XML 55 R11.htm IDEA: XBRL DOCUMENT v2.4.0.6
Investments In and Advances To Affiliates
 3 Months Ended
Mar. 31, 2013
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 that are accounted for using the equity method of accounting because we have the ability to exercise significant influence over their operating and financing policies. The following table sets forth combined summarized financial information for our unconsolidated affiliates:

 
Three Months Ended March 31,
 
2013
 
2012
Income Statements:
 
 
 
Rental and other revenues
$
23,516

 
$
24,820

Expenses:
 
 
 
Rental property and other expenses
11,209

 
11,416

Depreciation and amortization
6,146

 
6,565

Impairments of real estate assets
4,790

 
7,180

Interest expense
4,739

 
5,830

Total expenses
26,884

 
30,991

Loss before disposition of properties
(3,368
)
 
(6,171
)
Gains on disposition of properties
24

 
—

Net loss
$
(3,344
)
 
$
(6,171
)
Our share of:
 
 
 
Depreciation and amortization
$
2,015

 
$
2,098

Impairments of real estate assets
$
1,020

 
$
1,002

Interest expense
$
1,752

 
$
1,980

Gains on disposition of depreciable properties
$
421

 
$
—

Net income/(loss)
$
4

 
$
(795
)
 
 
 
 
Our share of net income/(loss)
$
4

 
$
(795
)
Adjustments for management and other fees
432

 
633

Equity in earnings/(losses) of unconsolidated affiliates
$
436

 
$
(162
)


During the first quarter of 2013, our DLF II joint venture sold an office property to unrelated third parties for a sale price of $10.1 million (after $0.3 million in closing credits to buyer for free rent) and recorded a gain on disposition of property of less than $0.1 million. As our cost basis is different from the basis reflected at the joint venture level, we recorded $0.4 million of gain through equity in earnings of unconsolidated affiliates.

During the first quarter of 2013, our DLF I joint venture recorded impairments of real estate assets of $4.8 million on an office property located in Atlanta, GA and an office property located in Charlotte, NC. We recorded $1.0 million as our share of this impairment charge through equity in earnings of unconsolidated affiliates.  These impairments were due to a change in the assumed timing of future dispositions and leasing assumptions, which reduced the future expected cash flows from the properties.
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 that are accounted for using the equity method of accounting because we have the ability to exercise significant influence over their operating and financing policies. The following table sets forth combined summarized financial information for our unconsolidated affiliates:

 
Three Months Ended March 31,
 
2013
 
2012
Income Statements:
 
 
 
Rental and other revenues
$
22,479

 
$
23,797

Expenses:
 
 
 
Rental property and other expenses
10,608

 
10,801

Depreciation and amortization
5,835

 
6,254

Impairments of real estate assets
4,790

 
7,180

Interest expense
4,578

 
5,663

Total expenses
25,811

 
29,898

Loss before disposition of properties
(3,332
)
 
(6,101
)
Gains on disposition of properties
24

 
—

Net loss
$
(3,308
)
 
$
(6,101
)
Our share of:
 
 
 
Depreciation and amortization
$
1,976

 
$
2,059

Impairments of real estate assets
$
1,020

 
$
1,002

Interest expense
$
1,732

 
$
1,959

Gains on disposition of depreciable properties
$
421

 
$
—

Net income/(loss)
$
8

 
$
(786
)
 
 
 
 
Our share of net income/(loss)
$
8

 
$
(786
)
Adjustments for management and other fees
375

 
626

Equity in earnings/(losses) of unconsolidated affiliates
$
383

 
$
(160
)


During the first quarter of 2013, our DLF II joint venture sold an office property to unrelated third parties for a sale price of $10.1 million (after $0.3 million in closing credits to buyer for free rent) and recorded a gain on disposition of property of less than $0.1 million. As our cost basis is different from the basis reflected at the joint venture level, we recorded $0.4 million of gain through equity in earnings of unconsolidated affiliates.

During the first quarter of 2013, our DLF I joint venture recorded impairments of real estate assets of $4.8 million on an office property located in Atlanta, GA and an office property located in Charlotte, NC.  We recorded $1.0 million as our share of this impairment charge through equity in earnings of unconsolidated affiliates.  These impairments were due to a change in the assumed timing of future dispositions and leasing assumptions, which reduced the future expected cash flows from the properties.