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Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Operating activities:    
Net income $ 191,340 $ 8,386
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 61,150 69,204
Amortization of lease incentives and acquisition-related intangible assets and liabilities (649) 1,689
Share-based compensation expense 2,496 4,572
Credit losses on operating lease receivables 1,249 7,315
Write-off of mortgages and notes receivable 0 4,087
Accrued interest on mortgages and notes receivable (31) (85)
Amortization of debt issuance costs 767 736
Amortization of cash flow hedges (72) (515)
Amortization of mortgages and notes payable fair value adjustments 426 385
Losses on debt extinguishment 0 375
Net gains on disposition of property (153,067) 0
Equity in earnings of unconsolidated affiliates (963) (664)
Distributions of earnings from unconsolidated affiliates 341 609
Settlement of cash flow hedges 0 (5,144)
Changes in operating assets and liabilities:    
Accounts receivable 824 (2,583)
Prepaid expenses and other assets (8,745) (6,953)
Accrued straight-line rents receivable (10,888) (6,903)
Accounts payable, accrued expenses and other liabilities (20,564) (11,798)
Net cash provided by operating activities 63,614 62,713
Investing activities:    
Investments in acquired real estate and related intangible assets, net of cash acquired (55) 0
Investments in development in-process (36,122) (28,555)
Investments in tenant improvements and deferred leasing costs (49,825) (38,544)
Investments in building improvements (15,254) (12,517)
Net proceeds from disposition of real estate assets 331,761 0
Distributions of capital from unconsolidated affiliates 72 29
Investments in mortgages and notes receivable (32) 0
Repayments of mortgages and notes receivable 75 74
Changes in other investing activities 477 (1,989)
Net cash provided by/(used in) investing activities 231,097 (81,502)
Financing activities:    
Dividends on Common Stock (49,735) (49,175)
Redemptions/repurchases of Preferred Stock (3) (18)
Dividends on Preferred Stock (622) (622)
Distributions to noncontrolling interests in the Operating Partnership (1,364) (1,300)
Distributions to noncontrolling interests in consolidated affiliates (198) (308)
Proceeds from the issuance of Common Stock 2,343 652
Costs paid for the issuance of Common Stock (180) 0
Repurchase of shares related to tax withholdings (1,124) (1,780)
Borrowings on revolving credit facility 110,000 98,300
Repayments of revolving credit facility (244,000) (145,300)
Borrowings on mortgages and notes payable 0 349,010
Repayments of mortgages and notes payable (481) (225,462)
Changes in debt issuance costs and other financing activities 0 (2,884)
Net cash provided by/(used in) financing activities (185,364) 21,113
Net increase in cash and cash equivalents and restricted cash 109,347 2,324
Cash and cash equivalents and restricted cash at beginning of the period 14,742 10,143
Cash and cash equivalents and restricted cash at end of the period 124,089 12,467
Reconciliation of cash and cash equivalents and restricted cash:    
Cash and cash equivalents at end of the period 12,696 4,827
Restricted cash at end of the period 111,393 7,640
Supplemental disclosure of cash flow information:    
Cash paid for interest, net of amounts capitalized 25,321 23,924
Supplemental disclosure of non-cash investing and financing activities:    
Unrealized losses on cash flow hedges (1,133) (1,904)
Conversions of Common Units to Common Stock 0 131
Changes in accrued capital expenditures [1] (4,789) (119)
Write-off of fully depreciated real estate assets 12,033 23,880
Write-off of fully amortized leasing costs 5,842 12,671
Write-off of fully amortized debt issuance costs 0 828
Adjustment of noncontrolling interests in the Operating Partnership to fair value (42,301) 23,254
Issuances of Common Units to acquire real estate assets 6,163 0
Initial recognition of lease liabilities related to right of use assets 0 35,349
Accrued capital expenditures included in accounts payable, accrued expenses and other liabilities 63,200 62,200
Highwoods Realty Limited Partnership [Member]    
Operating activities:    
Net income 191,340 8,386
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 61,150 69,204
Amortization of lease incentives and acquisition-related intangible assets and liabilities (649) 1,689
Share-based compensation expense 2,496 4,572
Credit losses on operating lease receivables 1,249 7,315
Write-off of mortgages and notes receivable 0 4,087
Accrued interest on mortgages and notes receivable (31) (85)
Amortization of debt issuance costs 767 736
Amortization of cash flow hedges (72) (515)
Amortization of mortgages and notes payable fair value adjustments 426 385
Losses on debt extinguishment 0 375
Net gains on disposition of property (153,067) 0
Equity in earnings of unconsolidated affiliates (963) (664)
Distributions of earnings from unconsolidated affiliates 341 609
Settlement of cash flow hedges 0 (5,144)
Changes in operating assets and liabilities:    
Accounts receivable 824 (2,583)
Prepaid expenses and other assets (8,745) (6,953)
Accrued straight-line rents receivable (10,888) (6,903)
Accounts payable, accrued expenses and other liabilities (20,564) (11,798)
Net cash provided by operating activities 63,614 62,713
Investing activities:    
Investments in acquired real estate and related intangible assets, net of cash acquired (55) 0
Investments in development in-process (36,122) (28,555)
Investments in tenant improvements and deferred leasing costs (49,825) (38,544)
Investments in building improvements (15,254) (12,517)
Net proceeds from disposition of real estate assets 331,761 0
Distributions of capital from unconsolidated affiliates 72 29
Investments in mortgages and notes receivable (32) 0
Repayments of mortgages and notes receivable 75 74
Changes in other investing activities 477 (1,989)
Net cash provided by/(used in) investing activities 231,097 (81,502)
Financing activities:    
Distributions on Common Units (50,903) (50,281)
Redemptions/repurchases of Preferred Units (3) (18)
Distributions on Preferred Units (622) (622)
Distributions to noncontrolling interests in consolidated affiliates (198) (308)
Proceeds from the issuance of Common Units 2,343 652
Costs paid for the issuance of Common Units (180) 0
Repurchase of units related to tax withholdings (1,124) (1,780)
Borrowings on revolving credit facility 110,000 98,300
Repayments of revolving credit facility (244,000) (145,300)
Borrowings on mortgages and notes payable 0 349,010
Repayments of mortgages and notes payable (481) (225,462)
Changes in debt issuance costs and other financing activities (196) (3,078)
Net cash provided by/(used in) financing activities (185,364) 21,113
Net increase in cash and cash equivalents and restricted cash 109,347 2,324
Cash and cash equivalents and restricted cash at beginning of the period 14,742 10,143
Cash and cash equivalents and restricted cash at end of the period 124,089 12,467
Reconciliation of cash and cash equivalents and restricted cash:    
Cash and cash equivalents at end of the period 12,696 4,827
Restricted cash at end of the period 111,393 7,640
Supplemental disclosure of cash flow information:    
Cash paid for interest, net of amounts capitalized 25,321 23,924
Supplemental disclosure of non-cash investing and financing activities:    
Unrealized losses on cash flow hedges (1,133) (1,904)
Changes in accrued capital expenditures [2] (4,789) (119)
Write-off of fully depreciated real estate assets 12,033 23,880
Write-off of fully amortized leasing costs 5,842 12,671
Write-off of fully amortized debt issuance costs 0 828
Adjustment of Redeemable Common Units to fair value (38,705) 22,016
Issuances of Common Units to acquire real estate assets 6,163 0
Initial recognition of lease liabilities related to right of use assets 0 35,349
Accrued capital expenditures included in accounts payable, accrued expenses and other liabilities $ 63,200 $ 62,200
[1]
(1)
Accrued capital expenditures included in accounts payable, accrued expenses and other liabilities at March 31, 2020 and 2019 were $63.2 million and $62.2 million, respectively.
[2]
(1)
Accrued capital expenditures included in accounts payable, accrued expenses and other liabilities at March 31, 2020 and 2019 were $63.2 million and $62.2 million, respectively.