Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 18, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2019 | |
Entity File Number | 001-11312 | |
Entity Registrant Name | COUSINS PROPERTIES INC | |
Entity Central Index Key | 0000025232 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Incorporation, State or Country Code | GA | |
Entity Tax Identification Number | 58-0869052 | |
Entity Address, Address Line One | 3344 Peachtree Road NE | |
Entity Address, Address Line Two | Suite 1800 | |
Entity Address, City or Town | Atlanta | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30326-4802 | |
City Area Code | 404 | |
Local Phone Number | 407-1000 | |
Title of 12(b) Security | Common Stock, $1 par value per share | |
Trading Symbol | CUZ | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 146,763,027 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Real estate assets: | ||
Operating properties, net of accumulated depreciation of $500,509 and $421,495 in 2019 and 2018, respectively | $ 5,594,814 | $ 3,603,011 |
Projects under development | 287,619 | 24,217 |
Land | 110,212 | 72,563 |
Total real estate assets | 5,992,645 | 3,699,791 |
Real estate assets and other assets held for sale, net of accumulated depreciation and amortization of $0 in 2019 | 29,193 | 0 |
Cash and cash equivalents | 11,885 | 2,547 |
Restricted cash | 2,182 | 148 |
Notes and accounts receivable | 24,139 | 13,821 |
Deferred rents receivable | 96,659 | 83,116 |
Investment in unconsolidated joint ventures | 176,169 | 161,907 |
Intangible assets, net | 283,139 | 145,883 |
Other assets | 60,661 | 39,083 |
Total assets | 6,676,672 | 4,146,296 |
Liabilities: | ||
Notes payable | 1,837,449 | 1,062,570 |
Accounts payable and accrued expenses | 188,337 | 110,159 |
Deferred income | 56,477 | 41,266 |
Intangible liabilities, net of accumulated amortization of $49,034 and $42,473 in 2019 and 2018, respectively | 101,735 | 56,941 |
Other liabilities | 123,056 | 54,204 |
Total liabilities | 2,307,054 | 1,325,140 |
Commitments and contingencies | ||
Stockholders' investment: | ||
Preferred stock, $1 par value, 20,000,000 shares authorized, 1,716,837 shares issued and outstanding in 2019 and 2018 | 1,717 | 1,717 |
Common stock, $1 par value, 300,000,000 and 175,000,000 shares authorized in 2019 and 2018, respectively, and 149,347,960 and 107,681,130 shares issued in 2019 and 2018, respectively | 149,348 | 107,681 |
Additional paid-in capital | 5,492,648 | 3,934,385 |
Treasury stock at cost, 2,584,933 shares in 2019 and 2018 | (148,473) | (148,473) |
Distributions in excess of cumulative net income | (1,189,567) | (1,129,445) |
Total stockholders' investment | 4,305,673 | 2,765,865 |
Nonredeemable noncontrolling interests | 63,945 | 55,291 |
Total equity | 4,369,618 | 2,821,156 |
Total liabilities and equity | $ 6,676,672 | $ 4,146,296 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation on operating properties | $ 500,509 | $ 421,495 |
Accumulated deprecation and amortization on real estate and other assets held for sale | 0 | |
Accumulated amortization on intangible liabilities | $ 49,034 | $ 42,473 |
Preferred stock, par value (in usd per share) | $ 1 | $ 1 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 1,716,837 | 1,716,837 |
Preferred stock, shares outstanding | 1,716,837 | 1,716,837 |
Common stock, par value (in usd per share) | $ 1 | $ 1 |
Common stock, shares authorized | 300,000,000 | 175,000,000 |
Common stock, shares issued | 149,347,960 | 107,681,130 |
Treasury stock, shares | 2,584,933 | 2,584,933 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues: | ||||
Revenues | $ 142,020 | $ 116,628 | $ 274,753 | $ 233,830 |
Expenses: | ||||
Rental property operating expenses | 46,705 | 40,731 | 90,192 | 80,922 |
Reimbursed expenses | 1,047 | 860 | 1,979 | 1,802 |
General and administrative expenses | 8,374 | 8,071 | 19,834 | 14,880 |
Interest expense | 12,059 | 9,714 | 22,879 | 19,492 |
Depreciation and amortization | 50,904 | 45,675 | 96,765 | 90,768 |
Transaction costs | 49,827 | 137 | 49,830 | 228 |
Other | 624 | 44 | 804 | 364 |
Total costs and expenses | 169,540 | 105,232 | 282,283 | 208,456 |
Income from unconsolidated joint ventures | 3,634 | 5,036 | 6,538 | 7,921 |
Gain on sale of investment properties | 1,304 | 5,317 | 14,415 | 4,945 |
Loss on extinguishment of debt | 0 | 0 | 0 | (85) |
Net income (loss) | (22,582) | 21,749 | 13,423 | 38,155 |
Net (income) loss attributable to noncontrolling interests | 173 | (473) | (491) | (836) |
Net income (loss) available to common stockholders | $ (22,409) | $ 21,276 | $ 12,932 | $ 37,319 |
Net income (loss) per common share — basic and diluted (in usd per share) | $ (0.20) | $ 0.20 | $ 0.12 | $ 0.36 |
Weighted average shares — basic (in shares) | 112,926 | 105,073 | 109,049 | 105,056 |
Weighted average shares — diluted (in shares) | 114,670 | 106,875 | 110,822 | 106,861 |
Rental property revenues | ||||
Revenues: | ||||
Revenues | $ 134,933 | $ 114,337 | $ 258,798 | $ 228,045 |
Fee income | ||||
Revenues: | ||||
Revenues | 7,076 | 1,798 | 15,804 | 4,692 |
Other | ||||
Revenues: | ||||
Revenues | $ 11 | $ 493 | $ 151 | $ 1,093 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Treasury Stock | Distributions in Excess of Net Income | Stockholders’ Investment | Nonredeemable Noncontrolling Interests |
Beginning balance at Dec. 31, 2017 | $ 2,825,111 | $ 1,717 | $ 107,587 | $ 3,932,689 | $ (148,373) | $ (1,121,647) | $ 2,771,973 | $ 53,138 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 38,155 | 37,319 | 37,319 | 836 | ||||
Common stock issued pursuant to stock based compensation | (567) | 99 | (566) | (100) | (567) | |||
Amortization of stock options and restricted stock, net of forfeitures | 1,122 | (3) | 1,125 | 1,122 | ||||
Contributions from nonredeemable noncontrolling interests | 1,708 | 1,708 | ||||||
Distributions to nonredeemable noncontrolling interests | (873) | (873) | ||||||
Common dividends | (54,641) | (54,641) | (54,641) | |||||
Ending balance at Jun. 30, 2018 | 2,832,344 | 1,717 | 107,683 | 3,933,248 | (148,473) | (1,116,640) | 2,777,535 | 54,809 |
Beginning balance at Mar. 31, 2018 | 2,835,915 | 1,717 | 107,643 | 3,932,416 | (148,373) | (1,110,590) | 2,782,813 | 53,102 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 21,749 | 21,276 | 21,276 | 473 | ||||
Common stock issued pursuant to stock based compensation | 192 | 41 | 251 | (100) | 192 | |||
Amortization of stock options and restricted stock, net of forfeitures | 580 | (1) | 581 | 580 | ||||
Contributions from nonredeemable noncontrolling interests | 1,708 | 1,708 | ||||||
Distributions to nonredeemable noncontrolling interests | (474) | (474) | ||||||
Common dividends | (27,326) | (27,326) | (27,326) | |||||
Ending balance at Jun. 30, 2018 | 2,832,344 | 1,717 | 107,683 | 3,933,248 | (148,473) | (1,116,640) | 2,777,535 | 54,809 |
Beginning balance at Dec. 31, 2018 | 2,821,156 | 1,717 | 107,681 | 3,934,385 | (148,473) | (1,129,445) | 2,765,865 | 55,291 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 13,423 | 12,932 | 12,932 | 491 | ||||
Common stock issued in merger | 1,598,189 | 41,576 | 1,556,613 | 1,598,189 | ||||
Common stock issued pursuant to stock based compensation | 509 | 91 | 418 | 509 | ||||
Amortization of stock options and restricted stock, net of forfeitures | 1,232 | 1,232 | 1,232 | |||||
Nonredeemable noncontrolling interests acquired in merger | 5,187 | 5,187 | ||||||
Contributions from nonredeemable noncontrolling interests | 4,241 | 4,241 | ||||||
Distributions to nonredeemable noncontrolling interests | (1,265) | (1,265) | ||||||
Common dividends | (73,054) | (73,054) | (73,054) | |||||
Ending balance at Jun. 30, 2019 | 4,369,618 | 1,717 | 149,348 | 5,492,648 | (148,473) | (1,189,567) | 4,305,673 | 63,945 |
Beginning balance at Mar. 31, 2019 | 2,828,229 | 1,717 | 107,731 | 3,934,038 | (148,473) | (1,124,596) | 2,770,417 | 57,812 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (22,582) | (22,409) | (22,409) | (173) | ||||
Common stock issued in merger | 1,598,189 | 41,576 | 1,556,613 | 1,598,189 | ||||
Common stock issued pursuant to stock based compensation | 1,414 | 41 | 1,373 | 1,414 | ||||
Amortization of stock options and restricted stock, net of forfeitures | 624 | 624 | 624 | |||||
Nonredeemable noncontrolling interests acquired in merger | 5,187 | 5,187 | ||||||
Contributions from nonredeemable noncontrolling interests | 1,660 | 1,660 | ||||||
Distributions to nonredeemable noncontrolling interests | (541) | (541) | ||||||
Common dividends | (42,562) | (42,562) | (42,562) | |||||
Ending balance at Jun. 30, 2019 | $ 4,369,618 | $ 1,717 | $ 149,348 | $ 5,492,648 | $ (148,473) | $ (1,189,567) | $ 4,305,673 | $ 63,945 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends per common share (in usd per share) | $ 0.29 | $ 0.26 | $ 0.58 | $ 0.52 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 13,423 | $ 38,155 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Gain on sale of investment properties | (14,415) | (4,945) |
Depreciation and amortization | 96,765 | 90,768 |
Amortization of deferred financing costs and premium/discount on notes payable | 1,211 | 1,203 |
Stock-based compensation expense, net of forfeitures | 2,594 | 2,264 |
Effect of non-cash adjustments to revenues | (23,289) | (17,691) |
Income from unconsolidated joint ventures | (6,538) | (7,921) |
Operating distributions from unconsolidated joint ventures | 4,036 | 10,896 |
Loss on extinguishment of debt | 0 | 85 |
Changes in other operating assets and liabilities: | ||
Change in other receivables and other assets, net | (15,674) | (2,508) |
Change in operating liabilities, net | 19,678 | (5,590) |
Net cash provided by operating activities | 77,791 | 104,716 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from investment property sales | 57,772 | 0 |
Property acquisition, development, and tenant asset expenditures | (168,700) | (99,767) |
Investment in unconsolidated joint ventures | (12,249) | (30,423) |
Distributions from unconsolidated joint ventures | 0 | 2,032 |
Cash and restricted cash acquired in merger | 85,978 | 0 |
Change in notes receivable and other assets | (47) | (1,954) |
Other | 0 | (4,264) |
Net cash used in investing activities | (37,246) | (134,376) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from credit facility | 837,000 | 0 |
Repayment of credit facility | (773,000) | 0 |
Repayment of notes payable | (684,445) | (4,344) |
Issuance of unsecured senior notes | 650,000 | 0 |
Payment of deferred financing costs | (2,861) | (6,081) |
Contributions from nonredeemable noncontrolling interests | 4,241 | 0 |
Distributions to nonredeemable noncontrolling interests | (1,265) | (873) |
Common dividends paid | (57,817) | (52,518) |
Other | (1,026) | (1,709) |
Net cash used in financing activities | (29,173) | (65,525) |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 11,372 | (95,185) |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT BEGINNING OF PERIOD | 2,695 | 205,745 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD | $ 14,067 | $ 110,560 |
Description of Business and Bas
Description of Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Description of Business Cousins Properties Incorporated (“Cousins”), a Georgia corporation, is a publicly traded (NYSE: CUZ), self-administered, and self-managed real estate investment trust (“REIT”). Cousins conducts substantially all of its operations through Cousins Properties LP ("CPLP"). Cousins owns approximately 99% of CPLP and consolidates CPLP. Cousins TRS Services LLC ("CTRS"), which is wholly owned by CPLP, is a taxable entity which owns and manages its own real estate portfolio and performs certain real estate related services for other parties. Cousins, CPLP, CTRS, and their subsidiaries are hereinafter referred to collectively as "the Company." The Company develops, acquires, leases, manages, and owns Class A office and mixed-use properties in Sun Belt markets with a focus on Georgia, Texas, North Carolina, Arizona, and Florida. Cousins has elected to be taxed as a REIT and intends to, among other things, distribute 100% of its net taxable income to stockholders, thereby eliminating any liability for federal income taxes under current law. Therefore, the results included herein do not include a federal income tax provision for Cousins. Basis of Presentation The condensed consolidated financial statements are unaudited and were prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, these financial statements reflect all adjustments necessary (which adjustments are of a normal and recurring nature) for the fair presentation of the Company's financial position as of June 30, 2019 and the results of operations for the three and six months ended June 30, 2019 and 2018 . The results of operations for the three and six months ended June 30, 2019 are not necessarily indicative of results expected for the full year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018 . The accounting policies employed are substantially the same as those shown in note 2 to the consolidated financial statements included therein. For the three and six months ended June 30, 2019 and 2018 , there were no items of other comprehensive income. Therefore, no presentation of comprehensive income is required. Additionally, certain subtotals within the condensed consolidated statements of operations for the three and six months ended June 30, 2018 were removed to conform to the current period presentation. On June 14, 2019, the Company restated and amended its articles of incorporation to effect a reverse stock split of the issued and outstanding shares of its common and preferred stock pursuant to which (1) each four shares of the Company's issued and outstanding common stock were combined into one share of the Company's common or preferred stock, respectively, and (2) the authorized number of the Company's common stock was proportionally reduced to 175 million shares. Fractional shares of common stock resulting from the reverse stock split were settled in cash. Fractional shares of preferred stock resulting from the reverse stock split were redeemed without payout. Immediately thereafter, the Company further amended its articles of incorporation to increase the number of authorized shares of its common stock from 175 million to 300 million shares. All shares of common stock, stock options, restricted stock units, and per share information presented in the consolidated financial statements have been adjusted to reflect the reverse stock split on a retroactive basis for all periods presented. The Company reclassified lease termination fees from other revenues to rental property revenues on the consolidated statements of operations as a result of the adoption of Accounting Standards Update ("ASU") 2016-02, "Leases," ("ASC 842"). The prior period amounts were reclassified to conform to the current period presentation. The Company evaluates all partnerships, joint ventures, and other arrangements with variable interests to determine if the entity or arrangement qualifies as a variable interest entity ("VIE"), as defined in the Financial Accounting Standard Board's ("FASB") Accounting Standards Codification ("ASC"). If the entity or arrangement qualifies as a VIE and the Company is determined to be the primary beneficiary, the Company is required to consolidate the assets, liabilities, and results of operations of the VIE. In the first quarter of 2019, the Company transferred the right to acquire a building to a special purpose entity to facilitate a potential Section 1031 exchange under the Internal Revenue Code of 1986, as amended, and the special purpose entity acquired the building. To realize the tax deferral available under Section 1031, the Company must complete the exchange and relinquish title to the to-be-exchanged building within 180 days of the purchase date. The Company has determined that this special purpose entity is a VIE, and the Company is the primary beneficiary. Therefore, the Company consolidates this entity. As of June 30, 2019 , this VIE had total assets of $92.3 million , no significant liabilities, and no significant cash flows. Recently Issued Accounting Standards On January 1, 2019, the Company adopted ASC 842, which amended the previous standard for lease accounting by requiring lessees to record most leases on their balance sheets and making targeted changes to lessor accounting and reporting. The new standard requires lessees to record a right-of-use asset and a lease liability for leases and classify such leases as either finance or operating leases based on the principle of whether the lease is effectively a financed purchase of the leased asset by the lessee. The classification of the leases determines whether the lease expense is recognized based on an effective interest method (finance leases) or on a straight-line basis over the term of the lease (operating leases). The new standard also revised the treatment of indirect leasing costs and permits the capitalization and amortization of direct leasing costs only. For the three and six months ended June 30, 2018 , the Company capitalized $796,000 and $2.0 million of indirect leasing costs, respectively. The Company adopted the following optional practical expedients provided in ASC 842: • no reassessment of any expired or existing contracts to determine if they contain a lease; • no requirement to write-off any unamortized, previously capitalized, initial direct costs for existing leases; • no recognition of right-of-use assets for leases with at term of one year or less; • no requirement to separately classify and disclose non-lease components of revenue in lease contracts from the related lease components provided certain conditions are met; and, • no requirement to reassess the classification of existing leases as finance leases versus operating leases. For those leases where the Company is lessee, specifically ground leases, the adoption of ASC 842 required the Company to record a right-of-use asset and a lease liability on the consolidated balance sheet. The Company recorded right-of-use assets and lease liabilities in the amount of $56.3 million upon the adoption of ASC 842. In calculating the right of use asset and lease liability the Company used a weighted average discount rate of 4.49% , which represented the Company's incremental borrowing rate related to the ground lease assets as of January 1, 2019. Ground leases executed before the adoption of ASC 842 are accounted for as operating leases and did not result in a materially different ground lease expense. However, most ground leases executed after the adoption of ASC 842 are expected to be accounted for as finance leases, which will result in ground lease expense being recorded using the effective interest method instead of the straight-line method over the term of the lease, resulting in higher ground lease expense in the earlier years of a ground lease when compared to the straight line method. The Company used the "modified retrospective" method upon adoption of ASC 842, which permitted application of the new standard on the adoption date as opposed to the earliest comparative period presented in its financial statements. For additional disclosures, see note 4 "Leases." On January 1, 2018, the Company adopted, ASU 2017-05, “Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets” (“ASU 2017-05"). As a result of the adoption of ASU 2017-05, the Company recorded a cumulative effect from change in accounting principle, which credited distributions in excess of cumulative net income by $22.3 million . This cumulative effect adjustment resulted from the 2013 transfer of a wholly-owned property to an entity in which it had a noncontrolling interest. |
Merger With Tier REIT, Inc.
Merger With Tier REIT, Inc. | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
MERGER WITH TIER REIT, INC. | MERGER WITH TIER REIT, INC. On June 14, 2019, pursuant to the Agreement and Plan of Merger dated March 25, 2019 (the “Merger Agreement”), by and among the Company and TIER REIT, Inc. (“TIER”), TIER merged with and into a subsidiary of the Company (the “Merger”) with this subsidiary continuing as the surviving corporation of the Merger. In accordance with the terms and conditions of the Merger Agreement, each share of TIER common stock issued and outstanding immediately prior to the Merger, was converted into 2.98 newly issued shares of the Company’s common stock with fractional shares being settled in cash. In the Merger, former TIER common stockholders received approximately 166 million shares of common stock of the Company. As discussed in note 1 to the consolidated financial statements, immediately following the Merger, the Company completed a 1-for- 4 reverse stock split. The Merger has been accounted for as a business combination with the Company as the accounting acquirer, which requires, among other things, that the assets acquired and liabilities assumed be recognized at their acquisition date fair value. The total value of the transaction is based on the closing stock price of the Company's common stock on June 13, 2019, the day immediately prior to the closing of the Merger. Based on the shares issued in the transaction, the total fair value of the assets acquired and liabilities assumed in the Merger was $1.6 billion . During the three and six months ended June 30, 2019 , the Company incurred $49.8 million in expenses related to the Merger. Management engaged a third party valuation specialist to assist with valuing the real estate assets acquired and liabilities assumed in the Merger. The third party used cash flow analyses as well as an income approach and a cost approach to determine the fair value of real estate asset acquired. Based on additional information that may become available, subsequent adjustments may be made to the purchase price allocation within the allocation period, which typically does not exceed one year. The purchase price was allocated as follows (in thousands): Real estate assets $ 2,186,143 Real estate assets held for sale 29,193 Cash and cash equivalents 84,042 Restricted cash 1,936 Notes and other receivables 6,416 Investment in unconsolidated joint ventures 349 Intangible assets 146,943 Other assets 11,836 2,466,858 Notes payable 747,549 Accounts payable and accrued expenses 48,173 Deferred income 8,388 Intangible liabilities 51,403 Other liabilities 7,796 Nonredeemable noncontrolling interest 5,187 868,496 Total purchase price $ 1,598,362 The Merger accounted for $9.7 million of rental property revenue as reported in the condensed consolidated statements of operations for the six months ended June 30, 2019. The following unaudited supplemental pro forma information is based upon the Company's historical consolidated statements of operations, adjusted as if the Merger had occurred on January 1, 2018. The supplemental pro forma information is not necessarily indicative of future results, or of actual results, that would have been achieved had the Merger been consummated at the beginning of the period. Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (unaudited, in thousands) Revenues $ 182,114 $ 172,894 $ 365,382 $ 346,442 Net income (loss) 63,386 14,696 87,813 (10,470 ) Net income (loss) available to common stockholders 62,503 14,466 86,643 (10,416 ) 2019 supplemental pro forma earnings were adjusted to exclude $49.8 million of transaction costs incurred in the second quarter of 2019. Supplemental pro forma earnings for the six months ended June 30, 2018 were adjusted to include this change. |
Transactions with Norfolk South
Transactions with Norfolk Southern Railway Company | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
TRANSACTIONS WITH NORFOLK SOUTHERN RAILWAY COMPANY | TRANSACTIONS WITH NORFOLK SOUTHERN RAILWAY COMPANY On March 1, 2019, the Company entered into a series of agreements and executed related transactions with Norfolk Southern Railway Company (“NS”) as follows: • Sold land to NS for $52.5 million . • Executed a Development Agreement with NS whereby the Company will receive fees totaling $5 million in consideration for development services for NS’s corporate headquarters that is being constructed on the land sold to NS. • Executed a Consulting Agreement with NS whereby the Company will receive fees totaling $32 million in consideration for consulting services for NS’s corporate headquarters. The Development Agreement and Consulting Agreement are collectively referred to below as the “Fee Agreements.” • Purchased a building from NS (“1200 Peachtree”) for $82 million subject to a three -year market rate lease with NS that covers the entire building. The Company sold the land to NS for $5.0 million above its carrying amount, which included $37.0 million of land purchased in 2018, $6.5 million of land purchased in 2019, and $4.0 million of site preparation work. The Company purchased 1200 Peachtree from NS for an amount it determined to be $10.3 million below the building’s fair value. In accordance with ASC 606, the Company determined that all contracts and transactions associated with NS, with the exception of the aforementioned lease which will be accounted for in accordance with ASC 842, should be combined for accounting purposes given the fact that they were all executed simultaneously for the single commercial purpose of delivering and constructing a corporate headquarters for NS, and the contracts are interdependent and would not have been entered into separately. Further, the Company concluded that the Fee Agreements have a single performance obligation to provide services to NS for a new corporate headquarters as the services being provided to NS are highly interdependent. The transaction price for the Fee Agreements was determined to be comprised of both cash and non-cash consideration associated with this arrangement. The cash consideration represents the amounts to be received under the Fee Agreements as well as the excess of the sales price of the land over the fair value of the land. The non-cash consideration represents the $10.3 million excess of the fair value of 1200 Peachtree over the amount the Company paid. The gross transaction price for the Fee Agreements was $52.3 million . In accordance with ASC 606, the Company determined that control of the services to be provided under the Fee Agreements is being transferred over time and, thus, the Company must recognize the transaction price in revenue as it satisfies the performance obligation. The Company determined that the inputs method of measuring progress of satisfying the performance obligation was the most appropriate method of recognizing revenue for the Fee Agreements. Therefore, the Company began recognizing revenue in the quarter ended March 31, 2019, and will recognize future revenue under the Fee Agreements based upon the time spent by the Company’s employees in providing these services as compared to the total estimated time required to satisfy the performance obligation. During the three and six months ended June 30, 2019 , the Company recognized $5.0 million and $11.6 million , respectively, in fee income in its statements of operations related to the Fee Agreements. The following table summarizes the allocations of the estimated fair value of the assets and liabilities of the 1200 Peachtree discussed above (in thousands): Tangible assets: Land and improvements $ 19,495 Building 62,836 Tangible assets 82,331 Intangible assets: In-place leases 9,969 Intangible assets 9,969 Total assets acquired $ 92,300 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
LEASES | LEASES At June 30, 2019 , the Company had five properties subject to operating ground leases with a weighted average remaining term of 72 years and two finance ground leases with a weighted average remaining term of five years . At June 30, 2019 , the Company had right-of-use assets of $69.8 million included in operating properties, projects under development, or land on the condensed consolidated balance sheets and a lease liability of $70.2 million included in other liabilities on the condensed consolidated balance sheets. The weighted average discount rate on these ground leases at June 30, 2019 was 4.60% . Rental payments on these ground leases are adjusted periodically based on either the Consumer Price Index, changes in developed square feet on the underlying leased asset, or on a pre-determined schedule. The monthly payments on a pre-determined schedule are recognized on a straight-line basis over the terms of the respective leases while payments resulting from changes in the Consumer Price Index or future development are not estimated as part of our measurement of straight-line rental expense. For the three and six months ended June 30, 2019 , the Company recognized operating ground lease expense of $845,000 and $1.7 million , respectively, of which no amounts represented variable lease expenses, and recognized interest expense related to finance ground leases of $115,000 and $231,000 , respectively. For the three and six months ended June 30, 2019 , the Company paid $567,000 and $960,000 , respectively, in cash related to operating ground leases and made no cash payments related to financing ground leases. At June 30, 2019 and December 31, 2018, respectively, the future minimum payments to be made by consolidated entities for ground leases are as follows (in thousands): June 30, 2019 Operating Ground Leases Finance Ground Leases 2019 $ 1,636 $ 462 2020 3,175 462 2021 2,959 6,562 2022 2,672 162 2023 2,614 162 Thereafter 203,214 3,838 $ 216,270 $ 11,648 Discount (156,300 ) (1,456 ) Lease liability $ 59,970 $ 10,192 December 31, 2018 Operating Ground Leases Finance Ground Leases 2019 $ 2,441 $ 462 2020 2,460 462 2021 2,497 6,562 2022 2,497 162 2023 2,497 162 Thereafter 202,603 3,838 $ 214,995 $ 11,648 |
LEASES | LEASES At June 30, 2019 , the Company had five properties subject to operating ground leases with a weighted average remaining term of 72 years and two finance ground leases with a weighted average remaining term of five years . At June 30, 2019 , the Company had right-of-use assets of $69.8 million included in operating properties, projects under development, or land on the condensed consolidated balance sheets and a lease liability of $70.2 million included in other liabilities on the condensed consolidated balance sheets. The weighted average discount rate on these ground leases at June 30, 2019 was 4.60% . Rental payments on these ground leases are adjusted periodically based on either the Consumer Price Index, changes in developed square feet on the underlying leased asset, or on a pre-determined schedule. The monthly payments on a pre-determined schedule are recognized on a straight-line basis over the terms of the respective leases while payments resulting from changes in the Consumer Price Index or future development are not estimated as part of our measurement of straight-line rental expense. For the three and six months ended June 30, 2019 , the Company recognized operating ground lease expense of $845,000 and $1.7 million , respectively, of which no amounts represented variable lease expenses, and recognized interest expense related to finance ground leases of $115,000 and $231,000 , respectively. For the three and six months ended June 30, 2019 , the Company paid $567,000 and $960,000 , respectively, in cash related to operating ground leases and made no cash payments related to financing ground leases. At June 30, 2019 and December 31, 2018, respectively, the future minimum payments to be made by consolidated entities for ground leases are as follows (in thousands): June 30, 2019 Operating Ground Leases Finance Ground Leases 2019 $ 1,636 $ 462 2020 3,175 462 2021 2,959 6,562 2022 2,672 162 2023 2,614 162 Thereafter 203,214 3,838 $ 216,270 $ 11,648 Discount (156,300 ) (1,456 ) Lease liability $ 59,970 $ 10,192 December 31, 2018 Operating Ground Leases Finance Ground Leases 2019 $ 2,441 $ 462 2020 2,460 462 2021 2,497 6,562 2022 2,497 162 2023 2,497 162 Thereafter 202,603 3,838 $ 214,995 $ 11,648 |
Investment in Unconsolidated Jo
Investment in Unconsolidated Joint Ventures | 6 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | INVESTMENT IN UNCONSOLIDATED JOINT VENTURES The following information summarizes financial data and principal activities of the Company's unconsolidated joint ventures. The information included in the following table entitled summary of financial position is as of June 30, 2019 and December 31, 2018 (in thousands). The information included in the summary of operations table is for the six months ended June 30, 2019 and 2018 (in thousands): Total Assets Total Debt Total Equity Company’s Investment SUMMARY OF FINANCIAL POSITION: 2019 2018 2019 2018 2019 2018 2019 2018 Terminus Office Holdings LLC $ 261,023 $ 258,060 $ 196,451 $ 198,732 $ 54,358 $ 50,539 $ 50,183 $ 48,571 DC Charlotte Plaza LLLP 179,802 155,530 — — 91,780 88,922 48,660 46,554 Austin 300 Colorado Project, LP 76,136 51,180 1 — 54,951 41,298 29,576 22,335 Carolina Square Holdings LP 115,324 106,187 75,234 74,638 27,005 28,844 15,915 16,840 HICO Victory Center LP 15,220 15,069 — — 15,076 14,801 10,176 10,003 Charlotte Gateway Village, LLC 112,792 112,553 — — 108,714 109,666 7,749 8,225 AMCO 120 WT Holdings, LLC 58,557 36,680 — — 51,567 31,372 9,747 5,538 CL Realty, L.L.C. 4,166 4,169 — — 4,093 4,183 2,842 2,886 Temco Associates, LLC 1,526 1,482 — — 1,423 1,379 941 919 TR 208 Nueces Member, LLC 2,692 — — — 1,396 — 349 — EP II LLC 246 247 — — 164 165 29 30 EP I LLC 458 461 — — 293 296 2 6 Wildwood Associates 11,138 11,157 — — 11,058 11,108 (492 ) (1) (460 ) (1) Crawford Long - CPI, LLC 28,121 26,429 68,743 69,522 (42,337 ) (44,146 ) (20,208 ) (1) (21,071 ) (1) $ 867,201 $ 779,204 $ 340,429 $ 342,892 $ 379,541 $ 338,427 $ 155,469 $ 140,376 Total Revenues Net Income (Loss) Company's Share of Income (Loss) SUMMARY OF OPERATIONS: 2019 2018 2019 2018 2019 2018 Charlotte Gateway Village, LLC $ 13,611 $ 13,477 $ 5,049 $ 5,189 $ 2,524 $ 2,594 Terminus Office Holdings LLC 24,050 22,318 3,819 3,070 1,800 1,597 DC Charlotte Plaza LLLP 5,410 — 2,201 — 1,101 — Crawford Long - CPI, LLC 6,255 6,259 1,809 1,730 863 824 HICO Victory Center LP 235 202 235 202 137 106 Carolina Square Holdings LP 6,491 5,361 158 445 110 17 Austin 300 Colorado Project, LP 222 285 110 172 55 86 Temco Associates, LLC 64 80 36 36 22 21 AMCO 120 WT Holdings, LLC — — (32 ) (24 ) — — EP II LLC — — (1 ) (21 ) (1 ) (15 ) EP I LLC — 19 (3 ) (4 ) (4 ) (5 ) Wildwood Associates — — (50 ) (1,086 ) (25 ) 2,750 CL Realty, L.L.C. — — (75 ) (71 ) (44 ) (49 ) Other — — — (14 ) — (5 ) $ 56,338 $ 48,001 $ 13,256 $ 9,624 $ 6,538 $ 7,921 (1) Negative balances are included in deferred income on the balance sheets. Subsequent to quarter end, the Company entered into an agreement to purchase its partner's interest in Terminus Office Holdings LLC ("TOH") in a transaction that valued Terminus 100 and 200 at $503 million . The acquisition of the partner's interest in TOH is expected to close in the fourth quarter of 2019, and the Company will consolidate TOH and will record Terminus 100, Terminus 200, and the related notes payable at fair value. The Company expects to recognize a gain on this transaction. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS Intangible assets on the balance sheets as of June 30, 2019 and December 31, 2018 included the following (in thousands): 2019 2018 In-place leases, net of accumulated amortization of $141,773 and $125,130 in 2019 and 2018, respectively $ 229,100 $ 105,964 Above-market tenant leases, net of accumulated amortization of $22,378 and $19,502 in 2019 and 2018, respectively 34,711 20,453 Below-market ground lease, net of accumulated amortization of $759 and $621 in 2019 and 2018, respectively 17,654 17,792 Goodwill 1,674 1,674 $ 283,139 $ 145,883 The carrying amount of goodwill did not change during the six months ended June 30, 2019 and 2018 . |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER ASSETS | OTHER ASSETS Other assets on the balance sheets as of June 30, 2019 and December 31, 2018 included the following (in thousands): 2019 2018 Furniture, fixtures and equipment, leasehold improvements, and other deferred costs, net of accumulated depreciation of $27,009 and $25,193 in 2019 and 2018, respectively $ 19,124 $ 14,942 Predevelopment costs and earnest money 19,039 8,249 Prepaid expenses and other assets 8,679 5,087 Line of credit deferred financing costs, net of accumulated amortization of $2,200 and $1,451 in 2019 and 2018, respectively 5,268 5,844 Lease inducements, net of accumulated amortization of $1,903 and $1,545 in 2019 and 2018, respectively 8,551 4,961 $ 60,661 $ 39,083 |
Notes Payable
Notes Payable | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | NOTES PAYABLE The following table summarizes the terms of notes payable outstanding at June 30, 2019 and December 31, 2018 (in thousands): Description Interest Rate Maturity (1) 2019 2018 2019 Senior Notes, Unsecured 3.95% 2029 $ 275,000 $ — Term Loan, Unsecured 3.60% 2021 250,000 250,000 2017 Senior Notes, Unsecured 3.91% 2025 250,000 250,000 2019 Senior Notes, Unsecured 3.86% 2028 250,000 — Fifth Third Center 3.37% 2026 141,927 143,497 2019 Senior Notes, Unsecured 3.78% 2027 125,000 — Colorado Tower 3.45% 2026 118,266 119,427 2017 Senior Notes, Unsecured 4.09% 2027 100,000 100,000 Promenade 4.27% 2022 97,630 99,238 816 Congress 3.75% 2024 80,840 81,676 Legacy Union One 4.24% 2023 66,000 — Credit Facility, Unsecured 3.45% 2023 64,000 — Meridian Mark Plaza 6.00% 2020 23,255 23,524 $ 1,841,918 $ 1,067,362 Unamortized premium 2,515 — Unamortized loan costs (6,984 ) (4,792 ) Total Notes Payable $ 1,837,449 $ 1,062,570 (1) Weighted average maturity of notes payable outstanding at June 30, 2019 was 6.5 years . Credit Facility The Company has a $1 billion senior unsecured line of credit (the "Credit Facility") that matures on January 3, 2023. The Credit Facility contains financial covenants that require, among other things, the maintenance of an unencumbered interest coverage ratio of at least 1.75 ; a fixed charge coverage ratio of at least 1.50 ; a secured leverage ratio of no more than 40% ; and an overall leverage ratio of no more than 60% . The Credit Facility also contains customary representations and warranties and affirmative and negative covenants, as well as customary events of default. The amounts outstanding under the Credit Facility may be accelerated upon the occurrence of any events of default. The interest rate applicable to the Credit Facility varies according to the Company's leverage ratio, and may, at the election of the Company, be determined based on either (1) the current LIBOR plus a spread of between 1.05% and 1.45% , or (2) the greater of Bank of America's prime rate, the federal funds rate plus 0.50% , or the one-month LIBOR plus 1.0% (the "Base Rate"), plus a spread of between 0.10% or 0.45% , based on leverage. At June 30, 2019 , the Credit Facility's spread over LIBOR was 1.05% . The amount that the Company may draw under the Credit Facility is a defined calculation based on the Company's unencumbered assets and other factors. The total available borrowing capacity under the Credit Facility was $936.0 million at June 30, 2019 . Term Loan The Company has a $250 million unsecured term loan (the "Term Loan") that matures on December 2, 2021 . The Term Loan has financial covenants consistent with those of the Credit Facility. The interest rate applicable to the Term Loan varies according to the Company’s leverage ratio and may, at the election of the Company, be determined based on either (1) the current LIBOR plus a spread of between 1.20% and 1.70% , based on leverage or (2) the greater of Bank of America's prime rate, the federal funds rate plus 0.50% , or the one-month LIBOR plus 1.00% (the “Base Rate”), plus a spread of between 0.00% and 0.75% , based on leverage. At June 30, 2019 , the Term Loan's spread over LIBOR was 1.20% . Unsecured Senior Notes In June 2019, the Company closed a $650 million private placement of unsecured senior notes, which were issued in three tranches. The first tranche of $125 million has an 8 -year maturity and a fixed annual interest rate of 3.78% . The second tranche of $250 million has a 9 -year maturity and a fixed annual interest rate of 3.86% . The third tranche of $275 million has a 10 -year maturity and a fixed annual interest rate of 3.95% . The Company has two existing tranches of unsecured senior notes, totaling $350 million , that were funded in two tranches. The first tranche of $100 million is due in 2027 and has a fixed annual interest rate of 4.09% . The second tranche of $250 million is due in 2025 and has a fixed annual interest rate of 3.91% . The unsecured senior notes contain financial covenants that require, among other things, the maintenance of an unencumbered interest coverage ratio of at least 1.75 ; a fixed charge coverage ratio of at least 1.50 ; an overall leverage ratio of no more than 60% ; and a secured leverage ratio of no more than 40% . The senior notes also contain customary representations and warranties and affirmative and negative covenants, as well as customary events of default. Other Debt Information In the Merger, the Company assumed a mortgage loan with a principal balance of $66.0 million and a fixed annual interest rate of 4.24% that is due in 2023 . The Company recorded the mortgage loan at fair value of $68.5 million . At June 30, 2019 and December 31, 2018 , the estimated fair value of the Company’s notes payable were $1.9 billion and $1.1 billion , respectively, calculated by discounting the debt's remaining contractual cash flows at estimated rates at which similar loans could have been obtained at June 30, 2019 and December 31, 2018 . The estimate of the current market rate, which is the most significant input in the discounted cash flow calculation, is intended to replicate debt of similar maturity and loan-to-value relationship. These fair value calculations are considered to be Level 2 under the guidelines as set forth in ASC 820 as the Company utilizes market rates for similar type loans from third party brokers. For the three and six months ended June 30, 2019 and 2018 , interest was recorded as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Total interest incurred $ 13,175 $ 11,103 $ 25,010 $ 21,977 Interest capitalized (1,116 ) (1,389 ) (2,131 ) (2,485 ) Total interest expense $ 12,059 $ 9,714 $ 22,879 $ 19,492 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments At June 30, 2019 , the Company had outstanding performance bonds totaling $590,000 . As a lessor, the Company had $245.7 million in future obligations under leases to fund tenant improvements and other future construction obligations at June 30, 2019 . As a lessee, the Company had future obligations for operating leases other than ground leases of $403,000 at June 30, 2019 . Litigation The Company is subject to various legal proceedings, claims, and administrative proceedings arising in the ordinary course of business, some of which are expected to be covered by liability insurance. Management makes assumptions and estimates concerning the likelihood and amount of any potential loss relating to these matters using the latest information available. The Company records a liability for litigation if an unfavorable outcome is probable and the amount of loss or range of loss can be reasonably estimated. If an unfavorable outcome is probable and a reasonable estimate of the loss is a range, the Company accrues the best estimate within the range. If no amount within the range is a better estimate than any other amount, the Company accrues the minimum amount within the range. If an unfavorable outcome is probable but the amount of the loss cannot be reasonably estimated, the Company discloses the nature of the litigation and indicates that an estimate of the loss or range of loss cannot be made. If an unfavorable outcome is reasonably possible and the estimated loss is material, the Company discloses the nature and estimate of the possible loss of the litigation. The Company does not disclose information with respect to litigation where an unfavorable outcome is considered to be remote or where the estimated loss would not be material. Based on current expectations, such matters, both individually and in the aggregate, are not expected to have a material adverse effect on the liquidity, results of operations, business, or financial condition of the Company. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The Company has several types of stock-based compensation - stock options, restricted stock, and restricted stock units (“RSUs”) - which are described in note 13 of the notes to consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2018 . The expense related to a portion of the stock-based compensation awards is fixed. The expense related to other stock-based compensation awards fluctuates from period to period dependent, in part, on the Company's stock price and stock performance relative to its peers. The Company recorded stock-based compensation expense, net of forfeitures, of $1.1 million and $3.4 million for the three months ended June 30, 2019 and 2018 , respectively, and $6.6 million and $6.0 million for the six months ended June 30, 2019 and 2018 , respectively. On April 23, 2019, the Company's stockholders approved the Cousins Properties Incorporated 2019 Omnibus Incentive Stock Plan (the "2019 Plan"). The Company also maintains the Cousins Properties Incorporated 2009 Incentive Stock Plan (the "2009 Plan") and the Cousins Properties Incorporated 2005 Restricted Stock Unit Plan (the “RSU Plan”) although no further issuances are permitted under the 2009 plan or RSU Plan after April 23, 2019. Under the 2009 Plan, during the quarter ended March 31, 2019, the Company made restricted stock grants of 65,822 shares to key employees, which vest ratably over a three -year period. Under the RSU Plan, during the quarter ended March 31, 2019, the Company awarded two types of performance-based RSUs to key employees based on the following metrics: (1) Total Stockholder Return of the Company, as defined in the RSU Plan, as compared to the companies in the SNL US REIT Office index (“TSR RSUs”), and (2) the ratio of cumulative funds from operations per share to targeted cumulative funds from operations per share (“FFO RSUs”), as defined in the RSU Plan. The performance period for both awards is January 1, 2019 to December 31, 2021, and the targeted units awarded of TSR RSUs and FFO RSUs was 65,247 and 27,963 , respectively. The ultimate payout of these awards can range from 0% to 200% of the targeted number of units depending on the achievement of the market and performance metrics described above. These RSU awards cliff vest on December 31, 2021 and are to be settled in cash with payment dependent on attainment of required service, market, and performance criteria. The number of RSUs vesting will be determined by the Compensation Committee, and the payout per unit will be equal to the average closing price on each trading day during the 30 -day period ending on December 31, 2021. The Company expenses an estimate of the fair value of the TSR RSUs over the performance period using a quarterly Monte Carlo valuation. The FFO RSUs are expensed over the vesting period using the fair market value of the Company's stock at the reporting date multiplied by the anticipated number of units to be paid based on the current estimate of what the ratio is expected to be upon vesting. Dividend equivalents on the TSR RSUs and the FFO RSUs will also be paid based upon the percentage vested. The Company expects to make all future grants of restricted stock and restricted stock units under the 2019 Plan. Under the 2019 Plan, during the quarter ended June 30, 2019, the Company issued 37,166 shares of common stock to members of its board of directors in lieu of fees and recorded $1.4 million |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE The Company categorizes its primary sources of revenue into revenue from contracts with customers and other revenue accounted for as leases under ASC 842 as follows: • Rental property revenue consists of (1) contractual revenues from leases recognized on a straight-line basis over the term of the respective lease; (2) percentage rents recognized once a specified sales target is achieved; (3) parking revenue; (4) termination fees; and (5) the reimbursement of the tenants' share of real estate taxes, insurance, and other operating expenses. The Company's leases typically include renewal options and are classified and accounted for as operating leases. Rental property revenue is accounted for in accordance with the guidance set forth in ASC 842. • Fee income consists of development fees, management fees, and leasing fees earned from unconsolidated joint ventures and from third parties. Fee income is accounted for in accordance with the guidance set forth in ASC 606. For the three and six months ended June 30, 2019 , the Company recognized rental property revenue of $134.9 million and $258.8 million , respectively, of which $35.8 million and $68.9 million , respectively, represented variable rental revenue. For the three and six months ended June 30, 2018 , the Company recognized rental property revenue of $114.3 million and $228.0 million , respectively. For the three and six months ended June 30, 2019 , the Company recognized fee and other revenue of $7.1 million and $16.0 million , respectively. For the three and six months ended June 30, 2018 , the Company recognized fee and other revenue of $2.3 million and $5.8 million , respectively. The following tables set forth the future minimum rents to be received by consolidated entities under existing non-cancellable leases as of June 30, 2019 and December 31, 2018, respectively (in thousands): June 30, 2019 2019 $ 268,869 2020 540,982 2021 507,607 2022 454,993 2023 414,041 Thereafter 1,772,076 $ 3,958,568 December 31, 2018 2019 $ 328,607 2020 330,477 2021 314,410 2022 280,959 2023 256,233 Thereafter 1,115,490 $ 2,626,176 |
Sale of Air Rights
Sale of Air Rights | 6 Months Ended |
Jun. 30, 2019 | |
Real Estate [Abstract] | |
SALE OF AIR RIGHTS | SALE OF AIR RIGHTS On February 26, 2019 , the Company sold air rights that cover eight acres within Downtown Atlanta for a gross sales price of $13.25 million and recorded a gain of $13.1 million . |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share for the three and six months ended June 30, 2019 and 2018 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Earnings per Common Share - basic: Numerator: Net income (loss) $ (22,582 ) $ 21,749 $ 13,423 $ 38,155 Net loss (income) attributable to noncontrolling interests in CPLP from continuing operations 265 (410 ) (323 ) (697 ) Net income attributable to other noncontrolling interests (92 ) (63 ) (168 ) (139 ) Net income (loss) available to common stockholders $ (22,409 ) $ 21,276 $ 12,932 $ 37,319 Denominator: Weighted average common shares - basic 112,926 105,073 109,049 105,056 Net income (loss) per common share - basic $ (0.20 ) $ 0.20 $ 0.12 $ 0.36 Earnings per common share - diluted: Numerator: Net income (loss) $ (22,582 ) $ 21,749 $ 13,423 $ 38,155 Net income attributable to other noncontrolling interests (92 ) (63 ) (168 ) (139 ) Net income (loss) available for common stockholders before net income attributable to noncontrolling interests in CPLP $ (22,674 ) $ 21,686 $ 13,255 $ 38,016 Denominator: Weighted average common shares - basic 112,926 105,073 109,049 105,056 Add: Potential dilutive common shares - stock options — 58 29 61 Weighted average units of CPLP convertible into common shares 1,744 1,744 1,744 1,744 Weighted average common shares - diluted 114,670 106,875 110,822 106,861 Net income (loss) per common share - diluted $ (0.20 ) $ 0.20 $ 0.12 $ 0.36 Anti-dilutive stock options outstanding 27 — — 3 For the three months ended June 30, 2019, anti-dilutive stock represent stock options whose exercise price does not exceed the average market value of the Company's stock and are not included in the calculation of dilutive weighted average shares due to the net loss during the period. For the six months ended June 30, 2018, anti-dilutive stock represents stock options whose exercise price exceeds the average market value of the Company's stock. These anti-dilutive stock options are not included in the current calculation of dilutive weighted average shares, but could be dilutive in the future. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - Supplemental Information | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
CONSOLIDATED STATEMENTS OF CASH FLOWS - SUPPLEMENTAL INFORMATION | CONSOLIDATED STATEMENTS OF CASH FLOWS - SUPPLEMENTAL INFORMATION Supplemental information related to the cash flows, including significant non-cash activity affecting the consolidated statement of cash flows, for the six months ended June 30, 2019 and 2018 is as follows (in thousands): 2019 2018 Interest paid, net of amounts capitalized $ 22,130 $ 19,283 Non-Cash Transactions: Non-cash assets and liabilities assumed in TIER transaction 1,512,384 — Ground lease right-of-use assets and associated liabilities 56,294 — Common stock dividends declared and accrued 42,563 27,326 Change in accrued property, acquisition, development, and tenant expenditures 8,973 24,121 Non-cash consideration for property acquisition 10,071 — Transfers from projects under development to operating properties — 212,628 Cumulative effect of change in accounting principle — 22,329 Transfer from investment in unconsolidated joint venture to projects under development — 7,025 The following table provides a reconciliation of cash, cash equivalents, and restricted cash recorded on the balance sheets to cash, cash equivalents, and restricted cash in the statements of cash flows (in thousands): June 30, 2019 December 31, 2018 Cash and cash equivalents $ 11,885 $ 2,547 Restricted cash 2,182 148 Total cash, cash equivalents, and restricted cash $ 14,067 $ 2,695 |
Reportable Segments
Reportable Segments | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
REPORTABLE SEGMENTS | REPORTABLE SEGMENTS The Company's segments are based on its method of internal reporting, which classifies operations by property type and geographical area. The segments by property type are: Office and Mixed-Use. The segments by geographical region are: Atlanta, Austin, Charlotte, Dallas, Phoenix, Tampa, and Other. These reportable segments represent an aggregation of operating segments reported to the Chief Operating Decision Maker based on similar economic characteristics that include the type of property and the geographical location. Each segment includes both consolidated operations and the Company's share of unconsolidated joint venture operations. Company management evaluates the performance of its reportable segments in part based on net operating income (“NOI”). NOI represents rental property revenues, less termination fees, less rental property operating expenses. NOI is not a measure of cash flows or operating results as measured by GAAP, is not indicative of cash available to fund cash needs, and should not be considered an alternative to cash flows as a measure of liquidity. All companies may not calculate NOI in the same manner. The Company considers NOI to be an appropriate supplemental measure to net income as it helps both management and investors understand the core operations of the Company's operating assets. NOI excludes corporate general and administrative expenses, interest expense, depreciation and amortization, impairments, gains/loss on sales of real estate, and other non-operating items. Segment net income, amount of capital expenditures, and total assets are not presented in the following tables because management does not utilize these measures when analyzing its segments or when making resource allocation decisions. Information on the Company's segments along with a reconciliation of NOI to net income for the three and six months ended June 30, 2019 and 2018 are as follows (in thousands): Three Months Ended June 30, 2019 Office Mixed-Use Total Net Operating Income: Atlanta $ 39,368 $ — $ 39,368 Austin 18,577 — 18,577 Charlotte 18,050 — 18,050 Dallas 669 — 669 Phoenix 9,290 — 9,290 Tampa 8,573 — 8,573 Other 2,182 708 2,890 Total Net Operating Income $ 96,709 $ 708 $ 97,417 Three Months Ended June 30, 2018 Office Mixed-Use Total Net Operating Income: Atlanta $ 32,178 $ — $ 32,178 Austin 15,431 — 15,431 Charlotte 15,088 — 15,088 Phoenix 8,880 — 8,880 Tampa 7,642 — 7,642 Other 433 543 976 Total Net Operating Income $ 79,652 $ 543 $ 80,195 Six Months Ended June 30, 2019 Office Mixed-Use Total Net Operating Income: Atlanta $ 76,766 $ — $ 76,766 Austin 34,525 — 34,525 Charlotte 33,859 — 33,859 Dallas 670 — 670 Phoenix 18,781 — 18,781 Tampa 16,560 — 16,560 Other 2,411 1,576 3,987 Total Net Operating Income $ 183,572 $ 1,576 $ 185,148 Six Months Ended June 30, 2018 Office Mixed-Use Total Net Operating Income: Atlanta $ 64,343 $ — $ 64,343 Austin 31,273 — 31,273 Charlotte 30,029 — 30,029 Phoenix 17,854 — 17,854 Tampa 15,370 — 15,370 Other 873 1,031 1,904 Total Net Operating Income $ 159,742 $ 1,031 $ 160,773 The following reconciles Net Operating Income to Net Income for each of the periods presented (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net Operating Income $ 97,417 $ 80,195 $ 185,148 $ 160,773 Net operating income from unconsolidated joint ventures (9,379 ) (7,228 ) (17,252 ) (14,649 ) Fee income 7,076 1,798 15,804 4,692 Termination fee income 190 639 710 999 Other income 11 493 151 1,093 Reimbursed expenses (1,047 ) (860 ) (1,979 ) (1,802 ) General and administrative expenses (8,374 ) (8,071 ) (19,834 ) (14,880 ) Interest expense (12,059 ) (9,714 ) (22,879 ) (19,492 ) Depreciation and amortization (50,904 ) (45,675 ) (96,765 ) (90,768 ) Acquisition and transaction costs (49,827 ) (137 ) (49,830 ) (228 ) Other expenses (624 ) (44 ) (804 ) (364 ) Income from unconsolidated joint ventures 3,634 5,036 6,538 7,921 Gain on sale of investment properties 1,304 5,317 14,415 4,945 Loss on extinguishment of debt — — — (85 ) Net Income (Loss) $ (22,582 ) $ 21,749 $ 13,423 $ 38,155 Revenues by reportable segment, including a reconciliation to total rental property revenues on the condensed consolidated statements of operations, for three and six months ended June 30, 2019 and 2018 are as follows (in thousands): Three Months Ended June 30, 2019 Office Mixed-Use Total Revenues: Atlanta $ 59,499 $ — $ 59,499 Austin 31,815 — 31,815 Charlotte 27,110 — 27,110 Dallas 804 — 804 Phoenix 12,805 — 12,805 Tampa 13,471 — 13,471 Other 3,581 1,093 4,674 Total segment revenues 149,085 1,093 150,178 Less Company's share of rental property revenues from unconsolidated joint ventures (14,152 ) (1,093 ) (15,245 ) Total rental property revenues $ 134,933 $ — $ 134,933 Three Months Ended June 30, 2018 Office Mixed-Use Total Revenues: Atlanta $ 50,521 $ — $ 50,521 Austin 26,407 — 26,407 Charlotte 23,053 — 23,053 Tampa 12,251 — 12,251 Phoenix 12,710 — 12,710 Other 549 834 1,383 Total segment revenues 125,491 834 126,325 Less Company's share of rental property revenues from unconsolidated joint ventures (11,154 ) (834 ) (11,988 ) Total rental property revenues $ 114,337 $ — $ 114,337 Six Months Ended June 30, 2019 Office Mixed-Use Total Revenues: Atlanta $ 116,969 $ — $ 116,969 Austin 59,907 — 59,907 Charlotte 50,496 — 50,496 Dallas 804 — 804 Phoenix 25,808 — 25,808 Tampa 26,441 — 26,441 Other 4,126 2,277 6,403 Total segment revenues 284,551 2,277 286,828 Less Company's share of rental property revenues from unconsolidated joint ventures (25,753 ) (2,277 ) (28,030 ) Total rental property revenues $ 258,798 $ — $ 258,798 Six Months Ended June 30, 2018 Office Mixed-Use Total Revenues: Atlanta $ 100,229 $ — $ 100,229 Austin 53,167 — 53,167 Charlotte 46,040 — 46,040 Tampa 24,796 — 24,796 Phoenix 24,822 — 24,822 Other 1,078 1,624 2,702 Total segment revenues 250,132 1,624 251,756 Less Company's share of rental property revenues from unconsolidated joint ventures (22,087 ) (1,624 ) (23,711 ) Total rental property revenues $ 228,045 $ — $ 228,045 |
Description of Business and B_2
Description of Business and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation |
Recently Issued Accounting Standards | Recently Issued Accounting Standards On January 1, 2019, the Company adopted ASC 842, which amended the previous standard for lease accounting by requiring lessees to record most leases on their balance sheets and making targeted changes to lessor accounting and reporting. The new standard requires lessees to record a right-of-use asset and a lease liability for leases and classify such leases as either finance or operating leases based on the principle of whether the lease is effectively a financed purchase of the leased asset by the lessee. The classification of the leases determines whether the lease expense is recognized based on an effective interest method (finance leases) or on a straight-line basis over the term of the lease (operating leases). The new standard also revised the treatment of indirect leasing costs and permits the capitalization and amortization of direct leasing costs only. For the three and six months ended June 30, 2018 , the Company capitalized $796,000 and $2.0 million of indirect leasing costs, respectively. The Company adopted the following optional practical expedients provided in ASC 842: • no reassessment of any expired or existing contracts to determine if they contain a lease; • no requirement to write-off any unamortized, previously capitalized, initial direct costs for existing leases; • no recognition of right-of-use assets for leases with at term of one year or less; • no requirement to separately classify and disclose non-lease components of revenue in lease contracts from the related lease components provided certain conditions are met; and, • no requirement to reassess the classification of existing leases as finance leases versus operating leases. For those leases where the Company is lessee, specifically ground leases, the adoption of ASC 842 required the Company to record a right-of-use asset and a lease liability on the consolidated balance sheet. The Company recorded right-of-use assets and lease liabilities in the amount of $56.3 million upon the adoption of ASC 842. In calculating the right of use asset and lease liability the Company used a weighted average discount rate of 4.49% , which represented the Company's incremental borrowing rate related to the ground lease assets as of January 1, 2019. Ground leases executed before the adoption of ASC 842 are accounted for as operating leases and did not result in a materially different ground lease expense. However, most ground leases executed after the adoption of ASC 842 are expected to be accounted for as finance leases, which will result in ground lease expense being recorded using the effective interest method instead of the straight-line method over the term of the lease, resulting in higher ground lease expense in the earlier years of a ground lease when compared to the straight line method. The Company used the "modified retrospective" method upon adoption of ASC 842, which permitted application of the new standard on the adoption date as opposed to the earliest comparative period presented in its financial statements. For additional disclosures, see note 4 "Leases." On January 1, 2018, the Company adopted, ASU 2017-05, “Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets” (“ASU 2017-05"). As a result of the adoption of ASU 2017-05, the Company recorded a cumulative effect from change in accounting principle, which credited distributions in excess of cumulative net income by $22.3 million . This cumulative effect adjustment resulted from the 2013 transfer of a wholly-owned property to an entity in which it had a noncontrolling interest. |
Merger With Tier REIT, Inc. (Ta
Merger With Tier REIT, Inc. (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of purchase price allocation | The purchase price was allocated as follows (in thousands): Real estate assets $ 2,186,143 Real estate assets held for sale 29,193 Cash and cash equivalents 84,042 Restricted cash 1,936 Notes and other receivables 6,416 Investment in unconsolidated joint ventures 349 Intangible assets 146,943 Other assets 11,836 2,466,858 Notes payable 747,549 Accounts payable and accrued expenses 48,173 Deferred income 8,388 Intangible liabilities 51,403 Other liabilities 7,796 Nonredeemable noncontrolling interest 5,187 868,496 Total purchase price $ 1,598,362 The following table summarizes the allocations of the estimated fair value of the assets and liabilities of the 1200 Peachtree discussed above (in thousands): Tangible assets: Land and improvements $ 19,495 Building 62,836 Tangible assets 82,331 Intangible assets: In-place leases 9,969 Intangible assets 9,969 Total assets acquired $ 92,300 |
Supplemental pro forma information | The following unaudited supplemental pro forma information is based upon the Company's historical consolidated statements of operations, adjusted as if the Merger had occurred on January 1, 2018. The supplemental pro forma information is not necessarily indicative of future results, or of actual results, that would have been achieved had the Merger been consummated at the beginning of the period. Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (unaudited, in thousands) Revenues $ 182,114 $ 172,894 $ 365,382 $ 346,442 Net income (loss) 63,386 14,696 87,813 (10,470 ) Net income (loss) available to common stockholders 62,503 14,466 86,643 (10,416 ) |
Transactions with Norfolk Sou_2
Transactions with Norfolk Southern Railway Company (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Summary of allocations of estimated fair falues of assets and liabilities | The purchase price was allocated as follows (in thousands): Real estate assets $ 2,186,143 Real estate assets held for sale 29,193 Cash and cash equivalents 84,042 Restricted cash 1,936 Notes and other receivables 6,416 Investment in unconsolidated joint ventures 349 Intangible assets 146,943 Other assets 11,836 2,466,858 Notes payable 747,549 Accounts payable and accrued expenses 48,173 Deferred income 8,388 Intangible liabilities 51,403 Other liabilities 7,796 Nonredeemable noncontrolling interest 5,187 868,496 Total purchase price $ 1,598,362 The following table summarizes the allocations of the estimated fair value of the assets and liabilities of the 1200 Peachtree discussed above (in thousands): Tangible assets: Land and improvements $ 19,495 Building 62,836 Tangible assets 82,331 Intangible assets: In-place leases 9,969 Intangible assets 9,969 Total assets acquired $ 92,300 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Schedule of Future Minimum Payments on Operating Ground Leases | At June 30, 2019 and December 31, 2018, respectively, the future minimum payments to be made by consolidated entities for ground leases are as follows (in thousands): June 30, 2019 Operating Ground Leases Finance Ground Leases 2019 $ 1,636 $ 462 2020 3,175 462 2021 2,959 6,562 2022 2,672 162 2023 2,614 162 Thereafter 203,214 3,838 $ 216,270 $ 11,648 Discount (156,300 ) (1,456 ) Lease liability $ 59,970 $ 10,192 December 31, 2018 Operating Ground Leases Finance Ground Leases 2019 $ 2,441 $ 462 2020 2,460 462 2021 2,497 6,562 2022 2,497 162 2023 2,497 162 Thereafter 202,603 3,838 $ 214,995 $ 11,648 |
Schedule of Future Minimum Payments on Finance Ground Leases | At June 30, 2019 and December 31, 2018, respectively, the future minimum payments to be made by consolidated entities for ground leases are as follows (in thousands): June 30, 2019 Operating Ground Leases Finance Ground Leases 2019 $ 1,636 $ 462 2020 3,175 462 2021 2,959 6,562 2022 2,672 162 2023 2,614 162 Thereafter 203,214 3,838 $ 216,270 $ 11,648 Discount (156,300 ) (1,456 ) Lease liability $ 59,970 $ 10,192 December 31, 2018 Operating Ground Leases Finance Ground Leases 2019 $ 2,441 $ 462 2020 2,460 462 2021 2,497 6,562 2022 2,497 162 2023 2,497 162 Thereafter 202,603 3,838 $ 214,995 $ 11,648 |
Investment in Unconsolidated _2
Investment in Unconsolidated Joint Ventures (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of financial data and principal activities of unconsolidated joint ventures | The following information summarizes financial data and principal activities of the Company's unconsolidated joint ventures. The information included in the following table entitled summary of financial position is as of June 30, 2019 and December 31, 2018 (in thousands). The information included in the summary of operations table is for the six months ended June 30, 2019 and 2018 (in thousands): Total Assets Total Debt Total Equity Company’s Investment SUMMARY OF FINANCIAL POSITION: 2019 2018 2019 2018 2019 2018 2019 2018 Terminus Office Holdings LLC $ 261,023 $ 258,060 $ 196,451 $ 198,732 $ 54,358 $ 50,539 $ 50,183 $ 48,571 DC Charlotte Plaza LLLP 179,802 155,530 — — 91,780 88,922 48,660 46,554 Austin 300 Colorado Project, LP 76,136 51,180 1 — 54,951 41,298 29,576 22,335 Carolina Square Holdings LP 115,324 106,187 75,234 74,638 27,005 28,844 15,915 16,840 HICO Victory Center LP 15,220 15,069 — — 15,076 14,801 10,176 10,003 Charlotte Gateway Village, LLC 112,792 112,553 — — 108,714 109,666 7,749 8,225 AMCO 120 WT Holdings, LLC 58,557 36,680 — — 51,567 31,372 9,747 5,538 CL Realty, L.L.C. 4,166 4,169 — — 4,093 4,183 2,842 2,886 Temco Associates, LLC 1,526 1,482 — — 1,423 1,379 941 919 TR 208 Nueces Member, LLC 2,692 — — — 1,396 — 349 — EP II LLC 246 247 — — 164 165 29 30 EP I LLC 458 461 — — 293 296 2 6 Wildwood Associates 11,138 11,157 — — 11,058 11,108 (492 ) (1) (460 ) (1) Crawford Long - CPI, LLC 28,121 26,429 68,743 69,522 (42,337 ) (44,146 ) (20,208 ) (1) (21,071 ) (1) $ 867,201 $ 779,204 $ 340,429 $ 342,892 $ 379,541 $ 338,427 $ 155,469 $ 140,376 Total Revenues Net Income (Loss) Company's Share of Income (Loss) SUMMARY OF OPERATIONS: 2019 2018 2019 2018 2019 2018 Charlotte Gateway Village, LLC $ 13,611 $ 13,477 $ 5,049 $ 5,189 $ 2,524 $ 2,594 Terminus Office Holdings LLC 24,050 22,318 3,819 3,070 1,800 1,597 DC Charlotte Plaza LLLP 5,410 — 2,201 — 1,101 — Crawford Long - CPI, LLC 6,255 6,259 1,809 1,730 863 824 HICO Victory Center LP 235 202 235 202 137 106 Carolina Square Holdings LP 6,491 5,361 158 445 110 17 Austin 300 Colorado Project, LP 222 285 110 172 55 86 Temco Associates, LLC 64 80 36 36 22 21 AMCO 120 WT Holdings, LLC — — (32 ) (24 ) — — EP II LLC — — (1 ) (21 ) (1 ) (15 ) EP I LLC — 19 (3 ) (4 ) (4 ) (5 ) Wildwood Associates — — (50 ) (1,086 ) (25 ) 2,750 CL Realty, L.L.C. — — (75 ) (71 ) (44 ) (49 ) Other — — — (14 ) — (5 ) $ 56,338 $ 48,001 $ 13,256 $ 9,624 $ 6,538 $ 7,921 (1) Negative balances are included in deferred income on the balance sheets. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | Intangible assets on the balance sheets as of June 30, 2019 and December 31, 2018 included the following (in thousands): 2019 2018 In-place leases, net of accumulated amortization of $141,773 and $125,130 in 2019 and 2018, respectively $ 229,100 $ 105,964 Above-market tenant leases, net of accumulated amortization of $22,378 and $19,502 in 2019 and 2018, respectively 34,711 20,453 Below-market ground lease, net of accumulated amortization of $759 and $621 in 2019 and 2018, respectively 17,654 17,792 Goodwill 1,674 1,674 $ 283,139 $ 145,883 |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of other assets | Other assets on the balance sheets as of June 30, 2019 and December 31, 2018 included the following (in thousands): 2019 2018 Furniture, fixtures and equipment, leasehold improvements, and other deferred costs, net of accumulated depreciation of $27,009 and $25,193 in 2019 and 2018, respectively $ 19,124 $ 14,942 Predevelopment costs and earnest money 19,039 8,249 Prepaid expenses and other assets 8,679 5,087 Line of credit deferred financing costs, net of accumulated amortization of $2,200 and $1,451 in 2019 and 2018, respectively 5,268 5,844 Lease inducements, net of accumulated amortization of $1,903 and $1,545 in 2019 and 2018, respectively 8,551 4,961 $ 60,661 $ 39,083 |
Notes Payable (Tables)
Notes Payable (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Summary of terms of notes payable | The following table summarizes the terms of notes payable outstanding at June 30, 2019 and December 31, 2018 (in thousands): Description Interest Rate Maturity (1) 2019 2018 2019 Senior Notes, Unsecured 3.95% 2029 $ 275,000 $ — Term Loan, Unsecured 3.60% 2021 250,000 250,000 2017 Senior Notes, Unsecured 3.91% 2025 250,000 250,000 2019 Senior Notes, Unsecured 3.86% 2028 250,000 — Fifth Third Center 3.37% 2026 141,927 143,497 2019 Senior Notes, Unsecured 3.78% 2027 125,000 — Colorado Tower 3.45% 2026 118,266 119,427 2017 Senior Notes, Unsecured 4.09% 2027 100,000 100,000 Promenade 4.27% 2022 97,630 99,238 816 Congress 3.75% 2024 80,840 81,676 Legacy Union One 4.24% 2023 66,000 — Credit Facility, Unsecured 3.45% 2023 64,000 — Meridian Mark Plaza 6.00% 2020 23,255 23,524 $ 1,841,918 $ 1,067,362 Unamortized premium 2,515 — Unamortized loan costs (6,984 ) (4,792 ) Total Notes Payable $ 1,837,449 $ 1,062,570 (1) Weighted average maturity of notes payable outstanding at June 30, 2019 was 6.5 years . |
Summary of interest recorded | For the three and six months ended June 30, 2019 and 2018 , interest was recorded as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Total interest incurred $ 13,175 $ 11,103 $ 25,010 $ 21,977 Interest capitalized (1,116 ) (1,389 ) (2,131 ) (2,485 ) Total interest expense $ 12,059 $ 9,714 $ 22,879 $ 19,492 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Future Minimum Rents to be Received | The following tables set forth the future minimum rents to be received by consolidated entities under existing non-cancellable leases as of June 30, 2019 and December 31, 2018, respectively (in thousands): June 30, 2019 2019 $ 268,869 2020 540,982 2021 507,607 2022 454,993 2023 414,041 Thereafter 1,772,076 $ 3,958,568 December 31, 2018 2019 $ 328,607 2020 330,477 2021 314,410 2022 280,959 2023 256,233 Thereafter 1,115,490 $ 2,626,176 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted earnings per share | The following table sets forth the computation of basic and diluted earnings per share for the three and six months ended June 30, 2019 and 2018 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Earnings per Common Share - basic: Numerator: Net income (loss) $ (22,582 ) $ 21,749 $ 13,423 $ 38,155 Net loss (income) attributable to noncontrolling interests in CPLP from continuing operations 265 (410 ) (323 ) (697 ) Net income attributable to other noncontrolling interests (92 ) (63 ) (168 ) (139 ) Net income (loss) available to common stockholders $ (22,409 ) $ 21,276 $ 12,932 $ 37,319 Denominator: Weighted average common shares - basic 112,926 105,073 109,049 105,056 Net income (loss) per common share - basic $ (0.20 ) $ 0.20 $ 0.12 $ 0.36 Earnings per common share - diluted: Numerator: Net income (loss) $ (22,582 ) $ 21,749 $ 13,423 $ 38,155 Net income attributable to other noncontrolling interests (92 ) (63 ) (168 ) (139 ) Net income (loss) available for common stockholders before net income attributable to noncontrolling interests in CPLP $ (22,674 ) $ 21,686 $ 13,255 $ 38,016 Denominator: Weighted average common shares - basic 112,926 105,073 109,049 105,056 Add: Potential dilutive common shares - stock options — 58 29 61 Weighted average units of CPLP convertible into common shares 1,744 1,744 1,744 1,744 Weighted average common shares - diluted 114,670 106,875 110,822 106,861 Net income (loss) per common share - diluted $ (0.20 ) $ 0.20 $ 0.12 $ 0.36 Anti-dilutive stock options outstanding 27 — — 3 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows - Supplemental Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental information related to cash flows | Supplemental information related to the cash flows, including significant non-cash activity affecting the consolidated statement of cash flows, for the six months ended June 30, 2019 and 2018 is as follows (in thousands): 2019 2018 Interest paid, net of amounts capitalized $ 22,130 $ 19,283 Non-Cash Transactions: Non-cash assets and liabilities assumed in TIER transaction 1,512,384 — Ground lease right-of-use assets and associated liabilities 56,294 — Common stock dividends declared and accrued 42,563 27,326 Change in accrued property, acquisition, development, and tenant expenditures 8,973 24,121 Non-cash consideration for property acquisition 10,071 — Transfers from projects under development to operating properties — 212,628 Cumulative effect of change in accounting principle — 22,329 Transfer from investment in unconsolidated joint venture to projects under development — 7,025 |
Reconciliation of cash, cash equivalents, and restricted cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash recorded on the balance sheets to cash, cash equivalents, and restricted cash in the statements of cash flows (in thousands): June 30, 2019 December 31, 2018 Cash and cash equivalents $ 11,885 $ 2,547 Restricted cash 2,182 148 Total cash, cash equivalents, and restricted cash $ 14,067 $ 2,695 |
Reconciliation of cash, cash equivalents, and restricted cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash recorded on the balance sheets to cash, cash equivalents, and restricted cash in the statements of cash flows (in thousands): June 30, 2019 December 31, 2018 Cash and cash equivalents $ 11,885 $ 2,547 Restricted cash 2,182 148 Total cash, cash equivalents, and restricted cash $ 14,067 $ 2,695 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Reconciliation of NOI to net income available to common stockholders | Information on the Company's segments along with a reconciliation of NOI to net income for the three and six months ended June 30, 2019 and 2018 are as follows (in thousands): Three Months Ended June 30, 2019 Office Mixed-Use Total Net Operating Income: Atlanta $ 39,368 $ — $ 39,368 Austin 18,577 — 18,577 Charlotte 18,050 — 18,050 Dallas 669 — 669 Phoenix 9,290 — 9,290 Tampa 8,573 — 8,573 Other 2,182 708 2,890 Total Net Operating Income $ 96,709 $ 708 $ 97,417 Three Months Ended June 30, 2018 Office Mixed-Use Total Net Operating Income: Atlanta $ 32,178 $ — $ 32,178 Austin 15,431 — 15,431 Charlotte 15,088 — 15,088 Phoenix 8,880 — 8,880 Tampa 7,642 — 7,642 Other 433 543 976 Total Net Operating Income $ 79,652 $ 543 $ 80,195 Six Months Ended June 30, 2019 Office Mixed-Use Total Net Operating Income: Atlanta $ 76,766 $ — $ 76,766 Austin 34,525 — 34,525 Charlotte 33,859 — 33,859 Dallas 670 — 670 Phoenix 18,781 — 18,781 Tampa 16,560 — 16,560 Other 2,411 1,576 3,987 Total Net Operating Income $ 183,572 $ 1,576 $ 185,148 Six Months Ended June 30, 2018 Office Mixed-Use Total Net Operating Income: Atlanta $ 64,343 $ — $ 64,343 Austin 31,273 — 31,273 Charlotte 30,029 — 30,029 Phoenix 17,854 — 17,854 Tampa 15,370 — 15,370 Other 873 1,031 1,904 Total Net Operating Income $ 159,742 $ 1,031 $ 160,773 The following reconciles Net Operating Income to Net Income for each of the periods presented (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net Operating Income $ 97,417 $ 80,195 $ 185,148 $ 160,773 Net operating income from unconsolidated joint ventures (9,379 ) (7,228 ) (17,252 ) (14,649 ) Fee income 7,076 1,798 15,804 4,692 Termination fee income 190 639 710 999 Other income 11 493 151 1,093 Reimbursed expenses (1,047 ) (860 ) (1,979 ) (1,802 ) General and administrative expenses (8,374 ) (8,071 ) (19,834 ) (14,880 ) Interest expense (12,059 ) (9,714 ) (22,879 ) (19,492 ) Depreciation and amortization (50,904 ) (45,675 ) (96,765 ) (90,768 ) Acquisition and transaction costs (49,827 ) (137 ) (49,830 ) (228 ) Other expenses (624 ) (44 ) (804 ) (364 ) Income from unconsolidated joint ventures 3,634 5,036 6,538 7,921 Gain on sale of investment properties 1,304 5,317 14,415 4,945 Loss on extinguishment of debt — — — (85 ) Net Income (Loss) $ (22,582 ) $ 21,749 $ 13,423 $ 38,155 |
Reconciliation of revenue from segments to consolidated | Revenues by reportable segment, including a reconciliation to total rental property revenues on the condensed consolidated statements of operations, for three and six months ended June 30, 2019 and 2018 are as follows (in thousands): Three Months Ended June 30, 2019 Office Mixed-Use Total Revenues: Atlanta $ 59,499 $ — $ 59,499 Austin 31,815 — 31,815 Charlotte 27,110 — 27,110 Dallas 804 — 804 Phoenix 12,805 — 12,805 Tampa 13,471 — 13,471 Other 3,581 1,093 4,674 Total segment revenues 149,085 1,093 150,178 Less Company's share of rental property revenues from unconsolidated joint ventures (14,152 ) (1,093 ) (15,245 ) Total rental property revenues $ 134,933 $ — $ 134,933 Three Months Ended June 30, 2018 Office Mixed-Use Total Revenues: Atlanta $ 50,521 $ — $ 50,521 Austin 26,407 — 26,407 Charlotte 23,053 — 23,053 Tampa 12,251 — 12,251 Phoenix 12,710 — 12,710 Other 549 834 1,383 Total segment revenues 125,491 834 126,325 Less Company's share of rental property revenues from unconsolidated joint ventures (11,154 ) (834 ) (11,988 ) Total rental property revenues $ 114,337 $ — $ 114,337 Six Months Ended June 30, 2019 Office Mixed-Use Total Revenues: Atlanta $ 116,969 $ — $ 116,969 Austin 59,907 — 59,907 Charlotte 50,496 — 50,496 Dallas 804 — 804 Phoenix 25,808 — 25,808 Tampa 26,441 — 26,441 Other 4,126 2,277 6,403 Total segment revenues 284,551 2,277 286,828 Less Company's share of rental property revenues from unconsolidated joint ventures (25,753 ) (2,277 ) (28,030 ) Total rental property revenues $ 258,798 $ — $ 258,798 Six Months Ended June 30, 2018 Office Mixed-Use Total Revenues: Atlanta $ 100,229 $ — $ 100,229 Austin 53,167 — 53,167 Charlotte 46,040 — 46,040 Tampa 24,796 — 24,796 Phoenix 24,822 — 24,822 Other 1,078 1,624 2,702 Total segment revenues 250,132 1,624 251,756 Less Company's share of rental property revenues from unconsolidated joint ventures (22,087 ) (1,624 ) (23,711 ) Total rental property revenues $ 228,045 $ — $ 228,045 |
Description of Business and B_3
Description of Business and Basis of Presentation (Description of Business) (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Percentage of partnership units owned by the Company | 99.00% |
Distribution of taxable income to qualify as REIT, percentage | 100.00% |
Description of Business and B_4
Description of Business and Basis of Presentation (Basis of Presentation) (Details) $ in Millions | Jun. 14, 2019shares | Jun. 30, 2019USD ($)shares | Dec. 31, 2018shares |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Reverse stock split ratio | 250 | ||
Common stock, shares authorized | shares | 175,000,000 | 300,000,000 | 175,000,000 |
VIE, total assets | $ | $ 92.3 |
Description of Business and B_5
Description of Business and Basis of Presentation (Recently Issued Accounting Standards) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2019 | Jan. 01, 2019 | Jan. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Capitalized indirect leasing costs | $ 796 | $ 2,000 | |||
Weighted average discount rate | 4.60% | 4.49% | |||
Right of use asset | $ 69,800 | ||||
Lease liability | $ 59,970 | ||||
Cumulative effect of change in accounting principle | $ 22,329 | ||||
Retained Earnings | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect of change in accounting principle | 22,329 | ||||
Accounting Standards Update 2016-02 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Right of use asset | $ 56,300 | ||||
Lease liability | $ 56,300 | ||||
Accounting Standards Update 2017-05 | Retained Earnings | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect of change in accounting principle | $ 22,300 |
Merger With Tier REIT, Inc. (Ad
Merger With Tier REIT, Inc. (Additional Information) (Details) shares in Millions, $ in Millions | Jun. 14, 2019USD ($)shares | Mar. 25, 2019 | Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) |
Business Acquisition [Line Items] | ||||
Reverse stock split ratio | 250 | |||
TIER | ||||
Business Acquisition [Line Items] | ||||
Stock conversation ratio | 2.98 | |||
Fair value of assets acquired and liabilities assumed | $ 1,600 | |||
Acquisition expenses | $ 49.8 | $ 49.8 | ||
TIER | Rental property revenues | ||||
Business Acquisition [Line Items] | ||||
Amount reported in consolidated revenue | $ 9.7 | |||
Former TIER Common Stockholders | ||||
Business Acquisition [Line Items] | ||||
Number of shares issued | shares | 166 |
Merger With Tier REIT, Inc. (Pu
Merger With Tier REIT, Inc. (Purchase Price Allocation) (Details) - TIER $ in Thousands | Mar. 25, 2019USD ($) |
Business Acquisition [Line Items] | |
Real estate assets | $ 2,186,143 |
Real estate assets held for sale | 29,193 |
Cash and cash equivalents | 84,042 |
Restricted cash | 1,936 |
Notes and other receivables | 6,416 |
Investment in unconsolidated joint ventures | 349 |
Intangible assets | 146,943 |
Other assets | 11,836 |
Assets | 2,466,858 |
Notes payable | 747,549 |
Accounts payable and accrued expenses | 48,173 |
Deferred income | 8,388 |
Intangible liabilities | 51,403 |
Other liabilities | 7,796 |
Nonredeemable noncontrolling interest | 5,187 |
Liabilities | 868,496 |
Total purchase price | $ 1,598,362 |
Merger With Tier REIT, Inc. (Pr
Merger With Tier REIT, Inc. (Pro Forma Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Business Combinations [Abstract] | ||||
Revenues | $ 182,114 | $ 172,894 | $ 365,382 | $ 346,442 |
Net income (loss) | 63,386 | 14,696 | 87,813 | (10,470) |
Net income (loss) available to common stockholders | $ 62,503 | $ 14,466 | $ 86,643 | $ (10,416) |
Transactions with Norfolk Sou_3
Transactions with Norfolk Southern Railway Company (Additional Information) (Details) - USD ($) $ in Thousands | Mar. 01, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from sale of property | $ 57,772 | $ 0 | ||||
Land | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Property purchased | $ 6,500 | $ 37,000 | ||||
Site Preparation Work | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Property purchased | $ 4,000 | |||||
NS | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Revenue recognized | $ 5,000 | $ 11,600 | ||||
NS | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Transaction price | $ 52,300 | |||||
NS | 1200 Peachtree | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Purchase of a building | $ 82,000 | |||||
Lease term | 3 years | |||||
Impairment of property | $ 10,300 | |||||
NS | Fees for development services | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Contract fees | 5,000 | |||||
NS | Fees for consulting services | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Contract fees | 32,000 | |||||
NS | Land | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from sale of property | 52,500 | |||||
Gain from sale of property | $ 5,000 |
Transactions with Norfolk Sou_4
Transactions with Norfolk Southern Railway Company (Allocation of Estimated Fair Values of Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 01, 2019 | Dec. 31, 2018 |
Intangible assets: | |||
Total assets | $ 6,676,672 | $ 4,146,296 | |
1200 Peachtree | |||
Tangible assets: | |||
Land and improvements | $ 19,495 | ||
Building | 62,836 | ||
Tangible assets | 82,331 | ||
Intangible assets: | |||
In-place leases | 9,969 | ||
Intangible assets | 9,969 | ||
Total assets | $ 92,300 |
Leases (Additional Information)
Leases (Additional Information) (Details) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019USD ($)property | Jun. 30, 2019USD ($)property | Jan. 01, 2019 | |
Leases [Abstract] | |||
Number of properties subject to operating lease | property | 5 | 5 | |
Operating lease, weighted average remaining term | 72 years | 72 years | |
Number of properties subject to finance lease | property | 2 | 2 | |
Finance lease, weighted average remaining term | 5 years | 5 years | |
Right of use asset | $ 69,800,000 | $ 69,800,000 | |
Lease liability | $ 70,200,000 | $ 70,200,000 | |
Weighted average discount rate | 4.60% | 4.60% | 4.49% |
Lease expense | $ 845,000 | $ 1,700,000 | |
Variable lease expense | 0 | ||
Interest expense related to finance lease | 115,000 | 231,000 | |
Operating lease payments | $ 567,000 | 960,000 | |
Finance lease payments | $ 0 |
Leases (Future Minimum Payments
Leases (Future Minimum Payments) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Operating Ground Leases | ||
2019 | $ 1,636 | |
2020 | 3,175 | |
2021 | 2,959 | |
2022 | 2,672 | |
2023 | 2,614 | |
Thereafter | 203,214 | |
Total minimum payments | 216,270 | |
Discount | (156,300) | |
Lease liability | 59,970 | |
2019 | $ 2,441 | |
2020 | 2,460 | |
2021 | 2,497 | |
2022 | 2,497 | |
2023 | 2,497 | |
Thereafter | 202,603 | |
Total minimum payments | 403 | 214,995 |
Finance Ground Leases | ||
2019 | 462 | |
2020 | 462 | |
2021 | 6,562 | |
2022 | 162 | |
2023 | 162 | |
Thereafter | 3,838 | |
Total minimum payments | 11,648 | |
Discount | (1,456) | |
Lease liability | $ 10,192 | |
2019 | 462 | |
2020 | 462 | |
2021 | 6,562 | |
2022 | 162 | |
2023 | 162 | |
Thereafter | 3,838 | |
Total minimum payments | $ 11,648 |
Investment in Unconsolidated _3
Investment in Unconsolidated Joint Ventures (Summary of Financial Position and Operations) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
SUMMARY OF FINANCIAL POSITION: | |||
Total Assets | $ 867,201 | $ 779,204 | |
Total Debt | 340,429 | 342,892 | |
Total Equity | 379,541 | 338,427 | |
Company’s Investment | 155,469 | 140,376 | |
SUMMARY OF OPERATIONS: | |||
Total Revenues | 56,338 | $ 48,001 | |
Net Income (Loss) | 13,256 | 9,624 | |
Company's Share of Income (Loss) | 6,538 | 7,921 | |
Terminus Office Holdings LLC | |||
SUMMARY OF FINANCIAL POSITION: | |||
Total Assets | 261,023 | 258,060 | |
Total Debt | 196,451 | 198,732 | |
Total Equity | 54,358 | 50,539 | |
Company’s Investment | 50,183 | 48,571 | |
SUMMARY OF OPERATIONS: | |||
Total Revenues | 24,050 | 22,318 | |
Net Income (Loss) | 3,819 | 3,070 | |
Company's Share of Income (Loss) | 1,800 | 1,597 | |
DC Charlotte Plaza LLLP | |||
SUMMARY OF FINANCIAL POSITION: | |||
Total Assets | 179,802 | 155,530 | |
Total Debt | 0 | 0 | |
Total Equity | 91,780 | 88,922 | |
Company’s Investment | 48,660 | 46,554 | |
SUMMARY OF OPERATIONS: | |||
Total Revenues | 5,410 | 0 | |
Net Income (Loss) | 2,201 | 0 | |
Company's Share of Income (Loss) | 1,101 | 0 | |
Austin 300 Colorado Project, LP | |||
SUMMARY OF FINANCIAL POSITION: | |||
Total Assets | 76,136 | 51,180 | |
Total Debt | 1 | 0 | |
Total Equity | 54,951 | 41,298 | |
Company’s Investment | 29,576 | 22,335 | |
SUMMARY OF OPERATIONS: | |||
Total Revenues | 222 | 285 | |
Net Income (Loss) | 110 | 172 | |
Company's Share of Income (Loss) | 55 | 86 | |
Carolina Square Holdings LP | |||
SUMMARY OF FINANCIAL POSITION: | |||
Total Assets | 115,324 | 106,187 | |
Total Debt | 75,234 | 74,638 | |
Total Equity | 27,005 | 28,844 | |
Company’s Investment | 15,915 | 16,840 | |
SUMMARY OF OPERATIONS: | |||
Total Revenues | 6,491 | 5,361 | |
Net Income (Loss) | 158 | 445 | |
Company's Share of Income (Loss) | 110 | 17 | |
HICO Victory Center LP | |||
SUMMARY OF FINANCIAL POSITION: | |||
Total Assets | 15,220 | 15,069 | |
Total Debt | 0 | 0 | |
Total Equity | 15,076 | 14,801 | |
Company’s Investment | 10,176 | 10,003 | |
SUMMARY OF OPERATIONS: | |||
Total Revenues | 235 | 202 | |
Net Income (Loss) | 235 | 202 | |
Company's Share of Income (Loss) | 137 | 106 | |
Charlotte Gateway Village, LLC | |||
SUMMARY OF FINANCIAL POSITION: | |||
Total Assets | 112,792 | 112,553 | |
Total Debt | 0 | 0 | |
Total Equity | 108,714 | 109,666 | |
Company’s Investment | 7,749 | 8,225 | |
SUMMARY OF OPERATIONS: | |||
Total Revenues | 13,611 | 13,477 | |
Net Income (Loss) | 5,049 | 5,189 | |
Company's Share of Income (Loss) | 2,524 | 2,594 | |
AMCO 120 WT Holdings, LLC | |||
SUMMARY OF FINANCIAL POSITION: | |||
Total Assets | 58,557 | 36,680 | |
Total Debt | 0 | 0 | |
Total Equity | 51,567 | 31,372 | |
Company’s Investment | 9,747 | 5,538 | |
SUMMARY OF OPERATIONS: | |||
Total Revenues | 0 | 0 | |
Net Income (Loss) | (32) | (24) | |
Company's Share of Income (Loss) | 0 | 0 | |
CL Realty, L.L.C. | |||
SUMMARY OF FINANCIAL POSITION: | |||
Total Assets | 4,166 | 4,169 | |
Total Debt | 0 | 0 | |
Total Equity | 4,093 | 4,183 | |
Company’s Investment | 2,842 | 2,886 | |
SUMMARY OF OPERATIONS: | |||
Total Revenues | 0 | 0 | |
Net Income (Loss) | (75) | (71) | |
Company's Share of Income (Loss) | (44) | (49) | |
Temco Associates, LLC | |||
SUMMARY OF FINANCIAL POSITION: | |||
Total Assets | 1,526 | 1,482 | |
Total Debt | 0 | 0 | |
Total Equity | 1,423 | 1,379 | |
Company’s Investment | 941 | 919 | |
SUMMARY OF OPERATIONS: | |||
Total Revenues | 64 | 80 | |
Net Income (Loss) | 36 | 36 | |
Company's Share of Income (Loss) | 22 | 21 | |
TR 208 Nueces Member, LLC | |||
SUMMARY OF FINANCIAL POSITION: | |||
Total Assets | 2,692 | 0 | |
Total Debt | 0 | 0 | |
Total Equity | 1,396 | 0 | |
Company’s Investment | 349 | 0 | |
EP II LLC | |||
SUMMARY OF FINANCIAL POSITION: | |||
Total Assets | 246 | 247 | |
Total Debt | 0 | 0 | |
Total Equity | 164 | 165 | |
Company’s Investment | 29 | 30 | |
SUMMARY OF OPERATIONS: | |||
Total Revenues | 0 | 0 | |
Net Income (Loss) | (1) | (21) | |
Company's Share of Income (Loss) | (1) | (15) | |
EP I LLC | |||
SUMMARY OF FINANCIAL POSITION: | |||
Total Assets | 458 | 461 | |
Total Debt | 0 | 0 | |
Total Equity | 293 | 296 | |
Company’s Investment | 2 | 6 | |
SUMMARY OF OPERATIONS: | |||
Total Revenues | 0 | 19 | |
Net Income (Loss) | (3) | (4) | |
Company's Share of Income (Loss) | (4) | (5) | |
Wildwood Associates | |||
SUMMARY OF FINANCIAL POSITION: | |||
Total Assets | 11,138 | 11,157 | |
Total Debt | 0 | 0 | |
Total Equity | 11,058 | 11,108 | |
Company’s Investment | (492) | (460) | |
SUMMARY OF OPERATIONS: | |||
Total Revenues | 0 | 0 | |
Net Income (Loss) | (50) | (1,086) | |
Company's Share of Income (Loss) | (25) | 2,750 | |
Crawford Long - CPI, LLC | |||
SUMMARY OF FINANCIAL POSITION: | |||
Total Assets | 28,121 | 26,429 | |
Total Debt | 68,743 | 69,522 | |
Total Equity | (42,337) | (44,146) | |
Company’s Investment | (20,208) | $ (21,071) | |
SUMMARY OF OPERATIONS: | |||
Total Revenues | 6,255 | 6,259 | |
Net Income (Loss) | 1,809 | 1,730 | |
Company's Share of Income (Loss) | 863 | 824 | |
Other | |||
SUMMARY OF OPERATIONS: | |||
Total Revenues | 0 | 0 | |
Net Income (Loss) | 0 | (14) | |
Company's Share of Income (Loss) | $ 0 | $ (5) |
Investment in Unconsolidated _4
Investment in Unconsolidated Joint Ventures (Additional Information) (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | |
Jul. 24, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | |
Investment [Line Items] | |||
Net purchase price | $ 57,772 | $ 0 | |
Subsequent Event | Terminus Office Holdings LLC | |||
Investment [Line Items] | |||
Net purchase price | $ 503,000 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | $ 1,674 | $ 1,674 |
Total intangible assets | 283,139 | 145,883 |
In-place Leases | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, net | 229,100 | 105,964 |
Accumulated amortization | 141,773 | 125,130 |
Above-market Tenant Leases | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, net | 34,711 | 20,453 |
Accumulated amortization | 22,378 | 19,502 |
Below-market Ground Lease | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, net | 17,654 | 17,792 |
Accumulated amortization | $ 759 | $ 621 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Furniture, fixtures and equipment, leasehold improvements, and other deferred costs, net of accumulated depreciation of $27,009 and $25,193 in 2019 and 2018, respectively | $ 19,124 | $ 14,942 |
Predevelopment costs and earnest money | 19,039 | 8,249 |
Prepaid expenses and other assets | 8,679 | 5,087 |
Line of credit deferred financing costs, net of accumulated amortization of $2,200 and $1,451 in 2019 and 2018, respectively | 5,268 | 5,844 |
Lease inducements, net of accumulated amortization of $1,903 and $1,545 in 2019 and 2018, respectively | 8,551 | 4,961 |
Total other assets | 60,661 | 39,083 |
Accumulated depreciation of furniture, fixtures and equipment, leasehold improvements, and other deferred costs | 27,009 | 25,193 |
Accumulated amortization of line of credit deferred financing costs | 2,200 | 1,451 |
Accumulated amortization of lease inducements | $ 1,903 | $ 1,545 |
Notes Payable (Terms of Notes P
Notes Payable (Terms of Notes Payable) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 14, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Notes Payable, Gross | $ 1,841,918 | $ 1,067,362 | |
Unamortized premium | 2,515 | 0 | |
Unamortized loan costs | (6,984) | (4,792) | |
Total Notes Payable | $ 1,837,449 | 1,062,570 | |
Weighted average maturity of notes payable | 6 years 6 months | ||
Senior Notes, Unsecured | 3.95% Senior Notes, Unsecured | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.95% | ||
Notes Payable, Gross | $ 275,000 | 0 | |
Senior Notes, Unsecured | 3.91% Senior Notes, Unsecured | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.91% | ||
Notes Payable, Gross | $ 250,000 | 250,000 | |
Senior Notes, Unsecured | 3.85% Senior Notes, Unsecured | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.86% | ||
Notes Payable, Gross | $ 250,000 | 0 | |
Senior Notes, Unsecured | 3.78% Senior Notes, Unsecured | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.78% | ||
Notes Payable, Gross | $ 125,000 | 0 | |
Senior Notes, Unsecured | 4.09% Senior Notes, Unsecured | |||
Debt Instrument [Line Items] | |||
Interest Rate | 4.09% | ||
Notes Payable, Gross | $ 100,000 | 100,000 | |
Term Loan, Unsecured | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.60% | ||
Notes Payable, Gross | $ 250,000 | 250,000 | |
Mortgage Debt | |||
Debt Instrument [Line Items] | |||
Interest Rate | 4.24% | ||
Total Notes Payable | $ 68,500 | ||
Mortgage Debt | Fifth Third Center | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.37% | ||
Notes Payable, Gross | $ 141,927 | 143,497 | |
Mortgage Debt | Colorado Tower | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.45% | ||
Notes Payable, Gross | $ 118,266 | 119,427 | |
Mortgage Debt | Promenade | |||
Debt Instrument [Line Items] | |||
Interest Rate | 4.27% | ||
Notes Payable, Gross | $ 97,630 | 99,238 | |
Mortgage Debt | 816 Congress | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.75% | ||
Notes Payable, Gross | $ 80,840 | 81,676 | |
Mortgage Debt | Legacy Union One | |||
Debt Instrument [Line Items] | |||
Interest Rate | 4.24% | ||
Notes Payable, Gross | $ 66,000 | 0 | |
Mortgage Debt | Meridian Mark Plaza | |||
Debt Instrument [Line Items] | |||
Interest Rate | 6.00% | ||
Notes Payable, Gross | $ 23,255 | 23,524 | |
Credit Facility, Unsecured | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.45% | ||
Notes Payable, Gross | $ 64,000 | $ 0 |
Notes Payable (Credit Facility)
Notes Payable (Credit Facility) (Details) - Credit Facility | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity | $ 1,000,000,000 |
Minimum fixed charge coverage ratio | 1.50 |
Available borrowing capacity | $ 936,000,000 |
LIBOR | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate (percent) | 1.05% |
Federal Funds Rate | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate (percent) | 0.50% |
One-month LIBOR | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate (percent) | 1.00% |
Minimum | |
Line of Credit Facility [Line Items] | |
Minimum unencumbered interest coverage ratio | 1.75 |
Minimum | LIBOR | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate (percent) | 1.05% |
Minimum | Base Rate | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate (percent) | 0.10% |
Maximum | |
Line of Credit Facility [Line Items] | |
Secured leverage ratio (percent) | 40.00% |
Leverage ratio (percent) | 60.00% |
Maximum | LIBOR | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate (percent) | 1.45% |
Maximum | Base Rate | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate (percent) | 0.45% |
Notes Payable (Term Loan) (Deta
Notes Payable (Term Loan) (Details) - Term Loan | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Debt Instrument [Line Items] | |
Unsecured term loan | $ 250,000,000 |
LIBOR | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (percent) | 1.20% |
LIBOR | Minimum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (percent) | 1.20% |
LIBOR | Maximum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (percent) | 1.70% |
Federal Funds Rate | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (percent) | 0.50% |
One-month LIBOR | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (percent) | 1.00% |
Base Rate | Minimum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (percent) | 0.00% |
Base Rate | Maximum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (percent) | 0.75% |
Notes Payable (Unsecured Senior
Notes Payable (Unsecured Senior Notes) (Details) | 1 Months Ended | 6 Months Ended |
Jun. 30, 2019USD ($)tranche | Jun. 30, 2019USD ($)tranche | |
Unsecured Senior Notes | ||
Debt Instrument [Line Items] | ||
Number of tranches | tranche | 2 | 2 |
Debt amount | $ 350,000,000 | $ 350,000,000 |
Minimum fixed charge coverage ratio | 1.50 | |
Unsecured Senior Notes | Minimum | ||
Debt Instrument [Line Items] | ||
Minimum unencumbered interest coverage ratio | 1.75 | |
Unsecured Senior Notes | Maximum | ||
Debt Instrument [Line Items] | ||
Leverage ratio (percent) | 60.00% | 60.00% |
Secured leverage ratio (percent) | 40.00% | |
Unsecured Senior Notes | 3.78% Senior Notes, Unsecured | ||
Debt Instrument [Line Items] | ||
Interest rate (percent) | 3.78% | 3.78% |
Unsecured Senior Notes | 3.85% Senior Notes, Unsecured | ||
Debt Instrument [Line Items] | ||
Interest rate (percent) | 3.86% | 3.86% |
Unsecured Senior Notes | 3.95% Senior Notes, Unsecured | ||
Debt Instrument [Line Items] | ||
Interest rate (percent) | 3.95% | 3.95% |
Unsecured Senior Notes | 4.09% Senior Notes, Unsecured | ||
Debt Instrument [Line Items] | ||
Interest rate (percent) | 4.09% | 4.09% |
Debt amount | $ 100,000,000 | $ 100,000,000 |
Unsecured Senior Notes | 3.91% Senior Notes, Unsecured | ||
Debt Instrument [Line Items] | ||
Interest rate (percent) | 3.91% | 3.91% |
Debt amount | $ 250,000,000 | $ 250,000,000 |
Unsecured Senior Notes | ||
Debt Instrument [Line Items] | ||
Amount of debt closed | $ 650,000,000 | |
Number of tranches | tranche | 3 | 3 |
Unsecured Senior Notes | 3.78% Senior Notes, Unsecured | ||
Debt Instrument [Line Items] | ||
Amount of debt closed | $ 125,000,000 | |
Debt term | 8 years | |
Interest rate (percent) | 3.78% | 3.78% |
Unsecured Senior Notes | 3.85% Senior Notes, Unsecured | ||
Debt Instrument [Line Items] | ||
Amount of debt closed | $ 250,000,000 | |
Debt term | 9 years | |
Interest rate (percent) | 3.86% | 3.86% |
Unsecured Senior Notes | 3.95% Senior Notes, Unsecured | ||
Debt Instrument [Line Items] | ||
Amount of debt closed | $ 275,000,000 | |
Debt term | 10 years | |
Interest rate (percent) | 3.95% | 3.95% |
Notes Payable (Other Debt Infor
Notes Payable (Other Debt Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 14, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||||||
Notes payable | $ 1,837,449 | $ 1,837,449 | $ 1,062,570 | |||
Notes payable, fair value | 1,900,000 | 1,900,000 | $ 1,100,000 | |||
Total interest incurred | 13,175 | $ 11,103 | 25,010 | $ 21,977 | ||
Interest capitalized | (1,116) | (1,389) | (2,131) | (2,485) | ||
Total interest expense | $ 12,059 | $ 9,714 | $ 22,879 | $ 19,492 | ||
Mortgage Loan | ||||||
Debt Instrument [Line Items] | ||||||
Notes payable | $ 66,000 | |||||
Interest rate (percent) | 4.24% | |||||
Notes payable | $ 68,500 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
Outstanding letters of credit and performance bonds | $ 590 | |
Future obligations under leases to fund tenant improvements and other future construction obligations | 245,700 | |
Future obligations under ground and other operating leases | $ 403 | $ 214,995 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($)awardshares | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)awardshares | Jun. 30, 2018USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ | $ 1.1 | $ 3.4 | $ 6.6 | $ 6 |
Board of Directors | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ | $ 1.4 | |||
Number of shares issued (in shares) | 37,166 | |||
RSU | Key Employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted (in shares) | 65,822 | |||
Vesting period | 3 years | |||
Performance-based RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Ultimate payout, minimum (as a percent) | 0.00% | |||
Ultimate payout, maximum (as a percent) | 200.00% | |||
Number of trading days used to determine average closing price | 30 days | |||
Performance-based RSUs | Key Employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Types of performance-based RSUs | award | 2 | 2 | ||
TSR RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted (in shares) | 65,247 | |||
FFO RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted (in shares) | 27,963 |
Revenue (Additional Information
Revenue (Additional Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 142,020 | $ 116,628 | $ 274,753 | $ 233,830 |
Rental property revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Variable rental revenue | 35,800 | 68,900 | ||
Revenues | 134,933 | 114,337 | 258,798 | 228,045 |
Fees and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 7,100 | $ 2,300 | $ 16,000 | $ 5,800 |
Revenue (Future Minimum Payment
Revenue (Future Minimum Payments to be Received) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
2019 | $ 268,869 | $ 328,607 |
2020 | 540,982 | 330,477 |
2021 | 507,607 | 314,410 |
2022 | 454,993 | 280,959 |
2023 | 414,041 | 256,233 |
Thereafter | 1,772,076 | 1,115,490 |
Total future minimum payments to be received | $ 3,958,568 | $ 2,626,176 |
Sale of Air Rights (Details)
Sale of Air Rights (Details) - Downtown Atlanta $ in Thousands | Feb. 26, 2019USD ($)a |
Real Estate [Line Items] | |
Area of property (in acres) | a | 8 |
Gross sales price of investment properties | $ 13,250 |
Gain on sale of investment properties | $ 13,100 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Numerator: | ||||
Net income (loss) | $ (22,582) | $ 21,749 | $ 13,423 | $ 38,155 |
Net income (loss) available to common stockholders | $ (22,409) | $ 21,276 | $ 12,932 | $ 37,319 |
Denominator: | ||||
Weighted average common shares - basic (in shares) | 112,926 | 105,073 | 109,049 | 105,056 |
Net income (loss) per common share - basic (in usd per share) | $ (0.20) | $ 0.20 | $ 0.12 | $ 0.36 |
Numerator: | ||||
Net income (loss) | $ (22,582) | $ 21,749 | $ 13,423 | $ 38,155 |
Net income (loss) available for common stockholders before net income attributable to noncontrolling interests in CPLP | $ (22,674) | $ 21,686 | $ 13,255 | $ 38,016 |
Denominator: | ||||
Weighted average shares — basic (in shares) | 112,926 | 105,073 | 109,049 | 105,056 |
Add: | ||||
Potential dilutive common shares - stock options (in shares) | 0 | 58 | 29 | 61 |
Weighted average units of CPLP convertible into common shares (in shares) | 1,744 | 1,744 | 1,744 | 1,744 |
Weighted average common shares - diluted (in shares) | 114,670 | 106,875 | 110,822 | 106,861 |
Net income (loss) per common share - diluted (in usd per share) | $ (0.20) | $ 0.20 | $ 0.12 | $ 0.36 |
Stock Option | ||||
Add: | ||||
Anti-dilutive stock options outstanding (in shares) | 27 | 0 | 0 | 3 |
CPLP | ||||
Numerator: | ||||
Net income attributable to other noncontrolling interests | $ 265 | $ (410) | $ (323) | $ (697) |
Numerator: | ||||
Net income attributable to other noncontrolling interests | 265 | (410) | (323) | (697) |
Other Noncontrolling Interests | ||||
Numerator: | ||||
Net income attributable to other noncontrolling interests | (92) | (63) | (168) | (139) |
Numerator: | ||||
Net income attributable to other noncontrolling interests | $ (92) | $ (63) | $ (168) | $ (139) |
Consolidated Statements of Ca_3
Consolidated Statements of Cash Flows - Supplemental Information (Supplemental Information) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest paid, net of amounts capitalized | $ 22,130 | $ 19,283 |
Non-Cash Transactions: | ||
Non-cash assets and liabilities assumed in TIER transaction | 1,512,384 | 0 |
Ground lease right-of-use assets and associated liabilities | 56,294 | 0 |
Common stock dividends declared and accrued | 42,563 | 27,326 |
Change in accrued property, acquisition, development, and tenant expenditures | 8,973 | 24,121 |
Non-cash consideration for property acquisition | 10,071 | 0 |
Transfers from projects under development to operating properties | 0 | 212,628 |
Cumulative effect of change in accounting principle | 0 | 22,329 |
Transfer from investment in unconsolidated joint venture to projects under development | $ 0 | $ 7,025 |
Consolidated Statements of Ca_4
Consolidated Statements of Cash Flows - Supplemental Information (Reconciliation of Cash) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | $ 11,885 | $ 2,547 | ||
Restricted cash | 2,182 | 148 | ||
Total cash, cash equivalents, and restricted cash | $ 14,067 | $ 2,695 | $ 110,560 | $ 205,745 |
Reportable Segments (Net Operat
Reportable Segments (Net Operating Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Total Net Operating Income | $ 97,417 | $ 80,195 | $ 185,148 | $ 160,773 |
Atlanta | ||||
Segment Reporting Information [Line Items] | ||||
Total Net Operating Income | 39,368 | 32,178 | 76,766 | 64,343 |
Austin | ||||
Segment Reporting Information [Line Items] | ||||
Total Net Operating Income | 18,577 | 15,431 | 34,525 | 31,273 |
Charlotte | ||||
Segment Reporting Information [Line Items] | ||||
Total Net Operating Income | 18,050 | 15,088 | 33,859 | 30,029 |
Dallas | ||||
Segment Reporting Information [Line Items] | ||||
Total Net Operating Income | 669 | 670 | ||
Phoenix | ||||
Segment Reporting Information [Line Items] | ||||
Total Net Operating Income | 9,290 | 8,880 | 18,781 | 17,854 |
Tampa | ||||
Segment Reporting Information [Line Items] | ||||
Total Net Operating Income | 8,573 | 7,642 | 16,560 | 15,370 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Total Net Operating Income | 2,890 | 976 | 3,987 | 1,904 |
Office | ||||
Segment Reporting Information [Line Items] | ||||
Total Net Operating Income | 96,709 | 79,652 | 183,572 | 159,742 |
Office | Atlanta | ||||
Segment Reporting Information [Line Items] | ||||
Total Net Operating Income | 39,368 | 32,178 | 76,766 | 64,343 |
Office | Austin | ||||
Segment Reporting Information [Line Items] | ||||
Total Net Operating Income | 18,577 | 15,431 | 34,525 | 31,273 |
Office | Charlotte | ||||
Segment Reporting Information [Line Items] | ||||
Total Net Operating Income | 18,050 | 15,088 | 33,859 | 30,029 |
Office | Dallas | ||||
Segment Reporting Information [Line Items] | ||||
Total Net Operating Income | 669 | 670 | ||
Office | Phoenix | ||||
Segment Reporting Information [Line Items] | ||||
Total Net Operating Income | 9,290 | 8,880 | 18,781 | 17,854 |
Office | Tampa | ||||
Segment Reporting Information [Line Items] | ||||
Total Net Operating Income | 8,573 | 7,642 | 16,560 | 15,370 |
Office | Other | ||||
Segment Reporting Information [Line Items] | ||||
Total Net Operating Income | 2,182 | 433 | 2,411 | 873 |
Mixed-Use | ||||
Segment Reporting Information [Line Items] | ||||
Total Net Operating Income | 708 | 543 | 1,576 | 1,031 |
Mixed-Use | Atlanta | ||||
Segment Reporting Information [Line Items] | ||||
Total Net Operating Income | 0 | 0 | 0 | 0 |
Mixed-Use | Austin | ||||
Segment Reporting Information [Line Items] | ||||
Total Net Operating Income | 0 | 0 | 0 | 0 |
Mixed-Use | Charlotte | ||||
Segment Reporting Information [Line Items] | ||||
Total Net Operating Income | 0 | 0 | 0 | 0 |
Mixed-Use | Dallas | ||||
Segment Reporting Information [Line Items] | ||||
Total Net Operating Income | 0 | 0 | ||
Mixed-Use | Phoenix | ||||
Segment Reporting Information [Line Items] | ||||
Total Net Operating Income | 0 | 0 | 0 | 0 |
Mixed-Use | Tampa | ||||
Segment Reporting Information [Line Items] | ||||
Total Net Operating Income | 0 | 0 | 0 | 0 |
Mixed-Use | Other | ||||
Segment Reporting Information [Line Items] | ||||
Total Net Operating Income | $ 708 | $ 543 | $ 1,576 | $ 1,031 |
Reportable Segments (Reconcilia
Reportable Segments (Reconciliation of Net Income to Net Operating Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net Operating Income | $ 97,417 | $ 80,195 | $ 185,148 | $ 160,773 |
Net operating income from unconsolidated joint ventures | (9,379) | (7,228) | (17,252) | (14,649) |
Revenues | 142,020 | 116,628 | 274,753 | 233,830 |
Reimbursed expenses | (1,047) | (860) | (1,979) | (1,802) |
General and administrative expenses | (8,374) | (8,071) | (19,834) | (14,880) |
Interest expense | (12,059) | (9,714) | (22,879) | (19,492) |
Depreciation and amortization | (50,904) | (45,675) | (96,765) | (90,768) |
Acquisition and transaction costs | (49,827) | (137) | (49,830) | (228) |
Other expenses | (624) | (44) | (804) | (364) |
Income from unconsolidated joint ventures | 3,634 | 5,036 | 6,538 | 7,921 |
Gain on sale of investment properties | 1,304 | 5,317 | 14,415 | 4,945 |
Loss on extinguishment of debt | 0 | 0 | 0 | (85) |
Net income (loss) | (22,582) | 21,749 | 13,423 | 38,155 |
Fee income | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 7,076 | 1,798 | 15,804 | 4,692 |
Termination fee income | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 190 | 639 | 710 | 999 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 11 | $ 493 | $ 151 | $ 1,093 |
Reportable Segments (Segment Re
Reportable Segments (Segment Revenues) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 142,020 | $ 116,628 | $ 274,753 | $ 233,830 |
Rental property revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 134,933 | 114,337 | 258,798 | 228,045 |
Rental property revenues | Office | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 134,933 | 114,337 | 258,798 | 228,045 |
Rental property revenues | Mixed-Use | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Rental property revenues | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 150,178 | 286,828 | ||
Rental property revenues | Operating Segments | Atlanta | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 59,499 | 50,521 | 116,969 | 100,229 |
Rental property revenues | Operating Segments | Austin | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 31,815 | 26,407 | 59,907 | 53,167 |
Rental property revenues | Operating Segments | Charlotte | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 27,110 | 23,053 | 50,496 | 46,040 |
Rental property revenues | Operating Segments | Dallas | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 804 | 804 | ||
Rental property revenues | Operating Segments | Phoenix | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 12,805 | 12,710 | 25,808 | 24,822 |
Rental property revenues | Operating Segments | Tampa | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 13,471 | 12,251 | 26,441 | 24,796 |
Rental property revenues | Operating Segments | Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 4,674 | 1,383 | 6,403 | 2,702 |
Rental property revenues | Operating Segments | Office | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 149,085 | 284,551 | ||
Rental property revenues | Operating Segments | Office | Atlanta | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 59,499 | 50,521 | 116,969 | 100,229 |
Rental property revenues | Operating Segments | Office | Austin | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 31,815 | 26,407 | 59,907 | 53,167 |
Rental property revenues | Operating Segments | Office | Charlotte | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 27,110 | 23,053 | 50,496 | 46,040 |
Rental property revenues | Operating Segments | Office | Dallas | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 804 | 804 | ||
Rental property revenues | Operating Segments | Office | Phoenix | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 12,805 | 12,710 | 25,808 | 24,822 |
Rental property revenues | Operating Segments | Office | Tampa | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 13,471 | 12,251 | 26,441 | 24,796 |
Rental property revenues | Operating Segments | Office | Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 3,581 | 549 | 4,126 | 1,078 |
Rental property revenues | Operating Segments | Mixed-Use | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,093 | 2,277 | ||
Rental property revenues | Operating Segments | Mixed-Use | Atlanta | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Rental property revenues | Operating Segments | Mixed-Use | Austin | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Rental property revenues | Operating Segments | Mixed-Use | Charlotte | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Rental property revenues | Operating Segments | Mixed-Use | Dallas | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | ||
Rental property revenues | Operating Segments | Mixed-Use | Phoenix | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Rental property revenues | Operating Segments | Mixed-Use | Tampa | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Rental property revenues | Operating Segments | Mixed-Use | Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,093 | 834 | 2,277 | 1,624 |
Rental property revenues | Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (15,245) | (11,988) | (28,030) | (23,711) |
Total segment revenues | 126,325 | 251,756 | ||
Rental property revenues | Segment Reconciling Items | Office | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (14,152) | (11,154) | (25,753) | (22,087) |
Total segment revenues | 125,491 | 250,132 | ||
Rental property revenues | Segment Reconciling Items | Mixed-Use | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ (1,093) | (834) | $ (2,277) | (1,624) |
Total segment revenues | $ 834 | $ 1,624 |
Uncategorized Items - form10-qj
Label | Element | Value |
Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 22,329,000 |