ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Texas | 76-6088377 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
11 Greenway Plaza, Suite 2400 Houston, Texas | 77046 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ý | Accelerated filer | ¨ | ||
Non-accelerated filer | ¨ (Do not check if a Smaller Reporting Company) | Smaller Reporting Company | ¨ | ||
Emerging Growth Company | ¨ |
Page | |||
PART I | |||
Item 1 | |||
Item 2 | |||
Item 3 | |||
Item 4 | |||
PART II | |||
Item 1 | |||
Item 1A | |||
Item 2 | |||
Item 3 | |||
Item 4 | |||
Item 5 | |||
Item 6 | |||
Exhibit 101.INS | |||
Exhibit 101.SCH | |||
Exhibit 101.CAL | |||
Exhibit 101.DEF | |||
Exhibit 101.LAB | |||
Exhibit 101.PRE |
(in thousands, except per share amounts) | March 31, 2018 | December 31, 2017 | |||||
Assets | |||||||
Real estate assets, at cost | |||||||
Land | $ | 1,053,578 | $ | 1,021,031 | |||
Buildings and improvements | 6,494,229 | 6,269,481 | |||||
$ | 7,547,807 | $ | 7,290,512 | ||||
Accumulated depreciation | (2,185,452 | ) | (2,118,839 | ) | |||
Net operating real estate assets | $ | 5,362,355 | $ | 5,171,673 | |||
Properties under development, including land | 399,903 | 377,231 | |||||
Investments in joint ventures | 26,863 | 27,237 | |||||
Total real estate assets | $ | 5,789,121 | $ | 5,576,141 | |||
Accounts receivable – affiliates | 23,397 | 24,038 | |||||
Other assets, net | 199,420 | 195,764 | |||||
Cash and cash equivalents | 101,401 | 368,492 | |||||
Restricted cash | 15,036 | 9,313 | |||||
Total assets | $ | 6,128,375 | $ | 6,173,748 | |||
Liabilities and equity | |||||||
Liabilities | |||||||
Notes payable | |||||||
Unsecured | $ | 1,339,142 | $ | 1,338,628 | |||
Secured | 865,798 | 865,970 | |||||
Accounts payable and accrued expenses | 123,706 | 128,313 | |||||
Accrued real estate taxes | 29,061 | 51,383 | |||||
Distributions payable | 75,083 | 72,943 | |||||
Other liabilities | 157,002 | 154,567 | |||||
Total liabilities | $ | 2,589,792 | $ | 2,611,804 | |||
Commitments and contingencies (Note 12) | |||||||
Non-qualified deferred compensation share awards | 76,174 | 77,230 | |||||
Equity | |||||||
Common shares of beneficial interest; $0.01 par value per share; 175,000 shares authorized; 105,493 and 105,489 issued; 102,640 and 102,769 outstanding at March 31, 2018 and December 31, 2017, respectively | 1,026 | 1,028 | |||||
Additional paid-in capital | 4,132,056 | 4,137,161 | |||||
Distributions in excess of net income attributable to common shareholders | (396,596 | ) | (368,703 | ) | |||
Treasury shares, at cost (9,865 and 10,073 common shares at March 31, 2018 and December 31, 2017, respectively) | (356,687 | ) | (364,066 | ) | |||
Accumulated other comprehensive income (loss) | 3,579 | (57 | ) | ||||
Total common equity | $ | 3,383,378 | $ | 3,405,363 | |||
Non-controlling interests | 79,031 | 79,351 | |||||
Total equity | $ | 3,462,409 | $ | 3,484,714 | |||
Total liabilities and equity | $ | 6,128,375 | $ | 6,173,748 |
Three Months Ended March 31, | |||||||
(in thousands, except per share amounts) | 2018 | 2017 | |||||
Property revenues | |||||||
Rental revenues | $ | 203,505 | $ | 188,102 | |||
Other property revenues | 27,178 | 31,419 | |||||
Total property revenues | $ | 230,683 | $ | 219,521 | |||
Property expenses | |||||||
Property operating and maintenance | $ | 53,916 | $ | 51,548 | |||
Real estate taxes | 30,049 | 27,920 | |||||
Total property expenses | $ | 83,965 | $ | 79,468 | |||
Non-property income | |||||||
Fee and asset management | $ | 1,998 | $ | 1,748 | |||
Interest and other income | 793 | 634 | |||||
Income (loss) on deferred compensation plans | (205 | ) | 4,617 | ||||
Total non-property income | $ | 2,586 | $ | 6,999 | |||
Other expenses | |||||||
Property management | $ | 6,639 | $ | 7,027 | |||
Fee and asset management | 965 | 884 | |||||
General and administrative | 12,223 | 12,868 | |||||
Interest | 20,374 | 22,956 | |||||
Depreciation and amortization | 70,224 | 63,734 | |||||
Expense (benefit) on deferred compensation plans | (205 | ) | 4,617 | ||||
Total other expenses | $ | 110,220 | $ | 112,086 | |||
Loss on early retirement of debt | — | (323 | ) | ||||
Equity in income of joint ventures | 1,829 | 1,817 | |||||
Income from continuing operations before income taxes | $ | 40,913 | $ | 36,460 | |||
Income tax expense | (388 | ) | (471 | ) | |||
Net income | $ | 40,525 | $ | 35,989 | |||
Less income allocated to non-controlling interests from continuing operations | (1,130 | ) | (1,128 | ) | |||
Net income attributable to common shareholders | $ | 39,395 | $ | 34,861 |
Three Months Ended March 31, | |||||||
(in thousands, except per share amounts) | 2018 | 2017 | |||||
Earnings per share – basic | $ | 0.41 | $ | 0.39 | |||
Earnings per share – diluted | $ | 0.41 | $ | 0.39 | |||
Distributions declared per common share | $ | 0.77 | $ | 0.75 | |||
Weighted average number of common shares outstanding – basic | 95,067 | 89,925 | |||||
Weighted average number of common shares outstanding – diluted | 96,046 | 90,949 | |||||
Condensed Consolidated Statements of Comprehensive Income | |||||||
Net income | $ | 40,525 | $ | 35,989 | |||
Other comprehensive income | |||||||
Unrealized gain on cash flow hedging activities | 3,601 | — | |||||
Reclassification of net loss on cash flow hedging activities, prior service cost and net loss on post-retirement obligation | 35 | 34 | |||||
Comprehensive income | $ | 44,161 | $ | 36,023 | |||
Less income allocated to non-controlling interests from continuing operations | (1,130 | ) | (1,128 | ) | |||
Comprehensive income attributable to common shareholders | $ | 43,031 | $ | 34,895 |
Common Shareholders | |||||||||||||||||||||||||||
(in thousands) | Common shares of beneficial interest | Additional paid-in capital | Distributions in excess of net income | Treasury shares, at cost | Accumulated other comprehensive (loss)/income | Non-controlling interests | Total equity | ||||||||||||||||||||
Equity, December 31, 2017 | $ | 1,028 | $ | 4,137,161 | $ | (368,703 | ) | $ | (364,066 | ) | $ | (57 | ) | $ | 79,351 | $ | 3,484,714 | ||||||||||
Net income | 39,395 | 1,130 | 40,525 | ||||||||||||||||||||||||
Other comprehensive income | 3,636 | 3,636 | |||||||||||||||||||||||||
Net share awards | 45 | 7,632 | 7,677 | ||||||||||||||||||||||||
Employee share purchase plan | 74 | 74 | |||||||||||||||||||||||||
Common share options exercised | 41 | 41 | |||||||||||||||||||||||||
Change in classification of deferred compensation plan | (5,250 | ) | (5,250 | ) | |||||||||||||||||||||||
Change in redemption value of non-qualified share awards | 6,306 | 6,306 | |||||||||||||||||||||||||
Common shares repurchased | (253 | ) | (253 | ) | |||||||||||||||||||||||
Cash distributions declared to equity holders | (73,594 | ) | (1,450 | ) | (75,044 | ) | |||||||||||||||||||||
Other | (2 | ) | (15 | ) | (17 | ) | |||||||||||||||||||||
Equity, March 31, 2018 | $ | 1,026 | $ | 4,132,056 | $ | (396,596 | ) | $ | (356,687 | ) | $ | 3,579 | $ | 79,031 | $ | 3,462,409 |
Common Shareholders | |||||||||||||||||||||||||||
(in thousands) | Common shares of beneficial interest | Additional paid-in capital | Distributions in excess of net income | Treasury shares, at cost | Accumulated other comprehensive loss | Non-controlling interests | Total equity | ||||||||||||||||||||
Equity, December 31, 2016 | $ | 978 | $ | 3,678,277 | $ | (289,180 | ) | $ | (373,339 | ) | $ | (1,863 | ) | $ | 80,680 | $ | 3,095,553 | ||||||||||
Net income | 34,861 | 1,128 | 35,989 | ||||||||||||||||||||||||
Other comprehensive income | 34 | 34 | |||||||||||||||||||||||||
Net share awards | 468 | 7,416 | 7,884 | ||||||||||||||||||||||||
Employee share purchase plan | 78 | 78 | |||||||||||||||||||||||||
Common share options exercised | 77 | 77 | |||||||||||||||||||||||||
Change in classification of deferred compensation plan | (4,234 | ) | (4,234 | ) | |||||||||||||||||||||||
Change in redemption value of non-qualified share awards | 3,925 | 3,925 | |||||||||||||||||||||||||
Diversification of share awards within deferred compensation plan | 954 | 688 | 1,642 | ||||||||||||||||||||||||
Conversion of operating partnership units | 117 | (117 | ) | — | |||||||||||||||||||||||
Cash distributions declared to equity holders | (67,936 | ) | (1,413 | ) | (69,349 | ) | |||||||||||||||||||||
Equity, March 31, 2017 | $ | 978 | $ | 3,675,737 | $ | (317,642 | ) | $ | (365,923 | ) | $ | (1,829 | ) | $ | 80,278 | $ | 3,071,599 |
Three Months Ended March 31, | |||||||
(in thousands) | 2018 | 2017 | |||||
Cash flows from operating activities | |||||||
Net income | $ | 40,525 | $ | 35,989 | |||
Adjustments to reconcile net income to net cash from operating activities: | |||||||
Depreciation and amortization | 70,224 | 63,734 | |||||
Loss on early retirement of debt | — | 323 | |||||
Distributions of income from joint ventures | 1,815 | 1,720 | |||||
Equity in income of joint ventures | (1,829 | ) | (1,817 | ) | |||
Share-based compensation | 4,183 | 4,449 | |||||
Net change in operating accounts and other | (27,764 | ) | (31,413 | ) | |||
Net cash from operating activities | $ | 87,154 | $ | 72,985 | |||
Cash flows from investing activities | |||||||
Development and capital improvements | $ | (71,828 | ) | $ | (62,783 | ) | |
Acquisition of operating properties | (201,899 | ) | — | ||||
Maturities of short-term investments | — | 100,000 | |||||
Other | (1,830 | ) | (2,442 | ) | |||
Net cash from investing activities | $ | (275,557 | ) | $ | 34,775 | ||
Cash flows from financing activities | |||||||
Repayment of notes payable | $ | (358 | ) | $ | (31,214 | ) | |
Distributions to common shareholders and non-controlling interests | (72,943 | ) | (69,161 | ) | |||
Other | 336 | 493 | |||||
Net cash from financing activities | $ | (72,965 | ) | $ | (99,882 | ) | |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (261,368 | ) | 7,878 | ||||
Cash, cash equivalents, and restricted cash, beginning of year | 377,805 | 245,826 | |||||
Cash, cash equivalents, and restricted cash, end of period | $ | 116,437 | $ | 253,704 | |||
Reconciliation of cash, cash equivalents, and restricted cash to the Condensed Consolidated Balance Sheet | |||||||
Cash and cash equivalents | $ | 101,401 | $ | 245,529 | |||
Restricted cash | 15,036 | 8,175 | |||||
Total cash, cash equivalents, and restricted cash, end of period | $ | 116,437 | $ | 253,704 | |||
Supplemental information | |||||||
Cash paid for interest, net of interest capitalized | $ | 16,701 | $ | 15,767 | |||
Supplemental schedule of noncash investing and financing activities | |||||||
Distributions declared but not paid | $ | 75,083 | $ | 69,236 | |||
Value of shares issued under benefit plans, net of cancellations | 16,471 | 16,934 | |||||
Accrual associated with construction and capital expenditures | 23,204 | 16,685 |
Estimated Useful Life | |
Buildings and improvements | 5-35 years |
Furniture, fixtures, equipment, and other | 3-20 years |
Intangible assets/liabilities (in-place leases and above and below market leases) | underlying lease term |
• | Level 1: Quoted prices for identical instruments in active markets. |
• | Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. |
• | Level 3: Significant inputs to the valuation model are unobservable. |
Three Months Ended March 31, | ||||||||
(in thousands, except per share amounts) | 2018 | 2017 | ||||||
Earnings per common share calculation – basic | ||||||||
Income from continuing operations attributable to common shareholders | $ | 39,395 | $ | 34,861 | ||||
Amount allocated to participating securities | (265 | ) | (38 | ) | ||||
Net income attributable to common shareholders – basic | $ | 39,130 | $ | 34,823 | ||||
Total earnings per common share – basic | $ | 0.41 | $ | 0.39 | ||||
Weighted average number of common shares outstanding – basic | 95,067 | 89,925 | ||||||
Three Months Ended March 31, | ||||||||
(in thousands, except per share amounts) | 2018 | 2017 | ||||||
Earnings per common share calculation – diluted | ||||||||
Income from continuing operations attributable to common shareholders, net of amount allocated to participating securities | $ | 39,130 | $ | 34,823 | ||||
Income allocated to common units from continuing operations | 297 | 273 | ||||||
Net income attributable to common shareholders – diluted | $ | 39,427 | $ | 35,096 | ||||
Total earnings per common share – diluted | $ | 0.41 | $ | 0.39 | ||||
Weighted average number of common shares outstanding – basic | 95,067 | 89,925 | ||||||
Incremental shares issuable from assumed conversion of: | ||||||||
Common share options and share awards granted | 174 | 218 | ||||||
Common units | 805 | 806 | ||||||
Weighted average number of common shares outstanding – diluted | 96,046 | 90,949 |
(in millions) | March 31, 2018 | December 31, 2017 | |||||
Total assets | $ | 703.0 | $ | 715.9 | |||
Total third-party debt | 513.4 | 514.5 | |||||
Total equity | 173.2 | 174.5 |
Three Months Ended March 31, | |||||||
(in millions) | 2018 | 2017 | |||||
Total revenues | $ | 31.1 | $ | 30.0 | |||
Net income | 3.7 | 3.8 | |||||
Equity in income (1) | 1.8 | 1.8 |
(1) | Equity in income excludes our ownership interest of fee income from various services provided by us to the Funds. |
(in millions) | March 31, 2018 | December 31, 2017 | ||||||
Senior unsecured notes (1) | ||||||||
4.78% Notes, due 2021 | $ | 248.8 | $ | 248.7 | ||||
3.15% Notes, due 2022 | 346.8 | 346.6 | ||||||
5.07% Notes, due 2023 | 247.7 | 247.6 | ||||||
4.36% Notes, due 2024 | 248.5 | 248.5 | ||||||
3.68% Notes, due 2024 | 247.3 | 247.2 | ||||||
$ | 1,339.1 | $ | 1,338.6 | |||||
Secured notes (1) | ||||||||
2.20% – 5.77% Conventional Mortgage Notes, due 2018 – 2045 | $ | 865.8 | $ | 866.0 | ||||
Total notes payable | $ | 2,204.9 | $ | 2,204.6 | ||||
Other floating rate debt included in secured notes (2.20%) | $ | 175.0 | $ | 175.0 |
(1) | Unamortized debt discounts and debt issuance costs of $11.6 million and $12.3 million are included in senior unsecured and secured notes payable as of March 31, 2018 and December 31, 2017, respectively. |
(in millions) (1) | Amount | Weighted Average Interest Rate | |||||
2018 | $ | 174.1 | 2.2 | % | |||
2019 | 643.0 | 5.4 | |||||
2020 (2) | (1.2 | ) | — | ||||
2021 | 249.1 | 4.8 | |||||
2022 | 349.3 | 3.2 | |||||
Thereafter | 790.6 | 4.4 | |||||
Total | $ | 2,204.9 | 4.3 | % |
(1) | Includes all available extension options. |
(2) | Includes amortization of debt discounts and debt issuance costs, net of scheduled principal payments. |
Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||
March 31, 2018 (1) | December 31, 2017 | March 31, 2018 (1) | December 31, 2017 | ||||||||||||||||||||
(in millions) | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||||||
Interest Rate Swaps | Other Assets | $ | 7.7 | Other Assets | $ | 2.2 | Other Liabilities | $ | 2.4 | Other Liabilities | $ | 0.5 |
(1) | The derivatives subject to master netting arrangements are presented on a gross basis on our condensed consolidated balance sheet as of March 31, 2018. Had these derivatives been recognized on a net basis, the fair value of the derivative asset would have been $5.3 million. We had no derivative contracts in a master netting arrangement as of December 31, 2017. |
Derivatives in Cash Flow Hedging Relationships | Unrealized Gain Recognized in Other Comprehensive Income (“OCI”) on Derivatives | Location of Gain Reclassified from Accumulated OCI into Income | Amount of Gain Reclassified from Accumulated OCI into Income | |||||
2018 | 2018 | |||||||
Interest Rate Swaps | $ | 3.6 | Interest expense | N/A |
• | Each share issued or to be issued in connection with an award, other than an option, right or other award which does not deliver the full value at grant of the underlying shares, will be counted against the Fungible Pool Limit as 3.45 fungible pool units; |
• | Options and other awards which do not deliver the full value at grant of the underlying shares and which expire more than five years from date of grant will be counted against the Fungible Pool Limit as one fungible unit; and |
• | Options, rights and other awards which do not deliver the full value at grant and expire five years or less from the date of grant will be counted against the Fungible Pool Limit as 0.83 of a fungible unit. |
Options Outstanding and Exercisable (1) | |||||||
Exercise Prices | Number | Weighted Average Price | |||||
$75.17 | 15,388 | $ | 75.17 | ||||
$78.55 | 9,994 | 78.55 | |||||
$80.89 - $85.05 | 27,476 | 82.84 | |||||
Total options | 52,858 | $ | 79.79 |
(1) | The aggregate intrinsic value of options outstanding and exercisable at March 31, 2018 was $0.2 million. The aggregate intrinsic value was calculated as the excess, if any, between our closing share price of $84.18 per share on March 31, 2018 and the strike price of the underlying award. |
Three Months Ended March 31, 2018 | |
Weighted average fair value of options granted | 4.11 |
Expected volatility | 15.1% |
Risk-free interest rate | 2.0% |
Expected dividend yield | 3.3% |
Expected life | 1 year |
Options Outstanding | Weighted Average Exercise / Grant Price | Nonvested Share Awards Outstanding | Weighted Average Exercise / Grant Price | ||||||||||
Options and nonvested share awards outstanding at December 31, 2017 | 68,978 | $ | 61.15 | 499,898 | $ | 75.80 | |||||||
Granted | 9,994 | 78.55 | 211,417 | 82.65 | |||||||||
Exercised/Vested | (26,114 | ) | 30.06 | (298,419 | ) | 75.22 | |||||||
Forfeited | — | — | (12,650 | ) | 79.16 | ||||||||
Total options and nonvested share awards outstanding at March 31, 2018 | 52,858 | $ | 79.79 | 400,246 | $ | 79.74 |
(in thousands) | Three Months Ended March 31, 2018 | |||
Temporary equity: | ||||
Balance at December 31, 2017 | $ | 77,230 | ||
Change in classification | 5,250 | |||
Change in redemption value | (6,306 | ) | ||
Balance at March 31, 2018 | $ | 76,174 |
Three Months Ended March 31, | |||||||
(in thousands) | 2018 | 2017 | |||||
Change in assets: | |||||||
Other assets, net | $ | 2,236 | $ | 2,200 | |||
Change in liabilities: | |||||||
Accounts payable and accrued expenses | (9,836 | ) | (7,786 | ) | |||
Accrued real estate taxes | (22,464 | ) | (24,359 | ) | |||
Other liabilities | 1,600 | (2,211 | ) | ||||
Other | 700 | 743 | |||||
Change in operating accounts and other | $ | (27,764 | ) | $ | (31,413 | ) |
March 31, 2018 | December 31, 2017 | ||||||||||||||||||||||||||||||
(in millions) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||||||||||||||||||||
Other Assets | |||||||||||||||||||||||||||||||
Deferred compensation plan investments (1) | $ | 119.0 | $ | — | $ | — | $ | 119.0 | $ | 120.3 | $ | — | $ | — | $ | 120.3 | |||||||||||||||
Derivative financial instruments - forward interest rate swap | — | 7.7 | — | 7.7 | — | 2.2 | — | 2.2 | |||||||||||||||||||||||
Other Liabilities | |||||||||||||||||||||||||||||||
Derivative financial instruments - forward interest rate swaps | $ | — | $ | 2.4 | $ | — | $ | 2.4 | $ | — | $ | 0.5 | $ | — | $ | 0.5 |
(1) | Approximately $3.0 million and $4.2 million of participant cash was withdrawn from our deferred compensation plan investments during the three months ended March 31, 2018 and the year ended December 31, 2017, respectively. Approximately $23.2 million of shares in the compensation plan were diversified into the deferred compensation plan investments during the year ended December 31, 2017. There were no shares diversified during the three months ended March 31, 2018. |
March 31, 2018 | December 31, 2017 | ||||||||||||||
(in millions) | Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | |||||||||||
Fixed rate notes payable | $ | 2,029.9 | $ | 2,069.8 | $ | 2,029.6 | $ | 2,106.5 | |||||||
Floating rate notes payable | 175.0 | 174.2 | 175.0 | 173.7 |
• | Volatility in capital and credit markets, or other unfavorable changes in economic conditions, either nationally or regionally in one or more of the markets in which we operate, could adversely impact us; |
• | Short-term leases expose us to the effects of declining market rents; |
• | Competition could limit our ability to lease apartments or increase or maintain rental income; |
• | We face risks associated with land holdings and related activities; |
• | Potential reforms to Fannie Mae and Freddie Mac could adversely affect us; |
• | Development, redevelopment and construction risks could impact our profitability; |
• | Investments through joint ventures and discretionary funds involve risks not present in investments in which we are the sole investor; |
• | Competition could adversely affect our ability to acquire properties; |
• | Our acquisition strategy may not produce the cash flows expected; |
• | Failure to qualify as a REIT could have adverse consequences; |
• | Tax laws have recently changed and may continue to change at any time, and any such legislative or other actions could have a negative effect on us; |
• | Litigation risks could affect our business; |
• | Damage from catastrophic weather and other natural events could result in losses; |
• | A cybersecurity incident and other technology disruptions could negatively impact our business; |
• | We have significant debt, which could have adverse consequences; |
• | Insufficient cash flows could limit our ability to make required payments for debt obligations or pay distributions to shareholders; |
• | Issuances of additional debt may adversely impact our financial condition; |
• | We may be unable to renew, repay, or refinance our outstanding debt; |
• | We may be adversely affected by changes in LIBOR reporting practices or the method in which LIBOR is determined; |
• | Rising interest rates could both increase our borrowing costs, thereby adversely affecting our cash flows and the amounts available for distribution to our shareholders, and decrease our share price, if investors seek higher yields through other investments; |
• | Failure to hedge effectively against interest rates may adversely affect results of operations; |
• | Failure to maintain our current credit ratings could adversely affect our cost of funds, related margins, liquidity, and access to capital markets; |
• | Share ownership limits and our ability to issue additional equity securities may prevent takeovers beneficial to shareholders; |
• | Our share price will fluctuate; and |
• | The form, timing and amount of dividend distributions in future periods may vary and be impacted by economic and other considerations. |
March 31, 2018 | December 31, 2017 | ||||||||||
Apartment Homes | Properties | Apartment Homes | Properties | ||||||||
Operating Properties | |||||||||||
Houston, Texas | 8,434 | 24 | 8,434 | 24 | |||||||
Washington, D.C. Metro | 6,497 | 18 | 6,040 | 17 | |||||||
Dallas, Texas | 5,666 | 14 | 5,666 | 14 | |||||||
Atlanta, Georgia | 4,496 | 14 | 4,496 | 14 | |||||||
Austin, Texas | 3,360 | 10 | 3,360 | 10 | |||||||
Orlando, Florida | 3,295 | 9 | 2,962 | 8 | |||||||
Charlotte, North Carolina | 3,076 | 13 | 3,076 | 13 | |||||||
Raleigh, North Carolina | 3,054 | 8 | 3,054 | 8 | |||||||
Phoenix, Arizona | 2,929 | 10 | 2,929 | 10 | |||||||
Southeast Florida | 2,781 | 8 | 2,781 | 8 | |||||||
Tampa, Florida | 2,736 | 7 | 2,378 | 6 | |||||||
Los Angeles/Orange County, California | 2,658 | 7 | 2,658 | 7 | |||||||
Denver, Colorado | 2,632 | 8 | 2,632 | 8 | |||||||
San Diego/Inland Empire, California | 1,665 | 5 | 1,665 | 5 | |||||||
Corpus Christi, Texas | 902 | 3 | 902 | 3 | |||||||
Total Operating Properties | 54,181 | 158 | 53,033 | 155 | |||||||
Properties Under Construction | |||||||||||
Houston, Texas | 586 | 2 | 586 | 2 | |||||||
Phoenix, Arizona | 441 | 1 | 441 | 1 | |||||||
Washington, D.C. Metro | 365 | 1 | 822 | 2 | |||||||
Denver, Colorado | 233 | 1 | 233 | 1 | |||||||
Charlotte, North Carolina | 28 | 1 | 28 | 1 | |||||||
Total Properties Under Construction | 1,653 | 6 | 2,110 | 7 | |||||||
Total Properties | 55,834 | 164 | 55,143 | 162 | |||||||
Less: Unconsolidated Joint Venture Properties (1) | |||||||||||
Houston, Texas | 2,522 | 8 | 2,522 | 8 | |||||||
Austin, Texas | 1,360 | 4 | 1,360 | 4 | |||||||
Dallas, Texas | 1,250 | 3 | 1,250 | 3 | |||||||
Tampa, Florida | 450 | 1 | 450 | 1 | |||||||
Raleigh, North Carolina | 350 | 1 | 350 | 1 | |||||||
Orlando, Florida | 300 | 1 | 300 | 1 | |||||||
Washington, D.C. Metro | 281 | 1 | 281 | 1 | |||||||
Corpus Christi, Texas | 270 | 1 | 270 | 1 | |||||||
Charlotte, North Carolina | 266 | 1 | 266 | 1 | |||||||
Atlanta, Georgia | 234 | 1 | 234 | 1 | |||||||
Total Unconsolidated Joint Venture Properties | 7,283 | 22 | 7,283 | 22 | |||||||
Total Properties Fully Consolidated | 48,551 | 142 | 47,860 | 140 |
(1) | Refer to Note 7, "Investments in Joint Ventures," in the notes to Condensed Consolidated Financial Statements for further discussion of our joint venture investments. |
($ in millions) Property and Location | Number of Apartment Homes | Cost Incurred (1) | % Leased at 5/1/2018 | Date of Construction Completion | Estimated Date of Stabilization | |||||||
Camden NoMa II | ||||||||||||
Washington, DC | 405 | $ | 107.6 | 78 | % | 2Q17 | 2Q19 | |||||
Camden Shady Grove | ||||||||||||
Rockville, MD | 457 | 113.0 | 70 | % | 1Q18 | 3Q19 | ||||||
Total | 862 | $ | 220.6 |
($ in millions) Property and Location | Number of Apartment Homes | Estimated Cost | Cost Incurred | Included in Properties Under Development | Estimated Date of Construction Completion | Estimated Date of Stabilization | ||||||||||||
Camden McGowen Station (1) | ||||||||||||||||||
Houston, TX | 315 | $ | 90.0 | $ | 78.4 | $ | 65.4 | 3Q18 | 4Q19 | |||||||||
Camden North End I (2) | ||||||||||||||||||
Phoenix, AZ | 441 | 105.0 | 65.7 | 65.6 | 2Q19 | 2Q20 | ||||||||||||
Camden Washingtonian | ||||||||||||||||||
Gaithersburg, MD | 365 | 90.0 | 75.0 | 75.0 | 1Q19 | 4Q19 | ||||||||||||
Camden Grandview II | ||||||||||||||||||
Charlotte, NC | 28 | 21.0 | 13.7 | 13.7 | 4Q18 | 2Q19 | ||||||||||||
Camden RiNo | ||||||||||||||||||
Denver, CO | 233 | 75.0 | 28.2 | 28.2 | 2Q20 | 4Q20 | ||||||||||||
Camden Downtown I | ||||||||||||||||||
Houston, TX | 271 | 132.0 | 23.3 | 23.3 | 3Q20 | 1Q21 | ||||||||||||
Total | 1,653 | $ | 513.0 | $ | 284.3 | $ | 271.2 |
(1) | Property in lease-up was 6% leased at May 1, 2018. |
(2) | Property in lease-up was 9% leased at May 1, 2018. |
($ in millions) Property and Location | Projected Homes | Total Estimated Cost (1) | Cost to Date | |||||||
Camden Buckhead | ||||||||||
Atlanta, GA | 375 | $ | 104.0 | $ | 18.4 | |||||
Camden Atlantic | ||||||||||
Plantation, FL | 269 | 90.0 | 15.8 | |||||||
Camden Arts District | ||||||||||
Los Angeles, CA | 354 | 150.0 | 19.9 | |||||||
Camden Hillcrest | ||||||||||
San Diego, CA | 125 | 75.0 | 25.0 | |||||||
Camden North End II | ||||||||||
Phoenix, AZ | 326 | 73.0 | 12.7 | |||||||
Camden Paces III | ||||||||||
Atlanta, GA | 350 | 100.0 | 14.0 | |||||||
Camden Downtown II | ||||||||||
Houston, TX | 271 | 145.0 | 10.3 | |||||||
Total | 2,070 | $ | 737.0 | $ | 116.1 |
(1) | Represents our estimate of total costs we expect to incur on these projects. However, forward-looking statements are not guarantees of future performance, results, or events. Although we believe these expectations are based upon reasonable assumptions, future events rarely develop exactly as forecast, and estimates routinely require adjustment. |
($ in millions) Location | Acres | Cost to Date | ||||
Phoenix, AZ | 14.0 | $ | 11.1 | |||
Charlotte, NC | 0.2 | 1.5 | ||||
Total | 14.2 | $ | 12.6 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Average monthly property revenue per apartment home | $ | 1,659 | $ | 1,601 | |||
Annualized total property expenses per apartment home | $ | 7,246 | $ | 6,954 | |||
Weighted average number of operating apartment homes owned 100% | 46,353 | 45,710 | |||||
Weighted average occupancy of operating apartment homes owned 100% | 95.2 | % | 94.7 | % |
Three Months Ended March 31, | ||||||||
(in thousands) | 2018 | 2017 | ||||||
Net income | $ | 40,525 | $ | 35,989 | ||||
Less: Fee and asset management income | (1,998 | ) | (1,748 | ) | ||||
Less: Interest and other income | (793 | ) | (634 | ) | ||||
Less: (Income)/loss on deferred compensation plans | 205 | (4,617 | ) | |||||
Plus: Property management expense | 6,639 | 7,027 | ||||||
Plus: Fee and asset management expense | 965 | 884 | ||||||
Plus: General and administrative expense | 12,223 | 12,868 | ||||||
Plus: Interest expense | 20,374 | 22,956 | ||||||
Plus: Depreciation and amortization expense | 70,224 | 63,734 | ||||||
Plus: Expense/(benefit) on deferred compensation plans | (205 | ) | 4,617 | |||||
Plus: Loss on early retirement of debt | — | 323 | ||||||
Less: Equity in income of joint ventures | (1,829 | ) | (1,817 | ) | ||||
Plus: Income tax expense | 388 | 471 | ||||||
Net operating income | $ | 146,718 | $ | 140,053 |
($ in thousands) | Apartment Homes at | Three Months Ended March 31, | Change | ||||||||||||||
3/31/2018 | 2018 | 2017 | $ | % | |||||||||||||
Property revenues: | |||||||||||||||||
Same store communities | 41,968 | $ | 201,475 | $ | 195,044 | $ | 6,431 | 3.3 | % | ||||||||
Non-same store communities | 4,068 | 23,553 | 18,031 | 5,522 | 30.6 | ||||||||||||
Development and lease-up communities | 2,515 | 3,488 | 100 | 3,388 | * | ||||||||||||
Dispositions/other | — | 2,167 | 6,346 | (4,179 | ) | (65.9 | ) | ||||||||||
Total property revenues | 48,551 | $ | 230,683 | $ | 219,521 | $ | 11,162 | 5.1 | % | ||||||||
Property expenses: | |||||||||||||||||
Same store communities | 41,968 | $ | 72,871 | $ | 71,363 | $ | 1,508 | 2.1 | % | ||||||||
Non-same store communities | 4,068 | 8,888 | 6,607 | 2,281 | 34.5 | ||||||||||||
Development and lease-up communities | 2,515 | 1,440 | 58 | 1,382 | * | ||||||||||||
Dispositions/other | — | 766 | 1,440 | (674 | ) | (46.8 | ) | ||||||||||
Total property expenses | 48,551 | $ | 83,965 | $ | 79,468 | $ | 4,497 | 5.7 | % | ||||||||
Property NOI: | |||||||||||||||||
Same store communities | 41,968 | $ | 128,604 | $ | 123,681 | $ | 4,923 | 4.0 | % | ||||||||
Non-same store communities | 4,068 | 14,665 | 11,424 | 3,241 | 28.4 | ||||||||||||
Development and lease-up communities | 2,515 | 2,048 | 42 | 2,006 | * | ||||||||||||
Dispositions/other | — | 1,401 | 4,906 | (3,505 | ) | (71.4 | ) | ||||||||||
Total property NOI | 48,551 | $ | 146,718 | $ | 140,053 | $ | 6,665 | 4.8 | % |
(1) | Same store communities are communities we owned and were stabilized since January 1, 2017, excluding communities under redevelopment and assets held for sale. Non-same store communities are stabilized communities not owned or stabilized since January 1, 2017, including communities under redevelopment and excluding assets held for sale. We define communities under redevelopment as communities with capital expenditures that improve a community's cash flow and competitive position through extensive unit, exterior building, common area, and amenity upgrades. Management believes same store information is useful as it allows both management and investors to determine financial results over a particular period for the same set of communities. Development and lease-up communities are non-stabilized communities we have acquired or developed since January 1, 2017, excluding assets held for sale. Dispositions/other includes those communities disposed of or held for sale which are not classified as discontinued operations, and non-multifamily rental properties and expenses related to land holdings not under active development. |
For the three months ended March 31, 2018 as compared to 2017 | ||||
(in millions) | ||||
Property Revenues: | ||||
Revenues from acquisitions | $ | 4.0 | ||
Revenues from non-same store stabilized properties | 1.8 | |||
Revenues from development and lease-up properties | 3.4 | |||
Other | (0.3 | ) | ||
$ | 8.9 | |||
Property Expenses: | ||||
Expenses from acquisitions | $ | 1.6 | ||
Expenses from non-same store stabilized properties | 0.6 | |||
Expenses from development and lease-up properties | 1.4 | |||
Other | 0.1 | |||
$ | 3.7 | |||
Property NOI: | ||||
NOI from acquisitions | $ | 2.4 | ||
NOI from non-same store stabilized properties | 1.2 | |||
NOI from development and lease-up properties | 2.0 | |||
Other | (0.4 | ) | ||
$ | 5.2 |
($ in thousands) | Three Months Ended March 31, | Change | ||||||||||||
2018 | 2017 | $ | % | |||||||||||
Fee and asset management | $ | 1,998 | $ | 1,748 | $ | 250 | 14.3 | % | ||||||
Interest and other income | 793 | 634 | 159 | 25.1 | ||||||||||
Income (loss) on deferred compensation plans | (205 | ) | 4,617 | (4,822 | ) | (104.4 | ) | |||||||
Total non-property income | $ | 2,586 | $ | 6,999 | $ | (4,413 | ) | (63.1 | )% |
($ in thousands) | Three Months Ended March 31, | Change | ||||||||||||
2018 | 2017 | $ | % | |||||||||||
Property management | $ | 6,639 | $ | 7,027 | $ | (388 | ) | (5.5 | )% | |||||
Fee and asset management | 965 | 884 | 81 | 9.2 | ||||||||||
General and administrative | 12,223 | 12,868 | (645 | ) | (5.0 | ) | ||||||||
Interest | 20,374 | 22,956 | (2,582 | ) | (11.2 | ) | ||||||||
Depreciation and amortization | 70,224 | 63,734 | 6,490 | 10.2 | ||||||||||
Expense (benefit) on deferred compensation plans | (205 | ) | 4,617 | (4,822 | ) | (104.4 | ) | |||||||
Total other expenses | $ | 110,220 | $ | 112,086 | $ | (1,866 | ) | (1.7 | )% |
Three Months Ended March 31, | Change | |||||||||||||
($ in thousands) | 2018 | 2017 | $ | % | ||||||||||
Loss on early retirement of debt | $ | — | $ | (323 | ) | $ | 323 | (100.0 | )% | |||||
Equity in income of joint ventures | $ | 1,829 | $ | 1,817 | $ | 12 | 0.7 | % | ||||||
Income tax expense | $ | (388 | ) | $ | (471 | ) | $ | 83 | 17.6 | % |
Three Months Ended March 31, | |||||||
($ in thousands) | 2018 | 2017 | |||||
Funds from operations | |||||||
Net income attributable to common shareholders | $ | 39,395 | $ | 34,861 | |||
Real estate depreciation and amortization | 68,595 | 62,153 | |||||
Adjustments for unconsolidated joint ventures | 2,247 | 2,213 | |||||
Income allocated to non-controlling interests | 1,130 | 1,128 | |||||
Funds from operations | $ | 111,367 | $ | 100,355 | |||
Less: recurring capitalized expenditures | (9,999 | ) | (9,694 | ) | |||
Adjusted funds from operations | $ | 101,368 | $ | 90,661 | |||
Weighted average shares – basic | 95,067 | 89,925 | |||||
Incremental shares issuable from assumed conversion of: | |||||||
Common share options and awards granted | 174 | 218 | |||||
Common units | 1,883 | 1,886 | |||||
Weighted average shares – diluted | 97,124 | 92,029 |
• | extending and sequencing the maturity dates of our debt where practicable; |
• | managing interest rate exposure using what management believes to be prudent levels of fixed and floating rate debt; |
• | maintaining what management believes to be conservative coverage ratios; and |
• | using what management believes to be a prudent combination of debt and equity. |
• | normal recurring operating expenses; |
• | current debt service requirements; |
• | recurring and non-recurring capital expenditures; |
• | reposition expenditures; |
• | funding of property developments, redevelopments, acquisitions, and joint venture investments; and |
• | the minimum dividend payments required to maintain our REIT qualification under the Code. |
Three Months Ended March 31, | ||||||||
(in millions) | 2018 | 2017 | ||||||
Expenditures for new development, including land | $ | 40.8 | $ | 38.3 | ||||
Capitalized interest, real estate taxes, and other capitalized indirect costs | 6.4 | 6.7 | ||||||
Redevelopment expenditures | 3.2 | — | ||||||
Reposition expenditures | 9.8 | 6.0 | ||||||
Capital expenditures | 11.6 | 11.8 | ||||||
Total | $ | 71.8 | $ | 62.8 |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Total Number of Shares Repurchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program (1) | |||||||||||
Month ended January 31, 2018 | — | $ | — | — | $ | 269,768,097 | ||||||||
Month ended February 28, 2018 | — | — | — | 269,768,097 | ||||||||||
Month ended March 31, 2018 | 3,222 | 78.72 | 3,222 | 269,508,383 | ||||||||||
Total | 3,222 | $ | 78.72 | 3,222 |
Item 3. | Defaults Upon Senior Securities |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Item 6. | Exhibits |
(a) Exhibits | ||
*31.1 | Certification pursuant to Rule 13a-14(a) of Chief Executive Officer dated May 4, 2018 | |
*31.2 | Certification pursuant to Rule 13a-14(a) of Chief Financial Officer dated May 4, 2018 | |
*32.1 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes – Oxley Act of 2002 | |
*101.INS | XBRL Instance Document | |
*101.SCH | XBRL Taxonomy Extension Schema Document | |
*101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
*101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
*101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
*101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
* | Filed herewith. |
CAMDEN PROPERTY TRUST | ||
/s/ Michael P. Gallagher | May 4, 2018 | |
Michael P. Gallagher | Date | |
Senior Vice President – Chief Accounting Officer |
Exhibit | Description of Exhibits | |
*31.1 | Certification pursuant to Rule 13a-14(a) of Chief Executive Officer dated May 4, 2018 | |
*31.2 | Certification pursuant to Rule 13a-14(a) of Chief Financial Officer dated May 4, 2018 | |
*32.1 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes – Oxley Act of 2002 | |
*101.INS | XBRL Instance Document | |
*101.SCH | XBRL Taxonomy Extension Schema Document | |
*101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
*101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
*101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
*101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
* | Filed herewith. |
1. | I have reviewed this quarterly report on Form 10-Q of Camden Property Trust; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(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. |
Date: May 4, 2018 | /s/ Richard J. Campo |
Richard J. Campo | |
Chairman of the Board of Trust Managers and | |
Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Camden Property Trust; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(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. |
Date: May 4, 2018 | /s/ Alexander J. Jessett |
Alexander J. Jessett | |
Executive Vice President-Finance, | |
Chief Financial Officer and Treasurer |
1. | The Quarterly Report on Form 10-Q of the Company for the period ended March 31, 2018 (“the Report”) fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Annual Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Richard J. Campo | |
Richard J. Campo | |
Chairman of the Board of Trust Managers and | |
Chief Executive Officer | |
/s/ Alexander J. Jessett | |
Alexander J. Jessett | |
Executive Vice President-Finance, | |
Chief Financial Officer and Treasurer |
Document And Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Apr. 27, 2018 |
|
Document And Entity Information [Abstract] | ||
Entity Registrant Name | CAMDEN PROPERTY TRUST | |
Entity Central Index Key | 0000906345 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 92,774,432 |
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common shares, par value, per share | $ 0.01 | $ 0.01 |
Common shares, authorized | 175,000 | 175,000 |
Common shares, issued | 105,493 | 105,489 |
Common shares, outstanding | 102,640 | 102,769 |
Treasury shares, at cost | 9,865 | 10,073 |
Condensed Consolidated Statements Of Equity - USD ($) $ in Thousands |
Total |
Common shares of beneficial interest |
Additional paid-in capital |
Distributions in excess of net income |
Treasury shares, at cost |
Accumulated other comprehensive (loss)/income |
Non-controlling interests |
---|---|---|---|---|---|---|---|
Beginning balance at Dec. 31, 2016 | $ 3,095,553 | $ 978 | $ 3,678,277 | $ (289,180) | $ (373,339) | $ (1,863) | $ 80,680 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income | 35,989 | 34,861 | 1,128 | ||||
Other comprehensive income | 34 | 34 | |||||
Net share awards | 7,884 | 468 | 7,416 | ||||
Employee share purchase plan | 78 | 78 | |||||
Common share options exercised | 77 | 77 | |||||
Change in classification of deferred compensation plan | (4,234) | (4,234) | |||||
Change in redemption value of non-qualified share awards | 3,925 | 3,925 | |||||
Diversification of share awards within deferred compensation plan | 1,642 | 954 | 688 | ||||
Conversion of operating partnership units | 0 | 117 | (117) | ||||
Cash distributions declared to equity holders | (69,349) | (67,936) | (1,413) | ||||
Ending balance at Mar. 31, 2017 | 3,071,599 | 978 | 3,675,737 | (317,642) | (365,923) | (1,829) | 80,278 |
Beginning balance at Dec. 31, 2016 | 3,095,553 | 978 | 3,678,277 | (289,180) | (373,339) | (1,863) | 80,680 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Diversification of share awards within deferred compensation plan | 23,200 | ||||||
Ending balance at Dec. 31, 2017 | 3,484,714 | 1,028 | 4,137,161 | (368,703) | (364,066) | (57) | 79,351 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income | 40,525 | 39,395 | 1,130 | ||||
Other comprehensive income | 3,636 | 3,636 | |||||
Net share awards | 7,677 | 45 | 7,632 | ||||
Employee share purchase plan | 74 | 74 | |||||
Common share options exercised | 41 | 41 | |||||
Change in classification of deferred compensation plan | (5,250) | (5,250) | |||||
Change in redemption value of non-qualified share awards | 6,306 | 6,306 | |||||
Common shares repurchased | (253) | (253) | |||||
Cash distributions declared to equity holders | (75,044) | (73,594) | (1,450) | ||||
Other | (17) | (2) | (15) | ||||
Ending balance at Mar. 31, 2018 | $ 3,462,409 | $ 1,026 | $ 4,132,056 | $ (396,596) | $ (356,687) | $ 3,579 | $ 79,031 |
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|||
Cash flows from operating activities | ||||
Net income | $ 40,525 | $ 35,989 | ||
Adjustments to reconcile net income to net cash from operating activities: | ||||
Depreciation and amortization | 70,224 | 63,734 | ||
Loss on early retirement of debt | 0 | 323 | ||
Distributions of income from joint ventures | 1,815 | 1,720 | ||
Equity in income of joint ventures | [1] | (1,829) | (1,817) | |
Share-based compensation | 4,183 | 4,449 | ||
Net change in operating accounts and other | (27,764) | (31,413) | ||
Net cash from operating activities | 87,154 | 72,985 | ||
Cash flows from investing activities | ||||
Development and capital improvements | (71,828) | (62,783) | ||
Acquisition of operating property | (201,899) | 0 | ||
Maturities of short-term investments | 0 | 100,000 | ||
Other | (1,830) | (2,442) | ||
Net cash from investing activities | (275,557) | 34,775 | ||
Cash flows from financing activities | ||||
Repayment of notes payable | (358) | (31,214) | ||
Distributions to common shareholders and non-controlling interests | (72,943) | (69,161) | ||
Other | 336 | 493 | ||
Net cash from financing activities | (72,965) | (99,882) | ||
Net increase (decrease) in cash, cash equivalents, and restricted cash | (261,368) | 7,878 | ||
Total cash, cash equivalents, and restricted cash, beginning of year | 377,805 | 245,826 | ||
Total cash, cash equivalents, and restricted cash, end of period | 116,437 | 253,704 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||||
Total cash, cash equivalents, and restricted cash | 377,805 | 245,826 | ||
Supplemental information | ||||
Cash paid for interest, net of interest capitalized | 16,701 | 15,767 | ||
Supplemental schedule of noncash investing and financing activities | ||||
Distributions declared but not paid | 75,083 | 69,236 | ||
Value of shares issued under benefit plans, net of cancellations | 16,471 | 16,934 | ||
Accrual associated with construction and capital expenditures | $ 23,204 | $ 16,685 | ||
|
Description of Business |
3 Months Ended |
---|---|
Mar. 31, 2018 | |
Description of Business [Abstract] | |
Description of Business | 1. Description of Business Business. Formed on May 25, 1993, Camden Property Trust, a Texas real estate investment trust ("REIT"), is primarily engaged in the ownership, management, development, redevelopment, acquisition, and construction of multifamily apartment communities. Our multifamily apartment communities are referred to as "communities," "multifamily communities," "properties," or "multifamily properties" in the following discussion. As of March 31, 2018, we owned interests in, operated, or were developing 164 multifamily properties comprised of 55,834 apartment homes across the United States. Of the 164 properties, six properties were under construction as of March 31, 2018, and will consist of a total of 1,653 apartment homes when completed. We also own land holdings which we may develop into multifamily communities in the future. |
Summary of Significant Accounting Policies and Recent Accounting Pronouncements |
3 Months Ended | ||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||
Summary of Significant Accounting Policies and Recent Accounting Pronouncements | 2. Summary of Significant Accounting Policies and Recent Accounting Pronouncements Principles of Consolidation. Our condensed consolidated financial statements include our accounts and the accounts of other subsidiaries and joint ventures (including partnerships and limited liability companies) over which we have control. All intercompany transactions, balances, and profits have been eliminated in consolidation. Investments acquired or created are evaluated based on the accounting guidance relating to variable interest entities ("VIEs"), which requires the consolidation of VIEs in which we are considered to be the primary beneficiary. If the investment is determined not to be a VIE, then the investment is evaluated for consolidation primarily using a voting interest model. In determining if we have a controlling financial interest, we consider factors such as ownership interests, authority to make decisions, kick-out rights and participating rights. At March 31, 2018, two of our consolidated operating partnerships are VIEs, of which we held between 92% and 94% of the outstanding common limited partnership units and the sole 1% general partnership interest of each consolidated operating partnership. As we are considered the primary beneficiary, we continue to consolidate these operating partnerships. Interim Financial Reporting. We have prepared these unaudited financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial statements and the applicable rules and regulations of the Securities and Exchange Commission ("SEC"). Accordingly, these statements do not include all information and footnote disclosures required for annual statements. While we believe the disclosures presented are adequate for interim reporting, these interim unaudited financial statements should be read in conjunction with the audited financial statements and notes included in our 2017 Annual Report on Form 10-K. Acquisitions of Real Estate. Upon acquisition of real estate, we determine the fair value of tangible and intangible assets, which includes land, buildings (as-if-vacant), furniture and fixtures, the value of in-place leases, including above and below market leases, and acquired liabilities. In estimating these values, we apply methods similar to those used by independent appraisers of income-producing property. We generally believe acquisitions of operating properties are asset acquisitions, which include the capitalization of transaction costs. Estimates of fair value of acquired debt are based upon interest rates available for the issuance of debt with similar terms and remaining maturities. Depreciation is computed on a straight-line basis over the remaining useful lives of the related tangible assets. The value of in-place leases and above or below market leases is amortized over the estimated average remaining life of leases in place at the time of acquisition; the net carrying value of in-place leases and above market leases are included in other assets, net and the net carrying value of below market leases is included in other liabilities in our condensed consolidated balance sheets. During the three months ended March 31, 2018, we recognized amortization expense related to in-place leases of approximately $1.9 million and did not recognize any amortization expense related to in-place leases for the three months ended March 31, 2017. The weighted average amortization period for in-place leases was approximately seven months for the three months ended March 31, 2018. Asset Impairment. Long-lived assets are reviewed for impairment annually or whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Impairment may exist if estimated future undiscounted cash flows associated with long-lived assets are not sufficient to recover the carrying value of such assets. We consider projected future undiscounted cash flows, trends, strategic decisions regarding future development plans, and other factors in our assessment of whether impairment conditions exist. While we believe our estimates of future cash flows are reasonable, different assumptions regarding a number of factors, including, but not limited to, market rents, economic conditions, and occupancies, could significantly affect these estimates. In estimating fair value, management uses appraisals, management estimates, and discounted cash flow calculations which utilize inputs from a marketplace participant's perspective. When impairment exists, the long-lived asset is adjusted to its fair value. In addition, we evaluate our equity investments in joint ventures and if we believe there is an other than temporary decline in market value of our investment below our carrying value, we will record an impairment charge. We did not record any impairment charges for the three months ended March 31, 2018 or 2017. The value of our properties under development depends on market conditions, including estimates of the project start date as well as estimates of demand for multifamily communities. We have reviewed market trends and other marketplace information and have incorporated this information as well as our current outlook into the assumptions we use in our impairment analyses. Due to the judgment and assumptions applied in the impairment analyses, it is possible actual results could differ substantially from those estimated. We believe the carrying value of our operating real estate assets, properties under development, and land is currently recoverable. However, if market conditions deteriorate or if changes in our development strategy significantly affect any key assumptions used in our fair value estimates, we may need to take material charges in future periods for impairments related to existing assets. Any such material non-cash charges could have an adverse effect on our consolidated financial position and results of operations. Cost Capitalization. Real estate assets are carried at cost plus capitalized carrying charges. Carrying charges are primarily interest and real estate taxes which are capitalized as part of properties under development. Capitalized interest is generally based on the weighted average interest rate of our unsecured debt. Expenditures directly related to the development and improvement of real estate assets are capitalized at cost as land and buildings and improvements. Indirect development costs, including salaries and benefits and other related costs directly attributable to the development of properties, are also capitalized. We begin capitalizing development, construction, and carrying costs when the development of the future real estate asset is probable and certain activities necessary to prepare the underlying real estate for its intended use have been initiated. All construction and carrying costs are capitalized and reported in the balance sheet as properties under development until the apartment homes are substantially completed. As apartment homes within development properties are completed, the total capitalized development cost of each apartment home is transferred from properties under development including land to buildings and improvements. As discussed above, carrying charges are principally interest and real estate taxes capitalized as part of properties under development. Capitalized interest was approximately $3.7 million and $4.4 million for the three months ended March 31, 2018 and 2017, respectively. Capitalized real estate taxes were approximately $0.8 million and $0.6 million for the three months ended March 31, 2018 and 2017, respectively. Depreciation and amortization is computed over the expected useful lives of depreciable property on a straight-line basis with lives generally as follows:
Derivative Financial Instruments. Derivative financial instruments are recorded in the consolidated balance sheets at fair value and presented on a gross basis for financial reporting purposes even when those instruments are subject to master netting arrangements and may otherwise qualify for net presentation. Accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether we have elected to designate a derivative in a hedging relationship and apply hedge accounting, and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows or other types of forecasted transactions are cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes attributable to the earnings effect of the hedged transactions. We may enter into derivative contracts which are intended to economically hedge certain of our risks, for which hedge accounting does not apply or we elect not to apply hedge accounting. Fair Value. For financial assets and liabilities recorded at fair value on a recurring or non-recurring basis, fair value is the price we would expect to receive to sell an asset, or pay to transfer a liability, in an orderly transaction with a market participant at the measurement date under current market conditions. In the absence of such data, fair value is estimated using internal information consistent with what market participants would use in a hypothetical transaction. In determining fair value, observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions; preference is given to observable inputs. These two types of inputs create the following fair value hierarchy:
Recurring Fair Value Measurements. The following describes the valuation methodologies we use to measure different financial instruments at fair value on a recurring basis: Deferred Compensation Plan Investments. The estimated fair values of investment securities classified as deferred compensation plan investments are based on quoted market prices utilizing public information for the same transactions. Our deferred compensation plan investments are recorded in other assets in our consolidated balance sheets. The inputs associated with the valuation of our recurring deferred compensation plan investments are included in Level 1 of the fair value hierarchy. Derivative Financial Instruments. The estimated fair values of derivative financial instruments are valued using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and volatility. The fair values of interest rate swaps and caps are estimated using the market-standard methodology of netting the discounted fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on an expectation of interest rates (forward curves) derived from observable market interest rate curves. In addition, credit valuation adjustments, which consider the impact of any credit enhancements to the contracts, are incorporated in the fair values to account for potential nonperformance risk, including our own nonperformance risk and the respective counterparty’s nonperformance risk. The fair value of interest rate caps is determined using the market-standard methodology of discounting the future expected cash receipts which would occur if variable interest rates rise above the strike rate of the caps. The variable interest rates used in the calculation of projected receipts on the cap are based on an expectation of future interest rates derived from observed market interest rate curves and volatilities. Although we have determined the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default. However, we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and have determined the credit valuation adjustments are not significant to the overall valuation of our derivatives. As a result, we have determined our derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. Non-Recurring Fair Value Measurements. Certain assets are measured at fair value on a non-recurring basis. These assets are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances. These assets primarily include long-lived assets which are recorded at fair value if they are impaired using the fair value methodologies used to measure long-lived assets described above at "Asset Impairment." Non-recurring fair value disclosures are not provided for impairments on assets disposed during the period because they are no longer owned by us. The inputs associated with the valuation of long-lived assets are generally included in Level 3 of the fair value hierarchy, unless a quoted price for a similar long-lived asset in an active market exists, at which time they are included in Level 2 of the fair value hierarchy. Financial Instrument Fair Value Disclosures. As of March 31, 2018 and December 31, 2017, the carrying values of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and distributions payable represent fair value because of the short-term nature of these instruments. The carrying value of restricted cash approximates its fair value based on the nature of our assessment of the ability to recover these amounts. The carrying values of our notes receivable also approximate their fair values, which are based on certain factors, such as market interest rates, terms of the note and credit worthiness of the borrower. These financial instruments utilize Level 3 inputs. In calculating the fair value of our notes payable, interest rate and spread assumptions reflect current credit worthiness and market conditions available for the issuance of notes payable with similar terms and remaining maturities. These financial instruments utilize Level 2 inputs. Note Receivable. We have one note receivable included in other assets, net, in our condensed consolidated balance sheets, relating to a real estate secured loan to an unaffiliated third party. This note receivable matures on October 1, 2030. At both March 31, 2018 and December 31, 2017, the outstanding note receivable balance was approximately $18.8 million. The interest rate on the note receivable was approximately 4.0% for each of the three months ended March 31, 2018 and 2017. Interest is recognized over the life of the note and included in interest and other income in our condensed consolidated statements of income and comprehensive income. We consider a note receivable to be impaired if it is probable we will not collect all contractually due principal and interest. We do not accrue interest when a note is considered impaired and an allowance is recorded for any principal and previously accrued interest which is not believed to be collectible. Recent Accounting Pronouncements. In February 2017, the Financial Accounting Standards Board ("FASB") issued ASU 2017-05, "Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets." ASU 2017-05 clarifies the definition of an in-substance nonfinancial asset and changes the accounting for partial sales of nonfinancial assets to be more consistent with the accounting for a sale of a business pursuant to ASU 2017-01. We adopted ASU 2017-05 effective January 1, 2018, along with our adoption of ASU 2014-09 (described below), and it did not have a material impact on our consolidated financial statements. We believe most of our future contributions of nonfinancial assets to our joint ventures, if any, will result in the recognition of a full gain or loss as if we sold 100% of the nonfinancial asset and we will also measure our retained interest at fair value. In May 2014, the FASB issued ASU 2014-09 "Revenue from Contracts with Customers." ASU 2014-09 prescribes a single, common revenue standard to replace most existing revenue recognition guidance in GAAP, including most industry-specific requirements. The standard outlines a five-step model whereby revenue is recognized as performance obligations within a contract are satisfied. Several ASUs intended to promote a more consistent interpretation and application of the principles outlined in the standard have been issued since the issuance of ASU 2014-09 which modify certain sections of the new revenue recognition standard. We adopted ASU 2014-09 and all related amendments effective January 1, 2018 using the modified retrospective with cumulative effect transition method; this method requires us to recognize the cumulative effect of initially applying the new revenue standard as an adjustment, if any, to the opening balance of retained earnings, which did not have any impact upon adoption. See Note 3, "Revenues," for additional disclosures required by the ASU. In February 2016, the FASB issued ASU 2016-02, "Leases." ASU 2016-02 supersedes the current accounting for leases; retains two distinct types of leases, finance and operating; and (i) requires lessees to record a right of use asset and a related liability for the rights and obligations associated with a lease, regardless of lease classification, and recognize lease expense in a manner similar to current accounting (ii) eliminates most real estate specific lease provisions, and (iii) aligns many of the underlying lessor model principles with those in the new revenue standard. We anticipate adopting ASU 2016-02 as of January 1, 2019 and will be required to adopt ASU 2016-02 using the modified retrospective approach, which requires us to record leases existing as of or are entered into after the beginning of the earliest comparative period presented in the financial statements under the new lease standard. Based on our assessments, most of our operating lease commitments will be subject to the new guidance and recognized as operating lease liabilities and right-of-use assets upon adoption. We do not believe our adoption of the new leasing standard will have a material increase in the assets and liabilities on our consolidated balance sheets, and believe there will not be a material impact to our consolidated statements of income and comprehensive income. The ultimate impact, however, will depend on our lease portfolio as of the adoption date. In August 2016, the FASB issued ASU 2016-15, "Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force)." ASU 2016-15 clarifies how eight specific cash receipts and cash payments are to be presented and classified on the statement of cash flows, including debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments, contingent consideration made after a business combination, distributions received from equity method investees, beneficial interests in securitization transactions, and separately identifiable cash flows and application of predominance principle. We adopted ASU 2016-15 as of January 1, 2018 and it did not have a material effect on our consolidated statements of cash flows upon adoption. |
Revenues |
3 Months Ended |
---|---|
Mar. 31, 2018 | |
Revenues [Abstract] | |
Revenues | 3. Revenues On January 1, 2018, we adopted ASU 2014-09 and in accordance with ASU 2014-09, elected to apply the new revenue standard to those contracts which were not completed as of January 1, 2018. We also elected to omit disclosing the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the invoiced amount directly corresponds to the value transferred to the customer as provided for in the practical expedients. Our adoption of ASU 2014-09 did not have a material impact upon our consolidated financial statements as the majority of our revenues are derived from real estate lease contracts which are scoped out of ASU 2014-09. Our presentation of revenue within our condensed consolidated statements of income and comprehensive income is separated into its component parts by the nature and timing of the revenue streams. Our revenue within the scope of this new revenue standard is recognized when the services are transferred to our customers for an amount which reflects the consideration we expect to receive in exchange for those services rendered and include the following: Other Property Revenues. The items within other property revenues relate to non-lease components within a lease contract and primarily consist of utility rebillings which are usually recognized over time and other transactional fees primarily recognized at a point-in-time. These fees are charged to our residents and recognized monthly as the performance obligation is satisfied. Upon our adoption of ASU 2014-09, we are now presenting certain revenue items, historically included as a component of other property revenues, as rental revenues due to the nature and timing of revenue recognition for these items being more closely aligned to a lease. This new presentation has been applied prospectively as this reclassification will not have an impact upon total property revenues or the opening balance of retained earnings. Approximately $5.6 million of rental revenue is related to this presentation for the three months ended March 31, 2018. Had ASU 2014-09 been effective as of January 1, 2017, we would have reclassified approximately $5.3 million from other property revenues to rental revenue for the three months ended March 31, 2017. Fee and Asset Management Income. Management fee income primarily consists of fees charged to our unconsolidated joint ventures for managing the joint venture, and the development, redevelopment and capital expenditures of their operating communities. While the individual activities related to these fees may vary, the services provided are substantially similar, have the same pattern of transfer, and are considered to be individual performance obligations composed of a series of distinct services, recognized monthly as earned. We also generate construction fees for construction management and general contracting services provided to third-party owners of multifamily, commercial, and retail properties. These fees are recognized as we satisfy our single performance obligation over time based on a percentage-of-completion of cost basis which we believe is an accurate depiction of the transfer of control to our customers. For these contracts, significant judgment is used to estimate the cost plus margin for the project fee and our profitability on those contracts is dependent on the ability to accurately predict such factors. Contract Balances. We record third-party construction receivables for amounts where we have unconditional rights to payment but not yet received and liabilities for amounts incurred but not yet paid. For the three months ended March 31, 2018, these contract receivable and liability balances were immaterial. |
Per Share Data |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per Share Data | 4. Per Share Data Basic earnings per share is computed using net income attributable to common shareholders and the weighted average number of common shares outstanding. Diluted earnings per share reflects common shares issuable from the assumed conversion of common share options and share awards granted and units convertible into common shares. Only those items having a dilutive impact on our basic earnings per share are included in diluted earnings per share. Our unvested share-based awards are considered participating securities and are reflected in the calculation of basic and diluted earnings per share using the two-class method. The number of common share equivalent securities excluded from the diluted earnings per share calculation was approximately 1.4 million and 1.6 million for the three months ended March 31, 2018 and 2017, respectively. These securities, which include common share options and share awards granted and units convertible into common shares, were excluded from the diluted earnings per share calculations as they are anti-dilutive. The following table presents information necessary to calculate basic and diluted earnings per share for the periods indicated:
|
Common Shares |
3 Months Ended |
---|---|
Mar. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Common Shares [Text Block] | 5. Common Shares In May 2017, we created an at-the market ("ATM") share offering program through which we can, but have no obligation to, sell common shares having an aggregate offering price of up to $315.3 million (the "2017 ATM program"), in amounts and at times as we determine, into the existing trading market at current market prices as well as through negotiated transactions. Actual sales from time to time may depend on a variety of factors including, among others, market conditions, the trading price of our common shares, and determinations by management of the appropriate sources of funding for us. The proceeds from the sale of our common shares under the 2017 ATM program are intended to be used for general corporate purposes, which may include reducing future borrowings under our $600 million unsecured line of credit, the repayment of other indebtedness, the redemption or other repurchase of outstanding debt or equity securities, funding for development activities, and financing for acquisitions. For the three months ended March 31, 2018, and through the date of this filing, we did not sell any shares under the 2017 ATM program. As of the date of this filing, we had common shares having an aggregate offering price of up to $312.8 million remaining available for sale under the 2017 ATM program. In November 2014, we created an ATM share offering program through which we could, but have no obligation to, sell common shares having an aggregate offering price of up to $331.3 million (the "2014 ATM program"). Concurrently with the creation of the 2017 ATM program, we terminated the 2014 ATM program and rolled the $315.3 million remaining available for sale into the 2017 ATM program. Upon termination, no further common shares were available for sale under the 2014 ATM program. We have a repurchase plan approved by our Board of Trust Managers which allows for the repurchase of up to $500 million of our common equity securities through open-market purchases, block purchases, and privately negotiated transactions. During the three months ended March 31, 2018, we repurchased 3,222 common shares for approximately $0.3 million. As of the date of this filing, the remaining dollar value of our common equity securities authorized to be repurchased under this program was approximately $269.5 million. There were no repurchases during the three months ended March 31, 2017. We currently have an automatic shelf registration statement which allows us to offer common shares, preferred shares, debt securities, or warrants; our Amended and Restated Declaration of Trust provides we may issue up to 185 million shares of beneficial interest, consisting of 175 million common shares and 10 million preferred shares. At March 31, 2018, we had approximately 92.8 million common shares outstanding, net of treasury shares and shares held in our deferred compensation arrangements, and no preferred shares outstanding. |
Acquisitions, Dispositions, Discontinued Operations and Assets Held for Sale |
3 Months Ended |
---|---|
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Acquisitions, Dispositions, Assets Held For Sale and Impairment [Text Block] | 6. Acquisitions Asset Acquisition of Operating Properties. In January 2018, we acquired one operating property comprised of 358 apartment homes located in St. Petersburg, Florida, for approximately $126.9 million. In February 2018, we acquired one operating property comprised of 333 apartment homes located in Orlando, Florida, for approximately $81.4 million. We did not acquire any operating properties during the three months ended March 31, 2017. Acquisition of Land. In April 2018, we acquired approximately 1.8 acres of land in Orlando, Florida for approximately $11.4 million for the future development of approximately 360 wholly-owned apartment homes. We did not acquire any land during the three months ended March 31, 2018 or 2017. |
Investments in Joint Ventures |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in Joint Ventures | 7. Investments in Joint Ventures As of March 31, 2018, our equity investments in unconsolidated joint ventures, which are accounted for utilizing the equity method of accounting, consisted of three investment funds (collectively, the "Funds"), with our ownership percentages ranging from 20.0% to 31.3%. We provide property and asset management and other services to the Funds which own operating properties and we may also provide construction and development services to the Funds which own properties under development. One of the Funds, in which we have a 20.0% ownership interest, did not own any properties for any periods presented. We have a 31.3% ownership interest in each of the two other Funds. The following table summarizes the combined balance sheets and statements of income data for the Funds as of and for the periods presented:
The Funds have been funded in part with secured third-party debt and, as of March 31, 2018, we had no outstanding guarantees related to debt of the Funds. We may earn fees for property and asset management, construction, development, and other services related to the Funds and may earn a promoted equity interest if certain thresholds are met. We eliminate fee income for services provided to the Funds to the extent of our ownership. Fees earned for these services, net of eliminations, were approximately $1.4 million and $1.3 million for the three months ended March 31, 2018 and 2017, respectively. |
Notes Payable |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Payable [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Payable | 8. Notes Payable The following is a summary of our indebtedness:
We have a $600 million unsecured credit facility which matures in August 2019, with two six-month options to extend the maturity date at our election to August 2020. Additionally, we have the option to further increase our credit facility to $900 million by either adding additional banks to the facility or obtaining the agreement of the existing banks to increase their commitments. The interest rate on our credit facility is based upon the London Interbank Offered Rate ("LIBOR") plus a margin which is subject to change as our credit ratings change. Advances under our credit facility may be priced at the scheduled rates, or we may enter into bid rate loans with participating banks at rates below the scheduled rates. These bid rate loans have terms of 180 days or less and may not exceed the lesser of $300 million or the remaining amount available under our credit facility. Our credit facility is subject to customary financial covenants and limitations. We believe we are in compliance with all such financial covenants and limitations on the date of this filing. Our credit facility provides us with the ability to issue up to $50 million in letters of credit. While our issuance of letters of credit does not increase our borrowings outstanding under our credit facility, it does reduce the amount available. At March 31, 2018, we had no balances outstanding on our $600 million credit facility and we had outstanding letters of credit totaling approximately $13.1 million, leaving approximately $586.9 million available under our credit facility. In May 2017, we entered into a $45.0 million unsecured short-term borrowing facility which matures in May 2018. The interest rate is based on LIBOR plus 0.95%. At March 31, 2018, we had no balances outstanding on this unsecured short-term borrowing facility, leaving $45.0 million available under this facility. We had outstanding floating rate debt of approximately $175.0 million at both March 31, 2018 and 2017. The weighted average interest rate on this debt was approximately 2.2% and 1.4% for the three months ended March 31, 2018 and 2017, respectively. Our indebtedness had a weighted average maturity of approximately 4.0 years at March 31, 2018. The table below is a summary of the maturity dates of our outstanding debt and principal amortizations, and the weighted average interest rates on such debt, at March 31, 2018:
|
Derivative and Hedging Activities Derivative and Hedging Activities (Notes) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 9. Derivative Financial Instruments and Hedging Activities Risk Management Objective of Using Derivatives. We are exposed to certain risks arising from both our business operations and economic conditions. We principally manage our exposures to a wide variety of business and operational risks through management of our core business activities. We manage economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of our debt funding and the use of derivative financial instruments. Specifically, we may enter into derivative financial instruments to manage exposures arising from business activities resulting in differences in the amount, timing, and duration of our known or expected cash payments principally related to our borrowings. See Note 2, "Summary of Significant Accounting Policies and Recent Accounting Pronouncements" for a further discussion of derivative financial instrument. Cash Flow Hedges of Interest Rate Risk. Our objectives in using interest rate derivatives are to add stability to interest expense and to manage our exposure to interest rate movements. To accomplish these objectives, we primarily use interest rate swaps and caps as part of our interest rate risk management strategy. Interest rate swaps involve the receipt of variable rate amounts from a counterparty in exchange for us making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Interest rate caps involve the receipt of variable rate amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an upfront premium. Designated Hedges. The gain or loss on derivatives designated and qualifying as cash flow hedges is reported as a component of other comprehensive income or loss, and subsequently reclassified into earnings in the period the hedged forecasted transaction affects earnings and is presented in the same line item as the earnings effect of the hedged item. In February 2018, we entered into two forward interest rate swap agreements with an aggregate notional amount of $200.0 million that become effective October 31, 2018 to hedge a portion of an anticipated future fixed rate debt issuance. At March 31, 2018, we had a total of five forward interest rate swaps with a total notional value of $400.0 million to hedge a portion of future fixed rate debt issuances. As of March 31, 2018, the amount we expect to be reclassified into earnings in the next 12 months as a decrease to interest expense is approximately $0.2 million. At March 31, 2017, we did not have any designated hedges outstanding. See Note 14, "Fair Value Measurements" for a further discussion of the fair value of our derivative financial instrument. Non-Designated Hedges. Derivatives are not entered into for speculative purposes and are used to manage our exposure to interest rate movements and other identified risks. Our non-designated hedges are either specifically non-designated by management or do not meet strict hedge accounting requirements. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings in interest and other income. At March 31, 2018, we did not have any non-designated hedges outstanding. At March 31, 2017, we had one outstanding interest rate cap with a notional amount of $175.0 million which was not designated as a hedge of interest rate risk. The fair value changes for this derivative was not material. The table below presents the fair value of our derivative financial instruments as well as their classification in the consolidated balance sheets at March 31, 2018 and December 31, 2017:
The table below presents the effect of our derivative financial instruments in the consolidated statements of income and comprehensive income for the three months ended March 31, 2018:
Credit-Risk-Related Contingent Features. Derivative financial investments expose us to credit risk in the event of non-performance by the counterparties under the terms of the interest rate hedge agreements. The Company has an agreement with a derivative counterparty that contains a provision where the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company's default on the indebtedness. Taking into consideration the derivatives subject to master netting arrangements, we did not have any derivatives in a net liability position as of March 31, 2018. |
Share-based Compensation and Non-Qualified Deferred Compensation Plan |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation and Non-Qualified Deferred Compensation Plan | 10. Share-Based Compensation and Non-Qualified Deferred Compensation Plan Incentive Compensation. During the second quarter of 2011, our Board of Trust Managers adopted, and our shareholders approved, the 2011 Share Incentive Plan of Camden Property Trust (as amended, the "2011 Share Plan"). Under the 2011 Share Plan, we may issue up to a total of approximately 9.1 million fungible units (the "Fungible Pool Limit"), which is comprised of approximately 5.8 million new fungible units plus approximately 3.3 million fungible units previously available for issuance under the 2002 Share Incentive Plan of Camden Property Trust based on a 3.45 to 1.0 fungible unit to full value award conversion ratio. Fungible units represent the baseline for the number of shares available for issuance under the 2011 Share Plan. Different types of awards are counted differently against the Fungible Pool Limit, as follows:
At March 31, 2018, approximately 2.1 million fungible units were available under the 2011 Share Plan, which results in approximately 0.6 million common shares which may be granted pursuant to full value awards based on the 3.45 to 1.0 fungible unit to full value award conversion ratio. Awards which may be granted under the 2011 Share Plan include incentive share options, non-qualified share options (which may be granted separately or in connection with an option), share awards, dividends and dividend equivalents and other equity based awards. Persons eligible to receive awards under the 2011 Share Plan are trust managers, directors of our affiliates, executive and other officers, key employees and consultants, as determined by the Compensation Committee of our Board of Trust Managers. The 2011 Share Plan will expire on May 11, 2021. Options. New options are exercisable, subject to the terms and conditions of the 2011 Share Plan, in increments ranging from 20% to 33.33% per year on each of the anniversaries of the date of grant. The 2011 Share Plan provides that the exercise price of an option will be determined by the Compensation Committee of the Board of Trust Managers on the day of grant, and to date all options have been granted at an exercise price that equals the fair market value on the date of grant. Approximately 26 thousand and 39 thousand options were exercised during the three months ended March 31, 2018, and 2017, respectively. The total intrinsic value of options exercised was approximately $1.3 million and $2.0 million during the three months ended March 31, 2018 and 2017, respectively. At March 31, 2018, there was no unrecognized compensation cost related to unvested options. At March 31, 2018, all options outstanding were exercisable and had a weighted average remaining life of approximately ten months. The following table summarizes outstanding share options, all of which were exercisable, at March 31, 2018:
Options Granted and Valuation Assumptions. During the three months ended March 31, 2018, we granted approximately 10 thousand reload options. Reload options are granted for the number of shares tendered as payment for the exercise price upon the exercise of an option with a reload provision. The reload options granted have an exercise price equal to the fair market value of a common share on the date of grant and expire on the same date as the original options which were exercised. The reload options granted during the three months ended March 31, 2018 vested immediately and approximately $37 thousand was expensed on the reload date. We estimate the fair values of each option award including reloads on the date of grant using the Black-Scholes option pricing model. The following assumptions were used for the reload options granted during the three months ended March 31, 2018:
Our computation of expected volatility for 2018 is based on the historical volatility of our common shares over a time period equal to the expected life of the option and ending on the grant date, and the interest rate for periods within the contractual life of the award is based on the U.S. Treasury yield curve in effect at the time of grant. The expected dividend yield on our common shares is based on the historical dividend yield over the expected term of the options granted. Our computation of expected life is based upon historical experience of similar awards, giving consideration to the contractual terms of the share-based awards. Share Awards and Vesting. Share awards for employees generally have a vesting period of three to five years. The compensation cost for share awards is generally based on the market value of the shares on the date of grant and is amortized over the vesting period. In the event the holder of the share awards will reach both the retirement eligibility age of 65 years and the service requirements as defined in the 2011 Share Plan before the term in which the awards are scheduled to vest, the value of the share awards is amortized from the date of grant to the individual's retirement eligibility date. We utilize actual forfeitures rather than estimating forfeitures at the time share-based awards were granted. At March 31, 2018, the unamortized value of previously issued unvested share awards was approximately $28.6 million, which is expected to be amortized over the next three years. The total fair value of shares vested during the three months ended March 31, 2018 and 2017 was approximately $22.4 million and $21.5 million, respectively. Total compensation costs for option and share awards charged against income was approximately $4.5 million and $4.7 million for the three months ended March 31, 2018 and 2017, respectively. Total capitalized compensation costs for option and share awards was approximately $0.9 million for each of the three months ended March 31, 2018 and 2017. The following table summarizes activity under our share incentive plans for the three months ended March 31, 2018:
Non-Qualified Deferred Compensation Share Awards. Balances within temporary equity in our condensed consolidated balance sheets relate to fully vested awards and the proportionate share of nonvested awards of participants within our Non-Qualified Deferred Compensation Plan who are permitted to diversify their shares into other equity securities subject to a six month holding period. The following table summarizes the eligible share award activity for the three months ended March 31, 2018:
|
Net Change In Operating Accounts |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (Decrease) in Operating Capital [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Change in Operating Accounts | 11. Net Change in Operating Accounts The effect of changes in the operating and other accounts on cash flows from operating activities is as follows:
|
Commitments and Contingencies |
3 Months Ended |
---|---|
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies Construction Contracts. As of March 31, 2018, we estimate the total additional cost to complete the six consolidated projects currently under construction to be approximately $228.7 million. We expect to fund this amount through a combination of one or more of the following: cash and cash equivalents, cash flows generated from operations, draws on our unsecured credit facility or other short-term borrowing, the use of debt and equity offerings under our automatic shelf registration statement, proceeds from property dispositions, equity issued from our 2017 ATM program, other unsecured borrowings or secured mortgages. Other Commitments and Contingencies. In the ordinary course of our business, we issue letters of intent indicating a willingness to negotiate for acquisitions, dispositions, or joint ventures and also enter into arrangements contemplating various transactions. Such letters of intent and other arrangements are non-binding as to either party unless and until a definitive contract is entered into by the parties. Even if definitive contracts relating to the purchase or sale of real property are entered into, these contracts generally provide the purchaser with time to evaluate the property and conduct due diligence, during which periods the purchaser will have the ability to terminate the contracts without penalty or forfeiture of any deposit or earnest money. There can be no assurance definitive contracts will be entered into with respect to any matter covered by letters of intent or we will consummate any transaction contemplated by any definitive contract. Furthermore, due diligence periods for real property are frequently extended as needed. An acquisition or sale of real property becomes probable at the time the due diligence period expires and the definitive contract has not been terminated. We are then at risk under a real property acquisition contract, but generally only to the extent of any earnest money deposits associated with the contract, and are obligated to sell under a real property sales contract. At March 31, 2018, we had approximately $0.4 million in refundable earnest money deposits for potential acquisitions of land in our condensed consolidated balance sheets. Of this amount, $0.1 million was related to the acquisition of land in Orlando, Florida completed in April 2018. Lease Commitments. At March 31, 2018, we had long-term leases covering certain land, office facilities, and equipment. Rental expense totaled approximately $1.0 million for each of the three months ended March 31, 2018 and 2017. Minimum annual rental commitments for the remainder of 2018 are $2.2 million, and for the years ending December 31, 2019 through 2022 are approximately $2.8 million, $2.8 million, $2.8 million, and $2.6 million, respectively, and approximately $6.7 million in the aggregate thereafter. Investments in Joint Ventures. We have entered into, and may continue in the future to enter into, joint ventures or partnerships, including limited liability companies, through which we own an indirect economic interest in less than 100% of the community or land owned directly by the joint venture or partnership. Our decision whether to hold the entire interest in an apartment community or land ourselves, or to have an indirect interest in the community or land through a joint venture or partnership, is based on a variety of factors and considerations, including: (i) our projection, in some circumstances, that we will achieve higher returns on our invested capital or reduce our risk if a joint venture or partnership vehicle is used; (ii) our desire to diversify our portfolio of investments by market; (iii) our desire at times to preserve our capital resources to maintain liquidity or balance sheet strength; and (iv) the economic and tax terms required by a seller of land or of a community, who may prefer or who may require less payment if the land or community is contributed to a joint venture or partnership. Investments in joint ventures or partnerships are not limited to a specified percentage of our assets. Each joint venture or partnership agreement is individually negotiated, and our ability to operate or dispose of land or of a community in our sole discretion may be limited to varying degrees in our existing joint venture agreements and may be limited to varying degrees depending on the terms of future joint venture agreements. |
Income Taxes |
3 Months Ended |
---|---|
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes We have maintained and intend to maintain our election as a REIT under the Internal Revenue Code of 1986, as amended. In order for us to continue to qualify as a REIT we must meet a number of organizational and operational requirements, including a requirement to distribute annual dividends to our shareholders equal to a minimum of 90% of our adjusted taxable income. As a REIT, we generally will not be subject to federal income tax on our taxable income at the corporate level to the extent such income is distributed to our shareholders annually. If our taxable income exceeds our dividends in a tax year, REIT tax rules allow us to designate dividends from the subsequent tax year in order to avoid current taxation on undistributed income. If we fail to qualify as a REIT in any taxable year, we will be subject to federal and state income taxes at regular corporate rates. In addition, we may not be able to requalify as a REIT for the four subsequent taxable years. Historically, we have incurred only state and local income, franchise, and excise taxes. Taxable income from non-REIT activities managed through taxable REIT subsidiaries is subject to applicable federal, state, and local income taxes. Our consolidated operating partnerships are flow-through entities and are not subject to federal income taxes at the entity level. We have recorded income, franchise, and excise taxes in the condensed consolidated statements of income and comprehensive income for the three months ended March 31, 2018 and 2017 as income tax expense. Income taxes for the three months ended March 31, 2018 primarily related to state income tax and federal taxes on certain of our taxable REIT subsidiaries. We have no significant temporary or permanent differences or tax credits associated with our taxable REIT subsidiaries. We believe we have no uncertain tax positions or unrecognized tax benefits requiring disclosure as of and for the three months ended March 31, 2018. |
Fair Value Measurements |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | 14. Fair Value Measurements Recurring Fair Value Measurements. The following table presents information about our financial instruments measured at fair value on a recurring basis as of March 31, 2018 and December 31, 2017 using the inputs and fair value hierarchy discussed in Note 2, "Summary of Significant Accounting Policies and Recent Accounting Pronouncements": Financial Instruments Measured at Fair Value on a Recurring Basis
Non-Recurring Fair Value Disclosures. The nonrecurring fair value disclosure inputs under the fair value hierarchy are discussed in Note 2, "Summary of Significant Accounting Policies and Recent Accounting Pronouncements." We completed two asset acquisitions in the three months ended March 31, 2018. We recorded the real estate assets and identifiable below market and in-place leases at their relative fair values based upon methods similar to those used by independent appraisers of income producing properties. Their fair value measurements associated with the valuation of these acquired assets represent Level 3 measurements within the fair value hierarchy. See Note 6, "Acquisitions" for a further discussion about these acquisitions. There were no non-recurring fair value adjustments during the three months ended March 31, 2017. Financial Instrument Fair Value Disclosures. The following table presents the carrying and estimated fair values of our notes payable at March 31, 2018 and December 31, 2017, in accordance with the policies discussed in Note 2, "Summary of Significant Accounting Policies and Recent Accounting Pronouncements."
|
Summary of Significant Accounting Policies and Recent Accounting Pronouncements (Policies) |
3 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Principles of Consolidation | Principles of Consolidation. Our condensed consolidated financial statements include our accounts and the accounts of other subsidiaries and joint ventures (including partnerships and limited liability companies) over which we have control. All intercompany transactions, balances, and profits have been eliminated in consolidation. Investments acquired or created are evaluated based on the accounting guidance relating to variable interest entities ("VIEs"), which requires the consolidation of VIEs in which we are considered to be the primary beneficiary. If the investment is determined not to be a VIE, then the investment is evaluated for consolidation primarily using a voting interest model. In determining if we have a controlling financial interest, we consider factors such as ownership interests, authority to make decisions, kick-out rights and participating rights. At March 31, 2018, two of our consolidated operating partnerships are VIEs, of which we held between 92% and 94% of the outstanding common limited partnership units and the sole 1% general partnership interest of each consolidated operating partnership. As we are considered the primary beneficiary, we continue to consolidate these operating partnerships. |
||||||||||||
Interim Financial Reporting | Interim Financial Reporting. We have prepared these unaudited financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial statements and the applicable rules and regulations of the Securities and Exchange Commission ("SEC"). Accordingly, these statements do not include all information and footnote disclosures required for annual statements. While we believe the disclosures presented are adequate for interim reporting, these interim unaudited financial statements should be read in conjunction with the audited financial statements and notes included in our 2017 Annual Report on Form 10-K. |
||||||||||||
Acquisitions of Real Estate | Acquisitions of Real Estate. Upon acquisition of real estate, we determine the fair value of tangible and intangible assets, which includes land, buildings (as-if-vacant), furniture and fixtures, the value of in-place leases, including above and below market leases, and acquired liabilities. In estimating these values, we apply methods similar to those used by independent appraisers of income-producing property. We generally believe acquisitions of operating properties are asset acquisitions, which include the capitalization of transaction costs. Estimates of fair value of acquired debt are based upon interest rates available for the issuance of debt with similar terms and remaining maturities. Depreciation is computed on a straight-line basis over the remaining useful lives of the related tangible assets. The value of in-place leases and above or below market leases is amortized over the estimated average remaining life of leases in place at the time of acquisition; the net carrying value of in-place leases and above market leases are included in other assets, net and the net carrying value of below market leases is included in other liabilities in our condensed consolidated balance sheets. During the three months ended March 31, 2018, we recognized amortization expense related to in-place leases of approximately $1.9 million and did not recognize any amortization expense related to in-place leases for the three months ended March 31, 2017. The weighted average amortization period for in-place leases was approximately seven months for the three months ended March 31, 2018. |
||||||||||||
Asset Impairment | Asset Impairment. Long-lived assets are reviewed for impairment annually or whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Impairment may exist if estimated future undiscounted cash flows associated with long-lived assets are not sufficient to recover the carrying value of such assets. We consider projected future undiscounted cash flows, trends, strategic decisions regarding future development plans, and other factors in our assessment of whether impairment conditions exist. While we believe our estimates of future cash flows are reasonable, different assumptions regarding a number of factors, including, but not limited to, market rents, economic conditions, and occupancies, could significantly affect these estimates. In estimating fair value, management uses appraisals, management estimates, and discounted cash flow calculations which utilize inputs from a marketplace participant's perspective. When impairment exists, the long-lived asset is adjusted to its fair value. In addition, we evaluate our equity investments in joint ventures and if we believe there is an other than temporary decline in market value of our investment below our carrying value, we will record an impairment charge. We did not record any impairment charges for the three months ended March 31, 2018 or 2017. The value of our properties under development depends on market conditions, including estimates of the project start date as well as estimates of demand for multifamily communities. We have reviewed market trends and other marketplace information and have incorporated this information as well as our current outlook into the assumptions we use in our impairment analyses. Due to the judgment and assumptions applied in the impairment analyses, it is possible actual results could differ substantially from those estimated. We believe the carrying value of our operating real estate assets, properties under development, and land is currently recoverable. However, if market conditions deteriorate or if changes in our development strategy significantly affect any key assumptions used in our fair value estimates, we may need to take material charges in future periods for impairments related to existing assets. Any such material non-cash charges could have an adverse effect on our consolidated financial position and results of operations. |
||||||||||||
Cost Capitalization | Cost Capitalization. Real estate assets are carried at cost plus capitalized carrying charges. Carrying charges are primarily interest and real estate taxes which are capitalized as part of properties under development. Capitalized interest is generally based on the weighted average interest rate of our unsecured debt. Expenditures directly related to the development and improvement of real estate assets are capitalized at cost as land and buildings and improvements. Indirect development costs, including salaries and benefits and other related costs directly attributable to the development of properties, are also capitalized. We begin capitalizing development, construction, and carrying costs when the development of the future real estate asset is probable and certain activities necessary to prepare the underlying real estate for its intended use have been initiated. All construction and carrying costs are capitalized and reported in the balance sheet as properties under development until the apartment homes are substantially completed. As apartment homes within development properties are completed, the total capitalized development cost of each apartment home is transferred from properties under development including land to buildings and improvements. As discussed above, carrying charges are principally interest and real estate taxes capitalized as part of properties under development. Capitalized interest was approximately $3.7 million and $4.4 million for the three months ended March 31, 2018 and 2017, respectively. Capitalized real estate taxes were approximately $0.8 million and $0.6 million for the three months ended March 31, 2018 and 2017, respectively. Depreciation and amortization is computed over the expected useful lives of depreciable property on a straight-line basis with lives generally as follows:
|
||||||||||||
Derivatives Financial Instruments | Derivative Financial Instruments. Derivative financial instruments are recorded in the consolidated balance sheets at fair value and presented on a gross basis for financial reporting purposes even when those instruments are subject to master netting arrangements and may otherwise qualify for net presentation. Accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether we have elected to designate a derivative in a hedging relationship and apply hedge accounting, and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows or other types of forecasted transactions are cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes attributable to the earnings effect of the hedged transactions. We may enter into derivative contracts which are intended to economically hedge certain of our risks, for which hedge accounting does not apply or we elect not to apply hedge accounting. |
||||||||||||
Fair Value | Fair Value. For financial assets and liabilities recorded at fair value on a recurring or non-recurring basis, fair value is the price we would expect to receive to sell an asset, or pay to transfer a liability, in an orderly transaction with a market participant at the measurement date under current market conditions. In the absence of such data, fair value is estimated using internal information consistent with what market participants would use in a hypothetical transaction. In determining fair value, observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions; preference is given to observable inputs. These two types of inputs create the following fair value hierarchy:
Recurring Fair Value Measurements. The following describes the valuation methodologies we use to measure different financial instruments at fair value on a recurring basis: Deferred Compensation Plan Investments. The estimated fair values of investment securities classified as deferred compensation plan investments are based on quoted market prices utilizing public information for the same transactions. Our deferred compensation plan investments are recorded in other assets in our consolidated balance sheets. The inputs associated with the valuation of our recurring deferred compensation plan investments are included in Level 1 of the fair value hierarchy. Derivative Financial Instruments. The estimated fair values of derivative financial instruments are valued using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and volatility. The fair values of interest rate swaps and caps are estimated using the market-standard methodology of netting the discounted fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on an expectation of interest rates (forward curves) derived from observable market interest rate curves. In addition, credit valuation adjustments, which consider the impact of any credit enhancements to the contracts, are incorporated in the fair values to account for potential nonperformance risk, including our own nonperformance risk and the respective counterparty’s nonperformance risk. The fair value of interest rate caps is determined using the market-standard methodology of discounting the future expected cash receipts which would occur if variable interest rates rise above the strike rate of the caps. The variable interest rates used in the calculation of projected receipts on the cap are based on an expectation of future interest rates derived from observed market interest rate curves and volatilities. Although we have determined the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default. However, we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and have determined the credit valuation adjustments are not significant to the overall valuation of our derivatives. As a result, we have determined our derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. Non-Recurring Fair Value Measurements. Certain assets are measured at fair value on a non-recurring basis. These assets are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances. These assets primarily include long-lived assets which are recorded at fair value if they are impaired using the fair value methodologies used to measure long-lived assets described above at "Asset Impairment." Non-recurring fair value disclosures are not provided for impairments on assets disposed during the period because they are no longer owned by us. The inputs associated with the valuation of long-lived assets are generally included in Level 3 of the fair value hierarchy, unless a quoted price for a similar long-lived asset in an active market exists, at which time they are included in Level 2 of the fair value hierarchy. Financial Instrument Fair Value Disclosures. As of March 31, 2018 and December 31, 2017, the carrying values of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and distributions payable represent fair value because of the short-term nature of these instruments. The carrying value of restricted cash approximates its fair value based on the nature of our assessment of the ability to recover these amounts. The carrying values of our notes receivable also approximate their fair values, which are based on certain factors, such as market interest rates, terms of the note and credit worthiness of the borrower. These financial instruments utilize Level 3 inputs. In calculating the fair value of our notes payable, interest rate and spread assumptions reflect current credit worthiness and market conditions available for the issuance of notes payable with similar terms and remaining maturities. These financial instruments utilize Level 2 inputs. |
||||||||||||
Notes Receivable | Note Receivable. We have one note receivable included in other assets, net, in our condensed consolidated balance sheets, relating to a real estate secured loan to an unaffiliated third party. This note receivable matures on October 1, 2030. At both March 31, 2018 and December 31, 2017, the outstanding note receivable balance was approximately $18.8 million. The interest rate on the note receivable was approximately 4.0% for each of the three months ended March 31, 2018 and 2017. Interest is recognized over the life of the note and included in interest and other income in our condensed consolidated statements of income and comprehensive income. We consider a note receivable to be impaired if it is probable we will not collect all contractually due principal and interest. We do not accrue interest when a note is considered impaired and an allowance is recorded for any principal and previously accrued interest which is not believed to be collectible. |
||||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements. In February 2017, the Financial Accounting Standards Board ("FASB") issued ASU 2017-05, "Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets." ASU 2017-05 clarifies the definition of an in-substance nonfinancial asset and changes the accounting for partial sales of nonfinancial assets to be more consistent with the accounting for a sale of a business pursuant to ASU 2017-01. We adopted ASU 2017-05 effective January 1, 2018, along with our adoption of ASU 2014-09 (described below), and it did not have a material impact on our consolidated financial statements. We believe most of our future contributions of nonfinancial assets to our joint ventures, if any, will result in the recognition of a full gain or loss as if we sold 100% of the nonfinancial asset and we will also measure our retained interest at fair value. In May 2014, the FASB issued ASU 2014-09 "Revenue from Contracts with Customers." ASU 2014-09 prescribes a single, common revenue standard to replace most existing revenue recognition guidance in GAAP, including most industry-specific requirements. The standard outlines a five-step model whereby revenue is recognized as performance obligations within a contract are satisfied. Several ASUs intended to promote a more consistent interpretation and application of the principles outlined in the standard have been issued since the issuance of ASU 2014-09 which modify certain sections of the new revenue recognition standard. We adopted ASU 2014-09 and all related amendments effective January 1, 2018 using the modified retrospective with cumulative effect transition method; this method requires us to recognize the cumulative effect of initially applying the new revenue standard as an adjustment, if any, to the opening balance of retained earnings, which did not have any impact upon adoption. See Note 3, "Revenues," for additional disclosures required by the ASU. In February 2016, the FASB issued ASU 2016-02, "Leases." ASU 2016-02 supersedes the current accounting for leases; retains two distinct types of leases, finance and operating; and (i) requires lessees to record a right of use asset and a related liability for the rights and obligations associated with a lease, regardless of lease classification, and recognize lease expense in a manner similar to current accounting (ii) eliminates most real estate specific lease provisions, and (iii) aligns many of the underlying lessor model principles with those in the new revenue standard. We anticipate adopting ASU 2016-02 as of January 1, 2019 and will be required to adopt ASU 2016-02 using the modified retrospective approach, which requires us to record leases existing as of or are entered into after the beginning of the earliest comparative period presented in the financial statements under the new lease standard. Based on our assessments, most of our operating lease commitments will be subject to the new guidance and recognized as operating lease liabilities and right-of-use assets upon adoption. We do not believe our adoption of the new leasing standard will have a material increase in the assets and liabilities on our consolidated balance sheets, and believe there will not be a material impact to our consolidated statements of income and comprehensive income. The ultimate impact, however, will depend on our lease portfolio as of the adoption date. In August 2016, the FASB issued ASU 2016-15, "Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force)." ASU 2016-15 clarifies how eight specific cash receipts and cash payments are to be presented and classified on the statement of cash flows, including debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments, contingent consideration made after a business combination, distributions received from equity method investees, beneficial interests in securitization transactions, and separately identifiable cash flows and application of predominance principle. We adopted ASU 2016-15 as of January 1, 2018 and it did not have a material effect on our consolidated statements of cash flows upon adoption. |
Summary of Significant Accounting Policies and Recent Accounting Pronouncements (Tables) |
3 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Expected useful lives of depreciable property | Depreciation and amortization is computed over the expected useful lives of depreciable property on a straight-line basis with lives generally as follows:
|
Per Share Data (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculation Of Basic And Diluted Earnings Per Share | The following table presents information necessary to calculate basic and diluted earnings per share for the periods indicated:
|
Investments in Joint Ventures (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate Balance Sheet And Statement Of Income Data For Unconsolidated Joint Ventures | The following table summarizes the combined balance sheets and statements of income data for the Funds as of and for the periods presented:
|
Notes Payable (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Payable [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Indebtedness | The following is a summary of our indebtedness:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Scheduled Repayments On Outstanding Debt | The table below is a summary of the maturity dates of our outstanding debt and principal amortizations, and the weighted average interest rates on such debt, at March 31, 2018:
|
Share-based Compensation and Non-Qualified Deferred Compensation Plan (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share Based Compensation Shares Authorized Under Stock Option Plans By Exercise Price Range And Intrinsic Value | The following table summarizes outstanding share options, all of which were exercisable, at March 31, 2018:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The following assumptions were used for the reload options granted during the three months ended March 31, 2018:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Share Incentive Plans | The following table summarizes activity under our share incentive plans for the three months ended March 31, 2018:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of non-qualified deferred compensation share award activity | The following table summarizes the eligible share award activity for the three months ended March 31, 2018:
|
Net Change in Operating Accounts (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (Decrease) in Operating Capital [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect Of Changes In The Operating And Other Accounts On Cash Flows From Operating Activities | The effect of changes in the operating and other accounts on cash flows from operating activities is as follows:
|
Fair Value Measurements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets And Liabilities Measured At Fair Value | The following table presents information about our financial instruments measured at fair value on a recurring basis as of March 31, 2018 and December 31, 2017 using the inputs and fair value hierarchy discussed in Note 2, "Summary of Significant Accounting Policies and Recent Accounting Pronouncements": Financial Instruments Measured at Fair Value on a Recurring Basis
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Of Notes Payable | The following table presents the carrying and estimated fair values of our notes payable at March 31, 2018 and December 31, 2017, in accordance with the policies discussed in Note 2, "Summary of Significant Accounting Policies and Recent Accounting Pronouncements."
|
Description of Business (Details) |
Mar. 31, 2018 |
---|---|
Business Acquisition [Line Items] | |
Number of multifamily properties owned, operated, or under development | 164 |
Total number of apartment homes in multifamily properties | 55,834 |
Number of multifamily properties under development | 6 |
Total Number of apartment homes in multifamily properties upon completion of development | 1,653 |
Summary of Significant Accounting Policies and Recent Accounting Pronouncements (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
Dec. 31, 2017 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Amortization of Intangible Assets | $ 1.9 | ||
Capitalized interest | 3.7 | $ 4.4 | |
Capitalized real estate taxes | 0.8 | $ 0.6 | |
Outstanding notes receivable | $ 18.8 | $ 18.8 | |
Weighted average interest rate on outstanding notes receivable | 4.00% | ||
Camden Summit Partnership L P [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Outstanding common limited partnership units, ownership interest | 94.00% | ||
General Partner of Consolidated Operating Partnerships, Ownership Interest | 1.00% | ||
Camden Operating L P [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Outstanding common limited partnership units, ownership interest | 92.00% | ||
General Partner of Consolidated Operating Partnerships, Ownership Interest | 1.00% |
Summary of Significant Accounting Policies and Recent Accounting Pronouncements (Expected Useful Lives Of Depreciable Property) (Details) |
3 Months Ended |
---|---|
Mar. 31, 2018 | |
Intangible assets/liabilities (in-place leases and above and below market leases) | underlying lease term |
Minimum [Member] | Buildings And Improvements [Member] | |
Estimated Useful Life (in years) | 5 years |
Minimum [Member] | Furniture, Fixtures, Equipment, And Other [Member] | |
Estimated Useful Life (in years) | 3 years |
Maximum [Member] | Buildings And Improvements [Member] | |
Estimated Useful Life (in years) | 35 years |
Maximum [Member] | Furniture, Fixtures, Equipment, And Other [Member] | |
Estimated Useful Life (in years) | 20 years |
Revenues (Details) |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Revenues [Abstract] | ||
Revenue Recogition, New Accounting Pronouncement, Description | 5.6 | 5.3 |
Per Share Data (Calculation Of Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Earnings Per Share [Abstract] | ||
Number of common share equivalent securities excluded from the diluted earnings per share calculation | 1,400 | 1,600 |
Income from continuing operations attributable to common shareholders | $ 39,395 | $ 34,861 |
Amount allocated to participating securities | (265) | (38) |
Income from continuing operations attributable to common shareholders, net of amount allocated to participating securities | 39,130 | 34,823 |
Net income attributable to common shareholders – basic | $ 39,130 | $ 34,823 |
Total earnings per common share – basic | $ 0.41 | $ 0.39 |
Income allocated to common units from continuing operations | $ 297 | $ 273 |
Net income attributable to common shareholders – diluted | $ 39,427 | $ 35,096 |
Total earnings per common share – diluted | $ 0.41 | $ 0.39 |
Weighted average number of common shares outstanding – basic | 95,067 | 89,925 |
Common share options and share awards granted | 174 | 218 |
Common units | 805 | 806 |
Weighted average number of common shares outstanding – diluted | 96,046 | 90,949 |
Common Shares (Narrative) (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | ||||
---|---|---|---|---|---|---|
May 04, 2018 |
May 31, 2017 |
Nov. 30, 2014 |
Mar. 31, 2018 |
Dec. 31, 2017 |
May 05, 2017 |
|
Common shares repurchased | $ 253 | |||||
Treasury Stock, Shares, Acquired | 3,222 | |||||
Number of common and preferred stock authorized to issue | 185,000,000 | |||||
Common shares, authorized | 175,000,000 | 175,000,000 | ||||
Preferred shares, authorized | 10,000,000 | |||||
Common Stock, Shares, Outstanding | 92,800,000 | |||||
Preferred Stock, Shares Outstanding | 0 | |||||
Unsecured Credit Facility [Member] | ||||||
Line of Credit Facility, Current Borrowing Capacity | $ 600,000 | |||||
2014 ATM program [Member] | ||||||
Maximum aggregate offering price of remaining common shares available for sale | $ 315,300 | |||||
Maximum aggregate offering price of common shares | $ 331,300 | |||||
2017 ATM program [Member] | ||||||
Maximum aggregate offering price of common shares | $ 315,300 | |||||
2017 ATM program [Member] | Subsequent Event [Member] | ||||||
Common shares issued | 0 | |||||
Maximum aggregate offering price of remaining common shares available for sale | $ 312,800 | |||||
April 2007 Repurchase Plan [Member] | ||||||
Treasury stock allowed for repurchase | $ 500,000 | |||||
April 2007 Repurchase Plan [Member] | Subsequent Event [Member] | ||||||
Share Repurchase Program, Remaining Authorized Repurchase Amount | $ 269,500 |
Acquisitions, Dispositions, Discontinued Operations and Assets Held for Sale (Narrative) (Details) $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Apr. 12, 2018
USD ($)
a
|
Feb. 15, 2018
USD ($)
|
Jan. 11, 2018
USD ($)
|
Mar. 31, 2018
USD ($)
|
Mar. 31, 2017
USD ($)
|
|
Purchase Price of Operating Properties Acquired | $ 201,899 | $ 0 | |||
Subsequent Event [Member] | |||||
Area of Land | a | 1.8 | ||||
Payments to Acquire Land | $ 11,400 | ||||
Number of Units in Real Estate Property | 360 | ||||
Camden Pier District [Member] | |||||
Number of Operating properties Acquired | 1 | ||||
Number of Units in Real Estate Property | 358 | ||||
Purchase Price of Operating Properties Acquired | $ 126,900 | ||||
Camden North Quarter [Member] | |||||
Number of Operating properties Acquired | 1 | ||||
Number of Units in Real Estate Property | 333 | ||||
Purchase Price of Operating Properties Acquired | $ 81,400 |
Investments in Joint Ventures (Narrative) (Details) |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2018
USD ($)
|
Mar. 31, 2017
USD ($)
|
|||
Schedule of Equity Method Investments [Line Items] | ||||
Property operating and maintenance | $ 53,916,000 | $ 51,548,000 | ||
Equity method investment ownership percentage | 20.00% | |||
Equity in income of joint ventures | [1] | $ 1,829,000 | 1,817,000 | |
Number of joint ventures accounted for under equity method investments | 3 | |||
Maximum guaranteed amount of loans utilized for construction and development activities for joint ventures | $ 0 | |||
Fees earned for property and asset management, construction, development, and other services to joint ventures | $ 1,400,000 | $ 1,300,000 | ||
Maximum [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment ownership percentage | 31.30% | |||
Minimum [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment ownership percentage | 20.00% | |||
|
Investments in Joint Ventures (Aggregate Balance Sheet And Statement Of Income Data For Unconsolidated Joint Ventures) (Details) - USD ($) $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
Dec. 31, 2017 |
|||
Investments in Joint Ventures [Abstract] | |||||
Total assets | $ 703,000 | $ 715,900 | |||
Total third-party debt | 513,400 | 514,500 | |||
Total equity | 173,200 | $ 174,500 | |||
Total revenues | 31,100 | $ 30,000 | |||
Net income | 3,700 | 3,800 | |||
Equity in income (1) | [1] | $ 1,829 | $ 1,817 | ||
|
Notes Payable (Summary Of Indebtedness) (Details) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2018 |
Dec. 31, 2017 |
|||
Unsecured notes payable | $ 1,339,142 | $ 1,338,628 | ||
Secured notes payable | 865,798 | 865,970 | ||
Total notes payable | 2,204,900 | 2,204,600 | ||
Senior Unsecured Notes [Member] | ||||
Unsecured notes payable | [1] | $ 1,339,100 | $ 1,338,600 | |
4.78% Notes Due 2021 [Member] | Senior Unsecured Notes [Member] | ||||
Debt Instrument, Maturity Date | Jun. 15, 2021 | |||
Notes payable, effective interest rate | 4.78% | 4.78% | ||
Unsecured notes payable | $ 248,800 | $ 248,700 | ||
3.15% Notes Due 2022 [Member] | Senior Unsecured Notes [Member] | ||||
Debt Instrument, Maturity Date | Dec. 15, 2022 | |||
Notes payable, effective interest rate | 3.15% | 3.15% | ||
Unsecured notes payable | $ 346,800 | $ 346,600 | ||
5.07% Notes Due 2023 [Member] | Senior Unsecured Notes [Member] | ||||
Debt Instrument, Maturity Date | Jun. 15, 2023 | |||
Notes payable, effective interest rate | 5.07% | 5.07% | ||
Unsecured notes payable | $ 247,700 | $ 247,600 | ||
4.36% Notes Due 2024 [Member] | Senior Unsecured Notes [Member] | ||||
Debt Instrument, Maturity Date | Jan. 15, 2024 | |||
Notes payable, effective interest rate | 4.36% | 4.36% | ||
Unsecured notes payable | $ 248,500 | $ 248,500 | ||
3.68% Notes Due 2024 [Member] | Senior Unsecured Notes [Member] | ||||
Debt Instrument, Maturity Date | Sep. 15, 2024 | |||
Notes payable, effective interest rate | 3.68% | 3.68% | ||
Unsecured notes payable | $ 247,300 | $ 247,200 | ||
Secured Notes 2.20% to 5.77% Conventional Mortgage Notes Due 2018 to 2045 [Member] | Secured Debt [Member] | ||||
Secured notes payable | 865,800 | 866,000 | ||
Secured Notes 2.20% Floating Rate [Member] | Secured Debt [Member] | ||||
Secured notes payable | $ 175,000 | $ 175,000 | ||
Minimum [Member] | Secured Notes 2.20% to 5.77% Conventional Mortgage Notes Due 2018 to 2045 [Member] | Secured Debt [Member] | ||||
Debt Instrument, Maturity Date | Oct. 01, 2018 | |||
Notes payable, effective interest rate | 2.20% | |||
Minimum [Member] | Secured Notes 2.20% Floating Rate [Member] | Secured Debt [Member] | ||||
Notes payable, effective interest rate | 2.20% | |||
Maximum [Member] | Secured Notes 2.20% to 5.77% Conventional Mortgage Notes Due 2018 to 2045 [Member] | Secured Debt [Member] | ||||
Debt Instrument, Maturity Date | Sep. 01, 2045 | |||
Notes payable, effective interest rate | 5.77% | |||
Unsecured Credit Facility [Member] | Commercial Banks [Member] | ||||
Unsecured notes payable | $ 0 | |||
Short-term Debt [Member] | ||||
Debt Instrument, Maturity Date | May 14, 2018 | |||
Other Short-term Borrowings | $ 0 | |||
|
Notes Payable (Narrative) (Details) $ in Thousands |
1 Months Ended | 3 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
May 31, 2017 |
Mar. 31, 2018
USD ($)
yr
|
Mar. 31, 2017
USD ($)
|
Dec. 31, 2017
USD ($)
|
May 12, 2017
USD ($)
|
||||||
Unamortized debt discounts and debt issuance costs | $ 11,600 | $ 12,300 | ||||||||
Unsecured Debt | 1,339,142 | 1,338,628 | ||||||||
Available amount under unsecured credit facility | 586,900 | |||||||||
Notes payable | $ 2,204,900 | 2,204,600 | ||||||||
Weighted Average Interest Rate | [1] | 4.30% | ||||||||
Weighted average maturity of indebtedness (including unsecured line of credit) (in years) | yr | 4.0 | |||||||||
Loss on early retirement of debt | $ 0 | $ 323 | ||||||||
Letter Of Credit [Member] | ||||||||||
Maximum Ability to Issue Letters of Credit Under Unsecured Credit Facility | 50,000 | |||||||||
Outstanding balance under credit facility | 13,100 | |||||||||
Short-term Debt [Member] | ||||||||||
Maximum borrowing capacity under unsecured credit facility | $ 45,000 | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.95% | |||||||||
Other Short-term Borrowings | 0 | |||||||||
Available amount under unsecured credit facility | $ 45,000 | |||||||||
Debt Instrument, Maturity Date | May 14, 2018 | |||||||||
Commercial Banks [Member] | Unsecured Credit Facility [Member] | ||||||||||
Unsecured Debt | $ 0 | |||||||||
Senior Unsecured Notes [Member] | ||||||||||
Unsecured Debt | [2] | $ 1,339,100 | $ 1,338,600 | |||||||
5.83% Notes Due 2017 [Member] | Senior Unsecured Notes [Member] | ||||||||||
Notes payable, effective interest rate | 5.83% | 5.83% | ||||||||
Debt Instrument, Maturity Date | May 15, 2017 | |||||||||
Unsecured Credit Facility [Member] | ||||||||||
Unsecured Credit Facility, Current Borrowing Capacity | $ 600,000 | |||||||||
Unsecured Credit Facility, Expiration Date | Aug. 07, 2019 | |||||||||
Optional extension period of unsecured credit facility | August 2020 | |||||||||
Maximum borrowing capacity under unsecured credit facility | $ 900,000 | |||||||||
Maximum term of bid rate loans (days) | 180 | |||||||||
Lesser of amount stated or the amount available under the unsecured credit facility | $ 300,000 | |||||||||
Floating rate notes payable [Member] | ||||||||||
Notes payable | $ 175,000 | $ 175,000 | ||||||||
Weighted Average Interest Rate | 2.20% | 1.40% | ||||||||
|
Notes Payable (Scheduled Repayments On Outstanding Debt) (Details) $ in Millions |
Mar. 31, 2018
USD ($)
|
|||||
---|---|---|---|---|---|---|
2018 | $ 174.1 | |||||
2019 | 643.0 | |||||
2020 | (1.2) | [1] | ||||
2021 | 249.1 | |||||
2022 | 349.3 | |||||
Thereafter | 790.6 | |||||
Total notes payable | $ 2,204.9 | [2] | ||||
Weighted Average Interest Rate | 4.30% | [2] | ||||
Maturities Due In 2018 [Member] | ||||||
Weighted Average Interest Rate | 2.20% | |||||
Maturities Due In 2019 [Member] | ||||||
Weighted Average Interest Rate | 5.40% | |||||
Maturities Due In 2020 [Member] | ||||||
Weighted Average Interest Rate | 0.00% | [1] | ||||
Maturities due in 2021 [Member] | ||||||
Weighted Average Interest Rate | 4.80% | |||||
Maturities due in 2022 [Member] | ||||||
Weighted Average Interest Rate | 3.20% | |||||
Maturities Due Thereafter [Member] | ||||||
Weighted Average Interest Rate | 4.40% | |||||
|
Derivative and Hedging Activities (Details) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2018
USD ($)
|
Mar. 31, 2017
USD ($)
|
Feb. 09, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest Rate Derivative Assets, at Fair Value | $ 7,700 | $ 2,200 | ||
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | 200 | |||
Unrealized Gain on cash flow hedging activities | 3,601 | $ 0 | ||
Derivative Instruments, Gain Recognized in Other Comprehensive Income (Loss), Effective Portion | 3,600 | |||
Interest Rate Derivative Liabilities, at Fair Value | 2,400 | 500 | ||
Derivative Assets (Liabilities), at Fair Value, Net | 5,300 | |||
Interest Rate Cap [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Notional Amount | $ 175,000 | |||
Interest Rate Swap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest Rate Derivative Assets, at Fair Value | 7,700 | 2,200 | ||
Interest Rate Derivative Liabilities, at Fair Value | 2,400 | $ 500 | ||
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Notional Amount | $ 400,000 | $ 200,000 | ||
Number of Interest Rate Derivatives Held | 5 | 2 |
Share-based Compensation and Non-Qualified Deferred Compensation Plan (Narrative) (Details) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2018
USD ($)
shares
|
Mar. 31, 2017
USD ($)
shares
|
Jun. 30, 2011
shares
|
|
Options exercised during the period | 26,114 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 9,994 | ||
Total compensation cost for option and share awards | $ | $ 4,500 | $ 4,700 | |
Total capitalized compensation cost for option and share awards | $ | 900 | $ 900 | |
Employee Stock Option [Member] | |||
Allocated Share-based Compensation Expense | $ | $ 37 | ||
Options exercised during the period | 26,000 | 39,000 | |
Intrinsic value of options exercised during the period | $ | $ 1,300 | $ 2,000 | |
Remaining weighted average contractual life (years) exercisable options | 10 months 24 days | ||
Share Awards and Vesting [Member] | |||
Total unrecognized compensation cost which is expected to be amortized | $ | $ 28,600 | ||
Expected amortized period of unrecognized compensation expected to be recognized for share-based compensation plans | 3 years | ||
Fair value of shares vested | $ | $ 22,400 | $ 21,500 | |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% | ||
Minimum [Member] | Share Awards and Vesting [Member] | |||
Vesting period, years | 3 years | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 33.33% | ||
Maximum [Member] | Share Awards and Vesting [Member] | |||
Vesting period, years | 5 years | ||
2011 Share Incentive Plan [Member] | |||
Total fungible units available | 2,100,000 | 9,100,000 | |
Units available under the 2011 Share Plan | 5,800,000 | ||
Fungible units transferred from the 2002 Share Plan to the 2011 Share Plan | 3,300,000 | ||
Fungible Units To Full Value Award Conversion Ratio | 3.45 | ||
Full Value award in the fungible unit conversion ratio | 1.0 | ||
Value of option right or other award in the fungible unit conversion | 0.83 | ||
Common shares which could be granted pursuant to full value awards | 600,000 |
Share-based Compensation and Non-Qualified Deferred Compensation Plan (Summary Of Share Options Outstanding And Exercisable) (Details) $ / shares in Units, $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2018
USD ($)
$ / shares
shares
| ||||
Outstanding and Exercisable Options, Number | shares | 52,858 | [1] | ||
Aggregate intrinsic value of outstanding options | $ | $ 0.2 | |||
Aggregate Intrinsic Value of Exercisable Options | $ | $ 0.2 | |||
Closing share price per share for calculation of aggregate intrinsic values | $ 84.18 | |||
Options outstanding at March 31, 2018, Weighted Average Exercise/Grant Price | 79.79 | [1] | ||
Exercise Price $75.17 [Member] | ||||
Range of exercise prices, minimum | 75.17 | |||
Range of exercise prices, maximum | $ 75.17 | |||
Outstanding and Exercisable Options, Number | shares | 15,388 | [1] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $ 75.17 | [1] | ||
Exercise Price $78.55 [Member] | ||||
Range of exercise prices, minimum | 78.55 | |||
Range of exercise prices, maximum | $ 78.55 | |||
Outstanding and Exercisable Options, Number | shares | 9,994 | [1] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $ 78.55 | [1] | ||
Range Of Exercise Prices $80.89 to $85.05 [Member] | ||||
Range of exercise prices, minimum | 80.89 | |||
Range of exercise prices, maximum | $ 85.05 | |||
Outstanding and Exercisable Options, Number | shares | 27,476 | [1] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $ 82.84 | [1] | ||
|
Share-based Compensation and Non-Qualified Deferred Compensation Plan (Option Valuation Assumptions) (Details) |
3 Months Ended |
---|---|
Mar. 31, 2018
$ / shares
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Minimum | 15.10% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum | 2.00% |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 4.11 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 3.30% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 1 year |
Share-based Compensation and Non-Qualified Deferred Compensation Plan (Summary Of Share Incentive Plans) (Details) |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2018
$ / shares
shares
| ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding Options, Number At December 31, 2017 | shares | 68,978 | |||
Granted, Options Outstanding | shares | 9,994 | |||
Exercised/Vested, Options Outstanding | shares | (26,114) | |||
Forfeited, Options Outstanding | shares | 0 | |||
Outstanding Options, Number At March 31, 2018 | shares | 52,858 | |||
Options outstanding at December 31, 2017, Weighted Average Exercise/Grant Price | $ / shares | $ 61.15 | |||
Granted, Weighted Average Exercise/Grant Price | $ / shares | 78.55 | |||
Exercised/Vested, Weighted Average Exercise/Grant Price | $ / shares | 30.06 | |||
Forfeited, Weighted Average Exercise/Grant Price | $ / shares | 0.00 | |||
Options outstanding at March 31, 2018, Weighted Average Exercise/Grant Price | $ / shares | $ 79.79 | [1] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||||
Nonvested share awards outstanding at December 31, 2017, Share Awards Outstanding | shares | 499,898 | |||
Granted, Share Awards Outstanding | shares | 211,417 | |||
Exercised/Vested, Share Awards Outstanding | shares | (298,419) | |||
Forfeited, Share Awards Outstanding | shares | (12,650) | |||
Nonvested share awards outstanding at March 31, 2018, Share Awards Outstanding | shares | 400,246 | |||
Nonvested share awards outstanding at December 31, 2017, Weighted Average Exercise/Grant Price | $ / shares | $ 75.80 | |||
Granted, Weighted Average Exercise/Grant Price | $ / shares | 82.65 | |||
Exercised/Vested, Weighted Average Exercise/Grant Price | $ / shares | 75.22 | |||
Forfeited, Weighted Average Exercise/Grant Price | $ / shares | 79.16 | |||
Nonvested share awards outstanding at March 31, 2018, Weighted Average Exercise/Grant Price | $ / shares | $ 79.74 | |||
|
Share-based Compensation and Non-Qualified Deferred Compensation Plan (NQDC diversified share awards rollforward) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
Dec. 31, 2017 |
|
Share-based Compensation [Abstract] | |||
Balance at December 31, 2017 | $ 77,230 | ||
Change in classification | 5,250 | $ 4,234 | |
Change in redemption value | (6,306) | (3,925) | |
Diversification of share awards | $ (1,642) | $ (23,200) | |
Balance at March 31, 2018 | $ 76,174 | $ 77,230 |
Net Change in Operating Accounts (Effect Of Changes In The Operating Accounts On Cash Flows From Operating Activities) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Increase (Decrease) in Operating Capital [Abstract] | ||
Other assets, net | $ 2,236 | $ 2,200 |
Accounts payable and accrued expenses | (9,836) | (7,786) |
Accrued real estate taxes | (22,464) | (24,359) |
Other liabilities | 1,600 | (2,211) |
Other | 700 | 743 |
Change in operating accounts and other | $ (27,764) | $ (31,413) |
Commitments and Contingencies (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | |
---|---|---|---|
May 04, 2018 |
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Number of consolidated projects under construction | 6 | ||
Anticipated expenditures relating to completion of construction type contracts | $ 228.7 | ||
Earnest Money Deposits | 0.4 | ||
Rental expense | 1.0 | $ 1.0 | |
Minimum annual rental commitments, remainder of 2018 | 2.2 | ||
Minimum annual rental commitments, 2019 | 2.8 | ||
Minimum annual rental commitments, 2020 | 2.8 | ||
Minimum annual rental commitments, 2021 | 2.8 | ||
Minimum annual rental commitments, 2022 | 2.6 | ||
Minimum annual rental commitments, thereafter | $ 6.7 | ||
Maximum [Member] | Partnership Interest [Member] | |||
Less than joint venture economic interest noted | 100.00% | ||
Subsequent Event [Member] | |||
Increase (Decrease) in Earnest Money Deposits Outstanding | $ 0.1 |
Income Taxes (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2018
USD ($)
| |
Income Tax Disclosure [Abstract] | |
Annual dividends distribution percentage to shareholders to qualify as a REIT | 90.00% |
Significant temporary differences or tax credits associated with our taxable REIT subsidiaries | $ 0.0 |
Uncertain tax positions or unrecognized tax benefits | $ 0.0 |
Fair Value Measurements (Narrative) (Details) |
Dec. 31, 2017
USD ($)
|
---|---|
Non-recurring fair value measurements [Abstract] | |
Fair Value Measurements, Nonrecurring | $ 0 |
Fair Value Measurements (Financial Assets And Liabilities Measured At Fair Value) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
Dec. 31, 2017 |
||||
Deferred compensation plan investments (1) | $ 119,000 | [1] | $ 120,300 | |||
Participant Withdrawals From Deferred Compensation Plan Investments | 3,000 | $ 4,200 | ||||
Diversification of share awards within deferred compensation plan | $ 1,642 | 23,200 | ||||
Interest Rate Derivative Assets, at Fair Value | 7,700 | 2,200 | ||||
Interest Rate Derivative Liabilities, at Fair Value | 2,400 | 500 | ||||
Level 1 [Member] | ||||||
Deferred compensation plan investments (1) | 119,000 | [1] | 120,300 | |||
Interest Rate Derivative Assets, at Fair Value | 0 | 0 | ||||
Interest Rate Derivative Liabilities, at Fair Value | 0 | 0 | ||||
Level 2 [Member] | ||||||
Deferred compensation plan investments (1) | 0 | [1] | 0 | |||
Level 3 [Member] | ||||||
Deferred compensation plan investments (1) | 0 | [1] | 0 | |||
Interest Rate Derivative Assets, at Fair Value | 0 | 0 | ||||
Interest Rate Derivative Liabilities, at Fair Value | 0 | 0 | ||||
Interest Rate Swap [Member] | ||||||
Interest Rate Derivative Assets, at Fair Value | 7,700 | 2,200 | ||||
Interest Rate Derivative Liabilities, at Fair Value | 2,400 | 500 | ||||
Interest Rate Swap [Member] | Level 2 [Member] | ||||||
Interest Rate Derivative Assets, at Fair Value | 7,700 | 2,200 | ||||
Interest Rate Derivative Liabilities, at Fair Value | $ 2,400 | $ 500 | ||||
|
Fair Value Measurements (Fair Value Of Notes Payable) (Details) - USD ($) $ in Millions |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Carrying Value | $ 2,204.9 | $ 2,204.6 |
Fixed rate notes payable | ||
Carrying Value | 2,029.9 | 2,029.6 |
Estimated Fair Value | 2,069.8 | 2,106.5 |
Floating rate notes payable (1) | ||
Carrying Value | 175.0 | 175.0 |
Estimated Fair Value | $ 174.2 | $ 173.7 |
$ @18*BL #8H=<@&(]U0%
MD;.@ Y\!R ,H%HXR!)\"R/^/JL);'$%[?%95 !2Y"SKP_D70!IY5%0#-JFJ/
MFDE%V$4W:FYD]%H+=2:/5H?+P,Y5S6BROD>;M&OI[S3=#>,;9I>BYL:1"MGJ
M=$,Z4RJ(].A8LA:YO-0,DY* ]
M-&U5:"\JE2+[-?R?RO[_JOV_FV$#I@W89PVX-N W Y7L/0.A#<3-@/&[!J$V
M"#\,Z%V#2!M$GS6(M4'\8= 7'0S=[:?K,6NSY;RNKEX]K+ASUBUL.HO5@MAV
M@_W\]\_4C#5J]&W)DW >O'6.-&8]8-@80\@4\VACZ T1J QN:3"4QIJ!$,P(
M 3!)-,4\ 0R+IY@-\F-@GA$FP05QV%?>.Q 3!ZE1T(")>TPY](Q&9F 1'OI/57$%X\/%[#[Z"+0ZAV599*L:AI_=%X\XL^YK
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M ,[SO+BO$IPH)!!XK_P\+UM:$#AWR#+J.UC8-;]$!+JN<>W=XMW62^ T, &:C0Z/*(D(I.)@$!QXLU0]NN#RSS[1GP[X*'L=#MR7 <2A83]D!-$;
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M"Z"*,[9P= R$87,8[J6
WS7&/R[J9O
M$K^)]EC47?"LM&EO7!-R4$I+0XGN#-_)]*7CI)0';8>I&;=]<]9/M&J&QC,:
MN]_-7U!+ P04 " #G8:1,;S=Q!2 # #W# &0 'AL+W=O8!PWB:5!.C97E"$%J29XS(QT?LH1/O=0G\
M\8214%/:8Z(.4_4Z @\G\5$2WR#QW$ CZ3'!B,0CA. L
+
M[7XX58A2A095J"W>8V@R13I3O\RW(*\T1:BF"!E^I(F*3"IWCBE&F6*$*=:8
M8H,I(?$,4X(R)0B35A8>$X-I@@)
-
M;Q#*5%;G H8; (H JIE^A^ 6@.(/! R7+H)JUVXCR"U>H(\ J/E&@N B1U"5
MV_<>N64.7'SDUOGLS4=PJ2.@UN.Y_,)UC/(/'!%<@ BH0/M.%CUH'*U*26AG
MY0' X2EN^J&%BQ4#Q1K;MZ8'3;J"_:5U(79N@M& 45-^--.>\';LW$C] 1[M
M#A/E/=8#BK5?H.6V&US^N>G&U&^$'\M&>"],JO''#"D'QB15"L,[I>VD)N-A
M4=U*^9>N?=>-@M)&O[T3<8YN_-7U!+ P04 " #G8:1,Z=JCEWP# "@
M#P &0 'AL+W=O
K&+ZO1%>L93A7B^7;]/?_QC";2%G 3.*LO((.99V]!Q@@&C9 CMPFOTTSZ.
ME,Q8LNG_J@OXE_? 4+/7=8,J9W0?(,=,GT)\,JBLWMTOZT<@"W[I?@.:$ X)
M[\.A?0#VS4M;?BZ;>=4F&,EM 1HY3B@^GOUW<'\K\'IY1YV*;HQ;&:CJ0_-\
M"?O7A(.PKV"
MC$(R= B-%^ Z:.OE;M3B+BB!1U-\U<4+Z!\WXV?>C%>T&7M$EZYH-]:NO%_;
MP\/,?)_WBO8I*&,;;((EEZ"
Q+"477@P9U.#W!'V"3SHYW)A7?PF]*+%0;5LNOI>[^Y+W_(DO6
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MK[C**OW+%;[4XUQ0UFK)[@>/FNT@J&%BR";0GM3F<2Y1#
M_TB*:D49&7T%NG=NM-]F/!F/./WWX,>O&PL:Z%%&_50&SX(DHQ8-G:2#-VOV
M?#Q&[F3Q/G
MP4CLL&D$/\4TN8\V9
1OU(
M#YPL]C7.L*)"O@8MO/9PT3LKAW"-7-N;/L@&J57.BI
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M,]_
U2NY:+/#(%]/P?D2,9I@GN)1V90AL7>3,<=2Z'5Z^BZDE,\V(DQ0&*<,G
MJ56M<= %-8E\9H\1HEDKIO98KRK[5UHE +CT2\(!:+B0NP0ZFVG!L7MDD#8<
M5ZL?.ES5<"X&R4)Y\'!S7*S/1"0X-[?PZK[V$_4AR#GU 0U2_<]V-.?,1IEM
MSUTS>D(D'HPKZP5')\#.I9ST]Z_>?# AV91\B0:<]PPI#W+.@G9JQ4\'MP^.P"TOD4K3UBH'9'&IP@$OD
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M,5H:*B;YI\%K?HRT?1+T5F_6R[K^U3OW0@PS*8/(9&!OGV+YV)+HZ