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) |
Page | |
PART I - FINANCIAL INFORMATION | |
ITEM 1. FINANCIAL STATEMENTS (unaudited) | |
HIGHWOODS PROPERTIES, INC.: | |
HIGHWOODS REALTY LIMITED PARTNERSHIP: | |
ITEM 4. CONTROLS AND PROCEDURES | |
PART II - OTHER INFORMATION | |
ITEM 6. EXHIBITS |
September 30, 2012 | December 31, 2011 | ||||||
Assets: | |||||||
Real estate assets, at cost: | |||||||
Land | $ | 371,478 | $ | 355,694 | |||
Buildings and tenant improvements | 3,200,350 | 3,009,155 | |||||
Development in process | 11,566 | — | |||||
Land held for development | 102,482 | 105,206 | |||||
3,685,876 | 3,470,055 | ||||||
Less-accumulated depreciation | (926,668 | ) | (869,046 | ) | |||
Net real estate assets | 2,759,208 | 2,601,009 | |||||
For-sale residential condominiums | 1,238 | 4,751 | |||||
Real estate and other assets, net, held for sale | — | 124,273 | |||||
Cash and cash equivalents | 9,086 | 11,188 | |||||
Restricted cash | 21,578 | 26,666 | |||||
Accounts receivable, net of allowance of $3,437 and $3,548, respectively | 21,144 | 30,093 | |||||
Mortgages and notes receivable, net of allowance of $211 and $61, respectively | 16,943 | 18,600 | |||||
Accrued straight-line rents receivable, net of allowance of $1,076 and $1,294, respectively | 112,660 | 99,490 | |||||
Investments in and advances to unconsolidated affiliates | 78,406 | 100,367 | |||||
Deferred financing and leasing costs, net of accumulated amortization of $73,579 and $62,319, respectively | 149,170 | 127,774 | |||||
Prepaid expenses and other assets, net of accumulated amortization of $12,585 and $15,089, respectively | 40,452 | 36,781 | |||||
Total Assets | $ | 3,209,885 | $ | 3,180,992 | |||
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity: | |||||||
Mortgages and notes payable | $ | 1,778,555 | $ | 1,868,906 | |||
Accounts payable, accrued expenses and other liabilities | 152,053 | 148,607 | |||||
Financing obligations | 27,791 | 30,150 | |||||
Liabilities, net, held for sale | — | 35,815 | |||||
Total Liabilities | 1,958,399 | 2,083,478 | |||||
Commitments and contingencies | |||||||
Noncontrolling interests in the Operating Partnership | 123,141 | 110,655 | |||||
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), 29,077 shares issued and outstanding | 29,077 | 29,077 | |||||
Common Stock, $.01 par value, 200,000,000 authorized shares; | |||||||
78,529,922 and 72,647,697 shares issued and outstanding, respectively | 785 | 726 | |||||
Additional paid-in capital | 1,985,322 | 1,803,997 | |||||
Distributions in excess of net income available for common stockholders | (877,962 | ) | (845,853 | ) | |||
Accumulated other comprehensive loss | (13,426 | ) | (5,734 | ) | |||
Total Stockholders’ Equity | 1,123,796 | 982,213 | |||||
Noncontrolling interests in consolidated affiliates | 4,549 | 4,646 | |||||
Total Equity | 1,128,345 | 986,859 | |||||
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity | $ | 3,209,885 | $ | 3,180,992 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Rental and other revenues | $ | 128,214 | $ | 117,265 | $ | 382,120 | $ | 339,497 | |||||||
Operating expenses: | |||||||||||||||
Rental property and other expenses | 47,233 | 44,031 | 138,132 | 122,358 | |||||||||||
Depreciation and amortization | 38,651 | 35,051 | 115,755 | 99,659 | |||||||||||
Impairments of real estate assets | — | 2,429 | — | 2,429 | |||||||||||
General and administrative | 9,725 | 12,212 | 28,298 | 27,983 | |||||||||||
Total operating expenses | 95,609 | 93,723 | 282,185 | 252,429 | |||||||||||
Interest expense: | |||||||||||||||
Contractual | 22,910 | 23,264 | 70,309 | 68,444 | |||||||||||
Amortization of deferred financing costs | 907 | 806 | 2,709 | 2,448 | |||||||||||
Financing obligations | (205 | ) | 201 | (357 | ) | 584 | |||||||||
23,612 | 24,271 | 72,661 | 71,476 | ||||||||||||
Other income: | |||||||||||||||
Interest and other income | 1,916 | 1,505 | 5,883 | 5,277 | |||||||||||
Losses on debt extinguishment | — | — | (973 | ) | (24 | ) | |||||||||
1,916 | 1,505 | 4,910 | 5,253 | ||||||||||||
Income from continuing operations before disposition of property, condominiums and investments in unconsolidated affiliates and equity in earnings of unconsolidated affiliates | 10,909 | 776 | 32,184 | 20,845 | |||||||||||
Gains on disposition of property | — | 262 | — | 462 | |||||||||||
Gains/(losses) on for-sale residential condominiums | 80 | (476 | ) | 255 | (322 | ) | |||||||||
Gains on disposition of investments in unconsolidated affiliates | — | 2,282 | — | 2,282 | |||||||||||
Equity in earnings of unconsolidated affiliates | 1,324 | 1,113 | 2,670 | 3,933 | |||||||||||
Income from continuing operations | 12,313 | 3,957 | 35,109 | 27,200 | |||||||||||
Discontinued operations: | |||||||||||||||
Income from discontinued operations | 547 | 1,714 | 4,062 | 5,348 | |||||||||||
Net gains on disposition of discontinued operations | 22,936 | 2,573 | 29,455 | 2,573 | |||||||||||
23,483 | 4,287 | 33,517 | 7,921 | ||||||||||||
Net income | 35,796 | 8,244 | 68,626 | 35,121 | |||||||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | (1,653 | ) | (366 | ) | (3,166 | ) | (1,496 | ) | |||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | (159 | ) | (249 | ) | (566 | ) | (554 | ) | |||||||
Dividends on Preferred Stock | (627 | ) | (627 | ) | (1,881 | ) | (3,926 | ) | |||||||
Excess of Preferred Stock redemption/repurchase cost over carrying value | — | — | — | (1,895 | ) | ||||||||||
Net income available for common stockholders | $ | 33,357 | $ | 7,002 | $ | 63,013 | $ | 27,250 | |||||||
Earnings per Common Share – basic: | |||||||||||||||
Income from continuing operations available for common stockholders | $ | 0.15 | $ | 0.04 | $ | 0.42 | $ | 0.28 | |||||||
Income from discontinued operations available for common stockholders | 0.29 | 0.06 | 0.42 | 0.10 | |||||||||||
Net income available for common stockholders | $ | 0.44 | $ | 0.10 | $ | 0.84 | $ | 0.38 | |||||||
Weighted average Common Shares outstanding – basic | 76,590 | 72,492 | 74,703 | 72,176 | |||||||||||
Earnings per Common Share – diluted: | |||||||||||||||
Income from continuing operations available for common stockholders | $ | 0.14 | $ | 0.04 | $ | 0.42 | $ | 0.28 | |||||||
Income from discontinued operations available for common stockholders | 0.29 | 0.06 | 0.42 | 0.10 | |||||||||||
Net income available for common stockholders | $ | 0.43 | $ | 0.10 | $ | 0.84 | $ | 0.38 | |||||||
Weighted average Common Shares outstanding – diluted | 80,495 | 76,402 | 78,568 | 76,127 | |||||||||||
Dividends declared per Common Share | $ | 0.425 | $ | 0.425 | $ | 1.275 | $ | 1.275 | |||||||
Net income available for common stockholders: | |||||||||||||||
Income from continuing operations available for common stockholders | $ | 10,980 | $ | 2,928 | $ | 31,090 | $ | 19,724 | |||||||
Income from discontinued operations available for common stockholders | 22,377 | 4,074 | 31,923 | 7,526 | |||||||||||
Net income available for common stockholders | $ | 33,357 | $ | 7,002 | $ | 63,013 | $ | 27,250 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Comprehensive income/(loss): | |||||||||||||||
Net income | $ | 35,796 | $ | 8,244 | $ | 68,626 | $ | 35,121 | |||||||
Other comprehensive income/(loss): | |||||||||||||||
Unrealized gains/(losses) on tax increment financing bond | (101 | ) | 600 | 482 | 129 | ||||||||||
Unrealized losses on cash flow hedges | (3,337 | ) | — | (10,424 | ) | — | |||||||||
Amortization of cash flow hedges | 791 | (30 | ) | 2,250 | (87 | ) | |||||||||
Total other comprehensive income/(loss) | (2,647 | ) | 570 | (7,692 | ) | 42 | |||||||||
Total comprehensive income | 33,149 | 8,814 | 60,934 | 35,163 | |||||||||||
Less-comprehensive (income) attributable to noncontrolling interests | (1,812 | ) | (615 | ) | (3,732 | ) | (2,050 | ) | |||||||
Comprehensive income attributable to the Company | $ | 31,337 | $ | 8,199 | $ | 57,202 | $ | 33,113 |
Number of Common Shares | Common Stock | Series A Cumulative Redeemable Preferred Shares | Additional Paid-In Capital | Accumulated Other Compre-hensive Loss | Non-controlling Interests in Consolidated Affiliates | Distributions in Excess of Net Income Available for Common Stockholders | Total | |||||||||||||||||||||||
Balance at December 31, 2011 | 72,647,697 | $ | 726 | $ | 29,077 | $ | 1,803,997 | $ | (5,734 | ) | $ | 4,646 | $ | (845,853 | ) | $ | 986,859 | |||||||||||||
Issuances of Common Stock, net | 5,701,974 | 57 | — | 186,617 | — | — | — | 186,674 | ||||||||||||||||||||||
Conversions of Common Units to Common Stock | 21,366 | — | — | 731 | — | — | — | 731 | ||||||||||||||||||||||
Dividends on Common Stock | — | — | — | — | — | (95,122 | ) | (95,122 | ) | |||||||||||||||||||||
Dividends on Preferred Stock | — | — | — | — | — | (1,881 | ) | (1,881 | ) | |||||||||||||||||||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | — | — | (12,485 | ) | — | — | — | (12,485 | ) | |||||||||||||||||||||
Distributions to noncontrolling interests in consolidated affiliates | — | — | — | — | (663 | ) | — | (663 | ) | |||||||||||||||||||||
Issuances of restricted stock | 158,885 | — | — | — | — | — | — | — | ||||||||||||||||||||||
Share-based compensation expense | 2 | — | 6,462 | — | — | — | 6,464 | |||||||||||||||||||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | — | — | — | — | — | (3,166 | ) | (3,166 | ) | |||||||||||||||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | — | — | — | — | 566 | (566 | ) | — | ||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 68,626 | 68,626 | |||||||||||||||||||||||
Other comprehensive loss | — | — | — | (7,692 | ) | — | — | (7,692 | ) | |||||||||||||||||||||
Total comprehensive income | 60,934 | |||||||||||||||||||||||||||||
Balance at September 30, 2012 | 78,529,922 | $ | 785 | $ | 29,077 | $ | 1,985,322 | $ | (13,426 | ) | $ | 4,549 | $ | (877,962 | ) | $ | 1,128,345 |
Number of Common Shares | Common Stock | Series A Cumulative Redeemable Preferred Shares | Series B Cumulative Redeemable Preferred Shares | Additional Paid-In Capital | Accumulated Other Compre-hensive Loss | Non-controlling Interests in Consolidated Affiliates | Distributions in Excess of Net Income Available for Common Stockholders | Total | ||||||||||||||||||||||||||
Balance at December 31, 2010 | 71,690,487 | $ | 717 | $ | 29,092 | $ | 52,500 | $ | 1,766,886 | $ | (3,648 | ) | $ | 4,460 | $ | (761,785 | ) | $ | 1,088,222 | |||||||||||||||
Issuances of Common Stock, net | 711,234 | 7 | — | — | 22,036 | — | — | — | 22,043 | |||||||||||||||||||||||||
Conversions of Common Units to Common Stock | 43,308 | — | — | — | 1,344 | — | — | — | 1,344 | |||||||||||||||||||||||||
Dividends on Common Stock | — | — | — | — | — | — | (91,900 | ) | (91,900 | ) | ||||||||||||||||||||||||
Dividends on Preferred Stock | — | — | — | — | — | — | (3,926 | ) | (3,926 | ) | ||||||||||||||||||||||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | — | — | — | 10,177 | — | — | — | 10,177 | ||||||||||||||||||||||||||
Distributions to noncontrolling interests in consolidated affiliates | — | — | — | — | — | (391 | ) | — | (391 | ) | ||||||||||||||||||||||||
Issuances of restricted stock | 134,352 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Redemptions/repurchases of Preferred Stock | — | (15 | ) | (52,500 | ) | 1,895 | — | — | (1,895 | ) | (52,515 | ) | ||||||||||||||||||||||
Share-based compensation expense | 2 | — | — | 4,769 | — | — | — | 4,771 | ||||||||||||||||||||||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | — | — | — | — | — | — | (1,496 | ) | (1,496 | ) | ||||||||||||||||||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | — | — | — | — | — | 554 | (554 | ) | — | |||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | 35,121 | 35,121 | ||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 42 | — | — | 42 | ||||||||||||||||||||||||||
Total comprehensive income | 35,163 | |||||||||||||||||||||||||||||||||
Balance at September 30, 2011 | 72,579,381 | $ | 726 | $ | 29,077 | $ | — | $ | 1,807,107 | $ | (3,606 | ) | $ | 4,623 | $ | (826,435 | ) | $ | 1,011,492 |
Nine Months Ended September 30, | |||||||
2012 | 2011 | ||||||
Operating activities: | |||||||
Net income | $ | 68,626 | $ | 35,121 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 117,764 | 103,594 | |||||
Amortization of lease incentives and acquisition-related intangible assets and liabilities | 358 | 1,347 | |||||
Share-based compensation expense | 6,464 | 4,771 | |||||
Allowance for losses on accounts and accrued straight-line rents receivable | 1,235 | 1,586 | |||||
Amortization of deferred financing costs | 2,709 | 2,448 | |||||
Amortization of cash flow hedges | 2,250 | (87 | ) | ||||
Impairments of real estate assets | — | 2,429 | |||||
Losses on debt extinguishment | 973 | 24 | |||||
Net gains on disposition of property | (29,455 | ) | (3,035 | ) | |||
(Gains)/losses on for-sale residential condominiums | (255 | ) | 322 | ||||
Gains on disposition of investments in unconsolidated affiliates | — | (2,282 | ) | ||||
Equity in earnings of unconsolidated affiliates | (2,670 | ) | (3,933 | ) | |||
Changes in financing obligations | (1,010 | ) | (339 | ) | |||
Distributions of earnings from unconsolidated affiliates | 3,249 | 3,400 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 5,310 | (3,493 | ) | ||||
Prepaid expenses and other assets | (3,258 | ) | (586 | ) | |||
Accrued straight-line rents receivable | (13,609 | ) | (9,280 | ) | |||
Accounts payable, accrued expenses and other liabilities | (20,663 | ) | 4,118 | ||||
Net cash provided by operating activities | 138,018 | 136,125 | |||||
Investing activities: | |||||||
Investments in acquired real estate and related intangible assets, net of cash acquired | (158,200 | ) | (75,510 | ) | |||
Investments in development in process | (5,392 | ) | (5,835 | ) | |||
Investments in tenant improvements and deferred leasing costs | (61,821 | ) | (59,692 | ) | |||
Investments in building improvements | (27,229 | ) | (9,521 | ) | |||
Net proceeds from disposition of real estate assets | 152,456 | 16,530 | |||||
Net proceeds from disposition of for-sale residential condominiums | 3,768 | 2,770 | |||||
Proceeds from disposition of investments in unconsolidated affiliates | — | 4,756 | |||||
Distributions of capital from unconsolidated affiliates | 1,035 | 1,304 | |||||
Repayments of mortgages and notes receivable | 1,657 | 338 | |||||
Investments in and advances to unconsolidated affiliates | (3,928 | ) | (39,665 | ) | |||
Changes in restricted cash and other investing activities | 2,904 | (15,598 | ) | ||||
Net cash used in investing activities | (94,750 | ) | (180,123 | ) | |||
Financing activities: | |||||||
Dividends on Common Stock | (95,122 | ) | (91,900 | ) | |||
Redemptions/repurchases of Preferred Stock | — | (52,515 | ) | ||||
Dividends on Preferred Stock | (1,881 | ) | (3,926 | ) | |||
Distributions to noncontrolling interests in the Operating Partnership | (4,733 | ) | (4,818 | ) | |||
Distributions to noncontrolling interests in consolidated affiliates | (663 | ) | (391 | ) | |||
Proceeds from the issuance of Common Stock | 191,667 | 22,043 | |||||
Costs paid for the issuance of Common Stock | (2,745 | ) | — | ||||
Repurchase of shares related to tax withholdings | (2,248 | ) | — | ||||
Borrowings on revolving credit facility | 219,800 | 285,400 | |||||
Repayments of revolving credit facility | (492,800 | ) | (150,400 | ) | |||
Borrowings on mortgages and notes payable | 225,000 | 200,000 | |||||
Repayments of mortgages and notes payable | (77,264 | ) | (156,602 | ) | |||
Payments on financing obligations | (1,316 | ) | — | ||||
Additions to deferred financing costs and other financing activities | (3,065 | ) | (6,011 | ) | |||
Net cash provided by/(used in) financing activities | (45,370 | ) | 40,880 | ||||
Net decrease in cash and cash equivalents | $ | (2,102 | ) | $ | (3,118 | ) |
Nine Months Ended September 30, | |||||||
2012 | 2011 | ||||||
Net decrease in cash and cash equivalents | $ | (2,102 | ) | $ | (3,118 | ) | |
Cash and cash equivalents at beginning of the period | 11,188 | 14,206 | |||||
Cash and cash equivalents at end of the period | $ | 9,086 | $ | 11,088 |
Nine Months Ended September 30, | |||||||
2012 | 2011 | ||||||
Cash paid for interest, net of amounts capitalized | $ | 72,793 | $ | 69,321 |
Nine Months Ended September 30, | |||||||
2012 | 2011 | ||||||
Unrealized losses on cash flow hedges | $ | (10,424 | ) | $ | — | ||
Conversion of Common Units to Common Stock | 731 | 1,344 | |||||
Changes in accrued capital expenditures | 1,829 | 3,707 | |||||
Write-off of fully depreciated real estate assets | 36,918 | 39,039 | |||||
Write-off of fully amortized deferred financing and leasing costs | 14,189 | 13,683 | |||||
Unrealized gains/(losses) on marketable securities of non-qualified deferred compensation plan | 310 | (354 | ) | ||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | 12,485 | (10,177 | ) | ||||
Unrealized gains on tax increment financing bond | 482 | 129 | |||||
Assumption of mortgages and notes payable related to acquisition activities | — | 192,367 | |||||
Reduction of advances to unconsolidated affiliates related to acquisition activities | 26,000 | — | |||||
Issuances of Common Units to acquire real estate assets | 2,299 | — |
Total Purchase Price Allocation | |||
Real estate assets | $ | 135,128 | |
Acquisition-related intangible assets (in deferred financing and leasing costs) | 21,637 | ||
Acquisition-related below market lease liabilities (in accounts payable, accrued expenses and other liabilities) | (11,875 | ) | |
Total allocation | $ | 144,890 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Proforma rental and other revenues | $ | 132,632 | $ | 132,269 | $ | 395,161 | $ | 385,246 | |||||||
Proforma net income | $ | 35,765 | $ | 7,626 | $ | 68,526 | $ | 33,268 | |||||||
Proforma earnings per share - basic | $ | 0.43 | $ | 0.09 | $ | 0.84 | $ | 0.35 | |||||||
Proforma earnings per share - diluted | $ | 0.43 | $ | 0.09 | $ | 0.84 | $ | 0.35 |
• | an office property in Kansas City, MO for $6.5 million and recorded gain on disposition of discontinued operations of $1.9 million. |
• | five office buildings in Nashville, TN for $41.0 million and recorded gain on disposition of discontinued operations of $7.0 million. |
• | three buildings in Jackson, MS and Atlanta, GA for $86.5 million and recorded gain on disposition of discontinued operations of $14.0 million. |
September 30, 2012 | December 31, 2011 | ||||||
Seller financing (first mortgages) | $ | 15,853 | $ | 17,180 | |||
Less allowance | — | — | |||||
15,853 | 17,180 | ||||||
Promissory notes | 1,301 | 1,481 | |||||
Less allowance | (211 | ) | (61 | ) | |||
1,090 | 1,420 | ||||||
Mortgages and notes receivable, net | $ | 16,943 | $ | 18,600 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Beginning notes receivable allowance | $ | 118 | $ | 617 | $ | 61 | $ | 868 | |||||||
Bad debt expense | — | — | — | 184 | |||||||||||
Recoveries/write-offs/other | 93 | (72 | ) | 150 | (507 | ) | |||||||||
Total notes receivable allowance | $ | 211 | $ | 545 | $ | 211 | $ | 545 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Income Statements: | |||||||||||||||
Rental and other revenues | $ | 25,051 | $ | 25,623 | $ | 75,920 | $ | 75,619 | |||||||
Expenses: | |||||||||||||||
Rental property and other expenses | 11,624 | 10,805 | 35,706 | 33,576 | |||||||||||
Depreciation and amortization | 6,355 | 6,759 | 18,839 | 19,670 | |||||||||||
Impairments of real estate assets | — | — | 7,180 | — | |||||||||||
Interest expense | 4,980 | 5,976 | 16,077 | 17,841 | |||||||||||
Total expenses | 22,959 | 23,540 | 77,802 | 71,087 | |||||||||||
Income/(loss) before disposition of properties | 2,092 | 2,083 | (1,882 | ) | 4,532 | ||||||||||
Gains on disposition of properties | — | — | 6,275 | — | |||||||||||
Net income | $ | 2,092 | $ | 2,083 | $ | 4,393 | $ | 4,532 | |||||||
Our share of: | |||||||||||||||
Depreciation and amortization of real estate assets | $ | 2,028 | $ | 2,066 | $ | 5,801 | $ | 6,192 | |||||||
Impairments of real estate assets | $ | — | $ | — | $ | 1,002 | $ | — | |||||||
Interest expense | $ | 1,775 | $ | 1,965 | $ | 5,598 | $ | 6,159 | |||||||
Net income | $ | 914 | $ | 442 | $ | 1,252 | $ | 2,112 | |||||||
Our share of net income | $ | 914 | $ | 442 | $ | 1,252 | $ | 2,112 | |||||||
Adjustments for management and other fees | 410 | 671 | 1,418 | 1,821 | |||||||||||
Equity in earnings of unconsolidated affiliates | $ | 1,324 | $ | 1,113 | $ | 2,670 | $ | 3,933 |
September 30, 2012 | December 31, 2011 | ||||||
Assets: | |||||||
Deferred financing costs | $ | 19,952 | $ | 18,044 | |||
Less accumulated amortization | (8,115 | ) | (5,797 | ) | |||
11,837 | 12,247 | ||||||
Deferred leasing costs (including lease incentives and acquisition-related intangible assets) | 202,797 | 172,049 | |||||
Less accumulated amortization | (65,464 | ) | (56,522 | ) | |||
137,333 | 115,527 | ||||||
Deferred financing and leasing costs, net | $ | 149,170 | $ | 127,774 | |||
Liabilities (in accounts payable, accrued expenses and other liabilities): | |||||||
Acquisition-related below market lease liabilities | $ | 28,015 | $ | 16,441 | |||
Less accumulated amortization | (2,556 | ) | (971 | ) | |||
$ | 25,459 | $ | 15,470 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Amortization of deferred financing costs | $ | 907 | $ | 806 | $ | 2,709 | $ | 2,448 | |||||||
Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization) | $ | 6,836 | $ | 5,189 | $ | 20,542 | $ | 13,945 | |||||||
Amortization of lease incentives (in rental and other revenues) | $ | 393 | $ | 369 | $ | 1,075 | $ | 1,010 | |||||||
Amortization of acquisition-related intangible assets (in rental and other revenues) | $ | 433 | $ | 239 | $ | 1,027 | $ | 617 | |||||||
Amortization of acquisition-related intangible assets (in rental property and other expenses) | $ | 46 | $ | — | $ | 46 | $ | — | |||||||
Amortization of acquisition-related below market lease liabilities (in rental and other revenues) | $ | (647 | ) | $ | (230 | ) | $ | (1,744 | ) | $ | (280 | ) |
Amortization of Deferred Financing Costs | 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, 2012 | $ | 1,069 | $ | 7,020 | $ | 349 | $ | 293 | $ | 140 | $ | (802 | ) | |||||||||||
2013 | 3,381 | 25,080 | 1,286 | 991 | 553 | (3,168 | ) | |||||||||||||||||
2014 | 3,009 | 21,190 | 1,134 | 734 | 553 | (3,106 | ) | |||||||||||||||||
2015 | 2,395 | 17,216 | 902 | 549 | 553 | (2,894 | ) | |||||||||||||||||
2016 | 1,024 | 14,047 | 708 | 489 | 553 | (2,603 | ) | |||||||||||||||||
Thereafter | 959 | 37,292 | 2,536 | 969 | 2,196 | (12,886 | ) | |||||||||||||||||
$ | 11,837 | $ | 121,845 | $ | 6,915 | $ | 4,025 | $ | 4,548 | $ | (25,459 | ) | ||||||||||||
Weighted average remaining amortization periods as of September 30, 2012 (in years) | 3.6 | 7.1 | 7.6 | 5.6 | 8.2 | 9.9 |
Above Market Lease Intangible Assets | In-Place Lease Intangible Assets | Tax Abatement Intangible Assets | Below Market Lease Liabilities | |||||||||||||
Amount recorded from acquisition activity | $ | 1,285 | $ | 21,479 | $ | 4,593 | $ | (11,875 | ) | |||||||
Weighted average remaining amortization periods (in years) | 5.3 | 9.2 | 8.2 | 11.3 |
September 30, 2012 | December 31, 2011 | ||||||
Secured indebtedness | $ | 685,390 | $ | 715,742 | |||
Unsecured indebtedness | 1,093,165 | 1,153,164 | |||||
Total mortgages and notes payable | $ | 1,778,555 | $ | 1,868,906 |
7. | Derivative Financial Instruments |
September 30, 2012 | December 31, 2011 | ||||||
Liability Derivatives: | |||||||
Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities: | |||||||
Interest rate swaps | $ | 10,274 | $ | 2,202 |
7. | Derivative Financial Instruments - Continued |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Derivatives Designated as Cash Flow Hedges: | |||||||||||||||
Amount of unrealized losses recognized in AOCL on derivatives (effective portion): | |||||||||||||||
Interest rate swaps | $ | (3,337 | ) | $ | — | $ | (10,424 | ) | $ | — | |||||
Amount of (gains)/losses reclassified out of AOCL into contractual interest expense (effective portion): | |||||||||||||||
Interest rate swaps | $ | 791 | $ | (30 | ) | $ | 2,250 | $ | (87 | ) |
8. | Noncontrolling Interests |
Nine Months Ended September 30, | |||||||
2012 | 2011 | ||||||
Beginning noncontrolling interests in the Operating Partnership | $ | 110,655 | $ | 120,838 | |||
Adjustments of noncontrolling interests in the Operating Partnership to fair value | 12,485 | (10,177 | ) | ||||
Issuances of Common Units | 2,299 | — | |||||
Conversion of Common Units to Common Stock | (731 | ) | (1,344 | ) | |||
Net income attributable to noncontrolling interests in the Operating Partnership | 3,166 | 1,496 | |||||
Distributions to noncontrolling interests in the Operating Partnership | (4,733 | ) | (4,818 | ) | |||
Total noncontrolling interests in the Operating Partnership | $ | 123,141 | $ | 105,995 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Net income available for common stockholders | $ | 33,357 | $ | 7,002 | $ | 63,013 | $ | 27,250 | |||||||
Increase in additional paid in capital from conversion of Common Units to Common Stock | 100 | 709 | 731 | 1,344 | |||||||||||
Issuances of Common Units | (2,299 | ) | — | (2,299 | ) | — | |||||||||
Change from net income available for common stockholders and transfers from noncontrolling interests | $ | 31,158 | $ | 7,711 | $ | 61,445 | $ | 28,594 |
8. | Noncontrolling Interests - Continued |
9. | Disclosure About Fair Value of Financial Instruments |
9. | Disclosure About Fair Value of Financial Instruments - Continued |
Level 1 | Level 2 | Level 3 | |||||||||||||
September 30, 2012 | Quoted Prices in Active Markets for Identical Assets or Liabilities | Significant Observable Inputs | Significant Unobservable Inputs | ||||||||||||
Assets: | |||||||||||||||
Mortgages and notes receivable, at fair value (1) | $ | 17,382 | $ | — | $ | 17,382 | $ | — | |||||||
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) | 3,264 | 3,264 | — | — | |||||||||||
Tax increment financing bond (in prepaid expenses and other assets) | 15,270 | — | — | 15,270 | |||||||||||
Total Assets | $ | 35,916 | $ | 3,264 | $ | 17,382 | $ | 15,270 | |||||||
Noncontrolling Interests in the Operating Partnership | $ | 123,141 | $ | 123,141 | $ | — | $ | — | |||||||
Liabilities: | |||||||||||||||
Mortgages and notes payable, at fair value (1) | $ | 1,889,775 | $ | — | $ | 1,889,775 | $ | — | |||||||
Interest rate swaps (in accounts payable, accrued expenses and other liabilities) | 10,274 | — | 10,274 | — | |||||||||||
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 3,264 | 3,264 | — | — | |||||||||||
Contingent consideration to acquire real estate assets (in accounts payable, accrued expenses and other liabilities) | 563 | — | — | 563 | |||||||||||
Financing obligations, at fair value (1) | 18,930 | — | — | 18,930 | |||||||||||
Total Liabilities | $ | 1,922,806 | $ | 3,264 | $ | 1,900,049 | $ | 19,493 |
Level 1 | Level 2 | Level 3 | |||||||||||||
December 31, 2011 | Quoted Prices in Active Markets for Identical Assets or Liabilities | Significant Observable Inputs | Significant Unobservable Inputs | ||||||||||||
Assets: | |||||||||||||||
Mortgages and notes receivable, at fair value (1) | $ | 18,990 | $ | — | $ | 18,990 | $ | — | |||||||
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) | 3,149 | 3,149 | — | — | |||||||||||
Tax increment financing bond (in prepaid expenses and other assets) | 14,788 | — | — | 14,788 | |||||||||||
Impaired real estate assets and for-sale residential condominiums | 12,767 | — | — | 12,767 | |||||||||||
Total Assets | $ | 49,694 | $ | 3,149 | $ | 18,990 | $ | 27,555 | |||||||
Noncontrolling Interests in the Operating Partnership | $ | 110,655 | $ | 110,655 | $ | — | $ | — | |||||||
Liabilities: | |||||||||||||||
Mortgages and notes payable, at fair value (1) | $ | 1,959,438 | $ | — | $ | 1,959,438 | $ | — | |||||||
Interest rate swaps (in accounts payable, accrued expenses and other liabilities) | 2,202 | — | 2,202 | — | |||||||||||
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 3,149 | 3,149 | — | — | |||||||||||
Financing obligations, at fair value (1) | 18,866 | — | — | 18,866 | |||||||||||
Total Liabilities | $ | 1,983,655 | $ | 3,149 | $ | 1,961,640 | $ | 18,866 |
9. | Disclosure About Fair Value of Financial Instruments - Continued |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Asset: | |||||||||||||||
Tax Increment Financing Bond: | |||||||||||||||
Beginning balance | $ | 15,371 | $ | 15,228 | $ | 14,788 | $ | 15,699 | |||||||
Unrealized gains/(losses) (in AOCL) | (101 | ) | 600 | 482 | 129 | ||||||||||
Ending balance | $ | 15,270 | $ | 15,828 | $ | 15,270 | $ | 15,828 | |||||||
Liability: | |||||||||||||||
Contingent Consideration to Acquire Real Estate Assets: | |||||||||||||||
Beginning balance | $ | 677 | $ | — | $ | 677 | $ | — | |||||||
Unrealized gains (in general and administrative) | (114 | ) | — | (114 | ) | — | |||||||||
Ending balance | $ | 563 | $ | — | $ | 563 | $ | — |
Fair Value at September 30, 2012 | Valuation Technique | Unobservable Input | Rate/ Percentage | |||||||
Tax increment financing bond | $ | 15,270 | Income approach | Discount rate | 10.73 | % | ||||
Contingent consideration to acquire real estate assets | $ | 563 | Income approach | Payout percentage | 75.00 | % |
10. | Share-based Payments |
11. | Accumulated Other Comprehensive Loss |
Nine Months Ended September 30, | |||||||
2012 | 2011 | ||||||
Tax increment financing bond: | |||||||
Beginning balance | $ | (2,309 | ) | $ | (2,543 | ) | |
Unrealized gains on tax increment financing bond | 482 | 129 | |||||
Ending balance | (1,827 | ) | (2,414 | ) | |||
Cash flow hedges: | |||||||
Beginning balance | (3,425 | ) | (1,105 | ) | |||
Unrealized losses on cash flow hedges | (10,424 | ) | — | ||||
Amortization of cash flow hedges | 2,250 | (87 | ) | ||||
Ending balance | (11,599 | ) | (1,192 | ) | |||
Total accumulated other comprehensive loss | $ | (13,426 | ) | $ | (3,606 | ) |
12. | Discontinued Operations |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Rental and other revenues | $ | 875 | $ | 5,301 | $ | 10,120 | $ | 16,219 | |||||||
Operating expenses: | |||||||||||||||
Rental property and other expenses | 293 | 2,199 | 3,766 | 6,572 | |||||||||||
Depreciation and amortization | — | 1,269 | 2,009 | 3,935 | |||||||||||
Total operating expenses | 293 | 3,468 | 5,775 | 10,507 | |||||||||||
Interest expense | 35 | 119 | 283 | 364 | |||||||||||
Income from discontinued operations | 547 | 1,714 | 4,062 | 5,348 | |||||||||||
Net gains on disposition of discontinued operations | 22,936 | 2,573 | 29,455 | 2,573 | |||||||||||
Total discontinued operations | $ | 23,483 | $ | 4,287 | $ | 33,517 | $ | 7,921 |
September 30, 2012 | December 31, 2011 | ||||||
Assets: | |||||||
Land | $ | — | $ | 14,077 | |||
Buildings and tenant improvements | — | 135,013 | |||||
Less-accumulated depreciation | — | (32,254 | ) | ||||
Net real estate assets | — | 116,836 | |||||
Accrued straight-line rents receivable | — | 6,520 | |||||
Deferred leasing costs, net | — | 811 | |||||
Prepaid expenses and other assets | — | 106 | |||||
Real estate and other assets, net, held for sale | $ | — | $ | 124,273 | |||
Liabilities: | |||||||
Mortgages and notes payable | $ | — | $ | 34,307 | |||
Accrued expenses and other liabilities | — | 214 | |||||
Financing obligations | — | 1,294 | |||||
Liabilities, net, held for sale | $ | — | $ | 35,815 |
13. | Earnings Per Share |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Earnings per Common Share - basic: | |||||||||||||||
Numerator: | |||||||||||||||
Income from continuing operations | $ | 12,313 | $ | 3,957 | $ | 35,109 | $ | 27,200 | |||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership from continuing operations | (547 | ) | (153 | ) | (1,572 | ) | (1,101 | ) | |||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations | (159 | ) | (249 | ) | (566 | ) | (554 | ) | |||||||
Dividends on Preferred Stock | (627 | ) | (627 | ) | (1,881 | ) | (3,926 | ) | |||||||
Excess of Preferred Stock redemption/repurchase cost over carrying value | — | — | — | (1,895 | ) | ||||||||||
Income from continuing operations available for common stockholders | 10,980 | 2,928 | 31,090 | 19,724 | |||||||||||
Income from discontinued operations | 23,483 | 4,287 | 33,517 | 7,921 | |||||||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership from discontinued operations | (1,106 | ) | (213 | ) | (1,594 | ) | (395 | ) | |||||||
Income from discontinued operations available for common stockholders | 22,377 | 4,074 | 31,923 | 7,526 | |||||||||||
Net income available for common stockholders | $ | 33,357 | $ | 7,002 | $ | 63,013 | $ | 27,250 | |||||||
Denominator: | |||||||||||||||
Denominator for basic earnings per Common Share – weighted average shares (1) (2) | 76,590 | 72,492 | 74,703 | 72,176 | |||||||||||
Earnings per Common Share - basic: | |||||||||||||||
Income from continuing operations available for common stockholders | $ | 0.15 | $ | 0.04 | $ | 0.42 | $ | 0.28 | |||||||
Income from discontinued operations available for common stockholders | 0.29 | 0.06 | 0.42 | 0.10 | |||||||||||
Net income available for common stockholders | $ | 0.44 | $ | 0.10 | $ | 0.84 | $ | 0.38 | |||||||
Earnings per Common Share - diluted: | |||||||||||||||
Numerator: | |||||||||||||||
Income from continuing operations | $ | 12,313 | $ | 3,957 | $ | 35,109 | $ | 27,200 | |||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations | (159 | ) | (249 | ) | (566 | ) | (554 | ) | |||||||
Dividends on Preferred Stock | (627 | ) | (627 | ) | (1,881 | ) | (3,926 | ) | |||||||
Excess of Preferred Stock redemption/repurchase cost over carrying value | — | — | — | (1,895 | ) | ||||||||||
Income from continuing operations available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership | 11,527 | 3,081 | 32,662 | 20,825 | |||||||||||
Income from discontinued operations available for common stockholders | 23,483 | 4,287 | 33,517 | 7,921 | |||||||||||
Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership | $ | 35,010 | $ | 7,368 | $ | 66,179 | $ | 28,746 | |||||||
Denominator: | |||||||||||||||
Denominator for basic earnings per Common Share –weighted average shares (1) (2) | 76,590 | 72,492 | 74,703 | 72,176 | |||||||||||
Add: | |||||||||||||||
Stock options using the treasury method | 137 | 138 | 127 | 169 | |||||||||||
Noncontrolling interests Common Units | 3,768 | 3,772 | 3,738 | 3,782 | |||||||||||
Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions (1) | 80,495 | 76,402 | 78,568 | 76,127 | |||||||||||
Earnings per Common Share - diluted: | |||||||||||||||
Income from continuing operations available for common stockholders | $ | 0.14 | $ | 0.04 | $ | 0.42 | $ | 0.28 | |||||||
Income from discontinued operations available for common stockholders | 0.29 | 0.06 | 0.42 | 0.10 | |||||||||||
Net income available for common stockholders | $ | 0.43 | $ | 0.10 | $ | 0.84 | $ | 0.38 |
13. | Earnings Per Share - Continued |
(1) | There were 0.5 million and 0.4 million options outstanding during the three months ended September 30, 2012 and 2011, respectively, and 0.5 million and 0.3 million options outstanding during the nine months ended September 30, 2012 and 2011, respectively, that were not included in the computation of diluted earnings per share because the impact of including such options would be anti-dilutive. |
(2) | Includes all unvested restricted stock since dividends on restricted stock are non-forfeitable. |
14. | Segment Information |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Rental and Other Revenues: (1) | |||||||||||||||
Office: | |||||||||||||||
Atlanta, GA | $ | 14,074 | $ | 12,167 | $ | 44,315 | $ | 34,701 | |||||||
Greenville, SC | 3,297 | 3,617 | 10,289 | 10,558 | |||||||||||
Kansas City, MO | 4,015 | 3,412 | 11,176 | 10,371 | |||||||||||
Memphis, TN | 9,106 | 9,393 | 27,612 | 27,808 | |||||||||||
Nashville, TN | 14,289 | 13,793 | 42,471 | 40,106 | |||||||||||
Orlando, FL | 2,747 | 2,676 | 8,189 | 7,612 | |||||||||||
Piedmont Triad, NC | 5,603 | 4,913 | 15,753 | 15,546 | |||||||||||
Pittsburgh, PA | 9,485 | 1,568 | 27,681 | 1,568 | |||||||||||
Raleigh, NC | 20,585 | 20,047 | 60,758 | 59,462 | |||||||||||
Richmond, VA | 11,852 | 13,375 | 35,453 | 36,425 | |||||||||||
Tampa, FL | 17,615 | 17,370 | 52,324 | 50,808 | |||||||||||
Total Office Segment | 112,668 | 102,331 | 336,021 | 294,965 | |||||||||||
Industrial: | |||||||||||||||
Atlanta, GA | 3,215 | 3,293 | 9,522 | 9,989 | |||||||||||
Piedmont Triad, NC | 3,142 | 3,151 | 9,392 | 8,953 | |||||||||||
Total Industrial Segment | 6,357 | 6,444 | 18,914 | 18,942 | |||||||||||
Retail: | |||||||||||||||
Kansas City, MO | 9,189 | 8,490 | 27,185 | 25,590 | |||||||||||
Total Retail Segment | 9,189 | 8,490 | 27,185 | 25,590 | |||||||||||
Total Rental and Other Revenues | $ | 128,214 | $ | 117,265 | $ | 382,120 | $ | 339,497 |
14. | Segment Information - Continued |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Net Operating Income: (1) | |||||||||||||||
Office: | |||||||||||||||
Atlanta, GA | $ | 8,700 | $ | 7,402 | $ | 28,215 | $ | 21,555 | |||||||
Greenville, SC | 1,807 | 2,096 | 5,989 | 6,238 | |||||||||||
Kansas City, MO | 2,547 | 2,000 | 7,064 | 6,255 | |||||||||||
Memphis, TN | 5,381 | 5,166 | 16,234 | 15,297 | |||||||||||
Nashville, TN | 9,777 | 9,273 | 29,262 | 27,275 | |||||||||||
Orlando, FL | 1,368 | 1,378 | 4,214 | 3,829 | |||||||||||
Piedmont Triad, NC | 3,330 | 2,895 | 9,780 | 9,944 | |||||||||||
Pittsburgh, PA | 4,952 | 888 | 13,859 | 888 | |||||||||||
Raleigh, NC | 13,907 | 13,900 | 42,045 | 41,386 | |||||||||||
Richmond, VA | 7,868 | 7,767 | 24,283 | 23,852 | |||||||||||
Tampa, FL | 11,077 | 10,786 | 32,721 | 31,475 | |||||||||||
Total Office Segment | 70,714 | 63,551 | 213,666 | 187,994 | |||||||||||
Industrial: | |||||||||||||||
Atlanta, GA | 2,331 | 2,406 | 6,936 | 7,417 | |||||||||||
Piedmont Triad, NC | 2,257 | 2,251 | 6,852 | 6,582 | |||||||||||
Total Industrial Segment | 4,588 | 4,657 | 13,788 | 13,999 | |||||||||||
Retail: | |||||||||||||||
Kansas City, MO | 5,679 | 5,026 | 16,534 | 15,146 | |||||||||||
Total Retail Segment | 5,679 | 5,026 | 16,534 | 15,146 | |||||||||||
Total Net Operating Income | 80,981 | 73,234 | 243,988 | 217,139 | |||||||||||
Reconciliation to income from continuing operations before disposition of property, condominiums and investments in unconsolidated affiliates and equity in earnings of unconsolidated affiliates: | |||||||||||||||
Depreciation and amortization | (38,651 | ) | (35,051 | ) | (115,755 | ) | (99,659 | ) | |||||||
Impairments of assets held for use | — | (2,429 | ) | — | (2,429 | ) | |||||||||
General and administrative | (9,725 | ) | (12,212 | ) | (28,298 | ) | (27,983 | ) | |||||||
Interest expense | (23,612 | ) | (24,271 | ) | (72,661 | ) | (71,476 | ) | |||||||
Other income | 1,916 | 1,505 | 4,910 | 5,253 | |||||||||||
Income from continuing operations before disposition of property, condominiums and investments in unconsolidated affiliates and equity in earnings of unconsolidated affiliates | $ | 10,909 | $ | 776 | $ | 32,184 | $ | 20,845 |
(1) | Net of discontinued operations. |
15. | Subsequent Events |
September 30, 2012 | December 31, 2011 | ||||||
Assets: | |||||||
Real estate assets, at cost: | |||||||
Land | $ | 371,478 | $ | 355,694 | |||
Buildings and tenant improvements | 3,200,350 | 3,009,155 | |||||
Development in process | 11,566 | — | |||||
Land held for development | 102,482 | 105,206 | |||||
3,685,876 | 3,470,055 | ||||||
Less-accumulated depreciation | (926,668 | ) | (869,046 | ) | |||
Net real estate assets | 2,759,208 | 2,601,009 | |||||
For-sale residential condominiums | 1,238 | 4,751 | |||||
Real estate and other assets, net, held for sale | — | 124,273 | |||||
Cash and cash equivalents | 9,174 | 11,151 | |||||
Restricted cash | 21,578 | 26,666 | |||||
Accounts receivable, net of allowance of $3,437 and $3,548, respectively | 21,144 | 30,093 | |||||
Mortgages and notes receivable, net of allowance of $211 and $61, respectively | 16,943 | 18,600 | |||||
Accrued straight-line rents receivable, net of allowance of $1,076 and $1,294, respectively | 112,660 | 99,490 | |||||
Investments in and advances to unconsolidated affiliates | 77,364 | 99,296 | |||||
Deferred financing and leasing costs, net of accumulated amortization of $73,579 and $62,319, respectively | 149,170 | 127,774 | |||||
Prepaid expenses and other assets, net of accumulated amortization of $12,585 and $15,089, respectively | 40,410 | 36,781 | |||||
Total Assets | $ | 3,208,889 | $ | 3,179,884 | |||
Liabilities, Redeemable Operating Partnership Units and Equity: | |||||||
Mortgages and notes payable | $ | 1,778,555 | $ | 1,868,906 | |||
Accounts payable, accrued expenses and other liabilities | 151,963 | 148,607 | |||||
Financing obligations | 27,791 | 30,150 | |||||
Liabilities, net, held for sale | — | 35,815 | |||||
Total Liabilities | 1,958,309 | 2,083,478 | |||||
Commitments and contingencies | |||||||
Redeemable Operating Partnership Units: | |||||||
Common Units, 3,775,016 and 3,729,518 outstanding, respectively | 123,141 | 110,655 | |||||
Series A Preferred Units (liquidation preference $1,000 per unit), 29,077 units issued and outstanding | 29,077 | 29,077 | |||||
Total Redeemable Operating Partnership Units | 152,218 | 139,732 | |||||
Equity: | |||||||
Common Units: | |||||||
General partner Common Units, 818,961 and 759,684 outstanding, respectively | 11,069 | 9,575 | |||||
Limited partner Common Units, 77,302,152 and 71,479,204 outstanding, respectively | 1,096,170 | 948,187 | |||||
Accumulated other comprehensive loss | (13,426 | ) | (5,734 | ) | |||
Noncontrolling interests in consolidated affiliates | 4,549 | 4,646 | |||||
Total Equity | 1,098,362 | 956,674 | |||||
Total Liabilities, Redeemable Operating Partnership Units and Equity | $ | 3,208,889 | $ | 3,179,884 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Rental and other revenues | $ | 128,214 | $ | 117,265 | $ | 382,120 | $ | 339,497 | |||||||
Operating expenses: | |||||||||||||||
Rental property and other expenses | 47,159 | 43,963 | 137,937 | 122,376 | |||||||||||
Depreciation and amortization | 38,651 | 35,051 | 115,755 | 99,659 | |||||||||||
Impairments of real estate assets | — | 2,429 | — | 2,429 | |||||||||||
General and administrative | 9,799 | 12,280 | 28,493 | 27,965 | |||||||||||
Total operating expenses | 95,609 | 93,723 | 282,185 | 252,429 | |||||||||||
Interest expense: | |||||||||||||||
Contractual | 22,910 | 23,264 | 70,309 | 68,444 | |||||||||||
Amortization of deferred financing costs | 907 | 806 | 2,709 | 2,448 | |||||||||||
Financing obligations | (205 | ) | 201 | (357 | ) | 584 | |||||||||
23,612 | 24,271 | 72,661 | 71,476 | ||||||||||||
Other income: | |||||||||||||||
Interest and other income | 1,916 | 1,505 | 5,883 | 5,277 | |||||||||||
Losses on debt extinguishment | — | — | (973 | ) | (24 | ) | |||||||||
1,916 | 1,505 | 4,910 | 5,253 | ||||||||||||
Income from continuing operations before disposition of property, condominiums and investments in unconsolidated affiliates and equity in earnings of unconsolidated affiliates | 10,909 | 776 | 32,184 | 20,845 | |||||||||||
Gains on disposition of property | — | 262 | — | 462 | |||||||||||
Gains/(losses) on for-sale residential condominiums | 80 | (476 | ) | 255 | (322 | ) | |||||||||
Gains on disposition of investments in unconsolidated affiliates | — | 2,282 | — | 2,282 | |||||||||||
Equity in earnings of unconsolidated affiliates | 1,328 | 1,113 | 2,679 | 3,945 | |||||||||||
Income from continuing operations | 12,317 | 3,957 | 35,118 | 27,212 | |||||||||||
Discontinued operations: | |||||||||||||||
Income from discontinued operations | 547 | 1,714 | 4,062 | 5,348 | |||||||||||
Net gains on disposition of discontinued operations | 22,936 | 2,573 | 29,455 | 2,573 | |||||||||||
23,483 | 4,287 | 33,517 | 7,921 | ||||||||||||
Net income | 35,800 | 8,244 | 68,635 | 35,133 | |||||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | (159 | ) | (249 | ) | (566 | ) | (554 | ) | |||||||
Distributions on Preferred Units | (627 | ) | (627 | ) | (1,881 | ) | (3,926 | ) | |||||||
Excess of Preferred Unit redemption/repurchase cost over carrying value | — | — | — | (1,895 | ) | ||||||||||
Net income available for common unitholders | $ | 35,014 | $ | 7,368 | $ | 66,188 | $ | 28,758 | |||||||
Earnings per Common Unit – basic: | |||||||||||||||
Income from continuing operations available for common unitholders | $ | 0.15 | $ | 0.04 | $ | 0.42 | $ | 0.28 | |||||||
Income from discontinued operations available for common unitholders | 0.29 | 0.06 | 0.43 | 0.10 | |||||||||||
Net income available for common unitholders | $ | 0.44 | $ | 0.10 | $ | 0.85 | $ | 0.38 | |||||||
Weighted average Common Units outstanding – basic | 79,949 | 75,855 | 78,032 | 75,549 | |||||||||||
Earnings per Common Unit – diluted: | |||||||||||||||
Income from continuing operations available for common unitholders | $ | 0.15 | $ | 0.04 | $ | 0.42 | $ | 0.28 | |||||||
Income from discontinued operations available for common unitholders | 0.29 | 0.06 | 0.43 | 0.10 | |||||||||||
Net income available for common unitholders | $ | 0.44 | $ | 0.10 | $ | 0.85 | $ | 0.38 | |||||||
Weighted average Common Units outstanding – diluted | 80,086 | 75,993 | 78,159 | 75,718 | |||||||||||
Distributions declared per Common Unit | $ | 0.425 | $ | 0.425 | $ | 1.275 | $ | 1.275 | |||||||
Net income available for common unitholders: | |||||||||||||||
Income from continuing operations available for common unitholders | $ | 11,531 | $ | 3,081 | $ | 32,671 | $ | 20,837 | |||||||
Income from discontinued operations available for common unitholders | 23,483 | 4,287 | 33,517 | 7,921 | |||||||||||
Net income available for common unitholders | $ | 35,014 | $ | 7,368 | $ | 66,188 | $ | 28,758 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Comprehensive income/(loss): | |||||||||||||||
Net income | $ | 35,800 | $ | 8,244 | $ | 68,635 | $ | 35,133 | |||||||
Other comprehensive income/(loss): | |||||||||||||||
Unrealized gains/(losses) on tax increment financing bond | (101 | ) | 600 | 482 | 129 | ||||||||||
Unrealized losses on cash flow hedges | (3,337 | ) | — | (10,424 | ) | — | |||||||||
Amortization of cash flow hedges | 791 | (30 | ) | 2,250 | (87 | ) | |||||||||
Total other comprehensive income/(loss) | (2,647 | ) | 570 | (7,692 | ) | 42 | |||||||||
Total comprehensive income | $ | 33,153 | $ | 8,814 | $ | 60,943 | $ | 35,175 | |||||||
Less-comprehensive (income) attributable to noncontrolling interests | (159 | ) | (249 | ) | (566 | ) | (554 | ) | |||||||
Comprehensive income attributable to the Operating Partnership | $ | 32,994 | $ | 8,565 | $ | 60,377 | $ | 34,621 |
Common Units | Accumulated Other Comprehensive Loss | Noncontrolling Interests in Consolidated Affiliates | Total Partners’ Capital | ||||||||||||||||
General Partners’ Capital | Limited Partners’ Capital | ||||||||||||||||||
Balance at December 31, 2011 | $ | 9,575 | $ | 948,187 | $ | (5,734 | ) | $ | 4,646 | $ | 956,674 | ||||||||
Issuances of Common Units, net | 1,890 | 187,083 | — | — | 188,973 | ||||||||||||||
Distributions paid on Common Units | (994 | ) | (98,340 | ) | — | — | (99,334 | ) | |||||||||||
Distributions paid on Preferred Units | (19 | ) | (1,862 | ) | — | — | (1,881 | ) | |||||||||||
Share-based compensation expense | 65 | 6,399 | — | — | 6,464 | ||||||||||||||
Distributions to noncontrolling interests in consolidated affiliates | — | — | — | (663 | ) | (663 | ) | ||||||||||||
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner | (128 | ) | (12,686 | ) | — | — | (12,814 | ) | |||||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | (6 | ) | (560 | ) | — | 566 | — | ||||||||||||
Comprehensive income/(loss): | |||||||||||||||||||
Net income | 686 | 67,949 | — | — | 68,635 | ||||||||||||||
Other comprehensive loss | — | — | (7,692 | ) | — | (7,692 | ) | ||||||||||||
Total comprehensive income | 60,943 | ||||||||||||||||||
Balance at September 30, 2012 | $ | 11,069 | $ | 1,096,170 | $ | (13,426 | ) | $ | 4,549 | $ | 1,098,362 |
Common Units | Accumulated Other Comprehensive Loss | Noncontrolling Interests in Consolidated Affiliates | Total Partners’ Capital | ||||||||||||||||
General Partners’ Capital | Limited Partners’ Capital | ||||||||||||||||||
Balance at December 31, 2010 | $ | 10,044 | $ | 994,610 | $ | (3,648 | ) | $ | 4,460 | $ | 1,005,466 | ||||||||
Issuances of Common Units, net | 220 | 21,823 | — | — | 22,043 | ||||||||||||||
Distributions paid on Common Units | (962 | ) | (95,235 | ) | — | — | (96,197 | ) | |||||||||||
Distributions paid on Preferred Units | (39 | ) | (3,887 | ) | — | — | (3,926 | ) | |||||||||||
Share-based compensation expense | 48 | 4,723 | — | — | 4,771 | ||||||||||||||
Distributions to noncontrolling interests in consolidated affiliates | — | — | — | (391 | ) | (391 | ) | ||||||||||||
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner | 144 | 14,095 | — | — | 14,239 | ||||||||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | (6 | ) | (548 | ) | — | 554 | — | ||||||||||||
Comprehensive income/(loss): | |||||||||||||||||||
Net income | 351 | 34,782 | — | — | 35,133 | ||||||||||||||
Other comprehensive income | — | — | 42 | — | 42 | ||||||||||||||
Total comprehensive income | 35,175 | ||||||||||||||||||
Balance at September 30, 2011 | $ | 9,800 | $ | 970,363 | $ | (3,606 | ) | $ | 4,623 | $ | 981,180 |
Nine Months Ended September 30, | |||||||
2012 | 2011 | ||||||
Operating activities: | |||||||
Net income | $ | 68,635 | $ | 35,133 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 117,764 | 103,594 | |||||
Amortization of lease incentives and acquisition-related intangible assets and liabilities | 358 | 1,347 | |||||
Share-based compensation expense | 6,464 | 4,771 | |||||
Allowance for losses on accounts and accrued straight-line rents receivable | 1,235 | 1,586 | |||||
Amortization of deferred financing costs | 2,709 | 2,448 | |||||
Amortization of cash flow hedges | 2,250 | (87 | ) | ||||
Impairments of real estate assets | — | 2,429 | |||||
Losses on debt extinguishment | 973 | 24 | |||||
Net gains on disposition of property | (29,455 | ) | (3,035 | ) | |||
(Gains)/losses on for-sale residential condominiums | (255 | ) | 322 | ||||
Gains on disposition of investments in unconsolidated affiliates | — | (2,282 | ) | ||||
Equity in earnings of unconsolidated affiliates | (2,679 | ) | (3,945 | ) | |||
Changes in financing obligations | (1,010 | ) | (339 | ) | |||
Distributions of earnings from unconsolidated affiliates | 3,230 | 3,382 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 5,310 | (3,493 | ) | ||||
Prepaid expenses and other assets | (3,216 | ) | (542 | ) | |||
Accrued straight-line rents receivable | (13,609 | ) | (9,280 | ) | |||
Accounts payable, accrued expenses and other liabilities | (20,753 | ) | 4,118 | ||||
Net cash provided by operating activities | 137,951 | 136,151 | |||||
Investing activities: | |||||||
Investments in acquired real estate and related intangible assets, net of cash acquired | (158,200 | ) | (75,510 | ) | |||
Investments in development in process | (5,392 | ) | (5,835 | ) | |||
Investments in tenant improvements and deferred leasing costs | (61,821 | ) | (59,692 | ) | |||
Investments in building improvements | (27,229 | ) | (9,521 | ) | |||
Net proceeds from disposition of real estate assets | 152,456 | 16,530 | |||||
Net proceeds from disposition of for-sale residential condominiums | 3,768 | 2,770 | |||||
Proceeds from disposition of investments in unconsolidated affiliates | — | 4,756 | |||||
Distributions of capital from unconsolidated affiliates | 1,035 | 1,304 | |||||
Repayments of mortgages and notes receivable | 1,657 | 338 | |||||
Investments in and advances to unconsolidated affiliates | (3,928 | ) | (39,665 | ) | |||
Changes in restricted cash and other investing activities | 2,904 | (15,598 | ) | ||||
Net cash used in investing activities | (94,750 | ) | (180,123 | ) | |||
Financing activities: | |||||||
Distributions on Common Units | (99,334 | ) | (96,197 | ) | |||
Redemptions/repurchases of Preferred Units | — | (52,515 | ) | ||||
Distributions on Preferred Units | (1,881 | ) | (3,926 | ) | |||
Distributions to noncontrolling interests in consolidated affiliates | (663 | ) | (391 | ) | |||
Proceeds from the issuance of Common Units | 191,667 | 22,043 | |||||
Costs paid for the issuance of Common Units | (2,745 | ) | — | ||||
Repurchase of units related to tax withholdings | (2,248 | ) | — | ||||
Borrowings on revolving credit facility | 219,800 | 285,400 | |||||
Repayments of revolving credit facility | (492,800 | ) | (150,400 | ) | |||
Borrowings on mortgages and notes payable | 225,000 | 200,000 | |||||
Repayments of mortgages and notes payable | (77,264 | ) | (156,602 | ) | |||
Payments on financing obligations | (1,316 | ) | — | ||||
Additions to deferred financing costs and other financing activities | (3,394 | ) | (6,615 | ) | |||
Net cash provided by/(used in) financing activities | (45,178 | ) | 40,797 | ||||
Net decrease in cash and cash equivalents | $ | (1,977 | ) | $ | (3,175 | ) |
Nine Months Ended September 30, | |||||||
2012 | 2011 | ||||||
Net decrease in cash and cash equivalents | $ | (1,977 | ) | $ | (3,175 | ) | |
Cash and cash equivalents at beginning of the period | 11,151 | 14,198 | |||||
Cash and cash equivalents at end of the period | $ | 9,174 | $ | 11,023 |
Nine Months Ended September 30, | |||||||
2012 | 2011 | ||||||
Cash paid for interest, net of amounts capitalized | $ | 72,793 | $ | 69,321 |
Nine Months Ended September 30, | |||||||
2012 | 2011 | ||||||
Unrealized losses on cash flow hedges | $ | (10,424 | ) | $ | — | ||
Changes in accrued capital expenditures | 1,829 | 3,707 | |||||
Write-off of fully depreciated real estate assets | 36,918 | 39,039 | |||||
Write-off of fully amortized deferred financing and leasing costs | 14,189 | 13,683 | |||||
Unrealized gains/(losses) on marketable securities of non-qualified deferred compensation plan | 310 | (354 | ) | ||||
Adjustment of Redeemable Common Units to fair value | 10,187 | (14,843 | ) | ||||
Unrealized gains on tax increment financing bond | 482 | 129 | |||||
Assumption of mortgages and notes payable related to acquisition activities | — | 192,367 | |||||
Reduction of advances to unconsolidated affiliates related to acquisition activities | 26,000 | — | |||||
Issuances of Common Units to acquire real estate assets | 2,299 | — |
Total Purchase Price Allocation | |||
Real estate assets | $ | 135,128 | |
Acquisition-related intangible assets (in deferred financing and leasing costs) | 21,637 | ||
Acquisition-related below market lease liabilities (in accounts payable, accrued expenses and other liabilities) | (11,875 | ) | |
Total allocation | $ | 144,890 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Proforma rental and other revenues | $ | 132,632 | $ | 132,269 | $ | 395,161 | $ | 385,246 | |||||||
Proforma net income | $ | 35,769 | $ | 7,626 | $ | 68,535 | $ | 33,280 | |||||||
Proforma earnings per share - basic | $ | 0.44 | $ | 0.09 | $ | 0.85 | $ | 0.36 | |||||||
Proforma earnings per share - diluted | $ | 0.44 | $ | 0.09 | $ | 0.85 | $ | 0.36 |
• | an office property in Kansas City, MO for $6.5 million and recorded gain on disposition of discontinued operations of $1.9 million. |
• | five office buildings in Nashville, TN for $41.0 million and recorded gain on disposition of discontinued operations of $7.0 million. |
• | three buildings in Jackson, MS and Atlanta, GA for $86.5 million and recorded gain on disposition of discontinued operations of $14.0 million. |
September 30, 2012 | December 31, 2011 | ||||||
Seller financing (first mortgages) | $ | 15,853 | $ | 17,180 | |||
Less allowance | — | — | |||||
15,853 | 17,180 | ||||||
Promissory notes | 1,301 | 1,481 | |||||
Less allowance | (211 | ) | (61 | ) | |||
1,090 | 1,420 | ||||||
Mortgages and notes receivable, net | $ | 16,943 | $ | 18,600 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Beginning notes receivable allowance | $ | 118 | $ | 617 | $ | 61 | $ | 868 | |||||||
Bad debt expense | — | — | — | 184 | |||||||||||
Recoveries/write-offs/other | 93 | (72 | ) | 150 | (507 | ) | |||||||||
Total notes receivable allowance | $ | 211 | $ | 545 | $ | 211 | $ | 545 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Income Statements: | |||||||||||||||
Rental and other revenues | $ | 24,062 | $ | 24,618 | $ | 72,916 | $ | 72,576 | |||||||
Expenses: | |||||||||||||||
Rental property and other expenses | 11,024 | 10,239 | 33,901 | 31,765 | |||||||||||
Depreciation and amortization | 6,044 | 6,437 | 17,905 | 18,736 | |||||||||||
Impairments of real estate assets | — | — | 7,180 | — | |||||||||||
Interest expense | 4,817 | 5,802 | 15,583 | 17,310 | |||||||||||
Total expenses | 21,885 | 22,478 | 74,569 | 67,811 | |||||||||||
Income/(loss) before disposition of properties | 2,177 | 2,140 | (1,653 | ) | 4,765 | ||||||||||
Gains on disposition of properties | — | — | 6,275 | — | |||||||||||
Net income | $ | 2,177 | $ | 2,140 | $ | 4,622 | $ | 4,765 | |||||||
Our share of: | |||||||||||||||
Depreciation and amortization of real estate assets | $ | 1,989 | $ | 2,028 | $ | 5,684 | $ | 6,078 | |||||||
Impairments of real estate assets | $ | — | $ | — | $ | 1,002 | $ | — | |||||||
Interest expense | $ | 1,754 | $ | 1,944 | $ | 5,536 | $ | 6,093 | |||||||
Net income | $ | 925 | $ | 448 | $ | 1,281 | $ | 2,142 | |||||||
Our share of net income | $ | 925 | $ | 448 | $ | 1,281 | $ | 2,142 | |||||||
Adjustments for management and other fees | 403 | 665 | 1,398 | 1,803 | |||||||||||
Equity in earnings of unconsolidated affiliates | $ | 1,328 | $ | 1,113 | $ | 2,679 | $ | 3,945 |
September 30, 2012 | December 31, 2011 | ||||||
Assets: | |||||||
Deferred financing costs | $ | 19,952 | $ | 18,044 | |||
Less accumulated amortization | (8,115 | ) | (5,797 | ) | |||
11,837 | 12,247 | ||||||
Deferred leasing costs (including lease incentives and acquisition-related intangible assets) | 202,797 | 172,049 | |||||
Less accumulated amortization | (65,464 | ) | (56,522 | ) | |||
137,333 | 115,527 | ||||||
Deferred financing and leasing costs, net | $ | 149,170 | $ | 127,774 | |||
Liabilities (in accounts payable, accrued expenses and other liabilities): | |||||||
Acquisition-related below market lease liabilities | $ | 28,015 | $ | 16,441 | |||
Less accumulated amortization | (2,556 | ) | (971 | ) | |||
$ | 25,459 | $ | 15,470 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Amortization of deferred financing costs | $ | 907 | $ | 806 | $ | 2,709 | $ | 2,448 | |||||||
Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization) | $ | 6,836 | $ | 5,189 | $ | 20,542 | $ | 13,945 | |||||||
Amortization of lease incentives (in rental and other revenues) | $ | 393 | $ | 369 | $ | 1,075 | $ | 1,010 | |||||||
Amortization of acquisition-related intangible assets (in rental and other revenues) | $ | 433 | $ | 239 | $ | 1,027 | $ | 617 | |||||||
Amortization of acquisition-related intangible assets (in rental property and other expenses) | $ | 46 | $ | — | $ | 46 | $ | — | |||||||
Amortization of acquisition-related below market lease liabilities (in rental and other revenues) | $ | (647 | ) | $ | (230 | ) | $ | (1,744 | ) | $ | (280 | ) |
Amortization of Deferred Financing Costs | 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, 2012 | $ | 1,069 | $ | 7,020 | $ | 349 | $ | 293 | $ | 140 | $ | (802 | ) | |||||||||||
2013 | 3,381 | 25,080 | 1,286 | 991 | 553 | (3,168 | ) | |||||||||||||||||
2014 | 3,009 | 21,190 | 1,134 | 734 | 553 | (3,106 | ) | |||||||||||||||||
2015 | 2,395 | 17,216 | 902 | 549 | 553 | (2,894 | ) | |||||||||||||||||
2016 | 1,024 | 14,047 | 708 | 489 | 553 | (2,603 | ) | |||||||||||||||||
Thereafter | 959 | 37,292 | 2,536 | 969 | 2,196 | (12,886 | ) | |||||||||||||||||
$ | 11,837 | $ | 121,845 | $ | 6,915 | $ | 4,025 | $ | 4,548 | $ | (25,459 | ) | ||||||||||||
Weighted average remaining amortization periods as of September 30, 2012 (in years) | 3.6 | 7.1 | 7.6 | 5.6 | 8.2 | 9.9 |
Above Market Lease Intangible Assets | In-Place Lease Intangible Assets | Tax Abatement Intangible Assets | Below Market Lease Liabilities | |||||||||||||
Amount recorded from acquisition activity | $ | 1,285 | $ | 21,479 | $ | 4,593 | $ | (11,875 | ) | |||||||
Weighted average remaining amortization periods (in years) | 5.3 | 9.2 | 8.2 | 11.3 |
September 30, 2012 | December 31, 2011 | ||||||
Secured indebtedness | $ | 685,390 | $ | 715,742 | |||
Unsecured indebtedness | 1,093,165 | 1,153,164 | |||||
Total mortgages and notes payable | $ | 1,778,555 | $ | 1,868,906 |
7. | Derivative Financial Instruments |
September 30, 2012 | December 31, 2011 | ||||||
Liability Derivatives: | |||||||
Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities: | |||||||
Interest rate swaps | $ | 10,274 | $ | 2,202 |
7. | Derivative Financial Instruments - Continued |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Derivatives Designated as Cash Flow Hedges: | |||||||||||||||
Amount of unrealized losses recognized in AOCL on derivatives (effective portion): | |||||||||||||||
Interest rate swaps | $ | (3,337 | ) | $ | — | $ | (10,424 | ) | $ | — | |||||
Amount of (gains)/losses reclassified out of AOCL into contractual interest expense (effective portion): | |||||||||||||||
Interest rate swaps | $ | 791 | $ | (30 | ) | $ | 2,250 | $ | (87 | ) |
8. | Noncontrolling Interests |
9. | Disclosure About Fair Value of Financial Instruments |
9. | Disclosure About Fair Value of Financial Instruments - Continued |
Level 1 | Level 2 | Level 3 | |||||||||||||
September 30, 2012 | Quoted Prices in Active Markets for Identical Assets or Liabilities | Significant Observable Inputs | Significant Unobservable Inputs | ||||||||||||
Assets: | |||||||||||||||
Mortgages and notes receivable, at fair value (1) | $ | 17,382 | $ | — | $ | 17,382 | $ | — | |||||||
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) | 3,264 | 3,264 | — | — | |||||||||||
Tax increment financing bond (in prepaid expenses and other assets) | 15,270 | — | — | 15,270 | |||||||||||
Total Assets | $ | 35,916 | $ | 3,264 | $ | 17,382 | $ | 15,270 | |||||||
Liabilities: | |||||||||||||||
Mortgages and notes payable, at fair value (1) | $ | 1,889,775 | $ | — | $ | 1,889,775 | $ | — | |||||||
Interest rate swaps (in accounts payable, accrued expenses and other liabilities) | 10,274 | — | 10,274 | — | |||||||||||
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 3,264 | 3,264 | — | — | |||||||||||
Contingent consideration to acquire real estate assets (in accounts payable, accrued expenses and other liabilities) | 563 | — | — | 563 | |||||||||||
Financing obligations, at fair value (1) | 18,930 | — | — | 18,930 | |||||||||||
Total Liabilities | $ | 1,922,806 | $ | 3,264 | $ | 1,900,049 | $ | 19,493 |
9. | Disclosure About Fair Value of Financial Instruments - Continued |
Level 1 | Level 2 | Level 3 | |||||||||||||
December 31, 2011 | Quoted Prices in Active Markets for Identical Assets or Liabilities | Significant Observable Inputs | Significant Unobservable Inputs | ||||||||||||
Assets: | |||||||||||||||
Mortgages and notes receivable, at fair value (1) | $ | 18,990 | $ | — | $ | 18,990 | $ | — | |||||||
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) | 3,149 | 3,149 | — | — | |||||||||||
Tax increment financing bond (in prepaid expenses and other assets) | 14,788 | — | — | 14,788 | |||||||||||
Impaired real estate assets and for-sale residential condominiums | 12,767 | — | — | 12,767 | |||||||||||
Total Assets | $ | 49,694 | $ | 3,149 | $ | 18,990 | $ | 27,555 | |||||||
Liabilities: | |||||||||||||||
Mortgages and notes payable, at fair value (1) | $ | 1,959,438 | $ | — | $ | 1,959,438 | $ | — | |||||||
Interest rate swaps (in accounts payable, accrued expenses and other liabilities) | 2,202 | — | 2,202 | — | |||||||||||
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 3,149 | 3,149 | — | — | |||||||||||
Financing obligations, at fair value (1) | 18,866 | — | — | 18,866 | |||||||||||
Total Liabilities | $ | 1,983,655 | $ | 3,149 | $ | 1,961,640 | $ | 18,866 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Asset: | |||||||||||||||
Tax Increment Financing Bond: | |||||||||||||||
Beginning balance | $ | 15,371 | $ | 15,228 | $ | 14,788 | $ | 15,699 | |||||||
Unrealized gains/(losses) (in AOCL) | (101 | ) | 600 | 482 | 129 | ||||||||||
Ending balance | $ | 15,270 | $ | 15,828 | $ | 15,270 | $ | 15,828 | |||||||
Liability: | |||||||||||||||
Contingent Consideration to Acquire Real Estate Assets: | |||||||||||||||
Beginning balance | $ | 677 | $ | — | $ | 677 | $ | — | |||||||
Unrealized gains (in general and administrative) | (114 | ) | — | (114 | ) | — | |||||||||
Ending balance | $ | 563 | $ | — | $ | 563 | $ | — |
9. | Disclosure About Fair Value of Financial Instruments - Continued |
Fair Value at September 30, 2012 | Valuation Technique | Unobservable Input | Rate/ Percentage | |||||||
Tax increment financing bond | $ | 15,270 | Income approach | Discount rate | 10.73 | % | ||||
Contingent consideration to acquire real estate assets | $ | 563 | Income approach | Payout percentage | 75.00 | % |
10. | Share-based Payments |
11. | Accumulated Other Comprehensive Loss |
Nine Months Ended September 30, | |||||||
2012 | 2011 | ||||||
Tax increment financing bond: | |||||||
Beginning balance | $ | (2,309 | ) | $ | (2,543 | ) | |
Unrealized gains/(losses) on tax increment financing bond | 482 | 129 | |||||
Ending balance | (1,827 | ) | (2,414 | ) | |||
Cash flow hedges: | |||||||
Beginning balance | (3,425 | ) | (1,105 | ) | |||
Unrealized losses on cash flow hedges | (10,424 | ) | — | ||||
Amortization of cash flow hedges | 2,250 | (87 | ) | ||||
Ending balance | (11,599 | ) | (1,192 | ) | |||
Total accumulated other comprehensive loss | $ | (13,426 | ) | $ | (3,606 | ) |
12. | Discontinued Operations |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Rental and other revenues | $ | 875 | $ | 5,301 | $ | 10,120 | $ | 16,219 | |||||||
Operating expenses: | |||||||||||||||
Rental property and other expenses | 293 | 2,199 | 3,766 | 6,572 | |||||||||||
Depreciation and amortization | — | 1,269 | 2,009 | 3,935 | |||||||||||
Total operating expenses | 293 | 3,468 | 5,775 | 10,507 | |||||||||||
Interest expense | 35 | 119 | 283 | 364 | |||||||||||
Income from discontinued operations | 547 | 1,714 | 4,062 | 5,348 | |||||||||||
Net gains on disposition of discontinued operations | 22,936 | 2,573 | 29,455 | 2,573 | |||||||||||
Total discontinued operations | $ | 23,483 | $ | 4,287 | $ | 33,517 | $ | 7,921 |
September 30, 2012 | December 31, 2011 | ||||||
Assets: | |||||||
Land | $ | — | $ | 14,077 | |||
Buildings and tenant improvements | — | 135,013 | |||||
Less-accumulated depreciation | — | (32,254 | ) | ||||
Net real estate assets | — | 116,836 | |||||
Accrued straight-line rents receivable | — | 6,520 | |||||
Deferred leasing costs, net | — | 811 | |||||
Prepaid expenses and other assets | — | 106 | |||||
Real estate and other assets, net, held for sale | $ | — | $ | 124,273 | |||
Liabilities: | |||||||
Mortgages and notes payable | $ | — | $ | 34,307 | |||
Accrued expenses and other liabilities | — | 214 | |||||
Financing obligations | — | 1,294 | |||||
Liabilities, net, held for sale | $ | — | $ | 35,815 |
13. | Earnings Per Unit |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Earnings per Common Unit - basic: | |||||||||||||||
Numerator: | |||||||||||||||
Income from continuing operations | $ | 12,317 | $ | 3,957 | $ | 35,118 | $ | 27,212 | |||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations | (159 | ) | (249 | ) | (566 | ) | (554 | ) | |||||||
Distributions on Preferred Units | (627 | ) | (627 | ) | (1,881 | ) | (3,926 | ) | |||||||
Excess of Preferred Unit redemption/repurchase cost over carrying value | — | — | — | (1,895 | ) | ||||||||||
Income from continuing operations available for common unitholders | 11,531 | 3,081 | 32,671 | 20,837 | |||||||||||
Income from discontinued operations available for common unitholders | 23,483 | 4,287 | 33,517 | 7,921 | |||||||||||
Net income available for common unitholders | $ | 35,014 | $ | 7,368 | $ | 66,188 | $ | 28,758 | |||||||
Denominator: | |||||||||||||||
Denominator for basic earnings per Common Unit – weighted average units (1) (2) | 79,949 | 75,855 | 78,032 | 75,549 | |||||||||||
Earnings per Common Unit - basic: | |||||||||||||||
Income from continuing operations available for common unitholders | $ | 0.15 | $ | 0.04 | $ | 0.42 | $ | 0.28 | |||||||
Income from discontinued operations available for common unitholders | 0.29 | 0.06 | 0.43 | 0.10 | |||||||||||
Net income available for common unitholders | $ | 0.44 | $ | 0.10 | $ | 0.85 | $ | 0.38 | |||||||
Earnings per Common Unit - diluted: | |||||||||||||||
Numerator: | |||||||||||||||
Income from continuing operations | $ | 12,317 | $ | 3,957 | $ | 35,118 | $ | 27,212 | |||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations | (159 | ) | (249 | ) | (566 | ) | (554 | ) | |||||||
Distributions on Preferred Units | (627 | ) | (627 | ) | (1,881 | ) | (3,926 | ) | |||||||
Excess of Preferred Unit redemption/repurchase cost over carrying value | — | — | — | (1,895 | ) | ||||||||||
Income from continuing operations available for common unitholders | 11,531 | 3,081 | 32,671 | 20,837 | |||||||||||
Income from discontinued operations available for common unitholders | 23,483 | 4,287 | 33,517 | 7,921 | |||||||||||
Net income available for common unitholders | $ | 35,014 | $ | 7,368 | $ | 66,188 | $ | 28,758 | |||||||
Denominator: | |||||||||||||||
Denominator for basic earnings per Common Unit –weighted average units (1) (2) | 79,949 | 75,855 | 78,032 | 75,549 | |||||||||||
Add: | |||||||||||||||
Stock options using the treasury method | 137 | 138 | 127 | 169 | |||||||||||
Denominator for diluted earnings per Common Unit – adjusted weighted average units and assumed conversions (1) | 80,086 | 75,993 | 78,159 | 75,718 | |||||||||||
Earnings per Common Unit - diluted: | |||||||||||||||
Income from continuing operations available for common unitholders | $ | 0.15 | $ | 0.04 | $ | 0.42 | $ | 0.28 | |||||||
Income from discontinued operations available for common unitholders | 0.29 | 0.06 | 0.43 | 0.10 | |||||||||||
Net income available for common unitholders | $ | 0.44 | $ | 0.10 | $ | 0.85 | $ | 0.38 |
(1) | There were 0.5 million and 0.4 million options outstanding during the three months ended September 30, 2012 and 2011, respectively, and 0.5 million and 0.3 million options outstanding during the nine months ended September 30, 2012 and 2011, respectively, that were not included in the computation of diluted earnings per unit because the impact of including such options would be anti-dilutive. |
(2) | Includes all unvested restricted stock since dividends on restricted stock are non-forfeitable. |
14. | Segment Information |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Rental and Other Revenues: (1) | |||||||||||||||
Office: | |||||||||||||||
Atlanta, GA | $ | 14,074 | $ | 12,167 | $ | 44,315 | $ | 34,701 | |||||||
Greenville, SC | 3,297 | 3,617 | 10,289 | 10,558 | |||||||||||
Kansas City, MO | 4,015 | 3,412 | 11,176 | 10,371 | |||||||||||
Memphis, TN | 9,106 | 9,393 | 27,612 | 27,808 | |||||||||||
Nashville, TN | 14,289 | 13,793 | 42,471 | 40,106 | |||||||||||
Orlando, FL | 2,747 | 2,676 | 8,189 | 7,612 | |||||||||||
Piedmont Triad, NC | 5,603 | 4,913 | 15,753 | 15,546 | |||||||||||
Pittsburgh, PA | 9,485 | 1,568 | 27,681 | 1,568 | |||||||||||
Raleigh, NC | 20,585 | 20,047 | 60,758 | 59,462 | |||||||||||
Richmond, VA | 11,852 | 13,375 | 35,453 | 36,425 | |||||||||||
Tampa, FL | 17,615 | 17,370 | 52,324 | 50,808 | |||||||||||
Total Office Segment | 112,668 | 102,331 | 336,021 | 294,965 | |||||||||||
Industrial: | |||||||||||||||
Atlanta, GA | 3,215 | 3,293 | 9,522 | 9,989 | |||||||||||
Piedmont Triad, NC | 3,142 | 3,151 | 9,392 | 8,953 | |||||||||||
Total Industrial Segment | 6,357 | 6,444 | 18,914 | 18,942 | |||||||||||
Retail: | |||||||||||||||
Kansas City, MO | 9,189 | 8,490 | 27,185 | 25,590 | |||||||||||
Total Retail Segment | 9,189 | 8,490 | 27,185 | 25,590 | |||||||||||
Total Rental and Other Revenues | $ | 128,214 | $ | 117,265 | $ | 382,120 | $ | 339,497 |
14. | Segment Information - Continued |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Net Operating Income: (1) | |||||||||||||||
Office: | |||||||||||||||
Atlanta, GA | $ | 8,708 | $ | 7,409 | $ | 28,239 | $ | 21,556 | |||||||
Greenville, SC | 1,809 | 2,098 | 5,994 | 6,237 | |||||||||||
Kansas City, MO | 2,549 | 2,002 | 7,070 | 6,254 | |||||||||||
Memphis, TN | 5,386 | 5,171 | 16,247 | 15,295 | |||||||||||
Nashville, TN | 9,786 | 9,282 | 29,285 | 27,271 | |||||||||||
Orlando, FL | 1,369 | 1,379 | 4,217 | 3,829 | |||||||||||
Piedmont Triad, NC | 3,333 | 2,898 | 9,788 | 9,943 | |||||||||||
Pittsburgh, PA | 4,957 | 888 | 13,862 | 888 | |||||||||||
Raleigh, NC | 13,920 | 13,913 | 42,083 | 41,383 | |||||||||||
Richmond, VA | 7,875 | 7,774 | 24,302 | 23,851 | |||||||||||
Tampa, FL | 11,087 | 10,797 | 32,750 | 31,473 | |||||||||||
Total Office Segment | 70,779 | 63,611 | 213,837 | 187,980 | |||||||||||
Industrial: | |||||||||||||||
Atlanta, GA | 2,333 | 2,408 | 6,942 | 7,416 | |||||||||||
Piedmont Triad, NC | 2,259 | 2,253 | 6,857 | 6,581 | |||||||||||
Total Industrial Segment | 4,592 | 4,661 | 13,799 | 13,997 | |||||||||||
Retail: | |||||||||||||||
Kansas City, MO | 5,684 | 5,030 | 16,547 | 15,144 | |||||||||||
Total Retail Segment | 5,684 | 5,030 | 16,547 | 15,144 | |||||||||||
Total Net Operating Income | 81,055 | 73,302 | 244,183 | 217,121 | |||||||||||
Reconciliation to income from continuing operations before disposition of property, condominiums and investments in unconsolidated affiliates and equity in earnings of unconsolidated affiliates: | |||||||||||||||
Depreciation and amortization | (38,651 | ) | (35,051 | ) | (115,755 | ) | (99,659 | ) | |||||||
Impairments of assets held for use | — | (2,429 | ) | — | (2,429 | ) | |||||||||
General and administrative | (9,799 | ) | (12,280 | ) | (28,493 | ) | (27,965 | ) | |||||||
Interest expense | (23,612 | ) | (24,271 | ) | (72,661 | ) | (71,476 | ) | |||||||
Other income | 1,916 | 1,505 | 4,910 | 5,253 | |||||||||||
Income from continuing operations before disposition of property, condominiums and investments in unconsolidated affiliates and equity in earnings of unconsolidated affiliates | $ | 10,909 | $ | 776 | $ | 32,184 | $ | 20,845 |
(1) | Net of discontinued operations. |
15. | Subsequent Events |
• | the financial condition of our customers could deteriorate; |
• | we may not be able to lease or release 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 our 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 by our competitors in our existing markets could result in an excessive supply of office, industrial and retail properties relative to customer demand; |
• | our markets may suffer declines in economic 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 to repay or refinance outstanding debt upon maturity; and |
• | the Company could lose key executive officers. |
• | owning high-quality, differentiated real estate assets in the better submarkets in our core markets; |
• | improving the operating results of our existing properties through concentrated leasing, asset management, cost control and customer service efforts; |
• | developing and acquiring office properties in key infill submarkets that improve the overall quality of our portfolio and generate attractive returns over the long-term for our stockholders; |
• | selectively disposing of properties no longer considered to be core assets primarily due to location, age, quality and overall strategic fit; and |
• | maintaining a conservative, flexible balance sheet with ample liquidity to meet our funding needs and growth prospects. |
Nine Months Ended September 30, | |||||||||||
2012 | 2011 | Change | |||||||||
Net Cash Provided By Operating Activities | $ | 138,018 | $ | 136,125 | $ | 1,893 | |||||
Net Cash Used In Investing Activities | (94,750 | ) | (180,123 | ) | 85,373 | ||||||
Net Cash Provided By/(Used In) Financing Activities | (45,370 | ) | 40,880 | (86,250 | ) | ||||||
Total Cash Flows | $ | (2,102 | ) | $ | (3,118 | ) | $ | 1,016 |
September 30, 2012 | December 31, 2011 | ||||||
Mortgages and notes payable, at recorded book value | $ | 1,778,555 | $ | 1,903,213 | |||
Financing obligations | $ | 27,791 | $ | 31,444 | |||
Preferred Stock, at liquidation value | $ | 29,077 | $ | 29,077 | |||
Common Stock outstanding | 78,530 | 72,648 | |||||
Common Units outstanding (not owned by the Company) | 3,775 | 3,730 | |||||
Per share stock price at period end | $ | 32.62 | $ | 29.67 | |||
Market value of Common Stock and Common Units | $ | 2,684,789 | $ | 2,266,135 | |||
Total market capitalization | $ | 4,520,212 | $ | 4,229,869 |
• | cash flow from operating activities; |
• | 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. |
• | an office property in Kansas City, MO for $6.5 million and recorded gain on disposition of discontinued operations of $1.9 million. |
• | five office buildings in Nashville, TN for $41.0 million and recorded gain on disposition of discontinued operations of $7.0 million. |
• | three buildings in Jackson, MS and Atlanta, GA for $86.5 million and recorded gain on disposition of discontinued operations of $14.0 million. |
• | 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 proportionate share of adjustments, including depreciation and amortization of depreciable operating properties, for unconsolidated partnerships and joint ventures (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, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Funds from operations: | |||||||||||||||
Net income | $ | 35,796 | $ | 8,244 | $ | 68,626 | $ | 35,121 | |||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | (159 | ) | (249 | ) | (566 | ) | (554 | ) | |||||||
Depreciation and amortization of real estate assets | 38,093 | 34,534 | 114,233 | 98,249 | |||||||||||
Impairments of depreciable properties | — | 2,429 | — | 2,429 | |||||||||||
Unconsolidated affiliates: | |||||||||||||||
Depreciation and amortization of real estate assets | 2,028 | 2,066 | 5,801 | 6,192 | |||||||||||
Impairments of depreciable properties | — | — | 1,002 | — | |||||||||||
Discontinued operations: | |||||||||||||||
Depreciation and amortization of real estate assets | — | 1,269 | 2,009 | 3,935 | |||||||||||
(Gains) on disposition of depreciable properties | (22,936 | ) | (2,573 | ) | (29,455 | ) | (2,573 | ) | |||||||
Funds from operations | 52,822 | 45,720 | 161,650 | 142,799 | |||||||||||
Dividends on Preferred Stock | (627 | ) | (627 | ) | (1,881 | ) | (3,926 | ) | |||||||
Excess of Preferred Stock redemption/repurchase cost over carrying value | — | — | — | (1,895 | ) | ||||||||||
Funds from operations available for common stockholders | $ | 52,195 | $ | 45,093 | $ | 159,769 | $ | 136,978 | |||||||
Funds from operations available for common stockholders per share | $ | 0.65 | $ | 0.59 | $ | 2.03 | $ | 1.80 | |||||||
Weighted average shares outstanding (1) | 80,495 | 76,402 | 78,568 | 76,127 |
(1) | Includes assumed conversion of all potentially dilutive Common Stock equivalents. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Income from continuing operations before disposition of property, condominiums and investments in unconsolidated affiliates and equity in earnings of unconsolidated affiliates | $ | 10,909 | $ | 776 | $ | 32,184 | $ | 20,845 | |||||||
Other (income) | (1,916 | ) | (1,505 | ) | (4,910 | ) | (5,253 | ) | |||||||
Interest expense | 23,612 | 24,271 | 72,661 | 71,476 | |||||||||||
General and administrative | 9,725 | 12,212 | 28,298 | 27,983 | |||||||||||
Impairments of real estate assets | — | 2,429 | — | 2,429 | |||||||||||
Depreciation and amortization | 38,651 | 35,051 | 115,755 | 99,659 | |||||||||||
Net operating income from continuing operations | 80,981 | 73,234 | 243,988 | 217,139 | |||||||||||
Less – non same property and other net operating income | 10,140 | 3,501 | 27,142 | 7,149 | |||||||||||
Total same property net operating income from continuing operations | $ | 70,841 | $ | 69,733 | $ | 216,846 | $ | 209,990 | |||||||
Rental and other revenues | $ | 128,214 | $ | 117,265 | $ | 382,120 | $ | 339,497 | |||||||
Rental property and other expenses | 47,233 | 44,031 | 138,132 | 122,358 | |||||||||||
Total net operating income from continuing operations | 80,981 | 73,234 | 243,988 | 217,139 | |||||||||||
Less – non same property and other net operating income | 10,140 | 3,501 | 27,142 | 7,149 | |||||||||||
Total same property net operating income from continuing operations | $ | 70,841 | $ | 69,733 | $ | 216,846 | $ | 209,990 | |||||||
Total same property net operating income from continuing operations | $ | 70,841 | $ | 69,733 | $ | 216,846 | $ | 209,990 | |||||||
Less – straight-line rent and lease termination fees | 2,002 | 2,697 | 9,276 | 8,876 | |||||||||||
Same property cash net operating income from continuing operations | $ | 68,839 | $ | 67,036 | $ | 207,570 | $ | 201,114 |
Exhibit Number | Description |
1 | Form of Equity Distribution Agreement, dated September 5, 2012, among the Company, the Operating Partnership and each of the firms named therein (filed as part of the Company's Current Report on Form 8-K dated September 5, 2012) |
10.1 | Second Amendment, dated as of October 11, 2012, to Credit Agreement, dated as of February 2, 2011, by and among the Company, the Operating Partnership and the Subsidiaries named therein and the Lenders named therein (filed as part of the Company's Current Report on Form 8-K dated October 11, 2012) |
10.2 | First Amendment, dated as of October 11, 2012, to Credit Agreement, dated as of January 11, 2012, by and among the Company, the Operating Partnership and the Subsidiaries named therein and the Lenders named therein (filed as part of the Company's Current Report on Form 8-K dated October 11, 2012) |
10.3 | First Amendment, dated as of October 12, 2012, to Third Amended and Restated Credit Agreement, dated as of July 27, 2011, by and among the Company, the Operating Partnership and the Subsidiaries named therein and the Lenders named therein (filed as part of the Company's Current Report on Form 8-K dated October 11, 2012) |
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/ Terry L. Stevens |
Terry L. Stevens | |
Senior Vice President and Chief Financial Officer |
Highwoods Realty Limited Partnership | |
By: | Highwoods Properties, Inc., its sole general partner |
By: | /s/ Terry L. Stevens |
Terry L. Stevens | |
Senior Vice President and Chief Financial Officer |
Nine Months Ended September 30, 2012 | ||||
Earnings: | ||||
Income from continuing operations before equity in earnings of unconsolidated affiliates | $ | 32,439 | ||
Fixed charges | 74,388 | |||
Capitalized interest | (666 | ) | ||
Distributions of earnings from unconsolidated affiliates | 3,249 | |||
Total earnings | $ | 109,410 | ||
Fixed charges and Preferred Stock dividends: | ||||
Contractual interest expense | $ | 70,309 | ||
Amortization of deferred financing costs | 2,709 | |||
Financing obligations interest expense | (357 | ) | ||
Capitalized interest | 666 | |||
Interest component of rental expense | 1,061 | |||
Total fixed charges | 74,388 | |||
Preferred Stock dividends | 1,881 | |||
Total fixed charges and Preferred Stock dividends | $ | 76,269 | ||
Ratio of earnings to fixed charges | 1.47 | |||
Ratio of earnings to combined fixed charges and Preferred Stock dividends | 1.43 |
Nine Months Ended September 30, 2012 | ||||
Earnings: | ||||
Income from continuing operations before equity in earnings of unconsolidated affiliates | $ | 32,439 | ||
Fixed charges | 74,388 | |||
Capitalized interest | (666 | ) | ||
Distributions of earnings from unconsolidated affiliates | 3,230 | |||
Total earnings | $ | 109,391 | ||
Fixed charges and Preferred Unit distributions: | ||||
Contractual interest expense | $ | 70,309 | ||
Amortization of deferred financing costs | 2,709 | |||
Financing obligations interest expense | (357 | ) | ||
Capitalized interest | 666 | |||
Interest component of rental expense | 1,061 | |||
Total fixed charges | 74,388 | |||
Preferred Unit distributions | 1,881 | |||
Total fixed charges and Preferred Unit distributions | $ | 76,269 | ||
Ratio of earnings to fixed charges | 1.47 | |||
Ratio of earnings to combined fixed charges and Preferred Unit distributions | 1.43 |
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/ Terry L. Stevens |
Terry L. Stevens Senior 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/ Terry L. Stevens |
Terry L. Stevens Senior 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 30, 2012 |
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/ Terry L. Stevens |
Terry L. Stevens Senior Vice President and Chief Financial Officer |
October 30, 2012 |
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 30, 2012 |
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/ Terry L. Stevens |
Terry L. Stevens Senior Vice President and Chief Financial Officer of the General Partner |
October 30, 2012 |
Investments In and Advances To Affiliates (Details) (USD $)
|
3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
SF-Harborview Plaza, LP Joint Venture [Member]
|
Sep. 30, 2012
Highwoods DLF 98/29, LLC Joint Venture [Member]
|
Mar. 31, 2012
Highwoods DLF 98/29, LLC Joint Venture [Member]
property
|
Sep. 30, 2011
Highwoods DLF 98/29, LLC Joint Venture [Member]
|
Jun. 30, 2011
Highwoods DLF 98/29, LLC Joint Venture [Member]
|
Sep. 30, 2012
Highwoods DLF 98/29, LLC Joint Venture [Member]
|
Sep. 30, 2011
Highwoods DLF 98/29, LLC Joint Venture [Member]
|
Jun. 30, 2012
Highwoods DLF 98/29, LLC Joint Venture [Member]
|
Jun. 30, 2012
Highwoods DLF 97/26 DLF 99/32, LP Joint Venture [Member]
|
Sep. 30, 2012
Highwoods DLF 97/26 DLF 99/32, LP Joint Venture [Member]
|
Sep. 30, 2012
Highwoods Realty Limited Partnership [Member]
|
Sep. 30, 2011
Highwoods Realty Limited Partnership [Member]
|
Sep. 30, 2012
Highwoods Realty Limited Partnership [Member]
|
Sep. 30, 2011
Highwoods Realty Limited Partnership [Member]
|
Sep. 30, 2012
Highwoods Realty Limited Partnership [Member]
SF-Harborview Plaza, LP Joint Venture [Member]
|
Sep. 30, 2012
Highwoods Realty Limited Partnership [Member]
Highwoods DLF 98/29, LLC Joint Venture [Member]
|
Mar. 31, 2012
Highwoods Realty Limited Partnership [Member]
Highwoods DLF 98/29, LLC Joint Venture [Member]
property
|
Sep. 30, 2011
Highwoods Realty Limited Partnership [Member]
Highwoods DLF 98/29, LLC Joint Venture [Member]
|
Jun. 30, 2011
Highwoods Realty Limited Partnership [Member]
Highwoods DLF 98/29, LLC Joint Venture [Member]
|
Sep. 30, 2012
Highwoods Realty Limited Partnership [Member]
Highwoods DLF 98/29, LLC Joint Venture [Member]
|
Sep. 30, 2011
Highwoods Realty Limited Partnership [Member]
Highwoods DLF 98/29, LLC Joint Venture [Member]
|
Jun. 30, 2012
Highwoods Realty Limited Partnership [Member]
Highwoods DLF 98/29, LLC Joint Venture [Member]
|
Jun. 30, 2012
Highwoods Realty Limited Partnership [Member]
Highwoods DLF 97/26 DLF 99/32, LP Joint Venture [Member]
|
|
Income Statements: | |||||||||||||||||||||||||||
Rental and other revenues | $ 25,051,000 | $ 25,623,000 | $ 75,920,000 | $ 75,619,000 | $ 24,062,000 | $ 24,618,000 | $ 72,916,000 | $ 72,576,000 | |||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||
Rental property and other expenses | 11,624,000 | 10,805,000 | 35,706,000 | 33,576,000 | 11,024,000 | 10,239,000 | 33,901,000 | 31,765,000 | |||||||||||||||||||
Depreciation and amortization | 6,355,000 | 6,759,000 | 18,839,000 | 19,670,000 | 6,044,000 | 6,437,000 | 17,905,000 | 18,736,000 | |||||||||||||||||||
Impairments of real estate assets | 0 | 0 | 7,180,000 | 0 | 0 | 0 | 7,180,000 | 0 | |||||||||||||||||||
Interest expense | 4,980,000 | 5,976,000 | 16,077,000 | 17,841,000 | 4,817,000 | 5,802,000 | 15,583,000 | 17,310,000 | |||||||||||||||||||
Total expenses | 22,959,000 | 23,540,000 | 77,802,000 | 71,087,000 | 21,885,000 | 22,478,000 | 74,569,000 | 67,811,000 | |||||||||||||||||||
Income/(loss) before disposition of properties | 2,092,000 | 2,083,000 | (1,882,000) | 4,532,000 | 2,177,000 | 2,140,000 | (1,653,000) | 4,765,000 | |||||||||||||||||||
Gains on disposition of properties | 0 | 0 | 6,275,000 | 0 | 0 | 0 | 6,275,000 | 0 | |||||||||||||||||||
Net income | 2,092,000 | 2,083,000 | 4,393,000 | 4,532,000 | 2,177,000 | 2,140,000 | 4,622,000 | 4,765,000 | |||||||||||||||||||
Our share of: | |||||||||||||||||||||||||||
Depreciation and amortization of real estate assets | 2,028,000 | 2,066,000 | 5,801,000 | 6,192,000 | 1,989,000 | 2,028,000 | 5,684,000 | 6,078,000 | |||||||||||||||||||
Impairments of real estate assets | 0 | 0 | 1,002,000 | 0 | 1,000,000 | 0 | 0 | 1,002,000 | 0 | 1,000,000 | |||||||||||||||||
Interest expense | 1,775,000 | 1,965,000 | 5,598,000 | 6,159,000 | 1,754,000 | 1,944,000 | 5,536,000 | 6,093,000 | |||||||||||||||||||
Net income | 914,000 | 442,000 | 1,252,000 | 2,112,000 | 925,000 | 448,000 | 1,281,000 | 2,142,000 | |||||||||||||||||||
Our share of net income | 914,000 | 442,000 | 1,252,000 | 2,112,000 | 925,000 | 448,000 | 1,281,000 | 2,142,000 | |||||||||||||||||||
Adjustments for management and other fees | 410,000 | 671,000 | 1,418,000 | 1,821,000 | 403,000 | 665,000 | 1,398,000 | 1,803,000 | |||||||||||||||||||
Equity in earnings of unconsolidated affiliates | 1,324,000 | 1,113,000 | 2,670,000 | 3,933,000 | 1,328,000 | 1,113,000 | 2,679,000 | 3,945,000 | |||||||||||||||||||
Percentage of equity interest in joint ventures, maximum | 50.00% | 50.00% | 50.00% | 50.00% | |||||||||||||||||||||||
Advance to unconsolidated affiliate, loan amount | 38,300,000 | 38,300,000 | |||||||||||||||||||||||||
Loan maturity date | Mar. 31, 2012 | Mar. 31, 2012 | |||||||||||||||||||||||||
Advance to unconsolidated affiliate, interest rate basis | LIBOR plus basis points | LIBOR plus basis points | |||||||||||||||||||||||||
Current interest rate (in hundredths) | 5.00% | 5.00% | |||||||||||||||||||||||||
Advance to unconsolidated affiliate, extended loan maturity date | Dec. 31, 2012 | Dec. 31, 2012 | |||||||||||||||||||||||||
Advance to unconsolidated affiliate, amount outstanding | 13,000,000 | 13,000,000 | |||||||||||||||||||||||||
Interest income from loan to unconsolidated affiliate | 100,000 | 500,000 | 800,000 | 800,000 | 100,000 | 500,000 | 800,000 | 800,000 | |||||||||||||||||||
Joint venture principal amount of debt | 50,000,000 | 50,000,000 | |||||||||||||||||||||||||
Term of debt instrument (in years) | 3 years | 3 years | |||||||||||||||||||||||||
Fixed interest rate (in hundredths) | 3.50% | 3.50% | |||||||||||||||||||||||||
Amount of loan related to fixed interest rate | 39,100,000 | 39,100,000 | |||||||||||||||||||||||||
Floating interest rate, interest rate basis | LIBOR plus basis points | LIBOR plus basis points | |||||||||||||||||||||||||
Current floating interest rate (in hundredths) | 2.50% | 2.50% | |||||||||||||||||||||||||
Amount of loan related to floating interest rate | 10,900,000 | 10,900,000 | |||||||||||||||||||||||||
Impairments of real estate assets | 0 | 0 | 1,002,000 | 0 | 1,000,000 | 0 | 0 | 1,002,000 | 0 | 1,000,000 | |||||||||||||||||
Number of impaired office properties | 2 | 2 | |||||||||||||||||||||||||
Consolidated Affiliates [Abstract] | |||||||||||||||||||||||||||
Advance to consolidated affiliate, loan amount | $ 20,800,000 | $ 20,800,000 | |||||||||||||||||||||||||
Term of debt instrument (in years) | 3 years | 3 years | |||||||||||||||||||||||||
Debt instrument maturity date | Sep. 30, 2015 | Sep. 30, 2015 | |||||||||||||||||||||||||
Debt instrument, interest rate basis | LIBOR plus basis points | LIBOR plus basis points | |||||||||||||||||||||||||
Debt instrument, interest rate basis spread (in hundredths) | 5.00% | 5.00% | |||||||||||||||||||||||||
Debt instrument, interest rate floor (in hundredths) | 0.50% | 0.50% |
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