Investment in Real Estate (Tables)
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12 Months Ended |
Dec. 31, 2016 |
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| Business Acquisition [Line Items] |
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| Schedule of Recognized Identified Assets Acquired and Liabilities Assumed |
The differences between the contracts and respective purchase prices relate to credits received for prorations and similar matters: | | | | | | | | | | 233 Wilshire | | 12100 Wilshire | | | | | Building square footage | 129 |
| | 365 |
| | | | | Investment in real estate: | | | | Land | $ | 9,263 |
| | $ | 20,164 |
| Buildings and improvements | 126,938 |
| | 199,698 |
| Tenant improvements and lease intangibles | 3,488 |
| | 9,057 |
| Acquired above and below-market leases, net | (1,838 | ) | | (4,523 | ) | Net assets and liabilities acquired | $ | 137,851 |
| | $ | 224,396 |
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| Westwood Submarket [Member] |
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| Business Acquisition [Line Items] |
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| Schedule of Recognized Identified Assets Acquired and Liabilities Assumed |
The table below (in thousands) summarizes our purchase accounting and funding sources for the acquisition: | | | | | | | | | | | Sources and Uses of Funds | Actual at Closing(1) | Pro Forma Sell Down Adjustments (2) | Pro Forma | | | | | Building square footage | 1,725 |
| | 1,725 |
| | | | | Uses of funds - Investment in real estate: | | | | Land | $ | 94,996 |
| | $ | 94,996 |
| Buildings and improvements | 1,236,786 |
| | 1,236,786 |
| Tenant improvements and lease intangibles | 50,439 |
| | 50,439 |
| Acquired above and below-market leases, net(3) | (49,708 | ) | | (49,708 | ) | Net assets and liabilities acquired(4) | $ | 1,332,513 |
| | $ | 1,332,513 |
| | | | | Source of funds: | | | | Cash on hand(5) | $ | 153,745 |
| $ | — |
| $ | 153,745 |
| Credit facility(6) | 290,000 |
| (240,000 | ) | 50,000 |
| Non-recourse term loan, net(7) | 568,768 |
| — |
| 568,768 |
| Noncontrolling interests | 320,000 |
| 240,000 |
| 560,000 |
| Total source of funds | $ | 1,332,513 |
| $ | — |
| $ | 1,332,513 |
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________________________________________________ | | (1) | Reflects the purchase of the Westwood Portfolio on the Acquisition Date when we contributed sixty-percent of the equity to the consolidated JV. |
| | (2) | Reflects our sale of thirty-percent of the equity in the JV on the Sell Down Date, presented as of the Acquisition Date, treated as in-substance real estate, which reduced our ownership interest in the JV to thirty-percent. We sold the interest for the $240.0 million we contributed plus an additional $1.1 million to compensate us for our costs of holding the investment. We recognized a gain on the sale of $1.1 million, which is included in Gains on sales of investments in real estate in our consolidated statement of operations. We used the proceeds from the sale to pay down the balance owed on our revolving credit facility. |
| | (3) | As of the Acquisition Date, the weighted average remaining life of the acquired above-and below-market leases was approximately 4.4 years. |
| | (4) | The difference between the contract and purchase price related to credits received for prorations and similar matters. |
| | (5) | Cash paid included a $75.0 million deposit paid before December 31, 2015, which is included in Other assets in the consolidated balance sheets as of December 31, 2015, $67.5 million paid at closing, and $11.2 million spent on loan costs in connection with securing the $580.0 million term loan. |
| | (6) | Reflects borrowings using the Company's credit facility, which bears interest at LIBOR + 1.40%. |
| | (7) | Reflects 100% (not the Company's pro rata share) of a $580.0 million interest-only non-recourse loan, net of deferred loan costs of $11.2 million incurred to secure the loan. The loan has a seven-year term and is secured by the Westwood Portfolio. Interest on the loan is floating at LIBOR + 1.40%, which has been effectively fixed at 2.37% per annum for five years through interest rate swaps. See Note 7 for information regarding our consolidated debt. |
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| Schedule of Business Acquisitions, by Acquisition |
The table below (in thousands) presents the revenues and net income attributable to common stockholders from the Westwood Portfolio included in the consolidated statement of operations for the year ended December 31, 2016:
| | | | | Total office revenues | $ | 80,464 |
| Net income attributable to common stockholders(1) | $ | 2,998 |
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______________________________________________________ | | (1) | Excluding transaction costs, net income attributable to common stockholders was $5.0 million. |
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| Business Acquisition, Pro Forma Information |
The table below (in thousands, except per share information) presents the historical results of Douglas Emmett, Inc. and the Westwood Portfolio on a combined basis as if the acquisition was completed on January 1, 2015, based on our thirty-percent ownership interest and includes adjustments that give effect to events that are (i) directly attributable to the acquisition, (ii) expected to have a continuing impact on the Company, and (iii) are factually supportable. The pro forma reflects the hypothetical impact of the acquisition on the Company and does not purport to represent what the Company’s results of operations would have been had the acquisition occurred on January 1, 2015, or project the results of operations for any future period. The information does not reflect cost savings or operating synergies that may result from the acquisition or the costs to achieve any such potential cost savings or operating synergies. Transaction costs related to the acquisition have been excluded. | | | | | | | | | | Year Ended December 31, | | 2016 | | 2015 | | | | | Pro forma revenues | $ | 755,878 |
| | $ | 724,596 |
| Pro forma net income attributable to common stockholders | $ | 84,319 |
| | $ | 59,374 |
| Pro forma net income attributable to common stockholders per share – basic | $ | 0.562 |
| | $ | 0.404 |
| Pro forma net income attributable to common stockholders per share – diluted | $ | 0.547 |
| | $ | 0.392 |
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| Harbor Court Land and First Financial Plaza [Member] |
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| Business Acquisition [Line Items] |
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| Schedule of Recognized Identified Assets Acquired and Liabilities Assumed |
The table below (in thousands) summarizes our purchase accounting for the acquisitions:
| | | | | | | | | | Harbor Court Land | | First Financial Plaza | | | | | Building square footage (if applicable) | N/A |
| | 227 |
| | | | | Investment in real estate: | | | | Land | $ | 12,060 |
| | $ | 12,092 |
| Buildings and improvements | 15,440 |
| | 75,039 |
| Tenant improvements and lease intangibles | — |
| | 6,065 |
| Acquired above and below-market leases, net | — |
| | (790 | ) | Net assets and liabilities acquired | $ | 27,500 |
| | $ | 92,406 |
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| Carthay Campus and Weana [Member] |
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| Business Acquisition [Line Items] |
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| Schedule of Recognized Identified Assets Acquired and Liabilities Assumed |
The table below (in thousands, except apartment units) summarizes our purchase accounting for the acquisitions:
| | | | | | | | | | Carthay Campus | | Waena | | | | | Building square footage | 216 |
| | N/A |
| Apartment units | N/A |
| | 468 |
| | | | | Investment in real estate: | | | | Land | $ | 6,595 |
| | $ | 26,864 |
| Buildings and improvements | 64,511 |
| | 117,541 |
| Tenant improvements and lease intangibles | 5,943 |
| | 1,732 |
| Acquired above and below-market leases, net | (2,580 | ) | | (137 | ) | Net assets and liabilities acquired | $ | 74,469 |
| | $ | 146,000 |
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