Maryland
|
74-2123597
|
(State or other jurisdiction
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(I.R.S. Employer
|
of incorporation or organization)
|
Identification No.)
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|
|
Page
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PART I.
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|
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Item 1.
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Business
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5
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Item 1A.
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Risk Factors
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8
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Item 1B.
|
Unresolved Staff Comments
|
22
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Item 2.
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Properties
|
23
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Item 3.
|
Legal Proceedings
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30
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Item 4.
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Mine Safety Disclosures
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30
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PART II.
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|
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Item 5.
|
Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases
|
|
|
of Equity Securities
|
31
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Item 6.
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Selected Financial Data
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34
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Item 7.
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Management's Discussion and Analysis of Financial Condition and Results of Operations
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35
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Item 7A.
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Quantitative and Qualitative Disclosures About Market Risk
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64
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Item 8.
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Financial Statements and Supplementary Data
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64
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Item 9.
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Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
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105
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Item 9A.
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Controls and Procedures
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105
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Item 9B.
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Other Information
|
107
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PART III.
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Item 10.
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Directors, Executive Officers and Corporate Governance
|
107
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Item 11.
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Executive Compensation
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107
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Item 12.
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Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
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107
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Item 13.
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Certain Relationships and Related Transactions, and Director Independence
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108
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Item 14.
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Principal Accountant Fees and Services
|
108
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PART IV.
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Item 15.
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Exhibits and Financial Statement Schedules
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108
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SIGNATURES
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|
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Authorized Signatures
|
113
|
·
|
changes in the real estate industry and in performance of the financial markets;
|
·
|
competition in the leasing market;
|
·
|
the demand for and market acceptance of our properties for rental purposes;
|
·
|
oversupply of office properties in our geographic markets;
|
·
|
the amount and growth of our expenses;
|
·
|
tenant financial difficulties and general economic conditions, including increasing interest rates, as well as economic conditions in our geographic markets;
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·
|
defaults or non-renewal of leases;
|
·
|
risks associated with joint venture partners;
|
·
|
the risks associated with the ownership of real property, including risks related to natural disasters;
|
·
|
risks associated with property acquisitions;
|
·
|
the failure to acquire or sell properties as and when anticipated;
|
·
|
illiquidity of real estate;
|
·
|
derivation of a significant portion of our revenue from a small number of assets;
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·
|
termination or non-renewal of property management contracts;
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·
|
the bankruptcy or insolvency of companies for which we provide property management services or the sale of these properties;
|
·
|
the outcome of claims and litigation involving or affecting us;
|
·
|
the ability to satisfy conditions necessary to close pending transactions;
|
·
|
compliance with environmental and other regulations, including real estate and zoning laws;
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·
|
our inability to obtain financing;
|
·
|
our inability to use net operating loss carryforwards; and
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·
|
our failure to maintain our status as real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended, or the Code.
|
·
|
Create Value as the Leading Owner of Quality Assets in Core Submarkets. Our investment strategy is to pursue attractive returns by focusing primarily on owning high-quality office buildings and portfolios that are well-located and competitively positioned within central business district and urban infill locations within our core submarkets in the Sunbelt region of the United States. In these submarkets, we seek to maintain a portfolio that consists of core, core-plus, and value-add investment opportunities. Further, we intend to pursue an efficient capital allocation strategy that maximizes the returns on our invested capital. This may include selectively disposing of properties when we believe returns have been maximized and redeploying capital into acquisitions or other opportunities.
|
·
|
Maximize Cash Flow by Continuing to Enhance the Operating Performance of Each Property. We provide property management and leasing services to our portfolio, actively managing our properties and leveraging our tenant relationships to improve operating performance, maximize long-term cash flow and enhance stockholder value. We seek to attain a favorable customer retention rate by providing outstanding property management and customer service programs responsive to the varying needs of our diverse temant base. We also employ a judicious prioritization of capital projects to focus on projects that enhance the value of our property through increased rental rates, occupancy, service delivery, or enhanced reversion value.
|
·
|
Realize Leasing and Operational Efficiencies and Gain Local Advantage. We concentrate our real estate portfolio in submarkets where we believe that we can maximize market penetration by accumulating a critical mass of properties and thereby enhance operating efficiencies. We believe that strengthening our local presence and leveraging our extensive market relationships will yield superior market information and service delivery and facilitate additional investment opportunities to create long-term stockholder value.
|
·
|
acquisition agreements contain and will likely contain conditions to closing, including completion of due diligence investigations to our satisfaction or other conditions that are not within our control, which may not be satisfied;
|
·
|
we may be unable to finance acquisitions on favorable terms or at all;
|
·
|
acquired properties may fail to perform as expected;
|
·
|
the actual costs of repositioning or redeveloping acquired properties may be higher than our estimates;
|
·
|
we may not be able to obtain adequate insurance coverage for new properties;
|
·
|
acquired properties may be located in new markets where we face risks associated with an incomplete knowledge or understanding of the local market and a limited number of established business relationships in the area; and
|
·
|
we may acquire properties subject to liabilities and without any recourse, or with only limited recourse, to the transferor with respect to unknown liabilities, including liabilities for clean-up of undisclosed environmental contamination. As a result, if a claim were asserted against us based upon ownership of those properties, we might have to pay substantial sums to settle it, which could adversely affect our cash flow.
|
·
|
an inability to acquire a desired property because of competition from other well-capitalized real estate investors, including publicly traded and privately held REITs, private real estate funds, domestic and foreign financial institutions, life insurance companies, sovereign wealth funds, pension trusts, partnerships and individual investors; and
|
·
|
an increase in the purchase price for such acquisition property in the event we are able to acquire such desired property.
|
·
|
changes in supply of or demand for office properties or tenants for such properties in areas in which we own buildings;
|
·
|
the ongoing need for capital improvements;
|
·
|
increased operating costs, which may not necessarily be offset by increased rents, including insurance premiums, utilities and real estate taxes, due to inflation and other factors;
|
·
|
changes in tax, real estate and zoning laws;
|
·
|
changes in governmental rules and fiscal policies;
|
·
|
inability of tenants to pay rent;
|
·
|
existence and quality of competition, such as the attractiveness of our properties as compared to our competitors' properties based on considerations such as convenience of location, rental rates, amenities and safety record; and
|
·
|
civil unrest, acts of war, acts of God, including earthquakes, hurricanes and other natural disasters (which may result in uninsured losses), and other factors beyond our control.
|
·
|
that interest rates may rise;
|
·
|
that our cash flow will be insufficient to make required payments of principal and interest;
|
·
|
that we will be unable to refinance some or all of our debt;
|
·
|
that any refinancing will not be on terms as favorable as those of our existing debt;
|
·
|
that required payments on mortgages and on our other debt are not reduced if the economic performance of any property declines;
|
·
|
that debt service obligations will reduce funds available for distribution to our stockholders;
|
·
|
that any default on our debt, due to noncompliance with financial covenants or otherwise, could result in acceleration of those obligations; and
|
·
|
that we may be unable to refinance or repay the debt as it becomes due.
|
·
|
maintaining ownership of specified minimum levels of real estate related assets;
|
·
|
generating specified minimum levels of real estate related income;
|
·
|
maintaining certain diversity of ownership requirements with respect to our shares; and
|
·
|
distributing at least 90% of our taxable income on an annual basis.
|
·
|
any proposed transfer will be void from the beginning and we will not recognize such transfer;
|
·
|
we may institute legal proceedings to enjoin such transfer;
|
·
|
we will have the right to redeem the shares proposed to be transferred; and/or
|
·
|
the shares proposed to be transferred will be automatically converted into and exchanged for shares of a separate class of stock, the Excess Stock.
|
·
|
actual or anticipated quarterly fluctuations in our operating results and financial condition;
|
·
|
changes in revenues or earnings estimates or publication of research reports and recommendations by financial analysts or actions taken by rating agencies with respect to our securities or those of other REITs;
|
·
|
the ability of our tenants to pay rent to us and meet their other obligations to us under current lease terms;
|
·
|
our ability to re-lease spaces as leases expire;
|
·
|
our ability to refinance our indebtedness as it matures;
|
·
|
any changes in our distribution policy;
|
·
|
any future issuances of equity securities;
|
·
|
strategic actions by us or our competitors, such as acquisitions or restructurings;
|
·
|
general market conditions and, in particular, developments related to market conditions for the real estate industry; and
|
·
|
domestic and international economic factors unrelated to our performance.
|
Office Property
|
Location
|
Type of
Ownership
|
Ownership
Share
|
Square
Feet
|
Date
Purchased
|
Gross
Purchase
Price
|
|
|
|
|
|
|
|
|
|
The Pointe
|
Tampa, FL
|
Fund II
|
30.0%
|
252
|
01/11/12
|
$
|
46,900
|
Hayden Ferry Lakeside II
|
Phoenix, AZ
|
Fund II
|
30.0%
|
300
|
02/10/12
|
|
86,000
|
Hearst Tower
|
Charlotte, NC
|
Wholly owned
|
100.0%
|
973
|
06/06/12
|
|
250,000
|
Hayden Ferry Lakeside III, IV and V
|
Phoenix, AZ
|
Fund II
|
30.0%
|
21
|
08/31/12
|
|
18,200
|
Westshore Corporate Center
|
Tampa, FL
|
Wholly owned
|
100.0%
|
170
|
11/15/12
|
|
22,691
|
525 North Tryon
|
Charlotte, NC
|
Wholly owned
|
100.0%
|
402
|
12/06/12
|
|
47,350
|
Phoenix Tower
|
Houston, TX
|
Wholly owned
|
100.0%
|
626
|
12/20/12
|
|
123,750
|
Tempe Gateway
|
Phoenix, AZ
|
Wholly owned
|
100.0%
|
251
|
12/21/12
|
|
66,100
|
NASCAR Plaza
|
Charlotte, NC
|
Wholly owned
|
100.0%
|
395
|
12/31/12
|
|
99,999
|
|
|
|
|
|
|
|
|
|
|
|
|
3,390
|
|
$
|
760,990
|
|
|
|
|
|
Gross
|
|
|||
|
|
|
Square
|
Date of
|
Sales
|
|
Gain (Loss)
|
||
Office Property
|
|
Location
|
Feet
|
Sale
|
Price
|
|
on Sale
|
||
Falls Pointe
|
|
Atlanta, GA
|
107
|
01/06/12
|
$
|
6,000
|
|
$
|
1,357
|
111 East Wacker
|
|
Chicago, IL
|
1,013
|
01/09/12
|
|
150,600
|
|
|
3
|
Renaissance Center
|
|
Memphis, TN
|
189
|
03/01/12
|
|
27,650
|
|
|
3,033
|
Non-Core Assets
|
|
Various
|
1,745
|
Various
|
|
139,500
|
|
|
3,700
|
Overlook II
|
|
Atlanta, GA
|
260
|
04/30/12
|
|
29,350
|
|
|
777
|
Wink
|
|
New Orleans, LA
|
32
|
06/08/12
|
|
765
|
|
|
(98)
|
Ashford Center/
Peachtree Ridge
|
|
Atlanta, GA
|
321
|
07/01/12
|
|
29,850
|
|
|
1,292
|
111 Capitol Building
|
|
Jackson, MS
|
187
|
09/06/12
|
|
8,200
|
|
|
(371)
|
Sugar Grove
|
|
Houston, TX
|
124
|
10/23/12
|
|
11,425
|
|
|
3,246
|
|
|
|
|
|
|
|
|
|
|
Total 2012
|
|
|
3,978
|
|
$
|
403,340
|
|
$
|
12,939
|
Market and Property
|
Number
Of
Properties (1)
|
Parkway's
Ownership
Interest
|
Total Net
Rentable
Square
Feet
|
Occupancy
Percentage
|
Weighted Avg.
Gross
Rental Rate Per
Net Rentable
Square Foot(2)
|
% of
Leases
Expiring
In
2013(3)
|
Year Built/
Renovated
|
|
PHOENIX, AZ
|
|
|
|
|
|
|
|
|
Squaw Peak I & II
|
|
100.0%
|
290
|
92.3%
|
$
|
22.61
|
0.1%
|
1999/2000
|
Mesa Corporate Center
|
|
100.0%
|
105
|
93.7%
|
$
|
20.60
|
0.4%
|
2000
|
Tempe Gateway
|
|
100.0%
|
251
|
77.0%
|
$
|
23.87
|
0.0%
|
2009
|
Hayden Ferry Lakeside I
|
|
30.0%
|
203
|
82.8%
|
$
|
28.55
|
0.0%
|
2002
|
Hayden Ferry Lakeside II
|
|
30.0%
|
300
|
96.2%
|
$
|
30.81
|
0.1%
|
2007
|
Hayden Ferry Lakeside III - V
|
|
30.0%
|
21
|
40.7%
|
$
|
29.70
|
0.0%
|
2007
|
|
6
|
68.7%
|
1,170
|
87.6%
|
$
|
26.00
|
0.6%
|
|
|
|
|
|
|
|
|
|
|
FT. LAUDERDALE, FL
|
|
|
|
|
|
|
|
|
Hillsboro V
|
|
100.0%
|
116
|
77.7%
|
$
|
24.14
|
0.1%
|
1985
|
Hillsboro I-IV
|
|
100.0%
|
100
|
63.4%
|
$
|
17.57
|
0.1%
|
1985
|
|
2
|
100.0%
|
216
|
71.1%
|
$
|
21.43
|
0.2%
|
|
|
|
|
|
|
|
|
|
|
JACKSONVILLE, FL
|
|
|
|
|
|
|
|
|
SteinMart Building
|
|
100.0%
|
196
|
96.6%
|
$
|
20.82
|
0.1%
|
1985
|
Riverplace South
|
|
100.0%
|
106
|
92.0%
|
$
|
19.59
|
0.3%
|
1981
|
245 Riverside
|
|
30.0%
|
136
|
84.1%
|
$
|
22.30
|
0.0%
|
2003
|
|
3
|
78.3%
|
438
|
91.6%
|
$
|
20.94
|
0.4%
|
|
|
|
|
|
|
|
|
|
|
TAMPA, FL
|
|
|
|
|
|
|
|
|
Westshore Corporate Center (4)
|
|
100.0%
|
170
|
77.7%
|
$
|
24.05
|
0.2%
|
1988
|
Corporate Center Four at International Plaza (4)
|
|
30.0%
|
250
|
87.8%
|
$
|
31.85
|
0.0%
|
2008
|
Cypress Center I, II & III
|
|
30.0%
|
286
|
96.1%
|
$
|
19.65
|
0.2%
|
1982
|
The Pointe
|
|
30.0%
|
252
|
90.6%
|
$
|
25.97
|
0.3%
|
1982
|
|
4
|
42.4%
|
958
|
89.2%
|
$
|
25.15
|
0.7%
|
|
|
|
|
|
|
|
|
|
|
ORLANDO, FL
|
|
|
|
|
|
|
|
|
Citrus Center
|
|
100.0%
|
261
|
81.5%
|
$
|
23.89
|
0.1%
|
1971
|
Bank of America Center
|
|
30.0%
|
421
|
83.4%
|
$
|
27.17
|
0.8%
|
1987
|
|
2
|
56.8%
|
682
|
82.6%
|
$
|
25.93
|
0.9%
|
|
|
|
|
|
|
|
|
|
|
ATLANTA, GA
|
|
|
|
|
|
|
|
|
Waterstone
|
|
100.0%
|
93
|
48.2%
|
$
|
20.24
|
0.1%
|
1987
|
Meridian
|
|
100.0%
|
97
|
74.7%
|
$
|
21.62
|
0.0%
|
1985
|
Peachtree Dunwoody
|
|
100.0%
|
370
|
62.0%
|
$
|
20.36
|
0.2%
|
1976/1980
|
Capital City Plaza
|
|
100.0%
|
409
|
79.3%
|
$
|
28.89
|
0.3%
|
1989
|
3344 Peachtree
|
|
33.0%
|
485
|
97.3%
|
$
|
35.14
|
0.2%
|
1986
|
Lakewood II
|
|
30.0%
|
124
|
73.5%
|
$
|
16.36
|
0.0%
|
2008
|
Two Ravinia Drive
|
|
30.0%
|
438
|
80.8%
|
$
|
18.16
|
0.3%
|
1987
|
|
7
|
64.4%
|
2,016
|
78.8%
|
$
|
25.83
|
1.1%
|
|
|
|
|
|
|
|
|
|
|
JACKSON, MS
|
|
|
|
|
|
|
|
|
City Centre
|
|
100.0%
|
266
|
87.5%
|
$
|
14.99
|
0.1%
|
1987
|
|
1
|
100.0%
|
266
|
87.5%
|
$
|
14.99
|
0.1%
|
|
|
|
|
|
|
|
|
|
|
CHARLOTTE, NC
|
|
|
|
|
|
|
|
|
Hearst Tower
|
|
100.0%
|
973
|
94.6%
|
$
|
28.62
|
0.9%
|
2002
|
525 North Tryon
|
|
100.0%
|
402
|
72.8%
|
$
|
19.17
|
0.1%
|
1998
|
NASCAR Plaza (4)
|
|
100.0%
|
395
|
87.5%
|
$
|
23.95
|
0.1%
|
2009
|
Carmel Crossing
|
|
30.0%
|
326
|
88.4%
|
$
|
18.14
|
0.5%
|
1995
|
|
4
|
89.1%
|
2,096
|
88.1%
|
$
|
24.61
|
1.6%
|
|
|
|
|
|
|
|
|
|
|
PHILADELPHIA, PA
|
|
|
|
|
|
|
|
|
Two Liberty Place
|
|
19.0%
|
941
|
99.1%
|
$
|
28.50
|
0.0%
|
1990
|
|
1
|
19.0%
|
941
|
99.1%
|
$
|
28.50
|
0.0%
|
|
|
|
|
|
|
|
|
|
|
COLUMBIA, SC
|
|
|
|
|
|
|
|
|
Atrium at Stoneridge
|
|
100.0%
|
108
|
63.7%
|
$
|
16.14
|
0.1%
|
1986
|
|
1
|
100.0%
|
108
|
63.7%
|
$
|
16.14
|
0.1%
|
|
|
|
|
|
|
|
|
|
|
MEMPHIS, TN
|
|
|
|
|
|
|
|
|
Morgan Keegan Tower
|
|
100.0%
|
337
|
93.4%
|
$
|
19.79
|
0.2%
|
1985
|
|
1
|
100.0%
|
337
|
93.4%
|
$
|
19.79
|
0.2%
|
|
|
|
|
|
|
|
|
|
|
NASHVILLE, TN
|
|
|
|
|
|
|
|
|
Bank of America Plaza
|
|
100.0%
|
436
|
93.1%
|
$
|
19.82
|
0.4%
|
1977
|
|
1
|
100.0%
|
436
|
93.1%
|
$
|
19.82
|
0.4%
|
`
|
|
|
|
|
|
|
|
|
|
HOUSTON, TX
|
|
|
|
|
|
|
|
|
400 Northbelt
|
|
100.0%
|
231
|
96.8%
|
$
|
16.23
|
0.8%
|
1982
|
Woodbranch
|
|
100.0%
|
109
|
96.9%
|
$
|
20.16
|
0.1%
|
1982
|
Honeywell
|
|
100.0%
|
157
|
96.7%
|
$
|
24.31
|
0.0%
|
1983
|
Schlumberger
|
|
100.0%
|
155
|
100.0%
|
$
|
17.04
|
0.0%
|
1983
|
One Commerce Green
|
|
100.0%
|
341
|
100.0%
|
$
|
22.54
|
0.0%
|
1983
|
Comerica Bank Building
|
|
100.0%
|
194
|
92.0%
|
$
|
21.93
|
0.3%
|
1983
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market and Property
|
Number
Of
Properties (1)
|
Parkway's
Ownership
Interest
|
Total Net
Rentable
Square
Feet
|
Occupancy
Percentage
|
Weighted Avg.
Gross
Rental Rate Per
Net Rentable
Square Foot(2)
|
% of
Leases
Expiring
In
2013(3)
|
Year Built/
Renovated
|
|
550 Greens Parkway
|
|
100.0%
|
72
|
100.0%
|
$
|
21.79
|
0.0%
|
1999
|
5300 Memorial
|
|
100.0%
|
154
|
95.8%
|
$
|
24.58
|
0.3%
|
1982
|
Town & Country
|
|
100.0%
|
148
|
94.8%
|
$
|
21.81
|
0.2%
|
1982
|
Phoenix Tower
|
|
100.0%
|
626
|
83.6%
|
$
|
25.71
|
0.4%
|
1984/2011
|
|
10
|
100.0%
|
2,187
|
93.1%
|
$
|
22.27
|
2.1%
|
|
|
|
|
|
|
|
|
|
|
Total Properties as of January 1, 2013
|
43
|
74.5%
|
11,851
|
88.0%
|
$
|
24.15
|
8.6%
|
|
(1)
|
Our core properties include 40 properties comprising 11.1 million net rentable square feet and include 27 office properties owned directly and 13 office properties owned through Fund II. The non-strategic properties include three properties comprising 711,000 square feet as of January 1, 2013, which include properties in non-strategic markets such as Columbia, South Carolina; Jackson, Mississippi; and Memphis, Tennessee. See Note F – Noncontrolling Interest – Real Estate Partnerships, to the consolidated financial statements for additional information on properties owned through Fund II.
|
(2)
|
Weighted average expiring gross rental rate is the weighted average current rental rate, which also includes $2.19 per square foot of escalations for operating expenses. These rates do not reflect any future increases in contractual rent or projections with respect to expense reimbursements.
|
(3)
|
The percentage of leases expiring in 2013 represents the ratio of square feet under leases expiring in 2013 divided by total net rentable square feet.
|
(4)
|
These properties are subject to ground leases. See Note B – Investments in Office Properties, to the consolidated financial statements for additional information on these ground leases.
|
|
|
Net
|
|
Annualized
|
|
Weighted Avg
|
||
|
|
Rentable
|
Percent of
|
Rental
|
Percent of
|
Expiring Gross
|
||
Year of
|
Number
|
Square Feet
|
Total Net
|
Amount
|
Annualized
|
Rental Rate Per
|
||
Lease
|
of
|
Expiring
|
Rentable
|
Expiring (1)
|
Rental Amount
|
Net Rentable
|
||
Expiration
|
Leases
|
(in thousands)
|
Square Feet
|
(in thousands)
|
Expiring
|
Square Foot (2)
|
||
2013
|
176
|
1,018
|
8.6%
|
$
|
23,699
|
9.4%
|
$
|
23.28
|
2014
|
143
|
1,168
|
9.9%
|
|
27,420
|
10.9%
|
|
23.48
|
2015
|
161
|
975
|
8.2%
|
|
21,561
|
8.6%
|
|
22.11
|
2016
|
129
|
1,954
|
16.5%
|
|
44,423
|
17.7%
|
|
22.73
|
2017
|
120
|
1,538
|
13.0%
|
|
35,515
|
14.1%
|
|
23.09
|
2018
|
67
|
879
|
7.4%
|
|
21,580
|
8.6%
|
|
24.56
|
2019
|
25
|
767
|
6.5%
|
|
21,344
|
8.5%
|
|
27.84
|
2020
|
17
|
290
|
2.5%
|
|
7,899
|
3.1%
|
|
27.23
|
2021
|
15
|
597
|
5.0%
|
|
15,401
|
6.1%
|
|
25.81
|
2022
|
17
|
740
|
6.2%
|
|
19,950
|
7.9%
|
|
26.96
|
2023 & Later
|
14
|
498
|
4.2%
|
|
12,911
|
5.1%
|
|
25.92
|
|
884
|
10,424
|
88.0%
|
$
|
251,703
|
100.0%
|
$
|
24.15
|
(1) | Annualized rental amount expiring is defined as net rentable square feet expiring multiplied by the weighted average expiring annual rental rate per net rentable square foot. |
(2) | Weighted average expiring gross rental rate is the weighted average current rental rate, which also includes $2.19 per square foot of escalations for operating expenses. These rates do not reflect any future increases in contractual rent or projections with respect to expense reimbursements. |
Customer
|
No. of
Props.
|
Square Footage Expiring
|
|
Leased
Square
Feet (1)
|
Annualized
Rental
Revenue (1)
|
|
Percentage of Total Annualized Rental Revenue
|
||||||||
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
Thereafter
|
|
||||||||
Bank of America, NA (2)
|
5
|
61
|
10
|
124
|
-
|
194
|
-
|
322
|
711
|
$
15,238
|
|
8.5%
|
|||
Blue Cross Blue Shield of Georgia, Inc. (3)
|
1
|
-
|
-
|
-
|
-
|
-
|
-
|
199
|
199
|
5,783
|
|
3.2%
|
|||
Raymond James & Associates (4)
|
3
|
10
|
-
|
-
|
240
|
-
|
-
|
19
|
269
|
5,046
|
|
2.8%
|
|||
Hearst Communications
|
1
|
-
|
-
|
-
|
-
|
181
|
-
|
-
|
181
|
5,022
|
|
2.8%
|
|||
Nabors Industries
|
1
|
-
|
220
|
-
|
-
|
-
|
-
|
-
|
220
|
4,744
|
|
2.7%
|
|||
K & L Gates (5)
|
1
|
49
|
-
|
-
|
-
|
-
|
-
|
109
|
158
|
4,307
|
|
2.4%
|
|||
NASCAR
|
1
|
13
|
-
|
-
|
-
|
-
|
-
|
139
|
152
|
3,810
|
|
2.1%
|
|||
Honeywell (6)
|
1
|
-
|
-
|
-
|
-
|
12
|
-
|
116
|
128
|
3,169
|
|
1.8%
|
|||
Chiquita Brands, L.L.C.
|
1
|
-
|
-
|
-
|
-
|
-
|
-
|
138
|
138
|
3,031
|
|
1.7%
|
|||
Southwestern Energy Company (7)
|
2
|
-
|
-
|
-
|
-
|
-
|
-
|
118
|
118
|
2,857
|
|
1.6%
|
|||
General Services Administration(GSA) (8)
|
9
|
77
|
-
|
3
|
-
|
-
|
53
|
57
|
190
|
2,707
|
|
1.5%
|
|||
Schlumberger (9)
|
1
|
-
|
-
|
-
|
-
|
155
|
-
|
-
|
155
|
2,647
|
|
1.5%
|
|||
Permian Mud Service, Inc.
|
1
|
-
|
-
|
-
|
-
|
-
|
105
|
-
|
105
|
2,643
|
|
1.5%
|
|||
PricewaterhouseCoopers, LLP
|
1
|
-
|
70
|
-
|
-
|
-
|
-
|
-
|
70
|
2,563
|
|
1.4%
|
|||
Louisiana Pacific
|
1
|
-
|
5
|
20
|
-
|
-
|
-
|
85
|
110
|
2,490
|
|
1.4%
|
|||
Connecticut General Life Insurance Company (CIGNA)
|
1
|
-
|
-
|
-
|
463
|
-
|
-
|
-
|
463
|
2,346
|
|
1.3%
|
|||
Stein Mart, Inc.
|
1
|
-
|
-
|
-
|
109
|
-
|
-
|
-
|
109
|
2,334
|
|
1.3%
|
|||
Allstate Insurance Company (10)
|
2
|
-
|
-
|
-
|
3
|
-
|
-
|
66
|
69
|
1,824
|
|
1.0%
|
|||
Forman Perry Watkins Krutz & Tardy (11)
|
1
|
-
|
-
|
-
|
129
|
-
|
-
|
-
|
129
|
1,687
|
|
0.9%
|
|||
Worley Parson Group, Inc.
|
1
|
-
|
-
|
51
|
-
|
-
|
-
|
-
|
51
|
1,460
|
|
0.8%
|
|||
|
|
210
|
305
|
198
|
944
|
542
|
158
|
1,368
|
3,725
|
75,708
|
|
42.3%
|
|||
Total Rentable Square Footage (1)
|
11,851
|
|
|
|
|||||||||||
Total Annualized Rental Revenue (1)
|
$
178,837
|
|
|
|
(1)
|
Annualized rental revenue represents the gross rental rate (including escalations) per square foot, multiplied by the number of square feet leased by the customer. Annualized rent for customers in joint ventures is calculated based on our ownership interest. However, leased square feet and total rentable square footage represents 100% of square feet leased and owned through direct ownership or through joint ventures.
|
(2)
|
Bank of America (Hearst Tower in Charlotte) has the option to cancel 64,462 square feet in May 2017 with 18 months written notice. Bank of America (Bank of America Plaza in Nashville) has the option to cancel 123,710 square feet in October 2014 with 12 months notice.
|
(3)
|
Blue Cross Blue Shield of Georgia (Capital City Plaza in Atlanta) has the option to cancel 59,222 square feet in January 2016 or January 2018 with nine months written notice. Additionally, the lease provides the option to cancel an additional 29,610 square feet in January 2018 with nine months written notice.
|
(4)
|
Raymond James & Associates (Morgan Keegan Tower in Memphis) has the option to cancel 3,197 square feet with four (4) months written notice.
|
(5)
|
K & L Gates LLP (Hearst Tower in Charlotte) has a cancellation option in September 2024 with 12 months prior written notice.
|
(6)
|
Honeywell (Honeywell Building in Houston) has a cancellation option in December 2014 with 12 months notice.
|
(7)
|
Southwest Energy Company (One Commerce Green and 550 Greens Parkway in Houston) has a cancellation option in February 2015, 2016, 2017 and 2018, each with 12 months written notice.
|
(8)
|
General Services Administration ("GSA") (Meridian Building in Atlanta) has an option to cancel 16,778 square feet effective February of 2015 with 90 days written notice. The GSA (Bank of America Center-Orlando) has an option to cancel 12,341 square feet effective October 2013 and 34,182 square feet effective June 2018, both with 120 days written notice. The GSA (Carmel Crossing-Davie Building - Charlotte) has an option to cancel 21,384 square feet effective September 2014 with 90 days written notice.
|
(9)
|
Schlumberger Technology (Schlumberger Building in Houston) has a cancellation option in June 2015 with 12 months notice.
|
(10)
|
Allstate Insurance Company (Tempe Gateway in Phoenix) has a cancellation option in August 2020 with 12 months written notice.
|
(11)
|
Forman, Perry, Watkins, Krutz & Tardy (City Centre in Jackson) has certain cancellation rights pending changes in partnership structure.
|
Year
|
Square Feet
of Leases
Expiring
|
Percentage
of Total
Square Feet
|
Annualized
Rental
Revenue (1)
|
Percentage of
Total Annualized
Rental Revenue
|
Number of
Leases
|
||
2013
|
111
|
11.4%
|
$
|
2,204
|
8.3%
|
7
|
|
2014
|
72
|
7.4%
|
|
2,621
|
10.0%
|
2
|
|
2015
|
4
|
0.5%
|
|
129
|
0.5%
|
1
|
|
2016
|
20
|
2.0%
|
|
603
|
2.3%
|
3
|
|
2017
|
261
|
26.8%
|
|
7,386
|
28.1%
|
7
|
|
2018
|
-
|
-%
|
|
-
|
-%
|
-
|
|
2019
|
-
|
-%
|
|
-
|
-%
|
-
|
|
2020
|
10
|
1.1%
|
|
340
|
1.3%
|
1
|
|
2021
|
-
|
-%
|
|
-
|
-%
|
-
|
|
2022
|
328
|
33.7%
|
|
8,998
|
34.2%
|
3
|
|
Thereafter
|
114
|
11.7%
|
|
4,034
|
15.3%
|
3
|
|
|
920
|
94.6%
|
$
|
26,315
|
100.0%
|
27
|
|
|
|||||||
(1)
|
Annualized rental revenue represents the gross rental rate (including escalations) per square feet, multiplied by the number of square feet leased by the customer.
|
Nature of Business
|
Square Feet Expiring (in thousands)
|
Lease Expiration Date
|
Effective Rental Rate Per Square Foot
|
Lease Options
|
||||
Banking
|
322
|
2022
|
$
|
27.53
|
(1)
|
|||
Media
|
181
|
2017
|
$
|
27.69
|
(2)
|
|||
Legal
|
238
|
(3)
|
|
(4)
|
(5)
|
|||
|
|
|||||||
(1)
|
This customer has the option to cancel 64,462 square feet in May 2017 if notice is provided in December 2015.
|
|||||||
(2)
|
This customer does not have a cancellation option.
|
|||||||
(3)
|
This customer has 48,000 square feet expiring in 2013 and 109,000 square feet expiring in 2027.
|
|||||||
(4)
|
The effective rental rate per square foot for the 109,000 square feet expiring in 2027 is $35.29. The effective rental rate per square foot for the 48,000 square feet expiring in 2013 is $9.20.
|
|||||||
(5)
|
This customer has the option to cancel 109,000 square feet in September 2024 if notice is provided in September 2023.
|
|
Hearst
Tower
|
|
Land
|
$
|
4,417
|
Building and Garage
|
|
241,995
|
Building and Tenant Improvements
|
|
210
|
Equipment, Furniture and Fixtures
|
|
22
|
Year
|
Average Occupancy
|
Average Rental Rate
per Square Foot
|
|
2011
|
99.3%
|
$ 27.61
|
|
2012
|
99.1%
|
$ 28.11
|
Year
|
Square Feet
of Leases
Expiring
|
Percentage
of Total
Square Feet
|
Annualized
Rental
Revenue (1)
|
Percentage of
Total Annualized
Rental Revenue
|
Number of
Leases
|
||
2013
|
-
|
-%
|
$
|
-
|
-%
|
-
|
|
2014
|
3
|
0.3%
|
|
89
|
0.3%
|
1
|
|
2015
|
-
|
-%
|
|
-
|
-%
|
-
|
|
2016
|
518
|
55.1%
|
|
14,291
|
53.8%
|
3
|
|
2017
|
27
|
2.9%
|
|
823
|
3.1%
|
1
|
|
2018
|
51
|
5.4%
|
|
1,518
|
5.7%
|
4
|
|
2019
|
186
|
19.8%
|
|
5,636
|
21.2%
|
5
|
|
2020
|
70
|
7.4%
|
|
1,854
|
7.0%
|
2
|
|
2021
|
77
|
8.2%
|
|
2,350
|
8.9%
|
1
|
|
2022
|
-
|
-%
|
|
-
|
-%
|
-
|
|
Thereafter
|
-
|
-%
|
|
-
|
-%
|
-
|
|
|
932
|
99.1%
|
$
|
26,561
|
100.0%
|
17
|
|
|
|||||||
(1)
|
Annualized rental revenue represents the gross rental rate (including escalations) per square feet, multiplied by the number of square feet leased by the customer.
|
Nature of Business
|
Square Feet Expiring (in thousands)
|
Lease Expiration Date
|
Effective Rental Rate
Per Square Foot
|
|||
Insurance
|
463
|
2016
|
$
|
27.44
|
|
|
|
|
|||||
|
|
|
Two Liberty
Place
|
|
Land
|
$
|
32,587
|
Building and Garage
|
|
152,210
|
Building and Tenant Improvements
|
|
615
|
Equipment, Furniture and Fixtures
|
|
4
|
|
Year Ended
|
|
Year Ended
|
|||||||||||
|
December 31, 2012
|
|
December 31, 2011
|
|||||||||||
Quarter Ended
|
High
|
Low
|
Distributions
|
|
High
|
Low
|
Distributions
|
|||||||
March 31
|
$
|
10.89
|
|
$
|
9.02
|
$
|
0.0750
|
|
$
|
18.37
|
$
|
15.37
|
$
|
0.075
|
June 30
|
$
|
11.57
|
|
$
|
9.57
|
$
|
0.0750
|
|
$
|
18.55
|
$
|
15.84
|
$
|
0.075
|
September 30
|
$
|
13.63
|
|
$
|
10.68
|
$
|
0.1125
|
|
$
|
18.28
|
$
|
10.83
|
$
|
0.075
|
December 31
|
$
|
14.72
|
|
$
|
12.77
|
$
|
0.1125
|
|
$
|
13.55
|
$
|
9.40
|
$
|
0.075
|
|
|
|
$
|
0.3750
|
|
|
|
$
|
0.300
|
|
Year Ended
|
|||
|
December 31
|
|||
|
2012
|
2011
|
||
Return of capital
|
$
|
0.375
|
$
|
0.30
|
|
$
|
0.375
|
$
|
0.30
|
|
Year Ended
|
|
Year Ended
|
||||||||||
|
December 31, 2012
|
|
December 31, 2011
|
||||||||||
Quarter Ended
|
High
|
Low
|
Distributions
|
|
High
|
Low
|
Distributions
|
||||||
March 31
|
$
|
25.95
|
$
|
20.01
|
$
|
0.50
|
|
$
|
26.70
|
$
|
20.34
|
$
|
0.50
|
June 30
|
$
|
25.88
|
$
|
22.89
|
$
|
0.50
|
|
$
|
25.74
|
$
|
20.31
|
$
|
0.50
|
September 30
|
$
|
25.57
|
$
|
22.95
|
$
|
0.50
|
|
$
|
26.41
|
$
|
20.09
|
$
|
0.50
|
December 31
|
$
|
25.55
|
$
|
24.96
|
$
|
0.50
|
|
$
|
25.00
|
$
|
21.85
|
$
|
0.50
|
|
|
|
$
|
2.00
|
|
|
|
$
|
2.00
|
|
Year Ended December 31
|
|||
|
2012
|
2011
|
||
Return of capital
|
$
|
2.00
|
$
|
2.00
|
|
$
|
2.00
|
$
|
2.00
|
|
|
Period Ending
|
|
|||
Index
|
12/31/07
|
12/31/08
|
12/31/09
|
12/31/10
|
12/31/11
|
12/31/12
|
Parkway Properties, Inc.
|
100.00
|
52.45
|
66.58
|
57.03
|
32.85
|
48.15
|
NAREIT All Equity REIT
|
100.00
|
62.27
|
79.70
|
101.98
|
110.42
|
132.18
|
S&P 500
|
100.00
|
63.00
|
79.68
|
91.68
|
93.61
|
108.59
|
|
Year Ended
12/31/12 |
Year Ended
12/31/11 |
Year Ended
12/31/10 |
Year Ended
12/31/09 |
Year Ended
12/31/08 |
|||||
|
(In thousands, except per share data)
|
|||||||||
Operating Data:
|
|
|
|
|
|
|||||
Revenues
|
|
|
|
|
|
|||||
Income from office and parking properties
|
$
|
206,739
|
$
|
147,290
|
$
|
93,548
|
$
|
94,960
|
$
|
97,294
|
Management company income
|
|
19,778
|
|
16,896
|
|
1,652
|
|
1,870
|
|
1,936
|
Total revenues
|
|
226,517
|
|
164,186
|
|
95,200
|
|
96,830
|
|
99,230
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
Property operating expenses
|
|
80,748
|
|
60,733
|
|
40,408
|
|
42,060
|
|
43,924
|
Depreciation and amortization
|
|
81,537
|
|
56,522
|
|
28,496
|
|
27,787
|
|
28,867
|
Impairment loss on real estate
|
|
9,200
|
|
6,420
|
|
-
|
|
8,817
|
|
2,542
|
Impairment loss on mortgage loan receivable
|
|
-
|
|
9,235
|
|
-
|
|
-
|
|
-
|
Impairment loss on management contracts and goodwill
|
|
41,967
|
|
-
|
|
-
|
|
-
|
|
-
|
Change in fair value of contingent consideration
|
|
216
|
|
(13,000)
|
|
-
|
|
-
|
|
-
|
Management company expenses
|
|
17,237
|
|
13,337
|
|
2,756
|
|
1,987
|
|
1,527
|
General and administrative and other
|
|
16,420
|
|
18,805
|
|
15,318
|
|
14,305
|
|
18,338
|
Acquisition costs
|
|
2,791
|
|
17,219
|
|
846
|
|
-
|
|
-
|
Total expenses
|
|
250,116
|
|
169,271
|
|
87,824
|
|
94,956
|
|
95,198
|
Operating income (loss)
|
|
(23,599)
|
|
(5,085)
|
|
7,376
|
|
1,874
|
|
4,032
|
Other income and expense
|
|
|
|
|
|
|
|
|
|
|
Interest and other income
|
|
272
|
|
938
|
|
1,487
|
|
1,597
|
|
1,176
|
Equity in earnings of unconsolidated joint ventures
|
|
-
|
|
57
|
|
326
|
|
437
|
|
771
|
Gain on real estate, joint venture interests,
|
|
|
|
|
|
|
|
|
|
|
involuntary conversion and other assets
|
|
548
|
|
743
|
|
40
|
|
1,293
|
|
-
|
Interest expense
|
|
(35,334)
|
|
(31,612)
|
|
(20,271)
|
|
(19,158)
|
|
(24,875)
|
Loss before income taxes
|
|
(58,113)
|
|
(34,959)
|
|
(11,042)
|
|
(13,957)
|
|
(18,896)
|
Income tax expense
|
|
(261)
|
|
(56)
|
|
(2)
|
|
(3)
|
|
(2)
|
Loss from continuing operations
|
|
(58,374)
|
|
(35,015)
|
|
(11,044)
|
|
(13,960)
|
|
(18,898)
|
Income (loss) from discontinued operations
|
|
2,454
|
|
(194,813)
|
|
(10,881)
|
|
(8,205)
|
|
(5,785)
|
Gain on sale of real estate from discontinued operations
|
|
12,939
|
|
17,825
|
|
8,518
|
|
-
|
|
22,588
|
Total discontinued operations
|
|
15,393
|
|
(176,988)
|
|
(2,363)
|
|
(8,205)
|
|
16,803
|
Net loss
|
|
(42,981)
|
|
(212,003)
|
|
(13,407)
|
|
(22,165)
|
|
(2,095)
|
Noncontrolling interests – unit holders
|
|
269
|
|
(5)
|
|
-
|
|
-
|
|
-
|
Noncontrolling interests-real estate partnerships
|
|
3,317
|
|
85,105
|
|
10,789
|
|
10,562
|
|
11,369
|
Net income (loss) for Parkway Properties, Inc.
|
|
(39,395)
|
|
(126,903)
|
|
(2,618)
|
|
(11,603)
|
|
9,274
|
Dividends on preferred stock
|
|
(10,843)
|
|
(10,052)
|
|
(6,325)
|
|
(4,800)
|
|
(4,800)
|
Dividends on convertible preferred stock
|
|
(1,011)
|
|
-
|
|
-
|
|
-
|
|
-
|
Net income (loss) attributable to common stockholders
|
$
|
(51,249)
|
$
|
(136,955)
|
$
|
(8,943)
|
$
|
(16,403)
|
$
|
4,474
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations
|
$
|
(62,458)
|
$
|
(35,803)
|
$
|
(13,801)
|
$
|
(18,031)
|
$
|
(14,507)
|
Discontinued operations
|
|
11,209
|
|
(101,152)
|
|
4,858
|
|
1,628
|
|
18,981
|
Net income (loss) attributable to common stockholders
|
$
|
(51,249)
|
$
|
(136,955)
|
$
|
(8,943)
|
$
|
(16,403)
|
$
|
4,474
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common share attributable to
|
|
|
|
|
|
|
|
|
|
|
Parkway Properties, Inc.
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted:
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations attributable to
|
|
|
|
|
|
|
|
|
|
|
Parkway Properties, Inc.
|
$
|
(1.98)
|
$
|
(1.66)
|
$
|
(0.65)
|
$
|
(0.93)
|
$
|
(0.96)
|
Discontinued operations
|
|
0.36
|
|
(4.71)
|
|
0.23
|
|
0.08
|
|
1.26
|
Net income (loss) attributable to Parkway Properties, Inc.
|
$
|
(1.62)
|
$
|
(6.37)
|
$
|
(0.42)
|
$
|
(0.85)
|
$
|
0.30
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common share (at end of year)
|
$
|
10.11
|
$
|
11.03
|
$
|
17.50
|
$
|
18.32
|
$
|
22.83
|
Dividends per common share
|
$
|
0.375
|
$
|
0.30
|
$
|
0.30
|
$
|
1.30
|
$
|
2.275
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
31,542
|
|
21,497
|
|
21,421
|
|
19,304
|
|
15,023
|
Diluted
|
|
31,542
|
|
21,497
|
|
21,421
|
|
19,304
|
|
15,023
|
Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
|
Office investments, net of depreciation
|
$
|
1,562,717
|
$
|
921,937
|
$
|
1,389,767
|
$
|
1,401,890
|
$
|
1,455,239
|
Total assets
|
|
1,906,611
|
|
1,636,311
|
|
1,603,682
|
|
1,612,146
|
|
1,687,855
|
Notes payable to banks
|
|
262,000
|
|
132,322
|
|
110,839
|
|
100,000
|
|
185,940
|
Mortgage notes payable
|
|
605,889
|
|
498,012
|
|
773,535
|
|
852,700
|
|
869,581
|
Total liabilities
|
|
950,605
|
|
1,006,274
|
|
983,163
|
|
1,041,285
|
|
1,154,383
|
Preferred stock
|
|
128,942
|
|
128,942
|
|
102,787
|
|
57,976
|
|
57,976
|
Noncontrolling interests
|
|
261,992
|
|
258,428
|
|
134,017
|
|
116,715
|
|
127,224
|
Total stockholders' equity attributable to Parkway
|
|
|
|
|
|
|
|
|
|
|
Properties, Inc.
|
|
694,014
|
|
371,609
|
|
486,502
|
|
454,145
|
|
406,248
|
·
|
Create Value as the Leading Owner of Quality Assets in Core Submarkets. Our investment strategy is to pursue attractive returns by focusing primarily on owning high-quality office buildings and portfolios that are well-located and competitively positioned within central business district and urban infill locations within our core submarkets in the Sunbelt region of the United States. In these submarkets, we seek to maintain a portfolio that consists of core, core-plus, and value-add investment opportunities. Further, we intend to pursue an efficient capital allocation strategy that maximizes the returns on our invested capital. This may include selectively disposing of properties when we believe returns have been maximized and redeploying capital into acquisitions or other opportunities.
|
·
|
Maximize Cash Flow by Continuing to Enhance the Operating Performance of Each Property. We provide property management and leasing services to our portfolio, actively managing our properties and leveraging our tenant relationships to improve operating performance, maximize long-term cash flow and enhance stockholder value. We seek to attain a favorable customer retention rate by providing outstanding property management and customer service programs responsive to the varying needs of our diverse temant base. We also employ a judicious prioritization of capital projects to focus on projects that enhance the value of our property through increased rental rates, occupancy, service delivery, or enhanced reversion value.
|
·
|
Realize Leasing and Operational Efficiencies and Gain Local Advantage. We concentrate our real estate portfolio in submarkets where we believe that we can maximize market penetration by accumulating a critical mass of properties and thereby enhance operating efficiencies. We believe that strengthening our local presence and leveraging our extensive market relationships will yield superior market information and service delivery and facilitate additional investment opportunities to create long-term stockholder value.
|
Office Property
|
Location
|
Type of
Ownership
|
Ownership
Share
|
Square
Feet
|
Date
Purchased
|
Gross
Purchase
Price
|
|
|
|
|
|
|
|
|
|
The Pointe
|
Tampa, FL
|
Fund II
|
30.0%
|
252
|
01/11/12
|
$
|
46,900
|
Hayden Ferry Lakeside II
|
Phoenix, AZ
|
Fund II
|
30.0%
|
300
|
02/10/12
|
|
86,000
|
Hearst Tower
|
Charlotte, NC
|
Wholly owned
|
100.0%
|
973
|
06/06/12
|
|
250,000
|
Hayden Ferry Lakeside III, IV, and V
|
Phoenix, AZ
|
Fund II
|
30.0%
|
21
|
08/31/12
|
|
18,200
|
Westshore Corporate Center
|
Tampa, FL
|
Wholly owned
|
100.0%
|
170
|
11/15/12
|
|
22,691
|
525 North Tryon
|
Charlotte, NC
|
Wholly owned
|
100.0%
|
402
|
12/06/12
|
|
47,350
|
Phoenix Tower
|
Houston, TX
|
Wholly owned
|
100.0%
|
626
|
12/20/12
|
|
123,750
|
Tempe Gateway
|
Phoenix, AZ
|
Wholly owned
|
100.0%
|
251
|
12/21/12
|
|
66,100
|
NASCAR Plaza
|
Charlotte, NC
|
Wholly owned
|
100.0%
|
395
|
12/31/12
|
|
99,999
|
|
|
|
|
|
|
|
|
|
|
|
|
3,390
|
|
$
|
760,990
|
|
|
|
|
|
Gross
|
|
|||
|
|
|
Square
|
Date of
|
Sales
|
|
Gain (Loss)
|
||
Office Property
|
|
Location
|
Feet
|
Sale
|
Price
|
|
on Sale
|
||
Falls Pointe
|
|
Atlanta, GA
|
107
|
01/06/12
|
$
|
6,000
|
|
$
|
1,357
|
111 East Wacker
|
|
Chicago, IL
|
1,013
|
01/09/12
|
|
150,600
|
|
|
3
|
Renaissance Center
|
|
Memphis, TN
|
189
|
03/01/12
|
|
27,650
|
|
|
3,033
|
Non-Core Assets
|
|
Various
|
1,745
|
Various
|
|
139,500
|
|
|
3,700
|
Overlook II
|
|
Atlanta, GA
|
260
|
04/30/12
|
|
29,350
|
|
|
777
|
Wink
|
|
New Orleans, LA
|
32
|
06/08/12
|
|
765
|
|
|
(98)
|
Ashford Center/
Peachtree Ridge
|
|
Atlanta, GA
|
321
|
07/01/12
|
|
29,850
|
|
|
1,292
|
111 Capitol Building
|
|
Jackson, MS
|
187
|
09/06/12
|
|
8,200
|
|
|
(371)
|
Sugar Grove
|
|
Houston, TX
|
124
|
10/23/12
|
|
11,425
|
|
|
3,246
|
|
|
|
|
|
|
|
|
|
|
Total 2012
|
|
|
3,978
|
|
$
|
403,340
|
|
$
|
12,939
|
|
Increase
|
|
|
(Decrease)
|
|
|
|
|
Placement of mortgage debt on Fund II properties
|
$
|
73,500
|
Assumption of mortgage debt on Westshore Corporate Center
|
|
15,717
|
Assumption of mortgage debt on NASCAR Plaza
|
|
42,977
|
Transfer of mortgage to purchaser of Fund I properties
|
|
(76,722)
|
Transfer of mortgage to purchaser of non-core properties
|
|
(177,373)
|
Principal paid on early extinguishment of debt
|
|
(16,275)
|
Scheduled principal payments
|
|
(8,348)
|
|
$
|
(146,524)
|
|
Increase
(Decrease)
|
|
Net loss attributable to Parkway Properties, Inc.
|
$
|
(39,395)
|
Net loss attributable to noncontrolling interest
|
|
(3,586)
|
Net loss
|
|
(42,981)
|
Change in market value of interest rate swaps
|
|
(3,364)
|
Common stock dividends declared
|
|
(14,570)
|
Preferred stock dividends declared
|
|
(10,843)
|
Convertible preferred dividends declared
|
|
(1,011)
|
Share-based compensation
|
|
432
|
Shares issued in lieu of Director's Fees
|
|
263
|
Issuance of common stock
|
|
229,843
|
Shares issued pursuant to TPG Management Services Agreement |
225
|
|
Conversion of 13,484,444 convertible preferred shares to common stock
|
|
141,173
|
Shares purchased to satisfy tax withholding obligation on vesting of restricted stock
|
|
|
and deferred incentive share units
|
|
(173)
|
Net shares distributed from deferred compensation plan
|
|
220
|
Issuance of 1.8 million operating partnership units
|
|
18,216
|
Contribution of capital by noncontrolling interest
|
|
17,447
|
Distribution of capital to noncontrolling interest
|
|
(729)
|
Sale of noncontrolling interest in Parkway Properties Office Fund, L.P.
|
|
(8,179)
|
|
$
|
325,969
|
|
Year Ended December 31
|
||||||
|
|
|
|
%
|
|||
|
2012
|
2011
|
Increase
|
Change
|
|||
Revenue from office properties:
|
|
|
|
||||
Same-store properties
|
$
|
140,887
|
$
|
136,917
|
$
|
3,970
|
2.9%
|
Properties acquired
|
|
65,852
|
|
10,373
|
|
55,479
|
*N/M
|
Total revenue from office properties
|
$
|
206,739
|
$
|
147,290
|
$
|
59,449
|
40.4%
|
*N/M – Not meaningful
|
|
Year Ended December 31
|
||||||
|
|
|
Increase
|
%
|
|||
|
2012
|
2011
|
(Decrease)
|
Change
|
|||
Expense from office properties:
|
|
|
|
||||
Same-store properties
|
$
|
56,809
|
$
|
57,364
|
$
|
(555)
|
-1.0%
|
Properties acquired
|
|
23,939
|
|
3,369
|
|
20,570
|
*N/M
|
Total expense from office properties
|
$
|
80,748
|
$
|
60,733
|
$
|
20,015
|
33.0%
|
*N/M – Not meaningful
|
|
|
Weighted
|
Deferred
|
Weighted
|
||
|
Restricted
|
Average
|
Incentive
|
Average
|
||
|
Shares
|
Price
|
Share Units
|
Price
|
||
Outstanding at December 31, 2010
|
479,930
|
$
|
12.81
|
15,640
|
$
|
25.71
|
Granted
|
235,168
|
|
10.31
|
20,435
|
|
23.97
|
Vested
|
(99,202)
|
|
23.99
|
(4,930)
|
|
45.11
|
Forfeited
|
(161,826)
|
|
10.68
|
(3,775)
|
|
20.38
|
Outstanding at December 31, 2011
|
454,070
|
|
9.83
|
27,370
|
|
21.65
|
Granted
|
21,900
|
|
10.15
|
-
|
|
-
|
Vested
|
(56,013)
|
|
21.55
|
(3,030)
|
|
14.93
|
Forfeited
|
(138,724)
|
|
8.18
|
(6,580)
|
|
14.06
|
Outstanding at December 31, 2012
|
281,233
|
$
|
8.34
|
17,760
|
$
|
25.61
|
|
Year Ended December 31
|
||||||
|
|
|
Increase
|
%
|
|||
|
2012
|
2011
|
(Decrease)
|
Change
|
|||
Interest expense:
|
|
|
|
|
|||
Mortgage interest expense
|
$
|
30,515
|
$
|
24,411
|
$
|
6,104
|
25.0%
|
Credit facility interest expense
|
|
2,640
|
|
5,578
|
|
(2,938)
|
-52.7%
|
Debt prepayment expense
|
|
190
|
|
-
|
|
190
|
*N/M
|
Mortgage loan cost amortization
|
|
689
|
|
477
|
|
212
|
44.4%
|
Credit facility cost amortization
|
|
1,300
|
|
1,146
|
|
154
|
13.4%
|
|
|
|
|
|
|
|
|
Total interest expense
|
$
|
35,334
|
$
|
31,612
|
$
|
3,722
|
11.8%
|
*N/M – Not meaningful
|
|
|
|
|
|
|
|
|
Year Ended December 31
|
|||||
|
2012
|
|
2011
|
|||
Statement of Operations:
|
|
|
|
|||
Revenues
|
|
|
|
|||
Income from office properties
|
$
|
13,752
|
|
$
|
135,964
|
|
|
|
13,752
|
|
|
135,964
|
|
Expenses
|
|
|
|
|
|
|
Office properties:
|
|
|
|
|
|
|
Operating expenses
|
|
6,525
|
|
|
61,424
|
|
Management company expense
|
|
350
|
|
|
288
|
|
Interest expense
|
|
5,199
|
|
|
29,794
|
|
Gain on extinguishment of debt
|
|
(1,494)
|
|
|
(7,635)
|
|
Non-cash expense on interest rate swap
|
|
(215)
|
|
|
2,338
|
|
Depreciation and amortization
|
|
933
|
|
|
54,628
|
|
Impairment loss
|
|
-
|
|
|
189,940
|
|
|
|
11,298
|
|
|
330,777
|
|
|
|
|
|
|
|
|
Income (loss) from discontinued operations
|
|
2,454
|
|
|
(194,813)
|
|
Gain on sale of real estate from discontinued operations
|
|
12,939
|
|
|
17,825
|
|
Total discontinued operations per Statement of Operations
|
|
15,393
|
|
$
|
(176,988)
|
|
Net (income) loss attributable to noncontrolling interest from discontinued operations
|
|
(4,184)
|
|
|
75,836
|
|
Total discontinued operations – Parkway's Share
|
$
|
11,209
|
|
$
|
(101,152)
|
Office Property
|
|
Location
|
|
Square
Feet
|
|
Date of
Sale
|
|
|
Net Sales
Price
|
|
|
Net Book
Value of
Real Estate
|
|
|
Gain
(Loss)
on Sale
|
233 North Michigan
|
|
Chicago, IL
|
|
1,070
|
|
05/11/2011
|
|
$
|
156,546
|
|
$
|
152,254
|
|
$
|
4,292
|
Greenbrier I & II
|
|
Hampton
Roads, VA
|
|
172
|
|
07/19/2011
|
|
|
16,275
|
|
|
15,070
|
|
|
1,205
|
Glen Forest
|
|
Richmond, VA
|
|
81
|
|
08/16/2011
|
|
|
8,950
|
|
|
7,880
|
|
|
1,070
|
Tower at Gervais
|
|
Columbia, SC
|
|
298
|
|
09/08/2011
|
|
|
18,421
|
|
|
18,421
|
|
|
-
|
Wells Fargo
|
|
Houston, TX
|
|
134
|
|
12/09/2011
|
|
|
-
|
|
|
-
|
|
|
-
|
Fund I Assets
|
|
Various
|
|
1,956
|
|
12/31/2011
|
|
|
255,725
|
|
|
244,467
|
|
|
11,258
|
2011 Dispositions (1)
|
|
|
|
3,711
|
|
|
|
$
|
455,917
|
|
$
|
438,092
|
|
$
|
17,825
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Falls Pointe
|
|
Atlanta, GA
|
|
107
|
|
01/06/2012
|
|
$
|
5,824
|
|
$
|
4,467
|
|
$
|
1,357
|
111 East Wacker
|
|
Chicago, IL
|
|
1,013
|
|
01/09/2012
|
|
|
153,240
|
|
|
153,237
|
|
|
3
|
Renaissance Center
|
|
Memphis, TN
|
|
189
|
|
03/01/2012
|
|
|
27,661
|
|
|
24,629
|
|
|
3,032
|
Overlook II
|
|
Atlanta, GA
|
|
260
|
|
04/30/2012
|
|
|
29,467
|
|
|
28,689
|
|
|
778
|
Wink Building
|
|
New Orleans, LA
|
|
32
|
|
06/08/2012
|
|
|
705
|
|
|
803
|
|
|
(98)
|
Ashford/Peachtree
|
|
Atlanta, GA
|
|
321
|
|
07/01/2012
|
|
|
29,440
|
|
|
28,148
|
|
|
1,292
|
Non-Core Assets
|
|
Various
|
|
1,932
|
|
Various
|
|
|
125,486
|
|
|
122,157
|
|
|
3,329
|
Sugar Grove
|
|
Houston, TX
|
|
124
|
|
10/23/2012
|
|
|
10,303
|
|
|
7,057
|
|
|
3,246
|
2012 Dispositions (2)
|
|
|
|
3,978
|
|
|
|
$
|
382,126
|
|
$
|
369,187
|
|
$
|
12,939
|
|
|||||||||||||||
(1) Total gain on the sale of real estate in discontinued operations recognized for the year ended December 31, 2011 was $17.8 million, of which $9.8 million was our proportionate share.
|
|||||||||||||||
(2) Total gain on the sale of real estate in discontinued operations recognized for the year ended December 31, 2012 was $12.9 million, of which $8.1 million was our proportionate share.
|
|
Year Ended December 31
|
||||||
|
|
|
Increase
|
%
|
|||
|
2012
|
2011
|
(Decrease)
|
Change
|
|||
Income tax expense
|
|
|
|
|
|||
Income tax expense – current
|
$
|
1,116
|
$
|
486
|
$
|
630
|
129.6%
|
Income tax benefit – deferred
|
|
(1,855)
|
|
(430)
|
|
(425)
|
98.8%
|
Total income tax expense
|
$
|
261
|
$
|
56
|
$
|
205
|
366.1%
|
|
Year Ended December 31
|
||||||
|
|
|
Increase
|
%
|
|||
|
2011
|
2010
|
(Decrease)
|
Change
|
|||
Revenue from office properties:
|
|
|
|
||||
Same-store properties
|
$
|
87,970
|
$
|
93,184
|
$
|
(5,214)
|
-5.6%
|
Properties acquired
|
|
59,320
|
|
364
|
|
58,956
|
N/M*
|
Total revenue from office properties
|
$
|
147,290
|
$
|
93,548
|
$
|
53,742
|
57.4%
|
*N/M – Not meaningful
|
|
Year Ended December 31
|
||||||
|
|
|
Increase
|
%
|
|||
|
2011
|
2010
|
(Decrease)
|
Change
|
|||
Expense from office properties:
|
|
|
|
||||
Same-store properties
|
$
|
38,365
|
$
|
40,124
|
$
|
(1,759)
|
-4.4%
|
Properties acquired
|
|
22,368
|
|
284
|
|
22,084
|
N/M*
|
Total expense from office properties
|
$
|
60,733
|
$
|
40,408
|
$
|
20,325
|
50.3%
|
*N/M – Not meaningful
|
|||||||
|
|
|
Weighted
|
Deferred
|
Weighted
|
||
|
Restricted
|
Average
|
Incentive
|
Average
|
||
|
Shares
|
Price
|
Share Units
|
Price
|
||
Outstanding at December 31, 2009
|
308,975
|
$
|
29.94
|
18,055
|
$
|
34.08
|
Granted
|
345,120
|
|
7.30
|
3,805
|
|
14.83
|
Vested
|
(152,941)
|
|
33.06
|
(4,355)
|
|
47.78
|
Forfeited
|
(21,224)
|
|
26.69
|
(1,865)
|
|
32.99
|
Outstanding at December 31, 2010
|
479,930
|
|
12.81
|
15,640
|
|
25.71
|
Granted
|
235,168
|
|
10.31
|
20,435
|
|
23.97
|
Vested
|
(99,202)
|
|
23.99
|
(4,930)
|
|
45.11
|
Forfeited
|
(161,826)
|
|
10.68
|
(3,775)
|
|
20.38
|
Outstanding at December 31, 2011
|
454,070
|
$
|
9.83
|
27,370
|
$
|
21.65
|
|
|
Threshold
|
|
Target
|
|
Maximum
|
Absolute Return Goal
|
|
10%
|
|
12%
|
|
14%
|
Relative Return Goal
|
|
RMS + 100 bps
|
|
RMS + 200 bps
|
|
RMS + 300 bps
|
|
Year Ended December 31
|
||||||
|
|
|
Increase
|
%
|
|||
|
2011
|
2010
|
(Decrease)
|
Change
|
|||
Interest expense:
|
|
|
|
|
|||
Mortgage interest expense
|
$
|
24,411
|
$
|
13,926
|
$
|
10,485
|
75.3%
|
Credit facility interest expense
|
|
5,578
|
|
5,200
|
|
378
|
7.3%
|
Debt prepayment expense
|
|
-
|
|
53
|
|
(53)
|
*N/M
|
Mortgage loan cost amortization
|
|
477
|
|
276
|
|
201
|
72.8%
|
Credit facility cost amortization
|
|
1,146
|
|
816
|
|
330
|
40.4%
|
|
|
|
|
|
|
|
|
Total interest expense
|
$
|
31,612
|
$
|
20,271
|
$
|
11,341
|
55.9%
|
*N/M – Not meaningful
|
|
|
|
|
|
|
|
|
Year Ended December 31
|
||||
|
2011
|
|
2010
|
||
Statement of Operations:
|
|
|
|
||
Revenues
|
|
|
|
||
Income from office properties
|
$
|
135,964
|
|
$
|
162,057
|
|
|
135,964
|
|
|
162,057
|
Expenses
|
|
|
|
|
|
Office properties:
|
|
|
|
|
|
Operating expenses
|
|
61,424
|
|
|
69,930
|
Management company expense
|
|
288
|
|
|
380
|
Interest expense
|
|
29,794
|
|
|
34,693
|
Gain on extinguishment of debt
|
|
(7,635)
|
|
|
-
|
Non-cash expense on interest rate swap
|
|
2,338
|
|
|
-
|
Depreciation and amortization
|
|
54,628
|
|
|
63,815
|
Impairment loss
|
|
189,940
|
|
|
4,120
|
|
|
330,777
|
|
|
172,938
|
|
|
|
|
|
|
Loss from discontinued operations
|
|
(194,813)
|
|
|
(10,881)
|
Gain on sale of real estate from discontinued operations
|
|
17,825
|
|
|
8,518
|
Total discontinued operations per Statement of Operations
|
|
(176,988)
|
|
|
(2,363)
|
Net loss attributable to noncontrolling interest from discontinued operations
|
|
75,836
|
|
|
7,221
|
Total discontinued operations – Parkway's Share
|
$
|
(101,152)
|
|
$
|
4,858
|
Office Property
|
Location
|
Square
Feet
|
Date of
Sale
|
|
Net Sales
Price
|
|
Net Book
Value of
Real Estate
|
|
Gain
(Loss)
on Sale
|
|
Impairment
Loss (3)
|
One Park Ten
|
Houston, TX
|
163
|
04/15/2010
|
$
|
14,924
|
$
|
6,406
|
$
|
8,518
|
$
|
-
|
2010 Dispositions
|
|
163
|
|
$
|
14,924
|
$
|
6,406
|
$
|
8,518
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
233 North Michigan
|
Chicago, IL
|
1,070
|
05/11/2011
|
$
|
156,546
|
$
|
152,254
|
$
|
4,292
|
$
|
-
|
Greenbrier I & II
|
Hampton Roads, VA
|
172
|
07/19/2011
|
|
16,275
|
|
15,070
|
|
1,205
|
|
-
|
Glen Forest
|
Richmond, VA
|
81
|
08/16/2011
|
|
8,950
|
|
7,880
|
|
1,070
|
|
-
|
Tower at Gervais (4)
|
Columbia, SC
|
298
|
09/08/2011
|
|
18,421
|
|
18,421
|
|
-
|
|
6,147
|
Wells Fargo
|
Houston, TX
|
134
|
12/09/2011
|
|
-
|
|
-
|
|
-
|
|
11,561
|
Fund I Assets
|
Various
|
1,956
|
12/31/2011
|
|
255,725
|
|
244,467
|
|
11,258
|
|
68,513
|
2011 Dispositions (1)
|
|
3,711
|
|
$
|
455,917
|
$
|
438,092
|
$
|
17,825
|
$
|
86,221
|
|
|
|
|
|
|
|
|
|
|
|
|
Falls Pointe
|
Atlanta, GA
|
107
|
01/06/2012
|
$
|
5,824
|
$
|
4,467
|
$
|
1,357
|
$
|
-
|
111 East Wacker
|
Chicago, IL
|
1,013
|
01/09/2012
|
|
153,240
|
|
153,237
|
|
3
|
|
19,050
|
Renaissance Center
|
Memphis, TN
|
189
|
03/01/2012
|
|
27,661
|
|
24,629
|
|
3,032
|
|
9,200
|
Overlook II
|
Atlanta, GA
|
260
|
04/30/2012
|
|
29,467
|
|
28,689
|
|
778
|
|
10,500
|
Wink Building
|
New Orleans, LA
|
32
|
06/08/2012
|
|
705
|
|
803
|
|
(98)
|
|
-
|
Ashford/Peachtree
|
Atlanta, GA
|
321
|
07/01/2012
|
|
29,440
|
|
28,148
|
|
1,292
|
|
17,200
|
Non-Core Assets (5)
|
Various
|
1,932
|
Various
|
|
125,486
|
|
122,157
|
|
3,329
|
|
51,889
|
Sugar Grove
|
Houston, TX
|
124
|
10/23/2012
|
|
10,303
|
|
7,057
|
|
3,246
|
|
-
|
2012 Dispositions (2)
|
|
3,978
|
|
$
|
382,126
|
$
|
369,187
|
$
|
12,939
|
$
|
107,839
|
(1) Total gain on the sale of real estate in discontinued operations recognized for the year ended December 31, 2011 was $17.8 million, of which $9.8 million was our proportionate share.
|
(2) Total gain on the sale of real estate in discontinued operations recognized during the year ended December 31, 2012 was $12.9 million, of which $8.1 million was our proportionate share.
|
(3) Total impairment losses in discontinued operations recognized during 2011 total $189.9 million, of which $113.8 million was our proportionate share.
|
(4) During 2010 and 2011, we recognized non-cash impairment losses on this property of $3.4 million and $2.7 million, respectively.
|
(5) During 2010 and 2011, we recognized non-cash impairment losses associated with these properties of $640,000 and $51.2 million, respectively.
|
|
December 31
|
|
|
2011
|
|
Balance Sheet:
|
|
|
Investment property
|
$
|
355,623
|
Accumulated depreciation
|
|
(23,709)
|
Office property held for sale
|
|
331,914
|
Rents receivable and other assets
|
|
44,724
|
Intangible assets, net
|
|
6,151
|
Other assets held for sale
|
|
50,875
|
Total assets held for sale
|
$
|
382,789
|
|
|
|
Mortgage notes payable
|
$
|
254,401
|
Accounts payable and other liabilities
|
|
31,198
|
Total liabilities held for sale
|
$
|
285,599
|
|
Year Ended December 31
|
||||||
|
|
|
Increase
|
%
|
|||
|
2011
|
2010
|
(Decrease)
|
Change
|
|||
Income-tax expense
|
|
|
|
|
|||
Income tax expense – current
|
$
|
486
|
$
|
2
|
$
|
484
|
N/M*
|
Income tax benefit – deferred
|
|
(430)
|
|
-
|
|
(430)
|
N/M*
|
Total income tax expense
|
$
|
56
|
$
|
2
|
$
|
54
|
N/M*
|
*N/M – Not meaningful
|
·
|
funding operating and administrative expenses;
|
·
|
meeting debt service and debt maturity obligations;
|
·
|
funding normal repair and maintenance expenses at our properties;
|
·
|
funding capital improvements;
|
·
|
acquiring additional investments that meet our investment criteria; and
|
·
|
funding distributions to stockholders.
|
·
|
our current cash balance;
|
·
|
our operating cash flows;
|
·
|
borrowings (including borrowing availability under our senior unsecured revolving credit facility);
|
·
|
proceeds from the placement of new mortgage loans and refinancing of existing mortgage loans;
|
·
|
proceeds from the sale of assets and the sale of portions of owned assets through Fund II; and
|
·
|
the possible sale of equity or debt securities.
|
|
|
|
|
Interest
|
|
|
|
|
Outstanding
|
Credit Facilities
|
|
Lender
|
|
Rate
|
|
Maturity
|
|
|
Balance
|
$10.0 Million Unsecured Working Capital Revolving Credit Facility (1)
|
|
PNC Bank
|
|
-%
|
|
03/29/16
|
|
$
|
-
|
$215.0 Million Unsecured Revolving Credit Facility (1)
|
|
Various
|
|
1.8%
|
|
03/29/16
|
|
|
137,000
|
$125.0 Million Unsecured Term Loan (2)
|
|
Various
|
|
2.2%
|
|
09/27/17
|
|
|
125,000
|
|
|
|
|
2.0%
|
|
|
|
$
|
262,000
|
(1)
|
The interest rate on the credit facilities is based on LIBOR plus 160 to 235 basis points, depending upon overall Company leverage as defined in the loan agreements for our credit facility, with the current rate set at 160 basis points. Additionally, we pay fees on the unused portion of the credit facilities ranging between 25 and 35 basis points based upon usage of the aggregate commitment, with the current rate set at 25 basis points.
|
(2)
|
The interest rate on the term loan is based on LIBOR plus an applicable margin of 1.5% to 2.3% depending on our leverage (with the current rate set at 1.5%). On September 28, 2012, we executed two floating-to-fixed interest rate swaps totaling $125 million, locking LIBOR at 0.7% for five years which is effective October 1, 2012.
|
|
Weighted
|
|
|
Total
|
|
|
|
|
|
Recurring
|
|
Average
|
|
|
Mortgage
|
|
|
Balloon
|
|
|
Principal
|
|
Interest Rate
|
|
|
Maturities
|
|
|
Payments
|
|
|
Amortization
|
Schedule of Mortgage Maturities by Years:
|
|
|
|
|
|
|
|
|
|
|
2013
|
5.4%
|
|
$
|
9,674
|
|
$
|
-
|
|
$
|
9,674
|
2014
|
5.3%
|
|
|
10,848
|
|
|
-
|
|
|
10,848
|
2015
|
5.3%
|
|
|
25,407
|
|
|
14,051
|
|
|
11,356
|
2016
|
5.3%
|
|
|
147,097
|
|
|
137,776
|
|
|
9,321
|
2017
|
5.1%
|
|
|
116,439
|
|
|
107,907
|
|
|
8,532
|
2018
|
5.3%
|
|
|
98,052
|
|
|
91,550
|
|
|
6,502
|
Thereafter
|
6.1%
|
|
|
198,372
|
|
|
194,317
|
|
|
4,055
|
Total
|
5.3%
|
|
$
|
605,889
|
|
$
|
545,601
|
|
$
|
60,288
|
Fair value at 12/31/12
|
|
|
$
|
623,604
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value
|
||
|
|
|
|
|
|
|
|
Liability
|
||
Type of
|
Balance Sheet
|
|
Notional
|
Maturity
|
|
Fixed
|
|
December 31
|
||
Hedge
|
Location
|
|
Amount
|
Date
|
Reference Rate
|
Rate
|
|
2012
|
|
2011
|
Swap
|
Accounts payable
and other liabilities
|
$
|
12,088
|
11/18/15
|
1-month LIBOR
|
4.1%
|
$
|
(582)
|
$
|
(581)
|
Swap
|
Accounts payable
and other liabilities
|
$
|
30,000
|
02/01/16
|
1-month LIBOR
|
2.3%
|
|
(1,787)
|
|
-
|
Swap
|
Accounts payable
and other liabilities
|
$
|
50,000
|
09/27/17
|
1-month LIBOR
|
2.2%
|
|
(43)
|
|
-
|
Swap
|
Accounts payable
and other liabilities
|
$
|
75,000
|
09/27/17
|
1-month LIBOR
|
2.2%
|
|
(65)
|
|
-
|
Swap
|
Accounts payable
and other liabilities
|
$
|
33,875
|
11/18/17
|
1-month LIBOR
|
4.7%
|
|
(3,312)
|
|
(2,862)
|
Swap
|
Accounts payable
and other liabilities
|
$
|
22,000
|
01/25/18
|
1-month LIBOR
|
4.5%
|
|
(1,923)
|
|
(1,548)
|
Swap
|
Accounts payable
and other liabilities
|
$
|
48,125
|
01/25/18
|
1-month LIBOR
|
5.0%
|
|
(1,581)
|
|
-
|
Swap
|
Accounts payable
and other liabilities
|
$
|
9,250
|
09/30/18
|
1-month LIBOR
|
5.2%
|
|
(1,218)
|
|
(1,083)
|
Swap
|
Accounts payable
and other liabilities
|
$
|
22,500
|
10/08/18
|
1-month LIBOR
|
5.4%
|
|
(3,135)
|
|
(2,826)
|
Swap
|
Accounts payable
and other liabilities
|
$
|
22,100
|
11/18/18
|
1-month LIBOR
|
5.0%
|
|
(2,639)
|
|
(2,234)
|
|
|
|
|
|
|
|
$
|
(16,285)
|
$
|
(11,134)
|
·
|
90% of our "REIT taxable income" (computed without regard to the dividends paid deduction and our net capital gain) and
|
·
|
90% of the net income (after tax), if any, from foreclosure property, minus
|
·
|
the sum of certain items of noncash income over 5% of our REIT taxable income.
|
|
Payments Due By Period
|
|||||||||||||
Contractual Obligations
|
Total
|
2013
|
2014
|
2015
|
2016
|
2017
|
Thereafter
|
|||||||
Long-Term Debt (includes principal and interest and credit facility)
|
$
|
1,041,053
|
$
|
47,091
|
$
|
47,782
|
$
|
61,510
|
$
|
271,376
|
$
|
266,684
|
$
|
346,610
|
Operating Leases
|
|
569
|
|
315
|
|
155
|
|
59
|
|
25
|
|
13
|
|
2
|
Ground Lease Payments
|
|
16,339
|
|
266
|
|
267
|
|
347
|
|
268
|
|
268
|
|
14,923
|
Purchase Obligations (Tenant improvements)
|
|
5,510
|
|
4,754
|
|
452
|
|
-
|
|
32
|
|
-
|
|
272
|
Total
|
$
|
1,063,471
|
$
|
52,426
|
$
|
48,656
|
$
|
61,916
|
$
|
271,701
|
$
|
266,965
|
$
|
361,807
|
Year Ended
|
|||||
December 31
|
|||||
2012
|
2011
|
||||
Net loss for Parkway Properties, Inc.
|
$
|
(39,395)
|
$
|
(126,903)
|
|
Adjustments to derive FFO:
|
|||||
Depreciation and amortization
|
81,537
|
56,522
|
|||
Depreciation and amortization - discontinued operations
|
|
955
|
|
|
54,628
|
Noncontrolling interest depreciation and amortization
|
|
(32,133)
|
|
|
(36,091)
|
Noncontrolling interest – unit holders
|
|
(269)
|
|
|
5
|
Adjustments for unconsolidated joint ventures
|
|
-
|
|
|
231
|
Convertible preferred dividends
|
|
(1,011)
|
|
|
-
|
Preferred dividends
|
|
(10,843)
|
|
|
(10,052)
|
Gain on sale of real estate (Parkway's share)
|
|
(8,086)
|
|
|
(10,510)
|
Impairment loss on depreciable real estate (Parkway's share)
|
|
9,200
|
|
|
119,137
|
FFO attributable to common stockholders (1)
|
$
|
(45)
|
$
|
46,967
|
(1)
|
Funds from operations attributable to common stockholders for the years ended December 31, 2012 and 2011 include our proportionate share of the following items (in thousands):
|
|
Year Ended December 31
|
||||
|
2012
|
|
2011
|
||
Gain (loss) on extinguishment of debt
|
$
|
(896)
|
|
$
|
8,627
|
Acquisition costs
|
|
(2,127)
|
|
|
(15,447)
|
Expenses related to litigation
|
|
-
|
|
|
(607)
|
Lease termination fee income
|
|
2,494
|
|
|
6,909
|
Change in fair value of contingent consideration
|
|
(216)
|
|
|
13,000
|
Non-cash charge for interest rate swap
|
|
215
|
|
|
(2,338)
|
Realignment expenses - personnel
|
|
(3,202)
|
|
|
(3,782)
|
Loss on non-depreciable assets
|
|
(41,419)
|
|
|
(10,344)
|
|
Year Ended
|
||||
|
December 31
|
||||
|
2012
|
|
2011
|
||
|
|
|
|
||
Cash flows provided by operating activities
|
$
|
61,573
|
|
$
|
35,527
|
|
|
|
|
|
|
Amortization of above market leases
|
|
(5,099)
|
|
|
(1,090)
|
Amortization of mortgage loan discount
|
|
-
|
|
|
400
|
Interest rate swap adjustment
|
|
(215)
|
|
|
2,338
|
Operating distributions from unconsolidated joint ventures
|
|
-
|
|
|
(507)
|
Interest expense
|
|
35,447
|
|
|
59,565
|
Net loss on early extinguishment of debt
|
|
1,493
|
|
|
664
|
Acquisition costs – Parkway's share
|
|
2,127
|
|
|
15,447
|
Tax expense – current
|
|
1,291
|
|
|
486
|
Change in deferred leasing costs
|
|
11,885
|
|
|
16,947
|
Change in receivables and other assets
|
|
1,854
|
|
|
19,737
|
Change in accounts payable and other liabilities
|
|
8,656
|
|
|
(3,443)
|
Adjustments for noncontrolling interests
|
|
(39,389)
|
|
|
(40,315)
|
Adjustments for unconsolidated joint ventures
|
|
37
|
|
|
432
|
EBITDA
|
$
|
79,660
|
|
$
|
106,188
|
|
Year Ended
|
||||
|
December 31
|
||||
|
2012
|
|
2011
|
||
Net loss for Parkway Properties, Inc.
|
$
|
(39,395)
|
|
$
|
(126,903)
|
|
|
|
|
|
|
Adjustments to loss for Parkway Properties, Inc.:
|
|
|
|
|
|
Interest expense
|
|
35,447
|
|
|
59,565
|
Amortization of financing costs
|
|
2,063
|
|
|
2,144
|
Non-cash adjustment for interest rate swap-discontinued operations
|
|
(215)
|
|
|
2,338
|
(Gain) loss on early extinguishment of debt
|
|
1,493
|
|
|
(7,937)
|
Acquisition costs (Parkway's share)
|
|
2,127
|
|
|
15,447
|
Depreciation and amortization
|
|
82,470
|
|
|
111,150
|
Amortization of share-based compensation
|
|
432
|
|
|
1,341
|
Gain on sale of real estate (Parkway's share)
|
|
(8,634)
|
|
|
(10,510)
|
Non-cash losses
|
|
51,167
|
|
|
129,481
|
Change in fair value of contingent consideration
|
|
216
|
|
|
(13,000)
|
Tax expense
|
|
261
|
|
|
56
|
EBITDA adjustments – unconsolidated joint ventures
|
|
58
|
|
|
375
|
EBITDA adjustments – noncontrolling interest in real estate partnerships
|
|
(47,830)
|
|
|
(57,359)
|
|
|
|
|
|
|
EBITDA (1)
|
$
|
79,660
|
|
$
|
106,188
|
|
|
|
|
|
|
Interest coverage ratio:
|
|
|
|
|
|
EBITDA
|
$
|
79,660
|
|
$
|
106,188
|
Interest expense:
|
|
|
|
|
|
Interest expense
|
$
|
35,447
|
|
$
|
59,565
|
Interest expense - unconsolidated joint ventures
|
|
21
|
|
|
143
|
Interest expense - noncontrolling interest in real estate partnerships
|
|
(14,736)
|
|
|
(20,145)
|
Total interest expense
|
$
|
20,732
|
|
$
|
39,563
|
Interest coverage ratio
|
|
3.8
|
|
|
2.7
|
|
|
|
|
|
|
Fixed charge coverage ratio:
|
|
|
|
|
|
EBITDA
|
$
|
79,660
|
|
$
|
106,188
|
Fixed charges:
|
|
|
|
|
|
Interest expense
|
$
|
20,732
|
|
$
|
39,563
|
Preferred dividends
|
|
11,854
|
|
|
10,052
|
Principal payments (excluding early extinguishment of debt)
|
|
8,348
|
|
|
11,531
|
Principal payments - unconsolidated joint ventures
|
|
6
|
|
|
35
|
Principal payments - noncontrolling interest in real estate partnerships
|
|
(2,434)
|
|
|
(2,761)
|
Total fixed charges
|
$
|
38,506
|
|
$
|
58,420
|
Fixed charge coverage ratio
|
|
2.1
|
|
|
1.8
|
|
|
|
|
|
|
Modified fixed charge coverage ratio:
|
|
|
|
|
|
EBITDA
|
$
|
79,660
|
|
$
|
106,188
|
Modified fixed charges:
|
|
|
|
|
|
Interest expense
|
$
|
20,732
|
|
$
|
39,563
|
Preferred dividends
|
|
11,854
|
|
|
10,052
|
Total modified fixed charges
|
$
|
32,586
|
|
$
|
49,615
|
Modified fixed charge coverage ratio
|
|
2.4
|
|
|
2.1
|
|
|
|
|
|
|
Net Debt to EBITDA multiple:
|
|
|
|
|
|
Annualized EBITDA (2)
|
$
|
101,092
|
|
$
|
94,040
|
Parkway's share of total debt:
|
|
|
|
|
|
Mortgage notes payable
|
$
|
605,889
|
|
$
|
498,012
|
Mortgage notes payable – held for sale
|
|
-
|
|
|
254,401
|
Notes payable to banks
|
|
262,000
|
|
|
132,322
|
Adjustments for unconsolidated joint ventures
|
|
-
|
|
|
2,440
|
Adjustments for noncontrolling interest in real estate partnerships
|
|
(272,215)
|
|
|
(280,739)
|
Parkway's share of total debt
|
|
595,674
|
|
|
606,436
|
Less: Parkway's share of cash
|
|
(55,968)
|
|
|
(25,848)
|
Parkway's share of net debt
|
$
|
539,706
|
|
$
|
580,588
|
Net Debt to EBITDA multiple
|
|
5.3
|
|
|
6.2
|
Index to Consolidated Financial Statements
|
Page
|
|
|
Reports of Independent Registered Public Accounting Firms
|
65
|
Consolidated Balance Sheets - at December 31, 2012 and 2011
|
67
|
Consolidated Statements of Operations and Comprehensive Loss - for the years ended
December 31, 2012, 2011 and 2010
|
68
|
Consolidated Statements of Changes in Equity - for the years ended December 31, 2012, 2011 and 2010
|
69
|
Consolidated Statements of Cash Flows - for the years ended December 31, 2012, 2011 and 2010
|
70
|
Notes to Consolidated Financial Statements
|
71
|
Schedule II - Valuations and Qualifying Accounts
|
101
|
Schedule III - Real Estate and Accumulated Depreciation
|
102
|
Note to Schedule III - Real Estate and Accumulated Depreciation
|
104
|
Schedule IV - Mortgage Loans on Real Estate
|
104
|
Note to Schedule IV – Mortgage Loans on Real Estate
|
104
|
|
|
|
December 31
|
December 31
|
||||||
|
2012
|
2011
|
||||||
|
||||||||
Assets
|
||||||||
Real estate related investments:
|
||||||||
Office and parking properties
|
$
|
1,762,566
|
$
|
1,084,060
|
||||
Accumulated depreciation
|
(199,849
|
)
|
(162,123
|
)
|
||||
|
1,562,717
|
921,937
|
||||||
|
||||||||
Land available for sale
|
250
|
250
|
||||||
Mortgage loans
|
-
|
1,500
|
||||||
|
1,562,967
|
923,687
|
||||||
|
||||||||
Receivables and other assets
|
124,691
|
109,427
|
||||||
Intangible assets, net
|
118,097
|
95,628
|
||||||
Assets held for sale
|
-
|
382,789
|
||||||
Management contracts, net
|
19,000
|
49,597
|
||||||
Cash and cash equivalents
|
81,856
|
75,183
|
||||||
|
$
|
1,906,611
|
$
|
1,636,311
|
||||
|
||||||||
Liabilities
|
||||||||
Notes payable to banks
|
$
|
262,000
|
$
|
132,322
|
||||
Mortgage notes payable
|
605,889
|
498,012
|
||||||
Accounts payable and other liabilities
|
82,716
|
90,341
|
||||||
Liabilities related to assets held for sale
|
-
|
285,599
|
||||||
|
950,605
|
1,006,274
|
||||||
|
||||||||
Equity
|
||||||||
Parkway Properties, Inc. stockholders' equity
|
||||||||
8.00% Series D Preferred stock, $.001 par value, 5,421,296
shares authorized, issued and outstanding in 2012 and 2011
|
128,942
|
128,942
|
||||||
Common stock, $.001 par value, 114,578,704 and 64,578,704
shares authorized in 2012 and 2011, respectively, and 56,138,209
and 21,995,536 shares issued and outstanding in 2012 and
2011, respectively
|
56
|
22
|
||||||
Common stock held in trust, at cost, 8,368 shares in 2011
|
-
|
(220
|
)
|
|||||
Additional paid-in capital
|
907,254
|
517,309
|
||||||
Accumulated other comprehensive loss
|
(4,425
|
)
|
(3,340
|
)
|
||||
Accumulated deficit
|
(337,813
|
)
|
(271,104
|
)
|
||||
Total Parkway Properties, Inc. stockholders' equity
|
694,014
|
371,609
|
||||||
Noncontrolling interests
|
261,992
|
258,428
|
||||||
Total equity
|
956,006
|
630,037
|
||||||
|
$
|
1,906,611
|
$
|
1,636,311
|
|
Year Ended December 31
|
|||||||||||
|
2012
|
2011
|
2010
|
|||||||||
Revenues
|
||||||||||||
Income from office and parking properties
|
$
|
206,739
|
$
|
147,290
|
$
|
93,548
|
||||||
Management company income
|
19,778
|
16,896
|
1,652
|
|||||||||
Total revenues
|
226,517
|
164,186
|
95,200
|
|||||||||
|
||||||||||||
Expenses and other
|
||||||||||||
Property operating expenses
|
80,748
|
60,733
|
40,408
|
|||||||||
Depreciation and amortization
|
81,537
|
56,522
|
28,496
|
|||||||||
Impairment loss on real estate
|
9,200
|
6,420
|
-
|
|||||||||
Impairment loss on mortgage loan receivable
|
-
|
9,235
|
-
|
|||||||||
Impairment loss on management contracts and goodwill
|
41,967
|
-
|
-
|
|||||||||
Change in fair value of contingent consideration
|
216
|
(13,000
|
)
|
-
|
||||||||
Management company expenses
|
17,237
|
13,337
|
2,756
|
|||||||||
General and administrative
|
16,420
|
18,805
|
15,318
|
|||||||||
Acquisition costs
|
2,791
|
17,219
|
846
|
|||||||||
Total expenses and other
|
250,116
|
169,271
|
87,824
|
|||||||||
|
||||||||||||
Operating income (loss)
|
(23,599
|
)
|
(5,085
|
)
|
7,376
|
|||||||
|
||||||||||||
Other income and expenses
|
||||||||||||
Interest and other income
|
272
|
938
|
1,487
|
|||||||||
Equity in earnings of unconsolidated joint ventures
|
-
|
57
|
326
|
|||||||||
Gain on sale of real estate
|
48
|
743
|
40
|
|||||||||
Recovery of loss on mortgage loan receivable
|
500
|
-
|
-
|
|||||||||
Interest expense
|
(35,334
|
)
|
(31,612
|
)
|
(20,271
|
)
|
||||||
|
||||||||||||
Loss before income taxes
|
(58,113
|
)
|
(34,959
|
)
|
(11,042
|
)
|
||||||
|
||||||||||||
Income tax expense
|
(261
|
)
|
(56
|
)
|
(2
|
)
|
||||||
|
||||||||||||
Loss from continuing operations
|
(58,374
|
)
|
(35,015
|
)
|
(11,044
|
)
|
||||||
Discontinued operations:
|
||||||||||||
Income (loss) from discontinued operations
|
2,454
|
(194,813
|
)
|
(10,881
|
)
|
|||||||
Gain on sale of real estate from discontinued operations
|
12,939
|
17,825
|
8,518
|
|||||||||
Total discontinued operations
|
15,393
|
(176,988
|
)
|
(2,363
|
)
|
|||||||
|
||||||||||||
Net loss
|
(42,981
|
)
|
(212,003
|
)
|
(13,407
|
)
|
||||||
Net loss attributable to noncontrolling interests-real estate partnerships
|
3,317
|
85,105
|
10,789
|
|||||||||
Net (income) loss attributable to noncontrolling interests-unit holders
|
269
|
(5
|
)
|
-
|
||||||||
Net loss for Parkway Properties, Inc.
|
(39,395
|
) |
(126,903
|
) |
(2,618
|
) | ||||||
Dividends on preferred stock
|
(10,843
|
)
|
(10,052
|
)
|
(6,325
|
)
|
||||||
Dividends on convertible preferred stock
|
(1,011
|
)
|
-
|
-
|
||||||||
Net loss attributable to common stockholders
|
$
|
(51,249
|
)
|
$
|
(136,955
|
)
|
$
|
(8,943
|
)
|
|||
|
||||||||||||
Net loss
|
$ | (42,981 | ) | $ | (212,003 | ) | $ | (13,407 | ) | |||
Change in fair value of interest rate swaps
|
(3,364 | ) | (8,131 | ) | 1,889 | |||||||
Comprehensive loss
|
(46,345 | ) | (220,134 | ) | (11,518 | ) | ||||||
Comprehensive loss attributable to noncontrolling interests
|
5,865 | 92,894 | 10,789 | |||||||||
Comprehensive loss attributable to common stockholders
|
$ | (40,480 | ) | $ | (127,240 | ) | $ | (729 | ) | |||
Net loss per common share attributable to Parkway Properties, Inc.:
|
||||||||||||
Basic and diluted:
|
||||||||||||
Loss from continuing operations attributable to Parkway Properties, Inc.
|
$
|
(1.98
|
)
|
$
|
(1.66
|
)
|
$
|
(0.65
|
)
|
|||
Discontinued operations
|
0.36
|
(4.71
|
)
|
0.23
|
||||||||
Basic and diluted net loss attributable to Parkway Properties, Inc.
|
$
|
(1.62
|
)
|
$
|
(6.37
|
)
|
$
|
(0.42
|
)
|
|||
|
||||||||||||
Weighted average shares outstanding:
|
||||||||||||
Basic
|
31,542
|
21,497
|
21,421
|
|||||||||
Diluted
|
31,542
|
21,497
|
21,421
|
|||||||||
|
||||||||||||
Amounts attributable to Parkway Properties, Inc. common stockholders:
|
||||||||||||
Loss from continuing operations attributable to Parkway Properties, Inc.
|
$
|
(62,458
|
)
|
$
|
(35,803
|
)
|
$
|
(13,801
|
)
|
|||
Discontinued operations
|
11,209
|
(101,152
|
)
|
4,858
|
||||||||
Net loss attributable to common stockholders
|
$
|
(51,249
|
)
|
$
|
(136,955
|
)
|
$
|
(8,943
|
)
|
|
Parkway Properties, Inc. Stockholders
|
|||||||||||||||||||||||||||||||
|
Accumulated
|
|||||||||||||||||||||||||||||||
|
Common
|
Additional
|
Other
|
|||||||||||||||||||||||||||||
|
Preferred
|
Common
|
Stock Held
|
Paid-In
|
Comprehensive
|
Accumulated
|
Noncontrolling
|
Total
|
||||||||||||||||||||||||
|
Stock
|
Stock
|
in Trust
|
Capital
|
Loss
|
Deficit
|
Interests
|
Equity
|
||||||||||||||||||||||||
Balance at December 31, 2009
|
$
|
57,976
|
$
|
22
|
$
|
(2,399
|
)
|
$
|
515,398
|
$
|
(4,892
|
)
|
$
|
(111,960
|
)
|
$
|
116,687
|
$
|
570,832
|
|||||||||||||
Net loss
|
-
|
-
|
-
|
-
|
-
|
(2,618
|
)
|
(10,789
|
)
|
(13,407
|
)
|
|||||||||||||||||||||
Change in fair value of interest rate swaps
|
-
|
-
|
-
|
-
|
1,889
|
-
|
-
|
1,889
|
||||||||||||||||||||||||
Common dividends declared - $0.30 per share
|
-
|
-
|
-
|
-
|
-
|
(6,494
|
)
|
-
|
(6,494
|
)
|
||||||||||||||||||||||
Preferred dividends declared - $2.00 per share
|
-
|
-
|
-
|
-
|
-
|
(6,325
|
)
|
-
|
(6,325
|
)
|
||||||||||||||||||||||
Share-based compensation
|
-
|
-
|
-
|
1,319
|
-
|
-
|
-
|
1,319
|
||||||||||||||||||||||||
Issuance of 1,974,896 shares of 8.0% Series D preferred stock
|
44,811
|
-
|
-
|
-
|
-
|
-
|
-
|
44,811
|
||||||||||||||||||||||||
15,214 shares issued in lieu of Directors' Fees
|
-
|
-
|
-
|
285
|
-
|
-
|
-
|
285
|
||||||||||||||||||||||||
Issuance costs for shelf registration
|
-
|
-
|
-
|
(14
|
)
|
-
|
-
|
-
|
(14
|
)
|
||||||||||||||||||||||
Purchase of Company stock – 42,618 and 1,465 shares
withheld to satisfy tax withholding obligation in
connection with the vesting of restricted stock and
deferred incentive units, respectively
|
-
|
-
|
-
|
(821
|
)
|
-
|
-
|
-
|
(821
|
)
|
||||||||||||||||||||||
Distribution of 17,125 shares of common stock, deferred
compensation plan
|
-
|
-
|
578
|
-
|
-
|
-
|
-
|
578
|
||||||||||||||||||||||||
Contribution of 4,004 shares of common stock, deferred
compensation plan
|
-
|
-
|
(75
|
)
|
-
|
-
|
-
|
-
|
(75
|
)
|
||||||||||||||||||||||
Contribution of capital by noncontrolling interests
|
-
|
-
|
-
|
-
|
-
|
-
|
27,912
|
27,912
|
||||||||||||||||||||||||
Purchase of noncontrolling interest's share in Parkway
Moore, LLC
|
-
|
-
|
-
|
-
|
-
|
(178
|
)
|
178
|
-
|
|||||||||||||||||||||||
Balance at December 31, 2010
|
102,787
|
22
|
(1,896
|
)
|
516,167
|
(3,003
|
)
|
(127,575
|
)
|
133,988
|
620,490
|
|||||||||||||||||||||
Net loss
|
-
|
-
|
-
|
-
|
-
|
(126,903
|
)
|
(85,100
|
)
|
(212,003
|
)
|
|||||||||||||||||||||
Change in fair value of interest rate swaps
|
-
|
-
|
-
|
-
|
(337
|
)
|
-
|
(7,794
|
)
|
(8,131
|
)
|
|||||||||||||||||||||
Common dividends declared - $0.30 per share
|
-
|
-
|
-
|
-
|
-
|
(6,574
|
)
|
-
|
(6,574
|
)
|
||||||||||||||||||||||
Preferred dividends declared - $2.00 per share
|
-
|
-
|
-
|
-
|
-
|
(10,052
|
)
|
-
|
(10,052
|
)
|
||||||||||||||||||||||
Share-based compensation
|
-
|
-
|
-
|
1,341
|
-
|
-
|
-
|
1,341
|
||||||||||||||||||||||||
Issuance of 1,046,400 shares of 8.0% Series D Preferred
stock
|
26,155
|
-
|
-
|
-
|
-
|
-
|
-
|
26,155
|
||||||||||||||||||||||||
17,636 shares issued in lieu of Directors' Fees
|
-
|
-
|
-
|
198
|
-
|
-
|
-
|
198
|
||||||||||||||||||||||||
Purchase of company stock - 19,133 and 1,656 shares
withheld to satisfy tax withholding obligation in
connection with the vesting of restricted stock and
deferred incentive share units, respectively
|
-
|
-
|
-
|
(397
|
)
|
-
|
-
|
-
|
(397
|
)
|
||||||||||||||||||||||
Distribution 51,827 shares of common stock from
deferred compensation plan
|
-
|
-
|
1,713
|
-
|
-
|
-
|
-
|
1,713
|
||||||||||||||||||||||||
Contribution of 2,061 shares of common stock to deferred
|
||||||||||||||||||||||||||||||||
compensation plan
|
-
|
-
|
(37
|
)
|
-
|
-
|
-
|
-
|
(37
|
)
|
||||||||||||||||||||||
Contribution of capital by noncontrolling interests
|
-
|
-
|
-
|
-
|
-
|
-
|
287,501
|
287,501
|
||||||||||||||||||||||||
Distribution of capital to noncontrolling interests
|
-
|
-
|
-
|
-
|
-
|
-
|
(43,546
|
)
|
(43,546
|
)
|
||||||||||||||||||||||
Reclassification of Partnership Operating Units
|
-
|
-
|
-
|
-
|
-
|
-
|
29
|
29
|
||||||||||||||||||||||||
Sale of noncontrolling interest in Parkway Properties Office Fund, L.P.
|
-
|
-
|
-
|
-
|
-
|
-
|
(26,650
|
)
|
(26,650
|
)
|
||||||||||||||||||||||
Balance at December 31, 2011
|
128,942
|
22
|
(220
|
)
|
517,309
|
(3,340
|
)
|
(271,104
|
)
|
258,428
|
630,037
|
|||||||||||||||||||||
Net loss
|
-
|
-
|
-
|
-
|
-
|
(39,395
|
)
|
(3,586
|
)
|
(42,981
|
)
|
|||||||||||||||||||||
Change in fair value of interest rate swaps
|
-
|
-
|
-
|
-
|
(1,085
|
)
|
-
|
(2,279
|
)
|
(3,364
|
)
|
|||||||||||||||||||||
Common dividends declared - $0.375 per share
|
-
|
-
|
-
|
-
|
-
|
(14,570
|
)
|
-
|
(14,570
|
)
|
||||||||||||||||||||||
Preferred dividends declared - $2.00 per share
|
-
|
-
|
-
|
-
|
-
|
(10,843
|
)
|
-
|
(10,843
|
)
|
||||||||||||||||||||||
Convertible preferred dividends declared - $0.075 per share
|
-
|
-
|
-
|
-
|
-
|
(1,011
|
)
|
-
|
(1,011
|
)
|
||||||||||||||||||||||
Share-based compensation
|
-
|
-
|
-
|
432
|
-
|
-
|
-
|
432
|
||||||||||||||||||||||||
26,047 shares issued in lieu of Directors' fees
|
-
|
-
|
-
|
263
|
-
|
-
|
-
|
263
|
||||||||||||||||||||||||
Issuance of 18,399 shares issued pursuant to TPG
Management Services Agreement
|
-
|
-
|
-
|
225
|
-
|
-
|
-
|
225
|
||||||||||||||||||||||||
Issuance of 18,951,700 shares of common stock
|
-
|
19
|
-
|
229,824
|
-
|
-
|
-
|
229,843
|
||||||||||||||||||||||||
Conversion of 13,484,444 convertible preferred shares to
common stock
|
-
|
13
|
-
|
141,160
|
-
|
-
|
-
|
141,173
|
||||||||||||||||||||||||
12,169 shares withheld to satisfy withholding obligation in
connection with the vesting of restricted stock
|
-
|
-
|
-
|
(173
|
)
|
-
|
-
|
-
|
(173
|
)
|
||||||||||||||||||||||
Contribution of 3,721 shares of common stock to deferred
compensation plan
|
-
|
-
|
(38
|
)
|
-
|
-
|
-
|
-
|
(38
|
)
|
||||||||||||||||||||||
Distribution of 12,089 shares of common stock from deferred
compensation plan
|
-
|
-
|
258
|
-
|
-
|
-
|
-
|
258
|
||||||||||||||||||||||||
Issuance of 1.8 million operating partnership units
|
-
|
-
|
-
|
-
|
-
|
-
|
18,216
|
18,216
|
||||||||||||||||||||||||
Issuance of 1.8 million shares of common stock upon
redemption of operating partnership units
|
-
|
2
|
-
|
18,214
|
-
|
(890
|
)
|
(17,326
|
)
|
-
|
||||||||||||||||||||||
Contribution of capital by noncontrolling interests
|
-
|
-
|
-
|
-
|
-
|
-
|
17,447
|
17,447
|
||||||||||||||||||||||||
Distribution of capital to noncontrolling interests
|
-
|
-
|
-
|
-
|
-
|
-
|
(729
|
)
|
(729
|
)
|
||||||||||||||||||||||
Sale of noncontrolling interest in Parkway Properties Office
Fund, L.P.
|
-
|
-
|
-
|
-
|
-
|
-
|
(8,179
|
)
|
(8,179
|
)
|
||||||||||||||||||||||
Balance at December 31, 2012
|
$
|
128,942
|
$
|
56
|
$
|
-
|
$
|
907,254
|
$
|
(4,425
|
)
|
$
|
(337,813
|
)
|
$
|
261,992
|
$
|
956,006
|
|
Year Ended December 31
|
|||||||||||
|
2012
|
2011
|
2010
|
|||||||||
Operating activities
|
||||||||||||
Net loss
|
$
|
(42,981
|
)
|
$
|
(212,003
|
)
|
$
|
(13,407
|
)
|
|||
Adjustments to reconcile net loss to cash provided by operating
activities:
|
||||||||||||
Depreciation and amortization
|
81,537
|
56,522
|
28,496
|
|||||||||
Depreciation and amortization-discontinued operations
|
933
|
54,628
|
63,815
|
|||||||||
Amortization of above (below) market leases
|
5,137
|
2,955
|
(163
|
)
|
||||||||
Amortization of above (below) market leases-discontinued operations
|
(38
|
)
|
(1,865
|
)
|
(403
|
)
|
||||||
Amortization of loan costs
|
1,989
|
1,623
|
1,092
|
|||||||||
Amortization of loan costs-discontinued operations
|
74
|
521
|
621
|
|||||||||
Amortization of mortgage loan discount
|
-
|
(400
|
)
|
(710
|
)
|
|||||||
Share-based compensation expense
|
432
|
1,341
|
1,319
|
|||||||||
Deferred income tax benefit
|
(1,030
|
)
|
(430
|
)
|
-
|
|||||||
Operating distributions from unconsolidated joint ventures
|
-
|
507
|
-
|
|||||||||
Gain on sale of real estate investments
|
(13,487
|
)
|
(18,568
|
)
|
(8,558
|
)
|
||||||
Non-cash impairment loss on real estate
|
9,200
|
6,420
|
-
|
|||||||||
Non-cash impairment loss on real estate-discontinued operations
|
-
|
189,940
|
4,120
|
|||||||||
Non-cash impairment loss on mortgage loan receivable
|
-
|
9,235
|
-
|
|||||||||
Non-cash gain on mortgage loan payable-discontinued operations
|
-
|
(8,601
|
)
|
-
|
||||||||
Non-cash impairment loss on management contracts and goodwill
|
41,967
|
-
|
-
|
|||||||||
Equity in earnings of unconsolidated joint ventures
|
-
|
(57
|
)
|
(326
|
)
|
|||||||
Equity in loss of unconsolidated joint ventures-discontinued operations
|
19
|
-
|
-
|
|||||||||
Change in fair value of contingent consideration
|
216
|
(13,000
|
)
|
-
|
||||||||
Increase in deferred leasing costs
|
(11,885
|
)
|
(16,947
|
)
|
(13,425
|
)
|
||||||
Changes in operating assets and liabilities:
|
||||||||||||
Change in receivables and other assets
|
(1,854
|
)
|
(19,737
|
)
|
(4,194
|
)
|
||||||
Change in accounts payable and other liabilities
|
(8,656
|
)
|
3,443
|
9,782
|
||||||||
Cash provided by operating activities
|
61,573
|
35,527
|
68,059
|
|||||||||
|
||||||||||||
Investing activities
|
||||||||||||
Proceeds from mortgage loan receivable
|
2,000
|
-
|
-
|
|||||||||
Distributions from unconsolidated joint ventures
|
120
|
3,201
|
-
|
|||||||||
Investment in real estate
|
(692,911
|
)
|
(491,279
|
)
|
(36,498
|
)
|
||||||
Investment in other assets
|
-
|
(3,500
|
)
|
-
|
||||||||
Investment in management company
|
-
|
(32,400
|
)
|
-
|
||||||||
Proceeds from sale of real estate
|
127,867
|
200,193
|
4,758
|
|||||||||
Improvements to real estate
|
(25,621
|
)
|
(41,811
|
)
|
(36,335
|
)
|
||||||
Cash used in investing activities
|
(588,545
|
)
|
(365,596
|
)
|
(68,075
|
)
|
||||||
|
||||||||||||
Financing activities
|
||||||||||||
Principal payments on mortgage notes payable
|
(24,623
|
)
|
(106,567
|
)
|
(140,499
|
)
|
||||||
Proceeds from mortgage notes payable
|
73,500
|
222,013
|
70,000
|
|||||||||
Proceeds from bank borrowings
|
482,266
|
286,655
|
143,750
|
|||||||||
Payments on bank borrowings
|
(352,588
|
)
|
(265,172
|
)
|
(132,911
|
)
|
||||||
Debt financing costs
|
(3,552
|
)
|
(4,858
|
)
|
(1,004
|
)
|
||||||
Purchase of Company stock
|
(172
|
)
|
(397
|
)
|
(821
|
)
|
||||||
Dividends paid on common stock
|
(14,591
|
)
|
(6,552
|
)
|
(6,448
|
)
|
||||||
Dividends paid on convertible preferred stock
|
(1,011
|
)
|
-
|
-
|
||||||||
Dividends paid on preferred stock
|
(13,553
|
)
|
(9,529
|
)
|
(5,787
|
)
|
||||||
Contributions from noncontrolling interest partners
|
17,447
|
287,501
|
27,912
|
|||||||||
Distributions to noncontrolling interest partners
|
(729
|
)
|
(43,546
|
)
|
-
|
|||||||
Proceeds from stock offering, net of transaction costs
|
371,251
|
26,034
|
44,797
|
|||||||||
Cash provided by (used in) financing activities
|
533,645
|
385,582
|
(1,011
|
)
|
||||||||
|
||||||||||||
Change in cash and cash equivalents
|
6,673
|
55,513
|
(1,027
|
)
|
||||||||
|
||||||||||||
Cash and cash equivalents at beginning of year
|
75,183
|
19,670
|
20,697
|
|||||||||
|
||||||||||||
Cash and cash equivalents at end of year
|
$
|
81,856
|
$
|
75,183
|
$
|
19,670
|
|
|
December 31
|
December 31
|
||||||
Asset Category
|
Estimated Useful Life
|
2012
|
2011
|
||||||
Land
|
Non-depreciable
|
$
|
159,039
|
$
|
116,598
|
||||
Buildings and garages
|
40 years
|
1,369,493
|
801,619
|
||||||
Building improvements
|
7 to 40 years
|
65,328
|
53,909
|
||||||
Tenant improvements
|
Lesser of useful life or term of lease
|
168,706
|
111,934
|
||||||
|
|
$
|
1,762,566
|
$
|
1,084,060
|
|
Amount
|
|||
2013
|
$
|
(2,986
|
)
|
|
2014
|
(1,057
|
)
|
||
2015
|
(439
|
)
|
||
2016
|
(409
|
)
|
||
2017
|
(674
|
)
|
|
Amount
|
|||
2013
|
$
|
20,898
|
||
2014
|
16,201
|
|||
2015
|
13,656
|
|||
2016
|
11,530
|
|||
2017
|
7,850
|
|
Year Ended December 31
|
|||||||||||
|
2012
|
2011
|
2010
|
|||||||||
|
(in thousands, except per share data)
|
|||||||||||
Numerator:
|
||||||||||||
Basic and diluted net loss
|
||||||||||||
attributable to common stockholders
|
$
|
(51,249
|
)
|
$
|
(136,955
|
)
|
$
|
(8,943
|
)
|
|||
Denominator:
|
||||||||||||
Basic and diluted weighted average shares
|
31,542
|
21,497
|
21,421
|
|||||||||
Diluted net loss per share attributable to
|
||||||||||||
common stockholders
|
$
|
(1.62
|
)
|
$
|
(6.37
|
)
|
$
|
(0.42
|
)
|
|
Cost
|
|||
Market Location
|
(in thousands)
|
|||
Charlotte, NC
|
$
|
397,349
|
||
Houston, TX
|
123,750
|
|||
Phoenix, AZ
|
170,300
|
|||
Tampa, FL
|
69,591
|
|||
|
$
|
760,990
|
|
Amount
|
Weighted
Average Life
|
||||||
Land
|
$
|
43,600
|
N/
|
A
|
||||
Buildings
|
580,616
|
40
|
||||||
Tenant improvements
|
59,698
|
6
|
||||||
Lease commissions
|
21,207
|
6
|
||||||
Lease in place value
|
54,575
|
6
|
||||||
Above market leases
|
14,728
|
15
|
||||||
Below market leases
|
(18,979
|
)
|
6
|
|||||
Other
|
3,001
|
3
|
||||||
Mortgage assumed
|
(58,694
|
)
|
3
|
|
Year Ended
|
|||||||
|
December 31
|
|||||||
|
2012
|
2011
|
||||||
Revenues
|
$
|
274,698
|
$
|
229,930
|
||||
Net loss attributable to common stockholders
|
$
|
(60,544
|
)
|
$
|
(162,291
|
)
|
||
Basic net loss attributable to common stockholders
|
$
|
(1.91
|
)
|
$
|
(7.55
|
)
|
||
Diluted net loss attributable to common stockholders
|
$
|
(1.91
|
)
|
$
|
(7.55
|
)
|
2013
|
$
|
4,754
|
||
2014
|
452
|
|||
2015
|
-
|
|||
2016
|
32
|
|||
2017
|
-
|
|||
Thereafter
|
272
|
|||
Total
|
$
|
5,510
|
2013
|
$
|
315
|
||
2014
|
155
|
|||
2015
|
59
|
|||
2016
|
25
|
|||
2017
|
13
|
|||
Thereafter
|
2
|
|||
Total
|
$
|
569
|
2013
|
$
|
220,198
|
||
2014
|
205,401
|
|||
2015
|
187,702
|
|||
2016
|
159,381
|
|||
2017
|
124,827
|
|||
Thereafter
|
353,797
|
|||
Total
|
$
|
1,251,306
|
2013
|
$
|
266
|
||
2014
|
267
|
|||
2015
|
347
|
|||
2016
|
268
|
|||
2017
|
268
|
|||
Thereafter
|
14,923
|
|||
Total
|
$
|
16,339
|
|
|
Interest
|
|
Outstanding
|
||||||
Credit Facilities
|
Lender
|
Rate
|
Maturity
|
Balance
|
||||||
$10.0 Million Unsecured Working Capital Revolving Credit Facility (1)
|
PNC Bank
|
-%
|
|
03/29/16
|
$
|
-
|
||||
$215.0 Million Unsecured Revolving Credit Facility (1)
|
Wells-Fargo
|
1.8%
|
|
03/29/16
|
137,000
|
|||||
$125.0 Million Unsecured Term Loan (2)
|
Key Bank
|
2.2%
|
|
09/27/17
|
125,000
|
|||||
|
|
2.0%
|
|
|
$
|
262,000
|
(1)
|
The interest rate on the credit facilities is based on LIBOR plus 160 to 235 basis points, depending upon overall Company leverage as defined in the loan agreements for the Company's credit facility, with the current rate set at 160 basis points. Additionally, the Company pays fees on the unused portion of the credit facilities ranging between 25 and 35 basis points based upon usage of the aggregate commitment, with the current rate set at 25 basis points.
|
(2)
|
The interest rate on the term loan is based on LIBOR plus an applicable margin of 1.5% to 2.3% depending on overall Company leverage (with the current rate set at 1.5%). On September 28, 2012, the Company executed two floating-to-fixed interest rate swaps totaling $125 million, locking LIBOR at 0.7% for five years which is effective October 1, 2012.
|
|
|
||||||||||||||||||||
|
|
Note Balance
|
|||||||||||||||||||
|
Fixed
|
Maturity
|
Monthly
|
December 31
|
|||||||||||||||||
Office Property
|
Rate
|
Date
|
Payment
|
2012
|
2011
|
||||||||||||||||
Wholly-Owned
|
|
||||||||||||||||||||
Bank of America Plaza
|
|
7.1%
|
|
05/10/12
|
$
|
-
|
$
|
-
|
$
|
16,373
|
|||||||||||
Westshore Corporate Center (4)
|
|
2.5%
|
|
05/01/15
|
88
|
15,646
|
-
|
||||||||||||||
Teachers Insurance and Annuity Associations (5 properties)
|
|
6.2%
|
|
01/01/16
|
565
|
73,584
|
75,724
|
||||||||||||||
NASCAR Plaza (1)(2)(3)
|
|
3.4%
|
|
03/30/16
|
121
|
42,977
|
-
|
||||||||||||||
John Hancock Facility (2 properties)
|
|
7.6%
|
|
06/01/16
|
130
|
17,852
|
18,055
|
||||||||||||||
111 East Wacker, LLC (6)
|
|
6.3%
|
|
07/11/16
|
-
|
-
|
147,873
|
||||||||||||||
Capital City Plaza
|
|
7.3%
|
|
03/05/17
|
253
|
33,489
|
34,073
|
||||||||||||||
Morgan Keegan Tower
|
|
7.6%
|
|
10/01/19
|
163
|
10,419
|
11,539
|
||||||||||||||
Citrus Center
|
|
6.3%
|
|
06/01/20
|
153
|
22,034
|
22,438
|
||||||||||||||
Stein Mart
|
|
6.5%
|
|
08/01/20
|
81
|
11,517
|
11,733
|
||||||||||||||
Pinnacle at Jackson Place – Subordinate NMTC Loan (6)
|
|
3.0%
|
|
12/27/47
|
-
|
-
|
6,000
|
||||||||||||||
Pinnacle at Jackson Place – Sr NMTC Loan (6)
|
|
5.8%
|
|
12/27/47
|
-
|
-
|
23,501
|
||||||||||||||
Total Wholly-Owned
|
|
1,554
|
227,518
|
367,309
|
|||||||||||||||||
|
|
||||||||||||||||||||
Consolidated Joint Ventures
|
|
||||||||||||||||||||
|
|
||||||||||||||||||||
Parkway Properties Office Fund, LP:
|
|
||||||||||||||||||||
Renaissance Center (6)
|
|
5.5%
|
|
06/01/12
|
-
|
-
|
15,704
|
||||||||||||||
100 Ashford Center/Peachtree Ridge (6)
|
|
5.6%
|
|
01/08/16
|
-
|
-
|
29,824
|
||||||||||||||
Overlook II (6)
|
|
5.6%
|
|
03/01/17
|
-
|
-
|
31,500
|
||||||||||||||
Total Fund I
|
|
-
|
-
|
77,028
|
|||||||||||||||||
|
|
||||||||||||||||||||
Parkway Properties Office Fund II, LP
|
|
||||||||||||||||||||
Cypress Center I-III (1)
|
|
4.1%
|
|
05/18/16
|
42
|
12,088
|
12,088
|
||||||||||||||
3344 Peachtree
|
|
5.3%
|
|
10/01/17
|
485
|
84,733
|
86,064
|
||||||||||||||
Bank of America Center (1)
|
|
4.7%
|
|
05/18/18
|
138
|
33,875
|
33,875
|
||||||||||||||
Hayden Ferry Lakeside I (1)
|
|
4.5%
|
|
07/25/18
|
85
|
22,000
|
22,000
|
||||||||||||||
Hayden Ferry Lakeside II (1)(5)
|
|
5.0%
|
|
07/25/18
|
421
|
48,125
|
-
|
||||||||||||||
The Pointe
|
|
4.0%
|
|
02/10/19
|
79
|
23,500
|
-
|
||||||||||||||
245 Riverside (1)
|
|
5.2%
|
|
03/31/19
|
42
|
9,250
|
9,250
|
||||||||||||||
Corporate Center Four at International Plaza (1)
|
|
5.4%
|
|
04/08/19
|
104
|
22,500
|
22,500
|
||||||||||||||
Two Ravinia (1)
|
|
5.0%
|
|
05/20/19
|
95
|
22,100
|
22,100
|
||||||||||||||
Two Liberty Place
|
|
5.2%
|
|
06/10/19
|
391
|
90,200
|
90,200
|
||||||||||||||
Carmel Crossing
|
|
5.5%
|
|
03/10/20
|
46
|
10,000
|
10,000
|
||||||||||||||
Total Fund II
|
|
1,928
|
378,371
|
308,077
|
|||||||||||||||||
|
|
||||||||||||||||||||
Total Mortgage Notes Payable
|
|
$
|
3,482
|
$
|
605,889
|
$
|
752,414
|
(1)
|
The mortgage loans secured by these properties have variable interest rates that have been fixed by interest rate swap agreements.
|
(2)
|
Effective December 31, 2012 the Company assumed the mortgage secured by NASCAR Plaza and also the swap associated with this mortgage. The notional amount of the swap is $30 million which fixes LIBOR at 2.3%, which resulted in an all-in interest rate of 3.4%. The interest rate swap matures on February 1, 2016.
|
(3)
|
The Company assumed the existing loan on NASCAR Plaza upon acquisition in December 2012. The note bears interest at a stated interest rate of 4.7% and has been marked-to-market for GAAP purposes.
|
(4)
|
The Company assumed the existing loan on the Westshore Corporate Center upon acquisition in November 2012. The note bears interest at a stated rate of 5.8% and has been marked-to-market for GAAP purposes.
|
(5)
|
The Hayden Ferry II mortgage provides for quarterly payments of $625,000 through February 2015 with payments based on a 25 year amortization thereafter until maturity. Additionally, the mortgage bears interest at LIBOR plus the applicable spread which ranges between 250 and 350 basis points. Fund II entered into an interest rate swap that fixed the LIBOR rate associated with this loan at 1.5% through January 25, 2018. This loan is cross-defaulted with Hayden Ferry I.
|
(6)
|
For balance sheet purposes, the Company has reclassified these mortgages totaling $254.4 million to Liabilities Related to Assets Held for Sale at December 31, 2011.
|
|
Total
|
Debt
|
Debt
|
|||||||||
|
Mortgage
|
Balloon
|
Principal
|
|||||||||
|
Maturities
|
Payments
|
Amortization
|
|||||||||
2013
|
$
|
9,674
|
$
|
-
|
$
|
9,674
|
||||||
2014
|
10,848
|
-
|
10,848
|
|||||||||
2015
|
25,407
|
14,051
|
11,356
|
|||||||||
2016
|
147,097
|
137,776
|
9,321
|
|||||||||
2017
|
116,439
|
107,907
|
8,532
|
|||||||||
2018
|
98,052
|
91,550
|
6,502
|
|||||||||
Thereafter
|
198,372
|
194,317
|
4,055
|
|||||||||
|
$
|
605,889
|
$
|
545,601
|
$
|
60,288
|
|
|
|
|
Fair Value
|
|||||||||||||||
|
|
|
|
Liability
|
|||||||||||||||
Type of
|
Balance Sheet
|
Notional
|
Maturity
|
|
Fixed
|
December 31
|
|||||||||||||
Hedge
|
Location
|
Amount
|
Date
|
Reference Rate
|
Rate
|
2012
|
2011
|
||||||||||||
Swap
|
Accounts payable
and other liabilities
|
$
|
12,088
|
11/18/15
|
1-month LIBOR
|
4.1%
|
|
$
|
(582)
|
|
$
|
(581)
|
|
||||||
Swap
|
Accounts payable
and other liabilities
|
$
|
30,000
|
02/01/16
|
1-month LIBOR
|
2.3%
|
|
(1,787)
|
|
-
|
|||||||||
Swap
|
Accounts payable
and other liabilities
|
$
|
50,000
|
09/28/17
|
1-month LIBOR
|
2.2%
|
|
(43)
|
|
-
|
|||||||||
Swap
|
Accounts payable
and other liabilities
|
$
|
75,000
|
09/28/17
|
1-month LIBOR
|
2.2%
|
|
(65)
|
|
-
|
|||||||||
Swap
|
Accounts payable
and other liabilities
|
$
|
33,875
|
11/18/17
|
1-month LIBOR
|
4.7%
|
|
(3,312)
|
|
(2,862)
|
|
||||||||
Swap
|
Accounts payable
and other liabilities
|
$
|
22,000
|
01/25/18
|
1-month LIBOR
|
4.5%
|
|
(1,923)
|
|
(1,548)
|
|
||||||||
Swap
|
Accounts payable
and other liabilities
|
$
|
48,125
|
01/25/18
|
1-month LIBOR
|
5.0%
|
|
(1,581)
|
|
-
|
|||||||||
Swap
|
Accounts payable
and other liabilities
|
$
|
9,250
|
09/30/18
|
1-month LIBOR
|
5.3%
|
|
(1,218)
|
|
(1,083)
|
|
||||||||
Swap
|
Accounts payable
and other liabilities
|
$
|
22,500
|
10/08/18
|
1-month LIBOR
|
5.4%
|
|
(3,135)
|
|
(2,826)
|
|
||||||||
Swap
|
Accounts payable
and other liabilities
|
$
|
22,100
|
11/18/18
|
1-month LIBOR
|
5.0%
|
|
(2,639)
|
|
(2,234)
|
|
||||||||
|
|
|
|
$
|
(16,285)
|
|
$
|
(11,134)
|
|
|
Parkway's
|
|
Square Feet
|
|||
Joint Venture Entity and Property Name
|
|
Location
|
|
Ownership %
|
|
(In thousands)
|
Fund II
|
|
|
|
|
|
|
Hayden Ferry Lakeside I
|
|
Phoenix, AZ
|
|
30.0%
|
|
203
|
Hayden Ferry Lakeside II
|
|
Phoenix, AZ
|
|
30.0%
|
|
300
|
Hayden Ferry Lakeside III, IV and V
|
|
Phoenix, AZ
|
|
30.0%
|
|
21
|
245 Riverside
|
|
Jacksonville, FL
|
|
30.0%
|
|
136
|
Bank of America Center
|
|
Orlando, FL
|
|
30.0%
|
|
421
|
Corporate Center Four at International Plaza
|
|
Tampa, FL
|
|
30.0%
|
|
250
|
Cypress Center I - III
|
|
Tampa, FL
|
|
30.0%
|
|
286
|
The Pointe
|
|
Tampa, FL
|
|
30.0%
|
|
252
|
Lakewood II
|
|
Atlanta, GA
|
|
30.0%
|
|
124
|
3344 Peachtree
|
|
Atlanta, GA
|
|
33.0%
|
|
485
|
Two Ravinia
|
|
Atlanta, GA
|
|
30.0%
|
|
438
|
Carmel Crossing
|
|
Charlotte, NC
|
|
30.0%
|
|
326
|
Two Liberty Place
|
|
Philadelphia, PA
|
|
19.0%
|
|
941
|
Total Fund II
|
|
|
|
27.9%
|
|
4,183
|
Office Property
|
Location
|
Square
Feet
|
Date of
Sale
|
Net Sales
Price
|
Net
Book
Value
of
Real
Estate
|
Gain
on
Sale
|
Impairment
Loss
|
|||||||||||||||
One Park Ten
|
Houston, TX
|
163
|
04/15/2010
|
$
|
14,924
|
$
|
6,406
|
$
|
8,518
|
$
|
-
|
|||||||||||
2010 Dispositions
|
|
163
|
|
$
|
14,924
|
$
|
6,406
|
$
|
8,518
|
$
|
-
|
|||||||||||
|
|
|
-
|
|||||||||||||||||||
233 North Michigan
|
Chicago, IL
|
1,070
|
05/11/2011
|
$
|
156,546
|
$
|
152,254
|
$
|
4,292
|
$
|
-
|
|||||||||||
Greenbrier I & II
|
Hampton Roads, VA
|
172
|
07/19/2011
|
16,275
|
15,070
|
1,205
|
-
|
|||||||||||||||
Glen Forest
|
Richmond, VA
|
81
|
08/16/2011
|
8,950
|
7,880
|
1,070
|
-
|
|||||||||||||||
Tower at 1301 Gervais (1)
|
Columbia, SC
|
298
|
09/08/2011
|
18,421
|
18,421
|
-
|
6,147
|
|||||||||||||||
Wells Fargo
|
Houston, TX
|
134
|
12/09/2011
|
-
|
-
|
-
|
11,561
|
|||||||||||||||
Fund I Assets
|
Various
|
1,956
|
12/31/2011
|
255,725
|
244,467
|
11,258
|
68,513
|
|||||||||||||||
2011 Dispositions
|
|
3,711
|
|
$
|
455,917
|
$
|
438,092
|
$
|
17,825
|
$
|
86,221
|
|||||||||||
|
|
|
||||||||||||||||||||
Falls Pointe
|
Atlanta, GA
|
107
|
01/06/2012
|
$
|
5,824
|
$
|
4,467
|
$
|
1,357
|
$
|
-
|
|||||||||||
111 East Wacker
|
Chicago, IL
|
1,013
|
01/09/2012
|
153,240
|
153,237
|
3
|
19,050
|
|||||||||||||||
Renaissance Center
|
Memphis, TN
|
189
|
03/01/2012
|
27,661
|
24,629
|
3,032
|
9,200
|
|||||||||||||||
Non-Core Assets (2)
|
Various
|
1,932
|
Various
|
125,486
|
122,157
|
3,329
|
51,889
|
|||||||||||||||
Overlook II
|
Atlanta, GA
|
260
|
04/30/2012
|
29,467
|
28,689
|
778
|
10,500
|
|||||||||||||||
Wink
|
New Orleans, LA
|
32
|
06/08/2012
|
705
|
803
|
(98
|
)
|
-
|
||||||||||||||
Ashford Center/
Peachtree Ridge
|
Atlanta, GA
|
321
|
07/01/2012
|
29,440
|
28,148
|
1,292
|
17,200
|
|||||||||||||||
Sugar Grove
|
Houston, TX
|
124
|
10/23/2012
|
10,303
|
7,057
|
3,246
|
-
|
|||||||||||||||
2012 Dispositions
|
|
3,978
|
|
$
|
382,126
|
$
|
369,187
|
$
|
12,939
|
$
|
107,839
|
|||||||||||
(1)
|
During 2010 and 2011, the Company recognized non-cash impairment losses on this property of $3.4 million and $2.7 million, respectively.
|
|||||||||||||||||||||
(2)
|
During 2010 and 2011, the Company recognized non-cash impairment losses associated with these properties of $640,000 and $51.2 million, respectively.
|
|
Year Ended December 31
|
|||||||||||
|
2012
|
2011
|
2010
|
|||||||||
Statement of Operations:
|
||||||||||||
Revenues
|
||||||||||||
Income from office and parking properties
|
$
|
13,752
|
$
|
135,964
|
$
|
162,057
|
||||||
|
13,752
|
135,964
|
162,057
|
|||||||||
Expenses
|
||||||||||||
Office and parking properties:
|
||||||||||||
Operating expenses
|
6,525
|
61,424
|
69,930
|
|||||||||
Management company expense
|
350
|
288
|
380
|
|||||||||
Interest expense
|
5,199
|
29,794
|
34,693
|
|||||||||
Gain on extinguishment of debt
|
(1,494
|
)
|
(7,635
|
)
|
-
|
|||||||
Non-cash expense on interest rate swap
|
(215
|
)
|
2,338
|
-
|
||||||||
Depreciation and amortization
|
933
|
54,628
|
63,815
|
|||||||||
Impairment loss
|
-
|
189,940
|
4,120
|
|||||||||
|
11,298
|
330,777
|
172,938
|
|||||||||
|
||||||||||||
Income (loss) from discontinued operations
|
2,454
|
(194,813
|
)
|
(10,881
|
)
|
|||||||
Gain on sale of real estate from discontinued operations
|
12,939
|
17,825
|
8,518
|
|||||||||
Total discontinued operations per Statement of Operations
|
15,393
|
(176,988
|
)
|
(2,363
|
)
|
|||||||
Net income (loss) attributable to noncontrolling interest from discontinued operations
|
(4,184
|
)
|
75,836
|
7,221
|
||||||||
Total discontinued operations – Parkway's Share
|
$
|
11,209
|
$
|
(101,152
|
)
|
$
|
4,858
|
|
2012
|
2011
|
2010
|
|||||||||
|
Estimate
|
Actual
|
Actual
|
|||||||||
GAAP net loss
|
$
|
(39,395
|
)
|
$
|
(126,903
|
)
|
$
|
(2,618
|
)
|
|||
Less: Taxable REIT subsidiary GAAP net income (loss)
|
46,765
|
(9,248
|
)
|
-
|
||||||||
GAAP net income (loss) from REIT operations (1)
|
7,370
|
(136,151
|
)
|
(2,618
|
)
|
|||||||
GAAP to tax adjustments:
|
||||||||||||
Depreciation and amortization
|
11,035
|
13,969
|
12,784
|
|||||||||
Gains and losses from capital transactions
|
(109,444
|
)
|
53,699
|
(108
|
)
|
|||||||
Share-based compensation expense
|
420
|
1,341
|
1,319
|
|||||||||
Deferred compensation distributions
|
(224
|
)
|
(1,902
|
)
|
(687
|
)
|
||||||
Amortization of mortgage loan discount
|
30
|
(335
|
)
|
(772
|
)
|
|||||||
Allowance for doubtful accounts
|
(792
|
)
|
(761
|
)
|
282
|
|||||||
Vesting of restricted shares and dividends
|
(274
|
)
|
(1,175
|
)
|
(4,521
|
)
|
||||||
Deferred revenue
|
(578
|
)
|
(2,525
|
)
|
3,242
|
|||||||
Capitalizable acquisition costs
|
2,078
|
11,213
|
240
|
|||||||||
Straight line rent
|
(2,815
|
)
|
(2,169
|
)
|
(142
|
)
|
||||||
Interest expense
|
-
|
2,338
|
-
|
|||||||||
Nontaxable dividend income
|
(3,346
|
)
|
(1,986
|
)
|
-
|
|||||||
Other differences
|
215
|
192
|
(19
|
)
|
||||||||
Taxable income (loss) before adjustments
|
(96,325
|
)
|
(64,252
|
)
|
9,000
|
|||||||
Less: NOL carry forward
|
-
|
-
|
-
|
|||||||||
Adjusted taxable income subject to 90% dividend requirement
|
$
|
-
|
$
|
-
|
$
|
9,000
|
(1)
|
GAAP net income (loss) from REIT operations is net of amounts attributable to noncontrolling interests.
|
|
Year Ended December 31
|
|||||||||||
|
2012
|
2011
|
2010
|
|||||||||
Current:
|
Estimate
|
Actual
|
Actual
|
|||||||||
Federal
|
$
|
914
|
$
|
420
|
$
|
1
|
||||||
State
|
202
|
66
|
1
|
|||||||||
Total Current
|
1,116
|
486
|
2
|
|||||||||
|
||||||||||||
Deferred:
|
||||||||||||
Federal
|
(722
|
)
|
(363
|
)
|
-
|
|||||||
State
|
(133
|
)
|
(67
|
)
|
-
|
|||||||
Total Deferred
|
(855
|
)
|
(430
|
)
|
-
|
|||||||
Total income tax expense
|
$
|
261
|
$
|
56
|
$
|
2
|
|
2012
|
2011
|
||||||||||||||
|
Amount
|
Percentage
|
Amount
|
Percentage
|
||||||||||||
Tax at U.S. statutory rates on consolidated income(loss) subject to tax
|
$
|
150
|
34.0
|
%
|
$
|
4,268
|
34.0
|
%
|
||||||||
State income tax, net of federal tax benefit
|
40
|
9.0
|
%
|
-
|
0.0
|
%
|
||||||||||
Effect of permanent differences
|
37
|
8.5
|
%
|
(3,310
|
)
|
-26.3
|
%
|
|||||||||
Excess tax basis of capitalizable transaction costs
|
-
|
0.0
|
%
|
(902
|
)
|
-7.2
|
%
|
|||||||||
Other
|
34
|
7.4
|
%
|
-
|
0.0
|
%
|
||||||||||
Total income tax expense (benefit)
|
$
|
261
|
58.9
|
%
|
$
|
56
|
0.5
|
%
|
|
2012
|
2011
|
2010
|
|||||||||
|
Estimate
|
Actual
|
Actual
|
|||||||||
Cash dividends paid
|
$
|
26,306
|
$
|
16,472
|
$
|
13,197
|
||||||
Less: Dividends on deferred compensation plan shares
|
(3
|
)
|
(3
|
)
|
(17
|
)
|
||||||
Less: Dividends absorbed by current earnings and profits
|
-
|
-
|
(4,035
|
)
|
||||||||
Less: Return of capital
|
(26,303
|
)
|
(16,469
|
)
|
(145
|
)
|
||||||
Dividends paid deduction
|
$
|
-
|
$
|
-
|
$
|
9,000
|
|
2012
|
2011
|
2010
|
|||||||||||||||||||||
|
Amount
|
Percentage
|
Amount
|
Percentage
|
Amount
|
Percentage
|
||||||||||||||||||
Ordinary income
|
$
|
0.000
|
0.0
|
%
|
$
|
0.00
|
0.0
|
%
|
$
|
0.23
|
76.7
|
%
|
||||||||||||
Unrecaptured Section 1250 gain
|
0.000
|
0.0
|
%
|
0.00
|
0.0
|
%
|
0.06
|
20.0
|
%
|
|||||||||||||||
Return of capital
|
0.375
|
100.0
|
%
|
0.30
|
100.0
|
%
|
0.01
|
3.3
|
%
|
|||||||||||||||
|
$
|
0.375
|
100.0
|
%
|
$
|
0.30
|
100.0
|
%
|
$
|
0.30
|
100.0
|
%
|
|
Threshold
|
Target
|
Maximum
|
Absolute Return Goal
|
10%
|
12%
|
14%
|
Relative Return Goal
|
RMS + 100 bps
|
RMS + 200 bps
|
RMS + 300 bps
|
|
Weighted
|
Deferred
|
Weighted
|
|||||||||||||
|
Restricted
|
Average
|
Incentive
|
Average
|
||||||||||||
|
Shares
|
Price
|
Share Units
|
Price
|
||||||||||||
Outstanding at December 31, 2009
|
308,975
|
$
|
29.94
|
18,055
|
$
|
34.08
|
||||||||||
Issued
|
345,120
|
7.30
|
3,805
|
14.83
|
||||||||||||
Vested
|
(152,941
|
)
|
33.06
|
(4,355
|
)
|
47.78
|
||||||||||
Forfeited
|
(21,224
|
)
|
26.69
|
(1,865
|
)
|
32.99
|
||||||||||
Outstanding at December 31, 2010
|
479,930
|
12.81
|
15,640
|
25.71
|
||||||||||||
Issued
|
235,168
|
10.31
|
20,435
|
23.97
|
||||||||||||
Vested
|
(99,202
|
)
|
23.99
|
(4,930
|
)
|
45.11
|
||||||||||
Forfeited
|
(161,826
|
)
|
10.68
|
(3,775
|
)
|
20.38
|
||||||||||
Outstanding at December 31, 2011
|
454,070
|
9.83
|
27,370
|
21.65
|
||||||||||||
Issued
|
21,900
|
10.15
|
-
|
-
|
||||||||||||
Vested
|
(56,013
|
)
|
21.55
|
(3,030
|
)
|
14.93
|
||||||||||
Forfeited
|
(138,724
|
)
|
8.18
|
(6,580
|
)
|
14.06
|
||||||||||
Outstanding at December 31, 2012
|
281,233
|
$
|
8.34
|
17,760
|
$
|
25.61
|
|
Time
Based
Awards
|
Market
Condition
Awards (1)
|
Total
Restricted
Shares
|
Deferred
Incentive
Share Units
|
2013
|
14,052
|
117,014
|
131,066
|
-
|
2014
|
14,048
|
117,017
|
131,065
|
1,490
|
2015
|
11,781
|
-
|
11,781
|
16,270
|
2016
|
7,321
|
-
|
7,321
|
-
|
|
47,202
|
234,031
|
281,233
|
17,760
|
(1)
|
The market condition restricted shares will vest in the years noted above subject to achievement of the market condition goals described.
|
|
1994 Stock
|
1991 Directors
|
2001 Directors
|
|||||||||||||||||||||
|
Option Plan
|
Stock Option Plan
|
Stock Option Plan
|
|||||||||||||||||||||
|
Weighted
|
Weighted
|
Weighted
|
|||||||||||||||||||||
|
Average
|
Average
|
Average
|
|||||||||||||||||||||
|
Shares
|
Price
|
Shares
|
Price
|
Shares
|
Price
|
||||||||||||||||||
Outstanding at December 31, 2009
|
86,280
|
$
|
31.46
|
-
|
$
|
-
|
12,500
|
$
|
41.63
|
|||||||||||||||
Forfeited
|
(56,319
|
)
|
30.28
|
-
|
-
|
(3,000
|
)
|
38.95
|
||||||||||||||||
Outstanding at December 31, 2010
|
29,961
|
33.69
|
-
|
-
|
9,500
|
42.47
|
||||||||||||||||||
Forfeited
|
(27,508
|
)
|
33.51
|
-
|
-
|
(6,500
|
)
|
44.10
|
||||||||||||||||
Outstanding at December 31, 2011
|
2,453
|
35.70
|
-
|
-
|
3,000
|
38.95
|
||||||||||||||||||
Forfeited
|
(2,453
|
)
|
35.70
|
-
|
-
|
(3,000
|
)
|
38.95
|
||||||||||||||||
Vested and Exercisable at December 31, 2012
|
-
|
$
|
-
|
-
|
$
|
-
|
-
|
$
|
-
|
|
Year Ended December 31
|
|||||||||||
|
2012
|
2011
|
2010
|
|||||||||
|
(In thousands)
|
|||||||||||
Supplemental cash flow information:
|
||||||||||||
Interest paid, net of amount capitalized
|
$
|
36,378
|
$
|
60,123
|
$
|
53,352
|
||||||
Cash paid for income taxes
|
1,275
|
705
|
117
|
|||||||||
Supplemental schedule of non-cash investing
|
||||||||||||
and financing activity:
|
||||||||||||
Mortgage notes payable transferred
|
||||||||||||
to purchaser
|
(254,095
|
)
|
(215,285
|
)
|
(8,666
|
)
|
||||||
Mortgage note payable and interest payable transferred in deed in lieu of foreclosure
|
-
|
(8,601
|
)
|
-
|
||||||||
Mortgage loan issued to purchaser
|
-
|
-
|
(1,500
|
)
|
||||||||
Contingent consideration related to the
|
||||||||||||
contribution of the Management Company
|
-
|
18,000
|
-
|
|||||||||
Restricted shares and deferred incentive share
|
||||||||||||
units issued (forfeited)
|
(1,105
|
)
|
1,110
|
1,949
|
||||||||
Mortgage loan assumed in purchase
|
58,694
|
87,225
|
-
|
|||||||||
Shares issued in lieu of Directors' fees
|
263
|
319
|
285
|
|||||||||
Operating partnership units converted to common stock
|
18,216
|
-
|
-
|
|||||||||
Shares issued pursuant to TPG Management Services Agreement
|
225
|
-
|
-
|
|
December 31
|
|||||||
|
2012
|
2011
|
||||||
|
(In thousands)
|
|||||||
|
||||||||
Rents and fees receivable
|
$
|
3,915
|
$
|
5,001
|
||||
Allowance for doubtful accounts
|
(1,606
|
)
|
|
(1,812
|
)
|
|||
Straight-line rent receivable
|
34,205
|
|
19,183
|
|||||
Other receivables
|
2,755
|
|
14,905
|
|||||
Lease costs (net of accumulated amortization of
|
|
|||||||
$28,049 and $21,087, respectively)
|
62,978
|
|
41,518
|
|||||
Loan costs (net of accumulated amortization of
|
|
|||||||
$4,067 and $2,688, respectively)
|
7,183
|
|
5,160
|
|||||
Escrow and other deposits
|
7,606
|
|
16,975
|
|||||
Prepaid items
|
3,612
|
|
4,581
|
|||||
Investment in other assets
|
3,500
|
|
3,500
|
|||||
Other assets
|
543
|
|
416
|
|||||
|
$
|
124,691
|
$
|
109,427$
|
|
December 31
|
|||||||
|
2012
|
2011
|
||||||
|
(In thousands)
|
|||||||
|
||||||||
Lease in place value
|
$
|
117,383
|
$
|
65,213
|
||||
Accumulated amortization
|
(33,919
|
)
|
(20,380
|
)
|
||||
Above market lease value
|
43,094
|
29,225
|
||||||
Accumulated amortization
|
(10,544
|
)
|
(4,603
|
)
|
||||
Other intangibles
|
3,000
|
-
|
||||||
Accumulated amortization
|
(917
|
)
|
-
|
|||||
Goodwill-management company
|
-
|
26,173
|
||||||
|
$
|
118,097
|
$
|
95,628
|
|
December 31
|
|||||||
|
2012
|
2011
|
||||||
|
(In thousands)
|
|||||||
Office property payables:
|
||||||||
Accrued expenses and accounts payable
|
$
|
13,111
|
$
|
14,240
|
||||
Accrued property taxes
|
6,868
|
6,465
|
||||||
Prepaid rents
|
9,488
|
8,393
|
||||||
Deferred revenues
|
315
|
447
|
||||||
Security deposits
|
4,680
|
3,515
|
||||||
Below market lease value
|
27,745
|
9,009
|
||||||
Accumulated amortization – below market
|
||||||||
lease value
|
(5,355
|
)
|
(3,966
|
)
|
||||
Capital lease obligations
|
57
|
57
|
||||||
Corporate payables
|
1,930
|
1,136
|
||||||
Contingent consideration
|
-
|
18,000
|
||||||
Deferred tax liability non-current
|
1,959
|
14,344
|
||||||
Deferred compensation plan liability
|
-
|
278
|
||||||
Dividends payable
|
-
|
2,711
|
||||||
Accrued payroll
|
2,980
|
1,985
|
||||||
Fair value of interest rate swaps
|
16,285
|
11,134
|
||||||
Interest payable
|
2,653
|
2,593
|
||||||
|
$
|
82,716
|
$
|
90,341
|
|
As of December 31, 2012
|
As of December 31, 2011
|
||||||||||||||
|
Carrying
|
Fair
|
Carrying
|
Fair
|
||||||||||||
|
Amount
|
Value
|
Amount
|
Value
|
||||||||||||
|
(In thousands)
|
|||||||||||||||
Financial Assets:
|
||||||||||||||||
Cash and cash equivalents
|
$
|
81,856
|
$
|
81,856
|
$
|
75,183
|
$
|
75,183
|
||||||||
|
||||||||||||||||
Financial Liabilities:
|
||||||||||||||||
Mortgage notes payable
|
$
|
605,889
|
$
|
623,604
|
$
|
752,414
|
$
|
761,942
|
||||||||
Notes payable to banks
|
262,000
|
254,215
|
132,322
|
125,494
|
||||||||||||
Interest rate swap agreements
|
16,285
|
16,285
|
11,134
|
11,134
|
|
At or for the year ended December 31, 2012
|
|||||||||||
|
Office
|
Unallocated
|
||||||||||
|
Properties
|
and Other
|
Consolidated
|
|||||||||
|
(in thousands)
|
|||||||||||
|
||||||||||||
Income from office and parking properties (a)
|
$
|
206,739
|
$
|
-
|
$
|
206,739
|
||||||
Management company income
|
-
|
19,778
|
19,778
|
|||||||||
Property operating expenses (b)
|
(80,748
|
)
|
-
|
(80,748
|
)
|
|||||||
Depreciation and amortization
|
(81,537
|
)
|
-
|
(81,537
|
)
|
|||||||
Management company expenses
|
-
|
(17,237
|
)
|
(17,237
|
)
|
|||||||
Income tax expense
|
-
|
(261
|
)
|
(261
|
)
|
|||||||
General and administrative expenses
|
-
|
(16,420
|
)
|
(16,420
|
)
|
|||||||
Acquisition costs
|
(2,791
|
)
|
-
|
(2,791
|
)
|
|||||||
Interest and other income
|
-
|
272
|
272
|
|||||||||
Interest expense (c)
|
(31,394
|
)
|
(3,940
|
)
|
(35,334
|
)
|
||||||
Adjustment for noncontrolling interest-unit holders
|
-
|
269
|
269
|
|||||||||
Adjustment for noncontrolling interest-real estate partnerships
|
3,317
|
-
|
3,317
|
|||||||||
Income from discontinued operations
|
2,454
|
-
|
2,454
|
|||||||||
Impairment loss on real estate
|
(9,200
|
)
|
-
|
(9,200
|
)
|
|||||||
Impairment loss on management contracts and goodwill
|
-
|
(41,967
|
)
|
(41,967
|
)
|
|||||||
Gain on sale of real estate from discontinued operations
|
12,939
|
-
|
12,939
|
|||||||||
Gain on sale of real estate and other assets
|
48
|
500
|
548
|
|||||||||
Change in fair value of contingent consideration
|
-
|
(216
|
)
|
(216
|
)
|
|||||||
Dividends on preferred stock
|
-
|
(10,843
|
)
|
(10,843
|
)
|
|||||||
Dividends on convertible preferred stock
|
-
|
(1,011
|
)
|
(1,011
|
)
|
|||||||
Net income (loss) attributable to common stockholders
|
$ |
19,827
|
$ |
(71,076
|
)
|
$ |
(51,249
|
)
|
||||
|
||||||||||||
Total assets
|
$
|
1,832,493
|
$
|
74,118
|
$
|
1,906,611
|
||||||
|
||||||||||||
Office and parking properties
|
$
|
1,562,717
|
$
|
-
|
$
|
1,562,717
|
||||||
|
||||||||||||
Capital expenditures (d)
|
$
|
37,506
|
$
|
-
|
$
|
37,506
|
|
(a) Included in income from office and parking properties are rental revenues, customer reimbursements, parking income and other income.
|
|
(b) Included in property operating expenses are real estate taxes, insurance, contract services, repairs and maintenance and property operating expenses.
|
|
(c) Interest expense for office properties represents interest expense on property secured mortgage debt. It does not include interest expense on the Company's unsecured credit facility, which is included in "Unallocated and Other".
|
|
(d) Capital expenditures include building improvements, tenant improvements and leasing costs.
|
|
At or for the year ended December 31, 2011
|
|||||||||||
|
Office
|
Unallocated
|
||||||||||
|
Properties
|
and Other
|
Consolidated
|
|||||||||
|
(in thousands)
|
|||||||||||
|
||||||||||||
Income from office and parking properties (a)
|
$
|
147,290
|
$
|
-
|
$
|
147,290
|
||||||
Management company income
|
-
|
16,896
|
16,896
|
|||||||||
Property operating expenses (b)
|
(60,733
|
)
|
-
|
(60,733
|
)
|
|||||||
Depreciation and amortization
|
(56,522
|
)
|
-
|
(56,522
|
)
|
|||||||
Management company expenses
|
-
|
(13,337
|
)
|
(13,337
|
)
|
|||||||
Income tax expense
|
-
|
(56
|
)
|
(56
|
)
|
|||||||
General and administrative expenses
|
-
|
(18,805
|
)
|
(18,805
|
)
|
|||||||
Acquisition costs
|
(1,225
|
)
|
(15,994
|
)
|
(17,219
|
)
|
||||||
Interest and other income
|
-
|
938
|
938
|
|||||||||
Equity in earnings of unconsolidated joint ventures
|
57
|
-
|
57
|
|||||||||
Interest expense (c)
|
(24,888
|
)
|
(6,724
|
)
|
(31,612
|
)
|
||||||
Adjustment for noncontrolling interest – unit holders
|
-
|
(5
|
)
|
(5
|
)
|
|||||||
Adjustment for noncontrolling interest – real estate partnerships
|
85,105
|
-
|
85,105
|
|||||||||
Loss from discontinued operation
|
(194,813
|
)
|
-
|
(194,813
|
)
|
|||||||
Impairment loss on real estate
|
(6,420
|
)
|
-
|
(6,420
|
)
|
|||||||
Impairment loss on mortgage loan receivable
|
-
|
(9,235
|
)
|
(9,235
|
)
|
|||||||
Gain on sale of real estate from discontinued operations
|
17,825
|
-
|
17,825
|
|||||||||
Gain on sale of real estate
|
743
|
-
|
743
|
|||||||||
Change in fair value of contingent consideration
|
-
|
13,000
|
13,000
|
|||||||||
Dividends on preferred stock
|
-
|
(10,052
|
)
|
(10,052
|
)
|
|||||||
Net loss attributable to common stockholders
|
$ |
(93,581
|
)
|
$ |
(43,374
|
)
|
$ |
(136,955
|
)
|
|||
|
||||||||||||
Total assets
|
$
|
1,532,803
|
$
|
103,508
|
$
|
1,636,311
|
||||||
|
||||||||||||
Office and parking properties
|
$
|
921,937
|
$
|
-
|
$
|
921,937
|
||||||
|
||||||||||||
Assets held for sale
|
$
|
382,789
|
$
|
-
|
$
|
382,789
|
||||||
|
||||||||||||
Capital expenditures (d)
|
$
|
58,758
|
$
|
-
|
$
|
58,758
|
|
(a) Included in income from office and parking properties are rental revenues, customer reimbursements, parking income and other income.
|
|
(b) Included in property operating expenses are real estate taxes, insurance, contract services, repairs and maintenance and property operating expenses.
|
|
(c) Interest expense for office properties represents interest expense on property secured mortgage debt. It does not include interest expense on the Company's unsecured credit facility, which is included in "Unallocated and Other".
|
|
(d) Capital expenditures include building improvements, tenant improvements and leasing costs.
|
|
|
At or for the year ended December 31, 2010
|
|||||||||||
|
Office
|
Unallocated
|
||||||||||
|
Properties
|
and Other
|
Consolidated
|
|||||||||
|
(in thousands)
|
|||||||||||
|
||||||||||||
Income from office and parking properties (a)
|
$
|
93,548
|
$
|
-
|
$
|
93,548
|
||||||
Management company income
|
-
|
1,652
|
1,652
|
|||||||||
Property operating expenses (b)
|
(40,408
|
)
|
-
|
(40,408
|
)
|
|||||||
Depreciation and amortization
|
(28,496
|
)
|
-
|
(28,496
|
)
|
|||||||
Management company expenses
|
-
|
(2,756
|
)
|
(2,756
|
)
|
|||||||
Income tax expense
|
-
|
(2
|
)
|
(2
|
)
|
|||||||
General and administrative expenses
|
-
|
(15,318
|
)
|
(15,318
|
)
|
|||||||
Acquisition costs
|
(846
|
)
|
-
|
(846
|
)
|
|||||||
Interest and other income
|
-
|
1,487
|
1,487
|
|||||||||
Equity in earnings of unconsolidated joint ventures
|
326
|
-
|
326
|
|||||||||
Interest expense (c)
|
(14,255
|
)
|
(6,016
|
)
|
(20,271
|
)
|
||||||
Adjustment for noncontrolling interest – real estate partnerships
|
10,789
|
-
|
10,789
|
|||||||||
Loss from discontinued operations
|
(10,881
|
)
|
-
|
(10,881
|
)
|
|||||||
Gain on sale of real estate from discontinued operations
|
8,518
|
-
|
8,518
|
|||||||||
Gain on sale of real estate
|
40
|
-
|
40
|
|||||||||
Dividends on preferred stock
|
-
|
(6,325
|
)
|
(6,325
|
)
|
|||||||
Net income (loss) attributable to common stockholders
|
$ |
18,335
|
$ |
(27,278
|
)
|
$ |
(8,943
|
)
|
||||
|
||||||||||||
Total assets
|
$
|
1,590,545
|
$
|
13,137
|
$
|
1,603,682
|
||||||
|
||||||||||||
Office and parking properties
|
$
|
1,389,767
|
$
|
-
|
$
|
1,389,767
|
||||||
|
||||||||||||
Capital expenditures (d)
|
$
|
49,760
|
$
|
-
|
$
|
49,760
|
|
(a) Included in income from office and parking properties are rental revenues, customer reimbursements, parking income and other income.
|
|
(b) Included in property operating expenses are real estate taxes, insurance, contract services, repairs and maintenance and property operating expenses.
|
|
(c) Interest expense for office properties represents interest expense on property secured mortgage debt. It does not include interest expense on the Company's unsecured credit facility, which is included in "Unallocated and Other".
|
|
(d) Capital expenditures include building improvements, tenant improvements and leasing costs.
|
|
|
2012
|
|||||||||||||||
|
First
|
Second
|
Third
|
Fourth
|
||||||||||||
|
||||||||||||||||
Revenues (other than gains)
|
$
|
50,797
|
$
|
54,605
|
$
|
59,589
|
$
|
61,526
|
||||||||
Expenses
|
(45,130)
|
|
(47,523)
|
|
(51,136)
|
|
(106,327)
|
|
||||||||
Operating income (loss)
|
5,667
|
7,082
|
8,453
|
(44,801)
|
|
|||||||||||
Interest and other income
|
97
|
44
|
64
|
67
|
||||||||||||
Interest expense
|
(9,244)
|
|
(8,536)
|
|
(8,521)
|
|
(9,033)
|
|
||||||||
Gain on sale of real estate and other assets
|
-
|
-
|
548
|
-
|
||||||||||||
Income tax (expense) benefit
|
(161)
|
|
11
|
7
|
(118)
|
|
||||||||||
Income (loss) from continuing operations
|
(3,641)
|
|
(1,399)
|
|
551
|
(53,885)
|
|
|||||||||
Income (loss) from discontinued operations
|
3,393
|
(524)
|
|
(330)
|
|
(85)
|
|
|||||||||
Gain on sale of real estate from discontinued operations
|
5,575
|
3,197
|
995
|
3,172
|
||||||||||||
Net income (loss)
|
5,327
|
1,274
|
1,216
|
(50,798)
|
|
|||||||||||
Noncontrolling interests
|
(622)
|
|
1,499
|
913
|
1,796
|
|||||||||||
Net income (loss) attributable to Parkway Properties, Inc.
|
4,705
|
2,773
|
2,129
|
(49,002)
|
|
|||||||||||
Dividends on preferred stock
|
(2,711)
|
|
(3,721)
|
|
(2,711)
|
|
(2,711)
|
|
||||||||
Net income (loss) attributable to common stockholders
|
$
|
1,994
|
$
|
(948)
|
|
$
|
(582)
|
|
$
|
(51,713)
|
|
|||||
|
||||||||||||||||
Net income (loss) per common share:
|
||||||||||||||||
Basic:
|
||||||||||||||||
Loss from continuing operations attributable to
|
||||||||||||||||
Parkway Properties, Inc.
|
$
|
(0.17)
|
|
$
|
(0.14)
|
|
$
|
(0.02)
|
|
$
|
(1.23)
|
|
||||
Discontinued operations
|
0.26
|
0.10
|
-
|
0.07
|
||||||||||||
Basic net income (loss) attributable to Parkway Properties, Inc.
|
$
|
0.09
|
$
|
(0.04)
|
|
$
|
(0.02)
|
|
$
|
(1.16)
|
|
|||||
Dividends per common share
|
$
|
0.075
|
$
|
0.075
|
$
|
0.1125
|
$
|
0.1125
|
||||||||
Diluted:
|
||||||||||||||||
Loss from continuing operations attributable to
|
||||||||||||||||
Parkway Properties, Inc.
|
$
|
(0.17)
|
|
$
|
(0.14)
|
|
$
|
(0.02)
|
|
$
|
(1.23)
|
|
||||
Discontinued operations
|
0.26
|
0.10
|
-
|
0.07
|
||||||||||||
Diluted net income (loss) attributable to Parkway Properties, Inc.
|
$
|
0.09
|
$
|
(0.04)
|
|
$
|
(0.02)
|
|
$
|
(1.16)
|
|
|||||
Weighted average shares outstanding:
|
||||||||||||||||
Basic
|
21,568
|
23,440
|
36,487
|
44,476
|
||||||||||||
Diluted
|
21,568
|
21,440
|
36,387
|
44,476
|
|
2011
|
|||||||||||||||
|
First
|
Second
|
Third
|
Fourth
|
||||||||||||
Revenues (other than gains)
|
$
|
27,727
|
$
|
38,638
|
$
|
48,365
|
$
|
49,457
|
||||||||
Expenses
|
(26,679)
|
|
(47,155)
|
|
(41,548)
|
|
(53,890)
|
|
||||||||
Operating income (loss)
|
1,048
|
(8,517)
|
|
6,817
|
(4,433)
|
|
||||||||||
Interest and other income
|
324
|
437
|
87
|
90
|
||||||||||||
Interest expense
|
(6,408)
|
|
(7,668)
|
|
(8,876)
|
|
(8,660)
|
|
||||||||
Equity in earnings (loss) of unconsolidated joint ventures
|
35
|
44
|
(14)
|
|
(8)
|
|
||||||||||
Gain on sale of real estate
|
-
|
-
|
743
|
-
|
||||||||||||
Income tax (expense) benefit
|
-
|
(224)
|
|
174
|
(6)
|
|
||||||||||
Loss from continuing operations
|
(5,001)
|
|
(15,928)
|
|
(1,069)
|
|
(13,017)
|
|
||||||||
Loss from discontinued operations
|
(2,790)
|
|
(3,965)
|
|
(131,780)
|
|
(56,279)
|
|
||||||||
Gain on sale of real estate from discontinued operations
|
-
|
4,292
|
2,275
|
11,258
|
||||||||||||
Net loss
|
(7,791)
|
|
(15,601)
|
|
(130,574)
|
|
(58,038)
|
|
||||||||
Noncontrolling interests
|
3,196
|
3,371
|
77,547
|
986
|
||||||||||||
Net loss attributable to Parkway Properties, Inc.
|
(4,595)
|
|
(12,230)
|
|
(53,027)
|
|
(57,052)
|
|
||||||||
Dividends on preferred stock
|
(2,187)
|
|
(2,443)
|
|
(2,711)
|
|
(2,711)
|
|
||||||||
|
||||||||||||||||
Net loss available to common stockholders
|
$
|
(6,782)
|
|
$
|
(14,673)
|
|
$
|
(55,738)
|
|
$
|
(59,763)
|
|
||||
|
||||||||||||||||
Net income per common share:
|
||||||||||||||||
Basic:
|
||||||||||||||||
Loss from continuing operations attributable to
|
||||||||||||||||
Parkway Properties, Inc.
|
$
|
(0.27)
|
|
$
|
(0.78)
|
|
$
|
(0.03)
|
|
$
|
(0.59)
|
|
||||
Discontinued operations
|
(0.05)
|
|
0.10
|
(2.57)
|
|
(2.18)
|
|
|||||||||
Basic net loss attributable to Parkway Properties, Inc.
|
$
|
(0.32)
|
|
$
|
(0.68)
|
|
$
|
(2.59)
|
|
$
|
(2.77)
|
|
||||
Dividends per common share
|
$
|
0.075
|
$
|
0.075
|
$
|
0.075
|
$
|
0.075
|
||||||||
Diluted:
|
||||||||||||||||
Loss from continuing operations attributable to
|
||||||||||||||||
Parkway Properties, Inc.
|
$
|
(0.27)
|
|
$
|
(0.78)
|
|
$
|
(0.03)
|
|
$
|
(0.59)
|
|
||||
Discontinued operations
|
(0.05)
|
|
0.10
|
(2.57)
|
|
(2.18)
|
|
|||||||||
Diluted net loss attributable to Parkway Properties, Inc.
|
$
|
(0.32)
|
|
$
|
(0.68)
|
|
$
|
(2.59)
|
|
$
|
(2.77)
|
|
||||
Weighted average shares outstanding:
|
||||||||||||||||
Basic
|
21,476
|
21,489
|
21,502
|
21,541
|
||||||||||||
Diluted
|
21,476
|
21,489
|
21,502
|
21,541
|
|
Balance
|
Additions
|
Deductions
|
Balance
|
||||||||||||
|
Beginning
|
Charged to
|
Written Off as
|
End
|
||||||||||||
Description
|
of Year
|
Cost & Expenses
|
Uncollectible
|
of Year
|
||||||||||||
|
||||||||||||||||
Allowance for Doubtful Accounts:
|
||||||||||||||||
Year Ended:
|
||||||||||||||||
December 31, 2012
|
$
|
1,812
|
$
|
795
|
$
|
(1,001
|
)
|
$
|
1,606
|
|||||||
December 31, 2011
|
2,810
|
1,351
|
(2,349
|
)
|
1,812
|
|||||||||||
December 31, 2010
|
2,951
|
1,223
|
(1,364
|
)
|
2,810
|
SCHEDULE III – REAL ESTATE AND ACCUMULATED DEPRECIATION
DECEMBER 31, 2012
(In thousands)
|
||||||||||||||||||||
|
||||||||||||||||||||
|
Initial Cost to the Company
|
Subsequent
|
||||||||||||||||||
|
Building and
|
Capitalized
|
Total
|
|||||||||||||||||
Description
|
Encumbrances
|
Land
|
Improvements
|
Costs
|
Real Estate
|
|||||||||||||||
Office and Parking Properties:
|
||||||||||||||||||||
Arizona
|
||||||||||||||||||||
Hayden Ferry Lakeside I
|
$
|
22,000
|
$
|
2,871
|
$
|
30,430
|
$
|
5,565
|
$
|
38,866
|
||||||||||
Hayden Ferry Lakeside II
|
48,125
|
3,612
|
69,248
|
4,301
|
77,161
|
|||||||||||||||
Hayden Ferry Lakeside III, IV, and V
|
-
|
9,046
|
8,561
|
405
|
18,012
|
|||||||||||||||
Squaw Peak Corporate Center
|
-
|
5,800
|
35,144
|
6,966
|
47,910
|
|||||||||||||||
Mesa Corporate Center
|
-
|
3,353
|
15,243
|
1,290
|
19,886
|
|||||||||||||||
Tempe Gateway
|
-
|
6,937
|
46,170
|
6,164
|
59,271
|
|||||||||||||||
Florida
|
||||||||||||||||||||
Hillsboro Center V
|
9,412
|
1,325
|
12,249
|
3,655
|
17,229
|
|||||||||||||||
Hillsboro Center I-IV
|
6,417
|
1,129
|
7,734
|
2,837
|
11,700
|
|||||||||||||||
245 Riverside
|
9,250
|
6,556
|
8,050
|
1,305
|
15,911
|
|||||||||||||||
Stein Mart Building
|
11,517
|
1,653
|
16,636
|
4,932
|
23,221
|
|||||||||||||||
Riverplace South
|
-
|
2,316
|
5,412
|
2,938
|
10,666
|
|||||||||||||||
Westshore Corporate Center
|
15,646
|
-
|
17,532
|
2,219
|
19,751
|
|||||||||||||||
Bank of America Center
|
33,875
|
8,882
|
38,598
|
7,204
|
54,684
|
|||||||||||||||
Citrus Center
|
22,034
|
4,000
|
26,712
|
7,243
|
37,955
|
|||||||||||||||
Corporate Center Four at International
Plaza
|
22,500
|
-
|
31,775
|
7,803
|
39,578
|
|||||||||||||||
Cypress Center I – III
|
12,088
|
4,710
|
12,180
|
4,169
|
21,059
|
|||||||||||||||
The Pointe
|
23,500
|
5,293
|
30,836
|
4,518
|
40,647
|
|||||||||||||||
Georgia
|
||||||||||||||||||||
Lakewood II
|
-
|
1,195
|
575
|
1,216
|
2,986
|
|||||||||||||||
3344 Peachtree
|
84,733
|
7,472
|
127,583
|
10,468
|
145,523
|
|||||||||||||||
Two Ravinia Drive
|
22,100
|
3,187
|
32,948
|
7,493
|
43,628
|
|||||||||||||||
Waterstone
|
-
|
859
|
7,207
|
1,538
|
9,604
|
|||||||||||||||
Meridian
|
-
|
994
|
9,547
|
3,467
|
14,008
|
|||||||||||||||
Peachtree Dunwoody Pavilion
|
26,953
|
9,373
|
24,579
|
7,922
|
41,874
|
|||||||||||||||
Capital City Plaza
|
33,489
|
3,625
|
57,218
|
4,796
|
65,639
|
|||||||||||||||
Mississippi
|
||||||||||||||||||||
City Centre
|
-
|
267
|
1,676
|
5,949
|
7,892
|
|||||||||||||||
North Carolina
|
||||||||||||||||||||
Carmel Crossing
|
10,000
|
4,541
|
13,340
|
4,430
|
22,311
|
|||||||||||||||
Hearst Tower
|
-
|
4,417
|
200,287
|
19,923
|
224,627
|
|||||||||||||||
525 North Tryon
|
-
|
5,108
|
34,103
|
6,422
|
45,633
|
|||||||||||||||
NASCAR Plaza
|
42,977
|
-
|
76,790
|
10,560
|
87,350
|
|||||||||||||||
Pennsylvania
|
||||||||||||||||||||
Two Liberty Place
|
90,200
|
32,587
|
97,593
|
17,140
|
147,320
|
|||||||||||||||
South Carolina
|
||||||||||||||||||||
Atrium at Stoneridge
|
-
|
155
|
1,388
|
1,739
|
3,282
|
|||||||||||||||
Tennessee
|
||||||||||||||||||||
Morgan Keegan Tower
|
10,419
|
-
|
18,588
|
4,236
|
22,824
|
|||||||||||||||
Bank of America Plaza
|
-
|
1,464
|
28,712
|
11,700
|
41,876
|
|||||||||||||||
Texas
|
||||||||||||||||||||
400 North Belt
|
-
|
419
|
10,021
|
3,841
|
14,281
|
|||||||||||||||
Woodbranch
|
-
|
303
|
3,805
|
2,931
|
7,039
|
|||||||||||||||
Honeywell
|
-
|
856
|
15,235
|
4,360
|
20,451
|
|||||||||||||||
Schlumberger
|
-
|
1,013
|
11,102
|
4,629
|
16,744
|
|||||||||||||||
One Commerce Green
|
17,968
|
489
|
37,307
|
5,751
|
43,547
|
|||||||||||||||
Comerica Bank Building
|
12,834
|
1,921
|
21,222
|
3,526
|
26,669
|
|||||||||||||||
550 Greens Parkway
|
-
|
1,006
|
8,061
|
440
|
9,507
|
|||||||||||||||
5300 Memorial Building
|
11,387
|
682
|
11,744
|
3,643
|
16,069
|
|||||||||||||||
Town and Country
|
6,465
|
436
|
8,205
|
4,170
|
12,811
|
|||||||||||||||
Phoenix Tower
|
-
|
9,187
|
98,147
|
8,230
|
115,564
|
|||||||||||||||
Total Real Estate Owned
|
$
|
605,889
|
$
|
159,039
|
$
|
1,369,493
|
$
|
234,034
|
$
|
1,762,566
|
SCHEDULE III – REAL ESTATE AND ACCUMULATED DEPRECIATION – (Continued)
DECEMBER 31, 2012
(In thousands)
|
||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
|
Gross Amount at Which
|
|||||||||||||||||||||||||||||||
|
Carried at Close of Period
|
|||||||||||||||||||||||||||||||
|
Bldg. and
|
Accum.
|
Net Book Value
|
Year
|
Year
|
Depreciable
|
||||||||||||||||||||||||||
Description
|
Land
|
Imprv.
|
Total
|
Depr.
|
of Real Estate
|
Acquired
|
Constructed
|
Lives (Yrs.)
|
||||||||||||||||||||||||
Office and Parking Properties:
|
||||||||||||||||||||||||||||||||
Arizona
|
||||||||||||||||||||||||||||||||
Hayden Ferry Lakeside I
|
$
|
2,871
|
$
|
35,995
|
$
|
38,866
|
$
|
2,443
|
$
|
36,423
|
2011
|
2002
|
(3
|
)
|
||||||||||||||||||
Hayden Ferry Lakeside II
|
3,612
|
73,549
|
77,161
|
2,617
|
74,544
|
2012
|
2007
|
(3
|
)
|
|||||||||||||||||||||||
Hayden Ferry Lakeside III, IV, and V
|
9,046
|
8,966
|
18,012
|
90
|
17,922
|
2012
|
2007
|
(3
|
)
|
|||||||||||||||||||||||
Squaw Peak Corporate Center
|
5,800
|
42,110
|
47,910
|
11,007
|
36,903
|
2004
|
1999/2000
|
(3
|
)
|
|||||||||||||||||||||||
Mesa Corporate Center
|
3,353
|
16,533
|
19,886
|
3,636
|
16,250
|
2005
|
2000
|
(3
|
)
|
|||||||||||||||||||||||
Tempe Gateway
|
6,937
|
52,334
|
59,271
|
2
|
59,269
|
2012
|
2009
|
(3
|
)
|
|||||||||||||||||||||||
Florida
|
||||||||||||||||||||||||||||||||
Hillsboro Center V
|
1,325
|
15,904
|
17,229
|
6,611
|
10,618
|
1998
|
1985
|
(3
|
)
|
|||||||||||||||||||||||
Hillsboro Center I-IV
|
1,129
|
10,571
|
11,700
|
4,083
|
7,617
|
1998
|
1985
|
(3
|
)
|
|||||||||||||||||||||||
245 Riverside
|
6,556
|
9,355
|
15,911
|
601
|
15,310
|
2011
|
2003
|
(3
|
)
|
|||||||||||||||||||||||
Stein Mart Building
|
1,653
|
21,568
|
23,221
|
6,270
|
16,951
|
2005
|
1985
|
(3
|
)
|
|||||||||||||||||||||||
Riverplace South
|
2,316
|
8,350
|
10,666
|
2,924
|
7,742
|
2005
|
1981
|
(3
|
)
|
|||||||||||||||||||||||
Westshore Corporate Center
|
-
|
19,751
|
19,751
|
161
|
19,590
|
2012
|
1988
|
(3
|
)
|
|||||||||||||||||||||||
Bank of America Center
|
8,882
|
45,802
|
54,684
|
3,311
|
51,373
|
2011
|
1987
|
(3
|
)
|
|||||||||||||||||||||||
Citrus Center
|
4,000
|
33,955
|
37,955
|
10,170
|
27,785
|
2003
|
1971
|
(3
|
)
|
|||||||||||||||||||||||
Corporate Center Four at
International Plaza
|
-
|
39,578
|
39,578
|
2,897
|
36,681
|
2011
|
2008
|
(3
|
)
|
|||||||||||||||||||||||
Cypress Center I – III
|
4,710
|
16,349
|
21,059
|
2,183
|
18,876
|
2011
|
1982
|
(3
|
)
|
|||||||||||||||||||||||
The Pointe
|
5,293
|
35,354
|
40,647
|
1,540
|
39,107
|
2012
|
1982
|
(3
|
)
|
|||||||||||||||||||||||
Georgia
|
||||||||||||||||||||||||||||||||
Lakewood II
|
1,195
|
1,791
|
2,986
|
193
|
2,793
|
2010
|
1986
|
(3
|
)
|
|||||||||||||||||||||||
3344 Peachtree
|
7,472
|
138,051
|
145,523
|
9,232
|
136,291
|
2011
|
2008
|
(3
|
)
|
|||||||||||||||||||||||
Two Ravinia Drive
|
3,187
|
40,441
|
43,628
|
3,154
|
40,474
|
2011
|
1987
|
(3
|
)
|
|||||||||||||||||||||||
Waterstone
|
859
|
8,745
|
9,604
|
3,967
|
5,637
|
1995
|
1987
|
(3
|
)
|
|||||||||||||||||||||||
Meridian
|
994
|
13,014
|
14,008
|
5,762
|
8,246
|
1997
|
1985
|
(3
|
)
|
|||||||||||||||||||||||
Peachtree Dunwoody Pavilion
|
9,373
|
32,501
|
41,874
|
8,236
|
33,638
|
2003
|
1976/1980
|
(3
|
)
|
|||||||||||||||||||||||
Capital City Plaza
|
3,625
|
62,014
|
65,639
|
14,614
|
51,025
|
2004
|
1989
|
(3
|
)
|
|||||||||||||||||||||||
Mississippi
|
||||||||||||||||||||||||||||||||
City Centre
|
267
|
7,625
|
7,892
|
-
|
7,892
|
1995
|
(2) 1987/2005
|
(3
|
)
|
|||||||||||||||||||||||
North Carolina
|
||||||||||||||||||||||||||||||||
Carmel Crossing
|
4,541
|
17,770
|
22,311
|
2,386
|
19,925
|
2010
|
1995
|
(3
|
)
|
|||||||||||||||||||||||
Hearst Tower
|
4,417
|
220,210
|
224,627
|
4,614
|
220,013
|
2012
|
2002
|
(3
|
)
|
|||||||||||||||||||||||
525 North Tryon
|
5,108
|
40,525
|
45,633
|
188
|
45,445
|
2012
|
1998
|
(3
|
)
|
|||||||||||||||||||||||
NASCAR Plaza
|
-
|
87,350
|
87,350
|
2
|
87,348
|
2012
|
2009
|
(3
|
)
|
|||||||||||||||||||||||
Pennsylvania
|
||||||||||||||||||||||||||||||||
Two Liberty Place
|
32,587
|
114,733
|
147,320
|
8,144
|
139,176
|
2011
|
1990
|
(3
|
)
|
|||||||||||||||||||||||
South Carolina
|
||||||||||||||||||||||||||||||||
Atrium at Stoneridge
|
155
|
3,127
|
3,282
|
1,086
|
2,196
|
1998
|
1986
|
(3
|
)
|
|||||||||||||||||||||||
Tennessee
|
||||||||||||||||||||||||||||||||
Morgan Keegan Tower
|
-
|
22,824
|
22,824
|
826
|
21,998
|
1997
|
1985
|
(3
|
)
|
|||||||||||||||||||||||
Bank of America Plaza
|
1,464
|
40,412
|
41,876
|
14,407
|
27,469
|
2001
|
1977
|
(3
|
)
|
|||||||||||||||||||||||
Texas
|
||||||||||||||||||||||||||||||||
400 North Belt
|
419
|
13,862
|
14,281
|
5,162
|
9,119
|
1996
|
1982
|
(3
|
)
|
|||||||||||||||||||||||
Woodbranch
|
303
|
6,736
|
7,039
|
3,179
|
3,860
|
1996
|
1982
|
(3
|
)
|
|||||||||||||||||||||||
Honeywell
|
856
|
19,595
|
20,451
|
7,093
|
13,358
|
1997
|
1983
|
(3
|
)
|
|||||||||||||||||||||||
Schlumberger
|
1,013
|
15,731
|
16,744
|
7,747
|
8,997
|
1998
|
1983
|
(3
|
)
|
|||||||||||||||||||||||
One Commerce Green
|
489
|
43,058
|
43,547
|
17,871
|
25,676
|
1998
|
1983
|
(3
|
)
|
|||||||||||||||||||||||
Comerica Bank Building
|
1,921
|
24,748
|
26,669
|
9,765
|
16,904
|
1998
|
1983
|
(3
|
)
|
|||||||||||||||||||||||
550 Greens Parkway
|
1,006
|
8,501
|
9,507
|
2,632
|
6,875
|
2001
|
1999
|
(3
|
)
|
|||||||||||||||||||||||
5300 Memorial Building
|
682
|
15,387
|
16,069
|
5,152
|
10,917
|
2002
|
1982
|
(3
|
)
|
|||||||||||||||||||||||
Town and Country
|
436
|
12,375
|
12,811
|
3,889
|
8,922
|
2002
|
1982
|
(3
|
)
|
|||||||||||||||||||||||
Phoenix Tower
|
9,187
|
106,377
|
115,564
|
2
|
115,562
|
2012
|
1984/2011
|
(3
|
)
|
|||||||||||||||||||||||
Total Real Estate Owned
|
$
|
159,039
|
$
|
1,603,527
|
$
|
1,762,566
|
$
|
199,849
|
$
|
1,562,717
|
||||||||||||||||||||||
(1) The aggregate cost for federal income tax purposes was approximately $2.4 billion (unaudited).
|
||||||||||||||||||||||||||||||||
(2)The dates of major renovations.
|
||||||||||||||||||||||||||||||||
(3)Depreciation of buildings and improvements is calculated over lives ranging from the life of the lease to 40 years.
|
|
December 31
|
|||||||||||
|
2012
|
2011
|
2010
|
|||||||||
Real Estate:
|
||||||||||||
Office and Parking Properties:
|
||||||||||||
Balance at beginning of year
|
$
|
1,084,060
|
$
|
1,755,919
|
1,738,649
|
|||||||
Additions:
|
||||||||||||
Acquisitions and improvements
|
710,642
|
535,249
|
64,968
|
|||||||||
Impairment on land held for development
|
-
|
(609
|
)
|
-
|
||||||||
Real estate sold, disposed, impaired or held for sale
|
(32,136
|
)
|
(1,206,499
|
)
|
(47,698
|
)
|
||||||
Balance at close of year
|
$
|
1,762,566
|
$
|
1,084,060
|
1,755,919
|
|||||||
|
||||||||||||
Accumulated Depreciation
|
||||||||||||
Balance at beginning of year
|
$
|
162,123
|
$
|
366,152
|
$
|
336,759
|
||||||
Depreciation expense
|
50,421
|
32,971
|
19,859
|
|||||||||
Depreciation expense - discontinued operations
|
316
|
43,578
|
47,788
|
|||||||||
Real estate sold, disposed, impaired or held for sale
|
(13,011
|
)
|
(280,578
|
)
|
(38,254
|
)
|
||||||
Balance at close of year
|
$
|
199,849
|
$
|
162,123
|
$
|
366,152
|
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE
|
|||||||||||||||||||
DECEMBER 31, 2012
|
|||||||||||||||||||
(In thousands)
|
|||||||||||||||||||
|
|
|
|
Principal
|
|||||||||||||||
|
|
|
|
Amount of
|
|||||||||||||||
|
Final
|
Periodic
|
|
Face
|
Carrying
|
Loan Subject to
|
|||||||||||||
|
Interest
|
Maturity
|
Payment
|
Prior
|
Amount of
|
Amount of
|
Delinquent Principal
|
||||||||||||
Description
|
Rate
|
Date
|
Term
|
Liens
|
Mortgage
|
Mortgage
|
and Interest
|
||||||||||||
2100 Ross Avenue (1)
|
6.1
|
%
|
May 2012
|
Interest only (2)
|
None
|
$
|
10,000
|
$
|
-
|
$
|
-
|
||||||||
One Park Ten
|
7.3
|
%
|
June 2012
|
Interest only (3)
|
None
|
1,500
|
-
|
-
|
|||||||||||
(1) This is a B participation piece of a first mortgage secured by an 844,000 square foot office building in Dallas, Texas. Parkway recorded a non-cash impairment loss of $9.2 million during 2011. During third quarter 2012, Parkway received a $500,000 payment which was classified as a recovery of losses on mortgage loan receivable. The Company's original cash investment in the loan was $6.9 million and was purchased in November 2007.
|
|||||||||||||||||||
(2) The note requires interest only payments until maturity, at which time a principal payment of $10.0 million will be due.
|
|||||||||||||||||||
(3) The note requires interest only payments until maturity, at which time a principal payment of $1.5 million will be due.
|
NOTE TO SCHEDULE IV
At December 31, 2012, 2011 and 2010
(In thousands)
|
||||||||||||
|
December 31
|
|||||||||||
|
2012
|
2011
|
2010
|
|||||||||
Balance at beginning of year
|
$
|
1,500
|
$
|
10,336
|
$
|
8,126
|
||||||
Additions:
|
||||||||||||
New mortgage loan
|
-
|
-
|
1,500
|
|||||||||
Amortization of discount
|
-
|
399
|
710
|
|||||||||
Deductions:
|
||||||||||||
Mortgage loan payment
|
(1,500
|
)
|
- | - | ||||||||
Impairment loss
|
-
|
(9,235
|
)
|
-
|
||||||||
Balance at end of year
|
$
|
-
|
$
|
1,500
|
$
|
10,336
|
|
(c)
|
|||||||||||
|
Number of securities
|
|||||||||||
|
remaining available for
|
|||||||||||
|
(a)
|
(b)
|
future issuance under
|
|||||||||
|
Number of securities to
|
Weighted-average
|
equity compensation
|
|||||||||
|
be issued upon exercise
|
exercise price of
|
plans (excluding
|
|||||||||
|
of outstanding options,
|
outstanding options,
|
securities reflected in
|
|||||||||
Plan category
|
warrants and rights
|
warrants and rights
|
column (a))
|
|||||||||
Equity compensation plans
|
||||||||||||
approved by security
|
||||||||||||
holders
|
17,760
|
$
|
0.00
|
354,088
|
||||||||
|
||||||||||||
Equity compensation plans
|
||||||||||||
not approved by security
|
||||||||||||
holders
|
-
|
-
|
-
|
|||||||||
|
||||||||||||
Total
|
17,760
|
$
|
0.00
|
354,088
|
2
|
Consolidated Financial Statement Schedules
|
3
|
Form 10-K Exhibits required by Item 601 of Regulation S-K:
|
Exhibit
|
|
No.
|
Description
|
2.1
|
Contribution Agreement dated as of April 10, 2011 by and among Eola Capital LLC, Eola Office Partners LLC, Banyan Street Office Holdings LLC, and the members that are parties thereto on one hand, and Parkway Properties, Inc. and Parkway Properties LP on the other hand (incorporated by reference to Exhibit 2.1 to the Company's Form 8-K filed April 13 2011).
|
3.1
|
Articles of Incorporation, as amended, of the Company (incorporated by reference to Exhibit B to the Company's proxy material for its July 18, 1996 Annual Meeting).
|
3.2
|
Articles of Amendment to the Articles of Incorporation, as amended, of the Company (incorporated by reference to Exhibit 3.1 to the Company's Form 8-K filed August 7, 2012).
|
3.3
|
Bylaws of the Company, as amended through August 5, 2010 (incorporated by reference to Exhibit 3.1 to the Company's Form 8-K filed on August 6, 2010).
|
3.4
|
Articles Supplementary creating the Company's 8.00% Series D Cumulative Redeemable Preferred Stock (incorporated by reference to Exhibit 4 to the Company's Form 8-A filed May 29, 2003).
|
3.5
|
Articles Supplementary reclassifying and designating an additional 1,974,896 shares of common stock as 8.00% Series D Cumulative Redeemable Preferred Stock (incorporated by reference to Exhibit 3 to the Company's Form 8-K filed August 12, 2010).
|
3.6
|
Articles Supplementary reclassifying and designating an additional 1,046,400 shares of common stock as 8.00% Series D Cumulative Redeemable Preferred Stock (incorporated by reference to Exhibit 3 to the Company's Form 8-K filed May 18, 2011).
|
3.7
|
Articles Supplementary Reclassifying 16,000,000 Shares of Common Stock into Series E Convertible Cumulative Redeemable Preferred Stock (incorporated by reference to Exhibit 3.1 to the Company's Form 8-K filed June 5, 2012).
|
3.8
|
Articles Supplementary Reclassifying 16,000,000 Shares of Series E Convertible Cumulative Redeemable Preferred Stock into Common Stock (incorporated by reference to Exhibit 3.1 to the Company's Form 8-K filed November 16, 2012).
|
10
|
Material Contracts:
|
10.1
|
Amended and Restated Agreement of Limited Partnership of Parkway Properties LP (incorporated by reference to Exhibit 99(a) to the Company's Form 8-K filed July 15, 1998).
|
10.2
|
Amendment to Exhibit A dated February 28, 2012 of the Amended and Restated Agreement of Limited Partnership of Parkway Properties LP (incorporated by reference to Exhibit 10.2 to the Company's Form 10-K for the year ended December 31, 2011).
|
10.3
|
Amendment to Exhibit A dated June 5, 2012 of the Amended and Restated Agreement of Limited Partnership of Parkway Properties LP (incorporated by reference to Exhibit 10.4 to the Company's Form 8-K filed June 6, 2012).
|
10.4
|
Limited Partnership Agreement of Parkway Properties Office Fund II, L.P. by and among PPOF II, LLC, Parkway Properties, LP and Teacher Retirement System of Texas (incorporated by reference to Exhibit 10 to the Company's Form 8-K filed May 19, 2008).
|
10.5
|
First Amendment to Limited Partnership Agreement of Parkway Properties Office Fund II, L.P. dated April 10, 2011 (incorporated by reference to Exhibit 10.3 to the Company's Form 8-K filed April 14, 2011).
|
10.6
|
Second Amendment to Limited Partnership Agreement of Parkway Properties Office Fund II, L.P. dated August 8, 2012 (incorporated by reference to Exhibit 10.3 to the Company's Form 10-Q for the quarter ended September 30, 2012).
|
10.7
|
Credit Agreement by and among Parkway Properties LP, a Delaware limited partnership; Parkway Properties, Inc., a Maryland corporation; Wells Fargo Securities, LLC and J.P. Morgan Securities LLC, as Joint Lead Arrangers and Joint Bookrunners; Wells Fargo Bank, N.A., as Administration Agent; JPMorgan Chase Bank, N.A., as Syndication Agent; PNC Bank, N.A., Bank of America, N.A., and U.S. Bank, N.A., as Documentation Agents; and the Lenders dated January 31, 2011 (incorporated by reference to Exhibit 10 to the Company's Form 8-K filed January 31, 2011).
|
10.8
|
First Amendment to Credit Agreement by and among Parkway Properties LP, a Delaware limited partnership; Parkway Properties, Inc., a Maryland corporation; Wells Fargo Securities, LLC and J.P. Morgan Securities LLC, as Joint Lead Arrangers and Joint Bookrunners; Wells Fargo Bank, N.A., as Administration Agent; JPMorgan Chase Bank, N.A., as Syndication Agent; PNC Bank, N.A., Bank of America, N.A., and U.S. Bank, N.A., as Documentation Agents; and the Lenders dated July 6, 2011 (incorporated by reference to Exhibit 10.9 to the Company's Form 10-Q for the quarter ended June 30, 2011).
|
10.9
|
Second Amendment to Credit Agreement by and among Parkway Properties LP, a Delaware limited partnership; Parkway Properties, Inc., a Maryland corporation; Wells Fargo Securities, LLC and J.P. Morgan Securities LLC, as Joint Lead Arrangers and Joint Bookrunners; Wells Fargo Bank, N.A., as Administration Agent; JPMorgan Chase Bank, N.A., as Syndication Agent; PNC Bank, N.A., Bank of America, N.A., and U.S. Bank, N.A., as Documentation Agents; and the Lenders dated September 20, 2011 (incorporated by reference to Exhibit 99.1 to the Company's Form 8-K filed September 23, 2011).
|
10.10
|
Master Transaction Agreement dated as of April 10, 2011 by and among Eola Capital LLC, Eola Office Partners LLC, the individuals listed on the signature pages thereto on one hand and Parkway Properties, Inc. and Parkway Properties LP on the other hand (incorporated by reference to Exhibit 10.1 to the Company's Form 8-K filed April 14, 2011).
|
10.12
|
Purchase and Sale Agreement dated as of May 5, 2011 by and between Parkway 233 North Michigan, LLC, a Delaware limited liability company, Parkway Properties, LP, a Delaware limited partnership and HUB Properties Trust, a Maryland real estate investment trust (incorporated by reference to Exhibit 2.1 to the Company's Form 8-K filed May 9, 2011).
|
10.13
|
Purchase and Sale Agreement dated as of August 19, 2011 by and between 111 East Wacker, LLC, a Delaware limited liability company, and HUB Properties Trust, a Maryland real estate investment trust (incorporated by reference to Exhibit 2.1 to the Company's Form 8-K filed September 23, 2011).
|
10.14
|
First Amendment to Purchase and Sale Agreement dated as of September 21, 2011 by and between 111 East Wacker, LLC, a Delaware limited liability company, and HUB Properties Trust, a Maryland real estate investment trust (incorporated by reference to Exhibit 2.2 to the Company's Form 8-K filed September 23, 2011).
|
10.15
|
Second Amendment to Purchase and Sale Agreement dated as of September 22, 2011 by and between 111 East Wacker, LLC, a Delaware limited liability company, and HUB Properties Trust, a Maryland real estate investment trust (incorporated by reference to Exhibit 2.3 to the Company's Form 8-K filed September 23, 2011).]
|
10.16
|
Comprehensive Amendment Agreement dated as of December 30, 2011 by and among Parkway Properties, Inc., Parkway Properties LP, Banyan Street Office Holdings LLC, Rodolfo Prio Touzet, James R. Heistand, Henry F. Pratt, III, Kyle Burd, Scott Francis, Troy M. Cox, Lorri Dunne, David O'Reilly and James Gray (incorporated by reference to Exhibit 10.1 to the Company's Form 8-K filed January 5, 2012).
|
10.17
|
Form of Purchase and Sale Agreement by and between Parkway Properties LP, a Delaware limited liability company, and applicable subsidiaries and Hertz Acquisitions Group, LLC, a Delaware limited liability company (incorporated by reference to Exhibit 2.3 to the Company's Form 8-K filed January 5, 2012).
|
10.18
|
Amended and Restated Credit Agreement by and among Parkway Properties LP, a Delaware limited partnership; Parkway Properties, Inc., a Maryland corporation; Wells Fargo Securities, LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as Joint Lead Arrangers and Joint Bookrunners; Wells Fargo Bank, National Association, as Administration Agent; Bank of America, N.A., as Syndication Agent; PNC Bank, National Association, Royal Bank of Canada, and KeyBank National Association, as Documentation Agents; and the Lenders dated March 30, 2012 (incorporated by reference to Exhibit 10.1 to the Company's Form 8-K filed April 5, 2012).
|
10.19
|
First Amendment to Credit Agreement, dated as of June 4, 2012, by and among the Company, Parkway Properties LP, Wells Fargo Bank, National Association, and the other lenders party thereto (incorporated by reference to Exhibit 10.3 to the Company's Form 8-K filed June 6, 2012).
|
10.20
|
Second Amendment to Amended and Restated Credit Agreement by and among Parkway Properties LP, a Delaware limited partnership; Parkway Properties, Inc., a Maryland corporation; with Wells Fargo Bank, National Association, as Administrative Agent; and the Lenders dated September 28, 2012 (incorporated by reference to Exhibit 10.2 to the Company's Form 8-K filed October 1, 2012).
|
10.21
|
Purchase and Sale Agreement dated as of April 30, 2012 by and between 214 North Tryon, LLC and Parkway Properties LP (incorporated by reference to Exhibit 2.1 to the Company's Form 8-K filed June 11, 2012)
|
10.22
|
Securities Purchase Agreement dated as of May 3, 2012, by and between Parkway Properties, Inc. and TPG VI Pantera Holdings, L.P. (incorporated by reference to Exhibit 10.1 to the Company's Form 8-K filed May 7, 2012).
|
10.23
|
Stockholders Agreement, dated as of June 5, 2012, by and among Parkway Properties, Inc., TPG VI Pantera Holdings, L.P. and TPG VI Management, LLC (incorporated by reference to Exhibit 10.1 to the Company's Form 8-K filed June 6, 2012).
|
10.24
|
Amendment No. 1 to Stockholders Agreement, dated December 3, 2012, by and between Parkway Properties, Inc. and TPG VI Pantera Holdings, L.P. (incorporated by reference to Exhibit 10.2 to the Company's Form 8-K filed December 3, 2012).
|
10.25
|
Management Services Agreement dated as of June 5, 2012, by and between Parkway Properties, Inc. and TPG VI Management, LLC (incorporated by reference to Exhibit 10.2 to the Company's Form 8-K filed June 6, 2012).
|
10.26
|
Heistand Letter Agreement dated June 5, 2012, by and between the Company and James R. Heistand (incorporated by reference to Exhibit 10.5 to the Company's Form 8-K filed June 6, 2012).
|
10.27
|
Term Loan Agreement by and among Parkway Properties LP, a Delaware limited partnership; Parkway Properties, Inc., a Maryland corporation; with KeyBanc Capital Markets, Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated as Joint Lead Arrangers and Joint Bookrunners; KeyBank National Association as Administrative Agent; Bank of America, N. A. as Syndication Agent; Wells Fargo Bank, National Association as Documentation Agent; and the Lenders dated September 28, 2012 (incorporated by reference to Exhibit 10.1 to the Company's Form 8-K filed October 1, 2012).
|
10.28
|
Purchase and Sale Agreement, dated as of October 31, 2012, by and between 550 South Caldwell Investors, LLC, as Seller, and Parkway 550 South Caldwell, LLC, as Purchaser (incorporated by reference to Exhibit 10.1 to the Company's Form 8-K filed November 1, 2012).
|
10.29
|
Purchase and Sale Agreement, dated as of December 3, 2012, by and between FSP Phoenix Tower Limited Partnership, as Seller, and PKY 3200 SW Freeway, LLC, as Purchaser (incorporated by reference to Exhibit 10.1 to the Company's Form 8-K filed December 3, 2012).
|
10.30
|
Purchase and Sale Agreement, dated as of January 21, 2013, by and between FDG Mezzanine A LLC and Flagler Development Company LLC, as Sellers, and Parkway Properties, LP, as Purchaser (incorporated by reference to Exhibit 10.1 to the Company's Form 8-K filed January 23, 2013).
|
10.31
|
First Amendment to Purchase and Sale Agreement, dated as of January 31, 2013, by and between FDG Mezzanine A LLC and Flagler Development Company LLC, as Sellers, and Parkway Properties, LP, as Purchaser (filed herewith)
|
10.32*
|
Consulting Agreement dated January 28, 2013 by and between Parkway Properties, Inc. and Mandy M. Pope (incorporated by reference to Exhibit 10.1 to the Company's Form 8-K filed January 29, 2013).
|
10.33*
|
Parkway Properties, Inc. 1994 Stock Option and Long-Term Incentive Plan (incorporated by reference to Appendix A to the Company's proxy material for its June 3, 1999 Annual Meeting).
|
10.34*
|
Parkway Properties, Inc. 2001 Non-employee Directors Equity Compensation Plan, as amended (incorporated by reference to Exhibit 10.5 to the Company's Form 10-K for the year ended December 31, 2006).
|
10.35*
|
Parkway Properties, Inc. 2003 Equity Incentive Plan, as amended (incorporated by reference to Exhibit 10.6 to the Company's Form 10-K for the year ended December 31, 2006).
|
10.36*
|
Parkway Properties, Inc. Amended and Restated 2010 Omnibus Equity Incentive Plan (incorporated by reference to Exhibit 10.1 to the Company's Form 8-K filed May 18, 2010)
|
10.37*
|
Parkway Properties, Inc. 2006 Employee Stock Purchase Plan, as amended (incorporated by reference to Exhibit 10.1 to the Company's Form 8-K filed August 24, 2006).
|
10.38*
|
Adoption Agreement for the Executive Nonqualified Excess Plan (incorporated by reference to Exhibit 10.25 to the Company's Form 10-K for the year ended December 31, 2006).
|
10.39*
|
Appendix to Adoption Agreement for Parkway Properties, Inc. Deferred Compensation Plan, as amended (incorporated by reference to Exhibit 10.26 to the Company's Form 10-K for the year ended December 31, 2006).
|
10.40*
|
Form of Incentive Restricted Share Agreement for Time-Based Awards (incorporated by reference to Exhibit 10.2 to the Company's Form 8-K filed June 29, 2006).
|
10.41*
|
Form of Incentive Restricted Share Agreement for 2009 Long-Term Equity Compensation Program (incorporated by reference to Exhibit 10 to the Company's Form 8-K filed February 4, 2009).
|
10.42*
|
Form of Restricted Share Agreement for Time-Based Awards (incorporated by reference to Exhibit 10.1 to the Company's Form 8-K filed on July 15, 2010).
|
10.43*
|
Form of Restricted Share Agreement for Performance-Based Awards (Absolute Return Goal) (incorporated by reference to Exhibit 10.2 to the Company's Form 8-K filed on July 15, 2010).
|
10.44*
|
Form of Restricted Share Agreement for Performance-Based Awards (Relative Return Goal) (incorporated by reference to Exhibit 10.3 to the Company's Form 8-K filed on July 15, 2010).
|
10.45*
|
Parkway Properties, Inc. Long-Term Cash Incentive (incorporated by reference to Exhibit 10.4 to the Company's Form 8-K filed on July 15, 2010).
|
10.46*
|
Parkway Properties, Inc. Long-Term Cash Incentive Participation Agreement (incorporated by reference to Exhibit 10.5 to the Company's Form 8-K filed on July 15, 2010)
|
10.47*
|
Potential 2012 non-equity incentive awards for executive officers of the Company (a written description thereof is set forth in Item 5.02 of the Company's Form 8-K filed February 15, 2012).
|
10.48*
|
Form of Change in Control Agreement with each of the Company's Executive Officers (the Change in Control Agreements are identical in substance for each of the Named Executive Officers, and provide for a multiple of "2.99" in calculating the severance payment under each officer's Agreement) (incorporated by reference to Exhibit 10.1 to the Company's Form 8-K filed May 14, 2008).
|
10.49*
|
Parkway Properties, Inc. 2011 Employee Inducement Award Plan (incorporated by reference to Exhibit 99.1 to the Company's Registration Statement on Form S-8 filed with the SEC on May 18, 2011).
|
10.50*
|
Form of Inducement Award Agreement for Time-Based Awards (incorporated by reference to Exhibit 10.3 to the Company's Form 8-K filed May 18, 2011).
|
10.51*
|
Form of Inducement Award Agreement for Performance-Based Awards (Absolute Return Goal) (incorporated by reference to Exhibit 10.4 to the Company's Form 8-K filed May 18, 2011).
|
10.52*
|
Form of Inducement Award Agreement for Performance-Based Awards (Relative Return Goal) (incorporated by reference to Exhibit 10.5 to the Company's Form 8-K filed May 18, 2011).
|
10.53*
|
Transition Agreement dated October 7, 2011 by and between Parkway Properties, Inc. and Steven G. Rogers (incorporated by reference to Exhibit 10.31 to the Company's Form 10-K for the year ended December 31, 2011).
|
10.54*
|
Severance Agreement dated October 11, 2011 by and between Parkway Properties, Inc. and William R. Flatt (incorporated by reference to Exhibit 10.32 to the Company's Form 10-K for the year ended December 31, 2011).
|
10.55*
|
Retention Agreement dated November 4, 2011 by and between Parkway Properties, Inc. and Richard G. Hickson IV (incorporated by reference to Exhibit 10.33 to the Company's Form 10-K for the year ended December 31, 2011).
|
10.56*
|
Retention Agreement dated November 4, 2011 by and between Parkway Properties, Inc. and Mandy M. Pope (incorporated by reference to Exhibit 10.34 to the Company's Form 10-K for the year ended December 31, 2011).
|
10.57*
|
Consulting Agreement, dated August 27, 2012 by and between the Company and James M. Ingram (incorporated by reference to Exhibit 10.4 to the Company's Form 10-Q for the quarter ended September 30, 2012).
|
16.1
|
Letter from KPMG LLP to the Securities and Exchange Commission regarding change in certifying accountant (incorporated by reference to Exhibit 16.1 to the Company's Form 8-K filed April 3, 2012).
|
21
|
Subsidiaries of the Company (filed herewith).
|
23.1
|
Consent of Ernst & Young LLP (filed herewith).
|
23.2
|
Consent of KPMG LLC (filed herewith)
|
31.1
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
31.2
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
32.1
|
Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
32.2
|
Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
101
|
The following materials from Parkway Properties, Inc.'s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012, formatted in XBRL (eXtensible Business Reporting Language): (i) consolidated balance sheets, (ii) consolidated statements of operations and comprehensive income, (iii) consolidated statement of changes in equity, (iv) consolidated statements of cash flows, and (v) the notes to the consolidated financial statements.**
|
|
|
|
* Denotes a management contract of compensatory plan, contract or arrangement.
|
|
** Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.
|
|
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|
PARKWAY PROPERTIES, INC.
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|
Registrant
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|
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By: /s/ James R. Heistand
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James R. Heistand
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President, Chief Executive Officer and Director
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|
March 6, 2013
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|
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|
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/s/ David O'Reilly
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|
David O'Reilly
|
|
Executive Vice President and Chief Financial Officer
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|
March 6, 2013
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|
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/s/ O. Darryl Waltman
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|
O. Darryl Waltman
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Senior Vice President and Chief Accounting Officer
|
|
March 6, 2013
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/s/ Avi Banyasz
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/s/ James R. Heistand
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Avi Banyasz, Director
|
James R. Heistand
|
March 6, 2013
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President, Chief Executive Officer and Director
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March 6, 2013
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/s/ Charles T. Cannada
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/s/ C. William Hosler
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Charles T. Cannada
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C. William Hosler, Director
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Chairman of the Board and Director
|
March 6, 2013
|
March 6, 2013
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/s/ Edward M. Casal
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/s/ Adam S. Metz
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Edward M. Casal, Director
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Adam S. Metz, Director
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March 6, 2013
|
March 6, 2013
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/s/ Kelvin L. Davis
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/s/ Brenda J. Mixson
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Kelvin L. Davis, Director
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Brenda J. Mixson, Director
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March 6, 2013
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March 6, 2013
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/s/ Laurie L. Dotter
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Laurie L. Dotter, Director
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March 6, 2013
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List of Subsidiaries
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Exhibit 21
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Name
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State
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Corporations:
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Jackson Place Manager, Inc.
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Delaware
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Parkway 233 North Michigan Manager, Inc.
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Delaware
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Parkway One Capital Manager, Inc.
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Delaware
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Parkway Orlando Manager, Inc.
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Delaware
|
Parkway Properties General Partners, Inc.
|
Delaware
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Partnerships:
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111 Capitol Building Limited Partnership
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Mississippi
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111 East Wacker LLC
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Delaware
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Bullard Road Building LLC
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Delaware
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Chicago OfficeInvest LLC
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Delaware
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Eola Office Partners, LLC
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Florida
|
Eola Capital, LLC (d/b/a Parkway Realty Services)
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Florida
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Eola Capital Asset MGT, LLC
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Delaware
|
Eola Capital Investors, LLC
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Delaware
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Eola Capital NC, LLC
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North Carolina
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Eola TRS, LLC
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Delaware
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Jackson Place LLC
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Delaware
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Moore Building Associates LP
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Delaware
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Moore Garage LLC
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Delaware
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Offices at Two Liberty Place, LP
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Delaware
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Parkway 2100 Ross LLC
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Delaware
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Parkway 214 N. Tryon, LLC
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Delaware
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Parkway 233 North Michigan LLC
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Delaware
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Parkway 525 N. Tryon, LLC
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Delaware
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Parkway 550 South Caldwell, LLC
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Delaware
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Parkway Chicago LLC
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Delaware
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Parkway Jackson LLC
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Mississippi
|
Parkway JHLIC LP
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Delaware
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Parkway Lamar LLC
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Mississippi
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Parkway Moore LLC
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Delaware
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Parkway One Capital LLC
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Delaware
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Parkway One Capital City Plaza LLC
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Delaware
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Parkway Orlando LLC
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Delaware
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Parkway Properties LP
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Delaware
|
Parkway Properties Office Fund LP
|
Delaware
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|
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Name
|
State
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Parkway Properties Office Fund II LP
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Delaware
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Parkway Realty Services LLC
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Delaware
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Parkway Realty Services of Illinois LLC
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Delaware
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Parkway Tower Place 200, LLC
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Delaware
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Parkway Westshore, LLC
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Delaware
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Pinnacle Place LLC
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Delaware
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PKY Fund LLC
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Delaware
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PKY 222 S. Mill, LLC
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Delaware
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PKY 3200 SW Freeway, LLC
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Delaware
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PPOF II LLC
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Delaware
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Parkway Hancock Texas Manager, LLC
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Delaware
|
Parkway Hancock Texas, LLC
|
Delaware
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Parkway Fund II Austin I, LLC
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Delaware
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PKY Fund II Atlanta I, LLC
|
Delaware
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PKY Fund II Charlotte I, LLC
|
Delaware
|
PKY Fund II Smyrna I, LLC
|
Delaware
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PKY Fund II Buckhead, LLC
|
Delaware
|
PKY Fund II Jacksonville I, LLC
|
Delaware
|
PKY Fund II Tampa I, LLC
|
Delaware
|
PKY Fund II Tampa II, LLC
|
Delaware
|
PKY Fund II Tampa III, LLC
|
Delaware
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PKY Fund II Atlanta II, LLC
|
Delaware
|
PKY Fund II Orlando I, LLC
|
Delaware
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PKY Fund II Philadelphia GP, LLC
|
Delaware
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PKY Fund II Philadelphia I, LP
|
Delaware
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PKY Fund II Phoenix I, LLC
|
Delaware
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PKY Fund II Phoenix II, LLC
|
Delaware
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PKY Fund II Phoenix III, LLC
|
Delaware
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PKY Fund II Phoenix IV, LLC
|
Delaware
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PKY Fund II Phoenix V, LLC
|
Delaware
|
Two Liberty Place, LP
|
Delaware
|
(1)
|
Registration Statement (Form S-3 No. 333-178003) of Parkway Properties, Inc.
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(2)
|
Registration Statement (Form S-3 No. 333-178001) of Parkway Properties, Inc.
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(3)
|
Registration Statement (Form S-3D No. 333-156051) of Parkway Properties, Inc.
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(4)
|
Registration Statement (Form S-8 No. 333-100565) of Parkway Properties, Inc.
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(5)
|
Registration Statement (Form S-8 No. 333-166922) of Parkway Properties, Inc.
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(6)
|
Registration Statement (Form S-8 No. 333-134069) of Parkway Properties, Inc.
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(7)
|
Registration Statement (Form S-8 No. 333-174300) of Parkway Properties, Inc.
|
Consent of Independent Registered Public Accounting Firm
The Board of Directors
Parkway Properties, Inc.
We consent to the incorporation by reference in the registration statements (Nos. 333-178001 and 333-178003) on Form S-3, the registration statements (Nos. 333-100565, 333-115286, 333-166922, 333-134069 and 333-174300) on Form S-8, the registration statements (Nos. 333-88861 and 333-00311) on Form S-8 on Form S-3 and the registration statement (No. 333-156051) on Form S-3D of Parkway Properties, Inc. of our reports dated March 9, 2012, except for notes A, G, and M which are as of March 6, 2013, with respect to the consolidated balance sheet of Parkway Properties, Inc. and subsidiaries as of December 31, 2011, and the related consolidated statements of operations and comprehensive loss, changes in equity, and cash flows for the years ended December 31, 2011 and 2010, and all related financial statement schedules for the years ended December 31, 2011 and 2010, which reports appear in the December 31, 2012 annual report on Form 10-K of Parkway Properties, Inc.
Our report refers to a change in the presentation of comprehensive loss.
/s/ KPMG LLP
Jackson, Mississippi
March 6, 2013
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|
|
|
|
|
|
1.
|
I have reviewed this annual report on Form 10-K of Parkway Properties, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
1.
|
I have reviewed this annual report on Form 10-K of Parkway Properties, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
/s/ James R. Heistand
|
|
James R. Heistand (*)
|
|
President, Chief Executive Officer and Director
|
|
March 6, 2013
|
|
/s/ David R. O'Reilly
|
|
David R. O'Reilly (*)
Executive Vice President,
|
|
Chief Investment Officer and Chief Financial Officer
|
|
March 6, 2013
|
Investment in Office Properties, Acquisitions (Details) (USD $)
|
3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
sqft
|
Sep. 30, 2012
|
Jun. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Sep. 30, 2011
|
Jun. 30, 2011
|
Mar. 31, 2011
|
Dec. 31, 2012
sqft
|
Dec. 31, 2011
|
Dec. 31, 2010
|
Jan. 17, 2013
sqft
|
Mar. 09, 2012
sqft
|
Feb. 10, 2012
sqft
|
Feb. 10, 2012
Minimum [Member]
|
Feb. 10, 2012
Maximum [Member]
|
Dec. 31, 2012
Lease Commissions [Member]
|
Dec. 31, 2012
Lease In Place Value [Member]
|
Dec. 31, 2012
Above Market Leases [Member]
|
Dec. 31, 2012
Below Market Leases [Member]
|
Dec. 31, 2012
Mortgage assumed [Member]
|
Dec. 31, 2012
Other [Member]
|
Dec. 31, 2012
Buildings [Member]
|
Dec. 31, 2012
Tenant Improvements [Member]
|
Jun. 06, 2012
Hearst Tower [Member]
sqft
|
Mar. 06, 2013
Deerwood [Member]
sqft
|
Feb. 20, 2013
Phoenix Tower [Member]
|
Dec. 20, 2012
Phoenix Tower [Member]
sqft
|
Dec. 21, 2012
Tempe Gateway [Member]
sqft
|
Dec. 06, 2012
525 North Tryon [Member]
sqft
|
Dec. 31, 2012
NASCAR Plaza [Member]
sqft
|
Dec. 31, 2012
Westshore Corporate Center [Member]
|
Nov. 15, 2012
Westshore Corporate Center [Member]
sqft
|
Dec. 31, 2012
2012 Acquisitions [Member]
|
Aug. 31, 2012
Fund II [Member]
Hayden Ferry III, IV, V [Member]
sqft
|
Jan. 11, 2012
Fund II [Member]
The Pointe [Member]
sqft
|
Dec. 31, 2012
Houston, TX [Member]
|
Dec. 31, 2012
Charlotte, NC [Member]
|
Dec. 31, 2012
Tampa, FL [Member]
|
Dec. 31, 2012
Phoenix, AZ [Member]
|
|
Investment in Office and Parking Properties [Abstract] | ||||||||||||||||||||||||||||||||||||||||
Number of office and parking properties | 43 | 43 | ||||||||||||||||||||||||||||||||||||||
Number of states in which office and parking properties located | 9 | 9 | ||||||||||||||||||||||||||||||||||||||
Area of real estate property (in square feet) | 11,900,000 | 11,900,000 | 260,000 | 337,000 | 300,000 | 972,000 | 1,000,000 | 626,000 | 251,000 | 402,000 | 390,000 | 170,000 | 21,000 | 252,000 | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Area of real estate property (in square feet) | 11,900,000 | 11,900,000 | 260,000 | 337,000 | 300,000 | 972,000 | 1,000,000 | 626,000 | 251,000 | 402,000 | 390,000 | 170,000 | 21,000 | 252,000 | ||||||||||||||||||||||||||
Cost of entity acquired | $ 760,990,000 | $ 760,990,000 | $ 56,300,000 | $ 86,000,000 | $ 250,000,000 | $ 130,000,000 | $ 123,800,000 | $ 66,100,000 | $ 47,400,000 | $ 99,900,000 | $ 22,700,000 | $ 18,200,000 | $ 46,900,000 | $ 123,750,000 | $ 397,349,000 | $ 69,591,000 | $ 170,300,000 | |||||||||||||||||||||||
Number of parking spaces in parking structure | 2,500 | |||||||||||||||||||||||||||||||||||||||
Ownership interest acquired (in hundredths) | 30.00% | 30.00% | 30.00% | |||||||||||||||||||||||||||||||||||||
Year Constructed | 2009 | 1989 | ||||||||||||||||||||||||||||||||||||||
Non-recourse mortgage loan | 80,000,000 | |||||||||||||||||||||||||||||||||||||||
Mortgage loan maturity date | Mar. 30, 2016 | May 01, 2015 | ||||||||||||||||||||||||||||||||||||||
Mortgage Loan maturity date | May 2012 | |||||||||||||||||||||||||||||||||||||||
Mortgage assumed in a business acquisition | 42,600,000 | 14,500,000 | ||||||||||||||||||||||||||||||||||||||
Note Balance | 42,977,000 | 15,646,000 | ||||||||||||||||||||||||||||||||||||||
Fixed Rate (in hundredths) | 3.90% | 3.40% | 2.50% | |||||||||||||||||||||||||||||||||||||
Interest rate on mortgage (in hundredths) | 1.50% | 1.50% | 4.70% | 5.80% | ||||||||||||||||||||||||||||||||||||
Weighted average interest rate on loans (in hundredths) | 7.10% | |||||||||||||||||||||||||||||||||||||||
Mortgage notes payable | 605,889,000 | 498,012,000 | 605,889,000 | 498,012,000 | ||||||||||||||||||||||||||||||||||||
Equity contribution in a business combination | 10,800,000 | 5,500,000 | 7,000,000 | |||||||||||||||||||||||||||||||||||||
Interest only period of mortgage | 0 years 43 months 0 days | |||||||||||||||||||||||||||||||||||||||
Basis spread on variable rate (in hundredths) | 25000.00% | 35000.00% | ||||||||||||||||||||||||||||||||||||||
Preliminary allocation of purchase price [Abstract] | ||||||||||||||||||||||||||||||||||||||||
Land | 43,600,000 | 43,600,000 | ||||||||||||||||||||||||||||||||||||||
Buildings | 580,616,000 | 580,616,000 | ||||||||||||||||||||||||||||||||||||||
Tenant improvements | 59,698,000 | 59,698,000 | ||||||||||||||||||||||||||||||||||||||
Lease commissions | 21,207,000 | 21,207,000 | ||||||||||||||||||||||||||||||||||||||
Lease in place value | 54,575,000 | 54,575,000 | ||||||||||||||||||||||||||||||||||||||
Above market leases | 14,728,000 | 14,728,000 | ||||||||||||||||||||||||||||||||||||||
Below market leases | (18,979,000) | (18,979,000) | ||||||||||||||||||||||||||||||||||||||
Other | 3,001,000 | 3,001,000 | ||||||||||||||||||||||||||||||||||||||
Mortgage assumed | (58,694,000) | (58,694,000) | ||||||||||||||||||||||||||||||||||||||
Weighted average life | 2 years 8 months 12 days | 6 years 0 months 0 days | 6 years 0 months 0 days | 15 years 0 months 0 days | 6 years 0 months 0 days | 3 years 0 months 0 days | 3 years 0 months 0 days | 40 years 0 months 0 days | 6 years 0 months 0 days | |||||||||||||||||||||||||||||||
Pro forma results of operations [Abstract] | ||||||||||||||||||||||||||||||||||||||||
Pro forma revenues | 274,698,000 | 229,930,000 | ||||||||||||||||||||||||||||||||||||||
Pro forma net loss attributable to common stockholders | (60,544,000) | (162,291,000) | ||||||||||||||||||||||||||||||||||||||
Pro forma basic net loss attributable to common stockholders | $ (1.91) | $ (7.55) | ||||||||||||||||||||||||||||||||||||||
Pro forma diluted net loss attributable to common stockholders | $ (1.91) | $ (7.55) | ||||||||||||||||||||||||||||||||||||||
Revenues | 61,526,000 | 59,589,000 | 54,605,000 | 50,797,000 | 49,457,000 | 48,365,000 | 38,638,000 | 27,727,000 | 226,517,000 | 164,186,000 | 95,200,000 | 32,000,000 | ||||||||||||||||||||||||||||
Net income attributable to common stockholders | $ (51,713,000) | $ (582,000) | $ (948,000) | $ 1,994,000 | $ (59,763,000) | $ (55,738,000) | $ (14,673,000) | $ (6,782,000) | $ (51,249,000) | $ (136,955,000) | $ (8,943,000) | $ 2,400,000 |
Segment Information (Details) (USD $)
|
3 Months Ended | 12 Months Ended | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Sep. 30, 2012
|
Jun. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Sep. 30, 2011
|
Jun. 30, 2011
|
Mar. 31, 2011
|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Income from office and parking properties | $ 206,739,000 | $ 147,290,000 | $ 93,548,000 | |||||||||||||||||||
Management company income | 19,778,000 | 16,896,000 | 1,652,000 | |||||||||||||||||||
Property operating expenses | (80,748,000) | (60,733,000) | (40,408,000) | |||||||||||||||||||
Depreciation and amortization | (81,537,000) | (56,522,000) | (28,496,000) | |||||||||||||||||||
Management company expenses | (17,237,000) | (13,337,000) | (2,756,000) | |||||||||||||||||||
Income tax expense | (118,000) | 7,000 | 11,000 | (161,000) | (6,000) | 174,000 | (224,000) | 0 | (261,000) | (56,000) | (2,000) | |||||||||||
General and administrative expenses | (16,420,000) | (18,805,000) | (15,318,000) | |||||||||||||||||||
Acquisition costs | (2,791,000) | (17,219,000) | (846,000) | |||||||||||||||||||
Interest and other income | 67,000 | 64,000 | 44,000 | 97,000 | 90,000 | 87,000 | 437,000 | 324,000 | 272,000 | 938,000 | 1,487,000 | |||||||||||
Equity in earnings of unconsolidated joint ventures | (8,000) | (14,000) | 44,000 | 35,000 | 0 | 57,000 | 326,000 | |||||||||||||||
Interest expense | (9,033,000) | (8,521,000) | (8,536,000) | (9,244,000) | (8,660,000) | (8,876,000) | (7,668,000) | (6,408,000) | (35,334,000) | (31,612,000) | (20,271,000) | |||||||||||
Adjustment for noncontrolling interest-unit holders | 269,000 | (5,000) | 0 | |||||||||||||||||||
Adjustment for noncontrolling interest - real estate partnerships | 3,317,000 | 85,105,000 | 10,789,000 | |||||||||||||||||||
Income (loss) from discontinued operations | (85,000) | (330,000) | (524,000) | 3,393,000 | (56,279,000) | (131,780,000) | (3,965,000) | (2,790,000) | 2,454,000 | (194,813,000) | (10,881,000) | |||||||||||
Impairment loss on real estate | (9,200,000) | (6,420,000) | 0 | |||||||||||||||||||
Impairment loss on mortgage loan receivable | 0 | (9,235,000) | 0 | |||||||||||||||||||
Impairment loss on management contracts and goodwill | (41,967,000) | 0 | 0 | |||||||||||||||||||
Gain on sale of real estate from discontinued operations | 12,939,000 | 17,825,000 | 8,518,000 | |||||||||||||||||||
Gain on sale of real estate and other assets | 548,000 | 743,000 | 40,000 | |||||||||||||||||||
Change in fair value of contingent consideration | (216,000) | 13,000,000 | 0 | |||||||||||||||||||
Dividends on preferred stock | (2,711,000) | (2,711,000) | (3,721,000) | (2,711,000) | (2,711,000) | (2,711,000) | (2,443,000) | (2,187,000) | (10,843,000) | (10,052,000) | (6,325,000) | |||||||||||
Dividends on convertible preferred stock | (1,011,000) | |||||||||||||||||||||
Net income (loss) attributable to common stockholders | (51,713,000) | (582,000) | (948,000) | 1,994,000 | (59,763,000) | (55,738,000) | (14,673,000) | (6,782,000) | (51,249,000) | (136,955,000) | (8,943,000) | |||||||||||
Depreciation and amortization | 81,537,000 | 56,522,000 | 28,496,000 | |||||||||||||||||||
Depreciation and amortization - discontinued operations | 933,000 | 54,628,000 | 63,815,000 | |||||||||||||||||||
Adjustment for noncontrolling - unit holders | (269,000) | 5,000 | 0 | |||||||||||||||||||
Total assets | 1,906,611,000 | 1,636,311,000 | 1,906,611,000 | 1,636,311,000 | 1,603,682,000 | |||||||||||||||||
Office and parking properties | 1,562,717,000 | 921,937,000 | 1,562,717,000 | 921,937,000 | 1,389,767,000 | |||||||||||||||||
Assets held for sale | 382,789,000 | 382,789,000 | ||||||||||||||||||||
Capital expenditures | 37,506,000 | 58,758,000 | 49,760,000 | |||||||||||||||||||
Office Properties [Member]
|
||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Income from office and parking properties | 206,739,000 | [1] | 147,290,000 | [1] | 93,548,000 | [1] | ||||||||||||||||
Management company income | 0 | 0 | 0 | |||||||||||||||||||
Property operating expenses | (80,748,000) | [2] | (60,733,000) | [2] | (40,408,000) | [2] | ||||||||||||||||
Depreciation and amortization | (81,537,000) | (56,522,000) | (28,496,000) | |||||||||||||||||||
Management company expenses | 0 | 0 | 0 | |||||||||||||||||||
Income tax expense | 0 | 0 | 0 | |||||||||||||||||||
General and administrative expenses | 0 | 0 | 0 | |||||||||||||||||||
Acquisition costs | (2,791,000) | (1,225,000) | (846,000) | |||||||||||||||||||
Interest and other income | 0 | 0 | 0 | |||||||||||||||||||
Equity in earnings of unconsolidated joint ventures | 57,000 | 326,000 | ||||||||||||||||||||
Interest expense | (31,394,000) | [3] | (24,888,000) | [3] | (14,255,000) | [3] | ||||||||||||||||
Adjustment for noncontrolling interest-unit holders | 0 | 0 | ||||||||||||||||||||
Adjustment for noncontrolling interest - real estate partnerships | 3,317,000 | 85,105,000 | 10,789,000 | |||||||||||||||||||
Income (loss) from discontinued operations | 2,454,000 | (194,813,000) | (10,881,000) | |||||||||||||||||||
Impairment loss on real estate | (9,200,000) | (6,420,000) | ||||||||||||||||||||
Impairment loss on mortgage loan receivable | 0 | |||||||||||||||||||||
Impairment loss on management contracts and goodwill | 0 | |||||||||||||||||||||
Gain on sale of real estate from discontinued operations | 12,939,000 | 17,825,000 | 8,518,000 | |||||||||||||||||||
Gain on sale of real estate and other assets | 48,000 | 743,000 | 40,000 | |||||||||||||||||||
Change in fair value of contingent consideration | 0 | 0 | ||||||||||||||||||||
Dividends on preferred stock | 0 | 0 | 0 | |||||||||||||||||||
Dividends on convertible preferred stock | 0 | |||||||||||||||||||||
Net income (loss) attributable to common stockholders | 19,827,000 | (93,581,000) | 18,335,000 | |||||||||||||||||||
Adjustment for noncontrolling - unit holders | 0 | 0 | ||||||||||||||||||||
Total assets | 1,832,493,000 | 1,532,803,000 | 1,832,493,000 | 1,532,803,000 | 1,590,545,000 | |||||||||||||||||
Office and parking properties | 1,562,717,000 | 921,937,000 | 1,562,717,000 | 921,937,000 | 1,389,767,000 | |||||||||||||||||
Assets held for sale | 382,789,000 | 382,789,000 | ||||||||||||||||||||
Capital expenditures | 37,506,000 | [4] | 58,758,000 | [4] | 49,760,000 | [4] | ||||||||||||||||
Unallocated and Other [Member]
|
||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Income from office and parking properties | 0 | 0 | 0 | |||||||||||||||||||
Management company income | 19,778,000 | 16,896,000 | 1,652,000 | |||||||||||||||||||
Property operating expenses | 0 | 0 | 0 | |||||||||||||||||||
Depreciation and amortization | 0 | 0 | 0 | |||||||||||||||||||
Management company expenses | (17,237,000) | (13,337,000) | (2,756,000) | |||||||||||||||||||
Income tax expense | (261,000) | (56,000) | (2,000) | |||||||||||||||||||
General and administrative expenses | (16,420,000) | (18,805,000) | (15,318,000) | |||||||||||||||||||
Acquisition costs | 0 | (15,994,000) | 0 | |||||||||||||||||||
Interest and other income | 272,000 | 938,000 | 1,487,000 | |||||||||||||||||||
Equity in earnings of unconsolidated joint ventures | 0 | 0 | ||||||||||||||||||||
Interest expense | (3,940,000) | [3] | (6,724,000) | [3] | (6,016,000) | [3] | ||||||||||||||||
Adjustment for noncontrolling interest-unit holders | 269,000 | (5,000) | ||||||||||||||||||||
Adjustment for noncontrolling interest - real estate partnerships | 0 | 0 | 0 | |||||||||||||||||||
Income (loss) from discontinued operations | 0 | 0 | 0 | |||||||||||||||||||
Impairment loss on real estate | 0 | 0 | ||||||||||||||||||||
Impairment loss on mortgage loan receivable | (9,235,000) | |||||||||||||||||||||
Impairment loss on management contracts and goodwill | (41,967,000) | |||||||||||||||||||||
Gain on sale of real estate from discontinued operations | 0 | 0 | 0 | |||||||||||||||||||
Gain on sale of real estate and other assets | 500,000 | 0 | 0 | |||||||||||||||||||
Change in fair value of contingent consideration | (216,000) | 13,000,000 | ||||||||||||||||||||
Dividends on preferred stock | (10,843,000) | (10,052,000) | (6,325,000) | |||||||||||||||||||
Dividends on convertible preferred stock | (1,011,000) | |||||||||||||||||||||
Net income (loss) attributable to common stockholders | (71,076,000) | (43,374,000) | (27,278,000) | |||||||||||||||||||
Adjustment for noncontrolling - unit holders | (269,000) | 5,000 | ||||||||||||||||||||
Total assets | 74,118,000 | 103,508,000 | 74,118,000 | 103,508,000 | 13,137,000 | |||||||||||||||||
Office and parking properties | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Assets held for sale | 0 | 0 | ||||||||||||||||||||
Capital expenditures | $ 0 | $ 0 | $ 0 | |||||||||||||||||||
|
Selected Quarterly Financial Data (Unaudited) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Sep. 30, 2012
|
Jun. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Sep. 30, 2011
|
Jun. 30, 2011
|
Mar. 31, 2011
|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Selected Quarterly Financial Data (Unaudited) [Abstract] | |||||||||||
Revenues | $ 61,526 | $ 59,589 | $ 54,605 | $ 50,797 | $ 49,457 | $ 48,365 | $ 38,638 | $ 27,727 | $ 226,517 | $ 164,186 | $ 95,200 |
Expenses | (106,327) | (51,136) | (47,523) | (45,130) | (53,890) | (41,548) | (47,155) | (26,679) | (250,116) | (169,271) | (87,824) |
Operating income (loss) | (44,801) | 8,453 | 7,082 | 5,667 | (4,433) | 6,817 | (8,517) | 1,048 | (23,599) | (5,085) | 7,376 |
Interest and other income | 67 | 64 | 44 | 97 | 90 | 87 | 437 | 324 | 272 | 938 | 1,487 |
Interest expense | (9,033) | (8,521) | (8,536) | (9,244) | (8,660) | (8,876) | (7,668) | (6,408) | (35,334) | (31,612) | (20,271) |
Equity in earnings (loss) of unconsolidated joint ventures | (8) | (14) | 44 | 35 | 0 | 57 | 326 | ||||
Gain on sale of real estate and other assets | 0 | 548 | 0 | 0 | 0 | 743 | 0 | 0 | 48 | 743 | 40 |
Income tax (expense) benefit | (118) | 7 | 11 | (161) | (6) | 174 | (224) | 0 | (261) | (56) | (2) |
Income (loss) from continuing operations | (53,885) | 551 | (1,399) | (3,641) | (13,017) | (1,069) | (15,928) | (5,001) | (58,374) | (35,015) | (11,044) |
Income (loss) from discontinued operations | (85) | (330) | (524) | 3,393 | (56,279) | (131,780) | (3,965) | (2,790) | 2,454 | (194,813) | (10,881) |
Gain on sale of real estate from discontinued operations | 3,172 | 995 | 3,197 | 5,575 | 11,258 | 2,275 | 4,292 | 0 | 12,939 | 17,825 | 8,518 |
Net income (loss) | (50,798) | 1,216 | 1,274 | 5,327 | (58,038) | (130,574) | (15,601) | (7,791) | (42,981) | (212,003) | (13,407) |
Noncontrolling interests | 1,796 | 913 | 1,499 | (622) | 986 | 77,547 | 3,371 | 3,196 | (3,317) | (85,105) | (10,789) |
Net income (loss) attributable to Parkway Properties, Inc. | (49,002) | 2,129 | 2,773 | 4,705 | (57,052) | (53,027) | (12,230) | (4,595) | (39,395) | (126,903) | (2,618) |
Dividends on preferred stock | (2,711) | (2,711) | (3,721) | (2,711) | (2,711) | (2,711) | (2,443) | (2,187) | (10,843) | (10,052) | (6,325) |
Net income (loss) attributable to common stockholders | $ (51,713) | $ (582) | $ (948) | $ 1,994 | $ (59,763) | $ (55,738) | $ (14,673) | $ (6,782) | $ (51,249) | $ (136,955) | $ (8,943) |
Basic: [Abstract] | |||||||||||
Loss from continuing operations attributable to Parkway Properties, Inc. (in dollars per share) | $ (1.23) | $ (0.02) | $ (0.14) | $ (0.17) | $ (0.59) | $ (0.03) | $ (0.78) | $ (0.27) | |||
Discontinued operations (in dollars per share) | $ 0.07 | $ 0 | $ 0.10 | $ 0.26 | $ (2.18) | $ (2.57) | $ 0.10 | $ (0.05) | |||
Basic net loss attributable to Parkway Properties, Inc. (in dollars per share) | $ (1.16) | $ (0.02) | $ (0.04) | $ 0.09 | $ (2.77) | $ (2.59) | $ (0.68) | $ (0.32) | |||
Dividends per common share (in dollars per share) | $ 0.1125 | $ 0.1125 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.375 | $ 0.30 | $ 0.30 |
Diluted: [Abstract] | |||||||||||
Loss from continuing operations attributable to Parkway Properties, Inc. (in dollars per share) | $ (1.23) | $ (0.02) | $ (0.14) | $ (0.17) | $ (0.59) | $ (0.03) | $ (0.78) | $ (0.27) | |||
Discontinued operations (in dollars per share) | $ 0.07 | $ 0 | $ 0.10 | $ 0.26 | $ (2.18) | $ (2.57) | $ 0.10 | $ (0.05) | |||
Diluted net loss attributable to Parkway Properties, Inc. (in dollars per share) | $ (1.16) | $ (0.02) | $ (0.04) | $ 0.09 | $ (2.77) | $ (2.59) | $ (0.68) | $ (0.32) | |||
Weighted average shares outstanding: [Abstract] | |||||||||||
Basic | 44,476 | 36,487 | 23,440 | 21,568 | 21,541 | 21,502 | 21,489 | 21,476 | 31,542 | 21,497 | 21,421 |
Diluted | 44,476 | 36,387 | 21,440 | 21,568 | 21,541 | 21,502 | 21,489 | 21,476 | 31,542 | 21,497 | 21,421 |
Notes Payable, Interest Rate Swaps (Details) (USD $)
|
12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
May 31, 2012
|
Feb. 10, 2012
|
Dec. 31, 2012
Accounts Payable and Other Liabilities [Member]
|
Dec. 31, 2011
Accounts Payable and Other Liabilities [Member]
|
Feb. 10, 2012
Minimum [Member]
|
Feb. 10, 2012
Maximum [Member]
|
Dec. 31, 2012
Swap 1 [Member]
Accounts Payable and Other Liabilities [Member]
|
Dec. 31, 2011
Swap 1 [Member]
Accounts Payable and Other Liabilities [Member]
|
Dec. 31, 2012
Swap 2 [Member]
Accounts Payable and Other Liabilities [Member]
|
Dec. 31, 2011
Swap 2 [Member]
Accounts Payable and Other Liabilities [Member]
|
Dec. 31, 2012
Swap 3 [Member]
Accounts Payable and Other Liabilities [Member]
|
Dec. 31, 2011
Swap 3 [Member]
Accounts Payable and Other Liabilities [Member]
|
Dec. 31, 2012
Swap 4 [Member]
Accounts Payable and Other Liabilities [Member]
|
Dec. 31, 2011
Swap 4 [Member]
Accounts Payable and Other Liabilities [Member]
|
Dec. 31, 2012
Swap 5 [Member]
Accounts Payable and Other Liabilities [Member]
|
Dec. 31, 2011
Swap 5 [Member]
Accounts Payable and Other Liabilities [Member]
|
Dec. 31, 2012
Swap 6 [Member]
Accounts Payable and Other Liabilities [Member]
|
Dec. 31, 2011
Swap 6 [Member]
Accounts Payable and Other Liabilities [Member]
|
Dec. 31, 2012
Swap 7 [Member]
Accounts Payable and Other Liabilities [Member]
|
Dec. 31, 2011
Swap 7 [Member]
Accounts Payable and Other Liabilities [Member]
|
Dec. 31, 2012
Swap 8 [Member]
Accounts Payable and Other Liabilities [Member]
|
Dec. 31, 2011
Swap 8 [Member]
Accounts Payable and Other Liabilities [Member]
|
Dec. 31, 2012
Swap 9 [Member]
Accounts Payable and Other Liabilities [Member]
|
Dec. 31, 2011
Swap 9 [Member]
Accounts Payable and Other Liabilities [Member]
|
Dec. 31, 2012
Swap 10 [Member]
Accounts Payable and Other Liabilities [Member]
|
Dec. 31, 2011
Swap 10 [Member]
Accounts Payable and Other Liabilities [Member]
|
|
Summary of interest rate hedge contracts [Abstract] | |||||||||||||||||||||||||||
Notional Amount | $ 12,088,000 | $ 30,000,000 | $ 50,000,000 | $ 75,000,000 | $ 33,875,000 | $ 22,000,000 | $ 48,125,000 | $ 9,250,000 | $ 22,500,000 | $ 22,100,000 | |||||||||||||||||
Maturity Date | Nov. 18, 2015 | Feb. 01, 2016 | Sep. 28, 2017 | Sep. 28, 2017 | Nov. 18, 2017 | Jan. 25, 2018 | Jan. 25, 2018 | Sep. 30, 2018 | Oct. 08, 2018 | Nov. 18, 2018 | |||||||||||||||||
Reference Rate | 1-month LIBOR | 1-month LIBOR | 1-month LIBOR | 1-month LIBOR | 1-month LIBOR | 1-month LIBOR | 1-month LIBOR | 1-month LIBOR | 1-month LIBOR | 1-month LIBOR | |||||||||||||||||
Fixed Rate (in hundredths) | 5.80% | 4.10% | 2.30% | 2.20% | 2.20% | 4.70% | 4.50% | 5.00% | 5.30% | 5.40% | 5.00% | ||||||||||||||||
Fair Value Liability | (16,285,000) | (11,134,000) | (582,000) | (581,000) | (1,787,000) | 0 | (43,000) | 0 | (65,000) | 0 | (3,312,000) | (2,862,000) | (1,923,000) | (1,548,000) | (1,581,000) | 0 | (1,218,000) | (1,083,000) | (3,135,000) | (2,826,000) | (2,639,000) | (2,234,000) | |||||
Variable rate, minimum (in hundredths) | 4.00% | ||||||||||||||||||||||||||
Variable rate, maximum (in hundredths) | 5.00% | ||||||||||||||||||||||||||
Derivative interest rate (in hundredths) | 5.80% | 4.10% | 2.30% | 2.20% | 2.20% | 4.70% | 4.50% | 5.00% | 5.30% | 5.40% | 5.00% | ||||||||||||||||
Notional Amount of Swap assumed on sale | $ 23,500,000 | ||||||||||||||||||||||||||
Rate at which reference rate is fixed (in hundredths) | 1.50% | ||||||||||||||||||||||||||
Basis spread on variable rate (in hundredths) | 25000.00% | 35000.00% |
Other Matters (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Other Matters [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information and Schedule of Non-Cash Investing and Financing Activity | Supplemental Cash Flow Information and Schedule of Non-Cash Investing and Financing Activity
|
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Rents Receivable and Other Assets | Rents Receivable and Other Assets
|
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Components of intangible assets | Intangible Assets The following table reflects the portion of the purchase price of office properties allocated to intangible assets, as discussed in "Note A". The portion of purchase price allocated to below market lease value and the related accumulated amortization is reflected in the Schedule of Accounts Payable and Other Liabilities within this note.
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Components of Accounts Payable and Other Liabilities | Accounts Payable and Other Liabilities
|
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | $ 605,889 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 159,039 | |||||||
Building and Improvements | 1,369,493 | |||||||
Subsequent Capitalized Costs | 234,034 | |||||||
Total Real Estate | 1,762,566 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 159,039 | |||||||
Building and Improvements | 1,603,527 | |||||||
Accumulated Depreciation | 199,849 | |||||||
Net Book Value of Real Estate | 1,562,717 | 921,937 | 1,389,767 | |||||
Depreciable Lives | [1] | |||||||
Real Estate [Roll Forward] | ||||||||
Balance at beginning of year | 1,084,060 | 1,755,919 | 1,738,649 | |||||
Additions [Abstract] | ||||||||
Acquisitions and improvements | 710,642 | 535,249 | 64,968 | |||||
Impairment on land held for development | 0 | (609) | 0 | |||||
Real estate sold, disposed, impaired or held for sale | (32,136) | (1,206,499) | (47,698) | |||||
Balance at close of year | 1,762,566 | 1,084,060 | 1,755,919 | |||||
Accumulated Depreciation [Roll Forward] | ||||||||
Balance at beginning of year | 162,123 | 366,152 | 336,759 | |||||
Depreciation expense | 50,421 | 32,971 | 19,859 | |||||
Depreciation expense - discontinued operations | 316 | 43,578 | 47,788 | |||||
Real estate sold, disposed, impaired or held for sale | (13,011) | (280,578) | (38,254) | |||||
Balance at close of year | 199,849 | 162,123 | 366,152 | |||||
ARIZONA | Hayden Ferry Lakeside I [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 22,000 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 2,871 | |||||||
Building and Improvements | 30,430 | |||||||
Subsequent Capitalized Costs | 5,565 | |||||||
Total Real Estate | 38,866 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 2,871 | |||||||
Building and Improvements | 35,995 | |||||||
Accumulated Depreciation | 2,443 | |||||||
Net Book Value of Real Estate | 36,423 | |||||||
Year Acquired | 2011 | |||||||
Year Constructed | 2002 | |||||||
ARIZONA | Hayden Ferry Lakeside II [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 48,125 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 3,612 | |||||||
Building and Improvements | 69,248 | |||||||
Subsequent Capitalized Costs | 4,301 | |||||||
Total Real Estate | 77,161 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 3,612 | |||||||
Building and Improvements | 73,549 | |||||||
Accumulated Depreciation | 2,617 | |||||||
Net Book Value of Real Estate | 74,544 | |||||||
Year Acquired | 2012 | |||||||
Year Constructed | 2007 | |||||||
Depreciable Lives | [1] | |||||||
ARIZONA | Hayden Ferry Lakeside III, IV and V [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 0 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 9,046 | |||||||
Building and Improvements | 8,561 | |||||||
Subsequent Capitalized Costs | 405 | |||||||
Total Real Estate | 18,012 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 9,046 | |||||||
Building and Improvements | 8,966 | |||||||
Accumulated Depreciation | 90 | |||||||
Net Book Value of Real Estate | 17,922 | |||||||
Year Acquired | 2012 | |||||||
Year Constructed | 2007 | |||||||
Depreciable Lives | [1] | |||||||
ARIZONA | Squaw Peak Corporate Center [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 0 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 5,800 | |||||||
Building and Improvements | 35,144 | |||||||
Subsequent Capitalized Costs | 6,966 | |||||||
Total Real Estate | 47,910 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 5,800 | |||||||
Building and Improvements | 42,110 | |||||||
Accumulated Depreciation | 11,007 | |||||||
Net Book Value of Real Estate | 36,903 | |||||||
Year Acquired | 2004 | |||||||
Depreciable Lives | [1] | |||||||
ARIZONA | Squaw Peak Corporate Center [Member] | Start [Member]
|
||||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Year Constructed | 1999 | |||||||
ARIZONA | Squaw Peak Corporate Center [Member] | End [Member]
|
||||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Year Constructed | 2000 | |||||||
ARIZONA | Mesa Corporate Center [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 0 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 3,353 | |||||||
Building and Improvements | 15,243 | |||||||
Subsequent Capitalized Costs | 1,290 | |||||||
Total Real Estate | 19,886 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 3,353 | |||||||
Building and Improvements | 16,533 | |||||||
Accumulated Depreciation | 3,636 | |||||||
Net Book Value of Real Estate | 16,250 | |||||||
Year Acquired | 2005 | |||||||
Year Constructed | 2000 | |||||||
Depreciable Lives | [1] | |||||||
ARIZONA | Tempe Gateway [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 0 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 6,937 | |||||||
Building and Improvements | 46,170 | |||||||
Subsequent Capitalized Costs | 6,164 | |||||||
Total Real Estate | 59,271 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 6,937 | |||||||
Building and Improvements | 52,334 | |||||||
Accumulated Depreciation | 2 | |||||||
Net Book Value of Real Estate | 59,269 | |||||||
Year Acquired | 2012 | |||||||
Year Constructed | 2009 | |||||||
Depreciable Lives | [1] | |||||||
FLORIDA | Hillsboro Center V [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 9,412 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 1,325 | |||||||
Building and Improvements | 12,249 | |||||||
Subsequent Capitalized Costs | 3,655 | |||||||
Total Real Estate | 17,229 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 1,325 | |||||||
Building and Improvements | 15,904 | |||||||
Accumulated Depreciation | 6,611 | |||||||
Net Book Value of Real Estate | 10,618 | |||||||
Year Acquired | 1998 | |||||||
Year Constructed | 1985 | |||||||
Depreciable Lives | [1] | |||||||
FLORIDA | Hillsboro Center I-IV [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 6,417 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 1,129 | |||||||
Building and Improvements | 7,734 | |||||||
Subsequent Capitalized Costs | 2,837 | |||||||
Total Real Estate | 11,700 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 1,129 | |||||||
Building and Improvements | 10,571 | |||||||
Accumulated Depreciation | 4,083 | |||||||
Net Book Value of Real Estate | 7,617 | |||||||
Year Acquired | 1998 | |||||||
Year Constructed | 1985 | |||||||
Depreciable Lives | [1] | |||||||
FLORIDA | 245 Riverside [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 9,250 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 6,556 | |||||||
Building and Improvements | 8,050 | |||||||
Subsequent Capitalized Costs | 1,305 | |||||||
Total Real Estate | 15,911 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 6,556 | |||||||
Building and Improvements | 9,355 | |||||||
Accumulated Depreciation | 601 | |||||||
Net Book Value of Real Estate | 15,310 | |||||||
Year Acquired | 2011 | |||||||
Year Constructed | 2003 | |||||||
Depreciable Lives | [1] | |||||||
FLORIDA | Stein Mart Building [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 11,517 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 1,653 | |||||||
Building and Improvements | 16,636 | |||||||
Subsequent Capitalized Costs | 4,932 | |||||||
Total Real Estate | 23,221 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 1,653 | |||||||
Building and Improvements | 21,568 | |||||||
Accumulated Depreciation | 6,270 | |||||||
Net Book Value of Real Estate | 16,951 | |||||||
Year Acquired | 2005 | |||||||
Year Constructed | 1985 | |||||||
Depreciable Lives | [1] | |||||||
FLORIDA | Riverplace South [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 0 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 2,316 | |||||||
Building and Improvements | 5,412 | |||||||
Subsequent Capitalized Costs | 2,938 | |||||||
Total Real Estate | 10,666 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 2,316 | |||||||
Building and Improvements | 8,350 | |||||||
Accumulated Depreciation | 2,924 | |||||||
Net Book Value of Real Estate | 7,742 | |||||||
Year Acquired | 2005 | |||||||
Year Constructed | 1981 | |||||||
Depreciable Lives | [1] | |||||||
FLORIDA | Westshore Corporate Center [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 15,646 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 0 | |||||||
Building and Improvements | 17,532 | |||||||
Subsequent Capitalized Costs | 2,219 | |||||||
Total Real Estate | 19,751 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 0 | |||||||
Building and Improvements | 19,751 | |||||||
Accumulated Depreciation | 161 | |||||||
Net Book Value of Real Estate | 19,590 | |||||||
Year Acquired | 2012 | |||||||
Year Constructed | 1988 | |||||||
Depreciable Lives | [1] | |||||||
FLORIDA | Bank of America Center [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 33,875 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 8,882 | |||||||
Building and Improvements | 38,598 | |||||||
Subsequent Capitalized Costs | 7,204 | |||||||
Total Real Estate | 54,684 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 8,882 | |||||||
Building and Improvements | 45,802 | |||||||
Accumulated Depreciation | 3,311 | |||||||
Net Book Value of Real Estate | 51,373 | |||||||
Year Acquired | 2011 | |||||||
Year Constructed | 1987 | |||||||
Depreciable Lives | [1] | |||||||
FLORIDA | Citrus Center [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 22,034 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 4,000 | |||||||
Building and Improvements | 26,712 | |||||||
Subsequent Capitalized Costs | 7,243 | |||||||
Total Real Estate | 37,955 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 4,000 | |||||||
Building and Improvements | 33,955 | |||||||
Accumulated Depreciation | 10,170 | |||||||
Net Book Value of Real Estate | 27,785 | |||||||
Year Acquired | 2003 | |||||||
Year Constructed | 1971 | |||||||
Depreciable Lives | [1] | |||||||
FLORIDA | Corporate Center Four [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 22,500 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 0 | |||||||
Building and Improvements | 31,775 | |||||||
Subsequent Capitalized Costs | 7,803 | |||||||
Total Real Estate | 39,578 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 0 | |||||||
Building and Improvements | 39,578 | |||||||
Accumulated Depreciation | 2,897 | |||||||
Net Book Value of Real Estate | 36,681 | |||||||
Year Acquired | 2011 | |||||||
Year Constructed | 2008 | |||||||
Depreciable Lives | [1] | |||||||
FLORIDA | Cypress Center I - III [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 12,088 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 4,710 | |||||||
Building and Improvements | 12,180 | |||||||
Subsequent Capitalized Costs | 4,169 | |||||||
Total Real Estate | 21,059 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 4,710 | |||||||
Building and Improvements | 16,349 | |||||||
Accumulated Depreciation | 2,183 | |||||||
Net Book Value of Real Estate | 18,876 | |||||||
Year Acquired | 2011 | |||||||
Year Constructed | 1982 | |||||||
Depreciable Lives | [1] | |||||||
FLORIDA | The Pointe [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 23,500 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 5,293 | |||||||
Building and Improvements | 30,836 | |||||||
Subsequent Capitalized Costs | 4,518 | |||||||
Total Real Estate | 40,647 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 5,293 | |||||||
Building and Improvements | 35,354 | |||||||
Accumulated Depreciation | 1,540 | |||||||
Net Book Value of Real Estate | 39,107 | |||||||
Year Acquired | 2012 | |||||||
Year Constructed | 1982 | |||||||
Depreciable Lives | [1] | |||||||
GEORGIA | Lakewood II [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 0 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 1,195 | |||||||
Building and Improvements | 575 | |||||||
Subsequent Capitalized Costs | 1,216 | |||||||
Total Real Estate | 2,986 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 1,195 | |||||||
Building and Improvements | 1,791 | |||||||
Accumulated Depreciation | 193 | |||||||
Net Book Value of Real Estate | 2,793 | |||||||
Year Acquired | 2010 | |||||||
Year Constructed | 1986 | |||||||
Depreciable Lives | [1] | |||||||
GEORGIA | 3344 Peachtree [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 84,733 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 7,472 | |||||||
Building and Improvements | 127,583 | |||||||
Subsequent Capitalized Costs | 10,468 | |||||||
Total Real Estate | 145,523 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 7,472 | |||||||
Building and Improvements | 138,051 | |||||||
Accumulated Depreciation | 9,232 | |||||||
Net Book Value of Real Estate | 136,291 | |||||||
Year Acquired | 2011 | |||||||
Year Constructed | 2008 | |||||||
Depreciable Lives | [1] | |||||||
GEORGIA | Two Ravinia Drive [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 22,100 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 3,187 | |||||||
Building and Improvements | 32,948 | |||||||
Subsequent Capitalized Costs | 7,493 | |||||||
Total Real Estate | 43,628 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 3,187 | |||||||
Building and Improvements | 40,441 | |||||||
Accumulated Depreciation | 3,154 | |||||||
Net Book Value of Real Estate | 40,474 | |||||||
Year Acquired | 2011 | |||||||
Year Constructed | 1987 | |||||||
Depreciable Lives | [1] | |||||||
GEORGIA | Waterstone [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 0 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 859 | |||||||
Building and Improvements | 7,207 | |||||||
Subsequent Capitalized Costs | 1,538 | |||||||
Total Real Estate | 9,604 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 859 | |||||||
Building and Improvements | 8,745 | |||||||
Accumulated Depreciation | 3,967 | |||||||
Net Book Value of Real Estate | 5,637 | |||||||
Year Acquired | 1995 | |||||||
Year Constructed | 1987 | |||||||
Depreciable Lives | [1] | |||||||
GEORGIA | Meridian [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 0 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 994 | |||||||
Building and Improvements | 9,547 | |||||||
Subsequent Capitalized Costs | 3,467 | |||||||
Total Real Estate | 14,008 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 994 | |||||||
Building and Improvements | 13,014 | |||||||
Accumulated Depreciation | 5,762 | |||||||
Net Book Value of Real Estate | 8,246 | |||||||
Year Acquired | 1997 | |||||||
Year Constructed | 1985 | |||||||
Depreciable Lives | [1] | |||||||
GEORGIA | Peachtree Dunwoody Pavilion [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 26,953 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 9,373 | |||||||
Building and Improvements | 24,579 | |||||||
Subsequent Capitalized Costs | 7,922 | |||||||
Total Real Estate | 41,874 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 9,373 | |||||||
Building and Improvements | 32,501 | |||||||
Accumulated Depreciation | 8,236 | |||||||
Net Book Value of Real Estate | 33,638 | |||||||
Year Acquired | 2003 | |||||||
Depreciable Lives | [1] | |||||||
GEORGIA | Peachtree Dunwoody Pavilion [Member] | Start [Member]
|
||||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Year Constructed | 1976 | |||||||
GEORGIA | Peachtree Dunwoody Pavilion [Member] | End [Member]
|
||||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Year Constructed | 1980 | |||||||
GEORGIA | Capital City Plaza [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 33,489 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 3,625 | |||||||
Building and Improvements | 57,218 | |||||||
Subsequent Capitalized Costs | 4,796 | |||||||
Total Real Estate | 65,639 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 3,625 | |||||||
Building and Improvements | 62,014 | |||||||
Accumulated Depreciation | 14,614 | |||||||
Net Book Value of Real Estate | 51,025 | |||||||
Year Acquired | 2004 | |||||||
Year Constructed | 1989 | |||||||
Depreciable Lives | [1] | |||||||
MISSISSIPPI | City Centre [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 0 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 267 | |||||||
Building and Improvements | 1,676 | |||||||
Subsequent Capitalized Costs | 5,949 | |||||||
Total Real Estate | 7,892 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 267 | |||||||
Building and Improvements | 7,625 | |||||||
Accumulated Depreciation | 0 | |||||||
Net Book Value of Real Estate | 7,892 | |||||||
Year Acquired | 1995 | |||||||
Depreciable Lives | [1] | |||||||
MISSISSIPPI | City Centre [Member] | Second Major Renovation [Member]
|
||||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Year Constructed | 2005 | [2] | ||||||
MISSISSIPPI | City Centre [Member] | First Major Renovation [Member]
|
||||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Year Constructed | 1987 | [2] | ||||||
NORTH CAROLINA | Carmel Crossing [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 10,000 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 4,541 | |||||||
Building and Improvements | 13,340 | |||||||
Subsequent Capitalized Costs | 4,430 | |||||||
Total Real Estate | 22,311 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 4,541 | |||||||
Building and Improvements | 17,770 | |||||||
Accumulated Depreciation | 2,386 | |||||||
Net Book Value of Real Estate | 19,925 | |||||||
Year Acquired | 2010 | |||||||
Year Constructed | 1995 | |||||||
Depreciable Lives | [1] | |||||||
NORTH CAROLINA | Hearst Tower [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 0 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 4,417 | |||||||
Building and Improvements | 200,287 | |||||||
Subsequent Capitalized Costs | 19,923 | |||||||
Total Real Estate | 224,627 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 4,417 | |||||||
Building and Improvements | 220,210 | |||||||
Accumulated Depreciation | 4,614 | |||||||
Net Book Value of Real Estate | 220,013 | |||||||
Year Acquired | 2012 | |||||||
Year Constructed | 2002 | |||||||
Depreciable Lives | [1] | |||||||
NORTH CAROLINA | 525 North Tryon [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 0 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 5,108 | |||||||
Building and Improvements | 34,103 | |||||||
Subsequent Capitalized Costs | 6,422 | |||||||
Total Real Estate | 45,633 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 5,108 | |||||||
Building and Improvements | 40,525 | |||||||
Accumulated Depreciation | 188 | |||||||
Net Book Value of Real Estate | 45,445 | |||||||
Year Acquired | 2012 | |||||||
Year Constructed | 1998 | |||||||
Depreciable Lives | [1] | |||||||
NORTH CAROLINA | NASCAR Plaza [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 42,977 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 0 | |||||||
Building and Improvements | 76,790 | |||||||
Subsequent Capitalized Costs | 10,560 | |||||||
Total Real Estate | 87,350 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 0 | |||||||
Building and Improvements | 87,350 | |||||||
Accumulated Depreciation | 2 | |||||||
Net Book Value of Real Estate | 87,348 | |||||||
Year Acquired | 2012 | |||||||
Year Constructed | 2009 | |||||||
Depreciable Lives | [1] | |||||||
PENNSYLVANIA | Two Liberty Place [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 90,200 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 32,587 | |||||||
Building and Improvements | 97,593 | |||||||
Subsequent Capitalized Costs | 17,140 | |||||||
Total Real Estate | 147,320 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 32,587 | |||||||
Building and Improvements | 114,733 | |||||||
Accumulated Depreciation | 8,144 | |||||||
Net Book Value of Real Estate | 139,176 | |||||||
Year Acquired | 2011 | |||||||
Year Constructed | 1990 | |||||||
Depreciable Lives | [1] | |||||||
SOUTH CAROLINA | Atrium at Stoneridge [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 0 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 155 | |||||||
Building and Improvements | 1,388 | |||||||
Subsequent Capitalized Costs | 1,739 | |||||||
Total Real Estate | 3,282 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 155 | |||||||
Building and Improvements | 3,127 | |||||||
Accumulated Depreciation | 1,086 | |||||||
Net Book Value of Real Estate | 2,196 | |||||||
Year Acquired | 1998 | |||||||
Year Constructed | 1986 | |||||||
Depreciable Lives | [1] | |||||||
TENNESSEE | Morgan Keegan Tower [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 10,419 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 0 | |||||||
Building and Improvements | 18,588 | |||||||
Subsequent Capitalized Costs | 4,236 | |||||||
Total Real Estate | 22,824 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 0 | |||||||
Building and Improvements | 22,824 | |||||||
Accumulated Depreciation | 826 | |||||||
Net Book Value of Real Estate | 21,998 | |||||||
Year Acquired | 1997 | |||||||
Year Constructed | 1985 | |||||||
Depreciable Lives | [1] | |||||||
TENNESSEE | Bank of America Plaza [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 0 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 1,464 | |||||||
Building and Improvements | 28,712 | |||||||
Subsequent Capitalized Costs | 11,700 | |||||||
Total Real Estate | 41,876 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 1,464 | |||||||
Building and Improvements | 40,412 | |||||||
Accumulated Depreciation | 14,407 | |||||||
Net Book Value of Real Estate | 27,469 | |||||||
Year Acquired | 2001 | |||||||
Year Constructed | 1977 | |||||||
Depreciable Lives | [1] | |||||||
TEXAS | 400 North Belt [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 0 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 419 | |||||||
Building and Improvements | 10,021 | |||||||
Subsequent Capitalized Costs | 3,841 | |||||||
Total Real Estate | 14,281 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 419 | |||||||
Building and Improvements | 13,862 | |||||||
Accumulated Depreciation | 5,162 | |||||||
Net Book Value of Real Estate | 9,119 | |||||||
Year Acquired | 1996 | |||||||
Year Constructed | 1982 | |||||||
Depreciable Lives | [1] | |||||||
TEXAS | Woodbranch [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 0 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 303 | |||||||
Building and Improvements | 3,805 | |||||||
Subsequent Capitalized Costs | 2,931 | |||||||
Total Real Estate | 7,039 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 303 | |||||||
Building and Improvements | 6,736 | |||||||
Accumulated Depreciation | 3,179 | |||||||
Net Book Value of Real Estate | 3,860 | |||||||
Year Acquired | 1996 | |||||||
Year Constructed | 1982 | |||||||
Depreciable Lives | [1] | |||||||
TEXAS | Honeywell [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 0 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 856 | |||||||
Building and Improvements | 15,235 | |||||||
Subsequent Capitalized Costs | 4,360 | |||||||
Total Real Estate | 20,451 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 856 | |||||||
Building and Improvements | 19,595 | |||||||
Accumulated Depreciation | 7,093 | |||||||
Net Book Value of Real Estate | 13,358 | |||||||
Year Acquired | 1997 | |||||||
Year Constructed | 1983 | |||||||
Depreciable Lives | [1] | |||||||
TEXAS | Schlumberger [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 0 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 1,013 | |||||||
Building and Improvements | 11,102 | |||||||
Subsequent Capitalized Costs | 4,629 | |||||||
Total Real Estate | 16,744 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 1,013 | |||||||
Building and Improvements | 15,731 | |||||||
Accumulated Depreciation | 7,747 | |||||||
Net Book Value of Real Estate | 8,997 | |||||||
Year Acquired | 1998 | |||||||
Year Constructed | 1983 | |||||||
Depreciable Lives | [1] | |||||||
TEXAS | One Commerce Green [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 17,968 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 489 | |||||||
Building and Improvements | 37,307 | |||||||
Subsequent Capitalized Costs | 5,751 | |||||||
Total Real Estate | 43,547 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 489 | |||||||
Building and Improvements | 43,058 | |||||||
Accumulated Depreciation | 17,871 | |||||||
Net Book Value of Real Estate | 25,676 | |||||||
Year Acquired | 1998 | |||||||
Year Constructed | 1983 | |||||||
Depreciable Lives | [1] | |||||||
TEXAS | Comerica Bank Building [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 12,834 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 1,921 | |||||||
Building and Improvements | 21,222 | |||||||
Subsequent Capitalized Costs | 3,526 | |||||||
Total Real Estate | 26,669 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 1,921 | |||||||
Building and Improvements | 24,748 | |||||||
Accumulated Depreciation | 9,765 | |||||||
Net Book Value of Real Estate | 16,904 | |||||||
Year Acquired | 1998 | |||||||
Year Constructed | 1983 | |||||||
Depreciable Lives | [1] | |||||||
TEXAS | 550 Greens Parkway [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 0 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 1,006 | |||||||
Building and Improvements | 8,061 | |||||||
Subsequent Capitalized Costs | 440 | |||||||
Total Real Estate | 9,507 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 1,006 | |||||||
Building and Improvements | 8,501 | |||||||
Accumulated Depreciation | 2,632 | |||||||
Net Book Value of Real Estate | 6,875 | |||||||
Year Acquired | 2001 | |||||||
Year Constructed | 1999 | |||||||
Depreciable Lives | [1] | |||||||
TEXAS | 5300 Memorial Building [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 11,387 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 682 | |||||||
Building and Improvements | 11,744 | |||||||
Subsequent Capitalized Costs | 3,643 | |||||||
Total Real Estate | 16,069 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 682 | |||||||
Building and Improvements | 15,387 | |||||||
Accumulated Depreciation | 5,152 | |||||||
Net Book Value of Real Estate | 10,917 | |||||||
Year Acquired | 2002 | |||||||
Year Constructed | 1982 | |||||||
Depreciable Lives | [1] | |||||||
TEXAS | Town and Country [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 6,465 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 436 | |||||||
Building and Improvements | 8,205 | |||||||
Subsequent Capitalized Costs | 4,170 | |||||||
Total Real Estate | 12,811 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 436 | |||||||
Building and Improvements | 12,375 | |||||||
Accumulated Depreciation | 3,889 | |||||||
Net Book Value of Real Estate | 8,922 | |||||||
Year Acquired | 2002 | |||||||
Year Constructed | 1982 | |||||||
Depreciable Lives | [1] | |||||||
TEXAS | Phoenix Tower [Member]
|
||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||
Encumbrances | 0 | |||||||
Initial Cost to the Company [Abstract] | ||||||||
Land | 9,187 | |||||||
Building and Improvements | 98,147 | |||||||
Subsequent Capitalized Costs | 8,230 | |||||||
Total Real Estate | 115,564 | |||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Land | 9,187 | |||||||
Building and Improvements | 106,377 | |||||||
Accumulated Depreciation | 2 | |||||||
Net Book Value of Real Estate | $ 115,562 | |||||||
Year Acquired | 2012 | |||||||
Year Constructed | 1984 | |||||||
Depreciable Lives | [1] | |||||||
TEXAS | Phoenix Tower [Member] | First Major Renovation [Member]
|
||||||||
Gross Amounts at Which Carried at Close of Period [Abstract] | ||||||||
Year Constructed | 2011 | [2] | ||||||
|
Summary of Significant Accounting Policies (Policies)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | Basis of Presentation and Principles of Consolidation The accompanying financial statements are prepared following U.S. generally accepted accounting principles ("GAAP") and the requirements of the Securities and Exchange Commission ("SEC"). The consolidated financial statements include the accounts of Parkway Properties, Inc. ("Parkway" or "the Company"), its wholly-owned subsidiaries and joint ventures in which the Company has a controlling interest. The other partners' equity interests in the consolidated joint ventures are reflected as noncontrolling interests in the consolidated financial statements. Parkway also consolidates subsidiaries where the entity is a variable interest entity ("VIE") and Parkway is the primary beneficiary and has the power to direct the activities of the VIE and has the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. At December 31, 2012 and 2011, Parkway did not have any VIEs that required consolidation. All significant intercompany transactions and accounts have been eliminated in the accompanying financial statements. The Company also consolidates certain joint ventures where it exercises significant control over major operating and management decisions, or where the Company is the sole general partner and the limited partners do not possess kick-out rights or other substantive participating rights. The equity method of accounting is used for those joint ventures that do not meet the criteria for consolidation and where Parkway exercises significant influence but does not control these joint ventures. |
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Business [Policy Text Block] | Business The Company's operations are exclusively in the real estate industry, principally the operation, leasing, acquisition and ownership of office buildings. |
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Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although the Company believes the assumptions and estimates made are reasonable and appropriate, as discussed in the applicable sections throughout these consolidated financial statements, different assumptions and estimates could materially impact reported results. The current economic environment has increased the degree of uncertainty inherent in these estimates and assumptions, therefore, changes in market conditions could impact the Company's future operating results. The Company's most significant estimates relate to impairments on real estate and other assets and purchase price allocations. |
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Real Estate Properties | Real Estate Properties Real estate properties are carried at cost less accumulated depreciation. Cost includes the carrying amount of the Company's investment plus any additional consideration paid, liabilities assumed, and improvements made subsequent to acquisition. Depreciation of buildings and building improvements is computed using the straight-line method over the estimated useful lives of the assets. Depreciation of tenant improvements, including personal property, is computed using the straight-line method over the lesser of useful life or the term of the lease involved. Maintenance and repair expenses are charged to expense as incurred. Balances of major classes of depreciable assets (in thousands) and their respective estimated useful lives are:
Depreciation expense, including amounts recorded in discontinued operations, related to these assets of $50.7 million, $76.5 million, and $67.4 million was recognized in 2012, 2011 and 2010, respectively. The Company evaluates its real estate assets upon occurrence of significant adverse changes in its operations to assess whether any impairment indicators are present that affect the recovery of the carrying amount. The carrying amount includes the net book value of tangible and intangible assets and liabilities. Real estate assets are classified as held for sale or held and used. Parkway records assets held for sale at the lower of carrying amount or fair value less cost to sell. With respect to assets classified as held and used, Parkway recognizes an impairment loss if the carrying amount is not recoverable and exceeds the sum of undiscounted future cash flows expected to result from the use and eventual disposition of the asset. The cash flow and fair value estimates are based on assumptions about employing the asset for its remaining useful life. Factors considered in projecting future cash flows include, but are not limited to: existing leases, future leasing and terminations, market rental rates, capital improvements, tenant improvements, leasing commissions, inflation and other known variables. This market information is considered a Level 3 input as defined by Accounting Standards Certification ("ASC") 820, "Fair Value Measurements and Disclosures," ("ASC 820"). Upon impairment, Parkway recognizes an impairment loss to reduce the carrying value of the real estate asset to the estimate of its fair value. During the year ended December 31, 2012, the Company recognized an impairment loss on real estate of $9.2 million in connection with two assets in Jackson, Mississippi and Columbia, South Carolina. The Company recognizes gains and losses from sales of real estate upon the realization at closing of the transfer of rights of ownership to the purchaser, receipt from the purchaser of an adequate cash down payment and adequate continuing investment by the purchaser. The Company classifies certain assets as held for sale based on management having the authority and intent of entering into commitments for sale transactions to close in the next twelve months. The Company considers an office property as held for sale once it has executed a contract for sale, allowed the buyer to complete its due diligence review and received a substantial non-refundable deposit. Until a buyer has completed its due diligence review of the asset, necessary approvals have been received and substantive conditions to the buyer's obligation to perform have been satisfied, the Company does not consider a sale to be probable. When the Company identifies an asset as held for sale, it estimates the net realizable value of such asset and discontinues recording depreciation on the asset. The Company records assets held for sale at the lower of carrying amount or fair value less cost to sell. Land available for sale, which consists of 12 acres of land in New Orleans, Louisiana, is carried at cost and is subject to evaluation for impairment. |
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Purchase Price Allocation | Purchase Price Allocation Parkway allocates the purchase price of real estate to tangible and intangible assets and liabilities based on fair values. Tangible assets consist of land, building, garage, building improvements and tenant improvements. Intangible assets and liabilities consist of the value of above and below market leases, lease costs, the value of in-place leases, customer relationships and any value attributable to above or below market debt assumed with the acquisition. The Company may engage independent third-party appraisers to perform the valuations used to determine the fair value of these identifiable tangible and intangible assets. These valuations and appraisals use commonly employed valuation techniques, such as discounted cash flow analyses. Factors considered in these analyses include an estimate of carrying costs during hypothetical expected lease-up periods considering current market conditions and costs to execute similar leases. Parkway also considers information obtained about each property as a result of its pre-acquisition due diligence, marketing and leasing activities in estimating the fair value of the tangible and intangible assets acquired. In estimating carrying costs, the Company includes real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up periods depending on specific local market conditions and depending on the type of property acquired. Additionally, Parkway estimates costs to execute similar leases including leasing commissions, legal and other related expenses to the extent that such costs are not already incurred in connection with a new lease origination as part of the transaction. The fair value of above or below market in-place lease values is the present value of the difference between the contractual amount to be paid pursuant to the in-place lease and the estimated current market lease rate expected over the remaining non-cancelable life of the lease. The capitalized above market lease values are amortized as a reduction of rental income over the remaining term of the respective leases. The capitalized below market lease values are amortized as an increase to rental income over the remaining term of the respective leases. Total amortization for above and below market leases, excluding amounts classified as discontinued operations, was a net reduction of rental income of $5.1 million and $3.0 million for the years ended December 31, 2012 and 2011, respectively, and a net increase of rental income of $163,000 for the year ended December 31, 2010. As of December 31, 2012, amortization of above and below market leases is projected as a net decrease to rental income as follows for the next five years (in thousands):
The fair value of customer relationships represents the quantifiable benefits related to developing a relationship with the current customer. Examples of these benefits would be growth prospects for developing new business with the existing customer, the ability to attract similar customers to the building, the customer's credit quality and expectations of lease renewals (including those existing under the terms of the lease agreement), among other factors. Management believes that there would typically be little value associated with customer relationships that is in excess of the value of the in-place lease and their typical renewal rates. Any value assigned to customer relationships is amortized over the remaining terms of the respective leases plus any expected renewal periods as a lease cost amortization expense. Currently, the Company has no value assigned to customer relationships. The fair value of at market in-place leases is the present value associated with re-leasing the in-place lease as if the property was vacant. Factors to be considered include estimates of carrying costs during hypothetical expected lease-up periods considering current market conditions and costs to execute similar leases. In estimating carrying costs, the Company includes real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up periods. The value of at market in-place leases is amortized as a lease cost amortization expense over the expected life of the lease. Total amortization expense for the value of in-place leases, excluding amounts classified as discontinued operations, was $15.9 million, $12.3 million, and $5.2 million for the years ended December 31, 2012, 2011 and 2010, respectively. As of December 31, 2012, amortization expense for the value of in-place leases is projected as follows for the next five years (in thousands):
A separate component of the fair value of in-place leases is identified for the lease costs. The fair value of lease costs represents the estimated commissions and legal fees paid in connection with the current leases in place. Lease costs are amortized over the non-cancelable terms of the respective leases as lease cost amortization expense. In no event does the amortization period for intangible assets exceed the remaining depreciable life of the building. Should a customer terminate its lease, the unamortized portion of the tenant improvement, in-place lease value, lease cost and customer relationship intangibles would be charged to expense. Additionally, the unamortized portion of above market in-place leases would be recorded as a reduction to rental income and the below market in-place lease value would be recorded as an increase to rental income. |
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Goodwill | Goodwill During 2011, the Company early adopted Accounting Standards Updated ("ASU") 2011-08, which allows an entity to first assess the qualitative factors in determining when a two-step quantitative goodwill impairment test is necessary. If an entity determines, based on qualitative factors, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the entity would then be required to calculate the fair value of the reporting entity. The Company acquired goodwill in 2011 when it closed on the agreement with Eola Capital, LLC and related entities ("Eola") in which Eola contributed its property management company to Parkway. During 2012, the company evaluated certain qualitative factors and determined that it was necessary to apply the two-step quantitative impairment test. During this process the Company determined that the management contracts related to its goodwill were impaired due to the fair value of these management contracts being estimated at $19.0 million as compared to the carrying amount of $46.1 million. Next, the Company computed the fair value of the assets and liabilities associated with management contracts and determined that the associated goodwill was impaired. During the year ended December 31, 2012, the Company recorded a $42.0 million non-cash impairment loss, net of deferred tax liability, associated with the Company's investment in management contracts and goodwill. The Company's strategy related to the third-party management business has changed since the acquisition of these contracts. When they were acquired, the Company's strategy was to grow the third-party business and continue to add management contracts in Parkway's various markets. While the Company still views the cash flow from this business as positive and the additional management contracts gives Parkway scale and critical mass in some of its key markets, the Company is no longer actively seeking to grow this portion of the business. Given this change in strategy, the Company determined that its management contracts and associated goodwill was impaired and recorded a $42.0 million non-cash impairment charge, net of deferred tax liability, during the fourth quarter of 2012. |
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Allowance for Doubtful Accounts | Allowance for Doubtful Accounts Accounts receivable are reduced by an allowance for amounts that the Company estimates to be uncollectible. The receivable balance is comprised primarily of rent and expense reimbursement income due from the customers. Management evaluates the adequacy of the allowance for doubtful accounts considering such factors as the credit quality of the customers, delinquency of payment, historical trends and current economic conditions. The Company provides an allowance for doubtful accounts for customer balances that are over 90 days past due and for specific customer receivables for which collection is considered doubtful. |
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Cash Equivalents | Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. |
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Noncontrolling Interest | Noncontrolling Interest Noncontrolling Interest – Real Estate Partnerships At December 31, 2012 and 2011, the Company had an interest in one and two joint ventures, respectively, whose operations are included in its consolidated financial statements. These joint ventures were originally structured such that the Company would own a 25% and 30% interest in Parkway Properties Office Fund, LP ("Fund I") and Parkway Properties Office Fund II, LP ("Fund II"), respectively. Parkway serves as the general partner of Fund II and provides asset management, property management, leasing and construction management services to the fund, for which it is paid market-based fees. Cash is distributed from Fund II pro rata to each partner until a 9% annual cumulative preferred return is received and invested capital is returned. Thereafter, 56% will be distributed to Parkway's partner in Fund II, Teacher Retirement System of Texas ("TRST") and 44% to Parkway. The term of Fund II is seven years from the date the fund was fully invested, or until February 2019, with provisions to extend the term for two additional one-year periods at the Company's discretion. The Company previously entered into an agreement to sell its interest in 13 office properties totaling 2.7 million square feet owned by Parkway Properties Office Fund, L.P. ("Fund I") to its existing partner in the fund for a gross sales price of $344.3 million. As of July 1, 2012, the Company had completed the sale of all 13 Fund I assets. Noncontrolling interest in real estate partnerships represents the other partners' proportionate share of equity in the partnerships discussed above at December 31, 2012 and 2011. Income is allocated to noncontrolling interest based on the weighted average percentage ownership during the year. |
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Revenue Recognition | Revenue Recognition Revenue from real estate rentals is recognized on a straight-line basis over the terms of the respective leases. The cumulative difference between lease revenue recognized under this method and contractual lease payment terms is recorded as straight-line rent receivable on the accompanying balance sheets. The straight-line rent adjustment increased revenue by $15.4 million, $6.0 million and $1.4 million in 2012, 2011 and 2010, respectively. When the Company is the owner of the customer improvements, the leased space is ready for its intended use when the customer improvements are substantially completed. In limited instances, when the customer is the owner of the customer improvements, straight-line rent is recognized when the customer takes possession of the unimproved space. The leases also typically provide for customer reimbursement of a portion of common area maintenance and other operating expenses. Property operating cost recoveries from customers ("expense reimbursements") are recognized as revenue in the period in which the expenses are incurred. The computation of expense reimbursements is dependent on the provisions of individual customer leases. Most customers make monthly fixed payments of estimated expense reimbursements. The Company makes adjustments, positive or negative, to expense reimbursement income quarterly to adjust the recorded amounts to the Company's best estimate of the final property operating costs based on the most recent quarterly budget. After the end of the calendar year, the Company computes each customer's final expense reimbursements and issues a bill or credit for the difference between the actual amount and the amounts billed monthly during the year. Management company income represents market-based fees earned from providing management, construction, leasing, brokerage and acquisition services to third parties. Management fee income is computed and recorded monthly in accordance with the terms set forth in the stand alone management service agreements. Leasing and brokerage commissions, as well as salary and administrative fees, are recognized pursuant to the terms of the stand-alone agreements at the time underlying leases are signed, which is the point at which the earnings process is complete and collection of the fees is reasonably assured. Fees relating to the purchase or sale of property are recognized when the earnings process is complete and collection of the fees is reasonably assured, which usually occurs at closing. All fees on Company-owned properties and consolidated joint ventures are eliminated in consolidation. The Company recognizes its share of fees earned from unconsolidated joint ventures in management company income. |
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Amortization | Amortization Debt origination costs are deferred and amortized using a method that approximates the effective interest method over the term of the loan. Leasing costs are deferred and amortized using the straight-line method over the term of the respective lease. |
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Early Extinguishment of Debt | Early Extinguishment of Debt When outstanding debt is extinguished, the Company records any prepayment premium and unamortized loan costs to interest expense. |
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Derivative Financial Instruments | Derivative Financial Instruments The Company recognizes all derivative instruments on the balance sheet at their fair value. Changes in the fair value of derivatives are recorded each period in current earnings or other comprehensive income (loss), depending on whether a derivative is designated as part of a hedge transaction and, if it is, the type of hedge transaction. The ineffective portion of the hedge, if any, is immediately recognized in earnings. |
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Share-Based and Long-Term Compensation | Share-Based and Long-Term Compensation Effective May 1, 2010, the stockholders of the Company approved Parkway's 2010 Omnibus Equity Incentive Plan (the "2010 Equity Plan") that authorized the grant of up to 600,000 equity based awards to employees and directors of the Company. The 2010 Equity Plan replaced the Company's 2003 Equity Incentive Plan and the 2001 Non-Employee Directors Equity Compensation Plan. At present, it is Parkway's intention to grant restricted shares and/or deferred incentive share units instead of stock options although the 2010 Equity Plan authorizes various forms of incentive awards, including options. The 2010 Equity Plan has a ten-year term. On May 12, 2011, the Board of Directors approved Parkway's 2011 Employee Inducement Award Plan that authorized the grant of up to 149,573 restricted shares and/or deferred incentive share units to employees and directors of the Company in connection with the combination with Eola. The Plan shall continue in effect until the earlier of (a) its termination by the Board or (b) the date on which all of the shares of stock available for issuance under the Plan have been issued; provided that awards outstanding on that date shall survive in accordance with their terms. Compensation expense, including estimated forfeitures, for service-based awards is recognized over the expected vesting period. The total compensation expense for the long-term equity incentive awards is based upon the fair value of the shares on the grant date, adjusted for estimated forfeitures. Time-based restricted shares and deferred incentive share units are valued based on the New York Stock Exchange closing market price of Parkway common shares (NYSE: PKY) as of the date of grant. The grant date fair value for awards that are subject to market conditions is determined using a simulation pricing model developed to specifically accommodate the unique features of the awards. Restricted shares and deferred incentive share units are forfeited if an employee leaves the Company before the vesting date, except in the case of the employee's death or permanent disability or upon termination following a change of control. Shares and/or units that are forfeited become available for future grant under the 2010 Equity Plan. The Company also adopted a long-term cash incentive that was designed to reward significant outperformance over the three year period which began July 1, 2010. The total compensation expense for the long-term cash incentive awards is based upon the estimated fair value of the award on the grant date and adjusted as necessary each reporting period. The long-term cash incentive awards are accounted for as a liability-classified award on the Company's 2012 and 2011 consolidated balance sheets. The grant date and quarterly fair value estimates for awards that are subject to a market condition are determined using a simulation pricing model developed to specifically accommodate the unique features of the awards. |
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Income Taxes | Income Taxes The Company elected to be taxed as a REIT under the Internal Revenue Code, commencing with its taxable year ended December 31, 1997. To qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement that it currently distribute at least 90% of its adjusted taxable income to its stockholders. It is management's current intention to adhere to these requirements and maintain the Company's REIT status, and the Company was in compliance with all REIT requirements at December 31, 2012. As a REIT, the Company generally will not be subject to corporate level federal income tax on taxable income it distributes currently to its stockholders. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal income taxes at regular corporate rates (including any applicable alternative minimum tax) and may not be able to qualify as a REIT for four subsequent taxable years. Even if the Company qualifies for taxation as a REIT, the Company may be subject to certain state and local taxes on its income and property, and to federal income and excise taxes on its undistributed taxable income. In addition, taxable income from non-REIT activities managed through TRSs is subject to federal, state and local income taxes. Effective May 18, 2011, the Company acquired the Eola management company and contributed the entity into a taxable REIT subsidiary ("TRS") wholly-owned by the operating partnership. In connection with the purchase of the Eola management company, the TRS recorded a deferred income tax liability of $14.8 million. At December 31, 2012, the Company carried a deferred tax liability of $2.0 million, as compared to a balance of $14.3 million at December 31, 2011. The balance was reduced during the fourth quarter of 2012 as a result of the reduction in the value of the Company's management contracts to $19.0 million. The TRS pays income taxes at the federal and state level. |
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Net Loss Per Common Share | Net Loss Per Common Share Basic earnings per share ("EPS") is computed by dividing loss attributable to common stockholders by the weighted-average number of common shares outstanding for the year. In arriving at net loss attributable to common stockholders, preferred stock dividends are deducted. Diluted EPS reflects the potential dilution that could occur if share equivalents such as employee stock options, restricted shares and deferred incentive share units were exercised or converted into common stock that then shared in the earnings of Parkway. The computation of diluted EPS is as follows:
The computation of diluted EPS for 2012, 2011 and 2010 did not include the effect of employee stock options, deferred incentive share units and restricted shares because their inclusion would have been anti-dilutive. |
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Reclassifications | Reclassifications Certain reclassifications have been made in the 2011 and 2010 consolidated financial statements to conform to the 2012 classifications with no impact on previously reported net income or equity. |
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Subsequent Events | Subsequent Events The Company has evaluated all subsequent events through the issuance date of the consolidated financial statements. |
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Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2011-04, "Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS", which change the wording used to describe the requirements in U.S. GAAP for measuring fair value, changes certain fair value measurement principles and enhances disclosure requirements for fair value measurements. The FASB does not intend for ASU 2011-04 to result in a change in the application of the requirements in ASC 820. The requirements of ASU 2011-04 will be effective prospectively for interim and annual periods beginning after December 15, 2011. At March 31, 2012, the Company had implemented ASU 2011-04. In June 2011, the FASB issued ASU 2011-05, "Comprehensive Income", which modifies reporting requirements for comprehensive income in order to increase the prominence of items reported in other comprehensive income in the financial statements. ASU 2011-05 requires presentation of either a single continuous statement of comprehensive income or two separate, but consecutive statements in which the first statement presents net income and its components followed by a second statement that presents total other comprehensive income, the components of other comprehensive income, and total comprehensive income. The requirements of ASU 2011-05 will be effective for interim and annual periods beginning after December 15, 2011. At March 31, 2012, the Company had implemented ASU 2011-05. |
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Unaudited statistical information [Policy Text Block] | Unaudited Statistical Information The square feet and percentage leased statistics presented in Notes B, F and G are unaudited. |
Share-Based and Long-Term Compensation Plans (Details) (USD $)
|
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
May 01, 2010
|
||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized for issuance (in shares) | 600,000 | ||||||
Term of equity plan | 10 years 0 months 0 days | ||||||
Number of equity-incentive awards granted during the period (in shares) | 26,047 | 17,636 | 15,214 | ||||
Value of equity-incentive awards granted during the period | $ 222,000 | ||||||
Average price per share of stock awards granted during the period (in dollars per share) | $ 10.15 | ||||||
Vesting period | 4 years 0 months 0 days | ||||||
Market Condition Goals [Abstract] | |||||||
Annual performance achievement vesting percentage (in hundredths) | 50.00% | ||||||
Absolute compounded annual TRS threshold for achievement of performance goals, first condition (in hundredths) | 14.00% | ||||||
Basis spread over RMS, second condition (in hundredths) | 50000.00% | ||||||
Absolute compounded annual TRS threshold, third condition | 19.00% | ||||||
Basis spread over RMS, third condition (in hundredths) | 60000.00% | ||||||
Aggregate cash incentive earned, maximum | 7,100,000 | ||||||
Absolute compounded annual TRS goal (in hundredths) | 23.00% | ||||||
Basis spread over RMS, maximum (in hundredths) | 60000.00% | ||||||
Share-based compensation expense | 432,000 | 1,341,000 | 1,319,000 | ||||
Nonvested awards total compensation expense not yet recognized | 1,100,000 | ||||||
Nonvested awards, period over which expense will be recognized | 1 year 6 months 0 days | ||||||
Restricted shares and deferred incentive share unit activity [Roll Forward] | |||||||
Balance at end of period (in shares) | 281,233 | ||||||
Vesting schedule for restricted shares and deferred incentive share units [Abstract] | |||||||
2013 | 131,066 | ||||||
2014 | 131,065 | ||||||
2015 | 11,781 | ||||||
2016 | 7,321 | ||||||
Total share based payment awards, other than options | 281,233 | ||||||
Weighted Average Price Rollforward [Abstract] | |||||||
Stock options exercised in period (in shares) | 0 | ||||||
Defined Contribution Plan [Abstract] | |||||||
Percentage of matching contribution of employee's contribution (in hundredths) | 50.00% | ||||||
Percentage of maximum annual contribution per employee (in hundredths) | 10.00% | ||||||
Total expense under the plan | 554,000 | 518,000 | 404,000 | ||||
Threshold [Member]
|
|||||||
Market Condition Goals [Abstract] | |||||||
Absolute return goal (in hundredths) | 10.00% | ||||||
Relative return goal, basis | RMS | ||||||
Relative return goal, basis spread (in hundredths) | 10000.00% | ||||||
Target [Member]
|
|||||||
Market Condition Goals [Abstract] | |||||||
Absolute return goal (in hundredths) | 12.00% | ||||||
Relative return goal, basis | RMS | ||||||
Relative return goal, basis spread (in hundredths) | 20000.00% | ||||||
Maximum [Member]
|
|||||||
Market Condition Goals [Abstract] | |||||||
Absolute return goal (in hundredths) | 14.00% | ||||||
Relative return goal, basis | RMS | ||||||
Relative return goal, basis spread (in hundredths) | 30000.00% | ||||||
Absolute Total Return Goal [Member] | Threshold [Member]
|
|||||||
Market Condition Goals [Abstract] | |||||||
Goal award earnings (in hundredths) | 15.00% | ||||||
Absolute Total Return Goal [Member] | Target [Member]
|
|||||||
Market Condition Goals [Abstract] | |||||||
Goal award earnings (in hundredths) | 60.00% | ||||||
Absolute Total Return Goal [Member] | Maximum [Member]
|
|||||||
Market Condition Goals [Abstract] | |||||||
Goal award earnings (in hundredths) | 100.00% | ||||||
Relative Total Return Goal [Member] | Threshold [Member]
|
|||||||
Market Condition Goals [Abstract] | |||||||
Goal award earnings (in hundredths) | 20.00% | ||||||
Relative Total Return Goal [Member] | Target [Member]
|
|||||||
Market Condition Goals [Abstract] | |||||||
Goal award earnings (in hundredths) | 55.00% | ||||||
Relative Total Return Goal [Member] | Maximum [Member]
|
|||||||
Market Condition Goals [Abstract] | |||||||
Goal award earnings (in hundredths) | 100.00% | ||||||
Time Based Awards [Member]
|
|||||||
Restricted shares and deferred incentive share unit activity [Roll Forward] | |||||||
Balance at end of period (in shares) | 47,202 | ||||||
Vesting schedule for restricted shares and deferred incentive share units [Abstract] | |||||||
2013 | 14,052 | ||||||
2014 | 14,048 | ||||||
2015 | 11,781 | ||||||
2016 | 7,321 | ||||||
Total share based payment awards, other than options | 47,202 | ||||||
Market Condition Awards [Member]
|
|||||||
Restricted shares and deferred incentive share unit activity [Roll Forward] | |||||||
Balance at end of period (in shares) | 234,031 | [1] | |||||
Vesting schedule for restricted shares and deferred incentive share units [Abstract] | |||||||
2013 | 117,014 | [1] | |||||
2014 | 117,017 | [1] | |||||
2015 | 0 | [1] | |||||
2016 | 0 | [1] | |||||
Total share based payment awards, other than options | 234,031 | [1] | |||||
Restricted Shares [Member]
|
|||||||
Market Condition Goals [Abstract] | |||||||
Fair value of incentive awards at period end | 2,300,000 | ||||||
Restricted shares and deferred incentive share unit activity [Roll Forward] | |||||||
Balance at beginning of period (in shares) | 454,070 | 479,930 | 308,975 | ||||
Granted (in shares) | 21,900 | 235,168 | 345,120 | ||||
Vested (in shares) | (56,013) | (99,202) | (152,941) | ||||
Forfeited (in shares) | (138,724) | (161,826) | (21,224) | ||||
Balance at end of period (in shares) | 281,233 | 454,070 | 479,930 | ||||
Weighted Average Price [Abstract] | |||||||
Balance at beginning of period (in dollars per share) | $ 9.83 | $ 12.81 | $ 29.94 | ||||
Granted (in dollars per share) | $ 10.15 | $ 10.31 | $ 7.30 | ||||
Vested (in dollars per share) | $ 21.55 | $ 23.99 | $ 33.06 | ||||
Forfeited (in dollars per share) | $ 8.18 | $ 10.68 | $ 26.69 | ||||
Balance at end of period (in dollars per share) | $ 8.34 | $ 9.83 | $ 12.81 | ||||
Vesting schedule for restricted shares and deferred incentive share units [Abstract] | |||||||
Total share based payment awards, other than options | 281,233 | 454,070 | 479,930 | ||||
Deferred Incentive Share Units [Member]
|
|||||||
Market Condition Goals [Abstract] | |||||||
Fair value of incentive awards at period end | $ 455,000 | ||||||
Restricted shares and deferred incentive share unit activity [Roll Forward] | |||||||
Balance at beginning of period (in shares) | 27,370 | 15,640 | 18,055 | ||||
Granted (in shares) | 0 | 20,435 | 3,805 | ||||
Vested (in shares) | (3,030) | (4,930) | (4,355) | ||||
Forfeited (in shares) | (6,580) | (3,775) | (1,865) | ||||
Balance at end of period (in shares) | 17,760 | 27,370 | 15,640 | ||||
Weighted Average Price [Abstract] | |||||||
Balance at beginning of period (in dollars per share) | $ 21.65 | $ 25.71 | $ 34.08 | ||||
Granted (in dollars per share) | $ 0 | $ 23.97 | $ 14.83 | ||||
Vested (in dollars per share) | $ 14.93 | $ 45.11 | $ 47.78 | ||||
Forfeited (in dollars per share) | $ 14.06 | $ 20.38 | $ 32.99 | ||||
Balance at end of period (in dollars per share) | $ 25.61 | $ 21.65 | $ 25.71 | ||||
Vesting schedule for restricted shares and deferred incentive share units [Abstract] | |||||||
2013 | 0 | ||||||
2014 | 1,490 | ||||||
2015 | 16,270 | ||||||
2016 | 0 | ||||||
Total share based payment awards, other than options | 17,760 | 27,370 | 15,640 | ||||
2010 Equity Plan [Member]
|
|||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized for issuance (in shares) | 600,000 | ||||||
Term of equity plan | 10 years 0 months 0 days | ||||||
1994 Stock Option Plan [Member]
|
|||||||
Shares [Roll Forward] | |||||||
Outstanding at beginning of period (in shares) | 2,453 | 29,961 | 86,280 | ||||
Forfeited (in shares) | (2,453) | (27,508) | (56,319) | ||||
Outstanding at end of period (in shares) | 2,453 | 29,961 | |||||
Vested and Exercisable (in shares) | 0 | ||||||
Weighted Average Price Rollforward [Abstract] | |||||||
Outstanding at beginning of period (in dollars per share) | $ 35.70 | $ 33.69 | $ 31.46 | ||||
Forfeited (in dollars per share) | $ 35.70 | $ 33.51 | $ 30.28 | ||||
Outstanding at end of period (in dollars per share) | $ 35.70 | $ 33.69 | |||||
Vested and Exercisable at end of period (in dollars per share) | $ 0 | ||||||
1991 Directors Stock Option Plan [Member]
|
|||||||
Shares [Roll Forward] | |||||||
Outstanding at beginning of period (in shares) | 0 | 0 | 0 | ||||
Forfeited (in shares) | 0 | 0 | 0 | ||||
Outstanding at end of period (in shares) | 0 | 0 | |||||
Vested and Exercisable (in shares) | 0 | ||||||
Weighted Average Price Rollforward [Abstract] | |||||||
Outstanding at beginning of period (in dollars per share) | $ 0 | $ 0 | $ 0 | ||||
Forfeited (in dollars per share) | $ 0 | $ 0 | $ 0 | ||||
Outstanding at end of period (in dollars per share) | $ 0 | $ 0 | |||||
Vested and Exercisable at end of period (in dollars per share) | $ 0 | ||||||
2001 Directors Stock Option Plan [Member]
|
|||||||
Shares [Roll Forward] | |||||||
Outstanding at beginning of period (in shares) | 3,000 | 9,500 | 12,500 | ||||
Forfeited (in shares) | (3,000) | (6,500) | (3,000) | ||||
Outstanding at end of period (in shares) | 3,000 | 9,500 | |||||
Vested and Exercisable (in shares) | 0 | ||||||
Weighted Average Price Rollforward [Abstract] | |||||||
Outstanding at beginning of period (in dollars per share) | $ 38.95 | $ 42.47 | $ 41.63 | ||||
Forfeited (in dollars per share) | $ 38.95 | $ 44.10 | $ 38.95 | ||||
Outstanding at end of period (in dollars per share) | $ 38.95 | $ 42.47 | |||||
Vested and Exercisable at end of period (in dollars per share) | $ 0 | ||||||
|
Mortgage Loans (Details) (USD $)
|
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2012
sqft
|
Dec. 31, 2011
|
Dec. 31, 2010
|
Jan. 17, 2013
sqft
|
Mar. 09, 2012
sqft
|
Feb. 10, 2012
sqft
|
|
Mortgage Loans on Real Estate [Line Items] | ||||||
Area of real estate property (in square feet) | 11,900,000 | 260,000 | 337,000 | 300,000 | ||
Non-cash impairment loss on mortgage loan receivable | $ 0 | $ (9,235,000) | $ 0 | |||
Carrying amount of mortgage loans receivable | 0 | 1,500,000 | ||||
Recovery of losses on mortgage loan receivable | 500,000 | 0 | 0 | |||
2100 Ross, B Piece [Member]
|
||||||
Mortgage Loans on Real Estate [Line Items] | ||||||
Area of real estate property (in square feet) | 844,000 | |||||
Original investment in mortgage loan | 6,900,000 | |||||
Face amount of mortgage note receivable | 10,000,000 | |||||
Interest rate on mortgage (in hundredths) | 6.10% | |||||
One Park Ten [Member]
|
||||||
Mortgage Loans on Real Estate [Line Items] | ||||||
Face amount of mortgage note receivable | $ 1,500,000 | |||||
Interest rate on mortgage (in hundredths) | 7.30% |
Summary of Significant Accounting Policies (Details) (USD $)
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12 Months Ended | |||||
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Dec. 31, 2012
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Dec. 31, 2011
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Dec. 31, 2010
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Balances of major classes of depreciable assets and their respective estimated useful lives [Abstract] | ||||||
Non-cash impairment loss on real estate | $ 9,200,000 | $ 6,420,000 | $ 0 | |||
Estimated useful life of depreciable assets | [1] | |||||
Total depreciable assets | 1,762,566,000 | 1,084,060,000 | ||||
Depreciation expense | 50,700,000 | 76,500,000 | 67,400,000 | |||
Purchase Price Allocation [Abstract] | ||||||
Amortization of intangible assets | 5,137,000 | 2,955,000 | (163,000) | |||
Goodwill [Abstract] | ||||||
Impairment gain (Losses) on management contracts and goodwill | 41,967,000 | 0 | 0 | |||
ManagementContractsNet | 19,000,000 | 49,597,000 | ||||
Management contracts net prior to impairment | 46,100,000 | |||||
Above and Below Market Leases [Member]
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Purchase Price Allocation [Abstract] | ||||||
Amortization of intangible assets | (5,100,000) | (3,000,000) | 163,000 | |||
2013 | (2,986,000) | |||||
2014 | (1,057,000) | |||||
2015 | (439,000) | |||||
2016 | (409,000) | |||||
2017 | (674,000) | |||||
In Place Leases [Member]
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Purchase Price Allocation [Abstract] | ||||||
Amortization of intangible assets | 15,900,000 | 12,300,000 | 5,200,000 | |||
2013 | 20,898,000 | |||||
2014 | 16,201,000 | |||||
2015 | 13,656,000 | |||||
2016 | 11,530,000 | |||||
2017 | 7,850,000 | |||||
Land [Member]
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Balances of major classes of depreciable assets and their respective estimated useful lives [Abstract] | ||||||
Total depreciable assets | 159,039,000 | 116,598,000 | ||||
Buildings and garages [Member]
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Balances of major classes of depreciable assets and their respective estimated useful lives [Abstract] | ||||||
Estimated useful life of depreciable assets | 40 years 0 months 0 days | |||||
Total depreciable assets | 1,369,493,000 | 801,619,000 | ||||
Building improvements [Member]
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Balances of major classes of depreciable assets and their respective estimated useful lives [Abstract] | ||||||
Total depreciable assets | 65,328,000 | 53,909,000 | ||||
Building improvements [Member] | Maximum [Member]
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Balances of major classes of depreciable assets and their respective estimated useful lives [Abstract] | ||||||
Estimated useful life of depreciable assets | 40 years 0 months 0 days | |||||
Building improvements [Member] | Minimum [Member]
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Balances of major classes of depreciable assets and their respective estimated useful lives [Abstract] | ||||||
Estimated useful life of depreciable assets | 7 years 0 months 0 days | |||||
Tenant improvements [Member]
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Balances of major classes of depreciable assets and their respective estimated useful lives [Abstract] | ||||||
Total depreciable assets | $ 168,706,000 | $ 111,934,000 | ||||
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Fair Values of Financial Instruments (Details) (USD $)
In Thousands, unless otherwise specified |
Dec. 31, 2012
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Dec. 31, 2011
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---|---|---|
Financial Liabilities [Abstract] | ||
Interest rate swap agreements | $ 16,285 | $ 11,134 |
Carrying Amount [Member]
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Financial Assets [Abstract] | ||
Cash and cash equivalents | 81,856 | 75,183 |
Financial Liabilities [Abstract] | ||
Mortgage notes payable | 605,889 | 752,414 |
Notes payable to banks | 262,000 | 132,322 |
Interest rate swap agreements | 16,285 | 11,134 |
Fair Value [Member]
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Financial Assets [Abstract] | ||
Cash and cash equivalents | 81,856 | 75,183 |
Financial Liabilities [Abstract] | ||
Mortgage notes payable | 623,604 | 761,942 |
Notes payable to banks | 254,215 | 125,494 |
Interest rate swap agreements | $ 16,285 | $ 11,134 |
Noncontrolling Interests (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | 12 Months Ended | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 17, 2013
sqft
|
Dec. 31, 2012
sqft
|
Mar. 09, 2012
sqft
|
Feb. 10, 2012
sqft
|
Dec. 31, 2012
Parkway Properties Office Fund II, LP [Member]
sqft
|
Dec. 31, 2012
Parkway Properties Office Fund II, LP [Member]
Parkway [Member]
|
Dec. 31, 2012
Parkway Properties Office Fund II, LP [Member]
TRST [Member]
|
Dec. 31, 2012
Fund II [Member]
sqft
|
Dec. 31, 2012
Hayden Ferry Lakeside I [Member]
sqft
|
Dec. 31, 2012
Hayden Ferry Lakeside II [Member]
sqft
|
Feb. 10, 2012
Hayden Ferry Lakeside II [Member]
sqft
|
Dec. 31, 2012
Hayden Ferry III, IV, V [Member]
sqft
|
Dec. 31, 2012
245 Riverside [Member]
sqft
|
Dec. 31, 2012
Bank of America Center [Member]
sqft
|
Dec. 31, 2012
Corporate Center Four at International Plaza [Member]
sqft
|
Dec. 31, 2012
Cypress Center I - III [Member]
sqft
|
Dec. 31, 2012
The Pointe [Member]
sqft
|
Dec. 31, 2012
Lakewood II [Member]
sqft
|
Dec. 31, 2012
3344 Peachtree [Member]
sqft
|
Dec. 31, 2012
Two Ravinia [Member]
sqft
|
Dec. 31, 2012
Carmel Crossing [Member]
sqft
|
Dec. 31, 2012
Two Liberty Place [Member]
sqft
|
|
Real Estate Properties [Line Items] | ||||||||||||||||||||||
Number of joint ventures | 1 | |||||||||||||||||||||
Location | Phoenix, AZ | Phoenix, AZ | Phoenix, AZ | Jacksonville, FL | Orlando, FL | Tampa, FL | Tampa, FL | Tampa, FL | Atlanta, GA | Atlanta, GA | Atlanta, GA | Charlotte, NC | Philadelphia, PA | |||||||||
Parkway's ownership percentage (in hundredths) | 27.90% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 33.00% | 30.00% | 30.00% | 19.00% | ||||||||
Square feet (in thousands of square feet) | 260,000 | 11,900,000 | 337,000 | 300,000 | 4,183,000 | 203,000 | 300,000 | 300,000 | 21,000 | 136,000 | 421,000 | 250,000 | 286,000 | 252,000 | 124,000 | 485,000 | 438,000 | 326,000 | 941,000 | |||
Increased discretionary fund capacity | $ 20 | |||||||||||||||||||||
Area of real estate property acquired | 4,200,000 | 21,000 | ||||||||||||||||||||
Number of parking spaces in garage acquired | 2,500 | |||||||||||||||||||||
Number of properties under agreement to sell | 13 | |||||||||||||||||||||
Area of property under agreement to sell (in millions of square feet) | 2,700,000 | |||||||||||||||||||||
Gross sales price of assets under agreement to sell | 344.3 | |||||||||||||||||||||
Parkway's share of Gross Sales Price of assets under agreement to sell | 97.4 | 97.4 | ||||||||||||||||||||
Number of assets under agreement that have completed sale | 13 | |||||||||||||||||||||
Net proceeds from completed sales | 14.2 | |||||||||||||||||||||
Liabilities related to assets held for sale | 292 | |||||||||||||||||||||
Parkway's portion of debt assumed by buyer | 82.4 | |||||||||||||||||||||
Target value of discretionary fund | 750 | |||||||||||||||||||||
Target ownership percentage (in hundredths) | 30.00% | 70.00% | ||||||||||||||||||||
Target capital structure of equity capital | 375 | |||||||||||||||||||||
Target capital structure of non-recourse, fixed rate first mortgage debt | $ 375 | |||||||||||||||||||||
Number of properties acquired | 13 | |||||||||||||||||||||
Area of real estate property acquired (in millions of square feet) | 4,200,000 | 21,000 | ||||||||||||||||||||
Cumulative preferred return threshold for pro rata cash distributions (in hundredths) | 9.00% | |||||||||||||||||||||
Distribution percentage to partners (in hundredths) | 44.00% | 56.00% | ||||||||||||||||||||
Term of the fund | 7 years 0 months 0 days | |||||||||||||||||||||
Number of term extension provisions | 2 | |||||||||||||||||||||
Length of extension term | 1 year 0 months 0 days |
Investment in Office Properties
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Investment in Office and Parking Properties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in Office and Parking Properties | Note B - Investment in Office Properties Included in investment in office properties at December 31, 2012 are 43 office properties located in nine states with an aggregate of 11.9 million square feet of leasable space. The contract purchase price, excluding closing costs and other adjustments, of office properties or additional office property interests acquired during the year ended December 31, 2012 is as follows:
The Company's acquisitions are accounted for using the acquisition method. The results of each acquired property are included in the Company's results of operations from their respective purchase dates. Summary of Acquisitions On January 11, 2012, Parkway Properties Office Fund II, LP ("Fund II") purchased The Pointe, a 252,000 square foot Class A office building in the Westshore submarket of Tampa, Florida. The gross purchase price for The Pointe was $46.9 million and the Company's ownership share is 30%. The Company's equity contribution of $7.0 million was funded through availability under the Company's senior unsecured revolving credit facility. On February 10, 2012, Fund II purchased Hayden Ferry Lakeside II ("Hayden Ferry II"), a 300,000 square foot Class A+ office building located in the Tempe submarket of Phoenix, and directly adjacent to Hayden Ferry Lakeside I ("Hayden Ferry I"), which was purchased by Fund II in the second quarter of 2011. The gross purchase price was $86.0 million and the Company's ownership share is 30%. The Company's equity contribution of $10.8 million was initially funded through availability under the Company's existing senior unsecured revolving credit facility. This investment completed the investment period of Fund II. On June 6, 2012, the Company purchased Hearst Tower, a 972,000 square foot office tower located in the central business district in Charlotte, North Carolina. The gross purchase price was $250.0 million. The purchase of Hearst Tower was financed with proceeds received from the investment in the Company by TPG VI Pantera Holdings, L.P. ("TPG Pantera"), combined with borrowings on the Company's senior unsecured revolving credit facility. For more information on TPG Pantera's investment see "Note L – Equity Offerings". On August 31, 2012, the Company purchased a 2,500 space parking garage, a 21,000 square foot office building and a vacant parcel of developable land (collectively the "Hayden Ferry Lakeside III, IV, and V"), all adjacent to the Company's currently owned Hayden Ferry I and Hayden Ferry II assets in Tempe, Arizona. The gross purchase price was $18.2 million on behalf of Fund II. Fund II increased its investment capacity to pursue the purchase, and Parkway's share in this investment is 30%. The Company equity contribution of $5.5 million was funded using the Company's revolving credit facility. On November 15, 2012, the Company completed the purchase of Westshore Corporate Center, a 170,000 square foot office tower located in the Westshore submarket of Tampa, Florida, for a net purchase price of $22.7 million. Westshore Corporate Center was built in 1989 and is a 12-story Class A building. Simultaneous with closing, the Company assumed a $14.5 million non-recourse first mortgage, with a fixed interest rate of 5.8% and maturity date of May 1, 2015. In accordance with GAAP, the mortgage was recorded at $15.7 million to reflect the value of the instrument based on a market interest rate of 2.5% on the date of purchase. On December 6, 2012, the Company completed the purchase of 525 North Tryon, a 402,000 square foot office property located in the central business district of Charlotte, North Carolina, for a gross purchase price of $47.4 million. The purchase of 525 North Tryon was financed with proceeds received from the Company's December 2012 common equity offering. On December 20, 2012, the Company completed the purchase of Phoenix Tower, a 626,000 square foot office tower located in the Greenway Plaza submarket of Houston, Texas, for a gross purchase price of $123.8 million. Phoenix Tower is a LEED® Gold Certified, 26-story, Class A office tower that sits atop an eight-story parking garage. The initial purchase price of Phoenix Tower was financed with proceeds received from the Company's December 2012 common equity offering. On February 20, 2013, the Company obtained an $80.0 million non-recourse first mortgage loan secured by Phoenix Tower. The mortgage loan has a fixed interest rate of 3.9%, an initial 24-month interest only period and a maturity date of March 2023. On December 21, 2012, the Company completed the purchase of Tempe Gateway, a 251,000 square foot office tower located in the Tempe submarket of Phoenix, Arizona, for a gross purchase price of $66.1 million. The purchase of Tempe Gateway was financed with proceeds received from the Company's December 2012 common equity offering. On December 31, 2012, the Company completed the purchase of NASCAR Plaza, a 390,000 square foot property located in the central business district of Charlotte, North Carolina for a gross purchase price of $99.9 million. NASCAR Plaza was built in 2009 and is a 20-story, LEED® Silver Certified office tower. The building was 87.5% occupied as of January 1, 2013. The Company assumed the first mortgage secured by the property, which has a current outstanding balance of approximately $42.6 million with a current interest rate of 4.7% and a maturity date of March 30, 2016. In accordance with GAAP, the mortgage was recorded at $43.0 million to reflect the value of the instrument based on a market interest rate of 3.4% on the date of purchase. The allocation of purchase price related to tangible and intangible assets and liabilities and weighted average amortization period (in years) for each class of asset or liability for The Pointe, Hayden Ferry II, Hearst Tower, Hayden Ferry Lakeside III, IV and V, Westshore Corporate Center, 525 North Tryon, Phoenix Tower, Tempe Gateway and NASCAR Plaza is as follows (in thousands, except weighted average life):
The allocation of purchase price for 525 North Tryon, Phoenix Tower, Tempe Gateway, and NASCAR Plaza is preliminary at December 31, 2012 due to the timing of when the office properties were purchased. The unaudited pro forma effect on the Company's results of operations for the purchase of The Pointe, Hayden Ferry II, Hearst Tower, Hayden Ferry Lakeside III, IV and V, Westshore Corporate Center, 525 North Tryon, Phoenix Tower, Tempe Gateway and NASCAR Plaza as if the purchase had occurred on January 1, 2011 is as follows (in thousands, except per share data):
Included in the Company's consolidated financial statements for the year ended December 31, 2012 were revenues and net income attributable to common stockholders from 2012 acquisitions of $32.0 million and $2.4 million, respectively. On January 17, 2013, the Company purchased Tower Place 200, a 260,000 square foot office tower located in the Buckhead submarket of Atlanta, Georgia, for a gross purchase price of $56.3 million. The purchase of Tower Place 200 was financed with borrowings on our unsecured credit facilities. On January 21, 2013, the Company entered into a purchase and sale agreement to acquire a portfolio of eight office properties totaling 1.0 million square feet located in the Deerwood submarket of Jacksonville, Florida for a gross purchase price of $130 million. Parkway will own 100% of the portfolio and plans to place secured first financing on the properties, simultaneous with closing, totaling approximately 65% of the gross purchase price. Closing is expected to occur by the end of the first quarter of 2013 and is subject to customary closing conditions, including completion of satisfactory due diligence. Parkway intends to fund its share of equity with borrowings from its senior unsecured revolving credit facility. Summary of Dispositions During the year ended December 31, 2012, the Company completed a significant portion of its previously disclosed dispositions as part of its strategic objective of becoming a leading owner of high-quality office assets in higher growth markets in the Sunbelt region of the United States. The Company entered into an agreement to sell 13 office properties totaling 2.7 million square feet owned by Fund I to its existing partner in the fund for a gross sales price of $344.3 million, of which $97.4 million was the Company's share. As of December 31, 2011, the Company had completed the sale of nine of these 13 assets. As of July 1, 2012, the Company had completed the sale of the remaining four Fund I assets. The Company received approximately $14.2 million in net proceeds from the sales of the Fund I assets, and the proceeds were used to reduce amounts outstanding under its credit facilities. Upon sale, the buyer assumed a total of $292.0 million in mortgage loans, of which $82.4 million was Parkway's share. Additionally, during the year ended December 31, 2012, the Company completed the sale of 15 properties included in its strategic sale of a portfolio of non-core assets, for a gross sales price of $147.7 million, generating net proceeds of approximately $94.3 million, with the buyer assuming $41.7 million in mortgage loans upon sale, of which $31.9 million was Parkway's share. The 15 assets that were sold included five assets in Richmond, Virginia, four assets in Memphis, Tennessee, and six assets in Jackson, Mississippi. The Company completed the sale of four additional assets during the year ended December 31, 2012, including the sale of 111 East Wacker, a 1.0 million square foot office property located in Chicago, Illinois, the Wink building, a 32,000 square foot office property in New Orleans, Louisiana, Sugar Grove, a 124,000 square foot office property in Houston, Texas, and Falls Pointe, a 107,000 square foot office property located in Atlanta, Georgia owned by Fund II for an aggregate gross sales price of $168.8 million. The Company received approximately $14.8 million in aggregate net proceeds from these sales, which were used to reduce amounts outstanding under its revolving credit facility and to fund subsequent acquisitions. In connection with the sale of 111 East Wacker, the buyer assumed a $147.9 million mortgage loan upon sale. Contractual Obligations and Minimum Rental Receipts Obligations for tenant improvement allowances and lease inducement costs for leases in place and commitments for building improvements at December 31, 2012 are as follows (in thousands):
Minimum future operating lease payments for various equipment leased at the office properties is as follows for operating leases in place at December 31, 2012 (in thousands):
The following is a schedule by year of future minimum rental receipts under noncancelable leases for office buildings owned at December 31, 2012 (in thousands):
The following is a schedule by year of future minimum ground lease payments at December 31, 2012 (in thousands):
At December 31, 2012, Fund II owned Corporate Center Four in Tampa, Florida that is subject to a ground lease. The lease has a remaining term of approximately 68 years with an expiration date of December 2080. Payments consist of a stated monthly amount that adjusts annually and a development rental rate that is fixed through August 2015. The development rent rate is $0.40 per gross floor foot area through August 2015 and is subject to increase every five years thereafter at the lesser of 10% or the CPI percentage increase for all urban consumers. At December 31, 2012, the Company owned Westshore Corporate Center in Tampa, Florida that is subject to a ground lease. The lease has a remaining term of approximately 22 years with an expiration date of October 2034. Payments consist of a stated monthly amount that adjusts annually through the expiration date. At December 31, 2012, the Company owned NASCAR Plaza in Charlotte, North Carolina that is subject to a ground lease. The lease has a remaining term of approximately 93 years with an expiration date of December 2105. Payments consist of a stated monthly amount through the expiration date. |