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PSB PS Business Parks

Document And Entity Information

Document And Entity Information - shares9 Months Ended
Sep. 30, 2020Oct. 26, 2020
Document Type10-Q
Document Quarterly Reporttrue
Current Fiscal Year End Date--12-31
Document Period End DateSep. 30,
2020
Document Fiscal Year Focus2020
Document Transition Reportfalse
Entity File Number1-10709
Entity Registrant NamePS BUSINESS PARKS INC/CA
Entity Incorporation, State or Country CodeCA
Entity Tax Identification Number95-4300881
Entity Address, Address Line One701 Western Avenue
Entity Address, City or TownGlendale
Entity Address, State or ProvinceCA
Entity Address, Postal Zip Code91201-2349
City Area Code818
Local Phone Number244-8080
Entity Current Reporting StatusYes
Entity Interactive Data CurrentYes
Entity Filer CategoryLarge Accelerated Filer
Entity Small Businessfalse
Entity Emerging Growth Companyfalse
Entity Shell Companyfalse
Entity Common Stock, Shares Outstanding27,488,547
Amendment Flagfalse
Document Fiscal Period FocusQ3
Entity Central Index Key0000866368
Common Stock [Member]
Title of 12(b) SecurityCommon Stock, $0.01 par value per share
Trading SymbolPSB
Security Exchange NameNYSE
Series W Preferred Stock [Member]
Title of 12(b) SecurityDepositary Shares Each Representing 1/1,000 of a 5.200% Cum Pref Stock, Series W, $0.01 par value
Trading SymbolPSBPrW
Security Exchange NameNYSE
Series X Preferred Stock [Member]
Title of 12(b) SecurityDepositary Shares Each Representing 1/1,000 of a 5.250% Cum Pref Stock, Series X, $0.01 par value
Trading SymbolPSBPrX
Security Exchange NameNYSE
Series Y Preferred Stock [Member]
Title of 12(b) SecurityDepositary Shares Each Representing 1/1,000 of a 5.200% Cum Pref Stock, Series Y, $0.01 par value
Trading SymbolPSBPrY
Security Exchange NameNYSE
Series Z Preferred Stock [Member]
Title of 12(b) SecurityDepositary Shares Each Representing 1/1,000 of a 4.875% Cum Pref Stock, Series Z, $0.01 par value
Trading SymbolPSBPrZ
Security Exchange NameNYSE

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in ThousandsSep. 30, 2020Dec. 31, 2019
ASSETS
Cash and cash equivalents $ 117,881 $ 62,786
Real estate facilities, at cost
Land855,542 844,419
Buildings and improvements2,213,798 2,203,308
Gross real estate investment property3,069,340 3,047,727
Accumulated depreciation(1,210,473)(1,158,489)
Net real estate investment property1,858,867 1,889,238
Properties held for sale, net15,264
Land and building held for development, net35,506 28,110
Total real estate investments1,894,373 1,932,612
Rent receivable1,790 1,392
Deferred rent receivable37,361 32,993
Other assets13,348 16,660
Total assets2,064,753 2,046,443
LIABILITIES AND EQUITY
Accrued and other liabilities87,808 84,632
Total liabilities87,808 84,632
Commitments and contingencies
PS Business Parks, Inc.'s shareholders' equity
Preferred stock, $0.01 par value, 50,000,000 shares authorized, 37,790 shares issued and outstanding at ($944,750 aggregate liquidation preference) September 30, 2020 and December 31, 2019944,750 944,750
Common stock, $0.01 par value, 100,000,000 shares authorized, 27,486,788 and 27,440,953 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively274 274
Paid-in capital737,065 736,986
Accumulated earnings75,393 63,666
Total PS Business Parks, Inc.'s shareholders' equity1,757,482 1,745,676
Noncontrolling interests219,463 216,135
Total equity1,976,945 1,961,811
Total liabilities and equity $ 2,064,753 $ 2,046,443

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in ThousandsSep. 30, 2020Dec. 31, 2019
Consolidated Balance Sheets [Abstract]
Preferred stock, par value $ 0.01 $ 0.01
Preferred stock, shares authorized50,000,000 50,000,000
Preferred stock, shares issued37,790 37,790
Preferred stock, shares outstanding37,790 37,790
Preferred stock, liquidation preference $ 944,750 $ 944,750
Common stock, par value $ 0.01 $ 0.01
Common stock, shares authorized100,000,000 100,000,000
Common stock, shares issued27,486,788 27,440,953
Common Stock, Shares, Outstanding27,486,788 27,440,953

Consolidated Statements Of Inco

Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Consolidated Statements Of Income [Abstract]
Rental income $ 103,760 $ 108,064 $ 310,535 $ 323,671
Expenses
Cost of operations32,096 32,468 93,490 97,521
Depreciation and amortization23,064 26,220 72,646 75,863
General and administrative5,047 4,051 11,374 10,111
Total operating expenses60,207 62,739 177,510 183,495
Interest and other income230 1,384 1,012 2,766
Interest and other expense(536)(199)(900)(484)
Gain on sale of real estate facilities7,652 27,273
Net income50,899 46,510 160,410 142,458
Allocation to noncontrolling interests(8,124)(7,020)(26,011)(21,670)
Net income allocable to PS Business Parks, Inc.42,775 39,490 134,399 120,788
Allocation to preferred shareholders(12,046)(12,959)(36,139)(38,877)
Allocation to restricted stock unit holders(149)(219)(543)(699)
Net income allocable to common shareholders $ 30,580 $ 26,312 $ 97,717 $ 81,212
Net income per common share
Basic $ 1.11 $ 0.96 $ 3.56 $ 2.96
Diluted $ 1.11 $ 0.96 $ 3.55 $ 2.95
Weighted average common shares outstanding
Basic27,483 27,432 27,470 27,411
Diluted27,565 27,543 27,560 27,512

Consolidated Statements Of Equi

Consolidated Statements Of Equity - USD ($) $ in ThousandsPreferred Stock [Member]Common Stock [Member]Paid-In Capital [Member]Accumulated Earnings [Member]Total PS Business Parks, Inc.'s Shareholders' Equity [Member]Noncontrolling Interests [Member]Total
Balances at Dec. 31, 2018 $ 959,750 $ 274 $ 736,131 $ 69,207 $ 1,765,362 $ 218,091 $ 1,983,453
Balances, shares at Dec. 31, 201838,390 27,362,101
Issuance of common stock in connection with stock-based compensation709 709 709
Issuance of common stock in connection with stock-based compensation, shares73,038
Stock compensation, net3,292 3,292 3,292
Cash paid for taxes in lieu of shares upon vesting of restricted stock units(6,120)(6,120)(6,120)
Net income120,788 120,788 21,670 142,458
Distributions
Preferred stock (Note 9)(38,877)(38,877)(38,877)
Common stock(86,343)(86,343)(86,343)
Noncontrolling interests—Common Units(23,012)(23,012)
Noncontrolling interests—Joint venture(78)(78)
Adjustment to noncontrolling interests-common units in the OP748 748 (748)
Balances at Sep. 30, 2019 $ 959,750 $ 274 734,760 64,775 1,759,559 215,923 1,975,482
Balances, shares at Sep. 30, 201938,390 27,435,139
Balances at Jun. 30, 2019 $ 959,750 $ 274 733,777 67,049 1,760,850 216,327 1,977,177
Balances, shares at Jun. 30, 201938,390 27,429,756
Issuance of common stock in connection with stock-based compensation, shares5,383
Stock compensation, net1,883 1,883 1,883
Cash paid for taxes in lieu of shares upon vesting of restricted stock units(620)(620)(620)
Net income39,490 39,490 7,020 46,510
Distributions
Preferred stock (Note 9)(12,959)(12,959)(12,959)
Common stock(28,805)(28,805)(28,805)
Noncontrolling interests—Common Units(7,671)(7,671)
Noncontrolling interests—Joint venture(33)(33)
Adjustment to noncontrolling interests-common units in the OP(280)(280)280
Balances at Sep. 30, 2019 $ 959,750 $ 274 734,760 64,775 1,759,559 215,923 1,975,482
Balances, shares at Sep. 30, 201938,390 27,435,139
Balances at Dec. 31, 2019 $ 944,750 $ 274 736,986 63,666 1,745,676 216,135 1,961,811
Balances, shares at Dec. 31, 201937,790 27,440,953
Issuance of common stock in connection with stock-based compensation259 259 259
Issuance of common stock in connection with stock-based compensation, shares45,835
Stock compensation, net3,922 3,922 3,922
Cash paid for taxes in lieu of shares upon vesting of restricted stock units(4,102)(4,102)(4,102)
Capital contribution to joint venture438 438
Net income134,399 134,399 26,011 160,410
Distributions
Preferred stock (Note 9)(36,139)(36,139)(36,139)
Common stock(86,533)(86,533)(86,533)
Noncontrolling interests—Common Units(23,012)(23,012)
Noncontrolling interests—Joint venture(109)(109)
Balances at Sep. 30, 2020 $ 944,750 $ 274 737,065 75,393 1,757,482 219,463 1,976,945
Balances, shares at Sep. 30, 202037,790 27,486,788
Balances at Jun. 30, 2020 $ 944,750 $ 274 735,129 73,524 1,753,677 218,618 1,972,295
Balances, shares at Jun. 30, 202037,790 27,481,486
Issuance of common stock in connection with stock-based compensation, shares5,302
Stock compensation, net2,378 2,378 2,378
Cash paid for taxes in lieu of shares upon vesting of restricted stock units(442)(442)(442)
Capital contribution to joint venture438 438
Net income42,775 42,775 8,124 50,899
Distributions
Preferred stock (Note 9)(12,046)(12,046)(12,046)
Common stock(28,860)(28,860)(28,860)
Noncontrolling interests—Common Units(7,671)(7,671)
Noncontrolling interests—Joint venture(46)(46)
Balances at Sep. 30, 2020 $ 944,750 $ 274 $ 737,065 $ 75,393 $ 1,757,482 $ 219,463 $ 1,976,945
Balances, shares at Sep. 30, 202037,790 27,486,788

Consolidated Statements Of Eq_2

Consolidated Statements Of Equity (Parenthetical) - $ / shares3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Consolidated Statements Of Equity [Abstract]
Common stock, distributions per share $ 1.05 $ 1.05 $ 3.15 $ 3.15

Consolidated Statements Of Cash

Consolidated Statements Of Cash Flows - USD ($) $ in Thousands9 Months Ended
Sep. 30, 2020Sep. 30, 2019
Cash flows from operating activities
Net income $ 160,410 $ 142,458
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization expense72,646 75,863
Tenant improvement reimbursement amortization, net of lease incentive amortization(493)(788)
Gain on sale of real estate facilities(27,273)
Stock compensation expense4,391 3,991
Amortization of financing costs410 410
Other, net1,466 (1,071)
Total adjustments51,147 78,405
Net cash provided by operating activities211,557 220,863
Cash flows from investing activities
Capital expenditures to real estate facilities(23,189)(26,272)
Capital expenditures to land and building held for development(10,602)(2,873)
Acquisition of real estate facilities(13,423)(117,691)
Proceeds from sale of real estate facilities40,674
Net cash used in investing activities(6,540)(146,836)
Cash flows from financing activities
Borrowings on credit facility70,000
Repayment of borrowings on credit facility(20,000)
Payment of financing costs(255)(237)
Proceeds from the exercise of stock options259 709
Cash paid for taxes in lieu of shares upon vesting of restricted stock units(4,102)(6,120)
Cash paid to restricted stock unit holders(469)(699)
Capital contribution to joint venture438
Distributions paid to preferred shareholders(36,139)(38,877)
Distributions paid to common shareholders(86,533)(86,343)
Distributions paid to noncontrolling interests-common units(23,012)(23,012)
Distributions paid to noncontrolling interests-joint venture(109)(78)
Net cash used in financing activities(149,922)(104,657)
Net increase (decrease) in cash and cash equivalents55,095 (30,630)
Cash, cash equivalents and restricted cash at the beginning of the period63,874 38,467
Cash, cash equivalents and restricted cash at the end of the period $ 118,969 7,837
Adjustment to noncontrolling interests-common units in the OP
Noncontrolling interests-common units(748)
Paid-in capital $ 748

Organization And Description Of

Organization And Description Of Business9 Months Ended
Sep. 30, 2020
Organization And Description Of Business [Abstract]
Organization And Description Of Business1. Organization and description of business Organization PS Business Parks, Inc. (“PSB”) was incorporated in the state of California in 1990. As of September 30, 2020, PSB owned 79.0 % of the common partnership units of PS Business Parks, L.P. (the “OP”). The remaining common partnership units are owned by Public Storage (“PS”). PS’s interest in the OP is referred to as the “PS OP Interests.” PSB, as the sole general partner of the OP, has full, exclusive and complete responsibility and discretion in managing and controlling the OP. PSB and its subsidiaries, including the OP and our consolidated joint ventures, are collectively referred to as the “Company,” “we,” “us,” or “our.” PS also owns 7.2 million common shares and would own 41.6 % (or 14.5 million shares) of the outstanding shares of the Company’s common stock if it redeemed its common partnership units for common shares. Description of business The Company is a fully-integrated, self-advised and self-managed real estate investment trust (“REIT”) that owns, operates, acquires and develops commercial properties, primarily multi-tenant industrial, flex and office space. As of September 30, 2020, the Company owned and operated 27.5 million rentable square feet of commercial space in six states, comprised of 97 parks and 672 buildings. The Company also held a 95.0 % interest in a joint venture entity which owns Highgate at The Mile, a 395 -un it multifamily apartment complex located in Tysons, Virginia, and a 98.2 % interest in a joint venture formed to develop Brentford at The Mile, a planned 411 -unit multifamily apartment complex also located in Tysons, Virginia . The Company also manages for a fee approximately 0.4 million rentable square feet on behalf of PS.

Summary Of Significant Accounti

Summary Of Significant Accounting Policies9 Months Ended
Sep. 30, 2020
Summary Of Significant Accounting Policies [Abstract]
Summary Of Significant Accounting Policies2. Summary of significant accounting policies Basis of presentation The accompanying unaudited consolidated financial statements include the accounts of PSB and its subsidiaries, including the OP and our consolidated joint venture. All significant inter-company balances and transactions have been eliminated in the consolidated financial statements. The financial statements are presented on an accrual basis in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information, instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ended December 31 , 2020 . For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Consolidation and equity method of accounting We consider entities to be Variable Interest Entities (“VIEs”) when they have insufficient equity to finance their activities without additional subordinated financial support provided by other parties, or the equity holders as a group do not have a controlling financial interest. A limited partnership is also generally considered a VIE if the limited partners do not participate in operating decisions. We consolidate VIEs when we are the primary beneficiary, generally defined as having (i) the power to direct the activities most significantly impacting economic performance and (ii) either the obligation to absorb losses or the right to receive benefits from the VIE. We account for investments in entities that are not VIEs that we have significant influence over, but do not control, using the equity method of accounting and for investment in entities that we control, we consolidate. We consolidate the joint venture that owns Highgate at The Mile and the joint venture that is developing Brentford at The Mile. See Note 3 and 4 for more information relating to these joint venture arrangements. PS, the sole limited partner in the OP, has no power to direct the activities of the OP. We are the primary beneficiary of the OP. Accordingly, we consider the OP a VIE and consolidate it. Substantially all of our assets and liabilities are held by the OP. Noncontrolling interests Noncontrolling interests represent (i) PS’s noncontrolling interest in the OP through its ownership of 7,305,355 common partnership units, (ii) a third-party 5.0 % interest in our consolidated joint venture that owns Highgate at The Mile, a 395 -unit multifamily apartment complex, and (iii) a 1.8 % interest in our consolidated joint venture formed to develop Brentford at The Mile, a planned 411 -unit multifamily apartment complex. See Note 7 for further information on noncontrolling interests. Use of estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates. Financial instruments The methods and assumptions used to estimate the fair value of financial instruments are described below. The Company has estimated the fair value of financial instruments using available market information and appropriate valuation methodologies. Considerable judgment is required in interpreting market data to develop estimates of market value. Accordingly, estimated fair values are not necessarily indicative of the amounts that could be realized in current market exchanges. The Company determines the estimated fair value of financial assets and liabilities utilizing a hierarchy of valuation techniques based on whether the inputs to a fair value measurement are considered to be observable or unobservable in a marketplace. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions. This hierarchy requires the use of observable market data when available. The following is the fair value hierarchy:  Level 1 —quoted prices for identical instruments in active markets;  Level 2 —quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and  Level 3 —fair value measurements derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Financial assets that are exposed to credit risk consist primarily of cash equivalents and receivables. The Company considers all highly liquid investments with a remaining maturity of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents, which consist primarily of money market investments, are only invested in entities with an investment grade rating. Receivables are comprised of balances due from various customers. Balances that the Company expects to become uncollectible are written off. Due to the short period to maturity of the Company’s cash and cash equivalents, accounts receivable, other assets and accrued and other liabilities, the carrying values as presented on the consolidated balance sheets are reasonable estimates of fair value. Carrying values of the Company’s Credit Facility (as defined in Note 6) approximate fair value. The characteristics of these financial instruments, market data and other comparative metrics utilized in determining these fair values are “Level 2” inputs. The following table provides a reconciliation of cash, cash equivalents and restricted cash per the consolidated statements of cash flow to the corresponding financial statement line items in the consolidated balance sheets (in thousands) : December 31, 2019 2018 Consolidated balance sheets Cash and cash equivalents $ 62,786 $ 37,379 Restricted cash included in Land and building held for development, net 1,088 1,088 Cash and cash equivalents and restricted cash at the end of the period $ 63,874 $ 38,467 September 30, 2020 2019 Consolidated balance sheets Cash and cash equivalents $ 117,881 $ 6,749 Restricted cash included in Land and building held for development, net 1,088 1,088 Cash and cash equivalents and restricted cash at the end of the period $ 118,969 $ 7,837 Real estate facilities Real estate facilities are recorded at cost. Property taxes, insurance, interest and costs essential to the development of property for its intended use are capitalized during the period of development. Direct costs related to the renovation or improvement of the properties are capitalized. Expenditures for repairs and maintenance are expensed as incurred. Expenditures that are expected to benefit a period greater than two years are capitalized and depreciated over their estimated useful life. Buildings and improvements are depreciated using the straight-line method over their estimated useful lives, which generally range from five to 30 years. Transaction costs, which include tenant improvements and lease commissions, for leases with terms greater than one year are capitalized and depreciated over their estimated useful lives. Property held for sale or development Real estate is classified as held for sale when the asset is being marketed for sale or subject to an eminent domain process and we expect that a sale or taking is likely to occur in the next 12 months . Real estate is classified as held for development when it is no longer used in its original form and it will be developed to an alternate use. Property held for sale is not depreciated. Intangible assets/liabilities When we acquire real estate facilities, an intangible asset is recorded in other assets for leases where the in-place rent is higher than market rents, and an intangible liability is recorded in other liabilities where the market rents are higher than the in-place rents. The amounts recorded are based upon the present value (using a discount rate which reflects the risks associated with the leases acquired) of such differences over the lease term and such amounts are amortized to rental income over the respective remaining lease term. As of September 30, 2020, the value of above-market in-place rents resulted in net intangible assets of $ 0.8 million, net of $ 10.9 million of accumulated amortization and the value of below-market in-place rents resulted in net intangible liabilities of $ 1.8 million, net of $ 12.0 million of accumulated amortization. As of December 31, 2019, the value of above-market in-place rents resulted in net intangible assets of $ 1.2 million, net of $ 10.6 million of accumulated amortization and the value of below-market in-place rents resulted in net intangible liabilities of $ 2.4 million, net of $ 11.4 million of accumulated amortization. Additionally, when we acquire real estate facilities, the value of in-place leases (i.e., customer lease-up costs) is recorded in other assets and is amortized to depreciation and amortization expense over the respective remaining lease term. As of September 30, 2020, the value of acquired in-place leases resulted in net intangible assets of $ 3.5 million, net of $ 6.5 million of accumulated amortization. As of December 31, 2019, the value of acquired in-place leases resulted in net intangible assets of $ 5.7 million, net of $ 4.1 million of accumulated amortization. As of September 30, 2020, the value of our right-of-use (“ROU”) assets relating to our existing ground lease arrangements and the related liability, included in “other assets” on our consolidated balance sheets and the corresponding liability under “accrued and other liabilities,” was $ 1.5 million, net of $ 0.2 million of accumulated amortization. As of December 31, 2019, the value of our ROU assets and related liability relating to our ground lease arrangements was $ 1.6 million, net of $ 0.1 million of accumulated amortization. These ground leases expire in 2029 and 2030 and do not have options to extend. As of September 30, 2020, the remaining lease terms were 9 .0 years and 9. 3 years. Lease expense for these ground leases is recognized in the period the applicable costs are incurred, and the monthly lease amount for these operating leases is constant and without contractual increases throughout the remaining terms. Evaluation of asset impairment We evaluate our real estate and finite-lived intangible assets for impairment each quarter. If there are indicators of impairment and we determine that the carrying value of the asset is not recoverable from estimated future undiscounted cash flows to be received through the asset’s remaining life (or, if earlier, the expected disposal date), we record an impairment charge to the extent the carrying amount exceeds the asset’s estimated fair value or net proceeds from expected disposal. No impairment charges were recorded in any period presented herein. Stock compensation Share-based payments to employees, including grants of employee stock options, are recognized as stock compensation expense in the Company’s consolidated statements of income based on their grant date fair values, except for performance-based grants, which are accounted for based on their fair values at the beginning of the service period. See Note 11. Accrued and other liabilities Accrued and other liabilities consist primarily of rents prepaid by our customers, trade payables, property tax accruals, accrued payroll and contingent loss accruals when probable and estimable, as well as the intangible liabilities discussed above. We disclose the nature of significant unaccrued losses that are reasonably possible of occurring and, if estimable, a range of exposure. The fair value of accrued and other liabilities approximate book value due to the short period until settlement. Other assets Other assets are comprised primarily of prepaid expenses, as well as the intangible assets discussed above. Revenue recognition We recognize the aggregate rent to be collected (including the impact of escalators and concessions) under leases ratably throughout the non-cancellable lease term on a “straight-line” basis, commencing when the customer takes control of the leased space. Cumulative straight-line rent recognized in excess of amounts billed per the lease term is presented as “deferred rent receivable” on our consolidated balance sheets. The Company presents r eimbursements from customers for real estate taxes and other recoverable operating expenses under a single lease component presentation as the timing and pattern of transfer of such reimbursements are the same as base rent, and the combined single component of such leases are classified as operating leases. Accordingly, the Company recognizes such variable lease payments resulting from the reimbursements from customers for real estate taxes and other recoverable operating expenses as rental income in the period the applicable costs are incurred. Property management fees are recognized in the period earned as other income. The Company monitors the collectability of its receivable balances, including deferred rent receivable balances, on an ongoing basis. The Company writes off uncollectible customer receivable balances, including deferred rent receivable balances, as a reduction to rental income in the period such balances are no longer probable of being collected. Therefore, recognition of rental income is limited to the amount of cash collected for those customer receivable balances deemed uncollectible. The Company wrote-off accounts receivable and deferred rent receivable of $ 0.3 million and $ 0.3 million, respectively, for the three months ended September 30, 2020, and $ 1.5 million and $ 2.7 million, respectively, for the nine months ended September 30, 2020. The Company recognized revenue from our lease arrangements aggregating to $ 103.8 million and $ 108.1 million for the three months ended September 30, 2020 and 2019, respectively, and $ 310.5 million and $ 323.7 million for the nine months ended September 30, 2020 and 2019, respectively. This revenue consisted primarily of rental income from operating leases and the related variable lease payments resulting from reimbursements of property operating expenses. Base rental income was $ 79.4 million and $ 84.1 million for the three months ended September 30, 2020 and 2019, respectively, and $ 238.3 million and $ 250.7 million for the nine months ended September 30, 2020 and 2019, respectively. Variable lease payments were $ 24.4 million and $ 24.0 million for the three months ended September 30, 2020 and 2019, respectively, and $ 72.2 million and $ 73.0 million for the nine months ended September 30, 2020 and 2019, respectively. In April 2020, the Financial Accounting Standard Board issued a Staff Question-and-Answer ("Lease Modification Q&A") to respond to frequently asked questions about accounting for lease concessions related to the novel coronavirus (“COVID-19”) pandemic. Under existing lease guidance, an entity would have to determine, on a lease by lease basis, if a lease concession contained a lease which would be accounted for under the lease modification framework, or if a lease concession was an enforceable right or obligation that existed in the original lease, which would be accounted for outside the lease modification framework. The Lease Modification Q&A provides that, to the extent that cash flow after the lease concessions are substantially the same, or less than, the cash flow previously required by the existing lease, an entity is not required to evaluate each contract to determine whether a concession provided by a lessor to a lessee in response to the COVID-19 pandemic is a lease modification. Instead, an entity can account for such lease concessions either (i) as if they were part of the enforceable rights and obligations of the parties under the existing lease contract; or (ii) as a lease modification. Based on the Lease Modification Q&A, an entity is not required to account for all lease concessions in response to the COVID-19 pandemic under one elected option; however, the entity is required to apply the elected option consistently to leases with similar characteristics and in similar circumstances. In accordance with the Lease Modification Q&A, the Company has elected to account for lease concessions in response to the COVID-19 pandemic as a lease modification as the cash flow after these lease concessions is substantially the same, or less than, the cash flow previously required by the existing lease. The Company records rent deferrals and abatements in deferred rent receivable in the accompanying consolidated balance sheets and will recognize these amounts over the remainder of the respective lease terms. For lease concessions in response to the COVID-19 pandemic that modified the terms and substantially changed the underlying cash flow of the existing lease for the remaining term, the Company accounts for such concession as a lease modification. As a result of the COVID-19 pandemic, through the nine months ended September 30, 2020 the Company entered into rent relief agreements with 388 customers (representing 11.0 % of total customers based on rental income). The Company agreed to defer $ 1.7 million and abate $ 0.3 million of billed rental income during the three months ended September 30, 2020, and defer $ 5.5 million and abate $ 1.2 million of billed rental income during the nine months ended September 30, 2020. As of October 26, 2020, of the $ 5.5 million of COVID-19 related rent deferrals , the Company collected $ 1.3 million, or 98.3 % , of scheduled repayments billed through September 30, 2020. The duration and severity of the effects of the COVID-19 pandemic on the economy are uncertain and are likely to directly impact collectability of certain customers rent receivable balances in the future. The Company has taken into account the current financial condition of its tenants, including consideration of COVID - 19 impacts, in its estimation of its uncollectible accounts and deferred rents receivable at September 30, 2020. The Company is closely monitoring the collectability of such rents and will adjust future estimations as further information is known. Sales of real estate facilities Sales of real estate facilities are not part of our ordinary activities, and as a result, we consider such sales as contracts with non-customers. We recognize sales of real estate when we have collected payment and the attributes of ownership, such as possession and control of the asset, have been transferred to the buyer. If a contract for sale includes obligations to provide goods or services to the buyer, an allocated portion of the contract price is recognized as revenue as the related goods or services are transferred to the buyer. General and administrative expense General and administrative expense includes executive and other compensation, corporate office expenses, professional fees, and other such costs that are not directly related to the operation of our real estate facilities. Income taxes We have elected to be treated as a REIT, as defined in the Internal Revenue Code of 1986, as amended (the “Code”). As a REIT, we do not incur federal income tax if we distribute substantially all of our “REIT taxable income” each year, and if we meet certain organizational and operational requirements. We believe we have met these REIT requirements for all periods presented herein. Accordingly, we have recorded no federal income tax expense related to our “REIT taxable income.” We recognize tax benefits of uncertain income tax positions that are subject to audit only if we believe it is more likely than not that the position would ultimately be sustained assuming the relevant taxing authorities had full knowledge of the relevant facts and circumstances of our positions. As of September 30, 2020 and December 31, 2019, we did no t recognize any tax benefit for uncertain tax positions. Accounting for preferred equity issuance costs We record preferred equity issuance costs as a reduction to paid-in capital on our consolidated balance sheets at the time the preferred securities are issued and reflect the carrying value of the preferred equity at its redemption value. An additional allocation of income is made from the common shareholders to the preferred shareholders in the amount of the original issuance costs, and we reclassify the redemption value from equity to liabilities, when we call preferred shares for redemption, with such liabilities relieved once the preferred shares are redeemed. Net income per common share Notwithstanding the presentation of income allocations on our consolidated statements of income, net income is allocated to (a) preferred shareholders, for distributions paid or payable, (b) preferred shareholders, to the extent redemption value exceeds the related carrying value, (c) our joint venture partner in proportion to their percentage interest in the joint ventures, to the extent the consolidated joint ventures produce net income or loss during the period and (d) restricted stock unit (“RSU”) holders, for non-forfeitable dividends paid adjusted for participation rights in undistributed earnings. The remaining net income is allocated to the common partnership units and our common shareholders, respectively, based upon the pro-rata aggregate number of units and shares outstanding. Basic and diluted net income per common share are each calculated based upon net income allocable to common shareholders, divided by (i) in the case of basic net income per common share, weighted average common shares and (ii) in the case of diluted income per share, weighted average common shares adjusted for the impact of stock compensation awards outstanding (see Note 11) using the treasury stock method. The following table sets forth the components of our basic and diluted net income per share that are not reflected on the face of our consolidated statements of income, including the allocation of income to common shareholders and common partnership units, the percentage of weighted average shares and common partnership units, as well as basic and diluted weighted average shares ( in thousands ): For the Three Months For the Nine Months Ended September 30, Ended September 30, 2020 2019 2020 2019 Calculation of net income allocable to common shareholders Net income $ 50,899 $ 46,510 $ 160,410 $ 142,458 Net (income) loss allocated to Preferred shareholders based upon distributions ( 12,046 ) ( 12,959 ) ( 36,139 ) ( 38,877 ) Noncontrolling interests—joint venture 4 ( 14 ) ( 26 ) ( 27 ) Restricted stock unit holders ( 149 ) ( 219 ) ( 543 ) ( 699 ) Net income allocable to common shareholders and noncontrolling interests—common units 38,708 33,318 123,702 102,855 Net income allocation to noncontrolling interests— common units ( 8,128 ) ( 7,006 ) ( 25,985 ) ( 21,643 ) Net income allocable to common shareholders $ 30,580 $ 26,312 $ 97,717 $ 81,212 Calculation of common partnership units as a percentage of common share equivalents Weighted average common shares outstanding 27,483 27,432 27,470 27,411 Weighted average common partnership units outstanding 7,305 7,305 7,305 7,305 Total common share equivalents 34,788 34,737 34,775 34,716 Common partnership units as a percentage of common share equivalents 21.0 % 21.0 % 21.0 % 21.0 % Weighted average common shares outstanding Basic weighted average common shares outstanding 27,483 27,432 27,470 27,411 Net effect of dilutive stock compensation—based on treasury stock method using average market price 82 111 90 101 Diluted weighted average common shares outstanding 27,565 27,543 27,560 27,512 Segment reporting The Company has two operating segments: (i) the acquisition, development, ownership and management of commercial real estate and (ii) the acquisition, development, ownership and management of multifamily real estate, but has only one reportable segment as the multifamily segment does not meet the quantitative thresholds necessary to require reporting as a separate segment. Reclassifications Certain reclassifications have been made to the consolidated financial statements for 2019 in order to conform to the 2020 presentation, including reclassifying assets held for sale during 2020 from “real estate facilities, at cost” totaling $ 3.8 million as of December 31, 2019 into “properties held for sale, net” on our consolidated balance sheets.

Real Estate Facilities

Real Estate Facilities9 Months Ended
Sep. 30, 2020
Real Estate Facilities [Abstract]
Real Estate Facilities 3. Real estate facilities The activity in real estate facilities for the nine months ended September 30, 2020 was as follows (in thousands) : Buildings and Accumulated Land Improvements Depreciation Total Balances at December 31, 2019 (1) $ 844,419 $ 2,203,308 $ ( 1,158,489 ) $ 1,889,238 Acquisition of real estate facility 11,123 2,153 — 13,276 Capital expenditures — 23,358 — 23,358 Disposals (2) — ( 15,005 ) 15,005 — Depreciation and amortization expense — — ( 67,035 ) ( 67,035 ) Transfer to properties held for sale — ( 16 ) 46 30 Balances at September 30, 2020 $ 855,542 $ 2,213,798 $ ( 1,210,473 ) $ 1,858,867 ____________________________ (1) Land, building and improvements, and accumulated depreciation, respectively, totaling $ 2.2 million, $ 2.8 million, and $ 1.2 million were reclassified as of December 31, 2019 to “properties held for sale, net,” representing two industrial buildings totaling 40,000 square feet located in Redmond, Washington, which were subject to an eminent domain process. (2) Disposals primarily represent the book value of tenant improvements that have been removed upon the customer vacating their space. We have a 95.0 % interest in a joint venture that owns Highgate at The Mile, a 395 -un it multifamily apartment complex on a five -acre site within the Company’s 44.5 acre office and multifamily park located in Tysons, Virginia (“The Mile”). An unrelated real estate development company (the “JV Partner”) holds the remaining 5.0 %. We consolidate the joint venture that owns Highgate at The Mile and as such, the consolidated real estate assets and activities related to this joint venture are included in the table above. As of September 30, 2020, we have commitments, pursuant to executed leases throughout our portfolio, to spend $ 11.2 million on transaction costs, which include tenant improvements and lease commissions. The purchase price of acquired properties is allocated to land, buildings and improvements (including tenant improvements, unamortized lease commissions, acquired in-place lease values and customer relationships, if any), intangible assets and intangible liabilities (see Note 2), based upon the relative fair value of each component, which are evaluated independently. The Company must make significant assumptions in determining the fair value of assets acquired and liabilities assumed, which can affect the recognition and timing of revenue and depreciation and amortization expense. The fair value of land is estimated based upon, among other considerations, comparable sales of land within the same region. The fair value of buildings and improvements is determined using a combination of the income and replacement cost approaches which both utilize available market information relevant to the acquired property. The fair value of other acquired assets including tenant improvements and unamortized lease commissions are determined using the replacement cost approach. The amount recorded to acquired in-place leases is also determined utilizing the income approach using market assumptions which are based on management’s assessment of current market conditions and the estimated lease-up periods for the respective spaces. Transaction costs related to asset acquisitions are capitalized. On January 10, 2020, we acquired a multi-tenant industrial park comprised of approximately 73,000 rentable square feet in La Mirada, California, for a total purchase price of $ 13.5 million, inclusive of capitalized transaction costs. On September 5, 2019, we acquired a multi-tenant industrial park comprised of approximately 543,000 rentable square feet in Santa Fe Springs, California, for a total purchase price of $ 104.3 million, inclusive of capitalized transaction costs. On April 18, 2019, we acquired a multi-tenant industrial park comprised of approximately 74,000 rentable square feet in Signal Hill, California, for a total purchase price of $ 13.8 million, inclusive of capitalized transaction costs. The following table summarizes the assets acquired and liabilities assumed for the nine months ended September 30, (in thousands) : 2020 2019 Land $ 11,123 $ 75,160 Buildings and improvements 2,153 40,765 Accrued and other liabilities (below-market in-place rents) — ( 1,142 ) Other assets (in-place lease value) 237 3,371 Total purchase price 13,513 118,154 Net operating assets acquired and liabilities assumed ( 90 ) ( 463 ) Total cash paid $ 13,423 $ 117,691 As of September 30, 2020, the Company was in the process of developing an approximately 83,000 square feet small-bay industrial building at its Freeport Business Park in Irving, Texas. As of September 30, 2020, $ 6.1 million of the estimated $ 8.1 million total development costs had been incurred and was reflected under land and building held for development, net on our consolidated balance sheets. This construction project is scheduled to be completed in the fourth quarter of 2020. Properties Sold and Held for Sale On September 16, 2020, the Company sold two industrial buildings totaling 40,000 square feet located in Redmond, Washington, which were subject to an eminent domain process for net proceeds of $ 11.4 million and resulted in a gain of $ 7.7 million . During 2020, the Company reclassified these two buildings as properties held for sale, net , in the consolidated balance sheet as of December 31, 2019. On January 7, 2020, the Company sold a 113,000 square foot office building located at Metro Park North in Montgomery County, Maryland, for net sale proceeds of $ 29.3 million , which resulted in a gain of $ 19.6 million . The Company determined that the sale did not meet the criteria for discontinued operations presentation, as the sale of such assets did not represent a strategic shift that will have a major effect on our operations and financial results. As a result of this determination, the asset is separately presented as held for sale in the consolidated balance sheet as of December 31, 2019.

Multifamily Developmental Activ

Multifamily Developmental Activity9 Months Ended
Sep. 30, 2020
Multifamily Developmental Activity [Abstract]
Multifamily Developmental Activity4. Multifamily developmental activity In August 2020, the Company entered into a new joint venture agreement with the JV Partner for the purpose of developing Brentford at The Mile, a planned 411 -unit multifamily apartment complex (the “Brentford Joint Venture”). Under the Brentford Joint Venture agreement, the Company has a 98.2 % controlling interest and is the managing member with the JV Partner holding the remaining 1.8 % limited partnership interest. We contributed a parcel of land to the Brentford Joint Venture (the “Brentford Parcel”) at a value of $ 18.5 million, for which we received equity contribution credit in the Brentford Joint Venture. Our cost basis in the Brentford Parcel was $ 5.4 million as of September 30, 2020. Construction of Brentford at The Mile commenced in August 2020 and is anticipated to be completed over a period of 24 to 36 months at an estimated development cost of $ 110 million to $ 115 million, excluding land cost. As of September 30, 2020, the development cost incurred was $ 5.5 million, inclusive of our $ 5.4 million cost basis in the Brentford Parcel, which is reflected in land and building held for development, net on our consolidated balance sheets . During the three months ended September 30, 2020, the Company also recorded non-capitalizable demolition costs of $ 0.3 million in interest and other expense on our consolidated statements of income.

Leasing Activity

Leasing Activity9 Months Ended
Sep. 30, 2020
Leasing Activity [Abstract]
Leasing Activity 5. Leasing activity The Company leases space in its commercial real estate facilities to customers primarily under non-cancelable leases generally ranging from one to 10 years. Future minimum rental income, excluding recovery of operating expenses that may be collectable under these leases, as of September 30, 2020 is as follows (in thousands) : Remainder of 2020 $ 77,067 2021 275,894 2022 203,546 2023 143,242 2024 97,952 Thereafter 167,260 Total $ 964,961 In addition to minimum rental payments, certain customers reimburse the Company for their pro rata share of specified property operating expenses. Such reimbursements amounted to $ 24.4 million and $ 24.0 million for the three months ended September 30, 2020 and 2019, respectively, and $ 72.2 million and $ 73.0 million for the nine months ended September 30, 2020 and 2019, respectively. These variable lease payment amounts are included as rental income in the accompanying consolidated statements of income. Leases accounting for 3.0 % of total leased square footage are subject to termination options, and 1.7 % of total leased square footage have termination options exercisable through December 31, 2020 . In general, these leases provide for termination payments to us should the termination options be exercised. Certain leases also have an option to extend the term of the lease. The future minimum rental income in the above table assumes termination options and lease extension options are not exercised.

Bank Loans

Bank Loans9 Months Ended
Sep. 30, 2020
Bank Loans [Abstract]
Bank Loans6. Bank loans We have an unsecured revolving line of credit (the “Credit Facility”) with Wells Fargo Bank, National Association (“Wells Fargo”). The Credit Facility has a borrowing limit of $ 250.0 million and expires January 10, 20 22 . The rate of interest charged on borrowings is based on LIBOR plus 0.80 % to LIBOR plus 1.55 % depending on the Company’s credit ratings. Currently, the Company’s rate under the Credit Facility is LIBOR plus 0.825 %. In addition, the Company is required to pay an annual facility fee ranging from 0.10 % to 0.30 % of the borrowing limit depending on the Company’s credit ratings (currently 0.125 %). We had zero balance outstanding on our Credit Facility at September 30, 2020 and December 31, 2019. The Company had $ 0.3 million and $ 0.5 million of total unamortized loan origination costs as of September 30, 2020 and December 31, 2019, respectively, which is included in other assets in the accompanying consolidated balance sheets. The Credit Facility requires us to meet certain covenants, all of which we were in compliance with as of September 30, 2020. Interest on outstanding borrowings is payable monthly .

Noncontrolling Interests

Noncontrolling Interests9 Months Ended
Sep. 30, 2020
Noncontrolling Interests [Abstract]
Noncontrolling Interests 7. Noncontrolling interests Noncontrolling interests represent (i) PS’s noncontrolling interest in the OP through its ownership of 7,305,355 common partnership units, totaling $ 216.2 million and $ 213.2 million at September 30, 2020 and December 31, 2019, respectively, and (ii) the JV Partner’s interests in our consolidated joint ventures, totaling $ 3.3 million and $ 2.9 million at September 30, 2020 and December 31, 2019, respectively. PS OP Interests Each common partnership unit receives a cash distribution equal to the dividend paid on our common shares and is redeemable at PS’s option. If PS exercises its right of redemption, at PSB’s option (a) PS will receive one common share from us for each common partnership unit redeemed, or (b) PS will receive cash from us for each common partnership unit redeemed generally equal to the market value of a common share (as defined in the Operating Partnership Agreement). We can prevent redemptions that we believe would violate either our articles of incorporation or securities laws, cause PSB to no longer qualify as a REIT, or could result in the OP no longer being treated as a partnership for federal tax purposes. In allocating net income and presenting equity, we treat the common partnership units as if converted to common shares. Accordingly, they received the same net income allocation per unit as a common share totaling $ 8.1 million and $ 7.0 million for the three months ended September 30, 2020 and 2019, respectively, and $ 26.0 million and $ 21.6 million for the nine months ended September 30, 2020 and 2019, respectively. JV Partner As a result of the Company entering into the Brentford Joint Venture, the Company recorded noncontrolling interests of $ 0.4 million related to the JV Partner’s 1.8 % interest during the three months ended September 30, 2020 .

Related Party Transactions

Related Party Transactions9 Months Ended
Sep. 30, 2020
Related Party Transactions [Abstract]
Related Party Transactions 8. Related party transactions We manage certain industrial, office and retail facilities in the United States for PS under either the “Public Storage” or “PS Business Parks” names (the “PS Management Agreement”). Under PS’s supervision, we coordinate and assist in rental and marketing activities, property maintenance and other operational activities, including the selection of vendors, suppliers, employees and independent contractors. We receive a management fee based upon a percentage of revenues, which is included in interest and other income on our consolidated statements of income. Management fee revenues were $ 0.1 million for each of the three months ended September 30, 2020 and 2019 and $ 0.2 million for each of the nine months ended September 30, 2020 and 2019. We allocate certain operating expenses to PS related to the management of these properties, including payroll and other business expenses, totaling $ 0.1 million for each of the three months ended September 30, 2020 and 2019 and $ 0.3 million for each of the nine months ended September 30, 2020 and 2019. The PS Business Parks name and logo are owned by PS and licensed to us under a non-exclusive, royalty-free license agreement. The license can be terminated by either party for any reason with six months written notice. PS provides us property management services for the self-storage component of two assets we own and operates them under the “Public Storage” name. Either the Company or PS can cancel the property management contract upon 60 days ’ notice. Under our supervision, PS coordinates and assists in rental and marketing activities, and property maintenance and other operational activities, including the selection of vendors, suppliers, employees and independent contractors. Management fee expenses were less than $ 0.1 million for each of the three months ended September 30, 2020 and 2019 and $ 0.1 million for each of the nine months ended September 30, 2020 and 2019. Additionally, PS allocated certain operating expenses to us related to the management of these properties totaling less than $ 0.1 million for each of the three months ended September 30, 2020 and 2019 and $ 0.1 million for each of the nine months ended September 30, 2020 and 2019. These amounts are included under cost of operations on our consolidated statements of income. Pursuant to a cost sharing agreement, we share certain administrative services, corporate office space, and certain other third party costs with PS which are allocated based upon fair and reasonable estimates of the cost of the services expected to be provided. We reimbursed PS $ 0.4 million for costs PS incurred on our behalf for each of the three months ended September 30, 2020 and 2019 and $ 0.8 million for each of the nine months ended September 30, 2020 and 2019. PS reimbursed us less than $ 0.1 million for costs we incurred on their behalf for each of the three and nine months ended September 30, 2020 and 2019. The Company had net amounts due to PS of $ 0.1 million at September 30, 2020 and at December 31, 2019 for these contracts, as well as certain operating expenses paid by the Company on behalf of PS.

Shareholders' Equity

Shareholders' Equity9 Months Ended
Sep. 30, 2020
Shareholders' Equity [Abstract]
Shareholders' Equity 9. Shareholders’ equity Preferred stock As of September 30, 2020 and December 31, 2019, the Company had the following series of preferred stock outstanding: Earliest Potential Dividend Shares Amount Series Issuance Date Redemption Date Rate Outstanding (in thousands) Series W October 2016 October 2021 5.200 % 7,590 $ 189,750 Series X September 2017 September 2022 5.250 % 9,200 230,000 Series Y December 2017 December 2022 5.200 % 8,000 200,000 Series Z November 2019 November 2024 4.875 % 13,000 325,000 Total 37,790 $ 944,750 We paid $ 12.0 million and $ 13.0 million in distributions to our preferred shareholders for the three months ended September 30, 2020 and 2019, respectively, and $ 36.1 million and $ 38.9 million in distributions to our preferred shareholders for the nine months ended September 30, 2020 and 2019, respectively. The holders of our preferred stock have general preference rights with respect to liquidation, quarterly distributions and any accumulated unpaid distributions. Holders of our preferred stock will not be entitled to vote on most matters, except under certain conditions. In the event of a cumulative arrearage equal to six quarterly dividends, the holders of our preferred stock will have the right to elect two additional members to serve on the Company’s Board of Directors (the “Board”) until all events of default have been cured. At September 30, 2020, there were no dividends in arrears. Except under certain conditions relating to the Company’s qualification as a REIT, the preferred stock is not redeemable prior to the redemption dates noted above. On or after the respective redemption dates, the respective series of preferred stock will be redeemable, at the option of the Company, in whole or in part, at $ 25.00 per depositary share, plus any accrued and unpaid dividends. Common stock and units We paid $ 28.9 million ($ 1.05 per common share) and $ 28.8 million ( $ 1.05 per common share) in distributions to our common shareholders for the three months ended September 30, 2020 and 2019, respectively, and $ 86.5 million ($ 3.15 per common share) and $ 86.3 million ($ 3.15 per common share) in distributions to our common shareholders for the nine months ended September 30, 2020 and 2019, respectively. We paid $ 7.7 million ($ 1.05 per common unit) in distributions to our common unit holders for each of the three months ended September 30, 2020 and 2019, and $ 23.0 million ($ 3.15 per common unit) in distributions to our common unit holders for each of the nine months ended September 30, 2020 and 2019. Equity stock The Company is authorized to issue 100.0 million shares of Equity Stock. The Articles of Incorporation provide that Equity Stock may be issued from time to time in one or more series and give the Board broad authority to fix the dividend and distribution rights, conversion and voting rights, redemption provisions and liquidation rights of each series of Equity Stock. As of September 30, 2020 and December 31, 2019, no equity stock had been issued.

Commitments And Contingencies

Commitments And Contingencies9 Months Ended
Sep. 30, 2020
Commitments And Contingencies [Abstract]
Commitments And Contingencies10. Commitments and contingencies We are a party to various legal proceedings and subject to various claims and complaints; however, we believe that the likelihood of these proceedings resulting in a material loss to the Company, either individually or in the aggregate, is remote.

Stock Compensation

Stock Compensation9 Months Ended
Sep. 30, 2020
Stock Compensation [Abstract]
Stock Compensation 11. Stock compensation Under various share-based compensation plans, PSB grants non-qualified options to purchase the Company’s common shares at a price not less than fair value on the date of grant, as well as RSUs, to certain directors, officers and key employees. The service period for stock options and RSUs begins when (i) the Company and the recipient reach a mutual understanding of the key terms of the award, (ii) the award has been authorized, (iii) the recipient is affected by changes in the market price of our stock and (iv) it is probable that any performance conditions will be met, and ends when the stock options or RSUs vest. We account for forfeitures of share-based payments as they occur by reversing previously amortized share-based compensation expense with respect to grants that are forfeited in the period the employee terminates employment. We amortize the fair value of awards starting at the beginning of the service period as compensation expense. For awards that are earned solely upon the passage of time and continued service, the entire cost of the award is amortized on a straight-line basis over the service period. For awards with performance conditions, the individual cost of each vesting is amortized separately over each individual service period (the “accelerated attribution” method). In August 2020, the Company announced that Maria Hawthorne was retiring from her role as President and Chief Executive Officer (“CEO”) effective September 1, 2020 and would continue to serve as a Director of the Company. Due to Ms. Hawthorne’s continued service as a Director of the Company, her unvested stock option and restricted stock units will continue to vest on their original vesting schedule in accordance with the Company’s 2012 Equity and Performance-Based Incentive Compensation Plan and related award agreements. For financial reporting purposes, the end of the service periods for these stock option and restricted stock unit grants have changed from the various respective vesting dates to September 1, 2020, the date of her retirement as President and CEO. Accordingly, all remaining stock compensation expense for Ms. Hawthorne, which totaled $ 1.7 million, was amortized and included in general and administrative expense during the three and nine months ended September 30, 2020. Stock Options Stock options expire 10 years after the grant date and the exercise price is equal to the closing trading price of our common shares on the grant date. Stock option holders cannot require the Company to settle their award in cash. We use the Black-Scholes option valuation model to estimate the fair value of our stock options on the date of grant. For the three and nine months ended September 30, 2020, we recorded $ 0.1 million and $ 0.3 million, respectively, in compensation expense related to stock options as compared to $ 0.1 million and $ 0.2 million for the same periods in 2019, respectively. During the nine months ended September 30, 2020, 18,000 stock options were granted, 4,136 options were exercised and no options were forfeited. A total of 171,694 and 157,830 options were outstanding at September 30, 2020 and December 31, 2019, respectively. Restricted Stock Units RSUs granted prior to 2016 are subject to a six-year vesting, with 20 % vesting after year two, and 20 % vesting after each of the next four years. RSUs granted during and subsequent to 2016 are subject to a five-year vesting at the rate of 20 % per year. The grantee receives dividends for each outstanding RSU equal to the per share dividend received by common shareholders. We expense any dividends previously paid upon forfeiture of the related RSU. Upon vesting, the grantee receives common shares equal to the number of vested RSUs, less common shares withheld in exchange for tax withholdings made by the Company to satisfy the grantee’s statutory tax liabilities arising from the vesting. The fair value of our RSUs is determined based upon the applicable closing trading price of our common shares on the date of grant. In March 2020, the Compensation Committee of the Board approved an annual performance-based equity incentive plan (“2020 Incentive Program”). Under the Program, certain employees will be eligible to receive RSUs subject to the Company’s achievement of pre-established performance metrics based on growth in (i) net asset value per share, and (ii) Total Shareholder Value, each as computed pursuant to the terms of the 2020 Incentive Program. In the event the pre-established targets are achieved, eligible employees will receive the target award, except that the Compensation Committee of the Board may adjust the actual award to 75 % to 125 % of the target award based on the their assessment of whether certain strategic and operational goals were accomplished in the performance period. RSUs related to the 2020 Incentive Program will be awarded on or around March 1 of the subsequent year. RSUs awarded under the 2020 Incentive Program will vest in five equal installments, with the first installment vesting on the award date. RSU holders will earn dividend equivalent rights during the vesting period. During the three and nine months ended September 30, 2020, management determined that it was not probable that the targets under the 2020 Incentive Program would be met due to the negative impact of the COVID-19 pandemic, and, as such, the Company did not record stock compensation expense related to the 2020 Incentive Program. For the three and nine months ended September 30, 2020, respectively, we recorded $ 2.2 million and $ 3.5 million in compensation expense related to RSUs as compared to $ 0.8 million and $ 2.5 million for the same periods in 2019. During the nine months ended September 30, 2020, 100 RSUs were granted, 70,576 RSUs vested and 1,920 RSUs were forfeited. Tax withholdings totaling $ 4.1 million were made on behalf of employees in exchange for 28,877 common shares withheld upon vesting for the nine months ended September 30, 2020 resulting in the issuance of 41,699 common shares. Tax withholdings totaling $ 6.1 million were made on behalf of employees in exchange for 38,961 common shares withheld upon vesting for the nine months ended September 30, 2019 resulting in the issuance of 53,859 common shares. A total of 78,452 and 150,848 RSUs were outstanding at September 30, 2020 and December 31, 2019, respectively. In July 2019, the Company amended the Retirement Plan for Non-Employee Directors (the “Director Retirement Plan”), to increase the maximum shares issued upon retirement for each year served as a director from 8,000 shares to 10,000 shares of common stock. The Company recognizes compensation expense with regard to grants to be issued in the future under the Director Retirement Plan over the requisite service period. For the three and nine months ended September 30, 2020, respectively, we recorded $ 0.2 million and $ 0.6 million in compensation expense related to these shares as compared to $ 1.2 million and $ 1.3 million for the same periods in 2019. In April 2019, we issued 8,000 shares of common stock to a director upon retirement with an aggregate fair value of $ 1.2 million. Compensation expense for these shares was previously expensed. No director retirement shares were issued during the nine months ended September 30, 2020.

Subsequent Events

Subsequent Events9 Months Ended
Sep. 30, 2020
Subsequent Events [Abstract]
Subsequent Events12. Subsequent Events Subsequent to September 30, 2020, we acquired a multi-tenant industrial park comprised of approximately 246,000 rentable square feet in Alexandria, Virginia, for a total purchase price of $ 46.3 million.

Summary Of Significant Accoun_2

Summary Of Significant Accounting Policies (Policy)9 Months Ended
Sep. 30, 2020
Summary Of Significant Accounting Policies [Abstract]
Basis Of PresentationBasis of presentation The accompanying unaudited consolidated financial statements include the accounts of PSB and its subsidiaries, including the OP and our consolidated joint venture. All significant inter-company balances and transactions have been eliminated in the consolidated financial statements. The financial statements are presented on an accrual basis in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information, instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ended December 31 , 2020 . For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.
Consolidation And Equity Method Of AccountingConsolidation and equity method of accounting We consider entities to be Variable Interest Entities (“VIEs”) when they have insufficient equity to finance their activities without additional subordinated financial support provided by other parties, or the equity holders as a group do not have a controlling financial interest. A limited partnership is also generally considered a VIE if the limited partners do not participate in operating decisions. We consolidate VIEs when we are the primary beneficiary, generally defined as having (i) the power to direct the activities most significantly impacting economic performance and (ii) either the obligation to absorb losses or the right to receive benefits from the VIE. We account for investments in entities that are not VIEs that we have significant influence over, but do not control, using the equity method of accounting and for investment in entities that we control, we consolidate. We consolidate the joint venture that owns Highgate at The Mile and the joint venture that is developing Brentford at The Mile. See Note 3 and 4 for more information relating to these joint venture arrangements. PS, the sole limited partner in the OP, has no power to direct the activities of the OP. We are the primary beneficiary of the OP. Accordingly, we consider the OP a VIE and consolidate it. Substantially all of our assets and liabilities are held by the OP.
Noncontrolling InterestsNoncontrolling interests Noncontrolling interests represent (i) PS’s noncontrolling interest in the OP through its ownership of 7,305,355 common partnership units, (ii) a third-party 5.0 % interest in our consolidated joint venture that owns Highgate at The Mile, a 395 -unit multifamily apartment complex, and (iii) a 1.8 % interest in our consolidated joint venture formed to develop Brentford at The Mile, a planned 411 -unit multifamily apartment complex. See Note 7 for further information on noncontrolling interests.
Use Of EstimatesUse of estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates.
Financial InstrumentsFinancial instruments The methods and assumptions used to estimate the fair value of financial instruments are described below. The Company has estimated the fair value of financial instruments using available market information and appropriate valuation methodologies. Considerable judgment is required in interpreting market data to develop estimates of market value. Accordingly, estimated fair values are not necessarily indicative of the amounts that could be realized in current market exchanges. The Company determines the estimated fair value of financial assets and liabilities utilizing a hierarchy of valuation techniques based on whether the inputs to a fair value measurement are considered to be observable or unobservable in a marketplace. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions. This hierarchy requires the use of observable market data when available. The following is the fair value hierarchy:  Level 1 —quoted prices for identical instruments in active markets;  Level 2 —quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and  Level 3 —fair value measurements derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Financial assets that are exposed to credit risk consist primarily of cash equivalents and receivables. The Company considers all highly liquid investments with a remaining maturity of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents, which consist primarily of money market investments, are only invested in entities with an investment grade rating. Receivables are comprised of balances due from various customers. Balances that the Company expects to become uncollectible are written off. Due to the short period to maturity of the Company’s cash and cash equivalents, accounts receivable, other assets and accrued and other liabilities, the carrying values as presented on the consolidated balance sheets are reasonable estimates of fair value. Carrying values of the Company’s Credit Facility (as defined in Note 6) approximate fair value. The characteristics of these financial instruments, market data and other comparative metrics utilized in determining these fair values are “Level 2” inputs. The following table provides a reconciliation of cash, cash equivalents and restricted cash per the consolidated statements of cash flow to the corresponding financial statement line items in the consolidated balance sheets (in thousands) : December 31, 2019 2018 Consolidated balance sheets Cash and cash equivalents $ 62,786 $ 37,379 Restricted cash included in Land and building held for development, net 1,088 1,088 Cash and cash equivalents and restricted cash at the end of the period $ 63,874 $ 38,467 September 30, 2020 2019 Consolidated balance sheets Cash and cash equivalents $ 117,881 $ 6,749 Restricted cash included in Land and building held for development, net 1,088 1,088 Cash and cash equivalents and restricted cash at the end of the period $ 118,969 $ 7,837
Real Estate FacilitiesReal estate facilities Real estate facilities are recorded at cost. Property taxes, insurance, interest and costs essential to the development of property for its intended use are capitalized during the period of development. Direct costs related to the renovation or improvement of the properties are capitalized. Expenditures for repairs and maintenance are expensed as incurred. Expenditures that are expected to benefit a period greater than two years are capitalized and depreciated over their estimated useful life. Buildings and improvements are depreciated using the straight-line method over their estimated useful lives, which generally range from five to 30 years. Transaction costs, which include tenant improvements and lease commissions, for leases with terms greater than one year are capitalized and depreciated over their estimated useful lives.
Property Held For Sale Or DevelopmentProperty held for sale or development Real estate is classified as held for sale when the asset is being marketed for sale or subject to an eminent domain process and we expect that a sale or taking is likely to occur in the next 12 months . Real estate is classified as held for development when it is no longer used in its original form and it will be developed to an alternate use. Property held for sale is not depreciated.
Intangible Assets/LiabilitiesIntangible assets/liabilities When we acquire real estate facilities, an intangible asset is recorded in other assets for leases where the in-place rent is higher than market rents, and an intangible liability is recorded in other liabilities where the market rents are higher than the in-place rents. The amounts recorded are based upon the present value (using a discount rate which reflects the risks associated with the leases acquired) of such differences over the lease term and such amounts are amortized to rental income over the respective remaining lease term. As of September 30, 2020, the value of above-market in-place rents resulted in net intangible assets of $ 0.8 million, net of $ 10.9 million of accumulated amortization and the value of below-market in-place rents resulted in net intangible liabilities of $ 1.8 million, net of $ 12.0 million of accumulated amortization. As of December 31, 2019, the value of above-market in-place rents resulted in net intangible assets of $ 1.2 million, net of $ 10.6 million of accumulated amortization and the value of below-market in-place rents resulted in net intangible liabilities of $ 2.4 million, net of $ 11.4 million of accumulated amortization. Additionally, when we acquire real estate facilities, the value of in-place leases (i.e., customer lease-up costs) is recorded in other assets and is amortized to depreciation and amortization expense over the respective remaining lease term. As of September 30, 2020, the value of acquired in-place leases resulted in net intangible assets of $ 3.5 million, net of $ 6.5 million of accumulated amortization. As of December 31, 2019, the value of acquired in-place leases resulted in net intangible assets of $ 5.7 million, net of $ 4.1 million of accumulated amortization. As of September 30, 2020, the value of our right-of-use (“ROU”) assets relating to our existing ground lease arrangements and the related liability, included in “other assets” on our consolidated balance sheets and the corresponding liability under “accrued and other liabilities,” was $ 1.5 million, net of $ 0.2 million of accumulated amortization. As of December 31, 2019, the value of our ROU assets and related liability relating to our ground lease arrangements was $ 1.6 million, net of $ 0.1 million of accumulated amortization. These ground leases expire in 2029 and 2030 and do not have options to extend. As of September 30, 2020, the remaining lease terms were 9 .0 years and 9. 3 years. Lease expense for these ground leases is recognized in the period the applicable costs are incurred, and the monthly lease amount for these operating leases is constant and without contractual increases throughout the remaining terms.
Evaluation Of Asset ImpairmentEvaluation of asset impairment We evaluate our real estate and finite-lived intangible assets for impairment each quarter. If there are indicators of impairment and we determine that the carrying value of the asset is not recoverable from estimated future undiscounted cash flows to be received through the asset’s remaining life (or, if earlier, the expected disposal date), we record an impairment charge to the extent the carrying amount exceeds the asset’s estimated fair value or net proceeds from expected disposal. No impairment charges were recorded in any period presented herein.
Stock CompensationStock compensation Share-based payments to employees, including grants of employee stock options, are recognized as stock compensation expense in the Company’s consolidated statements of income based on their grant date fair values, except for performance-based grants, which are accounted for based on their fair values at the beginning of the service period. See Note 11.
Accrued And Other LiabilitiesAccrued and other liabilities Accrued and other liabilities consist primarily of rents prepaid by our customers, trade payables, property tax accruals, accrued payroll and contingent loss accruals when probable and estimable, as well as the intangible liabilities discussed above. We disclose the nature of significant unaccrued losses that are reasonably possible of occurring and, if estimable, a range of exposure. The fair value of accrued and other liabilities approximate book value due to the short period until settlement.
Other AssetsOther assets Other assets are comprised primarily of prepaid expenses, as well as the intangible assets discussed above.
Revenue RecognitionRevenue recognition We recognize the aggregate rent to be collected (including the impact of escalators and concessions) under leases ratably throughout the non-cancellable lease term on a “straight-line” basis, commencing when the customer takes control of the leased space. Cumulative straight-line rent recognized in excess of amounts billed per the lease term is presented as “deferred rent receivable” on our consolidated balance sheets. The Company presents r eimbursements from customers for real estate taxes and other recoverable operating expenses under a single lease component presentation as the timing and pattern of transfer of such reimbursements are the same as base rent, and the combined single component of such leases are classified as operating leases. Accordingly, the Company recognizes such variable lease payments resulting from the reimbursements from customers for real estate taxes and other recoverable operating expenses as rental income in the period the applicable costs are incurred. Property management fees are recognized in the period earned as other income. The Company monitors the collectability of its receivable balances, including deferred rent receivable balances, on an ongoing basis. The Company writes off uncollectible customer receivable balances, including deferred rent receivable balances, as a reduction to rental income in the period such balances are no longer probable of being collected. Therefore, recognition of rental income is limited to the amount of cash collected for those customer receivable balances deemed uncollectible. The Company wrote-off accounts receivable and deferred rent receivable of $ 0.3 million and $ 0.3 million, respectively, for the three months ended September 30, 2020, and $ 1.5 million and $ 2.7 million, respectively, for the nine months ended September 30, 2020. The Company recognized revenue from our lease arrangements aggregating to $ 103.8 million and $ 108.1 million for the three months ended September 30, 2020 and 2019, respectively, and $ 310.5 million and $ 323.7 million for the nine months ended September 30, 2020 and 2019, respectively. This revenue consisted primarily of rental income from operating leases and the related variable lease payments resulting from reimbursements of property operating expenses. Base rental income was $ 79.4 million and $ 84.1 million for the three months ended September 30, 2020 and 2019, respectively, and $ 238.3 million and $ 250.7 million for the nine months ended September 30, 2020 and 2019, respectively. Variable lease payments were $ 24.4 million and $ 24.0 million for the three months ended September 30, 2020 and 2019, respectively, and $ 72.2 million and $ 73.0 million for the nine months ended September 30, 2020 and 2019, respectively. In April 2020, the Financial Accounting Standard Board issued a Staff Question-and-Answer ("Lease Modification Q&A") to respond to frequently asked questions about accounting for lease concessions related to the novel coronavirus (“COVID-19”) pandemic. Under existing lease guidance, an entity would have to determine, on a lease by lease basis, if a lease concession contained a lease which would be accounted for under the lease modification framework, or if a lease concession was an enforceable right or obligation that existed in the original lease, which would be accounted for outside the lease modification framework. The Lease Modification Q&A provides that, to the extent that cash flow after the lease concessions are substantially the same, or less than, the cash flow previously required by the existing lease, an entity is not required to evaluate each contract to determine whether a concession provided by a lessor to a lessee in response to the COVID-19 pandemic is a lease modification. Instead, an entity can account for such lease concessions either (i) as if they were part of the enforceable rights and obligations of the parties under the existing lease contract; or (ii) as a lease modification. Based on the Lease Modification Q&A, an entity is not required to account for all lease concessions in response to the COVID-19 pandemic under one elected option; however, the entity is required to apply the elected option consistently to leases with similar characteristics and in similar circumstances. In accordance with the Lease Modification Q&A, the Company has elected to account for lease concessions in response to the COVID-19 pandemic as a lease modification as the cash flow after these lease concessions is substantially the same, or less than, the cash flow previously required by the existing lease. The Company records rent deferrals and abatements in deferred rent receivable in the accompanying consolidated balance sheets and will recognize these amounts over the remainder of the respective lease terms. For lease concessions in response to the COVID-19 pandemic that modified the terms and substantially changed the underlying cash flow of the existing lease for the remaining term, the Company accounts for such concession as a lease modification. As a result of the COVID-19 pandemic, through the nine months ended September 30, 2020 the Company entered into rent relief agreements with 388 customers (representing 11.0 % of total customers based on rental income). The Company agreed to defer $ 1.7 million and abate $ 0.3 million of billed rental income during the three months ended September 30, 2020, and defer $ 5.5 million and abate $ 1.2 million of billed rental income during the nine months ended September 30, 2020. As of October 26, 2020, of the $ 5.5 million of COVID-19 related rent deferrals , the Company collected $ 1.3 million, or 98.3 % , of scheduled repayments billed through September 30, 2020. The duration and severity of the effects of the COVID-19 pandemic on the economy are uncertain and are likely to directly impact collectability of certain customers rent receivable balances in the future. The Company has taken into account the current financial condition of its tenants, including consideration of COVID - 19 impacts, in its estimation of its uncollectible accounts and deferred rents receivable at September 30, 2020. The Company is closely monitoring the collectability of such rents and will adjust future estimations as further information is known.
Sales Of Real Estate Facilities Sales of real estate facilities Sales of real estate facilities are not part of our ordinary activities, and as a result, we consider such sales as contracts with non-customers. We recognize sales of real estate when we have collected payment and the attributes of ownership, such as possession and control of the asset, have been transferred to the buyer. If a contract for sale includes obligations to provide goods or services to the buyer, an allocated portion of the contract price is recognized as revenue as the related goods or services are transferred to the buyer.
General And Administrative ExpenseGeneral and administrative expense General and administrative expense includes executive and other compensation, corporate office expenses, professional fees, and other such costs that are not directly related to the operation of our real estate facilities.
Income TaxesIncome taxes We have elected to be treated as a REIT, as defined in the Internal Revenue Code of 1986, as amended (the “Code”). As a REIT, we do not incur federal income tax if we distribute substantially all of our “REIT taxable income” each year, and if we meet certain organizational and operational requirements. We believe we have met these REIT requirements for all periods presented herein. Accordingly, we have recorded no federal income tax expense related to our “REIT taxable income.” We recognize tax benefits of uncertain income tax positions that are subject to audit only if we believe it is more likely than not that the position would ultimately be sustained assuming the relevant taxing authorities had full knowledge of the relevant facts and circumstances of our positions. As of September 30, 2020 and December 31, 2019, we did no t recognize any tax benefit for uncertain tax positions.
Accounting For Preferred Equity Issuance CostsAccounting for preferred equity issuance costs We record preferred equity issuance costs as a reduction to paid-in capital on our consolidated balance sheets at the time the preferred securities are issued and reflect the carrying value of the preferred equity at its redemption value. An additional allocation of income is made from the common shareholders to the preferred shareholders in the amount of the original issuance costs, and we reclassify the redemption value from equity to liabilities, when we call preferred shares for redemption, with such liabilities relieved once the preferred shares are redeemed.
Net Income Per Common ShareNet income per common share Notwithstanding the presentation of income allocations on our consolidated statements of income, net income is allocated to (a) preferred shareholders, for distributions paid or payable, (b) preferred shareholders, to the extent redemption value exceeds the related carrying value, (c) our joint venture partner in proportion to their percentage interest in the joint ventures, to the extent the consolidated joint ventures produce net income or loss during the period and (d) restricted stock unit (“RSU”) holders, for non-forfeitable dividends paid adjusted for participation rights in undistributed earnings. The remaining net income is allocated to the common partnership units and our common shareholders, respectively, based upon the pro-rata aggregate number of units and shares outstanding. Basic and diluted net income per common share are each calculated based upon net income allocable to common shareholders, divided by (i) in the case of basic net income per common share, weighted average common shares and (ii) in the case of diluted income per share, weighted average common shares adjusted for the impact of stock compensation awards outstanding (see Note 11) using the treasury stock method. The following table sets forth the components of our basic and diluted net income per share that are not reflected on the face of our consolidated statements of income, including the allocation of income to common shareholders and common partnership units, the percentage of weighted average shares and common partnership units, as well as basic and diluted weighted average shares ( in thousands ): For the Three Months For the Nine Months Ended September 30, Ended September 30, 2020 2019 2020 2019 Calculation of net income allocable to common shareholders Net income $ 50,899 $ 46,510 $ 160,410 $ 142,458 Net (income) loss allocated to Preferred shareholders based upon distributions ( 12,046 ) ( 12,959 ) ( 36,139 ) ( 38,877 ) Noncontrolling interests—joint venture 4 ( 14 ) ( 26 ) ( 27 ) Restricted stock unit holders ( 149 ) ( 219 ) ( 543 ) ( 699 ) Net income allocable to common shareholders and noncontrolling interests—common units 38,708 33,318 123,702 102,855 Net income allocation to noncontrolling interests— common units ( 8,128 ) ( 7,006 ) ( 25,985 ) ( 21,643 ) Net income allocable to common shareholders $ 30,580 $ 26,312 $ 97,717 $ 81,212 Calculation of common partnership units as a percentage of common share equivalents Weighted average common shares outstanding 27,483 27,432 27,470 27,411 Weighted average common partnership units outstanding 7,305 7,305 7,305 7,305 Total common share equivalents 34,788 34,737 34,775 34,716 Common partnership units as a percentage of common share equivalents 21.0 % 21.0 % 21.0 % 21.0 % Weighted average common shares outstanding Basic weighted average common shares outstanding 27,483 27,432 27,470 27,411 Net effect of dilutive stock compensation—based on treasury stock method using average market price 82 111 90 101 Diluted weighted average common shares outstanding 27,565 27,543 27,560 27,512
Segment ReportingSegment reporting The Company has two operating segments: (i) the acquisition, development, ownership and management of commercial real estate and (ii) the acquisition, development, ownership and management of multifamily real estate, but has only one reportable segment as the multifamily segment does not meet the quantitative thresholds necessary to require reporting as a separate segment.
ReclassificationsReclassifications Certain reclassifications have been made to the consolidated financial statements for 2019 in order to conform to the 2020 presentation, including reclassifying assets held for sale during 2020 from “real estate facilities, at cost” totaling $ 3.8 million as of December 31, 2019 into “properties held for sale, net” on our consolidated balance sheets.

Summary Of Significant Accoun_3

Summary Of Significant Accounting Policies (Tables)9 Months Ended
Sep. 30, 2020
Summary Of Significant Accounting Policies [Abstract]
Reconciliation of Cash, Cash Equivalents and Restricted Cash December 31, 2019 2018 Consolidated balance sheets Cash and cash equivalents $ 62,786 $ 37,379 Restricted cash included in Land and building held for development, net 1,088 1,088 Cash and cash equivalents and restricted cash at the end of the period $ 63,874 $ 38,467 September 30, 2020 2019 Consolidated balance sheets Cash and cash equivalents $ 117,881 $ 6,749 Restricted cash included in Land and building held for development, net 1,088 1,088 Cash and cash equivalents and restricted cash at the end of the period $ 118,969 $ 7,837
Calculation Of Earnings Per Share For the Three Months For the Nine Months Ended September 30, Ended September 30, 2020 2019 2020 2019 Calculation of net income allocable to common shareholders Net income $ 50,899 $ 46,510 $ 160,410 $ 142,458 Net (income) loss allocated to Preferred shareholders based upon distributions ( 12,046 ) ( 12,959 ) ( 36,139 ) ( 38,877 ) Noncontrolling interests—joint venture 4 ( 14 ) ( 26 ) ( 27 ) Restricted stock unit holders ( 149 ) ( 219 ) ( 543 ) ( 699 ) Net income allocable to common shareholders and noncontrolling interests—common units 38,708 33,318 123,702 102,855 Net income allocation to noncontrolling interests— common units ( 8,128 ) ( 7,006 ) ( 25,985 ) ( 21,643 ) Net income allocable to common shareholders $ 30,580 $ 26,312 $ 97,717 $ 81,212 Calculation of common partnership units as a percentage of common share equivalents Weighted average common shares outstanding 27,483 27,432 27,470 27,411 Weighted average common partnership units outstanding 7,305 7,305 7,305 7,305 Total common share equivalents 34,788 34,737 34,775 34,716 Common partnership units as a percentage of common share equivalents 21.0 % 21.0 % 21.0 % 21.0 % Weighted average common shares outstanding Basic weighted average common shares outstanding 27,483 27,432 27,470 27,411 Net effect of dilutive stock compensation—based on treasury stock method using average market price 82 111 90 101 Diluted weighted average common shares outstanding 27,565 27,543 27,560 27,512

Real Estate Facilities (Tables)

Real Estate Facilities (Tables)9 Months Ended
Sep. 30, 2020
Real Estate Facilities [Abstract]
Activity In Real Estate Facilities Buildings and Accumulated Land Improvements Depreciation Total Balances at December 31, 2019 (1) $ 844,419 $ 2,203,308 $ ( 1,158,489 ) $ 1,889,238 Acquisition of real estate facility 11,123 2,153 — 13,276 Capital expenditures — 23,358 — 23,358 Disposals (2) — ( 15,005 ) 15,005 — Depreciation and amortization expense — — ( 67,035 ) ( 67,035 ) Transfer to properties held for sale — ( 16 ) 46 30 Balances at September 30, 2020 $ 855,542 $ 2,213,798 $ ( 1,210,473 ) $ 1,858,867 ____________________________ (1) Land, building and improvements, and accumulated depreciation, respectively, totaling $ 2.2 million, $ 2.8 million, and $ 1.2 million were reclassified as of December 31, 2019 to “properties held for sale, net,” representing two industrial buildings totaling 40,000 square feet located in Redmond, Washington, which were subject to an eminent domain process. (2) Disposals primarily represent the book value of tenant improvements that have been removed upon the customer vacating their space.
Summary Of Real Estate Assets Acquired And Liabilities Assumed 2020 2019 Land $ 11,123 $ 75,160 Buildings and improvements 2,153 40,765 Accrued and other liabilities (below-market in-place rents) — ( 1,142 ) Other assets (in-place lease value) 237 3,371 Total purchase price 13,513 118,154 Net operating assets acquired and liabilities assumed ( 90 ) ( 463 ) Total cash paid $ 13,423 $ 117,691

Leasing Activity (Tables)

Leasing Activity (Tables)9 Months Ended
Sep. 30, 2020
Leasing Activity [Abstract]
Summary Of Future Minimum Rental Revenues Excluding Recovery Of Operating Expenses Remainder of 2020 $ 77,067 2021 275,894 2022 203,546 2023 143,242 2024 97,952 Thereafter 167,260 Total $ 964,961

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)9 Months Ended
Sep. 30, 2020
Shareholders' Equity [Abstract]
Schedule Of Preferred Stock Outstanding Earliest Potential Dividend Shares Amount Series Issuance Date Redemption Date Rate Outstanding (in thousands) Series W October 2016 October 2021 5.200 % 7,590 $ 189,750 Series X September 2017 September 2022 5.250 % 9,200 230,000 Series Y December 2017 December 2022 5.200 % 8,000 200,000 Series Z November 2019 November 2024 4.875 % 13,000 325,000 Total 37,790 $ 944,750

Organization And Description _2

Organization And Description Of Business (Narrative) (Details) shares in Millions, ft² in Millions9 Months Ended
Sep. 30, 2020ft²itempropertystateshares
Organization And Description Of Business [Line Items]
The Company's ownership percentage of the limited partnership79.00%
Rentable area (in square feet) | ft²27.5
Number of states with rentable commercial space | state6
Number of parks | item97
Number of buildings | item672
Managed Properties [Member]
Organization And Description Of Business [Line Items]
Rentable area (in square feet) | ft²0.4
Highgate at the Mile [Member]
Organization And Description Of Business [Line Items]
Number of Units in Multi-Family Asset | property395
Brentford at The Mile [Member]
Organization And Description Of Business [Line Items]
Number of Units in Multi-Family Asset | property411
PS [Member]
Organization And Description Of Business [Line Items]
Shares owned by Public Storage | shares7.2
Affiliate's percent ownership of the Company's common equity41.60%
Aggregate shares owned if partnership units are redeemed | shares14.5
Investment in Joint Venture [Member] | Highgate at the Mile [Member]
Organization And Description Of Business [Line Items]
Economic interest in joint venture, percentage95.00%
Investment in Joint Venture [Member] | Brentford at The Mile [Member]
Organization And Description Of Business [Line Items]
Economic interest in joint venture, percentage98.20%

Summary Of Significant Accoun_4

Summary Of Significant Accounting Policies (Narrative) (Details)Oct. 26, 2020USD ($)Sep. 30, 2020USD ($)Sep. 30, 2019USD ($)Sep. 30, 2020USD ($)segmentcustomerpropertysharesSep. 30, 2019USD ($)Dec. 31, 2019USD ($)
Summary Of Significant Accounting Policies [Line Items]
Common units in operating partnership | shares7,305,355
Cash and cash equivalents maximum benchmark (in months)3 months
Minimum expected future benefit period on expenditures cost to be capitalized and depreciated (in years)2 years
Minimum expected future benefit period on transaction cost to be capitalized and depreciated (in years)1 year
Length of time criteria for expected sale of assets to be classified as properties held for disposition12 months
Below market lease, net $ 1,800,000 $ 1,800,000 $ 2,400,000
Below market leases, accumulated amortization12,000,000 12,000,000 11,400,000
Impairment on assets0 $ 0
Operating lease, right-of-use asset $ 1,500,000 $ 1,500,000 $ 1,600,000
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]Other AssetsOther AssetsOther Assets
Operating lease, liability $ 1,500,000 $ 1,500,000 $ 1,600,000
Operating Lease, Liability, Statement of Financial Position [Extensible List]Accounts Payable and Accrued LiabilitiesAccounts Payable and Accrued LiabilitiesAccounts Payable and Accrued Liabilities
Accumulated amortization $ 200,000 $ 200,000 $ 100,000
Accounts receivable, write-off300,000 1,500,000
Deferred rent receivable, write-off300,000 2,700,000
Rental income103,760,000 $ 108,064,000 310,535,000 323,671,000
Rental income, operating leases79,400,000 84,100,000 238,300,000 250,700,000
Rental income, variable lease payments24,400,000 $ 24,000,000 72,200,000 $ 73,000,000
Income tax expense0
Tax benefit for uncertain tax positions $ 0 0
Number of operating segments | segment2
Number of reportable segments | segment1
Net real estate investment property1,858,867,000 $ 1,858,867,000 1,889,238,000
Properties held for sale, net15,264,000
COVID-19 [Member]
Summary Of Significant Accounting Policies [Line Items]
Deferral agreement, number of customers | customer388
Deferral agreement, percentage of customers on a percentage of total rental income basis11.00%
Deferred rent receivable1,700,000 $ 5,500,000
Rent receivable abated300,000 1,200,000
Reclassification [Member]
Summary Of Significant Accounting Policies [Line Items]
Net real estate investment property(3,800,000)
Properties held for sale, net3,800,000
Above Market Leases [Member]
Summary Of Significant Accounting Policies [Line Items]
Finite-lived intangible assets, net800,000 800,000 1,200,000
Finite-lived intangible assets, accumulated amortization(10,900,000)(10,900,000)(10,600,000)
Acquired In Place Leases [Member]
Summary Of Significant Accounting Policies [Line Items]
Finite-lived intangible assets, net3,500,000 3,500,000 5,700,000
Finite-lived intangible assets, accumulated amortization $ 6,500,000 $ 6,500,000 $ 4,100,000
Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Estimated useful life (in years)5 years
Operating lease, expiration date2029
Operating lease, remaining lease term9 years
Maximum [Member]
Summary Of Significant Accounting Policies [Line Items]
Estimated useful life (in years)30 years
Operating lease, expiration date2030
Operating lease, remaining lease term9 years 3 months 18 days
Highgate at the Mile [Member]
Summary Of Significant Accounting Policies [Line Items]
Number of Units in Multi-Family Asset | property395
Highgate at the Mile [Member] | JV Partner [Member]
Summary Of Significant Accounting Policies [Line Items]
Consolidated entity ownership percentage5.00%5.00%
Brentford at The Mile [Member]
Summary Of Significant Accounting Policies [Line Items]
Number of Units in Multi-Family Asset | property411
Brentford at The Mile [Member] | JV Partner [Member]
Summary Of Significant Accounting Policies [Line Items]
Consolidated entity ownership percentage1.80%1.80%
Subsequent Event [Member] | COVID-19 [Member]
Summary Of Significant Accounting Policies [Line Items]
Deferred payments received $ 1,300,000
Collection rate percentage on deferral repayments98.30%

Summary Of Significant Accoun_5

Summary Of Significant Accounting Policies (Reconciliation of Cash, Cash Equivalents and Restricted Cash) (Details) - USD ($) $ in ThousandsSep. 30, 2020Dec. 31, 2019Sep. 30, 2019Dec. 31, 2018
Summary Of Significant Accounting Policies [Abstract]
Cash and cash equivalents $ 117,881 $ 62,786 $ 6,749 $ 37,379
Restricted cash included in Land and building held for development, net1,088 1,088 1,088 1,088
Cash, cash equivalents and restricted cash at the end of the period $ 118,969 $ 63,874 $ 7,837 $ 38,467

Summary Of Significant Accoun_6

Summary Of Significant Accounting Policies (Calculation Of Earnings Per Share) (Details) - USD ($) shares in Thousands, $ in Thousands3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Summary Of Significant Accounting Policies [Abstract]
Net income $ 50,899 $ 46,510 $ 160,410 $ 142,458
Net (income) loss allocated to Preferred shareholders based upon distributions(12,046)(12,959)(36,139)(38,877)
Net (income) loss allocated to Noncontrolling interests - joint venture4 (14)(26)(27)
Net (income) loss allocated to Restricted stock unit holders(149)(219)(543)(699)
Net income allocable to common shareholders and noncontrolling interests - common units38,708 33,318 123,702 102,855
Net income allocation to noncontrolling interests - common units(8,128)(7,006)(25,985)(21,643)
Net income allocable to common shareholders $ 30,580 $ 26,312 $ 97,717 $ 81,212
Weighted average common shares outstanding27,483 27,432 27,470 27,411
Weighted average common partnership units outstanding7,305 7,305 7,305 7,305
Total common share equivalents34,788 34,737 34,775 34,716
Common partnership units as a percentage of common share equivalents21.00%21.00%21.00%21.00%
Net effect of dilutive stock compensation - based on treasury stock method using average market price82 111 90 101
Diluted weighted average common shares outstanding27,565 27,543 27,560 27,512

Real Estate Facilities (Narrati

Real Estate Facilities (Narrative) (Details) $ in ThousandsSep. 16, 2020USD ($)itemJan. 07, 2020USD ($)ft²Sep. 30, 2020USD ($)ft²aSep. 30, 2020USD ($)ft²aitempropertyDec. 31, 2019ft²itemJan. 10, 2020USD ($)ft²Sep. 30, 2019USD ($)Sep. 05, 2019USD ($)ft²Apr. 18, 2019USD ($)ft²
Real Estate Facilities [Line Items]
Area of land (in acres) | a44.5 44.5
Rentable area (in square feet) | ft²27,500,000 27,500,000
Committed transaction costs for executed leases $ 11,200
Purchase price $ 13,513 $ 13,513 $ 118,154
Number of buildings | item672
Proceeds from sale of real estate facilities $ 40,674
Gain on sale of real estate facilities $ 7,652 $ 27,273
La Mirada Acquisition [Member]
Real Estate Facilities [Line Items]
Rentable area (in square feet) | ft²73,000
Purchase price $ 13,500
Santa Fe Springs Acquisition [Member]
Real Estate Facilities [Line Items]
Rentable area (in square feet) | ft²543,000
Purchase price $ 104,300
Signal Hill Acquisition [Member]
Real Estate Facilities [Line Items]
Rentable area (in square feet) | ft²74,000
Purchase price $ 13,800
Metro Park North [Member]
Real Estate Facilities [Line Items]
Rentable area (in square feet) | ft²113,000
Proceeds from sale of real estate facilities $ 29,300
Gain on sale of real estate facilities $ 19,600
Industrial Property [Member]
Real Estate Facilities [Line Items]
Area of real estate property (in square feet) | ft²83,000 83,000
Development costs incurred $ 6,100 $ 6,100
Estimated development costs $ 8,100 $ 8,100
Properties Held for Sale [Member]
Real Estate Facilities [Line Items]
Rentable area (in square feet) | ft²40,000
Number of buildings | item2
Highgate at the Mile [Member]
Real Estate Facilities [Line Items]
Number of units to be developed | property395
Area of land (in acres) | a5 5
Highgate at the Mile [Member] | Investment in Joint Venture [Member]
Real Estate Facilities [Line Items]
Economic interest in joint venture, percentage95.00%95.00%
Highgate at the Mile [Member] | JV Partner [Member]
Real Estate Facilities [Line Items]
Economic interest in joint venture, percentage5.00%5.00%
Redmond, WA [Member] | Industrial Property [Member]
Real Estate Facilities [Line Items]
Rentable area (in square feet) | ft²40,000 40,000
Number of buildings | item2
Proceeds from sale of real estate facilities $ 11,400
Gain on sale of real estate facilities $ 7,700

Real Estate Facilities (Activit

Real Estate Facilities (Activity In Real Estate Facilities) (Details) $ in Thousands9 Months Ended12 Months Ended
Sep. 30, 2020USD ($)ft²itemDec. 31, 2019USD ($)ft²item
Property, Plant and Equipment [Line Items]
Beginning Balances $ 1,889,238
Accumulated Depreciation, Beginning Balances(1,158,489)
Acquisition of real estate facility13,276
Capital expenditures23,358
Depreciation and amortization expense(67,035)
Transfer to properties held for sale30
Accumulated Depreciation, Ending Balances(1,210,473) $ (1,158,489)
Ending Balances $ 1,858,867 1,889,238
Properties held for sale, net $ 15,264
Number of buildings | item672
Rentable area (in square feet) | ft²27,500,000
Properties Held for Sale [Member]
Property, Plant and Equipment [Line Items]
Number of buildings | item2
Rentable area (in square feet) | ft²40,000
Land [Member]
Property, Plant and Equipment [Line Items]
Beginning Balances $ 844,419
Acquisition of real estate facility11,123
Ending Balances855,542 $ 844,419
Buildings And Improvements [Member]
Property, Plant and Equipment [Line Items]
Beginning Balances2,203,308
Acquisition of real estate facility2,153
Capital expenditures23,358
Disposals(15,005)
Transfer to properties held for sale(16)
Ending Balances2,213,798 2,203,308
Accumulated Depreciation [Member]
Property, Plant and Equipment [Line Items]
Accumulated Depreciation, Beginning Balances(1,158,489)
Accumulated Depreciation, Disposals15,005
Depreciation and amortization expense(67,035)
Transfer to properties held for sale46
Accumulated Depreciation, Ending Balances(1,210,473)(1,158,489)
Reclassification [Member]
Property, Plant and Equipment [Line Items]
Beginning Balances(3,800)
Ending Balances(3,800)
Properties held for sale, net3,800
Reclassification [Member] | Land [Member]
Property, Plant and Equipment [Line Items]
Beginning Balances(2,200)
Ending Balances(2,200)
Properties held for sale, net2,200
Reclassification [Member] | Buildings And Improvements [Member]
Property, Plant and Equipment [Line Items]
Beginning Balances(2,800)
Ending Balances(2,800)
Properties held for sale, net2,800
Reclassification [Member] | Accumulated Depreciation [Member]
Property, Plant and Equipment [Line Items]
Beginning Balances $ (1,200)
Ending Balances(1,200)
Properties held for sale, net $ 1,200

Real Estate Facilities (Summary

Real Estate Facilities (Summary Of Real Estate Assets Acquired And Liabilities Assumed) (Details) - USD ($) $ in Thousands9 Months Ended
Sep. 30, 2020Sep. 30, 2019
Real Estate Facilities [Abstract]
Land $ 11,123 $ 75,160
Buildings and improvements2,153 40,765
Accrued and other liabilities (below-market in-place rents)(1,142)
Other assets (in-place lease value)237 3,371
Total purchase price13,513 118,154
Net operating assets acquired and liabilities assumed(90)(463)
Total cash paid $ 13,423 $ 117,691

Multifamily Developmental Act_2

Multifamily Developmental Activity (Narrative) (Details) $ in Thousands1 Months Ended9 Months Ended
Aug. 31, 2020USD ($)Sep. 30, 2020USD ($)propertyDec. 31, 2019USD ($)
Real Estate Facilities [Line Items]
Land cost basis $ 3,069,340 $ 3,047,727
Brentford at The Mile [Member]
Real Estate Facilities [Line Items]
Number of Units in Multi-Family Asset | property411
Value of property contributed $ 18,500
Land cost basis $ 5,400 $ 5,400
Development cost incurred, inclusive of land cost5,500
Demolition costs $ 300
Brentford at The Mile [Member] | Investment in Joint Venture [Member]
Real Estate Facilities [Line Items]
Economic interest in joint venture, percentage98.20%
Brentford at The Mile [Member] | JV Partner [Member]
Real Estate Facilities [Line Items]
Economic interest in joint venture, percentage1.80%
Minimum [Member] | Brentford at The Mile [Member]
Real Estate Facilities [Line Items]
Period to complete construction24 months
Estimated development costs $ 110,000
Maximum [Member] | Brentford at The Mile [Member]
Real Estate Facilities [Line Items]
Period to complete construction36 months
Development costs incurred $ 115,000

Leasing Activity (Narrative) (D

Leasing Activity (Narrative) (Details) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Operating Leased Assets [Line Items]
Rental income, variable lease payments $ 24.4 $ 24 $ 72.2 $ 73
Percentage of leased asset subjected to termination options3.00%3.00%
Percentage of leased asset exercisable in period1.70%1.70%
Termination option, exercisable through dateDec. 31,
2020
Minimum [Member]
Operating Leased Assets [Line Items]
Non-cancelable lease term1 year1 year
Maximum [Member]
Operating Leased Assets [Line Items]
Non-cancelable lease term10 years10 years

Leasing Activity (Summary Of Fu

Leasing Activity (Summary Of Future Minimum Rental Revenues Excluding Recovery Of Operating Expenses) (Details) $ in ThousandsSep. 30, 2020USD ($)
Leasing Activity [Abstract]
Remainder of 2020 $ 77,067
2021275,894
2022203,546
2023143,242
202497,952
Thereafter167,260
Total $ 964,961

Bank Loans (Narrative) (Details

Bank Loans (Narrative) (Details) - USD ($)9 Months Ended
Sep. 30, 2020Dec. 31, 2019
Line of Credit Facility [Line Items]
Credit facility, outstanding $ 0 $ 0
Wells Fargo Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of credit, borrowing limit $ 250,000,000
Line of credit, expiration dateJan. 10,
2022
Spread over LIBOR0.825%
Line of credit, facility fee percent0.125%
Unamortized loan origination costs $ 300,000 $ 500,000
Line of credit, frequency of interest paymentmonthly
Wells Fargo Credit Facility [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Spread over LIBOR1.55%
Line of credit, facility fee percent0.30%
Wells Fargo Credit Facility [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Spread over LIBOR0.80%
Line of credit, facility fee percent0.10%

Noncontrolling Interests (Narra

Noncontrolling Interests (Narrative) (Details) - USD ($) $ in Thousands3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019Dec. 31, 2019
Noncontrolling Interests [Line Items]
Common units in operating partnership7,305,355
Noncontrolling interests $ 219,463 $ 219,463 $ 216,135
Capital contribution to joint venture $ 438 $ 438
Number of shares of common stock for each unit of limited partnership interest redeemed1 1
Net income allocation to noncontrolling interests - common units $ 8,128 $ 7,006 $ 25,985 $ 21,643
Net (income) loss allocated to Noncontrolling interest - joint venture(4)14 26 27
Distribution paid109 78
PS [Member]
Noncontrolling Interests [Line Items]
Noncontrolling interests216,200 216,200 $ 213,200
JV Partner [Member]
Noncontrolling Interests [Line Items]
Noncontrolling interests $ 3,300 $ 2,900 $ 3,300 $ 2,900
Brentford at The Mile [Member] | JV Partner [Member]
Noncontrolling Interests [Line Items]
Consolidated entity ownership percentage1.80%1.80%

Related Party Transactions (Nar

Related Party Transactions (Narrative) (Details) $ in Thousands3 Months Ended9 Months Ended
Sep. 30, 2020USD ($)itemSep. 30, 2019USD ($)Sep. 30, 2020USD ($)itemSep. 30, 2019USD ($)Dec. 31, 2019USD ($)
Related Party Transaction [Line Items]
Interest and other income $ 230 $ 1,384 $ 1,012 $ 2,766
Royalty-free license agreement written notice of termination period minimum (in months)6 months
Number of assets owned that are maintained by Public Storage | item2 2
Property management contract written notice of termination period minimum (in days)60 days
Reimbursement to related party $ 400 400 $ 800 800
Due to related parties100 100 $ 100
Property Management [Member]
Related Party Transaction [Line Items]
Interest and other income100 100 200 200
Operating expenses allocated to operating party100 100 300 300
Maximum [Member]
Related Party Transaction [Line Items]
Management fee expenses100 100 100 100
Costs allocated from related party100 100 100 100
Reimbursement from related party $ 100 $ 100 $ 100 $ 100

Shareholders' Equity (Preferred

Shareholders' Equity (Preferred Stock) (Narrative) (Details)3 Months Ended9 Months Ended
Sep. 30, 2020USD ($)$ / sharesSep. 30, 2019USD ($)Sep. 30, 2020USD ($)item$ / sharesSep. 30, 2019USD ($)
Shareholders' Equity [Abstract]
Redeemable preferred stock, redemption price per share | $ / shares $ 25 $ 25
Distributions to preferred shareholders | $ $ 12,000,000 $ 13,000,000 $ 36,139,000 $ 38,877,000
Number of quarterly dividends in arrearage before preferred shareholders can elect additional board members | item6
Number of additional board members the preferred shareholders can elect in the case of an excess arrearage of quarterly dividends | item2
Dividends in arrears | $ $ 0

Shareholders' Equity (Common St

Shareholders' Equity (Common Stock And Units And Equity Stock) (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019Dec. 31, 2019
Shareholders' Equity [Abstract]
Distributions paid to common shareholders $ 28,900 $ 28,800 $ 86,533 $ 86,343
Dividends paid per common share $ 1.05 $ 1.05 $ 3.15 $ 3.15
Distributions paid to noncontrolling interests — common units $ 7,700 $ 7,700 $ 23,012 $ 23,012
Dividends paid per common unit $ 1.05 $ 1.05 $ 3.15 $ 3.15
Equity stock, shares authorized100,000,000 100,000,000
Equity stock, shares issued0 0 0

Shareholders' Equity (Schedule

Shareholders' Equity (Schedule Of Preferred Stock Outstanding) (Details) - USD ($) $ in Thousands9 Months Ended12 Months Ended
Sep. 30, 2020Dec. 31, 2019
Class of Stock [Line Items]
Shares Outstanding37,790 37,790
Shares Amount $ 944,750 $ 944,750
Series W Preferred Stock [Member]
Class of Stock [Line Items]
Issuance DateOct. 1,
2016
Earliest Potential Redemption DateOct. 1,
2021
Dividend Rate5.20%5.20%
Shares Outstanding7,590 7,590
Shares Amount $ 189,750 $ 189,750
Series X Preferred Stock [Member]
Class of Stock [Line Items]
Issuance DateSep. 1,
2017
Earliest Potential Redemption DateSep. 1,
2022
Dividend Rate5.25%5.25%
Shares Outstanding9,200 9,200
Shares Amount $ 230,000 $ 230,000
Series Y Preferred Stock [Member]
Class of Stock [Line Items]
Issuance DateDec. 1,
2017
Earliest Potential Redemption DateDec. 1,
2022
Dividend Rate5.20%5.20%
Shares Outstanding8,000 8,000
Shares Amount $ 200,000 $ 200,000
Series Z Preferred Stock [Member]
Class of Stock [Line Items]
Issuance DateNov. 1,
2019
Earliest Potential Redemption DateNov. 1,
2024
Dividend Rate4.875%4.875%
Shares Outstanding13,000 13,000
Shares Amount $ 325,000 $ 325,000

Stock Compensation (Narrative)

Stock Compensation (Narrative) (Details) $ in Thousands1 Months Ended3 Months Ended7 Months Ended9 Months Ended
Apr. 30, 2019USD ($)sharesSep. 30, 2020USD ($)sharesSep. 30, 2019USD ($)sharesJul. 31, 2019sharesSep. 30, 2020USD ($)itemsharesSep. 30, 2019USD ($)sharesDec. 31, 2019shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash paid for taxes in lieu of shares upon vesting of restricted stock units | $ $ 442 $ 620 $ 4,102 $ 6,120
Stock Options and Restricted Stock Units [Member] | President and CEO [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense | $ $ 1,700 $ 1,700
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period10 years
Options exercised4,136
Options forfeited0
Options outstanding171,694 171,694 157,830
Stock units granted18,000
Compensation expense | $ $ 100 100 $ 300 $ 200
Restricted Stock Units (RSUs) Granted Prior To 2016 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period6 years
Restricted Stock Units (RSUs) Granted Prior To 2016 [Member] | Year Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage20.00%
Restricted Stock Units (RSUs) Granted Prior To 2016 [Member] | Year Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage20.00%
Restricted Stock Units (RSUs) Granted Prior To 2016 [Member] | Year Four [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage20.00%
Restricted Stock Units (RSUs) Granted Prior To 2016 [Member] | Year Five [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage20.00%
Restricted Stock Units (RSUs) Granted Prior To 2016 [Member] | Year Six [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage20.00%
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period5 years
Stock units granted100
Issuance of common stock in connection with stock-based compensation, shares41,699 53,859
Stock units vested70,576
Stock units forfeited1,920
Common shares withheld upon vesting28,877 38,961
Awards outstanding78,452 78,452 150,848
Compensation expense | $ $ 2,200 800 $ 3,500 $ 2,500
Restricted Stock Units (RSUs) [Member] | Year One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage20.00%
Restricted Stock Units (RSUs) [Member] | Year Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage20.00%
Restricted Stock Units (RSUs) [Member] | Year Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage20.00%
Restricted Stock Units (RSUs) [Member] | Year Four [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage20.00%
Restricted Stock Units (RSUs) [Member] | Year Five [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage20.00%
2020 Incentive Program [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of annual vesting installments | item5
Retirement Plan for Non-Employee Directors [Member] | Restricted Stock Units (RSUs) [Member] | Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of common stock in connection with stock-based compensation, shares8,000 0
Compensation expense | $ $ 200 $ 1,200 $ 600 $ 1,300
Aggregate fair value of the shares issued | $ $ 1,200
Minimum [Member] | 2020 Incentive Program [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Possible target award adjustment based on strategic and operational accomplishments75.00%
Maximum [Member] | 2020 Incentive Program [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Possible target award adjustment based on strategic and operational accomplishments125.00%
Maximum [Member] | Retirement Plan for Non-Employee Directors [Member] | Restricted Stock Units (RSUs) [Member] | Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of common stock in connection with stock-based compensation, shares10,000 8,000

Subsequent Events (Narrative) (

Subsequent Events (Narrative) (Details) $ in ThousandsOct. 28, 2020USD ($)ft²Sep. 30, 2020USD ($)ft²Sep. 30, 2019USD ($)
Rentable area (in square feet) | ft²27,500,000
Purchase price | $ $ 13,513 $ 118,154
Multi-Tenant Industrial Park Acquisition [Member] | Subsequent Event [Member]
Rentable area (in square feet) | ft²246,000
Purchase price | $ $ 46,300