, 2016(1) | December 31, 2015(2) | ||||||
Land and land improvements | $ | 279,163 | $ | 280,149 | |||
Buildings and improvements | 800,647 | 793,184 | |||||
Construction in progress | 45,085 | 97,361 | |||||
Tenant improvements | 191,654 | 168,946 | |||||
Furniture, fixtures and equipment | 398 | 410 | |||||
1,316,947 | 1,340,050 | ||||||
Less: accumulated depreciation | (231,839 | ) | (209,784 | ) | |||
$ | 1,085,108 | $ | 1,130,266 |
Reporting Segment | Ownership Interest | Investment at June 30, 2016 | Investment at December 31, 2015 | ||||||||
Prosperity Metro Plaza | Northern Virginia | 51% | $ | 25,678 | $ | 24,909 | |||||
1750 H Street, NW | Washington, D.C. | 50% | 14,870 | 15,168 | |||||||
Aviation Business Park | Maryland | 50% | 5,847 | 5,899 | |||||||
Rivers Park I and II(1) | Maryland | 25% | 2,320 | 2,247 | |||||||
$ | 48,715 | $ | 48,223 |
FPO Ownership | Effective Interest Rate | Maturity Date | Principal Balance at June 30, 2016(1) | Principal Balance at December 31, 2015(1) | ||||||||||
Rivers Park I and II(2) | 25% | LIBOR + 1.90%(3) | September 2017 | $ | 28,000 | $ | 28,000 | |||||||
1750 H Street, NW(4) | 50% | 3.92% | August 2024 | 32,000 | 32,000 | |||||||||
Prosperity Metro Plaza(5) | 51% | 3.91% | December 2029 | 50,000 | 50,000 | |||||||||
Weighted Average / Total | 3.52% | $ | 110,000 | $ | 110,000 |
(1) | Reflects the entire balance of the debt secured by the properties, not our portion of the debt. |
(2) | The loan is repayable in full, without penalty, at any time during the term of the loan. Of the outstanding principal balance, $2.8 million is recourse to us. We believe the fair value of the potential liability to us related to the recourse debt is inconsequential as the likelihood of our need to perform under the debt agreement is remote. |
(3) | At June 30, 2016, LIBOR was 0.47%. All references to LIBOR in the condensed consolidated financial statements refer to one-month LIBOR. |
(4) | The loan requires interest-only payments with a constant interest rate over the life of the loan. The loan is repayable in full, without penalty, on or after August 1, 2021. |
(5) | The loan requires interest-only payments through December 2024, at which time the loan requires principal and interest payments through its maturity date. The loan is repayable in full without penalty on or after June 1, 2029. |
June 30, 2016 | December 31, 2015 | ||||||
Assets: | |||||||
Rental property, net | $ | 191,068 | $ | 193,243 | |||
Cash and cash equivalents | 7,493 | 5,992 | |||||
Other assets | 17,775 | 16,490 | |||||
Total assets | 216,336 | 215,725 | |||||
Liabilities: | |||||||
Mortgage loans, net(1)(2) | 109,322 | 109,273 | |||||
Other liabilities | 6,665 | 7,214 | |||||
Total liabilities | 115,987 | 116,487 | |||||
Net assets | $ | 100,349 | $ | 99,238 |
(1) | Of the total mortgage debt that encumbers our unconsolidated properties, $2.8 million is recourse to us. We believe the fair value of the potential liability to us under this guaranty is inconsequential as the likelihood of our need to perform under the debt agreement is remote. |
(2) | In the first quarter of 2016, we adopted ASU 2015-03, which requires debt issuance costs to be presented on the balance sheet as a direct deduction from the carrying value of the respective debt liability and which is applied on a retrospective basis. Mortgage loans, net at both June 30, 2016 and December 31, 2015 included $0.7 million of unamortized deferred financing costs. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Total revenues | $ | 6,240 | $ | 6,063 | $ | 12,529 | $ | 12,230 | |||||||
Total operating expenses | (1,814 | ) | (1,756 | ) | (3,980 | ) | (3,912 | ) | |||||||
Net operating income | 4,426 | 4,307 | 8,549 | 8,318 | |||||||||||
Depreciation and amortization | (2,006 | ) | (2,287 | ) | (3,972 | ) | (4,536 | ) | |||||||
Interest expense, net | (997 | ) | (975 | ) | (1,989 | ) | (1,948 | ) | |||||||
Net income | $ | 1,423 | $ | 1,045 | $ | 2,588 | $ | 1,834 |
Property | Reporting Segment | Disposition Date | Property Type | Square Feet | Net Sale Proceeds | |||
Storey Park(1) | Washington, D.C. | 7/25/2016 | Land | - | $ | 52,700 | ||
NOVA Non-Core Portfolio(2) | Northern Virginia | 3/25/2016 | Various | 945,745 | 90,501 | |||
Cedar Hill I and III | Northern Virginia | 12/23/2015 | Office | 102,632 | 25,939 | |||
Newington Business Park Center | Northern Virginia | 12/17/2015 | Industrial | 255,600 | 31,409 | |||
Rumsey Center | Maryland | 7/28/2015 | Business Park | 135,015 | 14,956 |
(1) | Storey Park was classified as held-for-sale at June 30, 2016. This development site could have supported 712,000 square feet of rentable square feet. |
(2) | Consists of Van Buren Office Park, Herndon Corporate Center, Windsor at Battlefield, Reston Business Campus, Enterprise Center, Gateway Centre Manassas, Linden Business Center and Prosperity Business Center (collectively, the “NOVA Non-Core Portfolio”). |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenues | $ | — | $ | 5,537 | $ | 3,366 | $ | 11,655 | |||||||
Property operating expenses | (221 | ) | (1,999 | ) | (1,849 | ) | (4,553 | ) | |||||||
Depreciation and amortization | — | (1,880 | ) | (114 | ) | (3,792 | ) | ||||||||
Interest expense | (208 | ) | (203 | ) | (392 | ) | (412 | ) | |||||||
Loss on debt extinguishment | — | — | (48 | ) | — | ||||||||||
Impairment of rental property(1) | (2,772 | ) | — | (2,772 | ) | — | |||||||||
(Loss) income from operations of disposed property | (3,201 | ) | 1,455 | (1,809 | ) | 2,898 | |||||||||
Loss on sale of rental property(2) | — | — | (1,155 | ) | — | ||||||||||
Net (loss) income from continuing operations | $ | (3,201 | ) | $ | 1,455 | $ | (2,964 | ) | $ | 2,898 |
Reporting Segment | Disposition Date | Property Type | Square Feet | Net Sale Proceeds | ||||
Richmond Portfolio(1) | Southern Virginia | 3/19/2015 | Business Park | 827,900 | $ | 53,768 |
2015 | |||
Revenues | $ | 877 | |
Loss from operations, before taxes(1) | (975 | ) | |
Loss on debt extinguishment | (489 | ) | |
Gain on sale of rental property | 857 |
(1) | For the first quarter of 2015, we accelerated $2.0 million of unamortized straight-line rents, deferred rent abatements and leasing commissions related to the sale of the Richmond Portfolio. |
June 30, 2016(1)(2) | December 31, 2015(1)(2) | ||||||
Mortgage loans, net, effective interest rates ranging from 4.22% to 6.01%, maturing at various dates through September 2030(3)(4) | $ | 309,879 | $ | 307,769 | |||
Unsecured term loan, net, effective interest rates ranging from LIBOR plus 1.30% to LIBOR plus 1.60%, with staggered maturity dates ranging from December 2020 to December 2022(3) | 299,339 | 299,404 | |||||
Unsecured revolving credit facility, net, effective interest rate of LIBOR plus 1.35%, maturing December 2019(3) | 144,159 | 116,865 | |||||
Total | $ | 753,377 | $ | 724,038 |
(1) | In the first quarter of 2016, we adopted ASU 2015-03, which requires debt issuance costs to be presented on the balance sheet as a direct deduction from the carrying value of the respective debt liability and is applied on a retrospective basis. The balances include a total of $7.1 million and $8.0 million of unamortized deferred financing costs at June 30, 2016 and December 31, 2015, respectively. |
(2) | Excludes $22.0 million and $0.2 million of mortgage debt that was classified within “Liabilities held-for-sale” on our consolidated balance sheets at June 30, 2016 and December 31, 2015, respectively. See note 7, Dispositions, for further discussion. |
(3) | At June 30, 2016, LIBOR was 0.47%. |
(4) | Includes two construction loans and a land loan. |
Encumbered Property | Contractual Interest Rate | Effective Interest Rate | Maturity Date | June 30, 2016 | December 31, 2015 | |||||||||
Storey Park Land Loan(1)(2) | LIBOR + 2.50% | LIBOR + 2.50% | October 2016 | $ | — | $ | 22,000 | |||||||
Hillside I and II | 5.75% | 4.62% | December 2016 | 12,256 | 12,368 | |||||||||
440 First Street, NW Construction Loan(1)(3) | LIBOR + 2.50% | LIBOR + 2.50% | May 2017 | 32,216 | 32,216 | |||||||||
Redland Corporate Center Buildings II and III | 4.20% | 4.64% | November 2017 | 63,885 | 64,543 | |||||||||
Northern Virginia Construction Loan(1) | LIBOR + 1.85% | LIBOR + 1.85% | September 2019 | 34,583 | 9,176 | |||||||||
840 First Street, NE | 5.72% | 6.01% | July 2020 | 35,550 | 35,888 | |||||||||
Battlefield Corporate Center | 4.26% | 4.40% | November 2020 | 3,441 | 3,526 | |||||||||
1211 Connecticut Avenue, NW | 4.22% | 4.47% | July 2022 | 28,810 | 29,110 | |||||||||
1401 K Street, NW | 4.80% | 4.93% | June 2023 | 35,894 | 36,224 | |||||||||
11 Dupont Circle, NW | 4.05% | 4.22% | September 2030 | 66,780 | 66,780 | |||||||||
Principal balance | 4.33% | (4) | 313,415 | 311,831 | ||||||||||
Unamortized fair value adjustments | 77 | 172 | ||||||||||||
Unamortized deferred financing costs(5) | (3,613 | ) | (4,234 | ) | ||||||||||
Total balance, net | $ | 309,879 | $ | 307,769 | ||||||||||
Debt Classified within Liabilities-Held-for-Sale | ||||||||||||||
Storey Park Land Loan(1)(2) | LIBOR + 2.50% | LIBOR + 2.50% | October 2016 | 22,000 | — | |||||||||
Gateway Centre Manassas Building I(6) | 7.35% | 5.88% | November 2016 | — | 212 | |||||||||
Unamortized fair value adjustments | — | 1 | ||||||||||||
Total balance, net | $ | 22,000 | $ | 213 |
(1) | At June 30, 2016, LIBOR was 0.47%. |
(2) | The Storey Park Land Loan encumbers Storey Park and was entered into by our 97% owned consolidated joint venture that owned Storey Park. At June 30, 2016, $6.0 million of the outstanding principal balance and all of the outstanding accrued interest was recourse to us, per the terms of the loan agreement. The Storey Park Land Loan was classified within “Liabilities held-for-sale” on our June 30, 2016 consolidated balance sheet. In July 2016, our consolidated joint venture sold Storey Park and the Storey Park Land Loan was concurrently repaid with proceeds from the sale. |
(3) | This construction loan (the “440 First Street, NW Construction Loan”) is collateralized by 440 First Street, NW. In May 2016, we extended the maturity date one year to May 30, 2017. We can repay all or a portion of the construction loan, without penalty, at any time during the term of the loan. At June 30, 2016, per the terms of the loan agreement, 50% of the outstanding principal balance and all of the outstanding accrued interest were recourse to us. |
(4) | Represents the weighted average interest rate. |
(5) | In the first quarter of 2016, we adopted ASU 2015-03, which requires debt issuance costs to be presented on the balance sheet as a direct deduction from the carrying value of the respective debt liability and is applied on a retrospective basis. |
(6) | The mortgage loan that encumbered Gateway Centre Manassas, which was included in the NOVA Non-Core Portfolio and sold on March 25, 2016, was classified within “Liabilities held-for-sale” on our December 31, 2015 consolidated balance sheet. In February 2016, we used $0.2 million in available cash to defease the outstanding balance of the mortgage loan. |
Maturity Date | Amount(1) | Interest Rate(2) | |||||
Tranche A | December 2020 | $ | 100,000 | LIBOR, plus 130 basis points | |||
Tranche B | June 2021 | 100,000 | LIBOR, plus 130 basis points | ||||
Tranche C | December 2022 | 100,000 | LIBOR, plus 160 basis points | ||||
Total | $ | 300,000 |
(1) | Excludes $0.7 million of unamortized deferred financing costs that are deducted from our total unsecured term loan balance in the June 30, 2016 consolidated balance sheet in accordance with ASU 2015-03, which we adopted in the first quarter of 2016. |
(2) | At June 30, 2016, LIBOR was 0.47%. The interest rate spread is subject to change based on our maximum total indebtedness ratio. For more information, see note 8(d), Debt – Financial Covenants. |
• | available interest rate hedging may not correspond directly with the interest rate risk for which we seek protection; |
• | the duration of the hedge may not match the duration of the related liability; |
• | the party owing money in the hedging transaction may default on its obligation to pay; and |
• | the credit quality of the party owing money on the hedge may be downgraded to such an extent that it impairs our ability to sell or assign its side of the hedging transaction. |
Maturity Date | Notional Amount | Interest Rate Contractual Component | Fixed LIBOR Interest Rate | ||||||
July 2016(1) | $ | 35,000 | LIBOR | 1.754 | % | ||||
July 2016(1) | 25,000 | LIBOR | 1.763 | % | |||||
July 2017 | 30,000 | LIBOR | 2.093 | % | |||||
July 2017 | 30,000 | LIBOR | 2.093 | % | |||||
July 2017 | 25,000 | LIBOR | 1.129 | % | |||||
July 2017 | 12,500 | LIBOR | 1.129 | % | |||||
July 2017 | 50,000 | LIBOR | 0.955 | % | |||||
July 2018 | 12,500 | LIBOR | 1.383 | % | |||||
July 2018 | 30,000 | LIBOR | 1.660 | % | |||||
July 2018 | 25,000 | LIBOR | 1.394 | % | |||||
July 2018 | 25,000 | LIBOR | 1.135 | % | |||||
Total/Weighted Average | $ | 300,000 | 1.505 | % |
Balance at June 30, 2016 | Level 1 | Level 2 | Level 3 | ||||||||||||
Non-recurring Measurements: | |||||||||||||||
Impaired real estate assets | $ | 55,138 | $ | — | $ | 55,138 | $ | — | |||||||
Recurring Measurements: | |||||||||||||||
Derivative instrument-swap liabilities | 3,158 | — | 3,158 | — | |||||||||||
Balance at December 31, 2015 | Level 1 | Level 2 | Level 3 | ||||||||||||
Non-recurring Measurements: | |||||||||||||||
Impaired real estate assets | $ | 104,625 | $ | — | $ | 90,625 | $ | 14,000 | |||||||
Recurring Measurements: | |||||||||||||||
Derivative instrument-swap liabilities | 2,491 | — | 2,491 | — |
June 30, 2016 | December 31, 2015 | ||||||||||||||
Carrying Value(3) | Fair Value | Carrying Value(3) | Fair Value | ||||||||||||
Financial Assets: | |||||||||||||||
Notes receivable(1) | $ | — | $ | — | $ | 34,000 | $ | 34,000 | |||||||
Financial Liabilities: | |||||||||||||||
Mortgage debt(2) | $ | 335,492 | $ | 324,884 | $ | 312,216 | $ | 298,541 | |||||||
Unsecured term loan | 300,000 | 300,000 | 300,000 | 300,000 | |||||||||||
Unsecured revolving credit facility | 147,000 | 147,000 | 120,000 | 120,000 | |||||||||||
Total | $ | 782,492 | $ | 771,884 | $ | 732,216 | $ | 718,541 |
(1) | The note receivable was prepaid on June 2, 2016. See note 5, Notes Receivable, for more information regarding the prepayment of the note receivable. |
(2) | Includes $22.0 million and $0.2 million of mortgage debt that was classified within “Liabilities held-for-sale” on our consolidated balance sheets at June 30, 2016 and December 31, 2015, respectively. See note 7, Dispositions, for additional information. |
(3) | In the first quarter of 2016, we adopted ASU 2015-03, which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the respective debt liability and which is applied on a retrospective basis. The debt balances exclude a combined total of $7.1 million and $8.0 million of unamortized deferred financing costs at June 30, 2016 and December 31, 2015, respectively. |
First Potomac Realty Trust | Non-redeemable noncontrolling interests | Total Equity | Redeemable noncontrolling interests | ||||||||||||
Balance at December 31, 2015 | $ | 624,528 | $ | 800 | $ | 625,328 | $ | 28,813 | |||||||
Net loss | (1,556 | ) | (110 | ) | (1,666 | ) | (427 | ) | |||||||
Changes in ownership, net | (141,506 | ) | — | (141,506 | ) | (1,417 | ) | ||||||||
Distributions to owners | (18,953 | ) | — | (18,953 | ) | (651 | ) | ||||||||
Other comprehensive loss, net | (632 | ) | — | (632 | ) | (28 | ) | ||||||||
Balance at June 30, 2016 | $ | 461,881 | $ | 690 | $ | 462,571 | $ | 26,290 |
First Potomac Realty Trust | Non-redeemable noncontrolling interests | Total Equity | Redeemable noncontrolling interests | ||||||||||||
Balance at December 31, 2014 | $ | 710,007 | $ | 898 | $ | 710,905 | $ | 33,332 | |||||||
Net income (loss) | 1,195 | (2 | ) | 1,193 | (225 | ) | |||||||||
Changes in ownership, net | 3,219 | — | 3,219 | (1,916 | ) | ||||||||||
Distributions to owners | (23,811 | ) | (96 | ) | (23,907 | ) | (788 | ) | |||||||
Other comprehensive loss, net | (314 | ) | — | (314 | ) | (14 | ) | ||||||||
Balance at June 30, 2015 | $ | 690,296 | $ | 800 | $ | 691,096 | $ | 30,389 |
2016 | 2015 | ||||||
Beginning balance at January 1, | $ | (2,360 | ) | $ | (3,268 | ) | |
Net unrealized loss on derivative instruments | (660 | ) | (328 | ) | |||
Net loss attributable to noncontrolling interests | 28 | 14 | |||||
Ending balance at June 30, | $ | (2,992 | ) | $ | (3,582 | ) |
Non-vested Common Shares | Weighted Average Grant Date Fair Value | |||||
Non-vested at March 31, 2016 | 531,502 | $ | 10.45 | |||
Granted | 36,828 | 8.96 | ||||
Vested | (36,261 | ) | 10.94 | |||
Non-vested at June 30, 2016 | 532,069 | $ | 10.31 |
Three Months Ended June 30, 2016 | |||||||||||||||||||
Washington, D.C. | Maryland | Northern Virginia | Southern Virginia | Consolidated | |||||||||||||||
Number of buildings(1) | 6 | 34 | 14 | 19 | 73 | ||||||||||||||
Square feet(1) | 917,241 | 1,885,759 | 1,716,904 | 2,023,858 | 6,543,762 | ||||||||||||||
Total revenues | $ | 11,580 | $ | 10,900 | $ | 8,707 | $ | 7,306 | $ | 38,493 | |||||||||
Property operating expense | (2,563 | ) | (2,097 | ) | (2,194 | ) | (1,689 | ) | (8,543 | ) | |||||||||
Real estate taxes and insurance | (2,422 | ) | (960 | ) | (943 | ) | (595 | ) | (4,920 | ) | |||||||||
Total property operating income | $ | 6,595 | $ | 7,843 | $ | 5,570 | $ | 5,022 | 25,030 | ||||||||||
Depreciation and amortization expense | (15,141 | ) | |||||||||||||||||
General and administrative | (4,305 | ) | |||||||||||||||||
Impairment of rental property | (2,772 | ) | |||||||||||||||||
Other expenses | (4,804 | ) | |||||||||||||||||
Net loss | $ | (1,992 | ) | ||||||||||||||||
Capital expenditures(2) | $ | 3,287 | $ | 2,402 | $ | 12,297 | $ | 837 | $ | 18,895 | |||||||||
Three Months Ended June 30, 2015 | |||||||||||||||||||
Washington, D.C. | Maryland | Northern Virginia | Southern Virginia | Consolidated | |||||||||||||||
Number of buildings(1) | 6 | 38 | 49 | 19 | 112 | ||||||||||||||
Square feet(1) | 914,912 | 1,997,789 | 3,020,388 | 2,023,927 | 7,957,016 | ||||||||||||||
Total revenues | $ | 11,154 | $ | 11,034 | $ | 13,700 | $ | 7,151 | $ | 43,039 | |||||||||
Property operating expense | (2,987 | ) | (2,645 | ) | (3,191 | ) | (1,838 | ) | (10,661 | ) | |||||||||
Real estate taxes and insurance | (1,956 | ) | (896 | ) | (1,345 | ) | (614 | ) | (4,811 | ) | |||||||||
Total property operating income | $ | 6,211 | $ | 7,493 | $ | 9,164 | $ | 4,699 | 27,567 | ||||||||||
Depreciation and amortization expense | (16,817 | ) | |||||||||||||||||
General and administrative | (4,979 | ) | |||||||||||||||||
Other expenses | (5,295 | ) | |||||||||||||||||
Net income | $ | 476 | |||||||||||||||||
Capital expenditures(2) | $ | 3,983 | $ | 2,153 | $ | 5,037 | $ | 910 | $ | 12,083 |
Six Months Ended June 30, 2016 | |||||||||||||||||||
Washington, D.C. | Maryland | Northern Virginia | Southern Virginia | Consolidated | |||||||||||||||
Total revenues | $ | 22,869 | $ | 22,488 | $ | 21,014 | $ | 14,819 | $ | 81,190 | |||||||||
Property operating expense | (5,532 | ) | (5,329 | ) | (5,514 | ) | (3,705 | ) | (20,080 | ) | |||||||||
Real estate taxes and insurance | (4,794 | ) | (1,889 | ) | (2,240 | ) | (1,213 | ) | (10,136 | ) | |||||||||
Total property operating income | $ | 12,543 | $ | 15,270 | $ | 13,260 | $ | 9,901 | 50,974 | ||||||||||
Depreciation and amortization expense | (30,147 | ) | |||||||||||||||||
General and administrative | (8,884 | ) | |||||||||||||||||
Impairment of rental property | (2,772 | ) | |||||||||||||||||
Other expenses | (11,264 | ) | |||||||||||||||||
Net loss | $ | (2,093 | ) | ||||||||||||||||
Total assets(3) | $ | 503,484 | $ | 335,932 | $ | 298,533 | $ | 163,956 | $ | 1,320,046 | |||||||||
Capital expenditures(2) | $ | 8,198 | $ | 3,361 | $ | 28,054 | $ | 1,734 | $ | 41,539 | |||||||||
Six Months Ended June 30, 2015 | |||||||||||||||||||
Washington, D.C. | Maryland | Northern Virginia | Southern Virginia | Consolidated | |||||||||||||||
Total revenues | $ | 22,186 | $ | 22,739 | $ | 27,815 | $ | 14,148 | $ | 86,888 | |||||||||
Property operating expense | (6,126 | ) | (6,663 | ) | (7,257 | ) | (3,729 | ) | (23,775 | ) | |||||||||
Real estate taxes and insurance | (3,979 | ) | (1,788 | ) | (2,894 | ) | (1,193 | ) | (9,854 | ) | |||||||||
Total property operating income | $ | 12,081 | $ | 14,288 | $ | 17,664 | $ | 9,226 | 53,259 | ||||||||||
Depreciation and amortization expense | (33,151 | ) | |||||||||||||||||
General and administrative | (10,505 | ) | |||||||||||||||||
Other expenses | (8,028 | ) | |||||||||||||||||
Loss from discontinued operations | (607 | ) | |||||||||||||||||
Net income | $ | 968 | |||||||||||||||||
Total assets(3)(4) | $ | 503,259 | $ | 356,736 | $ | 450,324 | $ | 167,835 | $ | 1,532,197 | |||||||||
Capital expenditures(2) | $ | 7,419 | $ | 4,317 | $ | 15,880 | $ | 3,400 | $ | 31,325 |
(1) | Excludes Storey Park from our Washington, D.C. reporting segment, as the property was in development for the periods presented. Storey Park was classified as held-for-sale at June 30, 2016 and was sold on July 25, 2016. On January 1, 2016, we ceased capitalizing expenses associated with the development project as it was being marketed for sale. |
(2) | Capital expenditures for corporate assets not allocated to any of our reportable segments totaled $72 and none for the three months ended June 30, 2016 and 2015, respectively, and $192 and $309 for the six months ended June 30, 2016 and 2015, respectively. |
(3) | Total assets include our investment in properties that are owned through joint ventures that are not consolidated within our condensed consolidated financial statements. For more information on our unconsolidated investments, including location within our reportable segments, see note 6, Investment in Affiliates. Corporate assets not allocated to any of our reportable segments totaled $18,141 and $54,043 at June 30, 2016 and 2015, respectively. |
(4) | Total assets at June 30, 2015 have been restated to exclude a total of $5.3 million of unamortized deferred financing costs that are now deducted from the respective debt liability in accordance with ASU 2015-03, which we adopted in the first quarter of 2016. |
• | maintain and increase occupancy rates and/or increase rental rates at our properties; |
• | sell assets to third parties, or contribute properties to joint ventures, at favorable prices; |
• | develop and redevelop existing assets; |
• | continue to grow our portfolio through acquisitions of new properties, potentially through joint ventures; and |
• | execute initiatives designed to increase balance sheet capacity and expand the potential sources of capital. |
• | Increased occupied percentage to 93.1% from 89.1% at June 30, 2015. |
• | Increased leased percentage to 94.4% from 91.0% at June 30, 2015. |
• | As part of our previously announced plan to dispose of $350 million of assets, our 97% owned consolidated joint venture sold Storey Park, in July, bringing aggregate gross sales proceeds from dispositions identified in the Strategic Plan to $205.9 million. |
• | Consistent with our previously announced strategic plan, we redeemed 3.6 million 7.750% Series A Preferred Shares on April 27, 2016 and the remaining 0.6 million shares on July 6, 2016. |
Property | Buildings | Sub-Market(1) | Square Feet | Annualized Cash Basis Rent(2) | Leased at June 30, 2016 | Occupied at June 30, 2016 | ||||||||||||
Office | ||||||||||||||||||
11 Dupont Circle, NW | 1 | CBD | 150,932 | $ | 5,325 | 95.2 | % | 95.2 | % | |||||||||
440 First Street, NW(3) | 1 | Capitol Hill | 138,603 | 3,799 | 81.5 | % | 69.5 | % | ||||||||||
500 First Street, NW | 1 | Capitol Hill | 129,035 | 4,638 | 100.0 | % | 100.0 | % | ||||||||||
840 First Street, NE | 1 | NoMA | 248,536 | 7,534 | 100.0 | % | 100.0 | % | ||||||||||
1211 Connecticut Avenue, NW | 1 | CBD | 130,852 | 3,920 | 99.2 | % | 99.2 | % | ||||||||||
1401 K Street, NW | 1 | East End | 119,283 | 2,928 | 75.9 | % | 69.3 | % | ||||||||||
Total/Weighted Average | 6 | 917,241 | 28,144 | 93.2 | % | 90.5 | % | |||||||||||
Development Project Held-for-Sale | ||||||||||||||||||
Storey Park(4) | — | NoMA | — | — | ||||||||||||||
Unconsolidated Joint Venture | ||||||||||||||||||
1750 H Street, NW | 1 | CBD | 113,131 | 3,834 | 91.1 | % | 91.1 | % | ||||||||||
Region Total/Weighted Average | 7 | 1,030,372 | $ | 31,978 | 92.9 | % | 90.6 | % |
(1) | CBD refers to Central Business District; NoMA refers to North of Massachusetts Avenue. |
(2) | Annualized cash basis rent at the end of the quarter, which is calculated as the contractual rent due under the terms of the lease, without taking into account rent abatements, is reflected on a triple-net equivalent basis, by deducting operating expense reimbursements that are included, along with base rent, in the contractual payments of our full service leases. This amount does not include items such as rent abatement, unreimbursed expenses, non-recurring revenues and expenses, differences in leased compared with occupied space, and timing differences related to tenant activity. |
(3) | In October 2013, we substantially completed the redevelopment of the property. During the fourth quarter of 2014, we placed all the vacant space into service. |
(4) | Our 97% owned consolidated joint venture sold the property on July 25, 2016 for a contractual purchase price of $54.5 million. |
Property | Buildings | Location | Square Feet | Annualized Cash Basis Rent(1) | Leased at June 30, 2016 | Occupied at June 30, 2016 | ||||||||||||
Office | ||||||||||||||||||
Annapolis Business Center | 2 | Annapolis | 101,113 | $ | 1,707 | 100.0 | % | 100.0 | % | |||||||||
Cloverleaf Center | 4 | Germantown | 173,916 | 2,611 | 89.8 | % | 89.8 | % | ||||||||||
Hillside I and II | 2 | Columbia | 86,966 | 1,003 | 87.3 | % | 87.3 | % | ||||||||||
Metro Park North | 4 | Rockville | 191,211 | 2,927 | 87.3 | % | 87.3 | % | ||||||||||
Redland Corporate Center II and III(2) | 2 | Rockville | 349,267 | 9,690 | 100.0 | % | 100.0 | % | ||||||||||
Redland Corporate Center I(2) | 1 | Rockville | 133,895 | 2,711 | 100.0 | % | 100.0 | % | ||||||||||
TenThreeTwenty | 1 | Columbia | 138,854 | 2,115 | 95.6 | % | 95.6 | % | ||||||||||
Total Office | 16 | 1,175,222 | 22,764 | 95.0 | % | 95.0 | % | |||||||||||
Business Park | ||||||||||||||||||
Ammendale Business Park(3) | 7 | Beltsville | 312,846 | 3,994 | 89.8 | % | 89.8 | % | ||||||||||
Gateway 270 West | 6 | Clarksburg | 252,295 | 3,181 | 92.9 | % | 92.9 | % | ||||||||||
Snowden Center | 5 | Columbia | 145,396 | 2,279 | 99.1 | % | 99.1 | % | ||||||||||
Total Business Park | 18 | 710,537 | 9,454 | 92.8 | % | 92.8 | % | |||||||||||
Total Consolidated | 34 | 1,885,759 | 32,218 | 94.1 | % | 94.1 | % | |||||||||||
Unconsolidated Joint Ventures | ||||||||||||||||||
Aviation Business Park | 3 | Glen Burnie | 120,284 | 1,436 | 79.3 | % | 69.8 | % | ||||||||||
Rivers Park I and II | 6 | Columbia | 307,984 | 3,852 | 86.7 | % | 68.0 | % | ||||||||||
Total Joint Ventures | 9 | 428,268 | 5,288 | 84.6 | % | 68.5 | % | |||||||||||
Region Total/Weighted Average | 43 | 2,314,027 | $ | 37,506 | 92.4 | % | 89.4 | % |
(1) | Annualized cash basis rent at the end of the quarter, which is calculated as the contractual rent due under the terms of the lease, without taking into account rent abatements, is reflected on a triple-net equivalent basis, by deducting operating expense reimbursements that are included, along with base rent, in the contractual payments of our full service leases. This amount does not include items such as rent abatement, unreimbursed expenses, non-recurring revenues and expenses, differences in leased compared with occupied space, and timing differences related to tenant activity. |
(2) | Redland Corporate Center II and III (520 and 530 Gaither Road, respectively) and Redland Corporate Center I (540 Gaither Road) are collectively referred to as Redland Corporate Center. |
(3) | Ammendale Business Park consists of the following properties: Ammendale Commerce Center and Indian Creek Court. |
Property | Buildings | Location | Square Feet | Annualized Cash Basis Rent(1) | Leased at June 30, 2016 | Occupied at June 30, 2016 | ||||||||||||
Office | ||||||||||||||||||
Atlantic Corporate Park | 2 | Sterling | 218,207 | $ | 3,960 | 96.2 | % | 83.5 | % | |||||||||
One Fair Oaks | 1 | Fairfax | 214,214 | 5,707 | 100.0 | % | 100.0 | % | ||||||||||
Three Flint Hill | 1 | Oakton | 180,688 | 3,750 | 99.6 | % | 97.6 | % | ||||||||||
1775 Wiehle Avenue | 1 | Reston | 130,048 | 3,039 | 100.0 | % | 100.0 | % | ||||||||||
Total Office | 5 | 743,157 | 16,456 | 98.8 | % | 94.6 | % | |||||||||||
Business Park | ||||||||||||||||||
Sterling Park Business Center(2) | 7 | Sterling | 471,487 | 4,429 | 94.0 | % | 92.5 | % | ||||||||||
Industrial | ||||||||||||||||||
Plaza 500 | 2 | Alexandria | 502,260 | 4,836 | 91.2 | % | 86.5 | % | ||||||||||
Total Consolidated | 14 | 1,716,904 | 25,721 | 95.2 | % | 91.6 | % | |||||||||||
Development | ||||||||||||||||||
Northern Virginia Build-to-Suit(3) | — | — | — | |||||||||||||||
Unconsolidated Joint Venture | ||||||||||||||||||
Prosperity Metro Plaza | 2 | Merrifield | 326,197 | 8,774 | 100.0 | % | 98.6 | % | ||||||||||
Region Total/Weighted Average | 16 | 2,043,101 | $ | 34,495 | 96.0 | % | 92.7 | % |
(1) | Annualized cash basis rent at the end of the quarter, which is calculated as the contractual rent due under the terms of the lease, without taking into account rent abatements, is reflected on a triple-net equivalent basis, by deducting operating expense reimbursements that are included, along with base rent, in the contractual payments of our full service leases. This amount does not include items such as rent abatement, unreimbursed expenses, non-recurring revenues and expenses, differences in leased compared with occupied space, and timing differences related to tenant activity. |
(2) | Sterling Park Business Center consists of the following properties: 403/405 Glenn Drive, Davis Drive and Sterling Park Business Center. |
(3) | During the third quarter of 2014, we signed a lease for 167,000 square feet at a to-be-constructed building in Northern Virginia on vacant land that we have in our portfolio. We substantially completed construction of the new building in March 2016 and currently expect to complete construction of the tenant improvements in the third quarter of 2016. |
Property | Buildings | Location | Square Feet | Annualized Cash Basis Rent(1) | Leased at June 30, 2016 | Occupied at June 30, 2016 | ||||||||||||
Office | ||||||||||||||||||
Greenbrier Towers | 2 | Chesapeake | 171,766 | $ | 1,767 | 82.9 | % | 82.9 | % | |||||||||
Business Park | ||||||||||||||||||
Battlefield Corporate Center | 1 | Chesapeake | 96,720 | 844 | 100.0 | % | 100.0 | % | ||||||||||
Crossways Commerce Center(2) | 9 | Chesapeake | 1,082,461 | 11,918 | 97.0 | % | 97.0 | % | ||||||||||
Greenbrier Business Park(3) | 4 | Chesapeake | 411,237 | 4,373 | 91.4 | % | 91.4 | % | ||||||||||
Norfolk Commerce Park(4) | 3 | Norfolk | 261,674 | 2,642 | 94.5 | % | 94.5 | % | ||||||||||
Total Business Park | 17 | 1,852,092 | 19,777 | 95.6 | % | 95.6 | % | |||||||||||
Region Total/Weighted Average | 19 | 2,023,858 | $ | 21,544 | 94.5 | % | 94.5 | % |
(1) | Annualized cash basis rent at the end of the quarter, which is calculated as the contractual rent due under the terms of the lease, without taking into account rent abatements, is reflected on a triple-net equivalent basis, by deducting operating expense reimbursements that are included, along with base rent, in the contractual payments of our full service leases. This amount does not include items such as rent abatement, unreimbursed expenses, non-recurring revenues and expenses, differences in leased compared with occupied space, and timing differences related to tenant activity. |
(2) | Crossways Commerce Center consists of the following properties: Coast Guard Building, Crossways Commerce Center I, Crossways Commerce Center II, Crossways Commerce Center IV and 1434 Crossways Boulevard. |
(3) | Greenbrier Business Park consists of the following properties: Greenbrier Technology Center I, Greenbrier Technology Center II and Greenbrier Circle Corporate Center. |
(4) | Norfolk Commerce Park consists of the following properties: Norfolk Business Center, Norfolk Commerce Park II and Gateway II. |
New | Renewal | ||
Tenant improvements (per rentable square foot) | $24.92 | $10.65 | |
Leasing commissions (per rentable square foot) | $14.58 | $3.22 |
Year of Lease Expiration(1) | Number of Leases Expiring | Leased Square Feet | % of Leased Square Feet | Annualized Cash Basis Rent(2) | % of Annualized Cash Basis Rent | Average Base Rent per Square Foot(2)(3) | ||||||||||||||
2016 | 17 | 132,114 | 2.1 | % | $ | 2,223 | 2.1 | % | $ | 16.83 | ||||||||||
2017 | 63 | 998,226 | 16.1 | % | 21,535 | (4) | 20.0 | % | 21.57 | |||||||||||
2018 | 63 | 653,487 | 10.6 | % | 9,533 | 8.9 | % | 14.59 | ||||||||||||
2019 | 60 | 743,624 | 12.0 | % | 10,496 | 9.8 | % | 14.11 | ||||||||||||
2020 | 56 | 961,002 | 15.6 | % | 15,218 | 14.1 | % | 15.84 | ||||||||||||
2021 | 45 | 480,263 | 7.8 | % | 7,078 | 6.6 | % | 14.74 | ||||||||||||
2022 | 38 | 633,211 | 10.3 | % | 8,160 | 7.6 | % | 12.89 | ||||||||||||
2023 | 16 | 479,800 | 7.8 | % | 11,075 | 10.3 | % | 23.08 | ||||||||||||
2024 | 21 | 519,230 | 8.4 | % | 9,492 | 8.8 | % | 18.28 | ||||||||||||
2025 | 15 | 253,943 | 4.1 | % | 4,563 | 4.2 | % | 17.97 | ||||||||||||
Thereafter | 25 | 322,040 | 5.2 | % | 8,254 | 7.6 | % | 25.63 | ||||||||||||
Total / Weighted Average | 419 | 6,176,940 | 100.0 | % | $ | 107,627 | 100.0 | % | $ | 17.42 |
(1) | We classify leases that expired or were terminated on the last day of the quarter as leased square footage since the tenant is contractually entitled to the space. |
(2) | Annualized cash basis rent at the end of the quarter, which is calculated as the contractual rent due under the terms of the lease, without taking into account rent abatements, is reflected on a triple-net equivalent basis, by deducting estimated operating expense reimbursements that are included, along with base rent, in the contractual payments of our full-service leases. This amount does not include items such as rent abatement, unreimbursed expenses, nonrecurring revenues and expenses, differences in leased and occupied space and timing differences related to tenant activity. |
(3) | Represents annualized cash basis rent at June 30, 2016, divided by the square footage of the expiring leases. |
(4) | Includes the new contractual expiration of the Bureau of Prisons’ lease at 500 First Street, NW, which was extended to July 2017, the contractual expiration of CACI International at One Fair Oaks on December 31, 2016, which we present as a 2017 lease expiration as CACI International is entitled to the space on December 31, 2016, and the contractual expiration of the Department of Health and Human Services at Redland Corporate Center on March 22, 2017. |
• | The NOVA Non-Core Portfolio, which was sold on March 25, 2016, and Rumsey Center, Newington Business Park Center, and Cedar Hill I and III, which were all sold in the second half of 2015. For the Results of Operations discussion below with respect to the comparison of the three and six months ended June 30, 2016 and 2015, these eleven properties are collectively referred to as the “Disposed Properties”. The operating results of these properties are reflected in continuing operations in our consolidated statements of operations for each of the periods presented; and |
• | Storey Park, our 97% owned consolidated joint venture, which was in development during 2015. We ceased capitalizing expenses related to Storey Park at the beginning of 2016 as we began marketing the property for sale. At June 30, 2016, we classified Storey Park as held-for-sale and, on July 25, 2016, our consolidated joint venture sold Storey Park. |
Three Months | Six Months | ||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Percent | Percent | ||||||||||||||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | Change | Change | Change | Change | |||||||||||||||||||||
Rental | $ | 31,554 | $ | 34,844 | $ | 65,398 | $ | 69,224 | $ | (3,290 | ) | (9 | )% | $ | (3,826 | ) | (6 | )% | |||||||||||
Tenant reimbursements and other | $ | 6,939 | $ | 8,195 | $ | 15,792 | $ | 17,664 | $ | (1,256 | ) | (15 | )% | $ | (1,872 | ) | (11 | )% |
Three Months | Six Months | ||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Percent | Percent | ||||||||||||||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | Change | Change | Change | Change | |||||||||||||||||||||
Property operating | $ | 8,543 | $ | 10,661 | $ | 20,080 | $ | 23,775 | $ | (2,118 | ) | (20 | )% | $ | (3,695 | ) | (16 | )% | |||||||||||
Real estate taxes and insurance | $ | 4,920 | $ | 4,811 | $ | 10,136 | $ | 9,854 | $ | 109 | 2 | % | $ | 282 | 3 | % |
Three Months | Six Months | |||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Percent | Percent | |||||||||||||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | Change | Change | Change | Change | ||||||||||||||||||||
General and Administrative | $ | 4,305 | $ | 4,979 | $ | 8,884 | $ | 10,505 | $ | (674 | ) | (14 | )% | $ | (1,621 | ) | (15 | )% |
Three Months | Six Months | |||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Percent | Percent | |||||||||||||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | Change | Change | Change | Change | ||||||||||||||||||||
Depreciation and Amortization | $ | 15,141 | $ | 16,817 | $ | 30,147 | $ | 33,151 | $ | (1,676 | ) | (10 | )% | $ | (3,004 | ) | (9 | )% |
Three Months | Six Months | ||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Percent | Percent | ||||||||||||||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | Change | Change | Change | Change | |||||||||||||||||||||
Impairment of Rental Property | $ | 2,772 | $ | — | $ | 2,772 | $ | — | $ | 2,772 | — | % | $ | 2,772 | — | % |
Three Months | Six Months | ||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Percent | Percent | ||||||||||||||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | Change | Change | Change | Change | |||||||||||||||||||||
Interest Expense | $ | 6,568 | $ | 6,725 | $ | 13,384 | $ | 13,633 | $ | (157 | ) | (2 | )% | $ | (249 | ) | (2 | )% |
Three Months | Six Months | |||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Percent | Percent | |||||||||||||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | Change | Change | Change | Change | ||||||||||||||||||||
Interest and Other Income | $ | 1,101 | $ | 974 | $ | 2,104 | $ | 4,802 | $ | 127 | 13 | % | $ | (2,698 | ) | (56 | )% |
Three Months | Six Months | ||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Percent | Percent | ||||||||||||||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | Change | Change | Change | Change | |||||||||||||||||||||
Equity in Earnings of Affiliates | $ | 663 | $ | 456 | $ | 1,219 | $ | 803 | $ | 207 | 45 | % | $ | 416 | 52 | % |
Three Months | Six Months | ||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Percent | Percent | ||||||||||||||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | Change | Change | Change | Change | |||||||||||||||||||||
Loss on Sale of Rental Property | $ | — | $ | — | $ | 1,155 | $ | — | $ | — | — | % | $ | 1,155 | — | % |
Three Months | Six Months | ||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Percent | Percent | ||||||||||||||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | Change | Change | Change | Change | |||||||||||||||||||||
Loss on debt extinguishment | $ | — | $ | — | $ | 48 | $ | — | $ | — | — | % | $ | 48 | — | % |
Three Months | Six Months | |||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Percent | Percent | |||||||||||||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | Change | Change | Change | Change | ||||||||||||||||||||
Loss from Discontinued Operations | $ | — | $ | — | $ | — | $ | (607 | ) | $ | — | — | % | $ | 607 | (100 | )% |
Three Months | Six Months | ||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Percent | Percent | ||||||||||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | Change | Change | Change | Change | |||||||||||||||||
Net loss attributable to Non-controlling Interests | $ | 390 | $ | 114 | $ | 537 | $ | 227 | $ | 276 | NM | $ | 310 | NM |
CONSOLIDATED | ||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||||||
Number of buildings(1) | 73 | 73 | 73 | 73 | ||||||||||||||||||||||||
Reconciliation to net (loss) income: | ||||||||||||||||||||||||||||
Net (loss) income | $ | (1,992 | ) | $ | 476 | $ | (2,093 | ) | $ | 968 | ||||||||||||||||||
Discontinued operations | — | — | — | 607 | ||||||||||||||||||||||||
Total other expenses | 4,804 | 5,295 | 11,264 | 8,028 | ||||||||||||||||||||||||
Impairment of rental property | 2,772 | — | 2,772 | — | ||||||||||||||||||||||||
Depreciation and amortization | 15,141 | 16,817 | 30,147 | 33,151 | ||||||||||||||||||||||||
General and administrative expenses | 4,305 | 4,979 | 8,884 | 10,505 | ||||||||||||||||||||||||
Non-comparable net operating loss (income)(2) | 130 | (3,278 | ) | (1,545 | ) | (6,478 | ) | |||||||||||||||||||||
Same property net operating income | $ | 25,160 | $ | 24,289 | $ | 49,429 | $ | 46,781 | ||||||||||||||||||||
Same property revenues | $ Change | % Change | $ Change | % Change | ||||||||||||||||||||||||
Rental | $ | 31,554 | $ | 30,402 | $ | 1,152 | 3.8 | $ | 62,704 | $ | 60,113 | 2,591 | 4.3 | |||||||||||||||
Tenant reimbursements and other(3) | 6,713 | 6,880 | (167 | ) | (2.4 | ) | 14,709 | 14,727 | (18 | ) | (0.1 | ) | ||||||||||||||||
Total same property revenues | 38,267 | 37,282 | 985 | 2.6 | 77,413 | 74,840 | 2,573 | 3.4 | ||||||||||||||||||||
Same property operating expenses | ||||||||||||||||||||||||||||
Property(4) | 8,416 | 8,757 | (341 | ) | (3.9 | ) | 18,606 | 19,416 | (810 | ) | (4.2 | ) | ||||||||||||||||
Real estate taxes and insurance | 4,691 | 4,236 | 455 | 10.7 | 9,378 | 8,643 | 735 | 8.5 | ||||||||||||||||||||
Total same property operating expenses | 13,107 | 12,993 | 114 | 0.9 | 27,984 | 28,059 | (75 | ) | (0.3 | ) | ||||||||||||||||||
Same property net operating income | $ | 25,160 | $ | 24,289 | $ | 871 | 3.6 | $ | 49,429 | $ | 46,781 | 2,648 | 5.7 | |||||||||||||||
Weighted Average Occupancy For the Three Months Ended June 30, | Weighted Average Occupancy For the Six Months Ended June 30, | |||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||
Same Properties | 92.7 | % | 89.9 | % | 92.6 | % | 89.8 | % |
(1) | Same property comparisons are based upon those consolidated properties owned and in-service for the entirety of the periods presented. Same property results exclude the results of the following non-same property that was owned as of June 30, 2016: Storey Park. |
(2) | Includes property results for: Storey Park, the NOVA Non-Core Portfolio, Cedar Hill I and III, Newington Business Park Center and Rumsey Center. Also, includes an administrative overhead allocation, which was replaced by a normalized management fee for comparative purposes, and termination fee income. |
(3) | Excludes termination fee income for comparative purposes. |
(4) | Same property operating expenses have been adjusted to reflect a normalized management fee in lieu of an administrative overhead allocation for comparative purposes. |
2016 | |||||||||||||||||||
(dollars in thousands) | Washington, D.C. | Maryland | Northern Virginia | Southern Virginia | Consolidated | ||||||||||||||
Number of buildings(1) | 6 | 34 | 14 | 19 | 73 | ||||||||||||||
Same Property | |||||||||||||||||||
Total revenues(2) | $ | 11,539 | $ | 10,757 | $ | 8,707 | $ | 7,264 | $ | 38,267 | |||||||||
Property operating expense(3) | (2,590 | ) | (2,076 | ) | (2,199 | ) | (1,551 | ) | (8,416 | ) | |||||||||
Real estate taxes and insurance | (2,206 | ) | (960 | ) | (934 | ) | (591 | ) | (4,691 | ) | |||||||||
Same Property NOI(1) | $ | 6,743 | $ | 7,721 | $ | 5,574 | $ | 5,122 | 25,160 | ||||||||||
Non-comparable net operating income(4) | (130 | ) | |||||||||||||||||
Depreciation and amortization expense | (15,141 | ) | |||||||||||||||||
General and administrative | (4,305 | ) | |||||||||||||||||
Impairment of rental property | (2,772 | ) | |||||||||||||||||
Total other expenses | (4,804 | ) | |||||||||||||||||
Net loss | $ | (1,992 | ) |
2015 | |||||||||||||||||||
(dollars in thousands) | Washington, D.C. | Maryland | Northern Virginia | Southern Virginia | Consolidated | ||||||||||||||
Number of buildings(1) | 6 | 34 | 14 | 19 | 73 | ||||||||||||||
Same Property | |||||||||||||||||||
Total revenues(2) | $ | 11,104 | $ | 10,384 | $ | 8,643 | $ | 7,151 | $ | 37,282 | |||||||||
Property operating expense(3) | (2,830 | ) | (2,404 | ) | (1,804 | ) | (1,719 | ) | (8,757 | ) | |||||||||
Real estate taxes and insurance | (1,956 | ) | (858 | ) | (812 | ) | (610 | ) | (4,236 | ) | |||||||||
Same Property NOI(1) | $ | 6,318 | $ | 7,122 | $ | 6,027 | $ | 4,822 | 24,289 | ||||||||||
Non-comparable net operating income(4) | 3,278 | ||||||||||||||||||
Depreciation and amortization expense | (16,817 | ) | |||||||||||||||||
General and administrative | (4,979 | ) | |||||||||||||||||
Total other expenses | (5,295 | ) | |||||||||||||||||
Net income | $ | 476 |
(1) | Same property comparisons are based upon those consolidated properties owned and in-service for the entirety of the periods presented. Same property results exclude the results of the following non-same property that was owned as of June 30, 2016: Storey Park. |
(2) | Excludes termination fee income for comparative purposes. |
(3) | Same property operating expenses have been adjusted to reflect a normalized management fee in lieu of an administrative overhead allocation for comparative purposes. |
(4) | Includes property results for: Storey Park, the NOVA Non-Core Portfolio, Cedar Hill I and III, Newington Business Park Center and Rumsey Center. Also, includes an administrative overhead allocation, which was replaced by a normalized management fee for comparative purposes, and termination fee income. |
2016 | |||||||||||||||||||
(dollars in thousands) | Washington, D.C. | Maryland | Northern Virginia | Southern Virginia | Consolidated | ||||||||||||||
Number of buildings(1) | 6 | 34 | 14 | 19 | 73 | ||||||||||||||
Same Property | |||||||||||||||||||
Total revenues(2) | $ | 22,789 | $ | 22,201 | $ | 17,648 | $ | 14,775 | $ | 77,413 | |||||||||
Property operating expense(3) | (5,502 | ) | (5,264 | ) | (4,433 | ) | (3,407 | ) | (18,606 | ) | |||||||||
Real estate taxes and insurance | (4,353 | ) | (1,889 | ) | (1,930 | ) | (1,206 | ) | (9,378 | ) | |||||||||
Same Property NOI(1) | $ | 12,934 | $ | 15,048 | $ | 11,285 | $ | 10,162 | 49,429 | ||||||||||
Non-comparable net operating income(4) | 1,545 | ||||||||||||||||||
Depreciation and amortization expense | (30,147 | ) | |||||||||||||||||
General and administrative | (8,884 | ) | |||||||||||||||||
Impairment of rental property | (2,772 | ) | |||||||||||||||||
Total other expenses | (11,264 | ) | |||||||||||||||||
Net loss | $ | (2,093 | ) |
2015 | |||||||||||||||||||
(dollars in thousands) | Washington, D.C. | Maryland | Northern Virginia | Southern Virginia | Consolidated | ||||||||||||||
Number of buildings(1) | 6 | 34 | 14 | 19 | 73 | ||||||||||||||
Same Property | |||||||||||||||||||
Total revenues(2) | $ | 22,107 | $ | 21,477 | $ | 17,150 | $ | 14,106 | $ | 74,840 | |||||||||
Property operating expense(3) | (5,865 | ) | (6,060 | ) | (4,002 | ) | (3,489 | ) | (19,416 | ) | |||||||||
Real estate taxes and insurance | (3,979 | ) | (1,710 | ) | (1,768 | ) | (1,186 | ) | (8,643 | ) | |||||||||
Same Property NOI(1) | $ | 12,263 | $ | 13,707 | $ | 11,380 | $ | 9,431 | 46,781 | ||||||||||
Non-comparable net operating income(4) | 6,478 | ||||||||||||||||||
Depreciation and amortization expense | (33,151 | ) | |||||||||||||||||
General and administrative | (10,505 | ) | |||||||||||||||||
Total other expenses | (8,028 | ) | |||||||||||||||||
Income from discontinued operations | (607 | ) | |||||||||||||||||
Net income | $ | 968 |
(1) | Same property comparisons are based upon those consolidated properties owned and in-service for the entirety of the periods presented. Same property results exclude the results of the following non-same property that was owned as of June 30, 2016: Storey Park. |
(2) | Excludes termination fee income for comparative purposes. |
(3) | Same property operating expenses have been adjusted to reflect a normalized management fee in lieu of an administrative overhead allocation for comparative purposes. |
(4) | Includes property results for: Storey Park, the NOVA Non-Core Portfolio, Cedar Hill I and III, Newington Business Park Center and Rumsey Center. Also, includes an administrative overhead allocation, which was replaced by a normalized management fee for comparative purposes, and termination fee income. |
Washington, D.C. | |||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||
(dollars in thousands) | 2016 | 2015 | $ Change | % Change | 2016 | 2015 | $ Change | % Change | |||||||||||||||||||||
Number of buildings(1) | 6 | 6 | — | — | 6 | 6 | — | — | |||||||||||||||||||||
Same property revenues | |||||||||||||||||||||||||||||
Rental | $ | 9,085 | $ | 8,812 | $ | 273 | 3.1 | $ | 17,784 | $ | 17,289 | $ | 495 | 2.9 | |||||||||||||||
Tenant reimbursements and other(2) | 2,454 | 2,292 | 162 | 7.1 | 5,005 | 4,818 | 187 | 3.9 | |||||||||||||||||||||
Total same property revenues | 11,539 | 11,104 | 435 | 3.9 | 22,789 | 22,107 | 682 | 3.1 | |||||||||||||||||||||
Same property operating expenses | |||||||||||||||||||||||||||||
Property(3) | 2,590 | 2,830 | (240 | ) | (8.5 | ) | 5,502 | 5,865 | (363 | ) | (6.2 | ) | |||||||||||||||||
Real estate taxes and insurance | 2,206 | 1,956 | 250 | 12.8 | 4,353 | 3,979 | 374 | 9.4 | |||||||||||||||||||||
Total same property operating expenses | 4,796 | 4,786 | 10 | 0.2 | 9,855 | 9,844 | 11 | 0.1 | |||||||||||||||||||||
Same Property NOI: | $ | 6,743 | $ | 6,318 | $ | 425 | 6.7 | $ | 12,934 | $ | 12,263 | $ | 671 | 5.5 | |||||||||||||||
Reconciliation to total property operating income: | |||||||||||||||||||||||||||||
Same Property NOI | $ | 6,743 | $ | 6,318 | $ | 12,934 | $ | 12,263 | |||||||||||||||||||||
Non-comparable net operating income(4) | (148 | ) | (107 | ) | (391 | ) | (182 | ) | |||||||||||||||||||||
Total property operating income | $ | 6,595 | $ | 6,211 | $ | 12,543 | $ | 12,081 | |||||||||||||||||||||
Weighted Average Occupancy For the Three Months Ended June 30, | Weighted Average Occupancy For the Six Months Ended June 30, | ||||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||||||||
Same Properties | 89.5 | % | 88.3 | % | 89.0 | % | 86.2 | % |
(1) | Same property comparisons are based upon those consolidated properties owned and in-service for the entirety of the periods presented. Same property results exclude the results of the following non-same property that was owned as of June 30, 2016: Storey Park. |
(2) | Excludes termination fee income for comparative purposes. |
(3) | Same property operating expenses have been adjusted to reflect a normalized management fee in lieu of an administrative overhead allocation for comparative purposes. |
(4) | Includes property results for: Storey Park. Also, includes an administrative overhead allocation, which was replaced by a normalized management fee for comparative purposes, and termination fee income. |
Maryland | ||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||
(dollars in thousands) | 2016 | 2015 | $ Change | % Change | 2016 | 2015 | $ Change | % Change | ||||||||||||||||||||
Number of buildings(1) | 34 | 34 | — | — | 34 | 34 | — | — | ||||||||||||||||||||
Same property revenues | ||||||||||||||||||||||||||||
Rental | $ | 9,256 | $ | 8,775 | $ | 481 | 5.5 | $ | 18,453 | $ | 17,549 | 904 | 5.2 | |||||||||||||||
Tenant reimbursements and other(2) | 1,501 | 1,609 | (108 | ) | (6.7 | ) | 3,748 | 3,928 | (180 | ) | (4.6 | ) | ||||||||||||||||
Total same property revenues | 10,757 | 10,384 | 373 | 3.6 | 22,201 | 21,477 | 724 | 3.4 | ||||||||||||||||||||
Same property operating expenses | ||||||||||||||||||||||||||||
Property(3) | 2,076 | 2,404 | (328 | ) | (13.6 | ) | 5,264 | 6,060 | (796 | ) | (13.1 | ) | ||||||||||||||||
Real estate taxes and insurance | 960 | 858 | 102 | 11.9 | 1,889 | 1,710 | 179 | 10.5 | ||||||||||||||||||||
Total same property operating expenses | 3,036 | 3,262 | (226 | ) | (6.9 | ) | 7,153 | 7,770 | (617 | ) | (7.9 | ) | ||||||||||||||||
Same Property NOI | $ | 7,721 | $ | 7,122 | $ | 599 | 8.4 | $ | 15,048 | $ | 13,707 | 1,341 | 9.8 | |||||||||||||||
Reconciliation to total property operating income: | ||||||||||||||||||||||||||||
Same Property NOI | $ | 7,721 | $ | 7,122 | $ | 15,048 | $ | 13,707 | ||||||||||||||||||||
Non-comparable net operating income(4) | 122 | 371 | 222 | 581 | ||||||||||||||||||||||||
Total property operating income | $ | 7,843 | $ | 7,493 | $ | 15,270 | $ | 14,288 | ||||||||||||||||||||
Weighted Average Occupancy For the Three Months Ended June 30, | Weighted Average Occupancy For the Six Months Ended June 30, | |||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||
Same Properties | 93.3 | % | 90.4 | % | 93.0 | % | 90.5 | % |
(1) | Same property comparisons are based upon those consolidated properties owned and in-service for the entirety of the periods presented. |
(2) | Excludes termination fee income for comparative purposes. |
(3) | Same property operating expenses have been adjusted to reflect a normalized management fee in lieu of an administrative overhead allocation for comparative purposes. |
(4) | Includes property results for: Rumsey Center. Also, includes an administrative overhead allocation, which was replaced by a normalized management fee for comparative purposes, and termination fee income. |
Northern Virginia | ||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||
(dollars in thousands) | 2016 | 2015 | $ Change | % Change | 2016 | 2015 | $ Change | % Change | ||||||||||||||||||||
Number of buildings(1) | 14 | 14 | — | — | 14 | 14 | — | — | ||||||||||||||||||||
Same property revenues | ||||||||||||||||||||||||||||
Rental | $ | 6,934 | $ | 6,841 | 93 | 1.4 | $ | 13,881 | $ | 13,492 | $ | 389 | 2.9 | |||||||||||||||
Tenant reimbursements and other(2) | 1,773 | 1,802 | (29 | ) | (1.6 | ) | 3,767 | 3,658 | 109 | 3.0 | ||||||||||||||||||
Total same property revenues | 8,707 | 8,643 | 64 | 0.7 | 17,648 | 17,150 | 498 | 2.9 | ||||||||||||||||||||
Same property operating expenses | ||||||||||||||||||||||||||||
Property(3) | 2,199 | 1,804 | 395 | 21.9 | 4,433 | 4,002 | 431 | 10.8 | ||||||||||||||||||||
Real estate taxes and insurance | 934 | 812 | 122 | 15.0 | 1,930 | 1,768 | 162 | 9.2 | ||||||||||||||||||||
Total same property operating expenses | 3,133 | 2,616 | 517 | 19.8 | 6,363 | 5,770 | 593 | 10.3 | ||||||||||||||||||||
Same Property NOI | $ | 5,574 | $ | 6,027 | (453 | ) | (7.5 | ) | $ | 11,285 | $ | 11,380 | $ | (95 | ) | (0.8 | ) | |||||||||||
Reconciliation to total property operating income: | ||||||||||||||||||||||||||||
Same Property NOI | $ | 5,574 | $ | 6,027 | $ | 11,285 | $ | 11,380 | ||||||||||||||||||||
Non-comparable net operating (loss) income(4) | (4 | ) | 3,137 | 1,975 | 6,284 | |||||||||||||||||||||||
Total property operating income | $ | 5,570 | $ | 9,164 | $ | 13,260 | $ | 17,664 | ||||||||||||||||||||
Weighted Average Occupancy For the Three Months Ended June 30, | Weighted Average Occupancy For the Six Months Ended June 30, | |||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||
Same Properties | 91.7 | % | 90.4 | % | 92.0 | % | 91.6 | % |
(1) | Same property comparisons are based upon those consolidated properties owned and in-service for the entirety of the periods presented. |
(2) | Excludes termination fee income for comparative purposes. |
(3) | Same property operating expenses have been adjusted to reflect a normalized management fee in lieu of an administrative overhead allocation for comparative purposes. |
(4) | Includes property results for: the NOVA Non-Core Portfolio, Cedar Hill I and III and Newington Business Park Center. Also, includes an administrative overhead allocation, which was replaced by a normalized management fee for comparative purposes, and termination fee income. |
Southern Virginia | ||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||
(dollars in thousands) | 2016 | 2015 | $ Change | % Change | 2016 | 2015 | $ Change | % Change | ||||||||||||||||||||
Number of buildings(1) | 19 | 19 | — | — | 19 | 19 | — | — | ||||||||||||||||||||
Same property revenues | ||||||||||||||||||||||||||||
Rental | $ | 6,279 | $ | 5,974 | 305 | 5.1 | $ | 12,586 | $ | 11,783 | $ | 803 | 6.8 | |||||||||||||||
Tenant reimbursements and other(2) | 985 | 1,177 | (192 | ) | (16.3 | ) | 2,189 | 2,323 | (134 | ) | (5.8 | ) | ||||||||||||||||
Total same property revenues | 7,264 | 7,151 | 113 | 1.6 | 14,775 | 14,106 | 669 | 4.7 | ||||||||||||||||||||
Same property operating expenses | ||||||||||||||||||||||||||||
Property(3) | 1,551 | 1,719 | (168 | ) | (9.8 | ) | 3,407 | 3,489 | (82 | ) | (2.4 | ) | ||||||||||||||||
Real estate taxes and insurance | 591 | 610 | (19 | ) | (3.1 | ) | 1,206 | 1,186 | 20 | 1.7 | ||||||||||||||||||
Total same property operating expenses | 2,142 | 2,329 | (187 | ) | (8.0 | ) | 4,613 | 4,675 | (62 | ) | (1.3 | ) | ||||||||||||||||
Same Property NOI | $ | 5,122 | $ | 4,822 | 300 | 6.2 | $ | 10,162 | $ | 9,431 | $ | 731 | 7.8 | |||||||||||||||
Reconciliation to total property operating income: | ||||||||||||||||||||||||||||
Same Property NOI | $ | 5,122 | $ | 4,822 | $ | 10,162 | $ | 9,431 | ||||||||||||||||||||
Non-comparable net operating loss(4) | (100 | ) | (123 | ) | (261 | ) | (205 | ) | ||||||||||||||||||||
Total property operating income | $ | 5,022 | $ | 4,699 | $ | 9,901 | $ | 9,226 | ||||||||||||||||||||
Weighted Average Occupancy For the Three Months Ended June 30, | Weighted Average Occupancy For the Six Months Ended June 30, | |||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||
Same Properties | 94.5 | % | 89.8 | % | 94.4 | % | 89.4 | % |
(1) | Same property comparisons are based upon those consolidated properties owned and in-service for the entirety of the periods presented. |
(2) | Excludes termination fee income for comparative purposes. |
(3) | Same property operating expenses have been adjusted to reflect a normalized management fee in lieu of an administrative overhead allocation for comparative purposes. |
(4) | Includes an administrative overhead allocation, which was replaced by a normalized management fee for comparative purposes, and termination fee income. |
• | Improve our portfolio composition by disposing of approximately $350 million of non-core assets. |
• | Address three large upcoming lease expirations at single-tenant buildings through the repositioning of 500 First Street, NW and 540 Gaither Road at Redland Corporate Center, and the future sale of One Fair Oaks. |
• | Strengthen the balance sheet and improve liquidity by reducing leverage, limiting our floating rate debt exposure over time, and extending our debt maturities to better match our capital structure with our assets. |
• | Manage our cost structure by reducing corporate overhead and general and administrative expenses. |
• | Reduce our targeted annualized common share dividend from $0.60 to $0.40. |
Covenants | Quarter Ended June 30, 2016 | Covenant | |
Consolidated Total Leverage Ratio(1) | 47.8% | ≤ 60% | |
Tangible Net Worth(1) | $914,010 | ≥ $601,202 | |
Fixed Charge Coverage Ratio(1) | 2.44x | ≥ 1.50x | |
Maximum Dividend Payout Ratio | 60.8% | ≤ 95% | |
Restricted Indebtedness: | |||
Maximum Secured Debt | 21.9% | ≤ 40% | |
Unencumbered Pool Leverage(1) | 45.1% | ≤ 60% | |
Unencumbered Pool Interest Coverage Ratio(1) | 5.91x | ≥ 1.75x |
(1) | These are the only covenants that apply to our 440 First Street, NW Construction Loan, Northern Virginia Construction Loan and Storey Park Land Loan, which are calculated in accordance with the amended, restated and consolidated unsecured revolving credit facility. |
Six Months Ended June 30, | |||||||||||
(dollars in thousands) | 2016 | 2015 | Change | ||||||||
Net cash provided by operating activities | $ | 31,879 | $ | 28,104 | $ | 3,775 | |||||
Net cash provided by investing activities | 83,183 | 55,109 | 28,074 | ||||||||
Net cash used in financing activities | (114,886 | ) | (83,801 | ) | (31,085 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net loss attributable to common shareholders | $ | (5,491 | ) | $ | (2,510 | ) | $ | (9,597 | ) | $ | (5,005 | ) | |||
Add: Depreciation and amortization: | |||||||||||||||
Rental property | 15,141 | 16,817 | 30,147 | 33,151 | |||||||||||
Discontinued operations | — | — | — | 1,222 | |||||||||||
Unconsolidated joint ventures | 895 | 1,032 | 1,776 | 2,043 | |||||||||||
Impairment of rental property(1) | 2,772 | — | 2,772 | — | |||||||||||
Loss (gain) on sale of rental property(2) | — | — | 1,155 | (857 | ) | ||||||||||
Net loss attributable to noncontrolling interests in the Operating Partnership | (294 | ) | (112 | ) | (427 | ) | (224 | ) | |||||||
FFO available to common shareholders and unitholders | 13,023 | 15,227 | 25,826 | 30,330 | |||||||||||
Dividends on preferred shares | 794 | 3,100 | 3,042 | 6,200 | |||||||||||
Issuance costs of redeemed preferred shares | 3,095 | — | 4,999 | — | |||||||||||
FFO | $ | 16,912 | $ | 18,327 | $ | 33,867 | $ | 36,530 | |||||||
Weighted average common shares and Operating Partnership units outstanding – diluted | 60,230 | 60,982 | 60,232 | 60,969 |
(1) | In the second quarter of 2016, we recorded a $2.8 million impairment related to Storey Park, which was sold on July 25, 2016. |
(2) | Includes gain and losses on the sale of properties that are classified within continuing operations and gains and losses on the sale of properties that are classified within discontinued operations in our consolidated statements of operations. For more information, see note 7, Dispositions. |
Maturity Date | Notional Amount | Interest Rate Contractual Component | Fixed LIBOR Interest Rate | ||||||
July 2016(1) | $ | 35,000 | LIBOR | 1.754 | % | ||||
July 2016(1) | 25,000 | LIBOR | 1.763 | % | |||||
July 2017 | 30,000 | LIBOR | 2.093 | % | |||||
July 2017 | 30,000 | LIBOR | 2.093 | % | |||||
July 2017 | 25,000 | LIBOR | 1.129 | % | |||||
July 2017 | 12,500 | LIBOR | 1.129 | % | |||||
July 2017 | 50,000 | LIBOR | 0.955 | % | |||||
July 2018 | 12,500 | LIBOR | 1.383 | % | |||||
July 2018 | 30,000 | LIBOR | 1.660 | % | |||||
July 2018 | 25,000 | LIBOR | 1.394 | % | |||||
July 2018 | 25,000 | LIBOR | 1.135 | % | |||||
Total/Weighted Average | $ | 300,000 | 1.505 | % |
Period | Total Number of Shares Purchased | Average Price Paid Per Share(1) | Total Number Of Shares Purchased As Part Of Publicly Announced Plans Or Programs | Maximum Number Of Shares That May Yet Be Purchased Under The Plans Or Programs | ||||||||
April 1, 2016 through April 30, 2016 | — | $ | — | — | 4,075,802 | |||||||
May 1, 2016 through May 31, 2016 | — | — | — | 4,075,802 | ||||||||
June 1, 2016 through June 30, 2016 | 1,669 | 9.11 | — | 4,075,802 | ||||||||
Total | 1,669 | $ | 9.11 | — | 4,075,802 |
(1) | The price paid per share is based on the closing price of our common shares as of the date of the determination of the statutory minimum federal income tax. |
No. | Description | |
3.1 | First Amended and Restated Declaration of Trust of the Company (Incorporated by reference to Exhibit 3.1 to the Company’s Registration Statement on Form S-11 (Registration No. 333-107172) filed on October 1, 2003). | |
3.2 | Articles Supplementary designating the Company’s 7.750% Series A Cumulative Redeemable Perpetual Preferred Shares, liquidation preference $25.00 per share, par value $0.001 per share (Incorporated by reference to Exhibit 3.2 to the Company’s Registration Statement on Form 8-A filed on January 18, 2011 (File No. 001-31824)). | |
3.3 | Articles Supplementary establishing additional shares of the Company’s 7.750% Series A Cumulative Redeemable Perpetual Preferred Shares, liquidation preference $25.00 per share, par value $0.001 per share (Incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on March 14, 2012 (File No. 001-31824)). | |
3.4 | Amended and Restated Bylaws of the Company (Incorporated by reference to Exhibit 3.2 to the Company’s Registration Statement on Form S-11 (Registration No. 333-107172) filed on October 1, 2003). | |
3.5 | Second Amended and Restated Bylaws of the Company (Incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K (Registration No. 333-107172) filed on October 29, 2015). | |
4.1 | Form of share certificate evidencing the Company’s Common Shares (Incorporated by reference to Exhibit 4.1 to the Company’s Registration Statement on Form S-3 (Registration No. 333-120821) filed on November 30, 2004). | |
4.2 | Form of share certificate evidencing the Company’s 7.750% Series A Cumulative Redeemable Perpetual Preferred Shares, liquidation preference $25.00 per share, par value $0.001 per share (Incorporated by reference to Exhibit 4.1 to the Company’s Registration Statement on Form 8-A filed on January 18, 2011 (File No. 001-31824)). | |
10.1† | Amendment No. 4 to First Potomac Realty Trust 2009 Equity Compensation Plan, as amended (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on May 25, 2016 (File No. 001-31824)). | |
31.1* | Section 302 Certification of Chief Executive Officer. | |
31.2* | Section 302 Certification of Chief Financial Officer. | |
32.1** | Section 906 Certification of Chief Executive Officer. | |
32.2** | Section 906 Certification of Chief Financial Officer. |
101* | XBRL (Extensible Business Reporting Language). The following materials from the First Potomac Realty Trust’s Quarterly Report on Form 10-Q for the period ended June 30, 2016, formatted in XBRL: (i) Consolidated Balance Sheets as of June 30, 2016 (unaudited) and December 31, 2015; (ii) Consolidated Statements of Operations (unaudited) for the three and six months ended June 30, 2016 and 2015; (iii) Consolidated Statements of Comprehensive (Loss) Income (unaudited) for the three and six months ended June 30, 2016 and 2015; (iv) Consolidated Statements of Cash Flows (unaudited) for the six months ended June 30, 2016 and 2015; and (v) Notes to Condensed Consolidated Financial Statements (unaudited). |
† | Indicates management contract or compensatory plan or arrangement. |
* | Filed herewith. |
** | Furnished herewith. |
FIRST POTOMAC REALTY TRUST | ||||
Date: July 28, 2016 | /s/ Robert Milkovich | |||
Robert Milkovich | ||||
President, Chief Executive Officer and Chief Operating Officer | ||||
Date: July 28, 2016 | /s/ Andrew P. Blocher | |||
Andrew P. Blocher | ||||
Executive Vice President, Chief Financial Officer and Treasurer |
1. | I have reviewed this quarterly report on Form 10-Q of First Potomac Realty Trust; | |
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 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 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 trustees (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. |
Date: July 28, 2016 | /s/ Robert Milkovich | |||
Robert Milkovich | ||||
President, Chief Executive Officer and | ||||
Chief Operating Officer |
1. | I have reviewed this quarterly report on Form 10-Q of First Potomac Realty Trust; | |
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 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 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 trustees (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. |
Date: July 28, 2016 | /s/ Andrew P. Blocher | |||
Andrew P. Blocher | ||||
Executive Vice President, Chief Financial Officer | ||||
and Treasurer |
Date: July 28, 2016 | /s/ Robert Milkovich | |||
Robert Milkovich | ||||
President, Chief Executive Officer and | ||||
Chief Operating Officer |
Date: July 28, 2016 | /s/ Andrew P. Blocher | |||
Andrew P. Blocher | ||||
Executive Vice President, Chief Financial Officer | ||||
and Treasurer |
Document and Entity Information |
6 Months Ended |
---|---|
Jun. 30, 2016
shares
| |
Document And Entity Information [Abstract] | |
Entity Registrant Name | FIRST POTOMAC REALTY TRUST |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2016 |
Document Fiscal Year Focus | 2016 |
Document Fiscal Period Focus | Q2 |
Entity Central Index Key | 0001254595 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 58,129,464 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts, accounts and other receivables | $ 908 | $ 876 |
Allowance for doubtful accounts, accrued straight-line rents | $ 316 | $ 105 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Series A Preferred Shares liquidation preference | $ 25 | $ 25 |
Series A Preferred Shares, shares issued | 600,000 | 6,400,000 |
Series A Preferred Shares, shares outstanding | 600,000.0 | 6,400,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 58,129,000 | 57,718,000 |
Common stock, shares outstanding | 58,129,000 | 57,718,000 |
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Revenues: | ||||
Rental | $ 31,554 | $ 34,844 | $ 65,398 | $ 69,224 |
Tenant reimbursements and other | 6,939 | 8,195 | 15,792 | 17,664 |
Total revenues | 38,493 | 43,039 | 81,190 | 86,888 |
Operating expenses: | ||||
Property operating | 8,543 | 10,661 | 20,080 | 23,775 |
Real estate taxes and insurance | 4,920 | 4,811 | 10,136 | 9,854 |
General and administrative | 4,305 | 4,979 | 8,884 | 10,505 |
Depreciation and amortization | 15,141 | 16,817 | 30,147 | 33,151 |
Impairment of rental property | 2,772 | 0 | 2,772 | 0 |
Total operating expenses | 35,681 | 37,268 | 72,019 | 77,285 |
Operating income | 2,812 | 5,771 | 9,171 | 9,603 |
Other expenses (income) | ||||
Interest expense | 6,568 | 6,725 | 13,384 | 13,633 |
Interest and other income | (1,101) | (974) | (2,104) | (4,802) |
Equity in earnings of affiliates | (663) | (456) | (1,219) | (803) |
Loss on sale of rental property | 0 | 0 | 1,155 | 0 |
Loss on debt extinguishment | 0 | 0 | 48 | 0 |
Total other expenses (income) | 4,804 | 5,295 | 11,264 | 8,028 |
(Loss) income from continuing operations | (1,992) | 476 | (2,093) | 1,575 |
Discontinued operations: | ||||
Loss from operations | 0 | 0 | 0 | (975) |
Loss on debt extinguishment | 0 | 0 | 0 | (489) |
Gain on sale of rental property | 0 | 0 | 0 | 857 |
Loss from discontinued operations | 0 | 0 | 0 | (607) |
Net (loss) income | (1,992) | 476 | (2,093) | 968 |
Less: Net loss attributable to noncontrolling interests | (390) | (114) | (537) | (227) |
Net (loss) income attributable to First Potomac Realty Trust | (1,602) | 590 | (1,556) | 1,195 |
Less: Dividends on preferred shares | (794) | (3,100) | (3,042) | (6,200) |
Less: Issuance costs of redeemed preferred shares | (3,095) | 0 | (4,999) | 0 |
Net loss attributable to common shareholders | $ (5,491) | $ (2,510) | $ (9,597) | $ (5,005) |
Basic and diluted earnings per common share: | ||||
Loss from continuing operations attributable to common shareholders | $ (0.10) | $ (0.04) | $ (0.17) | $ (0.08) |
Loss from discontinued operations attributable to common shareholders | 0.00 | 0.00 | 0.00 | (0.01) |
Net loss attributable to common shareholders | $ (0.10) | $ (0.04) | $ (0.17) | $ (0.09) |
Weighted average common shares outstanding: | ||||
Basic and diluted | 57,577 | 58,280 | 57,559 | 58,241 |
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (1,992) | $ 476 | $ (2,093) | $ 968 |
Unrealized gain on derivative instruments | 350 | 748 | 505 | 397 |
Unrealized loss on derivative instruments | (148) | 0 | (1,165) | (725) |
Total comprehensive (loss) income | (1,790) | 1,224 | (2,753) | 640 |
Net loss attributable to noncontrolling interests | 390 | 114 | 537 | 227 |
Less: Net loss from continuing operations attributable to noncontrolling interests | (390) | (114) | (537) | (201) |
Net (gain) loss from derivative instruments attributable to noncontrolling interests | (9) | (32) | 28 | 14 |
Comprehensive (loss) income attributable to First Potomac Realty Trust | $ (1,409) | $ 1,306 | $ (2,188) | $ 881 |
Consolidated Statements of Cash Flows - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Cash flows from operating activities: | ||
Net (loss) income | $ (2,093) | $ 968 |
Discontinued operations: | ||
Gain on sale of rental property | 0 | (857) |
Depreciation and amortization | 0 | 1,222 |
Depreciation and amortization | 30,713 | 33,693 |
Stock based compensation | 994 | 1,531 |
Bad debt expense | 371 | 394 |
Amortization of deferred market rent | 155 | 77 |
Amortization of financing costs and discounts | 791 | 665 |
Equity in earnings of affiliates | (1,219) | (803) |
Distributions from investments in affiliates | 726 | 632 |
Gain (Loss) on Sale of Properties | 1,155 | 0 |
Impairment of rental property | 2,772 | 0 |
Changes in assets and liabilities: | ||
Escrows and reserves | 73 | 281 |
Accounts and other receivables | 3,166 | (1,555) |
Accrued straight-line rents | (2,953) | (4,583) |
Prepaid expenses and other assets | 1,604 | 1,051 |
Tenant security deposits | (650) | (509) |
Accounts payable and accrued expenses | (1,211) | 2,123 |
Accrued interest | (102) | (63) |
Rents received in advance | 238 | (1,330) |
Deferred costs | (2,651) | (4,833) |
Total adjustments | 33,972 | 27,136 |
Net cash provided by operating activities | 31,879 | 28,104 |
Cash flows from investing activities: | ||
Proceeds from sale of rental property | 90,501 | 56,943 |
Principal payments from note receivable | 34,000 | 29,720 |
Change In Escrow And Reserves | 221 | 176 |
Additions to rental property and furniture, fixtures and equipment | (30,953) | (23,760) |
Additions to construction in progress | (10,586) | (7,565) |
Payments to Acquire Equity Method Investments | 0 | (405) |
Net cash provided by investing activities | 83,183 | 55,109 |
Cash flows from financing activities: | ||
Financing costs | (309) | (108) |
Issuance of debt | 201,408 | 26,000 |
Repayments of debt | (151,036) | (84,883) |
Dividends to common shareholders | (14,511) | (17,611) |
Dividends to preferred shareholders | (4,442) | (6,200) |
Payments of Distributions to Affiliates | 0 | (96) |
Distributions to noncontrolling interests | (651) | (788) |
Redemption of preferred shares | (145,000) | 0 |
Redemption of operating partnership units | (345) | (134) |
Proceeds from stock option exercises | 0 | 19 |
Net cash used in financing activities | (114,886) | (83,801) |
Net increase (decrease) in cash and cash equivalents | 176 | (588) |
Cash and cash equivalents, beginning of period | 13,527 | |
Cash and cash equivalents, end of period | 13,703 | 12,735 |
Cash paid for interest, net | 12,432 | 12,877 |
Non-cash investing and financing activities: | ||
Value of common shares retired to settle employee income tax obligations | 137 | 454 |
Change in fair value of the outstanding common Operating Partnership units | (1,072) | (1,783) |
Changes in accruals: | ||
Additions to rental property and furniture, fixtures and equipment | 1,049 | 967 |
Additions to development and redevelopment | $ 4,853 | $ (3,266) |
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Capitalized interest on indebtedness paid in cash | $ (500) | $ (900) |
Surrendered common shares to satisfy statutory minimum federal income tax obligations | 137 | 454 |
Fair value adjustment, cost basis | 3,200 | |
Change in redemption value, noncontrolling interest | 3,000 | |
Furniture and Fixtures [Member] | ||
Accrued capital expenditure | 8,800 | 8,300 |
Development and Redevelopment [Member] | ||
Accrued capital expenditure | $ 900 | $ 4,600 |
Description of Business |
6 Months Ended |
---|---|
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business First Potomac Realty Trust (the “Company”) is a leader in the ownership, management, redevelopment and development of office and business park properties in the greater Washington, D.C. region. The Company’s focus is owning and operating properties that the Company believes can benefit from its market knowledge and intensive operational skills with a focus on increasing their profitability and value. The Company’s portfolio primarily contains a mix of multi-tenant and single-tenant office properties and business parks. Office properties are single-story and multi-story buildings that are primarily for office use; and business parks contain buildings with office features combined with some industrial property space. The Company separates its properties into four distinct reporting segments, which the Company refers to as the Washington, D.C., Maryland, Northern Virginia and Southern Virginia reporting segments. References in these unaudited condensed consolidated financial statements to “we,” “our,” “us,” the “Company” or “First Potomac,” refer to the Company and its subsidiaries, on a consolidated basis, unless the context indicates otherwise. We conduct our business through our Operating Partnership. We are the sole general partner of, and, as of June 30, 2016, owned 100% of the preferred interest and 95.8% of the common interest in the Operating Partnership. The remaining common interests in the Operating Partnership, which are presented as noncontrolling interests in the Operating Partnership in the accompanying unaudited condensed consolidated financial statements, are limited partnership interests that are owned by unrelated parties. At June 30, 2016, we wholly owned or had a controlling interest in properties totaling 6.5 million square feet and had a noncontrolling ownership interest in properties totaling an additional 0.9 million square feet through five unconsolidated joint ventures. We also owned land that can support 1.3 million square feet of additional development, including 0.7 million square feet related to Storey Park, which was classified as held-for-sale on our consolidated balance sheet at June 30, 2016 and was sold on July 25, 2016. Our consolidated properties were 93.1% occupied by 385 tenants at June 30, 2016. We did not include square footage that was in development or redevelopment, which totaled 0.2 million square feet at June 30, 2016, in our occupancy calculation. We derive substantially all of our revenue from leases of space within our properties. As of June 30, 2016, our largest tenant was the U.S. Government, which accounted for 12.5% of our total annualized cash basis rent, and the U.S. Government combined with government contractors accounted for 24.2% of our total annualized cash basis rent as of June 30, 2016. We operate so as to qualify as a real estate investment trust (“REIT”) for federal income tax purposes. |
Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) Principles of Consolidation Our unaudited condensed consolidated financial statements include our accounts and the accounts of our Operating Partnership, which we consider to be a variable interest entity (“VIE”), and the subsidiaries in which we or our Operating Partnership has a controlling interest, which includes First Potomac Management, LLC, a wholly-owned subsidiary that manages the majority of our properties. All intercompany balances and transactions have been eliminated in consolidation. We have condensed or omitted certain information and note disclosures normally included in financial statements presented in accordance with U.S. generally accepted accounting principles (“GAAP”) in the accompanying unaudited condensed consolidated financial statements. We believe the disclosures made are adequate to prevent the information presented from being misleading. However, the unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2015 and as updated from time to time in our other filings with the SEC. In our opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments and accruals necessary to present fairly our financial position as of June 30, 2016 and the results of our operations, our comprehensive loss and our cash flows for the three and six months ended June 30, 2016 and 2015. Interim results are not necessarily indicative of full-year performance due, in part, to the timing of transactions and the impact of acquisitions and dispositions throughout the year, as well as the seasonality of certain operating expenses such as utilities expense and snow and ice removal costs. (b) Use of Estimates The preparation of unaudited condensed consolidated financial statements in conformity with GAAP requires our management team to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the period. Estimates include the amount of accounts receivable that may be uncollectible, future cash flows, discount and capitalization rate assumptions used to fair value acquired properties and to test impairment of certain long-lived assets and goodwill, derivative valuations, market lease rates, lease-up periods, leasing and tenant improvement costs used to fair value intangible assets acquired and probability weighted cash flow analysis used to fair value contingent liabilities. Actual results could differ from those estimates. (c) Rental Property Rental property is initially recorded at fair value, when acquired in a business combination, or initial cost when constructed or acquired in an asset purchase. Improvements and replacements are capitalized at cost when they extend the useful life, increase capacity or improve the efficiency of the asset. Repairs and maintenance are charged to expense when incurred. Depreciation and amortization are recorded on a straight-line basis over the estimated useful lives of the assets. The estimated useful lives of our assets, by class, are as follows:
We regularly review market conditions for possible impairment of a property’s carrying value. When circumstances such as adverse market conditions, changes in management’s intended holding period or potential sale to a third party indicate a possible impairment of the carrying value of a property, an impairment analysis is performed. We assess potential impairments based on an estimate of the future undiscounted cash flows (excluding interest charges) expected to result from the property’s use and eventual disposition. This estimate is based on projections of future revenues, expenses, capital improvement costs to maintain the operating capacity, expected holding periods and capitalization rates. These cash flows consider factors such as expected market trends and leasing prospects, as well as the effects of leasing demand, competition and other factors. If impairment exists due to the inability to recover the carrying value of a real estate investment based on forecasted undiscounted cash flows, an impairment loss is recorded to the extent that the carrying value exceeds the estimated fair value of the property. Further, we will record an impairment loss if we expect to dispose of a property in the near term, at a price below carrying value. In such an event, we will record an impairment loss based on the difference between a property’s carrying value and its projected sales price less any estimated costs to sell. We will classify a building as held-for-sale in accordance with GAAP in the period in which we have made the decision to dispose of the building, our Board of Trustees or a designated delegate has approved the sale, there is a binding contract pursuant to which the buyer has significant money at risk, or high likelihood a binding agreement to purchase the property will be signed under which the buyer will be required to commit a significant amount of nonrefundable cash, and no significant financing contingencies exist that could cause the transaction not to be completed in a timely manner. We will cease recording depreciation on a building once it has been classified as held-for-sale. We will also determine whether the disposal of a building qualifies as a discontinued operation in accordance with GAAP by assessing whether the disposal of the building, or group of buildings, represents a strategic shift that has, or will have, a major effect on the Company’s operations or financial results. If the building does not qualify as a discontinued operation in accordance with GAAP, we will classify the building’s operating results, together with any impairment charges and any gains or losses on the sale of the building, in continuing operations for all periods presented in our consolidated statements of operations. We will classify the assets and liabilities related to the building as held-for-sale in our consolidated balance sheet for the period the held-for-sale criteria were met. If the building does qualify as a discontinued operation under GAAP, we will classify the building’s operating results, together with any impairment charges and any gains or losses on the sale of the building, in discontinued operations in our consolidated statements of operations for all periods presented and classify the assets and liabilities related to the building as held-for-sale in our consolidated balance sheets for the periods presented. Interest expense is reclassified to discontinued operations only to the extent the disposed or held-for-sale property is secured by specific mortgage debt and the mortgage debt will not be assigned to another property owned by us after the disposition. We recognize the fair value, if sufficient information exists to reasonably estimate the fair value, of any liability for conditional asset retirement obligations when assumed or incurred, which is generally upon acquisition, construction, development or redevelopment and/or through the normal operation of the asset. We capitalize interest costs incurred on qualifying expenditures for real estate assets under development or redevelopment, which include our investments in assets owned through unconsolidated joint ventures that are under development or redevelopment, while being readied for their intended use in accordance with accounting requirements regarding capitalization of interest. We will capitalize interest when qualifying expenditures for the asset have been made, activities necessary to get the asset ready for its intended use are in progress and interest costs are being incurred. Capitalized interest also includes interest associated with expenditures incurred to acquire developable land while development activities are in progress. We also capitalize direct compensation costs of our construction personnel who manage the development and redevelopment projects, but only to the extent the employee’s time can be allocated to a project. Any portion of construction management costs not directly attributable to a specific project are recognized as general and administrative expense in the period incurred. We do not capitalize any other general and administrative costs such as office supplies, office rent expense or an overhead allocation to our development or redevelopment projects. Capitalized compensation costs were immaterial for the three and six months ended June 30, 2016 and 2015. Capitalization of interest ends when the asset is substantially complete and ready for its intended use, but no later than one year from completion of major construction activity, if the property is not occupied. We place redevelopment and development assets into service at this time and commence depreciation upon the substantial completion of tenant improvements and the recognition of revenue. Capitalized interest is depreciated over the useful life of the underlying assets, commencing when those assets are placed into service. (d) Notes Receivable We provide loans to the owners of real estate properties, which can be collateralized by interest in the real estate property. We record these loans as “Notes receivable” in our consolidated balance sheets. The loans will be recorded net of any discount or issuance costs, which will be amortized over the life of the respective note receivable using the effective interest method. We record interest earned from notes receivable and amortization of any discount costs or issuance costs within “Interest and other income” in our consolidated statements of operations. We will establish a provision for anticipated credit losses associated with our notes receivable when we anticipate that we may be unable to collect any contractually due amounts. This determination is based upon such factors as delinquencies, loss experience, collateral quality and current economic or borrower conditions. Our collectability of our notes receivable may be adversely impacted by the financial stability of the Washington, D.C. region and the ability of the underlying assets to keep current tenants or attract new tenants. Estimated losses are recorded as a charge to earnings to establish an allowance for credit losses that we estimate to be adequate based on these factors. During the second quarter of 2016, we received the full repayment of a mezzanine loan with an outstanding principal balance of $34.0 million. We did not have any notes receivable outstanding at June 30, 2016. Based on the review of the above criteria, we did not record an allowance for credit losses for our notes receivable during the six months ended June 30, 2015. (e) Application of New Accounting Standards In January 2016, we adopted Accounting Standards Update No. 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (“ASU 2015-01”), which eliminates the concept of extraordinary items from GAAP and the requirement that an entity separately report extraordinary items in the income statement. ASU 2015-01 also requires that entities continue to evaluate whether items are unusual in nature or infrequent in occurrence for presentation and disclosure purposes. The adoption of ASU 2015-01 did not have a material impact on our unaudited condensed consolidated financial statements and related disclosures. In January 2016, we adopted ASU No. 2015-02, Amendments to the Consolidation Analysis (“ASU 2015-02”). This standard amends certain guidance applicable to the consolidation of various legal entities, including variable interest entities (“VIE”). In determining the method of accounting for partially owned joint ventures, we evaluate the characteristics of associated entities and determine whether an entity is a VIE and, if so, determine which party is the primary beneficiary by analyzing whether we have both the power to direct the entity's significant economic activities and the obligation to absorb potentially significant losses or receive potentially significant benefits. Significant judgments and assumptions inherent in this analysis include the nature of the entity's operations, the entity's financing and capital structure, and contractual relationship and terms, including consideration of governance and decision making rights. We consolidate a VIE when we have determined that we are the primary beneficiary. We evaluated the application of ASU 2015-02 and concluded that no change was required to our accounting for any of our interests in less than wholly owned joint ventures. We continued to consolidate our joint venture in Storey Park, which was sold on July 25, 2016, as described in note 12(b), Noncontrolling Interests in a Consolidated Partnership, as it continued to meet the definition and certain criteria as a VIE in which we were considered to be the primary beneficiary. Under ASU 2015-02, our Operating Partnership now meets the definition of a VIE, we are the primary beneficiary, and, accordingly, we continue to consolidate the Operating Partnership. Our sole significant asset is our investment in the Operating Partnership and, consequently, substantially all of our assets and liabilities represent assets and liabilities of the Operating Partnership. All of our debt is an obligation of the Operating Partnership and may only be settled with the assets of the Operating Partnership. In January 2016, we adopted Accounting Standards Update No. 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”), which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the debt liability. ASU 2015-03 is applied on a retrospective basis, which resulted in the reclassification of our debt issuance costs from previously presented balances. The guidance did not have a material impact on our unaudited condensed consolidated financial statements and related disclosures. In January 2016, we adopted Accounting Standards Update No. 2015-16, Simplifying the Accounting for Measurement-Period Adjustments (“ASU 2015-16”), which eliminates the requirement for an acquirer to retrospectively adjust the financial statements for measurement-period adjustments that occur in periods after the acquisition of a business combination. The acquirer would instead recognize measurement-period adjustments in the reporting period in which the adjustment is identified. The adoption of ASU 2015-16 did not have a material impact on our unaudited condensed consolidated financial statements and related disclosures. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers and will replace most existing revenue recognition guidance when it becomes effective. In July 2015, the FASB deferred by one year the mandatory effective date of ASU 2014-09 from January 1, 2017 to January 1, 2018. Early adoption is permitted, but not prior to the original effective date of January 1, 2017. ASU 2014-09 permits the use of either the retrospective or cumulative effect transition method. We have not yet selected a transition method and are evaluating the impact that ASU 2014-09 will have on our consolidated financial statements and related disclosures. In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”), which requires an entity to evaluate whether conditions or events, in the aggregate, raise substantial doubt about the entity’s ability to continue as a going concern for one year from the date the financial statements are issued or are available to be issued. The guidance will become effective for annual periods ending after December 15, 2016. The adoption of ASU 2014-15 is not expected to have an impact on our consolidated financial statements and related disclosures. In January 2016, the FASB issued Accounting Standards Update No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which requires, among other things, entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value disclosed for financial instruments measured at amortized cost on the balance sheet. ASU 2016-01 is effective for periods beginning after December 15, 2017; early adoption is not permitted. The guidance is not expected to have a material impact on our consolidated financial statements and related disclosures. In February 2016, the FASB issued Accounting Standards Update No. 2016-02 (“ASU 2016-02”), Leases, which requires a lessee to record on the balance sheet a right-of-use asset with a corresponding lease liability created by lease terms of more than 12 months. Additional qualitative and quantitative disclosures will also be required. The guidance will become effective for periods beginning after December 15, 2018 and will be applied using a modified retrospective transition method. We are currently evaluating the impact that ASU 2016-02 will have on our consolidated financial statements and related disclosures. In March 2016, the FASB issued Accounting Standards Update No. 2016-09 (“ASU 2016-09”), Improvements to Employee Share-Based Payment Accounting, which is intended to simplify several aspects of the accounting for employee share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The guidance will become effective for periods beginning after December 15, 2016 and early adoption is permitted. ASU 2016-09 permits the use of the cumulative-effect and prospective methods. While we are currently evaluating the impact of this standard and whether we will elect to early adopt the standard, we do not believe this standard will have a material impact on our consolidated financial statements or related disclosures. (f) Reclassifications Certain prior year asset and debt balances have been reclassified to conform to the current year presentation as a result of adopting ASU 2015-03 in January 2016, which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the debt liability and which is applied on a retrospective basis. See note 2(e), Summary of Significant Accounting Policies - Application of New Accounting Standards for more information. |
Earnings Per Common Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Common Share | Earnings Per Common Share Basic earnings or loss per common share (“EPS”) is calculated by dividing net income or loss attributable to common shareholders by the weighted average common shares outstanding for the periods presented. Diluted EPS is computed after adjusting the basic EPS computation for the effect of dilutive common equivalent shares outstanding during the periods presented, which include stock options and non-vested shares. We apply the two-class method for determining EPS as our outstanding unvested shares with non-forfeitable dividend rights are considered participating securities. Our excess of distributions over earnings related to participating securities is shown as a reduction in total earnings attributable to common shareholders in our computation of EPS. The following table sets forth the computation of our basic and diluted earnings per common share (dollars in thousands, except per share amounts):
In accordance with GAAP regarding earnings per common share, we did not include the following potential weighted average common shares in our calculation of diluted earnings per common share as they are anti-dilutive for the periods presented (amounts in thousands):
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Rental Property |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rental Property | Rental Property Rental property represents buildings and related improvements, net of accumulated depreciation, and developable land that are wholly owned or owned by an entity in which we have a controlling interest. All of our rental properties are located within the greater Washington, D.C. region. Rental property consists of the following (dollars in thousands):
(1) Excludes rental property totaling $55.1 million at June 30, 2016 related to Storey Park, which was classified as held-for-sale at June 30, 2016 and was sold on July 25, 2016. (2) Excludes rental property totaling $90.6 million at December 31, 2015 related to the NOVA Non-Core Portfolio (as defined in note 7, Dispositions), which was classified as held-for-sale at December 31, 2015 and was sold on March 25, 2016. Development and Redevelopment Activity We will place completed development and redevelopment assets in-service upon the earlier of one year after major construction activity is deemed to be substantially complete or upon occupancy. We construct office buildings and/or business parks on a build-to-suit basis or with the intent to lease upon completion of construction. At June 30, 2016, we owned developable land that can accommodate 1.3 million square feet of additional building space, of which 0.7 million is located in the Washington, D.C. reporting segment, 0.1 million in the Maryland reporting segment, 0.4 million in the Northern Virginia reporting segment and 0.1 million in the Southern Virginia reporting segment. The 0.7 million square feet of developable land in the Washington, D.C. reporting segment primarily relates to Storey Park, which was sold on July 25, 2016. During the third quarter of 2014, we signed a lease for 167,000 square feet at a to-be-constructed building (the “NOVA build-to-suit”) in our Northern Virginia reporting segment on vacant land that we had in our portfolio. We substantially completed construction of the new building in March 2016 and expect to complete the construction of the tenant improvements in the third quarter of 2016. At June 30, 2016, none of the completed development space was placed in-service. Our total investment in the development project, excluding tenant improvements and leasing commission costs, was $34.6 million as of June 30, 2016, which related to the completion of the building and included the original cost basis of the applicable portion of the vacant land of $5.2 million. On August 4, 2011, we formed a joint venture, in which we have a 97% interest, with an affiliate of Perseus Realty, LLC to acquire Storey Park in our Washington, D.C. reporting segment. At the time, the site was leased to Greyhound Lines, Inc. (“Greyhound”), which subsequently relocated its operations. Greyhound’s lease expired on August 31, 2013, at which time the property was placed into development with the anticipation of developing a mixed-use project on the 1.6 acre site, which can accommodate up to 712,000 square feet. On July 25, 2016, our consolidated joint venture sold Storey Park for a contractual purchase price of $54.5 million, which generated net proceeds of $52.7 million. In June 2016, we recorded a $2.8 million impairment charge based on the sales price, less estimated selling costs. On January 1, 2016, we ceased capitalizing expenses associated with the development project as we began marketing the property for sale. During the second quarter of 2016, we did not place in-service any completed development or redevelopment space. At June 30, 2016, other than the new building at the NOVA build-to-suit, we had no completed development or redevelopment space that had yet to be placed in-service. |
Notes Receivable |
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Receivables [Abstract] | |
Notes Receivable | Notes Receivable On June 2, 2016, the owners of 950 F Street, NW, a ten-story, 287,000 square-foot office/retail building located in Washington, D.C., prepaid a mezzanine loan that was secured by a portion of the owners’ interest in the property and had an outstanding balance of $34.0 million. The loan required monthly interest-only payments and had a fixed interest rate of 9.75%. The mezzanine loan was scheduled to mature on April 1, 2017 and had been prepayable since December 21, 2015. In addition to the prepayment of the loan's entire principal balance, we received interest through June 24, 2016 and an exit fee upon the loan's prepayment. We recognized $0.2 million of accelerated income in the second quarter of 2016 related to the payment of the exit fee, which is reflected in “Interest and other income” on our consolidated statement of operations for the three and six months ended June 30, 2016. We used the proceeds from the prepayment of the note receivable to redeem the outstanding 0.6 million 7.750% Series A Cumulative Redeemable Perpetual Preferred Shares (the “7.750% Series A Preferred Shares”) and to pay down a portion of our unsecured revolving credit facility. On February 24, 2015, the owners of America’s Square, a 461,000 square foot office complex located in Washington, D.C., prepaid a mezzanine loan that had an outstanding balance of $29.7 million. The loan had a fixed-interest rate of 9.0% and was scheduled to mature on May 1, 2016. We received a yield maintenance payment of $2.4 million with the prepayment of the loan, which is reflected within “Interest and other income” on our consolidated statement of operations for the six months ended June 30, 2015. We recorded interest income related to our notes receivable of $0.8 million and $1.6 million for the three and six months ended June 30, 2016, respectively, and $0.8 million and $2.0 million for the three and six months ended June 30, 2015, respectively, which is included within “Interest and other income” on our consolidated statements of operations. |
Investment in Affiliates |
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Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in Affiliates | Investment in Affiliates We own an interest in several joint ventures that own properties. We do not control the activities that are most significant to the joint ventures. As a result, the assets, the liabilities and the operating results of these noncontrolled joint ventures are not consolidated within our unaudited condensed consolidated financial statements. Our investments in these joint ventures are recorded as “Investment in affiliates” on our consolidated balance sheets. Our investment in affiliates consisted of the following (dollars in thousands):
(1) Rivers Park I and Rivers Park II are owned through two separate joint ventures. The following table provides a summary of the mortgage debt held by our unconsolidated joint ventures (dollars in thousands):
The net assets of our unconsolidated joint ventures consisted of the following (dollars in thousands):
Our share of earnings or losses related to our unconsolidated joint ventures is recorded in our consolidated statements of operations as “Equity in earnings of affiliates.” The following table summarizes the results of operations of our unconsolidated joint ventures for the periods presented, which, due to our varying ownership interests in the joint ventures and the varying operations of the joint ventures, may not be reflective of the amounts recorded in our consolidated statements of operations (dollars in thousands):
We earn various fees from several of our joint ventures, which include management fees, leasing commissions and construction management fees. We recognize fees only to the extent of the third party ownership interest in our unconsolidated joint ventures. We recognized fees from our unconsolidated joint ventures of $0.2 million and $0.4 million for the three and six months ended June 30, 2016, respectively, and $0.2 million and $0.3 million for the three and six months ended June 30, 2015, respectively, which are reflected within “Tenant reimbursements and other revenues” on our consolidated statements of operations. |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dispositions | Dispositions We will report a disposed or held-for-sale property or group of properties in discontinued operations only if the disposal represents a strategic shift that has, or will have, a major effect on our operations and financial results. All other disposed properties will have their operating results reflected within continuing operations on our consolidated statements of operations for all periods presented. We have had, and will have, no continuing involvement with any of our disposed properties subsequent to their disposal. The operations of the disposed properties were not subject to any income based taxes. Other than the properties discussed below in this note 7, Dispositions, we did not dispose of or enter into any agreements to sell any other properties during the three and six months ended June 30, 2016 and 2015. (a) Disposed or Held-for-Sale Properties within Continuing Operations The following table is a summary of property dispositions or held-for-sale properties whose operating results are included in continuing operations in our consolidated statements of operations for the periods presented (dollars in thousands):
On July 25, 2016, we sold Storey Park, a development site located in our Washington, D.C reporting segment that was 97% owned by us through a consolidated joint venture, for net proceeds of $52.7 million. At June 30, 2016, Storey Park met our held-for-sale criteria and, therefore, the assets of the property were classified within “Assets held-for-sale” and the liabilities of the property were classified within “Liabilities-held-for-sale” on our consolidated balance sheet. The $55.1 million of assets classified within “Assets held-for-sale” at June 30, 2016 primarily consisted of the original cost basis of the land, which was $43.3 million. The majority of the costs in excess of the original cost basis related to architectural fees and site preparation costs, as well as capitalized interest and taxes. “Liabilities held-for-sale” at June 30, 2016 consisted of a $22.0 million loan encumbering the land (the “Storey Park Land Loan”) and $2.5 million of other accrued liabilities. We used the proceeds from the sale to prepay, without penalty, the Storey Park Land Loan, to make a distribution to our 3% joint venture partner for their allocable share of the joint venture’s net assets and to pay down a portion of the outstanding balance of our unsecured revolving credit facility. At December 31, 2015, the NOVA Non-Core Portfolio met our held-for-sale criteria and, therefore, the assets of the buildings were classified within “Assets held-for-sale” and the liabilities of the buildings, which included one mortgage that was defeased in March 2016, were classified within “Liabilities held-for-sale” on our consolidated balance sheet. The majority of the assets classified within assets held-for-sale as of December 31, 2015 consisted of $25.2 million in land and land improvements, $88.0 million in buildings and building improvements, $14.4 million in tenant improvements and $37.0 million of accumulated depreciation. Assets held-for-sale also consisted of immaterial amounts of accrued straight-line rents, net of allowance for doubtful accounts, deferred costs, net of accumulated amortization, and prepaid expenses and other assets. The following table summarizes the aggregate results of operations for the disposed or held-for-sale properties that are included in continuing operations for the periods presented (dollars in thousands):
(1) During the second quarter of 2016, we recorded an impairment charge related to Storey Park based on the anticipated sales price less estimated selling costs. The property was sold on July 25, 2016. (2) During the first quarter of 2016, we recorded a $1.2 million loss on the sale of the NOVA Non-Core Portfolio. (b) Discontinued Operations The following table is a summary of property dispositions whose operating results are reflected as discontinued operations in our consolidated statements of operations for the periods presented (dollars in thousands):
With the sale of our Richmond Portfolio, we no longer owned any properties in the Richmond, Virginia area and had strategically exited the Richmond market. As such, the operating results of the Richmond Portfolio are reflected within discontinued operations in our consolidated statement of operations for the six months ended June 30, 2015. No disposed properties qualified as discontinued operations for the three or six months ended June 30, 2016 or the three months ended June 30, 2015. The following table summarizes the results of operations of properties included in discontinued operations for the six months ended June 30, 2015 (dollars in thousands):
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Our debt consisted of the following (dollars in thousands):
(a) Mortgage Loans The following table provides a summary of our mortgage debt, which includes two construction loans and a land loan (dollars in thousands):
Northern Virginia Construction Loan On September 1, 2015, we entered into a construction loan (the “Northern Virginia Construction Loan”) that is collateralized by the NOVA build-to-suit, which is currently in development in Northern Virginia. We completed construction of the new building in the first quarter of 2016 and expect to complete the construction of the tenant improvements in the third quarter of 2016. The loan has a borrowing capacity of up to $43.7 million, of which we borrowed $34.6 million as of June 30, 2016. The loan has a variable interest rate of LIBOR plus a spread of 1.85% and matures on September 1, 2019. We can repay all or a portion of the Northern Virginia Construction Loan, without penalty, at any time during the term of the loan. (b) Unsecured Term Loan and Unsecured Revolving Credit Facility On December 4, 2015, we amended, restated and consolidated our unsecured revolving credit facility and our unsecured term loan. The amendments extended the maturity date of the unsecured term loan’s three $100 million tranches to December 2020, June 2021 and December 2022 from October 2018, October 2019 and October 2020, respectively and the maturity date of the unsecured revolving credit facility to December 2019 from October 2017, with two, six-month extensions at our option. As part of the amendments, we reduced the interest rate spreads on our unsecured term loan and our unsecured revolving credit facility, reduced the capitalization rates used to calculate gross asset value in the financial covenants and amended the covenant package to more closely align with our corporate goals. The table below shows the outstanding balances and the interest rates of the three tranches of the $300.0 million unsecured term loan at June 30, 2016 (dollars in thousands):
In March 2016, we sold the NOVA Non-Core Portfolio for net proceeds of $90.5 million, which we used to temporarily pay down our unsecured revolving credit facility while we gave 30 days’ notice to our preferred shareholders of our intention to redeem an additional 3.6 million 7.750% Series A Preferred Shares (which were subsequently redeemed on April 27, 2016). During the three months ended June 30, 2016, we borrowed $103.0 million under the unsecured revolving credit facility, $90.0 million of which was used to fund the 7.750% Series A Preferred Share redemption that we announced upon the sale of the NOVA Non-Core Portfolio and $13.0 million of which was used to fund construction at the NOVA build-to-suit and for general corporate purposes. During the three months ended June 30, 2016, we repaid $57.0 million of the outstanding balance under the unsecured revolving credit facility. In June 2016, we used $34.0 million of the proceeds from the prepayment of the 950 F Street, NW mezzanine loan to pay down a portion of the outstanding balance of our unsecured revolving credit facility while we gave 30 days’ notice to our preferred shareholders of our intention to redeem the remaining 0.6 million 7.750% Series A Preferred Shares. Also, in June 2016, we used an $18.0 million draw on the Northern Virginia Construction Loan and $5.0 million of available cash to repay a portion of the outstanding balance under the unsecured revolving credit facility. On July 6, 2016, we borrowed $15.0 million under the unsecured revolving credit facility to fund the redemption of the remaining 0.6 million 7.750% Series A Preferred Shares that we had announced upon the prepayment of the 950 F Street, NW mezzanine loan. On July 25, 2016, we repaid $27.0 million of the outstanding balance under the unsecured revolving credit facility using a portion of the proceeds from the Storey Park sale. For the three and six months ended June 30, 2016, our weighted average borrowings under the unsecured revolving credit facility were $162.3 million and $165.9 million, respectively, with a weighted average interest rate of 1.8% and 1.9%, respectively, compared with weighted average borrowings of $149.4 million and $171.3 million for the three and six months ended June 30, 2015, respectively, with a weighted average interest rate of 1.9% for both periods in 2015. Our maximum outstanding borrowings were $204.0 million for both the three and six months ended June 30, 2016, compared with $156.0 million and $218.0 million for the three and six months ended June 30, 2015, respectively. At June 30, 2016, outstanding borrowings under the unsecured revolving credit facility were $147.0 million with a weighted average interest rate of 1.8%. Our outstanding borrowings under the unsecured revolving credit facility do not include $2.8 million of unamortized deferred financing costs that are deducted from the facility’s balance in the June 30, 2016 consolidated balance sheet in accordance with ASU 2015-03, which we adopted in the first quarter of 2016. At June 30, 2016, LIBOR was 0.47% and the applicable spread on our unsecured revolving credit facility was 135 basis points. As of the date of this filing, we had $135.0 million outstanding and $161.1 million available capacity under the unsecured revolving credit facility. We are required to pay a commitment fee at an annual rate of 0.15% of the unused capacity if our usage exceeds 50% of our total capacity under the revolving credit facility, or 0.25% if our usage does not exceed 50%. (c) Interest Rate Swap Agreements At June 30, 2016, we had eleven interest rate swap agreements outstanding that collectively fixed LIBOR, at a weighted average interest rate of 1.5%, on $300.0 million of our variable rate debt. See note 9, Derivative Instruments, for more information about our interest rate swap agreements. In July 2016, two swap agreements that together fixed LIBOR at a weighted average interest rate of 1.8% on $60.0 million of variable rate debt expired. (d) Financial Covenants The credit agreement governing our unsecured revolving credit facility and unsecured term loan contains various restrictive covenants, including with respect to liens, indebtedness, investments, distributions, mergers and asset sales. The agreement also includes customary events of default, the occurrence of which, following any applicable cure period, would permit the lenders to, among other things, declare the principal, accrued interest and other obligations of our Company under the agreement to be immediately due and payable. Our outstanding corporate debt agreements contain specific financial covenants that may impact future financing decisions made by us or may be impacted by a decline in operations. These covenants relate to our allowable leverage, minimum tangible net worth, fixed charge coverage and other financial metrics. As of June 30, 2016, we were in compliance with the covenants of our amended, restated and consolidated unsecured revolving credit facility and unsecured term loan, the 440 First Street, NW Construction Loan, the Northern Virginia Construction Loan and the Storey Park Land Loan. Our continued ability to borrow under the unsecured revolving credit facility is subject to compliance with financial and operating covenants, and a failure to comply with any of these covenants could result in a default under the credit facility. These debt agreements also contain cross-default provisions that would be triggered if we were in default under other loans, including mortgage loans, in excess of certain amounts. In the event of a default, the lenders could accelerate the timing of payments under the debt obligations and we may be required to repay such debt with capital from other sources, which may not be available on attractive terms, or at all, which would have a material adverse effect on our liquidity, financial condition, results of operations and ability to make distributions to our shareholders. Our unsecured revolving credit facility and unsecured term loan are subject to interest rate spreads that float based on the quarterly measurement of our maximum consolidated total indebtedness to gross asset value ratio. Based on our leverage ratio at June 30, 2016, beginning on August 14, 2016, the applicable interest rate spreads on the unsecured revolving credit facility and tranches A and B of the unsecured term loan will increase by 15 basis points and the applicable interest rate spread on tranche C of the unsecured term loan will increase by 20 basis points. |
Derivative Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | Derivative Instruments We are exposed to certain risks arising from business operations and economic factors. We use derivative financial instruments to manage exposures that arise from business activities in which our future exposure to interest rate fluctuations is unknown. The objective in the use of an interest rate derivative is to add stability to interest expenses and manage exposure to interest rate changes. We do not use derivatives for trading or speculative purposes and we intend to enter into derivative agreements only with counterparties that we believe have a strong credit rating to mitigate the risk of counterparty default or insolvency. No hedging activity can completely insulate us from the risks associated with changes in interest rates. Moreover, interest rate hedging could fail to protect us or adversely affect us because, among other things:
We enter into interest rate swap agreements to hedge our exposure on our variable rate debt against fluctuations in prevailing interest rates. The interest rate swap agreements fix LIBOR to a specified interest rate; however, the swap agreements do not affect the contractual spreads associated with each variable debt instrument’s applicable interest rate. At June 30, 2016, we had eleven interest rate swap agreements outstanding that collectively fixed LIBOR, at a weighted average interest rate of 1.5%, on $300.0 million of our variable rate debt. Our interest rate swap agreements are summarized below (dollars in thousands):
(1) The swap agreements expired on July 18, 2016. Our interest rate swap agreements are designated as cash flow hedges and we record the effective portion of any unrealized gains associated with the change in fair value of the swap agreements within “Accumulated other comprehensive loss” and “Prepaid expenses and other assets” and the effective portion of any unrealized losses within “Accumulated other comprehensive loss” and “Accounts payable and other liabilities” on our consolidated balance sheets. We record our proportionate share of any unrealized gains or losses on our cash flow hedges associated with our unconsolidated joint ventures within “Accumulated other comprehensive loss” and “Investment in affiliates” on our consolidated balance sheets. We record any gains or losses incurred as a result of each interest rate swap agreement’s fixed rate deviating from our respective loan’s contractual rate within “Interest expense” on our consolidated statements of operations. We did not have any material ineffectiveness associated with our cash flow hedges during the six months ended June 30, 2016 and 2015. Amounts reported in accumulated other comprehensive loss related to derivatives will be reclassified to “Interest expense” on our consolidated statements of operations as interest payments are made on our variable-rate debt. We reclassified accumulated other comprehensive losses as an increase to interest expense of $0.8 million and $1.6 million for the three and six months ended June 30, 2016, respectively, and $1.0 million and $2.0 million for the three and six months ended June 30, 2015, respectively. As of June 30, 2016, we estimated that $2.3 million of our accumulated other comprehensive loss will be reclassified as an increase to interest expense over the following twelve months. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Our application of GAAP outlines a valuation framework and creates a fair value hierarchy, which distinguishes between assumptions based on market data (observable inputs) and a reporting entity’s own assumptions about market data (unobservable inputs). The required disclosures increase the consistency and comparability of fair value measurements and the related disclosures. Fair value is identified, under the standard, as the price that would be received to sell an asset or paid to transfer a liability between willing third parties at the measurement date (an exit price). In accordance with GAAP, certain assets and liabilities must be measured at fair value, and we provide the necessary disclosures that are required for items measured at fair value as outlined in the accounting requirements regarding fair value. Financial assets and liabilities, as well as those non-financial assets and liabilities requiring fair value measurement, are measured using inputs from three levels of the fair value hierarchy. The three levels are as follows: Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access at the measurement date. An active market is defined as a market in which transactions for the assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 - Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active (markets with few transactions), inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs derived principally from or corroborated by observable market data correlation or other means (market corroborated inputs). Level 3 - Unobservable inputs, only used to the extent that observable inputs are not available, reflect our assumptions about the pricing of an asset or liability. In accordance with accounting provisions and the fair value hierarchy described above, the following table shows the fair value of our consolidated assets and liabilities that are measured on a non-recurring and recurring basis as of June 30, 2016 and December 31, 2015 (dollars in thousands):
We did not re-measure or complete any transactions involving non-financial assets or non-financial liabilities that are measured at fair value on a recurring basis during the six months ended June 30, 2016 and 2015. Also, no transfers into or out of fair value measurement levels for assets or liabilities that are measured on a recurring basis occurred during the six months ended June 30, 2016 and 2015. Impairment of Rental Property We regularly review market conditions for possible impairment of a property’s carrying value. When circumstances such as adverse market conditions, changes in management’s intended holding period or potential sale to a third party indicate a possible impairment of a property, an impairment analysis is performed. On July 25, 2016, we sold Storey Park, a development site located in our Washington, D.C. reporting segment. The property was classified as held-for-sale on our consolidated balance sheet at June 30, 2016, and during the second quarter of 2016, we recorded an impairment charge of $2.8 million related to the property based on the anticipated sales price, less estimated selling costs. See note 7, Dispositions, for more information. In March 2016, we sold our NOVA Non-Core Portfolio, which is located in our Northern Virginia reporting segment. Based on the anticipated sales price, less estimated selling costs, we recorded an impairment charge of $26.9 million for the fourth quarter of 2015, and we recorded an additional loss on the sale of $1.2 million in the first quarter of 2016. See note 7, Dispositions, for more information. Our One Fair Oaks office property, which is located in our Northern Virginia reporting segment, is currently fully leased to CACI International. We expect CACI International to vacate the property upon their lease expiration in December 2016, and, as a result of the anticipated loss of cash flow and the anticipated challenges re-leasing the property, we evaluated the recoverability of the property's carry value at December 31, 2015, which coincided with our review of year-end results and assessment of overall market conditions. Based on an analysis of the undiscounted net cash flows from One Fair Oaks, we concluded that the carrying value of the property was not recoverable and recorded an impairment charge of $33.9 million to bring the property to its estimated fair value in the fourth quarter of 2015. We estimated the fair value of the property using a discounted cash flow analysis and comparable sales information. In our analysis, we estimated the future net cash flows from the property using an income-based valuation of the building as vacant. The expected useful life and holding period was based on the age of the property and our current plan for the property as well as experience with similar properties. The capitalization rate was estimated using rates from external market research and comparable market transactions, and the discount rate was estimated using a risk adjusted rate of return. Interest Rate Derivatives At June 30, 2016, we had hedged $300.0 million of our variable rate debt through eleven interest rate swap agreements. See note 9, Derivative Instruments, for more information about our interest rate swap agreements. The interest rate derivatives are fair valued based on prevailing market yield curves on the measurement date and also incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting any applicable credit enhancements, such as collateral postings, thresholds, mutual inputs and guarantees. We use a third party to assist in valuing our interest rate swap agreements. A daily “snapshot” of the market is taken to obtain close of business rates. The snapshot includes over 7,500 rates including LIBOR fixings, Eurodollar futures, swap rates, exchange rates, treasuries, etc. This market data is obtained via direct feeds from Bloomberg and Reuters and from Inter-Dealer Brokers. The selected rates are compared to their historical values. Any rate that has changed by more than normal mean and related standard deviation would be considered an outlier and flagged for further investigation. The rates are then compiled through a valuation process that generates daily valuations, which are used to value our interest rate swap agreements. Our interest rate swap derivatives are effective cash flow hedges and the effective portion of the change in fair value is recorded in the equity section of our consolidated balance sheets as “Accumulated other comprehensive loss.” Financial Instruments The carrying amounts of cash equivalents, accounts and other receivables, accounts payable and other liabilities, with the exception of any items listed above, approximate their fair values due to their short-term maturities. We determine the fair value of our notes receivable and debt instruments by discounting future contractual principal and interest payments using prevailing market rates for securities with similar terms and characteristics at the balance sheet date. We deem the fair value measurement of our debt instruments as a Level 2 measurement as we use quoted interest rates for similar debt instruments to value our debt instruments. We used quoted market interest rates for similar notes to value our notes receivable at December 31, 2015, which we considered a Level 2 measurement as we do not believe notes receivable trade in an active market. The carrying amount and estimated fair value of our notes receivable and debt instruments are as follows (dollars in thousands):
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Equity | Equity In December 2015, our Board of Trustees authorized the redemption of some or all of our 6.4 million outstanding shares of our 7.750% Series A Preferred Shares. On January 19, 2016 and April 27, 2016, we used proceeds from dispositions to redeem 2.2 million shares and 3.6 million shares, respectively, of our 7.750% Series A Preferred Shares at a redemption price of $25.00 per share, plus accrued dividends up to the applicable dates of redemption. On July 6, 2016, we used proceeds from the repayment of the 950 F Street, NW mezzanine loan to redeem the remaining 0.6 million outstanding shares of our 7.750% Series A Preferred Shares at a redemption price of $25.00 per share, plus accrued dividends up to the applicable dates of redemption. Prior to the July 6, 2016 preferred share redemption, we were required to give the preferred shareholders 30 days’ written notice of our intent to redeem our 7.750% Series A Preferred Shares, in whole or in part. During the 30-day period from the date of notification to our preferred shareholders to the redemption of our remaining 0.6 million 7.750% Series A Preferred Shares, the net proceeds from 950 F Street, NW loan prepayment were used to temporarily pay down a portion of the balance of our unsecured revolving credit facility. The 7.750% Series A Preferred Shares (NYSE: FPO-PA) were delisted from trading on the New York Stock Exchange upon redemption of the remaining 0.6 million outstanding shares on July 6, 2016. In July 2015, our Board of Trustees authorized a share repurchase program that allows us to acquire up to five million of our common shares of beneficial interest from time to time through July 2016 in open market transactions at prevailing prices or in negotiated private transactions. We are not obligated to acquire any particular amount of common shares and the share repurchase program may be suspended by the Board of Trustees at any time. During 2015, we repurchased 924,198 shares at a weighted average share price of $10.99 for a total purchase price of $10.2 million, utilizing proceeds from dispositions. During the six months ended June 30, 2016, we did not repurchase any common shares under the share repurchase program. No common shares were repurchased during July 2016, and as of the date of this filing, we are no longer authorized to repurchase any additional common shares under the previously authorized share repurchase program. On July 25, 2016, we declared a dividend of $0.10 per common share, equating to an annualized dividend of $0.40 per common share. The dividend will be paid on August 15, 2016 to common shareholders of record as of August 8, 2016. Dividends on non-vested share awards that are expected to vest are recorded as a reduction of shareholders’ equity and dividends on non-vested share awards that are not expected to vest are recorded as compensation expense. Any adjustments to the vesting estimates are recorded in the current period. For each dividend paid by us on our common shares, the Operating Partnership distributes an equivalent distribution on our common Operating Partnership units. On April 26, 2016, we declared a dividend of $0.10 per common share, equating to an annualized dividend of $0.40 per common share. The dividend was paid on May 16, 2016 to common shareholders of record as of May 9, 2016. Our unsecured revolving credit facility and unsecured term loan, the 440 First Street, NW Construction Loan, the Northern Virginia Construction Loan and the Storey Park Land Loan contain certain restrictions that include, among other things, requirements to maintain specified coverage ratios and other financial covenants, which may limit our ability to make distributions to our common and preferred shareholders, except for distributions required to maintain our qualification as a REIT. As a result of the redemption feature of the Operating Partnership units, the noncontrolling interests associated with the Operating Partnership are recorded outside of permanent equity. Our equity and redeemable noncontrolling interests are as follows (dollars in thousands):
A summary of our accumulated other comprehensive loss is as follows (dollars in thousands):
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Noncontrolling Interests |
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Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests (a) Noncontrolling Interests in the Operating Partnership Noncontrolling interests relate to the common interests in the Operating Partnership not owned by us. Interests in the Operating Partnership are owned by limited partners who contributed buildings and other assets to the Operating Partnership in exchange for common Operating Partnership units. Limited partners have the right to tender their units for redemption in exchange for, at our option, our common shares on a one-for-one basis or cash based on the fair value of our common shares at the date of redemption. Unitholders receive a distribution per unit equivalent to the dividend per common share. Differences between amounts paid to redeem noncontrolling interests and their carrying values are charged or credited to equity. As a result of the redemption feature of the Operating Partnership units, the noncontrolling interests are recorded outside of permanent equity. Noncontrolling interests are presented at the greater of their fair value or their cost basis, which is comprised of their fair value at issuance, subsequently adjusted for the noncontrolling interests’ share of net income or losses available to common shareholders, other comprehensive income or losses, distributions received or additional contributions. We account for issuances of common Operating Partnership units individually, which could result in some portion of our noncontrolling interests being carried at fair value with the remainder being carried at historical cost. Based on the closing price of our common shares at June 30, 2016, the cost to acquire, through cash purchase or issuance of our common shares, all of the outstanding common Operating Partnership units not owned by us was $23.7 million. At June 30, 2016 and December 31, 2015, we recorded adjustments of $3.2 million and $4.0 million, respectively, to present certain common Operating Partnership units at the greater of their carrying value or redemption value. At June 30, 2016, 2,577,478 of the total common Operating Partnership units, or 4.2%, were not owned by us. During the six months ended June 30, 2016 and 2015, 41,591 and 11,508 common Operating Partnership units, respectively, were redeemed with available cash. No common Operating Partnership units were redeemed for common shares during the six months ended June 30, 2016 or 2015. (b) Noncontrolling Interests in a Consolidated Partnership When we are deemed to have a controlling interest in a partially-owned entity, we will consolidate all of the entity’s assets, liabilities and operating results within our condensed consolidated financial statements. The net assets contributed to the consolidated entity by the third party, if any, will be reflected within permanent equity in our consolidated balance sheets to the extent they are not mandatorily redeemable. The amount will be recorded based on the third party’s initial investment in the consolidated entity and will be adjusted to reflect the third party’s share of earnings or losses in the consolidated entity and any distributions received or additional contributions made by the third party. The earnings or losses from the entity attributable to the third party are recorded as a component of “Net loss attributable to noncontrolling interests” on our consolidated statements of operations. On August 4, 2011, we formed a joint venture, in which we have a 97% interest, with an affiliate of Perseus Realty, LLC to acquire Storey Park in our Washington, D.C. reporting segment, which was placed into development in August 2013. Storey Park was sold July 25, 2016, at which time all assets and liabilities owned by the joint venture were either sold or settled at the time of disposition and the remaining proceeds from the sale were distributed to the joint venture partners in accordance with the terms of the joint venture agreement. See note 7, Dispositions, for more information. |
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Share-Based Payments | Share-Based Payments We record costs related to our share-based compensation based on the grant-date fair value calculated in accordance with GAAP. We recognize share-based compensation costs on a straight-line basis over the requisite service period for each award and these costs are recorded within “General and administrative expense” or “Property operating expense” on our consolidated statements of operations based on the employee’s job function. Non-Vested Share Awards We issue non-vested common share awards that either vest over a specific time period that is identified at the time of issuance or vest upon the achievement of specific performance goals that are identified at the time of issuance. We issue new common shares, subject to restrictions, upon each grant of non-vested common share awards. In May 2016, we granted a total of 36,828 non-vested common shares to our non-employee trustees. The awards will vest on the earlier of the first anniversary of the award date or the date of our 2017 annual meeting of shareholders, subject to continued service by the trustee until that date. We recognized compensation expense associated with our non-vested common share awards of $0.5 million and $0.9 million during the three and six months ended June 30, 2016, respectively, compared with $0.7 million and $1.3 million during the three and six months ended June 30, 2015, respectively. Dividends on all non-vested common share awards are recorded as a reduction of equity. We apply the two-class method for determining EPS as our outstanding non-vested common shares with non-forfeitable dividend rights are considered participating securities. Our excess of dividends over earnings related to participating securities are shown as a reduction in net income or loss attributable to common shareholders in our computation of EPS. A summary of our non-vested common share awards at June 30, 2016 is as follows:
We value our non-vested time-based share awards at the grant date fair value, which is the market price of our common shares. As of June 30, 2016, we had $4.4 million of unrecognized compensation cost related to non-vested common shares. We anticipate this cost will be recognized over a weighted-average period of 3.4 years. In May 2016, our shareholders authorized an additional 4.1 million common shares for issuance under the Company’s 2009 Equity Compensation Plan, as amended (the “2009 Plan”). As of June 30, 2016, we had 11.5 million common shares authorized for issuance under the 2009 Plan and, of those authorized awards, 5.5 million common shares remained available for issuance by us. |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information Our reportable segments consist of four distinct reporting and operational segments within the greater Washington, D.C. region in which we operate: Washington, D.C., Maryland, Northern Virginia and Southern Virginia. We evaluate the performance of our segments based on the operating results of the properties located within each segment, which excludes large non-recurring gains and losses, gains or losses from sale of rental property, interest expense, general and administrative costs, acquisition costs or any other indirect corporate expense to the segments. In addition, the segments do not have significant non-cash items other than straight-line and deferred market rent amortization reported in their operating results. There are no inter-segment sales or transfers recorded between segments. The results of operations of our four reporting segments for the three and six months ended June 30, 2016 and 2015 are as follows (dollars in thousands):
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Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||
Principles of Consolidation | Principles of Consolidation Our unaudited condensed consolidated financial statements include our accounts and the accounts of our Operating Partnership, which we consider to be a variable interest entity (“VIE”), and the subsidiaries in which we or our Operating Partnership has a controlling interest, which includes First Potomac Management, LLC, a wholly-owned subsidiary that manages the majority of our properties. All intercompany balances and transactions have been eliminated in consolidation. We have condensed or omitted certain information and note disclosures normally included in financial statements presented in accordance with U.S. generally accepted accounting principles (“GAAP”) in the accompanying unaudited condensed consolidated financial statements. We believe the disclosures made are adequate to prevent the information presented from being misleading. However, the unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2015 and as updated from time to time in our other filings with the SEC. In our opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments and accruals necessary to present fairly our financial position as of June 30, 2016 and the results of our operations, our comprehensive loss and our cash flows for the three and six months ended June 30, 2016 and 2015. Interim results are not necessarily indicative of full-year performance due, in part, to the timing of transactions and the impact of acquisitions and dispositions throughout the year, as well as the seasonality of certain operating expenses such as utilities expense and snow and ice removal costs. |
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Use of Estimates | Use of Estimates The preparation of unaudited condensed consolidated financial statements in conformity with GAAP requires our management team to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the period. Estimates include the amount of accounts receivable that may be uncollectible, future cash flows, discount and capitalization rate assumptions used to fair value acquired properties and to test impairment of certain long-lived assets and goodwill, derivative valuations, market lease rates, lease-up periods, leasing and tenant improvement costs used to fair value intangible assets acquired and probability weighted cash flow analysis used to fair value contingent liabilities. Actual results could differ from those estimates. |
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Rental Property | Rental Property Rental property is initially recorded at fair value, when acquired in a business combination, or initial cost when constructed or acquired in an asset purchase. Improvements and replacements are capitalized at cost when they extend the useful life, increase capacity or improve the efficiency of the asset. Repairs and maintenance are charged to expense when incurred. Depreciation and amortization are recorded on a straight-line basis over the estimated useful lives of the assets. The estimated useful lives of our assets, by class, are as follows:
We regularly review market conditions for possible impairment of a property’s carrying value. When circumstances such as adverse market conditions, changes in management’s intended holding period or potential sale to a third party indicate a possible impairment of the carrying value of a property, an impairment analysis is performed. We assess potential impairments based on an estimate of the future undiscounted cash flows (excluding interest charges) expected to result from the property’s use and eventual disposition. This estimate is based on projections of future revenues, expenses, capital improvement costs to maintain the operating capacity, expected holding periods and capitalization rates. These cash flows consider factors such as expected market trends and leasing prospects, as well as the effects of leasing demand, competition and other factors. If impairment exists due to the inability to recover the carrying value of a real estate investment based on forecasted undiscounted cash flows, an impairment loss is recorded to the extent that the carrying value exceeds the estimated fair value of the property. Further, we will record an impairment loss if we expect to dispose of a property in the near term, at a price below carrying value. In such an event, we will record an impairment loss based on the difference between a property’s carrying value and its projected sales price less any estimated costs to sell. We will classify a building as held-for-sale in accordance with GAAP in the period in which we have made the decision to dispose of the building, our Board of Trustees or a designated delegate has approved the sale, there is a binding contract pursuant to which the buyer has significant money at risk, or high likelihood a binding agreement to purchase the property will be signed under which the buyer will be required to commit a significant amount of nonrefundable cash, and no significant financing contingencies exist that could cause the transaction not to be completed in a timely manner. We will cease recording depreciation on a building once it has been classified as held-for-sale. We will also determine whether the disposal of a building qualifies as a discontinued operation in accordance with GAAP by assessing whether the disposal of the building, or group of buildings, represents a strategic shift that has, or will have, a major effect on the Company’s operations or financial results. If the building does not qualify as a discontinued operation in accordance with GAAP, we will classify the building’s operating results, together with any impairment charges and any gains or losses on the sale of the building, in continuing operations for all periods presented in our consolidated statements of operations. We will classify the assets and liabilities related to the building as held-for-sale in our consolidated balance sheet for the period the held-for-sale criteria were met. If the building does qualify as a discontinued operation under GAAP, we will classify the building’s operating results, together with any impairment charges and any gains or losses on the sale of the building, in discontinued operations in our consolidated statements of operations for all periods presented and classify the assets and liabilities related to the building as held-for-sale in our consolidated balance sheets for the periods presented. Interest expense is reclassified to discontinued operations only to the extent the disposed or held-for-sale property is secured by specific mortgage debt and the mortgage debt will not be assigned to another property owned by us after the disposition. We recognize the fair value, if sufficient information exists to reasonably estimate the fair value, of any liability for conditional asset retirement obligations when assumed or incurred, which is generally upon acquisition, construction, development or redevelopment and/or through the normal operation of the asset. We capitalize interest costs incurred on qualifying expenditures for real estate assets under development or redevelopment, which include our investments in assets owned through unconsolidated joint ventures that are under development or redevelopment, while being readied for their intended use in accordance with accounting requirements regarding capitalization of interest. We will capitalize interest when qualifying expenditures for the asset have been made, activities necessary to get the asset ready for its intended use are in progress and interest costs are being incurred. Capitalized interest also includes interest associated with expenditures incurred to acquire developable land while development activities are in progress. We also capitalize direct compensation costs of our construction personnel who manage the development and redevelopment projects, but only to the extent the employee’s time can be allocated to a project. Any portion of construction management costs not directly attributable to a specific project are recognized as general and administrative expense in the period incurred. We do not capitalize any other general and administrative costs such as office supplies, office rent expense or an overhead allocation to our development or redevelopment projects. Capitalized compensation costs were immaterial for the three and six months ended June 30, 2016 and 2015. Capitalization of interest ends when the asset is substantially complete and ready for its intended use, but no later than one year from completion of major construction activity, if the property is not occupied. We place redevelopment and development assets into service at this time and commence depreciation upon the substantial completion of tenant improvements and the recognition of revenue. Capitalized interest is depreciated over the useful life of the underlying assets, commencing when those assets are placed into service. |
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Notes Receivable | Notes Receivable We provide loans to the owners of real estate properties, which can be collateralized by interest in the real estate property. We record these loans as “Notes receivable” in our consolidated balance sheets. The loans will be recorded net of any discount or issuance costs, which will be amortized over the life of the respective note receivable using the effective interest method. We record interest earned from notes receivable and amortization of any discount costs or issuance costs within “Interest and other income” in our consolidated statements of operations. We will establish a provision for anticipated credit losses associated with our notes receivable when we anticipate that we may be unable to collect any contractually due amounts. This determination is based upon such factors as delinquencies, loss experience, collateral quality and current economic or borrower conditions. Our collectability of our notes receivable may be adversely impacted by the financial stability of the Washington, D.C. region and the ability of the underlying assets to keep current tenants or attract new tenants. Estimated losses are recorded as a charge to earnings to establish an allowance for credit losses that we estimate to be adequate based on these factors. During the second quarter of 2016, we received the full repayment of a mezzanine loan with an outstanding principal balance of $34.0 million. We did not have any notes receivable outstanding at June 30, 2016. Based on the review of the above criteria, we did not record an allowance for credit losses for our notes receivable during the six months ended June 30, 2015. |
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Application of New Accounting Standards | Application of New Accounting Standards In January 2016, we adopted Accounting Standards Update No. 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (“ASU 2015-01”), which eliminates the concept of extraordinary items from GAAP and the requirement that an entity separately report extraordinary items in the income statement. ASU 2015-01 also requires that entities continue to evaluate whether items are unusual in nature or infrequent in occurrence for presentation and disclosure purposes. The adoption of ASU 2015-01 did not have a material impact on our unaudited condensed consolidated financial statements and related disclosures. In January 2016, we adopted ASU No. 2015-02, Amendments to the Consolidation Analysis (“ASU 2015-02”). This standard amends certain guidance applicable to the consolidation of various legal entities, including variable interest entities (“VIE”). In determining the method of accounting for partially owned joint ventures, we evaluate the characteristics of associated entities and determine whether an entity is a VIE and, if so, determine which party is the primary beneficiary by analyzing whether we have both the power to direct the entity's significant economic activities and the obligation to absorb potentially significant losses or receive potentially significant benefits. Significant judgments and assumptions inherent in this analysis include the nature of the entity's operations, the entity's financing and capital structure, and contractual relationship and terms, including consideration of governance and decision making rights. We consolidate a VIE when we have determined that we are the primary beneficiary. We evaluated the application of ASU 2015-02 and concluded that no change was required to our accounting for any of our interests in less than wholly owned joint ventures. We continued to consolidate our joint venture in Storey Park, which was sold on July 25, 2016, as described in note 12(b), Noncontrolling Interests in a Consolidated Partnership, as it continued to meet the definition and certain criteria as a VIE in which we were considered to be the primary beneficiary. Under ASU 2015-02, our Operating Partnership now meets the definition of a VIE, we are the primary beneficiary, and, accordingly, we continue to consolidate the Operating Partnership. Our sole significant asset is our investment in the Operating Partnership and, consequently, substantially all of our assets and liabilities represent assets and liabilities of the Operating Partnership. All of our debt is an obligation of the Operating Partnership and may only be settled with the assets of the Operating Partnership. In January 2016, we adopted Accounting Standards Update No. 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”), which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the debt liability. ASU 2015-03 is applied on a retrospective basis, which resulted in the reclassification of our debt issuance costs from previously presented balances. The guidance did not have a material impact on our unaudited condensed consolidated financial statements and related disclosures. In January 2016, we adopted Accounting Standards Update No. 2015-16, Simplifying the Accounting for Measurement-Period Adjustments (“ASU 2015-16”), which eliminates the requirement for an acquirer to retrospectively adjust the financial statements for measurement-period adjustments that occur in periods after the acquisition of a business combination. The acquirer would instead recognize measurement-period adjustments in the reporting period in which the adjustment is identified. The adoption of ASU 2015-16 did not have a material impact on our unaudited condensed consolidated financial statements and related disclosures. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers and will replace most existing revenue recognition guidance when it becomes effective. In July 2015, the FASB deferred by one year the mandatory effective date of ASU 2014-09 from January 1, 2017 to January 1, 2018. Early adoption is permitted, but not prior to the original effective date of January 1, 2017. ASU 2014-09 permits the use of either the retrospective or cumulative effect transition method. We have not yet selected a transition method and are evaluating the impact that ASU 2014-09 will have on our consolidated financial statements and related disclosures. In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”), which requires an entity to evaluate whether conditions or events, in the aggregate, raise substantial doubt about the entity’s ability to continue as a going concern for one year from the date the financial statements are issued or are available to be issued. The guidance will become effective for annual periods ending after December 15, 2016. The adoption of ASU 2014-15 is not expected to have an impact on our consolidated financial statements and related disclosures. In January 2016, the FASB issued Accounting Standards Update No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which requires, among other things, entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value disclosed for financial instruments measured at amortized cost on the balance sheet. ASU 2016-01 is effective for periods beginning after December 15, 2017; early adoption is not permitted. The guidance is not expected to have a material impact on our consolidated financial statements and related disclosures. In February 2016, the FASB issued Accounting Standards Update No. 2016-02 (“ASU 2016-02”), Leases, which requires a lessee to record on the balance sheet a right-of-use asset with a corresponding lease liability created by lease terms of more than 12 months. Additional qualitative and quantitative disclosures will also be required. The guidance will become effective for periods beginning after December 15, 2018 and will be applied using a modified retrospective transition method. We are currently evaluating the impact that ASU 2016-02 will have on our consolidated financial statements and related disclosures. In March 2016, the FASB issued Accounting Standards Update No. 2016-09 (“ASU 2016-09”), Improvements to Employee Share-Based Payment Accounting, which is intended to simplify several aspects of the accounting for employee share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The guidance will become effective for periods beginning after December 15, 2016 and early adoption is permitted. ASU 2016-09 permits the use of the cumulative-effect and prospective methods. While we are currently evaluating the impact of this standard and whether we will elect to early adopt the standard, we do not believe this standard will have a material impact on our consolidated financial statements or related disclosures. |
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Reclassifications | Reclassifications Certain prior year asset and debt balances have been reclassified to conform to the current year presentation as a result of adopting ASU 2015-03 in January 2016, which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the debt liability and which is applied on a retrospective basis. See note 2(e), Summary of Significant Accounting Policies - Application of New Accounting Standards for more information. |
Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||
Estimated Useful Life of Assets |
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Earnings Per Common Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Company's Basic and Diluted Earnings Per Share | The following table sets forth the computation of our basic and diluted earnings per common share (dollars in thousands, except per share amounts):
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Anti-Dilutive Shares Not Included in Calculation of Diluted Earnings Per Share | In accordance with GAAP regarding earnings per common share, we did not include the following potential weighted average common shares in our calculation of diluted earnings per common share as they are anti-dilutive for the periods presented (amounts in thousands):
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Rental Property (Tables) |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Rental Property | Rental property consists of the following (dollars in thousands):
(1) Excludes rental property totaling $55.1 million at June 30, 2016 related to Storey Park, which was classified as held-for-sale at June 30, 2016 and was sold on July 25, 2016. (2) Excludes rental property totaling $90.6 million at December 31, 2015 related to the NOVA Non-Core Portfolio (as defined in note 7, Dispositions), which was classified as held-for-sale at December 31, 2015 and was sold on March 25, 2016. |
Investment in Affiliates (Tables) |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
mortgage debt of joint ventures [Table Text Block] | The following table provides a summary of the mortgage debt held by our unconsolidated joint ventures (dollars in thousands):
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Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Investments in Affiliates | Our investment in affiliates consisted of the following (dollars in thousands):
(1) Rivers Park I and Rivers Park II are owned through two separate joint ventures. |
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Net Assets of Company's Unconsolidated Joint Ventures | The net assets of our unconsolidated joint ventures consisted of the following (dollars in thousands):
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Results of Operations of Company's Unconsolidated Joint Ventures | The following table summarizes the results of operations of our unconsolidated joint ventures for the periods presented, which, due to our varying ownership interests in the joint ventures and the varying operations of the joint ventures, may not be reflective of the amounts recorded in our consolidated statements of operations (dollars in thousands):
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Dispositions (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations Square Feet Area [Table Text Block] | The following table is a summary of property dispositions or held-for-sale properties whose operating results are included in continuing operations in our consolidated statements of operations for the periods presented (dollars in thousands):
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Schedule of Disposal Groups Including Not Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | The following table summarizes the aggregate results of operations for the disposed or held-for-sale properties that are included in continuing operations for the periods presented (dollars in thousands):
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Summary of Completed Property Dispositions | The following table is a summary of property dispositions whose operating results are reflected as discontinued operations in our consolidated statements of operations for the periods presented (dollars in thousands):
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Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures | The following table summarizes the results of operations of properties included in discontinued operations for the six months ended June 30, 2015 (dollars in thousands):
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Debt (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Borrowings | Our debt consisted of the following (dollars in thousands):
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Summary of Company's Mortgage Debt | The following table provides a summary of our mortgage debt, which includes two construction loans and a land loan (dollars in thousands):
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Unsecured Term Loan | On December 4, 2015, we amended, restated and consolidated our unsecured revolving credit facility and our unsecured term loan. The amendments extended the maturity date of the unsecured term loan’s three $100 million tranches to December 2020, June 2021 and December 2022 from October 2018, October 2019 and October 2020, respectively and the maturity date of the unsecured revolving credit facility to December 2019 from October 2017, with two, six-month extensions at our option. As part of the amendments, we reduced the interest rate spreads on our unsecured term loan and our unsecured revolving credit facility, reduced the capitalization rates used to calculate gross asset value in the financial covenants and amended the covenant package to more closely align with our corporate goals. The table below shows the outstanding balances and the interest rates of the three tranches of the $300.0 million unsecured term loan at June 30, 2016 (dollars in thousands):
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Derivative Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Interest Rate Swap Agreements | Our interest rate swap agreements are summarized below (dollars in thousands):
(1) The swap agreements expired on July 18, 2016. |
Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Assets and Liabilities | In accordance with accounting provisions and the fair value hierarchy described above, the following table shows the fair value of our consolidated assets and liabilities that are measured on a non-recurring and recurring basis as of June 30, 2016 and December 31, 2015 (dollars in thousands):
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Fair Value of Debt Instruments | The carrying amount and estimated fair value of our notes receivable and debt instruments are as follows (dollars in thousands):
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Equity (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company's Allocation between Non-controlling Interests | Our equity and redeemable noncontrolling interests are as follows (dollars in thousands):
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Company's Accumulated Other Comprehensive Loss | A summary of our accumulated other comprehensive loss is as follows (dollars in thousands):
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Share-Based Payments (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Nonvested Share Activity | A summary of our non-vested common share awards at June 30, 2016 is as follows:
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Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Segment Information | The results of operations of our four reporting segments for the three and six months ended June 30, 2016 and 2015 are as follows (dollars in thousands):
|
Description of Business - Additional Information (Detail) |
3 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Jun. 30, 2016
ft²
joint_venture
person
Integer
segment
|
Jun. 30, 2015
ft²
|
[2] | |||||
Real Estate Properties [Line Items] | |||||||
Number of Reportable Segments | segment | 4 | ||||||
Operating Partnership in preferred | 100.00% | ||||||
Interest in Operating Partnership | 95.80% | ||||||
Area of real estate property | [1] | 6,543,762 | 7,957,016 | ||||
Unconsolidated joint ventures | joint_venture | 5 | ||||||
Square footage of land for additional development | 1,300,000 | ||||||
Area Of Land Available For Development In Additional Building Space | 1,300,000 | ||||||
Occupancy rate in the Company's consolidated properties | 93.10% | ||||||
Number of tenants representing current occupancy rate | person | 385 | ||||||
Square footage in development or redevelopment not included on occupancy calculation | 200,000 | ||||||
Percent of Annualized Cash Rent | 24.20% | ||||||
Wholly-owned Properties [Member] | |||||||
Real Estate Properties [Line Items] | |||||||
Number of Reportable Segments | Integer | 4 | ||||||
Area of real estate property | 6,500,000 | ||||||
Unconsolidated Properties [Member] | |||||||
Real Estate Properties [Line Items] | |||||||
Area of real estate property | 900,000 | ||||||
US Government [Member] | |||||||
Real Estate Properties [Line Items] | |||||||
Percent of Annualized Cash Rent | 12.50% | ||||||
Washington D C Reporting Segment [Member] | |||||||
Real Estate Properties [Line Items] | |||||||
Area Of Land Available For Development In Additional Building Space | 700,000 | ||||||
|
Summary of Significant Accounting Policies - Estimated Useful Lives of Company's Assets, by Class (Detail) |
3 Months Ended |
---|---|
Jun. 30, 2016 | |
Property, Plant and Equipment [Line Items] | |
Useful life | 39 years |
Lease related intangible assets | the term of the lease |
Tenant improvements | Shorter of the useful life of the asset or the term of the related lease |
Minimum [Member] | Building improvements | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Minimum [Member] | Furniture, fixtures and equipment | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Maximum [Member] | Building improvements | |
Property, Plant and Equipment [Line Items] | |
Useful life | 20 years |
Maximum [Member] | Furniture, fixtures and equipment | |
Property, Plant and Equipment [Line Items] | |
Useful life | 15 years |
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
|
Loans and Leases Receivable Disclosure [Line Items] | ||||
Principal payments from note receivable | $ 34,000,000 | $ 29,720,000 | ||
Notes receivable | $ 0 | 0 | $ 34,000,000 | |
Allowance for credit losses for its notes receivable | $ 0 | $ 0 | ||
Nine Hundered And Fifty Street Nw [Member] | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Principal payments from note receivable | $ 34,000,000 |
Earnings Per Common Share - Computation of Company's Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2016 |
Mar. 31, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Numerator for basic and diluted earnings per common share: | |||||
(Loss) income from continuing operations | $ (1,992) | $ 476 | $ (2,093) | $ 1,575 | |
Loss from discontinued operations | 0 | 0 | 0 | (607) | |
Net (loss) income | (1,992) | 476 | (2,093) | 968 | |
Less: Net loss from continuing operations attributable to noncontrolling interests | 390 | 114 | 537 | 201 | |
Less: Net loss from discontinued operations attributable to noncontrolling interests | 0 | 0 | 0 | 26 | |
Net (loss) income attributable to First Potomac Realty Trust | (1,602) | 590 | (1,556) | 1,195 | |
Less: Dividends on preferred shares | (794) | (3,100) | (3,042) | (6,200) | |
Less: Issuance costs of redeemed preferred shares | 3,095 | 0 | 4,999 | 0 | |
Net loss attributable to common shareholders | (5,491) | (2,510) | (9,597) | (5,005) | |
Less: Allocation to participating securities | (53) | (69) | (126) | (142) | |
Net loss attributable to common shareholders | $ (5,544) | $ (2,579) | $ (9,723) | $ (5,147) | |
Denominator for basic and diluted earnings per common share: | |||||
Basic | 57,577 | 58,280 | 57,559 | 58,241 | |
Basic and diluted earnings per common share: | |||||
Loss from continuing operations | $ (0.10) | $ (0.04) | $ (0.17) | $ (0.08) | |
Loss from discontinued operations attributable to common shareholders | 0.00 | 0.00 | 0.00 | (0.01) | |
Net loss attributable to common shareholders | $ (0.10) | $ (0.04) | $ (0.17) | $ (0.09) | |
Series A Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Stock Redeemed or Called During Period, Shares | 3,600 | 2,200 | 5,800 |
Earnings Per Common Share - Anti-Dilutive Shares Not Included in Calculation of Diluted Earnings Per Share (Detail) - shares shares in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share, Amount | 1,471 | 1,451 | 1,505 | 1,519 |
Stock option awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share, Amount | 982 | 1,046 | 1,000 | 1,069 |
Non-vested share awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share, Amount | 489 | 405 | 505 | 450 |
Rental Property - Summary of Rental Property (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2016 |
Dec. 31, 2015 |
||||||
Property, Plant and Equipment [Line Items] | ||||||||
Real Estate Investment Property, Net | $ 1,085,108 | $ 1,085,108 | $ 1,130,266 | |||||
Rental property, net | 1,085,108 | 1,085,108 | 1,130,266 | |||||
Rental Property [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Land and land improvements | 279,163 | 279,163 | 280,149 | |||||
Buildings and improvements | 800,647 | 800,647 | 793,184 | |||||
Construction in process | 45,085 | 45,085 | 97,361 | |||||
Tenant Improvements | 191,654 | 191,654 | 168,946 | |||||
Furniture, fixtures and equipment | 398 | 398 | 410 | |||||
Rental property, gross | 1,316,947 | 1,316,947 | 1,340,050 | |||||
Less: accumulated depreciation | $ 231,839 | $ 231,839 | 209,784 | |||||
Southern Virginia | Rental Property [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Disposition Date Of Property | Mar. 25, 2016 | |||||||
NOVA Non-Core Portfolio [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Buildings and improvements | 88,000 | |||||||
Tenant Improvements | 14,400 | |||||||
Disposition Date Of Property | [1] | Mar. 25, 2016 | ||||||
NOVA Non-Core Portfolio [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Rental property, net | $ 90,600 | |||||||
Storey Park [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Disposition Date Of Property | [2] | Jul. 25, 2016 | ||||||
Storey Park [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Rental property, net | $ 55,100 | $ 55,100 | ||||||
|
Rental Property - Additional Information (Detail) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Aug. 31, 2013
a
ft²
|
Sep. 30, 2016
USD ($)
|
Jun. 30, 2016
USD ($)
ft²
|
Jun. 30, 2016
USD ($)
ft²
|
Jun. 30, 2015
USD ($)
|
Jul. 25, 2016
USD ($)
|
|||
Segment Reporting Information [Line Items] | ||||||||
Impairment of rental property | $ | $ 2,772 | $ 2,772 | $ 0 | |||||
Area Of Land Available For Development In Additional Building Space | 1,300,000 | |||||||
Occupancy rate in the Company's consolidated properties | 93.10% | 93.10% | ||||||
Placed in-service redevelopment efforts | 0 | |||||||
Redevelopment Efforts Yet To Be Placed In Service | 0 | 0 | ||||||
Storey Park [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Proceeds from sale of properties | $ | [1] | $ 52,700 | ||||||
Impairment of rental property | $ | $ 2,800 | |||||||
Washington D C Reporting Segment [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Area Of Land Available For Development In Additional Building Space | 700,000 | |||||||
Lease expiration date | Aug. 31, 2013 | |||||||
Development of area for operations by joint venture | a | 1.6 | |||||||
Washington D C Reporting Segment [Member] | Maximum [Member] | Greyhound Property [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Area Of Land Available For Development In Additional Building Space | 712,000 | |||||||
Maryland Reporting Segment [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Area Of Land Available For Development In Additional Building Space | 100,000 | |||||||
Northern Virginia | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Area Of Land Available For Development In Additional Building Space | 400,000 | |||||||
Area of land placed under development | 167,000 | |||||||
Projected incremental investment in development project | $ | $ 34,600 | $ 34,600 | ||||||
Original cost basis of the property | $ | $ 5,200 | $ 5,200 | ||||||
Southern Virginia [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Area Of Land Available For Development In Additional Building Space | 100,000 | |||||||
Subsequent Event [Member] | Storey Park [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Business Combination, Consideration Transferred | $ | $ 54,500 | |||||||
Proceeds from sale of properties | $ | $ 52,700 | |||||||
|
Notes Receivable - Additional Information (Detail) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 01, 2011 |
Jun. 30, 2016
USD ($)
ft²
shares
|
Mar. 31, 2016
USD ($)
|
Jun. 30, 2015
USD ($)
ft²
|
Jun. 30, 2016
USD ($)
ft²
shares
|
Jun. 30, 2015
USD ($)
ft²
|
Jul. 06, 2016
shares
|
Dec. 31, 2015
USD ($)
shares
|
Feb. 24, 2015
USD ($)
|
Apr. 30, 2011
ft²
|
|||||||
Receivables with Imputed Interest [Line Items] | ||||||||||||||||
Area of real estate property | ft² | [1] | 6,543,762 | 7,957,016 | [2] | 6,543,762 | 7,957,016 | [2] | |||||||||
Unsecured revolving credit facility, net | $ 144,159 | $ 144,159 | $ 116,865 | |||||||||||||
Series A Preferred Shares, shares outstanding | shares | 600,000.0 | 600,000.0 | 6,400,000 | |||||||||||||
Interest income | $ 800 | $ 800 | $ 1,600 | $ 2,000 | ||||||||||||
America Square [Member] | ||||||||||||||||
Receivables with Imputed Interest [Line Items] | ||||||||||||||||
Area of real estate property | ft² | 461,000 | |||||||||||||||
Loans Receivable, Gross, Commercial, Real Estate | $ 29,700 | |||||||||||||||
Maturity date of loan | Apr. 01, 2017 | May 01, 2016 | ||||||||||||||
Prepayment Fee Income | $ 2,400 | |||||||||||||||
America Square [Member] | Maximum [Member] | ||||||||||||||||
Receivables with Imputed Interest [Line Items] | ||||||||||||||||
Fixed interest rate on loan | 9.00% | |||||||||||||||
Nine Hundered And Fifty Street Nw [Member] | ||||||||||||||||
Receivables with Imputed Interest [Line Items] | ||||||||||||||||
Area of real estate property | ft² | 287,000 | 287,000 | ||||||||||||||
Recognition of Deferred Revenue | $ 200 | |||||||||||||||
Nine Hundered And Fifty Street Nw [Member] | Minimum [Member] | ||||||||||||||||
Receivables with Imputed Interest [Line Items] | ||||||||||||||||
Fixed interest rate on loan | 9.75% | |||||||||||||||
Series A Preferred Stock [Member] | ||||||||||||||||
Receivables with Imputed Interest [Line Items] | ||||||||||||||||
Series A Preferred Shares, shares outstanding | shares | 6,400,000 | |||||||||||||||
Subsequent Event [Member] | Series A Preferred Stock [Member] | ||||||||||||||||
Receivables with Imputed Interest [Line Items] | ||||||||||||||||
Series A Preferred Shares, shares outstanding | shares | 600,000 | |||||||||||||||
|
Investment in Affiliates - Components of Investments in Affiliates (Detail) - USD ($) $ in Thousands |
3 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 |
Dec. 31, 2015 |
Aug. 04, 2011 |
||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Ownership Interest | 97.00% | |||||||||||
Company Investment | $ 48,715 | $ 48,223 | ||||||||||
Prosperity Metro Plaza [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Reporting Segment | Northern Virginia | |||||||||||
Ownership Interest | [1] | 51.00% | ||||||||||
Company Investment | $ 25,678 | 24,909 | ||||||||||
One Thousand Seven Hundred Fifty H Street Nw [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Reporting Segment | Washington, D.C. | |||||||||||
Ownership Interest | [2] | 50.00% | ||||||||||
Company Investment | $ 14,870 | 15,168 | ||||||||||
Aviation Business Park | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Reporting Segment | Maryland | |||||||||||
Ownership Interest | 50.00% | |||||||||||
Company Investment | $ 5,847 | 5,899 | ||||||||||
Rivers Park One And Two [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Reporting Segment | [3] | Maryland | ||||||||||
Ownership Interest | [3],[4] | 25.00% | ||||||||||
Company Investment | [3] | $ 2,320 | $ 2,247 | |||||||||
Mortgages [Member] | Rivers Park One And Two [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 2,800 | |||||||||||
|
Investment in Affiliates - Net Assets of Company's Unconsolidated Joint Ventures (Detail) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
Jun. 30, 2015 |
Dec. 31, 2013 |
||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Assets: | ||||||||||||
Rental property, net | $ 1,085,108 | $ 1,130,266 | ||||||||||
Cash and cash equivalents | 13,703 | 13,527 | $ 12,735 | $ 13,323 | ||||||||
Total assets | 1,320,046 | [1] | 1,442,406 | 1,532,197 | [1],[2] | |||||||
Liabilities: | ||||||||||||
Total liabilities | 831,185 | 788,265 | ||||||||||
Recourse mortgage debt | 753,377 | 724,038 | ||||||||||
Debt Issuance Costs, Line of Credit Arrangements, Net | 2,800 | $ 5,300 | ||||||||||
Unconsolidated Joint Ventures [Member] | ||||||||||||
Assets: | ||||||||||||
Rental property, net | 191,068 | 193,243 | ||||||||||
Cash and cash equivalents | 7,493 | 5,992 | ||||||||||
Other assets | 17,775 | 16,490 | ||||||||||
Total assets | 216,336 | 215,725 | ||||||||||
Liabilities: | ||||||||||||
Mortgage loans | [3] | 109,322 | 109,273 | |||||||||
Other liabilities | 6,665 | 7,214 | ||||||||||
Total liabilities | 115,987 | 116,487 | ||||||||||
Net assets | 100,349 | 99,238 | ||||||||||
Debt Issuance Costs, Line of Credit Arrangements, Net | $ 700 | |||||||||||
Unconsolidated Entities | ||||||||||||
Liabilities: | ||||||||||||
Recourse mortgage debt | $ 2,800 | |||||||||||
|
Investment in Affiliates - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Equity Method Investments and Joint Ventures [Abstract] | ||||
Fees from joint ventures | $ 0.2 | $ 0.2 | $ 0.4 | $ 0.3 |
Investment in Affiliates - Results of Operations of Company's Unconsolidated Joint Ventures (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Schedule of Equity Method Investments [Line Items] | ||||
Total revenues | $ 38,493 | $ 43,039 | $ 81,190 | $ 86,888 |
Total operating expenses | (35,681) | (37,268) | (72,019) | (77,285) |
Operating income | 2,812 | 5,771 | 9,171 | 9,603 |
Depreciation and amortization | (15,141) | (16,817) | (30,147) | (33,151) |
Interest expense, net | (4,804) | (5,295) | (11,264) | (8,028) |
Net income | 663 | 456 | 1,219 | 803 |
Unconsolidated Joint Ventures [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Total revenues | 6,240 | 6,063 | 12,529 | 12,230 |
Total operating expenses | (1,814) | (1,756) | (3,980) | (3,912) |
Operating income | 4,426 | 4,307 | 8,549 | 8,318 |
Depreciation and amortization | (2,006) | (2,287) | (3,972) | (4,536) |
Interest expense, net | (997) | (975) | (1,989) | (1,948) |
Net income | $ 1,423 | $ 1,045 | $ 2,588 | $ 1,834 |
Investment in Affiliates Investment in Affiliates - Mortgage Debt Held by Unconsolidated Joint Ventures (Details) (Details) - USD ($) $ in Thousands |
6 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 |
Dec. 31, 2015 |
Jun. 30, 2015 |
Aug. 04, 2011 |
||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||
Debt Issuance Costs, Line of Credit Arrangements, Net | $ 2,800 | $ 5,300 | |||||||||||||||
Total long term debt | $ 753,377 | $ 724,038 | |||||||||||||||
Ownership Interest | 97.00% | ||||||||||||||||
Unconsolidated Joint Ventures [Member] | |||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||
Debt Issuance Costs, Line of Credit Arrangements, Net | 700 | ||||||||||||||||
Rivers Park One And Two [Member] | |||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||
Ownership Interest | [1],[2] | 25.00% | |||||||||||||||
One Thousand Seven Hundred Fifty H Street Nw [Member] | |||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||
Ownership Interest | [3] | 50.00% | |||||||||||||||
Prosperity Metro Plaza [Member] | |||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||
Ownership Interest | [4] | 51.00% | |||||||||||||||
Mortgages [Member] | |||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||
Total long term debt | [5] | $ 110,000 | 110,000 | ||||||||||||||
Effective Interest Rate | 3.52% | ||||||||||||||||
Mortgages [Member] | Rivers Park One And Two [Member] | |||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 2,800 | ||||||||||||||||
Mortgage and Other Indebtedness | [2],[5] | 28,000 | 28,000 | ||||||||||||||
Mortgages [Member] | One Thousand Seven Hundred Fifty H Street Nw [Member] | |||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||
Mortgage and Other Indebtedness | [3],[5] | $ 32,000 | 32,000 | ||||||||||||||
Effective Interest Rate | [3] | 3.92% | |||||||||||||||
Mortgages [Member] | Prosperity Metro Plaza [Member] | |||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||
Mortgage and Other Indebtedness | [4],[5] | $ 50,000 | $ 50,000 | ||||||||||||||
Effective Interest Rate | [4] | 3.91% | |||||||||||||||
London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||
Effective Interest Rate | 0.47% | ||||||||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Mortgages [Member] | Rivers Park One And Two [Member] | |||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||
Interest Rate | [6] | LIBOR | |||||||||||||||
Derivative, Basis Spread on Variable Rate | 1.90% | ||||||||||||||||
|
Dispositions - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 |
Mar. 31, 2016 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
||||||||||||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||||||||||||||||||
Gain (Loss) on Sale of Properties | $ 0 | $ (1,200) | $ 0 | $ (1,155) | $ 0 | |||||||||||||||||
Assets | 1,320,046 | [1] | $ 1,532,197 | [1],[2] | 1,320,046 | [1] | $ 1,532,197 | [1],[2] | $ 1,442,406 | |||||||||||||
NOVA Non-Core Portfolio [Member] | ||||||||||||||||||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||||||||||||||||||
Proceeds from sale of properties | 52,700 | $ 90,500 | 90,501 | [3] | ||||||||||||||||||
Land and Land Improvements | 25,200 | |||||||||||||||||||||
Buildings and improvements | 88,000 | |||||||||||||||||||||
Tenant Improvements | 14,400 | |||||||||||||||||||||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 37,000 | |||||||||||||||||||||
Storey Park [Member] | ||||||||||||||||||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||||||||||||||||||
Proceeds from sale of properties | [4] | 52,700 | ||||||||||||||||||||
Assets | 55,100 | 55,100 | ||||||||||||||||||||
Land | 43,300 | 43,300 | ||||||||||||||||||||
Mortgage loans, net, effective interest rates ranging from 4.22% to 6.01%, maturing at various dates through September 2030(3)(4) | 22,000 | 22,000 | ||||||||||||||||||||
Other liabilities | $ 2,500 | $ 2,500 | ||||||||||||||||||||
Noncontrolling Interest, Description | 0.03 | |||||||||||||||||||||
Richmond [Member] | ||||||||||||||||||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||||||||||||||||||
Proceeds from sale of properties | [5] | $ 53,768 | ||||||||||||||||||||
|
Dispositions Dispositions - Disposed or Held-for-Sale Properties within Continuing Operations (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | |||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 25, 2016 |
Sep. 30, 2016
USD ($)
|
Jun. 30, 2016
USD ($)
ft²
|
Mar. 31, 2016
USD ($)
|
Jun. 30, 2015
USD ($)
ft²
|
Jun. 30, 2016
USD ($)
ft²
|
Jun. 30, 2015
USD ($)
ft²
|
Dec. 31, 2015
USD ($)
ft²
|
Sep. 30, 2015
ft²
|
|||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||
Square feet | ft² | [1] | 6,543,762 | 7,957,016 | [2] | 6,543,762 | 7,957,016 | [2] | ||||||||||||||||||
Gain (Loss) on Extinguishment of Debt | $ 0 | $ 0 | $ (48) | $ 0 | |||||||||||||||||||||
Impairment of rental property | 2,772 | 0 | 2,772 | 0 | |||||||||||||||||||||
Gain (Loss) on Sale of Properties | $ 0 | $ (1,200) | 0 | $ (1,155) | 0 | ||||||||||||||||||||
Storey Park [Member] | |||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||
Reporting Segment | [3] | Washington, D.C. | |||||||||||||||||||||||
Disposition Date Of Property | [3] | Jul. 25, 2016 | |||||||||||||||||||||||
Property Type | [3] | Land | |||||||||||||||||||||||
Square feet | ft² | [3] | 712,000 | 712,000 | ||||||||||||||||||||||
Proceeds from sale of properties | [3] | $ 52,700 | |||||||||||||||||||||||
Rumsey Center [Domain] | |||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||
Reporting Segment | Maryland | ||||||||||||||||||||||||
Disposition Date Of Property | Jul. 28, 2015 | ||||||||||||||||||||||||
Property Type | Business Park | ||||||||||||||||||||||||
Square feet | ft² | 135,015 | ||||||||||||||||||||||||
Proceeds from sale of properties | $ 14,956 | ||||||||||||||||||||||||
Newington Business Park Center [Member] | |||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||
Reporting Segment | Northern Virginia | ||||||||||||||||||||||||
Disposition Date Of Property | Dec. 17, 2015 | ||||||||||||||||||||||||
Property Type | Industrial | ||||||||||||||||||||||||
Square feet | ft² | 255,600 | ||||||||||||||||||||||||
Proceeds from sale of properties | $ 31,409 | ||||||||||||||||||||||||
NOVA Non-Core Portfolio [Member] | |||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||
Reporting Segment | [4] | Northern Virginia | |||||||||||||||||||||||
Disposition Date Of Property | [4] | Mar. 25, 2016 | |||||||||||||||||||||||
Property Type | [4] | Various | |||||||||||||||||||||||
Square feet | ft² | [4] | 945,745 | 945,745 | ||||||||||||||||||||||
Proceeds from sale of properties | $ 52,700 | $ 90,500 | $ 90,501 | [4] | |||||||||||||||||||||
Land and Land Improvements | $ 25,200 | ||||||||||||||||||||||||
Tenant Improvements | 14,400 | ||||||||||||||||||||||||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 37,000 | ||||||||||||||||||||||||
Cedar Hill I and III [Member] | |||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||
Reporting Segment | Northern Virginia | ||||||||||||||||||||||||
Disposition Date Of Property | Dec. 23, 2015 | ||||||||||||||||||||||||
Property Type | Office | ||||||||||||||||||||||||
Square feet | ft² | 102,632 | ||||||||||||||||||||||||
Proceeds from sale of properties | $ 25,939 | ||||||||||||||||||||||||
Disposed or held-for-sale properties in continuing operations | Continuing Operations | |||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||
Revenues | 0 | 5,537 | 3,366 | 11,655 | |||||||||||||||||||||
Property operating expenses | (221) | (1,999) | (1,849) | (4,553) | |||||||||||||||||||||
Depreciation and amortization | 0 | (1,880) | (114) | (3,792) | |||||||||||||||||||||
Interest Expense | (208) | (203) | (392) | (412) | |||||||||||||||||||||
Gain (Loss) on Extinguishment of Debt | 0 | 0 | (48) | 0 | |||||||||||||||||||||
Impairment of rental property | [5] | 2,772 | 0 | 2,772 | 0 | ||||||||||||||||||||
Operating Income (Loss) from Continuing Operations Attributable to Parent | (3,201) | 1,455 | (1,809) | 2,898 | |||||||||||||||||||||
Gain (Loss) on Sale of Properties | 0 | 0 | (1,155) | [6] | 0 | ||||||||||||||||||||
Net (loss) income from continuing operations | $ (3,201) | $ 1,455 | (2,964) | $ 2,898 | |||||||||||||||||||||
Disposed or held-for-sale properties in continuing operations | NOVA Non-Core Portfolio [Member] | Continuing Operations | |||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||
Impairment of rental property | [5] | $ 1,200 | |||||||||||||||||||||||
Subsequent Event [Member] | Storey Park [Member] | |||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||
Disposition Date Of Property | Jul. 25, 2016 | ||||||||||||||||||||||||
Proceeds from sale of properties | $ 52,700 | ||||||||||||||||||||||||
Subsequent Event [Member] | Storey Park [Member] | |||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||
Disposition Date Of Property | Jul. 25, 2016 | ||||||||||||||||||||||||
|
Dispositions - Summary of Completed Property Dispositions (Detail) $ in Thousands |
3 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2015
USD ($)
ft²
|
Jun. 30, 2016
ft²
|
Jun. 30, 2015
ft²
|
[2] | ||||||||
Schedule Of Discontinued Operations [Line Items] | |||||||||||
Square feet | [1] | 6,543,762 | 7,957,016 | ||||||||
Richmond [Member] | |||||||||||
Schedule Of Discontinued Operations [Line Items] | |||||||||||
Reporting Segment | [3] | Southern Virginia | |||||||||
Disposition Date Of Property | [3] | Mar. 19, 2015 | |||||||||
Property Type | [3] | Business Park | |||||||||
Square feet | [3] | 827,900 | |||||||||
Proceeds from sale of properties | $ | [3] | $ 53,768 | |||||||||
|
Dispositions - Net (Loss) Income from Discontinued Operations (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Loss on debt extinguishment | $ 0 | $ 0 | $ 0 | $ (489) | |||
Richmond [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Accelerated Amount Of Straight Line Rent | $ 2,000 | ||||||
Discontinued Operations [Member] | All properties classified within discontinued operations [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Revenues | 877 | ||||||
Loss from operations, before taxes | [1] | (975) | |||||
Loss on debt extinguishment | (489) | ||||||
Gain on sale of rental property | $ 857 | ||||||
|
Debt - Schedule of Borrowings (Detail) - USD ($) $ in Thousands |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2016 |
Dec. 31, 2015 |
|||
Debt Instrument [Line Items] | ||||
Debt Issuance Costs, Net | $ 7,100 | $ 8,000 | ||
Mortgage loans, net | 309,879 | 307,769 | ||
Unsecured Debt | 299,339 | 299,404 | ||
Unsecured revolving credit facility, net | 144,159 | 116,865 | ||
Total long term debt | $ 753,377 | 724,038 | ||
Mortgage Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument maturity date | June 2030 | |||
Unsecured Term Loan, Effective Interest Rates Ranging from LIBOR Plus 1.45% to LIBOR Plus 1.90%, with Staggered Maturity Dates ranging from October 2018 to October 2020 | ||||
Debt Instrument [Line Items] | ||||
Unsecured Debt | $ 299,339 | 299,404 | ||
Debt instrument maturity date | December 2020 to December 2022 | |||
Debt Instrument Basis Spread On Variable Rate Minimum | 1.30% | |||
Debt Instrument Basis Spread On Variable Rate Maximum | 1.60% | |||
Unsecured revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Unsecured revolving credit facility, net, effective interest rate of LIBOR plus 1.35%, maturing December 2019(3) | $ 147,000 | |||
Effective interest rate on the notes | 1.35% | |||
Debt instrument maturity date | December 2019 | |||
Minimum [Member] | Mortgage Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Effective interest rate on the notes | 4.22% | |||
Maximum [Member] | Mortgage Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Effective interest rate on the notes | 6.01% | |||
NOVA Non-Core Portfolio [Member] | ||||
Debt Instrument [Line Items] | ||||
Disposition Date Of Property | [1] | Mar. 25, 2016 | ||
Mortgage and Other Indebtedness | $ 200 | |||
|
Debt - Summary of Company's Mortgage Debt (Detail) - USD ($) $ in Thousands |
3 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Aug. 04, 2011 |
||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Ownership Interest | 97.00% | ||||||||||||||
Debt, Weighted Average Interest Rate | 0.00% | ||||||||||||||
Unamortized fair value adjustments | $ 77 | $ 172 | |||||||||||||
Carrying amount of mortgages | $ 22,000 | 213 | |||||||||||||
Gateway Centre Building One Debt [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Mortgage and Other Indebtedness | $ 200 | ||||||||||||||
Contractual Interest Rate | 7.35% | ||||||||||||||
Effective Interest Rate | 5.88% | ||||||||||||||
Maturity Date | November 2016 | ||||||||||||||
Total Mortgage Debt | [1] | $ 0 | 212 | ||||||||||||
Effective Interest Rate | 5.88% | ||||||||||||||
440 First Street, NW Construction Loan | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Contractual Interest Rate | 2.50% | ||||||||||||||
Contractual Interest Rate | [2] | LIBOR + 2.50% | |||||||||||||
Maturity Date | May 30, 2017 | ||||||||||||||
Percentage Of Principal Loan Amount And Unpaid Accrued Interest Recourse | 50.00% | ||||||||||||||
Total Mortgage Debt | [3] | $ 32,216 | 32,216 | ||||||||||||
Storey Park [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Ownership Interest | 97.00% | ||||||||||||||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 6,000 | ||||||||||||||
Contractual Interest Rate | 2.50% | ||||||||||||||
Contractual Interest Rate | [2] | LIBOR + 2.50% | |||||||||||||
Maturity Date | October 2016 | ||||||||||||||
Total Mortgage Debt | [4] | $ 0 | 22,000 | ||||||||||||
Hillside I and II | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Contractual Interest Rate | 0.00% | ||||||||||||||
Effective Interest Rate | 0.00% | ||||||||||||||
Maturity Date | December 2016 | ||||||||||||||
Total Mortgage Debt | $ 12,256 | 12,368 | |||||||||||||
Effective Interest Rate | 0.00% | ||||||||||||||
Redland Corporate Center Buildings II & III | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Contractual Interest Rate | 0.00% | ||||||||||||||
Effective Interest Rate | 0.00% | ||||||||||||||
Maturity Date | November 2017 | ||||||||||||||
Total Mortgage Debt | $ 63,885 | 64,543 | |||||||||||||
Effective Interest Rate | 0.00% | ||||||||||||||
840 First Street, NE | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Contractual Interest Rate | 0.00% | ||||||||||||||
Effective Interest Rate | 0.00% | ||||||||||||||
Maturity Date | July 2020 | ||||||||||||||
Total Mortgage Debt | $ 35,550 | 35,888 | |||||||||||||
Effective Interest Rate | 0.00% | ||||||||||||||
Battlefield Corporate Center | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Contractual Interest Rate | 0.00% | ||||||||||||||
Effective Interest Rate | 0.00% | ||||||||||||||
Maturity Date | November 2020 | ||||||||||||||
Total Mortgage Debt | $ 3,441 | 3,526 | |||||||||||||
Effective Interest Rate | 0.00% | ||||||||||||||
One thousand two hundred eleven Connecticut Avenue NW. [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Contractual Interest Rate | 0.00% | ||||||||||||||
Effective Interest Rate | 0.00% | ||||||||||||||
Maturity Date | July 2022 | ||||||||||||||
Total Mortgage Debt | $ 28,810 | 29,110 | |||||||||||||
Effective Interest Rate | 0.00% | ||||||||||||||
1401 K Street, NW | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Contractual Interest Rate | 0.00% | ||||||||||||||
Effective Interest Rate | 0.00% | ||||||||||||||
Maturity Date | June 1, 2023 | ||||||||||||||
Total Mortgage Debt | $ 35,894 | 36,224 | |||||||||||||
Effective Interest Rate | 0.00% | ||||||||||||||
Eleven Dupont Circle [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Contractual Interest Rate | 0.00% | ||||||||||||||
Effective Interest Rate | 0.00% | ||||||||||||||
Maturity Date | September 2030 | ||||||||||||||
Total Mortgage Debt | $ 66,780 | 66,780 | |||||||||||||
Effective Interest Rate | 0.00% | ||||||||||||||
Northern Virginia Development Project [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Contractual Interest Rate | 1.85% | ||||||||||||||
Contractual Interest Rate | [2] | LIBOR + 1.85% | |||||||||||||
Maturity Date | September 2019 | ||||||||||||||
Total Mortgage Debt | $ 34,583 | 9,176 | |||||||||||||
Storey Park [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Ownership Interest | 97.00% | ||||||||||||||
Mortgage and Other Indebtedness | $ 22,000 | ||||||||||||||
Total Mortgage Debt | 22,000 | ||||||||||||||
Continuing Operations | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Total Mortgage Debt | 313,415 | 311,831 | |||||||||||||
Unamortized fair value adjustments | [5] | (3,613) | (4,234) | ||||||||||||
Carrying amount of mortgages | $ 309,879 | 307,769 | |||||||||||||
Mortgages [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Effective Interest Rate | 3.52% | ||||||||||||||
Effective Interest Rate | 3.52% | ||||||||||||||
Storey Park [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Total Mortgage Debt | [4] | $ 22,000 | 0 | ||||||||||||
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Unamortized fair value adjustments | $ 0 | $ 1 | |||||||||||||
|
Debt - Additional Information (Detail) $ in Thousands |
1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 25, 2016
USD ($)
|
Apr. 27, 2016
USD ($)
|
Sep. 30, 2016
USD ($)
shares
|
Jun. 30, 2016
USD ($)
Tranches
Rate
shares
|
Mar. 31, 2016
USD ($)
shares
|
Jun. 30, 2015
USD ($)
|
Jun. 30, 2016
USD ($)
shares
|
Jun. 30, 2015
USD ($)
|
Jul. 28, 2016
USD ($)
|
Jul. 18, 2016
USD ($)
|
Jul. 06, 2016
shares
|
Jun. 30, 2016
USD ($)
|
Jun. 30, 2016 |
Jun. 30, 2016
Integer
|
Jun. 30, 2016
Rate
|
Jun. 30, 2016
Interest_Rate_Swaps
|
Dec. 31, 2015
USD ($)
shares
|
|||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Amount borrowed | $ 103,000 | ||||||||||||||||||||||||
Basis spread over variable rate | Rate | 1.35% | ||||||||||||||||||||||||
Recourse mortgage debt | $ 753,377 | $ 724,038 | |||||||||||||||||||||||
Proceed to pay loan | $ 151,036 | $ 84,883 | |||||||||||||||||||||||
Interest rate during period | 1.80% | 1.90% | |||||||||||||||||||||||
Average interest rate at prior period end | 1.90% | ||||||||||||||||||||||||
Maximum outstanding borrowings | $ 204,000 | $ 156,000 | $ 218,000 | ||||||||||||||||||||||
Weighted average interest rate | 1.80% | ||||||||||||||||||||||||
Available capacity on the unsecured revolving credit facility | 161,100 | ||||||||||||||||||||||||
Annual commitment fee | 0.15% | ||||||||||||||||||||||||
Number of interest rate swap agreements | 11 | 11 | |||||||||||||||||||||||
Fixed effective interest rate | 1.50% | ||||||||||||||||||||||||
Payments for Repurchase of Redeemable Preferred Stock | $ 145,000 | 0 | |||||||||||||||||||||||
Line of Credit Facility, Increase (Decrease), Net | $ 13,000 | ||||||||||||||||||||||||
Principal payments from note receivable | $ 34,000 | 29,720 | |||||||||||||||||||||||
Series A Preferred Shares, shares outstanding | shares | 600,000.0 | 600,000.0 | 6,400,000 | ||||||||||||||||||||||
Debt Issuance Costs, Line of Credit Arrangements, Net | 5,300 | 5,300 | 2,800 | ||||||||||||||||||||||
Unsecured Debt | 299,339 | $ 299,404 | |||||||||||||||||||||||
Unsecured term loan | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Outstanding balance of three tranches | [1] | 300,000 | |||||||||||||||||||||||
Unsecured term loan | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Number of tranches | Tranches | 3 | ||||||||||||||||||||||||
Unsecured Debt | 300,000 | ||||||||||||||||||||||||
Unsecured revolving credit facility | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Unsecured revolving credit facility, net, effective interest rate of LIBOR plus 1.35%, maturing December 2019(3) | 147,000 | ||||||||||||||||||||||||
Proceed to pay loan | $ 57,000 | ||||||||||||||||||||||||
Line of Credit Facility, Increase (Decrease), Net | 5,000 | ||||||||||||||||||||||||
Tranche A | Unsecured term loan | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Outstanding balance of three tranches | [1] | 100,000 | |||||||||||||||||||||||
Northern Virginia Development Project [Member] | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Mortgage loans, net, effective interest rates ranging from 4.22% to 6.01%, maturing at various dates through September 2030(3)(4) | 34,583 | 9,176 | |||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.85% | ||||||||||||||||||||||||
Line of Credit Facility, Increase (Decrease), Net | 18,000 | ||||||||||||||||||||||||
440 First Street, NW Construction Loan | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Mortgage loans, net, effective interest rates ranging from 4.22% to 6.01%, maturing at various dates through September 2030(3)(4) | [2] | 32,216 | $ 32,216 | ||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.50% | ||||||||||||||||||||||||
Percentage of outstanding principal | 50.00% | ||||||||||||||||||||||||
Tranche C | Unsecured term loan | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Outstanding balance of three tranches | [1] | 100,000 | |||||||||||||||||||||||
Interest Rate Swap | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Fixed effective interest rate | 1.505% | 0.00% | |||||||||||||||||||||||
Amount on variable rate debt | 300,000 | ||||||||||||||||||||||||
Unused lines of credit | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Weighted average borrowings outstanding on unsecured revolving credit facility | 162,300 | $ 149,400 | $ 165,900 | $ 171,300 | |||||||||||||||||||||
NOVA Non-Core Portfolio | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Proceeds from sale of properties | 52,700 | $ 90,500 | $ 90,501 | [3] | |||||||||||||||||||||
Northern Virginia Development Project [Member] | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Borrowing capacity of a construction loan | $ 43,700 | ||||||||||||||||||||||||
Nine Hundered And Fifty Street Nw [Member] | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Principal payments from note receivable | $ 34,000 | ||||||||||||||||||||||||
Subsequent Event [Member] | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Amount borrowed | $ 15,000 | ||||||||||||||||||||||||
Subsequent Event [Member] | Unsecured revolving credit facility | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Unsecured revolving credit facility, net, effective interest rate of LIBOR plus 1.35%, maturing December 2019(3) | $ 135,000 | ||||||||||||||||||||||||
Proceed to pay loan | $ 27,000 | ||||||||||||||||||||||||
Subsequent Event [Member] | Tranche A | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.00% | ||||||||||||||||||||||||
Subsequent Event [Member] | Tranche C | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.00% | ||||||||||||||||||||||||
Subsequent Event [Member] | Interest Rate Swap | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Fixed effective interest rate | 1.80% | ||||||||||||||||||||||||
Amount on variable rate debt | $ 60,000 | ||||||||||||||||||||||||
Series A Preferred Stock [Member] | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Stock Redeemed or Called During Period, Shares | shares | 3,600,000 | 2,200,000 | 5,800,000 | ||||||||||||||||||||||
Payments for Repurchase of Redeemable Preferred Stock | $ 90,000 | ||||||||||||||||||||||||
Series A Preferred Shares, shares outstanding | shares | 6,400,000 | ||||||||||||||||||||||||
Series A Preferred Stock [Member] | Subsequent Event [Member] | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Stock Redeemed or Called During Period, Shares | shares | 600,000 | ||||||||||||||||||||||||
Series A Preferred Shares, shares outstanding | shares | 600,000 | ||||||||||||||||||||||||
Maximum [Member] | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Annual commitment fee | 0.25% | ||||||||||||||||||||||||
|
Debt - Unsecured Term Loan (Detail) $ in Thousands |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Jun. 30, 2016
USD ($)
| ||||||
Tranche A | ||||||
Debt Instrument [Line Items] | ||||||
Maturity Date | December 2020 | |||||
Interest Rate | LIBOR, plus 130 basis points | [1] | ||||
Basis spread over variable rate | 1.30% | |||||
Tranche B | ||||||
Debt Instrument [Line Items] | ||||||
Maturity Date | June 2021 | |||||
Interest Rate | LIBOR, plus 130 basis points | [1] | ||||
Basis spread over variable rate | 1.30% | |||||
Tranche C | ||||||
Debt Instrument [Line Items] | ||||||
Maturity Date | December 2022 | |||||
Interest Rate | LIBOR, plus 160 basis points | [1] | ||||
Basis spread over variable rate | 1.60% | |||||
Unsecured term loan | ||||||
Debt Instrument [Line Items] | ||||||
Carrying value of the debt instruments | $ 300,000 | [2] | ||||
Unsecured term loan | Tranche A | ||||||
Debt Instrument [Line Items] | ||||||
Carrying value of the debt instruments | 100,000 | [2] | ||||
Unsecured term loan | Tranche B | ||||||
Debt Instrument [Line Items] | ||||||
Carrying value of the debt instruments | 100,000 | [2] | ||||
Unsecured term loan | Tranche C | ||||||
Debt Instrument [Line Items] | ||||||
Carrying value of the debt instruments | $ 100,000 | [2] | ||||
|
Derivative Instruments - Summary of Interest Rate Swap Agreements (Detail) - 3 months ended Jun. 30, 2016 - USD ($) $ in Thousands |
Total |
Total |
Total |
|||
---|---|---|---|---|---|---|
Derivatives, Fair Value [Line Items] | ||||||
Fixed LIBOR Interest Rate | 1.50% | |||||
Interest Rate Swap | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional Amount | $ 300,000 | |||||
Fixed LIBOR Interest Rate | 1.505% | 0.00% | ||||
Interest Rate Swap One | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Maturity Date | [1] | Jul. 31, 2016 | ||||
Notional Amount | $ 35,000 | |||||
Interest Rate Contractual Component | LIBOR | |||||
Fixed LIBOR Interest Rate | 0.00% | |||||
Interest Rate Swap Two | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Maturity Date | [1] | Jul. 31, 2016 | ||||
Notional Amount | $ 25,000 | |||||
Interest Rate Contractual Component | LIBOR | |||||
Fixed LIBOR Interest Rate | 0.00% | |||||
Interest Rate Swap Three | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Maturity Date | Jul. 31, 2017 | |||||
Notional Amount | $ 30,000 | |||||
Interest Rate Contractual Component | LIBOR | |||||
Fixed LIBOR Interest Rate | 0.00% | |||||
Interest Rate Swap Four | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Maturity Date | Jul. 31, 2017 | |||||
Notional Amount | $ 30,000 | |||||
Interest Rate Contractual Component | LIBOR | |||||
Fixed LIBOR Interest Rate | 0.00% | |||||
Interest Rate Swap Five | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Maturity Date | Jul. 31, 2017 | |||||
Notional Amount | $ 25,000 | |||||
Interest Rate Contractual Component | LIBOR | |||||
Fixed LIBOR Interest Rate | 0.00% | |||||
Interest Rate Swap Six | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Maturity Date | Jul. 31, 2017 | |||||
Notional Amount | $ 12,500 | |||||
Interest Rate Contractual Component | LIBOR | |||||
Fixed LIBOR Interest Rate | 0.00% | |||||
Interest Rate Swap Seven [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Maturity Date | Jul. 31, 2017 | |||||
Notional Amount | $ 50,000 | |||||
Interest Rate Contractual Component | LIBOR | |||||
Fixed LIBOR Interest Rate | 0.00% | |||||
Interest Rate Swap Eight [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Maturity Date | Jul. 31, 2018 | |||||
Notional Amount | $ 12,500 | |||||
Interest Rate Contractual Component | LIBOR | |||||
Fixed LIBOR Interest Rate | 0.00% | |||||
Interest Rate Swap Nine [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Maturity Date | Jul. 31, 2018 | |||||
Notional Amount | $ 30,000 | |||||
Interest Rate Contractual Component | LIBOR | |||||
Fixed LIBOR Interest Rate | 0.00% | |||||
Interest Rate Swap Ten [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Maturity Date | Jul. 31, 2018 | |||||
Notional Amount | $ 25,000 | |||||
Interest Rate Contractual Component | LIBOR | |||||
Fixed LIBOR Interest Rate | 0.00% | |||||
Interest Rate Swap Eleven | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Maturity Date | Jul. 31, 2018 | |||||
Notional Amount | $ 25,000 | |||||
Interest Rate Contractual Component | LIBOR | |||||
Fixed LIBOR Interest Rate | 0.00% | |||||
|
Derivative Instruments - Additional Information (Detail) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2016
USD ($)
|
Jun. 30, 2015
USD ($)
|
Jun. 30, 2016
USD ($)
|
Jun. 30, 2015
USD ($)
|
Jun. 30, 2016 |
Jun. 30, 2016
Integer
|
Jun. 30, 2016
Rate
|
Jun. 30, 2016
Interest_Rate_Swaps
|
|
Derivatives, Fair Value [Line Items] | ||||||||
Number of interest rate swap agreements | 11 | 11 | ||||||
Fixed effective interest rate | 1.50% | |||||||
Interest Rate Swap | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Fixed effective interest rate | 1.505% | 0.00% | ||||||
Amount on variable rate debt | $ 300,000 | $ 300,000 | ||||||
Interest Rate Swap | Interest Expense | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Accumulated other comprehensive loss reclassified as an increase in interest expense | $ 800 | $ 1,000 | 1,600 | $ 2,000 | ||||
Estimated accumulated other comprehensive loss reclassified as an increase in interest expense over the following twelve months | $ 2,300 |
Fair Value Measurements - Fair Value of Assets and Liabilities (Detail) - Recurring Measurements - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Recurring Measurements: | ||
Derivative instrument-swap liabilities | $ 3,158 | $ 2,491 |
Assets, Fair Value Disclosure, Nonrecurring | 55,138 | 104,625 |
Level 1 | ||
Recurring Measurements: | ||
Derivative instrument-swap assets | 0 | 0 |
Derivative instrument-swap liabilities | 0 | 0 |
Level 2 | ||
Recurring Measurements: | ||
Derivative instrument-swap assets | 55,138 | 90,625 |
Derivative instrument-swap liabilities | 3,158 | 2,491 |
Level 3 | ||
Recurring Measurements: | ||
Derivative instrument-swap assets | 0 | 14,000 |
Derivative instrument-swap liabilities | $ 0 | $ 0 |
Fair Value Measurements - Additional Information (Detail) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016
USD ($)
snapshot
|
Mar. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Jun. 30, 2015
USD ($)
|
Jun. 30, 2016
USD ($)
|
Jun. 30, 2015
USD ($)
|
Jun. 30, 2016
Integer
|
Jun. 30, 2016
Interest_Rate_Swaps
|
|||
Derivatives, Fair Value [Line Items] | ||||||||||
Impairment of rental property | $ 2,772 | $ 0 | $ 2,772 | $ 0 | ||||||
Impairment of rental property | 2,772 | 2,772 | 0 | |||||||
Gain (Loss) on Sale of Properties | 0 | $ (1,200) | $ 0 | (1,155) | $ 0 | |||||
Number of Interest Rate Derivatives Held | 11 | 11 | ||||||||
Debt Issuance Costs, Net | 7,100 | $ 8,000 | 7,100 | |||||||
Interest Rate Swap | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Notional Amount | $ 300,000 | $ 300,000 | ||||||||
Minimum number of daily snapshot used for valuation of interest rate swap agreements | snapshot | 7,500 | |||||||||
NOVA Non-Core Portfolio [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Disposition Date Of Property | [1] | Mar. 25, 2016 | ||||||||
Mortgage and Other Indebtedness | 200 | |||||||||
Impairment of rental property | 26,900 | |||||||||
One Fair Oaks [Member] | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Impairment of rental property | $ 33,900 | |||||||||
|
Fair Value Measurements - Fair Value of Debt Instruments (Detail) $ in Thousands |
Jun. 30, 2016
USD ($)
ft²
|
Dec. 31, 2015
USD ($)
|
Sep. 30, 2015
ft²
|
Jun. 30, 2015
ft²
|
[2] |
Mar. 31, 2015
ft²
|
Feb. 24, 2015
USD ($)
|
Apr. 30, 2011
ft²
|
|||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Financial Assets: | |||||||||||||||||||||
Carrying value of notes receivable | $ 0 | $ 34,000 | |||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||
Area of real estate property | ft² | [1] | 6,543,762 | 7,957,016 | ||||||||||||||||||
Carrying Value | |||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||
Carrying value of notes receivable | [3] | $ 0 | 34,000 | ||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||
Carrying value of the debt instruments | 782,492 | 732,216 | |||||||||||||||||||
Carrying Value | Mortgages [Member] | |||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||
Carrying value of the debt instruments | [4],[5] | 335,492 | 312,216 | ||||||||||||||||||
Carrying Value | Unsecured term loan | |||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||
Carrying value of the debt instruments | [4] | 300,000 | 300,000 | ||||||||||||||||||
Carrying Value | Unsecured revolving credit facility | |||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||
Carrying value of the debt instruments | [4] | 147,000 | 120,000 | ||||||||||||||||||
Fair Value | |||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||
Fair value of notes receivable | [3] | 0 | 34,000 | ||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||
Fair value of the debt instruments | 771,884 | 718,541 | |||||||||||||||||||
Fair Value | Mortgages [Member] | |||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||
Fair value of the debt instruments | [5] | 324,884 | 298,541 | ||||||||||||||||||
Fair Value | Unsecured term loan | |||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||
Fair value of the debt instruments | 300,000 | 300,000 | |||||||||||||||||||
Fair Value | Unsecured revolving credit facility | |||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||
Fair value of the debt instruments | $ 147,000 | $ 120,000 | |||||||||||||||||||
America Square [Member] | |||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||
Area of real estate property | ft² | 461,000 | ||||||||||||||||||||
Loans Receivable, Gross, Commercial, Real Estate | $ 29,700 | ||||||||||||||||||||
Rumsey Center [Domain] | |||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||
Area of real estate property | ft² | 135,015 | ||||||||||||||||||||
Richmond [Member] | |||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||
Area of real estate property | ft² | [6] | 827,900 | |||||||||||||||||||
|
Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions |
1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 15, 2016 |
Aug. 08, 2016 |
Jul. 25, 2016 |
Jul. 06, 2016 |
May 16, 2016 |
May 09, 2016 |
Apr. 26, 2016 |
Jan. 19, 2016 |
Apr. 27, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Jun. 30, 2016 |
Dec. 31, 2015 |
Jul. 31, 2015 |
|
Dividends Payable [Line Items] | |||||||||||||||
Series A Preferred Shares, shares outstanding | 600,000.0 | 600,000.0 | 6,400,000 | ||||||||||||
Common stock, shares outstanding | 58,129,000 | 58,129,000 | 57,718,000 | ||||||||||||
Dividend declared date | Apr. 26, 2016 | ||||||||||||||
Series A Preferred Shares | |||||||||||||||
Dividends Payable [Line Items] | |||||||||||||||
Series A Preferred Shares, shares outstanding | 6,400,000 | ||||||||||||||
Stock Redeemed or Called During Period, Shares | 3,600,000 | 2,200,000 | 5,800,000 | ||||||||||||
Preferred Stock, Redemption Price Per Share | $ 25.00 | $ 25.00 | |||||||||||||
Preferred Stock, Redemption Date | Jan. 19, 2016 | Apr. 27, 2016 | |||||||||||||
Common Shares | |||||||||||||||
Dividends Payable [Line Items] | |||||||||||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 5,000,000 | ||||||||||||||
Common share dividend per share declared | $ 0.10 | ||||||||||||||
Common share dividend per share annualized | $ 0.40 | ||||||||||||||
Dividend paid date | May 16, 2016 | ||||||||||||||
Dividend record date | May 09, 2016 | ||||||||||||||
Stock Repurchase Program Expiration Date | Jul. 31, 2016 | ||||||||||||||
Stock Repurchased and Retired During Period, Shares | 924,198 | ||||||||||||||
Stock Repurchased and Retired During Period, Weighted Average Share Price | $ 10.99 | ||||||||||||||
Stock Repurchased and Retired During Period, Value | $ 10.2 | ||||||||||||||
Subsequent Event [Member] | |||||||||||||||
Dividends Payable [Line Items] | |||||||||||||||
Dividend declared date | Jul. 25, 2016 | ||||||||||||||
Subsequent Event [Member] | Series A Preferred Shares | |||||||||||||||
Dividends Payable [Line Items] | |||||||||||||||
Series A Preferred Shares, shares outstanding | 600,000 | ||||||||||||||
Stock Redeemed or Called During Period, Shares | 600,000 | ||||||||||||||
Preferred Stock, Redemption Date | Jul. 06, 2016 | ||||||||||||||
Subsequent Event [Member] | Common Shares | |||||||||||||||
Dividends Payable [Line Items] | |||||||||||||||
Common share dividend per share declared | $ 0.10 | ||||||||||||||
Common share dividend per share annualized | $ 0.40 | ||||||||||||||
Dividend paid date | Aug. 15, 2016 | ||||||||||||||
Dividend record date | Aug. 08, 2016 |
Equity - Company's Allocation Between Non-controlling Interests (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Noncontrolling Interest [Line Items] | ||||||
Net Income (Loss) Attributable to Parent | $ (1,602) | $ 590 | $ (1,556) | $ 1,195 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Noncontrolling interests in a consolidated partnership | 690 | 690 | $ 800 | |||
Total equity | 462,571 | 691,096 | 462,571 | 691,096 | 625,328 | $ 710,905 |
Net income (loss) | (1,666) | 1,193 | ||||
Changes in ownership, net | (141,506) | 3,219 | ||||
Distributions to owners | 18,953 | 23,907 | ||||
Other comprehensive income | (632) | (314) | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||
Beginning Balance, Redeemable noncontrolling interests | 28,813 | 33,332 | ||||
Net income (loss), Redeemable noncontrolling interests | (427) | (225) | ||||
Change in ownership, net, Redeemable noncontrolling interests | (1,417) | (1,916) | ||||
Distributions to owners, Redeemable noncontrolling interests | 651 | 788 | ||||
Other comprehensive income, Redeemable noncontrolling interests | (28) | (14) | ||||
Ending Balance, Redeemable noncontrolling interests | 26,290 | 30,389 | 26,290 | 30,389 | ||
First Potomac Realty Trust | ||||||
Noncontrolling Interest [Line Items] | ||||||
Net Income (Loss) Attributable to Parent | (1,556) | 1,195 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning Balance | 624,528 | 710,007 | ||||
Changes in ownership, net | (141,506) | 3,219 | ||||
Distributions to owners | 18,953 | 23,811 | ||||
Other comprehensive income | (632) | (314) | ||||
Ending Balance | 461,881 | 690,296 | 461,881 | 690,296 | ||
Non-redeemable Noncontrolling Interests | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Noncontrolling interests in a consolidated partnership | $ 690 | $ 800 | 690 | 800 | $ 800 | $ 898 |
Net income (loss) | (110) | (2) | ||||
Changes in ownership, net | 0 | 0 | ||||
Distributions to owners | 0 | 96 | ||||
Other comprehensive income | $ 0 | $ 0 |
Equity - Company's Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Equity [Abstract] | ||||
Beginning balance | $ (2,360) | $ (3,268) | ||
Net unrealized loss on derivative instruments | (660) | (328) | ||
Ending balance | $ (2,992) | $ (3,582) | (2,992) | (3,582) |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Noncontrolling Interest | $ 9 | $ 32 | $ (28) | $ (14) |
Noncontrolling Interests - Additional Information (Detail) ft² in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jun. 30, 2016
USD ($)
ft²
shares
|
Jun. 30, 2016
USD ($)
shares
|
Dec. 31, 2015
USD ($)
|
Jun. 30, 2015
shares
|
Aug. 04, 2011 |
|||
Business Acquisition [Line Items] | |||||||
Cost to acquire all of the outstanding common Operating Partnership units not owned by the Company | $ | $ 23.7 | $ 23.7 | |||||
Fair value adjustment, cost basis | $ | $ 3.2 | $ 3.2 | $ 4.0 | ||||
Outstanding Operating Partnership units not owned by the Company | 2,577,478 | ||||||
Operating Partnership units not owned by Company | 0.00% | ||||||
Common operating partnership units redeemed for cash | 41,591 | 41,591 | 11,508 | ||||
Common operating partnership units redeemed for common shares | 0 | 0 | |||||
Ownership Interest | 97.00% | ||||||
Area Of Land Available For Development In Additional Building Space | ft² | 1.3 | ||||||
Storey Park [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Ownership Interest | 97.00% | 97.00% | |||||
Disposition Date Of Property | [1] | Jul. 25, 2016 | |||||
|
Share-Based Payments - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Payment Award, Shares Purchased for Award | 36,828 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 4,100,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 11,500,000 | 11,500,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 5,500,000 | 5,500,000 | ||
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense associated with trustee share based awards | $ 0.5 | $ 0.7 | $ 0.9 | $ 1.3 |
Unrecognized compensation cost related to non-vested shares | $ (4.4) | $ (4.4) | ||
Non-Vested Share Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average period for recognition of non-vested shares | 3 years 5 months | |||
Executive Officer [Member] | RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Payment Award, Shares Purchased for Award | 36,828 |
Share-Based Payments - Summary of Company's Non-vested Share Awards (Detail) |
3 Months Ended |
---|---|
Jun. 30, 2016
$ / shares
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Non-vested Shares, Beginning Balance | shares | 531,502 |
Non-vested Shares, Granted | shares | 36,828 |
Non-vested Shares, Vested | shares | (36,261) |
Non-vested Shares, Ending Balance | shares | 532,069 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 10.45 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 8.96 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 10.94 |
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 10.31 |
Segment Information - Additional Information (Detail) |
3 Months Ended |
---|---|
Jun. 30, 2016
segment
| |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 4 |
Segment Information - Summary of Segment Information (Detail) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016
USD ($)
ft²
Integer
building
|
Jun. 30, 2015
USD ($)
ft²
Integer
|
Jun. 30, 2016
USD ($)
ft²
Integer
building
|
Jun. 30, 2015
USD ($)
ft²
Integer
|
Dec. 31, 2015
USD ($)
|
||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Number of buildings | Integer | [1] | 73 | 112 | [2] | 73 | 112 | [2] | |||||||||||
Square feet | ft² | [1] | 6,543,762 | 7,957,016 | [2] | 6,543,762 | 7,957,016 | [2] | |||||||||||
Total revenues | $ 38,493 | $ 43,039 | $ 81,190 | $ 86,888 | ||||||||||||||
Property operating expense | (8,543) | (10,661) | (20,080) | (23,775) | ||||||||||||||
Real estate taxes and insurance | (4,920) | (4,811) | (10,136) | (9,854) | ||||||||||||||
Total property operating income | 25,030 | 27,567 | 50,974 | 53,259 | ||||||||||||||
Depreciation and amortization expense | (15,141) | (16,817) | (30,147) | (33,151) | ||||||||||||||
General and administrative | (4,305) | (4,979) | (8,884) | (10,505) | ||||||||||||||
Impairment of Real Estate | (2,772) | (2,772) | 0 | |||||||||||||||
Other expenses | (4,804) | (5,295) | (11,264) | (8,028) | ||||||||||||||
Loss from discontinued operations | 0 | 0 | 0 | (607) | ||||||||||||||
Net (loss) income | (1,992) | 476 | (2,093) | 968 | ||||||||||||||
Total assets | 1,320,046 | [2] | 1,532,197 | [2],[3] | 1,320,046 | [2] | 1,532,197 | [2],[3] | $ 1,442,406 | |||||||||
Capital expenditure | [4] | 18,895 | 12,083 | 41,539 | 31,325 | |||||||||||||
Debt Issuance Costs, Line of Credit Arrangements, Net | 2,800 | 5,300 | 2,800 | 5,300 | ||||||||||||||
Capital expenditures for corporate assets not allocated to any reportable segments | 72 | 0 | 192 | 309 | ||||||||||||||
Corporate assets not allocated to any reportable segments | $ 18,141 | $ 54,043 | $ 18,141 | $ 54,043 | ||||||||||||||
Washington, D.C. | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Number of buildings | 6 | 6 | [1],[2] | 6 | 6 | [1],[2] | ||||||||||||
Square feet | ft² | 917,241 | 914,912 | [1],[2] | 917,241 | 914,912 | [1],[2] | ||||||||||||
Total revenues | $ 11,580 | $ 11,154 | $ 22,869 | $ 22,186 | ||||||||||||||
Property operating expense | (2,563) | (2,987) | (5,532) | (6,126) | ||||||||||||||
Real estate taxes and insurance | (2,422) | (1,956) | (4,794) | (3,979) | ||||||||||||||
Total property operating income | 6,595 | 6,211 | 12,543 | 12,081 | ||||||||||||||
Total assets | 503,484 | [2] | 503,259 | 503,484 | [2] | 503,259 | ||||||||||||
Capital expenditure | [4] | $ 3,287 | $ 3,983 | $ 8,198 | $ 7,419 | |||||||||||||
Maryland | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Number of buildings | 34 | 38 | [1],[2] | 34 | 38 | [1],[2] | ||||||||||||
Square feet | ft² | 1,885,759 | 1,997,789 | [1],[2] | 1,885,759 | 1,997,789 | [1],[2] | ||||||||||||
Total revenues | $ 10,900 | $ 11,034 | $ 22,488 | $ 22,739 | ||||||||||||||
Property operating expense | (2,097) | (2,645) | (5,329) | (6,663) | ||||||||||||||
Real estate taxes and insurance | (960) | (896) | (1,889) | (1,788) | ||||||||||||||
Total property operating income | 7,843 | 7,493 | 15,270 | 14,288 | ||||||||||||||
Total assets | 335,932 | [2] | 356,736 | 335,932 | [2] | 356,736 | ||||||||||||
Capital expenditure | [4] | $ 2,402 | $ 2,153 | $ 3,361 | $ 4,317 | |||||||||||||
Northern Virginia | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Number of buildings | 14 | 49 | [1],[2] | 14 | 49 | [1],[2] | ||||||||||||
Square feet | ft² | 1,716,904 | 3,020,388 | [1],[2] | 1,716,904 | 3,020,388 | [1],[2] | ||||||||||||
Total revenues | $ 8,707 | $ 13,700 | $ 21,014 | $ 27,815 | ||||||||||||||
Property operating expense | (2,194) | (3,191) | (5,514) | (7,257) | ||||||||||||||
Real estate taxes and insurance | (943) | (1,345) | (2,240) | (2,894) | ||||||||||||||
Total property operating income | 5,570 | 9,164 | 13,260 | 17,664 | ||||||||||||||
Total assets | $ 298,533 | [2] | 450,324 | 298,533 | [2] | 450,324 | ||||||||||||
Capital expenditure | [4] | $ 5,037 | $ 28,054 | $ 15,880 | ||||||||||||||
Southern Virginia | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Number of buildings | 19 | 19 | [1],[2] | 19 | 19 | [1],[2] | ||||||||||||
Square feet | ft² | 2,023,858 | 2,023,927 | [1],[2] | 2,023,858 | 2,023,927 | [1],[2] | ||||||||||||
Total revenues | $ 7,306 | $ 7,151 | $ 14,819 | $ 14,148 | ||||||||||||||
Property operating expense | (1,689) | (1,838) | (3,705) | (3,729) | ||||||||||||||
Real estate taxes and insurance | (595) | (614) | (1,213) | (1,193) | ||||||||||||||
Total property operating income | 5,022 | 4,699 | 9,901 | 9,226 | ||||||||||||||
Total assets | 163,956 | [2] | 167,835 | 163,956 | [2] | 167,835 | ||||||||||||
Capital expenditure | [4] | 837 | $ 910 | $ 1,734 | $ 3,400 | |||||||||||||
Northern Virginia | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Capital expenditure | [4] | $ 12,297 | ||||||||||||||||
|
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