Investments In and Advances To Affiliates

6 Months Ended

Jun. 30, 2013

Equity Method Investments and Joint Ventures [Abstract]

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 financial policies.

The following table sets forth combined summarized financial information for the Company's unconsolidated affiliates:

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013			2012
Income Statements:
Rental and other revenues	$	23,935	$	26,049	$	47,451		$	50,869
Expenses:
Rental property and other expenses	11,739		12,666		22,948			24,082
Depreciation and amortization	6,227		5,919		12,373			12,484
Impairments of real estate assets	—		—		4,790			7,180
Interest expense	4,689		5,267		9,428			11,097
Total expenses	22,655		23,852		49,539			54,843
Income/(loss) before disposition of properties	1,280		2,197		(2,088		)	(3,974		)
Gains on disposition of properties	43		6,275		67			6,275
Net income/(loss)	$	1,323	$	8,472	$	(2,021	)	$	2,301
The Company's share of:
Depreciation and amortization	$	2,092	$	1,675	$	4,107		$	3,773
Impairments of real estate assets	$	—	$	—	$	1,020		$	1,002
Interest expense	$	1,732	$	1,843	$	3,484		$	3,823
Gains on disposition of properties	$	10	$	—	$	431		$	—
Net income	$	571	$	1,133	$	575		$	338
The Company's share of net income	$	571	$	1,133	$	575		$	338
Adjustments for management and other fees	342		375		774			1,008
Equity in earnings of unconsolidated affiliates	$	913	$	1,508	$	1,349		$	1,346

4.    Investments in and Advances to Affiliates - Continued

The following table sets forth combined summarized financial information for the Operating Partnership's unconsolidated affiliates:

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013			2012
Income Statements:
Rental and other revenues	$	22,892	$	25,057	$	45,371		$	48,854
Expenses:
Rental property and other expenses	11,087		12,076		21,695			22,877
Depreciation and amortization	5,915		5,607		11,750			11,861
Impairments of real estate assets	—		—		4,790			7,180
Interest expense	4,532		5,103		9,110			10,766
Total expenses	21,534		22,786		47,345			52,684
Income/(loss) before disposition of properties	1,358		2,271		(1,974		)	(3,830		)
Gains on disposition of properties	43		6,275		67			6,275
Net income/(loss)	$	1,401	$	8,546	$	(1,907	)	$	2,445
The Operating Partnership's share of:
Depreciation and amortization	$	2,053	$	1,636	$	4,029		$	3,695
Impairments of real estate assets	$	—	$	—	$	1,020		$	1,002
Interest expense	$	1,712	$	1,823	$	3,444		$	3,782
Gains on disposition of properties	$	10	$	—	$	431		$	—
Net income	$	582	$	1,142	$	590		$	356
The Operating Partnership's share of net income	$	582	$	1,142	$	590		$	356
Adjustments for management and other fees	334		369		709			995
Equity in earnings of unconsolidated affiliates	$	916	$	1,511	$	1,299		$	1,351

4.    Investments in and Advances to Affiliates - Continued

Highwoods DLF 98/29, LLC ("DLF I")

During the second quarter of 2013, DLF I sold an office property to an unrelated third party for a sale price of $5.9 million (after $0.1 million in closing credits to buyer for free rent) and recorded a gain on disposition of discontinued operations of less than $0.1 million. We recorded less than $0.1 million as our share of this gain through equity in earnings of unconsolidated affiliates.

During the first quarter of 2013, DLF I recorded impairments of real estate assets of $4.8 million on an office property in Atlanta, GA and an office property 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 DLF 97/26 DLF 99/32, LP ("DLF II")

During the first quarter of 2013, DLF II 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.