Investments In and Advances To Affiliates (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Equity Method Investments [Line Items]

Schedule of Equity Method Investments

The following table sets forth our ownership in unconsolidated affiliates at December 31, 2012:

Joint Venture	Location of Properties	Ownership Interest
Concourse Center Associates, LLC	Greensboro, NC	50.0%
Plaza Colonnade, LLC	Kansas City, MO	50.0%
Lofts at Weston, LLC	Raleigh, NC	50.0%
Board of Trade Investment Company	Kansas City, MO	49.0%
Highwoods DLF 97/26 DLF 99/32, LP	Atlanta, GA; Greensboro, NC; Orlando, FL	42.9%
Highwoods KC Glenridge Office, LLC	Atlanta, GA	40.0%
Highwoods KC Glenridge Land, LLC	Atlanta, GA	39.9%
HIW-KC Orlando, LLC	Orlando, FL	40.0%
Kessinger/Hunter, LLC	Kansas City, MO	26.5%
Highwoods DLF Forum, LLC	Raleigh, NC	25.0%
Highwoods DLF 98/29, LLC	Atlanta, GA; Charlotte, NC; Greensboro, NC; Raleigh, NC; Orlando, FL	22.8%
4600 Madison Associates, LP	Kansas City, MO	12.5%

Schedule of Equity Method Investments Summarized Balance Sheet Information

The following table sets forth combined summarized financial information for our unconsolidated affiliates:

	December 31,
	2012		2011
Balance Sheets:
Assets:
Real estate assets, net	$	491,180	$	536,088
All other assets, net	113,734		96,944
Total Assets	$	604,914	$	633,032
Liabilities and Partners’ or Shareholders’ Equity:
Mortgages and notes payable (1)	$	370,393	$	406,875
All other liabilities	24,507		21,808
Partners’ or shareholders’ equity	210,014		204,349
Total Liabilities and Partners’ or Shareholders’ Equity	$	604,914	$	633,032
Our share of historical partners’ or shareholders’ equity	$	63,847	$	59,584
Advances to unconsolidated affiliate	—		38,323
Net excess of cost of investments over the net book value of underlying net assets (2)	2,953		2,460
Carrying value of investments in and advances to unconsolidated affiliates	$	66,800	$	100,367
Our share of unconsolidated non-recourse mortgage debt (1)	$	137,261	$	146,926

__________

4.    Investments in and Advances to Affiliates – Continued

(1) Our share of scheduled future principal payments, including amortization, due on mortgages and notes payable at December 31, 2012 is as follows:

2013	$	23,458
2014	57,163
2015	21,821
2016	1,054
2017	26,452
Thereafter	7,313
	$	137,261

All of this joint venture debt is non-recourse to us except in the case of customary exceptions pertaining to such matters as misuse of funds, environmental conditions and material misrepresentations.

(2) This amount represents the aggregate difference between our historical cost basis and the basis reflected at the joint venture level, which is typically depreciated over the life of the related asset.

Schedule of Entitys Share Of Equity Method Investments Future Debt Maturities

Our share of scheduled future principal payments, including amortization, due on mortgages and notes payable at December 31, 2012 is as follows:

2013	$	23,458
2014	57,163
2015	21,821
2016	1,054
2017	26,452
Thereafter	7,313
	$	137,261

Schedule of Equity Method Investments Summarized Income Statement Information

	Year Ended December 31,
	2012		2011		2010
Income Statements:
Rental and other revenues	$	101,233	$	100,958	$	119,868
Expenses:
Rental property and other expenses	47,762		44,584		56,868
Depreciation and amortization	25,253		26,430		31,401
Impairments of real estate assets	7,180		—		—
Interest expense	20,953		23,762		27,956
Total expenses	101,148		94,776		116,225
Income before disposition of properties	85		6,182		3,643
Gains on disposition of properties	11,184		—		—
Net income	$	11,269	$	6,182	$	3,643
Our share of:
Depreciation and amortization	$	7,736	$	8,388	$	10,471
Impairments of real estate assets	$	1,002	$	—	$	—
Interest expense	$	7,368	$	8,163	$	10,545
Gains on disposition of properties	$	1,120	$	—	$	—
Net income	$	3,304	$	2,429	$	1,466
Our share of net income	$	3,304	$	2,429	$	1,466
Adjustment for management and other fees	1,731		2,449		2,355
Equity in earnings of unconsolidated affiliates	$	5,035	$	4,878	$	3,821

Highwoods Realty Limited Partnership [Member]

Schedule of Equity Method Investments [Line Items]

Schedule of Equity Method Investments

The following table sets forth our ownership in unconsolidated affiliates at December 31, 2012:

Joint Venture	Location of Properties	Ownership Interest
Concourse Center Associates, LLC	Greensboro, NC	50.0%
Plaza Colonnade, LLC	Kansas City, MO	50.0%
Lofts at Weston, LLC	Raleigh, NC	50.0%
Board of Trade Investment Company	Kansas City, MO	49.0%
Highwoods DLF 97/26 DLF 99/32, LP	Atlanta, GA; Greensboro, NC; Orlando, FL	42.9%
Highwoods KC Glenridge Office, LLC	Atlanta, GA	40.0%
Highwoods KC Glenridge Land, LLC	Atlanta, GA	39.9%
HIW-KC Orlando, LLC	Orlando, FL	40.0%
Kessinger/Hunter, LLC	Kansas City, MO	26.5%
Highwoods DLF Forum, LLC	Raleigh, NC	25.0%
Highwoods DLF 98/29, LLC	Atlanta, GA; Charlotte, NC; Greensboro, NC; Raleigh, NC; Orlando, FL	22.8%

Schedule of Equity Method Investments Summarized Balance Sheet Information

The following table sets forth combined summarized financial information for our unconsolidated affiliates:

	December 31,
	2012		2011
Balance Sheets:
Assets:
Real estate assets, net	$	480,245	$	523,992
All other assets, net	112,295		95,504
Total Assets	$	592,540	$	619,496
Liabilities and Partners’ or Shareholders’ Equity:
Mortgages and notes payable (1)	$	360,944	$	396,977
All other liabilities	23,983		21,121
Partners’ or shareholders’ equity	207,613		201,398
Total Liabilities and Partners’ or Shareholders’ Equity	$	592,540	$	619,496
Our share of historical partners’ or shareholders’ equity	$	63,546	$	59,215
Advances to unconsolidated affiliate	—		38,323
Net excess of cost of investments over the net book value of underlying net assets (2)	$	2,267	$	1,758
Carrying value of investments in and advances to unconsolidated affiliates	$	65,813	$	99,296
Our share of unconsolidated non-recourse mortgage debt (1)	$	136,080	$	145,689

__________

4.    Investments in and Advances to Affiliates – Continued

(1) Our share of scheduled future principal payments, including amortization, due on mortgages and notes payable at December 31, 2012 is as follows:

2013	$	23,427
2014	57,130
2015	21,786
2016	1,017
2017	26,412
Thereafter	6,308
	$	136,080

All of this joint venture debt is non-recourse to us except in the case of customary exceptions pertaining to such matters as misuse of funds, environmental conditions and material misrepresentations.

(2) This amount represents the aggregate difference between our historical cost basis and the basis reflected at the joint venture level, which is typically depreciated over the life of the related asset.

Schedule of Entitys Share Of Equity Method Investments Future Debt Maturities

Our share of scheduled future principal payments, including amortization, due on mortgages and notes payable at December 31, 2012 is as follows:

2013	$	23,427
2014	57,130
2015	21,786
2016	1,017
2017	26,412
Thereafter	6,308
	$	136,080

Schedule of Equity Method Investments Summarized Income Statement Information

	Year Ended December 31,
	2012		2011		2010
Income Statements:
Rental and other revenues	$	97,225	$	96,771	$	115,826
Expenses:
Rental property and other expenses	45,391		42,052		54,695
Depreciation and amortization	24,007		25,184		29,945
Impairments of real estate assets	7,180		—		—
Interest expense	20,296		23,062		27,187
Total expenses	96,874		90,298		111,827
Income before disposition of properties	351		6,473		3,999
Gains on disposition of properties	11,184		—		—
Net income	$	11,535	$	6,473	$	3,999
Our share of:
Depreciation and amortization	$	7,580	$	8,232	$	10,318
Impairments of real estate assets	$	12,924	$	—	$	—
Interest expense	$	7,286	$	8,075	$	10,449
Gains on disposition of properties	$	1,120	$	—	$	—
Net income	$	3,337	$	2,585	$	1,483
Our share of net income	$	3,337	$	2,585	$	1,483
Adjustment for management and other fees	1,758		2,354		2,311
Equity in earnings of unconsolidated affiliates	$	5,095	$	4,939	$	3,794