XML 57 R11.htm IDEA: XBRL DOCUMENT v2.4.0.6
Investments In and Advances To Affiliates
 9 Months Ended
Sep. 30, 2012
Schedule of Equity Method Investments [Line Items]  
Investments In and Advances To Affiliates
Investments in and Advances to Affiliates

Unconsolidated Affiliates

We have equity interests of up to 50.0% in various joint ventures with unrelated third parties and a secured debt interest in one of those joint ventures, as described below. The following table sets forth the combined, summarized income statements for our unconsolidated joint ventures on the purchase accounting basis:

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2012
 
2011
 
2012
 
2011
Income Statements:
 
 
 
 
 
 
 
Rental and other revenues
$
25,051

 
$
25,623

 
$
75,920

 
$
75,619

Expenses:
 
 
 
 
 
 
 
Rental property and other expenses
11,624

 
10,805

 
35,706

 
33,576

Depreciation and amortization
6,355

 
6,759

 
18,839

 
19,670

Impairments of real estate assets
—

 
—

 
7,180

 
—

Interest expense
4,980

 
5,976

 
16,077

 
17,841

Total expenses
22,959

 
23,540

 
77,802

 
71,087

Income/(loss) before disposition of properties
2,092

 
2,083

 
(1,882
)
 
4,532

Gains on disposition of properties
—

 
—

 
6,275

 
—

Net income
$
2,092


$
2,083

 
$
4,393

 
$
4,532

Our share of:
 
 
 
 
 
 
 
Depreciation and amortization of real estate assets
$
2,028

 
$
2,066

 
$
5,801

 
$
6,192

Impairments of real estate assets
$
—

 
$
—

 
$
1,002

 
$
—

Interest expense
$
1,775

 
$
1,965

 
$
5,598

 
$
6,159

Net income
$
914

 
$
442

 
$
1,252

 
$
2,112

 
 
 
 
 
 
 
 
Our share of net income
$
914

 
$
442

 
$
1,252

 
$
2,112

Adjustments for management and other fees
410

 
671

 
1,418

 
1,821

Equity in earnings of unconsolidated affiliates
$
1,324

 
$
1,113

 
$
2,670

 
$
3,933



During the second quarter of 2011, we provided a $38.3 million interest-only secured loan to our DLF I joint venture that originally was scheduled to mature in March 2012. The loan bears interest at LIBOR plus 500 basis points. The maturity date of the loan has been extended to December 31, 2012. In the second quarter of 2012, the outstanding balance of the loan was reduced to $13.0 million as a result of our acquisition of an office property from the joint venture. We recorded interest income from this loan in interest and other income of $0.1 million and $0.5 million during the three months ended September 30, 2012 and 2011, respectively, and $0.8 million and $0.8 million during the nine months ended September 30, 2012 and 2011, respectively.

During the second quarter of 2012, our DLF II joint venture obtained a $50.0 million, three-year secured mortgage loan from a third party lender, bearing a fixed interest rate of 3.5% on $39.1 million of the loan and a floating interest rate of LIBOR plus 250 basis points on $10.9 million of the loan, which was used by the joint venture to repay a secured loan at maturity to a third party lender.

During the first quarter of 2012, we recorded $1.0 million as our share of impairments of real estate assets on two office properties in our DLF I joint venture, due to a decline in projected occupancy and a change in the assumed holding period of those assets, which reduced the expected future cash flows from the properties.


4.    Investments in and Advances to Affiliates - Continued

Consolidated Affiliates

During the third quarter of 2012, we provided a three-year, $20.8 million interest-only secured loan to our Harborview Plaza joint venture that is scheduled to mature in September 2015, which the joint venture used to repay a secured loan at maturity to a third party lender. This new loan bears interest at LIBOR plus 500 basis points, subject to a LIBOR floor of 0.5%.
Highwoods Realty Limited Partnership [Member]
  
Schedule of Equity Method Investments [Line Items]  
Investments In and Advances To Affiliates
Investments in and Advances to Affiliates

Unconsolidated Affiliates

We have equity interests of up to 50.0% in various joint ventures with unrelated third parties and a secured debt interest in one of those joint ventures, as described below. The following table sets forth the combined, summarized income statements for our unconsolidated joint ventures on the purchase accounting basis:

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2012
 
2011
 
2012
 
2011
Income Statements:
 
 
 
 
 
 
 
Rental and other revenues
$
24,062

 
$
24,618

 
$
72,916

 
$
72,576

Expenses:
 
 
 
 
 
 
 
Rental property and other expenses
11,024

 
10,239

 
33,901

 
31,765

Depreciation and amortization
6,044

 
6,437

 
17,905

 
18,736

Impairments of real estate assets
—

 
—

 
7,180

 
—

Interest expense
4,817

 
5,802

 
15,583

 
17,310

Total expenses
21,885

 
22,478

 
74,569

 
67,811

Income/(loss) before disposition of properties
2,177

 
2,140

 
(1,653
)
 
4,765

Gains on disposition of properties
—

 
—

 
6,275

 
—

Net income
$
2,177

 
$
2,140

 
$
4,622

 
$
4,765

Our share of:
 
 
 
 
 
 
 
Depreciation and amortization of real estate assets
$
1,989

 
$
2,028

 
$
5,684

 
$
6,078

Impairments of real estate assets
$
—

 
$
—

 
$
1,002

 
$
—

Interest expense
$
1,754

 
$
1,944

 
$
5,536

 
$
6,093

Net income
$
925

 
$
448

 
$
1,281

 
$
2,142

 
 
 
 
 
 
 
 
Our share of net income
$
925

 
$
448

 
$
1,281

 
$
2,142

Adjustments for management and other fees
403

 
665

 
1,398

 
1,803

Equity in earnings of unconsolidated affiliates
$
1,328

 
$
1,113

 
$
2,679

 
$
3,945



During the second quarter of 2011, we provided a $38.3 million interest-only secured loan to our DLF I joint venture that originally was scheduled to mature in March 2012. The loan bears interest at LIBOR plus 500 basis points. The maturity date of the loan has been extended to December 31, 2012. In the second quarter of 2012, the outstanding balance of the loan was reduced to $13.0 million as a result of our acquisition of an office property from the joint venture. We recorded interest income from this loan in interest and other income of $0.1 million and $0.5 million during the three months ended September 30, 2012 and 2011, respectively, and $0.8 million and $0.8 million during the nine months ended September 30, 2012 and 2011, respectively.
 
During the second quarter of 2012, our DLF II joint venture obtained a $50.0 million, three-year secured mortgage loan from a third party lender, bearing a fixed interest rate of 3.5% on $39.1 million of the loan and a floating interest rate of LIBOR plus 250 basis points on $10.9 million of the loan, which was used by the joint venture to repay a secured loan at maturity to a third party lender.
 
During the first quarter of 2012, we recorded $1.0 million as our share of impairments of real estate assets on two office properties in our DLF I joint venture, due to a decline in projected occupancy and a change in the assumed holding period of those assets, which reduced the expected future cash flows from the properties.

4.    Investments in and Advances to Affiliates - Continued

Consolidated Affiliates

During the third quarter of 2012, we provided a three-year, $20.8 million interest-only secured loan to our Harborview Plaza joint venture that is scheduled to mature in September 2015, which the joint venture used to repay a secured loan at maturity to a third party lender. This new loan bears interest at LIBOR plus 500 basis points, subject to a LIBOR floor of 0.5%.