Maryland | 001-13100 | 56-1871668 | ||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification Number) |
North Carolina | 000-21731 | 56-1869557 | ||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification Number) |
• | combined reports better reflect how management and investors view the business as a single operating unit; |
• | combined reports enhance investors' understanding of the Company and the Operating Partnership by enabling them to view the business as a whole and in the same manner as management; |
• | combined reports are more efficient for the Company and the Operating Partnership and result in savings in time, effort and expense; and |
• | combined reports are more efficient for investors by reducing duplicative disclosure and providing a single document for their review. |
• | Consolidated Financial Statements; |
• | Note 12 to Consolidated Financial Statements - Earnings Per Share and Per Unit; |
• | Item 4 - Controls and Procedures; and |
• | Item 6 - Certifications of CEO and CFO Pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act. |
Page | |
PART I - FINANCIAL INFORMATION | |
ITEM 1. FINANCIAL STATEMENTS (unaudited) | |
ITEM 4. CONTROLS AND PROCEDURES | |
PART II - OTHER INFORMATION | |
ITEM 6. EXHIBITS |
September 30, 2018 | December 31, 2017 | ||||||
Assets: | |||||||
Real estate assets, at cost: | |||||||
Land | $ | 493,426 | $ | 485,956 | |||
Buildings and tenant improvements | 4,671,689 | 4,590,490 | |||||
Development in-process | 166,849 | 88,452 | |||||
Land held for development | 125,488 | 74,765 | |||||
5,457,452 | 5,239,663 | ||||||
Less-accumulated depreciation | (1,280,910 | ) | (1,202,424 | ) | |||
Net real estate assets | 4,176,542 | 4,037,239 | |||||
Real estate and other assets, net, held for sale | — | 14,118 | |||||
Cash and cash equivalents | 5,324 | 3,272 | |||||
Restricted cash | 6,955 | 85,061 | |||||
Accounts receivable, net of allowance of $1,269 and $753, respectively | 24,187 | 24,397 | |||||
Mortgages and notes receivable, net of allowance of $52 and $72, respectively | 5,659 | 6,425 | |||||
Accrued straight-line rents receivable, net of allowance of $726 and $819, respectively | 218,111 | 200,131 | |||||
Investments in and advances to unconsolidated affiliates | 23,371 | 23,897 | |||||
Deferred leasing costs, net of accumulated amortization of $147,588 and $143,512, respectively | 193,796 | 200,679 | |||||
Prepaid expenses and other assets, net of accumulated depreciation of $20,033 and $19,092, respectively | 34,466 | 28,572 | |||||
Total Assets | $ | 4,688,411 | $ | 4,623,791 | |||
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity: | |||||||
Mortgages and notes payable, net | $ | 2,087,421 | $ | 2,014,333 | |||
Accounts payable, accrued expenses and other liabilities | 229,912 | 228,215 | |||||
Total Liabilities | 2,317,333 | 2,242,548 | |||||
Commitments and contingencies | |||||||
Noncontrolling interests in the Operating Partnership | 132,447 | 144,009 | |||||
Equity: | |||||||
Preferred Stock, $.01 par value, 50,000,000 authorized shares; | |||||||
8.625% Series A Cumulative Redeemable Preferred Shares (liquidation preference $1,000 per share), 28,887 and 28,892 shares issued and outstanding, respectively | 28,887 | 28,892 | |||||
Common Stock, $.01 par value, 200,000,000 authorized shares; | |||||||
103,488,326 and 103,266,875 shares issued and outstanding, respectively | 1,035 | 1,033 | |||||
Additional paid-in capital | 2,948,320 | 2,929,399 | |||||
Distributions in excess of net income available for common stockholders | (774,484 | ) | (747,344 | ) | |||
Accumulated other comprehensive income | 17,489 | 7,838 | |||||
Total Stockholders’ Equity | 2,221,247 | 2,219,818 | |||||
Noncontrolling interests in consolidated affiliates | 17,384 | 17,416 | |||||
Total Equity | 2,238,631 | 2,237,234 | |||||
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity | $ | 4,688,411 | $ | 4,623,791 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Rental and other revenues | $ | 179,417 | $ | 180,185 | $ | 538,647 | $ | 526,876 | |||||||
Operating expenses: | |||||||||||||||
Rental property and other expenses | 61,153 | 61,234 | 180,248 | 177,484 | |||||||||||
Depreciation and amortization | 57,661 | 56,973 | 171,923 | 168,934 | |||||||||||
Impairments of real estate assets | — | 1,445 | — | 1,445 | |||||||||||
General and administrative | 9,551 | 9,247 | 30,869 | 29,787 | |||||||||||
Total operating expenses | 128,365 | 128,899 | 383,040 | 377,650 | |||||||||||
Interest expense: | |||||||||||||||
Contractual | 16,719 | 16,395 | 51,579 | 48,763 | |||||||||||
Amortization of debt issuance costs | 718 | 796 | 2,126 | 2,445 | |||||||||||
17,437 | 17,191 | 53,705 | 51,208 | ||||||||||||
Other income: | |||||||||||||||
Interest and other income | 818 | 558 | 1,735 | 1,806 | |||||||||||
Gains on debt extinguishment | — | — | — | 826 | |||||||||||
818 | 558 | 1,735 | 2,632 | ||||||||||||
Income before disposition of investment properties and activity in unconsolidated affiliates | 34,433 | 34,653 | 103,637 | 100,650 | |||||||||||
Gains on disposition of property | 3 | 19,849 | 16,975 | 25,181 | |||||||||||
Equity in earnings of unconsolidated affiliates | 573 | 5,047 | 1,641 | 6,757 | |||||||||||
Net income | 35,009 | 59,549 | 122,253 | 132,588 | |||||||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | (902 | ) | (1,571 | ) | (3,171 | ) | (3,502 | ) | |||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | (324 | ) | (315 | ) | (918 | ) | (914 | ) | |||||||
Dividends on Preferred Stock | (623 | ) | (623 | ) | (1,869 | ) | (1,869 | ) | |||||||
Net income available for common stockholders | $ | 33,160 | $ | 57,040 | $ | 116,295 | $ | 126,303 | |||||||
Earnings per Common Share – basic: | |||||||||||||||
Net income available for common stockholders | $ | 0.32 | $ | 0.55 | $ | 1.12 | $ | 1.23 | |||||||
Weighted average Common Shares outstanding – basic | 103,471 | 103,237 | 103,408 | 102,489 | |||||||||||
Earnings per Common Share – diluted: | |||||||||||||||
Net income available for common stockholders | $ | 0.32 | $ | 0.55 | $ | 1.12 | $ | 1.23 | |||||||
Weighted average Common Shares outstanding – diluted | 106,333 | 106,145 | 106,256 | 105,402 | |||||||||||
Dividends declared per Common Share | $ | 0.4625 | $ | 0.4400 | $ | 1.3875 | $ | 1.3200 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Comprehensive income: | |||||||||||||||
Net income | $ | 35,009 | $ | 59,549 | $ | 122,253 | $ | 132,588 | |||||||
Other comprehensive income/(loss): | |||||||||||||||
Unrealized gains/(losses) on cash flow hedges | 2,187 | (347 | ) | 10,926 | (31 | ) | |||||||||
Amortization of cash flow hedges | (654 | ) | 211 | (1,275 | ) | 992 | |||||||||
Total other comprehensive income/(loss) | 1,533 | (136 | ) | 9,651 | 961 | ||||||||||
Total comprehensive income | 36,542 | 59,413 | 131,904 | 133,549 | |||||||||||
Less-comprehensive (income) attributable to noncontrolling interests | (1,226 | ) | (1,886 | ) | (4,089 | ) | (4,416 | ) | |||||||
Comprehensive income attributable to common stockholders | $ | 35,316 | $ | 57,527 | $ | 127,815 | $ | 129,133 |
Number of Common Shares | Common Stock | Series A Cumulative Redeemable Preferred Shares | Additional Paid-In Capital | Accumulated Other Compre-hensive Income | Non-controlling Interests in Consolidated Affiliates | Distributions in Excess of Net Income Available for Common Stockholders | Total | |||||||||||||||||||||||
Balance at December 31, 2017 | 103,266,875 | $ | 1,033 | $ | 28,892 | $ | 2,929,399 | $ | 7,838 | $ | 17,416 | $ | (747,344 | ) | $ | 2,237,234 | ||||||||||||||
Issuances of Common Stock, net of issuance costs and tax withholdings | 22,815 | — | — | 1,476 | — | — | — | 1,476 | ||||||||||||||||||||||
Conversions of Common Units to Common Stock | 26,196 | — | — | 1,231 | — | — | — | 1,231 | ||||||||||||||||||||||
Dividends on Common Stock | — | — | — | — | — | (143,435 | ) | (143,435 | ) | |||||||||||||||||||||
Dividends on Preferred Stock | — | — | — | — | — | (1,869 | ) | (1,869 | ) | |||||||||||||||||||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | — | — | 9,607 | — | — | — | 9,607 | |||||||||||||||||||||||
Distributions to noncontrolling interests in consolidated affiliates | — | — | — | — | (950 | ) | — | (950 | ) | |||||||||||||||||||||
Issuances of restricted stock | 172,440 | — | — | — | — | — | — | — | ||||||||||||||||||||||
Redemptions/repurchases of Preferred Stock | — | (5 | ) | — | — | — | — | (5 | ) | |||||||||||||||||||||
Share-based compensation expense, net of forfeitures | — | 2 | — | 6,607 | — | — | — | 6,609 | ||||||||||||||||||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | — | — | — | — | — | (3,171 | ) | (3,171 | ) | |||||||||||||||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | — | — | — | — | 918 | (918 | ) | — | ||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 122,253 | 122,253 | |||||||||||||||||||||||
Other comprehensive income | — | — | — | 9,651 | — | — | 9,651 | |||||||||||||||||||||||
Total comprehensive income | 131,904 | |||||||||||||||||||||||||||||
Balance at September 30, 2018 | 103,488,326 | $ | 1,035 | $ | 28,887 | $ | 2,948,320 | $ | 17,489 | $ | 17,384 | $ | (774,484 | ) | $ | 2,238,631 |
Number of Common Shares | Common Stock | Series A Cumulative Redeemable Preferred Shares | Additional Paid-In Capital | Accumulated Other Compre-hensive Income | Non-controlling Interests in Consolidated Affiliates | Distributions in Excess of Net Income Available for Common Stockholders | Total | |||||||||||||||||||||||
Balance at December 31, 2016 | 101,665,554 | $ | 1,017 | $ | 28,920 | $ | 2,850,881 | $ | 4,949 | $ | 17,961 | $ | (749,412 | ) | $ | 2,154,316 | ||||||||||||||
Issuances of Common Stock, net of issuance costs and tax withholdings | 1,464,638 | 15 | — | 70,292 | — | — | — | 70,307 | ||||||||||||||||||||||
Conversions of Common Units to Common Stock | 8,000 | — | — | 408 | — | — | — | 408 | ||||||||||||||||||||||
Dividends on Common Stock | — | — | — | — | — | (135,375 | ) | (135,375 | ) | |||||||||||||||||||||
Dividends on Preferred Stock | — | — | — | — | — | (1,869 | ) | (1,869 | ) | |||||||||||||||||||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | — | — | (3,297 | ) | — | — | — | (3,297 | ) | |||||||||||||||||||||
Distributions to noncontrolling interests in consolidated affiliates | — | — | — | — | (1,231 | ) | — | (1,231 | ) | |||||||||||||||||||||
Issuances of restricted stock | 110,748 | — | — | — | — | — | — | — | ||||||||||||||||||||||
Redemptions/repurchases of Preferred Stock | — | (28 | ) | — | — | — | — | (28 | ) | |||||||||||||||||||||
Share-based compensation expense, net of forfeitures | — | — | — | 5,764 | — | — | — | 5,764 | ||||||||||||||||||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | — | — | — | — | — | (3,502 | ) | (3,502 | ) | |||||||||||||||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | — | — | — | — | 914 | (914 | ) | — | ||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 132,588 | 132,588 | |||||||||||||||||||||||
Other comprehensive income | — | — | — | 961 | — | — | 961 | |||||||||||||||||||||||
Total comprehensive income | 133,549 | |||||||||||||||||||||||||||||
Balance at September 30, 2017 | 103,248,940 | $ | 1,032 | $ | 28,892 | $ | 2,924,048 | $ | 5,910 | $ | 17,644 | $ | (758,484 | ) | $ | 2,219,042 |
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
Operating activities: | |||||||
Net income | $ | 122,253 | $ | 132,588 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 171,923 | 168,934 | |||||
Amortization of lease incentives and acquisition-related intangible assets and liabilities | (1,488 | ) | (666 | ) | |||
Share-based compensation expense | 6,609 | 5,764 | |||||
Allowance for losses on accounts and accrued straight-line rents receivable | 791 | 435 | |||||
Accrued interest on mortgages and notes receivable | (336 | ) | (391 | ) | |||
Amortization of debt issuance costs | 2,126 | 2,445 | |||||
Amortization of cash flow hedges | (1,275 | ) | 992 | ||||
Amortization of mortgages and notes payable fair value adjustments | 1,071 | 422 | |||||
Impairments of real estate assets | — | 1,445 | |||||
Gains on debt extinguishment | — | (826 | ) | ||||
Net gains on disposition of property | (16,975 | ) | (25,181 | ) | |||
Equity in earnings of unconsolidated affiliates | (1,641 | ) | (6,757 | ) | |||
Distributions of earnings from unconsolidated affiliates | 1,943 | 4,815 | |||||
Settlement of cash flow hedges | 7,216 | 7,322 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 4,778 | 916 | |||||
Prepaid expenses and other assets | (1,487 | ) | 2,735 | ||||
Accrued straight-line rents receivable | (17,945 | ) | (24,473 | ) | |||
Accounts payable, accrued expenses and other liabilities | 15,395 | (308 | ) | ||||
Net cash provided by operating activities | 292,958 | 270,211 | |||||
Investing activities: | |||||||
Investments in acquired real estate and related intangible assets, net of cash acquired | (50,649 | ) | — | ||||
Investments in development in-process | (130,241 | ) | (121,367 | ) | |||
Investments in tenant improvements and deferred leasing costs | (89,875 | ) | (78,691 | ) | |||
Investments in building improvements | (52,151 | ) | (41,862 | ) | |||
Net proceeds from disposition of real estate assets | 35,441 | 85,538 | |||||
Distributions of capital from unconsolidated affiliates | 105 | 11,670 | |||||
Repayments of mortgages and notes receivable | 1,137 | 2,435 | |||||
Investments in and advances to unconsolidated affiliates | — | (10,063 | ) | ||||
Changes in other investing activities | (4,671 | ) | (5,605 | ) | |||
Net cash used in investing activities | (290,904 | ) | (157,945 | ) | |||
Financing activities: | |||||||
Dividends on Common Stock | (143,435 | ) | (135,375 | ) | |||
Special dividend on Common Stock | — | (81,205 | ) | ||||
Redemptions/repurchases of Preferred Stock | (5 | ) | (28 | ) | |||
Dividends on Preferred Stock | (1,869 | ) | (1,869 | ) | |||
Distributions to noncontrolling interests in the Operating Partnership | (3,895 | ) | (3,742 | ) | |||
Special distribution to noncontrolling interests in the Operating Partnership | — | (2,271 | ) | ||||
Distributions to noncontrolling interests in consolidated affiliates | (950 | ) | (1,231 | ) | |||
Proceeds from the issuance of Common Stock | 3,242 | 75,517 | |||||
Costs paid for the issuance of Common Stock | (95 | ) | (1,244 | ) | |||
Repurchase of shares related to tax withholdings | (1,671 | ) | (3,966 | ) | |||
Borrowings on revolving credit facility | 336,400 | 492,300 | |||||
Repayments of revolving credit facility | (397,400 | ) | (420,300 | ) | |||
Borrowings on mortgages and notes payable | 345,863 | 456,001 | |||||
Repayments of mortgages and notes payable | (211,345 | ) | (507,114 | ) | |||
Payments of debt extinguishment costs | — | (57 | ) | ||||
Changes in debt issuance costs and other financing activities | (2,948 | ) | (3,688 | ) | |||
Net cash used in financing activities | (78,108 | ) | (138,272 | ) | |||
Net decrease in cash and cash equivalents and restricted cash | $ | (76,054 | ) | $ | (26,006 | ) |
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
Net decrease in cash and cash equivalents and restricted cash | $ | (76,054 | ) | $ | (26,006 | ) | |
Cash and cash equivalents and restricted cash at beginning of the period | 88,333 | 78,631 | |||||
Cash and cash equivalents and restricted cash at end of the period | $ | 12,279 | $ | 52,625 |
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
Cash and cash equivalents at end of the period | $ | 5,324 | $ | 4,864 | |||
Restricted cash at end of the period | 6,955 | 47,761 | |||||
Cash and cash equivalents and restricted cash at end of the period | $ | 12,279 | $ | 52,625 |
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
Cash paid for interest, net of amounts capitalized | $ | 56,771 | $ | 50,025 |
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
Unrealized gains/(losses) on cash flow hedges | $ | 10,926 | $ | (31 | ) | ||
Conversions of Common Units to Common Stock | 1,231 | 408 | |||||
Changes in accrued capital expenditures | (10,396 | ) | (6,327 | ) | |||
Write-off of fully depreciated real estate assets | 63,820 | 41,860 | |||||
Write-off of fully amortized leasing costs | 26,660 | 28,343 | |||||
Write-off of fully amortized debt issuance costs | 2,733 | 4,324 | |||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | (9,607 | ) | 3,297 |
September 30, 2018 | December 31, 2017 | ||||||
Assets: | |||||||
Real estate assets, at cost: | |||||||
Land | $ | 493,426 | $ | 485,956 | |||
Buildings and tenant improvements | 4,671,689 | 4,590,490 | |||||
Development in-process | 166,849 | 88,452 | |||||
Land held for development | 125,488 | 74,765 | |||||
5,457,452 | 5,239,663 | ||||||
Less-accumulated depreciation | (1,280,910 | ) | (1,202,424 | ) | |||
Net real estate assets | 4,176,542 | 4,037,239 | |||||
Real estate and other assets, net, held for sale | — | 14,118 | |||||
Cash and cash equivalents | 5,324 | 3,272 | |||||
Restricted cash | 6,955 | 85,061 | |||||
Accounts receivable, net of allowance of $1,269 and $753, respectively | 24,187 | 24,397 | |||||
Mortgages and notes receivable, net of allowance of $52 and $72, respectively | 5,659 | 6,425 | |||||
Accrued straight-line rents receivable, net of allowance of $726 and $819, respectively | 218,111 | 200,131 | |||||
Investments in and advances to unconsolidated affiliates | 23,371 | 23,897 | |||||
Deferred leasing costs, net of accumulated amortization of $147,588 and $143,512, respectively | 193,796 | 200,679 | |||||
Prepaid expenses and other assets, net of accumulated depreciation of $20,033 and $19,092, respectively | 34,466 | 28,572 | |||||
Total Assets | $ | 4,688,411 | $ | 4,623,791 | |||
Liabilities, Redeemable Operating Partnership Units and Capital: | |||||||
Mortgages and notes payable, net | $ | 2,087,421 | $ | 2,014,333 | |||
Accounts payable, accrued expenses and other liabilities | 229,912 | 228,215 | |||||
Total Liabilities | 2,317,333 | 2,242,548 | |||||
Commitments and contingencies | |||||||
Redeemable Operating Partnership Units: | |||||||
Common Units, 2,802,508 and 2,828,704 outstanding, respectively | 132,447 | 144,009 | |||||
Series A Preferred Units (liquidation preference $1,000 per unit), 28,887 and 28,892 units issued and outstanding, respectively | 28,887 | 28,892 | |||||
Total Redeemable Operating Partnership Units | 161,334 | 172,901 | |||||
Capital: | |||||||
Common Units: | |||||||
General partner Common Units, 1,058,820 and 1,056,868 outstanding, respectively | 21,749 | 21,830 | |||||
Limited partner Common Units, 102,020,697 and 101,801,198 outstanding, respectively | 2,153,122 | 2,161,258 | |||||
Accumulated other comprehensive income | 17,489 | 7,838 | |||||
Noncontrolling interests in consolidated affiliates | 17,384 | 17,416 | |||||
Total Capital | 2,209,744 | 2,208,342 | |||||
Total Liabilities, Redeemable Operating Partnership Units and Capital | $ | 4,688,411 | $ | 4,623,791 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Rental and other revenues | $ | 179,417 | $ | 180,185 | $ | 538,647 | $ | 526,876 | |||||||
Operating expenses: | |||||||||||||||
Rental property and other expenses | 61,153 | 61,234 | 180,248 | 177,484 | |||||||||||
Depreciation and amortization | 57,661 | 56,973 | 171,923 | 168,934 | |||||||||||
Impairments of real estate assets | — | 1,445 | — | 1,445 | |||||||||||
General and administrative | 9,551 | 9,247 | 30,869 | 29,787 | |||||||||||
Total operating expenses | 128,365 | 128,899 | 383,040 | 377,650 | |||||||||||
Interest expense: | |||||||||||||||
Contractual | 16,719 | 16,395 | 51,579 | 48,763 | |||||||||||
Amortization of debt issuance costs | 718 | 796 | 2,126 | 2,445 | |||||||||||
17,437 | 17,191 | 53,705 | 51,208 | ||||||||||||
Other income: | |||||||||||||||
Interest and other income | 818 | 558 | 1,735 | 1,806 | |||||||||||
Gains on debt extinguishment | — | — | — | 826 | |||||||||||
818 | 558 | 1,735 | 2,632 | ||||||||||||
Income before disposition of investment properties and activity in unconsolidated affiliates | 34,433 | 34,653 | 103,637 | 100,650 | |||||||||||
Gains on disposition of property | 3 | 19,849 | 16,975 | 25,181 | |||||||||||
Equity in earnings of unconsolidated affiliates | 573 | 5,047 | 1,641 | 6,757 | |||||||||||
Net income | 35,009 | 59,549 | 122,253 | 132,588 | |||||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | (324 | ) | (315 | ) | (918 | ) | (914 | ) | |||||||
Distributions on Preferred Units | (623 | ) | (623 | ) | (1,869 | ) | (1,869 | ) | |||||||
Net income available for common unitholders | $ | 34,062 | $ | 58,611 | $ | 119,466 | $ | 129,805 | |||||||
Earnings per Common Unit – basic: | |||||||||||||||
Net income available for common unitholders | $ | 0.32 | $ | 0.55 | $ | 1.13 | $ | 1.24 | |||||||
Weighted average Common Units outstanding – basic | 105,866 | 105,660 | 105,808 | 104,914 | |||||||||||
Earnings per Common Unit – diluted: | |||||||||||||||
Net income available for common unitholders | $ | 0.32 | $ | 0.55 | $ | 1.13 | $ | 1.24 | |||||||
Weighted average Common Units outstanding – diluted | 105,924 | 105,736 | 105,847 | 104,993 | |||||||||||
Distributions declared per Common Unit | $ | 0.4625 | $ | 0.4400 | $ | 1.3875 | $ | 1.3200 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Comprehensive income: | |||||||||||||||
Net income | $ | 35,009 | $ | 59,549 | $ | 122,253 | $ | 132,588 | |||||||
Other comprehensive income/(loss): | |||||||||||||||
Unrealized gains/(losses) on cash flow hedges | 2,187 | (347 | ) | 10,926 | (31 | ) | |||||||||
Amortization of cash flow hedges | (654 | ) | 211 | (1,275 | ) | 992 | |||||||||
Total other comprehensive income/(loss) | 1,533 | (136 | ) | 9,651 | 961 | ||||||||||
Total comprehensive income | 36,542 | 59,413 | 131,904 | 133,549 | |||||||||||
Less-comprehensive (income) attributable to noncontrolling interests | (324 | ) | (315 | ) | (918 | ) | (914 | ) | |||||||
Comprehensive income attributable to common unitholders | $ | 36,218 | $ | 59,098 | $ | 130,986 | $ | 132,635 |
Common Units | Accumulated Other Comprehensive Income | Noncontrolling Interests in Consolidated Affiliates | Total | ||||||||||||||||
General Partners’ Capital | Limited Partners’ Capital | ||||||||||||||||||
Balance at December 31, 2017 | $ | 21,830 | $ | 2,161,258 | $ | 7,838 | $ | 17,416 | $ | 2,208,342 | |||||||||
Issuances of Common Units, net of issuance costs and tax withholdings | 15 | 1,461 | — | — | 1,476 | ||||||||||||||
Distributions on Common Units | (1,467 | ) | (145,296 | ) | — | — | (146,763 | ) | |||||||||||
Distributions on Preferred Units | (19 | ) | (1,850 | ) | — | — | (1,869 | ) | |||||||||||
Share-based compensation expense, net of forfeitures | 66 | 6,543 | — | — | 6,609 | ||||||||||||||
Distributions to noncontrolling interests in consolidated affiliates | — | — | — | (950 | ) | (950 | ) | ||||||||||||
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner | 110 | 10,885 | — | — | 10,995 | ||||||||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | (9 | ) | (909 | ) | — | 918 | — | ||||||||||||
Comprehensive income: | |||||||||||||||||||
Net income | 1,223 | 121,030 | — | — | 122,253 | ||||||||||||||
Other comprehensive income | — | — | 9,651 | — | 9,651 | ||||||||||||||
Total comprehensive income | 131,904 | ||||||||||||||||||
Balance at September 30, 2018 | $ | 21,749 | $ | 2,153,122 | $ | 17,489 | $ | 17,384 | $ | 2,209,744 |
Common Units | Accumulated Other Comprehensive Income | Noncontrolling Interests in Consolidated Affiliates | Total | ||||||||||||||||
General Partners’ Capital | Limited Partners’ Capital | ||||||||||||||||||
Balance at December 31, 2016 | $ | 21,023 | $ | 2,081,463 | $ | 4,949 | $ | 17,961 | $ | 2,125,396 | |||||||||
Issuances of Common Units, net of issuance costs and tax withholdings | 703 | 69,604 | — | — | 70,307 | ||||||||||||||
Distributions on Common Units | (1,386 | ) | (137,191 | ) | — | — | (138,577 | ) | |||||||||||
Distributions on Preferred Units | (19 | ) | (1,850 | ) | — | — | (1,869 | ) | |||||||||||
Share-based compensation expense, net of forfeitures | 58 | 5,706 | — | — | 5,764 | ||||||||||||||
Distributions to noncontrolling interests in consolidated affiliates | — | — | — | (1,231 | ) | (1,231 | ) | ||||||||||||
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner | (31 | ) | (3,158 | ) | — | — | (3,189 | ) | |||||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | (9 | ) | (905 | ) | — | 914 | — | ||||||||||||
Comprehensive income: | |||||||||||||||||||
Net income | 1,326 | 131,262 | — | — | 132,588 | ||||||||||||||
Other comprehensive income | — | — | 961 | — | 961 | ||||||||||||||
Total comprehensive income | 133,549 | ||||||||||||||||||
Balance at September 30, 2017 | $ | 21,665 | $ | 2,144,931 | $ | 5,910 | $ | 17,644 | $ | 2,190,150 |
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
Operating activities: | |||||||
Net income | $ | 122,253 | $ | 132,588 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 171,923 | 168,934 | |||||
Amortization of lease incentives and acquisition-related intangible assets and liabilities | (1,488 | ) | (666 | ) | |||
Share-based compensation expense | 6,609 | 5,764 | |||||
Allowance for losses on accounts and accrued straight-line rents receivable | 791 | 435 | |||||
Accrued interest on mortgages and notes receivable | (336 | ) | (391 | ) | |||
Amortization of debt issuance costs | 2,126 | 2,445 | |||||
Amortization of cash flow hedges | (1,275 | ) | 992 | ||||
Amortization of mortgages and notes payable fair value adjustments | 1,071 | 422 | |||||
Impairments of real estate assets | — | 1,445 | |||||
Gains on debt extinguishment | — | (826 | ) | ||||
Net gains on disposition of property | (16,975 | ) | (25,181 | ) | |||
Equity in earnings of unconsolidated affiliates | (1,641 | ) | (6,757 | ) | |||
Distributions of earnings from unconsolidated affiliates | 1,943 | 4,815 | |||||
Settlement of cash flow hedges | 7,216 | 7,322 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 4,778 | 916 | |||||
Prepaid expenses and other assets | (1,487 | ) | 2,735 | ||||
Accrued straight-line rents receivable | (17,945 | ) | (24,473 | ) | |||
Accounts payable, accrued expenses and other liabilities | 15,395 | (308 | ) | ||||
Net cash provided by operating activities | 292,958 | 270,211 | |||||
Investing activities: | |||||||
Investments in acquired real estate and related intangible assets, net of cash acquired | (50,649 | ) | — | ||||
Investments in development in-process | (130,241 | ) | (121,367 | ) | |||
Investments in tenant improvements and deferred leasing costs | (89,875 | ) | (78,691 | ) | |||
Investments in building improvements | (52,151 | ) | (41,862 | ) | |||
Net proceeds from disposition of real estate assets | 35,441 | 85,538 | |||||
Distributions of capital from unconsolidated affiliates | 105 | 11,670 | |||||
Repayments of mortgages and notes receivable | 1,137 | 2,435 | |||||
Investments in and advances to unconsolidated affiliates | — | (10,063 | ) | ||||
Changes in other investing activities | (4,671 | ) | (5,605 | ) | |||
Net cash used in investing activities | (290,904 | ) | (157,945 | ) | |||
Financing activities: | |||||||
Distributions on Common Units | (146,763 | ) | (138,577 | ) | |||
Special distribution on Common Units | — | (83,149 | ) | ||||
Redemptions/repurchases of Preferred Units | (5 | ) | (28 | ) | |||
Distributions on Preferred Units | (1,869 | ) | (1,869 | ) | |||
Distributions to noncontrolling interests in consolidated affiliates | (950 | ) | (1,231 | ) | |||
Proceeds from the issuance of Common Units | 3,242 | 75,517 | |||||
Costs paid for the issuance of Common Units | (95 | ) | (1,244 | ) | |||
Repurchase of units related to tax withholdings | (1,671 | ) | (3,966 | ) | |||
Borrowings on revolving credit facility | 336,400 | 492,300 | |||||
Repayments of revolving credit facility | (397,400 | ) | (420,300 | ) | |||
Borrowings on mortgages and notes payable | 345,863 | 456,001 | |||||
Repayments of mortgages and notes payable | (211,345 | ) | (507,114 | ) | |||
Payments of debt extinguishment costs | — | (57 | ) | ||||
Changes in debt issuance costs and other financing activities | (3,515 | ) | (4,555 | ) | |||
Net cash used in financing activities | (78,108 | ) | (138,272 | ) | |||
Net decrease in cash and cash equivalents and restricted cash | $ | (76,054 | ) | $ | (26,006 | ) |
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
Net decrease in cash and cash equivalents and restricted cash | $ | (76,054 | ) | $ | (26,006 | ) | |
Cash and cash equivalents and restricted cash at beginning of the period | 88,333 | 78,631 | |||||
Cash and cash equivalents and restricted cash at end of the period | $ | 12,279 | $ | 52,625 |
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
Cash and cash equivalents at end of the period | $ | 5,324 | $ | 4,864 | |||
Restricted cash at end of the period | 6,955 | 47,761 | |||||
Cash and cash equivalents and restricted cash at end of the period | $ | 12,279 | $ | 52,625 |
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
Cash paid for interest, net of amounts capitalized | $ | 56,771 | $ | 50,025 |
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
Unrealized gains/(losses) on cash flow hedges | $ | 10,926 | $ | (31 | ) | ||
Changes in accrued capital expenditures | (10,396 | ) | (6,327 | ) | |||
Write-off of fully depreciated real estate assets | 63,820 | 41,860 | |||||
Write-off of fully amortized leasing costs | 26,660 | 28,343 | |||||
Write-off of fully amortized debt issuance costs | 2,733 | 4,324 | |||||
Adjustment of Redeemable Common Units to fair value | (11,562 | ) | 2,649 |
• | An entity need not reassess whether any expired or existing contracts are or contain leases; |
• | An entity need not reassess the lease classification for any expired or existing leases; and |
• | An entity need not reassess initial direct costs for any existing leases. |
September 30, 2018 | December 31, 2017 | ||||||
Assets: | |||||||
Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets) | $ | 341,384 | $ | 344,191 | |||
Less accumulated amortization | (147,588 | ) | (143,512 | ) | |||
$ | 193,796 | $ | 200,679 | ||||
Liabilities (in accounts payable, accrued expenses and other liabilities): | |||||||
Acquisition-related below market lease liabilities | $ | 58,698 | $ | 59,947 | |||
Less accumulated amortization | (31,519 | ) | (28,214 | ) | |||
$ | 27,179 | $ | 31,733 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization) | $ | 8,969 | $ | 10,130 | $ | 27,671 | $ | 30,882 | |||||||
Amortization of lease incentives (in rental and other revenues) | $ | 452 | $ | 444 | $ | 1,357 | $ | 1,284 | |||||||
Amortization of acquisition-related intangible assets (in rental and other revenues) | $ | 415 | $ | 671 | $ | 1,292 | $ | 2,382 | |||||||
Amortization of acquisition-related intangible assets (in rental property and other expenses) | $ | 140 | $ | 140 | $ | 416 | $ | 416 | |||||||
Amortization of acquisition-related below market lease liabilities (in rental and other revenues) | $ | (1,535 | ) | $ | (1,576 | ) | $ | (4,553 | ) | $ | (4,748 | ) |
Amortization of Deferred Leasing Costs and Acquisition-Related Intangible Assets (in Depreciation and Amortization) | Amortization of Lease Incentives (in Rental and Other Revenues) | Amortization of Acquisition-Related Intangible Assets (in Rental and Other Revenues) | Amortization of Acquisition-Related Intangible Assets (in Rental Property and Other Expenses) | Amortization of Acquisition-Related Below Market Lease Liabilities (in Rental and Other Revenues) | ||||||||||||||||
October 1 through December 31, 2018 | $ | 9,395 | $ | 453 | $ | 369 | $ | 136 | $ | (1,442 | ) | |||||||||
2019 | 34,011 | 1,647 | 1,273 | 553 | (5,425 | ) | ||||||||||||||
2020 | 29,391 | 1,360 | 959 | 518 | (5,169 | ) | ||||||||||||||
2021 | 24,873 | 1,132 | 632 | — | (4,362 | ) | ||||||||||||||
2022 | 20,584 | 915 | 462 | — | (3,258 | ) | ||||||||||||||
Thereafter | 58,398 | 5,327 | 1,408 | — | (7,523 | ) | ||||||||||||||
$ | 176,652 | $ | 10,834 | $ | 5,103 | $ | 1,207 | $ | (27,179 | ) | ||||||||||
Weighted average remaining amortization periods as of September 30, 2018 (in years) | 7.4 | 10.1 | 6.5 | 2.2 | 6.1 |
September 30, 2018 | December 31, 2017 | ||||||
Secured indebtedness | $ | 97,636 | $ | 98,981 | |||
Unsecured indebtedness | 1,999,439 | 1,923,513 | |||||
Less-unamortized debt issuance costs | (9,654 | ) | (8,161 | ) | |||
Total mortgages and notes payable, net | $ | 2,087,421 | $ | 2,014,333 |
• | available cash and cash equivalents; |
• | cash flows from operating activities; |
• | issuance of debt securities by the Operating Partnership (some of which debt securities may be hedged to a fixed interest rate pursuant to the forward-starting swaps referred to in Note 6); |
• | issuance of secured debt; |
• | bank term loans; |
• | borrowings under our revolving credit facility; |
• | issuance of equity securities by the Company or the Operating Partnership; and |
• | the disposition of non-core assets. |
6. | Derivative Financial Instruments |
September 30, 2018 | December 31, 2017 | ||||||
Derivatives: | |||||||
Derivatives designated as cash flow hedges in prepaid expenses and other assets: | |||||||
Interest rate swaps | $ | 4,773 | $ | 1,286 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Derivatives Designated as Cash Flow Hedges: | |||||||||||||||
Amount of unrealized gains/(losses) recognized in accumulated other comprehensive income on derivatives (effective portion): | |||||||||||||||
Interest rate swaps | $ | 2,187 | $ | (347 | ) | $ | 10,926 | $ | (31 | ) | |||||
Amount of (gains)/losses reclassified out of accumulated other comprehensive income into contractual interest expense (effective portion): | |||||||||||||||
Interest rate swaps | $ | (654 | ) | $ | 211 | $ | (1,275 | ) | $ | 992 |
7. | Noncontrolling Interests |
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
Beginning noncontrolling interests in the Operating Partnership | $ | 144,009 | $ | 144,802 | |||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | (9,607 | ) | 3,297 | ||||
Conversions of Common Units to Common Stock | (1,231 | ) | (408 | ) | |||
Net income attributable to noncontrolling interests in the Operating Partnership | 3,171 | 3,502 | |||||
Distributions to noncontrolling interests in the Operating Partnership | (3,895 | ) | (3,742 | ) | |||
Total noncontrolling interests in the Operating Partnership | $ | 132,447 | $ | 147,451 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income available for common stockholders | $ | 33,160 | $ | 57,040 | $ | 116,295 | $ | 126,303 | |||||||
Increase in additional paid in capital from conversions of Common Units to Common Stock | 147 | 103 | 1,231 | 408 | |||||||||||
Change from net income available for common stockholders and transfers from noncontrolling interests | $ | 33,307 | $ | 57,143 | $ | 117,526 | $ | 126,711 |
8. | Disclosure About Fair Value of Financial Instruments |
8. | Disclosure About Fair Value of Financial Instruments - Continued |
Level 1 | Level 2 | |||||||||||
Total | Quoted Prices in Active Markets for Identical Assets or Liabilities | Significant Observable Inputs | ||||||||||
Fair Value at September 30, 2018: | ||||||||||||
Assets: | ||||||||||||
Mortgages and notes receivable, at fair value (1) | $ | 5,659 | $ | — | $ | 5,659 | ||||||
Interest rate swaps (in prepaid expenses and other assets) | 4,773 | — | 4,773 | |||||||||
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) | 2,135 | 2,135 | — | |||||||||
Total Assets | $ | 12,567 | $ | 2,135 | $ | 10,432 | ||||||
Noncontrolling Interests in the Operating Partnership | $ | 132,447 | $ | 132,447 | $ | — | ||||||
Liabilities: | ||||||||||||
Mortgages and notes payable, net, at fair value (1) | $ | 2,049,292 | $ | — | $ | 2,049,292 | ||||||
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 2,135 | 2,135 | — | |||||||||
Total Liabilities | $ | 2,051,427 | $ | 2,135 | $ | 2,049,292 |
Fair Value at December 31, 2017: | ||||||||||||
Assets: | ||||||||||||
Mortgages and notes receivable, at fair value (1) | $ | 6,425 | $ | — | $ | 6,425 | ||||||
Interest rate swaps (in prepaid expenses and other assets) | 1,286 | — | 1,286 | |||||||||
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) | 2,388 | 2,388 | — | |||||||||
Total Assets | $ | 10,099 | $ | 2,388 | $ | 7,711 | ||||||
Noncontrolling Interests in the Operating Partnership | $ | 144,009 | $ | 144,009 | $ | — | ||||||
Liabilities: | ||||||||||||
Mortgages and notes payable, net, at fair value (1) | $ | 2,015,689 | $ | — | $ | 2,015,689 | ||||||
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 2,388 | 2,388 | — | |||||||||
Total Liabilities | $ | 2,018,077 | $ | 2,388 | $ | 2,015,689 |
9. | Share-Based Payments |
10. | Accumulated Other Comprehensive Income |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Cash flow hedges: | |||||||||||||||
Beginning balance | $ | 15,956 | $ | 6,046 | $ | 7,838 | $ | 4,949 | |||||||
Unrealized gains/(losses) on cash flow hedges | 2,187 | (347 | ) | 10,926 | (31 | ) | |||||||||
Amortization of cash flow hedges (1) | (654 | ) | 211 | (1,275 | ) | 992 | |||||||||
Total accumulated other comprehensive income | $ | 17,489 | $ | 5,910 | $ | 17,489 | $ | 5,910 |
11. | Real Estate and Other Assets Held For Sale |
September 30, 2018 | December 31, 2017 | ||||||
Assets: | |||||||
Land | $ | — | $ | 870 | |||
Buildings and tenant improvements | — | 21,318 | |||||
Land held for development | — | 355 | |||||
Less-accumulated depreciation | — | (9,304 | ) | ||||
Net real estate assets | — | 13,239 | |||||
Accrued straight-line rents receivable | — | 591 | |||||
Deferred leasing costs, net | — | 253 | |||||
Prepaid expenses and other assets | — | 35 | |||||
Real estate and other assets, net, held for sale | $ | — | $ | 14,118 |
12. | Earnings Per Share and Per Unit |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Earnings per Common Share - basic: | |||||||||||||||
Numerator: | |||||||||||||||
Net income | $ | 35,009 | $ | 59,549 | $ | 122,253 | $ | 132,588 | |||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | (902 | ) | (1,571 | ) | (3,171 | ) | (3,502 | ) | |||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | (324 | ) | (315 | ) | (918 | ) | (914 | ) | |||||||
Dividends on Preferred Stock | (623 | ) | (623 | ) | (1,869 | ) | (1,869 | ) | |||||||
Net income available for common stockholders | $ | 33,160 | $ | 57,040 | $ | 116,295 | $ | 126,303 | |||||||
Denominator: | |||||||||||||||
Denominator for basic earnings per Common Share – weighted average shares | 103,471 | 103,237 | 103,408 | 102,489 | |||||||||||
Net income available for common stockholders | $ | 0.32 | $ | 0.55 | $ | 1.12 | $ | 1.23 | |||||||
Earnings per Common Share - diluted: | |||||||||||||||
Numerator: | |||||||||||||||
Net income | $ | 35,009 | $ | 59,549 | $ | 122,253 | $ | 132,588 | |||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | (324 | ) | (315 | ) | (918 | ) | (914 | ) | |||||||
Dividends on Preferred Stock | (623 | ) | (623 | ) | (1,869 | ) | (1,869 | ) | |||||||
Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership | $ | 34,062 | $ | 58,611 | $ | 119,466 | $ | 129,805 | |||||||
Denominator: | |||||||||||||||
Denominator for basic earnings per Common Share – weighted average shares | 103,471 | 103,237 | 103,408 | 102,489 | |||||||||||
Add: | |||||||||||||||
Stock options using the treasury method | 58 | 76 | 39 | 79 | |||||||||||
Noncontrolling interests Common Units | 2,804 | 2,832 | 2,809 | 2,834 | |||||||||||
Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions (1) | 106,333 | 106,145 | 106,256 | 105,402 | |||||||||||
Net income available for common stockholders | $ | 0.32 | $ | 0.55 | $ | 1.12 | $ | 1.23 |
(1) | Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable. |
12. | Earnings Per Share and Per Unit - Continued |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Earnings per Common Unit - basic: | |||||||||||||||
Numerator: | |||||||||||||||
Net income | $ | 35,009 | $ | 59,549 | $ | 122,253 | $ | 132,588 | |||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | (324 | ) | (315 | ) | (918 | ) | (914 | ) | |||||||
Distributions on Preferred Units | (623 | ) | (623 | ) | (1,869 | ) | (1,869 | ) | |||||||
Net income available for common unitholders | $ | 34,062 | $ | 58,611 | $ | 119,466 | $ | 129,805 | |||||||
Denominator: | |||||||||||||||
Denominator for basic earnings per Common Unit – weighted average units | 105,866 | 105,660 | 105,808 | 104,914 | |||||||||||
Net income available for common unitholders | $ | 0.32 | $ | 0.55 | $ | 1.13 | $ | 1.24 | |||||||
Earnings per Common Unit - diluted: | |||||||||||||||
Numerator: | |||||||||||||||
Net income | $ | 35,009 | $ | 59,549 | $ | 122,253 | $ | 132,588 | |||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | (324 | ) | (315 | ) | (918 | ) | (914 | ) | |||||||
Distributions on Preferred Units | (623 | ) | (623 | ) | (1,869 | ) | (1,869 | ) | |||||||
Net income available for common unitholders | $ | 34,062 | $ | 58,611 | $ | 119,466 | $ | 129,805 | |||||||
Denominator: | |||||||||||||||
Denominator for basic earnings per Common Unit – weighted average units | 105,866 | 105,660 | 105,808 | 104,914 | |||||||||||
Add: | |||||||||||||||
Stock options using the treasury method | 58 | 76 | 39 | 79 | |||||||||||
Denominator for diluted earnings per Common Unit – adjusted weighted average units and assumed conversions (1) | 105,924 | 105,736 | 105,847 | 104,993 | |||||||||||
Net income available for common unitholders | $ | 0.32 | $ | 0.55 | $ | 1.13 | $ | 1.24 |
(1) | Includes all unvested restricted stock where distributions on such restricted stock are non-forfeitable. |
13. | Segment Information |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Rental and Other Revenues: | |||||||||||||||
Office: | |||||||||||||||
Atlanta | $ | 35,375 | $ | 36,471 | $ | 105,635 | $ | 106,027 | |||||||
Greensboro | 5,349 | 5,370 | 16,753 | 15,956 | |||||||||||
Memphis | 10,121 | 11,459 | 30,228 | 35,077 | |||||||||||
Nashville | 29,927 | 28,945 | 91,319 | 81,471 | |||||||||||
Orlando | 13,352 | 13,309 | 40,103 | 38,183 | |||||||||||
Pittsburgh | 14,982 | 14,719 | 45,587 | 44,420 | |||||||||||
Raleigh | 30,432 | 30,524 | 89,518 | 90,167 | |||||||||||
Richmond | 11,262 | 11,152 | 33,204 | 33,200 | |||||||||||
Tampa | 25,460 | 25,072 | 76,726 | 72,578 | |||||||||||
Total Office Segment | 176,260 | 177,021 | 529,073 | 517,079 | |||||||||||
Other | 3,157 | 3,164 | 9,574 | 9,797 | |||||||||||
Total Rental and Other Revenues | $ | 179,417 | $ | 180,185 | $ | 538,647 | $ | 526,876 |
Net Operating Income: | |||||||||||||||
Office: | |||||||||||||||
Atlanta | $ | 21,443 | $ | 23,600 | $ | 65,721 | $ | 68,150 | |||||||
Greensboro | 3,372 | 3,367 | 10,817 | 10,116 | |||||||||||
Memphis | 6,471 | 6,930 | 19,289 | 21,474 | |||||||||||
Nashville | 21,896 | 21,000 | 66,306 | 59,250 | |||||||||||
Orlando | 8,195 | 7,999 | 24,551 | 23,007 | |||||||||||
Pittsburgh | 8,969 | 8,822 | 27,189 | 26,396 | |||||||||||
Raleigh | 22,018 | 21,960 | 65,384 | 65,345 | |||||||||||
Richmond | 7,376 | 6,987 | 22,616 | 22,453 | |||||||||||
Tampa | 16,188 | 15,972 | 49,448 | 46,297 | |||||||||||
Total Office Segment | 115,928 | 116,637 | 351,321 | 342,488 | |||||||||||
Other | 2,336 | 2,314 | 7,078 | 6,904 | |||||||||||
Total Net Operating Income | 118,264 | 118,951 | 358,399 | 349,392 | |||||||||||
Reconciliation to income before disposition of investment properties and activity in unconsolidated affiliates: | |||||||||||||||
Depreciation and amortization | (57,661 | ) | (56,973 | ) | (171,923 | ) | (168,934 | ) | |||||||
Impairments of real estate assets | — | (1,445 | ) | — | (1,445 | ) | |||||||||
General and administrative expenses | (9,551 | ) | (9,247 | ) | (30,869 | ) | (29,787 | ) | |||||||
Interest expense | (17,437 | ) | (17,191 | ) | (53,705 | ) | (51,208 | ) | |||||||
Other income | 818 | 558 | 1,735 | 2,632 | |||||||||||
Income before disposition of investment properties and activity in unconsolidated affiliates | $ | 34,433 | $ | 34,653 | $ | 103,637 | $ | 100,650 |
14. | Subsequent Events |
• | the financial condition of our customers could deteriorate; |
• | we may not be able to lease or re-lease second generation space, defined as previously occupied space that becomes available for lease, quickly or on as favorable terms as old leases; |
• | we may not be able to lease newly constructed buildings as quickly or on as favorable terms as originally anticipated; |
• | we may not be able to complete development, acquisition, reinvestment, disposition or joint venture projects as quickly or on as favorable terms as anticipated; |
• | development activity in our existing markets could result in an excessive supply relative to customer demand; |
• | our markets may suffer declines in economic and/or office employment growth; |
• | unanticipated increases in interest rates could increase our debt service costs; |
• | unanticipated increases in operating expenses could negatively impact our operating results; |
• | we may not be able to meet our liquidity requirements or obtain capital on favorable terms to fund our working capital needs and growth initiatives or repay or refinance outstanding debt upon maturity; and |
• | the Company could lose key executive officers. |
• | owning high-quality, differentiated office buildings in the BBDs of our core markets; |
• | improving the operating results of our properties through concentrated leasing, asset management, cost control and customer service efforts; |
• | developing and acquiring office buildings in BBDs that improve the overall quality of our portfolio and generate attractive returns over the long term for our stockholders; |
• | disposing of properties no longer considered to be core assets primarily due to location, age, quality and/or overall strategic fit; and |
• | maintaining a balance sheet with ample liquidity to meet our funding needs and growth prospects. |
New | Renewal | All Office | |||||||||
Leased space (in rentable square feet) | 278,065 | 605,530 | 883,595 | ||||||||
Average term (in years - rentable square foot weighted) | 6.5 | 5.4 | 5.7 | ||||||||
Base rents (per rentable square foot) (1) | $ | 30.32 | $ | 27.02 | $ | 28.06 | |||||
Rent concessions (per rentable square foot) (1) | (1.16 | ) | (0.62 | ) | (0.79 | ) | |||||
GAAP rents (per rentable square foot) (1) | $ | 29.16 | $ | 26.40 | $ | 27.27 | |||||
Tenant improvements (per rentable square foot) (1) | $ | 5.49 | $ | 1.89 | $ | 3.02 | |||||
Leasing commissions (per rentable square foot) (1) | $ | 1.15 | $ | 0.77 | $ | 0.89 |
(1) | Weighted average per rentable square foot on an annual basis over the lease term. |
• | cash flow from operating activities; |
• | bank term loans and borrowings under our revolving credit facility; |
• | the issuance of unsecured debt; |
• | the issuance of secured debt; |
• | the issuance of equity securities by the Company or the Operating Partnership; and |
• | the disposition of non-core assets. |
Nine Months Ended September 30, | |||||||||||
2018 | 2017 | Change | |||||||||
Net Cash Provided By Operating Activities | $ | 292,958 | $ | 270,211 | $ | 22,747 | |||||
Net Cash Used In Investing Activities | (290,904 | ) | (157,945 | ) | (132,959 | ) | |||||
Net Cash Used In Financing Activities | (78,108 | ) | (138,272 | ) | 60,164 | ||||||
Total Cash Flows | $ | (76,054 | ) | $ | (26,006 | ) | $ | (50,048 | ) |
September 30, 2018 | December 31, 2017 | ||||||
Mortgages and notes payable, net, at recorded book value | $ | 2,087,421 | $ | 2,014,333 | |||
Preferred Stock, at liquidation value | $ | 28,887 | $ | 28,892 | |||
Common Stock outstanding | 103,488 | 103,267 | |||||
Common Units outstanding (not owned by the Company) | 2,803 | 2,829 | |||||
Per share stock price at period end | $ | 47.26 | $ | 50.91 | |||
Market value of Common Stock and Common Units | $ | 5,023,313 | $ | 5,401,347 | |||
Total capitalization | $ | 7,139,621 | $ | 7,444,572 |
Property | Market | Rentable Square Feet | Anticipated Total Investment (1) | Investment As Of September 30, 2018 (1) | Pre Leased % | Estimated Completion | Estimated Stabilization | |||||||||||||
($ in thousands) | ||||||||||||||||||||
MetLife III | Raleigh | 219,000 | $ | 64,500 | $ | 50,167 | 100.0 | % | 2Q19 | 2Q21 | ||||||||||
Virginia Springs I | Nashville | 113,000 | 34,300 | 20,335 | 100.0 | 1Q19 | 1Q19 | |||||||||||||
Mars Petcare - Ovation | Nashville | 223,700 | 96,200 | 71,037 | 100.0 | 3Q19 | 3Q19 | |||||||||||||
Asurion (2) | Nashville | 550,600 | 285,000 | 27,696 | 98.3 | 4Q21 | 1Q22 | |||||||||||||
1,106,300 | $ | 480,000 | $ | 169,235 | 99.2 | % |
(1) | Includes deferred lease commissions which are classified in deferred leasing costs on our Consolidated Balance Sheets. |
(2) | Recorded on our Consolidated Balance Sheets in land held for development, not development in-process. |
• | Net income/(loss) computed in accordance with GAAP; |
• | Less net income attributable to noncontrolling interests in consolidated affiliates; |
• | Plus depreciation and amortization of depreciable operating properties; |
• | Less gains, or plus losses, from sales of depreciable operating properties, plus impairments on depreciable operating properties and excluding items that are classified as extraordinary items under GAAP; |
• | Plus or minus our share of adjustments, including depreciation and amortization of depreciable operating properties, for unconsolidated joint venture investments (to reflect funds from operations on the same basis); and |
• | Plus or minus adjustments for depreciation and amortization and gains/(losses) on sales of depreciable operating properties, plus impairments on depreciable operating properties, and noncontrolling interests in consolidated affiliates related to discontinued operations. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Funds from operations: | |||||||||||||||
Net income | $ | 35,009 | $ | 59,549 | $ | 122,253 | $ | 132,588 | |||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | (324 | ) | (315 | ) | (918 | ) | (914 | ) | |||||||
Depreciation and amortization of real estate assets | 56,904 | 56,271 | 169,693 | 166,862 | |||||||||||
(Gains) on disposition of depreciable properties | — | (19,849 | ) | (16,433 | ) | (25,181 | ) | ||||||||
Unconsolidated affiliates: | |||||||||||||||
Depreciation and amortization of real estate assets | 597 | 529 | 1,673 | 1,923 | |||||||||||
(Gains) on disposition of depreciable properties | — | (4,617 | ) | — | (4,617 | ) | |||||||||
Funds from operations | 92,186 | 91,568 | 276,268 | 270,661 | |||||||||||
Dividends on Preferred Stock | (623 | ) | (623 | ) | (1,869 | ) | (1,869 | ) | |||||||
Funds from operations available for common stockholders | $ | 91,563 | $ | 90,945 | $ | 274,399 | $ | 268,792 | |||||||
Funds from operations available for common stockholders per share | $ | 0.86 | $ | 0.86 | $ | 2.58 | $ | 2.55 | |||||||
Weighted average shares outstanding (1) | 106,333 | 106,145 | 106,256 | 105,402 |
(1) | Includes assumed conversion of all potentially dilutive Common Stock equivalents. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Income before disposition of investment properties and activity in unconsolidated affiliates | $ | 34,433 | $ | 34,653 | $ | 103,637 | $ | 100,650 | |||||||
Other income | (818 | ) | (558 | ) | (1,735 | ) | (2,632 | ) | |||||||
Interest expense | 17,437 | 17,191 | 53,705 | 51,208 | |||||||||||
General and administrative expenses | 9,551 | 9,247 | 30,869 | 29,787 | |||||||||||
Impairments of real estate assets | — | 1,445 | — | 1,445 | |||||||||||
Depreciation and amortization | 57,661 | 56,973 | 171,923 | 168,934 | |||||||||||
Net operating income | 118,264 | 118,951 | 358,399 | 349,392 | |||||||||||
Less – non same property and other net operating income | (9,479 | ) | (11,007 | ) | (30,838 | ) | (25,661 | ) | |||||||
Same property net operating income | $ | 108,785 | $ | 107,944 | $ | 327,561 | $ | 323,731 | |||||||
Same property net operating income | $ | 108,785 | $ | 107,944 | $ | 327,561 | $ | 323,731 | |||||||
Less – lease termination fees, straight-line rent and other non-cash adjustments | (3,646 | ) | (4,255 | ) | (13,791 | ) | (13,093 | ) | |||||||
Same property cash net operating income | $ | 105,139 | $ | 103,689 | $ | 313,770 | $ | 310,638 |
Exhibit Number | Description |
10.1 | |
12.1 | |
12.2 | |
31.1 | |
31.2 | |
31.3 | |
31.4 | |
32.1 | |
32.2 | |
32.3 | |
32.4 | |
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 Extension Labels Linkbase |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
Highwoods Properties, Inc. | |
By: | /s/ Mark F. Mulhern |
Mark F. Mulhern | |
Executive Vice President and Chief Financial Officer |
Highwoods Realty Limited Partnership | |
By: | Highwoods Properties, Inc., its sole general partner |
By: | /s/ Mark F. Mulhern |
Mark F. Mulhern | |
Executive Vice President and Chief Financial Officer |
Nine Months Ended September 30, 2018 | ||||
Earnings: | ||||
Income before equity in earnings of unconsolidated affiliates | $ | 120,612 | ||
Fixed charges | 60,277 | |||
Capitalized interest | (4,674 | ) | ||
Distributions of earnings from unconsolidated affiliates | 1,943 | |||
Total earnings | $ | 178,158 | ||
Fixed charges and Preferred Stock dividends: | ||||
Contractual interest expense | $ | 51,579 | ||
Amortization of debt issuance costs | 2,126 | |||
Capitalized interest | 4,674 | |||
Interest component of rental expense | 1,898 | |||
Total fixed charges | 60,277 | |||
Preferred Stock dividends | 1,869 | |||
Total fixed charges and Preferred Stock dividends | $ | 62,146 | ||
Ratio of earnings to fixed charges | 2.96 | |||
Ratio of earnings to combined fixed charges and Preferred Stock dividends | 2.87 |
Nine Months Ended September 30, 2018 | ||||
Earnings: | ||||
Income before equity in earnings of unconsolidated affiliates | $ | 120,612 | ||
Fixed charges | 60,277 | |||
Capitalized interest | (4,674 | ) | ||
Distributions of earnings from unconsolidated affiliates | 1,943 | |||
Total earnings | $ | 178,158 | ||
Fixed charges and Preferred Unit distributions: | ||||
Contractual interest expense | $ | 51,579 | ||
Amortization of debt issuance costs | 2,126 | |||
Capitalized interest | 4,674 | |||
Interest component of rental expense | 1,898 | |||
Total fixed charges | 60,277 | |||
Preferred Unit distributions | 1,869 | |||
Total fixed charges and Preferred Unit distributions | $ | 62,146 | ||
Ratio of earnings to fixed charges | 2.96 | |||
Ratio of earnings to combined fixed charges and Preferred Unit distributions | 2.87 |
1. | I have reviewed this Quarterly Report on Form 10-Q of Highwoods Properties, Inc.; |
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 officers 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 officers 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. |
/s/ Edward J. Fritsch |
Edward J. Fritsch President and Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Highwoods Properties, Inc.; |
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 officers 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 officers 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. |
/s/ Mark F. Mulhern |
Mark F. Mulhern Executive Vice President and Chief Financial Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Highwoods Realty Limited Partnership; |
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 officers 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 officers 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. |
/s/ Edward J. Fritsch |
Edward J. Fritsch President and Chief Executive Officer of the General Partner |
1. | I have reviewed this Quarterly Report on Form 10-Q of Highwoods Realty Limited Partnership; |
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 officers 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 officers 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. |
/s/ Mark F. Mulhern |
Mark F. Mulhern Executive Vice President and Chief Financial Officer of the General Partner |
1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Edward J. Fritsch |
Edward J. Fritsch President and Chief Executive Officer |
October 23, 2018 |
1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Mark F. Mulhern |
Mark F. Mulhern Executive Vice President and Chief Financial Officer |
October 23, 2018 |
1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Operating Partnership. |
/s/ Edward J. Fritsch |
Edward J. Fritsch President and Chief Executive Officer of the General Partner |
October 23, 2018 |
1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Operating Partnership. |
/s/ Mark F. Mulhern |
Mark F. Mulhern Executive Vice President and Chief Financial Officer of the General Partner |
October 23, 2018 |
Document and Entity Information Document - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Oct. 16, 2018 |
|
Entity Information [Line Items] | ||
Entity Registrant Name | HIGHWOODS PROPERTIES INC. | |
Entity Central Index Key | 0000921082 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 103,489,326 | |
Highwoods Realty Limited Partnership [Member] | ||
Entity Information [Line Items] | ||
Entity Registrant Name | HIGHWOODS REALTY LIMITED PARTNERSHIP | |
Entity Central Index Key | 0000941713 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Description of Business and Significant Accounting Policies |
9 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||
Description of Business and Significant Accounting Policies | Description of Business and Significant Accounting Policies Description of Business Highwoods Properties, Inc. (the “Company”) is a fully integrated real estate investment trust (“REIT”) that provides leasing, management, development, construction and other customer-related services for its properties and for third parties. The Company conducts its activities through Highwoods Realty Limited Partnership (the “Operating Partnership”). At September 30, 2018, we owned or had an interest in 30.7 million rentable square feet of in-service properties, 1.8 million rentable square feet of properties under development and approximately 350 acres of development land. The Company is the sole general partner of the Operating Partnership. At September 30, 2018, the Company owned all of the Preferred Units and 103.1 million, or 97.4%, of the Common Units in the Operating Partnership. Limited partners owned the remaining 2.8 million Common Units. During the nine months ended September 30, 2018, the Company redeemed 26,196 Common Units for a like number of shares of Common Stock. Basis of Presentation Our Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company's Consolidated Financial Statements include the Operating Partnership, wholly owned subsidiaries and those entities in which the Company has the controlling interest. The Operating Partnership's Consolidated Financial Statements include wholly owned subsidiaries and those entities in which the Operating Partnership has the controlling interest. All intercompany transactions and accounts have been eliminated. The unaudited interim consolidated financial statements and accompanying unaudited consolidated financial information, in the opinion of management, contain all adjustments (including normal recurring accruals) necessary for a fair presentation of our financial position, results of operations and cash flows. We have condensed or omitted certain notes and other information from the interim Consolidated Financial Statements presented in this Quarterly Report as permitted by SEC rules and regulations. These Consolidated Financial Statements should be read in conjunction with our 2017 Annual Report on Form 10-K. Use of Estimates The preparation of consolidated financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the amounts reported in our Consolidated Financial Statements and accompanying notes. Actual results could differ from those estimates. Insurance Beginning in 2018, we are primarily self-insured for health care claims for participating employees. We have stop-loss coverage to limit our exposure to significant claims on a per claim and annual aggregate basis. We determine our liabilities for claims, including incurred but not reported losses, based on all relevant information, including actuarial estimates of claim liabilities. At September 30, 2018, a reserve of $0.6 million was recorded to cover estimated reported and unreported claims. 1. Description of Business and Significant Accounting Policies – Continued Recently Issued Accounting Standards The Financial Accounting Standards Board ("FASB") issued an accounting standards update ("ASU") that superseded the revenue recognition requirements under previous guidance, which we adopted as of January 1, 2018. Several updates have been issued subsequently that are intended to promote a more consistent interpretation and application of the principles outlined in the ASU. The ASU requires the use of a new five-step model to recognize revenue from contracts with customers. The five-step model requires that we identify the contract with the customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when we satisfy the performance obligations. We are also required to disclose information regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In analyzing our contracts with customers, we determined that the most material potential impact from the adoption of this ASU would be in how revenue is recognized for sales of real estate with continuing involvement. Prior to the adoption of this ASU, profit for such sales transactions was recognized and then reduced by the maximum exposure to loss related to the nature of the continuing involvement at the time of sale. Upon adoption of this ASU, any continuing involvement must be analyzed as a separate performance obligation in the contract and a portion of the sales price allocated to each performance obligation. When the continuing involvement performance obligation is satisfied, the sales price allocated to it will be recognized. We had no sales of real estate with continuing involvement during the nine months ended September 30, 2018 or prior periods; however, we will use such methodology for any future real estate sales with continuing involvement. Our internal controls with respect to accounting for such sales have been updated accordingly. Adoption of this ASU resulted in no other changes with respect to the timing of revenue recognition or internal controls related to contracts other than leases, such as management, development and construction fees and transient parking income, all of which are not material to our Consolidated Financial Statements. As such, there is no cumulative-effect adjustment from the adoption of this ASU reflected in our Consolidated Financial Statements. The FASB issued an ASU that requires entities to show changes in total cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning of period and end of period balances rather than presented as transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. We adopted the ASU as of January 1, 2018 with retrospective application to our Consolidated Statements of Cash Flows. Accordingly, our Consolidated Statements of Cash Flows present a reconciliation of the changes in cash and cash equivalents and restricted cash. The effect of the adoption resulted in an $18.6 million decrease in net cash used in investing activities for the nine months ended September 30, 2017. Restricted cash represents cash deposits that are legally restricted or held by third parties on our behalf, such as construction-related escrows, property disposition proceeds set aside and designated or intended to fund future tax-deferred exchanges of qualifying real estate investments and escrows and reserves for debt service, real estate taxes and property insurance established pursuant to certain mortgage financing arrangements. The FASB issued an ASU that clarifies and narrows the definition of a business used in determining whether to account for a transaction as an asset acquisition or business combination. The guidance requires evaluation of the fair value of the assets acquired to determine if it is concentrated in a single identifiable asset or a group of similar identifiable assets. If so, the transferred assets would not be a business. The guidance also requires a business to include at least one substantive process and narrows the definition of outputs. We adopted the ASU prospectively as of January 1, 2018. We expect that the majority of our future acquisitions would not meet the definition of a business; therefore, the related acquisition costs would be capitalized as part of the purchase price. The FASB issued an ASU that clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. The guidance requires modification accounting if the value, vesting conditions or classification of the award changes. We adopted the ASU as of January 1, 2018 with no effect on our Consolidated Financial Statements. 1. Description of Business and Significant Accounting Policies – Continued The FASB issued an ASU that sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. In addition, the guidance requires lessors to capitalize and amortize only incremental direct leasing costs. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease, respectively. A lessee is also required to record a right of use asset and a lease liability for all leases with a term of greater than a year regardless of their classification. Leases with a term of a year or less will be accounted for in the same manner as operating leases today. The guidance supersedes previously issued guidance under ASC Topic 840 “Leases.” An entity may elect a package of practical expedients, which allows for the following:
This package of practical expedients is available as a single election that must be consistently applied to all existing leases at the date of adoption. Furthermore, the FASB finalized an amendment that allows entities to present comparative periods, in the year of adoption, under ASC 840, which effectively allows for an initial date of adoption of January 1, 2019. The amendment also provides a practical expedient to lessors that removes the requirement to separate lease and non-lease components, provided certain conditions are met. Our analysis of our leases indicates that the lease component is the predominant component, that the timing and pattern of transfer of our material non-lease components (primarily cost recovery income) are the same as the lease components and the lease component, if it were accounted for separately, would be classified as an operating lease. As such, we believe the adoption of the ASU will not significantly change the accounting or the related internal controls for rental and other revenues from operating leases where we are the lessor, and that such leases will be accounted for in a manner similar to existing standards with the underlying leased asset being reported and recognized as a real estate asset. Upon the adoption of the ASU, we will no longer be able to capitalize and amortize certain leasing related costs and instead will expense these costs as incurred. Such capitalized costs have averaged approximately $2.5 million annually. Leases where we are the lessee include primarily our operating ground leases. We currently believe that existing ground leases executed before the adoption date will continue to be accounted for as operating leases and the new guidance will not have a material impact on our recognition of ground lease expense or our results of operations. However, we will be required to recognize a right of use asset and a lease liability on our Consolidated Balance Sheets equal to the present value of the minimum lease payments required under each ground lease. See Note 8 to our Consolidated Financial Statements in our 2017 Annual Report on Form 10-K for information regarding our ground lease commitments. We will adopt the new ASU effective January 1, 2019 using the modified retrospective approach and will elect the use of all practical expedients provided by the ASU and related amendments as mentioned above. The FASB issued an ASU that eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item when the hedged item affects earnings. The ASU is required to be adopted in 2019 using a modified retrospective approach. We do not expect such adoption to have a material effect on our Consolidated Financial Statements. 1. Description of Business and Significant Accounting Policies – Continued The FASB issued an ASU that requires, among other things, the use of a new current expected credit loss ("CECL") model in determining our allowances for doubtful accounts with respect to accounts receivable, accrued straight-line rents receivable and mortgages and notes receivable. The CECL model requires that we estimate our lifetime expected credit loss with respect to these receivables and record allowances that, when deducted from the balance of the receivables, represent the net amounts expected to be collected. We will also be required to disclose information about how we developed the allowances, including changes in the factors (e.g., portfolio mix, credit trends, unemployment, gross domestic product, etc.) that influenced our estimate of expected credit losses and the reasons for those changes. We continue to monitor FASB activity with respect to a recent proposal to exclude operating lease receivables from the scope of this ASU. We will apply the ASU’s provisions as a cumulative-effect adjustment to retained earnings upon adoption in 2020. We are in the process of evaluating this ASU. The FASB issued an ASU that changes certain disclosure requirements for fair value measurements. The ASU is required to be adopted in 2020 and applied prospectively. We do not expect such adoption to have a material effect on our Notes to Consolidated Financial Statements. |
Real Estate Assets |
9 Months Ended |
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Sep. 30, 2018 | |
Real Estate [Abstract] | |
Real Estate Assets | Real Estate Assets Acquisitions During the first quarter of 2018, we acquired two development parcels totaling approximately nine acres in Nashville for an aggregate purchase price, including capitalized acquisition costs, of $50.6 million. Dispositions During the third quarter of 2018, we sold various land parcels for an aggregate sale price of $2.1 million and recorded nominal aggregate gains on disposition of property. During the second quarter of 2018, we sold a building and various land parcels for an aggregate sale price of $34.0 million and recorded aggregate gains on disposition of property of $17.0 million. |
Mortgages and Notes Receivable |
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Sep. 30, 2018 | |
Receivables [Abstract] | |
Mortgages and Notes Receivable | Mortgages and Notes Receivable Mortgages and notes receivable were $5.7 million and $6.4 million at September 30, 2018 and December 31, 2017, respectively. We evaluate the ability to collect our mortgages and notes receivable by monitoring the leasing statistics and/or market fundamentals of these assets. As of September 30, 2018, our mortgages and notes receivable were not in default and there were no other indicators of impairment. |
Intangible Assets and Below Market Lease Liabilities |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets and Below Market Lease Liabilities | Intangible Assets and Below Market Lease Liabilities The following table sets forth total intangible assets and acquisition-related below market lease liabilities, net of accumulated amortization:
The following table sets forth amortization of intangible assets and below market lease liabilities:
The following table sets forth scheduled future amortization of intangible assets and below market lease liabilities:
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Mortgages and Notes Payable |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgages and Notes Payable | Mortgages and Notes Payable The following table sets forth our mortgages and notes payable:
At September 30, 2018, our secured mortgage loans were collateralized by real estate assets with an aggregate undepreciated book value of $147.6 million. Our $600.0 million unsecured revolving credit facility is scheduled to mature in January 2022 and includes an accordion feature that allows for an additional $400.0 million of borrowing capacity subject to additional lender commitments. Assuming no defaults have occurred, we have an option to extend the maturity for two additional six-month periods. The interest rate at our current credit ratings is LIBOR plus 100 basis points and the annual facility fee is 20 basis points. There was $184.0 million and $173.0 million outstanding under our revolving credit facility at September 30, 2018 and October 16, 2018, respectively. At both September 30, 2018 and October 16, 2018, we had $0.4 million of outstanding letters of credit, which reduces the availability on our revolving credit facility. As a result, the unused capacity of our revolving credit facility at September 30, 2018 and October 16, 2018 was $415.6 million and $426.6 million, respectively. During the second quarter of 2018, we paid off at maturity $200.0 million principal amount of 7.5% unsecured notes. During the first quarter of 2018, the Operating Partnership issued $350.0 million aggregate principal amount of 4.125% notes due 2028, less original issuance discount of $4.1 million. These notes were priced to yield 4.271%. Underwriting fees and other expenses were incurred that aggregated $2.9 million; these costs were deferred and will be amortized over the term of the notes. We are currently in compliance with financial covenants with respect to our consolidated debt. We have considered our short-term liquidity needs and the adequacy of our estimated cash flows from operating activities and other available financing sources to meet these needs. We intend to meet these short-term liquidity requirements through a combination of the following:
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Derivative Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments During the second quarter of 2018, we entered into $150.0 million notional amount of forward-starting swaps that effectively lock the underlying 10-year treasury rate at 2.91% with respect to a planned issuance of debt securities by the Operating Partnership expected to occur prior to June 11, 2019. During 2017, we entered into $150.0 million notional amount of forward-starting swaps that effectively locked the underlying 10-year treasury rate at 2.44% with respect to a planned issuance of debt securities by the Operating Partnership. Upon issuance of the $350.0 million aggregate principal amount of 4.125% notes due 2028 during the first quarter of 2018, we terminated the forward-starting swaps resulting in an unrealized gain of $7.0 million in accumulated other comprehensive income and a gain of $0.2 million of hedge ineffectiveness in interest expense. The counterparties under our swaps are major financial institutions. The swap agreements contain a provision whereby if we default on certain of our indebtedness and which default results in repayment of such indebtedness being, or becoming capable of being, accelerated by the lender, then we could also be declared in default on our swaps. Our interest rate swaps have been designated as and are being accounted for as cash flow hedges with the effective portion of changes in fair value recorded in other comprehensive income each reporting period. No significant gain or loss was recognized related to hedge ineffectiveness or to amounts excluded from effectiveness testing on our cash flow hedges during the nine months ended September 30, 2018 and 2017. We have no collateral requirements related to our interest rate swaps. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on our debt. During the period from October 1, 2018 through September 30, 2019, we estimate that $2.5 million will be reclassified as a decrease to interest expense. The following table sets forth the fair value of our derivatives:
The following table sets forth the effect of our cash flow hedges on accumulated other comprehensive income and interest expense:
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Noncontrolling Interests |
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Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interests | Noncontrolling Interests Noncontrolling Interests in Consolidated Affiliates At September 30, 2018, our noncontrolling interests in consolidated affiliates relate to our joint venture partner's 50.0% interest in office properties in Richmond. Our joint venture partner is an unrelated third party. Noncontrolling Interests in the Operating Partnership The following table sets forth the Company's noncontrolling interests in the Operating Partnership:
The following table sets forth net income available for common stockholders and transfers from the Company's noncontrolling interests in the Operating Partnership:
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Disclosure About Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure About Fair Value of Financial Instruments | Disclosure About Fair Value of Financial Instruments The following summarizes the levels of inputs that we use to measure fair value. Level 1. Quoted prices in active markets for identical assets or liabilities. Our Level 1 asset is our investment in marketable securities that we use to pay benefits under our non-qualified deferred compensation plan. Our Level 1 liability is our non-qualified deferred compensation obligation. The Company's Level 1 noncontrolling interests in the Operating Partnership relate to the ownership of Common Units by various individuals and entities other than the Company. Level 2. Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. Our Level 2 assets include the fair value of our mortgages and notes receivable and interest rate swaps. Our Level 2 liabilities include the fair value of our mortgages and notes payable.
The fair value of mortgages and notes receivable and mortgages and notes payable is estimated by the income approach utilizing contractual cash flows and market-based interest rates to approximate the price that would be paid in an orderly transaction between market participants. The fair value of interest rate swaps is determined using the market standard methodology of netting the discounted future fixed cash receipts and the discounted expected variable cash payments. The variable cash payments of interest rate swaps are based on the expectation of future interest rates (forward curves) derived from observed market interest rate curves. In addition, credit valuation adjustments are considered in the fair values to account for potential nonperformance risk, but were concluded to not be significant inputs to the calculation for the periods presented. The following table sets forth our assets and liabilities and the Company's noncontrolling interests in the Operating Partnership that are measured or disclosed at fair value within the fair value hierarchy.
__________ (1) Amounts recorded at historical cost on our Consolidated Balance Sheets at September 30, 2018 and December 31, 2017. |
Share-Based Payments |
9 Months Ended |
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Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Payments | Share-Based Payments During the nine months ended September 30, 2018, the Company granted 94,984 shares of time-based restricted stock and 77,456 shares of total return-based restricted stock with weighted average grant date fair values per share of $43.01 and $40.81, respectively. We recorded share-based compensation expense of $1.1 million and $0.9 million during the three months ended September 30, 2018 and 2017, respectively, and $6.6 million and $5.8 million during the nine months ended September 30, 2018 and 2017, respectively. At September 30, 2018, there was $5.8 million of total unrecognized share-based compensation costs, which will be recognized over a weighted average remaining contractual term of 2.4 years. |
Accumulated Other Comprehensive Income |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following table sets forth the components of accumulated other comprehensive income:
__________ (1) Amounts reclassified out of accumulated other comprehensive income into contractual interest expense. |
Real Estate and Other Assets Held For Sale |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate and Other Assets Held For Sale | Real Estate and Other Assets Held For Sale The following table sets forth the assets held for sale at September 30, 2018 and December 31, 2017, which are considered non-core:
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Earnings Per Share and Per Unit |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share and Per Unit | Earnings Per Share and Per Unit The following table sets forth the computation of basic and diluted earnings per share of the Company:
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The following table sets forth the computation of basic and diluted earnings per unit of the Operating Partnership:
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Segment Information |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information The following tables summarize the rental and other revenues and net operating income, the primary industry property-level performance metric used by our chief operating decision maker and which is defined as rental and other revenues less rental property and other expenses, for each of our reportable segments.
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Subsequent Events |
9 Months Ended |
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Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On October 18, 2018, the Company declared a cash dividend of $0.4625 per share of Common Stock, which is payable on December 4, 2018 to stockholders of record as of November 12, 2018. |
Description of Business and Significant Accounting Policies (Policies) |
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Sep. 30, 2018 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||
Basis of Presentation | Basis of Presentation Our Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company's Consolidated Financial Statements include the Operating Partnership, wholly owned subsidiaries and those entities in which the Company has the controlling interest. The Operating Partnership's Consolidated Financial Statements include wholly owned subsidiaries and those entities in which the Operating Partnership has the controlling interest. All intercompany transactions and accounts have been eliminated. The unaudited interim consolidated financial statements and accompanying unaudited consolidated financial information, in the opinion of management, contain all adjustments (including normal recurring accruals) necessary for a fair presentation of our financial position, results of operations and cash flows. We have condensed or omitted certain notes and other information from the interim Consolidated Financial Statements presented in this Quarterly Report as permitted by SEC rules and regulations. These Consolidated Financial Statements should be read in conjunction with our 2017 Annual Report on Form 10-K. |
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Use of Estimates | Use of Estimates The preparation of consolidated financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the amounts reported in our Consolidated Financial Statements and accompanying notes. Actual results could differ from those estimates. |
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Insurance | Insurance Beginning in 2018, we are primarily self-insured for health care claims for participating employees. We have stop-loss coverage to limit our exposure to significant claims on a per claim and annual aggregate basis. We determine our liabilities for claims, including incurred but not reported losses, based on all relevant information, including actuarial estimates of claim liabilities. |
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Recently Issued Accounting Standards | Recently Issued Accounting Standards The Financial Accounting Standards Board ("FASB") issued an accounting standards update ("ASU") that superseded the revenue recognition requirements under previous guidance, which we adopted as of January 1, 2018. Several updates have been issued subsequently that are intended to promote a more consistent interpretation and application of the principles outlined in the ASU. The ASU requires the use of a new five-step model to recognize revenue from contracts with customers. The five-step model requires that we identify the contract with the customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when we satisfy the performance obligations. We are also required to disclose information regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In analyzing our contracts with customers, we determined that the most material potential impact from the adoption of this ASU would be in how revenue is recognized for sales of real estate with continuing involvement. Prior to the adoption of this ASU, profit for such sales transactions was recognized and then reduced by the maximum exposure to loss related to the nature of the continuing involvement at the time of sale. Upon adoption of this ASU, any continuing involvement must be analyzed as a separate performance obligation in the contract and a portion of the sales price allocated to each performance obligation. When the continuing involvement performance obligation is satisfied, the sales price allocated to it will be recognized. We had no sales of real estate with continuing involvement during the nine months ended September 30, 2018 or prior periods; however, we will use such methodology for any future real estate sales with continuing involvement. Our internal controls with respect to accounting for such sales have been updated accordingly. Adoption of this ASU resulted in no other changes with respect to the timing of revenue recognition or internal controls related to contracts other than leases, such as management, development and construction fees and transient parking income, all of which are not material to our Consolidated Financial Statements. As such, there is no cumulative-effect adjustment from the adoption of this ASU reflected in our Consolidated Financial Statements. The FASB issued an ASU that requires entities to show changes in total cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning of period and end of period balances rather than presented as transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. We adopted the ASU as of January 1, 2018 with retrospective application to our Consolidated Statements of Cash Flows. Accordingly, our Consolidated Statements of Cash Flows present a reconciliation of the changes in cash and cash equivalents and restricted cash. The effect of the adoption resulted in an $18.6 million decrease in net cash used in investing activities for the nine months ended September 30, 2017. Restricted cash represents cash deposits that are legally restricted or held by third parties on our behalf, such as construction-related escrows, property disposition proceeds set aside and designated or intended to fund future tax-deferred exchanges of qualifying real estate investments and escrows and reserves for debt service, real estate taxes and property insurance established pursuant to certain mortgage financing arrangements. The FASB issued an ASU that clarifies and narrows the definition of a business used in determining whether to account for a transaction as an asset acquisition or business combination. The guidance requires evaluation of the fair value of the assets acquired to determine if it is concentrated in a single identifiable asset or a group of similar identifiable assets. If so, the transferred assets would not be a business. The guidance also requires a business to include at least one substantive process and narrows the definition of outputs. We adopted the ASU prospectively as of January 1, 2018. We expect that the majority of our future acquisitions would not meet the definition of a business; therefore, the related acquisition costs would be capitalized as part of the purchase price. The FASB issued an ASU that clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. The guidance requires modification accounting if the value, vesting conditions or classification of the award changes. We adopted the ASU as of January 1, 2018 with no effect on our Consolidated Financial Statements. 1. Description of Business and Significant Accounting Policies – Continued The FASB issued an ASU that sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. In addition, the guidance requires lessors to capitalize and amortize only incremental direct leasing costs. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease, respectively. A lessee is also required to record a right of use asset and a lease liability for all leases with a term of greater than a year regardless of their classification. Leases with a term of a year or less will be accounted for in the same manner as operating leases today. The guidance supersedes previously issued guidance under ASC Topic 840 “Leases.” An entity may elect a package of practical expedients, which allows for the following:
This package of practical expedients is available as a single election that must be consistently applied to all existing leases at the date of adoption. Furthermore, the FASB finalized an amendment that allows entities to present comparative periods, in the year of adoption, under ASC 840, which effectively allows for an initial date of adoption of January 1, 2019. The amendment also provides a practical expedient to lessors that removes the requirement to separate lease and non-lease components, provided certain conditions are met. Our analysis of our leases indicates that the lease component is the predominant component, that the timing and pattern of transfer of our material non-lease components (primarily cost recovery income) are the same as the lease components and the lease component, if it were accounted for separately, would be classified as an operating lease. As such, we believe the adoption of the ASU will not significantly change the accounting or the related internal controls for rental and other revenues from operating leases where we are the lessor, and that such leases will be accounted for in a manner similar to existing standards with the underlying leased asset being reported and recognized as a real estate asset. Upon the adoption of the ASU, we will no longer be able to capitalize and amortize certain leasing related costs and instead will expense these costs as incurred. Such capitalized costs have averaged approximately $2.5 million annually. Leases where we are the lessee include primarily our operating ground leases. We currently believe that existing ground leases executed before the adoption date will continue to be accounted for as operating leases and the new guidance will not have a material impact on our recognition of ground lease expense or our results of operations. However, we will be required to recognize a right of use asset and a lease liability on our Consolidated Balance Sheets equal to the present value of the minimum lease payments required under each ground lease. See Note 8 to our Consolidated Financial Statements in our 2017 Annual Report on Form 10-K for information regarding our ground lease commitments. We will adopt the new ASU effective January 1, 2019 using the modified retrospective approach and will elect the use of all practical expedients provided by the ASU and related amendments as mentioned above. The FASB issued an ASU that eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item when the hedged item affects earnings. The ASU is required to be adopted in 2019 using a modified retrospective approach. We do not expect such adoption to have a material effect on our Consolidated Financial Statements. 1. Description of Business and Significant Accounting Policies – Continued The FASB issued an ASU that requires, among other things, the use of a new current expected credit loss ("CECL") model in determining our allowances for doubtful accounts with respect to accounts receivable, accrued straight-line rents receivable and mortgages and notes receivable. The CECL model requires that we estimate our lifetime expected credit loss with respect to these receivables and record allowances that, when deducted from the balance of the receivables, represent the net amounts expected to be collected. We will also be required to disclose information about how we developed the allowances, including changes in the factors (e.g., portfolio mix, credit trends, unemployment, gross domestic product, etc.) that influenced our estimate of expected credit losses and the reasons for those changes. We continue to monitor FASB activity with respect to a recent proposal to exclude operating lease receivables from the scope of this ASU. We will apply the ASU’s provisions as a cumulative-effect adjustment to retained earnings upon adoption in 2020. We are in the process of evaluating this ASU. The FASB issued an ASU that changes certain disclosure requirements for fair value measurements. The ASU is required to be adopted in 2020 and applied prospectively. We do not expect such adoption to have a material effect on our Notes to Consolidated Financial Statements. |
Intangible Assets and Below Market Lease Liabilities (Tables) |
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Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Intangible Assets and Below Market Lease Liabilities | The following table sets forth total intangible assets and acquisition-related below market lease liabilities, net of accumulated amortization:
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Amortization of Intangible Assets and Below Market Lease Liabilities | The following table sets forth amortization of intangible assets and below market lease liabilities:
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Scheduled Future Amortization of Intangible Assets and Below Market Lease Liabilities | The following table sets forth scheduled future amortization of intangible assets and below market lease liabilities:
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Mortgages and Notes Payable (Tables) |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Consolidated Mortgages and Notes Payable | The following table sets forth our mortgages and notes payable:
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Derivative Financial Instruments (Tables) |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments, Fair Value | The following table sets forth the fair value of our derivatives:
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Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following table sets forth the effect of our cash flow hedges on accumulated other comprehensive income and interest expense:
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Noncontrolling Interests (Tables) - Highwoods Properties, Inc. [Member] |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interests in the Operating Partnership | The following table sets forth the Company's noncontrolling interests in the Operating Partnership:
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Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership | The following table sets forth net income available for common stockholders and transfers from the Company's noncontrolling interests in the Operating Partnership:
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Disclosure About Fair Value of Financial Instruments (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements of Assets, Liabilities and Noncontrolling Interests | The following table sets forth our assets and liabilities and the Company's noncontrolling interests in the Operating Partnership that are measured or disclosed at fair value within the fair value hierarchy.
__________ (1) Amounts recorded at historical cost on our Consolidated Balance Sheets at September 30, 2018 and December 31, 2017. |
Accumulated Other Comprehensive Income (Tables) |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Accumulated Other Comprehensive Income | The following table sets forth the components of accumulated other comprehensive income:
__________ (1) Amounts reclassified out of accumulated other comprehensive income into contractual interest expense. |
Real Estate and Other Assets Held For Sale (Tables) |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate and Other Assets of the Properties Classified As Held For Sale | The following table sets forth the assets held for sale at September 30, 2018 and December 31, 2017, which are considered non-core:
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Earnings Per Share and Per Unit (Tables) |
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Earnings Per Share and Per Unit Basic and Diluted [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share of the Company:
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Highwoods Realty Limited Partnership [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share and Per Unit Basic and Diluted [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Unit | The following table sets forth the computation of basic and diluted earnings per unit of the Operating Partnership:
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Segment Information (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Revenue from Segments to Consolidated | The following tables summarize the rental and other revenues and net operating income, the primary industry property-level performance metric used by our chief operating decision maker and which is defined as rental and other revenues less rental property and other expenses, for each of our reportable segments.
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Reconciliation of Operating Profit (Loss) from Segments to Consolidated |
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Real Estate Assets (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2018
USD ($)
a
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Jun. 30, 2018
USD ($)
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Mar. 31, 2018
USD ($)
a
parcel
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Sep. 30, 2017
USD ($)
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Sep. 30, 2018
USD ($)
a
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Sep. 30, 2017
USD ($)
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Acquisitions [Abstract] | ||||||
Undeveloped land suitable for future development (in acres) | a | 350 | 350 | ||||
Dispositions [Abstract] | ||||||
Gains on disposition of property | $ 3 | $ 19,849 | $ 16,975 | $ 25,181 | ||
Nashville TN Land Acquisition [Member] | ||||||
Acquisitions [Abstract] | ||||||
Number of development parcels acquired (in parcels) | parcel | 2 | |||||
Undeveloped land suitable for future development (in acres) | a | 9 | |||||
Purchase price of acquisition | $ 50,600 | |||||
2018 Dispositions [Member] | ||||||
Dispositions [Abstract] | ||||||
Purchase price of real estate | $ 2,100 | $ 34,000 | ||||
Gains on disposition of property | $ 17,000 |
Mortgages and Notes Receivable (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Mortgages and notes receivable [Abstract] | ||
Mortgages and notes receivable, net | $ 5,659 | $ 6,425 |
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
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Accumulated Other Comprehensive Income Calculation [Roll Forward] | ||||
Beginning balance | $ 15,956 | $ 6,046 | $ 7,838 | $ 4,949 |
Unrealized gains/(losses) on cash flow hedges | 2,187 | (347) | 10,926 | (31) |
Amortization of cash flow hedges | (654) | 211 | (1,275) | 992 |
Total accumulated other comprehensive income | $ 17,489 | $ 5,910 | $ 17,489 | $ 5,910 |
Real Estate and Other Assets Held For Sale (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Real Estate and Other Assets Held For Sale [Abstract] | ||
Land | $ 0 | $ 870 |
Buildings and tenant improvements | 0 | 21,318 |
Land held for development | 0 | 355 |
Less-accumulated depreciation | 0 | (9,304) |
Net real estate assets | 0 | 13,239 |
Accrued straight-line rents receivable | 0 | 591 |
Deferred leasing costs, net | 0 | 253 |
Prepaid expenses and other assets | 0 | 35 |
Real estate and other assets, net, held for sale | $ 0 | $ 14,118 |
Subsequent Events (Details) - $ / shares |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|---|
Oct. 18, 2018 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
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Subsequent Event [Line Items] | |||||
Dividends declared per Common Share (in dollars per share) | $ 0.4625 | $ 0.440 | $ 1.3875 | $ 1.320 | |
Dividend Declared [Member] | Highwoods Properties, Inc. [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Dividends declared per Common Share (in dollars per share) | $ 0.4625 |
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