Mortgages and Notes Receivable

9 Months Ended

Sep. 30, 2012

Financing Receivables [Line Items]

Mortgages and Notes Receivable

Mortgages and Notes Receivable

The following table sets forth our mortgages and notes receivable:

	September 30, 2012			December 31, 2011
Seller financing (first mortgages)	$	15,853		$	17,180
Less allowance	—			—
	15,853			17,180
Promissory notes	1,301			1,481
Less allowance	(211		)	(61		)
	1,090			1,420
Mortgages and notes receivable, net	$	16,943		$	18,600

Our mortgages and notes receivable consist primarily of seller financing issued in conjunction with two disposition transactions in 2010. This seller financing is evidenced by first mortgages secured by the assignment of rents and the underlying real estate assets. We evaluate the collectability of the receivables by monitoring the leasing statistics and market fundamentals of these assets. As of September 30, 2012, the payments on both mortgages receivable were current and there were no other indications of impairment on the receivables. We may be required to take impairment charges in the future if and to the extent the underlying collateral diminishes in value.

The following table sets forth our notes receivable allowance, which relates only to promissory notes:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2012		2011			2012		2011
Beginning notes receivable allowance	$	118	$	617		$	61	$	868
Bad debt expense	—		—			—		184
Recoveries/write-offs/other	93		(72		)	150		(507		)
Total notes receivable allowance	$	211	$	545		$	211	$	545

Highwoods Realty Limited Partnership [Member]

Financing Receivables [Line Items]

Mortgages and Notes Receivable

Mortgages and Notes Receivable

The following table sets forth our mortgages and notes receivable:

	September 30, 2012			December 31, 2011
Seller financing (first mortgages)	$	15,853		$	17,180
Less allowance	—			—
	15,853			17,180
Promissory notes	1,301			1,481
Less allowance	(211		)	(61		)
	1,090			1,420
Mortgages and notes receivable, net	$	16,943		$	18,600

Our mortgages and notes receivable consist primarily of seller financing issued in conjunction with two disposition transactions in 2010. This seller financing is evidenced by first mortgages secured by the assignment of rents and the underlying real estate assets. We evaluate the collectability of the receivables by monitoring the leasing statistics and market fundamentals of these assets. As of September 30, 2012, the payments on both mortgages receivable were current and there were no other indications of impairment on the receivables. We may be required to take impairment charges in the future if and to the extent the underlying collateral diminishes in value.

The following table sets forth our notes receivable allowance, which relates only to promissory notes:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2012		2011			2012		2011
Beginning notes receivable allowance	$	118	$	617		$	61	$	868
Bad debt expense	—		—			—		184
Recoveries/write-offs/other	93		(72		)	150		(507		)
Total notes receivable allowance	$	211	$	545		$	211	$	545