Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 07, 2019 | Jun. 30, 2018 | |
Document and Entity Information | |||
Entity Registrant Name | FRANKLIN STREET PROPERTIES CORP /MA/ | ||
Entity Central Index Key | 1,031,316 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 880,955,282 | ||
Entity Common Stock, Shares Outstanding | 107,231,155 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Real estate assets: | ||
Land | $ 191,578 | $ 191,578 |
Buildings and improvements | 1,857,935 | 1,811,631 |
Fixtures and equipment | 8,839 | 5,614 |
Total real estate assets, gross | 2,058,352 | 2,008,823 |
Less accumulated depreciation | 432,579 | 376,131 |
Real estate assets, net | 1,625,773 | 1,632,692 |
Acquired real estate leases, less accumulated amortization of $101,897 and $109,771, respectively | 59,595 | 86,520 |
Investment in non-consolidated REITs | 70,164 | |
Cash and cash equivalents | 11,177 | 9,819 |
Tenant rent receivables, less allowance for doubtful accounts of $200 and $250, respectively | 3,938 | 3,123 |
Straight-line rent receivable, less allowance for doubtful accounts of $50 and $50, respectively | 54,006 | 53,194 |
Prepaid expenses and other assets | 10,400 | 8,387 |
Other assets: derivative asset | 14,765 | 13,925 |
Related party mortgage loan receivables | 70,660 | 71,720 |
Office computers and furniture, net of accumulated depreciation of $1,512 and $1,420, respectively | 197 | 289 |
Deferred leasing commissions, net of accumulated amortization of $24,318 and $22,276, respectively | 47,591 | 40,679 |
Total assets | 1,898,102 | 1,990,512 |
Liabilities: | ||
Bank note payable | 25,000 | 78,000 |
Term loans payable, less unamortized financing costs of $5,722 and $5,099, respectively | 764,278 | 764,901 |
Series A & Series B Senior Notes, less unamortized financing costs of $1,150 and $1,308, respectively | 198,850 | 198,692 |
Accounts payable and accrued expenses | 59,183 | 61,039 |
Accrued compensation | 3,043 | 3,641 |
Tenant security deposits | 6,319 | 5,383 |
Other liabilities: derivative liabilities | 1,759 | |
Acquired unfavorable real estate leases, less accumulated amortization of $6,605 and $7,638, respectively | 3,795 | 5,805 |
Total liabilities | 1,060,468 | 1,119,220 |
Commitments and contingencies | ||
Stockholders' Equity: | ||
Preferred stock, $.0001 par value, 20,000,000 shares authorized, none issued or outstanding | ||
Common stock, $.0001 par value, 180,000,000 shares authorized, 107,231,155 and 107,231,155 shares issued and outstanding, respectively | 11 | 11 |
Additional paid-in capital | 1,356,457 | 1,356,457 |
Accumulated other comprehensive income (loss) | 14,765 | 12,166 |
Distributions in excess of accumulated earnings | (533,599) | (497,342) |
Total stockholders' equity | 837,634 | 871,292 |
Total liabilities and stockholders' equity | $ 1,898,102 | $ 1,990,512 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Consolidated Balance Sheets | ||
Acquired real estate leases, accumulated amortization | $ 101,897 | $ 109,771 |
Tenant rent receivables, allowance for doubtful accounts | 200 | 250 |
Straight-line rent receivable, allowance for doubtful accounts | 50 | 50 |
Office computers and furniture, accumulated depreciation | 1,512 | 1,420 |
Deferred leasing commissions, accumulated amortization | 24,318 | 22,276 |
Term loan payable, unamortized financing costs | 5,722 | 5,099 |
Series A & Series B Senior notes, unamortized financing costs | 1,150 | 1,308 |
Acquired unfavorable real estate leases, accumulated amortization | $ 6,605 | $ 7,638 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 180,000,000 | 180,000,000 |
Common stock, shares issued (in shares) | 107,231,155 | 107,231,155 |
Common stock, shares outstanding (in shares) | 107,231,155 | 107,231,155 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | |||
Total revenues | $ 268,870 | $ 272,588 | $ 249,888 |
Expenses: | |||
Real estate operating expenses | 70,703 | 71,212 | 65,335 |
Real estate taxes and insurance | 45,857 | 45,841 | 40,140 |
Depreciation and amortization | 94,230 | 101,258 | 93,052 |
General and administrative | 13,070 | 13,471 | 14,126 |
Interest | 38,374 | 32,387 | 26,548 |
Total expenses | 262,234 | 264,169 | 239,201 |
Income before equity in income (loss) of non-consolidated REITs, other, gain (loss) on sale of properties and properties held for sale and taxes | 6,636 | 8,419 | 10,687 |
Equity in income (loss) of non-consolidated REITs | 6,793 | (3,604) | (831) |
Other | (1,878) | 1,878 | |
Gain (loss) on sale of properties and properties held for sale | (18,481) | (2,938) | |
Income (loss) before taxes on income | 13,429 | (15,544) | 8,796 |
Taxes on income | 360 | 400 | 418 |
Net income (loss) | $ 13,069 | $ (15,944) | $ 8,378 |
Weighted average number of shares outstanding, basic and diluted (in shares) | 107,231,000 | 107,231,000 | 102,843,000 |
Net income (loss) per share, basic and diluted | $ 0.12 | $ (0.15) | $ 0.08 |
Rental | |||
Revenues: | |||
Total revenues | $ 263,777 | $ 267,265 | $ 244,349 |
Related party revenue, Management fees and interest income from loans | |||
Revenues: | |||
Total revenues | 5,061 | 5,285 | 5,465 |
Other | |||
Revenues: | |||
Total revenues | $ 32 | $ 38 | $ 74 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Consolidated Statements of Comprehensive Income | |||
Net income (loss) | $ 13,069 | $ (15,944) | $ 8,378 |
Comprehensive income: | |||
Unrealized gain on derivative financial instruments | 2,599 | 6,688 | 12,589 |
Total comprehensive income | 2,599 | 6,688 | 12,589 |
Comprehensive income (loss) | $ 15,668 | $ (9,256) | $ 20,967 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock | Additional Paid-In Capital | Accumulated other comprehensive income (loss) | Distributions in excess of accumulated earnings | Total |
Balance at Dec. 31, 2015 | $ 10 | $ 1,273,556 | $ (7,111) | $ (330,799) | $ 935,656 |
Balance (in shares) at Dec. 31, 2015 | 100,187 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Comprehensive income | 12,589 | 8,378 | 20,967 | ||
Shares issued for: | |||||
Equity offering | $ 1 | 82,901 | 82,902 | ||
Equity offering (in shares) | 7,044 | ||||
Distributions | (77,481) | (77,481) | |||
Balance at Dec. 31, 2016 | $ 11 | 1,356,457 | 5,478 | (399,902) | 962,044 |
Balance (in shares) at Dec. 31, 2016 | 107,231 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Comprehensive income | 6,688 | (15,944) | (9,256) | ||
Shares issued for: | |||||
Distributions | (81,496) | (81,496) | |||
Balance at Dec. 31, 2017 | $ 11 | 1,356,457 | 12,166 | (497,342) | 871,292 |
Balance (in shares) at Dec. 31, 2017 | 107,231 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Comprehensive income | 2,599 | 13,069 | 15,668 | ||
Shares issued for: | |||||
Distributions | (49,326) | (49,326) | |||
Balance at Dec. 31, 2018 | $ 11 | $ 1,356,457 | $ 14,765 | $ (533,599) | $ 837,634 |
Balance (in shares) at Dec. 31, 2018 | 107,231 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 13,069 | $ (15,944) | $ 8,378 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization expense | 97,171 | 103,743 | 95,243 |
Amortization of above and below market leases | (556) | (1,031) | (496) |
Hedge ineffectiveness | 1,878 | (1,878) | |
Loss on sale of properties and properties held for sale | (18,481) | (2,938) | |
Equity in (income) loss of non-consolidated REITs | (6,793) | 3,604 | 831 |
Increase (decrease) in allowance for doubtful accounts | (50) | 150 | (30) |
Changes in operating assets and liabilities: | |||
Tenant rent receivables | (765) | (160) | (185) |
Straight-line rents | 381 | (1,767) | (1,977) |
Lease acquisition costs | (1,193) | (2,052) | (1,095) |
Prepaid expenses and other assets | (1,940) | (403) | (721) |
Accounts payable and accrued expenses | (4,077) | 3,870 | 5,751 |
Accrued compensation | (598) | (143) | 58 |
Tenant security deposits | 936 | 28 | 526 |
Payment of deferred leasing commissions | (15,383) | (14,309) | (12,965) |
Net cash provided by operating activities | 80,202 | 95,945 | 94,378 |
Cash flows from investing activities: | |||
Property acquisitions | (221,119) | ||
Property improvements, fixtures and equipment | (51,057) | (54,187) | (37,407) |
Office computers and furniture | (119) | (83) | |
Acquired real estate leases | (51,509) | ||
Investment in non-consolidated REITs | 74,931 | ||
Distributions in excess of earnings from non-consolidated REITs | 710 | 1,396 | 1,023 |
Investment in related party mortgage loan receivable | (3,000) | ||
Repayment of related party mortgage receivable | 1,060 | 10,060 | 39,861 |
Proceeds received on sales of real estate assets | 37,756 | 27,262 | |
Net cash provided by (used in) investing activities | 25,644 | (5,094) | (244,972) |
Cash flows from financing activities: | |||
Distributions to stockholders | (49,326) | (81,496) | (77,481) |
Proceeds from equity offering | 83,511 | ||
Offering costs | (609) | ||
Borrowings under bank note payable | 38,000 | 75,000 | 175,000 |
Repayments of bank note payable | (91,000) | (277,000) | (185,000) |
Borrowing of Series A & Series B Senior Notes | 200,000 | ||
Borrowing of term loan payable | 150,000 | ||
Deferred financing costs | (2,162) | (6,902) | (3,647) |
Net cash provided by (used in) financing activities | (104,488) | (90,398) | 141,774 |
Net increase in cash, cash equivalents and restricted cash | 1,358 | 453 | (8,820) |
Cash, cash equivalents and restricted cash, beginning of year | 9,819 | 9,366 | 18,186 |
Cash, cash equivalents and restricted cash, end of period | 11,177 | 9,819 | 9,366 |
Cash paid for: | |||
Interest | 35,885 | 29,969 | 23,896 |
Taxes | 485 | 584 | 490 |
Non-cash investing and financing activities: | |||
Accrued costs for purchases of real estate assets | $ 7,361 | $ 5,140 | $ 5,230 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2018 | |
Organization | |
Organization | 1. Organization Franklin Street Properties Corp. (“FSP Corp.” or the “Company”), holds, directly and indirectly, 100% of the interest in FSP Investments LLC, FSP Property Management LLC, FSP Holdings LLC and FSP Protective TRS Corp. FSP Property Management LLC provides asset management and property management services. The Company also has a non-controlling common stock interest in three corporations organized to operate as real estate investment trusts (“REIT”). Collectively, the three REITs are referred to as the “Sponsored REITs”. As of December 31, 2018, the Company owned and operated a portfolio of real estate consisting of 32 operating properties, three redevelopment properties, three managed Sponsored REITs and held four promissory notes secured by mortgages on real estate owned by Sponsored REITs, including two mortgage loans and two revolving lines of credit. From time-to-time, the Company may acquire real estate or make additional secured loans. The Company may also pursue, on a selective basis, the sale of its properties in order to take advantage of the value creation and demand for its properties, or for geographic or property specific reasons. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Significant Accounting Policies | |
Significant Accounting Policies | 2. Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements include all of the accounts of the Company and its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Estimates and Assumptions The Company prepares its financial statements and related notes in conformity with generally accepted accounting principles in the United States of America (“GAAP”). These principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates in the consolidated financial statements include the allowance for doubtful accounts, purchase price allocations, impairment considerations, useful lives of fixed assets and the valuation of derivatives. Investments in non-consolidated REITs The Company has a non-controlling common stock interest in three Sponsored REITs and had a non-controlling preferred stock interest in two additional Sponsored REITs, both of which were liquidated during 2018. The Company exercised influence over, but did not control these entities and investments were accounted for using the equity method. Under the equity method of accounting, the Company's cost basis is adjusted by its share of the Sponsored REITs' earnings or losses. Equity in earnings or losses of Sponsored REITs were not recognized to the extent that the investment balance would become negative and distributions received were recognized as income once the investment balance was reduced to zero. The equity investments in Sponsored REITS were reviewed for impairment each reporting period. The Company recorded impairment charges when events or circumstances indicated a decline in the fair value below the carrying value of the investment had occurred and such decline was other-than-temporary. On December 27, 2007, the Company purchased 965.75 preferred shares (approximately 43.7%) of a Sponsored REIT, FSP 303 East Wacker Drive Corp. (“East Wacker”), for $82,813,000. The Company agreed to vote its shares in any matter presented to a vote by the stockholders of East Wacker in the same proportion as shares voted by other stockholders of East Wacker. The investment in East Wacker was accounted for under the equity method. On September 24, 2018, the property owned by East Wacker was sold and, thereafter, East Wacker declared and issued a liquidating distribution for its preferred shareholders. On May 29, 2009, the Company purchased 175.5 preferred shares (approximately 27.0%) of a Sponsored REIT, FSP Grand Boulevard Corp. (“Grand Boulevard”), for $15,049,000. The Company agreed to vote its shares in any matter presented to a vote by the stockholders of Grand Boulevard in the same proportion as shares voted by other stockholders of Grand Boulevard. The investment in Grand Boulevard was accounted for under the equity method. On July 19, 2018, the property owned by Grand Boulevard was sold and, thereafter, Grand Boulevard declared and issued a liquidating distribution for its preferred shareholders. Real Estate and Depreciation Real estate assets are stated at cost less accumulated depreciation. If the Company determines that impairment has occurred, the affected assets are reduced to their fair value. The Company allocates the value of real estate acquired among land, buildings and identified intangible assets or liabilities. Costs related to land, building and improvements are capitalized. Typical capital items include new roofs, site improvements, various exterior building improvements and major interior renovations. Costs incurred in connection with leasing (primarily tenant improvements and leasing commissions) are capitalized and amortized over the lease period. Routine replacements and ordinary maintenance and repairs that do not extend the life of the asset are expensed as incurred. Funding for repairs and maintenance items typically is provided by cash flows from operating activities. Depreciation is computed using the straight-line method over the assets’ estimated useful lives as follows: Category Years Commercial buildings 39 Building improvements 15 - 39 Fixtures and equipment 3 - 7 The Company reviews its properties to determine if their carrying amounts will be recovered from future operating cash flows if certain indicators of impairment are identified at those properties. The evaluation of anticipated cash flows is highly subjective and is based in part on assumptions regarding future occupancy, rental rates and capital requirements that could differ materially from actual results in future periods. Since cash flows are considered on an undiscounted basis in the analysis that the Company conducts to determine whether an asset has been impaired, the Company’s strategy of holding properties over the long term directly decreases the likelihood of recording an impairment loss. If the Company’s strategy changes or market conditions otherwise dictate an earlier sale date, an impairment loss may be recognized. Acquired Real Estate Leases and Amortization The Company recorded the value of acquired real estate leases as a result of three acquisitions in 2016 and one acquisition in 2015. Acquired real estate leases represent costs associated with acquiring an in-place lease (i.e., the market cost to execute a similar lease, including leasing commission, tenant improvements, legal, vacancy and other related costs) and the value relating to leases with rents above the market rate. Amortization is computed using the straight-line method over the term of the leases, which range from 31 months to 176 months. Amortization of these combined components was approximately $26,925,000, $38,970,000 and $36,854,000 for the years ended December 31, 2018, 2017 and 2016, respectively. Amortization related to costs associated with acquiring an in-place lease is included in depreciation and amortization on the consolidated statements of income. Amortization related to leases with rents above the market rate is offset against the rental revenue in the consolidated statements of income. The estimated annual amortization expense for the five years and thereafter following December 31, 2018 is as follows: (in thousands) December 31, 2019 $ 18,179 2020 12,777 2021 9,083 2022 5,503 2023 4,372 2024 and thereafter 9,680 Acquired Unfavorable Real Estate Leases and Amortization The Company recorded the value of acquired unfavorable leases as a result three acquisitions in 2016 and one acquisition in 2015. Acquired unfavorable real estate leases represent the value relating to leases with rents below the market rate. Amortization is computed using the straight-line method over the term of the leases, which range from 32 months to 176 months. Amortization expense was approximately $2,011,000, $3,117,000 and $3,292,000 for the years ended December 31, 2018, 2017 and 2016, respectively. Amortization related to leases with rents below the market rate is included with rental revenue in the consolidated statements of income. The estimated annual amortization for the five years and thereafter following December 31, 2018 is as follows: (in thousands) December 31, 2019 $ 1,244 2020 931 2021 603 2022 329 2023 223 2024 and thereafter 465 Asset Held For Sale Classification of a property as held for sale typically occurs upon the execution of a purchase and sale agreement and belief by management that the sale or disposition is probable of occurrence within one year. Upon determining that a property was held for sale, the Company discontinues depreciating the property and reflects the property in its consolidated balance sheet at the lower of its carrying amount or fair value less the cost to sell. The Company presents the property held for sale on its consolidated balance sheet as “Asset held for sale”. The Company reports the results of operations of its properties sold or held for sale in its consolidated statements of income through the date of sale. Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statement of cash flows. December 31, December 31, (in thousands) 2018 2017 Cash and cash equivalents $ 11,177 $ 9,773 Restricted cash — 46 Total cash, cash equivalents and restricted cash $ 11,177 $ 9,819 Restricted Cash Restricted cash consists of tenant security deposits, which are required by law in some states or by contractual agreement to be kept in a segregated account, and escrows arising from property sales. Tenant security deposits are refunded when tenants vacate, provided that the tenant has not damaged the property. Cash held in escrow is paid when the related issue is resolved. Restricted cash also may include funds segregated for specific tenant improvements per lease agreements. Tenant Rent Receivables Tenant rent receivables are expected to be collected within one year. The Company provides an allowance for doubtful accounts based on its estimate of a tenant’s ability to make future rent payments. The computation of this allowance is based in part on the tenants’ payment history and current credit status. Related Party Mortgage Loan Receivable Management monitors and evaluates the secured loans compared to the expected performance, cash flow and value of the underlying real estate and has not experienced a loss on these loans to date. Concentration of Credit Risks Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash investments, derivatives and accounts receivable. The Company maintains its cash balances principally in two banks which the Company believes to be creditworthy. The Company periodically assesses the financial condition of the banks and believes that the risk of loss is minimal. Cash balances held with various financial institutions frequently exceed the insurance limit of $250,000 provided by the Federal Deposit Insurance Corporation. The derivatives that we have are from two interest rate swap agreements that are discussed in Note 6. The Company performs ongoing credit evaluations of our tenants and requires certain tenants to provide security deposits or letters of credit. Though these security deposits and letters of credit are insufficient to meet the total value of a tenant’s lease obligation, they are a measure of good faith and a source of funds to offset the economic costs associated with lost rent and the costs associated with re-tenanting the space. The Company has no single tenant which accounts for more than 10% of its annualized rent. Financial Instruments The Company estimates that the carrying values of cash and cash equivalents, restricted cash, receivables, prepaid expenses, accounts payable and accrued expenses, accrued compensation, and tenant security deposits approximate their fair values based on their short-term maturity and the bank note and term loans payable approximate their fair values as they bear interest at variable interest rates. Straight-line Rent Receivable Certain leases provide for fixed rent increases over the term of the lease. Rental revenue is recognized on a straight-line basis over the related lease term; however, billings by the Company are based on the lease agreements. Straight-line rent receivable, which is the cumulative revenue recognized in excess of amounts billed by the Company, was $54,006,000 and $53,194,000 at December 31, 2018 and 2017, respectively. The Company provides an allowance for doubtful accounts based on its estimate of a tenant’s ability to make future rent payments. The computation of this allowance is based in part on the tenants’ payment history and current credit status. The reserve balance was not changed during 2018, 2017 or 2016, based on such analysis. Deferred Leasing Commissions Deferred leasing commissions represent direct and incremental external leasing costs incurred in the leasing of commercial space. These costs are capitalized and are amortized on a straight-line basis over the terms of the related lease agreements. Amortization expense was approximately $8,471,000, $6,919,000 and $6,272,000 for the years ended December 31, 2018, 2017 and 2016, respectively. The estimated annual amortization for the five years and thereafter following December 31, 2018 is as follows: (in thousands) December 31, 2019 $ 8,644 2020 7,891 2021 7,055 2022 5,770 2023 4,888 2024 and thereafter 13,344 Common Share Repurchases The Company recognizes the gross cost of the common shares it repurchases as a reduction in stockholders’ equity using the treasury stock method. Maryland law does not recognize a separate treasury stock account but provides that shares repurchased are classified as authorized but unissued shares. Accordingly, the Company reduces common stock for the par value and the excess of the purchase price over the par value is a reduction to additional paid-in capital. Revenue Recognition Rental Revenue - The Company has retained substantially all of the risks and benefits of ownership of the Company’s commercial properties and accounts for its leases as operating leases. Rental revenue includes income from leases, certain reimbursable expenses, straight-line rent adjustments and other income associated with renting the property. Rental income from leases, which includes rent concessions (including free rent and other lease inducements) and scheduled increases in rental rates during the lease term, is recognized on a straight-line basis. The Company does not have any significant percentage rent arrangements with its commercial property tenants. Reimbursable expenses are included in rental income in the period earned. A summary of rental revenue is shown in the following table: Year Ended December 31, (in thousands) 2018 2017 2016 Income from leases $ 202,127 $ 205,690 $ 192,055 Reimbursable expenses 61,475 58,777 49,821 Straight-line rent adjustment (381) 1,767 1,977 Amortization of favorable and unfavorable leases 556 1,031 496 $ 263,777 $ 267,265 $ 244,349 Related Party and Other Revenue - Property and asset management fees, interest income on loans and other income are recognized when the related services are performed and the earnings process is complete. Segment Reporting The Company is a REIT focused on real estate investments primarily in the office market and currently operates in only one segment: real estate operations. Income Taxes Taxes on income for the years ended December 31, 2018, 2017 and 2016 represent taxes incurred by FSP Protective TRS Corp, which is a taxable REIT subsidiary and the State of Texas franchise tax applicable to FSP Corp., which is classified as an income tax for reporting purposes. Net Income Per Share Basic net income per share is computed by dividing net income by the weighted average number of shares outstanding during the period. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue shares were exercised or converted into shares. There were no potential dilutive shares outstanding at December 31, 2018, 2017, and 2016. The denominator used for calculating basic and diluted net income per share was 107,231,000, 107,231,000, and 102,843,000 for the years ended December 31, 2018, 2017, and 2016, respectively. Derivative Instruments The Company recognizes derivatives on the consolidated balance sheets at fair value. Derivatives that do not qualify, or are not designated as hedge relationships, must be adjusted to fair value through income. Derivative instruments designated in a hedge relationship to mitigate exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Cash flow hedges are accounted for by recording the fair value of the derivative instrument on the consolidated balance sheets as either an asset or liability. To the extent hedges are effective, a corresponding amount, adjusted for swap payments, is recorded in accumulated other comprehensive income within stockholders’ equity. Amounts are then reclassified from accumulated other comprehensive income to the income statement in the period or periods the hedged forecasted transaction affects earnings. Ineffectiveness, if any, is recorded in the income statement. The Company reviews the effectiveness of each hedging transaction, which involves estimating future cash flows, at least quarterly. Derivative instruments designated in a hedge relationship to mitigate exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. The Company currently has no fair value hedges outstanding. Fair values of derivatives are subject to significant variability based on changes in interest rates and counterparty credit risk. The results of such variability could be a significant increase or decrease in our derivative assets, derivative liabilities, book equity, and/or earnings. Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There is also an established fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value. Financial assets and liabilities recorded on the consolidated balance sheets at fair value are categorized based on the inputs to the valuation techniques as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, which is typically based on an entity’s own assumptions, as there is little, if any, related market activity or information. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability including credit risk, which was not significant to the overall value. These inputs were considered and applied to the Company’s derivative, and Level 2 inputs were used to value the interest rate swap. Subsequent Events In preparing these consolidated financial statements the Company evaluated events that occurred through the date of issuance of these financial statements for potential recognition or disclosure. Recent Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers (“Topic 606”), which provides guidance for revenue recognition. The standard’s core principle is that a company will recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. This update is effective for interim and annual reporting periods beginning after December 15, 2017. A substantial portion of our revenue consists of rental income from leasing arrangements, which is specifically excluded from Topic 606. The Company adopted Topic 606 using the modified retrospective approach effective January 1, 2018 and the adoption did not have an impact on the amount or timing of revenue recognition in the consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016-02”), in July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases and ASU No. 2018-11, Leases (Topic 842): Targeted Improvements and in December 2018, the FASB issued ASU No. 2018-20 Leases (Topic 842), Narrow-Scope Improvements for Lessors. ASU 2016-02 requires lessees to establish a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying asset for the lease term on their balance sheets. Lessees will continue to recognize lease expenses on their income statements in a manner similar to current accounting. The guidance also eliminates current real estate-specific provisions for all entities. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. This new standard was effective for annual periods beginning after December 15, 2018, and interim periods thereafter with early adoption permitted. The Company adopted these standards on January 1, 2019 and applied the package of practical expedients that allows an entity to not reassess (i) whether any expired or existing contracts are or contain leases, (ii) lease classification for any expired or existing leases and (iii) initial direct costs for any expired or existing leases. Additionally, our leases met the criteria in ASU No. 2018-11 to not separate non-lease components from the related lease component, therefore the accounting for these leases remained largely unchanged from the previous standard. We applied the optional transition method in ASU No. 2018-11, which allows entities to initially apply the new leases standard at the adoption date. The adoption of this standard in 2019 will increase the Company’s assets and liabilities by approximately $2.2 million for the addition of right-of-use assets and lease liabilities related to an operating lease for office space in which the Company is a tenant. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which requires that entities use a new forward looking “expected loss” model that generally will result in the earlier recognition of allowance for credit losses. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is currently assessing the potential impact the adoption of ASU 2016-13 will have on its consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which clarifies how reporting entities should present and classify certain cash receipts and cash payments in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company adopted this guidance during the first quarter of 2018 and applied it retrospectively. Pursuant to the adoption, the Company elected the cumulative earnings approach related to the distributions received from its equity method investments. The adoption did not have an impact on the Company’s consolidated statements of cash flows. In November 2016, the FASB issued ASU No. 2016-18, Restricted Cash (“ASU 2016-18”), which clarifies how reporting entities should present restricted cash and restricted cash equivalents. Reporting entities will show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. The new standard requires a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheets. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Upon the adoption of ASU 2016-18, the Company reconciled both cash and cash equivalents and restricted cash and restricted cash equivalents, whereas under the previous guidance the Company explained the changes during the period for cash and cash equivalents only. Prior periods were retrospectively adjusted to conform to the current period’s presentation. In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business (“ASU 2017-01”), which provides additional guidance on evaluating whether transactions should be accounted for as an acquisition (or disposal) of assets of a business. The update defines three requirements for a set of assets and activities (collectively referred to as a “set”) to be considered a business: inputs, processes and outputs. ASU 2017-01 is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. This update will be applied prospectively to any transactions occurring within the period of adoption. Certain property acquisitions which under previous guidance would have been accounted for as business combinations will be accounted for as acquisitions of assets. In an acquisition of assets, certain acquisition costs are capitalized as opposed to expensed under business combination guidance. In August 2018, the FASB issued No. ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). The ASU is intended to improve the effectiveness of fair value measurement disclosures. ASU 2018-13 is effective for all entities for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. This ASU amends existing fair value measurement disclosure requirements by adding, changing, or removing certain disclosures. ASU 2018-13 will be effective for the Company as of January 1, 2020, and earlier adoption is permitted. The Company is currently reviewing the effect of this ASU to the consolidated financial statements. |
Related Party Transactions and
Related Party Transactions and Investments in Non-Consolidated Entities | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions and Investments in Non-Consolidated Entities | |
Related Party Transactions and Investments in Non-Consolidated Entities | 3. Related Party Transactions and Investments in Non-Consolidated Entities Investment in Sponsored REITs The Company held a common stock interest in 3, 6, and 7 Sponsored REITs at December 31, 2018, 2017 and 2016, respectively. The Company held a non-controlling preferred stock investment in two Sponsored REITs, FSP 303 East Wacker Drive Corp. (“East Wacker”) and FSP Grand Boulevard Corp. (“Grand Boulevard”), which were liquidated during the three months ended September 30, 2018. In December 2007, the Company purchased 965.75 preferred shares or 43.7% of the outstanding preferred shares of East Wacker. On September 24, 2018, the property owned by East Wacker was sold and, thereafter, East Wacker declared and issued a liquidating distribution for its preferred shareholders, from which the Company was entitled to $70.0 million. On September 27, 2018, the Company received $69.0 million in an initial cash distribution. As a result of the sale, the Company recognized a gain on liquidation of $7.1 million. As of December 31, 2018, the Company held a beneficial interest in the East Wacker liquidating trust in the amount of $1.0 million, which is included in other assets in the accompanying consolidated balance sheet. In May 2009, the Company purchased 175.5 preferred shares or 27.0% of the outstanding preferred shares of Grand Boulevard. On July 19, 2018, the property owned by Grand Boulevard was sold and, thereafter, Grand Boulevard declared and issued a liquidating distribution for its preferred shareholders, from which the Company was entitled to $6.2 million. On August 17, 2018, the Company received $5.9 million in an initial cash distribution. As a result of the sale, the Company recognized a loss on liquidation of $0.1 million. As of December 31, 2018, the Company held a beneficial interest in the Grand Boulevard liquidating trust in the amount of $0.3 million, which is included in other assets in the accompanying consolidated balance sheet. Equity in income (loss) of investments in non-consolidated REITs is derived from the Company’s share of income or loss in the operations of those entities and includes gain or loss on liquidation. The Company exercised influence over, but did not control these entities, and investments are accounted for using the equity method. During the year ended December 31, 2018 a property owned by a Sponsored REIT, FSP Centre Pointe V Corp. was sold and, thereafter, liquidating distributions for its preferred shareholders were declared and issued. During the year ended December 31, 2017, a property owned by one Sponsored REIT was sold and, thereafter, liquidating distributions for its preferred shareholders were declared and issued. The Company held a mortgage loan with this entity, which was secured by the property owned by FSP 1441 Main Street Corp. (“1441 Main”). The loan with 1441 Main in the principal amount of $9,000,000 was repaid by the proceeds of the sale. During the year ended December 31, 2016, properties owned by two Sponsored REITs were sold and, thereafter, liquidating distributions for their preferred shareholders were declared and issued. The Company held a mortgage loan with one of these entities, which was secured by the property owned by FSP 385 Interlocken Development Corp. (“385 Interlocken”). The loan with 385 Interlocken in the principal amount of $37,500,000 was repaid by the proceeds of the sale. Equity in income (loss) of investment in non-consolidated REITs: The following table includes equity in losses of investments in non-consolidated REITs: Year Ended December 31, (in thousands) 2018 2017 2016 Equity in income (loss) of East Wacker $ 7,209 $ (428) $ (563) Equity in (loss) of Grand Boulevard (107) (657) (268) Impairment charge (309) (2,519) — $ 6,793 $ (3,604) $ (831) Equity in income (loss) of East Wacker was derived from the Company’s preferred stock investment in the entity. In December 2007, the Company purchased 965.75 preferred shares or 43.7% of the outstanding preferred shares, of East Wacker. On September 24, 2018, the property owned by East Wacker was sold at a gain, which is included in equity in income (loss) of non-consolidated REITs on the consolidated statements of income. Equity in loss of Grand Boulevard is derived from the Company’s preferred stock investment in the entity. In May 2009, the Company purchased 175.5 preferred shares or 27.0% of the outstanding preferred shares of Grand Boulevard. On July 19, 2018, the property owned by Grand Boulevard was sold at a loss, which is included in equity in income (loss) of non-consolidated REITs on the consolidated statements of income. At June 30, 2018 and December 31, 2017, the Company recognized impairment charges of $309,000 and $2,519,000, respectively, which represented the other-than-temporary decline in the fair value below the carrying value of one of the Company’s investments in non-consolidated REITs. The Company estimated the fair value of its equity investment by estimating the fair value of the property, less estimated costs to sell using a purchase and sale agreement to purchase the property made by third parties (Level 3 inputs, as there is no active market). The following table includes distributions received from non-consolidated REITs: Year Ended December 31, (in thousands) 2018 2017 2016 Distributions from East Wacker $ 657 $ 1,289 $ 916 Distributions from Grand Boulevard 53 107 107 $ 710 $ 1,396 $ 1,023 Non-consolidated REITs The operating data below for 2018 includes the operations of the 6 Sponsored REITs the company held an interest in during the year and the 3 Sponsored REITs the Company held an interest in as of December 31, 2018. The operating data below for 2017 includes the operations of the 7 Sponsored REITs the company held an interest in during the year and the 6 Sponsored REITs the Company held an interest in as of December 31, 2017. The operating data below for 2016 includes the operations of the 9 Sponsored REITs the Company held an interest in during the year and the 7 Sponsored REITs the Company held an interest in as of December 31, 2016. Summarized financial information for the Sponsored REITs is as follows: December 31, December 31, (in thousands) 2018 2017 Balance Sheet Data (unaudited): Real estate, net $ 97,034 $ 312,861 Other assets 18,532 74,076 Total liabilities (75,382) (151,092) Shareholders’ equity $ 40,184 $ 235,845 For the Year Ended December 31, (in thousands) 2018 2017 2016 Operating Data (unaudited): Rental revenues $ 40,382 $ 53,249 $ 54,257 Other revenues 1 7 39 Operating and maintenance expenses (20,584) (27,495) (29,186) Depreciation and amortization (13,077) (18,395) (18,274) Interest expense (6,869) (8,281) (8,481) Gain (loss) on sale 17,095 (702) 26,397 Net income (loss) $ 16,948 $ (1,617) $ 24,752 Management fees and interest income from loans: Asset management fees range from 1% to 5% of collected rents, and the applicable contracts are cancelable with 30 day notice. Asset management fee income from non-consolidated entities amounted to approximately $450,000, $598,000 and $631,000 for the years ended December 31, 2018, 2017 and 2016, respectively. From time to time the Company may make secured loans (“Sponsored REIT Loans”) to Sponsored REITs in the form of mortgage loans or revolving lines of credit to fund construction costs, capital expenditures, leasing costs and for other purposes. The Company reviews Sponsored REIT loans for impairment each reporting period. A loan is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts recorded on the balance sheet. The Company applies normal loan review and underwriting procedures (as may be implemented or modified from time to time) in making that judgment. None of the Sponsored REIT loans have been impaired. The Company anticipates that each Sponsored REIT Loan will be repaid at maturity or earlier from refinancing, long term financings of the underlying properties, cash flows from the underlying properties or some other capital event. Each Sponsored REIT Loan is secured by a mortgage on the underlying property and has a term of approximately one to three years. Except for two mortgage loans which bear interest at a fixed rate, advances under each Sponsored REIT Loan bear interest at a rate equal to the 30-day LIBOR rate plus an agreed upon amount of basis points and require a 50 basis point draw fee. The following is a summary of the Sponsored REIT Loans outstanding as of December 31, 2018: Maximum Amount Interest (dollars in thousands, except footnotes) Maturity Amount Drawn at Interest Draw Rate at Sponsored REIT Location Date of Loan 31-Dec-18 Rate (1) Fee (2) 31-Dec-18 Secured revolving lines of credit FSP Satellite Place Corp. Duluth, GA 31-Dec-19 $ 5,500 $ 1,060 L+ 4.4 % 0.5 % 6.78 % FSP Energy Tower I Corp. Houston, TX 30-Jun-19 20,000 15,600 L+ 5.0 % 0.5 % 7.38 % Mortgage loan secured by property FSP Monument Circle LLC (3) (4) Indianapolis, IN 6-Dec-20 21,000 21,000 7.19 % n/a 7.19 % FSP Energy Tower I Corp. (5) Houston, TX 30-Jun-19 33,000 33,000 6.41 % n/a 6.41 % $ 79,500 $ 70,660 (1) The interest rate is 30-day LIBOR rate plus the additional rate indicated, otherwise a fixed rate. (2) The draw fee is a percentage of each new advance, and is paid at the time of each new draw. (3) This loan was extended on December 6, 2018. (4) This mortgage loan includes an origination fee of $164,000 and an exit fee of $38,000 when repaid by the borrower. (5) This mortgage loan includes an annual extension fee of $108,900 paid by the borrower. The Company recognized interest income and fees from the Sponsored REIT Loans of approximately $4,610,000, $4,687,000 and $4,834,000 for the years ended December 31, 2018, 2017 and 2016, respectively. |
Bank Note Payable, Term Note Pa
Bank Note Payable, Term Note Payable and Private Placements | 12 Months Ended |
Dec. 31, 2018 | |
Bank Note Payable and Term Note Payable | |
Bank Note Payable and Term Note Payable | 4. Bank Note Payable, Term Note Payable and Private Placements JPM Term Loan On August 2, 2018, the Company entered into an Amended and Restated Credit Agreement with JPMorgan Chase Bank, N.A., as administrative agent and lender (“JPMorgan”), and the other lending institutions party thereto (the “JPM Credit Agreement”), which provides a single unsecured bridge loan in the aggregate principal amount of $150 million (the “JPM Term Loan”) that remains fully advanced and outstanding. The JPM Term Loan matures on November 30, 2021. The JPM Term Loan was previously evidenced by a Credit Agreement, dated November 30, 2016, among the Company, JPMorgan, as administrative agent and lender, and the other lending institutions party thereto, as amended by a First Amendment, dated October 18, 2017. The JPM Term Loan bears interest at either (i) a number of basis points over the Eurodollar Rate depending on the Company’s credit rating (125.0 basis points over the Eurodollar Rate at December 31, 2018) or (ii) a number of basis points over the base rate depending on the Company’s credit rating (25.0 basis points over the base rate at December 31, 2018). The actual margin over the Eurodollar Rate or base rate is determined based on the Company’s credit rating pursuant to the following grid: EURODOLLAR CREDIT RATE BASE RATE LEVEL RATING MARGIN MARGIN I A- / A3 (or higher) 85.0 bps — bps II BBB+ / Baa1 90.0 bps — bps III BBB / Baa2 100.0 bps — bps IV BBB- / Baa3 125.0 bps 25.0 bps V <BBB- / Baa3 165.0 bps 65.0 bps For purposes of the JPM Term Loan, base rate means, for any day, a fluctuating rate per annum equal to the greatest of: (i) JPMorgan Chase Bank, N.A.’s prime rate in effect on such day, (ii) the greater of the Federal Funds Rate or the overnight bank funding rate in effect on such day, plus 0.50% (but no less than zero), and (iii) the one month Adjusted LIBOR based rate for a such day plus 1.00%. For purposes of the JPM Term Loan, the Eurodollar Rate means, for any interest period, the LIBOR rate for a period equal in length to the applicable interest period multiplied by the statutory reserve rate. As of December 31, 2018, the Company’s credit rating from Moody’s Investors Service was Baa3. Based upon the Company’s credit rating, as of December 31, 2018, the interest rate on the JPM Term Loan was 3.63% per annum. The weighted average interest rate on the JPM Term Loan during the year ended December 31, 2018 was approximately 3.33% per annum. The weighted average interest rate on the JPM Term Loan during the year ended December 31, 2017 was approximately 2.45% per annum. The JPM Credit Agreement contains customary affirmative and negative covenants for credit facilities of this type, including limitations with respect to indebtedness, liens, investments, mergers and acquisitions, disposition of assets, changes in business, certain restricted payments, the requirement to have subsidiaries provide a guaranty in the event that they incur recourse indebtedness and transactions with affiliates. The JPM Credit Agreement also contains financial covenants that require the Company to maintain a minimum tangible net worth, a minimum fixed charge coverage ratio, a maximum secured leverage ratio, a maximum leverage ratio, a maximum unencumbered leverage ratio, and minimum unsecured interest coverage. The JPM Credit Agreement provides for customary events of default with corresponding grace periods, including failure to pay any principal or interest when due, certain cross defaults and a change in control of the Company (as defined in the JPM Credit Agreement). In the event of a default by the Company, the administrative agent may, and at the request of the requisite number of lenders shall, declare all obligations under the JPM Credit Agreement immediately due and payable, and enforce any and all rights of the lenders or administrative agent under the JPM Credit Agreement and related documents. For certain events of default related to bankruptcy, insolvency, and receivership, all outstanding obligations of the Company will become immediately due and payable. The Company was in compliance with the JPM Term Loan financial covenants as of December 31, 2018. The Company used the net proceeds of the JPM Term Loan to acquire the property located at 600 17th Street, Denver, Colorado on December 1, 2016 and for other general business purposes. BMO Term Loan On September 27, 2018, the Company entered into a Second Amended and Restated Credit Agreement with the lending institutions party thereto and Bank of Montreal (“BMO”), as administrative agent (the “BMO Credit Agreement”). The BMO Credit Agreement provides for a single, unsecured term loan borrowing in the amount of $220 million (the “BMO Term Loan”) that remains fully advanced and outstanding. The BMO Term Loan consists of a $55 million tranche A term loan and a $165 million tranche B term loan. The tranche A term loan matures on November 30, 2021 and the tranche B term loan matures on January 31, 2024. The BMO Credit Agreement also includes an accordion feature that allows up to $100 million of additional loans, subject to receipt of lender commitments and satisfaction of certain customary conditions. The BMO Term Loan was previously evidenced by an Amended and Restated Credit Agreement, dated October 29, 2014, among the Company, BMO, as administrative agent and lender, and the other lending institutions party thereto, as amended by a First Amendment, dated July 21, 2016, and a Second Amendment, dated October 18, 2017. The BMO Term Loan bears interest at either (i) a number of basis points over LIBOR depending on the Company’s credit rating (125 basis points over LIBOR at December 31, 2018) or (ii) a number of basis points over the base rate depending on the Company’s credit rating (25 basis points over the base rate at December 31, 2018). The actual margin over LIBOR rate or base rate is determined based on the Company’s credit rating pursuant to the following grid: Credit LIBOR Rate Base Rate Level Rating Margin Margin I A- / A3 (or higher) 85.0 bps — bps II BBB+ / Baa1 90.0 bps — bps III BBB / Baa2 100.0 bps — bps IV BBB- / Baa3 125.0 bps 25.0 bps V <BBB- / Baa3 165.0 bps 65.0 bps For purposes of the BMO Term Loan, base rate means, for any day, a fluctuating rate per annum equal to the highest of: (i) the bank’s prime rate for such day, (ii) the Federal Funds Rate for such day, plus 0.50%, and (iii) the one month LIBOR based rate for such day plus 1.00%. As of December 31, 2018, the Company’s credit rating from Moody’s Investors Service was Baa3. Although the interest rate on the BMO Term Loan is variable under the BMO Credit Agreement, the Company fixed the base LIBOR interest rate by entering into an interest rate swap agreement. On August 26, 2013, the Company entered into an ISDA Master Agreement with Bank of Montreal that fixed the base LIBOR interest rate on the BMO Term Loan at 2.32% per annum until August 26, 2020. Accordingly, based upon the Company’s credit rating, as of December 31, 2018, the effective interest rate on the BMO Term Loan was 3.57% per annum. The BMO Credit Agreement contains customary affirmative and negative covenants for credit facilities of this type, including limitations with respect to indebtedness, liens, investments, mergers and acquisitions, disposition of assets, changes in business, certain restricted payments, the requirement to have subsidiaries provide a guaranty in the event that they incur recourse indebtedness and transactions with affiliates. The BMO Credit Agreement also contains financial covenants that require the Company to maintain a minimum tangible net worth, a maximum leverage ratio, a maximum secured leverage ratio, a minimum fixed charge coverage ratio, a maximum unencumbered leverage ratio, and minimum unsecured interest coverage. The BMO Credit Agreement provides for customary events of default with corresponding grace periods, including failure to pay any principal or interest when due, certain cross defaults and a change in control of the Company (as defined in the BMO Credit Agreement). In the event of a default by the Company, the administrative agent may, and at the request of the requisite number of lenders shall, declare all obligations under the BMO Credit Agreement immediately due and payable, terminate the lenders’ commitments to make loans under the BMO Credit Agreement, and enforce any and all rights of the lenders or administrative agent under the BMO Credit Agreement and related documents. For certain events of default related to bankruptcy, insolvency, and receivership, the commitments of lenders will be automatically terminated and all outstanding obligations of the Company will become immediately due and payable. The Company was in compliance with the BMO Term Loan financial covenants as of December 31, 2018. The Company may use the proceeds of the loans under the BMO Credit Agreement to finance the acquisition of real properties and for other permitted investments; to finance investments associated with Sponsored REITs, to refinance or retire indebtedness and for working capital and other general business purposes, in each case to the extent permitted under the BMO Credit Agreement. BAML Credit Facility On July 21, 2016, the Company entered into a First Amendment (the “BAML First Amendment”), and on October 18, 2017, the Company entered into a Second Amendment (the “BAML Second Amendment”), to the Second Amended and Restated Credit Agreement dated October 29, 2014 among the Company, the lending institutions party thereto and Bank of America, N.A., as administrative agent, L/C Issuer and Swing Line Lender (as amended by the BAML First Amendment and the BAML Second Amendment, the “BAML Credit Facility”) that continued an existing unsecured revolving line of credit (the “BAML Revolver”) and extended the maturity of a term loan (the “BAML Term Loan”). BAML Revolver Highlights · The BAML Revolver is for borrowings, at the Company's election, of up to $600 million. Borrowings made pursuant to the BAML Revolver may be revolving loans, swing line loans or letters of credit, the combined sum of which may not exceed $600 million outstanding at any time. · Borrowings made pursuant to the BAML Revolver may be borrowed, repaid and reborrowed from time to time until the initial maturity date of January 12, 2022. The Company has the right to extend the maturity date of the BAML Revolver by two additional six month periods, or until January 12, 2023, upon payment of a fee and satisfaction of certain customary conditions. · The BAML Credit Facility includes an accordion feature that allows for an aggregate amount of up to $500 million of additional borrowing capacity applicable to the BAML Revolver and/or the BAML Term Loan subject to receipt of lender commitments and satisfaction of certain customary conditions. As of December 31, 2018, there were borrowings of $25 million outstanding under the BAML Revolver. The BAML Revolver bears interest at either (i) a margin over LIBOR depending on the Company’s credit rating (1.20% over LIBOR at December 31, 2018) or (ii) a margin over the base rate depending on the Company’s credit rating (0.20% over the base rate at December 31, 2018). The BAML Credit Facility also obligates the Company to pay an annual facility fee in an amount that is also based on the Company’s credit rating. The facility fee is assessed against the total amount of the BAML Revolver, or $600 million (0.25% at December 31, 2018). The actual amount of any applicable facility fee, and the margin over LIBOR rate or base rate is determined based on the Company’s credit rating pursuant to the following grid: Base LIBOR Rate Facility Rate Level Credit Rating Margin Fee Margin I A- / A3 (or higher) 0.825 % 0.125 % 0.000 % II BBB+ / Baa1 0.875 % 0.150 % 0.000 % III BBB / Baa2 1.000 % 0.200 % 0.000 % IV BBB- / Baa3 1.200 % 0.250 % 0.200 % V <BBB- / Baa3 1.550 % 0.300 % 0.550 % For purposes of the BAML Credit Facility, base rate means, for any day, a fluctuating rate per annum equal to the highest of: (i) the bank’s prime rate for such day, (ii) the Federal Funds Rate for such day, plus 0.50%, and (iii) the one month LIBOR based rate for such day plus 1.00%. As of December 31, 2018, the Company’s credit rating from Moody’s Investors Service was Baa3. Based upon the Company’s credit rating, as of December 31, 2018, the interest rate on the BAML Revolver was 3.63% per annum. The weighted average interest rate on all amounts outstanding on the BAML Revolver during the year ended December 31, 2018 was approximately 3.09% per annum. As of December 31, 2017, there were borrowings of $78 million outstanding under the BAML Revolver at a weighted average rate of 2.31% per annum. BAML Term Loan Highlights · The BAML Term Loan is for $400 million. · The BAML Term Loan matures on January 12, 2023. · The BAML Credit Facility includes an accordion feature that allows for an aggregate amount of up to $500 million of additional borrowing capacity applicable to the BAML Revolver and/or the BAML Term Loan subject to receipt of lender commitments and satisfaction of certain customary conditions. · On September 27, 2012, the Company drew down the entire $400 million under the BAML Term Loan and such amount remains fully advanced and outstanding under the BAML Term Loan. The BAML Term Loan bears interest at either (i) a margin over LIBOR depending on the Company’s credit rating (1.35% over LIBOR at December 31, 2018) or (ii) a margin over the base rate depending on the Company’s credit rating (0.35% over the base rate at December 31, 2018). The actual margin over LIBOR rate or base rate is determined based on the Company’s credit rating pursuant to the following grid: LIBOR Rate Base Rate Level Credit Rating Margin Margin I A- / A3 (or higher) 0.900 % 0.000 % II BBB+ / Baa1 0.950 % 0.000 % III BBB / Baa2 1.100 % 0.100 % IV BBB- / Baa3 1.350 % 0.350 % V <BBB- / Baa3 1.750 % 0.750 % For purposes of the BAML Credit Facility, base rate means, for any day, a fluctuating rate per annum equal to the highest of: (i) the bank’s prime rate for such day, (ii) the Federal Funds Rate for such day, plus 0.50%, and (iii) the one month LIBOR based rate for such day plus 1.00%. As of December 31, 2018, the Company’s credit rating from Moody’s Investors Service was Baa3. Although the interest rate on the BAML Credit Facility is variable, the Company fixed the base LIBOR interest rate on the BAML Term Loan by entering into an interest rate swap agreement. On July 22, 2016, the Company entered into ISDA Master Agreements with a group of banks that fixed the base LIBOR interest rate on the BAML Term Loan at 1.12% per annum for the period beginning on September 27, 2017 and ending on September 27, 2021. Accordingly, based upon the Company’s credit rating, as of December 31, 2018, the effective interest rate on the BAML Term Loan was 2.47% per annum. BAML Credit Facility General Information The BAML Credit Facility contains customary affirmative and negative covenants for credit facilities of this type, including limitations with respect to indebtedness, liens, investments, mergers and acquisitions, disposition of assets, changes in business, certain restricted payments, the requirement to have subsidiaries provide a guaranty in the event that they incur recourse indebtedness and transactions with affiliates. The BAML Credit Facility also contains financial covenants that require the Company to maintain a minimum tangible net worth, a maximum leverage ratio, a maximum secured leverage ratio, a minimum fixed charge coverage ratio, a maximum unencumbered leverage ratio, and minimum unsecured interest coverage. The BAML Credit Facility provides for customary events of default with corresponding grace periods, including failure to pay any principal or interest when due, certain cross defaults and a change in control of the Company (as defined in the BAML Credit Facility). In the event of a default by the Company, the administrative agent may, and at the request of the requisite number of lenders shall, declare all obligations under the BAML Credit Facility immediately due and payable, terminate the lenders’ commitments to make loans under the BAML Credit Facility, and enforce any and all rights of the lenders or administrative agent under the BAML Credit Facility and related documents. For certain events of default related to bankruptcy, insolvency, and receivership, the commitments of lenders will be automatically terminated and all outstanding obligations of the Company will become immediately due and payable. The Company was in compliance with the BAML Credit Facility financial covenants as of December 31, 2018. The Company may use the proceeds of the loans under the BAML Credit Facility to finance the acquisition of real properties and for other permitted investments; to finance investments associated with Sponsored REITs, to refinance or retire indebtedness and for working capital and other general business purposes, in each case to the extent permitted under the BAML Credit Facility. Senior Notes On October 24, 2017, the Company entered into a note purchase agreement (the “Note Purchase Agreement”) with the various purchasers named therein (the “Purchasers”) in connection with a private placement of senior unsecured notes. Under the Note Purchase Agreement, the Company agreed to sell to the Purchasers an aggregate principal amount of $200,000,000 of senior unsecured notes consisting of (i) 3.99% Series A Senior Notes due December 20, 2024 in an aggregate principal amount of $116 million (the “Series A Notes”) and (ii) 4.26% Series B Senior Notes due December 20, 2027 in an aggregate principal amount of $84 million (the “Series B Notes,” and, together with the Series A Notes, the “Senior Notes”). On December 20, 2017, the Senior Notes were funded and the proceeds were used to reduce the outstanding balance of the BAML Revolver. The Note Purchase Agreement contains customary financial covenants, including a maximum leverage ratio, a maximum secured leverage ratio, a minimum fixed charge coverage ratio, and a maximum unencumbered leverage ratio. The Note Purchase Agreement also contains restrictive covenants that, among other things, restrict the ability of the Company and its subsidiaries to enter into transactions with affiliates, merge, consolidate, create liens, make certain restricted payments, enter into certain agreements or prepay certain indebtedness. Such financial and restrictive covenants are substantially similar to the corresponding covenants contained in the BAML Credit Facility, the BMO Credit Agreement and the JPM Credit Agreement. The Senior Notes financial covenants require, among other things, the maintenance of a fixed charge coverage ratio of at least 1.50; a maximum leverage ratio and an unsecured leverage ratio of no more than 60% (65% if there were a significant acquisition for a short period of time). In addition, the Note Purchase Agreement provides that the Note Purchase Agreement will automatically incorporate additional financial and other specified covenants (such as limitations on investments and distributions) that are effective from time to time under the existing credit agreements, other material indebtedness or certain other private placements of debt of the Company and its subsidiaries. The Note Purchase Agreement contains customary events of default, including payment defaults, cross defaults with certain other indebtedness, breaches of covenants and bankruptcy events. In the case of an event of default, the Purchasers may, among other remedies, accelerate the payment of all obligations. |
Financial Instruments_ Derivati
Financial Instruments: Derivatives and Hedging | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments: Derivatives and Hedging | |
Financial Instruments: Derivatives and Hedging | 5. Financial Instruments: Derivatives and Hedging On July 22, 2016, the Company fixed the interest rate for the period beginning on September 27, 2017 and ending on September 27, 2021 on the BAML Term Loan with multiple interest rate swap agreements (the “2017 Interest Rate Swap”). On August 26, 2013, the Company fixed the interest rate until August 26, 2020 on the BMO Term Loan with an interest rate swap agreement (the “BMO Interest Rate Swap”). The variable rates that were fixed under the 2017 Interest Rate Swap and the BMO Interest Rate Swap are described in Note 4. The 2017 Interest Rate Swap and the BMO Interest Rate Swap qualify as cash flow hedges and have been recognized on the consolidated balance sheet at fair value. If a derivative qualifies as a hedge, depending on the nature of the hedge, changes in the fair value of the derivative will either be offset against the change in fair value of the hedged asset, liability, or firm commitment through earnings, or recognized in other comprehensive income until the hedged item is recognized in earnings. The ineffective portion of a derivative’s change in fair value will be immediately recognized in earnings, which may increase or decrease reported net income and stockholders’ equity prospectively, depending on future levels of interest rates and other variables affecting the fair values of derivative instruments and hedged items, but will have no effect on cash flows. The following table summarizes the notional and fair value of our derivative financial instruments at December 31, 2018. The notional value is an indication of the extent of our involvement in these instruments at that time, but does not represent exposure to credit, interest rate or market risks. Notional Strike Effective Expiration Fair (in thousands) Value Rate Date Date Value 2017 Interest Rate Swap $ 400,000 1.12 % Sep-17 Sep-21 $ 14,100 BMO Interest Rate Swap $ 220,000 2.32 % Aug-13 Aug-20 $ 665 On December 31, 2018, the 2017 Interest Rate Swap was reported an asset at its fair value of approximately $14.1 million and the BMO Interest Rate Swap was reported as an asset at its fair value of approximately $0.7 million. These are included in other assets: derivative asset on the consolidated balance sheet at December 31, 2018. Offsetting adjustments are reported as unrealized gains or losses on derivative financial instruments in accumulated other comprehensive income of $2.6 million. During the year ended December 31, 2018, $2.7 million was reclassified out of other comprehensive income and against interest expense. Over time, the unrealized gains and losses held in accumulated other comprehensive income will be reclassified into earnings as an increase or reduction to interest expense in the same periods in which the hedged interest payments affect earnings. We estimate that approximately $5.5 million of the current balance held in accumulated other comprehensive income will be reclassified into earnings within the next 12 months. We are hedging the exposure to variability in future cash flows for forecasted transactions in addition to anticipated future interest payments on existing debt. The fair value of the Company’s derivative instruments are determined using the net discounted cash flows of the expected cash flows of the derivative based on the market based interest rate curve and are adjusted to reflect credit or nonperformance risk. The risk is estimated by the Company using credit spreads and risk premiums that are observable in the market. These financial instruments were classified within Level 2 of the fair value hierarchy and were classified as an asset or liability on the consolidated balance sheets. The Company’s derivatives are recorded at fair value in other liabilities: derivative liability in the consolidated balance sheets and the effective portion of the derivatives’ fair value is recorded to other comprehensive income in the consolidated statements of other comprehensive income (loss) and the ineffective portion of the derivatives’ fair value is recognized directly into earnings as other in the consolidated statements of income. The interest rate swaps effectively fix the interest rate on the BAML Term Loan and BMO Term Loan; however, prior to October 18, 2017, there was no floor on the variable interest rate of the swap whereas the BAML Term Loan and BMO Term Loan were subject to a zero percent floor. As a result there was a mismatch and the ineffective portion of the derivatives’ changes in fair value were recognized directly into earnings. On October 18, 2017, the Company amended the BMO Term Loan and BAML Term Loan to, among other changes, provide that the deemed zero percent interest rate floor is not applicable to any loan where there is a corresponding interest rate swap contract in place. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity | |
Stockholders' Equity | 6. Stockholders’ Equity Equity Offerings On August 16, 2016, the Company completed an underwritten public offering of 7,043,750 shares of its common stock (including 918,750 shares issued as a result of the full exercise of an overallotment option by the underwriter) at a price to the public of $12.35 per share. The proceeds from this public offering, net of underwriter discounts and offering costs, totaled approximately $82.9 million. Equity-Based Compensation On May 20, 2002, the stockholders of the Company approved the 2002 Stock Incentive Plan (the “Plan”). The Plan is an equity-based incentive compensation plan, and provides for the grants of up to a maximum of 2,000,000 shares of the Company’s common stock (“Awards”). All of the Company’s employees, officers, directors, consultants and advisors are eligible to be granted Awards. Awards under the Plan are made at the discretion of the Company’s Board of Directors, and have no vesting requirements. Upon granting an Award, the Company will recognize compensation cost equal to the fair value of the Company’s common stock, as determined by the Company’s Board of Directors, on the date of the grant. The Company has not issued any shares under the Plan since 2005, and there are currently 1,944,428 shares available for grant under the Plan. |
Federal Income Tax Reporting
Federal Income Tax Reporting | 12 Months Ended |
Dec. 31, 2018 | |
Federal Income Tax Reporting | |
Income Taxes | 7. Federal Income Tax Reporting General The Company has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”). As a REIT, the Company generally is entitled to a tax deduction for distributions paid to its shareholders, thereby effectively subjecting the distributed net income of the Company to taxation at the shareholder level only. The Company must comply with a variety of restrictions to maintain its status as a REIT. These restrictions include the type of income it can earn, the type of assets it can hold, the number of shareholders it can have and the concentration of their ownership, and the amount of the Company’s taxable income that must be distributed annually. One such restriction is that the Company generally cannot own more than 10% of the voting power or value of the securities of any one issuer unless the issuer is itself a REIT or a taxable REIT subsidiary (“TRS”). In the case of TRSs, the Company’s ownership of securities in all TRSs generally cannot exceed 20% (25% of taxable years beginning on or before December 31, 2017) of the value of all of the Company’s assets and, when considered together with other non-real estate assets, cannot exceed 25% of the value of all of the Company’s assets. FSP Investments LLC and FSP Protective TRS Corp. are the Company’s taxable REIT subsidiaries operating as taxable corporations under the Code. Income taxes are recorded based on the future tax effects of the difference between the tax and financial reporting bases of the Company’s assets and liabilities. In estimating future tax consequences, potential future events are considered except for potential changes in income tax law or in rates. The Company adopted an accounting pronouncement related to uncertainty in income taxes effective January 1, 2007, which did not result in recording a liability, nor was any accrued interest and penalties recognized with the adoption. Accrued interest and penalties will be recorded as income tax expense, if the Company records a liability in the future. The Company’s effective tax rate was not affected by the adoption. The Company and one or more of its subsidiaries files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. The statute of limitations for the Company’s income tax returns is generally three years and as such, the Company’s returns that remain subject to examination would be primarily from 2014 and thereafter. The Company is subject to a business tax known as the Revised Texas Franchise Tax. Some of the Company’s leases allow reimbursement by tenants for these amounts because the Revised Texas Franchise Tax replaces a portion of the property tax for school districts. Because the tax base on the Revised Texas Franchise Tax is derived from an income based measure, it is considered an income tax. The Company recorded a provision for the Revised Texas Franchise Tax of $319,000, $355,000 and $352,000 for the years ended December 31, 2018, 2017 and 2016, respectively. Net operating losses Section 382 of the Code restricts a corporation’s ability to use net operating losses (“NOLs”) to offset future taxable income following certain “ownership changes.” Such ownership changes occurred with past mergers and accordingly a portion of the NOLs incurred by the Sponsored REITs available for use by the Company in any particular future taxable year will be limited. To the extent that the Company does not utilize the full amount of the annual NOLs limit, the unused amount may be carried forward to offset taxable income in future years. NOLs expire 20 years after the year in which they arise, and the last of the Company’s NOLs will expire in 2027. A valuation allowance is provided for the full amount of the NOLs as the realization of any tax benefits from such NOLs is not assured. The gross amount of NOLs available to the Company was $13,041,000 as of each of December 31, 2018, 2017 and 2016. Income Tax Expense The income tax expense reflected in the consolidated statements of income relates primarily the Revised Texas Franchise Tax. FSP Protective TRS Corp. provides taxable services to tenants at some of the Company’s properties and the tax expense associated with these activities are reported as Other Taxes in the table below: For the Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Revised Texas franchise tax $ 319 $ 355 $ 352 Other Taxes 41 45 66 Taxes on income $ 360 $ 400 $ 418 Taxes on income are a current tax expense. No deferred income taxes were provided as there were no material temporary differences between the financial reporting basis and the tax basis of the TRSs. At December 31, 2018, the Company’s net tax basis of its real estate assets is more than the amount set forth in the Company’s consolidated balance sheets by $199,556,000 and at December 31, 2017 the net tax basis is more than the Company’s consolidated balance sheets by $208,434,000. Reconciliation Between GAAP Net Income (Loss) and Taxable Income The following reconciles book net income (loss) to taxable income for the years ended December 31, 2018, 2017 and 2016. For the year ended December 31, (in thousands) 2018 2017 2016 Net income (loss) per books $ 13,069 $ (15,944) $ 8,378 Adjustments to book income (loss): Book depreciation and amortization 93,675 100,227 92,557 Tax depreciation and amortization (62,657) (62,653) (59,171) Tax basis more than book basis on assets sold — (907) (576) Straight line rent adjustment, net (1,350) (2,977) (2,976) Deferred rent, net 210 1,226 2 Non-taxable distributions (710) (1,289) (970) Other, net (6,651) 6,582 (1,648) Taxable income 35,586 24,265 35,596 Less: Capital gains recognized — — — Taxable income subject to distribution requirement $ 35,586 $ 24,265 $ 35,596 Tax Components The following summarizes the tax components of the Company’s common distributions paid per share for the years ended December 31, 2018, 2017 and 2016: 2018 2017 2016 Per Share % Per Share % Per Share % Ordinary income $ 0.35 76.39 % $ 0.24 31.74 % $ 0.39 50.82 % Capital gain — — % — — % — — % Return of capital 0.11 23.61 % 0.52 68.26 % 0.37 49.18 % Total $ 0.46 100 % $ 0.76 100 % $ 0.76 100 % |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2018 | |
Commitments | |
Commitments | 8. Commitments The Company’s commercial real estate operations include the leasing of office buildings and industrial properties subject to leases with terms greater than one year. The leases expire at various dates through 2036. The following is a schedule of approximate future minimum rental income on non-cancelable operating leases as of December 31, 2018: Year ending (in thousands) December 31, 2019 $ 169,471 2020 161,287 2021 142,712 2022 116,306 2023 97,853 Thereafter (2024-2036) 269,863 $ 957,492 The Company leases its corporate office space under an operating lease that commenced September 1, 2010. The lease was amended on October 25, 2016 to extend the lease through September 30, 2024. The lease has a five-year extension option. The lease includes a base annual rent and additional rent for the Company’s share of taxes and operating costs. Future minimum lease payments are as follows: Year ending (in thousands) December 31, 2019 $ 412 2020 421 2021 429 2022 438 2023 447 Thereafter 340 $ 2,487 Rent expense was approximately $411,000, $420,000 and $411,000 for the years ended December 31, 2018, 2017 and 2016, respectively, and is included in general and administration expenses in the consolidated statements of income. The Company has entered into the Sponsored REIT Loans described in Note 3, which provide for up to $79.5 million in borrowings of which $70.7 million have been drawn and were outstanding as of December 31, 2018. The Company anticipates that any advances made will be repaid at their maturity or earlier from refinancing, long term financing of the underlying properties, cash flows of the underlying properties or some other capital events. |
Retirement Plan
Retirement Plan | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Plan | |
Retirement Plan | 9. Retirement Plan In 2006, the Company established a 401(k) plan to cover eligible employees, which permitted deferral of up to $17,000 per year (indexed for inflation) into the 401(k) plan, subject to certain limitations imposed by the Internal Revenue Code. An employee’s elective deferrals are immediately vested upon contribution to the 401(k) plan. The Company matches employee contributions to the 401(k) plan dollar for dollar up to 3% of each employee’s annual compensation up to $200,000. In addition, we may elect to make an annual discretionary profit-sharing contribution. The Company’s total contribution under the 401(k) plan amounted to $139,000, $132,000 and $143,000 for the years ended December 31, 2018, 2017 and 2016, respectively. |
Dispositions of Properties
Dispositions of Properties | 12 Months Ended |
Dec. 31, 2018 | |
Dispositions of property | |
Dispositions of properties | 10. Dispositions of Property During the three months ended June 30, 2017, the Company reached a decision to classify an office property located in Baltimore, Maryland as an asset held for sale. In evaluating the Baltimore, Maryland property, management considered various subjective factors, including the time, cost and likelihood of successfully leasing the property, the effect of the property’s results on its unencumbered asset value, which is part of the leverage ratio used to compare to a maximum leverage covenant in the JPM Term Loan, BMO Term Loan and the BAML Credit Facility, future capital costs to upgrade and reposition the multi-tenant property and to lease up the building, recent leasing and economic activity in the local area, and offers to purchase the property. The Company concluded that selling the property was the more prudent decision and outweighed the potential future benefit of continuing to hold the property. The property was expected to sell within one year at a loss, which was recorded as a provision for loss on a property held for sale of $20.5 million and was classified as an asset held for sale of $31.9 million at June 30, 2017. During the three months ended September 30, 2017, the Company increased the provision for loss by $0.3 million to $20.7 million, and the property was classified as an asset held for sale in the amount of $31.6 million at September 30, 2017. The Company sold the property on October 20, 2017 for net proceeds of $31.6 million resulting in a total loss of $20.8 million. During the three months ended December 31, 2016, the Company reached an agreement to sell an office property located in Milpitas, California. The property was classified as an asset held for sale at December 31, 2016 and was sold on January 6, 2017 at approximately a $2.3 million gain. The Company sold an office property located in Maryland Heights, Missouri on April 5, 2016, at a $4.2 million gain. During the three months ended June 30, 2016, the Company reached a decision to classify its office property located in Federal Way, Washington, as an asset held for sale. In evaluating the Federal Way, Washington property, management considered various subjective factors, including the time, cost and likelihood of successfully leasing the property, the effect of the property’s results on its unencumbered asset value, which is part of the leverage ratio used to compare to a maximum leverage covenant in the BMO Term Loan and the BAML Credit Facility, future capital costs to upgrade and reposition the multi-tenant property and to lease up the building, recent leasing and economic activity in the local area, and offers to purchase the property. The Company concluded that selling the property was the more prudent decision and outweighed the potential future benefit of continuing to hold the property. The property was expected to sell within one year at a loss, which was recorded as a provision for loss on a property held for sale of $4.8 million and was classified as an asset held for sale of $9.3 million at June 30, 2016. During the three months ended September 30, 2016, we increased the provision for loss by $0.5 million to $5.3 million and the property, was classified as an asset held for sale in the amount of $8.8 million at September 30, 2016. The Company estimated the fair value of the property, less estimated costs to sell using the offers to purchase the property made by third parties (Level 3 inputs, as there is no active market). The Company sold the property on December 16, 2016 for $7.3 million of net proceeds resulting in a total loss of $7.1 million. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events | |
Subsequent Events | 11. Subsequent Events On January 11, 2019, the Board of Directors of the Company declared a cash distribution of $0.09 per share of common stock payable on February 14, 2019 to stockholders of record on January 25, 2019. |
Selected Unaudited Quarterly In
Selected Unaudited Quarterly Information | 12 Months Ended |
Dec. 31, 2018 | |
Selected Unaudited Quarterly Information | |
Selected Unaudited Quarterly Information | 12. Selected Unaudited Quarterly Information Selected unaudited quarterly information is shown in the following table: 2018 First Second Third Fourth Quarter Quarter Quarter Quarter (in thousands, except per share data) Revenue $ 66,893 $ 66,694 $ 68,705 $ 66,578 Income from continuing operations $ 1,425 $ 665 $ 9,608 $ 1,371 Income from discontinued operations $ — $ — $ — $ — Net income $ 1,425 $ 665 $ 9,608 $ 1,371 Basic and diluted net income per share $ 0.01 $ 0.01 $ 0.09 $ 0.01 Weighted average number of shares outstanding 107,231 107,231 107,231 107,231 2017 First Second Third Fourth Quarter Quarter Quarter Quarter (in thousands, except per share data) Revenue $ 68,756 $ 68,371 $ 68,626 $ 66,835 Income (loss) from continuing operations $ 4,480 $ (17,395) $ 1,903 $ (4,932) Income from discontinued operations $ — $ — $ — $ — Net income (loss) $ 4,480 $ (17,395) $ 1,903 $ (4,932) Basic and diluted net income (loss) per share $ 0.04 $ (0.16) $ 0.02 $ (0.05) Weighted average number of shares outstanding 107,231 107,231 107,231 107,231 |
Schedule II Valuation and quali
Schedule II Valuation and qualifying accounts | 12 Months Ended |
Dec. 31, 2018 | |
Schedule II Valuation and qualifying accounts: | |
Schedule II Valuation and qualifying accounts: | Schedule II Franklin Street Properties Corp. Valuation and qualifying accounts: Additions (Decreases) Balance at charged to Balance (in thousands) beginning costs and at end Classification of year expenses Deductions Other of year Allowance for doubtful accounts 2016 $ 130 $ 78 $ (108) $ — 100 2017 100 178 (28) — 250 2018 250 128 (178) — 200 Straight-line rent allowance for doubtful accounts 2016 $ 50 $ — $ — $ — 50 2017 50 — — — 50 2018 50 — — — 50 |
SCHEDULE III REAL ESTATE AND AC
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION | 12 Months Ended |
Dec. 31, 2018 | |
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION | |
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION | SCHEDULE III FRANKLIN STREET PROPERTIES CORP. REAL ESTATE AND ACCUMULATED DEPRECIATION December 31, 2018 Initial Cost Historical Cost Costs Capitalized Buildings Total Costs, Buildings (Disposals) Improvements Net of Depreciable Date of Encumbrances Improvements Subsequent to and Accumulated Accumulated Life Year Acquisition Description (1) Land and Equipment Acquisition Land Equipment Total (2) Depreciation Depreciation Years Built (3) (in thousands) Commercial Properties: Forest Park, Charlotte, NC — $ 1,559 $ 5,672 $ 170 $ 1,559 $ 5,842 $ 7,401 $ 2,426 $ 4,975 5 - 39 1999 1999 Meadow Point, Chantilly, VA — 2,634 18,911 7,028 2,634 25,939 28,573 12,566 16,007 5 - 39 1999 2001 Timberlake, Chesterfield, MO — 2,984 38,661 9,141 2,984 47,802 50,786 19,207 31,579 5 - 39 1999 2001 Northwest Point, Elk Grove Village, IL — 2,914 26,295 12,007 2,914 38,302 41,216 17,281 23,935 5 - 39 1999 2001 Timberlake East, Chesterfield, MO — 2,626 17,608 4,464 2,626 22,072 24,698 8,986 15,712 5 - 39 2000 2002 Park Ten, Houston, TX — 1,061 21,303 5,077 567 26,874 27,441 11,208 16,233 5 - 39 1999 2002 Addison, Addison, TX — 4,325 48,040 7,641 4,325 55,681 60,006 18,951 41,055 5 - 39 1999 2002 Collins, Richardson, TX — 4,000 42,598 6,962 4,000 49,560 53,560 20,337 33,223 5 - 39 1999 2003 Greenwood, Englewood, CO — 3,100 30,201 10,698 3,100 40,899 43,999 15,408 28,591 5 - 39 2000 2005 River Crossing, Indianapolis, IN — 3,000 36,926 4,331 3,000 41,257 44,257 14,422 29,835 5 - 39 1998 2005 Innsbrook, Glenn Allen, VA — 5,000 40,216 4,175 5,000 44,391 49,391 16,643 32,748 5 - 39 1999 2003 380 Interlocken, Bloomfield, CO — 8,275 34,462 8,749 8,275 43,211 51,486 16,967 34,519 5 - 39 2000 2003 Blue Lagoon, Miami, FL — 6,306 46,124 2,800 6,306 48,924 55,230 16,798 38,432 5 - 39 2002 2003 Eldridge Green, Houston, TX — 3,900 43,791 4,023 3,900 47,814 51,714 16,841 34,873 5 - 39 1999 2004 Liberty Plaza, Addison, TX — 4,374 21,146 7,017 4,374 28,163 32,537 10,276 22,261 5 - 39 1985 2006 One Overton, Atlanta, GA — 3,900 77,229 14,823 3,900 92,052 95,952 31,502 64,450 5 - 39 2002 2006 390 Interlocken, Broomfield, CO — 7,013 37,751 7,382 7,013 45,133 52,146 14,923 37,223 5 - 39 2002 2006 Park Ten II, Houston, TX — 1,300 31,712 1,646 1,300 33,358 34,658 8,952 25,706 5 - 39 2006 2006 Dulles Virginia, Sterling, VA — 4,813 13,285 5,829 4,813 19,114 23,927 5,480 18,447 5 - 39 1999 2008 Stonecroft, Chantilly, VA — 2,102 18,003 — 2,102 18,003 20,105 4,385 15,720 5 - 39 2008 2009 121 South Eight Street, Minneapolis, MN — 4,444 15,214 20,805 4,444 36,019 40,463 7,245 33,218 5 - 39 1974 2010 801 Marquette Ave South, Minneapolis, MN — 4,184 — 18,505 4,184 18,505 22,689 156 22,533 5 - 39 1923 2010 909 Davis, Evanston, IL — 4,912 18,229 6,429 4,912 24,658 29,570 4,774 24,796 5 - 39 2002 2011 Emperor Boulevard, Durham, NC — 2,423 53,997 52 2,423 54,049 56,472 10,855 45,617 5 - 39 2009 2011 Legacy Tennyson Center, Plano, TX — 3,067 22,064 2,120 3,067 24,184 27,251 4,673 22,578 5 - 39 2008 2011 One Legacy Circle, Plano, TX — 2,590 36,608 2,661 2,590 39,269 41,859 8,164 33,695 5 - 39 2008 2011 One Ravinia Drive, Atlanta, GA — 2,686 35,125 7,353 2,686 42,478 45,164 7,653 37,511 5 - 39 1985 2012 Two Ravinia Drive, Atlanta, GA — 7,375 58,726 9,175 7,375 67,901 75,276 6,749 68,527 5 - 39 1987 2015 Westchase I & II, Houston, TX — 8,491 121,508 10,210 8,491 131,718 140,209 21,427 118,782 5 - 39 2008 2012 1999 Broadway, Denver CO — 16,334 137,726 17,724 16,334 155,450 171,784 22,967 148,817 5 - 39 1986 2013 999 Peachtree, Atlanta, GA — 10,187 107,727 13,113 10,187 120,840 131,027 17,324 113,703 5 - 39 1987 2013 1001 17th Street, Denver, CO — 17,413 165,058 12,186 17,413 177,244 194,657 24,274 170,383 5 - 39 2006 2013 Plaza Seven, Minneapolis, MN — 6,604 54,240 7,457 6,604 61,697 68,301 4,907 63,394 5 - 39 1987 2016 Pershing Plaza, Atlanta, GA — 5,300 34,158 1,218 5,300 35,376 40,676 2,173 38,503 5 - 39 1989 2016 600 17th Street, Denver, CO — 20,876 99,941 3,054 20,876 102,995 123,871 5,679 118,192 5 - 39 1982 2016 Balance — Real Estate — $ 192,072 $ 1,610,255 $ 256,025 $ 191,578 $ 1,866,774 $ 2,058,352 $ 432,579 $ 1,625,773 (1) There are no encumbrances on the above properties. (2) The aggregate cost for Federal Income Tax purposes is $2,281,670. (3) Original date of acquisition by Sponsored Entity. The following table summarizes the changes in the Company’s real estate investments and accumulated depreciation: December 31, (in thousands) 2018 2017 2016 Real estate investments, at cost: Balance, beginning of year $ 2,008,823 $ 2,027,520 $ 1,809,615 Acquisitions — — 221,119 Improvements 53,279 54,097 39,438 Assets held for sale — — (5,023) Dispositions (3,750) (72,794) (42,652) Balance -Real Estate 2,058,352 2,008,823 2,022,497 Assets held for sale — — 5,023 Balance, end of year $ 2,058,352 $ 2,008,823 $ 2,027,520 Accumulated depreciation: Balance, beginning of year $ 376,131 $ 338,506 $ 299,991 Depreciation 60,198 57,312 52,466 Assets held for sale — — (1,278) Dispositions (3,750) (19,687) (13,951) Balance - Accumulated Depreciation 432,579 376,131 337,228 Assets held for sale — — 1,278 Balance, end of year $ 432,579 $ 376,131 $ 338,506 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements include all of the accounts of the Company and its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Estimates and Assumptions | Estimates and Assumptions The Company prepares its financial statements and related notes in conformity with generally accepted accounting principles in the United States of America (“GAAP”). These principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates in the consolidated financial statements include the allowance for doubtful accounts, purchase price allocations, impairment considerations, useful lives of fixed assets and the valuation of derivatives. |
Investments in non-consolidated REITs | Investments in non-consolidated REITs The Company has a non-controlling common stock interest in three Sponsored REITs and had a non-controlling preferred stock interest in two additional Sponsored REITs, both of which were liquidated during 2018. The Company exercised influence over, but did not control these entities and investments were accounted for using the equity method. Under the equity method of accounting, the Company's cost basis is adjusted by its share of the Sponsored REITs' earnings or losses. Equity in earnings or losses of Sponsored REITs were not recognized to the extent that the investment balance would become negative and distributions received were recognized as income once the investment balance was reduced to zero. The equity investments in Sponsored REITS were reviewed for impairment each reporting period. The Company recorded impairment charges when events or circumstances indicated a decline in the fair value below the carrying value of the investment had occurred and such decline was other-than-temporary. On December 27, 2007, the Company purchased 965.75 preferred shares (approximately 43.7%) of a Sponsored REIT, FSP 303 East Wacker Drive Corp. (“East Wacker”), for $82,813,000. The Company agreed to vote its shares in any matter presented to a vote by the stockholders of East Wacker in the same proportion as shares voted by other stockholders of East Wacker. The investment in East Wacker was accounted for under the equity method. On September 24, 2018, the property owned by East Wacker was sold and, thereafter, East Wacker declared and issued a liquidating distribution for its preferred shareholders. On May 29, 2009, the Company purchased 175.5 preferred shares (approximately 27.0%) of a Sponsored REIT, FSP Grand Boulevard Corp. (“Grand Boulevard”), for $15,049,000. The Company agreed to vote its shares in any matter presented to a vote by the stockholders of Grand Boulevard in the same proportion as shares voted by other stockholders of Grand Boulevard. The investment in Grand Boulevard was accounted for under the equity method. On July 19, 2018, the property owned by Grand Boulevard was sold and, thereafter, Grand Boulevard declared and issued a liquidating distribution for its preferred shareholders. |
Real Estate and Depreciation | Real Estate and Depreciation Real estate assets are stated at cost less accumulated depreciation. If the Company determines that impairment has occurred, the affected assets are reduced to their fair value. The Company allocates the value of real estate acquired among land, buildings and identified intangible assets or liabilities. Costs related to land, building and improvements are capitalized. Typical capital items include new roofs, site improvements, various exterior building improvements and major interior renovations. Costs incurred in connection with leasing (primarily tenant improvements and leasing commissions) are capitalized and amortized over the lease period. Routine replacements and ordinary maintenance and repairs that do not extend the life of the asset are expensed as incurred. Funding for repairs and maintenance items typically is provided by cash flows from operating activities. Depreciation is computed using the straight-line method over the assets’ estimated useful lives as follows: Category Years Commercial buildings 39 Building improvements 15 - 39 Fixtures and equipment 3 - 7 The Company reviews its properties to determine if their carrying amounts will be recovered from future operating cash flows if certain indicators of impairment are identified at those properties. The evaluation of anticipated cash flows is highly subjective and is based in part on assumptions regarding future occupancy, rental rates and capital requirements that could differ materially from actual results in future periods. Since cash flows are considered on an undiscounted basis in the analysis that the Company conducts to determine whether an asset has been impaired, the Company’s strategy of holding properties over the long term directly decreases the likelihood of recording an impairment loss. If the Company’s strategy changes or market conditions otherwise dictate an earlier sale date, an impairment loss may be recognized. |
Acquired Real Estate Leases and Amortization | Acquired Real Estate Leases and Amortization The Company recorded the value of acquired real estate leases as a result of three acquisitions in 2016 and one acquisition in 2015. Acquired real estate leases represent costs associated with acquiring an in-place lease (i.e., the market cost to execute a similar lease, including leasing commission, tenant improvements, legal, vacancy and other related costs) and the value relating to leases with rents above the market rate. Amortization is computed using the straight-line method over the term of the leases, which range from 31 months to 176 months. Amortization of these combined components was approximately $26,925,000, $38,970,000 and $36,854,000 for the years ended December 31, 2018, 2017 and 2016, respectively. Amortization related to costs associated with acquiring an in-place lease is included in depreciation and amortization on the consolidated statements of income. Amortization related to leases with rents above the market rate is offset against the rental revenue in the consolidated statements of income. The estimated annual amortization expense for the five years and thereafter following December 31, 2018 is as follows: (in thousands) December 31, 2019 $ 18,179 2020 12,777 2021 9,083 2022 5,503 2023 4,372 2024 and thereafter 9,680 |
Acquired Unfavorable Real Estate Leases and Amortization | Acquired Unfavorable Real Estate Leases and Amortization The Company recorded the value of acquired unfavorable leases as a result three acquisitions in 2016 and one acquisition in 2015. Acquired unfavorable real estate leases represent the value relating to leases with rents below the market rate. Amortization is computed using the straight-line method over the term of the leases, which range from 32 months to 176 months. Amortization expense was approximately $2,011,000, $3,117,000 and $3,292,000 for the years ended December 31, 2018, 2017 and 2016, respectively. Amortization related to leases with rents below the market rate is included with rental revenue in the consolidated statements of income. The estimated annual amortization for the five years and thereafter following December 31, 2018 is as follows: (in thousands) December 31, 2019 $ 1,244 2020 931 2021 603 2022 329 2023 223 2024 and thereafter 465 |
Assets held for sale | Asset Held For Sale Classification of a property as held for sale typically occurs upon the execution of a purchase and sale agreement and belief by management that the sale or disposition is probable of occurrence within one year. Upon determining that a property was held for sale, the Company discontinues depreciating the property and reflects the property in its consolidated balance sheet at the lower of its carrying amount or fair value less the cost to sell. The Company presents the property held for sale on its consolidated balance sheet as “Asset held for sale”. The Company reports the results of operations of its properties sold or held for sale in its consolidated statements of income through the date of sale. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statement of cash flows. December 31, December 31, (in thousands) 2018 2017 Cash and cash equivalents $ 11,177 $ 9,773 Restricted cash — 46 Total cash, cash equivalents and restricted cash $ 11,177 $ 9,819 |
Restricted Cash | Restricted Cash Restricted cash consists of tenant security deposits, which are required by law in some states or by contractual agreement to be kept in a segregated account, and escrows arising from property sales. Tenant security deposits are refunded when tenants vacate, provided that the tenant has not damaged the property. Cash held in escrow is paid when the related issue is resolved. Restricted cash also may include funds segregated for specific tenant improvements per lease agreements. |
Tenant Rent Receivables | Tenant Rent Receivables Tenant rent receivables are expected to be collected within one year. The Company provides an allowance for doubtful accounts based on its estimate of a tenant’s ability to make future rent payments. The computation of this allowance is based in part on the tenants’ payment history and current credit status. |
Related Party Mortgage Loan Receivable | Related Party Mortgage Loan Receivable Management monitors and evaluates the secured loans compared to the expected performance, cash flow and value of the underlying real estate and has not experienced a loss on these loans to date. |
Concentration of Credit Risks | Concentration of Credit Risks Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash investments, derivatives and accounts receivable. The Company maintains its cash balances principally in two banks which the Company believes to be creditworthy. The Company periodically assesses the financial condition of the banks and believes that the risk of loss is minimal. Cash balances held with various financial institutions frequently exceed the insurance limit of $250,000 provided by the Federal Deposit Insurance Corporation. The derivatives that we have are from two interest rate swap agreements that are discussed in Note 6. The Company performs ongoing credit evaluations of our tenants and requires certain tenants to provide security deposits or letters of credit. Though these security deposits and letters of credit are insufficient to meet the total value of a tenant’s lease obligation, they are a measure of good faith and a source of funds to offset the economic costs associated with lost rent and the costs associated with re-tenanting the space. The Company has no single tenant which accounts for more than 10% of its annualized rent. |
Financial Instruments | Financial Instruments The Company estimates that the carrying values of cash and cash equivalents, restricted cash, receivables, prepaid expenses, accounts payable and accrued expenses, accrued compensation, and tenant security deposits approximate their fair values based on their short-term maturity and the bank note and term loans payable approximate their fair values as they bear interest at variable interest rates. |
Straight-line Rent Receivable | Straight-line Rent Receivable Certain leases provide for fixed rent increases over the term of the lease. Rental revenue is recognized on a straight-line basis over the related lease term; however, billings by the Company are based on the lease agreements. Straight-line rent receivable, which is the cumulative revenue recognized in excess of amounts billed by the Company, was $54,006,000 and $53,194,000 at December 31, 2018 and 2017, respectively. The Company provides an allowance for doubtful accounts based on its estimate of a tenant’s ability to make future rent payments. The computation of this allowance is based in part on the tenants’ payment history and current credit status. The reserve balance was not changed during 2018, 2017 or 2016, based on such analysis. |
Deferred Leasing Commissions | Deferred Leasing Commissions Deferred leasing commissions represent direct and incremental external leasing costs incurred in the leasing of commercial space. These costs are capitalized and are amortized on a straight-line basis over the terms of the related lease agreements. Amortization expense was approximately $8,471,000, $6,919,000 and $6,272,000 for the years ended December 31, 2018, 2017 and 2016, respectively. The estimated annual amortization for the five years and thereafter following December 31, 2018 is as follows: (in thousands) December 31, 2019 $ 8,644 2020 7,891 2021 7,055 2022 5,770 2023 4,888 2024 and thereafter 13,344 |
Common Share Repurchases | Common Share Repurchases The Company recognizes the gross cost of the common shares it repurchases as a reduction in stockholders’ equity using the treasury stock method. Maryland law does not recognize a separate treasury stock account but provides that shares repurchased are classified as authorized but unissued shares. Accordingly, the Company reduces common stock for the par value and the excess of the purchase price over the par value is a reduction to additional paid-in capital. |
Revenue Recognition | Revenue Recognition Rental Revenue - The Company has retained substantially all of the risks and benefits of ownership of the Company’s commercial properties and accounts for its leases as operating leases. Rental revenue includes income from leases, certain reimbursable expenses, straight-line rent adjustments and other income associated with renting the property. Rental income from leases, which includes rent concessions (including free rent and other lease inducements) and scheduled increases in rental rates during the lease term, is recognized on a straight-line basis. The Company does not have any significant percentage rent arrangements with its commercial property tenants. Reimbursable expenses are included in rental income in the period earned. A summary of rental revenue is shown in the following table: Year Ended December 31, (in thousands) 2018 2017 2016 Income from leases $ 202,127 $ 205,690 $ 192,055 Reimbursable expenses 61,475 58,777 49,821 Straight-line rent adjustment (381) 1,767 1,977 Amortization of favorable and unfavorable leases 556 1,031 496 $ 263,777 $ 267,265 $ 244,349 |
Rental Revenue | Rental Revenue - The Company has retained substantially all of the risks and benefits of ownership of the Company’s commercial properties and accounts for its leases as operating leases. Rental revenue includes income from leases, certain reimbursable expenses, straight-line rent adjustments and other income associated with renting the property. Rental income from leases, which includes rent concessions (including free rent and other lease inducements) and scheduled increases in rental rates during the lease term, is recognized on a straight-line basis. The Company does not have any significant percentage rent arrangements with its commercial property tenants. Reimbursable expenses are included in rental income in the period earned. A summary of rental revenue is shown in the following table: Year Ended December 31, (in thousands) 2018 2017 2016 Income from leases $ 202,127 $ 205,690 $ 192,055 Reimbursable expenses 61,475 58,777 49,821 Straight-line rent adjustment (381) 1,767 1,977 Amortization of favorable and unfavorable leases 556 1,031 496 $ 263,777 $ 267,265 $ 244,349 |
Related Party and Other Revenue | Related Party and Other Revenue - Property and asset management fees, interest income on loans and other income are recognized when the related services are performed and the earnings process is complete. |
Segment Reporting | Segment Reporting The Company is a REIT focused on real estate investments primarily in the office market and currently operates in only one segment: real estate operations. |
Income Taxes | Income Taxes Taxes on income for the years ended December 31, 2018, 2017 and 2016 represent taxes incurred by FSP Protective TRS Corp, which is a taxable REIT subsidiary and the State of Texas franchise tax applicable to FSP Corp., which is classified as an income tax for reporting purposes. |
Net Income Per Share | Net Income Per Share Basic net income per share is computed by dividing net income by the weighted average number of shares outstanding during the period. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue shares were exercised or converted into shares. There were no potential dilutive shares outstanding at December 31, 2018, 2017, and 2016. The denominator used for calculating basic and diluted net income per share was 107,231,000, 107,231,000, and 102,843,000 for the years ended December 31, 2018, 2017, and 2016, respectively. |
Derivative Instruments | Derivative Instruments The Company recognizes derivatives on the consolidated balance sheets at fair value. Derivatives that do not qualify, or are not designated as hedge relationships, must be adjusted to fair value through income. Derivative instruments designated in a hedge relationship to mitigate exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Cash flow hedges are accounted for by recording the fair value of the derivative instrument on the consolidated balance sheets as either an asset or liability. To the extent hedges are effective, a corresponding amount, adjusted for swap payments, is recorded in accumulated other comprehensive income within stockholders’ equity. Amounts are then reclassified from accumulated other comprehensive income to the income statement in the period or periods the hedged forecasted transaction affects earnings. Ineffectiveness, if any, is recorded in the income statement. The Company reviews the effectiveness of each hedging transaction, which involves estimating future cash flows, at least quarterly. Derivative instruments designated in a hedge relationship to mitigate exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. The Company currently has no fair value hedges outstanding. Fair values of derivatives are subject to significant variability based on changes in interest rates and counterparty credit risk. The results of such variability could be a significant increase or decrease in our derivative assets, derivative liabilities, book equity, and/or earnings. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There is also an established fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value. Financial assets and liabilities recorded on the consolidated balance sheets at fair value are categorized based on the inputs to the valuation techniques as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, which is typically based on an entity’s own assumptions, as there is little, if any, related market activity or information. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability including credit risk, which was not significant to the overall value. These inputs were considered and applied to the Company’s derivative, and Level 2 inputs were used to value the interest rate swap. |
Subsequent Events | Subsequent Events In preparing these consolidated financial statements the Company evaluated events that occurred through the date of issuance of these financial statements for potential recognition or disclosure. |
Recent Accounting Standards | Recent Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers (“Topic 606”), which provides guidance for revenue recognition. The standard’s core principle is that a company will recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. This update is effective for interim and annual reporting periods beginning after December 15, 2017. A substantial portion of our revenue consists of rental income from leasing arrangements, which is specifically excluded from Topic 606. The Company adopted Topic 606 using the modified retrospective approach effective January 1, 2018 and the adoption did not have an impact on the amount or timing of revenue recognition in the consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016-02”), in July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases and ASU No. 2018-11, Leases (Topic 842): Targeted Improvements and in December 2018, the FASB issued ASU No. 2018-20 Leases (Topic 842), Narrow-Scope Improvements for Lessors. ASU 2016-02 requires lessees to establish a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying asset for the lease term on their balance sheets. Lessees will continue to recognize lease expenses on their income statements in a manner similar to current accounting. The guidance also eliminates current real estate-specific provisions for all entities. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. This new standard was effective for annual periods beginning after December 15, 2018, and interim periods thereafter with early adoption permitted. The Company adopted these standards on January 1, 2019 and applied the package of practical expedients that allows an entity to not reassess (i) whether any expired or existing contracts are or contain leases, (ii) lease classification for any expired or existing leases and (iii) initial direct costs for any expired or existing leases. Additionally, our leases met the criteria in ASU No. 2018-11 to not separate non-lease components from the related lease component, therefore the accounting for these leases remained largely unchanged from the previous standard. We applied the optional transition method in ASU No. 2018-11, which allows entities to initially apply the new leases standard at the adoption date. The adoption of this standard in 2019 will increase the Company’s assets and liabilities by approximately $2.2 million for the addition of right-of-use assets and lease liabilities related to an operating lease for office space in which the Company is a tenant. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which requires that entities use a new forward looking “expected loss” model that generally will result in the earlier recognition of allowance for credit losses. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is currently assessing the potential impact the adoption of ASU 2016-13 will have on its consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which clarifies how reporting entities should present and classify certain cash receipts and cash payments in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company adopted this guidance during the first quarter of 2018 and applied it retrospectively. Pursuant to the adoption, the Company elected the cumulative earnings approach related to the distributions received from its equity method investments. The adoption did not have an impact on the Company’s consolidated statements of cash flows. In November 2016, the FASB issued ASU No. 2016-18, Restricted Cash (“ASU 2016-18”), which clarifies how reporting entities should present restricted cash and restricted cash equivalents. Reporting entities will show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. The new standard requires a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheets. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Upon the adoption of ASU 2016-18, the Company reconciled both cash and cash equivalents and restricted cash and restricted cash equivalents, whereas under the previous guidance the Company explained the changes during the period for cash and cash equivalents only. Prior periods were retrospectively adjusted to conform to the current period’s presentation. In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business (“ASU 2017-01”), which provides additional guidance on evaluating whether transactions should be accounted for as an acquisition (or disposal) of assets of a business. The update defines three requirements for a set of assets and activities (collectively referred to as a “set”) to be considered a business: inputs, processes and outputs. ASU 2017-01 is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. This update will be applied prospectively to any transactions occurring within the period of adoption. Certain property acquisitions which under previous guidance would have been accounted for as business combinations will be accounted for as acquisitions of assets. In an acquisition of assets, certain acquisition costs are capitalized as opposed to expensed under business combination guidance. In August 2018, the FASB issued No. ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). The ASU is intended to improve the effectiveness of fair value measurement disclosures. ASU 2018-13 is effective for all entities for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. This ASU amends existing fair value measurement disclosure requirements by adding, changing, or removing certain disclosures. ASU 2018-13 will be effective for the Company as of January 1, 2020, and earlier adoption is permitted. The Company is currently reviewing the effect of this ASU to the consolidated financial statements. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Significant Accounting Policies | |
Schedule of estimated useful lives of real estate assets | Category Years Commercial buildings 39 Building improvements 15 - 39 Fixtures and equipment 3 - 7 |
Schedule of estimated annual amortization expense for succeeding five years for acquired in-place lease and above-market leases | (in thousands) December 31, 2019 $ 18,179 2020 12,777 2021 9,083 2022 5,503 2023 4,372 2024 and thereafter 9,680 |
Schedule of estimated annual amortization for unfavorable leases | (in thousands) December 31, 2019 $ 1,244 2020 931 2021 603 2022 329 2023 223 2024 and thereafter 465 |
Schedule of Cash and cash equivalents | December 31, December 31, (in thousands) 2018 2017 Cash and cash equivalents $ 11,177 $ 9,773 Restricted cash — 46 Total cash, cash equivalents and restricted cash $ 11,177 $ 9,819 |
Schedule of estimated annual amortization for deferred leasing commissions | (in thousands) December 31, 2019 $ 8,644 2020 7,891 2021 7,055 2022 5,770 2023 4,888 2024 and thereafter 13,344 |
Summary of rental revenue | Year Ended December 31, (in thousands) 2018 2017 2016 Income from leases $ 202,127 $ 205,690 $ 192,055 Reimbursable expenses 61,475 58,777 49,821 Straight-line rent adjustment (381) 1,767 1,977 Amortization of favorable and unfavorable leases 556 1,031 496 $ 263,777 $ 267,265 $ 244,349 |
Related Party Transactions an_2
Related Party Transactions and Investments in Non-Consolidated Entities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions and Investments in Non-Consolidated Entities | |
Schedule of equity in losses of investments in non-consolidated REITs | Year Ended December 31, (in thousands) 2018 2017 2016 Equity in income (loss) of East Wacker $ 7,209 $ (428) $ (563) Equity in (loss) of Grand Boulevard (107) (657) (268) Impairment charge (309) (2,519) — $ 6,793 $ (3,604) $ (831) |
Schedule of distributions received from non-consolidated REITs | Year Ended December 31, (in thousands) 2018 2017 2016 Distributions from East Wacker $ 657 $ 1,289 $ 916 Distributions from Grand Boulevard 53 107 107 $ 710 $ 1,396 $ 1,023 |
Summary of financial information of Sponsored REITs | December 31, December 31, (in thousands) 2018 2017 Balance Sheet Data (unaudited): Real estate, net $ 97,034 $ 312,861 Other assets 18,532 74,076 Total liabilities (75,382) (151,092) Shareholders’ equity $ 40,184 $ 235,845 For the Year Ended December 31, (in thousands) 2018 2017 2016 Operating Data (unaudited): Rental revenues $ 40,382 $ 53,249 $ 54,257 Other revenues 1 7 39 Operating and maintenance expenses (20,584) (27,495) (29,186) Depreciation and amortization (13,077) (18,395) (18,274) Interest expense (6,869) (8,281) (8,481) Gain (loss) on sale 17,095 (702) 26,397 Net income (loss) $ 16,948 $ (1,617) $ 24,752 |
Summary of the Sponsored REIT Loans outstanding | Maximum Amount Interest (dollars in thousands, except footnotes) Maturity Amount Drawn at Interest Draw Rate at Sponsored REIT Location Date of Loan 31-Dec-18 Rate (1) Fee (2) 31-Dec-18 Secured revolving lines of credit FSP Satellite Place Corp. Duluth, GA 31-Dec-19 $ 5,500 $ 1,060 L+ 4.4 % 0.5 % 6.78 % FSP Energy Tower I Corp. Houston, TX 30-Jun-19 20,000 15,600 L+ 5.0 % 0.5 % 7.38 % Mortgage loan secured by property FSP Monument Circle LLC (3) (4) Indianapolis, IN 6-Dec-20 21,000 21,000 7.19 % n/a 7.19 % FSP Energy Tower I Corp. (5) Houston, TX 30-Jun-19 33,000 33,000 6.41 % n/a 6.41 % $ 79,500 $ 70,660 (1) The interest rate is 30-day LIBOR rate plus the additional rate indicated, otherwise a fixed rate. (2) The draw fee is a percentage of each new advance, and is paid at the time of each new draw. (3) This loan was extended on December 6, 2018. (4) This mortgage loan includes an origination fee of $164,000 and an exit fee of $38,000 when repaid by the borrower. (5) This mortgage loan includes an annual extension fee of $108,900 paid by the borrower. |
Bank Note Payable, Term Note _2
Bank Note Payable, Term Note Payable and Private Placements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
BAML Revolver | |
Debt Instrument [Line Items] | |
Schedule of actual amount of applicable facility fee, LIBOR rate or base rate determined based on total leverage ratio | Base LIBOR Rate Facility Rate Level Credit Rating Margin Fee Margin I A- / A3 (or higher) 0.825 % 0.125 % 0.000 % II BBB+ / Baa1 0.875 % 0.150 % 0.000 % III BBB / Baa2 1.000 % 0.200 % 0.000 % IV BBB- / Baa3 1.200 % 0.250 % 0.200 % V <BBB- / Baa3 1.550 % 0.300 % 0.550 % |
BAML Term Loan | |
Debt Instrument [Line Items] | |
Schedule of actual amount of applicable facility fee, LIBOR rate or base rate determined based on total leverage ratio | LIBOR Rate Base Rate Level Credit Rating Margin Margin I A- / A3 (or higher) 0.900 % 0.000 % II BBB+ / Baa1 0.950 % 0.000 % III BBB / Baa2 1.100 % 0.100 % IV BBB- / Baa3 1.350 % 0.350 % V <BBB- / Baa3 1.750 % 0.750 % |
JPM Term Loan | |
Debt Instrument [Line Items] | |
Schedule of actual amount of applicable facility fee, LIBOR rate or base rate determined based on total leverage ratio | EURODOLLAR CREDIT RATE BASE RATE LEVEL RATING MARGIN MARGIN I A- / A3 (or higher) 85.0 bps — bps II BBB+ / Baa1 90.0 bps — bps III BBB / Baa2 100.0 bps — bps IV BBB- / Baa3 125.0 bps 25.0 bps V <BBB- / Baa3 165.0 bps 65.0 bps |
BMO Term Loan | |
Debt Instrument [Line Items] | |
Schedule of actual amount of applicable facility fee, LIBOR rate or base rate determined based on total leverage ratio | Credit LIBOR Rate Base Rate Level Rating Margin Margin I A- / A3 (or higher) 85.0 bps — bps II BBB+ / Baa1 90.0 bps — bps III BBB / Baa2 100.0 bps — bps IV BBB- / Baa3 125.0 bps 25.0 bps V <BBB- / Baa3 165.0 bps 65.0 bps |
Financial Instruments_ Deriva_2
Financial Instruments: Derivatives and Hedging (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments: Derivatives and Hedging | |
Schedule of notional and fair value of derivative financial instruments | Notional Strike Effective Expiration Fair (in thousands) Value Rate Date Date Value 2017 Interest Rate Swap $ 400,000 1.12 % Sep-17 Sep-21 $ 14,100 BMO Interest Rate Swap $ 220,000 2.32 % Aug-13 Aug-20 $ 665 |
Federal Income Tax Reporting (T
Federal Income Tax Reporting (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Federal Income Tax Reporting | |
Schedule of income tax expense reflected in the condensed consolidated statements of income | For the Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Revised Texas franchise tax $ 319 $ 355 $ 352 Other Taxes 41 45 66 Taxes on income $ 360 $ 400 $ 418 |
Schedule of reconciliation of book net income to taxable income | For the year ended December 31, (in thousands) 2018 2017 2016 Net income (loss) per books $ 13,069 $ (15,944) $ 8,378 Adjustments to book income (loss): Book depreciation and amortization 93,675 100,227 92,557 Tax depreciation and amortization (62,657) (62,653) (59,171) Tax basis more than book basis on assets sold — (907) (576) Straight line rent adjustment, net (1,350) (2,977) (2,976) Deferred rent, net 210 1,226 2 Non-taxable distributions (710) (1,289) (970) Other, net (6,651) 6,582 (1,648) Taxable income 35,586 24,265 35,596 Less: Capital gains recognized — — — Taxable income subject to distribution requirement $ 35,586 $ 24,265 $ 35,596 |
Summary of tax components of Company's common distribution paid per share | 2018 2017 2016 Per Share % Per Share % Per Share % Ordinary income $ 0.35 76.39 % $ 0.24 31.74 % $ 0.39 50.82 % Capital gain — — % — — % — — % Return of capital 0.11 23.61 % 0.52 68.26 % 0.37 49.18 % Total $ 0.46 100 % $ 0.76 100 % $ 0.76 100 % |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Office buildings and industrial properties | |
Commitments | |
Schedule of future minimum lease payments | Year ending (in thousands) December 31, 2019 $ 169,471 2020 161,287 2021 142,712 2022 116,306 2023 97,853 Thereafter (2024-2036) 269,863 $ 957,492 |
Corporate office space | |
Commitments | |
Schedule of future minimum lease payments | Year ending (in thousands) December 31, 2019 $ 412 2020 421 2021 429 2022 438 2023 447 Thereafter 340 $ 2,487 |
Selected Unaudited Quarterly _2
Selected Unaudited Quarterly Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Selected Unaudited Quarterly Information | |
Schedule of selected unaudited quarterly information | 2018 First Second Third Fourth Quarter Quarter Quarter Quarter (in thousands, except per share data) Revenue $ 66,893 $ 66,694 $ 68,705 $ 66,578 Income from continuing operations $ 1,425 $ 665 $ 9,608 $ 1,371 Income from discontinued operations $ — $ — $ — $ — Net income $ 1,425 $ 665 $ 9,608 $ 1,371 Basic and diluted net income per share $ 0.01 $ 0.01 $ 0.09 $ 0.01 Weighted average number of shares outstanding 107,231 107,231 107,231 107,231 2017 First Second Third Fourth Quarter Quarter Quarter Quarter (in thousands, except per share data) Revenue $ 68,756 $ 68,371 $ 68,626 $ 66,835 Income (loss) from continuing operations $ 4,480 $ (17,395) $ 1,903 $ (4,932) Income from discontinued operations $ — $ — $ — $ — Net income (loss) $ 4,480 $ (17,395) $ 1,903 $ (4,932) Basic and diluted net income (loss) per share $ 0.04 $ (0.16) $ 0.02 $ (0.05) Weighted average number of shares outstanding 107,231 107,231 107,231 107,231 |
Organization (Detail)
Organization (Detail) | 12 Months Ended | ||
Dec. 31, 2018entitypropertyitem | Dec. 31, 2017entity | Dec. 31, 2016entity | |
Organization | |||
Number of REITs in which the entity holds non-controlling common stock interest | entity | 3 | 6 | 7 |
Number of Sponsored REITs | entity | 3 | 6 | 7 |
Number of properties in redevelopment | property | 3 | ||
Number of promissory notes secured by mortgages on real estate owned by Sponsored REITs | 4 | ||
Properties | |||
Number of properties | property | 32 | ||
FSP Investments LLC | |||
Organization | |||
Ownership interest (as a percent) | 100.00% | ||
FSP Property Management LLC | |||
Organization | |||
Ownership interest (as a percent) | 100.00% | ||
FSP Holdings LLC | |||
Organization | |||
Ownership interest (as a percent) | 100.00% | ||
FSP Protective TRS Corp. | |||
Organization | |||
Ownership interest (as a percent) | 100.00% | ||
Mortgage loan secured by property | |||
Organization | |||
Number of promissory notes secured by mortgages on real estate owned by Sponsored REITs | 2 | ||
Secured revolving lines of credit | |||
Organization | |||
Number of promissory notes secured by mortgages on real estate owned by Sponsored REITs | 2 |
Significant Accounting Polici_4
Significant Accounting Policies - Basis, Estimates and Inv in non-consolidated REITs (Detail) | Dec. 31, 2018USD ($)entity | Dec. 31, 2017entity | Dec. 31, 2016entity |
Significant Accounting Policies | |||
Number of corporations organized to operate as real estate investment trusts (REITs) | 3 | 6 | 7 |
Number of REITs in which the entity holds non-controlling preferred stock interest | 2 | ||
Required investment balance for recognition of distributions received as income | $ | $ 0 |
Significant Accounting Polici_5
Significant Accounting Policies - Inv in non-consolidated REITs (Details) - USD ($) | May 29, 2009 | Dec. 27, 2007 | May 31, 2009 | Dec. 31, 2007 |
East Wacker | ||||
Investment in Sponsored REITs | ||||
Preferred shares purchased | 965.75 | 965.75 | ||
Percentage of outstanding preferred shares purchased | 43.70% | 43.70% | ||
Net cost of preferred shares purchased | $ 82,813,000 | |||
Grand Boulevard | ||||
Investment in Sponsored REITs | ||||
Preferred shares purchased | 175.5 | 175.5 | ||
Percentage of outstanding preferred shares purchased | 27.00% | 27.00% | ||
Net cost of preferred shares purchased | $ 15,049,000 |
Significant Accounting Polici_6
Significant Accounting Policies - Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Commercial buildings | |
Real Estate and Depreciation | |
Estimated useful life | 39 years |
Building improvements | Minimum | |
Real Estate and Depreciation | |
Estimated useful life | 15 years |
Building improvements | Maximum | |
Real Estate and Depreciation | |
Estimated useful life | 39 years |
Fixtures and equipment | Minimum | |
Real Estate and Depreciation | |
Estimated useful life | 3 years |
Fixtures and equipment | Maximum | |
Real Estate and Depreciation | |
Estimated useful life | 7 years |
Significant Accounting Polici_7
Significant Accounting Policies - Acquired Real Estate Leases and Amortization (Details) | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)item | Dec. 31, 2015item | |
Acquired real estate leases and amortization | ||||
Number of acquisitions of properties with leases | item | 3 | 1 | ||
Acquired in-place and above market real estate leases | ||||
Acquired real estate leases and amortization | ||||
Amortization expense | $ 26,925,000 | $ 38,970,000 | $ 36,854,000 | |
Estimated annual amortization for succeeding five years | ||||
2,019 | 18,179,000 | |||
2,020 | 12,777,000 | |||
2,021 | 9,083,000 | |||
2,022 | 5,503,000 | |||
2,023 | 4,372,000 | |||
2024 and thereafter | $ 9,680,000 | |||
Acquired in-place and above market real estate leases | Minimum | ||||
Acquired real estate leases and amortization | ||||
Term of lease | 31 months | |||
Acquired in-place and above market real estate leases | Maximum | ||||
Acquired real estate leases and amortization | ||||
Term of lease | 176 months |
Significant Accounting Polici_8
Significant Accounting Policies - Acquired Unfavorable Real Estate Leases and Amortization (Details) | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)item | Dec. 31, 2015item | |
Acquired Unfavorable Real Estate Leases and Amortization | ||||
Number of acquisitions of properties with leases | item | 3 | 1 | ||
Acquired unfavorable real estate leases | ||||
Acquired Unfavorable Real Estate Leases and Amortization | ||||
Amortization | $ 2,011,000 | $ 3,117,000 | $ 3,292,000 | |
Estimated annual amortization for succeeding five years | ||||
2,019 | 1,244,000 | |||
2,020 | 931,000 | |||
2,021 | 603,000 | |||
2,022 | 329,000 | |||
2,023 | 223,000 | |||
2024 and thereafter | $ 465,000 | |||
Acquired unfavorable real estate leases | Minimum | ||||
Acquired Unfavorable Real Estate Leases and Amortization | ||||
Term of lease | 32 months | |||
Acquired unfavorable real estate leases | Maximum | ||||
Acquired Unfavorable Real Estate Leases and Amortization | ||||
Term of lease | 176 months |
Significant Accounting Polici_9
Significant Accounting Policies - Asset Held For Sale, Cash (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Discontinued Operations | ||||
Time period within which sale or disposition of properties held for sale is probable | 1 year | |||
Cash and cash equivalents | $ 11,177 | $ 9,773 | ||
Restricted cash | 46 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Total | $ 11,177 | $ 9,819 | $ 9,366 | $ 18,186 |
Significant Accounting Polic_10
Significant Accounting Policies - Rent Receivables (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Tenant Rent Receivables and Straight-line Rent Receivable | ||
Period within which tenant rent receivables are expected to be collected | 1 year | |
Straight-line rent receivable | $ 54,006,000 | $ 53,194,000 |
Significant Accounting Polic_11
Significant Accounting Policies - Concentration of Credit Risks (Details) | 12 Months Ended |
Dec. 31, 2018USD ($)item | |
Concentration of Credit Risks | |
Number of banks in which the entity maintains cash balances | 2 |
Number of interest rate swap agreements | 2 |
Cash balances with financial institutions | Credit concentration risk | Minimum | |
Concentration of Credit Risks | |
Insurance limit provided by Federal Deposit Insurance Corporation | $ | $ 250,000 |
Annualized rental revenues | Single tenant rental revenues | |
Concentration of Credit Risks | |
Percentage of annualized rental revenues required for qualification as major tenant | 10.00% |
Significant Accounting Polic_12
Significant Accounting Policies - Deferred Leasing Commissions and Revenue Recognition (Details) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018USD ($)shares | Sep. 30, 2018shares | Jun. 30, 2018shares | Mar. 31, 2018shares | Dec. 31, 2017shares | Sep. 30, 2017shares | Jun. 30, 2017shares | Mar. 31, 2017shares | Dec. 31, 2018USD ($)itemshares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | |
Deferred Leasing Commissions | |||||||||||
Amortization of deferred leasing commissions | $ 8,471,000 | $ 6,919,000 | $ 6,272,000 | ||||||||
Estimated annual amortization of deferred leasing commissions for the succeeding five years | |||||||||||
2,019 | 8,644,000 | ||||||||||
2,020 | 7,891,000 | ||||||||||
2,021 | 7,055,000 | ||||||||||
2,022 | 5,770,000 | ||||||||||
2,023 | 4,888,000 | ||||||||||
2024 and thereafter | 13,344,000 | ||||||||||
Summary of rental revenue | |||||||||||
Income from leases | 202,127,000 | 205,690,000 | 192,055,000 | ||||||||
Reimbursable expenses | 61,475,000 | 58,777,000 | 49,821,000 | ||||||||
Straight-line rent adjustment | (381,000) | 1,767,000 | 1,977,000 | ||||||||
Amortization of favorable and unfavorable leases | 556,000 | 1,031,000 | 496,000 | ||||||||
Rental revenue | $ 263,777,000 | $ 267,265,000 | $ 244,349,000 | ||||||||
Segment Reporting | |||||||||||
Number of reporting segments | item | 1 | ||||||||||
Net Income Per Share | |||||||||||
Potential dilutive shares outstanding | shares | 0 | 0 | 0 | ||||||||
Denominator used for calculating basic and diluted net income per share (in shares) | shares | 107,231,000 | 107,231,000 | 107,231,000 | 107,231,000 | 107,231,000 | 107,231,000 | 107,231,000 | 107,231,000 | 107,231,000 | 107,231,000 | 102,843,000 |
Derivative instruments | |||||||||||
Fair value hedges outstanding | $ 0 | $ 0 | |||||||||
ASU 2016-02 | |||||||||||
Recent Accounting Standards | |||||||||||
Increase in assets and liabilities | $ 2,200,000 |
Related Party Transactions an_3
Related Party Transactions and Investments in Non-Consolidated Entities - Investment in Sponsored REITs (Details) - entity | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Related Party Transactions and Investments in Non-Consolidated Entities | |||
Number of REITs in which the entity holds non-controlling common stock interest | 3 | 6 | 7 |
Number of REITs in which the entity holds non-controlling preferred stock interest | 2 |
Related Party Transactions an_4
Related Party Transactions and Investments in Non-Consolidated Entities - Investment in Sponsored REITs - Property Sold (Details) | 12 Months Ended | |
Dec. 31, 2017USD ($)entity | Dec. 31, 2016USD ($)entity | |
Investment in Sponsored REITs | ||
Number of properties sold | entity | 1 | 2 |
FSP 1441 Main Street Corp. | ||
Investment in Sponsored REITs | ||
Repayment of principal | $ 9,000,000 | |
FSP 385 Interlocken Development, Corp. | ||
Investment in Sponsored REITs | ||
Repayment of principal | $ 37,500,000 |
Related Party Transactions an_5
Related Party Transactions and Investments in Non-Consolidated Entities - Equity in losses of investment in non-consolidated REITs (Details) - USD ($) $ in Thousands | Sep. 27, 2018 | Sep. 24, 2018 | Aug. 17, 2018 | Jul. 19, 2018 | May 29, 2009 | Dec. 27, 2007 | May 31, 2009 | Dec. 31, 2007 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Sponsored REITs | |||||||||||
Equity in income (loss) of non-consolidated REITs | $ 6,793 | $ (3,604) | $ (831) | ||||||||
Impairment charge | (309) | (2,519) | |||||||||
Amount received | 74,931 | ||||||||||
Distributions received from non-consolidated REITs | |||||||||||
Distributions from non-consolidated REITs | 710 | 1,396 | 1,023 | ||||||||
Equity Method Investment Distribution in Excess of Earnings | 710 | 1,396 | 1,023 | ||||||||
East Wacker | |||||||||||
Sponsored REITs | |||||||||||
Equity in income (loss) of non-consolidated REITs | 7,209 | (428) | (563) | ||||||||
Preferred shares purchased | 965.75 | 965.75 | |||||||||
Percentage of outstanding preferred shares purchased | 43.70% | 43.70% | |||||||||
Liquidating distribution receivable | $ 70,000 | ||||||||||
Gain (loss) on liquidation | $ 7,100 | ||||||||||
Amount received | $ 69,000 | ||||||||||
Beneficial interest | 1,000 | ||||||||||
Distributions received from non-consolidated REITs | |||||||||||
Distributions from non-consolidated REITs | 657 | 1,289 | 916 | ||||||||
Grand Boulevard | |||||||||||
Sponsored REITs | |||||||||||
Equity in income (loss) of non-consolidated REITs | (107) | (657) | (268) | ||||||||
Preferred shares purchased | 175.5 | 175.5 | |||||||||
Percentage of outstanding preferred shares purchased | 27.00% | 27.00% | |||||||||
Liquidating distribution receivable | $ 6,200 | ||||||||||
Gain (loss) on liquidation | $ (100) | ||||||||||
Amount received | $ 5,900 | ||||||||||
Beneficial interest | 300 | ||||||||||
Distributions received from non-consolidated REITs | |||||||||||
Distributions from non-consolidated REITs | $ 53 | $ 107 | $ 107 |
Related Party Transactions an_6
Related Party Transactions and Investments in Non-Consolidated Entities - Summarized financial information for Sponsored REITs (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)entity | Dec. 31, 2017USD ($)entity | Dec. 31, 2016USD ($)entity | |
Related Party Transactions and Investments in Non-Consolidated Entities | |||
Number of REITs in which are included in the operations data | entity | 6 | 7 | 9 |
Number of Sponsored REITs the Company held an interest in at period end | entity | 3 | 6 | 7 |
Balance Sheet Data (unaudited): | |||
Real estate, net | $ 97,034 | $ 312,861 | |
Other assets | 18,532 | 74,076 | |
Total liabilities | (75,382) | (151,092) | |
Shareholders' equity | 40,184 | 235,845 | |
Operating Data (unaudited): | |||
Rental revenues | 40,382 | 53,249 | $ 54,257 |
Other revenues | 1 | 7 | 39 |
Operating and maintenance expenses | (20,584) | (27,495) | (29,186) |
Depreciation and amortization | (13,077) | (18,395) | (18,274) |
Interest expense | (6,869) | (8,281) | (8,481) |
Gain (loss) on sale | 17,095 | (702) | 26,397 |
Net income (loss) | $ 16,948 | $ (1,617) | $ 24,752 |
Related Party Transactions an_7
Related Party Transactions and Investments in Non-Consolidated Entities - Management fees and interest income from loans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||
Asset management fees, low end of range (as a percent) | 1.00% | ||
Asset management fees, high end of range (as a percent) | 5.00% | ||
Notice period for cancellation of applicable contracts | 30 days | ||
Impairment of Sponsored REIT | $ 0 | ||
Asset Management Fees | $ 631,000 | ||
Asset Management | |||
Schedule of Equity Method Investments [Line Items] | |||
Asset Management Fees | $ 450,000 | $ 598,000 |
Related Party Transactions an_8
Related Party Transactions and Investments in Non-Consolidated Entities - Sponsored REIT Loans outstanding (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)loan | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Sponsored REITs | |||
Number of Sponsored REIT loans which bear interest at a fixed rate | loan | 2 | ||
Maximum amount of loan | $ 79,500,000 | ||
Amount Drawn | 70,660,000 | $ 71,720,000 | |
Interest income and fees from the Sponsored REIT Loans | $ 4,610,000 | $ 4,687,000 | $ 4,834,000 |
Sponsored REITs | |||
Sponsored REITs | |||
Term of sponsored REIT loan secured by mortgage, minimum | 1 year | ||
Term of sponsored REIT loan secured by mortgage, maximum | 3 years | ||
Secured revolving lines of credit | FSP Satellite Place Corp. | |||
Sponsored REITs | |||
Maximum amount of loan | $ 5,500,000 | ||
Amount Drawn | $ 1,060,000 | ||
Sponsored REIT loans, base rate | 30-day LIBOR | ||
Sponsored REIT loans, base rate margin (as a percent) | 4.40% | ||
Draw Fee (as a percent) | 0.50% | ||
Interest rate (as a percent) | 6.78% | ||
Secured revolving lines of credit | FSP Energy Tower I Corp. | |||
Sponsored REITs | |||
Maximum amount of loan | $ 20,000,000 | ||
Amount Drawn | $ 15,600,000 | ||
Sponsored REIT loans, base rate | 30-day LIBOR | ||
Sponsored REIT loans, base rate margin (as a percent) | 5.00% | ||
Draw Fee (as a percent) | 0.50% | ||
Interest rate (as a percent) | 7.38% | ||
Mortgage loan secured by property | FSP Energy Tower I Corp. | |||
Sponsored REITs | |||
Maximum amount of loan | $ 33,000,000 | ||
Amount Drawn | $ 33,000,000 | ||
Fixed rate of interest (as a percent) | 6.41% | ||
Interest rate (as a percent) | 6.41% | ||
Extension fee | $ 108,900 | ||
Mortgage loan secured by property | FSP Monument Circle LLC | |||
Sponsored REITs | |||
Maximum amount of loan | 21,000,000 | ||
Amount Drawn | $ 21,000,000 | ||
Fixed rate of interest (as a percent) | 7.19% | ||
Interest rate (as a percent) | 7.19% | ||
Origination fee | $ 164,000 | ||
Exit fee | $ 38,000 |
Bank Note Payable and Term Note
Bank Note Payable and Term Note Payable (Details) | Oct. 24, 2017USD ($) | Sep. 27, 2012USD ($) | Dec. 31, 2018USD ($)period | Dec. 31, 2016USD ($) | Aug. 02, 2018USD ($) | Dec. 31, 2017USD ($) |
Debt Instrument [Line Items] | ||||||
Borrowings outstanding | $ 25,000,000 | $ 78,000,000 | ||||
Amount drawn down | $ 150,000,000 | |||||
Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of loan | $ 200,000,000 | |||||
Fixed charge coverage ratio | 1.50 | |||||
Series A Notes | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of loan | $ 116,000,000 | |||||
Interest rate (as a percent) | 3.99% | |||||
Series B Notes | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of loan | $ 84,000,000 | |||||
Interest rate (as a percent) | 4.26% | |||||
Maximum | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Unsecured leverage ratio | 60.00% | |||||
Unsecured leverage ratio for significant acquisition | 65.00% | |||||
BAML Credit Facility | Federal Funds Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 0.50% | |||||
BAML Credit Facility | One month LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 1.00% | |||||
BAML Revolver | ||||||
Debt Instrument [Line Items] | ||||||
Weighted average interest rate (as a percent) | 3.09% | 2.31% | ||||
Effective interest rate (as a percent) | 3.63% | |||||
Total available | $ 600,000,000 | |||||
Number of periods of extension | period | 2 | |||||
Length of extension period | 6 months | |||||
Additional borrowing capacity allowed by exercising an accordion feature | $ 500,000,000 | |||||
Borrowings outstanding | $ 25,000,000 | $ 78,000,000 | ||||
Facility fee at period end (as a percent) | 0.25% | |||||
BAML Revolver | A- | A3 | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Facility fee (as a percent) | 0.125% | |||||
BAML Revolver | BBB+ | Baa1 | ||||||
Debt Instrument [Line Items] | ||||||
Facility fee (as a percent) | 0.15% | |||||
BAML Revolver | BBB | Baa2 | ||||||
Debt Instrument [Line Items] | ||||||
Facility fee (as a percent) | 0.20% | |||||
BAML Revolver | BBB- | Baa3 | ||||||
Debt Instrument [Line Items] | ||||||
Facility fee (as a percent) | 0.25% | |||||
BAML Revolver | BBB- | Baa3 | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Facility fee (as a percent) | 0.30% | |||||
BAML Revolver | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate at period end (as a percent) | 1.20% | |||||
BAML Revolver | LIBOR | A- | A3 | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 0.825% | |||||
BAML Revolver | LIBOR | BBB+ | Baa1 | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 0.875% | |||||
BAML Revolver | LIBOR | BBB | Baa2 | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 1.00% | |||||
BAML Revolver | LIBOR | BBB- | Baa3 | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 1.20% | |||||
BAML Revolver | LIBOR | BBB- | Baa3 | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 1.55% | |||||
BAML Revolver | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate at period end (as a percent) | 0.20% | |||||
BAML Revolver | Base Rate | A- | A3 | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 0.00% | |||||
BAML Revolver | Base Rate | BBB+ | Baa1 | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 0.00% | |||||
BAML Revolver | Base Rate | BBB | Baa2 | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 0.00% | |||||
BAML Revolver | Base Rate | BBB- | Baa3 | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 0.20% | |||||
BAML Revolver | Base Rate | BBB- | Baa3 | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 0.55% | |||||
BAML Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of loan | $ 400,000,000 | |||||
Effective interest rate (as a percent) | 2.47% | |||||
Additional borrowing capacity allowed by exercising an accordion feature | $ 500,000,000 | |||||
Amount drawn down | $ 400,000,000 | |||||
BAML Term Loan | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate at period end (as a percent) | 1.35% | |||||
Fixed rate (as a percent) | 1.12% | |||||
BAML Term Loan | LIBOR | A- | A3 | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 0.90% | |||||
BAML Term Loan | LIBOR | BBB+ | Baa1 | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 0.95% | |||||
BAML Term Loan | LIBOR | BBB | Baa2 | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 1.10% | |||||
BAML Term Loan | LIBOR | BBB- | Baa3 | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 1.35% | |||||
BAML Term Loan | LIBOR | BBB- | Baa3 | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 1.75% | |||||
BAML Term Loan | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate at period end (as a percent) | 0.35% | |||||
BAML Term Loan | Base Rate | A- | A3 | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 0.00% | |||||
BAML Term Loan | Base Rate | BBB+ | Baa1 | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 0.00% | |||||
BAML Term Loan | Base Rate | BBB | Baa2 | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 0.10% | |||||
BAML Term Loan | Base Rate | BBB- | Baa3 | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 0.35% | |||||
BAML Term Loan | Base Rate | BBB- | Baa3 | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 0.75% | |||||
JPM Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of loan | $ 150,000,000 | |||||
Interest rate during period (as a percent) | 3.63% | |||||
Weighted average interest rate (as a percent) | 3.33% | 2.45% | ||||
JPM Term Loan | Eurodollar Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate at period end (as a percent) | 1.25% | |||||
JPM Term Loan | Eurodollar Rate | A- | A3 | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 0.85% | |||||
JPM Term Loan | Eurodollar Rate | BBB+ | Baa1 | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 0.90% | |||||
JPM Term Loan | Eurodollar Rate | BBB | Baa2 | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 1.00% | |||||
JPM Term Loan | Eurodollar Rate | BBB- | Baa3 | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 1.25% | |||||
JPM Term Loan | Eurodollar Rate | BBB- | Baa3 | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 1.65% | |||||
JPM Term Loan | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 1.00% | |||||
JPM Term Loan | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate at period end (as a percent) | 25.00% | |||||
JPM Term Loan | Base Rate | BBB- | Baa3 | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 0.25% | |||||
JPM Term Loan | Base Rate | BBB- | Baa3 | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 0.65% | |||||
JPM Term Loan | Federal Funds Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 0.50% | |||||
BMO Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of loan | $ 220,000,000 | |||||
Additional loans allowed by exercising an accordion feature | $ 100,000,000 | |||||
Effective interest rate (as a percent) | 3.57% | |||||
BMO Term Loan | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate at period end (as a percent) | 1.25% | |||||
Fixed rate (as a percent) | 2.32% | |||||
BMO Term Loan | LIBOR | A- | A3 | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 0.85% | |||||
BMO Term Loan | LIBOR | BBB+ | Baa1 | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 0.90% | |||||
BMO Term Loan | LIBOR | BBB | Baa2 | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 1.00% | |||||
BMO Term Loan | LIBOR | BBB- | Baa3 | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 1.25% | |||||
BMO Term Loan | LIBOR | BBB- | Baa3 | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 1.65% | |||||
BMO Term Loan | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate at period end (as a percent) | 0.25% | |||||
BMO Term Loan | Base Rate | BBB- | Baa3 | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 0.25% | |||||
BMO Term Loan | Base Rate | BBB- | Baa3 | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 0.65% | |||||
BMO Term Loan | Federal Funds Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 0.50% | |||||
BMO Term Loan | One month LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 1.00% | |||||
Tranche A Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of loan | $ 55,000,000 | |||||
Tranche B Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of loan | $ 165,000,000 |
Financial Instruments_ Deriva_3
Financial Instruments: Derivatives and Hedging (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financial Instruments: Derivatives and Hedging | |||
Interest reclassified from accumulated other comprehensive income into interest expense | $ 2,700 | ||
Amount estimated to be reclassified into earnings within next 12 months | 5,500 | ||
Hedge ineffectiveness | $ (1,878) | $ 1,878 | |
Cash flow hedges | |||
Financial Instruments: Derivatives and Hedging | |||
Unrealized gains or losses on derivative financial instruments in accumulated other comprehensive income | $ 2,600 | ||
BMO Term Loan | BAML Term Loan | |||
Financial Instruments: Derivatives and Hedging | |||
Percentage floor of spread payable to the counterparty | 0.00% | ||
2017 Interest Rate Swap | |||
Financial Instruments: Derivatives and Hedging | |||
Notional Value | $ 400,000 | ||
Strike Rate (as a percent) | 1.12% | ||
Fair Value | $ 14,100 | ||
Fair Value | 14,100 | ||
BMO Interest Rate Swap | |||
Financial Instruments: Derivatives and Hedging | |||
Notional Value | $ 220,000 | ||
Strike Rate (as a percent) | 2.32% | ||
Fair Value | $ 700 | ||
Fair Value | $ 665 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) $ / shares in Units, $ in Thousands | Aug. 16, 2016USD ($)$ / sharesshares | Dec. 31, 2018itemshares | Dec. 31, 2016USD ($) |
Stockholders' Equity | |||
Shares of common stock sold | 7,043,750 | ||
Price per share of common stock sold (in dollars per share) | $ / shares | $ 12.35 | ||
Proceeds from equity offering | $ | $ 82,900 | $ 83,511 | |
2002 Stock Incentive Plan | |||
Equity-Based Compensation | |||
Maximum number of shares provided for grant under equity-based incentive compensation plan | 2,000,000 | ||
Number of vesting requirements | item | 0 | ||
Number of shares available for grant under the plan | 1,944,428 | ||
Underwriter Overallotment Option | |||
Stockholders' Equity | |||
Shares of common stock sold | 918,750 |
Federal Income Tax Reporting -
Federal Income Tax Reporting - General and Income Tax Expense (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Federal Income Tax Reporting | |||
Maximum ownership as a percentage of the voting power or value of the securities of each issuer other than REIT or "TRS" | 10.00% | ||
Maximum ownership of securities in all TRS (as a percent) | 20.00% | 25.00% | |
Maximum ownership of securities in all TRS when considered together with other non-real estate assets (as a percent) | 25.00% | ||
Period of statute of limitations applicable to the entity's income tax returns | 3 years | ||
Net operating losses | |||
NOLs expiration period | 20 years | ||
Gross amount of NOLs available to company | $ 13,041,000 | $ 13,041,000 | $ 13,041,000 |
Income Tax Expense | |||
Revised Texas franchise tax | 319,000 | 355,000 | 352,000 |
Other Taxes | 41,000 | 45,000 | 66,000 |
Taxes on income | 360,000 | 400,000 | $ 418,000 |
Deferred income taxes | 0 | ||
Real estate assets net tax basis more (less) than book basis | $ 199,556,000 | $ 208,434,000 |
Federal Income Tax Reporting _2
Federal Income Tax Reporting - Reconciliation Between GAAP Net Income and Taxable Income, Tax Components of Distributions (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation Between GAAP Net Income and Taxable Income | |||||||||||
Net income per books | $ 1,371 | $ 9,608 | $ 665 | $ 1,425 | $ (4,932) | $ 1,903 | $ (17,395) | $ 4,480 | $ 13,069 | $ (15,944) | $ 8,378 |
Adjustment to book income: | |||||||||||
Book depreciation and amortization | 93,675 | 100,227 | 92,557 | ||||||||
Tax depreciation and amortization | (62,657) | (62,653) | (59,171) | ||||||||
Tax basis more than book basis on assets sold | (907) | (576) | |||||||||
Straight line rent adjustment, net | (1,350) | (2,977) | (2,976) | ||||||||
Deferred rent, net | 210 | 1,226 | 2 | ||||||||
Non-taxable distributions | (710) | (1,289) | (970) | ||||||||
Other, net | (6,651) | 6,582 | (1,648) | ||||||||
Taxable income | 35,586 | 24,265 | 35,596 | ||||||||
Taxable income subject to distribution requirement | $ 35,586 | $ 24,265 | $ 35,596 | ||||||||
Tax components of the Company's common distributions paid per share | |||||||||||
Ordinary income (in dollars per share) | $ 0.35 | $ 0.24 | $ 0.39 | ||||||||
Return of capital (in dollars per share) | 0.11 | 0.52 | 0.37 | ||||||||
Total (in dollars per share) | $ 0.46 | $ 0.76 | $ 0.76 | ||||||||
Ordinary income (as a percent) | 76.39% | 31.74% | 50.82% | ||||||||
Return of capital (as a percent) | 23.61% | 68.26% | 49.18% | ||||||||
Total (as a percent) | 100.00% | 100.00% | 100.00% |
Commitments (Details)
Commitments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments | |||
Rent expense | $ 411,000 | $ 420,000 | $ 411,000 |
Maximum amount of loan | 79,500,000 | ||
Amount drawn and outstanding | 70,660,000 | $ 71,720,000 | |
Office buildings and industrial properties | |||
Future minimum rental income: | |||
2,019 | 169,471,000 | ||
2,020 | 161,287,000 | ||
2,021 | 142,712,000 | ||
2,022 | 116,306,000 | ||
2,023 | 97,853,000 | ||
Thereafter (2023-2036) | 269,863,000 | ||
Total | $ 957,492,000 | ||
Office buildings and industrial properties | Minimum | |||
Commitments | |||
Lease term | 1 year | ||
Corporate office space | |||
Commitments | |||
Extension period | 5 years | ||
Future minimum lease payments: | |||
2,019 | $ 412,000 | ||
2,020 | 421,000 | ||
2,021 | 429,000 | ||
2,022 | 438,000 | ||
2,023 | 447,000 | ||
Thereafter | 340,000 | ||
Total | $ 2,487,000 |
Retirement Plan (Details)
Retirement Plan (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Plan | |||
Maximum employee compensation to be deferred per year | $ 17,000 | ||
Maximum employer matching contribution as a percentage of annual compensation | 3.00% | ||
Maximum employee salary that the employer will match | $ 200,000 | ||
Company's total contribution under 401 (k) plan | $ 139,000 | $ 132,000 | $ 143,000 |
Dispositions of Properties (Det
Dispositions of Properties (Details) - USD ($) $ in Thousands | Oct. 20, 2017 | Jan. 06, 2017 | Dec. 16, 2016 | Apr. 05, 2016 | Jun. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2017 |
Gain (loss) on sale of property | ||||||||||
Gain (loss) on sale of property | $ (18,481) | $ (2,938) | ||||||||
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | Office Property In Federal Way Washington | ||||||||||
Gain (loss) on sale of property | ||||||||||
Assets Held-for-sale, Not Part of Disposal Group | $ 9,300 | $ 8,800 | ||||||||
Provision for loss on property held | $ 4,800 | 500 | ||||||||
Gain (loss) on sale of property | $ 5,300 | |||||||||
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | Office Property in Baltimore Maryland | ||||||||||
Gain (loss) on sale of property | ||||||||||
Assets Held-for-sale, Not Part of Disposal Group | $ 31,600 | $ 31,900 | ||||||||
Loss contingency on property held | 20,700 | $ 20,500 | ||||||||
Provision for loss on property held | $ 300 | |||||||||
Disposal group disposed of by sale, not classified as discontinued operations | Office Property In Milpitas, California | ||||||||||
Gain (loss) on sale of property | ||||||||||
Gain (loss) on sale of property | $ 2,300 | |||||||||
Disposal group disposed of by sale, not classified as discontinued operations | Office Property In Maryland Heights Missouri | ||||||||||
Gain (loss) on sale of property | ||||||||||
Gain (loss) on sale of property | $ 4,200 | |||||||||
Disposal group disposed of by sale, not classified as discontinued operations | Office Property In Federal Way Washington | ||||||||||
Gain (loss) on sale of property | ||||||||||
Gain (loss) on sale of property | $ (7,100) | |||||||||
Net Proceeds | $ 7,300 | |||||||||
Disposal group disposed of by sale, not classified as discontinued operations | Office Property in Baltimore Maryland | ||||||||||
Gain (loss) on sale of property | ||||||||||
Gain (loss) on sale of property | $ (20,800) | |||||||||
Net Proceeds | $ 31,600 |
Subsequent Events (Details)
Subsequent Events (Details) | Jan. 11, 2019$ / shares |
Cash distribution declared | Subsequent Events. | |
Subsequent Events | |
Cash dividend declared per share (in dollars per share) | $ 0.09 |
Selected Unaudited Quarterly _3
Selected Unaudited Quarterly Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Selected Unaudited Quarterly Information | |||||||||||
Revenues | $ 66,578 | $ 68,705 | $ 66,694 | $ 66,893 | $ 66,835 | $ 68,626 | $ 68,371 | $ 68,756 | $ 268,870 | $ 272,588 | $ 249,888 |
Income (loss) from continuing operations | 1,371 | 9,608 | 665 | 1,425 | (4,932) | 1,903 | (17,395) | 4,480 | |||
Net income (loss) | $ 1,371 | $ 9,608 | $ 665 | $ 1,425 | $ (4,932) | $ 1,903 | $ (17,395) | $ 4,480 | $ 13,069 | $ (15,944) | $ 8,378 |
Basic and diluted net income (loss) per share | $ 0.01 | $ 0.09 | $ 0.01 | $ 0.01 | $ (0.05) | $ 0.02 | $ (0.16) | $ 0.04 | $ 0.12 | $ (0.15) | $ 0.08 |
Weighted average number of shares outstanding | 107,231,000 | 107,231,000 | 107,231,000 | 107,231,000 | 107,231,000 | 107,231,000 | 107,231,000 | 107,231,000 | 107,231,000 | 107,231,000 | 102,843,000 |
Schedule II Valuation and qua_2
Schedule II Valuation and qualifying accounts (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for doubtful accounts - Tenant rent receivables | |||
Movement in valuation and qualifying accounts | |||
Balance at beginning of year | $ 250,000 | $ 100,000 | $ 130,000 |
Additions (Decreases) charged to costs and expenses | 128,000 | 178,000 | 78,000 |
Deductions | (178,000) | (28,000) | (108,000) |
Balance at end of year | 200,000 | 250,000 | 100,000 |
Allowance for doubtful accounts - Straight-line rent receivable | |||
Movement in valuation and qualifying accounts | |||
Balance at beginning of year | 50,000 | 50,000 | 50,000 |
Balance at end of year | $ 50,000 | $ 50,000 | $ 50,000 |
SCHEDULE III REAL ESTATE AND _2
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | $ 0 | |||
Accumulated Depreciation | 432,579,000 | $ 376,131,000 | $ 338,506,000 | $ 299,991,000 |
Aggregate cost for Federal Income Tax purposes | 2,281,670 | |||
Real Estate Excluding Assets Held For Sale | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | 192,072,000 | |||
Initial cost of Buildings Improvements and Equipment | 1,610,255,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 256,025,000 | |||
Historical Cost of Land | 191,578,000 | |||
Historical Cost of Buildings Improvements and Equipment | 1,866,774,000 | |||
Total | 2,058,352,000 | |||
Accumulated Depreciation | 432,579,000 | |||
Total Costs, Net of Accumulated Depreciation | 1,625,773,000 | |||
Forest Park, Charlotte, NC | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | 1,559,000 | |||
Initial cost of Buildings Improvements and Equipment | 5,672,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 170,000 | |||
Historical Cost of Land | 1,559,000 | |||
Historical Cost of Buildings Improvements and Equipment | 5,842,000 | |||
Total | 7,401,000 | |||
Accumulated Depreciation | 2,426,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 4,975,000 | |||
Forest Park, Charlotte, NC | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Forest Park, Charlotte, NC | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Meadow Point, Chantilly, VA | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 2,634,000 | |||
Initial cost of Buildings Improvements and Equipment | 18,911,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 7,028,000 | |||
Historical Cost of Land | 2,634,000 | |||
Historical Cost of Buildings Improvements and Equipment | 25,939,000 | |||
Total | 28,573,000 | |||
Accumulated Depreciation | 12,566,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 16,007,000 | |||
Meadow Point, Chantilly, VA | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Meadow Point, Chantilly, VA | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Timberlake, Chesterfield, MO | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 2,984,000 | |||
Initial cost of Buildings Improvements and Equipment | 38,661,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 9,141,000 | |||
Historical Cost of Land | 2,984,000 | |||
Historical Cost of Buildings Improvements and Equipment | 47,802,000 | |||
Total | 50,786,000 | |||
Accumulated Depreciation | 19,207,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 31,579,000 | |||
Timberlake, Chesterfield, MO | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Timberlake, Chesterfield, MO | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Northwest Point, Elk Grove Village, IL | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 2,914,000 | |||
Initial cost of Buildings Improvements and Equipment | 26,295,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 12,007,000 | |||
Historical Cost of Land | 2,914,000 | |||
Historical Cost of Buildings Improvements and Equipment | 38,302,000 | |||
Total | 41,216,000 | |||
Accumulated Depreciation | 17,281,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 23,935,000 | |||
Northwest Point, Elk Grove Village, IL | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Northwest Point, Elk Grove Village, IL | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Timberlake East, Chesterfield, MO | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 2,626,000 | |||
Initial cost of Buildings Improvements and Equipment | 17,608,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 4,464,000 | |||
Historical Cost of Land | 2,626,000 | |||
Historical Cost of Buildings Improvements and Equipment | 22,072,000 | |||
Total | 24,698,000 | |||
Accumulated Depreciation | 8,986,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 15,712,000 | |||
Timberlake East, Chesterfield, MO | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Timberlake East, Chesterfield, MO | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Park Ten, Houston, TX | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 1,061,000 | |||
Initial cost of Buildings Improvements and Equipment | 21,303,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 5,077,000 | |||
Historical Cost of Land | 567,000 | |||
Historical Cost of Buildings Improvements and Equipment | 26,874,000 | |||
Total | 27,441,000 | |||
Accumulated Depreciation | 11,208,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 16,233,000 | |||
Park Ten, Houston, TX | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Park Ten, Houston, TX | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Addison, Addison, TX | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 4,325,000 | |||
Initial cost of Buildings Improvements and Equipment | 48,040,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 7,641,000 | |||
Historical Cost of Land | 4,325,000 | |||
Historical Cost of Buildings Improvements and Equipment | 55,681,000 | |||
Total | 60,006,000 | |||
Accumulated Depreciation | 18,951,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 41,055,000 | |||
Addison, Addison, TX | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Addison, Addison, TX | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Collins, Richardson, TX | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 4,000,000 | |||
Initial cost of Buildings Improvements and Equipment | 42,598,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 6,962,000 | |||
Historical Cost of Land | 4,000,000 | |||
Historical Cost of Buildings Improvements and Equipment | 49,560,000 | |||
Total | 53,560,000 | |||
Accumulated Depreciation | 20,337,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 33,223,000 | |||
Collins, Richardson, TX | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Collins, Richardson, TX | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Greenwood, Englewood, CO | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 3,100,000 | |||
Initial cost of Buildings Improvements and Equipment | 30,201,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 10,698,000 | |||
Historical Cost of Land | 3,100,000 | |||
Historical Cost of Buildings Improvements and Equipment | 40,899,000 | |||
Total | 43,999,000 | |||
Accumulated Depreciation | 15,408,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 28,591,000 | |||
Greenwood, Englewood, CO | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Greenwood, Englewood, CO | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
River Crossing, Indianapolis, IN | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 3,000,000 | |||
Initial cost of Buildings Improvements and Equipment | 36,926,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 4,331,000 | |||
Historical Cost of Land | 3,000,000 | |||
Historical Cost of Buildings Improvements and Equipment | 41,257,000 | |||
Total | 44,257,000 | |||
Accumulated Depreciation | 14,422,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 29,835,000 | |||
River Crossing, Indianapolis, IN | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
River Crossing, Indianapolis, IN | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Innsbrook, Glenn Allen, VA | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 5,000,000 | |||
Initial cost of Buildings Improvements and Equipment | 40,216,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 4,175,000 | |||
Historical Cost of Land | 5,000,000 | |||
Historical Cost of Buildings Improvements and Equipment | 44,391,000 | |||
Total | 49,391,000 | |||
Accumulated Depreciation | 16,643,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 32,748,000 | |||
Innsbrook, Glenn Allen, VA | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Innsbrook, Glenn Allen, VA | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
380 Interlocken, Bloomfield, CO | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 8,275,000 | |||
Initial cost of Buildings Improvements and Equipment | 34,462,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 8,749,000 | |||
Historical Cost of Land | 8,275,000 | |||
Historical Cost of Buildings Improvements and Equipment | 43,211,000 | |||
Total | 51,486,000 | |||
Accumulated Depreciation | 16,967,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 34,519,000 | |||
380 Interlocken, Bloomfield, CO | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
380 Interlocken, Bloomfield, CO | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Blue Lagoon, Miami, FL | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 6,306,000 | |||
Initial cost of Buildings Improvements and Equipment | 46,124,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 2,800,000 | |||
Historical Cost of Land | 6,306,000 | |||
Historical Cost of Buildings Improvements and Equipment | 48,924,000 | |||
Total | 55,230,000 | |||
Accumulated Depreciation | 16,798,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 38,432,000 | |||
Blue Lagoon, Miami, FL | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Blue Lagoon, Miami, FL | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Eldridge Green, Houston, TX | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 3,900,000 | |||
Initial cost of Buildings Improvements and Equipment | 43,791,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 4,023,000 | |||
Historical Cost of Land | 3,900,000 | |||
Historical Cost of Buildings Improvements and Equipment | 47,814,000 | |||
Total | 51,714,000 | |||
Accumulated Depreciation | 16,841,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 34,873,000 | |||
Eldridge Green, Houston, TX | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Eldridge Green, Houston, TX | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Liberty Plaza, Addison, TX | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 4,374,000 | |||
Initial cost of Buildings Improvements and Equipment | 21,146,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 7,017,000 | |||
Historical Cost of Land | 4,374,000 | |||
Historical Cost of Buildings Improvements and Equipment | 28,163,000 | |||
Total | 32,537,000 | |||
Accumulated Depreciation | 10,276,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 22,261,000 | |||
Liberty Plaza, Addison, TX | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Liberty Plaza, Addison, TX | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
One Overton, Atlanta, GA | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 3,900,000 | |||
Initial cost of Buildings Improvements and Equipment | 77,229,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 14,823,000 | |||
Historical Cost of Land | 3,900,000 | |||
Historical Cost of Buildings Improvements and Equipment | 92,052,000 | |||
Total | 95,952,000 | |||
Accumulated Depreciation | 31,502,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 64,450,000 | |||
One Overton, Atlanta, GA | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
One Overton, Atlanta, GA | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
FSP 390 Interlocken, Broomfield, CO | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 7,013,000 | |||
Initial cost of Buildings Improvements and Equipment | 37,751,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 7,382,000 | |||
Historical Cost of Land | 7,013,000 | |||
Historical Cost of Buildings Improvements and Equipment | 45,133,000 | |||
Total | 52,146,000 | |||
Accumulated Depreciation | 14,923,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 37,223,000 | |||
FSP 390 Interlocken, Broomfield, CO | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
FSP 390 Interlocken, Broomfield, CO | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Park Ten II, Houston, TX | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 1,300,000 | |||
Initial cost of Buildings Improvements and Equipment | 31,712,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 1,646,000 | |||
Historical Cost of Land | 1,300,000 | |||
Historical Cost of Buildings Improvements and Equipment | 33,358,000 | |||
Total | 34,658,000 | |||
Accumulated Depreciation | 8,952,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 25,706,000 | |||
Park Ten II, Houston, TX | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Park Ten II, Houston, TX | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Dulles Virginia, Sterling, VA | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 4,813,000 | |||
Initial cost of Buildings Improvements and Equipment | 13,285,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 5,829,000 | |||
Historical Cost of Land | 4,813,000 | |||
Historical Cost of Buildings Improvements and Equipment | 19,114,000 | |||
Total | 23,927,000 | |||
Accumulated Depreciation | 5,480,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 18,447,000 | |||
Dulles Virginia, Sterling, VA | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Dulles Virginia, Sterling, VA | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Stonecroft, Chantilly, VA | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 2,102,000 | |||
Initial cost of Buildings Improvements and Equipment | 18,003,000 | |||
Historical Cost of Land | 2,102,000 | |||
Historical Cost of Buildings Improvements and Equipment | 18,003,000 | |||
Total | 20,105,000 | |||
Accumulated Depreciation | 4,385,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 15,720,000 | |||
Stonecroft, Chantilly, VA | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Stonecroft, Chantilly, VA | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
121 South Eight Street, Minneapolis, MN | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 4,444,000 | |||
Initial cost of Buildings Improvements and Equipment | 15,214,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 20,805,000 | |||
Historical Cost of Land | 4,444,000 | |||
Historical Cost of Buildings Improvements and Equipment | 36,019,000 | |||
Total | 40,463,000 | |||
Accumulated Depreciation | 7,245,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 33,218,000 | |||
121 South Eight Street, Minneapolis, MN | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
121 South Eight Street, Minneapolis, MN | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
801 Marquette Avenue South, Minneapolis, MN | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 4,184,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 18,505,000 | |||
Historical Cost of Land | 4,184,000 | |||
Historical Cost of Buildings Improvements and Equipment | 18,505,000 | |||
Total | 22,689,000 | |||
Accumulated Depreciation | 156,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 22,533,000 | |||
801 Marquette Avenue South, Minneapolis, MN | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
801 Marquette Avenue South, Minneapolis, MN | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
909 Davis, Evanston, IL | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 4,912,000 | |||
Initial cost of Buildings Improvements and Equipment | 18,229,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 6,429,000 | |||
Historical Cost of Land | 4,912,000 | |||
Historical Cost of Buildings Improvements and Equipment | 24,658,000 | |||
Total | 29,570,000 | |||
Accumulated Depreciation | 4,774,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 24,796,000 | |||
909 Davis, Evanston, IL | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
909 Davis, Evanston, IL | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Emperor Boulevard, Durham, NC | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 2,423,000 | |||
Initial cost of Buildings Improvements and Equipment | 53,997,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 52,000 | |||
Historical Cost of Land | 2,423,000 | |||
Historical Cost of Buildings Improvements and Equipment | 54,049,000 | |||
Total | 56,472,000 | |||
Accumulated Depreciation | 10,855,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 45,617,000 | |||
Emperor Boulevard, Durham, NC | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Emperor Boulevard, Durham, NC | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Legacy Tennyson Center, Plano, TX | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 3,067,000 | |||
Initial cost of Buildings Improvements and Equipment | 22,064,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 2,120,000 | |||
Historical Cost of Land | 3,067,000 | |||
Historical Cost of Buildings Improvements and Equipment | 24,184,000 | |||
Total | 27,251,000 | |||
Accumulated Depreciation | 4,673,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 22,578,000 | |||
Legacy Tennyson Center, Plano, TX | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Legacy Tennyson Center, Plano, TX | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
One Legacy Circle, Plano, TX | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 2,590,000 | |||
Initial cost of Buildings Improvements and Equipment | 36,608,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 2,661,000 | |||
Historical Cost of Land | 2,590,000 | |||
Historical Cost of Buildings Improvements and Equipment | 39,269,000 | |||
Total | 41,859,000 | |||
Accumulated Depreciation | 8,164,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 33,695,000 | |||
One Legacy Circle, Plano, TX | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
One Legacy Circle, Plano, TX | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
One Ravinia Drive, Atlanta, GA | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 2,686,000 | |||
Initial cost of Buildings Improvements and Equipment | 35,125,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 7,353,000 | |||
Historical Cost of Land | 2,686,000 | |||
Historical Cost of Buildings Improvements and Equipment | 42,478,000 | |||
Total | 45,164,000 | |||
Accumulated Depreciation | 7,653,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 37,511,000 | |||
One Ravinia Drive, Atlanta, GA | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
One Ravinia Drive, Atlanta, GA | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Two Ravinia Drive, Atlanta, GA | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 7,375,000 | |||
Initial cost of Buildings Improvements and Equipment | 58,726,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 9,175,000 | |||
Historical Cost of Land | 7,375,000 | |||
Historical Cost of Buildings Improvements and Equipment | 67,901,000 | |||
Total | 75,276,000 | |||
Accumulated Depreciation | 6,749,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 68,527,000 | |||
Two Ravinia Drive, Atlanta, GA | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Two Ravinia Drive, Atlanta, GA | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Westchase I & II, Houston, TX | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 8,491,000 | |||
Initial cost of Buildings Improvements and Equipment | 121,508,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 10,210,000 | |||
Historical Cost of Land | 8,491,000 | |||
Historical Cost of Buildings Improvements and Equipment | 131,718,000 | |||
Total | 140,209,000 | |||
Accumulated Depreciation | 21,427,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 118,782,000 | |||
Westchase I & II, Houston, TX | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Westchase I & II, Houston, TX | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
1999 Broadway, Denver, CO | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 16,334,000 | |||
Initial cost of Buildings Improvements and Equipment | 137,726,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 17,724,000 | |||
Historical Cost of Land | 16,334,000 | |||
Historical Cost of Buildings Improvements and Equipment | 155,450,000 | |||
Total | 171,784,000 | |||
Accumulated Depreciation | 22,967,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 148,817,000 | |||
1999 Broadway, Denver, CO | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
1999 Broadway, Denver, CO | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
999 Peachtree, Atlanta, GA | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 10,187,000 | |||
Initial cost of Buildings Improvements and Equipment | 107,727,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 13,113,000 | |||
Historical Cost of Land | 10,187,000 | |||
Historical Cost of Buildings Improvements and Equipment | 120,840,000 | |||
Total | 131,027,000 | |||
Accumulated Depreciation | 17,324,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 113,703,000 | |||
999 Peachtree, Atlanta, GA | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
999 Peachtree, Atlanta, GA | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
1001 17th Street, Denver, CO | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 17,413,000 | |||
Initial cost of Buildings Improvements and Equipment | 165,058,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 12,186,000 | |||
Historical Cost of Land | 17,413,000 | |||
Historical Cost of Buildings Improvements and Equipment | 177,244,000 | |||
Total | 194,657,000 | |||
Accumulated Depreciation | 24,274,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 170,383,000 | |||
1001 17th Street, Denver, CO | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
1001 17th Street, Denver, CO | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Plaza Seven, Minneapolis, MN | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 6,604,000 | |||
Initial cost of Buildings Improvements and Equipment | 54,240,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 7,457,000 | |||
Historical Cost of Land | 6,604,000 | |||
Historical Cost of Buildings Improvements and Equipment | 61,697,000 | |||
Total | 68,301,000 | |||
Accumulated Depreciation | 4,907,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 63,394,000 | |||
Plaza Seven, Minneapolis, MN | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Plaza Seven, Minneapolis, MN | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Pershing Plaza, Atlanta, GA | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 5,300,000 | |||
Initial cost of Buildings Improvements and Equipment | 34,158,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 1,218,000 | |||
Historical Cost of Land | 5,300,000 | |||
Historical Cost of Buildings Improvements and Equipment | 35,376,000 | |||
Total | 40,676,000 | |||
Accumulated Depreciation | 2,173,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 38,503,000 | |||
Pershing Plaza, Atlanta, GA | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Pershing Plaza, Atlanta, GA | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
600 17th Street, Denver, Co | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 20,876,000 | |||
Initial cost of Buildings Improvements and Equipment | 99,941,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 3,054,000 | |||
Historical Cost of Land | 20,876,000 | |||
Historical Cost of Buildings Improvements and Equipment | 102,995,000 | |||
Total | 123,871,000 | |||
Accumulated Depreciation | 5,679,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 118,192,000 | |||
600 17th Street, Denver, Co | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
600 17th Street, Denver, Co | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years |
SCHEDULE III REAL ESTATE AND _3
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION - Changes in real estate investments and accumulated depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Real estate investments, at cost: | |||
Balance, beginning of year | $ 2,008,823 | $ 2,027,520 | $ 1,809,615 |
Acquisitions | 221,119 | ||
Improvements | 53,279 | 54,097 | 39,438 |
Assets held for sale | (5,023) | ||
Dispositions | (3,750) | (72,794) | (42,652) |
Balance-Real Estate | 2,058,352 | 2,008,823 | 2,022,497 |
Assets held for sale | 5,023 | ||
Balance, end of year | 2,058,352 | 2,008,823 | 2,027,520 |
Accumulated depreciation: | |||
Balance, beginning of year | 376,131 | 338,506 | 299,991 |
Depreciation | 60,198 | 57,312 | 52,466 |
Assets held for sale | (1,278) | ||
Dispositions | (3,750) | (19,687) | (13,951) |
Balance- Accumulated Depreciation | 432,579 | 376,131 | 337,228 |
Assets held for sale | 1,278 | ||
Balance, end of year | $ 432,579 | $ 376,131 | $ 338,506 |