Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to to |
Maryland | 58-2328421 | ||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | ||||
5565 Glenridge Connector Ste. 450, Atlanta, Georgia | 30342 | ||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol | Name of exchange on which registered | ||||||
New York Stock Exchange |
FORM 10-K | ||||||||||||||
PIEDMONT OFFICE REALTY TRUST, INC. | ||||||||||||||
TABLE OF CONTENTS | ||||||||||||||
PART I. | Page No. | |||||||||||||
Item 1. | ||||||||||||||
Item 1A. | ||||||||||||||
Item 1B. | ||||||||||||||
Item 2. | ||||||||||||||
Item 3. | ||||||||||||||
Item 4. | ||||||||||||||
PART II. | ||||||||||||||
Item 5. | ||||||||||||||
Item 6. | ||||||||||||||
Item 7. | ||||||||||||||
Item 7A. | ||||||||||||||
Item 8. | ||||||||||||||
Item 9. | ||||||||||||||
Item 9A. | ||||||||||||||
Item 9B. | ||||||||||||||
PART III. | ||||||||||||||
Item 10. | ||||||||||||||
Item 11. | ||||||||||||||
Item 12. | ||||||||||||||
Item 13. | ||||||||||||||
Item 14. | ||||||||||||||
PART IV. | ||||||||||||||
Item 15. | ||||||||||||||
•Changes in the economies and other conditions affecting the office sector in general and specifically the seven markets in which we primarily operate where we have high concentrations of our Annualized Lease Revenue (see definition in Item 1. Business of this Annual Report on Form 10-K); • |
Location | Annualized Lease Revenue (in thousands) | Rentable Square Feet (in thousands) | Percentage of Annualized Lease Revenue (%) | Percent Leased (%) | |||||||||||||||||||||||||
Dallas | $ | 101,639 | 3,549 | 19.7 | 86.0 | ||||||||||||||||||||||||
Atlanta | 90,783 | 3,388 | 17.6 | 84.9 | |||||||||||||||||||||||||
Washington, D.C. | 70,204 | 1,620 | 13.6 | 82.0 | |||||||||||||||||||||||||
Minneapolis | 65,997 | 2,104 | 12.8 | 93.3 | |||||||||||||||||||||||||
Boston | 58,983 | 1,885 | 11.5 | 91.7 | |||||||||||||||||||||||||
Orlando | 54,404 | 1,754 | 10.6 | 92.3 | |||||||||||||||||||||||||
New York | 50,186 | 1,029 | 9.7 | 93.8 | |||||||||||||||||||||||||
Other (1) | 22,942 | 1,099 | 4.5 | 66.1 | |||||||||||||||||||||||||
$ | 515,138 | 16,428 | 100.0 | 86.8 |
Location | Annualized Lease Revenue (in thousands) | Rentable Square Feet (in thousands) | Percentage of Annualized Lease Revenue (%) | Percent Leased (%) | |||||||||
Washington, D.C. | $ | 75,939 | 1,950 | 14.6 | 77.6 | ||||||||
New York | 70,144 | 1,772 | 13.5 | 97.5 | |||||||||
Minneapolis | 63,620 | 2,104 | 12.2 | 95.5 | |||||||||
Atlanta | 61,673 | 2,249 | 11.9 | 95.6 | |||||||||
Boston | 58,083 | 1,882 | 11.2 | 96.7 | |||||||||
Dallas | 53,805 | 2,114 | 10.3 | 88.2 | |||||||||
Orlando | 53,128 | 1,755 | 10.2 | 95.6 | |||||||||
Chicago | 42,202 | 967 | 8.1 | 98.1 | |||||||||
Other (1) | 41,428 | 1,415 | 8.0 | 100 | |||||||||
$ | 520,022 | 16,208 | 100.0 | 93.3 |
Year of Lease Expiration | Annualized Lease Revenue (in thousands) | Percentage of Annualized Lease Revenue (%) | ||||||||||||||||||
Available space | $ | — | — | |||||||||||||||||
2021 | 29,929 | 5.8 | ||||||||||||||||||
2022 | 54,918 | 10.7 | ||||||||||||||||||
2023 | 52,422 | 10.2 | ||||||||||||||||||
2024 | 62,222 | 12.1 | ||||||||||||||||||
2025 | 58,546 | 11.4 | ||||||||||||||||||
2026 | 34,487 | 6.7 | ||||||||||||||||||
2027 | 43,691 | 8.5 | ||||||||||||||||||
2028 | 46,505 | 9.0 | ||||||||||||||||||
2029 | 28,000 | 5.4 | ||||||||||||||||||
2030 | 19,106 | 3.7 | ||||||||||||||||||
2031 | 6,224 | 1.2 | ||||||||||||||||||
2032 | 11,547 | 2.2 | ||||||||||||||||||
Thereafter | 67,541 | 13.1 | ||||||||||||||||||
$ | 515,138 | 100.0 |
Year of Lease Expiration | Annualized Lease Revenue (in thousands) | Percentage of Annualized Lease Revenue (%) | |||||
Available space | $ | — | — | ||||
2019 | 67,179 | 12.9 | |||||
2020 | 40,555 | 7.8 | |||||
2021 | 19,500 | 3.8 | |||||
2022 | 39,133 | 7.5 | |||||
2023 | 44,272 | 8.5 | |||||
2024 | 62,568 | 12.0 | |||||
2025 | 23,001 | 4.4 | |||||
2026 | 28,506 | 5.5 | |||||
2027 | 46,176 | 8.9 | |||||
2028 | 47,119 | 9.1 | |||||
2029 | 22,354 | 4.3 | |||||
2030 | 14,653 | 2.8 | |||||
2031 | 14,236 | 2.7 | |||||
Thereafter | 50,770 | 9.8 | |||||
$ | 520,022 | 100.0 |
As of the year ended December 31, | ||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||
Piedmont Office Realty Trust, Inc. | $ | 100.00 | $ | 115.62 | $ | 115.73 | $ | 105.20 | $ | 142.99 | $ | 109.42 | ||||||||
FTSE NAREIT Equity Office | $ | 100.00 | $ | 113.17 | $ | 119.11 | $ | 101.84 | $ | 133.83 | $ | 109.16 | ||||||||
FTSE NAREIT Equity REITs | $ | 100.00 | $ | 108.52 | $ | 114.19 | $ | 108.91 | $ | 137.23 | $ | 126.25 | ||||||||
S&P 500 | $ | 100.00 | $ | 111.96 | $ | 136.40 | $ | 130.42 | $ | 171.49 | $ | 203.04 |
As of the year ended December 31, | ||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||
Piedmont Office Realty Trust, Inc. | $ | 100.00 | $ | 119.14 | $ | 125.07 | $ | 144.60 | $ | 144.74 | $ | 131.57 | ||||||
FTSE NAREIT Equity Office | $ | 100.00 | $ | 125.86 | $ | 126.22 | $ | 142.84 | $ | 150.33 | $ | 128.54 | ||||||
FTSE NAREIT Equity REITs | $ | 100.00 | $ | 130.14 | $ | 134.30 | $ | 145.74 | $ | 153.36 | $ | 146.27 | ||||||
S&P 500 | $ | 100.00 | $ | 113.69 | $ | 115.26 | $ | 129.05 | $ | 157.22 | $ | 150.33 |
Period | Total Number of Shares Purchased (in 000’s) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program (in 000’s) (1) | Maximum Approximate Dollar Value of Shares Available That May Yet Be Purchased Under the Program (in 000’s) | ||||||||||||||||||||||
October 1, 2020 to October 31, 2020 | — | $ | — | — | $ | 200,000 | ||||||||||||||||||||
November 1, 2020 to November 30, 2020 | 1,530 | $ | 13.19 | 1,530 | $ | 179,811 | ||||||||||||||||||||
December 1, 2020 to December 31, 2020 | 660 | $ | 15.87 | 660 | $ | 169,329 | (1) | |||||||||||||||||||
Total | 2,190 | $ | 14.00 | 2,190 |
Period | Total Number of Shares Purchased (in 000’s) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program (in 000’s) (1) | Maximum Approximate Dollar Value of Shares Available That May Yet Be Purchased Under the Program (in 000’s) | ||||||||||
October 1, 2018 to October 31, 2018 | — | $ | — | — | $ | 123,464 | ||||||||
November 1, 2018 to November 30, 2018 | 56 | $ | 17.86 | 56 | $ | 122,461 | ||||||||
December 1, 2018 to December 31, 2018 | 2,097 | $ | 17.11 | 2,097 | $ | 86,572 | (1) | |||||||
Total | 2,153 | $ | 17.13 | 2,153 |
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
Statement of Income Data: | |||||||||||||||||||||||||||||
Total revenues | $ | 535,024 | $ | 533,178 | $ | 525,967 | $ | 574,173 | $ | 555,715 | |||||||||||||||||||
Property operating costs | $ | 214,933 | $ | 211,380 | $ | 209,338 | $ | 222,441 | $ | 220,796 | |||||||||||||||||||
Depreciation and amortization | $ | 203,869 | $ | 182,681 | $ | 171,251 | $ | 194,655 | $ | 202,852 | |||||||||||||||||||
Impairment loss on real estate assets | $ | — | $ | 8,953 | $ | — | $ | 46,461 | $ | 33,901 | |||||||||||||||||||
General and administrative expenses | $ | 27,464 | $ | 37,895 | $ | 29,713 | $ | 29,319 | $ | 27,382 | |||||||||||||||||||
Interest and other expense | $ | (61,739) | $ | (60,023) | $ | (61,065) | $ | (63,622) | $ | (64,477) | |||||||||||||||||||
Gain on sale of real estate assets | $ | 205,666 | $ | 197,010 | $ | 75,691 | $ | 115,874 | $ | 93,410 | |||||||||||||||||||
Net income | $ | 232,685 | $ | 229,256 | $ | 130,291 | $ | 133,549 | $ | 99,717 | |||||||||||||||||||
Per-Share Data: | |||||||||||||||||||||||||||||
Per weighted-average common share data: | |||||||||||||||||||||||||||||
Income from continuing operations per share—basic and diluted | $ | 1.85 | $ | 1.82 | $ | 1.00 | $ | 0.92 | $ | 0.69 | |||||||||||||||||||
Cash dividends declared per common share | $ | 0.84 | $ | 0.84 | $ | 0.84 | $ | 1.34 | $ | 0.84 | |||||||||||||||||||
Weighted-average shares outstanding—basic (in thousands) | 125,730 | 125,709 | 130,161 | 145,044 | 145,230 | ||||||||||||||||||||||||
Weighted-average shares outstanding—diluted (in thousands) | 126,104 | 126,182 | 130,636 | 145,380 | 145,635 | ||||||||||||||||||||||||
Balance Sheet Data (at period end): | |||||||||||||||||||||||||||||
Total assets | $ | 3,739,810 | $ | 3,516,757 | $ | 3,592,429 | $ | 3,999,967 | $ | 4,368,168 | |||||||||||||||||||
Total stockholders’ equity | $ | 1,897,961 | $ | 1,818,974 | $ | 1,712,140 | $ | 1,986,489 | $ | 2,097,703 | |||||||||||||||||||
Outstanding debt | $ | 1,622,004 | $ | 1,481,404 | $ | 1,685,472 | $ | 1,726,927 | $ | 2,020,475 | |||||||||||||||||||
NAREIT Funds from Operations Data (1): | |||||||||||||||||||||||||||||
GAAP net income applicable to common stock | $ | 232,688 | $ | 229,261 | $ | 130,296 | $ | 133,564 | $ | 99,732 | |||||||||||||||||||
Depreciation and amortization | 202,568 | 181,721 | 170,348 | 193,904 | 202,268 | ||||||||||||||||||||||||
Impairment loss | — | 8,953 | — | 46,461 | 33,901 | ||||||||||||||||||||||||
Gain on sale- wholly-owned properties and unconsolidated partnerships | (205,666) | (197,010) | (75,691) | (119,557) | (93,410) | ||||||||||||||||||||||||
NAREIT Funds From Operations applicable to common stock (1) | $ | 229,590 | $ | 222,925 | $ | 224,953 | $ | 254,372 | $ | 242,491 | |||||||||||||||||||
Retirement and separation expenses associated with senior management transition in June 2019 | — | 3,175 | — | — | — | ||||||||||||||||||||||||
Acquisition costs | — | — | — | 6 | 976 | ||||||||||||||||||||||||
Loss on extinguishment of debt | 9,336 | — | 1,680 | — | — | ||||||||||||||||||||||||
Net recoveries of casualty loss and litigation settlements | — | — | — | — | (34) | ||||||||||||||||||||||||
Core Funds From Operations applicable to common stock (1) | $ | 238,926 | $ | 226,100 | $ | 226,633 | $ | 254,378 | $ | 243,433 | |||||||||||||||||||
Amortization of debt issuance costs, fair market adjustments on notes payable, and discount on Senior Notes | 2,833 | 2,101 | 2,083 | 2,496 | 2,610 | ||||||||||||||||||||||||
Depreciation of non real estate assets | 1,216 | 872 | 813 | 809 | 841 | ||||||||||||||||||||||||
Straight-line effects of lease revenue and net effect of amortization of below-market in-place lease intangibles | (34,885) | (18,734) | (21,595) | (28,067) | (26,609) | ||||||||||||||||||||||||
Stock-based compensation adjustments | 7,014 | 5,030 | 7,528 | 6,139 | 5,620 | ||||||||||||||||||||||||
Acquisition costs | — | — | — | (6) | (976) | ||||||||||||||||||||||||
Non-incremental capital expenditures | (77,682) | (49,653) | (44,004) | (35,437) | (35,568) | ||||||||||||||||||||||||
Adjusted Funds From Operations applicable to common stock (1) | $ | 137,422 | $ | 165,716 | $ | 171,458 | $ | 200,312 | $ | 189,351 |
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
Statement of Income Data: | |||||||||||||||||||
Total revenues | $ | 525,967 | $ | 574,173 | $ | 555,715 | $ | 584,769 | $ | 566,252 | |||||||||
Property operating costs | $ | 209,338 | $ | 222,441 | $ | 220,796 | $ | 244,090 | $ | 241,128 | |||||||||
Depreciation and amortization | $ | 171,251 | $ | 194,655 | $ | 202,852 | $ | 195,389 | $ | 195,175 | |||||||||
Impairment loss on real estate assets | $ | — | $ | 46,461 | $ | 33,901 | $ | 43,301 | $ | — | |||||||||
General and administrative expenses | $ | 29,713 | $ | 29,319 | $ | 27,382 | $ | 28,278 | $ | 22,128 | |||||||||
Interest and other expense | $ | (61,065 | ) | $ | (63,622 | ) | $ | (64,477 | ) | $ | (72,158 | ) | $ | (67,742 | ) | ||||
Gain on sale of real estate assets not classified as discontinued operations | $ | 75,691 | $ | 115,874 | $ | 93,410 | $ | 129,683 | $ | 870 | |||||||||
Income from continuing operations | $ | 130,291 | $ | 133,549 | $ | 99,717 | $ | 131,236 | $ | 40,949 | |||||||||
Per-Share Data: | |||||||||||||||||||
Per weighted-average common share data: | |||||||||||||||||||
Income from continuing operations per share—basic and diluted | $ | 1.00 | $ | 0.92 | $ | 0.69 | $ | 0.87 | $ | 0.26 | |||||||||
Cash dividends declared per common share | $ | 0.84 | $ | 1.34 | $ | 0.84 | $ | 0.84 | $ | 0.81 | |||||||||
Weighted-average shares outstanding—basic (in thousands) | 130,161 | 145,044 | 145,230 | 150,538 | 154,452 | ||||||||||||||
Weighted-average shares outstanding—diluted (in thousands) | 130,636 | 145,380 | 145,635 | 150,880 | 154,585 | ||||||||||||||
Balance Sheet Data (at period end): | |||||||||||||||||||
Total assets | $ | 3,592,429 | $ | 3,999,967 | $ | 4,368,168 | $ | 4,361,511 | $ | 4,756,496 | |||||||||
Total stockholders’ equity | $ | 1,712,140 | $ | 1,986,489 | $ | 2,097,703 | $ | 2,123,420 | $ | 2,280,677 | |||||||||
Outstanding debt | $ | 1,685,472 | $ | 1,726,927 | $ | 2,020,475 | $ | 2,029,510 | $ | 2,269,922 | |||||||||
NAREIT Funds from Operations Data (1): | |||||||||||||||||||
GAAP net income applicable to common stock | $ | 130,296 | $ | 133,564 | $ | 99,732 | $ | 131,304 | $ | 42,150 | |||||||||
Depreciation and amortization | 170,348 | 193,904 | 202,268 | 194,943 | 195,345 | ||||||||||||||
Impairment loss | — | 46,461 | 33,901 | 43,301 | — | ||||||||||||||
Gain on sale- wholly-owned properties and unconsolidated partnerships | (75,691 | ) | (119,557 | ) | (93,410 | ) | (129,682 | ) | (963 | ) | |||||||||
NAREIT Funds From Operations applicable to common stock (1) | $ | 224,953 | $ | 254,372 | $ | 242,491 | $ | 239,866 | $ | 236,532 | |||||||||
Acquisition costs | — | 6 | 976 | 919 | 560 | ||||||||||||||
Loss on extinguishment of debt | 1,680 | — | — | 38 | — | ||||||||||||||
Net loss/(recoveries) of casualty loss and litigation settlements | — | — | (34 | ) | 278 | (6,992 | ) | ||||||||||||
Core Funds From Operations applicable to common stock (1) | $ | 226,633 | $ | 254,378 | $ | 243,433 | $ | 241,101 | $ | 230,100 | |||||||||
Amortization of debt issuance costs, fair market adjustments on notes payable, and discount on Senior Notes | 2,083 | 2,496 | 2,610 | 2,547 | 2,632 | ||||||||||||||
Depreciation of non real estate assets | 813 | 809 | 841 | 755 | 508 | ||||||||||||||
Straight-line effects of lease revenue and net effect of amortization of below-market in-place lease intangibles | (21,595 | ) | (28,067 | ) | (26,609 | ) | (20,305 | ) | (33,848 | ) | |||||||||
Stock-based and other non-cash compensation | 7,528 | 6,139 | 5,620 | 7,090 | 3,975 | ||||||||||||||
Acquisition costs | — | (6 | ) | (976 | ) | (919 | ) | (560 | ) | ||||||||||
Non-incremental capital expenditures | (44,004 | ) | (35,437 | ) | (35,568 | ) | (44,136 | ) | (84,630 | ) | |||||||||
Adjusted Funds From Operations applicable to common stock (1) | $ | 171,458 | $ | 200,312 | $ | 189,351 | $ | 186,133 | $ | 118,177 |
December 31, 2020 | December 31, 2019 | ||||||||||
Capital expenditures for redevelopment/ renovations | $ | 18,600 | $ | 11,901 | |||||||
Other capital expenditures, including building and tenant improvements | 93,980 | 91,652 | |||||||||
Total capital expenditures (1) | $ | 112,580 | $ | 103,553 |
December 31, 2018 | December 31, 2017 | ||||||
Capital expenditures for new development | $ | 78 | $ | 6,490 | |||
Capital expenditures for redevelopment/ renovations | 9,892 | 2,113 | |||||
Capital expenditures previously credited as part of property acquisition | — | 10,340 | |||||
Other capital expenditures, including building and tenant improvements | 62,135 | 60,888 | |||||
Total capital expenditures (1) | $ | 72,105 | $ | 79,831 |
(1)Of the total amounts paid, approximately $0.6 million and $2.7 million related to soft costs such as capitalized interest, payroll, and other general and administrative expenses for the year |
December 31, 2020 | % of Revenues | December 31, 2019 | % of Revenues | Variance | |||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||
Rental and tenant reimbursement revenue | $ | 519.9 | $ | 511.9 | $ | 8.0 | |||||||||||||||||||||||
Property management fee revenue | 2.9 | 3.4 | (0.5) | ||||||||||||||||||||||||||
Other property related income | 12.2 | 17.9 | (5.7) | ||||||||||||||||||||||||||
Total revenues | 535.0 | 100 | % | 533.2 | 100 | % | 1.8 | ||||||||||||||||||||||
Expense: | |||||||||||||||||||||||||||||
Property operating costs | 214.9 | 40 | % | 211.4 | 40 | % | 3.5 | ||||||||||||||||||||||
Depreciation | 110.6 | 21 | % | 106.0 | 19 | % | 4.6 | ||||||||||||||||||||||
Amortization | 93.3 | 17 | % | 76.7 | 14 | % | 16.6 | ||||||||||||||||||||||
Impairment losses on real estate assets | — | — | % | 8.9 | 2 | % | (8.9) | ||||||||||||||||||||||
General and administrative | 27.5 | 5 | % | 37.9 | 7 | % | (10.4) | ||||||||||||||||||||||
446.3 | 440.9 | 5.4 | |||||||||||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||||||||
Interest expense | (55.0) | 10 | % | (61.6) | 12 | % | 6.6 | ||||||||||||||||||||||
Other income | 2.6 | — | % | 1.6 | — | % | 1.0 | ||||||||||||||||||||||
Loss on extinguishment of debt | (9.3) | 2 | % | — | — | % | (9.3) | ||||||||||||||||||||||
Gain on sale of real estate assets | 205.7 | 38 | % | 197.0 | 37 | % | 8.7 | ||||||||||||||||||||||
Net income | $ | 232.7 | 43 | % | $ | 229.3 | 43 | % | $ | 3.4 | |||||||||||||||||||
December 31, 2018 | % of Revenues | December 31, 2017 | % of Revenues | Variance | |||||||||||||
Revenue: | |||||||||||||||||
Rental income | $ | 411.7 | $ | 455.1 | $ | (43.4 | ) | ||||||||||
Tenant reimbursements | 92.7 | 98.2 | (5.5 | ) | |||||||||||||
Property management fee revenue | 1.5 | 1.7 | (0.2 | ) | |||||||||||||
Other property related income | 20.1 | 19.2 | 0.9 | ||||||||||||||
Total revenues | 526.0 | 100 | % | 574.2 | 100 | % | (48.2 | ) | |||||||||
Expense: | |||||||||||||||||
Property operating costs | 209.3 | 40 | % | 222.4 | 39 | % | (13.1 | ) | |||||||||
Depreciation | 108.0 | 20 | % | 119.3 | 21 | % | (11.3 | ) | |||||||||
Amortization | 63.3 | 12 | % | 75.4 | 13 | % | (12.1 | ) | |||||||||
Impairment losses on real estate assets | — | — | % | 46.5 | 8 | % | (46.5 | ) | |||||||||
General and administrative | 29.7 | 6 | % | 29.3 | 5 | % | 0.4 | ||||||||||
115.7 | 22 | % | 81.3 | 14 | % | 34.4 | |||||||||||
Other income (expense): | |||||||||||||||||
Interest expense | (61.0 | ) | 12 | % | (68.1 | ) | 12 | % | 7.1 | ||||||||
Other income | 1.6 | — | % | 0.6 | — | % | 1.0 | ||||||||||
Equity in income of unconsolidated joint ventures | — | — | % | 3.8 | 1 | % | (3.8 | ) | |||||||||
Loss on extinguishment of debt | (1.7 | ) | — | % | — | — | % | (1.7 | ) | ||||||||
Gain on sale of real estate assets | 75.7 | 15 | % | 115.9 | 20 | % | (40.2 | ) | |||||||||
Net income | $ | 130.3 | 25 | % | $ | 133.5 | 23 | % | $ | (3.2 | ) |
December 31, 2017 | % of Revenues | December 31, 2016 | % of Revenues | Variance | |||||||||||||
Revenue: | |||||||||||||||||
Rental income | $ | 455.1 | $ | 439.9 | $ | 15.2 | |||||||||||
Tenant reimbursements | 98.2 | 94.9 | 3.3 | ||||||||||||||
Property management fee revenue | 1.7 | 1.9 | (0.2 | ) | |||||||||||||
Other property related revenue | 19.2 | 19.0 | 0.2 | ||||||||||||||
Total revenues | 574.2 | 100 | % | 555.7 | 100 | % | 18.5 | ||||||||||
Expense: | |||||||||||||||||
Property operating costs | 222.4 | 39 | % | 220.8 | 40 | % | 1.6 | ||||||||||
Depreciation | 119.3 | 21 | % | 127.7 | 23 | % | (8.4 | ) | |||||||||
Amortization | 75.4 | 13 | % | 75.1 | 13 | % | 0.3 | ||||||||||
Impairment loss on real estate assets | 46.5 | 8 | % | 33.9 | 6 | % | 12.6 | ||||||||||
General and administrative expense | 29.3 | 5 | % | 27.4 | 5 | % | 1.9 | ||||||||||
81.3 | 14 | % | 70.8 | 13 | % | 10.5 | |||||||||||
Other income (expense): | |||||||||||||||||
Interest expense | (68.1 | ) | 12 | % | (64.9 | ) | 12 | % | (3.2 | ) | |||||||
Other income | 0.6 | — | % | — | — | % | 0.6 | ||||||||||
Equity in income of unconsolidated joint ventures | 3.8 | 1 | % | 0.4 | — | % | 3.4 | ||||||||||
Gain on sale of real estate assets, net | 115.9 | 20 | % | 93.4 | 17 | % | 22.5 | ||||||||||
Net income | $ | 133.5 | 23 | % | $ | 99.7 | 18 | % | $ | 33.8 |
Combined Balances of Piedmont OP and Piedmont Office Realty Trust, Inc. as Issuer and Guarantor, respectively | As of December 31, 2020 | As of December 31, 2019 | |||||||||
Due from non-guarantor subsidiary | $ | 810 | $ | 810 | |||||||
Total assets | $ | 347,757 | $ | 364,734 | |||||||
Total liabilities | $ | 1,654,009 | $ | 1,343,881 | |||||||
For the Year Ended December 31, 2020 | |||||||||||
Total revenues | $ | 43,193 | |||||||||
Net loss | $ | (50,803) |
Years Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
Dallas | $ | 59,845 | $ | 29,438 | |||||||
Atlanta | 60,276 | 47,287 | |||||||||
Washington, D.C. | 36,696 | 41,167 | |||||||||
Minneapolis | 33,588 | 35,610 | |||||||||
Boston | 41,722 | 44,016 | |||||||||
Orlando | 34,427 | 35,433 | |||||||||
New York | 38,990 | 44,036 | |||||||||
Total reportable segments | 305,544 | 276,987 | |||||||||
Corporate and other | 13,915 | 43,637 | |||||||||
Total NOI | $ | 319,459 | $ | 320,624 |
2020 | Per Share (1) | 2019 | Per Share(1) | 2018 | Per Share(1) | ||||||||||||||||||||||||||||||
GAAP net income applicable to common stock | $ | 232,688 | $ | 1.85 | $ | 229,261 | $ | 1.82 | $ | 130,296 | $ | 1.00 | |||||||||||||||||||||||
Depreciation of real assets | 109,326 | 0.86 | 105,111 | 0.83 | 107,113 | 0.82 | |||||||||||||||||||||||||||||
Amortization of lease-related costs | 93,242 | 0.74 | 76,610 | 0.61 | 63,235 | 0.48 | |||||||||||||||||||||||||||||
Impairment loss on real estate assets | — | — | 8,953 | 0.07 | — | — | |||||||||||||||||||||||||||||
Gain on sale- wholly-owned properties | (205,666) | (1.63) | (197,010) | (1.56) | (75,691) | (0.58) | |||||||||||||||||||||||||||||
NAREIT Funds From Operations applicable to common stock | $ | 229,590 | $ | 1.82 | $ | 222,925 | $ | 1.77 | $ | 224,953 | $ | 1.72 | |||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||||||
Retirement and separation expenses associated with senior management transition in June 2019 | — | — | 3,175 | 0.02 | — | — | |||||||||||||||||||||||||||||
Loss on extinguishment of debt | 9,336 | 0.07 | — | — | 1,680 | 0.01 | |||||||||||||||||||||||||||||
Core Funds From Operations applicable to common stock | $ | 238,926 | $ | 1.89 | $ | 226,100 | $ | 1.79 | $ | 226,633 | $ | 1.73 | |||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||||||
Amortization of debt issuance costs, fair market adjustments on notes payable, and discounts on debt | 2,833 | 2,101 | 2,083 | ||||||||||||||||||||||||||||||||
Depreciation of non real estate assets | 1,216 | 872 | 813 | ||||||||||||||||||||||||||||||||
Straight-line effects of lease revenue | (22,601) | (10,411) | (13,980) | ||||||||||||||||||||||||||||||||
Stock-based compensation adjustments | 7,014 | 5,030 | 7,528 | ||||||||||||||||||||||||||||||||
Net effect of amortization of above and below-market in-place lease intangibles | (12,284) | (8,323) | (7,615) | ||||||||||||||||||||||||||||||||
Non-incremental capital expenditures (2) | (77,682) | (49,653) | (44,004) | ||||||||||||||||||||||||||||||||
Adjusted Funds From Operations applicable to common stock | $ | 137,422 | $ | 165,716 | $ | 171,458 | |||||||||||||||||||||||||||||
Weighted-average shares outstanding – diluted | 126,104 | 126,182 | 130,636 |
2018 | Per Share (1) | 2017 | Per Share(1) | 2016 | Per Share(1) | ||||||||||||||||||
GAAP net income applicable to common stock | $ | 130,296 | $ | 1.00 | $ | 133,564 | $ | 0.92 | $ | 99,732 | $ | 0.69 | |||||||||||
Depreciation of real assets (2) | 107,113 | 0.82 | 118,577 | 0.82 | 127,129 | 0.87 | |||||||||||||||||
Amortization of lease-related costs (2) | 63,235 | 0.48 | 75,327 | 0.52 | 75,139 | 0.52 | |||||||||||||||||
Impairment loss on real estate assets | — | — | 46,461 | 0.32 | 33,901 | 0.23 | |||||||||||||||||
Gain on sale- wholly-owned properties | (75,691 | ) | (0.58 | ) | (115,874 | ) | (0.80 | ) | (93,410 | ) | (0.64 | ) | |||||||||||
Gain on sale- unconsolidated partnerships | — | — | (3,683 | ) | (0.03 | ) | — | — | |||||||||||||||
NAREIT Funds From Operations applicable to common stock | $ | 224,953 | $ | 1.72 | $ | 254,372 | $ | 1.75 | $ | 242,491 | $ | 1.67 | |||||||||||
Adjustments: | |||||||||||||||||||||||
Acquisition costs | — | — | 6 | — | 976 | — | |||||||||||||||||
Loss on extinguishment of debt | 1,680 | 0.01 | — | — | — | — | |||||||||||||||||
Net recoveries from casualty events | — | — | — | — | (34 | ) | — | ||||||||||||||||
Core Funds From Operations applicable to common stock | $ | 226,633 | $ | 1.73 | $ | 254,378 | $ | 1.75 | $ | 243,433 | $ | 1.67 | |||||||||||
Adjustments: | |||||||||||||||||||||||
Amortization of debt issuance costs, fair market adjustments on notes payable, and discount on Unsecured Senior Notes | 2,083 | 2,496 | 2,610 | ||||||||||||||||||||
Depreciation of non real estate assets | 813 | 809 | 841 | ||||||||||||||||||||
Straight-line effects of lease revenue (2) | (13,980 | ) | (21,492 | ) | (21,544 | ) | |||||||||||||||||
Stock-based and other non-cash compensation | 7,528 | 6,139 | 5,620 | ||||||||||||||||||||
Net effect of amortization of below-market in-place lease intangibles | (7,615 | ) | (6,575 | ) | (5,065 | ) | |||||||||||||||||
Acquisition costs | — | (6 | ) | (976 | ) | ||||||||||||||||||
Non-incremental capital expenditures (3) | (44,004 | ) | (35,437 | ) | (35,568 | ) | |||||||||||||||||
Adjusted Funds From Operations applicable to common stock | $ | 171,458 | $ | 200,312 | $ | 189,351 | |||||||||||||||||
Weighted-average shares outstanding – diluted | 130,636 | 145,380 | 145,635 |
Cash Basis | Accrual Basis | ||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | ||||||||||||||||||||
Net income applicable to Piedmont (GAAP basis) | $ | 232,688 | $ | 229,261 | $ | 232,688 | $ | 229,261 | |||||||||||||||
Net loss applicable to noncontrolling interest | (3) | (5) | (3) | (5) | |||||||||||||||||||
Interest expense | 54,990 | 61,594 | 54,990 | 61,594 | |||||||||||||||||||
Depreciation | 110,542 | 105,985 | 110,542 | 105,985 | |||||||||||||||||||
Amortization | 93,242 | 76,610 | 93,242 | 76,610 | |||||||||||||||||||
Depreciation and amortization attributable to noncontrolling interests | 85 | 87 | 85 | 87 | |||||||||||||||||||
Impairment loss on real estate assets | — | 8,953 | — | 8,953 | |||||||||||||||||||
Gain on sale of real estate assets | (205,666) | (197,010) | (205,666) | (197,010) | |||||||||||||||||||
EBITDAre(1) | 285,878 | 285,475 | 285,878 | 285,475 | |||||||||||||||||||
Loss on extinguishment of debt | 9,336 | — | 9,336 | — | |||||||||||||||||||
Retirement and separation expenses associated with senior management transition in June 2019 | — | 3,175 | — | 3,175 | |||||||||||||||||||
Core EBITDA(2) | 295,214 | 288,650 | 295,214 | 288,650 | |||||||||||||||||||
General & administrative expenses | 27,464 | 34,720 | 27,464 | 34,720 | |||||||||||||||||||
Management fee revenue(3) | (1,495) | (2,518) | (1,495) | (2,518) | |||||||||||||||||||
Other income | (1,724) | (228) | (1,724) | (228) | |||||||||||||||||||
Non-cash general reserve for uncollectible accounts | 4,553 | — | |||||||||||||||||||||
Straight-line rent effects of lease revenue | (22,601) | (10,411) | |||||||||||||||||||||
Straight-line effects of lease revenue attributable to noncontrolling interests | (16) | (9) | |||||||||||||||||||||
Amortization of lease-related intangibles | (12,284) | (8,323) | |||||||||||||||||||||
Property NOI | 289,111 | 301,881 | 319,459 | 320,624 | |||||||||||||||||||
Net operating income from: | |||||||||||||||||||||||
Acquisitions(4) | (40,696) | (8,229) | (52,448) | (10,769) | |||||||||||||||||||
Dispositions(5) | (21,049) | (61,423) | (22,113) | (63,730) | |||||||||||||||||||
Other investments(6) | (248) | (1,204) | (340) | (1,142) | |||||||||||||||||||
Same Store NOI | $ | 227,118 | $ | 231,025 | $ | 244,558 | $ | 244,983 | |||||||||||||||
Change period over period in Same Store NOI | (1.7) | % | N/A | (0.2) | % | N/A |
Cash Basis | Accrual Basis | ||||||||||||||
December 31, 2018 | December 31, 2017 | December 31, 2018 | December 31, 2017 | ||||||||||||
Net income applicable to Piedmont (GAAP basis) | $ | 130,296 | $ | 133,564 | $ | 130,296 | $ | 133,564 | |||||||
Net income applicable to noncontrolling interest | (5 | ) | (15 | ) | (5 | ) | (15 | ) | |||||||
Interest expense | 61,023 | 68,124 | 61,023 | 68,124 | |||||||||||
Loss on extinguishment of debt | 1,680 | — | 1,680 | — | |||||||||||
Depreciation (1) | 107,927 | 119,386 | 107,927 | 119,386 | |||||||||||
Amortization (1) | 63,235 | 75,327 | 63,235 | 75,327 | |||||||||||
Acquisition costs | — | 6 | — | 6 | |||||||||||
Impairment loss on real estate assets (1) | — | 46,461 | — | 46,461 | |||||||||||
Gain on sale of real estate assets, net (1) | (75,691 | ) | (119,557 | ) | (75,691 | ) | (119,557 | ) | |||||||
General & administrative expenses(1) | 29,713 | 29,374 | 29,713 | 29,374 | |||||||||||
Management fee revenue | (712 | ) | (922 | ) | (712 | ) | (922 | ) | |||||||
Other income(1) | (418 | ) | (303 | ) | (418 | ) | (303 | ) | |||||||
Straight-line rent effects of lease revenue(1) | (13,980 | ) | (21,492 | ) | |||||||||||
Amortization of lease-related intangibles(1) | (7,615 | ) | (6,575 | ) | |||||||||||
Property NOI | $ | 295,453 | $ | 323,378 | $ | 317,048 | $ | 351,445 | |||||||
Net operating income from: | |||||||||||||||
Acquisitions(2) | (4,718 | ) | (23 | ) | (5,993 | ) | (27 | ) | |||||||
Dispositions(3) | (13,841 | ) | (58,177 | ) | (11,396 | ) | (54,650 | ) | |||||||
Other investments(4) | (3,730 | ) | (8,718 | ) | (4,021 | ) | (9,418 | ) | |||||||
�� | |||||||||||||||
Same Store NOI | $ | 273,164 | $ | 256,460 | $ | 295,638 | $ | 287,350 | |||||||
Change period over period in Same Store NOI | 6.5 | % | N/A | 2.9 | % | N/A |
Payments Due by Period | ||||||||||||||||||||||||||||||||
Contractual Obligations (1) | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | |||||||||||||||||||||||||||
Long-term debt (2) | $ | 1,632,610 | $ | 327,610 | $ | 355,000 | (3) | $ | 650,000 | $ | 300,000 | |||||||||||||||||||||
Payments Due by Period | |||||||||||||||||||||
Contractual Obligations | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | ||||||||||||||||
Long-term debt (1) (2) | $ | 1,694,706 | $ | 932 | $ | 328,774 | (3) | $ | 715,000 | (4) | $ | 650,000 | (5) |
2021 | 2022 | 2023 | 2024 | 2025 | Thereafter | Total | |||||||||||||||||||||||||||||||||||
Maturing debt: | |||||||||||||||||||||||||||||||||||||||||
Variable rate repayments | $ | 300,000 | $ | 5,000 | (2) | $ | — | $ | — | $ | 150,000 | (3) | $ | — | $ | 455,000 | |||||||||||||||||||||||||
Variable rate average interest rate (1) | 1.16 | % | 1.05 | % | — | % | — | % | 1.10 | % | — | % | 1.14 | % | |||||||||||||||||||||||||||
Fixed rate repayments | $ | 27,610 | $ | — | $ | 350,000 | $ | 400,000 | $ | 100,000 | (3) | $ | 300,000 | $ | 1,177,610 | ||||||||||||||||||||||||||
Fixed rate average interest rate (1) | 5.55 | % | — | % | 3.40 | % | 4.45 | % | 3.56 | % | 3.15 | % | 3.76 | % |
2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Total | |||||||||||||||||||||
Maturing debt: | |||||||||||||||||||||||||||
Variable rate repayments | $ | — | $ | — | $ | — | $ | 205,000 | (3) | $ | — | $ | 100,000 | (4) | $ | 305,000 | |||||||||||
Variable rate average interest rate (1) | — | % | — | % | — | % | 3.35 | % | — | % | 4.12 | % | 3.60 | % | |||||||||||||
Fixed rate repayments | $ | 932 | $ | 1,072 | $ | 327,702 | (2) | $ | 160,000 | $ | 350,000 | $ | 550,000 | (4) | $ | 1,389,706 | |||||||||||
Fixed rate average interest rate (1) | 5.55 | % | 5.55 | % | 3.40 | % | 3.48 | % | 3.40 | % | 4.36 | % | 3.79 | % |
2020 | 2021 | 2022 | 2023 | 2024 | Thereafter | Total | |||||||||||||||||||||||||||||||||||
Maturing debt: | |||||||||||||||||||||||||||||||||||||||||
Variable rate repayments | $ | — | $ | — | $ | — | (3) | $ | — | $ | — | $ | 100,000 | (4) | $ | 100,000 | |||||||||||||||||||||||||
Variable rate average interest rate (1) | — | % | — | % | — | % | — | % | — | % | 3.40 | % | 3.40 | % | |||||||||||||||||||||||||||
Fixed rate repayments | $ | 985 | $ | 327,702 | (2) | $ | 160,000 | $ | 350,000 | $ | 400,000 | $ | 150,000 | (4) | $ | 1,388,687 | |||||||||||||||||||||||||
Fixed rate average interest rate (1) | 5.55 | % | 3.40 | % | 3.48 | % | 3.40 | % | 4.45 | % | 4.11 | % | 3.79 | % |
2018 | 2019 | 2020 | 2021 | 2022 | Thereafter | Total | |||||||||||||||||||||
Maturing debt: | |||||||||||||||||||||||||||
Variable rate repayments | $ | 170,000 | (2) | $ | 23,000 | (3) | $ | — | $ | — | $ | — | $ | — | $ | 193,000 | |||||||||||
Variable rate average interest rate (1) | 2.54 | % | 2.57 | % | — | % | — | % | — | % | — | % | 2.54 | % | |||||||||||||
Fixed rate repayments | $ | 882 | $ | 301,014 | (4) | $ | 301,072 | (5) | $ | 27,702 | $ | 160,000 | $ | 750,000 | $ | 1,540,670 | |||||||||||
Fixed rate average interest rate (1) | 5.55 | % | 2.79 | % | 3.36 | % | 5.55 | % | 3.48 | % | 3.96 | % | 3.59 | % |
(a) 1. The financial statements begin on page F-4 of this Annual Report on Form 10-K, and the list of the financial statements contained herein is set forth on page F-1, which is hereby incorporated by reference. (a) 2. Schedule III—Real Estate Assets and Accumulated Depreciation. |
Piedmont Office Realty Trust, Inc. | ||||||||
(Registrant) | ||||||||
By: | /s/ | |||||||
Chief Executive Officer, Principal Executive Officer, and Director |
Signature | Title | Date | |||||||||
/s/ FRANK C. MCDOWELL | Chairman, and Director | February | |||||||||
Frank C. McDowell | |||||||||||
/s/ DALE H. TAYSOM | Vice-Chairman, and Director | February 17, 2021 | |||||||||
Dale H. Taysom | |||||||||||
/s/ KELLY H. BARRETT | Director | February 17, 2021 | |||||||||
Kelly H. Barrett | |||||||||||
/s/ WESLEY E. CANTRELL | Director | February | |||||||||
Wesley E. Cantrell | |||||||||||
/s/ GLENN G.COHEN | Director | February 17, 2021 | |||||||||
Glenn G. Cohen | |||||||||||
/s/ BARBARA B. LANG | Director | February | |||||||||
Barbara B. Lang | |||||||||||
/s/ JEFFREY L. SWOPE | Director | February | |||||||||
Jeffrey L. Swope | |||||||||||
/s/ | |||||||||||
Chief Executive Officer and Director | February | ||||||||||
(Principal Executive Officer) | |||||||||||
/s/ ROBERT E. BOWERS | Chief Financial Officer and Executive Vice-President | February | |||||||||
Robert E. Bowers | (Principal Financial Officer) | ||||||||||
/s/ LAURA P. MOON | Chief Accounting Officer | February | |||||||||
Laura P. Moon | (Principal Accounting Officer) | ||||||||||
Exhibit Number | Description of Document | ||||||||||
3.1 | |||||||||||
3.2 | |||||||||||
3.3 | |||||||||||
3.4 | |||||||||||
3.5 | |||||||||||
3.6 | |||||||||||
4.1 | |||||||||||
4.2 | |||||||||||
4.3 | |||||||||||
4.4 | |||||||||||
4.5 | |||||||||||
4.7 | |||||||||||
4.8 | |||||||||||
10.1 | |||||||||||
10.2 | |||||||||||
10.3 | |||||||||||
10.4 | |||||||||||
10.5* | |||||||||||
10.6* | |||||||||||
10.7* | |||||||||||
10.8* | |||||||||||
10.9* | |||||||||||
10.16* | |||||||||||
10.17* | |||||||||||
10.18* | |||||||||||
10.30 | |||||||||||
10.31* | |||||||||||
10.33 | |||||||||||
10.34 | |||||||||||
10.36* | |||||||||||
10.37* | |||||||||||
10.38* | |||||||||||
21.1 | |||||||||||
23.1 | |||||||||||
31.2 | |||||||||||
32.1 | |||||||||||
32.2 | |||||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | ||||||||||
101.SCH | XBRL Taxonomy Extension Schema | ||||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase | ||||||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase | ||||||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase | ||||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase | ||||||||||
104.1 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
Financial Statements | Page | ||||
Financial Statement Schedule | |||||
December 31, 2018 | December 31, 2017 | December 31, 2020 | December 31, 2019 | |||||||||||||||
Assets: | Assets: | |||||||||||||||||
Real estate assets, at cost: | Real estate assets, at cost: | |||||||||||||||||
Land | $ | 507,422 | $ | 490,625 | Land | $ | 484,466 | $ | 485,560 | |||||||||
Buildings and improvements, less accumulated depreciation of $772,093 and $683,770 as of December 31, 2018 and December 31, 2017, respectively | 2,305,096 | 2,243,519 | ||||||||||||||||
Intangible lease assets, less accumulated amortization of $87,391 and $99,145 as of December 31, 2018 and December 31, 2017, respectively | 77,676 | 77,805 | ||||||||||||||||
Buildings and improvements, less accumulated depreciation of $767,542 and $730,750 as of December 31, 2020 and December 31, 2019, respectively | Buildings and improvements, less accumulated depreciation of $767,542 and $730,750 as of December 31, 2020 and December 31, 2019, respectively | 2,424,225 | 2,212,935 | |||||||||||||||
Intangible lease assets, less accumulated amortization of $67,850 and $50,766 as of December 31, 2020 and December 31, 2019, respectively | Intangible lease assets, less accumulated amortization of $67,850 and $50,766 as of December 31, 2020 and December 31, 2019, respectively | 90,594 | 74,405 | |||||||||||||||
Construction in progress | 15,848 | 11,344 | Construction in progress | 56,749 | 29,920 | |||||||||||||
Real estate assets held for sale, net | 110,552 | 561,449 | Real estate assets held for sale, net | 0 | 139,690 | |||||||||||||
Total real estate assets | 3,016,594 | 3,384,742 | Total real estate assets | 3,056,034 | 2,942,510 | |||||||||||||
Investment in and amounts due from unconsolidated joint venture | — | 10 | ||||||||||||||||
Cash and cash equivalents | 4,571 | 7,382 | Cash and cash equivalents | 7,331 | 13,545 | |||||||||||||
Tenant receivables, net of allowance for doubtful accounts of $504 and $539 as of December 31, 2018 and December 31, 2017, respectively | 10,800 | 12,139 | ||||||||||||||||
Tenant receivables, net of allowance for doubtful accounts of $4,553 and $0 as of December 31, 2020 and December 31, 2019, respectively | Tenant receivables, net of allowance for doubtful accounts of $4,553 and $0 as of December 31, 2020 and December 31, 2019, respectively | 8,448 | 8,226 | |||||||||||||||
Straight-line rent receivables | 162,589 | 144,469 | Straight-line rent receivables | 151,153 | 132,342 | |||||||||||||
Notes receivable | Notes receivable | 118,500 | 0 | |||||||||||||||
Restricted cash and escrows | 1,463 | 1,373 | Restricted cash and escrows | 1,883 | 1,841 | |||||||||||||
Prepaid expenses and other assets | 25,356 | 20,778 | Prepaid expenses and other assets | 23,277 | 25,427 | |||||||||||||
Goodwill | 98,918 | 98,918 | Goodwill | 98,918 | 98,918 | |||||||||||||
Interest rate swaps | 1,199 | 688 | ||||||||||||||||
Deferred lease costs, less accumulated amortization of $183,611 and $180,120 as of December 31, 2018 and December 31, 2017, respectively | 250,148 | 245,175 | ||||||||||||||||
Deferred lease costs, less accumulated amortization of $172,619 and $147,324 as of December 31, 2020 and December 31, 2019, respectively | Deferred lease costs, less accumulated amortization of $172,619 and $147,324 as of December 31, 2020 and December 31, 2019, respectively | 274,266 | 265,747 | |||||||||||||||
Other assets held for sale, net | 20,791 | 84,293 | Other assets held for sale, net | 0 | 28,201 | |||||||||||||
Total assets | $ | 3,592,429 | $ | 3,999,967 | Total assets | $ | 3,739,810 | $ | 3,516,757 | |||||||||
Liabilities: | Liabilities: | |||||||||||||||||
Unsecured debt, net of discount and unamortized debt issuance costs of $9,879 and $7,689 as of December 31, 2018 and December 31, 2017, respectively | $ | 1,495,121 | $ | 1,535,311 | ||||||||||||||
Secured debt, net of premiums and unamortized debt issuance costs of $645 and $946 as of December 31, 2018 and December 31, 2017, respectively | 190,351 | 191,616 | ||||||||||||||||
Unsecured debt, net of discount and unamortized debt issuance costs of $10,932 and $7,626 as of December 31, 2020 and December 31, 2019, respectively | Unsecured debt, net of discount and unamortized debt issuance costs of $10,932 and $7,626 as of December 31, 2020 and December 31, 2019, respectively | $ | 1,594,068 | $ | 1,292,374 | |||||||||||||
Secured debt, inclusive of premiums and unamortized debt issuance costs of $326 and $343 as of December 31, 2020 and December 31, 2019, respectively | Secured debt, inclusive of premiums and unamortized debt issuance costs of $326 and $343 as of December 31, 2020 and December 31, 2019, respectively | 27,936 | 189,030 | |||||||||||||||
Accounts payable, accrued expenses, and accrued capital expenditures | 102,519 | 114,853 | Accounts payable, accrued expenses, and accrued capital expenditures | 111,997 | 117,496 | |||||||||||||
Dividends payable | 26,972 | 101,800 | Dividends payable | 25,683 | 26,427 | |||||||||||||
Deferred income | 28,779 | 29,582 | Deferred income | 36,891 | 34,609 | |||||||||||||
Intangible lease liabilities, less accumulated amortization of $59,144 and $55,847 as of December 31, 2018 and December 31, 2017, respectively | 35,708 | 38,458 | ||||||||||||||||
Intangible lease liabilities, less accumulated amortization of $27,344 and $19,607 as of December 31, 2020 and December 31, 2019, respectively | Intangible lease liabilities, less accumulated amortization of $27,344 and $19,607 as of December 31, 2020 and December 31, 2019, respectively | 35,440 | 25,069 | |||||||||||||||
Interest rate swaps | 839 | 1,478 | Interest rate swaps | 9,834 | 5,121 | |||||||||||||
Other liabilities held for sale, net | — | 380 | ||||||||||||||||
Other liabilities held for sale | Other liabilities held for sale | 0 | 7,657 | |||||||||||||||
Total liabilities | 1,880,289 | 2,013,478 | Total liabilities | 1,841,849 | 1,697,783 | |||||||||||||
Commitments and Contingencies (Note 8) | — | — | ||||||||||||||||
0 | 0 | |||||||||||||||||
Stockholders’ Equity: | Stockholders’ Equity: | |||||||||||||||||
Shares-in-trust, 150,000,000 shares authorized, none outstanding as of December 31, 2018 or December 31, 2017 | — | — | ||||||||||||||||
Preferred stock, no par value, 100,000,000 shares authorized, none outstanding as of December 31, 2018 or December 31, 2017 | — | — | ||||||||||||||||
Common stock, $.01 par value; 750,000,000 shares authorized, 126,218,554 shares issued and outstanding as of December 31, 2018; and 142,358,940 shares issued and outstanding at December 31, 2017 | 1,262 | 1,424 | ||||||||||||||||
Shares-in-trust, 150,000,000 shares authorized, NaN outstanding as of December 31, 2020 or December 31, 2019 | Shares-in-trust, 150,000,000 shares authorized, NaN outstanding as of December 31, 2020 or December 31, 2019 | 0 | 0 | |||||||||||||||
Preferred stock, 0 par value, 100,000,000 shares authorized, NaN outstanding as of December 31, 2020 or December 31, 2019 | Preferred stock, 0 par value, 100,000,000 shares authorized, NaN outstanding as of December 31, 2020 or December 31, 2019 | 0 | 0 | |||||||||||||||
Common stock, $0.01 par value; 750,000,000 shares authorized, 123,839,419 shares issued and outstanding as of December 31, 2020; and 125,783,408 shares issued and outstanding at December 31, 2019 | Common stock, $0.01 par value; 750,000,000 shares authorized, 123,839,419 shares issued and outstanding as of December 31, 2020; and 125,783,408 shares issued and outstanding at December 31, 2019 | 1,238 | 1,258 | |||||||||||||||
Additional paid-in capital | 3,683,186 | 3,677,360 | Additional paid-in capital | 3,693,996 | 3,686,398 | |||||||||||||
Cumulative distributions in excess of earnings | (1,982,542 | ) | (1,702,281 | ) | Cumulative distributions in excess of earnings | (1,774,856) | (1,871,375) | |||||||||||
Other comprehensive income | 8,462 | 8,164 | ||||||||||||||||
Other comprehensive income/(loss) | Other comprehensive income/(loss) | (24,100) | 967 | |||||||||||||||
Piedmont stockholders’ equity | 1,710,368 | 1,984,667 | Piedmont stockholders’ equity | 1,896,278 | 1,817,248 | |||||||||||||
Noncontrolling interest | 1,772 | 1,822 | Noncontrolling interest | 1,683 | 1,726 | |||||||||||||
Total stockholders’ equity | 1,712,140 | 1,986,489 | Total stockholders’ equity | 1,897,961 | 1,818,974 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 3,592,429 | $ | 3,999,967 | Total liabilities and stockholders’ equity | $ | 3,739,810 | $ | 3,516,757 |
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||||||||||
2018 | 2017 | 2016 | 2020 | 2019 | 2018 | |||||||||||||||||||||||
Revenues: | Revenues: | |||||||||||||||||||||||||||
Rental income | $ | 411,667 | $ | 455,125 | $ | 439,918 | ||||||||||||||||||||||
Tenant reimbursements | 92,743 | 98,139 | 94,901 | |||||||||||||||||||||||||
Rental and tenant reimbursement revenue | Rental and tenant reimbursement revenue | $ | 519,953 | $ | 511,905 | $ | 504,410 | |||||||||||||||||||||
Property management fee revenue | 1,450 | 1,735 | 1,914 | Property management fee revenue | 2,867 | 3,398 | 1,450 | |||||||||||||||||||||
Other property related income | 20,107 | 19,174 | 18,982 | Other property related income | 12,204 | 17,875 | 20,107 | |||||||||||||||||||||
525,967 | 574,173 | 555,715 | 535,024 | 533,178 | 525,967 | |||||||||||||||||||||||
Expenses: | Expenses: | |||||||||||||||||||||||||||
Property operating costs | 209,338 | 222,441 | 220,796 | Property operating costs | 214,933 | 211,380 | 209,338 | |||||||||||||||||||||
Depreciation | 107,956 | 119,288 | 127,733 | Depreciation | 110,575 | 106,015 | 107,956 | |||||||||||||||||||||
Amortization | 63,295 | 75,367 | 75,119 | Amortization | 93,294 | 76,666 | 63,295 | |||||||||||||||||||||
Impairment loss on real estate assets | — | 46,461 | 33,901 | Impairment loss on real estate assets | 0 | 8,953 | 0 | |||||||||||||||||||||
General and administrative | 29,713 | 29,319 | 27,382 | General and administrative | 27,464 | 37,895 | 29,713 | |||||||||||||||||||||
410,302 | 492,876 | 484,931 | 446,266 | 440,909 | 410,302 | |||||||||||||||||||||||
115,665 | 81,297 | 70,784 | ||||||||||||||||||||||||||
Other income (expense): | Other income (expense): | |||||||||||||||||||||||||||
Interest expense | (61,023 | ) | (68,124 | ) | (64,860 | ) | Interest expense | (54,990) | (61,594) | (61,023) | ||||||||||||||||||
Other income/(expense) | 1,638 | 657 | (13 | ) | ||||||||||||||||||||||||
Net recoveries from casualty events | — | — | 34 | |||||||||||||||||||||||||
Equity in income of unconsolidated joint ventures | — | 3,845 | 362 | |||||||||||||||||||||||||
Other income | Other income | 2,587 | 1,571 | 1,638 | ||||||||||||||||||||||||
Loss on extinguishment of debt | (1,680 | ) | — | — | Loss on extinguishment of debt | (9,336) | 0 | (1,680) | ||||||||||||||||||||
Gain on sale of real estate assets, net | 75,691 | 115,874 | 93,410 | |||||||||||||||||||||||||
Gain on sale of real estate assets | Gain on sale of real estate assets | 205,666 | 197,010 | 75,691 | ||||||||||||||||||||||||
143,927 | 136,987 | 14,626 | ||||||||||||||||||||||||||
14,626 | 52,252 | 28,933 | ||||||||||||||||||||||||||
Net income | 130,291 | 133,549 | 99,717 | Net income | 232,685 | 229,256 | 130,291 | |||||||||||||||||||||
Net loss applicable to noncontrolling interest | 5 | 15 | 15 | Net loss applicable to noncontrolling interest | 3 | 5 | 5 | |||||||||||||||||||||
Net income applicable to Piedmont | $ | 130,296 | $ | 133,564 | $ | 99,732 | Net income applicable to Piedmont | $ | 232,688 | $ | 229,261 | $ | 130,296 | |||||||||||||||
Per share information— basic and diluted: | Per share information— basic and diluted: | |||||||||||||||||||||||||||
Net income applicable to common stockholders | $ | 1.00 | $ | 0.92 | $ | 0.69 | Net income applicable to common stockholders | $ | 1.85 | $ | 1.82 | $ | 1.00 | |||||||||||||||
Weighted-average shares outstanding—basic | 130,161,202 | 145,043,503 | 145,230,382 | Weighted-average shares outstanding—basic | 125,730,460 | 125,709,207 | 130,161,202 | |||||||||||||||||||||
Weighted-average shares outstanding—diluted | 130,635,650 | 145,379,994 | 145,634,953 | Weighted-average shares outstanding—diluted | 126,104,321 | 126,182,137 | 130,635,650 |
Years Ended December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
Net income applicable to Piedmont | $ | 232,688 | $ | 229,261 | $ | 130,296 | |||||||||||||||||||||||||||||
Other comprehensive income/(loss): | |||||||||||||||||||||||||||||||||||
Effective portion of gain/(loss) on derivative instruments that are designated and qualify as cash flow hedges (See Note 5) | (26,794) | (5,659) | 692 | ||||||||||||||||||||||||||||||||
1,727 | (1,836) | (300) | |||||||||||||||||||||||||||||||||
Other comprehensive income/(loss) | (25,067) | (7,495) | 392 | ||||||||||||||||||||||||||||||||
Comprehensive income applicable to Piedmont | $ | 207,621 | $ | 221,766 | $ | 130,688 |
Years Ended December 31, | ||||||||||||||||||||
2018 | 2017 | 2016 | ||||||||||||||||||
Net income applicable to Piedmont | $ | 130,296 | $ | 133,564 | $ | 99,732 | ||||||||||||||
Other comprehensive income: | ||||||||||||||||||||
Effective portion of gain/(loss) on derivative instruments that are designated and qualify as cash flow hedges (See Note 5) | 692 | 2,479 | (4,126 | ) | ||||||||||||||||
(300 | ) | 3,502 | 4,548 | |||||||||||||||||
Gain on investment in available for sale securities | — | 79 | 21 | |||||||||||||||||
Other comprehensive income | 392 | 6,060 | 443 | |||||||||||||||||
Comprehensive income applicable to Piedmont | $ | 130,688 | $ | 139,624 | $ | 100,175 |
Common Stock | Additional Paid-In Capital | Cumulative Distributions in Excess of Earnings | Other Comprehensive Income/(Loss) | Noncontrolling Interest | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2017 | 142,359 | $ | 1,424 | $ | 3,677,360 | $ | (1,702,281) | $ | 8,164 | $ | 1,822 | $ | 1,986,489 | ||||||||||||||||||||||||||||
Cumulative effect of accounting change (adoption of ASU 2016-01) | — | — | — | 94 | (94) | — | 0 | ||||||||||||||||||||||||||||||||||
Share repurchases as part of announced plan | (16,495) | (165) | — | (301,513) | — | — | (301,678) | ||||||||||||||||||||||||||||||||||
Offering costs | — | — | (85) | — | — | — | (85) | ||||||||||||||||||||||||||||||||||
Dividends to common stockholders ($0.84 per share), stockholders of subsidiaries, and dividends reinvested | — | — | (82) | (109,138) | — | (45) | (109,265) | ||||||||||||||||||||||||||||||||||
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax | 355 | 3 | 5,993 | — | — | — | 5,996 | ||||||||||||||||||||||||||||||||||
Net loss applicable to noncontrolling interest | — | — | — | — | — | (5) | (5) | ||||||||||||||||||||||||||||||||||
Net income applicable to Piedmont | — | — | — | 130,296 | — | — | 130,296 | ||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 392 | — | 392 | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2018 | 126,219 | 1,262 | 3,683,186 | (1,982,542) | 8,462 | 1,772 | 1,712,140 | ||||||||||||||||||||||||||||||||||
Share repurchases as part of announced plan | (728) | (7) | — | (12,475) | — | — | (12,482) | ||||||||||||||||||||||||||||||||||
Offering costs | — | — | (710) | — | — | — | (710) | ||||||||||||||||||||||||||||||||||
Dividends to common stockholders ($0.84 per share), stockholders of subsidiaries, and dividends reinvested | — | — | (228) | (105,619) | — | (41) | (105,888) | ||||||||||||||||||||||||||||||||||
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax | 292 | 3 | 4,150 | — | — | — | 4,153 | ||||||||||||||||||||||||||||||||||
Net loss applicable to noncontrolling interest | — | — | — | — | — | (5) | (5) | ||||||||||||||||||||||||||||||||||
Net income applicable to Piedmont | — | — | — | 229,261 | — | — | 229,261 | ||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (7,495) | — | (7,495) | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2019 | 125,783 | 1,258 | 3,686,398 | (1,871,375) | 967 | 1,726 | 1,818,974 | ||||||||||||||||||||||||||||||||||
Share repurchases as part of announced plan | (2,190) | (22) | — | (30,649) | — | — | (30,671) | ||||||||||||||||||||||||||||||||||
Dividends to common stockholders ($0.84 per share), stockholders of subsidiaries, and dividends reinvested | — | — | (5) | (105,520) | — | (40) | (105,565) | ||||||||||||||||||||||||||||||||||
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax | 246 | 2 | 7,603 | — | — | — | 7,605 | ||||||||||||||||||||||||||||||||||
Net loss applicable to noncontrolling interest | — | — | — | — | — | (3) | (3) | ||||||||||||||||||||||||||||||||||
Net income applicable to Piedmont | — | — | — | 232,688 | — | — | 232,688 | ||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (25,067) | — | (25,067) | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | 123,839 | $ | 1,238 | $ | 3,693,996 | $ | (1,774,856) | $ | (24,100) | $ | 1,683 | $ | 1,897,961 |
Common Stock | Additional Paid-In Capital | Cumulative Distributions in Excess of Earnings | Other Comprehensive Income/(Loss) | Noncontrolling Interest | Total Stockholders’ Equity | |||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||
Balance, December 31, 2015 | 145,512 | $ | 1,455 | $ | 3,669,977 | $ | (1,550,698 | ) | $ | 1,661 | $ | 1,025 | $ | 2,123,420 | ||||||||||||
Share repurchases as part of announced plan | (462 | ) | (5 | ) | — | (7,938 | ) | — | — | (7,943 | ) | |||||||||||||||
Offering costs | — | — | (342 | ) | — | — | — | (342 | ) | |||||||||||||||||
Noncontrolling interest in consolidated joint venture | — | — | — | — | — | 888 | 888 | |||||||||||||||||||
Dividends to common stockholders ($0.84 per share), stockholders of subsidiaries, and dividends reinvested | — | — | (173 | ) | (121,959 | ) | — | (16 | ) | (122,148 | ) | |||||||||||||||
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax | 185 | 2 | 3,666 | — | — | — | 3,668 | |||||||||||||||||||
Net loss applicable to noncontrolling interest | — | — | — | — | — | (15 | ) | (15 | ) | |||||||||||||||||
Net income applicable to Piedmont | — | — | — | 99,732 | — | — | 99,732 | |||||||||||||||||||
Other comprehensive income | — | — | — | — | 443 | — | 443 | |||||||||||||||||||
Balance, December 31, 2016 | 145,235 | 1,452 | 3,673,128 | (1,580,863 | ) | 2,104 | 1,882 | 2,097,703 | ||||||||||||||||||
Share repurchases as part of an announced plan | (3,133 | ) | (31 | ) | — | (61,719 | ) | — | — | (61,750 | ) | |||||||||||||||
Offering costs | — | — | (182 | ) | — | — | — | (182 | ) | |||||||||||||||||
Dividends to common stockholders ($1.34 per share), stockholders of subsidiaries, and dividends reinvested | — | — | (233 | ) | (193,263 | ) | — | (45 | ) | (193,541 | ) | |||||||||||||||
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax | 257 | 3 | 4,647 | — | — | — | 4,650 | |||||||||||||||||||
Net loss applicable to noncontrolling interest | — | — | — | — | — | (15 | ) | (15 | ) | |||||||||||||||||
Net income applicable to Piedmont | — | — | — | 133,564 | — | — | 133,564 | |||||||||||||||||||
Other comprehensive income | — | — | — | — | 6,060 | — | 6,060 | |||||||||||||||||||
Balance, December 31, 2017 | 142,359 | 1,424 | 3,677,360 | (1,702,281 | ) | 8,164 | 1,822 | 1,986,489 | ||||||||||||||||||
Cumulative effect of accounting change (adoption of ASU 2016-01) | — | — | — | 94 | (94 | ) | — | — | ||||||||||||||||||
Share repurchases as part of an announced plan | (16,495 | ) | (165 | ) | — | (301,513 | ) | — | — | (301,678 | ) | |||||||||||||||
Offering costs | — | — | (85 | ) | — | — | — | (85 | ) | |||||||||||||||||
Dividends to common stockholders ($0.84 per share), stockholders of subsidiaries, and dividends reinvested | — | — | (82 | ) | (109,138 | ) | — | (45 | ) | (109,265 | ) | |||||||||||||||
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax | 355 | 3 | 5,993 | — | — | — | 5,996 | |||||||||||||||||||
Net loss applicable to noncontrolling interest | — | — | — | — | — | (5 | ) | (5 | ) | |||||||||||||||||
Net income applicable to Piedmont | — | — | — | 130,296 | — | — | 130,296 | |||||||||||||||||||
Other comprehensive income | — | — | — | — | 392 | — | 392 | |||||||||||||||||||
Balance, December 31, 2018 | 126,219 | $ | 1,262 | $ | 3,683,186 | �� | $ | (1,982,542 | ) | $ | 8,462 | $ | 1,772 | $ | 1,712,140 |
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||||||||||
2018 | 2017 | 2016 | 2020 | 2019 | 2018 | |||||||||||||||||||||||
Cash Flows from Operating Activities: | Cash Flows from Operating Activities: | |||||||||||||||||||||||||||
Net income | $ | 130,291 | $ | 133,549 | $ | 99,717 | Net income | $ | 232,685 | $ | 229,256 | $ | 130,291 | |||||||||||||||
Operating distributions received from unconsolidated joint ventures | 10 | 11 | 579 | Operating distributions received from unconsolidated joint ventures | 0 | 0 | 10 | |||||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||||||||
Depreciation | 107,956 | 119,288 | 127,733 | Depreciation | 110,575 | 106,015 | 107,956 | |||||||||||||||||||||
Amortization of debt issuance costs net of favorable settlement of interest rate swaps | (250 | ) | 1,588 | 1,702 | Amortization of debt issuance costs net of favorable settlement of interest rate swaps | 2,080 | 87 | (250) | ||||||||||||||||||||
Other amortization | 58,330 | 73,944 | 74,373 | Other amortization | 84,534 | 71,609 | 58,330 | |||||||||||||||||||||
Impairment loss on real estate assets | — | 46,461 | 33,901 | Impairment loss on real estate assets | 0 | 8,953 | 0 | |||||||||||||||||||||
Loss on extinguishment of debt | 1,665 | — | — | Loss on extinguishment of debt | 349 | 0 | 1,665 | |||||||||||||||||||||
General reserve for uncollectible accounts | General reserve for uncollectible accounts | 4,553 | 0 | 0 | ||||||||||||||||||||||||
Stock compensation expense | 9,737 | 9,196 | 7,928 | Stock compensation expense | 9,718 | 15,446 | 9,737 | |||||||||||||||||||||
Equity in income of unconsolidated joint ventures | — | (3,845 | ) | (362 | ) | |||||||||||||||||||||||
Gain on sale of real estate assets | (75,691 | ) | (115,874 | ) | (93,410 | ) | Gain on sale of real estate assets | (205,666) | (197,010) | (75,691) | ||||||||||||||||||
Changes in assets and liabilities: | Changes in assets and liabilities: | |||||||||||||||||||||||||||
Increase in tenant and straight-line rent receivables, net | (16,094 | ) | (21,392 | ) | (26,747 | ) | ||||||||||||||||||||||
Increase in tenant and straight-line rent receivables | Increase in tenant and straight-line rent receivables | (30,887) | (15,706) | (16,094) | ||||||||||||||||||||||||
Decrease/(increase) in prepaid expenses and other assets | (3,095 | ) | 384 | 1,437 | Decrease/(increase) in prepaid expenses and other assets | 823 | 309 | (3,095) | ||||||||||||||||||||
Cash paid upon settlement of interest rate swaps | Cash paid upon settlement of interest rate swaps | (19,930) | 0 | 0 | ||||||||||||||||||||||||
Increase/(decrease) in accounts payable and accrued expenses | (9,092 | ) | (1,521 | ) | 3,555 | Increase/(decrease) in accounts payable and accrued expenses | 6,264 | (11,251) | (9,092) | |||||||||||||||||||
Increase/(decrease) in deferred income | (898 | ) | 1,016 | 1,441 | ||||||||||||||||||||||||
(Decrease)/increase in deferred income | (Decrease)/increase in deferred income | (1,814) | 776 | (898) | ||||||||||||||||||||||||
Net cash provided by operating activities | 202,869 | 242,805 | 231,847 | Net cash provided by operating activities | 193,284 | 208,484 | 202,869 | |||||||||||||||||||||
Cash Flows from Investing Activities: | Cash Flows from Investing Activities: | |||||||||||||||||||||||||||
Acquisition of real estate assets and intangibles | (151,914 | ) | (35,262 | ) | (349,668 | ) | Acquisition of real estate assets and intangibles | (417,056) | (326,200) | (151,914) | ||||||||||||||||||
Capitalized expenditures | (72,105 | ) | (79,831 | ) | (110,228 | ) | Capitalized expenditures | (112,580) | (103,553) | (72,105) | ||||||||||||||||||
Net sale proceeds from wholly-owned properties | 575,227 | 375,518 | 365,918 | |||||||||||||||||||||||||
Net sale proceeds received from unconsolidated joint ventures | — | 12,334 | — | |||||||||||||||||||||||||
Investments in unconsolidated joint ventures | — | (1,162 | ) | — | ||||||||||||||||||||||||
Sales proceeds from wholly-owned properties | Sales proceeds from wholly-owned properties | 360,094 | 589,767 | 575,227 | ||||||||||||||||||||||||
Note receivable issuance | (3,200 | ) | — | — | Note receivable issuance | 0 | 0 | (3,200) | ||||||||||||||||||||
Note receivable repayment | 3,200 | — | — | Note receivable repayment | 0 | 0 | 3,200 | |||||||||||||||||||||
Deferred lease costs paid | (27,430 | ) | (30,985 | ) | (25,896 | ) | Deferred lease costs paid | (28,334) | (25,639) | (27,430) | ||||||||||||||||||
Net cash provided by/(used in) investing activities | 323,778 | 240,612 | (119,874 | ) | ||||||||||||||||||||||||
Net cash (used in)/provided by investing activities | Net cash (used in)/provided by investing activities | (197,876) | 134,375 | 323,778 | ||||||||||||||||||||||||
Cash Flows from Financing Activities: | Cash Flows from Financing Activities: | |||||||||||||||||||||||||||
Debt issuance and other costs paid | (1,040 | ) | (132 | ) | (264 | ) | Debt issuance and other costs paid | (1,363) | (151) | (1,040) | ||||||||||||||||||
Proceeds from debt | 977,062 | 180,000 | 695,000 | Proceeds from debt | 1,174,383 | 592,000 | 977,062 | |||||||||||||||||||||
Repayments of debt | (1,020,455 | ) | (476,401 | ) | (706,875 | ) | Repayments of debt | (1,035,077) | (798,019) | (1,020,455) | ||||||||||||||||||
Discount paid due to loan modification | Discount paid due to loan modification | (525) | 0 | 0 | ||||||||||||||||||||||||
Costs of issuance of common stock | (85 | ) | (182 | ) | (342 | ) | Costs of issuance of common stock | 0 | (710) | (85) | ||||||||||||||||||
Value of shares withheld for payment of taxes related to employee stock compensation | (2,219 | ) | (3,403 | ) | (2,344 | ) | Value of shares withheld for payment of taxes related to employee stock compensation | (2,703) | (3,295) | (2,219) | ||||||||||||||||||
Repurchases of common stock as part of announced plan | (298,538 | ) | (60,474 | ) | (7,943 | ) | Repurchases of common stock as part of announced plan | (29,986) | (16,899) | (298,538) | ||||||||||||||||||
Dividends paid and discount on dividend reinvestments | (184,093 | ) | (122,274 | ) | (91,616 | ) | Dividends paid and discount on dividend reinvestments | (106,309) | (106,433) | (184,093) | ||||||||||||||||||
Net cash used in financing activities | (529,368 | ) | (482,866 | ) | (114,384 | ) | Net cash used in financing activities | (1,580) | (333,507) | (529,368) | ||||||||||||||||||
Net increase/(decrease) in cash, cash equivalents, and restricted cash and escrows | (2,721 | ) | 551 | (2,411 | ) | |||||||||||||||||||||||
Net (decrease)/increase in cash, cash equivalents, and restricted cash and escrows | Net (decrease)/increase in cash, cash equivalents, and restricted cash and escrows | (6,172) | 9,352 | (2,721) | ||||||||||||||||||||||||
Cash, cash equivalents, and restricted cash and escrows, beginning of year | 8,755 | 8,204 | 10,615 | Cash, cash equivalents, and restricted cash and escrows, beginning of year | 15,386 | 6,034 | 8,755 | |||||||||||||||||||||
Cash, cash equivalents, and restricted cash and escrows, end of year | $ | 6,034 | $ | 8,755 | $ | 8,204 | Cash, cash equivalents, and restricted cash and escrows, end of year | $ | 9,214 | $ | 15,386 | $ | 6,034 |
Buildings | 40 years | ||||
Building improvements | 5-25 years | ||||
Land improvements | 20-25 years | ||||
Tenant allowances | Lease term | ||||
Furniture, fixtures, and equipment | |||||
Intangible lease assets | Lease term |
December 31, 2018 | December 31, 2017 | ||||||
Intangible Lease Assets: | |||||||
Above-Market In-Place Lease Assets | $ | 7,620 | $ | 11,935 | |||
In-Place Lease Valuation | $ | 157,447 | $ | 165,015 | |||
Intangible Lease Origination Costs (included as component of Deferred Lease Costs) | $ | 241,516 | $ | 250,539 | |||
Intangible Lease Liabilities (Below-Market In-Place Leases) | $ | 94,852 | $ | 95,620 |
December 31, 2020 | December 31, 2019 | ||||||||||
Intangible Lease Assets: | |||||||||||
Above-Market In-Place Lease Assets | $ | 2,167 | $ | 2,082 | |||||||
In-Place Lease Valuation | $ | 156,277 | $ | 157,101 | |||||||
Intangible Lease Origination Costs (included as component of Deferred Lease Costs) | $ | 250,367 | $ | 256,627 | |||||||
Intangible Lease Liabilities (Below-Market In-Place Leases) | $ | 62,784 | $ | 84,292 |
2018 | 2017 | 2016 | |||||||||
Amortization of Intangible Lease Origination Costs and In-Place Lease Valuation included in amortization expense | $ | 48,940 | $ | 58,467 | $ | 58,150 | |||||
Amortization of Above-Market and Below-Market In-Place Lease intangibles as a net increase to rental revenues | $ | 7,615 | $ | 6,575 | $ | 5,066 |
2020 | 2019 | 2018 | |||||||||||||||
Amortization of Intangible Lease Origination Costs and In-Place Lease Valuation included in amortization expense | $ | 77,000 | $ | 62,413 | $ | 48,940 | |||||||||||
Amortization of Above-Market and Below-Market In-Place Lease intangibles as a net increase to rental revenues | $ | 12,191 | $ | 8,322 | $ | 7,615 |
Intangible Lease Assets | |||||||||||||||||||||||
Above-Market In-place Lease Assets | In-Place Lease Valuation | Intangible Lease Origination Costs (1) | Below-Market In-place Lease Liabilities | ||||||||||||||||||||
For the year ending December 31: | |||||||||||||||||||||||
2021 | $ | 420 | $ | 27,520 | $ | 38,659 | $ | 10,899 | |||||||||||||||
2022 | 300 | 20,662 | 30,447 | 8,422 | |||||||||||||||||||
2023 | 103 | 13,922 | 21,019 | 5,139 | |||||||||||||||||||
2024 | 70 | 9,140 | 14,462 | 3,238 | |||||||||||||||||||
2025 | 6 | 5,657 | 10,069 | 2,072 | |||||||||||||||||||
Thereafter | 18 | 12,776 | 24,881 | 5,670 | |||||||||||||||||||
$ | 917 | $ | 89,677 | $ | 139,537 | $ | 35,440 | ||||||||||||||||
Weighted-Average Amortization Period (in years) | 3 | 5 | 5 | 5 |
Intangible Lease Assets | |||||||||||||||
Above-Market In-place Lease Assets | In-Place Lease Valuation | Intangible Lease Origination Costs (1) | Below-Market In-place Lease Liabilities | ||||||||||||
For the year ending December 31: | |||||||||||||||
2019 | $ | 938 | $ | 20,876 | $ | 29,503 | $ | 8,273 | |||||||
2020 | 197 | 14,540 | 22,570 | 6,654 | |||||||||||
2021 | 141 | 12,449 | 19,818 | 6,443 | |||||||||||
2022 | 121 | 10,948 | 17,550 | 5,878 | |||||||||||
2023 | 97 | 7,370 | 11,774 | 4,367 | |||||||||||
Thereafter | 64 | 9,935 | 18,952 | 4,093 | |||||||||||
$ | 1,558 | $ | 76,118 | $ | 120,167 | $ | 35,708 | ||||||||
Weighted-Average Amortization Period (in years) | 3 | 5 | 6 | 6 |
(1) | Included as a component of Deferred Lease Costs in |
Property | Metropolitan Statistical Area | Date of Acquisition | Ownership Percentage Acquired | Rentable Square Feet (Unaudited) | Percentage Leased as of Acquisition (Unaudited) | Net Contractual Purchase Price (in millions) | |||||||||||
501 West Church Street | Orlando, Florida | February 23, 2018 | 100 | % | 182,461 | 100 | % | $ | 28.0 | ||||||||
9320 Excelsior Boulevard | Minneapolis, Minnesota | October 25, 2018 | 100 | % | 267,724 | 100 | % | $ | 48.7 | ||||||||
25 Burlington Mall Road | Boston, Massachusetts | December 12, 2018 | 100 | % | 287,776 | 89 | % | $ | 74.0 |
Property | Metropolitan Statistical Area | Date of Acquisition | Ownership Percentage Acquired | Rentable Square Feet | Percentage Leased as of Acquisition | Net Contractual Purchase Price (in millions) | |||||||||||||||||||||||||||||||||||
Dallas Galleria Office Towers | Dallas, Texas | February 12, 2020 | 100% | 1,435,466 | 95% | $396.2 | (1) | ||||||||||||||||||||||||||||||||||
222 South Orange Avenue | Orlando, Florida | October 29, 2020 | 100% | 127,248 | 0% | $20.0 | (2) | ||||||||||||||||||||||||||||||||||
Dallas Galleria Office Towers and Undeveloped Land | |||||
Land | $ | 19,674 | |||
Building and improvements | 293,760 | ||||
Intangible lease assets (1) | 49,177 | ||||
Lease acquisition costs, net of tenant credits received from seller (1) | 1,344 | ||||
Intangible lease origination costs (1) | 55,060 | ||||
Intangible lease liabilities (1) | (22,169) | ||||
Total purchase price | $ | 396,846 |
Facility (1) | Stated Rate | Effective Rate (2) | Maturity | Amount Outstanding as of | ||||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||||||||
Secured (Fixed) | ||||||||||||||||||||||||||||||||
$35 Million Fixed-Rate Loan (3) | 5.55 | % | 3.75 | % | 9/1/2021 | $ | 27,610 | $ | 28,687 | |||||||||||||||||||||||
$160 Million Fixed-Rate Loan (4) | 3.48 | % | 3.58 | % | 7/5/2022 | 0 | 160,000 | |||||||||||||||||||||||||
Net premium and unamortized debt issuance costs | 326 | 343 | ||||||||||||||||||||||||||||||
Subtotal/Weighted Average (5) | 5.55 | % | 27,936 | 189,030 | ||||||||||||||||||||||||||||
Unsecured (Variable and Fixed) | ||||||||||||||||||||||||||||||||
Amended and Restated $300 Million Unsecured 2011 Term Loan | LIBOR + 1.00% | 1.16 | % | 11/30/2021 | 300,000 | 300,000 | ||||||||||||||||||||||||||
$500 Million Unsecured 2018 Line of Credit (6) | LIBOR + 0.90% | 1.05 | % | 9/30/2022 | (7) | 5,000 | 0 | |||||||||||||||||||||||||
$350 Million Unsecured Senior Notes | 3.40 | % | 3.43 | % | 6/01/2023 | 350,000 | 350,000 | |||||||||||||||||||||||||
$400 Million Unsecured Senior Notes | 4.45 | % | 4.10 | % | 3/15/2024 | 400,000 | 400,000 | |||||||||||||||||||||||||
$250 Million Unsecured 2018 Term Loan | LIBOR + 0.95% | 2.08 | % | (8) | 3/31/2025 | 250,000 | 250,000 | |||||||||||||||||||||||||
$300 Million Unsecured Senior Notes | 3.15 | % | 3.90 | % | (9) | 8/15/2030 | 300,000 | 0 | ||||||||||||||||||||||||
Discounts and unamortized debt issuance costs | (10,932) | (7,626) | ||||||||||||||||||||||||||||||
Subtotal/Weighted Average (5) | 2.98 | % | 1,594,068 | 1,292,374 | ||||||||||||||||||||||||||||
Total/Weighted Average (5) | 3.03 | % | $ | 1,622,004 | $ | 1,481,404 |
Facility (1) | Stated Rate | Effective Rate (2) | Maturity | Amount Outstanding as of | ||||||||||||||
2018 | 2017 | |||||||||||||||||
Secured (Fixed) | ||||||||||||||||||
$35 Million Fixed-Rate Loan (3) | 5.55 | % | 3.75 | % | 9/1/2021 | $ | 29,706 | $ | 30,670 | |||||||||
$160 Million Fixed-Rate Loan (4) | 3.48 | % | 3.58 | % | 7/5/2022 | 160,000 | 160,000 | |||||||||||
Net premium and unamortized debt issuance costs | 645 | 946 | ||||||||||||||||
Subtotal/Weighted Average (5) | 3.80 | % | 190,351 | 191,616 | ||||||||||||||
Unsecured (Variable and Fixed) | ||||||||||||||||||
$170 Million Unsecured 2015 Term Loan | LIBOR + 1.125% | 2.54 | % | 5/15/2018 | — | 170,000 | ||||||||||||
$300 Million Unsecured 2013 Term Loan | LIBOR + 1.20% | 2.78 | % | (7) | 1/31/2019 | — | 300,000 | |||||||||||
$500 Million Unsecured 2015 Line of Credit (6) | LIBOR + 1.00% | 3.17 | % | 6/18/2019 | — | 23,000 | ||||||||||||
$500 Million Unsecured 2018 Line of Credit (6) | LIBOR + 0.90% | 3.35 | % | 9/30/2022 | (8 | ) | 205,000 | — | ||||||||||
Amended and Restated $300 Million Unsecured 2011 Term Loan | LIBOR + 1.00% | 3.20 | % | (7) | 11/30/2021 | 300,000 | 300,000 | |||||||||||
$350 Million Unsecured Senior Notes | 3.40 | % | 3.43 | % | 6/01/2023 | 350,000 | 350,000 | |||||||||||
$400 Million Unsecured Senior Notes | 4.45 | % | 4.10 | % | 3/15/2024 | 400,000 | 400,000 | |||||||||||
$250 Million Unsecured 2018 Term Loan | LIBOR + 1.60% | 4.12 | % | (9 | ) | 3/31/2025 | 250,000 | — | ||||||||||
Discounts and unamortized debt issuance costs | (9,879) | (7,689) | ||||||||||||||||
Subtotal/Weighted Average (5) | 3.75 | % | 1,495,121 | 1,535,311 | ||||||||||||||
Total/Weighted Average (5) | 3.76 | % | $ | 1,685,472 | $ | 1,726,927 |
2019 | $ | 932 | ||
2020 | 1,072 | |||
2021 | 327,702 | |||
2022 | 365,000 | (1) | ||
2023 | 350,000 | |||
Thereafter | 650,000 | |||
Total | $ | 1,694,706 |
2021 | $ | 327,610 | |||
2022 | 5,000 | ||||
2023 | 350,000 | ||||
2024 | 400,000 | ||||
2025 | 250,000 | ||||
Thereafter | 300,000 | ||||
Total | $ | 1,632,610 |
Interest Rate Derivatives: | Number of Swap Agreements | Associated Debt Instrument | Notional Amount (in millions) | Effective Date | Maturity Date | ||||||||
Interest rate swaps | 3 | Amended and Restated $300 Million Unsecured 2011 Term Loan | $ | 300 | 11/22/2016 | 1/15/2020 | |||||||
Interest rate swaps | 2 | $250 Million Unsecured 2018 Term Loan | 100 | 3/29/2018 | 3/31/2025 | ||||||||
Interest rate swaps | 1 | $250 Million Unsecured 2018 Term Loan | 50 | 3/29/2018 | 3/29/2020 | ||||||||
Total | $ | 450 |
Interest Rate Derivatives: | Number of Swap Agreements | Associated Debt Instrument | Notional Amount (in millions) | Effective Date | Maturity Date | |||||||||||||||||||||||||||
Interest rate swaps | 2 | $250 Million Unsecured 2018 Term Loan | $ | 100 | 3/29/2018 | 3/31/2025 | ||||||||||||||||||||||||||
Interest rate swaps classified as: | December 31, 2018 | December 31, 2017 | |||||
Gross derivative assets | $ | 1,199 | $ | 688 | |||
Gross derivative liabilities | (839 | ) | (1,478 | ) | |||
Net derivative asset/(liability) | $ | 360 | $ | (790 | ) |
Interest rate swaps classified as: | December 31, 2020 | December 31, 2019 | |||||||||
Gross derivative assets | $ | 0 | $ | 0 | |||||||
Gross derivative liabilities | (9,834) | (5,121) | |||||||||
Net derivative liability | $ | (9,834) | $ | (5,121) |
Interest Rate Swaps in Cash Flow Hedging Relationships | 2018 | 2017 | 2016 | ||||||||
Amount of gain/(loss) recognized in OCI | $ | 692 | $ | 2,479 | $ | (4,126 | ) | ||||
Amount of previously recorded gain/(loss) reclassified from OCI into Interest Expense | $ | 1,558 | $ | (3,502 | ) | $ | (4,548 | ) | |||
Amount of loss recognized on derivative reclassified from OCI into Loss on Extinguishment of Debt | $ | (1,258 | ) | $ | — | $ | — | ||||
Total amount of Interest Expense presented in the consolidated statements of income | $ | (61,023 | ) | $ | (68,124 | ) | $ | (64,860 | ) | ||
Total amount of Loss on Extinguishment of Debt presented in the consolidated statements of income (1) | $ | (1,680 | ) | $ | — | $ | — |
Interest Rate Swaps in Cash Flow Hedging Relationships: | 2020 | 2019 | 2018 | ||||||||||||||
Amount of gain/(loss) recognized in OCI | $ | (26,794) | $ | (5,659) | $ | 692 | |||||||||||
Amount of previously recorded gain/(loss) reclassified from OCI into Interest Expense | $ | (1,727) | $ | 1,836 | $ | 1,558 | |||||||||||
Amount of loss recognized on derivatives reclassified from OCI into Loss on Extinguishment of Debt | $ | 0 | $ | 0 | $ | (1,258) | |||||||||||
Total amount of Interest Expense presented in the consolidated statements of income | $ | (54,990) | $ | (61,594) | $ | (61,023) | |||||||||||
Total amount of Loss on Extinguishment of Debt presented in the consolidated statements of income | $ | (9,336) | $ | 0 | $ | (1,680) |
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
Financial Instrument | Carrying Value | Estimated Fair Value | Level Within Fair Value Hierarchy | Carrying Value | Estimated Fair Value | Level Within Fair Value Hierarchy | |||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents (1) | $ | 7,331 | $ | 7,331 | Level 1 | $ | 13,545 | $ | 13,545 | Level 1 | |||||||||||||||||||||||||
Tenant receivables, net (1) | $ | 8,448 | $ | 8,448 | Level 1 | $ | 8,226 | $ | 8,226 | Level 1 | |||||||||||||||||||||||||
Notes receivable | $ | 118,500 | $ | 118,500 | Level 2 | $ | 0 | $ | 0 | Level 1 | |||||||||||||||||||||||||
Restricted cash and escrows (1) | $ | 1,883 | $ | 1,883 | Level 1 | $ | 1,841 | $ | 1,841 | Level 1 | |||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||
Accounts payable and accrued expenses (1) | $ | 45,345 | $ | 45,345 | Level 1 | $ | 50,049 | $ | 50,049 | Level 1 | |||||||||||||||||||||||||
Interest rate swaps | $ | 9,834 | $ | 9,834 | Level 2 | $ | 5,121 | $ | 5,121 | Level 2 | |||||||||||||||||||||||||
Debt, net | $ | 1,622,004 | $ | 1,690,377 | Level 2 | $ | 1,481,404 | $ | 1,536,687 | Level 2 |
December 31, 2018 | December 31, 2017 | ||||||||||||||||||
Financial Instrument | Carrying Value | Estimated Fair Value | Level Within Fair Value Hierarchy | Carrying Value | Estimated Fair Value | Level Within Fair Value Hierarchy | |||||||||||||
Assets: | |||||||||||||||||||
Cash and cash equivalents (1) | $ | 4,571 | $ | 4,571 | Level 1 | $ | 7,382 | $ | 7,382 | Level 1 | |||||||||
Tenant receivables, net (1) | $ | 10,800 | $ | 10,800 | Level 1 | $ | 12,139 | $ | 12,139 | Level 1 | |||||||||
Restricted cash and escrows (1) | $ | 1,463 | $ | 1,463 | Level 1 | $ | 1,373 | $ | 1,373 | Level 1 | |||||||||
Interest rate swaps | $ | 1,199 | $ | 1,199 | Level 2 | $ | 688 | $ | 688 | Level 2 | |||||||||
Liabilities: | |||||||||||||||||||
Accounts payable and accrued expenses (1) | $ | 47,328 | $ | 47,328 | Level 1 | $ | 126,429 | $ | 126,429 | Level 1 | |||||||||
Interest rate swaps | $ | 839 | $ | 839 | Level 2 | $ | 1,478 | $ | 1,478 | Level 2 | |||||||||
Debt, net | $ | 1,685,472 | $ | 1,698,213 | Level 2 | $ | 1,726,927 | $ | 1,759,905 | Level 2 |
Piedmont's notes receivable were carried at book value as of December 31, 2020, and were issued in conjunction with the sale of properties to an unrelated third-party buyer on October 28, 2020 (see Note 13). Piedmont has evaluated the facts and circumstances present at the time of issuance of the notes receivable as compared to those same circumstances as of December 31, 2020 and determined that the book value approximates its estimated fair value. |
2020 | 2019 | 2018 | ||||||||||||||||||
The Dupree(1) | $ | 0 | $ | 1,953 | $ | 0 | ||||||||||||||
600 Corporate Drive(2) | 0 | 7,000 | 0 | |||||||||||||||||
Total impairment loss on real estate assets | $ | 0 | $ | 8,953 | $ | 0 | ||||||||||||||
2018 | 2017 | 2016 | ||||||||||
150 West Jefferson (1) | $ | — | $ | — | $ | 8,259 | ||||||
9221 Corporate Boulevard (2) | — | — | 2,692 | |||||||||
9200 and 9211 Corporate Boulevard (3) | — | — | 22,950 | |||||||||
Disposal Group of 13 Assets (4) | — | 46,461 | — | |||||||||
Total impairment loss on real estate assets (5) | $ | — | $ | 46,461 | $ | 33,901 |
Shares | Weighted-Average Grant Date Fair Value | |||||
Unvested and Potential Stock Awards as of December 31, 2017 | 868,437 | $ | 21.69 | |||
Deferred Stock Awards Granted | 354,236 | $ | 17.84 | |||
Increase in Estimated Potential Future Performance Share Awards, net of forfeitures | 506,793 | $ | 25.20 | |||
Performance Stock Awards Vested | (161,005 | ) | $ | 18.47 | ||
Deferred Stock Awards Vested | (332,019 | ) | $ | 19.21 | ||
Deferred Stock Awards Forfeited | (8,959 | ) | $ | 19.77 | ||
Unvested and Potential Stock Awards as of December 31, 2018 | 1,227,483 | $ | 23.14 |
Shares | Weighted-Average Grant Date Fair Value | ||||||||||
Unvested and Potential Stock Awards as of December 31, 2019 | 1,045,020 | $ | 25.15 | ||||||||
Deferred Stock Awards Granted | 242,586 | $ | 22.39 | ||||||||
Increase in Estimated Potential Share Awards based on TSR Performance | 111,545 | $ | 26.97 | ||||||||
Performance Stock Awards Vested | (153,368) | $ | 30.45 | ||||||||
Deferred Stock Awards Vested | (229,274) | $ | 21.05 | ||||||||
Deferred Stock Awards Forfeited | (6,979) | $ | 21.82 | ||||||||
Unvested and Potential Stock Awards as of December 31, 2020 | 1,009,530 | $ | 24.37 |
2020 | 2019 | 2018 | |||||||||||||||
Weighted-Average Grant Date Fair Value of Deferred Stock Granted During the Period | $ | 22.39 | $ | 21.02 | $ | 17.84 | |||||||||||
Total Grant Date Fair Value of Deferred Stock Vested During the Period | $ | 4,826 | $ | 8,658 | $ | 6,378 | |||||||||||
Share-based Liability Awards Paid During the Period (1) | $ | 4,116 | $ | 6,683 | $ | 2,947 |
2018 | 2017 | 2016 | |||||||||
Weighted-Average Grant Date Fair Value of Deferred Stock Granted During the Period (per share) | $ | 17.84 | $ | 21.38 | $ | 19.96 | |||||
Total Grant Date Fair Value of Deferred Stock Vested During the Period | $ | 6,378 | $ | 5,899 | $ | 4,806 | |||||
Share-based Liability Awards Paid During the Period (1) | $ | 2,947 | $ | 2,877 | $ | 1,127 |
Date of grant | Type of Award | Net Shares Granted (1) | Grant Date Fair Value | Vesting Schedule | Unvested and Potential Shares as of December 31, 2020 | ||||||||||||||||||||||||||||||
May 17, 2018 | Deferred Stock Award | 250,627 | $ | 17.84 | Of the shares granted, 25% vested on the date of grant, and 25% vested or will vest on May 17, 2019, 2020, and 2021, respectively. | 52,740 | |||||||||||||||||||||||||||||
May 17, 2018 | Fiscal Year 2018-2020 Performance Share Program | 0 | $ | 23.52 | Shares awarded, if any, will vest immediately upon determination of award in 2021. | 200,674 | (2) | ||||||||||||||||||||||||||||
May 3, 2019 | Deferred Stock Award | 274,904 | $ | 21.04 | Of the shares granted, 25% vested on the date of grant, and 25% vested or will vest on May 3, 2020, 2021, and 2022, respectively. | 133,900 | |||||||||||||||||||||||||||||
May 3, 2019 | Fiscal Year 2019-2021 Performance Share Program | 0 | $ | 29.43 | Shares awarded, if any, will vest immediately upon determination of award in 2022. | 224,900 | (2) | ||||||||||||||||||||||||||||
February 19, 2020 | Deferred Stock Award | 178,181 | $ | 24.41 | Of the shares granted, 25% vested on the date of grant, and 25% vested or will vest on February 19, 2021, 2022, and 2023, respectively. | 143,605 | |||||||||||||||||||||||||||||
March 19, 2020 | Fiscal Year 2020-2022 Performance Share Program | 0 | $ | 25.83 | Shares awarded, if any, will vest immediately upon determination of award in 2023. | 207,931 | (2) | ||||||||||||||||||||||||||||
May 13, 2020 | Deferred Stock Award-Board of Directors | 45,780 | $ | 13.76 | Of the shares granted, 100% will vest by May 13, 2021. | 45,780 | |||||||||||||||||||||||||||||
Total | 1,009,530 |
Date of grant | Type of Award | Net Shares Granted (1) | Grant Date Fair Value | Vesting Schedule | Unvested and Potential Shares as of December 31, 2018 | ||||||||||
January 3, 2014 | Deferred Stock Award | 72,969 | $ | 16.45 | Of the shares granted, 20% vested or will vest on January 3, 2015, 2016, 2017, 2018, and 2019, respectively. | 16,416 | |||||||||
May 24, 2016 | Deferred Stock Award | 208,003 | $ | 19.91 | Of the shares granted, 25% vested on the date of grant, and 25% of the shares vest on May 24, 2017, 2018, and 2019, respectively. | 60,487 | |||||||||
May 24, 2016 | Fiscal Year 2016-2018 Performance Share Program | — | $ | 23.02 | Shares awarded, if any, will vest immediately upon determination of award in 2019. | 139,127 | (2) | ||||||||
May 18, 2017 | Deferred Stock Award | 219,863 | $ | 21.38 | Of the shares granted, 25% vested on the date of grant, and 25% vested or will vest on May 18, 2018, 2019, and 2020, respectively. | 123,343 | |||||||||
May 18, 2017 | Fiscal Year 2017-2019 Performance Share Program | — | $ | 30.45 | Shares awarded, if any, will vest immediately upon determination of award in 2020. | 251,123 | (2) | ||||||||
May 17, 2018 | Deferred Stock Award-Board of Directors | 31,388 | $ | 17.84 | Of the shares granted, 100% will vest by May 17, 2019. | 31,388 | |||||||||
May 17, 2018 | Deferred Stock Award | 302,706 | $ | 17.84 | Of the shares granted, 25% vested on the date of grant, and 25% vested or will vest on May 17, 2019, 2020, and 2021, respectively. | 239,567 | |||||||||
May 17, 2018 | Fiscal Year 2018-2020 Performance Share Program | — | $ | 23.52 | Shares awarded, if any, will vest immediately upon determination of award in 2021. | 366,032 | (2) | ||||||||
Total | 1,227,483 |
2018 | 2017 | 2016 | ||||||
Weighted-average common shares—basic | 130,161 | 145,044 | 145,230 | |||||
Plus: Incremental weighted-average shares from time-vested deferred and performance stock awards | 475 | 336 | 405 | |||||
Weighted-average common shares—diluted | 130,636 | 145,380 | 145,635 | |||||
Common stock issued and outstanding as of period end | 126,219 | 142,359 | 145,235 |
2020 | 2019 | 2018 | |||||||||||||||
Weighted-average common shares—basic | 125,730 | 125,709 | 130,161 | ||||||||||||||
Plus: Incremental weighted-average shares from time-vested deferred and performance stock awards | 374 | 473 | 475 | ||||||||||||||
Weighted-average common shares—diluted | 126,104 | 126,182 | 130,636 | ||||||||||||||
Years ending December 31: | ||||
2019 | $ | 370,495 | ||
2020 | 352,541 | |||
2021 | 337,951 | |||
2022 | 324,960 | |||
2023 | 291,603 | |||
Thereafter | 1,247,649 | |||
Total | $ | 2,925,199 |
Years ending December 31: | ||||||||||||||
2021 | $ | 378,807 | ||||||||||||
2022 | 367,261 | |||||||||||||
2023 | 331,195 | |||||||||||||
2024 | 290,377 | |||||||||||||
2025 | 244,376 | |||||||||||||
Thereafter | 1,134,705 | |||||||||||||
Total | $ | 2,746,721 |
2020 | 2019 | 2018 | ||||||||||||||||||
Fixed payments | $ | 433,841 | $ | 418,245 | $ | 411,667 | ||||||||||||||
Variable payments | 86,112 | 93,660 | 92,743 | |||||||||||||||||
Total Rental and Tenant Reimbursement Revenue | $ | 519,953 | $ | 511,905 | $ | 504,410 |
Buildings Sold | Location | Date of Sale | Gain/(Loss) on Sale of Real Estate Assets | Net Sales Proceeds | |||||||||
1055 East Colorado Boulevard | Pasadena, California | April 21, 2016 | $ | 29,462 | $ | 60,076 | |||||||
Fairway Center II | Brea, California | April 28, 2016 | $ | 14,406 | $ | 33,062 | |||||||
1901 Main Street | Irvine, California | May 2, 2016 | $ | 29,964 | $ | 63,149 | (1) | ||||||
9221 Corporate Boulevard | Rockville, Maryland | July 27, 2016 | $ | (192 | ) | (2) | $ | 12,035 | |||||
150 West Jefferson | Detroit, Michigan | July 29, 2016 | $ | (664 | ) | (2) | $ | 77,844 | |||||
9200 and 9211 Corporate Boulevard | Rockville, Maryland | September 28, 2016 | $ | (41 | ) | (2) | $ | 12,519 | |||||
11695 Johns Creek Parkway | Johns Creek, Georgia | December 22, 2016 | $ | 1,978 | $ | 13,827 | |||||||
Braker Pointe III | Austin, Texas | December 29, 2016 | $ | 18,579 | $ | 48,006 | |||||||
Sarasota Commerce Center II | Sarasota, Florida | June 16, 2017 | $ | 6,493 | $ | 23,090 | |||||||
Two Independence Square | Washington, D.C. | July 5, 2017 | $ | 109,381 | $ | 352,428 | |||||||
8560 Upland Drive | Denver, Colorado | July 27, 2017 | $ | 3,683 | $ | 12,334 | (3) | ||||||
2017 Disposition Portfolio(4) | Various(4) | January 4, 2018 | $ | 45,275 | $ | 419,644 | (5) | ||||||
800 North Brand Boulevard | Glendale, California | November 29, 2018 | $ | 30,416 | $ | 155,583 |
Buildings Sold | Location | Date of Sale | Gain on Sale of Real Estate Assets | Net Sales Proceeds | |||||||||||||||||||||||||
2017 Disposition Portfolio | Various(1) | January 4, 2018 | $ | 45,275 | $ | 419,644 | (2) | ||||||||||||||||||||||
800 North Brand Boulevard | Glendale, California | November 29, 2018 | $ | 30,416 | $ | 155,583 | |||||||||||||||||||||||
One Independence Square | Washington, D.C. | February 28, 2019 | $ | 33,176 | $ | 163,623 | |||||||||||||||||||||||
The Dupree | Atlanta, Georgia | September 4, 2019 | $ | 0 | (3) | $ | 12,631 | ||||||||||||||||||||||
500 West Monroe Street | Chicago, Illinois | October 28, 2019 | $ | 157,739 | $ | 408,851 | |||||||||||||||||||||||
1901 Market Street | Philadelphia, Pennsylvania | June 25, 2020 | $ | 191,030 | $ | 350,805 | |||||||||||||||||||||||
New Jersey Portfolio | Various(4) | October 28, 2020 | $ | 14,636 | $ | 9,289 | (5) |
(1)The 2017 Disposition Portfolio is comprised of the following properties: Desert Canyon 300 in Phoenix, Arizona; Windy Point I & II in Schaumburg, Illinois; 2300 Cabot Drive in Lisle, Illinois; 1075 West Entrance Drive in Auburn Hills, Michigan; Auburn Hills Corporate Center in Auburn Hills, Michigan; 5301 Maryland Way in Brentwood, Tennessee; Suwanee Gateway One in Suwanee, Georgia; 5601 Hiatus Road in Tamarac, Florida; Piedmont Pointe I & II in Bethesda, Maryland; 1200 Crown Colony Drive in Quincy, Massachusetts; 2001 N.W. 64th Street in Fort Lauderdale, Florida, and 2120 West End Avenue in Nashville, Tennessee. (2)Piedmont accepted a secured $3.2 million promissory note from the buyer for a portion of the sales price, which was subsequently paid in full by the borrower. (3)As discussed in Note 7 above, Piedmont recognized an impairment loss prior to the sale of the property. (4)The New Jersey Portfolio is comprised of the following three properties: 200 Bridgewater Crossing in Bridgewater, New Jersey; 400 Bridgewater Crossing in Bridgewater, New Jersey; and 600 Corporate Drive in Lebanon, New Jersey. (5)Piedmont accepted a secured $102.8 million promissory note from the buyer, which matures on October 31, 2023 and bears interest at 6% per annum. The note may not be prepaid without penalty until January 2022, and may be extended for 3 available one-year periods upon payment of applicable extension fees. Further, Piedmont also accepted a mezzanine note for $15.7 million, bearing interest at 13.55% per annum, which may be repaid any time before the October 31, 2023 maturity without penalty. |
December 31, 2018 | December 31, 2017 | |||||||
Real estate assets held for sale, net: | ||||||||
Land | $ | 30,562 | $ | 128,668 | ||||
Building and improvements, less accumulated depreciation of $48,453 and $270,552 as of December 31, 2018, and 2017, respectively | 77,936 | 430,136 | ||||||
Construction in progress | 2,054 | 2,645 | ||||||
Total real estate assets held for sale, net | $ | 110,552 | $ | 561,449 | ||||
Other assets held for sale, net: | ||||||||
Straight-line rent receivables | $ | 10,756 | $ | 44,666 | ||||
Prepaid expenses and other assets | 430 | 2,067 | ||||||
Deferred lease costs, less accumulated amortization of $2,446 and $20,169 as of December 31, 2018 and 2017, respectively | 9,605 | 37,560 | ||||||
Total other assets held for sale, net | $ | 20,791 | $ | 84,293 | ||||
Other liabilities held for sale, net: | ||||||||
Intangible lease liabilities, less accumulated amortization of $0 and $935 as of December 31, 2018 and 2017, respectively | $ | — | $ | 380 |
December 31, 2020 | December 31, 2019 | |||||||||||||
Real estate assets held for sale, net: | ||||||||||||||
Land | $ | 0 | $ | 20,829 | ||||||||||
Building and improvements, less accumulated depreciation of $0 and $66,823 as of December 31, 2020, and 2019, respectively | 0 | 112,287 | ||||||||||||
Intangible lease assets, less accumulated amortization of $0 and $27,438 as of December 31, 2020 and 2019, respectively | 0 | 6,574 | ||||||||||||
Total real estate assets held for sale, net | $ | 0 | $ | 139,690 | ||||||||||
Other assets held for sale, net: | ||||||||||||||
Straight-line rent receivables | $ | 0 | $ | 18,776 | ||||||||||
Deferred lease costs, less accumulated amortization of $0 and $34,957 as of December 31, 2020 and 2019, respectively | 0 | 9,425 | ||||||||||||
Total other assets held for sale, net | $ | 0 | $ | 28,201 | ||||||||||
Other liabilities held for sale, net: | ||||||||||||||
Intangible lease liabilities, less accumulated amortization of $0 and $31,959 as of December 31, 2020 and 2019, respectively | $ | 0 | $ | 7,657 |
2020 | 2019 | 2018 | |||||||||||||||
Accrued capital expenditures and deferred lease costs | $ | 20,103 | $ | 38,366 | $ | 10,854 | |||||||||||
Change in accrued dividends and discount on dividend reinvestments | $ | (744) | $ | (545) | $ | (74,828) | |||||||||||
Change in accrued share repurchases as part of an announced plan | $ | 685 | $ | (4,417) | $ | 3,140 | |||||||||||
Notes receivable issued in conjunction with property dispositions | $ | 118,500 | $ | 0 | $ | 0 | |||||||||||
2018 | 2017 | 2016 | |||||||||
Accrued capital expenditures and deferred lease costs | $ | 10,854 | $ | 11,276 | $ | 14,427 | |||||
Change in accrued dividends and discount on dividend reinvestments | $ | (74,828 | ) | $ | 71,267 | $ | 30,532 | ||||
Change in accrued share repurchases as part of an announced plan | $ | 3,140 | $ | 1,276 | $ | — | |||||
Investment in consolidated joint venture | $ | — | $ | 63,026 | $ | — |
2020 | 2019 | 2018 | ||||||||||||||||||
Cash and cash equivalents, beginning of period | $ | 13,545 | $ | 4,571 | $ | 7,382 | ||||||||||||||
Restricted cash and escrows, beginning of period | 1,841 | 1,463 | 1,373 | |||||||||||||||||
Total cash, cash equivalents, and restricted cash and escrows shown in the consolidated statement of cash flows, beginning of period | $ | 15,386 | $ | 6,034 | $ | 8,755 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 7,331 | $ | 13,545 | $ | 4,571 | ||||||||||||||
Restricted cash and escrows, end of period | 1,883 | 1,841 | 1,463 | |||||||||||||||||
Total cash, cash equivalents, and restricted cash and escrows shown in the consolidated statement of cash flows, end of period | $ | 9,214 | $ | 15,386 | $ | 6,034 |
2018 | 2017 | 2016 | ||||||||||
Cash and cash equivalents, beginning of period | $ | 7,382 | $ | 6,992 | $ | 5,441 | ||||||
Restricted cash and escrows, beginning of period | 1,373 | 1,212 | 5,174 | |||||||||
Total cash, cash equivalents, and restricted cash and escrows shown in the consolidated statement of cash flows, beginning of period | $ | 8,755 | $ | 8,204 | $ | 10,615 | ||||||
Cash and cash equivalents, end of period | $ | 4,571 | $ | 7,382 | $ | 6,992 | ||||||
Restricted cash and escrows, end of period | 1,463 | 1,373 | 1,212 | |||||||||
Total cash, cash equivalents, and restricted cash and escrows shown in the consolidated statement of cash flows, end of period | $ | 6,034 | $ | 8,755 | $ | 8,204 |
2018 | 2017 | 2016 | |||||||||
GAAP basis financial statement net income | $ | 130,296 | $ | 133,564 | $ | 99,732 | |||||
Increase/(decrease) in net income resulting from: | |||||||||||
Depreciation and amortization expense recognized for financial reporting purposes in excess of amounts recognized for income tax purposes | 54,420 | 62,916 | 69,214 | ||||||||
Rental income accrued for income tax purposes less than amounts for financial reporting purposes | (9,681 | ) | (25,432 | ) | (18,964 | ) | |||||
Net amortization of above/below-market lease intangibles for income tax purposes in excess of amounts for financial reporting purposes | (7,453 | ) | (6,041 | ) | (4,895 | ) | |||||
Gain on disposal of property for financial reporting purposes less than/(in excess of) amounts for income tax purposes | (36,241 | ) | 10,068 | (118,713 | ) | ||||||
Taxable income or loss of Piedmont Washington Properties, Inc., in excess of/(less than) amount for financial reporting purposes | (2,089 | ) | 176 | (1,042 | ) | ||||||
Other expenses, including impairment loss on real estate assets, for financial reporting purposes in excess of/ (less than) amounts for income tax purposes | (37,394 | ) | 49,859 | 42,019 | |||||||
Taxable income for POH in excess of/(less than) amount for financial reporting purposes | (64 | ) | (28 | ) | 648 | ||||||
Income tax basis net income, prior to dividends paid deduction | $ | 91,794 | $ | 225,082 | $ | 67,999 |
2020 | 2019 | 2018 | |||||||||||||||
GAAP basis financial statement net income | $ | 232,688 | $ | 229,261 | $ | 130,296 | |||||||||||
Increase/(decrease) in net income resulting from: | |||||||||||||||||
Depreciation and amortization expense recognized for financial reporting purposes in excess of amounts recognized for income tax purposes | 73,784 | 10,381 | 54,420 | ||||||||||||||
Rental income accrued for income tax purposes less than amounts for financial reporting purposes | (25,726) | (34,804) | (9,681) | ||||||||||||||
Net amortization of above/below-market lease intangibles for income tax purposes in excess of amounts for financial reporting purposes | (11,625) | (7,698) | (7,453) | ||||||||||||||
Gain on disposal of property for financial reporting purposes less than/(in excess of) amounts for income tax purposes | (222,037) | (85,463) | (36,241) | ||||||||||||||
Taxable income or loss of Piedmont Washington Properties, Inc., in excess of/(less than) amount for financial reporting purposes | 1,345 | 411 | (2,089) | ||||||||||||||
Other expenses, including impairment loss on real estate assets, for financial reporting purposes in excess of/ (less than) amounts for income tax purposes | 10,970 | 23,127 | (37,394) | ||||||||||||||
Taxable income for POH in excess of/(less than) amount for financial reporting purposes | 1,499 | 175 | (64) | ||||||||||||||
Income tax basis net income, prior to dividends paid deduction | $ | 60,898 | $ | 135,390 | $ | 91,794 |
2018 | 2017 | 2016 | ||||||
Ordinary income | 100.00 | % | 53.61 | % | 81.77 | % | ||
Return of capital | — | % | — | % | 18.23 | % | ||
Capital gains | — | % | 46.39 | % | — | % | ||
100 | % | 100 | % | 100 | % |
2020 | 2019 | 2018 | |||||||||||||||
Ordinary income | 91.91 | % | 29.82 | % | 100.00 | % | |||||||||||
Return of capital | 8.09 | % | 0 | % | 0 | % | |||||||||||
Capital gains | 0 | % | 70.18 | % | 0 | % | |||||||||||
100 | % | 100 | % | 100 | % |
2020 | |||||||||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||||||||
Revenues | $ | 137,171 | $ | 134,631 | $ | 131,693 | $ | 131,529 | |||||||||||||||
Gain/(loss) on sale of real estate assets | $ | 3 | $ | 191,369 | $ | (340) | $ | 14,634 | |||||||||||||||
Net income | $ | 8,711 | $ | 192,426 | $ | 8,940 | $ | 22,608 | |||||||||||||||
Net income applicable to Piedmont | $ | 8,709 | $ | 192,427 | $ | 8,943 | $ | 22,609 | |||||||||||||||
Basic earnings per share | $ | 0.07 | $ | 1.53 | $ | 0.07 | $ | 0.18 | |||||||||||||||
Diluted earnings per share | $ | 0.07 | $ | 1.52 | $ | 0.07 | $ | 0.18 | |||||||||||||||
Dividends declared per share | $ | 0.21 | $ | 0.21 | $ | 0.21 | $ | 0.21 |
2018 | |||||||||||||||
First | Second | Third | Fourth | ||||||||||||
Revenues | $ | 129,900 | $ | 129,174 | $ | 129,708 | $ | 137,185 | |||||||
Gain/(loss) on sale of real estate assets | $ | 45,209 | $ | (23 | ) | $ | — | $ | 30,505 | ||||||
Net income | $ | 57,828 | $ | 10,940 | $ | 16,114 | $ | 45,409 | |||||||
Net income applicable to Piedmont | $ | 57,830 | $ | 10,942 | $ | 16,114 | $ | 45,410 | |||||||
Basic earnings per share | $ | 0.43 | $ | 0.09 | $ | 0.13 | $ | 0.35 | |||||||
Diluted earnings per share | $ | 0.42 | $ | 0.09 | $ | 0.13 | $ | 0.35 | |||||||
Dividends declared per share | $ | 0.21 | $ | 0.21 | $ | 0.21 | $ | 0.21 |
2017 | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Revenues | $ | 148,463 | $ | 148,679 | $ | 137,587 | $ | 139,444 | ||||||||
Gain/(loss) on sale of real estate assets | $ | (53 | ) | $ | 6,492 | $ | 109,512 | $ | (77 | ) | ||||||
Net income/(loss) | $ | 15,101 | $ | 23,707 | $ | 126,129 | $ | (31,388 | ) | |||||||
Net income/(loss) applicable to Piedmont | $ | 15,104 | $ | 23,710 | $ | 126,133 | $ | (31,383 | ) | |||||||
Basic and diluted earnings/(loss) per share | $ | 0.10 | $ | 0.16 | $ | 0.87 | $ | (0.21 | ) | |||||||
Dividends declared per share | $ | 0.21 | $ | 0.21 | $ | 0.21 | $ | 0.71 | (1) |
2019 | |||||||||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||||||||
Revenues | $ | 132,936 | $ | 130,668 | $ | 135,421 | $ | 134,153 | |||||||||||||||
Gain on sale of real estate assets | $ | 37,887 | $ | 1,451 | $ | 32 | $ | 157,640 | |||||||||||||||
Net income | $ | 50,209 | $ | 8,152 | $ | 8,419 | $ | 162,476 | |||||||||||||||
Net income applicable to Piedmont | $ | 50,208 | $ | 8,153 | $ | 8,422 | $ | 162,478 | |||||||||||||||
Basic and diluted earnings per share | $ | 0.40 | $ | 0.06 | $ | 0.07 | $ | 1.29 | |||||||||||||||
Dividends declared per share | $ | 0.21 | $ | 0.21 | $ | 0.21 | $ | 0.21 |
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Dallas | $ | 101,727 | $ | 55,346 | $ | 54,382 | |||||||||||
Atlanta | 95,403 | 75,699 | 62,282 | ||||||||||||||
Washington, D.C. | 59,760 | 64,481 | 68,404 | ||||||||||||||
Minneapolis | 61,465 | 64,318 | 57,711 | ||||||||||||||
Boston | 61,338 | 64,739 | 54,648 | ||||||||||||||
Orlando | 54,886 | 57,084 | 55,440 | ||||||||||||||
New York | 69,827 | 75,587 | 71,733 | ||||||||||||||
Total reportable segments | 504,406 | 457,254 | 424,600 | ||||||||||||||
Corporate and other | 30,618 | 75,924 | 101,367 | ||||||||||||||
Total Revenues | $ | 535,024 | $ | 533,178 | $ | 525,967 |
Condensed Consolidated Balance Sheets | |||||||||||||||||||
As of December 31, 2018 | |||||||||||||||||||
(in thousands) | Piedmont (Parent) (Guarantor) | Piedmont OP (the Issuer) | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Assets: | |||||||||||||||||||
Real estate assets, at cost: | |||||||||||||||||||
Land | $ | — | $ | 36,094 | $ | 471,328 | $ | — | $ | 507,422 | |||||||||
Buildings and improvements, less accumulated depreciation | — | 176,927 | 2,128,469 | (300 | ) | 2,305,096 | |||||||||||||
Intangible lease assets, less accumulated amortization | — | — | 77,676 | — | 77,676 | ||||||||||||||
Construction in progress | — | 5,708 | 10,140 | — | 15,848 | ||||||||||||||
Real estate assets held for sale, net | — | — | 110,552 | — | 110,552 | ||||||||||||||
Total real estate assets | — | 218,729 | 2,798,165 | (300 | ) | 3,016,594 | |||||||||||||
Cash and cash equivalents | 150 | — | 4,939 | (518 | ) | 4,571 | |||||||||||||
Tenant and straight-line receivables, net | — | 16,143 | 157,246 | — | 173,389 | ||||||||||||||
Investment in subsidiaries | 1,744,122 | 2,704,337 | 166 | (4,448,625 | ) | — | |||||||||||||
Notes receivable | — | 810 | 144,500 | (145,310 | ) | — | |||||||||||||
Prepaid expenses, restricted cash, escrows, interest rate swaps, and other assets | 42 | 5,682 | 22,318 | (24 | ) | 28,018 | |||||||||||||
Goodwill | — | 98,918 | — | — | 98,918 | ||||||||||||||
Deferred lease costs, net | — | 15,158 | 234,990 | — | 250,148 | ||||||||||||||
Other assets held for sale, net | — | — | 20,791 | — | 20,791 | ||||||||||||||
Total assets | $ | 1,744,314 | $ | 3,059,777 | $ | 3,383,115 | $ | (4,594,777 | ) | $ | 3,592,429 | ||||||||
Liabilities: | |||||||||||||||||||
Debt, net | $ | — | $ | 1,495,904 | $ | 335,717 | $ | (145,310 | ) | $ | 1,686,311 | ||||||||
Accounts payable, accrued expenses, dividends payable, interest rate swaps and accrued capital expenditures | 32,174 | 14,543 | 83,316 | (542 | ) | 129,491 | |||||||||||||
Deferred income | — | 2,274 | 26,505 | — | 28,779 | ||||||||||||||
Intangible lease liabilities, net | — | — | 35,708 | — | 35,708 | ||||||||||||||
Total liabilities | 32,174 | 1,512,721 | 481,246 | (145,852 | ) | 1,880,289 | |||||||||||||
Equity: | |||||||||||||||||||
Total stockholders’ equity | 1,712,140 | 1,547,056 | 2,901,869 | (4,448,925 | ) | 1,712,140 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 1,744,314 | $ | 3,059,777 | $ | 3,383,115 | $ | (4,594,777 | ) | $ | 3,592,429 |
Condensed Consolidated Balance Sheets | |||||||||||||||||||
As of December 31, 2017 | |||||||||||||||||||
(in thousands) | Piedmont (Parent) (Guarantor) | Piedmont OP (the Issuer) | Non-Guarantors | Eliminations | Piedmont (Consolidated) | ||||||||||||||
Assets: | |||||||||||||||||||
Real estate assets, at cost: | |||||||||||||||||||
Land | $ | — | $ | 36,094 | $ | 454,531 | $ | — | $ | 490,625 | |||||||||
Buildings and improvements, less accumulated depreciation | — | 180,886 | 2,062,933 | (300 | ) | 2,243,519 | |||||||||||||
Intangible lease assets, less accumulated amortization | — | 181 | 77,624 | — | 77,805 | ||||||||||||||
Construction in progress | — | 85 | 11,259 | — | 11,344 | ||||||||||||||
Real estate assets held for sale, net | — | 32,815 | 528,634 | — | 561,449 | ||||||||||||||
Total real estate assets | — | 250,061 | 3,134,981 | (300 | ) | 3,384,742 | |||||||||||||
Cash and cash equivalents | 150 | 3,890 | 3,342 | — | 7,382 | ||||||||||||||
Tenant and straight-line rent receivables, net, and amounts from unconsolidated joint ventures | — | 16,891 | 139,727 | — | 156,618 | ||||||||||||||
Advances to affiliates | 1,674,276 | 6,297,632 | — | (7,971,908 | ) | — | |||||||||||||
Investment in subsidiary | 3,437,299 | — | 172 | (3,437,471 | ) | — | |||||||||||||
Notes receivable | — | 88,810 | 144,500 | (233,310 | ) | — | |||||||||||||
Prepaid expenses, restricted cash, escrows, interest swaps and other assets | 2 | 5,094 | 18,483 | (740 | ) | 22,839 | |||||||||||||
Goodwill | — | 98,918 | — | — | 98,918 | ||||||||||||||
Deferred lease costs, net | — | 16,611 | 228,564 | — | 245,175 | ||||||||||||||
Other assets held for sale, net | — | 2,266 | 82,027 | — | 84,293 | ||||||||||||||
Total assets | $ | 5,111,727 | $ | 6,780,173 | $ | 3,751,796 | $ | (11,643,729 | ) | $ | 3,999,967 | ||||||||
Liabilities: | |||||||||||||||||||
Debt, net | $ | — | $ | 1,535,239 | $ | 424,998 | $ | (233,310 | ) | $ | 1,726,927 | ||||||||
Accounts payable, accrued expenses, dividends payable, and accrued capital expenditures | 104,028 | 20,279 | 93,086 | (740 | ) | 216,653 | |||||||||||||
Advances from affiliates | 5,277,957 | 941,494 | 1,850,712 | (8,070,163 | ) | — | |||||||||||||
Deferred income | — | 3,631 | 25,951 | — | 29,582 | ||||||||||||||
Intangible lease liabilities, net | — | — | 38,458 | — | 38,458 | ||||||||||||||
Interest rate swaps | — | 1,478 | — | — | 1,478 | ||||||||||||||
Liabilities held for sale, net | — | — | 380 | — | 380 | ||||||||||||||
Total liabilities | 5,381,985 | 2,502,121 | 2,433,585 | (8,304,213 | ) | 2,013,478 | |||||||||||||
Equity: | |||||||||||||||||||
Total stockholders’ equity | (270,258 | ) | 4,278,052 | 1,318,211 | (3,339,516 | ) | 1,986,489 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 5,111,727 | $ | 6,780,173 | $ | 3,751,796 | $ | (11,643,729 | ) | $ | 3,999,967 |
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Dallas | $ | 59,845 | $ | 29,438 | $ | 29,286 | |||||||||||
Atlanta | 60,276 | 47,287 | 38,660 | ||||||||||||||
Washington, D.C. | 36,696 | 41,167 | 41,565 | ||||||||||||||
Minneapolis | 33,588 | 35,610 | 30,402 | ||||||||||||||
Boston | 41,722 | 44,016 | 37,887 | ||||||||||||||
Orlando | 34,427 | 35,433 | 35,067 | ||||||||||||||
New York | 38,990 | 44,036 | 40,622 | ||||||||||||||
Total reportable segments | 305,544 | 276,987 | 253,489 | ||||||||||||||
Corporate and other | 13,915 | 43,637 | 63,649 | ||||||||||||||
Total NOI | $ | 319,459 | $ | 320,624 | $ | 317,138 |
Condensed Consolidated Statements of Income | |||||||||||||||||||
For the year ended December 31, 2018 | |||||||||||||||||||
(in thousands) | Piedmont (Parent) (Guarantor) | Piedmont OP (the Issuer) | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||
Revenues: | |||||||||||||||||||
Rental income | $ | — | $ | 35,221 | $ | 378,473 | $ | (2,027 | ) | $ | 411,667 | ||||||||
Tenant reimbursements | — | 9,489 | 83,700 | (446 | ) | 92,743 | |||||||||||||
Property management fee revenue | — | — | 17,118 | (15,668 | ) | 1,450 | |||||||||||||
Other property related income | — | 130 | 19,977 | — | 20,107 | ||||||||||||||
— | 44,840 | 499,268 | (18,141 | ) | 525,967 | ||||||||||||||
Expenses: | |||||||||||||||||||
Property operating costs | — | 19,583 | 207,896 | (18,141 | ) | 209,338 | |||||||||||||
Depreciation | — | 11,514 | 96,442 | — | 107,956 | ||||||||||||||
Amortization | — | 1,990 | 61,305 | — | 63,295 | ||||||||||||||
Impairment loss on real estate assets | — | — | — | — | — | ||||||||||||||
General and administrative | 289 | 6,576 | 22,848 | — | 29,713 | ||||||||||||||
289 | 39,663 | 388,491 | (18,141 | ) | 410,302 | ||||||||||||||
(289 | ) | 5,177 | 110,777 | — | 115,665 | ||||||||||||||
Other income (expense): | |||||||||||||||||||
Interest expense | — | (54,095 | ) | (14,558 | ) | 7,630 | (61,023 | ) | |||||||||||
Other income/(expense) | — | 144 | 9,124 | (7,630 | ) | 1,638 | |||||||||||||
Loss on extinguishment of debt | — | (1,680 | ) | — | — | (1,680 | ) | ||||||||||||
Gain on sale of real estate assets | — | 1,417 | 74,274 | — | 75,691 | ||||||||||||||
— | (54,214 | ) | 68,840 | — | 14,626 | ||||||||||||||
Income/(loss) before consolidated subsidiaries | (289 | ) | (49,037 | ) | 179,617 | — | 130,291 | ||||||||||||
Income from subsidiaries | 130,585 | 178,648 | — | (309,233 | ) | — | |||||||||||||
Net income | 130,296 | 129,611 | 179,617 | (309,233 | ) | 130,291 | |||||||||||||
Net loss applicable to noncontrolling interest | — | — | 5 | — | 5 | ||||||||||||||
Net income applicable to Piedmont | $ | 130,296 | $ | 129,611 | $ | 179,622 | $ | (309,233 | ) | $ | 130,296 |
Condensed Consolidated Statements of Income | |||||||||||||||||||
For the year ended December 31, 2017 | |||||||||||||||||||
(in thousands) | Piedmont (Parent) (Guarantor) | Piedmont OP (the Issuer) | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||
Revenues: | |||||||||||||||||||
Rental income | $ | — | $ | 42,407 | $ | 414,509 | $ | (1,791 | ) | $ | 455,125 | ||||||||
Tenant reimbursements | — | 11,702 | 86,911 | (474 | ) | 98,139 | |||||||||||||
Property management fee revenue | — | — | 18,205 | (16,470 | ) | 1,735 | |||||||||||||
Other property related income | — | 144 | 19,030 | — | 19,174 | ||||||||||||||
— | 54,253 | 538,655 | (18,735 | ) | 574,173 | ||||||||||||||
Expenses: | |||||||||||||||||||
Property operating costs | — | 22,805 | 218,371 | (18,735 | ) | 222,441 | |||||||||||||
Depreciation | — | 12,995 | 106,293 | — | 119,288 | ||||||||||||||
Amortization | — | 3,049 | 72,318 | — | 75,367 | ||||||||||||||
Impairment loss on real estate assets | — | 87 | 46,374 | — | 46,461 | ||||||||||||||
General and administrative | 347 | 6,443 | 22,529 | — | 29,319 | ||||||||||||||
347 | 45,379 | 465,885 | (18,735 | ) | 492,876 | ||||||||||||||
(347 | ) | 8,874 | 72,770 | — | 81,297 | ||||||||||||||
Other income (expense): | |||||||||||||||||||
Interest expense | — | (56,769 | ) | (26,715 | ) | 15,360 | (68,124 | ) | |||||||||||
Other income/(expense) | — | 9,168 | 6,849 | (15,360 | ) | 657 | |||||||||||||
Equity in income of unconsolidated joint ventures | — | 3,845 | — | — | 3,845 | ||||||||||||||
Gain on sale of real estate assets, net | — | 6,431 | 109,443 | — | 115,874 | ||||||||||||||
— | (37,325 | ) | 89,577 | — | 52,252 | ||||||||||||||
Net income/(loss) | (347 | ) | (28,451 | ) | 162,347 | — | 133,549 | ||||||||||||
Net loss applicable to noncontrolling interest | — | — | 15 | — | 15 | ||||||||||||||
Net income/(loss) applicable to Piedmont | $ | (347 | ) | $ | (28,451 | ) | $ | 162,362 | $ | — | $ | 133,564 |
Condensed Consolidated Statements of Income | |||||||||||||||||||
For the year ended December 31, 2016 | |||||||||||||||||||
(in thousands) | Piedmont (Parent) (Guarantor) | Piedmont OP (the Issuer) | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||
Revenues: | |||||||||||||||||||
Rental income | $ | — | $ | 53,527 | $ | 389,022 | $ | (2,631 | ) | $ | 439,918 | ||||||||
Tenant reimbursements | — | 14,295 | 81,104 | (498 | ) | 94,901 | |||||||||||||
Property management fee revenue | — | — | 16,947 | (15,033 | ) | 1,914 | |||||||||||||
Other property related income | — | 1,266 | 17,716 | — | 18,982 | ||||||||||||||
— | 69,088 | 504,789 | (18,162 | ) | 555,715 | ||||||||||||||
Expenses: | |||||||||||||||||||
Property operating costs | — | 33,829 | 205,344 | (18,377 | ) | 220,796 | |||||||||||||
Depreciation | — | 16,657 | 111,076 | — | 127,733 | ||||||||||||||
Amortization | — | 3,715 | 71,404 | — | 75,119 | ||||||||||||||
Impairment loss | — | 8,259 | 25,642 | — | 33,901 | ||||||||||||||
General and administrative | 311 | 26,452 | 36,065 | (35,446 | ) | 27,382 | |||||||||||||
311 | 88,912 | 449,531 | (53,823 | ) | 484,931 | ||||||||||||||
(311 | ) | (19,824 | ) | 55,258 | 35,661 | 70,784 | |||||||||||||
Other income (expense): | |||||||||||||||||||
Interest expense | — | (49,108 | ) | (27,636 | ) | 11,884 | (64,860 | ) | |||||||||||
Other income/(expense) | 282 | 9,560 | 2,029 | (11,884 | ) | (13 | ) | ||||||||||||
Net recoveries from casualty events | — | — | 34 | — | 34 | ||||||||||||||
Equity in income of unconsolidated joint ventures | — | 362 | — | — | 362 | ||||||||||||||
Gain on sale of real estate assets, net | — | 31,275 | 62,135 | — | 93,410 | ||||||||||||||
282 | (7,911 | ) | 36,562 | — | 28,933 | ||||||||||||||
Net income/(loss) | (29 | ) | (27,735 | ) | 91,820 | 35,661 | 99,717 | ||||||||||||
Net loss applicable to noncontrolling interest | — | — | 15 | — | 15 | ||||||||||||||
Net income/(loss) applicable to Piedmont | $ | (29 | ) | $ | (27,735 | ) | $ | 91,835 | $ | 35,661 | $ | 99,732 |
Consolidating Statements of Comprehensive Income | |||||||||||||||||||
For the Year Ended December 31, 2018 | |||||||||||||||||||
(in thousands) | Piedmont (Parent) (Guarantor) | Piedmont OP (the Issuer) | Non-Guarantors | Eliminations | Piedmont (Consolidated) | ||||||||||||||
Net income | $ | 130,296 | $ | 129,611 | $ | 179,622 | $ | (309,233 | ) | $ | 130,296 | ||||||||
Effective portion of gain/(loss) on derivative instruments that are designated and qualify as cash flow hedges | 692 | 692 | — | (692 | ) | 692 | |||||||||||||
Plus: Reclassification of net (gain)/loss included in net income | (300 | ) | (300 | ) | — | 300 | (300 | ) | |||||||||||
Other comprehensive income | 392 | 392 | — | (392 | ) | 392 | |||||||||||||
Comprehensive income | $ | 130,688 | $ | 130,003 | $ | 179,622 | $ | (309,625 | ) | $ | 130,688 |
Condensed Consolidated Statements of Cash Flows | |||||||||||||||||||
For the year ended December 31, 2018 | |||||||||||||||||||
(in thousands) | Piedmont (Parent) (Guarantor) | Piedmont OP (the Issuer) | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||
Net Cash Provided By/(Used In) Operating Activities | $ | 135,755 | $ | 141,293 | $ | 235,562 | $ | (309,741 | ) | $ | 202,869 | ||||||||
Cash Flows from Investing Activities: | |||||||||||||||||||
Investment in real estate assets, consolidated joint venture, and real estate related intangibles, net of accruals | — | (14,479 | ) | (209,540 | ) | — | (224,019 | ) | |||||||||||
Intercompany note receivable | — | 88,000 | — | (88,000 | ) | — | |||||||||||||
Net sales proceeds from wholly-owned properties | — | 36,572 | 538,655 | — | 575,227 | ||||||||||||||
Note receivable issuance | — | — | (3,200 | ) | — | (3,200 | ) | ||||||||||||
Note receivable payment | — | — | 3,200 | — | 3,200 | ||||||||||||||
Deferred lease costs paid | — | (3,090 | ) | (24,340 | ) | — | (27,430 | ) | |||||||||||
Distributions from subsidiaries | 349,135 | 5,405 | — | (354,540 | ) | — | |||||||||||||
Net cash provided by/(used in) investing activities | 349,135 | 112,408 | 304,775 | (442,540 | ) | 323,778 | |||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||
Debt issuance costs paid | — | (1,040 | ) | — | — | (1,040 | ) | ||||||||||||
Proceeds from debt | — | 977,062 | — | — | 977,062 | ||||||||||||||
Repayments of debt | — | (1,019,000 | ) | (1,455 | ) | — | (1,020,455 | ) | |||||||||||
Intercompany note payable | — | — | (88,000 | ) | 88,000 | — | |||||||||||||
Costs of issuance of common stock | (85 | ) | — | — | — | (85 | ) | ||||||||||||
Value of shares withheld to pay tax obligations related to employee stock compensation | (2,219 | ) | — | — | — | (2,219 | ) | ||||||||||||
Repurchases of common stock as part of announced plan | (298,538 | ) | — | — | — | (298,538 | ) | ||||||||||||
Distributions | (184,048 | ) | (214,596 | ) | (449,212 | ) | 663,763 | (184,093 | ) | ||||||||||
Net cash provided by/(used in) financing activities | (484,890 | ) | (257,574 | ) | (538,667 | ) | 751,763 | (529,368 | ) | ||||||||||
Net increase/(decrease) in cash, cash equivalents, and restricted cash and escrows | — | (3,873 | ) | 1,670 | (518 | ) | (2,721 | ) | |||||||||||
Cash, cash equivalents, and restricted cash and escrows, beginning of year | 150 | 3,907 | 4,698 | — | 8,755 | ||||||||||||||
Cash, cash equivalents, and restricted cash and escrows, end of year | $ | 150 | $ | 34 | $ | 6,368 | $ | (518 | ) | $ | 6,034 |
Condensed Consolidated Statements of Cash Flows | |||||||||||||||||||
For the year ended December 31, 2017 | |||||||||||||||||||
(in thousands) | Piedmont (Parent) (Guarantor) | Piedmont OP (the Issuer) | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||
Net Cash Provided By/(Used In) Operating Activities | $ | 5,497 | $ | (18,989 | ) | $ | 256,297 | $ | — | $ | 242,805 | ||||||||
Cash Flows from Investing Activities: | |||||||||||||||||||
Investment in real estate assets, consolidated joint venture, and real estate related intangibles, net of accruals | — | (1,614 | ) | (113,479 | ) | — | (115,093 | ) | |||||||||||
Intercompany note receivable | — | 100 | (48,710 | ) | 48,610 | — | |||||||||||||
Net sales proceeds from wholly-owned properties | — | 23,028 | 352,490 | — | 375,518 | ||||||||||||||
Net sales proceeds received from unconsolidated joint ventures | — | 12,334 | — | — | 12,334 | ||||||||||||||
Investments in unconsolidated joint ventures | — | (1,162 | ) | — | — | (1,162 | ) | ||||||||||||
Deferred lease costs paid | — | (4,081 | ) | (26,904 | ) | — | (30,985 | ) | |||||||||||
Net cash provided by/(used in) investing activities | — | 28,605 | 163,397 | 48,610 | 240,612 | ||||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||
Debt issuance costs paid | — | (132 | ) | — | — | (132 | ) | ||||||||||||
Proceeds from debt | — | 180,000 | — | — | 180,000 | ||||||||||||||
Repayments of debt | — | (335,000 | ) | (141,401 | ) | — | (476,401 | ) | |||||||||||
Intercompany note payable | — | (14,289 | ) | 62,899 | (48,610 | ) | — | ||||||||||||
Costs of issuance of common stock | (182 | ) | — | — | — | (182 | ) | ||||||||||||
Value of shares withheld to pay tax obligations related to employee stock compensation | (3,403 | ) | — | — | — | (3,403 | ) | ||||||||||||
Repurchases of common stock as part of announced plan | (60,474 | ) | — | — | — | (60,474 | ) | ||||||||||||
(Distributions to)/repayments from affiliates | 180,791 | 160,019 | (340,810 | ) | — | — | |||||||||||||
Dividends paid and discount on dividend reinvestments | (122,229 | ) | — | (45 | ) | — | (122,274 | ) | |||||||||||
Net cash provided by/(used in) financing activities | (5,497 | ) | (9,402 | ) | (419,357 | ) | (48,610 | ) | (482,866 | ) | |||||||||
Net increase/(decrease) in cash, cash equivalents, and restricted cash and escrows | — | 214 | 337 | — | 551 | ||||||||||||||
Cash, cash equivalents, and restricted cash and escrows, beginning of year | 150 | 3,693 | 4,361 | — | 8,204 | ||||||||||||||
Cash, cash equivalents, and restricted cash and escrows, end of year | $ | 150 | $ | 3,907 | $ | 4,698 | $ | — | $ | 8,755 |
Condensed Consolidated Statements of Cash Flows | |||||||||||||||||||
For the year ended December 31, 2016 | |||||||||||||||||||
(in thousands) | Piedmont (Parent) (Guarantor) | Piedmont OP (the Issuer) | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||
Net Cash Provided/(Used In) by Operating Activities | $ | 5,214 | $ | (26,263 | ) | $ | 217,236 | $ | 35,660 | $ | 231,847 | ||||||||
Cash Flows from Investing Activities: | |||||||||||||||||||
Investment in real estate assets, consolidated joint venture, and real estate related intangibles, net of accruals | — | (5,060 | ) | (454,836 | ) | — | (459,896 | ) | |||||||||||
Intercompany note receivable | — | 440 | (71,900 | ) | 71,460 | — | |||||||||||||
Net sales proceeds from wholly-owned properties | — | 200,220 | 165,698 | — | 365,918 | ||||||||||||||
Deferred lease costs paid | — | (2,758 | ) | (23,138 | ) | — | (25,896 | ) | |||||||||||
Net cash provided by/(used in) investing activities | — | 192,842 | (384,176 | ) | 71,460 | (119,874 | ) | ||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||
Debt issuance costs paid | — | (264 | ) | — | — | (264 | ) | ||||||||||||
Proceeds from debt | — | 695,000 | — | — | 695,000 | ||||||||||||||
Repayments of debt | — | (538,000 | ) | (168,875 | ) | — | (706,875 | ) | |||||||||||
Intercompany note payable | — | (9,600 | ) | 81,060 | (71,460 | ) | — | ||||||||||||
Costs of issuance of common stock | (342 | ) | — | — | — | (342 | ) | ||||||||||||
Value of shares withheld to pay tax obligations related to employee stock compensation | (2,344 | ) | — | — | — | (2,344 | ) | ||||||||||||
Repurchases of common stock as part of announced plan | (7,943 | ) | — | — | — | (7,943 | ) | ||||||||||||
(Distributions to)/repayments from affiliates | 97,016 | (312,218 | ) | 250,862 | (35,660 | ) | — | ||||||||||||
Dividends paid and discount on dividend reinvestments | (91,601 | ) | — | (15 | ) | — | (91,616 | ) | |||||||||||
Net cash provided by/(used in) financing activities | (5,214 | ) | (165,082 | ) | 163,032 | (107,120 | ) | (114,384 | ) | ||||||||||
Net increase/(decrease) in cash, cash equivalents, and restricted cash and escrows | — | 1,497 | (3,908 | ) | — | (2,411 | ) | ||||||||||||
Cash, cash equivalents, and restricted cash and escrows, beginning of year | 150 | 2,196 | 8,269 | — | 10,615 | ||||||||||||||
Cash, cash equivalents, and restricted cash and escrows, end of year | $ | 150 | $ | 3,693 | $ | 4,361 | $ | — | $ | 8,204 |
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net income applicable to Piedmont | $ | 232,688 | $ | 229,261 | $ | 130,296 | |||||||||||
Management fee revenue (1) | (1,495) | (2,518) | (712) | ||||||||||||||
Depreciation and amortization | 203,869 | 182,682 | 171,252 | ||||||||||||||
Impairment loss on real estate assets | 0 | 8,953 | 0 | ||||||||||||||
General and administrative expenses | 27,464 | 37,895 | 29,713 | ||||||||||||||
Interest expense | 54,990 | 61,594 | 61,023 | ||||||||||||||
Other income | (1,724) | (228) | (418) | ||||||||||||||
Loss on extinguishment of debt | 9,336 | 0 | 1,680 | ||||||||||||||
Gain on sale of real estate assets | (205,666) | (197,010) | (75,691) | ||||||||||||||
Net loss applicable to noncontrolling interests | (3) | (5) | (5) | ||||||||||||||
NOI | $ | 319,459 | $ | 320,624 | $ | 317,138 |
Initial Cost to Piedmont | Gross Amount of Which Carried at December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description(1) | Location | Ownership Percentage | Encumbrances | Land | Buildings and Improvements | Total(2) | Costs Capitalized Subsequent to Acquisition(3) | Land | Buildings and Improvements | Total(4) | Accumulated Depreciation and Amortization | Date of Construction | Date Acquired | Life on which Depreciation and Amortization in Latest Statements of Comprehensive Income is Computed (in years)(5) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1430 ENCLAVE PARKWAY | Houston, TX | 100 | % | None | 7,100 | 37,915 | 45,015 | 6,473 | 5,506 | 45,982 | 51,488 | 21,321 | 1994 | 12/21/2000 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CRESCENT RIDGE II | Minnetonka, MN | 100 | % | None | 7,700 | 45,154 | 52,854 | 12,363 | 8,021 | 57,196 | 65,217 | 28,532 | 2000 | 12/21/2000 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
90 CENTRAL STREET | Boxborough, MA | 100 | % | None | 3,642 | 29,497 | 33,139 | 2,794 | 3,642 | 32,291 | 35,933 | 14,670 | 2001 | 5/3/2002 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6031 CONNECTION DRIVE | Irving, TX | 100 | % | None | 3,157 | 43,656 | 46,813 | 8,454 | 3,157 | 52,110 | 55,267 | 22,979 | 1999 | 8/15/2002 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6021 CONNECTION DRIVE | Irving, TX | 100 | % | None | 3,157 | 42,662 | 45,819 | 11,562 | 3,157 | 54,224 | 57,381 | 25,875 | 2000 | 8/15/2002 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6011 CONNECTION DRIVE | Irving, TX | 100 | % | None | 3,157 | 29,034 | 32,191 | 18,524 | 3,157 | 47,558 | 50,715 | 15,583 | 1999 | 8/15/2002 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
US BANCORP CENTER | Minneapolis, MN | 100 | % | None | 11,138 | 175,629 | 186,767 | 31,142 | 11,138 | 206,771 | 217,909 | 91,546 | 2000 | 5/1/2003 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GLENRIDGE HIGHLANDS TWO | Atlanta, GA | 100 | % | None | 6,662 | 69,031 | 75,693 | (15,253) | 6,662 | 53,778 | 60,440 | 26,802 | 2000 | 8/1/2003 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
400 VIRGINIA AVE | Washington, DC | 100 | % | None | 22,146 | 49,740 | 71,886 | 2,375 | 22,146 | 52,115 | 74,261 | 21,865 | 1985 | 11/19/2003 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4250 NORTH FAIRFAX DRIVE | Arlington, VA | 100 | % | None | 13,636 | 70,918 | 84,554 | 16,725 | 13,636 | 87,643 | 101,279 | 36,852 | 1998 | 11/19/2003 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1225 EYE STREET | Washington, DC | 98.1 | % | None | 21,959 | 47,602 | 69,561 | 9,758 | 21,959 | 57,360 | 79,319 | 25,963 | 1986 | 11/19/2003 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1201 EYE STREET | Washington, DC | 98.6 | % | None | 31,985 | 63,139 | 95,124 | 9,768 | 31,985 | 72,907 | 104,892 | 29,381 | 2001 | 11/19/2003 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
60 BROAD STREET | New York, NY | 100 | % | None | 32,522 | 168,986 | 201,508 | 43,190 | 60,708 | 183,990 | 244,698 | 62,826 | 1962 | 12/31/2003 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1414 MASSACHUSETTS AVENUE | Cambridge, MA | 100 | % | None | 4,210 | 35,821 | 40,031 | (8,031) | 4,365 | 27,635 | 32,000 | 11,819 | 1873 | 1/8/2004 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ONE BRATTLE SQUARE | Cambridge, MA | 100 | % | None | 6,974 | 64,940 | 71,914 | (23,111) | 7,113 | 41,690 | 48,803 | 18,286 | 1991 | 2/26/2004 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3100 CLARENDON BOULEVARD | Arlington, VA | 100 | % | None | 11,700 | 69,705 | 81,405 | 48,835 | 11,791 | 118,449 | 130,240 | 38,772 | 1987 | 12/9/2004 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LAS COLINAS CORPORATE CENTER I | Irving, TX | 100 | % | None | 3,912 | 18,830 | 22,742 | (3,316) | 2,543 | 16,883 | 19,426 | 6,775 | 1998 | 8/31/2006 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LAS COLINAS CORPORATE CENTER II | Irving, TX | 100 | % | None | 4,496 | 29,881 | 34,377 | (2,047) | 2,543 | 29,787 | 32,330 | 12,272 | 1998 | 8/31/2006 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Initial Cost | Gross Amount of Which Carried at December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description(1) | Location | Ownership Percentage | Encumbrances | Land | Buildings and Improvements | Total(2) | Costs Capitalized Subsequent to Acquisition(3) | Land | Buildings and Improvements | Total(4) | Accumulated Depreciation and Amortization | Date of Construction | Date Acquired | Life on which Depreciation and Amortization in Latest Statements of Comprehensive Income is Computed (in years)(5) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TWO PIERCE PLACE | Itasca, IL | 100 | % | None | 4,370 | 70,632 | 75,002 | 12,528 | 8,156 | 79,374 | 87,530 | 25,018 | 1991 | 12/7/2006 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ONE MERIDIAN CROSSINGS | Richfield, MN | 100 | % | None | 2,919 | 24,398 | 27,317 | 621 | 2,919 | 25,019 | 27,938 | 7,170 | 1997 | 10/1/2010 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TWO MERIDIAN CROSSINGS | Richfield, MN | 100 | % | None | 2,661 | 25,742 | 28,403 | 839 | 2,661 | 26,581 | 29,242 | 7,636 | 1998 | 10/1/2010 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
THE MEDICI | Atlanta, GA | 100 | % | None | 1,780 | 11,510 | 13,290 | 5,632 | 1,780 | 17,142 | 18,922 | 6,325 | 2008 | 6/7/2011 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
225 PRESIDENTIAL WAY | Boston, MA | 100 | % | None | 3,626 | 36,916 | 40,542 | (5,419) | 3,612 | 31,511 | 35,123 | 7,363 | 2001 | 9/13/2011 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
235 PRESIDENTIAL WAY | Boston, MA | 100 | % | None | 4,154 | 44,048 | 48,202 | (6,851) | 4,138 | 37,213 | 41,351 | 8,659 | 2000 | 9/13/2011 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
400 TOWNPARK | Lake Mary, FL | 100 | % | None | 2,570 | 20,555 | 23,125 | 5,634 | 2,570 | 26,189 | 28,759 | 8,063 | 2008 | 11/10/2011 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ARLINGTON GATEWAY | Arlington, VA | 100 | % | None | 36,930 | 129,070 | 166,000 | 917 | 36,930 | 129,987 | 166,917 | 27,497 | 2005 | 3/4/2013 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 & 15 WAYSIDE ROAD | Burlington, MA | 100 | % | None | 7,190 | 55,445 | 62,635 | 6,463 | 7,190 | 61,908 | 69,098 | 14,471 | 1999 / 2001 | 3/22/2013 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6565 MACARTHUR BOULEVARD | Irving, TX | 100 | % | None | 4,820 | 37,767 | 42,587 | 726 | 4,820 | 38,493 | 43,313 | 8,203 | 1998 | 12/5/2013 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ONE LINCOLN PARK | Dallas, TX | 100 | % | None | 6,640 | 44,810 | 51,450 | 2,469 | 6,640 | 47,279 | 53,919 | 10,939 | 1999 | 12/20/2013 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
161 CORPORATE CENTER | Irving, TX | 100 | % | None | 2,020 | 10,680 | 12,700 | (467) | 2,020 | 10,213 | 12,233 | 2,786 | 1998 | 12/30/2013 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 WALL STREET | Burlington, MA | 100 | % | 27,610 | 9,560 | 50,276 | 59,836 | (2,212) | 9,560 | 48,064 | 57,624 | 8,813 | 2008 | 6/27/2014 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1155 PERIMETER CENTER WEST | Atlanta, GA | 100 | % | None | 5,870 | 66,849 | 72,719 | 5,879 | 5,870 | 72,728 | 78,598 | 12,934 | 2000 | 8/28/2014 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
500 TOWNPARK | Lake Mary, FL | 100 | % | None | 2,147 | 21,925 | 24,072 | 4,092 | 2,147 | 26,017 | 28,164 | 3,522 | 2016 | N/A | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PARK PLACE ON TURTLE CREEK | Dallas, TX | 100 | % | None | 4,470 | 38,048 | 42,518 | 4,117 | 4,470 | 42,165 | 46,635 | 7,564 | 1986 | 1/16/2015 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
80 CENTRAL STREET | Boxborough, MA | 100 | % | None | 1,980 | 8,930 | 10,910 | 3,731 | 1,980 | 12,661 | 14,641 | 2,050 | 1988 | 7/24/2015 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ENCLAVE PLACE | Houston, TX | 100 | % | None | 1,890 | 60,094 | 61,984 | 35,319 | 1,890 | 95,413 | 97,303 | 10,591 | 2015 | N/A | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
200 SOUTH ORANGE AVENUE | Orlando, FL | 100 | % | None | 11,660 | 139,015 | 150,675 | 20,653 | 11,660 | 159,668 | 171,328 | 22,127 | 1988 | 11/4/2015 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GALLERIA 300 | Atlanta, GA | 100 | % | None | 4,000 | 73,554 | 77,554 | 6,799 | 4,000 | 80,353 | 84,353 | 14,130 | 1987 | 11/4/2015 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Initial Cost | Gross Amount at Which Carried at December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||
Description | Location | Ownership Percentage | Encumbrances | Land | Buildings and Improvements | Total (a) | Costs Capitalized Subsequent to Acquisition (b) | Land | Buildings and Improvements | Total (c) | Accumulated Depreciation and Amortization | Date of Construction | Date Acquired | Life on which Depreciation and Amortization is Computed (in years) (d) | ||||||||||||||||||||||||||||||||||
1430 ENCLAVE PARKWAY | Houston, TX | 100 | % | None | 7,100 | 37,915 | 45,015 | 2,050 | 5,506 | 41,559 | 47,065 | 20,788 | 1994 | 12/21/2000 | 0 | - | 40 | |||||||||||||||||||||||||||||||
CRESCENT RIDGE II | Minnetonka, MN | 100 | % | None | 7,700 | 45,154 | 52,854 | 8,536 | 8,021 | 53,369 | 61,390 | 25,620 | 2000 | 12/21/2000 | 0 | - | 40 | |||||||||||||||||||||||||||||||
90 CENTRAL STREET | Boxborough, MA | 100 | % | None | 3,642 | 29,497 | 33,139 | 1,462 | 3,642 | 30,959 | 34,601 | 13,188 | 2001 | 5/3/2002 | 0 | - | 40 | |||||||||||||||||||||||||||||||
6031 CONNECTION DRIVE | Irving, TX | 100 | % | None | 3,157 | 43,656 | 46,813 | 4,691 | 3,157 | 48,347 | 51,504 | 20,356 | 1999 | 8/15/2002 | 0 | - | 40 | |||||||||||||||||||||||||||||||
6021 CONNECTION DRIVE | Irving, TX | 100 | % | None | 3,157 | 42,662 | 45,819 | 10,545 | 3,157 | 53,207 | 56,364 | 22,029 | 2000 | 8/15/2002 | 0 | - | 40 | |||||||||||||||||||||||||||||||
6011 CONNECTION DRIVE | Irving, TX | 100 | % | None | 3,157 | 29,034 | 32,191 | 10,666 | 3,157 | 39,700 | 42,857 | 12,425 | 1999 | 8/15/2002 | 0 | - | 40 | |||||||||||||||||||||||||||||||
ONE INDEPENDENCE SQUARE | Washington, DC | 100 | % | None | 29,765 | 104,814 | 134,579 | 24,426 | 30,562 | 128,443 | 159,005 | 48,453 | 1991 | 11/22/2002 | 0 | - | 40 | |||||||||||||||||||||||||||||||
US BANCORP CENTER | Minneapolis, MN | 100 | % | None | 11,138 | 175,629 | 186,767 | 23,472 | 11,138 | 199,101 | 210,239 | 78,042 | 2000 | 5/1/2003 | 0 | - | 40 | |||||||||||||||||||||||||||||||
GLENRIDGE HIGHLANDS TWO | Atlanta, GA | 100 | % | None | 6,662 | 69,031 | 75,693 | (16,208 | ) | 6,662 | 52,823 | 59,485 | 24,203 | 2000 | 8/1/2003 | 0 | - | 40 | ||||||||||||||||||||||||||||||
200 BRIDGEWATER CROSSING | Bridgewater, NJ | 100 | % | None | 8,182 | 84,160 | 92,342 | (13,916 | ) | 8,328 | 70,098 | 78,426 | 28,421 | 2002 | 8/14/2003 | 0 | - | 40 | ||||||||||||||||||||||||||||||
400 VIRGINIA AVE | Washington, DC | 100 | % | None | 22,146 | 49,740 | 71,886 | 134 | 22,146 | 49,874 | 72,020 | 19,117 | 1985 | 11/19/2003 | 0 | - | 40 | |||||||||||||||||||||||||||||||
4250 NORTH FAIRFAX DRIVE | Arlington, VA | 100 | % | None | 13,636 | 70,918 | 84,554 | 13,636 | 13,636 | 84,554 | 98,190 | 29,283 | 1998 | 11/19/2003 | 0 | - | 40 | |||||||||||||||||||||||||||||||
1225 EYE STREET | Washington, DC | 98.1 | % | None | 21,959 | 47,602 | 69,561 | 8,270 | 21,959 | 55,872 | 77,831 | 21,464 | 1986 | 11/19/2003 | 0 | - | 40 | |||||||||||||||||||||||||||||||
1201 EYE STREET | Washington, DC | 98.6 | % | None | 31,985 | 63,139 | 95,124 | 8,672 | 31,985 | 71,811 | 103,796 | 24,231 | 2001 | 11/19/2003 | 0 | - | 40 | |||||||||||||||||||||||||||||||
1901 MARKET STREET | Philadelphia, PA | 100 | % | 160,000 | 13,584 | 166,683 | 180,267 | 53,684 | 20,829 | 213,122 | 233,951 | 86,647 | 1987 | 12/18/2003 | 0 | - | 40 | |||||||||||||||||||||||||||||||
60 BROAD STREET | New York, NY | 100 | % | None | 32,522 | 168,986 | 201,508 | 14,807 | 60,708 | 155,607 | 216,315 | 62,891 | 1962 | 12/31/2003 | 0 | - | 40 | |||||||||||||||||||||||||||||||
1414 MASSACHUSETTS AVENUE | Cambridge, MA | 100 | % | None | 4,210 | 35,821 | 40,031 | (8,031 | ) | 4,365 | 27,635 | 32,000 | 10,421 | 1873 | 1/8/2004 | 0 | - | 40 | ||||||||||||||||||||||||||||||
ONE BRATTLE SQUARE | Cambridge, MA | 100 | % | None | 6,974 | 64,940 | 71,914 | (23,725 | ) | 7,113 | 41,076 | 48,189 | 15,703 | 1991 | 2/26/2004 | 0 | - | 40 | ||||||||||||||||||||||||||||||
600 CORPORATE DRIVE | Lebanon, NJ | 100 | % | None | 3,934 | — | 3,934 | 16,281 | 3,934 | 16,281 | 20,215 | 8,173 | 2005 | 3/16/2004 | 0 | - | 40 | |||||||||||||||||||||||||||||||
3100 CLARENDON BOULEVARD | Arlington, VA | 100 | % | None | 11,700 | 69,705 | 81,405 | 46,315 | 11,791 | 115,929 | 127,720 | 29,690 | 1987 | 12/9/2004 | 0 | - | 40 | |||||||||||||||||||||||||||||||
Initial Cost | Gross Amount of Which Carried at December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description(1) | Location | Ownership Percentage | Encumbrances | Land | Buildings and Improvements | Total(2) | Costs Capitalized Subsequent to Acquisition(3) | Land | Buildings and Improvements | Total(4) | Accumulated Depreciation and Amortization | Date of Construction | Date Acquired | Life on which Depreciation and Amortization in Latest Statements of Comprehensive Income is Computed (in years)(5) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GLENRIDGE HIGHLANDS ONE | Atlanta, GA | 100 | % | None | 5,960 | 50,013 | 55,973 | 3,381 | 5,960 | 53,394 | 59,354 | 8,796 | 1998 | 11/24/2015 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CNL CENTER I | Orlando, FL | 99 | % | None | 6,470 | 77,858 | 84,328 | (20) | 6,470 | 77,838 | 84,308 | 11,639 | 1999 | 8/1/2016 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CNL CENTER II | Orlando, FL | 99 | % | None | 4,550 | 55,609 | 60,159 | 862 | 4,550 | 56,471 | 61,021 | 9,869 | 2006 | 8/1/2016 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ONE WAYSIDE ROAD | Boston, MA | 100 | % | None | 6,240 | 57,124 | 63,364 | (4,471) | 6,240 | 52,653 | 58,893 | 6,455 | 1997 / 2008 | 8/10/2016 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GALLERIA 200 | Atlanta, GA | 100 | % | None | 6,470 | 55,825 | 62,295 | 9,738 | 6,470 | 65,563 | 72,033 | 8,642 | 1984 | 10/7/2016 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
750 WEST JOHN CARPENTER FREEWAY | Irving, TX | 100 | % | None | 7,860 | 36,303 | 44,163 | 2,914 | 7,860 | 39,217 | 47,077 | 8,445 | 1999 | 11/30/2016 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NORMAN POINTE I | Bloomington, MN | 100 | % | None | 4,358 | 22,322 | 26,680 | 3,917 | 4,360 | 26,237 | 30,597 | 3,384 | 2000 | 12/28/2017 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
501 WEST CHURCH STREET | Orlando, FL | 100 | % | None | 2,805 | 28,119 | 30,924 | 0 | 2,805 | 28,119 | 30,924 | 3,396 | 2003 | 2/23/2018 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9320 EXCELSIOR BOULEVARD | Hopkins, MN | 100 | % | None | 3,760 | 35,289 | 39,049 | (553) | 3,707 | 34,789 | 38,496 | 4,531 | 2010 | 10/25/2018 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
25 BURLINGTON MALL ROAD | Burlington, MA | 100 | % | None | 10,230 | 54,787 | 65,017 | (2,543) | 10,230 | 52,244 | 62,474 | 5,942 | 1987 | 12/12/2018 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GALLERIA 100 | Atlanta, GA | 100 | % | None | 7,285 | 72,449 | 79,734 | 488 | 7,285 | 72,937 | 80,222 | 7,238 | 1982 | 5/6/2019 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GALLERIA 400 | Atlanta, GA | 100 | % | None | 5,687 | 92,915 | 98,602 | 698 | 5,687 | 93,613 | 99,300 | 5,605 | 1999 | 8/23/2019 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GALLERIA 600 | Atlanta, GA | 100 | % | None | 5,418 | 81,003 | 86,421 | 9 | 5,418 | 81,012 | 86,430 | 5,135 | 2002 | 8/23/2019 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ONE GALLERIA TOWER | Dallas, TX | 100 | % | None | 5,286 | 107,767 | 113,053 | 982 | 5,286 | 108,749 | 114,035 | 5,933 | 1982 | 2/12/2020 | 0 | 40 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TWO GALLERIA TOWER | Dallas, TX | 100 | % | None | 3,835 | 109,605 | 113,440 | 545 | 3,836 | 110,149 | 113,985 | 6,061 | 1985 | 2/12/2020 | 0 | 40 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
THREE GALLERIA TOWER | Dallas, TX | 100 | % | None | 6,541 | 125,490 | 132,031 | 312 | 6,541 | 125,802 | 132,343 | 5,895 | 1991 | 2/12/2020 | 0 | 40 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
222 SOUTH ORANGE AVENUE | Orlando, FL | 100 | % | None | 1,899 | 18,417 | 20,316 | 157 | 1,899 | 18,574 | 20,473 | 0 | 1959 | 10/29/2020 | 0 | 40 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
UNDEVELOPED LAND PARCELS (6) | Various | 100 | % | None | 44,509 | 0 | 44,509 | 363 | 41,620 | 3,252 | 44,872 | 446 | N/A | Various | N/A | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total—All Properties | $ | 459,673 | $ | 3,143,299 | $ | 3,602,972 | $ | 288,454 | $ | 484,466 | $ | 3,406,960 | $ | 3,891,426 | $ | 835,392 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Initial Cost | Gross Amount at Which Carried at December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||
Description | Location | Ownership Percentage | Encumbrances | Land | Buildings and Improvements | Total (a) | Costs Capitalized Subsequent to Acquisition (b) | Land | Buildings and Improvements | Total (c) | Accumulated Depreciation and Amortization | Date of Construction | Date Acquired | Life on which Depreciation and Amortization is Computed (in years) (d) | ||||||||||||||||||||||||||||||||||
400 BRIDGEWATER CROSSING | Bridgewater, NJ | 100 | % | None | 10,400 | 71,052 | 81,452 | (14,215 | ) | 10,400 | 56,837 | 67,237 | 18,090 | 2002 | 2/17/2006 | 0 | - | 40 | ||||||||||||||||||||||||||||||
LAS COLINAS CORPORATE CENTER I | Irving, TX | 100 | % | None | 3,912 | 18,830 | 22,742 | (3,701 | ) | 2,543 | 16,498 | 19,041 | 6,281 | 1998 | 8/31/2006 | 0 | - | 40 | ||||||||||||||||||||||||||||||
LAS COLINAS CORPORATE CENTER II | Irving, TX | 100 | % | None | 4,496 | 29,881 | 34,377 | (3,846 | ) | 2,543 | 27,988 | 30,531 | 9,774 | 1998 | 8/31/2006 | 0 | - | 40 | ||||||||||||||||||||||||||||||
TWO PIERCE PLACE | Itasca, IL | 100 | % | None | 4,370 | 70,632 | 75,002 | 8,783 | 8,156 | 75,629 | 83,785 | 20,322 | 1991 | 12/7/2006 | 0 | - | 40 | |||||||||||||||||||||||||||||||
ONE MERIDIAN CROSSINGS | Richfield, MN | 100 | % | None | 2,919 | 24,398 | 27,317 | 318 | 2,919 | 24,716 | 27,635 | 5,749 | 1997 | 10/1/2010 | 0 | - | 40 | |||||||||||||||||||||||||||||||
TWO MERIDIAN CROSSINGS | Richfield, MN | 100 | % | None | 2,661 | 25,742 | 28,403 | 673 | 2,661 | 26,415 | 29,076 | 6,167 | 1998 | 10/1/2010 | 0 | - | 40 | |||||||||||||||||||||||||||||||
500 WEST MONROE STREET | Chicago, IL | 100 | % | None | 36,990 | 185,113 | 222,103 | 52,437 | 36,990 | 237,550 | 274,540 | 54,023 | 1991 | 3/31/2011 | 0 | - | 40 | |||||||||||||||||||||||||||||||
THE DUPREE | Atlanta, GA | 100 | % | None | 4,080 | 14,310 | 18,390 | 894 | 4,080 | 15,204 | 19,284 | 5,235 | 1997 | 4/29/2011 | 0 | - | 40 | |||||||||||||||||||||||||||||||
THE MEDICI | Atlanta, GA | 100 | % | None | 1,780 | 11,510 | 13,290 | 5,473 | 1,780 | 16,983 | 18,763 | 4,690 | 2008 | 6/7/2011 | 0 | - | 40 | |||||||||||||||||||||||||||||||
225 PRESIDENTIAL WAY | Boston, MA | 100 | % | None | 3,626 | 36,916 | 40,542 | 217 | 3,612 | 37,147 | 40,759 | 11,241 | 2001 | 9/13/2011 | 0 | - | 40 | |||||||||||||||||||||||||||||||
235 PRESIDENTIAL WAY | Boston, MA | 100 | % | None | 4,154 | 44,048 | 48,202 | 240 | 4,138 | 44,304 | 48,442 | 13,360 | 2000 | 9/13/2011 | 0 | - | 40 | |||||||||||||||||||||||||||||||
400 TOWNPARK | Lake Mary, FL | 100 | % | None | 2,570 | 20,555 | 23,125 | 4,725 | 2,570 | 25,280 | 27,850 | 5,811 | 2008 | 11/10/2011 | 0 | - | 40 | |||||||||||||||||||||||||||||||
ARLINGTON GATEWAY | Arlington, VA | 100 | % | None | 36,930 | 129,070 | 166,000 | (1,777 | ) | 36,930 | 127,293 | 164,223 | 19,521 | 2005 | 3/4/2013 | 0 | - | 40 | ||||||||||||||||||||||||||||||
5 & 15 WAYSIDE ROAD | Burlington, MA | 100 | % | None | 7,190 | 55,445 | 62,635 | 6,653 | 7,190 | 62,098 | 69,288 | 10,185 | 1999 / 2001 | 3/22/2013 | 0 | - | 40 | |||||||||||||||||||||||||||||||
6565 MACARTHUR BOULEVARD | Irving, TX | 100 | % | None | 4,820 | 37,767 | 42,587 | (464 | ) | 4,820 | 37,303 | 42,123 | 5,690 | 1998 | 12/5/2013 | 0 | - | 40 | ||||||||||||||||||||||||||||||
ONE LINCOLN PARK | Dallas, TX | 100 | % | None | 6,640 | 44,810 | 51,450 | 1,428 | 6,640 | 46,238 | 52,878 | 8,151 | 1999 | 12/20/2013 | 0 | - | 40 | |||||||||||||||||||||||||||||||
161 CORPORATE CENTER | Irving, TX | 100 | % | None | 2,020 | 10,680 | 12,700 | (16 | ) | 2,020 | 10,664 | 12,684 | 2,698 | 1998 | 12/30/2013 | 0 | - | 40 | ||||||||||||||||||||||||||||||
5 WALL STREET | Burlington, MA | 100 | % | 29,706 | 9,560 | 50,276 | 59,836 | 365 | 9,560 | 50,641 | 60,201 | 9,378 | 2008 | 6/27/2014 | 0 | - | 40 | |||||||||||||||||||||||||||||||
1155 PERIMETER CENTER WEST | Atlanta, GA | 100 | % | None | 5,870 | 66,849 | 72,719 | 32 | 5,870 | 66,881 | 72,751 | 12,969 | 2000 | 8/28/2014 | 0 | - | 40 | |||||||||||||||||||||||||||||||
Initial Cost | Gross Amount at Which Carried at December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||
Description | Location | Ownership Percentage | Encumbrances | Land | Buildings and Improvements | Total (a) | Costs Capitalized Subsequent to Acquisition (b) | Land | Buildings and Improvements | Total (c) | Accumulated Depreciation and Amortization | Date of Construction | Date Acquired | Life on which Depreciation and Amortization is Computed (in years) (d) | ||||||||||||||||||||||||||||||||||
500 TOWNPARK | Lake Mary, FL | 100 | % | None | 2,147 | 21,925 | 24,072 | 4,108 | 2,147 | 26,033 | 28,180 | 1,644 | 2017 | N/A | 0 | - | 40 | |||||||||||||||||||||||||||||||
PARK PLACE ON TURTLE CREEK | Dallas, TX | 100 | % | None | 4,470 | 38,048 | 42,518 | 2,836 | 4,470 | 40,884 | 45,354 | 6,079 | 1986 | 1/16/2015 | 0 | - | 40 | |||||||||||||||||||||||||||||||
80 CENTRAL STREET | Boxborough, MA | 100 | % | None | 1,980 | 8,930 | 10,910 | 245 | 1,980 | 9,175 | 11,155 | 1,451 | 1988 | 7/24/2015 | 0 | - | 40 | |||||||||||||||||||||||||||||||
ENCLAVE PLACE | Houston, TX | 100 | % | None | 1,890 | 60,094 | 61,984 | 3,756 | 1,890 | 63,850 | 65,740 | 5,188 | 2015 | N/A | 0 | - | 40 | |||||||||||||||||||||||||||||||
SUNTRUST CENTER | Orlando, FL | 100 | % | None | 11,660 | 139,015 | 150,675 | 923 | 11,660 | 139,938 | 151,598 | 16,979 | 1988 | 11/4/2015 | 0 | - | 40 | |||||||||||||||||||||||||||||||
GALLERIA 300 | Atlanta, GA | 100 | % | None | 4,000 | 73,554 | 77,554 | 1,880 | 4,000 | 75,434 | 79,434 | 9,400 | 1987 | 11/4/2015 | 0 | - | 40 | |||||||||||||||||||||||||||||||
GLENRIDGE HIGHLANDS ONE | Atlanta, GA | 100 | % | None | 5,960 | 50,013 | 55,973 | 157 | 5,960 | 50,170 | 56,130 | 6,321 | 1998 | 11/24/2015 | 0 | - | 40 | |||||||||||||||||||||||||||||||
CNL CENTER I | Orlando, FL | 99 | % | None | 6,470 | 77,858 | 84,328 | (28 | ) | 6,470 | 77,830 | 84,300 | 8,382 | 1999 | 8/1/2016 | 0 | - | 40 | ||||||||||||||||||||||||||||||
CNL CENTER II | Orlando, FL | 99 | % | None | 4,550 | 55,609 | 60,159 | 455 | 4,550 | 56,064 | 60,614 | 5,458 | 2006 | 8/1/2016 | 0 | - | 40 | |||||||||||||||||||||||||||||||
ONE WAYSIDE ROAD | Boston, MA | 100 | % | None | 6,240 | 57,124 | 63,364 | (4,471 | ) | 6,240 | 52,653 | 58,893 | 3,289 | 1997 / 2008 | 8/10/2016 | 0 | - | 40 | ||||||||||||||||||||||||||||||
GALLERIA 200 | Atlanta, GA | 100 | % | None | 6,470 | 55,825 | 62,295 | 549 | 6,470 | 56,374 | 62,844 | 5,179 | 1984 | 10/7/2016 | 0 | - | 40 | |||||||||||||||||||||||||||||||
750 WEST JOHN CARPENTER FREEWAY | Irving, TX | 100 | % | None | 7,860 | 36,303 | 44,163 | 1,931 | 7,860 | 38,234 | 46,094 | 4,196 | 1999 | 11/30/2016 | 0 | - | 40 | |||||||||||||||||||||||||||||||
NORMAN POINTE I | Bloomington, MN | 100 | % | None | 4,358 | 22,322 | 26,680 | 251 | 4,360 | 22,571 | 26,931 | 1,034 | 2000 | 12/28/2017 | 0 | - | 40 | |||||||||||||||||||||||||||||||
501 WEST CHURCH STREET | Orlando, FL | 100 | % | None | 2,805 | 28,119 | 30,924 | — | 2,805 | 28,119 | 30,924 | 1,035 | 2003 | 2/23/2018 | 0 | - | 40 | |||||||||||||||||||||||||||||||
9320 EXCELSIOR BOULEVARD | Hopkins, MN | 100 | % | None | 3,760 | 35,289 | 39,049 | — | 3,760 | 35,289 | 39,049 | 408 | 2010 | 10/25/2018 | 0 | - | 40 | |||||||||||||||||||||||||||||||
25 BURLINGTON MALL ROAD | Burlington, MA | 100 | % | None | 10,230 | 54,787 | 65,017 | — | 10,230 | 54,787 | 65,017 | 555 | 1987 | 12/12/2018 | 0 | - | 40 | |||||||||||||||||||||||||||||||
PIEDMONT POWER, LLC (e) | Bridgewater, NJ | 100 | % | None | — | 79 | 79 | 2,740 | — | 2,819 | 2,819 | 818 | N/A | 12/20/2011 | 0 | - | 40 | |||||||||||||||||||||||||||||||
UNDEVELOPED LAND PARCELS (f) | Various | 100 | % | None | 18,061 | — | 18,061 | (860 | ) | 15,914 | 1,287 | 17,201 | 41 | N/A | Various | N/A | ||||||||||||||||||||||||||||||||
Total—All Properties | $ | 504,209 | $ | 3,161,864 | $ | 3,666,073 | $ | 258,458 | $ | 537,984 | $ | 3,386,547 | $ | 3,924,531 | $ | 907,937 |
2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at the beginning of the year | $ | 3,818,287 | $ | 3,924,531 | $ | 4,438,209 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additions to/improvements of real estate | 493,760 | 406,832 | 206,442 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets disposed | (393,231) | (452,672) | (675,692) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets impaired (1) | 0 | (8,953) | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Write-offs of intangible assets (2) | (15,891) | (36,428) | (33,067) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Write-offs of fully depreciated/amortized assets | (11,499) | (15,023) | (11,361) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at the end of the year | $ | 3,891,426 | $ | 3,818,287 | $ | 3,924,531 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Depreciation and Amortization: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at the beginning of the year | $ | 875,777 | $ | 907,937 | $ | 1,053,467 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization expense | 142,762 | 132,600 | 128,456 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets disposed | (155,757) | (113,309) | (229,558) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Write-offs of intangible assets (2) | (15,891) | (36,428) | (33,067) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Write-offs of fully depreciated/amortized assets | (11,499) | (15,023) | (11,361) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at the end of the year | $ | 835,392 | $ | 875,777 | $ | 907,937 |
2018 | 2017 | 2016 | ||||||||||
Real Estate: | ||||||||||||
Balance at the beginning of the year | $ | 4,438,209 | $ | 4,800,025 | $ | 4,725,096 | ||||||
Additions to/improvements of real estate | 206,442 | 85,368 | 422,908 | |||||||||
Assets disposed | (675,692 | ) | (353,911 | ) | (1) | (296,319 | ) | |||||
Assets impaired | — | (46,461 | ) | (2) | (30,898 | ) | (3) | |||||
Write-offs of intangible assets (4) | (33,067 | ) | (37,188 | ) | (11,896 | ) | ||||||
Write-offs of fully depreciated/amortized assets | (11,361 | ) | (9,624 | ) | (8,866 | ) | ||||||
Balance at the end of the year | $ | 3,924,531 | $ | 4,438,209 | $ | 4,800,025 | ||||||
Accumulated Depreciation and Amortization: | ||||||||||||
Balance at the beginning of the year | $ | 1,053,467 | $ | 1,058,704 | $ | 1,019,663 | ||||||
Depreciation and amortization expense | 128,456 | 145,837 | 155,274 | |||||||||
Assets disposed | (229,558 | ) | (104,262 | ) | (1) | (95,471 | ) | |||||
Write-offs of intangible assets (4) | (33,067 | ) | (37,188 | ) | (11,896 | ) | ||||||
Write-offs of fully depreciated/amortized assets | (11,361 | ) | (9,624 | ) | (8,866 | ) | ||||||
Balance at the end of the year | $ | 907,937 | $ | 1,053,467 | $ | 1,058,704 |