x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Indiana (Duke Realty Corporation) | 35-1740409 (Duke Realty Corporation) | |
Indiana (Duke Realty Limited Partnership) | 35-1898425 (Duke Realty Limited Partnership) | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification Number) | |
600 East 96thStreet, Suite 100 Indianapolis, Indiana | 46240 | |
(Address of Principal Executive Offices) | (Zip Code) |
Duke Realty Corporation | Yes x | No o | Duke Realty Limited Partnership | Yes x | No o |
Duke Realty Corporation | Yes x | No o | Duke Realty Limited Partnership | Yes x | No o |
Large accelerated filer x | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o |
Large accelerated filer o | Accelerated filer o | Non-accelerated filer x | Smaller reporting company o |
Duke Realty Corporation | Yes o | No x | Duke Realty Limited Partnership | Yes o | No x |
Class | Outstanding Common Shares of Duke Realty Corporation at October 26, 2016 | |
Common Stock, $.01 par value per share | 354,693,496 |
• | enhances investors' understanding of the General Partner and the Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business; |
• | eliminates duplicative disclosure and provides a more streamlined and readable presentation of information since a substantial portion of the Company's disclosure applies to both the General Partner and the Partnership; and |
• | creates time and cost efficiencies through the preparation of one combined report instead of two separate reports. |
Page | |||
Duke Realty Corporation: | |||
Duke Realty Limited Partnership: | |||
Duke Realty Corporation and Duke Realty Limited Partnership: | |||
September 30, 2016 | December 31, 2015 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Real estate investments: | |||||||
Land and improvements | $ | 1,494,196 | $ | 1,391,763 | |||
Buildings and tenant improvements | 4,919,897 | 4,740,837 | |||||
Construction in progress | 290,647 | 321,062 | |||||
Investments in and advances to unconsolidated companies | 261,447 | 268,390 | |||||
Undeveloped land | 316,369 | 383,045 | |||||
7,282,556 | 7,105,097 | ||||||
Accumulated depreciation | (1,282,033 | ) | (1,192,425 | ) | |||
Net real estate investments | 6,000,523 | 5,912,672 | |||||
Real estate investments and other assets held-for-sale | 18,184 | 45,801 | |||||
Cash and cash equivalents | 110,211 | 22,533 | |||||
Accounts receivable, net of allowance of $1,185 and $1,113 | 26,180 | 18,846 | |||||
Straight-line rent receivable, net of allowance of $6,664 and $6,155 | 118,594 | 116,781 | |||||
Receivables on construction contracts, including retentions | 8,528 | 16,459 | |||||
Deferred leasing and other costs, net of accumulated amortization of $255,300 and $245,426 | 335,109 | 346,374 | |||||
Escrow deposits and other assets | 244,752 | 416,049 | |||||
$ | 6,862,081 | $ | 6,895,515 | ||||
LIABILITIES AND EQUITY | |||||||
Indebtedness: | |||||||
Secured debt, net of deferred financing costs of $1,062 and $1,552 | $ | 385,763 | $ | 738,444 | |||
Unsecured debt, net of deferred financing costs of $23,692 and $20,046 | 2,605,288 | 2,510,697 | |||||
Unsecured line of credit | — | 71,000 | |||||
2,991,051 | 3,320,141 | ||||||
Liabilities related to real estate investments held-for-sale | 238 | 972 | |||||
Construction payables and amounts due subcontractors, including retentions | 51,339 | 54,921 | |||||
Accrued real estate taxes | 93,722 | 71,617 | |||||
Accrued interest | 30,601 | 34,447 | |||||
Other accrued expenses | 41,314 | 61,827 | |||||
Other liabilities | 103,602 | 106,283 | |||||
Tenant security deposits and prepaid rents | 41,292 | 40,506 | |||||
Total liabilities | 3,353,159 | 3,690,714 | |||||
Shareholders' equity: | |||||||
Common shares ($0.01 par value); 600,000 shares authorized; 354,616 and 345,285 shares issued and outstanding, respectively | 3,546 | 3,453 | |||||
Additional paid-in capital | 5,187,374 | 4,961,923 | |||||
Accumulated other comprehensive income | 938 | 1,806 | |||||
Distributions in excess of net income | (1,710,215 | ) | (1,785,250 | ) | |||
Total shareholders' equity | 3,481,643 | 3,181,932 | |||||
Noncontrolling interests | 27,279 | 22,869 | |||||
Total equity | 3,508,922 | 3,204,801 | |||||
$ | 6,862,081 | $ | 6,895,515 |
Three Months Ended | Nine Months Ended | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenues: | |||||||||||||||
Rental and related revenue | $ | 206,848 | $ | 200,938 | $ | 609,171 | $ | 617,549 | |||||||
General contractor and service fee revenue | 19,351 | 33,599 | 68,546 | 110,320 | |||||||||||
226,199 | 234,537 | 677,717 | 727,869 | ||||||||||||
Expenses: | |||||||||||||||
Rental expenses | 26,084 | 30,137 | 81,092 | 96,355 | |||||||||||
Real estate taxes | 31,313 | 27,702 | 90,888 | 86,228 | |||||||||||
General contractor and other services expenses | 17,182 | 29,694 | 60,330 | 98,455 | |||||||||||
Depreciation and amortization | 80,688 | 79,898 | 238,647 | 240,135 | |||||||||||
155,267 | 167,431 | 470,957 | 521,173 | ||||||||||||
Other operating activities: | |||||||||||||||
Equity in earnings (loss) of unconsolidated companies | 12,010 | (5,088 | ) | 37,404 | 16,281 | ||||||||||
Gain on dissolution of unconsolidated company | — | — | 30,697 | — | |||||||||||
Promote income | 2,212 | — | 26,299 | — | |||||||||||
Gain on sale of properties | 82,698 | 71,259 | 137,589 | 202,153 | |||||||||||
Gain on land sales | 1,601 | 1,659 | 2,438 | 24,096 | |||||||||||
Other operating expenses | (1,424 | ) | (1,467 | ) | (3,496 | ) | (4,579 | ) | |||||||
Impairment charges | (3,042 | ) | (2,426 | ) | (15,098 | ) | (7,896 | ) | |||||||
General and administrative expenses | (12,534 | ) | (11,340 | ) | (42,216 | ) | (47,582 | ) | |||||||
81,521 | 52,597 | 173,617 | 182,473 | ||||||||||||
Operating income | 152,453 | 119,703 | 380,377 | 389,169 | |||||||||||
Other income (expenses): | |||||||||||||||
Interest and other income, net | 507 | 1,343 | 3,597 | 3,056 | |||||||||||
Interest expense | (34,606 | ) | (41,615 | ) | (109,520 | ) | (134,576 | ) | |||||||
(Loss) gain on debt extinguishment | (6,243 | ) | 64 | (8,673 | ) | (82,589 | ) | ||||||||
Acquisition-related activity | (7 | ) | (5,660 | ) | (82 | ) | (6,993 | ) | |||||||
Income from continuing operations before income taxes | 112,104 | 73,835 | 265,699 | 168,067 | |||||||||||
Income tax benefit | 359 | 3,305 | 173 | 4,109 | |||||||||||
Income from continuing operations | 112,463 | 77,140 | 265,872 | 172,176 | |||||||||||
Discontinued operations: | |||||||||||||||
Income (loss) before gain on sales | 377 | (43 | ) | 741 | 10,546 | ||||||||||
Gain on sale of depreciable properties, net of tax | 319 | 111 | 485 | 414,620 | |||||||||||
Income from discontinued operations | 696 | 68 | 1,226 | 425,166 | |||||||||||
Net income | 113,159 | 77,208 | 267,098 | 597,342 | |||||||||||
Net income attributable to noncontrolling interests | (1,145 | ) | (774 | ) | (2,710 | ) | (6,284 | ) | |||||||
Net income attributable to common shareholders | $ | 112,014 | $ | 76,434 | $ | 264,388 | $ | 591,058 | |||||||
Basic net income per common share: | |||||||||||||||
Continuing operations attributable to common shareholders | $ | 0.32 | $ | 0.22 | $ | 0.75 | $ | 0.49 | |||||||
Discontinued operations attributable to common shareholders | — | — | — | 1.22 | |||||||||||
Total | $ | 0.32 | $ | 0.22 | $ | 0.75 | $ | 1.71 | |||||||
Diluted net income per common share: | |||||||||||||||
Continuing operations attributable to common shareholders | $ | 0.32 | $ | 0.22 | $ | 0.75 | $ | 0.49 | |||||||
Discontinued operations attributable to common shareholders | — | — | — | 1.21 | |||||||||||
Total | $ | 0.32 | $ | 0.22 | $ | 0.75 | $ | 1.70 | |||||||
Weighted average number of common shares outstanding | 351,856 | 345,256 | 348,341 | 344,986 | |||||||||||
Weighted average number of common shares and potential dilutive securities | 358,981 | 352,150 | 355,405 | 352,013 | |||||||||||
Comprehensive income: | |||||||||||||||
Net income | $ | 113,159 | $ | 77,208 | $ | 267,098 | $ | 597,342 | |||||||
Other comprehensive loss: | |||||||||||||||
Amortization of interest contracts | (255 | ) | (274 | ) | (845 | ) | (837 | ) | |||||||
Other | (23 | ) | — | (23 | ) | (123 | ) | ||||||||
Total other comprehensive loss | (278 | ) | (274 | ) | (868 | ) | (960 | ) | |||||||
Comprehensive income | $ | 112,881 | $ | 76,934 | $ | 266,230 | $ | 596,382 |
2016 | 2015 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 267,098 | $ | 597,342 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation of buildings and tenant improvements | 191,554 | 192,135 | |||||
Amortization of deferred leasing and other costs | 47,093 | 51,517 | |||||
Amortization of deferred financing costs | 3,998 | 5,543 | |||||
Straight-line rental income and expense, net | (10,832 | ) | (18,498 | ) | |||
Impairment charges | 15,098 | 7,896 | |||||
Loss on debt extinguishment | 8,673 | 82,589 | |||||
Gain on dissolution of unconsolidated company | (30,697 | ) | — | ||||
Gains on land and depreciated property sales | (140,512 | ) | (644,044 | ) | |||
Third-party construction contracts, net | 5,601 | (3,805 | ) | ||||
Other accrued revenues and expenses, net | 14,773 | 7,129 | |||||
Operating distributions received (less than) in excess of equity in earnings from unconsolidated companies | (24,476 | ) | 414 | ||||
Net cash provided by operating activities | 347,371 | 278,218 | |||||
Cash flows from investing activities: | |||||||
Development of real estate investments | (308,199 | ) | (221,201 | ) | |||
Acquisition of real estate investments and related intangible assets | (16,029 | ) | (28,849 | ) | |||
Acquisition of undeveloped land | (77,593 | ) | (39,881 | ) | |||
Second generation tenant improvements, leasing costs and building improvements | (39,169 | ) | (45,688 | ) | |||
Other deferred leasing costs | (25,949 | ) | (26,940 | ) | |||
Other assets | 164,450 | (38,104 | ) | ||||
Proceeds from land and depreciated property sales, net | 369,118 | 1,534,177 | |||||
Capital distributions from unconsolidated companies | 52,514 | 68,915 | |||||
Capital contributions and advances to unconsolidated companies | (54,853 | ) | (55,020 | ) | |||
Net cash provided by investing activities | 64,290 | 1,147,409 | |||||
Cash flows from financing activities: | |||||||
Proceeds from issuance of common shares, net | 217,513 | 4,592 | |||||
Proceeds from unsecured debt | 375,000 | — | |||||
Payments on unsecured debt | (285,339 | ) | (759,948 | ) | |||
Payments on secured indebtedness including principal amortization | (352,723 | ) | (221,085 | ) | |||
Repayments of line of credit, net | (71,000 | ) | (106,000 | ) | |||
Distributions to common shareholders | (187,885 | ) | (175,967 | ) | |||
Distributions to noncontrolling interests | (1,955 | ) | (1,403 | ) | |||
Change in book overdrafts | (11,025 | ) | (7,754 | ) | |||
Deferred financing costs | (6,569 | ) | (110 | ) | |||
Net cash used for financing activities | (323,983 | ) | (1,267,675 | ) | |||
Net increase in cash and cash equivalents | 87,678 | 157,952 | |||||
Cash and cash equivalents at beginning of period | 22,533 | 17,922 | |||||
Cash and cash equivalents at end of period | $ | 110,211 | $ | 175,874 | |||
Non-cash investing and financing activities: | |||||||
Mortgage notes receivable from buyers in property sales | $ | 1,685 | $ | 204,428 | |||
Conversion of Limited Partner Units to common shares | $ | 1,015 | $ | 2,416 |
Common Shareholders | ||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Distributions in Excess of Net Income | Noncontrolling Interests | Total | |||||||||||||||||||
Balance at December 31, 2015 | $ | 3,453 | $ | 4,961,923 | $ | 1,806 | $ | (1,785,250 | ) | $ | 22,869 | $ | 3,204,801 | |||||||||||
Net income | — | — | 264,388 | 2,710 | 267,098 | |||||||||||||||||||
Other comprehensive loss | — | — | (868 | ) | — | — | (868 | ) | ||||||||||||||||
Issuance of common shares | 84 | 217,429 | — | — | — | 217,513 | ||||||||||||||||||
Stock-based compensation plan activity | 8 | 7,008 | — | (1,468 | ) | 4,670 | 10,218 | |||||||||||||||||
Conversion of Limited Partner Units | 1 | 1,014 | — | — | (1,015 | ) | — | |||||||||||||||||
Distributions to common shareholders ($0.54 per share) | — | — | — | (187,885 | ) | — | (187,885 | ) | ||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | (1,955 | ) | (1,955 | ) | ||||||||||||||||
Balance at September 30, 2016 | $ | 3,546 | $ | 5,187,374 | $ | 938 | $ | (1,710,215 | ) | $ | 27,279 | $ | 3,508,922 |
September 30, 2016 | December 31, 2015 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Real estate investments: | |||||||
Land and improvements | $ | 1,494,196 | $ | 1,391,763 | |||
Buildings and tenant improvements | 4,919,897 | 4,740,837 | |||||
Construction in progress | 290,647 | 321,062 | |||||
Investments in and advances to unconsolidated companies | 261,447 | 268,390 | |||||
Undeveloped land | 316,369 | 383,045 | |||||
7,282,556 | 7,105,097 | ||||||
Accumulated depreciation | (1,282,033 | ) | (1,192,425 | ) | |||
Net real estate investments | 6,000,523 | 5,912,672 | |||||
Real estate investments and other assets held-for-sale | 18,184 | 45,801 | |||||
Cash and cash equivalents | 110,211 | 22,533 | |||||
Accounts receivable, net of allowance of $1,185 and $1,113 | 26,180 | 18,846 | |||||
Straight-line rent receivable, net of allowance of $6,664 and $6,155 | 118,594 | 116,781 | |||||
Receivables on construction contracts, including retentions | 8,528 | 16,459 | |||||
Deferred leasing and other costs, net of accumulated amortization of $255,300 and $245,426 | 335,109 | 346,374 | |||||
Escrow deposits and other assets | 244,752 | 416,049 | |||||
$ | 6,862,081 | $ | 6,895,515 | ||||
LIABILITIES AND EQUITY | |||||||
Indebtedness: | |||||||
Secured debt, net of deferred financing costs of $1,062 and $1,552 | $ | 385,763 | $ | 738,444 | |||
Unsecured debt, net of deferred financing costs of $23,692 and $20,046 | 2,605,288 | 2,510,697 | |||||
Unsecured line of credit | — | 71,000 | |||||
2,991,051 | 3,320,141 | ||||||
Liabilities related to real estate investments held-for-sale | 238 | 972 | |||||
Construction payables and amounts due subcontractors, including retentions | 51,339 | 54,921 | |||||
Accrued real estate taxes | 93,722 | 71,617 | |||||
Accrued interest | 30,601 | 34,447 | |||||
Other accrued expenses | 41,314 | 61,827 | |||||
Other liabilities | 103,602 | 106,283 | |||||
Tenant security deposits and prepaid rents | 41,292 | 40,506 | |||||
Total liabilities | 3,353,159 | 3,690,714 | |||||
Partners' equity: | |||||||
Common equity (354,616 and 345,285 General Partner Units issued and outstanding, respectively) | 3,480,705 | 3,180,126 | |||||
3,480,705 | 3,180,126 | ||||||
Limited Partners' common equity (3,427 and 3,487 Limited Partner Units issued and outstanding, respectively) | 24,478 | 20,032 | |||||
Accumulated other comprehensive income | 938 | 1,806 | |||||
Total partners' equity | 3,506,121 | 3,201,964 | |||||
Noncontrolling interests | 2,801 | 2,837 | |||||
Total equity | 3,508,922 | 3,204,801 | |||||
$ | 6,862,081 | $ | 6,895,515 |
Three Months Ended | Nine Months Ended | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenues: | |||||||||||||||
Rental and related revenue | $ | 206,848 | $ | 200,938 | $ | 609,171 | $ | 617,549 | |||||||
General contractor and service fee revenue | 19,351 | 33,599 | 68,546 | 110,320 | |||||||||||
226,199 | 234,537 | 677,717 | 727,869 | ||||||||||||
Expenses: | |||||||||||||||
Rental expenses | 26,084 | 30,137 | 81,092 | 96,355 | |||||||||||
Real estate taxes | 31,313 | 27,702 | 90,888 | 86,228 | |||||||||||
General contractor and other services expenses | 17,182 | 29,694 | 60,330 | 98,455 | |||||||||||
Depreciation and amortization | 80,688 | 79,898 | 238,647 | 240,135 | |||||||||||
155,267 | 167,431 | 470,957 | 521,173 | ||||||||||||
Other operating activities: | |||||||||||||||
Equity in earnings (loss) of unconsolidated companies | 12,010 | (5,088 | ) | 37,404 | 16,281 | ||||||||||
Gain on dissolution of unconsolidated company | — | — | 30,697 | — | |||||||||||
Promote income | 2,212 | — | 26,299 | — | |||||||||||
Gain on sale of properties | 82,698 | 71,259 | 137,589 | 202,153 | |||||||||||
Gain on land sales | 1,601 | 1,659 | 2,438 | 24,096 | |||||||||||
Other operating expenses | (1,424 | ) | (1,467 | ) | (3,496 | ) | (4,579 | ) | |||||||
Impairment charges | (3,042 | ) | (2,426 | ) | (15,098 | ) | (7,896 | ) | |||||||
General and administrative expenses | (12,534 | ) | (11,340 | ) | (42,216 | ) | (47,582 | ) | |||||||
81,521 | 52,597 | 173,617 | 182,473 | ||||||||||||
Operating income | 152,453 | 119,703 | 380,377 | 389,169 | |||||||||||
Other income (expenses): | |||||||||||||||
Interest and other income, net | 507 | 1,343 | 3,597 | 3,056 | |||||||||||
Interest expense | (34,606 | ) | (41,615 | ) | (109,520 | ) | (134,576 | ) | |||||||
(Loss) gain on debt extinguishment | (6,243 | ) | 64 | (8,673 | ) | (82,589 | ) | ||||||||
Acquisition-related activity | (7 | ) | (5,660 | ) | (82 | ) | (6,993 | ) | |||||||
Income from continuing operations before income taxes | 112,104 | 73,835 | 265,699 | 168,067 | |||||||||||
Income tax benefit | 359 | 3,305 | 173 | 4,109 | |||||||||||
Income from continuing operations | 112,463 | 77,140 | 265,872 | 172,176 | |||||||||||
Discontinued operations: | |||||||||||||||
Income (loss) before gain on sales | 377 | (43 | ) | 741 | 10,546 | ||||||||||
Gain on sale of depreciable properties, net of tax | 319 | 111 | 485 | 414,620 | |||||||||||
Income from discontinued operations | 696 | 68 | 1,226 | 425,166 | |||||||||||
Net income | 113,159 | 77,208 | 267,098 | 597,342 | |||||||||||
Net income attributable to noncontrolling interests | (14 | ) | (23 | ) | (40 | ) | (72 | ) | |||||||
Net income attributable to common unitholders | $ | 113,145 | $ | 77,185 | $ | 267,058 | $ | 597,270 | |||||||
Basic net income per Common Unit: | |||||||||||||||
Continuing operations attributable to common unitholders | $ | 0.32 | $ | 0.22 | $ | 0.75 | $ | 0.49 | |||||||
Discontinued operations attributable to common unitholders | — | — | — | 1.22 | |||||||||||
Total | $ | 0.32 | $ | 0.22 | $ | 0.75 | $ | 1.71 | |||||||
Diluted net income per Common Unit: | |||||||||||||||
Continuing operations attributable to common unitholders | $ | 0.32 | $ | 0.22 | $ | 0.75 | $ | 0.49 | |||||||
Discontinued operations attributable to common unitholders | — | — | — | 1.21 | |||||||||||
Total | $ | 0.32 | $ | 0.22 | $ | 0.75 | $ | 1.70 | |||||||
Weighted average number of Common Units outstanding | 355,351 | 348,760 | 351,840 | 348,595 | |||||||||||
Weighted average number of Common Units and potential dilutive securities | 358,981 | 352,150 | 355,405 | 352,013 | |||||||||||
Comprehensive income: | |||||||||||||||
Net income | $ | 113,159 | $ | 77,208 | $ | 267,098 | $ | 597,342 | |||||||
Other comprehensive loss: | |||||||||||||||
Amortization of interest contracts | (255 | ) | (274 | ) | (845 | ) | (837 | ) | |||||||
Other | (23 | ) | — | (23 | ) | (123 | ) | ||||||||
Total other comprehensive loss | (278 | ) | (274 | ) | (868 | ) | (960 | ) | |||||||
Comprehensive income | $ | 112,881 | $ | 76,934 | $ | 266,230 | $ | 596,382 |
2016 | 2015 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 267,098 | $ | 597,342 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation of buildings and tenant improvements | 191,554 | 192,135 | |||||
Amortization of deferred leasing and other costs | 47,093 | 51,517 | |||||
Amortization of deferred financing costs | 3,998 | 5,543 | |||||
Straight-line rental income and expense, net | (10,832 | ) | (18,498 | ) | |||
Impairment charges | 15,098 | 7,896 | |||||
Loss on debt extinguishment | 8,673 | 82,589 | |||||
Gain on dissolution of unconsolidated company | (30,697 | ) | — | ||||
Gains on land and depreciated property sales | (140,512 | ) | (644,044 | ) | |||
Third-party construction contracts, net | 5,601 | (3,805 | ) | ||||
Other accrued revenues and expenses, net | 14,773 | 6,949 | |||||
Operating distributions received (less than) in excess of equity in earnings from unconsolidated companies | (24,476 | ) | 414 | ||||
Net cash provided by operating activities | 347,371 | 278,038 | |||||
Cash flows from investing activities: | |||||||
Development of real estate investments | (308,199 | ) | (221,201 | ) | |||
Acquisition of real estate investments and related intangible assets | (16,029 | ) | (28,849 | ) | |||
Acquisition of undeveloped land | (77,593 | ) | (39,881 | ) | |||
Second generation tenant improvements, leasing costs and building improvements | (39,169 | ) | (45,688 | ) | |||
Other deferred leasing costs | (25,949 | ) | (26,940 | ) | |||
Other assets | 164,450 | (38,104 | ) | ||||
Proceeds from land and depreciated property sales, net | 369,118 | 1,534,177 | |||||
Capital distributions from unconsolidated companies | 52,514 | 68,915 | |||||
Capital contributions and advances to unconsolidated companies | (54,853 | ) | (55,020 | ) | |||
Net cash provided by investing activities | 64,290 | 1,147,409 | |||||
Cash flows from financing activities: | |||||||
Contributions from the General Partner | 217,513 | 4,772 | |||||
Proceeds from unsecured debt | 375,000 | — | |||||
Payments on unsecured debt | (285,339 | ) | (759,948 | ) | |||
Payments on secured indebtedness including principal amortization | (352,723 | ) | (221,085 | ) | |||
Repayments of line of credit, net | (71,000 | ) | (106,000 | ) | |||
Distributions to common unitholders | (189,764 | ) | (177,815 | ) | |||
Contributions from (distributions to) noncontrolling interests, net | (76 | ) | 445 | ||||
Change in book overdrafts | (11,025 | ) | (7,754 | ) | |||
Deferred financing costs | (6,569 | ) | (110 | ) | |||
Net cash used for financing activities | (323,983 | ) | (1,267,495 | ) | |||
Net increase in cash and cash equivalents | 87,678 | 157,952 | |||||
Cash and cash equivalents at beginning of period | 22,533 | 17,922 | |||||
Cash and cash equivalents at end of period | $ | 110,211 | $ | 175,874 | |||
Non-cash investing and financing activities: | |||||||
Mortgage notes receivable from buyers in property sales | $ | 1,685 | $ | 204,428 | |||
Conversion of Limited Partner Units to common shares of the General Partner | $ | 1,015 | $ | 2,416 |
Common Unitholders | |||||||||||||||||||||||
General | Limited | Accumulated | |||||||||||||||||||||
Partner's | Partners' | Other | Total | ||||||||||||||||||||
Common Equity | Common Equity | Comprehensive Income | Partners' Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||
Balance at December 31, 2015 | $ | 3,180,126 | $ | 20,032 | $ | 1,806 | $ | 3,201,964 | $ | 2,837 | $ | 3,204,801 | |||||||||||
Net income | 264,388 | 2,670 | — | 267,058 | 40 | 267,098 | |||||||||||||||||
Other comprehensive loss | — | — | (868 | ) | (868 | ) | — | (868 | ) | ||||||||||||||
Capital contribution from the General Partner | 217,513 | — | — | 217,513 | — | 217,513 | |||||||||||||||||
Stock-based compensation plan activity | 5,548 | 4,670 | — | 10,218 | — | 10,218 | |||||||||||||||||
Conversion of Limited Partner Units to common shares of the General Partner | 1,015 | (1,015 | ) | — | — | — | — | ||||||||||||||||
Distributions to Partners ($0.54 per Common Unit) | (187,885 | ) | (1,879 | ) | — | (189,764 | ) | — | (189,764 | ) | |||||||||||||
Distributions to noncontrolling interests | — | — | — | — | (76 | ) | (76 | ) | |||||||||||||||
Balance at September 30, 2016 | $ | 3,480,705 | $ | 24,478 | $ | 938 | $ | 3,506,121 | $ | 2,801 | $ | 3,508,922 |
Real estate assets | $ | 72,824 | |
Lease related intangible assets | 6,427 | ||
Fair value of acquired net assets | $ | 79,251 |
Fair value of one property received in non-cash distribution | $ | 63,000 | |
Cash received at dissolution | 2,760 | ||
Carrying value of investment in properties distributed to partners | (35,063 | ) | |
Gain on dissolution of unconsolidated company | $ | 30,697 |
Low | High | |
Discount rate | 7.46% | 8.10% |
Exit capitalization rate | 6.46% | 6.96% |
Lease-up period (months) | 12 | 12 |
Net rental rate per square foot - Industrial | $3.39 | $3.39 |
Net rental rate per square foot - Medical Office | $15.40 | $15.40 |
Book Value at 12/31/2015 | Book Value at 9/30/2016 | Fair Value at 12/31/2015 | Issuances and Assumptions | Payments/Payoffs | Adjustments to Fair Value | Fair Value at 9/30/2016 | |||||||||||||||||||||
Fixed rate secured debt | $ | 736,896 | $ | 384,025 | $ | 789,095 | $ | — | $ | (352,382 | ) | $ | (11,765 | ) | $ | 424,948 | |||||||||||
Variable rate secured debt | 3,100 | 2,800 | 3,100 | — | (300 | ) | — | 2,800 | |||||||||||||||||||
Unsecured debt | 2,530,743 | 2,628,980 | 2,624,795 | 375,000 | (276,764 | ) | 93,015 | 2,816,046 | |||||||||||||||||||
Unsecured line of credit | 71,000 | — | 70,852 | — | (71,000 | ) | 148 | — | |||||||||||||||||||
Total | $ | 3,341,739 | $ | 3,015,805 | $ | 3,487,842 | $ | 375,000 | $ | (700,446 | ) | $ | 81,398 | $ | 3,243,794 | ||||||||||||
Less: Deferred financing costs | 21,598 | 24,754 | |||||||||||||||||||||||||
Total indebtedness as reported on the consolidated balance sheets | $ | 3,320,141 | $ | 2,991,051 |
Description | Maximum Capacity | Maturity Date | Outstanding Balance at September 30, 2016 | ||||||
Unsecured Line of Credit - Partnership | $ | 1,200,000 | January 2019 | $ | — |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Management fees | $ | 1,035 | $ | 1,835 | $ | 3,585 | $ | 5,388 | |||||||
Leasing fees | 629 | 692 | 2,061 | 1,714 | |||||||||||
Construction and development fees | 1,307 | 2,247 | 6,666 | 3,377 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
General Partner | |||||||||||||||
Net income attributable to common shareholders | $ | 112,014 | $ | 76,434 | $ | 264,388 | $ | 591,058 | |||||||
Less: Dividends on participating securities | (580 | ) | (593 | ) | (1,751 | ) | (1,803 | ) | |||||||
Basic net income attributable to common shareholders | 111,434 | 75,841 | 262,637 | 589,255 | |||||||||||
Add back dividends on dilutive participating securities | 580 | 593 | 1,751 | 1,803 | |||||||||||
Noncontrolling interest in earnings of common unitholders | 1,131 | 751 | 2,670 | 6,212 | |||||||||||
Diluted net income attributable to common shareholders | $ | 113,145 | $ | 77,185 | $ | 267,058 | $ | 597,270 | |||||||
Weighted average number of common shares outstanding | 351,856 | 345,256 | 348,341 | 344,986 | |||||||||||
Weighted average Limited Partner Units outstanding | 3,495 | 3,504 | 3,499 | 3,609 | |||||||||||
Other potential dilutive shares | 3,630 | 3,390 | 3,565 | 3,418 | |||||||||||
Weighted average number of common shares and potential dilutive securities | 358,981 | 352,150 | 355,405 | 352,013 | |||||||||||
Partnership | |||||||||||||||
Net income attributable to common unitholders | $ | 113,145 | $ | 77,185 | $ | 267,058 | $ | 597,270 | |||||||
Less: Distributions on participating securities | (580 | ) | (593 | ) | (1,751 | ) | (1,803 | ) | |||||||
Basic net income attributable to common unitholders | $ | 112,565 | $ | 76,592 | $ | 265,307 | $ | 595,467 | |||||||
Add back distributions on dilutive participating securities | 580 | 593 | 1,751 | 1,803 | |||||||||||
Diluted net income attributable to common unitholders | $ | 113,145 | $ | 77,185 | $ | 267,058 | $ | 597,270 | |||||||
Weighted average number of Common Units outstanding | 355,351 | 348,760 | 351,840 | 348,595 | |||||||||||
Other potential dilutive units | 3,630 | 3,390 | 3,565 | 3,418 | |||||||||||
Weighted average number of Common Units and potential dilutive securities | 358,981 | 352,150 | 355,405 | 352,013 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||
General Partner and Partnership | |||||||||||
Potential dilutive shares or units: | |||||||||||
Anti-dilutive outstanding potential shares or units under fixed stock option and other stock-based compensation plans | 170 | 997 | 170 | 997 | |||||||
Outstanding participating securities | — | — | — | — |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Revenues | ||||||||||||||||
Rental Operations: | ||||||||||||||||
Industrial | $ | 149,746 | $ | 136,276 | $ | 432,945 | $ | 419,391 | ||||||||
Medical Office | 45,353 | 39,911 | 130,713 | 120,213 | ||||||||||||
Non-reportable Rental Operations | 10,065 | 23,277 | 38,490 | 72,103 | ||||||||||||
Service Operations | 19,351 | 33,599 | 68,546 | 110,320 | ||||||||||||
Total segment revenues | 224,515 | 233,063 | 670,694 | 722,027 | ||||||||||||
Other revenue | 1,684 | 1,474 | 7,023 | 5,842 | ||||||||||||
Consolidated revenue from continuing operations | 226,199 | 234,537 | 677,717 | 727,869 | ||||||||||||
Discontinued operations | 380 | 7 | 735 | 32,171 | ||||||||||||
Consolidated revenue | $ | 226,579 | $ | 234,544 | $ | 678,452 | $ | 760,040 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
PNOI | ||||||||||||||||
Industrial | $ | 109,350 | $ | 96,966 | $ | 314,349 | $ | 285,087 | ||||||||
Medical Office | 29,401 | 25,827 | 84,822 | 76,878 | ||||||||||||
Non-reportable Rental Operations | 4,083 | 4,636 | 12,273 | 14,100 | ||||||||||||
PNOI, excluding all sold/held-for-sale properties | 142,834 | 127,429 | 411,444 | 376,065 | ||||||||||||
PNOI from sold/held-for-sale properties included in continuing operations | 1,840 | 12,136 | 16,512 | 46,635 | ||||||||||||
PNOI, continuing operations | $ | 144,674 | $ | 139,565 | $ | 427,956 | $ | 422,700 | ||||||||
Earnings from Service Operations | 2,169 | 3,905 | 8,216 | 11,865 | ||||||||||||
Rental Operations revenues and expenses excluded from PNOI: | ||||||||||||||||
Straight-line rental income and expense, net | 5,008 | 5,723 | 10,832 | 16,830 | ||||||||||||
Revenues related to lease buyouts | 1,491 | 408 | 1,725 | 1,366 | ||||||||||||
Amortization of lease concessions and above and below market rents | (303 | ) | (357 | ) | (1,361 | ) | (2,559 | ) | ||||||||
Intercompany rents and other adjusting items | (27 | ) | (434 | ) | (246 | ) | (1,306 | ) | ||||||||
Non-Segment Items: | ||||||||||||||||
Equity in earnings (loss) of unconsolidated companies | 12,010 | (5,088 | ) | 37,404 | 16,281 | |||||||||||
Gain on dissolution of unconsolidated company | — | — | 30,697 | — | ||||||||||||
Promote income | 2,212 | — | 26,299 | — | ||||||||||||
Interest expense | (34,606 | ) | (41,615 | ) | (109,520 | ) | (134,576 | ) | ||||||||
Depreciation and amortization expense | (80,688 | ) | (79,898 | ) | (238,647 | ) | (240,135 | ) | ||||||||
Gain on sale of properties | 82,698 | 71,259 | 137,589 | 202,153 | ||||||||||||
Impairment charges on non-depreciable properties | (3,042 | ) | (2,426 | ) | (15,098 | ) | (7,896 | ) | ||||||||
Interest and other income, net | 507 | 1,343 | 3,597 | 3,056 | ||||||||||||
General and administrative expenses | (12,534 | ) | (11,340 | ) | (42,216 | ) | (47,582 | ) | ||||||||
Gain on land sales | 1,601 | 1,659 | 2,438 | 24,096 | ||||||||||||
Other operating expenses | (1,424 | ) | (1,467 | ) | (3,496 | ) | (4,579 | ) | ||||||||
(Loss) gain on extinguishment of debt | (6,243 | ) | 64 | (8,673 | ) | (82,589 | ) | |||||||||
Acquisition-related activity | (7 | ) | (5,660 | ) | (82 | ) | (6,993 | ) | ||||||||
Other non-segment revenues and expenses, net | (1,392 | ) | (1,806 | ) | (1,715 | ) | (2,065 | ) | ||||||||
Income from continuing operations before income taxes | $ | 112,104 | $ | 73,835 | $ | 265,699 | $ | 168,067 |
September 30, 2016 | December 31, 2015 | ||||||
Assets | |||||||
Rental Operations: | |||||||
Industrial | $ | 4,712,532 | $ | 4,552,107 | |||
Medical Office | 1,319,955 | 1,269,546 | |||||
Non-reportable Rental Operations | 214,130 | 367,469 | |||||
Service Operations | 129,775 | 137,257 | |||||
Total segment assets | 6,376,392 | 6,326,379 | |||||
Non-segment assets | 485,689 | 569,136 | |||||
Consolidated assets | $ | 6,862,081 | $ | 6,895,515 |
Held-for-Sale at September 30, 2016 | Sold Year-to-Date in 2016 | Sold in 2015 | Total | ||||
Industrial | 0 | 0 | 5 | 5 | |||
Medical Office | 0 | 0 | 1 | 1 | |||
Non-reportable Rental Operations | 0 | 0 | 56 | 56 | |||
Total properties included in discontinued operations | 0 | 0 | 62 | 62 | |||
Properties excluded from discontinued operations | 1 | 22 | 91 | 114 | |||
Total properties sold or classified as held-for-sale | 1 | 22 | 153 | 176 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenues | $ | 380 | $ | 7 | $ | 735 | $ | 32,171 | |||||||
Operating expenses | (3 | ) | (50 | ) | 6 | (12,449 | ) | ||||||||
Depreciation and amortization | — | — | — | (3,517 | ) | ||||||||||
Operating income | 377 | (43 | ) | 741 | 16,205 | ||||||||||
Interest expense | — | — | — | (5,659 | ) | ||||||||||
Income before gain on sales | 377 | (43 | ) | 741 | 10,546 | ||||||||||
Gain on sale of depreciable properties | 319 | 66 | 485 | 417,795 | |||||||||||
Income from discontinued operations before income taxes | 696 | 23 | 1,226 | 428,341 | |||||||||||
Income tax expense | — | 45 | — | (3,175 | ) | ||||||||||
Income from discontinued operations | $ | 696 | $ | 68 | $ | 1,226 | $ | 425,166 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Income from continuing operations attributable to common shareholders | $ | 111,325 | $ | 76,367 | $ | 263,174 | $ | 170,294 | |||||||
Income from discontinued operations attributable to common shareholders | 689 | 67 | 1,214 | 420,764 | |||||||||||
Net income attributable to common shareholders | $ | 112,014 | $ | 76,434 | $ | 264,388 | $ | 591,058 |
Held-for-Sale Properties Included in Continuing Operations | |||||||
September 30, 2016 | December 31, 2015 | ||||||
Land and improvements | $ | 5,142 | $ | 9,797 | |||
Buildings and tenant improvements | 6,032 | 39,480 | |||||
Undeveloped land | 9,939 | — | |||||
Accumulated depreciation | (3,763 | ) | (7,183 | ) | |||
Deferred leasing and other costs, net | 419 | 3,293 | |||||
Other assets | 415 | 414 | |||||
Total assets held-for-sale | $ | 18,184 | $ | 45,801 | |||
Accrued expenses | $ | 150 | $ | 322 | |||
Other liabilities | 88 | 650 | |||||
Total liabilities held-for-sale | $ | 238 | $ | 972 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Impairment charges - land | $ | — | $ | 2,426 | $ | 12,056 | $ | 7,032 | |||||||
Impairment charges - building | 3,042 | — | 3,042 | 864 | |||||||||||
Impairment charges | $ | 3,042 | $ | 2,426 | $ | 15,098 | $ | 7,896 |
Class of stock/units | Quarterly Amount per Share or Unit | Record Date | Payment Date | ||
Common - Quarterly | $0.19 | November 16, 2016 | November 30, 2016 |
• | Changes in general economic and business conditions, including the financial condition of our tenants and the value of our real estate assets; |
• | The General Partner's continued qualification as a REIT for U.S. federal income tax purposes; |
• | Heightened competition for tenants and potential decreases in property occupancy; |
• | Potential changes in the financial markets and interest rates; |
• | Volatility in the General Partner's stock price and trading volume; |
• | Our continuing ability to raise funds on favorable terms, or at all; |
• | Our ability to successfully identify, acquire, develop and/or manage properties on terms that are favorable to us; |
• | Potential increases in real estate construction costs; |
• | Our ability to successfully dispose of properties on terms that are favorable to us, including, without limitation, through one or more transactions that are consistent with our previously disclosed strategic plans; |
• | Our ability to retain our current credit ratings; |
• | Inherent risks in the real estate business, including, but not limited to, tenant defaults, potential liability relating to environmental matters and liquidity of real estate investments; and |
• | Other risks and uncertainties described herein, as well as those risks and uncertainties discussed from time to time in our other reports and other public filings with the Securities and Exchange Commission (the "SEC"). |
• | Owned or jointly controlled 566 primarily industrial and medical office properties, of which 545 properties with 131.9 million square feet were in service and 21 properties with 7.2 million square feet were under development. The 545 in-service properties were comprised of 486 consolidated properties with 118.6 million square feet and 59 jointly controlled unconsolidated properties with 13.3 million square feet. The 21 properties under development consisted of 20 consolidated properties with 6.5 million square feet and one jointly controlled unconsolidated property with 708,000 square feet. |
• | Owned directly, or through ownership interests in unconsolidated joint ventures (with acreage not adjusted for our percentage ownership interest), approximately 2,600 acres of land and controlled approximately 1,600 acres through purchase options. |
Total Square Feet (in thousands) | Percent of Total Square Feet | Percent Leased* | Average Annual Net Effective Rent** | ||||||||||||||||||
Type | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||
Industrial | 111,148 | 105,258 | 93.7 | % | 91.7 | % | 97.5 | % | 96.7 | % | $4.10 | $4.02 | |||||||||
Medical Office | 5,580 | 5,172 | 4.7 | % | 4.5 | % | 95.0 | % | 94.8 | % | $23.75 | $23.13 | |||||||||
Non-reportable Rental Operations | 1,876 | 4,407 | 1.6 | % | 3.8 | % | 79.3 | % | 87.6 | % | $14.73 | $12.85 | |||||||||
Total Consolidated | 118,604 | 114,837 | 100.0 | % | 100.0 | % | 97.1 | % | 96.3 | % | $5.14 | $5.18 | |||||||||
Unconsolidated Joint Ventures | 13,269 | 19,145 | 94.8 | % | 92.8 | % | $6.24 | $5.33 | |||||||||||||
Total Including Unconsolidated Joint Ventures | 131,873 | 133,982 | 96.9 | % | 95.8 | % | $5.54 | $5.19 | |||||||||||||
* Represents the percentage of total square feet leased based on executed leases and without regard to whether the leases have commenced. | |||||||||||||||||||||
**Represents average annual base rental payments per leased square foot, on a straight-line basis for the term of each lease, from space leased to tenants at the end of the most recent reporting period. This amount excludes additional amounts paid by tenants as reimbursement for operating expenses. |
Consolidated Properties | Unconsolidated Joint Venture Properties | Total Including Unconsolidated Joint Venture Properties | ||||||
Vacant square feet at December 31, 2015 | 4,015 | 1,310 | 5,325 | |||||
Vacant space in completed developments | 2,368 | 359 | 2,727 | |||||
Dispositions | (202 | ) | (938 | ) | (1,140 | ) | ||
Expirations | 3,984 | 334 | 4,318 | |||||
Early lease terminations | 440 | 42 | 482 | |||||
Property structural changes/other | 6 | — | 6 | |||||
Leasing of previously vacant space | (7,160 | ) | (413 | ) | (7,573 | ) | ||
Vacant square feet at September 30, 2016 | 3,451 | 694 | 4,145 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2016 | 2015 | 2016 | 2015 | ||||
New Leasing Activity - First Generation | 2,394 | 750 | 6,721 | 3,690 | |||
New Leasing Activity - Second Generation | 594 | 1,851 | 3,961 | 4,031 | |||
Renewal Leasing Activity | 1,445 | 1,743 | 6,993 | 6,371 | |||
Total Consolidated Leasing Activity | 4,433 | 4,344 | 17,675 | 14,092 | |||
Unconsolidated Joint Venture Leasing Activity | 184 | 106 | 1,928 | 1,576 | |||
Total Including Unconsolidated Joint Venture Leasing Activity | 4,617 | 4,450 | 19,603 | 15,668 |
Square Feet of New Second Generation Leases Signed (in thousands) | Average Term in Years | Estimated Tenant Improvement Cost per Square Foot | Leasing Commissions per Square Foot | |||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||
Three Months | ||||||||||||||||||
Industrial | 589 | 1,833 | 5.8 | 5.2 | $2.68 | $1.86 | $2.05 | $1.49 | ||||||||||
Medical Office | 3 | 1 | 9.6 | 7.0 | $87.58 | — | $16.82 | $9.37 | ||||||||||
Non-reportable Rental Operations | 2 | 17 | 5.9 | 6.0 | $8.25 | $18.90 | $5.90 | $6.96 | ||||||||||
Total Consolidated | 594 | 1,851 | 5.8 | 5.2 | $3.13 | $2.02 | $2.14 | $1.55 | ||||||||||
Nine Months | ||||||||||||||||||
Industrial | 3,908 | 3,798 | 6.8 | 5.1 | $2.49 | $2.76 | $1.83 | $1.70 | ||||||||||
Medical Office | 10 | 41 | 7.6 | 6.5 | $35.35 | $5.22 | $15.18 | $5.34 | ||||||||||
Non-reportable Rental Operations | 43 | 192 | 7.0 | 6.0 | $10.46 | $13.72 | $9.92 | $6.36 | ||||||||||
Total Consolidated | 3,961 | 4,031 | 6.8 | 5.2 | $2.66 | $3.30 | $1.95 | $1.96 | ||||||||||
Unconsolidated Joint Ventures | 346 | 314 | 7.4 | 5.7 | $5.15 | $6.00 | $2.64 | $4.82 | ||||||||||
Total Including Unconsolidated Joint Ventures | 4,307 | 4,345 | 6.8 | 5.2 | $2.86 | $3.50 | $2.00 | $2.17 |
Square Feet of Leases Renewed (in thousands) | Percent of Expiring Leases Renewed | Average Term in Years | Growth (Decline) in Net Effective Rents* | Estimated Tenant Improvement Cost per Square Foot | Leasing Commissions per Square Foot | ||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Three Months | |||||||||||||||||||||||||||||
Industrial | 1,377 | 1,556 | 66.5 | % | 73.1 | % | 4.1 | 4.3 | 20.9 | % | 13.9 | % | $0.58 | $0.98 | $0.83 | $1.25 | |||||||||||||
Medical Office | 21 | 110 | 62.4 | % | 95.4 | % | 4.9 | 10.7 | 11.0 | % | 14.3 | % | $2.00 | $18.32 | $5.64 | $6.36 | |||||||||||||
Non-reportable Rental Operations | 47 | 77 | 98.5 | % | 59.7 | % | 5.1 | 4.7 | 12.0 | % | 3.9 | % | $1.05 | $4.26 | $5.67 | $3.23 | |||||||||||||
Total Consolidated | 1,445 | 1,743 | 67.1 | % | 73.5 | % | 4.1 | 4.8 | 19.4 | % | 13.1 | % | $0.62 | $2.22 | $1.06 | $1.66 | |||||||||||||
Unconsolidated Joint Ventures | 134 | 106 | 100.0 | % | 91.9 | % | 4.3 | 5.1 | 18.9 | % | 2.3 | % | $3.14 | $1.06 | $1.35 | $1.33 | |||||||||||||
Total Including Unconsolidated Joint Ventures | 1,579 | 1,849 | 69.0 | % | 74.3 | % | 4.1 | 4.8 | 19.4 | % | 12.7 | % | $0.83 | $2.15 | $1.08 | $1.64 | |||||||||||||
Nine Months | |||||||||||||||||||||||||||||
Industrial | 6,459 | 5,996 | 68.6 | % | 74.9 | % | 3.5 | 6.1 | 15.8 | % | 12.8 | % | $0.45 | $1.41 | $0.73 | $1.36 | |||||||||||||
Medical Office | 88 | 136 | 78.2 | % | 83.5 | % | 6.0 | 9.4 | 14.4 | % | 13.1 | % | $7.44 | $15.53 | $4.05 | $5.45 | |||||||||||||
Non-reportable Rental Operations | 446 | 239 | 79.5 | % | 59.1 | % | 10.1 | 4.4 | 2.9 | % | 6.8 | % | $2.43 | $5.29 | $2.41 | $3.48 | |||||||||||||
Total Consolidated | 6,993 | 6,371 | 69.3 | % | 74.3 | % | 4.0 | 6.1 | 13.1 | % | 12.3 | % | $0.67 | $1.86 | $0.88 | $1.52 | |||||||||||||
Unconsolidated Joint Ventures | 1,403 | 557 | 82.9 | % | 87.0 | % | 5.1 | 3.2 | (1.5 | )% | 0.1 | % | $0.75 | $0.88 | $2.02 | $1.00 | |||||||||||||
Total Including Unconsolidated Joint Ventures | 8,396 | 6,928 | 71.3 | % | 75.2 | % | 4.2 | 5.8 | 9.8 | % | 11.1 | % | $0.68 | $1.78 | $1.07 | $1.48 | |||||||||||||
* Represents the percentage change in net effective rent between the original leases and the renewal leases. Net effective rents represent average annual base rental payments, on a straight-line basis for the term of each lease, excluding operating expense reimbursements. |
Total Consolidated Portfolio | Industrial | Medical Office | Non-reportable | ||||||||||||||||||||||||||
Year of Expiration | Square Feet | Ann. Rent Revenue* | Number of Leases | Square Feet | Ann. Rent Revenue* | Square Feet | Ann. Rent Revenue* | Square Feet | Ann. Rent Revenue* | ||||||||||||||||||||
Remainder of 2016 | 1,697 | $ | 5,980 | 42 | 1,622 | $ | 5,056 | 34 | $ | 429 | 41 | $ | 495 | ||||||||||||||||
2017 | 11,727 | 45,819 | 154 | 11,499 | 41,523 | 188 | 3,860 | 40 | 436 | ||||||||||||||||||||
2018 | 12,932 | 57,025 | 189 | 12,473 | 46,323 | 390 | 9,791 | 69 | 911 | ||||||||||||||||||||
2019 | 14,248 | 64,000 | 211 | 13,724 | 53,222 | 317 | 7,546 | 207 | 3,232 | ||||||||||||||||||||
2020 | 12,538 | 64,350 | 171 | 12,063 | 55,097 | 423 | 8,772 | 52 | 481 | ||||||||||||||||||||
2021 | 12,063 | 56,252 | 181 | 11,694 | 49,067 | 257 | 5,739 | 112 | 1,446 | ||||||||||||||||||||
2022 | 11,137 | 48,909 | 99 | 10,776 | 41,352 | 337 | 7,075 | 24 | 482 | ||||||||||||||||||||
2023 | 3,693 | 26,028 | 64 | 3,137 | 16,139 | 415 | 7,725 | 141 | 2,164 | ||||||||||||||||||||
2024 | 7,446 | 38,282 | 47 | 6,991 | 30,916 | 131 | 2,713 | 324 | 4,653 | ||||||||||||||||||||
2025 | 7,913 | 35,423 | 39 | 7,682 | 31,308 | 212 | 3,877 | 19 | 238 | ||||||||||||||||||||
2026 and Thereafter | 19,562 | 149,641 | 126 | 16,507 | 73,894 | 2,597 | 68,369 | 458 | 7,378 | ||||||||||||||||||||
Total Leased | 114,956 | $ | 591,709 | 1,323 | 108,168 | $ | 443,897 | 5,301 | $ | 125,896 | 1,487 | $ | 21,916 | ||||||||||||||||
Total Portfolio Square Feet | 118,409 | 110,953 | 5,580 | 1,876 | |||||||||||||||||||||||||
Percent Leased | 97.1 | % | 97.5 | % | 95.0 | % | 79.3 | % | |||||||||||||||||||||
* Annualized rental revenue represents average annual base rental payments, on a straight-line basis for the term of each lease, from space leased to tenants at the end of the most recent reporting period. Annualized rental revenue excludes additional amounts paid by tenants as reimbursement for operating expenses. |
Year-to-Date 2016 Acquisitions | Full Year 2015 Acquisitions | ||||||||||||||||||
Type | Acquisition Price* | In-Place Yield** | Percent Leased at Acquisition Date*** | Acquisition Price* | In-Place Yield** | Percent Leased at Acquisition Date*** | |||||||||||||
Industrial | $ | 63,000 | 6.5 | % | 100.0 | % | $ | 28,277 | 6.0 | % | 100.0 | % | |||||||
Medical Office | 16,251 | 7.0 | % | 100.0 | % | — | — | % | — | % | |||||||||
Total | $ | 79,251 | 6.6 | % | 100.0 | % | $ | 28,277 | 6.0 | % | 100.0 | % | |||||||
* Includes real estate assets and net acquired lease-related intangible assets, including above or below market leases, but excludes other acquired working capital assets and liabilities. | |||||||||||||||||||
** In-place yields of completed acquisitions are calculated as the current annualized net rental payments from space leased to tenants at the date of acquisition, divided by the acquisition price of the acquired real estate. Annualized net rental payments are comprised of base rental payments, excluding additional amounts payable by tenants as reimbursement for operating expenses, less current annualized operating expenses not recovered through tenant reimbursements. | |||||||||||||||||||
*** Represents percentage of total square feet leased based on executed leases and without regard to whether the leases have commenced, at the date of acquisition. |
Year-to-Date 2016 Dispositions | Full Year 2015 Dispositions | ||||||||||||||||||
Type | Sales Price | In-Place Yield* | Percent Occupied** | Sales Price | In-Place Yield* | Percent Occupied** | |||||||||||||
Industrial | $ | 135,517 | 6.3 | % | 96.7 | % | $ | 410,647 | 6.6 | % | 93.5 | % | |||||||
Medical Office | — | — | % | — | % | 20,400 | 6.8 | % | 100.0 | % | |||||||||
Non-reportable Rental Operations | 233,134 | 7.8 | % | 84.2 | % | 1,310,538 | 7.2 | % | 85.5 | % | |||||||||
Other | — | — | % | — | % | 40,250 | 9.0 | % | 83.4 | % | |||||||||
Total | $ | 368,651 | 7.3 | % | 90.9 | % | $ | 1,781,835 | 7.1 | % | 88.7 | % | |||||||
* In-place yields of completed dispositions are calculated as current annualized net rental payments from space leased to tenants at the date of sale, divided by the sales price of the real estate. Annualized net rental payments are comprised of base rental payments, excluding additional amounts payable by tenants as reimbursement for operating expenses, less current annualized operating expenses not recovered through tenant reimbursements. | |||||||||||||||||||
** Represents percentage of total square feet leased based on executed leases where the leases have commenced. |
Ownership Type | Square Feet | Percent Leased | Total Estimated Project Costs | Total Incurred to Date | Amount Remaining to be Spent | ||||||||||
Consolidated properties | 6,537 | 64% | $ | 561,063 | $ | 267,462 | $ | 293,601 | |||||||
Unconsolidated joint venture property | 708 | —% | 27,722 | 11,737 | 15,985 | ||||||||||
Total | 7,245 | 58% | $ | 588,785 | $ | 279,199 | $ | 309,586 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Rental and related revenue from continuing operations | $ | 206,848 | $ | 200,938 | $ | 609,171 | $ | 617,549 | |||||||
General contractor and service fee revenue | 19,351 | 33,599 | 68,546 | 110,320 | |||||||||||
Operating income | 152,453 | 119,703 | 380,377 | 389,169 | |||||||||||
General Partner | |||||||||||||||
Net income attributable to common shareholders | $ | 112,014 | $ | 76,434 | $ | 264,388 | $ | 591,058 | |||||||
Weighted average common shares outstanding | 351,856 | 345,256 | 348,341 | 344,986 | |||||||||||
Weighted average common shares and potential dilutive securities | 358,981 | 352,150 | 355,405 | 352,013 | |||||||||||
Partnership | |||||||||||||||
Net income attributable to common unitholders | $ | 113,145 | $ | 77,185 | $ | 267,058 | $ | 597,270 | |||||||
Weighted average Common Units outstanding | 355,351 | 348,760 | 351,840 | 348,595 | |||||||||||
Weighted average Common Units and potential dilutive securities | 358,981 | 352,150 | 355,405 | 352,013 | |||||||||||
General Partner and Partnership | |||||||||||||||
Basic income per common share or Common Unit: | |||||||||||||||
Continuing operations | $ | 0.32 | $ | 0.22 | $ | 0.75 | $ | 0.49 | |||||||
Discontinued operations | $ | — | $ | — | $ | — | $ | 1.22 | |||||||
Diluted income per common share or Common Unit: | |||||||||||||||
Continuing operations | $ | 0.32 | $ | 0.22 | $ | 0.75 | $ | 0.49 | |||||||
Discontinued operations | $ | — | $ | — | $ | — | $ | 1.21 | |||||||
Number of in-service consolidated properties at end of period | 486 | 491 | 486 | 491 | |||||||||||
In-service consolidated square footage at end of period | 118,604 | 114,837 | 118,604 | 114,837 | |||||||||||
Number of in-service joint venture properties at end of period | 59 | 70 | 59 | 70 | |||||||||||
In-service joint venture square footage at end of period | 13,269 | 19,145 | 13,269 | 19,145 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income attributable to common shareholders of the General Partner | $ | 112,014 | $ | 76,434 | $ | 264,388 | $ | 591,058 | |||||||
Add back: Net income attributable to noncontrolling interests - common limited partnership interests in the Partnership | 1,131 | 751 | 2,670 | 6,212 | |||||||||||
Net income attributable to common unitholders of the Partnership | 113,145 | 77,185 | 267,058 | 597,270 | |||||||||||
Adjustments: | |||||||||||||||
Depreciation and amortization | 80,688 | 79,898 | 238,647 | 243,652 | |||||||||||
Company share of joint venture depreciation, amortization and other adjustments | 3,772 | 12,501 | 11,664 | 22,247 | |||||||||||
Gain on dissolution of unconsolidated company | — | — | (30,697 | ) | — | ||||||||||
Impairment charges - depreciable property | 3,042 | — | 3,042 | 864 | |||||||||||
Gains on depreciable property sales - wholly owned | (83,017 | ) | (71,325 | ) | (138,074 | ) | (619,948 | ) | |||||||
Income tax benefit triggered by depreciable property sales | (359 | ) | (3,350 | ) | (173 | ) | (934 | ) | |||||||
Gains on depreciable property sales - share of joint venture | (5,668 | ) | (189 | ) | (23,700 | ) | (13,722 | ) | |||||||
FFO attributable to common unitholders of the Partnership | $ | 111,603 | $ | 94,720 | $ | 327,767 | $ | 229,429 | |||||||
Additional General Partner Adjustments: | |||||||||||||||
Net income attributable to noncontrolling interests - common limited partnership interests in the Partnership | (1,131 | ) | (751 | ) | (2,670 | ) | (6,212 | ) | |||||||
Noncontrolling interest share of adjustments | 15 | (176 | ) | (604 | ) | 3,808 | |||||||||
FFO attributable to common shareholders of the General Partner | $ | 110,487 | $ | 93,793 | $ | 324,493 | $ | 227,025 |
Three Months Ended September 30, | Percent | |||||||||
2016 | 2015 | Change | ||||||||
Income from continuing operations before income taxes | $ | 112,104 | $ | 73,835 | ||||||
Share of SPNOI from unconsolidated joint ventures | 5,205 | 5,120 | ||||||||
PNOI excluded from the same property population | (25,559 | ) | (16,636 | ) | ||||||
Earnings from Service Operations | (2,169 | ) | (3,905 | ) | ||||||
Rental Operations revenues and expenses excluded from PNOI | (8,009 | ) | (17,476 | ) | ||||||
Non-Segment Items | 40,908 | 74,975 | ||||||||
SPNOI | $ | 122,480 | $ | 115,913 | 5.7 | % |
Three Months Ended September 30, | ||||
2016 | 2015 | |||
Number of properties | 459 | 459 | ||
Square feet (in thousands) (1) | 104,194 | 104,194 | ||
Average commencement occupancy percentage (2) | 97.7% | 96.8% | ||
Average rental rate - cash basis (3) | $4.85 | $4.78 | ||
(1) Includes the total square feet of the consolidated properties that are in the same property population as well as 4.6 million square feet of space for unconsolidated joint ventures, which represents our ratable share of the 9.9 million total square feet of space for buildings owned by unconsolidated joint ventures that are in the same property population. | ||||
(2) Commencement occupancy represents the percentage of total square feet where the leases have commenced. | ||||
(3) Represents the average annualized contractual rent per square foot for the three-month periods ended September 30, 2016 and 2015 for tenants in occupancy in properties in the same property population. Cash rent does not include the tenant's obligation to pay property operating expenses and real estate taxes. If a tenant was within a free rent period at September 30, 2016 or 2015 its rent would equal zero for purposes of this metric. |
Three Months Ended September 30, | |||||||
2016 | 2015 | ||||||
Rental and related revenue: | |||||||
Industrial | $ | 149,746 | $ | 136,276 | |||
Medical Office | 45,353 | 39,911 | |||||
Non-reportable Rental Operations and non-segment revenues | 11,749 | 24,751 | |||||
Total rental and related revenue from continuing operations | $ | 206,848 | $ | 200,938 | |||
Rental and Related Revenue from Discontinued Operations | 380 | 7 | |||||
Total Rental and Related Revenue from Continuing and Discontinued Operations | $ | 207,228 | $ | 200,945 |
• | We acquired four properties and placed 41 developments in service from January 1, 2015 to September 30, 2016, which provided incremental revenues of $13.0 million in the third quarter of 2016, as compared to the same period in 2015. |
• | Increased occupancy and rental rates within our same-property portfolio also resulted in an increase to rental and related revenue from continuing operations. Average commencement occupancy in our same-property portfolio increased by 0.9% from the three months ended September 30, 2015. |
• | The sale of 113 properties since January 1, 2015, which did not meet the criteria to be classified within discontinued operations, resulted in a decrease of $15.4 million to rental and related revenue from continuing operations in the three months ended September 30, 2016, as compared to the same period in 2015, which partially offset the aforementioned increases to rental and related revenues. |
Three Months Ended September 30, | |||||||
2016 | 2015 | ||||||
Rental expenses: | |||||||
Industrial | $ | 11,604 | $ | 11,820 | |||
Medical Office | 8,732 | 8,286 | |||||
Non-reportable Rental Operations and non-segment expenses | 5,748 | 10,031 | |||||
Total rental expenses from continuing operations | $ | 26,084 | $ | 30,137 | |||
Rental Expenses from Discontinued Operations | 3 | 33 | |||||
Total Rental Expenses from Continuing and Discontinued Operations | $ | 26,087 | $ | 30,170 | |||
Real estate taxes: | |||||||
Industrial | $ | 24,052 | $ | 20,475 | |||
Medical Office | 5,444 | 4,342 | |||||
Non-reportable Rental Operations and non-segment expenses | 1,817 | 2,885 | |||||
Total real estate tax expense from continuing operations | $ | 31,313 | $ | 27,702 | |||
Real Estate Tax Expense from Discontinued Operations | — | 17 | |||||
Total Real Estate Tax Expense from Continuing and Discontinued Operations | $ | 31,313 | $ | 27,719 |
Three Months Ended September 30, | |||||||
2016 | 2015 | ||||||
Service Operations: | |||||||
General contractor and service fee revenue | $ | 19,351 | $ | 33,599 | |||
General contractor and other services expenses | (17,182 | ) | (29,694 | ) | |||
Net earnings from Service Operations | $ | 2,169 | $ | 3,905 |
General and administrative expenses - three-month period ended September 30, 2015 | $ | 11.3 | |
Increase to overall pool of overhead costs | 1.0 | ||
Increased absorption of costs by wholly owned leasing and development activities (1) | (1.2 | ) | |
Decreased allocation of costs to Service Operations and Rental Operations | 1.4 | ||
General and administrative expenses - three-month period ended September 30, 2016 | $ | 12.5 |
Nine Months Ended September 30, | |||||||
2016 | 2015 | ||||||
Rental and related revenue: | |||||||
Industrial | $ | 432,945 | $ | 419,391 | |||
Medical Office | 130,713 | 120,213 | |||||
Non-reportable Rental Operations and non-segment revenues | 45,513 | 77,945 | |||||
Total rental and related revenue from continuing operations | $ | 609,171 | $ | 617,549 | |||
Rental and Related Revenue from Discontinued Operations | 735 | 32,171 | |||||
Total Rental and Related Revenue from Continuing and Discontinued Operations | $ | 609,906 | $ | 649,720 |
• | The sale of 113 properties, since January 1, 2015, which did not meet the criteria for inclusion within discontinued operations, resulted in a decrease of $50.6 million to rental and related revenue from continuing operations in the nine months ended September 30, 2016, as compared to the same period in 2015. |
• | We acquired four properties and placed 41 developments in service from January 1, 2015 to September 30, 2016, which provided incremental revenues of $28.5 million in the nine months ended September 30, 2016, as compared to the same period in 2015, which partially offset the overall decrease in rental and related revenue from continuing operations. |
• | Increased occupancy and rental rates within our same property portfolio also partially offset the impact of dispositions on rental and related revenue from continuing operations. |
Nine Months Ended September 30, | |||||||
2016 | 2015 | ||||||
Rental expenses: | |||||||
Industrial | $ | 36,358 | $ | 41,607 | |||
Medical Office | 25,249 | 24,527 | |||||
Non-reportable Rental Operations and non-segment revenues | 19,485 | 30,221 | |||||
Total rental expenses from continuing operations | $ | 81,092 | $ | 96,355 | |||
Rental Expenses from Discontinued Operations | (6 | ) | 9,004 | ||||
Total Rental Expenses from Continuing and Discontinued Operations | $ | 81,086 | $ | 105,359 | |||
Real estate taxes: | |||||||
Industrial | $ | 69,553 | $ | 63,734 | |||
Medical Office | 15,501 | 13,537 | |||||
Non-reportable Rental Operations and non-segment revenues | 5,834 | 8,957 | |||||
Total real estate tax expense from continuing operations | $ | 90,888 | $ | 86,228 | |||
Real Estate Tax Expense from Discontinued Operations | — | 3,445 | |||||
Total Real Estate Tax Expense from Continuing and Discontinued Operations | $ | 90,888 | $ | 89,673 |
Nine Months Ended September 30, | |||||||
2016 | 2015 | ||||||
Service Operations: | |||||||
General contractor and service fee revenue | $ | 68,546 | $ | 110,320 | |||
General contractor and other services expenses | (60,330 | ) | (98,455 | ) | |||
Net earnings from Service Operations | $ | 8,216 | $ | 11,865 |
General and administrative expenses - nine months ended September 30, 2015 | $ | 47.6 | |
Decrease to overall pool of overhead costs (1) | (10.5 | ) | |
Increased absorption of costs by wholly owned leasing and development activities (2) | (1.3 | ) | |
Decreased allocation of costs to Service Operations and Rental Operations (3) | 6.4 | ||
General and administrative expenses - nine months ended September 30, 2016 | $ | 42.2 |
• | property investment; |
• | leasing/capital costs; |
• | dividends and distributions to shareholders and unitholders; |
• | long-term debt maturities; |
• | opportunistic repurchases of outstanding debt; and |
• | other contractual obligations. |
Nine Months Ended September 30, | |||||||
2016 | 2015 | ||||||
Second generation tenant improvements | $ | 18,541 | $ | 21,978 | |||
Second generation leasing costs | 18,902 | 19,471 | |||||
Building improvements | 1,726 | 4,239 | |||||
Total second generation capital expenditures | $ | 39,169 | $ | 45,688 | |||
Development of real estate investments | $ | 308,199 | $ | 221,201 | |||
Other deferred leasing costs | $ | 25,949 | $ | 26,940 |
Nine Months Ended September 30, | |||||||
2016 | 2015 | ||||||
Industrial | $ | 33,091 | $ | 33,055 | |||
Medical Office | 1,627 | 2,146 | |||||
Non-reportable Rental Operations | 4,451 | 10,487 | |||||
Total | $ | 39,169 | $ | 45,688 |
Future Repayments | ||||||||||||||
Year | Scheduled Amortization | Maturities | Total | Weighted Average Interest Rate of Future Repayments | ||||||||||
Remainder of 2016 | $ | 2,591 | $ | — | $ | 2,591 | 6.35 | % | ||||||
2017 | 9,260 | 66,035 | 75,295 | 5.88 | % | |||||||||
2018 | 7,768 | 285,611 | 293,379 | 6.08 | % | |||||||||
2019 | 6,936 | 397,976 | 404,912 | 7.85 | % | |||||||||
2020 | 5,381 | 378,660 | 384,041 | 3.44 | % | |||||||||
2021 | 3,416 | 259,047 | 262,463 | 3.99 | % | |||||||||
2022 | 3,611 | 600,000 | 603,611 | 4.20 | % | |||||||||
2023 | 3,817 | 250,000 | 253,817 | 3.75 | % | |||||||||
2024 | 4,036 | 300,000 | 304,036 | 3.92 | % | |||||||||
2025 | 3,938 | — | 3,938 | 5.53 | % | |||||||||
2026 | 2,029 | 375,000 | 377,029 | 3.37 | % | |||||||||
Thereafter | 358 | 50,000 | 50,358 | 7.29 | % | |||||||||
$ | 53,141 | $ | 2,962,329 | $ | 3,015,470 | 4.69 | % |
Nine Months Ended September 30, | |||||||
2016 | 2015 | ||||||
General Partner | |||||||
Net Cash Provided by Operating Activities | $ | 347.4 | $ | 278.2 | |||
Net Cash Provided by Investing Activities | $ | 64.3 | $ | 1,147.4 | |||
Net Cash Used for Financing Activities | $ | (324.0 | ) | $ | (1,267.7 | ) | |
Partnership | |||||||
Net Cash Provided by Operating Activities | $ | 347.4 | $ | 278.0 | |||
Net Cash Provided by Investing Activities | $ | 64.3 | $ | 1,147.4 | |||
Net Cash Used for Financing Activities | $ | (324.0 | ) | $ | (1,267.5 | ) |
• | During the nine months ended September 30, 2016, we paid cash of approximately $16.0 million and $77.6 million, respectively, for real estate and undeveloped land acquisitions, compared to $28.8 million and $39.9 million, respectively, for real estate and undeveloped land acquisitions in the same period in 2015. |
• | Real estate development costs were $308.2 million during the nine months ended September 30, 2016, compared to $221.2 million for the same period in 2015. |
• | Sales of land and depreciated property provided $369.1 million in net proceeds for the nine months ended September 30, 2016, compared to $1.53 billion for the same period in 2015. |
• | Second generation tenant improvements, leasing costs and building improvements totaled $39.2 million for the nine months ended September 30, 2016 compared to $45.7 million for the same period in 2015. |
• | For the nine months ended September 30, 2016, we received $52.5 million in capital distributions from unconsolidated joint ventures, compared to $68.9 million during the same period in 2015. |
• | During the nine months ended September 30, 2016, we also received a full repayment of a $200.0 million seller-financed mortgage from the buyers of an office portfolio that we sold in April 2015. |
• | For the nine months ended September 30, 2016, we repaid the $71.0 million of net borrowings on the Partnership's unsecured line of credit, compared to the repayment of $106.0 million of net borrowings for the same period in 2015. |
• | During the nine months ended September 30, 2016, we repaid five secured loans for $346.4 million. We repaid sixteen secured loans, which included early repayment premiums of $4.2 million for five loans that were repaid prior to their scheduled maturity dates, for cash payments totaling $213.1 million during the same period in 2015. |
• | During the nine months ended September 30, 2016, through both a tender offer and the redemption of the remaining $203.0 million of the outstanding notes of the same series after the completion of the tender offer, we paid cash of $283.5 million to repay $275.0 million of 5.95% Senior Unsecured Notes. During the nine months ended September 30, 2015, we repaid a $250.0 million senior unsecured note at its maturity date. We also repurchased $431.2 million of unsecured notes with maturities ranging between 2017 and 2020, primarily through a tender offer, for cash payments totaling $508.3 million. |
• | During the nine months ended September 30, 2016, the General Partner issued 8.3 million common shares pursuant to its ATM equity program, for net proceeds of $213.6 million, compared to the issuance of 233,000 common shares under the General Partner's ATM equity program for net proceeds of $4.6 million during the same period in 2015. |
• | During the nine months ended September 30, 2016, we issued $375.0 million of senior unsecured notes that bear interest at a stated rate of 3.25%, have an effective rate of 3.36%, and mature on June 30, 2026 (the "2026 Notes"). |
Remainder of 2016 | 2017 | 2018 | 2019 | 2020 | Thereafter | Face Value | Fair Value | ||||||||||||||||||||||||
Fixed rate secured debt | $ | 1,985 | $ | 72,472 | $ | 4,783 | $ | 272,215 | $ | 3,583 | $ | 28,652 | $ | 383,690 | $ | 424,948 | |||||||||||||||
Weighted average interest rate | 6.37 | % | 5.89 | % | 6.46 | % | 7.63 | % | 5.98 | % | 5.92 | % | 7.13 | % | |||||||||||||||||
Variable rate secured debt | $ | — | $ | 300 | $ | 300 | $ | 300 | $ | 300 | $ | 1,600 | $ | 2,800 | $ | 2,800 | |||||||||||||||
Weighted average interest rate | N/A | 0.96 | % | 0.96 | % | 0.96 | % | 0.96 | % | 0.96 | % | 0.96 | % | ||||||||||||||||||
Fixed rate unsecured debt | $ | 606 | $ | 2,523 | $ | 288,296 | $ | 132,397 | $ | 130,158 | $ | 1,825,000 | $ | 2,378,980 | $ | 2,566,046 | |||||||||||||||
Weighted average interest rate | 6.26 | % | 6.26 | % | 6.08 | % | 8.33 | % | 6.74 | % | 3.96 | % | 4.61 | % | |||||||||||||||||
Variable rate unsecured notes | $ | — | $ | — | $ | — | $ | — | $ | 250,000 | $ | — | $ | 250,000 | $ | 250,000 | |||||||||||||||
Rate at September 30, 2016 | N/A | N/A | N/A | N/A | 1.68% | N/A | 1.68 | % |
3.1 | Sixth Amended and Restated Articles of Incorporation of the General Partner (filed as Exhibit 3.1 to the combined Current Report on Form 8-K of the General Partner and the Partnership as filed with the SEC on January 5, 2015, and incorporated herein by this reference). | ||
3.2 | Fourth Amended and Restated Bylaws of the General Partner (filed as Exhibit 3.2 to the General Partner's Current Report on Form 8-K as filed with the SEC on July 30, 2009, and incorporated herein by this reference). | ||
3.3 | Certificate of Limited Partnership of the Partnership, dated September 17, 1993 (filed as Exhibit 3.1(i) to the Partnership's Annual Report on Form 10-K for the year ended December 31, 2006 as filed with the SEC on March 13, 2007, and incorporated herein by this reference) (File No. 000-20625). | ||
3.4 (i) | Fifth Amended and Restated Agreement of Limited Partnership of the Partnership (filed as Exhibit 3.2 to the combined Current Report on Form 8-K of the General Partner and the Partnership as filed with the SEC on May 5, 2014, and incorporated herein by this reference). | ||
3.4 (ii) | First Amendment to Fifth Amended and Restated Agreement of Limited Partnership of the Partnership (filed as Exhibit 3.2 to the combined Current Report on Form 8-K of the General Partner and the Partnership as filed with the SEC on August 6, 2014, and incorporated herein by this reference). | ||
3.4 (iii) | Second Amendment to Fifth Amended and Restated Agreement of Limited Partnership of the Partnership (filed as Exhibit 3.2 to the combined Current Report on Form 8-K of the General Partner and the Partnership as filed with the SEC on December 16, 2014, and incorporated herein by this reference). | ||
3.4 (iv) | Third Amendment to Fifth Amended and Restated Agreement of Limited Partnership of the Partnership (filed as Exhibit 3.2 to the combined Current Report on Form 8-K of the General Partner and the Partnership as filed with the SEC on January 5, 2015, and incorporated herein by this reference). | ||
3.4 (v) | Fourth Amendment to Fifth Amended and Restated Agreement of Limited Partnership of the Partnership (filed as Exhibit 3.1 to the combined Current Report on Form 8-K of the General Partner and the Partnership as filed with the SEC on January 29, 2015, and incorporated herein by this reference). | ||
4.1 | Specimen certificate for shares of common stock, $.01 par value (filed as Exhibit 4.1 to the combined Current Report on Form 8-K of the General Partner and the Partnership as filed with the SEC on July 28, 2016, and incorporated herein by this reference). | ||
10.1 | Form of Letter Agreement Regarding Executive Severance between the General Partner and Peter D. Harrington, dated July 1, 2016 (the form of which was filed as Exhibit 10.13 to the Combined Annual Report on Form 10-K of the General Partner and the Partnership as filed with the SEC on February 19, 2016, and incorporated herein by this reference).# | ||
10.2 | Equity Distribution Agreement, dated August 9, 2016, by and among the Company, the Operating Partnership, Barclays Capital Inc., BB&T Capital Markets, a division of BB&T Securities, LLC, Citigroup Global Markets Inc., J P Morgan Securities LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., and Wells Fargo Securities, LLC. (filed as Exhibit 1.1 to the Combined Current Report on Form 8-K of the General Partner and the Partnership as filed with the SEC on August 9, 2016, and incorporated herein by this reference). | ||
11.1 | Statement Regarding Computation of Earnings.*** | ||
12.1 | Statement of Computation of Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Charges and Preferred Dividends of the General Partner.* | ||
12.2 | Statement of Computation of Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Charges and Preferred Distributions of the Partnership.* | ||
31.1 | Rule 13a-14(a) Certification of the Chief Executive Officer of the General Partner.* | ||
31.2 | Rule 13a-14(a) Certification of the Chief Financial Officer of the General Partner.* | ||
31.3 | Rule 13a-14(a) Certification of the Chief Executive Officer for the Partnership.* | ||
31.4 | Rule 13a-14(a) Certification of the Chief Financial Officer for the Partnership.* | ||
32.1 | Section 1350 Certification of the Chief Executive Officer of the General Partner.** | ||
32.2 | Section 1350 Certification of the Chief Financial Officer of the General Partner.** | ||
32.3 | Section 1350 Certification of the Chief Executive Officer for the Partnership.** | ||
32.4 | Section 1350 Certification of the Chief Financial Officer for the Partnership.** | ||
101 | The following materials from the General Partner's and the Partnership's Quarterly Report on Form 10-Q for the quarter ended September 30, 2016 formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations and Comprehensive Income, (iii) the Consolidated Statements of Cash Flows, (iv) the Consolidated Statements of Changes in Equity, and (v) the Notes to Consolidated Financial Statements. |
# | Represents management contract or compensatory plan or arrangement |
* | Filed herewith. |
** | The certifications attached as Exhibits 32.1, 32.2, 32.3 and 32.4 accompany this Quarterly Report on Form 10-Q and are "furnished" to the Securities and Exchange Commission pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed "filed" by the General Partner or the Partnership, respectively, for purposes of Section 18 of the Securities Exchange Act of 1934, as amended. |
*** | Data required by Financial Accounting Standards Board Auditing Standards Codification No. 260 is provided in Note 9 to the Consolidated Financial Statements included in this report. |
DUKE REALTY CORPORATION | ||
/s/ James B. Connor | ||
James B. Connor | ||
President, Chief Executive Officer and Director | ||
/s/ Mark A. Denien | ||
Mark A. Denien | ||
Executive Vice President and Chief Financial Officer | ||
DUKE REALTY LIMITED PARTNERSHIP | ||
By: DUKE REALTY CORPORATION, its general partner | ||
/s/ James B. Connor | ||
James B. Connor | ||
President, Chief Executive Officer and Director of the General Partner | ||
/s/ Mark A. Denien | ||
Mark A. Denien | ||
Executive Vice President and Chief Financial Officer of the General Partner | ||
Date: | October 28, 2016 | |
Nine Months Ended September 30, 2016 | Year Ended December 31, 2015 | Year Ended December 31, 2014 | Year Ended December 31, 2013 | Year Ended December 31, 2012 | Year Ended December 31, 2011 | |||||||||||||||||||||
Net income (loss) from continuing operations, less preferred dividends | $ | 265,872 | $ | 189,205 | $ | 190,647 | $ | 27,886 | $ | (126,873 | ) | $ | (61,143 | ) | ||||||||||||
Preferred dividends | — | — | 24,943 | 31,616 | 46,438 | 60,353 | ||||||||||||||||||||
Interest expense | 109,520 | 173,574 | 196,186 | 202,174 | 202,109 | 181,734 | ||||||||||||||||||||
Earnings before fixed charges | $ | 375,392 | $ | 362,779 | $ | 411,776 | $ | 261,676 | $ | 121,674 | $ | 180,944 | ||||||||||||||
Interest expense | $ | 109,520 | $ | 173,574 | $ | 196,186 | $ | 202,174 | $ | 202,109 | $ | 181,734 | ||||||||||||||
Interest costs capitalized | 13,008 | 16,764 | 17,620 | 16,756 | 9,357 | 4,335 | ||||||||||||||||||||
Total fixed charges | 122,528 | 190,338 | 213,806 | 218,930 | 211,466 | 186,069 | ||||||||||||||||||||
Preferred dividends | — | — | 24,943 | 31,616 | 46,438 | 60,353 | ||||||||||||||||||||
Total fixed charges and preferred dividends | $ | 122,528 | $ | 190,338 | $ | 238,749 | $ | 250,546 | $ | 257,904 | $ | 246,422 | ||||||||||||||
Ratio of earnings to fixed charges | 3.06 | 1.91 | 1.93 | 1.20 | N/A | (1) | N/A | (3) | ||||||||||||||||||
Ratio of earnings to fixed charges and preferred dividends | 3.06 | 1.91 | 1.72 | 1.04 | N/A | (2) | N/A | (4) |
(1) | N/A - The ratio is less than 1.0; deficit of $89.8 million exists for the year ended December 31, 2012. The calculation of earnings includes $305.6 million of non-cash depreciation and amortization expense. |
(2) | N/A - The ratio is less than 1.0; deficit of $136.2 million exists for the year ended December 31, 2012. The calculation of earnings includes $305.6 million of non-cash depreciation and amortization expense. |
(3) | N/A - The ratio is less than 1.0; deficit of $5.1 million exists for the year ended December 31, 2011. The calculation of earnings includes $263.4 million of non-cash depreciation and amortization expense. |
(4) | N/A - The ratio is less than 1.0; deficit of $65.5 million exists for the year ended December 31, 2011. The calculation of earnings includes $263.4 million of non-cash depreciation and amortization expense. |
Nine Months Ended September 30, 2016 | Year Ended December 31, 2015 | Year Ended December 31, 2014 | Year Ended December 31, 2013 | Year Ended December 31, 2012 | Year Ended December 31, 2011 | |||||||||||||||||||||
Net income (loss) from continuing operations, less preferred distributions | $ | 265,872 | $ | 189,205 | $ | 190,647 | $ | 27,886 | $ | (126,873 | ) | $ | (61,143 | ) | ||||||||||||
Preferred distributions | — | — | 24,943 | 31,616 | 46,438 | 60,353 | ||||||||||||||||||||
Interest expense | 109,520 | 173,574 | 196,186 | 202,174 | 202,109 | 181,734 | ||||||||||||||||||||
Earnings before fixed charges | $ | 375,392 | $ | 362,779 | $ | 411,776 | $ | 261,676 | $ | 121,674 | $ | 180,944 | ||||||||||||||
Interest expense | $ | 109,520 | $ | 173,574 | $ | 196,186 | $ | 202,174 | $ | 202,109 | $ | 181,734 | ||||||||||||||
Interest costs capitalized | 13,008 | 16,764 | 17,620 | 16,756 | 9,357 | 4,335 | ||||||||||||||||||||
Total fixed charges | 122,528 | 190,338 | 213,806 | 218,930 | 211,466 | 186,069 | ||||||||||||||||||||
Preferred distributions | — | — | 24,943 | 31,616 | 46,438 | 60,353 | ||||||||||||||||||||
Total fixed charges and preferred distributions | $ | 122,528 | $ | 190,338 | $ | 238,749 | $ | 250,546 | $ | 257,904 | $ | 246,422 | ||||||||||||||
Ratio of earnings to fixed charges | 3.06 | 1.91 | 1.93 | 1.20 | N/A | (1) | N/A | (3) | ||||||||||||||||||
Ratio of earnings to fixed charges and preferred distributions | 3.06 | 1.91 | 1.72 | 1.04 | N/A | (2) | N/A | (4) |
(1) | N/A - The ratio is less than 1.0; deficit of $89.8 million exists for the year ended December 31, 2012. The calculation of earnings includes $305.6 million of non-cash depreciation and amortization expense. |
(2) | N/A - The ratio is less than 1.0; deficit of $136.2 million exists for the year ended December 31, 2012. The calculation of earnings includes $305.6 million of non-cash depreciation and amortization expense. |
(3) | N/A - The ratio is less than 1.0; deficit of $5.1 million exists for the year ended December 31, 2011. The calculation of earnings includes $263.4 million of non-cash depreciation and amortization expense. |
(4) | N/A - The ratio is less than 1.0; deficit of $65.5 million exists for the year ended December 31, 2011. The calculation of earnings includes $263.4 million of non-cash depreciation and amortization expense. |
1 | I have reviewed this Quarterly Report on Form 10-Q of Duke Realty Corporation; |
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 B. Connor |
James B. Connor |
President and Chief Executive Officer |
1 | I have reviewed this Quarterly Report on Form 10-Q of Duke Realty Corporation; |
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/ Mark A. Denien |
Mark A. Denien |
Executive Vice President and Chief Financial Officer |
1 | I have reviewed this Quarterly Report on Form 10-Q of Duke Realty Limited Partnership; |
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 B. Connor |
James B. Connor |
President and Chief Executive Officer of the General Partner |
1 | I have reviewed this Quarterly Report on Form 10-Q of Duke Realty Limited Partnership; |
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/ Mark A. Denien |
Mark A. Denien |
Executive Vice President and Chief Financial Officer of the General Partner |
/s/ James B. Connor | |
James B. Connor | |
President and Chief Executive Officer | |
Date: | October 28, 2016 |
/s/ Mark A. Denien | |
Mark A. Denien | |
Executive Vice President and Chief Financial Officer | |
Date: | October 28, 2016 |
/s/ James B. Connor | |
James B. Connor | |
President and Chief Executive Officer of the General Partner | |
Date: | October 28, 2016 |
/s/ Mark A. Denien | |
Mark A. Denien | |
Executive Vice President and Chief Financial Officer of the General Partner | |
Date: | October 28, 2016 |
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Consolidated Statement of Changes in Equity - 9 months ended Sep. 30, 2016 - USD ($) $ in Thousands |
Total |
Common Stock [Member] |
Additional Paid-in Capital [Member] |
Accumulated Other Comprehensive Income (Loss) [Member] |
Distributions in Excess of Net Income [Member] |
Non-controlling Interest [Member] |
Duke Realty Limited Partnership [Member] |
Duke Realty Limited Partnership [Member]
Common Stock [Member]
|
Duke Realty Limited Partnership [Member]
Limited Partners' Common Equity [Member]
|
Duke Realty Limited Partnership [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
|
Duke Realty Limited Partnership [Member]
Non-controlling Interest [Member]
|
Duke Realty Limited Partnership [Member]
Stockholders' Equity, Total [Member]
|
---|---|---|---|---|---|---|---|---|---|---|---|---|
Beginning Balance - General Partner at Dec. 31, 2015 | $ 3,204,801 | $ 3,453 | $ 4,961,923 | $ 1,806 | $ (1,785,250) | $ 22,869 | ||||||
Beginning Balance - Partnership at Dec. 31, 2015 | $ 3,204,801 | $ 3,180,126 | $ 20,032 | $ 1,806 | $ 2,837 | $ 3,201,964 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net Income | 267,098 | 264,388 | 2,710 | 267,098 | 264,388 | 2,670 | 40 | 267,058 | ||||
Other comprehensive loss | (868) | (868) | (868) | (868) | (868) | |||||||
Issuance of common shares | 217,513 | 84 | 217,429 | |||||||||
Capital contribution from the General Partner | 217,513 | 217,513 | 217,513 | |||||||||
Stock based compensation plan activity | 10,218 | 8 | 7,008 | (1,468) | 4,670 | 10,218 | 5,548 | 4,670 | 10,218 | |||
Conversion of Limited Partner Units | 1 | 1,014 | (1,015) | 1,015 | (1,015) | |||||||
Distributions to Partners | (189,764) | (187,885) | (1,879) | (189,764) | ||||||||
Distributions to common shareholders | (187,885) | (187,885) | ||||||||||
Distributions to noncontrolling interests | (1,955) | (1,955) | (76) | (76) | ||||||||
Ending Balance - General Partner at Sep. 30, 2016 | $ 3,508,922 | $ 3,546 | $ 5,187,374 | $ 938 | $ (1,710,215) | $ 27,279 | ||||||
Ending Balance - Partnership at Sep. 30, 2016 | $ 3,508,922 | $ 3,480,705 | $ 24,478 | $ 938 | $ 2,801 | $ 3,506,121 |
Consolidated Statement of Changes in Equity (Parenthetical) |
9 Months Ended |
---|---|
Sep. 30, 2016
$ / shares
| |
Distributions to common shareholders, per share | $ 0.54 |
Duke Realty Limited Partnership [Member] | |
Distributions to Partners, per Common Unit | $ 0.54 |
General Basis of Presentation (Notes) |
9 Months Ended |
---|---|
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General Basis of Presentation | General Basis of Presentation The interim consolidated financial statements included herein have been prepared by the General Partner and the Partnership. The 2015 year-end consolidated balance sheet data included in this Report was derived from the audited financial statements in the combined Annual Report on Form 10-K of the General Partner and the Partnership for the year ended December 31, 2015 (the "2015 Annual Report"), but does not include all disclosures required by accounting principles generally accepted in the United States of America ("GAAP"). The financial statements have been prepared in accordance with GAAP for interim financial information and in accordance with Rule 10-01 of Regulation S-X of the Securities Exchange Act of 1934, as amended. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenue and expenses during the reporting period. Our actual results could differ from those estimates and assumptions. These financial statements should be read in conjunction with Management's Discussion and Analysis of Financial Condition and Results of Operations included herein and the consolidated financial statements and notes thereto included in the 2015 Annual Report. The General Partner was formed in 1985, and we believe that it qualifies as a REIT under the provisions of the Internal Revenue Code of 1986, as amended (the "Code"). The Partnership was formed on October 4, 1993, when the General Partner contributed all of its properties and related assets and liabilities, together with the net proceeds from an offering of additional shares of its common stock, to the Partnership. Simultaneously, the Partnership completed the acquisition of Duke Associates, a full-service commercial real estate firm operating in the Midwest whose operations began in 1972. The General Partner is the sole general partner of the Partnership, owning approximately 99.0% of the Common Units at September 30, 2016. The remaining 1.0% of the Common Units are owned by limited partners. As the sole general partner of the Partnership, the General Partner has full, exclusive and complete responsibility and discretion in the day-to-day management and control of the Partnership. The General Partner and the Partnership are operated as one enterprise. The management of the General Partner consists of the same members as the management of the Partnership. As the sole general partner with control of the Partnership, the General Partner consolidates the Partnership for financial reporting purposes, and the General Partner does not have any significant assets other than its investment in the Partnership. Therefore, the assets and liabilities of the General Partner and the Partnership are substantially the same. Limited Partners have the right to redeem their Limited Partner Units, subject to certain restrictions. Pursuant to the Fifth Amended and Restated Agreement of Limited Partnership, as amended (the "Partnership Agreement"), the General Partner is obligated to redeem the Limited Partner Units in shares of its common stock, unless it determines in its reasonable discretion that the issuance of shares of its common stock could cause it to fail to qualify as a REIT. Each Limited Partner Unit shall be redeemed for one share of the General Partner's common stock, or, in the event that the issuance of shares could cause the General Partner to fail to qualify as a REIT, cash equal to the fair market value of one share of the General Partner's common stock at the time of redemption, in each case, subject to certain adjustments described in the Partnership Agreement. The Limited Partner Units are not required, per the terms of the Partnership Agreement, to be redeemed in registered shares of the General Partner. As of September 30, 2016, we owned and operated a portfolio consisting primarily of industrial and medical office properties and provided real estate services to third-party owners. Substantially all of our Rental Operations (see Note 10) are conducted through the Partnership. We conduct our Service Operations (see Note 10) through Duke Realty Services, LLC, Duke Realty Services Limited Partnership and Duke Construction Limited Partnership ("DCLP"), which are consolidated entities that are 100% owned by a combination of the General Partner and the Partnership. DCLP is owned through a taxable REIT subsidiary. The consolidated financial statements include our accounts and the accounts of our majority-owned or controlled subsidiaries. |
New Accounting Pronouncement (Notes) |
9 Months Ended |
---|---|
Sep. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements Revenue Recognition In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"). ASU 2014-09 is a comprehensive revenue recognition standard that will supersede nearly all existing GAAP revenue recognition guidance as well as impact the existing GAAP guidance governing the sale of nonfinancial assets. The standard’s core principle is that a company will recognize revenue when it satisfies performance obligations, by transferring promised goods or services to customers, in an amount that reflects the consideration to which an entity expects to be entitled in exchange for fulfilling those performance obligations. ASU 2014-09 will be effective for public entities for annual and interim reporting periods beginning after December 15, 2017 and early adoption is permitted in periods ending after December 15, 2016. ASU 2014-09 allows for either full or modified retrospective adoption. We have begun to evaluate each of our revenue streams under the new standard and the pattern of recognition is not expected to change significantly. Additionally, we have primarily disposed of property and land in all cash transactions with no contingencies and no future involvement in the operations, and therefore, do not expect the new standard to significantly impact the recognition of property and land sales. We have not yet selected a transition method. Consolidation In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis ("ASU 2015-02"). ASU 2015-02 made targeted amendments to the current consolidation guidance and ended the deferral granted to investment companies from applying the existing variable interest entity ("VIE") guidance. ASU 2015-02 was effective for public entities for annual and interim reporting periods beginning after December 15, 2015. We adopted ASU 2015-02 during the three months ended March 31, 2016, and it has not had a significant impact on our consolidated financial statements. Debt Issuance Costs In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"). ASU 2015-03 required that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. ASU 2015-03 was effective for us retrospectively for financial statements issued for annual and interim reporting periods beginning after December 15, 2015. We adopted ASU 2015-03 during the three months ended March 31, 2016. Debt issuance costs related to the Partnership's unsecured line of credit continue to be presented as assets in the consolidated balance sheets, as part of escrow deposits and other assets, pursuant to ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. Business Combinations In September 2015, the FASB issued ASU 2015-16, Business Combinations - Simplifying the Accounting for Measurement-Period Adjustments ("ASU 2015-16"). ASU 2015-16 amended the retroactive requirement to apply adjustments made to provisional amounts recognized in a business combination. The update required that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. ASU 2015-16 was effective for annual and interim periods beginning after December 15, 2015. We adopted ASU 2015-16 during the three months ended March 31, 2016 and it has not had a significant impact on our consolidated financial statements. Leases In February 2016, the FASB issued ASU 2016-02, Leases ("ASU 2016-02"), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). ASU 2016-02 supersedes existing leasing standards. ASU 2016-02 requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. ASU 2016-02 requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. ASU 2016-02 also requires that lessors expense certain initial direct costs, which are capitalizable under existing leasing standards, as incurred. ASU 2016-02 is effective for us retrospectively for annual and interim reporting periods beginning after December 15, 2018, with early adoption permitted. A set of practical expedients for implementation, which must be elected as a package and for all leases, may also be elected. These practical expedients include relief from re-assessing lease classification at the adoption date for expired or existing leases, although a right-of-use asset and lease liability would still be recorded for such leases. We are currently assessing the method of adoption and the impact that ASU 2016-02 will have on our consolidated financial statements. Stock Based Compensation In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Accounting ("ASU 2016-09"). ASU 2016-09 requires that all excess tax benefits and tax deficiencies related to stock based compensation arrangements must be recognized in the income statement as they occur as opposed to the current guidance where excess tax benefits are recorded in equity. ASU 2016-09 also allows entities to make an accounting policy election to either continue to estimate forfeitures on stock based compensation arrangements or to account for forfeitures as they occur. ASU 2016-09 is effective for annual and interim reporting periods beginning after December 15, 2016 with early adoption permitted. We do not believe ASU 2016-09 will have a material impact on our consolidated financial statements. Statement of Cash Flows In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows ("ASU 2016-15"). ASU 2016-15 clarifies how entities should classify certain cash receipts and cash payments on the statement of cash flows and how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flows. ASU 2016-15 is effective for us retrospectively for annual and interim reporting periods beginning after December 15, 2017 with early adoption permitted. We do not believe ASU 2016-15 will have a material impact on our consolidated financial statements. |
Reclassifications |
9 Months Ended |
---|---|
Sep. 30, 2016 | |
Disclosure Text Block [Abstract] | |
Reclassifications | Reclassifications Certain amounts in the accompanying consolidated financial statements for 2015, including the change in presentation of deferred financing costs pursuant to ASU 2015-03, have been reclassified to conform to the 2016 consolidated financial statement presentation. |
Variable Interest Entities |
9 Months Ended |
---|---|
Sep. 30, 2016 | |
Disclosure Text Block [Abstract] | |
Consolidation Policy for VIEs | Variable Interest Entities Partnership As the result of the adoption of ASU 2015-02, which stipulates that limited partnerships (and similar entities) where the limited partners do not have substantive participating or kick-out rights are VIEs, we determined that the Partnership is a VIE. Prior to the adoption of ASU 2015-02, the General Partner consolidated the Partnership pursuant to the voting interest model. We concluded that, because it holds majority ownership and exercises control over every aspect of the Partnership's operations, the General Partner is the primary beneficiary of the Partnership and, as such, will continue to consolidate the Partnership. The assets and liabilities of the General Partner and the Partnership are substantially the same, as the General Partner does not have any significant assets other than its investment in the Partnership. All of the Company's debt is also an obligation of the Partnership. Unconsolidated Joint Ventures We have equity interests in unconsolidated joint ventures that primarily own and operate rental properties or hold land for development. We consolidate those joint ventures that are considered to be VIEs where we are the primary beneficiary. We analyze our investments in joint ventures to determine if the joint venture is considered a VIE and would require consolidation. We (i) evaluate the sufficiency of the total equity investment at risk, (ii) review the voting rights and decision-making authority of the equity investment holders as a group and whether there are limited partners (or similar owning entities) that lack substantive participating or kick out rights, guaranteed returns, protection against losses, or capping of residual returns within the group and (iii) establish whether activities within the venture are on behalf of an investor with disproportionately few voting rights in making this VIE determination. To the extent that we own interests in a VIE and we (i) are the sole entity that has the power to direct the activities of the VIE and (ii) have the obligation or rights to absorb the VIE's losses or receive its benefits, then we would be determined to be the primary beneficiary and would consolidate the VIE. To the extent we own interests in a VIE, then at each reporting period, we re-assess our conclusions as to which, if any, party within the VIE is considered the primary beneficiary. There were no unconsolidated joint ventures, in which we have any recognized assets or liabilities or have retained any economic exposure to loss at September 30, 2016 that met the criteria to be considered VIEs. Our maximum loss exposure for guarantees of joint venture indebtedness, none of which relate to VIEs, totaled $52.7 million at September 30, 2016. |
Acquisitions and Dispositions |
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | Acquisitions and Dispositions Acquisitions and dispositions for the periods presented were completed in accordance with our strategy to reposition our investment concentration among the product types and markets in which we operate. The results of operations for all acquired properties have been included in continuing operations within our consolidated financial statements since their respective dates of acquisition. Acquisitions We acquired two properties during the nine months ended September 30, 2016, which included a property received as part of a non-cash distribution in connection with the dissolution of an unconsolidated joint venture. The following table summarizes amounts recognized for each major class of asset and liability (in thousands) for these acquisitions during the nine months ended September 30, 2016:
Acquired leases had an average remaining life at acquisition of approximately 8.9 years. We have included $2.1 million in rental revenues and a net loss of $28,000 in continuing operations during the nine months ended September 30, 2016 for the properties since their respective dates of acquisition. Distribution of Joint Venture Properties Included in our property acquisitions for the nine months ended September 30, 2016 was an industrial property that we received as part of a non-cash distribution of properties from Duke/Hulfish LLC ("Duke/Hulfish"), a 20% owned unconsolidated joint venture. On June 30, 2016, as part of a plan of dissolution, Duke/Hulfish distributed its ownership in seven properties to our partner in the joint venture while distributing its ownership interest in one property to us. We also received $2.8 million in cash from the joint venture in order to balance the value of the distributions received in accordance with the applicable ownership percentages. As the result of this dissolution transaction, we recognized a gain equal to the excess of the fair value of the one property distributed to us, plus the cash that we received, over the carrying value of our 20% investment in the eight properties that were distributed from Duke/Hulfish (both to us and our partner). The computation of this gain is shown as follows (in thousands):
In connection with the dissolution of Duke/Hulfish, and the sale of its final property to a third party in July 2016, we recognized promote income (additional incentive-based cash distributions from the joint venture, in excess of our 20% ownership interest) totaling $26.3 million for the nine months ended September 30, 2016. Fair Value Measurements The fair value estimates used in allocating the aggregate purchase price of an acquisition, to the extent accounted for as a business combination, among the individual components of real estate assets and liabilities were determined primarily through calculating the "as-if vacant" value of a building, using the income approach, and relied significantly upon internally determined assumptions. We have determined that these estimates primarily rely upon level 3 inputs, which are unobservable inputs based on our own assumptions. The most significant assumptions utilized in making the lease-up and future disposition estimates used in calculating the "as-if vacant" value for acquisition activity during the nine months ended September 30, 2016 are as follows:
Acquisition-Related Activity The acquisition-related activity in our consolidated Statements of Operations and Comprehensive Income consisted of adjustments to the fair value of contingent consideration from acquisitions after the measurement period was complete and transaction costs for completed acquisitions. Dispositions Dispositions of buildings (see Note 11 for the number of buildings sold as well as for their classification between continuing and discontinued operations) and undeveloped land generated net cash proceeds of $369.1 million and $1.53 billion during the nine months ended September 30, 2016 and 2015, respectively. |
Indebtedness |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indebtedness | Indebtedness All debt is held directly or indirectly by the Partnership. The General Partner does not have any indebtedness, but does guarantee some of the unsecured debt of the Partnership. The following table summarizes the book value and changes in the fair value of our debt (in thousands):
Secured Debt Because our fixed rate secured debt is not actively traded in any marketplace, we utilized a discounted cash flow methodology to determine its fair value. Accordingly, we calculated fair value by applying an estimate of the current market rate to discount the debt's remaining contractual cash flows. Our estimate of a current market rate, which is the most significant input in the discounted cash flow calculation, is intended to replicate debt of similar maturity and loan-to-value relationship. The estimated rates ranged from 2.50% to 3.30%, depending on the attributes of the specific loans. The current market rates we utilized were internally estimated; therefore, we have concluded that our determination of fair value for our fixed rate secured debt was primarily based upon level 3 inputs. During the nine months ended September 30, 2016, we repaid five loans, totaling $346.4 million, which had a weighted average stated rate of 5.90%. Unsecured Debt At September 30, 2016, with the exception of one variable rate term note, all of our unsecured debt bore interest at fixed rates and primarily consisted of unsecured notes that are publicly traded. We utilized broker estimates in estimating the fair value of our fixed rate unsecured debt. Our unsecured notes are thinly traded and, in certain cases, the broker estimates were not based upon comparable transactions. The broker estimates took into account any recent trades within the same series of our fixed rate unsecured debt, comparisons to recent trades of other series of our fixed rate unsecured debt, trades of fixed rate unsecured debt from companies with profiles similar to ours, as well as overall economic conditions. We reviewed these broker estimates for reasonableness and accuracy, considering whether the estimates were based upon market participant assumptions within the principal and most advantageous market and whether any other observable inputs would be more accurate indicators of fair value than the broker estimates. We concluded that the broker estimates were representative of fair value. We have determined that our estimation of the fair value of our fixed rate unsecured debt was primarily based upon level 3 inputs. The estimated trading values of our fixed rate unsecured debt, depending on the maturity and coupon rates, ranged from 103.00% to 137.00% of face value. During the nine months ended September 30, 2016, we issued $375.0 million of senior unsecured notes that bear interest at a stated interest rate of 3.25%, have an effective interest rate of 3.36%, and mature on June 30, 2026. A portion of these proceeds were used to repurchase, through a tender offer, $72.0 million of our 5.95% Senior Unsecured Notes due February 2017 ("5.95% Senior Unsecured Notes"), for a cash payment of $74.5 million in June 2016. In July 2016, we redeemed the remaining $203.0 million of 5.95% Senior Unsecured Notes for a cash payment of $209.0 million. Together, the repurchase and the redemption resulted in an $8.7 million loss on debt extinguishment, which included repurchase premiums, redemption premiums and the write-off of unamortized deferred financing costs. We utilize a discounted cash flow methodology in order to estimate the fair value of our $250.0 million variable rate term loan. Our estimate of the current market rate for our variable rate term loan was 1.68% and was based primarily upon level 3 inputs. To the extent that credit spreads have changed since the origination of this term loan, the net present value of the difference between future contractual interest payments and future interest payments based on our estimate of a current market rate would represent the difference between the book value and the fair value. Our estimate of a current market rate is based upon the rate, considering current market conditions and our specific credit profile, at which we estimate we could obtain similar borrowings. As our credit spreads have not changed appreciably, we believe that the contractual interest rate and the current market rate on the term loan are the same. The indentures (and related supplemental indentures) governing our outstanding series of notes also require us to comply with financial ratios and other covenants regarding our operations. We were in compliance with all such covenants at September 30, 2016. Unsecured Line of Credit Our unsecured line of credit at September 30, 2016 is described as follows (in thousands):
The Partnership's unsecured line of credit has an interest rate on borrowings of LIBOR plus 1.05% and a maturity date of January 2019 (with extension options that could extend the maturity date to January 2020). Subject to certain conditions, the terms also include an option to increase the facility by up to an additional $400.0 million, for a total of up to $1.60 billion. This line of credit provides us with an option to obtain borrowings from financial institutions that participate in the line at rates that may be lower than the stated interest rate, subject to certain restrictions. This line of credit contains financial covenants that require us to meet certain financial ratios and defined levels of performance, including those related to fixed charge coverage, unsecured interest expense coverage and debt-to-asset value (with asset value being defined in the Partnership's unsecured line of credit agreement). At September 30, 2016, we were in compliance with all covenants under this line of credit. To the extent that there are outstanding borrowings, we utilize a discounted cash flow methodology in order to estimate the fair value of our unsecured line of credit. To the extent that credit spreads have changed since the origination of the line of credit, the net present value of the difference between future contractual interest payments and future interest payments based on our estimate of a current market rate would represent the difference between the book value and the fair value. Our estimate of a current market rate is based upon the rate, considering current market conditions and our specific credit profile, at which we estimate we could obtain similar borrowings. As our credit spreads have not changed appreciably, we believe that the contractual interest rate and the current market rate on the line of credit are the same. To the extent there are outstanding borrowings, this current market rate is internally estimated and therefore would be primarily based upon a level 3 input. |
Shareholders' Equity Shareholders' Equity |
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Sep. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders' Equity of the General Partner and Partners' Capital of the Partnership General Partner During the nine months ended September 30, 2016, the General Partner issued 8.3 million common shares pursuant to its at the market ("ATM") equity program, generating gross proceeds of approximately $216.2 million and, after deducting commissions and other costs, net proceeds of approximately $213.6 million. The proceeds from these offerings were contributed to the Partnership and used to fund development activities and loan repayments. Partnership For each common share or preferred share that the General Partner issues, the Partnership issues a corresponding General Partner Unit or Preferred Unit, as applicable, to the General Partner in exchange for the contribution of the proceeds from the stock issuance. Similarly, when the General Partner redeems or repurchases common shares or preferred shares, the Partnership redeems the corresponding Common Units or Preferred Units held by the General Partner at the same price. |
Related Party Transactions |
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Related Party Transactions | Related Party Transactions We provide property management, asset management, leasing, construction and other tenant-related services to unconsolidated companies in which we have equity interests. We recorded the corresponding fees based on contractual terms that approximate market rates for these types of services and have eliminated our ownership percentage of these fees in the consolidated financial statements. The following table summarizes the fees earned from these companies, prior to the elimination of our ownership percentage (in thousands):
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Net Income (Loss) Per Common Share |
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Net Income (Loss) Per Common Share | Net Income Per Common Share or Common Unit Basic net income per common share or Common Unit is computed by dividing net income attributable to common shareholders or common unitholders, less dividends or distributions on share-based awards expected to vest (referred to as "participating securities" and primarily composed of unvested restricted stock units), by the weighted average number of common shares or Common Units outstanding for the period. Diluted net income per common share is computed by dividing the sum of basic net income attributable to common shareholders and the noncontrolling interest in earnings allocable to Limited Partner Units (to the extent the Limited Partner Units are dilutive) by the sum of the weighted average number of common shares outstanding and, to the extent they are dilutive, units outstanding and any potential dilutive securities for the period. Diluted net income per Common Unit is computed by dividing the basic net income attributable to common unitholders by the sum of the weighted average number of Common Units outstanding and any potential dilutive securities for the period. The following table reconciles the components of basic and diluted net income per common share or Common Unit (in thousands):
The following table summarizes the potentially dilutive shares or units excluded from the computation of net income per common share or Common Unit as a result of being anti-dilutive (in thousands):
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Segment Reporting |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | Segment Reporting Reportable Segments We had three reportable operating segments at September 30, 2016, the first two of which consist of the ownership and rental of (i) industrial and (ii) medical office real estate investments. Beginning in 2016, our office properties are no longer presented as a separate reportable segment, as they no longer meet the quantitative thresholds for separate presentation, and are referred to as part of our non-reportable Rental Operations. The operations of our industrial and medical office properties as well as our non-reportable Rental Operations, are collectively referred to as "Rental Operations." Our third reportable segment consists of various real estate services such as property management, asset management, maintenance, leasing, development, general contracting and construction management to third-party property owners and joint ventures, and is collectively referred to as "Service Operations." Our reportable segments offer different products or services and are managed separately because each segment requires different operating strategies and management expertise. Revenues by Reportable Segment The following table shows the revenues for each of the reportable segments, as well as a reconciliation to consolidated revenues (in thousands):
Supplemental Performance Measure Property-level net operating income on a cash basis ("PNOI") is the non-GAAP supplemental performance measure that we use to evaluate the performance of, and to allocate resources among, the real estate investments in the reportable and operating segments that comprise our Rental Operations. PNOI for our Rental Operations segments is comprised of rental revenues from continuing operations less rental expenses and real estate taxes from continuing operations, along with certain other adjusting items (collectively referred to as "Rental Operations revenues and expenses excluded from PNOI," as shown in the following table). Additionally, we do not allocate interest expense, depreciation expense and certain other non-property specific revenues and expenses (collectively referred to as "Non-Segment Items," as shown in the following table) to our individual operating segments. We evaluate the performance of our Service Operations reportable segment using net income or loss, as allocated to that segment ("Earnings from Service Operations"). The following table shows a reconciliation of our segment-level measures of profitability to consolidated income from continuing operations before income taxes (in thousands and excluding discontinued operations):
The most comparable GAAP measure to PNOI is income from continuing operations before income taxes. PNOI excludes expenses that materially impact our overall results of operations and, therefore, should not be considered as a substitute for income from continuing operations before income taxes or any other measures derived in accordance with GAAP. Furthermore, PNOI may not be comparable to other similarly titled measures of other companies. Assets by Reportable Segment The assets for each of the reportable segments were as follows (in thousands):
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Discontinued Operations and Assets Held for Sale |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Assets Held for Sale | Discontinued Operations, Assets Held-for-Sale and Impairments Discontinued Operations The following table illustrates the number of sold or held-for-sale properties included in, or excluded from, discontinued operations:
For the properties that were classified in discontinued operations, we allocated interest expense to discontinued operations and have included such interest expense in computing income from discontinued operations. Interest expense allocable to discontinued operations includes interest on any secured debt for properties included in discontinued operations and an allocable share of our consolidated unsecured interest expense for unencumbered properties. The allocation of unsecured interest expense to discontinued operations was based upon the gross book value of the unencumbered real estate assets included in discontinued operations as it related to the total gross book value of our unencumbered real estate assets. There were no additional properties classified as discontinued operations during the nine months ended September 30, 2016 and, as such, no interest expense was allocated to discontinued operations during that period. The following table illustrates the operational results of the buildings reflected in discontinued operations (in thousands):
We had no capital expenditures for the nine months ended September 30, 2016 and $7.4 million for the nine months ended September 30, 2015 related to properties classified within discontinued operations. Allocation of Noncontrolling Interests - General Partner The following table illustrates the General Partner's share of the income attributable to common shareholders from continuing operations and discontinued operations, reduced by the allocation of income between continuing and discontinued operations to the Limited Partner Units (in thousands):
Allocation of Noncontrolling Interests - Partnership Substantially all of the income from discontinued operations for all periods presented in the Partnership's Consolidated Statements of Operations and Comprehensive Income is attributable to the common unitholders. Properties Held-for-Sale At September 30, 2016, one in-service property and 14 acres of undeveloped land were classified as held-for-sale but did not meet the criteria to be classified within discontinued operations. The following table illustrates aggregate balance sheet information for all held-for-sale properties (in thousands):
Impairment Charges The following table illustrates impairment charges recognized (in thousands):
As the result of changes in our intended use or plans for sale of certain of our undeveloped land holdings, we recognized land impairment charges of $12.1 million for the nine months ended September 30, 2016. The various land holdings written down to fair value totaled 174 acres. The fair value of the land upon which we recognized impairment charges was estimated based on asset-specific offers to purchase and comparable transactions. Our valuation estimates primarily relied upon level 3 inputs. |
Subsequent Events |
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Sep. 30, 2016 | |||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||
Subsequent Events | Subsequent Events Declaration of Dividends/Distributions The General Partner's board of directors declared the following dividends/distributions at its regularly scheduled board meeting held on October 19, 2016:
Debt Extinguishment On October 20, 2016, we redeemed $129.5 million in unsecured notes that had a scheduled maturity in August of 2019. We will recognize a net loss on the extinguishment of these notes in the fourth quarter totaling $25.2 million, which is comprised of a make-whole payment to the bondholders as well as the write-off of unamortized deferred financing costs. |
Acquisitions and Dispositions (Tables) |
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Sep. 30, 2016 | |||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes amounts recognized for each major class of asset and liability (in thousands) for these acquisitions during the nine months ended September 30, 2016:
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Summary of Most Significant Assumptions Utilized in the Estimations [Table Text Block] | The most significant assumptions utilized in making the lease-up and future disposition estimates used in calculating the "as-if vacant" value for acquisition activity during the nine months ended September 30, 2016 are as follows:
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Duke/Hulfish LLC [Member] | |||||||||||||||||||||||||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The computation of this gain is shown as follows (in thousands):
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Indebtedness (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Liabilities Measured on a Recurring Basis, Disclosure Only | The following table summarizes the book value and changes in the fair value of our debt (in thousands):
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Unsecured Line of Credit | Our unsecured line of credit at September 30, 2016 is described as follows (in thousands):
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Related Party Transactions (Tables) |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fees Earned from Related Parties | The following table summarizes the fees earned from these companies, prior to the elimination of our ownership percentage (in thousands):
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Net Income (Loss) Per Common Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciling the Components of Basic and Diluted Net Income (Loss) per Common Share | The following table reconciles the components of basic and diluted net income per common share or Common Unit (in thousands):
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Computation of Anti-Dilutive Common Share | The following table summarizes the potentially dilutive shares or units excluded from the computation of net income per common share or Common Unit as a result of being anti-dilutive (in thousands):
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Segment Reporting (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Revenue from Segments to Consolidated | The following table shows the revenues for each of the reportable segments, as well as a reconciliation to consolidated revenues (in thousands):
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Summary of Net Operation Income | The following table shows a reconciliation of our segment-level measures of profitability to consolidated income from continuing operations before income taxes (in thousands and excluding discontinued operations):
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Reportable Segments Consolidated Assets | The assets for each of the reportable segments were as follows (in thousands):
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Discontinued Operations and Assets Held for Sale (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Table Illustration of Number of Properties in Discontinued Operations | The following table illustrates the number of sold or held-for-sale properties included in, or excluded from, discontinued operations:
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Table Illustration of Discontinued Operations in Statement of Operations | The following table illustrates the operational results of the buildings reflected in discontinued operations (in thousands):
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Allocation of Common Shareholders' Income (Loss) Between Continuing and Discontinued Operations | The following table illustrates the General Partner's share of the income attributable to common shareholders from continuing operations and discontinued operations, reduced by the allocation of income between continuing and discontinued operations to the Limited Partner Units (in thousands):
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Schedule of Discontinued Operations, Properties Held-for-Sale, Aggregate Balance Sheet Information [Table Text Block] | The following table illustrates aggregate balance sheet information for all held-for-sale properties (in thousands):
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Asset Impairment Charges [Text Block] | The following table illustrates impairment charges recognized (in thousands):
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Subsequent Events (Tables) |
9 Months Ended | ||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||
Schedule of Dividends Declared | The General Partner's board of directors declared the following dividends/distributions at its regularly scheduled board meeting held on October 19, 2016:
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General Basis of Presentation (Details) |
9 Months Ended |
---|---|
Sep. 30, 2016 | |
Common partnership interests of DRLP Owned | 99.00% |
Duke Realty Limited Partnership [Member] | |
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest | 1.00% |
Variable Interest Entities (Balances Related to Joint Ventures) (Details) $ in Millions |
Sep. 30, 2016
USD ($)
|
---|---|
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | |
Maximum Guarantee Exposure for Joint Venture Loans | $ 52.7 |
Acquisitions and Dispositions (Summary of Allocation of Fair Value of Amounts Recognized) (Details) $ in Thousands |
Sep. 30, 2016
USD ($)
|
---|---|
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Buildings | $ 72,824 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 6,427 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 79,251 |
Acquisitions and Dispositions Dispositions (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Dispositions Disclosures [Line Items] | ||
Proceeds from Sale of Real Estate Held-for-investment | $ 369,118 | $ 1,534,177 |
Indebtedness Secured Debt (Details) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2016
USD ($)
loans
|
Sep. 30, 2015
USD ($)
|
|
Debt Instrument [Line Items] | ||
Repayments of Secured Debt | $ 352,723 | $ 221,085 |
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | |
Fixed Rate Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Effective Percentage Rate Range, Minimum | 2.50% | |
Debt Instrument, Interest Rate, Effective Percentage Rate Range, Maximum | 3.30% | |
Repayments of Secured Debt | $ 346,400 | |
number of secured loans repaid | loans | 5 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.90% |
Indebtedness (Unsecured Line of Credit) (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Dec. 31, 2015 |
|
Line of credit balance | $ 0 | $ 71,000 |
Unsecured Line of Credit DRLP [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,600,000 | |
Line of Credit Facility, Covenant Compliance | we were in compliance with all covenants under this line of credit. | |
Line of Credit Facility Option to Increase Borrowing Limit | $ 400,000 | |
Unsecured Line of Credit DRLP [Member] | Unsecured Line of Credit DRLP [Member] | ||
Maximum Capacity | $ 1,200,000 | |
Maturity date | Jan. 01, 2019 | |
Line of credit balance | $ 0 | |
Unsecured Line of Credit DRLP [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument, Description of Variable Rate Basis | LIBOR | |
Debt Instrument, Basis Spread on Variable Rate | 1.05% | |
Extended Maturity [Member] | Unsecured Line of Credit DRLP [Member] | Unsecured Line of Credit DRLP [Member] | ||
Maturity date | Jan. 01, 2020 |
Shareholders' Equity Shareholders' Equity (Details) - USD ($) $ in Thousands, shares in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Class of Stock [Line Items] | ||
Proceeds from Issuance of Common Stock | $ 217,513 | $ 4,592 |
At-the-market equity issuance [Member] | ||
Class of Stock [Line Items] | ||
Stock Issued During Period, Shares, New Issues | 8.3 | |
Proceeds from Issuance of Common Stock | $ 213,600 | |
Gross Proceeds [Member] | At-the-market equity issuance [Member] | ||
Class of Stock [Line Items] | ||
Proceeds from Issuance of Common Stock | $ 216,200 |
Related Party Transactions (Schedule of Fees Earned from Related Parties) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Management Fees [Member] | ||||
Revenue from related party transactions | $ 1,035 | $ 1,835 | $ 3,585 | $ 5,388 |
Leasing Fees [Member] | ||||
Revenue from related party transactions | 629 | 692 | 2,061 | 1,714 |
Construction and Development Fees [Member] | ||||
Revenue from related party transactions | $ 1,307 | $ 2,247 | $ 6,666 | $ 3,377 |
Net Income (Loss) Per Common Share (Computation of Anti-Dilutive Common Shares) (Details) - shares shares in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Stock Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities | 170 | 997 | 170 | 997 |
Participating Securities [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities | 0 | 0 | 0 | 0 |
Segment Reporting (Reportable Segments Consolidated Assets) (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Total Assets | $ 6,862,081 | $ 6,895,515 |
Corporate, Non-Segment [Member] | ||
Total Assets | 485,689 | 569,136 |
Operating Segments [Member] | ||
Total Assets | 6,376,392 | 6,326,379 |
Operating Segments [Member] | Industrial [Member] | ||
Total Assets | 4,712,532 | 4,552,107 |
Operating Segments [Member] | Medical Office [Member] | ||
Total Assets | 1,319,955 | 1,269,546 |
Operating Segments [Member] | All Other Segments [Member] | ||
Total Assets | 214,130 | 367,469 |
Operating Segments [Member] | Service Operations [Member] | ||
Total Assets | $ 129,775 | $ 137,257 |
Discontinued Operations and Assets Held for Sale (Allocation of Shareholders' Income (Loss) Between Continuing and Discontinued Operations) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Discontinued Operations | ||||
Income (loss) from continuing operations attributable to common shareholders | $ 111,325 | $ 76,367 | $ 263,174 | $ 170,294 |
Income (loss) from discontinued operations attributable to common shareholders | 689 | 67 | 1,214 | 420,764 |
Net income attributable to common shareholders | $ 112,014 | $ 76,434 | $ 264,388 | $ 591,058 |
Discontinued Operations and Assets Held for Sale Impairment (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016
USD ($)
a
|
Sep. 30, 2015
USD ($)
|
Sep. 30, 2016
USD ($)
a
|
Sep. 30, 2015
USD ($)
|
|
Acres of Land with Impairment Charge | a | 174 | 174 | ||
Impairment Charges | $ 3,042 | $ 2,426 | $ 15,098 | $ 7,896 |
Land [Member] | ||||
Impairment Charges | 0 | 2,426 | 12,056 | 7,032 |
buildings [Member] | ||||
Impairment Charges | $ 3,042 | $ 0 | $ 3,042 | $ 864 |
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Subsequent Event [Line Items] | |||||
Repayments of Unsecured Debt | $ 285,339 | $ 759,948 | |||
Gains (Losses) on Extinguishment of Debt | $ (6,243) | $ 64 | $ (8,673) | $ (82,589) | |
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Repayments of Unsecured Debt | $ 129,500 | ||||
Gains (Losses) on Extinguishment of Debt | $ 25,200 | ||||
Subsequent Event [Member] | Common Stock [Member] | |||||
Subsequent Event [Line Items] | |||||
Common stock dividends declared per share | $ 0.19 | ||||
Record date | Nov. 16, 2016 | ||||
Payment date | Nov. 30, 2016 |
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