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Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Operating activities:    
Net income $ 230,296 $ 49,780
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 120,611 128,664
Amortization of lease incentives and acquisition-related intangible assets and liabilities (1,278) 868
Share-based compensation expense 3,738 5,512
Credit losses on operating lease receivables 2,333 8,144
Write-off of mortgages and notes receivable 0 4,087
Accrued interest on mortgages and notes receivable (61) (118)
Amortization of debt issuance costs 1,533 1,455
Amortization of cash flow hedges 3 (875)
Amortization of mortgages and notes payable fair value adjustments 852 787
Impairments of real estate assets 1,778 531
Losses on debt extinguishment 0 375
Net gains on disposition of property (153,385) (6,703)
Equity in earnings of unconsolidated affiliates (2,142) (1,429)
Distributions of earnings from unconsolidated affiliates 407 669
Settlement of cash flow hedges 0 (5,144)
Changes in operating assets and liabilities:    
Accounts receivable (1,031) (5,507)
Prepaid expenses and other assets (8,320) (3,305)
Accrued straight-line rents receivable (21,522) (14,273)
Accounts payable, accrued expenses and other liabilities 6,403 9,771
Net cash provided by operating activities 180,215 173,289
Investing activities:    
Investments in acquired real estate and related intangible assets, net of cash acquired (2,363) (12,795)
Investments in development in-process (83,071) (50,884)
Investments in tenant improvements and deferred leasing costs (85,544) (78,449)
Investments in building improvements (30,312) (24,113)
Net proceeds from disposition of real estate assets 334,366 31,510
Distributions of capital from unconsolidated affiliates 72 29
Investments in mortgages and notes receivable (32) 0
Repayments of mortgages and notes receivable 154 147
Changes in other investing activities (3,541) (4,272)
Net cash provided by/(used in) investing activities 129,729 (138,827)
Financing activities:    
Dividends on Common Stock (99,596) (98,425)
Redemptions/repurchases of Preferred Stock (16) (18)
Dividends on Preferred Stock (1,244) (1,244)
Distributions to noncontrolling interests in the Operating Partnership (2,728) (2,598)
Distributions to noncontrolling interests in consolidated affiliates (829) (784)
Proceeds from the issuance of Common Stock 2,753 1,049
Costs paid for the issuance of Common Stock (228) 0
Repurchase of shares related to tax withholdings (1,124) (1,780)
Borrowings on revolving credit facility 129,000 169,400
Repayments of revolving credit facility (336,000) (215,400)
Borrowings on mortgages and notes payable 0 349,010
Repayments of mortgages and notes payable (967) (225,929)
Changes in debt issuance costs and other financing activities 0 (4,379)
Net cash used in financing activities (310,979) (31,098)
Net increase/(decrease) in cash and cash equivalents and restricted cash (1,035) 3,364
Cash and cash equivalents and restricted cash at beginning of the period 14,742 10,143
Cash and cash equivalents and restricted cash at end of the period 13,707 13,507
Reconciliation of cash and cash equivalents and restricted cash:    
Cash and cash equivalents at end of the period 4,752 4,530
Restricted cash at end of the period 8,955 8,977
Supplemental disclosure of cash flow information:    
Cash paid for interest, net of amounts capitalized 38,424 33,378
Supplemental disclosure of non-cash investing and financing activities:    
Unrealized losses on cash flow hedges (1,236) (2,550)
Conversions of Common Units to Common Stock 0 353
Changes in accrued capital expenditures (1) [1] (18,819) 2,027
Write-off of fully depreciated real estate assets 22,630 36,188
Write-off of fully amortized leasing costs 10,564 19,900
Write-off of fully amortized debt issuance costs 0 828
Adjustment of noncontrolling interests in the Operating Partnership to fair value (36,525) 8,532
Contributions from noncontrolling interests in consolidated affiliates 0 4,987
Issuances of Common Units to acquire real estate assets 6,163 0
Contingent consideration in connection with the acquisition of land 1,500 0
Initial recognition of lease liabilities related to right of use assets 0 35,349
Accrued capital expenditures included in accounts payable, accrued expenses and other liabilities 49,100 64,300
Highwoods Realty Limited Partnership [Member]    
Operating activities:    
Net income 230,296 49,780
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 120,611 128,664
Amortization of lease incentives and acquisition-related intangible assets and liabilities (1,278) 868
Share-based compensation expense 3,738 5,512
Credit losses on operating lease receivables 2,333 8,144
Write-off of mortgages and notes receivable 0 4,087
Accrued interest on mortgages and notes receivable (61) (118)
Amortization of debt issuance costs 1,533 1,455
Amortization of cash flow hedges 3 (875)
Amortization of mortgages and notes payable fair value adjustments 852 787
Impairments of real estate assets 1,778 531
Losses on debt extinguishment 0 375
Net gains on disposition of property (153,385) (6,703)
Equity in earnings of unconsolidated affiliates (2,142) (1,429)
Distributions of earnings from unconsolidated affiliates 407 669
Settlement of cash flow hedges 0 (5,144)
Changes in operating assets and liabilities:    
Accounts receivable (1,031) (5,507)
Prepaid expenses and other assets (8,320) (3,305)
Accrued straight-line rents receivable (21,522) (14,273)
Accounts payable, accrued expenses and other liabilities 6,403 9,771
Net cash provided by operating activities 180,215 173,289
Investing activities:    
Investments in acquired real estate and related intangible assets, net of cash acquired (2,363) (12,795)
Investments in development in-process (83,071) (50,884)
Investments in tenant improvements and deferred leasing costs (85,544) (78,449)
Investments in building improvements (30,312) (24,113)
Net proceeds from disposition of real estate assets 334,366 31,510
Distributions of capital from unconsolidated affiliates 72 29
Investments in mortgages and notes receivable (32) 0
Repayments of mortgages and notes receivable 154 147
Changes in other investing activities (3,541) (4,272)
Net cash provided by/(used in) investing activities 129,729 (138,827)
Financing activities:    
Distributions on Common Units (101,931) (100,634)
Redemptions/repurchases of Preferred Units (16) (18)
Distributions on Preferred Units (1,244) (1,244)
Distributions to noncontrolling interests in consolidated affiliates (829) (784)
Proceeds from the issuance of Common Units 2,753 1,049
Costs paid for the issuance of Common Units (228) 0
Repurchase of units related to tax withholdings (1,124) (1,780)
Borrowings on revolving credit facility 129,000 169,400
Repayments of revolving credit facility (336,000) (215,400)
Borrowings on mortgages and notes payable 0 349,010
Repayments of mortgages and notes payable (967) (225,929)
Changes in debt issuance costs and other financing activities (393) (4,768)
Net cash used in financing activities (310,979) (31,098)
Net increase/(decrease) in cash and cash equivalents and restricted cash (1,035) 3,364
Cash and cash equivalents and restricted cash at beginning of the period 14,742 10,143
Cash and cash equivalents and restricted cash at end of the period 13,707 13,507
Reconciliation of cash and cash equivalents and restricted cash:    
Cash and cash equivalents at end of the period 4,752 4,530
Restricted cash at end of the period 8,955 8,977
Supplemental disclosure of cash flow information:    
Cash paid for interest, net of amounts capitalized 38,424 33,378
Supplemental disclosure of non-cash investing and financing activities:    
Unrealized losses on cash flow hedges (1,236) (2,550)
Changes in accrued capital expenditures (1) [1] (18,819) 2,027
Write-off of fully depreciated real estate assets 22,630 36,188
Write-off of fully amortized leasing costs 10,564 19,900
Write-off of fully amortized debt issuance costs 0 828
Adjustment of Redeemable Common Units to fair value (33,276) 6,818
Contributions from noncontrolling interests in consolidated affiliates 0 4,987
Issuances of Common Units to acquire real estate assets 6,163 0
Contingent consideration in connection with the acquisition of land 1,500 0
Initial recognition of lease liabilities related to right of use assets 0 35,349
Accrued capital expenditures included in accounts payable, accrued expenses and other liabilities $ 49,100 $ 64,300
[1]
(1)
Accrued capital expenditures included in accounts payable, accrued expenses and other liabilities at June 30, 2020 and 2019 were $49.1 million and $64.3 million, respectively.