Transactions With Parkway Properties, Inc. (Tables)

12 Months Ended

Dec. 31, 2016

Business Combinations [Abstract]

Summary of purchase price allocation

The purchase price was allocated as follows (in thousands):

Real estate assets	$	3,441,859
Cash	63,193
Restricted cash	30,560
Notes and other receivables	36,388
Investment in unconsolidated joint ventures	58,875
Intangible assets	330,221
Other assets	10,549
	$	3,971,645
Notes payable	$	1,473,810
Accounts payable and accrued expenses	136,934
Intangible liabilities	106,480
Other liabilities	12,076
Nonredeemable noncontrolling interests (excluding CPLP)	292,337
	$	2,021,637
Total purchase price	$	1,950,008

The following tables summarize allocations of the estimated fair values of the assets and liabilities of the operating property acquisitions discussed above (in thousands):

	2014
	Northpark Town Center			Fifth Third Center
Tangible assets:
Land and improvements	$	24,577		$	22,863
Building	274,151			163,649
Tenant improvements	21,674			16,781
Other assets	—			1,014
Tangible assets	320,402			204,307
Intangible assets:
Above-market leases	2,846			632
In-place leases	30,159			17,096
Below-market ground leases	—			338
Total intangible assets	33,005			18,066
Tangible liabilities:
Accounts payable and accrued expenses	—			(1,026		)
Total tangible liabilities	—			(1,026		)
Intangible liabilities:
Below-market leases	(8,018		)	(9,374		)
Total intangible liabilities	(8,018		)	(9,374		)
Total net assets acquired	$	345,389		$	211,973

Unaudited supplemental pro forma information

The following unaudited supplemental pro forma information presented is based upon the Company's historical consolidated statements of operations, adjusted as if the Merger had occurred on January 1, 2015. This supplemental pro forma information is not necessarily indicative of future results, or of actual results, that would have been achieved had the transactions been consummated at the beginning of each period.

	2016		2015
	(unaudited, in thousands, except per share amounts)
Revenues	$	732,117	$	855,318
Income from continuing operations	179,625		237,909
Net income	174,117		237,323
Net income available to common stockholders	166,375		208,574
Per share information:
Basic	$	0.42	$	0.53
Diluted	$	0.41	$	0.53

The following unaudited supplemental pro forma information is presented for the acquisitions of Northpark Town Center and Fifth Third Center for the year ended December 31, 2014. This pro forma information is based on the Company's historical consolidated statement of operations, as adjusted, as if the acquisitions had occurred at the beginning of 2013. The supplemental pro forma information is not necessarily indicative of future results or of actual results that would have been achieved had the transactions been consummated at the beginning of 2014 (in thousands, except per share amounts).

Revenues	$	388,791
Income from continuing operations	31,695
Net income	52,853
Net income available to common stockholders	45,364
Per share information:
Basic	$	0.22
Diluted	$	0.22

Summary of discontinued operations

The following is a summary of the assets and liabilities transferred to New Parkway as part of the Spin-Off (in thousands):

Real estate assets	$	1,696,080
Cash	192,755
Notes and other receivables	43,752
Intangible assets	143,294
Other assets	6,669
	$	2,082,550
Notes payable	$	803,769
Accounts payable and accrued expenses	56,055
Intangible liabilities	59,424
Other liabilities	22,241
	$	941,489
Noncontrolling interest	22,821
Net assets in Spin-off to New Parkway	$	1,118,240

The following table includes a summary of discontinued operations of the Company for the years ended December 31, 2016, 2015, and 2014. In addition to the discontinued operations associated with the Spin-Off, this table includes the discontinued operations of Lakeshore Park Plaza and 600 University Park Place that were sold in 2014. There were no dispositions that met this criteria in 2015. See note 4 for a detail of dispositions during the periods.

	2016			2015			2014
Rental property revenues	$	136,927		$	176,828		$	182,714
Rental property operating expenses	(58,336		)	(73,630		)	(80,099		)
Other revenues	288			450			4,064
Interest expense	(6,022		)	(7,988		)	(8,127		)
Depreciation and amortization	(47,345		)	(63,791		)	(77,760		)
Other expenses	(6,349		)	(21		)	(28		)
Income from discontinued operations	$	19,163		$	31,848		$	20,764
Gain (loss) on sale of discontinued operations, net	$	—		$	(551	)	$	19,358
Cash provided by operating activities	$	42,604		$	76,395		$	81,946
Cash used in investing activities	$	(30,067	)	$	(55,085	)	$	6,001

The major classes of assets and liabilities of the property held for sale as of December 31, 2015 were as follows (in thousands):

Real estate assets and related assets held for sale
Operating Properties, net of accumulated depreciation of $7,072	$	6,421
Notes and accounts receivable	210
Deferred rents receivable	496
Other assets, net of accumulated amortization of $128	119
	$	7,246
Liabilities of real estate assets held for sale
Accounts payable and accrued expenses	$	140
Deferred Income	200
Other liabilities	1,007
	$	1,347