Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 19, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity Registrant Name | HIGHWOODS PROPERTIES, INC. | |
Entity Incorporation, State or Country Code | MD | |
Entity File Number | 001-13100 | |
Entity Tax Identification Number | 56-1871668 | |
Entity Address, Address Line One | 3100 Smoketree Court | |
Entity Address, Address Line Two | Suite 600 | |
Entity Address, City or Town | Raleigh | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 27604 | |
City Area Code | 919 | |
Local Phone Number | 872-4924 | |
Title of 12(b) Security | Common Stock, $.01 par value, of Highwoods Properties, Inc. | |
Trading Symbol | HIW | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 104,383,062 | |
Entity Central Index Key | 0000921082 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Highwoods Realty Limited Partnership [Member] | ||
Entity Information [Line Items] | ||
Entity Registrant Name | HIGHWOODS REALTY LIMITED PARTNERSHIP | |
Entity Incorporation, State or Country Code | NC | |
Entity File Number | 000-21731 | |
Entity Tax Identification Number | 56-1869557 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000941713 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Real estate assets, at cost: | ||
Land | $ 552,314 | $ 466,872 |
Buildings and tenant improvements | 5,725,733 | 4,981,637 |
Development in-process | 0 | 259,681 |
Land held for development | 185,152 | 131,474 |
Total real estate assets | 6,463,199 | 5,839,664 |
Less-accumulated depreciation | (1,444,510) | (1,418,379) |
Net real estate assets | 5,018,689 | 4,421,285 |
Real estate and other assets, net, held for sale | 69,806 | 11,360 |
Cash and cash equivalents | 27,871 | 109,322 |
Restricted cash | 13,027 | 79,922 |
Accounts receivable | 15,269 | 27,488 |
Mortgages and notes receivable | 1,247 | 1,341 |
Accrued straight-line rents receivable | 262,233 | 259,381 |
Investments in and advances to unconsolidated affiliates | 1,071 | 27,104 |
Deferred leasing costs, net of accumulated amortization of $139,175 and $151,698, respectively | 267,405 | 209,329 |
Prepaid expenses and other assets, net of accumulated depreciation of $20,891 and $21,154, respectively | 77,454 | 62,885 |
Total Assets | 5,754,072 | 5,209,417 |
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Liabilities, Redeemable Operating Partnership Units and Capital: | ||
Mortgages and notes payable, net | 2,942,902 | 2,470,021 |
Accounts payable, accrued expenses and other liabilities | 284,952 | 268,727 |
Total Liabilities | 3,227,854 | 2,738,748 |
Commitments and contingencies | ||
Noncontrolling interests in the Operating Partnership | 124,233 | 112,499 |
Equity/Capital: | ||
Preferred Stock, $.01 par value, 50,000,000 authorized shares; 8.625% Series A Cumulative Redeemable Preferred Shares (liquidation preference $1,000 per share), 28,821 and 28,826 shares issued and outstanding, respectively | 28,821 | 28,826 |
Common Stock, $.01 par value, 200,000,000 authorized shares; 104,383,062 and 103,921,546 shares issued and outstanding, respectively | 1,044 | 1,039 |
Additional paid-in capital | 3,003,303 | 2,993,946 |
Distributions in excess of net income available for common stockholders | (652,254) | (686,225) |
Accumulated other comprehensive loss | (1,102) | (1,462) |
Total Stockholders’ Equity | 2,379,812 | 2,336,124 |
Noncontrolling interests in consolidated affiliates | 22,173 | 22,046 |
Total Equity/Capital | 2,401,985 | 2,358,170 |
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Capital | 5,754,072 | 5,209,417 |
Highwoods Realty Limited Partnership [Member] | ||
Real estate assets, at cost: | ||
Land | 552,314 | 466,872 |
Buildings and tenant improvements | 5,725,733 | 4,981,637 |
Development in-process | 0 | 259,681 |
Land held for development | 185,152 | 131,474 |
Total real estate assets | 6,463,199 | 5,839,664 |
Less-accumulated depreciation | (1,444,510) | (1,418,379) |
Net real estate assets | 5,018,689 | 4,421,285 |
Real estate and other assets, net, held for sale | 69,806 | 11,360 |
Cash and cash equivalents | 27,871 | 109,322 |
Restricted cash | 13,027 | 79,922 |
Accounts receivable | 15,269 | 27,488 |
Mortgages and notes receivable | 1,247 | 1,341 |
Accrued straight-line rents receivable | 262,233 | 259,381 |
Investments in and advances to unconsolidated affiliates | 1,071 | 27,104 |
Deferred leasing costs, net of accumulated amortization of $139,175 and $151,698, respectively | 267,405 | 209,329 |
Prepaid expenses and other assets, net of accumulated depreciation of $20,891 and $21,154, respectively | 77,454 | 62,885 |
Total Assets | 5,754,072 | 5,209,417 |
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Liabilities, Redeemable Operating Partnership Units and Capital: | ||
Mortgages and notes payable, net | 2,942,902 | 2,470,021 |
Accounts payable, accrued expenses and other liabilities | 284,952 | 268,727 |
Total Liabilities | 3,227,854 | 2,738,748 |
Commitments and contingencies | ||
Redeemable Operating Partnership Units: | ||
Common Units, 2,832,487 and 2,838,725 outstanding, respectively | 124,233 | 112,499 |
Series A Preferred Units (liquidation preference $1,000 per unit), 28,821 and 28,826 units issued and outstanding, respectively | 28,821 | 28,826 |
Total Redeemable Operating Partnership Units | 153,054 | 141,325 |
Equity/Capital: | ||
General partner Common Units, 1,068,067 and 1,063,515 outstanding, respectively | 23,521 | 23,087 |
Limited partner Common Units, 102,906,186 and 102,449,222 outstanding, respectively | 2,328,572 | 2,285,673 |
Accumulated other comprehensive loss | (1,102) | (1,462) |
Noncontrolling interests in consolidated affiliates | 22,173 | 22,046 |
Total Equity/Capital | 2,373,164 | 2,329,344 |
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Capital | $ 5,754,072 | $ 5,209,417 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Assets: | ||
Deferred leasing costs, accumulated amortization | $ 139,175 | $ 151,698 |
Prepaid Expenses And Other Assets Accumulated Depreciation | $ 20,891 | $ 21,154 |
Equity/Capital: | ||
Series A Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Series A Preferred Stock, authorized shares (in shares) | 50,000,000 | 50,000,000 |
Series A Preferred Stock, dividend rate percentage (in hundredths) | 8.625% | 8.625% |
Series A Preferred Stock, liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 |
Series A Preferred Stock, shares issued (in shares) | 28,821 | 28,826 |
Series A Preferred Stock, shares outstanding (in shares) | 28,821 | 28,826 |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, authorized shares (in shares) | 200,000,000 | 200,000,000 |
Common Stock, shares issued (in shares) | 104,383,062 | 103,921,546 |
Common Stock, shares outstanding (in shares) | 104,383,062 | 103,921,546 |
Highwoods Realty Limited Partnership [Member] | ||
Assets: | ||
Deferred leasing costs, accumulated amortization | $ 139,175 | $ 151,698 |
Prepaid Expenses And Other Assets Accumulated Depreciation | $ 20,891 | $ 21,154 |
Redeemable Operating Partnership Units: [Abstract] | ||
Redeemable Common Units outstanding (in shares) | 2,832,487 | 2,838,725 |
Series A Preferred Units, liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 |
Series A Preferred Units, issued (in shares) | 28,821 | 28,826 |
Series A Preferred Units, outstanding (in shares) | 28,821 | 28,826 |
Common Units: [Abstract] | ||
General partners' capital account, units outstanding (in shares) | 1,068,067 | 1,063,515 |
Limited partners' capital account, units outstanding (in shares) | 102,906,186 | 102,449,222 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Rental and other revenues | $ 195,495 | $ 181,043 | $ 564,802 | $ 556,996 |
Operating expenses: | ||||
Rental property and other expenses | 60,567 | 56,892 | 172,982 | 174,213 |
Depreciation and amortization | 66,547 | 60,303 | 189,423 | 180,914 |
Impairments of real estate assets | 0 | 0 | 0 | 1,778 |
General and administrative | 10,350 | 9,155 | 30,409 | 30,169 |
Total operating expenses | 137,464 | 126,350 | 392,814 | 387,074 |
Interest expense | 21,986 | 19,886 | 60,755 | 61,003 |
Other income/(loss) | 424 | (3,311) | 1,068 | (2,654) |
Gains on disposition of property | 38,572 | 10,012 | 80,371 | 163,397 |
Equity in earnings of unconsolidated affiliates | 546 | 823 | 1,614 | 2,965 |
Net income | 75,587 | 42,331 | 194,286 | 272,627 |
Net (income) attributable to noncontrolling interests in the Operating Partnership | (1,967) | (1,107) | (5,084) | (7,084) |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (894) | (298) | (1,469) | (872) |
Dividends on Preferred Stock | (621) | (622) | (1,864) | (1,866) |
Net income available for common stockholders | $ 72,105 | $ 40,304 | $ 185,869 | $ 262,805 |
Earnings per Common Share – basic: | ||||
Net income available for common stockholders (in dollars per share) | $ 0.69 | $ 0.39 | $ 1.79 | $ 2.53 |
Weighted average Common Shares outstanding - basic (in shares) | 104,277 | 103,896 | 104,117 | 103,865 |
Earnings per Common Share - diluted: | ||||
Net income available for common stockholders (in dollars per share) | $ 0.69 | $ 0.39 | $ 1.79 | $ 2.53 |
Weighted average Common Shares outstanding - diluted (in shares) | 107,139 | 106,740 | 106,972 | 106,702 |
Highwoods Realty Limited Partnership [Member] | ||||
Rental and other revenues | $ 195,495 | $ 181,043 | $ 564,802 | $ 556,996 |
Operating expenses: | ||||
Rental property and other expenses | 60,567 | 56,892 | 172,982 | 174,213 |
Depreciation and amortization | 66,547 | 60,303 | 189,423 | 180,914 |
Impairments of real estate assets | 0 | 0 | 0 | 1,778 |
General and administrative | 10,350 | 9,155 | 30,409 | 30,169 |
Total operating expenses | 137,464 | 126,350 | 392,814 | 387,074 |
Interest expense | 21,986 | 19,886 | 60,755 | 61,003 |
Other income/(loss) | 424 | (3,311) | 1,068 | (2,654) |
Gains on disposition of property | 38,572 | 10,012 | 80,371 | 163,397 |
Equity in earnings of unconsolidated affiliates | 546 | 823 | 1,614 | 2,965 |
Net income | 75,587 | 42,331 | 194,286 | 272,627 |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (894) | (298) | (1,469) | (872) |
Distributions on Preferred Units | (621) | (622) | (1,864) | (1,866) |
Net income available for common unitholders | $ 74,072 | $ 41,411 | $ 190,953 | $ 269,889 |
Earnings per Common Unit - basic: | ||||
Net income available for common unitholders (in dollars per share) | $ 0.69 | $ 0.39 | $ 1.79 | $ 2.54 |
Weighted average Common Units outstanding - basic (in shares) | 106,705 | 106,329 | 106,546 | 106,283 |
Earnings per Common Unit - diluted: | ||||
Net income available for common unitholders (in dollars per share) | $ 0.69 | $ 0.39 | $ 1.79 | $ 2.54 |
Weighted average Common Units outstanding - diluted (in shares) | 106,730 | 106,331 | 106,563 | 106,293 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Comprehensive income: | ||||
Net income | $ 75,587 | $ 42,331 | $ 194,286 | $ 272,627 |
Other comprehensive income/(loss): | ||||
Unrealized gains/(losses) on cash flow hedges | (6) | 5 | (17) | (1,231) |
Amortization of cash flow hedges | 129 | 122 | 377 | 125 |
Total other comprehensive income/(loss) | 123 | 127 | 360 | (1,106) |
Total comprehensive income | 75,710 | 42,458 | 194,646 | 271,521 |
Less-comprehensive (income) attributable to noncontrolling interests | (2,861) | (1,405) | (6,553) | (7,956) |
Comprehensive income attributable to common stockholders/Comprehensive income attributable to common unitholders | 72,849 | 41,053 | 188,093 | 263,565 |
Highwoods Realty Limited Partnership [Member] | ||||
Comprehensive income: | ||||
Net income | 75,587 | 42,331 | 194,286 | 272,627 |
Other comprehensive income/(loss): | ||||
Unrealized gains/(losses) on cash flow hedges | (6) | 5 | (17) | (1,231) |
Amortization of cash flow hedges | 129 | 122 | 377 | 125 |
Total other comprehensive income/(loss) | 123 | 127 | 360 | (1,106) |
Total comprehensive income | 75,710 | 42,458 | 194,646 | 271,521 |
Less-comprehensive (income) attributable to noncontrolling interests | (894) | (298) | (1,469) | (872) |
Comprehensive income attributable to common stockholders/Comprehensive income attributable to common unitholders | $ 74,816 | $ 42,160 | $ 193,177 | $ 270,649 |
Consolidated Statements of Equi
Consolidated Statements of Equity/Capital - USD ($) $ in Thousands | Total | Highwoods Realty Limited Partnership [Member] | Common Stock [Member] | Series A Cumulative Redeemable Preferred Shares [Member] | General Partners' Common Units [Member]Highwoods Realty Limited Partnership [Member] | Limited Partners' Common Units [Member]Highwoods Realty Limited Partnership [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Other Comprehensive Income (Loss) [Member]Highwoods Realty Limited Partnership [Member] | Noncontrolling Interests in Consolidated Affiliates [Member] | Noncontrolling Interests in Consolidated Affiliates [Member]Highwoods Realty Limited Partnership [Member] | Distributions in Excess of Net Income Available for Common Stockholders [Member] |
Balance (in shares) at Dec. 31, 2019 | 103,756,046 | |||||||||||
Balance at Dec. 31, 2019 | $ 2,174,407 | $ 2,145,548 | $ 1,038 | $ 28,859 | $ 21,240 | $ 2,102,769 | $ 2,954,779 | $ (471) | $ (471) | $ 22,010 | $ 22,010 | $ (831,808) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Issuances of Common Units, net of issuance costs and tax withholdings | 7,951 | 80 | 7,871 | |||||||||
Distributions on Common Units | (152,965) | (1,530) | (151,435) | |||||||||
Distributions on Preferred Units | (1,866) | (19) | (1,847) | |||||||||
Issuances of Common Stock, net of issuance costs and tax withholdings | 9,045 | |||||||||||
Net proceeds of Common Stock sold during the period | 1,788 | 1,788 | ||||||||||
Conversions of Common Units to Common Stock | 0 | |||||||||||
Dividends on Common Stock | (149,462) | (149,462) | ||||||||||
Dividends on Preferred Stock | (1,866) | (1,866) | ||||||||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | 46,955 | 46,955 | ||||||||||
Distributions to noncontrolling interests in consolidated affiliates | (1,124) | (1,124) | (1,124) | (1,124) | ||||||||
Issuances of restricted stock - shares | 149,304 | |||||||||||
Issuances of restricted stock | 0 | |||||||||||
Redemptions/repurchases of Preferred Stock | (33) | (33) | ||||||||||
Share-based compensation expense, net of forfeitures - shares | (6,166) | |||||||||||
Share-based compensation expense, net of forfeitures | 4,980 | 4,980 | $ 1 | 50 | 4,930 | 4,979 | ||||||
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner | 37,211 | 372 | 36,839 | |||||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | (7,084) | (7,084) | ||||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | 0 | 0 | (9) | (863) | 872 | 872 | (872) | |||||
Comprehensive income: | ||||||||||||
Net income | 272,627 | 272,627 | 2,726 | 269,901 | 272,627 | |||||||
Other comprehensive income/(loss) | (1,106) | (1,106) | (1,106) | (1,106) | ||||||||
Total comprehensive income | 271,521 | 271,521 | ||||||||||
Balance (in shares) at Sep. 30, 2020 | 103,908,229 | |||||||||||
Balance at Sep. 30, 2020 | 2,340,082 | 2,311,256 | $ 1,039 | 28,826 | 22,910 | 2,268,165 | 3,008,501 | (1,577) | (1,577) | 21,758 | 21,758 | (718,465) |
Balance (in shares) at Dec. 31, 2019 | 103,756,046 | |||||||||||
Balance at Dec. 31, 2019 | $ 2,174,407 | 2,145,548 | $ 1,038 | 28,859 | 21,240 | 2,102,769 | 2,954,779 | (471) | (471) | 22,010 | 22,010 | (831,808) |
Balance (in shares) at Dec. 31, 2020 | 103,921,546 | 103,921,546 | ||||||||||
Balance at Dec. 31, 2020 | $ 2,358,170 | 2,329,344 | $ 1,039 | 28,826 | 23,087 | 2,285,673 | 2,993,946 | (1,462) | (1,462) | 22,046 | 22,046 | (686,225) |
Balance (in shares) at Jun. 30, 2020 | 103,896,936 | |||||||||||
Balance at Jun. 30, 2020 | 2,337,472 | 2,308,629 | $ 1,039 | 28,843 | 22,886 | 2,265,692 | 2,996,442 | (1,704) | (1,704) | 21,755 | 21,755 | (708,903) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Issuances of Common Units, net of issuance costs and tax withholdings | 387 | 4 | 383 | |||||||||
Distributions on Common Units | (51,034) | (511) | (50,523) | |||||||||
Distributions on Preferred Units | (622) | (7) | (615) | |||||||||
Issuances of Common Stock, net of issuance costs and tax withholdings | 11,293 | |||||||||||
Net proceeds of Common Stock sold during the period | 387 | 387 | ||||||||||
Dividends on Common Stock | (49,866) | (49,866) | ||||||||||
Dividends on Preferred Stock | (622) | (622) | ||||||||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | 10,430 | 10,430 | ||||||||||
Distributions to noncontrolling interests in consolidated affiliates | (295) | (295) | (295) | (295) | ||||||||
Redemptions/repurchases of Preferred Stock | (17) | (17) | ||||||||||
Share-based compensation expense, net of forfeitures - shares | 0 | |||||||||||
Share-based compensation expense, net of forfeitures | 1,242 | 1,242 | $ 0 | 13 | 1,229 | 1,242 | ||||||
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner | 10,491 | 105 | 10,386 | |||||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | (1,107) | (1,107) | ||||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | 0 | 0 | (3) | (295) | 298 | 298 | (298) | |||||
Comprehensive income: | ||||||||||||
Net income | 42,331 | 42,331 | 423 | 41,908 | 42,331 | |||||||
Other comprehensive income/(loss) | 127 | 127 | 127 | 127 | ||||||||
Total comprehensive income | 42,458 | 42,458 | ||||||||||
Balance (in shares) at Sep. 30, 2020 | 103,908,229 | |||||||||||
Balance at Sep. 30, 2020 | $ 2,340,082 | 2,311,256 | $ 1,039 | 28,826 | 22,910 | 2,268,165 | 3,008,501 | (1,577) | (1,577) | 21,758 | 21,758 | (718,465) |
Balance (in shares) at Dec. 31, 2020 | 103,921,546 | 103,921,546 | ||||||||||
Balance at Dec. 31, 2020 | $ 2,358,170 | 2,329,344 | $ 1,039 | 28,826 | 23,087 | 2,285,673 | 2,993,946 | (1,462) | (1,462) | 22,046 | 22,046 | (686,225) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Issuances of Common Units, net of issuance costs and tax withholdings | 13,405 | 134 | 13,271 | |||||||||
Distributions on Common Units | (155,445) | (1,554) | (153,891) | |||||||||
Distributions on Preferred Units | (1,864) | (19) | (1,845) | |||||||||
Issuances of Common Stock, net of issuance costs and tax withholdings | 277,441 | |||||||||||
Net proceeds of Common Stock sold during the period | 13,405 | $ 3 | 13,402 | |||||||||
Conversions of Common Units to Common Stock - Shares | 6,238 | |||||||||||
Conversions of Common Units to Common Stock | 278 | 278 | ||||||||||
Dividends on Common Stock | (151,898) | (151,898) | ||||||||||
Dividends on Preferred Stock | (1,864) | (1,864) | ||||||||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | (11,072) | (11,072) | ||||||||||
Distributions to noncontrolling interests in consolidated affiliates | (1,342) | (1,342) | (1,342) | (1,342) | ||||||||
Issuances of restricted stock - shares | 184,584 | |||||||||||
Issuances of restricted stock | 0 | |||||||||||
Redemptions/repurchases of Preferred Stock | (5) | (5) | ||||||||||
Share-based compensation expense, net of forfeitures - shares | (6,747) | |||||||||||
Share-based compensation expense, net of forfeitures | 6,751 | 6,751 | $ 2 | 68 | 6,683 | 6,749 | ||||||
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner | (12,331) | (123) | (12,208) | |||||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | (5,084) | (5,084) | ||||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | 0 | 0 | (15) | (1,454) | 1,469 | 1,469 | (1,469) | |||||
Comprehensive income: | ||||||||||||
Net income | 194,286 | 194,286 | 1,943 | 192,343 | 194,286 | |||||||
Other comprehensive income/(loss) | 360 | 360 | 360 | 360 | ||||||||
Total comprehensive income | $ 194,646 | 194,646 | ||||||||||
Balance (in shares) at Sep. 30, 2021 | 104,383,062 | 104,383,062 | ||||||||||
Balance at Sep. 30, 2021 | $ 2,401,985 | 2,373,164 | $ 1,044 | 28,821 | 23,521 | 2,328,572 | 3,003,303 | (1,102) | (1,102) | 22,173 | 22,173 | (652,254) |
Balance (in shares) at Jun. 30, 2021 | 104,209,513 | |||||||||||
Balance at Jun. 30, 2021 | 2,367,643 | 2,338,822 | $ 1,042 | 28,821 | 23,182 | 2,295,026 | 2,989,405 | (1,225) | (1,225) | 21,839 | 21,839 | (672,239) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Issuances of Common Units, net of issuance costs and tax withholdings | 7,508 | 75 | 7,433 | |||||||||
Distributions on Common Units | (53,333) | (533) | (52,800) | |||||||||
Distributions on Preferred Units | (621) | (7) | (614) | |||||||||
Issuances of Common Stock, net of issuance costs and tax withholdings | 168,311 | |||||||||||
Net proceeds of Common Stock sold during the period | 7,508 | $ 2 | 7,506 | |||||||||
Conversions of Common Units to Common Stock - Shares | 5,238 | |||||||||||
Conversions of Common Units to Common Stock | 234 | 234 | ||||||||||
Dividends on Common Stock | (52,120) | (52,120) | ||||||||||
Dividends on Preferred Stock | (621) | (621) | ||||||||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | 4,262 | 4,262 | ||||||||||
Distributions to noncontrolling interests in consolidated affiliates | (560) | (560) | (560) | (560) | ||||||||
Share-based compensation expense, net of forfeitures - shares | 0 | |||||||||||
Share-based compensation expense, net of forfeitures | 1,896 | 1,896 | $ 0 | 19 | 1,877 | 1,896 | ||||||
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner | 3,742 | 38 | 3,704 | |||||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | (1,967) | (1,967) | ||||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | 0 | 0 | (9) | (885) | 894 | 894 | (894) | |||||
Comprehensive income: | ||||||||||||
Net income | 75,587 | 75,587 | 756 | 74,831 | 75,587 | |||||||
Other comprehensive income/(loss) | 123 | 123 | 123 | 123 | ||||||||
Total comprehensive income | $ 75,710 | 75,710 | ||||||||||
Balance (in shares) at Sep. 30, 2021 | 104,383,062 | 104,383,062 | ||||||||||
Balance at Sep. 30, 2021 | $ 2,401,985 | $ 2,373,164 | $ 1,044 | $ 28,821 | $ 23,521 | $ 2,328,572 | $ 3,003,303 | $ (1,102) | $ (1,102) | $ 22,173 | $ 22,173 | $ (652,254) |
Consolidated Statements of Eq_2
Consolidated Statements of Equity/Capital (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Highwoods Properties, Inc. [Member] | ||||
Dividends on Common Stock (per share) | $ 0.50 | $ 0.48 | $ 1.46 | $ 1.44 |
Highwoods Properties, Inc. [Member] | Series A Cumulative Redeemable Preferred Shares [Member] | ||||
Dividends on Preferred Stock (per share)/Distributions on Preferred Units (per unit) | 21.5625 | 21.5625 | 64.688 | 64.6875 |
Highwoods Realty Limited Partnership [Member] | ||||
Distributions on Common Units (per unit) | 0.50 | 0.48 | 1.46 | 1.44 |
Highwoods Realty Limited Partnership [Member] | Series A Cumulative Redeemable Preferred Shares [Member] | ||||
Dividends on Preferred Stock (per share)/Distributions on Preferred Units (per unit) | $ 21.5625 | $ 21.5625 | $ 64.688 | $ 64.6875 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | ||
Operating activities: | |||
Net income | $ 194,286 | $ 272,627 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 189,423 | 180,914 | |
Amortization of lease incentives and acquisition-related intangible assets and liabilities | (1,770) | (1,867) | |
Share-based compensation expense | 6,751 | 4,980 | |
Net credit losses/(reversals) on operating lease receivables | (60) | 4,387 | |
Accrued interest on mortgages and notes receivable | (79) | (91) | |
Amortization of debt issuance costs | 2,963 | 2,312 | |
Amortization of cash flow hedges | 377 | 125 | |
Amortization of mortgages and notes payable fair value adjustments | 882 | 1,270 | |
Impairments of real estate assets | 0 | 1,778 | |
Losses on debt extinguishment | 134 | 3,671 | |
Net gains on disposition of property | (80,371) | (163,397) | |
Equity in earnings of unconsolidated affiliates | (1,614) | (2,965) | |
Distributions of earnings from unconsolidated affiliates | 1,410 | 952 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 5,753 | (206) | |
Prepaid expenses and other assets | (1,210) | (3,684) | |
Accrued straight-line rents receivable | (13,734) | (30,187) | |
Accounts payable, accrued expenses and other liabilities | 6,077 | 4,840 | |
Net cash provided by operating activities | 309,218 | 275,459 | |
Investing activities: | |||
Investments in acquired real estate and related intangible assets, net of cash acquired | (270,160) | (2,363) | |
Investments in development in-process | (65,333) | (116,839) | |
Investments in tenant improvements and deferred leasing costs | (68,197) | (106,843) | |
Investments in building improvements | (34,452) | (44,088) | |
Investment in acquired controlling interest in unconsolidated affiliate | (127,339) | 0 | |
Net proceeds from disposition of real estate assets | 187,964 | 356,644 | |
Distributions of capital from unconsolidated affiliates | 0 | 72 | |
Investments in mortgages and notes receivable | (56) | (32) | |
Repayments of mortgages and notes receivable | 229 | 234 | |
Changes in other investing activities | 4,119 | (6,416) | |
Net cash provided by/(used in) investing activities | (373,225) | 80,369 | |
Financing activities: | |||
Dividends on Common Stock | (151,898) | (149,462) | |
Redemptions/repurchases of Preferred Stock | (5) | (33) | |
Dividends on Preferred Stock | (1,864) | (1,866) | |
Distributions to noncontrolling interests in the Operating Partnership | (4,144) | (4,092) | |
Distributions to noncontrolling interests in consolidated affiliates | (1,342) | (1,124) | |
Proceeds from the issuance of Common Stock | 15,453 | 3,163 | |
Costs paid for the issuance of Common Stock | (355) | (215) | |
Repurchase of shares related to tax withholdings | (1,693) | (1,160) | |
Borrowings on revolving credit facility | 310,000 | 129,000 | |
Repayments of revolving credit facility | (175,000) | (350,000) | |
Borrowings on mortgages and notes payable | 200,000 | 398,364 | |
Repayments of mortgages and notes payable | (264,212) | (251,457) | |
Payments of debt extinguishment costs | 0 | (3,108) | |
Changes in debt issuance costs and other financing activities | (9,279) | (10,309) | |
Net cash used in financing activities | (84,339) | (242,299) | |
Net increase/(decrease) in cash and cash equivalents and restricted cash | (148,346) | 113,529 | |
Cash and cash equivalents and restricted cash at beginning of the period | 189,244 | 14,742 | |
Cash and cash equivalents and restricted cash at end of the period | 40,898 | 128,271 | |
Reconciliation of cash and cash equivalents and restricted cash: | |||
Cash and cash equivalents at end of the period | 27,871 | 118,705 | |
Restricted cash at end of the period | 13,027 | 9,566 | |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest, net of amounts capitalized | 66,457 | 63,064 | |
Supplemental disclosure of non-cash investing and financing activities: | |||
Unrealized losses on cash flow hedges | (17) | (1,231) | |
Conversions of Common Units to Common Stock | 278 | 0 | |
Changes in accrued capital expenditures | [1] | (20,150) | 16,318 |
Write-off of fully depreciated real estate assets | 52,158 | 31,526 | |
Write-off of fully amortized leasing costs | 37,045 | 15,184 | |
Write-off of fully amortized debt issuance costs | 4,158 | 1,438 | |
Adjustment of noncontrolling interests in the Operating Partnership to fair value | 11,072 | (46,955) | |
Assumption of mortgages and notes payable related to acquisition activities | 403,000 | 0 | |
Issuances of Common Units to acquire real estate assets | 0 | 6,163 | |
Initial recognition of lease liabilities related to right of use assets | 5,310 | 0 | |
Future consideration in connection with the acquisition of land | 16,000 | 0 | |
Accrued capital expenditures included in accounts payable, accrued expenses and other liabilities | 45,800 | 84,300 | |
Highwoods Realty Limited Partnership [Member] | |||
Operating activities: | |||
Net income | 194,286 | 272,627 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 189,423 | 180,914 | |
Amortization of lease incentives and acquisition-related intangible assets and liabilities | (1,770) | (1,867) | |
Share-based compensation expense | 6,751 | 4,980 | |
Net credit losses/(reversals) on operating lease receivables | (60) | 4,387 | |
Accrued interest on mortgages and notes receivable | (79) | (91) | |
Amortization of debt issuance costs | 2,963 | 2,312 | |
Amortization of cash flow hedges | 377 | 125 | |
Amortization of mortgages and notes payable fair value adjustments | 882 | 1,270 | |
Impairments of real estate assets | 0 | 1,778 | |
Losses on debt extinguishment | 134 | 3,671 | |
Net gains on disposition of property | (80,371) | (163,397) | |
Equity in earnings of unconsolidated affiliates | (1,614) | (2,965) | |
Distributions of earnings from unconsolidated affiliates | 1,410 | 952 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 5,753 | (206) | |
Prepaid expenses and other assets | (1,210) | (3,684) | |
Accrued straight-line rents receivable | (13,734) | (30,187) | |
Accounts payable, accrued expenses and other liabilities | 6,077 | 4,840 | |
Net cash provided by operating activities | 309,218 | 275,459 | |
Investing activities: | |||
Investments in acquired real estate and related intangible assets, net of cash acquired | (270,160) | (2,363) | |
Investments in development in-process | (65,333) | (116,839) | |
Investments in tenant improvements and deferred leasing costs | (68,197) | (106,843) | |
Investments in building improvements | (34,452) | (44,088) | |
Investment in acquired controlling interest in unconsolidated affiliate | (127,339) | 0 | |
Net proceeds from disposition of real estate assets | 187,964 | 356,644 | |
Distributions of capital from unconsolidated affiliates | 0 | 72 | |
Investments in mortgages and notes receivable | (56) | (32) | |
Repayments of mortgages and notes receivable | 229 | 234 | |
Changes in other investing activities | 4,119 | (6,416) | |
Net cash provided by/(used in) investing activities | (373,225) | 80,369 | |
Financing activities: | |||
Distributions on Common Units | (155,445) | (152,965) | |
Redemptions/repurchases of Preferred Units | (5) | (33) | |
Distributions on Preferred Units | (1,864) | (1,866) | |
Distributions to noncontrolling interests in consolidated affiliates | (1,342) | (1,124) | |
Proceeds from the issuance of Common Units | 15,453 | 3,163 | |
Costs paid for the issuance of Common Units | (355) | (215) | |
Repurchase of units related to tax withholdings | (1,693) | (1,160) | |
Borrowings on revolving credit facility | 310,000 | 129,000 | |
Repayments of revolving credit facility | (175,000) | (350,000) | |
Borrowings on mortgages and notes payable | 200,000 | 398,364 | |
Repayments of mortgages and notes payable | (264,212) | (251,457) | |
Payments of debt extinguishment costs | 0 | (3,108) | |
Changes in debt issuance costs and other financing activities | (9,876) | (10,898) | |
Net cash used in financing activities | (84,339) | (242,299) | |
Net increase/(decrease) in cash and cash equivalents and restricted cash | (148,346) | 113,529 | |
Cash and cash equivalents and restricted cash at beginning of the period | 189,244 | 14,742 | |
Cash and cash equivalents and restricted cash at end of the period | 40,898 | 128,271 | |
Reconciliation of cash and cash equivalents and restricted cash: | |||
Cash and cash equivalents at end of the period | 27,871 | 118,705 | |
Restricted cash at end of the period | 13,027 | 9,566 | |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest, net of amounts capitalized | 66,457 | 63,064 | |
Supplemental disclosure of non-cash investing and financing activities: | |||
Unrealized losses on cash flow hedges | (17) | (1,231) | |
Changes in accrued capital expenditures | [1] | (20,150) | 16,318 |
Write-off of fully depreciated real estate assets | 52,158 | 31,526 | |
Write-off of fully amortized leasing costs | 37,045 | 15,184 | |
Write-off of fully amortized debt issuance costs | 4,158 | 1,438 | |
Adjustment of Redeemable Common Units to fair value | 11,734 | (43,963) | |
Assumption of mortgages and notes payable related to acquisition activities | 403,000 | 0 | |
Issuances of Common Units to acquire real estate assets | 0 | 6,163 | |
Initial recognition of lease liabilities related to right of use assets | 5,310 | 0 | |
Future consideration in connection with the acquisition of land | 16,000 | 0 | |
Accrued capital expenditures included in accounts payable, accrued expenses and other liabilities | $ 45,800 | $ 84,300 | |
[1] | Accrued capital expenditures included in accounts payable, accrued expenses and other liabilities at September 30, 2021 and 2020 were $45.8 million and $84.3 million, respectively. |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Significant Accounting Policies | Description of Business and Significant Accounting Policies Description of Business Highwoods Properties, Inc. (the “Company”) is a fully integrated real estate investment trust (“REIT”) that provides leasing, management, development, construction and other customer-related services for its properties and for third parties. The Company conducts its activities through Highwoods Realty Limited Partnership (the “Operating Partnership”). At September 30, 2021, we owned or had an interest in 29.0 million rentable square feet of in-service properties and approximately 300 acres of development land. Capital Structure The Company is the sole general partner of the Operating Partnership. At September 30, 2021, the Company owned all of the Preferred Units and 104.0 million, or 97.4%, of the Common Units in the Operating Partnership. Limited partners owned the remaining 2.8 million Common Units. During the nine months ended September 30, 2021, the Company redeemed 6,238 Common Units for a like number of shares of Common Stock. During 2020, we entered into separate equity distribution agreements in which the Company may offer and sell up to $300.0 million in aggregate gross sales price of shares of Common Stock. During the nine months ended September 30, 2021, the Company issued 299,360 shares of Common Stock under its equity distribution agreements at an average gross sales price of $45.96 per share and received net proceeds, after sales commissions, of $13.6 million. As a result of this activity and the redemptions discussed above, the percentage of Common Units owned by the Company increased from 97.3% at December 31, 2020 to 97.4% at September 30, 2021. Basis of Presentation Our Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company’s Consolidated Financial Statements include the Operating Partnership, wholly owned subsidiaries and those entities in which the Company has the controlling interest. The Operating Partnership’s Consolidated Financial Statements include wholly owned subsidiaries and those entities in which the Operating Partnership has the controlling interest. We consolidate joint venture investments, such as interests in partnerships and limited liability companies, when we control the major operating and financial policies of the investment through majority ownership, in our capacity as a general partner or managing member or through some other contractual right. In addition, we consolidate those entities deemed to be variable interest entities in which we are determined to be the primary beneficiary. During the third quarter of 2021, we acquired a portfolio of real estate assets from Preferred Apartment Communities, Inc. (NYSE:APTS) (“PAC”) using special purpose entities owned by a qualified intermediary to facilitate one or more potential Section 1031 reverse exchanges under the Internal Revenue Code. To realize the tax deferrals available under the Section 1031 exchanges, we must complete the Section 1031 exchanges, and take title to the to-be-exchanged buildings within 180 days of the acquisition date. We have determined that these entities are variable interest entities of which we are the primary beneficiary; and therefore, we consolidate these entities. At September 30, 2021, we also have involvement with, and are the primary beneficiary in, an entity that we concluded to be a variable interest entity. (See Note 3). All intercompany transactions and accounts have been eliminated. The unaudited interim consolidated financial statements and accompanying unaudited consolidated financial information, in the opinion of management, contain all adjustments (including normal recurring accruals) necessary for a fair presentation of our financial position, results of operations and cash flows. We have condensed or omitted certain notes and other information from the interim Consolidated Financial Statements presented in this Quarterly Report as permitted by SEC rules and regulations. These Consolidated Financial Statements should be read in conjunction with our 2020 Annual Report on Form 10-K. Use of Estimates The preparation of consolidated financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the amounts reported in our Consolidated Financial Statements and accompanying notes. Actual results could differ from those estimates. Insurance We are primarily self-insured for health care claims for participating employees. We have stop-loss coverage to limit our exposure to significant claims on a per claim and annual aggregate basis. We determine our liabilities for claims, including incurred but not reported losses, based on all relevant information, including actuarial estimates of claim liabilities. At September 30, 2021, a reserve of $0.5 million was recorded to cover estimated reported and unreported claims. Investment Activities During the third quarter of 2021, we closed the acquisition of a portfolio of real estate assets from PAC. The portfolio consists of the following assets: Asset Market Submarket/BBD Square Footage 150 Fayetteville Raleigh CBD 560,000 CAPTRUST Towers Raleigh North Hills 300,000 Capitol Towers Charlotte SouthPark 479,000 Morrocroft Centre Charlotte SouthPark 291,000 Galleria 75 Redevelopment Site Atlanta Cumberland/Galleria Our total purchase price, net of closing credits and cash acquired, was $653.6 million, including $4.5 million of capitalized acquisition costs. The acquisition included the assumption of four secured loans recorded at fair value of $403 million in the aggregate, with a weighted average effective interest rate of 3.54% and a weighted average maturity of 10.7 years (see Note 6). We incurred $3.5 million of debt issuance costs related to these assumptions, which will be amortized over the remaining terms of the loans. The assets acquired and liabilities assumed were recorded at relative fair value as determined by management, with the assistance of third party specialists, based on information available at the acquisition date and on current assumptions as to future operations. With respect to non-core assets we had previously agreed to acquire from PAC, the mezzanine loan related to a recently constructed office building in Atlanta was paid off in full by the third party borrower and PAC sold Armour Yards, a multi-building creative office project in Atlanta, to a third party. Recently Issued Accounting Standards The Financial Accounting Standards Board (“FASB”) issued an accounting standards update (“ASU”) that provides temporary optional expedients and exceptions to the guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate (“SOFR”). Entities can elect not to apply certain modification accounting requirements to contracts affected by reference rate reform, if certain criteria are met. An entity that makes this election would not have to remeasure the contracts at the modification date or reassess a previous accounting determination. Entities can also elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform, if certain criteria are met. The guidance in this ASU is optional and may be elected now through December 31, 2022 as reference rate reform activities occur. We will continue to evaluate the impact of this ASU; however, we currently expect to avail ourselves of such optional expedients and exceptions should our modified contracts meet the required criteria. Due to the business disruptions and challenges severely affecting the global economy caused by the COVID-19 pandemic, lessors may provide rent deferrals and other lease concessions to lessees. In April 2020, the FASB staff issued a question and answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of the COVID-19 pandemic. Under existing lease guidance, we would have to determine, on a |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | Leases Operating Leases We generally lease our office properties to lessees in exchange for fixed monthly payments that cover rent, property taxes, insurance and certain cost recoveries, primarily common area maintenance. Office properties owned by us that are under lease are primarily located in Atlanta, Charlotte, Nashville, Orlando, Pittsburgh, Raleigh, Richmond and Tampa and are leased to a wide variety of lessees across many industries. Our leases are operating leases and mostly range from three Acquired Finance Lease (in accounts payable, accrued expenses and other liabilities) (in prepaid expenses and other assets) (in prepaid expenses and other assets) |
Consolidated Variable Interest
Consolidated Variable Interest Entities | 9 Months Ended |
Sep. 30, 2021 | |
Variable Interest Entities [Abstract] | |
Consolidated Variable Interest Entity | Consolidated Variable Interest Entities The acquisition of real estate assets from PAC was completed using special purpose entities owned by a qualified intermediary to facilitate one or more potential Section 1031 reverse exchanges under the Internal Revenue Code. As of September 30, 2021, these variable interest entities had total assets, liabilities and cash flows of $669.6 million, $418.1 million, and $5.1 million, respectively. In 2019, we and The Bromley Companies formed a joint venture (the “Midtown One joint venture”) to construct Midtown West, a 150,000 square foot, multi-customer office building located in the mixed-use Midtown Tampa project in Tampa’s Westshore submarket. Midtown West has an anticipated total investment of $71.3 million. Construction of Midtown West began in the third quarter of 2019 and the building was placed in service in the second quarter of 2021. At closing, we agreed to contribute cash of $20.0 million, which has been fully funded, in exchange for an 80.0% interest in the Midtown One joint venture and The Bromley Companies contributed land valued at $5.0 million in exchange for the remaining 20.0% interest. We also committed to provide a $46.3 million interest-only secured construction loan to the Midtown One joint venture that is scheduled to mature on the second anniversary of completion. The loan bears interest at LIBOR plus 250 basis points. As of September 30, 2021, $25.9 million under the loan has been funded. We determined that we have a variable interest in the Midtown One joint venture primarily because the entity was designed to pass along interest rate risk, equity price risk and operation risk to us as both a debt and an equity holder and The Bromley Companies as an equity holder. The Midtown One joint venture was further determined to be a variable interest entity as it requires additional subordinated financial support in the form of a loan because the initial equity investment provided by us and The Bromley Companies is not sufficient to finance its planned investments and operations. We, as majority owner and managing member and through our control rights as set forth in the joint venture’s governance documents, were determined to be the primary beneficiary as we have both the power to direct the activities that most significantly affect the entity (primarily lease rates, property operations and capital expenditures) and significant economic exposure through our equity investment and loan commitment. As such, the Midtown One joint venture is consolidated and all intercompany transactions and accounts are eliminated. The following table sets forth the assets and liabilities of the Midtown One joint venture included on our Consolidated Balance Sheets: September 30, Net real estate assets $ 52,790 Deferred leasing costs, net $ 1,934 Prepaid expenses and other assets, net $ 170 Accounts payable, accrued expenses and other liabilities $ 1,771 |
Real Estate Assets
Real Estate Assets | 9 Months Ended |
Sep. 30, 2021 | |
Real Estate [Abstract] | |
Real Estate Assets | Real Estate Assets Acquisitions As previously described, the acquisition of real estate assets from PAC was completed during the third quarter of 2021. The following table sets forth a summary of the relative fair value of the material assets acquired and liabilities assumed relating to this acquisition: Amount Recorded at Acquisition Real estate assets $ 593,039 Acquisition-related intangible assets (in deferred financing and leasing costs) $ 61,126 Right of use asset (in prepaid expenses and other assets) $ 8,440 Mortgages and notes payable, net $ (399,527) Acquisition-related intangible liabilities (in accounts payable, accrued expenses and other liabilities) $ (7,174) Lease liability (in accounts payable, accrued expenses and other liabilities) $ (5,310) During the third quarter of 2021, we also acquired development land in Nashville for a purchase price, including capitalized acq uisition costs, of $22.9 million. During the second quarter of 2021, we acquired development land in Nashville for a purchase price, including capitalized acq uisition costs, of $16.1 million, which is expected to be paid within two years. Duri ng the first quarter of 2021, we acquired our joint venture partner’s 75.0% interest in our Highwoods DLF Forum, LLC joint venture (the “Forum”), which owned five buildings in Raleigh encompassing 636,000 rentable square feet, for a purchase price of $131.3 million. We previously accounted for our 25.0% interest in this joint venture using the equity method of accounting. The assets and liabilities of the joint venture are now wholly owned and we have determined the acquisition constitutes an asset purchase. As such, because the Forum is not a variable interest entity, we allocated our previously held equity interest at historical cost along with the consideration paid and acquisition costs to the assets acquired and liabilities assumed. The assets acquired and liabilities assumed were recorded at relative fair value as determined by management, with the assistance of third party specialists, based on information available at the acquisition date and on current assumptions as to future operations. Dispositions During the third quarter of 2021, we sold two office buildings in Richmond and Memphis for an aggregate sale price of $119.7 million (before closing credits to buyer of $4.4 million) and recorded aggregate gains on disposition of property of $37.3 million. We have a 50.0% ownership interest in Highwoods-Markel Associates, LLC (“Markel”), a consolidated joint venture. During the third quarter of 2021, Markel sold land in Richmond for a sale price of $3.0 million and recorded gain on disposition of property of $1.3 million. During the second quarter of 2021, we sold an office building in Tampa for a sale price of $43.0 million (before closing credits to buyer of $0.9 million) and recorded a gain on disposition of property of $22.9 million. During the first quarter of 2021, we sold an office building in Atlanta for a sale price of $30.7 million and recorded a gain on disposition of property of $18.9 million. |
Intangible Assets and Below Mar
Intangible Assets and Below Market Lease Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Below Market Lease Liabilities | Intangible Assets and Below Market Lease Liabilities The following table sets forth total intangible assets and acquisition-related below market lease liabilities, net of accumulated amortization: September 30, December 31, Assets: Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets) $ 406,580 $ 361,027 Less accumulated amortization (139,175) (151,698) $ 267,405 $ 209,329 Liabilities (in accounts payable, accrued expenses and other liabilities): Acquisition-related below market lease liabilities $ 60,802 $ 63,748 Less accumulated amortization (30,598) (37,838) $ 30,204 $ 25,910 The following table sets forth amortization of intangible assets and below market lease liabilities: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization) $ 10,070 $ 8,466 $ 27,267 $ 25,830 Amortization of lease incentives (in rental and other revenues) $ 424 $ 477 $ 1,317 $ 1,396 Amortization of acquisition-related intangible assets (in rental and other revenues) $ 636 $ 273 $ 1,154 $ 882 Amortization of acquisition-related intangible assets (in rental property and other expenses) $ — $ 140 $ — $ 417 Amortization of acquisition-related below market lease liabilities (in rental and other revenues) $ (1,391) $ (1,479) $ (4,241) $ (4,562) The following table sets forth scheduled future amortization of intangible assets and below market lease liabilities: Amortization of Deferred Leasing Costs and Acquisition-Related Intangible Assets (in Depreciation and Amortization) Amortization of Lease Incentives (in Rental and Other Revenues) Amortization of Acquisition-Related Intangible Assets (in Rental and Other Revenues) Amortization of Acquisition-Related Below Market Lease Liabilities (in Rental and Other Revenues) October 1 through December 31, 2021 $ 11,669 $ 381 $ 777 $ (1,420) 2022 42,867 1,484 2,986 (5,290) 2023 38,076 1,414 2,829 (4,868) 2024 33,874 1,269 2,573 (4,129) 2025 26,988 1,195 1,667 (2,594) Thereafter 86,170 5,056 6,130 (11,903) $ 239,644 $ 10,799 $ 16,962 $ (30,204) Weighted average remaining amortization periods as of September 30, 2021 (in years) 7.8 8.8 7.8 8.4 The following table sets forth the intangible assets acquired and below market lease liabilities assumed as a result of the acquisition of real estate assets from PAC and our joint venture partner's 75.0% interest in the Forum: Acquisition-Related Intangible Assets (amortized in Rental and Other Revenues) Acquisition-Related Intangible Assets (amortized in Depreciation and Amortization) Acquisition-Related Below Market Lease Liabilities (amortized in Rental and Other Revenues) Amount recorded at acquisition $ 13,824 $ 84,298 $ (8,535) Weighted average remaining amortization periods as of September 30, 2021 (in years) 7.3 7.2 8.2 |
Mortgages and Notes Payable
Mortgages and Notes Payable | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Mortgages and Notes Payable | Mortgages and Notes Payable The following table sets forth our mortgages and notes payable: September 30, December 31, Secured indebtedness $ 493,887 $ 93,350 Unsecured indebtedness 2,464,823 2,390,652 Less-unamortized debt issuance costs (15,808) (13,981) Total mortgages and notes payable, net $ 2,942,902 $ 2,470,021 At September 30, 2021, our secured mortgage loans were collateralized by real estate assets with an undepreciated book value of $721.0 million. During the first quarter of 2021, we entered into a new $750.0 million unsecured revolving credit facility, which replaced our previously existing $600.0 million revolving credit facility and includes an accordion feature that allows for an additional $550.0 million of borrowing capacity subject to additional lender commitments. Our new revolving credit facility is scheduled to mature in March 2025. Assuming no defaults have occurred, we have an option to extend the maturity for two additional six During the third quarter of 2021, in conjunction with the acquisition of real estate assets from PAC, we assumed four secured mortgage loans which were recorded at fair market value as of the acquisition date. The following table sets forth the balances of these assumed mortgages and related unamortized debt issuance costs included in mortgages and notes payable, net on our Consolidated Balance Sheets as of September 30, 2021: Balance at September 30, 2021 4.27% (3.61% effective rate) mortgage loan due 08/2028 $ 116,374 3.61% (3.19% effective rate) mortgage loan due 08/2029 85,049 3.40% (3.50% effective rate) mortgage loan due 04/2033 69,409 4.60% (3.73% effective rate) mortgage loan due 01/2037 131,221 Less-unamortized debt issuance costs (3,410) Total $ 398,643 During the third quarter of 2021, we also obtained a $200.0 million, six six six During the second quarter of 2021, we prepaid without penalty the remaining $150.0 million principal amount of 3.20% unsecured notes that was scheduled to mature in June 2021. We recorded $0.1 million of loss on debt extinguishment related to this prepayment. We are currently in compliance with financial covenants with respect to our consolidated debt. We have considered our short-term liquidity needs and the adequacy of our estimated cash flows from operating activities and other available financing sources to meet these needs. We intend to meet these short-term liquidity requirements through a combination of the following: • available cash and cash equivalents; • cash flows from operating activities; • issuance of debt securities by the Operating Partnership; • issuance of secured debt; • bank term loans; • borrowings under our revolving credit facility; • issuance of equity securities by the Company or the Operating Partnership; and • the disposition of non-core assets. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The counterparties under our swaps are major financial institutions. The swap agreements contain a provision whereby if we default on certain of our indebtedness and which default results in repayment of such indebtedness being, or becoming capable of being, accelerated by the lender, then we could also be declared in default on our swaps. Our interest rate swaps have been designated as and are being accounted for as cash flow hedges with changes in fair value recorded in other comprehensive income/(loss) each reporting period. We have no collateral requirements related to our interest rate swaps. Amounts reported in accumulated other comprehensive income/(loss) related to derivatives will be reclassified to interest expense as interest payments are made on our debt. During the period from October 1, 2021 through September 30, 2022, we estimate that less than $0.1 million will be reclassified as a net decrease to interest expense. The following table sets forth the fair value of our derivatives: September 30, December 31, Derivatives: Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities: Interest rate swaps $ 263 $ 846 The following table sets forth the effect of our cash flow hedges on accumulated other comprehensive loss and interest expense: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Derivatives Designated as Cash Flow Hedges: Amount of unrealized gains/(losses) recognized in accumulated other comprehensive loss on derivatives: Interest rate swaps $ (6) $ 5 $ (17) $ (1,231) Amount of losses reclassified out of accumulated other comprehensive loss into interest expense: Interest rate swaps $ 129 $ 122 $ 377 $ 125 |
Noncontrolling Interests
Noncontrolling Interests | 9 Months Ended |
Sep. 30, 2021 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests Noncontrolling Interests in Consolidated Affiliates At September 30, 2021, our noncontrolling interests in consolidated affiliates relate to our joint venture partners’ 50.0% interest in office properties in Richmond and 20.0% interest in the Midtown One joint venture. See Note 3. Our joint venture partners are unrelated third parties. Noncontrolling Interests in the Operating Partnership The following table sets forth the Company’s noncontrolling interests in the Operating Partnership: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Beginning noncontrolling interests in the Operating Partnership $ 128,180 $ 106,103 $ 112,499 $ 133,216 Adjustment of noncontrolling interests in the Operating Partnership to fair value (4,262) (10,430) 11,072 (46,955) Issuances of Common Units — — — 6,163 Conversions of Common Units to Common Stock (234) — (278) — Net income attributable to noncontrolling interests in the Operating Partnership 1,967 1,107 5,084 7,084 Distributions to noncontrolling interests in the Operating Partnership (1,418) (1,364) (4,144) (4,092) Total noncontrolling interests in the Operating Partnership $ 124,233 $ 95,416 $ 124,233 $ 95,416 The following table sets forth net income available for common stockholders and transfers from the Company’s noncontrolling interests in the Operating Partnership: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Net income available for common stockholders $ 72,105 $ 40,304 $ 185,869 $ 262,805 Increase in additional paid in capital from conversions of Common Units to Common Stock 234 — 278 — Issuances of Common Units — — — (6,163) Change from net income available for common stockholders and transfers from noncontrolling interests $ 72,339 $ 40,304 $ 186,147 $ 256,642 |
Disclosure About Fair Value of
Disclosure About Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Disclosure About Fair Value of Financial Instruments | Disclosure About Fair Value of Financial Instruments The following summarizes the levels of inputs that we use to measure fair value. Level 1. Quoted prices in active markets for identical assets or liabilities. Our Level 1 asset is our investment in marketable securities that we use to pay benefits under our non-qualified deferred compensation plan. Our Level 1 liability is our non-qualified deferred compensation obligation. The Company’s Level 1 noncontrolling interests in the Operating Partnership relate to the ownership of Common Units by various individuals and entities other than the Company. Level 2. Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. Our Level 2 assets include the fair value of our mortgages and notes receivable. Our Level 2 liabilities include the fair value of our mortgages and notes payable and interest rate swaps. The fair value of mortgages and notes receivable and mortgages and notes payable is estimated by the income approach utilizing contractual cash flows and market-based interest rates to approximate the price that would be paid in an orderly transaction between market participants. The fair value of interest rate swaps is determined using the market standard methodology of netting the discounted future fixed cash receipts and the discounted expected variable cash payments. The variable cash payments of interest rate swaps are based on the expectation of future interest rates (forward curves) derived from observed market interest rate curves. In addition, credit valuation adjustments are considered in the fair values to account for potential nonperformance risk, but were concluded to not be significant inputs to the calculation for the periods presented. Level 3. Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Our Level 3 assets include any real estate assets recorded at fair value on a non-recurring basis as a result of our quarterly impairment analysis, which are valued using unobservable local and national industry market data such as comparable sales, appraisals, brokers’ opinions of value and/or the terms of definitive sales contracts. Significant increases or decreases in any valuation inputs in isolation would result in a significantly lower or higher fair value measurement. The following table sets forth our assets and liabilities and the Company’s noncontrolling interests in the Operating Partnership that are measured or disclosed at fair value within the fair value hierarchy: Level 1 Level 2 Total Quoted Prices Significant Observable Inputs Fair Value at September 30, 2021: Assets: Mortgages and notes receivable, at fair value (1) $ 1,247 $ — $ 1,247 Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 2,796 2,796 — Total Assets $ 4,043 $ 2,796 $ 1,247 Noncontrolling Interests in the Operating Partnership $ 124,233 $ 124,233 $ — Liabilities: Mortgages and notes payable, net, at fair value (1) $ 3,089,765 $ — $ 3,089,765 Interest rate swaps (in accounts payable, accrued expenses and other liabilities) 263 — 263 Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 2,796 2,796 — Total Liabilities $ 3,092,824 $ 2,796 $ 3,090,028 Fair Value at December 31, 2020: Assets: Mortgages and notes receivable, at fair value (1) $ 1,341 $ — $ 1,341 Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 2,573 2,573 — Total Assets $ 3,914 $ 2,573 $ 1,341 Noncontrolling Interests in the Operating Partnership $ 112,499 $ 112,499 $ — Liabilities: Mortgages and notes payable, net, at fair value (1) $ 2,639,163 $ — $ 2,639,163 Interest rate swaps (in accounts payable, accrued expenses and other liabilities) 846 — 846 Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 2,573 2,573 — Total Liabilities $ 2,642,582 $ 2,573 $ 2,640,009 __________ |
Share-Based Payments
Share-Based Payments | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Payments | Share-Based PaymentsDuring the nine months ended September 30, 2021, the Company granted 103,120 shares of time-based restricted stock and 81,464 shares of total return-based restricted stock with weighted average grant date fair values per share of $39.99 and $36.41, respectively. We recorded share-based compensation expense of $1.9 million and $1.2 million during the three months ended September 30, 2021 and 2020, respectively, and $6.8 million and $5.0 million during the nine months ended September 30, 2021 and 2020, respectively. At September 30, 2021, there was $5.3 million of total unrecognized share-based compensation costs, which will be recognized over a weighted average remaining contractual term of 1.9 years. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table sets forth the components of accumulated other comprehensive loss: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Cash flow hedges: Beginning balance $ (1,225) $ (1,704) $ (1,462) $ (471) Unrealized gains/(losses) on cash flow hedges (6) 5 (17) (1,231) Amortization of cash flow hedges (1) 129 122 377 125 Total accumulated other comprehensive loss $ (1,102) $ (1,577) $ (1,102) $ (1,577) __________ (1) Amounts reclassified out of accumulated other comprehensive loss into interest expense. |
Real Estate and Other Assets He
Real Estate and Other Assets Held For Sale | 9 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Real Estate and Other Assets Held For Sale | Real Estate and Other Assets Held For Sale The following table sets forth the assets held for sale at September 30, 2021 and December 31, 2020, which are considered non-core: September 30, December 31, Assets: Land $ 6,723 $ 2,612 Buildings and tenant improvements 102,285 12,238 Land held for development 3,482 — Less-accumulated depreciation (53,121) (3,577) Net real estate assets 59,369 11,273 Accrued straight-line rents receivable 7,037 — Deferred leasing costs, net 3,285 87 Prepaid expenses and other assets, net 115 — Real estate and other assets, net, held for sale $ 69,806 $ 11,360 |
Earnings Per Share and Per Unit
Earnings Per Share and Per Unit | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share and Per Unit | Earnings Per Share and Per Unit The following table sets forth the computation of basic and diluted earnings per share of the Company: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Earnings per Common Share - basic: Numerator: Net income $ 75,587 $ 42,331 $ 194,286 $ 272,627 Net (income) attributable to noncontrolling interests in the Operating Partnership (1,967) (1,107) (5,084) (7,084) Net (income) attributable to noncontrolling interests in consolidated affiliates (894) (298) (1,469) (872) Dividends on Preferred Stock (621) (622) (1,864) (1,866) Net income available for common stockholders $ 72,105 $ 40,304 $ 185,869 $ 262,805 Denominator: Denominator for basic earnings per Common Share – weighted average shares (1) 104,277 103,896 104,117 103,865 Net income available for common stockholders $ 0.69 $ 0.39 $ 1.79 $ 2.53 Earnings per Common Share - diluted: Numerator: Net income $ 75,587 $ 42,331 $ 194,286 $ 272,627 Net (income) attributable to noncontrolling interests in consolidated affiliates (894) (298) (1,469) (872) Dividends on Preferred Stock (621) (622) (1,864) (1,866) Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership $ 74,072 $ 41,411 $ 190,953 $ 269,889 Denominator: Denominator for basic earnings per Common Share – weighted average shares (1) 104,277 103,896 104,117 103,865 Add: Stock options using the treasury method 25 2 17 10 Noncontrolling interests Common Units 2,837 2,842 2,838 2,827 Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions 107,139 106,740 106,972 106,702 Net income available for common stockholders $ 0.69 $ 0.39 $ 1.79 $ 2.53 __________ (1) Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable. The following table sets forth the computation of basic and diluted earnings per unit of the Operating Partnership: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Earnings per Common Unit - basic: Numerator: Net income $ 75,587 $ 42,331 $ 194,286 $ 272,627 Net (income) attributable to noncontrolling interests in consolidated affiliates (894) (298) (1,469) (872) Distributions on Preferred Units (621) (622) (1,864) (1,866) Net income available for common unitholders $ 74,072 $ 41,411 $ 190,953 $ 269,889 Denominator: Denominator for basic earnings per Common Unit – weighted average units (1) 106,705 106,329 106,546 106,283 Net income available for common unitholders $ 0.69 $ 0.39 $ 1.79 $ 2.54 Earnings per Common Unit - diluted: Numerator: Net income $ 75,587 $ 42,331 $ 194,286 $ 272,627 Net (income) attributable to noncontrolling interests in consolidated affiliates (894) (298) (1,469) (872) Distributions on Preferred Units (621) (622) (1,864) (1,866) Net income available for common unitholders $ 74,072 $ 41,411 $ 190,953 $ 269,889 Denominator: Denominator for basic earnings per Common Unit – weighted average units (1) 106,705 106,329 106,546 106,283 Add: Stock options using the treasury method 25 2 17 10 Denominator for diluted earnings per Common Unit – adjusted weighted average units and assumed conversions 106,730 106,331 106,563 106,293 Net income available for common unitholders $ 0.69 $ 0.39 $ 1.79 $ 2.54 __________ (1) Includes all unvested restricted stock where distributions on such restricted stock are non-forfeitable. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The following tables summarize the rental and other revenues and net operating income, the primary industry property-level performance metric used by our chief operating decision maker and which is defined as rental and other revenues less rental property and other expenses, for each of our reportable segments. Three Months Ended Nine Months Ended 2021 2020 2021 2020 Rental and Other Revenues: Office: Atlanta $ 36,672 $ 36,022 $ 108,385 $ 110,518 Charlotte 14,313 8,858 32,364 26,801 Nashville 36,136 34,661 106,873 103,780 Orlando 12,852 11,518 38,141 36,844 Pittsburgh 14,220 14,430 42,787 44,054 Raleigh 42,471 32,037 117,168 95,792 Richmond 12,050 11,878 35,263 35,972 Tampa 23,856 24,575 74,166 75,177 Total Office Segment 192,570 173,979 555,147 528,938 Other 2,925 7,064 9,655 28,058 Total Rental and Other Revenues $ 195,495 $ 181,043 $ 564,802 $ 556,996 Net Operating Income: Office: Atlanta $ 24,157 $ 23,303 $ 71,779 $ 72,387 Charlotte 11,159 6,973 25,446 21,298 Nashville 27,355 25,022 78,172 74,907 Orlando 7,920 6,505 23,414 22,260 Pittsburgh 8,291 8,934 25,591 26,954 Raleigh 31,425 24,037 88,005 71,670 Richmond 7,805 8,204 24,092 25,403 Tampa 15,143 16,829 49,640 51,025 Total Office Segment 133,255 119,807 386,139 365,904 Other 1,673 4,344 5,681 16,879 Total Net Operating Income 134,928 124,151 391,820 382,783 Reconciliation to net income: Depreciation and amortization (66,547) (60,303) (189,423) (180,914) Impairments of real estate assets — — — (1,778) General and administrative expenses (10,350) (9,155) (30,409) (30,169) Interest expense (21,986) (19,886) (60,755) (61,003) Other income/(loss) 424 (3,311) 1,068 (2,654) Gains on disposition of property 38,572 10,012 80,371 163,397 Equity in earnings of unconsolidated affiliates 546 823 1,614 2,965 Net income $ 75,587 $ 42,331 $ 194,286 $ 272,627 September 30, 2021 December 31, 2020 Total Assets: Office: Atlanta $ 999,319 $ 1,011,807 Charlotte 775,852 443,051 Nashville 1,264,025 1,191,219 Orlando 284,361 289,129 Pittsburgh 312,304 313,783 Raleigh 1,276,356 839,831 Richmond 211,263 240,976 Tampa 533,400 556,951 Total Office Segment 5,656,880 4,886,747 Other 97,192 322,670 Total Assets $ 5,754,072 $ 5,209,417 |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Loss Contingency [Abstract] | |
Contingencies | ContingenciesSince early March 2020, efforts to slow the spread of the COVID-19 virus have had a significant impact on the U.S. economy. We continue to follow the policies described in Notes 1 and 2 to our Consolidated Financial Statements contained in our 2020 Annual Report on Form 10-K, including those related to impairments of real estate assets and investments in unconsolidated affiliates, leases and estimates of credit losses on operating lease receivables. While the results of our current analyses did not result in any material adjustments to amounts as of and during the three and nine months ended September 30, 2021, circumstances related to the COVID-19 pandemic may result in recording impairments, lease modifications and credit losses in future periods. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn October 4, 2021, we acquired development land in Nashville for a purchase price, including capitalized acquisition costs, of $35.1 million. |
Description of Business and S_2
Description of Business and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Our Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company’s Consolidated Financial Statements include the Operating Partnership, wholly owned subsidiaries and those entities in which the Company has the controlling interest. The Operating Partnership’s Consolidated Financial Statements include wholly owned subsidiaries and those entities in which the Operating Partnership has the controlling interest. We consolidate joint venture investments, such as interests in partnerships and limited liability companies, when we control the major operating and financial policies of the investment through majority ownership, in our capacity as a general partner or managing member or through some other contractual right. In addition, we consolidate those entities deemed to be variable interest entities in which we are determined to be the primary beneficiary. During the third quarter of 2021, we acquired a portfolio of real estate assets from Preferred Apartment Communities, Inc. (NYSE:APTS) (“PAC”) using special purpose entities owned by a qualified intermediary to facilitate one or more potential Section 1031 reverse exchanges under the Internal Revenue Code. To realize the tax deferrals available under the Section 1031 exchanges, we must complete the Section 1031 exchanges, and take title to the to-be-exchanged buildings within 180 days of the acquisition date. We have determined that these entities are variable interest entities of which we are the primary beneficiary; and therefore, we consolidate these entities. At September 30, 2021, we also have involvement with, and are the primary beneficiary in, an entity that we concluded to be a variable interest entity. (See Note 3). All intercompany transactions and accounts have been eliminated. The unaudited interim consolidated financial statements and accompanying unaudited consolidated financial information, in the opinion of management, contain all adjustments (including normal recurring accruals) necessary for a fair presentation of our financial position, results of operations and cash flows. We have condensed or omitted certain notes and other information from the interim Consolidated Financial Statements presented in this Quarterly Report as permitted by SEC rules and |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the amounts reported in our Consolidated Financial Statements and accompanying notes. Actual results could differ from those estimates. |
Insurance | InsuranceWe are primarily self-insured for health care claims for participating employees. We have stop-loss coverage to limit our exposure to significant claims on a per claim and annual aggregate basis. We determine our liabilities for claims, including incurred but not reported losses, based on all relevant information, including actuarial estimates of claim liabilities. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards The Financial Accounting Standards Board (“FASB”) issued an accounting standards update (“ASU”) that provides temporary optional expedients and exceptions to the guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate (“SOFR”). Entities can elect not to apply certain modification accounting requirements to contracts affected by reference rate reform, if certain criteria are met. An entity that makes this election would not have to remeasure the contracts at the modification date or reassess a previous accounting determination. Entities can also elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform, if certain criteria are met. The guidance in this ASU is optional and may be elected now through December 31, 2022 as reference rate reform activities occur. We will continue to evaluate the impact of this ASU; however, we currently expect to avail ourselves of such optional expedients and exceptions should our modified contracts meet the required criteria. Due to the business disruptions and challenges severely affecting the global economy caused by the COVID-19 pandemic, lessors may provide rent deferrals and other lease concessions to lessees. In April 2020, the FASB staff issued a question and answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of the COVID-19 pandemic. Under existing lease guidance, we would have to determine, on a |
Description of Business and S_3
Description of Business and Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Investment Activities | During the third quarter of 2021, we closed the acquisition of a portfolio of real estate assets from PAC. The portfolio consists of the following assets: Asset Market Submarket/BBD Square Footage 150 Fayetteville Raleigh CBD 560,000 CAPTRUST Towers Raleigh North Hills 300,000 Capitol Towers Charlotte SouthPark 479,000 Morrocroft Centre Charlotte SouthPark 291,000 Galleria 75 Redevelopment Site Atlanta Cumberland/Galleria |
Consolidated Variable Interes_2
Consolidated Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Variable Interest Entities [Abstract] | |
Schedule of Variable Interest Entities | The following table sets forth the assets and liabilities of the Midtown One joint venture included on our Consolidated Balance Sheets: September 30, Net real estate assets $ 52,790 Deferred leasing costs, net $ 1,934 Prepaid expenses and other assets, net $ 170 Accounts payable, accrued expenses and other liabilities $ 1,771 |
Real Estate (Tables)
Real Estate (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Real Estate [Abstract] | |
Asset Acquisition | The following table sets forth a summary of the relative fair value of the material assets acquired and liabilities assumed relating to this acquisition: Amount Recorded at Acquisition Real estate assets $ 593,039 Acquisition-related intangible assets (in deferred financing and leasing costs) $ 61,126 Right of use asset (in prepaid expenses and other assets) $ 8,440 Mortgages and notes payable, net $ (399,527) Acquisition-related intangible liabilities (in accounts payable, accrued expenses and other liabilities) $ (7,174) Lease liability (in accounts payable, accrued expenses and other liabilities) $ (5,310) |
Intangible Assets and Below M_2
Intangible Assets and Below Market Lease Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Total Intangible Assets and Below Market Lease Liabilities | The following table sets forth total intangible assets and acquisition-related below market lease liabilities, net of accumulated amortization: September 30, December 31, Assets: Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets) $ 406,580 $ 361,027 Less accumulated amortization (139,175) (151,698) $ 267,405 $ 209,329 Liabilities (in accounts payable, accrued expenses and other liabilities): Acquisition-related below market lease liabilities $ 60,802 $ 63,748 Less accumulated amortization (30,598) (37,838) $ 30,204 $ 25,910 |
Amortization of Intangible Assets and Below Market Lease Liabilities | The following table sets forth amortization of intangible assets and below market lease liabilities: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization) $ 10,070 $ 8,466 $ 27,267 $ 25,830 Amortization of lease incentives (in rental and other revenues) $ 424 $ 477 $ 1,317 $ 1,396 Amortization of acquisition-related intangible assets (in rental and other revenues) $ 636 $ 273 $ 1,154 $ 882 Amortization of acquisition-related intangible assets (in rental property and other expenses) $ — $ 140 $ — $ 417 Amortization of acquisition-related below market lease liabilities (in rental and other revenues) $ (1,391) $ (1,479) $ (4,241) $ (4,562) |
Scheduled Future Amortization of Intangible Assets and Below Market Lease Liabilities | The following table sets forth scheduled future amortization of intangible assets and below market lease liabilities: Amortization of Deferred Leasing Costs and Acquisition-Related Intangible Assets (in Depreciation and Amortization) Amortization of Lease Incentives (in Rental and Other Revenues) Amortization of Acquisition-Related Intangible Assets (in Rental and Other Revenues) Amortization of Acquisition-Related Below Market Lease Liabilities (in Rental and Other Revenues) October 1 through December 31, 2021 $ 11,669 $ 381 $ 777 $ (1,420) 2022 42,867 1,484 2,986 (5,290) 2023 38,076 1,414 2,829 (4,868) 2024 33,874 1,269 2,573 (4,129) 2025 26,988 1,195 1,667 (2,594) Thereafter 86,170 5,056 6,130 (11,903) $ 239,644 $ 10,799 $ 16,962 $ (30,204) Weighted average remaining amortization periods as of September 30, 2021 (in years) 7.8 8.8 7.8 8.4 |
Total Intangible Assets and Below Market Lease Liabilities from Acquisition Activity | The following table sets forth the intangible assets acquired and below market lease liabilities assumed as a result of the acquisition of real estate assets from PAC and our joint venture partner's 75.0% interest in the Forum: Acquisition-Related Intangible Assets (amortized in Rental and Other Revenues) Acquisition-Related Intangible Assets (amortized in Depreciation and Amortization) Acquisition-Related Below Market Lease Liabilities (amortized in Rental and Other Revenues) Amount recorded at acquisition $ 13,824 $ 84,298 $ (8,535) Weighted average remaining amortization periods as of September 30, 2021 (in years) 7.3 7.2 8.2 |
Mortgages and Notes Payable (Ta
Mortgages and Notes Payable (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Consolidated Mortgages and Notes Payable | The following table sets forth our mortgages and notes payable: September 30, December 31, Secured indebtedness $ 493,887 $ 93,350 Unsecured indebtedness 2,464,823 2,390,652 Less-unamortized debt issuance costs (15,808) (13,981) Total mortgages and notes payable, net $ 2,942,902 $ 2,470,021 |
Schedule of Long-term Debt Instruments Assumed | The following table sets forth the balances of these assumed mortgages and related unamortized debt issuance costs included in mortgages and notes payable, net on our Consolidated Balance Sheets as of September 30, 2021: Balance at September 30, 2021 4.27% (3.61% effective rate) mortgage loan due 08/2028 $ 116,374 3.61% (3.19% effective rate) mortgage loan due 08/2029 85,049 3.40% (3.50% effective rate) mortgage loan due 04/2033 69,409 4.60% (3.73% effective rate) mortgage loan due 01/2037 131,221 Less-unamortized debt issuance costs (3,410) Total $ 398,643 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments, Fair Value | The following table sets forth the fair value of our derivatives: September 30, December 31, Derivatives: Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities: Interest rate swaps $ 263 $ 846 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following table sets forth the effect of our cash flow hedges on accumulated other comprehensive loss and interest expense: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Derivatives Designated as Cash Flow Hedges: Amount of unrealized gains/(losses) recognized in accumulated other comprehensive loss on derivatives: Interest rate swaps $ (6) $ 5 $ (17) $ (1,231) Amount of losses reclassified out of accumulated other comprehensive loss into interest expense: Interest rate swaps $ 129 $ 122 $ 377 $ 125 |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) - Highwoods Properties, Inc. [Member] | 9 Months Ended |
Sep. 30, 2021 | |
Noncontrolling Interest [Line Items] | |
Noncontrolling Interests in the Operating Partnership | The following table sets forth the Company’s noncontrolling interests in the Operating Partnership: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Beginning noncontrolling interests in the Operating Partnership $ 128,180 $ 106,103 $ 112,499 $ 133,216 Adjustment of noncontrolling interests in the Operating Partnership to fair value (4,262) (10,430) 11,072 (46,955) Issuances of Common Units — — — 6,163 Conversions of Common Units to Common Stock (234) — (278) — Net income attributable to noncontrolling interests in the Operating Partnership 1,967 1,107 5,084 7,084 Distributions to noncontrolling interests in the Operating Partnership (1,418) (1,364) (4,144) (4,092) Total noncontrolling interests in the Operating Partnership $ 124,233 $ 95,416 $ 124,233 $ 95,416 |
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership | The following table sets forth net income available for common stockholders and transfers from the Company’s noncontrolling interests in the Operating Partnership: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Net income available for common stockholders $ 72,105 $ 40,304 $ 185,869 $ 262,805 Increase in additional paid in capital from conversions of Common Units to Common Stock 234 — 278 — Issuances of Common Units — — — (6,163) Change from net income available for common stockholders and transfers from noncontrolling interests $ 72,339 $ 40,304 $ 186,147 $ 256,642 |
Disclosure About Fair Value o_2
Disclosure About Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements of Assets, Liabilities and Noncontrolling Interests | The following table sets forth our assets and liabilities and the Company’s noncontrolling interests in the Operating Partnership that are measured or disclosed at fair value within the fair value hierarchy: Level 1 Level 2 Total Quoted Prices Significant Observable Inputs Fair Value at September 30, 2021: Assets: Mortgages and notes receivable, at fair value (1) $ 1,247 $ — $ 1,247 Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 2,796 2,796 — Total Assets $ 4,043 $ 2,796 $ 1,247 Noncontrolling Interests in the Operating Partnership $ 124,233 $ 124,233 $ — Liabilities: Mortgages and notes payable, net, at fair value (1) $ 3,089,765 $ — $ 3,089,765 Interest rate swaps (in accounts payable, accrued expenses and other liabilities) 263 — 263 Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 2,796 2,796 — Total Liabilities $ 3,092,824 $ 2,796 $ 3,090,028 Fair Value at December 31, 2020: Assets: Mortgages and notes receivable, at fair value (1) $ 1,341 $ — $ 1,341 Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 2,573 2,573 — Total Assets $ 3,914 $ 2,573 $ 1,341 Noncontrolling Interests in the Operating Partnership $ 112,499 $ 112,499 $ — Liabilities: Mortgages and notes payable, net, at fair value (1) $ 2,639,163 $ — $ 2,639,163 Interest rate swaps (in accounts payable, accrued expenses and other liabilities) 846 — 846 Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 2,573 2,573 — Total Liabilities $ 2,642,582 $ 2,573 $ 2,640,009 __________ |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The following table sets forth the components of accumulated other comprehensive loss: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Cash flow hedges: Beginning balance $ (1,225) $ (1,704) $ (1,462) $ (471) Unrealized gains/(losses) on cash flow hedges (6) 5 (17) (1,231) Amortization of cash flow hedges (1) 129 122 377 125 Total accumulated other comprehensive loss $ (1,102) $ (1,577) $ (1,102) $ (1,577) __________ (1) Amounts reclassified out of accumulated other comprehensive loss into interest expense. |
Real Estate and Other Assets _2
Real Estate and Other Assets Held For Sale (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Real Estate and Other Assets of the Properties Classified As Held For Sale | The following table sets forth the assets held for sale at September 30, 2021 and December 31, 2020, which are considered non-core: September 30, December 31, Assets: Land $ 6,723 $ 2,612 Buildings and tenant improvements 102,285 12,238 Land held for development 3,482 — Less-accumulated depreciation (53,121) (3,577) Net real estate assets 59,369 11,273 Accrued straight-line rents receivable 7,037 — Deferred leasing costs, net 3,285 87 Prepaid expenses and other assets, net 115 — Real estate and other assets, net, held for sale $ 69,806 $ 11,360 |
Earnings Per Share and Per Un_2
Earnings Per Share and Per Unit (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share and Per Unit Basic and Diluted [Line Items] | |
Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share of the Company: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Earnings per Common Share - basic: Numerator: Net income $ 75,587 $ 42,331 $ 194,286 $ 272,627 Net (income) attributable to noncontrolling interests in the Operating Partnership (1,967) (1,107) (5,084) (7,084) Net (income) attributable to noncontrolling interests in consolidated affiliates (894) (298) (1,469) (872) Dividends on Preferred Stock (621) (622) (1,864) (1,866) Net income available for common stockholders $ 72,105 $ 40,304 $ 185,869 $ 262,805 Denominator: Denominator for basic earnings per Common Share – weighted average shares (1) 104,277 103,896 104,117 103,865 Net income available for common stockholders $ 0.69 $ 0.39 $ 1.79 $ 2.53 Earnings per Common Share - diluted: Numerator: Net income $ 75,587 $ 42,331 $ 194,286 $ 272,627 Net (income) attributable to noncontrolling interests in consolidated affiliates (894) (298) (1,469) (872) Dividends on Preferred Stock (621) (622) (1,864) (1,866) Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership $ 74,072 $ 41,411 $ 190,953 $ 269,889 Denominator: Denominator for basic earnings per Common Share – weighted average shares (1) 104,277 103,896 104,117 103,865 Add: Stock options using the treasury method 25 2 17 10 Noncontrolling interests Common Units 2,837 2,842 2,838 2,827 Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions 107,139 106,740 106,972 106,702 Net income available for common stockholders $ 0.69 $ 0.39 $ 1.79 $ 2.53 __________ |
Highwoods Realty Limited Partnership [Member] | |
Earnings Per Share and Per Unit Basic and Diluted [Line Items] | |
Earnings Per Unit | The following table sets forth the computation of basic and diluted earnings per unit of the Operating Partnership: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Earnings per Common Unit - basic: Numerator: Net income $ 75,587 $ 42,331 $ 194,286 $ 272,627 Net (income) attributable to noncontrolling interests in consolidated affiliates (894) (298) (1,469) (872) Distributions on Preferred Units (621) (622) (1,864) (1,866) Net income available for common unitholders $ 74,072 $ 41,411 $ 190,953 $ 269,889 Denominator: Denominator for basic earnings per Common Unit – weighted average units (1) 106,705 106,329 106,546 106,283 Net income available for common unitholders $ 0.69 $ 0.39 $ 1.79 $ 2.54 Earnings per Common Unit - diluted: Numerator: Net income $ 75,587 $ 42,331 $ 194,286 $ 272,627 Net (income) attributable to noncontrolling interests in consolidated affiliates (894) (298) (1,469) (872) Distributions on Preferred Units (621) (622) (1,864) (1,866) Net income available for common unitholders $ 74,072 $ 41,411 $ 190,953 $ 269,889 Denominator: Denominator for basic earnings per Common Unit – weighted average units (1) 106,705 106,329 106,546 106,283 Add: Stock options using the treasury method 25 2 17 10 Denominator for diluted earnings per Common Unit – adjusted weighted average units and assumed conversions 106,730 106,331 106,563 106,293 Net income available for common unitholders $ 0.69 $ 0.39 $ 1.79 $ 2.54 __________ (1) Includes all unvested restricted stock where distributions on such restricted stock are non-forfeitable. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | The following tables summarize the rental and other revenues and net operating income, the primary industry property-level performance metric used by our chief operating decision maker and which is defined as rental and other revenues less rental property and other expenses, for each of our reportable segments. Three Months Ended Nine Months Ended 2021 2020 2021 2020 Rental and Other Revenues: Office: Atlanta $ 36,672 $ 36,022 $ 108,385 $ 110,518 Charlotte 14,313 8,858 32,364 26,801 Nashville 36,136 34,661 106,873 103,780 Orlando 12,852 11,518 38,141 36,844 Pittsburgh 14,220 14,430 42,787 44,054 Raleigh 42,471 32,037 117,168 95,792 Richmond 12,050 11,878 35,263 35,972 Tampa 23,856 24,575 74,166 75,177 Total Office Segment 192,570 173,979 555,147 528,938 Other 2,925 7,064 9,655 28,058 Total Rental and Other Revenues $ 195,495 $ 181,043 $ 564,802 $ 556,996 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Net Operating Income: Office: Atlanta $ 24,157 $ 23,303 $ 71,779 $ 72,387 Charlotte 11,159 6,973 25,446 21,298 Nashville 27,355 25,022 78,172 74,907 Orlando 7,920 6,505 23,414 22,260 Pittsburgh 8,291 8,934 25,591 26,954 Raleigh 31,425 24,037 88,005 71,670 Richmond 7,805 8,204 24,092 25,403 Tampa 15,143 16,829 49,640 51,025 Total Office Segment 133,255 119,807 386,139 365,904 Other 1,673 4,344 5,681 16,879 Total Net Operating Income 134,928 124,151 391,820 382,783 Reconciliation to net income: Depreciation and amortization (66,547) (60,303) (189,423) (180,914) Impairments of real estate assets — — — (1,778) General and administrative expenses (10,350) (9,155) (30,409) (30,169) Interest expense (21,986) (19,886) (60,755) (61,003) Other income/(loss) 424 (3,311) 1,068 (2,654) Gains on disposition of property 38,572 10,012 80,371 163,397 Equity in earnings of unconsolidated affiliates 546 823 1,614 2,965 Net income $ 75,587 $ 42,331 $ 194,286 $ 272,627 |
Reconciliation of Assets from Segment to Consolidated | September 30, 2021 December 31, 2020 Total Assets: Office: Atlanta $ 999,319 $ 1,011,807 Charlotte 775,852 443,051 Nashville 1,264,025 1,191,219 Orlando 284,361 289,129 Pittsburgh 312,304 313,783 Raleigh 1,276,356 839,831 Richmond 211,263 240,976 Tampa 533,400 556,951 Total Office Segment 5,656,880 4,886,747 Other 97,192 322,670 Total Assets $ 5,754,072 $ 5,209,417 |
Description of Business and S_4
Description of Business and Significant Accounting Policies (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021USD ($)ft²anumberOfBuildingsnumberOfLoansshares | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)ft²anumberOfBuildingsnumberOfLoans$ / sharesshares | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Description of Business [Abstract] | |||||
Rentable square feet of commercial real estate properties (in sq feet) | ft² | 29,000,000 | 29,000,000 | |||
Undeveloped land suitable for future development (in acres) | a | 300 | 300 | |||
Net proceeds of Common Stock sold during the period | $ 7,508 | $ 387 | $ 13,405 | $ 1,788 | |
Self insurance liability | 500 | 500 | |||
Deferred rents included in accounts receivable | 1,200 | 1,200 | |||
PAC Portfolio Acquisition [Member] | |||||
Description of Business [Abstract] | |||||
Acquisition purchase price | 653,600 | ||||
Capitalized acquisition costs | $ 4,500 | $ 4,500 | |||
Number of loans assumed in acquisition | numberOfLoans | 4 | 4 | |||
Fair value of debt assumed from the acquisition | $ 403,000 | $ 403,000 | |||
Effective interest rate of secured debt assumed from the acquisition | 3.54% | 3.54% | |||
Term of debt instrument | 10 years 8 months 12 days | ||||
Deferred financing fees | $ 3,500 | $ 3,500 | |||
150 Fayetteville Asset [Member] | |||||
Description of Business [Abstract] | |||||
Rentable square feet of commercial real estate properties (in sq feet) | ft² | 560,000 | 560,000 | |||
CAPTRUST Towers Asset [Member] | |||||
Description of Business [Abstract] | |||||
Rentable square feet of commercial real estate properties (in sq feet) | ft² | 300,000 | 300,000 | |||
Capitol Towers Asset [Member] | |||||
Description of Business [Abstract] | |||||
Rentable square feet of commercial real estate properties (in sq feet) | ft² | 479,000 | 479,000 | |||
Morrocroft Centre Asset [Member] | |||||
Description of Business [Abstract] | |||||
Rentable square feet of commercial real estate properties (in sq feet) | ft² | 291,000 | 291,000 | |||
Highwoods Properties, Inc. [Member] | |||||
Description of Business [Abstract] | |||||
Common Units of partnership owned by the Company (in shares) | shares | 104,000,000 | 104,000,000 | |||
Percentage of ownership of Common Units (in hundredths) | 97.40% | 97.40% | 97.30% | ||
Common Units redeemed for a like number of common shares of stock (in shares) | shares | 6,238 | ||||
Highwoods Properties, Inc. [Member] | ATM Equity Offering | |||||
Description of Business [Abstract] | |||||
Net proceeds of Common Stock sold during the period | $ 13,600 | ||||
Number of Common Stock sold during the period (in shares) | shares | 299,360 | ||||
Average price of Common Stock sold during the period (in dollars per share) | $ / shares | $ 45.96 | ||||
Highwoods Properties, Inc. [Member] | ATM Equity Offering | Maximum [Member] | |||||
Description of Business [Abstract] | |||||
Net proceeds of Common Stock sold during the period | $ 300,000 | ||||
Highwoods Realty Limited Partnership [Member] | |||||
Description of Business [Abstract] | |||||
Common Units of partnership not owned by the Company (in shares) | shares | 2,800,000 | 2,800,000 | |||
Variable Interest Entity, Primary Beneficiary [Member] | |||||
Description of Business [Abstract] | |||||
VIE like-kind exchange agreement (in days) | 180 days | ||||
Variable Interest Entity, Primary Beneficiary [Member] | Minimum [Member] | |||||
Description of Business [Abstract] | |||||
Number of 1031 transactions (minimum) | numberOfBuildings | 1 | 1 |
Leases ASC 842 (Details)
Leases ASC 842 (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Lessor Disclosure [Abstract] | ||||
Rental and other revenues related to operating lease payments | $ 192.3 | $ 178.9 | $ 554.6 | $ 549.5 |
Variable lease income | 13.7 | $ 12.8 | 42.7 | $ 42.7 |
Lessee Disclosure [Abstract] | ||||
Finance Lease, Liability | $ 5.3 | $ 5.3 | ||
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities | ||
Finance lease, right of use asset | $ 5.3 | $ 5.3 | ||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Prepaid expenses and other assets, net of accumulated depreciation of $20,891 and $21,154, respectively | Prepaid expenses and other assets, net of accumulated depreciation of $20,891 and $21,154, respectively | ||
Finance lease discount rate (in hundredths) | 2.60% | 2.60% | ||
Additional right of use asset | $ 3.1 | $ 3.1 | ||
Minimum [Member] | ||||
Lessor Disclosure [Abstract] | ||||
Operating leases, term of leases (in years) | 3 years | 3 years | ||
Maximum [Member] | ||||
Lessor Disclosure [Abstract] | ||||
Operating leases, term of leases (in years) | 10 years | 10 years |
Consolidated Variable Interes_3
Consolidated Variable Interest Entities (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2021USD ($) | Dec. 31, 2019USD ($)ft² | Dec. 31, 2020USD ($) | |
Consolidated Variable Interest Entities [Abstract] | |||
Total VIE assets | $ 5,754,072 | $ 5,209,417 | |
Total VIE liabilities | 3,227,854 | 2,738,748 | |
Assets and liabilities of consolidated variable interest entity [Abstract] | |||
Net real estate assets | 5,018,689 | 4,421,285 | |
Deferred leasing costs, net | 267,405 | 209,329 | |
Prepaid expense and other assets, net | 77,454 | 62,885 | |
Accounts payable, accrued expenses and other liabilities | 284,952 | $ 268,727 | |
PAC Acquisition Variable Interest Entities [Member] | |||
Consolidated Variable Interest Entities [Abstract] | |||
Total VIE assets | 669,600 | ||
Total VIE liabilities | 418,100 | ||
Total VIE cash flows from operations | 5,100 | ||
Consolidated Variable Interest Entities [Member] | |||
Consolidated Variable Interest Entities [Abstract] | |||
Rentable square feet of office property under development (in sq feet) | ft² | 150,000 | ||
Total anticipated development costs | $ 71,300 | ||
Contribution of cash to acquire interest in consolidated joint venture | $ 20,000 | ||
Interest in consolidated joint venture (in hundredths) | 80.00% | ||
Partner's contribution of property to acquire interest in consolidated joint venture | $ 5,000 | ||
Advance to consolidated affiliate | $ 46,300 | ||
Amount of loan funded to affiliate | 25,900 | ||
Assets and liabilities of consolidated variable interest entity [Abstract] | |||
Net real estate assets | 52,790 | ||
Deferred leasing costs, net | 1,934 | ||
Prepaid expense and other assets, net | 170 | ||
Accounts payable, accrued expenses and other liabilities | $ 1,771 | ||
Consolidated Variable Interest Entities [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Consolidated Variable Interest Entities [Abstract] | |||
Variable interest rate basis | LIBOR | ||
Interest rate, basis spread (in hundredths) | 2.50% | ||
Variable Interest Entity [Member] | |||
Consolidated Variable Interest Entities [Abstract] | |||
Partner's interest in consolidated joint venture (in hundredths) | 20.00% | ||
Variable Interest Entity [Member] | Consolidated Variable Interest Entities [Member] | |||
Consolidated Variable Interest Entities [Abstract] | |||
Partner's interest in consolidated joint venture (in hundredths) | 20.00% |
Real Estate Asset Acquisition (
Real Estate Asset Acquisition (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Asset Acquisition, Purchase Price Allocation [Abstract] | |
Right of use asset (in prepaid expenses and other assets) | $ 5,300 |
Lease liability (in accounts payable, accrued expenses and other liabilities) | (5,300) |
PAC Portfolio Acquisition [Member] | |
Asset Acquisition, Purchase Price Allocation [Abstract] | |
Real estate assets | 593,039 |
Acquisition-related intangible assets (in deferred leasing costs) | 61,126 |
Right of use asset (in prepaid expenses and other assets) | 8,440 |
Mortgages and notes payable, net | (399,527) |
Acquisition-related intangible liabilities (in accounts payable, accrued expenses and other liabilities) | (7,174) |
Lease liability (in accounts payable, accrued expenses and other liabilities) | $ (5,310) |
Real Estate Assets (Details)
Real Estate Assets (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021USD ($)ft²numberOfOfficeBuildings | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($)ft²numberOfBuildings | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)ft²numberOfOfficeBuildings | Sep. 30, 2020USD ($) | |
Acquisitions [Abstract] | ||||||
Rentable square feet of commercial real estate properties (in sq feet) | ft² | 29,000,000 | 29,000,000 | ||||
Dispositions [Abstract] | ||||||
Gains on disposition of property | $ 38,572 | $ 10,012 | $ 80,371 | $ 163,397 | ||
Nashville TN Land Acquisitions [Member] | ||||||
Acquisitions [Abstract] | ||||||
Acquisition purchase price | $ 22,900 | $ 16,100 | ||||
Expected term of purchase price payment (in years) | 2 years | |||||
Forum Buildings Acquisition [Member] | ||||||
Acquisitions [Abstract] | ||||||
Acquisition purchase price | $ 131,300 | |||||
Percentage of partner's interest in asset acquired (in hundredths) | 75.00% | |||||
Number of buildings acquired | numberOfBuildings | 5 | |||||
Rentable square feet of commercial real estate properties (in sq feet) | ft² | 636,000 | |||||
Dispositions [Abstract] | ||||||
Percentage of equity interest in joint venture (in hundredths) | 25.00% | |||||
2021 Dispositions | ||||||
Dispositions [Abstract] | ||||||
Number of buildings sold | numberOfOfficeBuildings | 2 | 2 | ||||
Sale price of real estate | $ 119,700 | $ 43,000 | $ 30,700 | |||
Closing credits excluded for unfunded building and/or tenant improvements | 4,400 | 900 | ||||
Gains on disposition of property | $ 37,300 | $ 22,900 | $ 18,900 | |||
Markel Land Disposition [Member] | ||||||
Dispositions [Abstract] | ||||||
Percentage of equity interest in joint venture (in hundredths) | 50.00% | 50.00% | ||||
Joint venture sale price of real estate | $ 3,000 | |||||
Joint venture gain on disposition of property | $ 1,300 |
Intangible Assets and Below M_3
Intangible Assets and Below Market Lease Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Assets: | |||||
Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets) | $ 406,580 | $ 406,580 | $ 361,027 | ||
Deferred leasing costs, accumulated amortization | (139,175) | (139,175) | (151,698) | ||
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | 267,405 | 267,405 | 209,329 | ||
Liabilities (in accounts payable, accrued expenses and other liabilities): | |||||
Acquisition-related below market lease liabilities, gross | 60,802 | 60,802 | 63,748 | ||
Acquisition-related below market lease liabilities, accumulated amortization | (30,598) | (30,598) | (37,838) | ||
Acquisition-related below market lease liabilities, net | 30,204 | 30,204 | $ 25,910 | ||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||||
Acquired intangible assets (amortized in rental and other revenue) | 13,824 | 13,824 | |||
Acquired intangible assets (amortized in depreciation and amortization) | 84,298 | 84,298 | |||
Assumed below market lease liabilities (amortized in rental and other revenue) | (8,535) | (8,535) | |||
Deferred Leasing Costs and Acquisition-Related Intangible Assets (in Depreciation and Amortization) [Member] | |||||
Assets: | |||||
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | 239,644 | 239,644 | |||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||||
Amortization of intangible assets | 10,070 | $ 8,466 | 27,267 | $ 25,830 | |
Lease Incentives (in Rental and Other Revenues) [Member] | |||||
Assets: | |||||
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | 10,799 | 10,799 | |||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||||
Amortization of intangible assets | 424 | 477 | 1,317 | 1,396 | |
Acquisition-Related Intangible Assets (in Rental and Other Revenues) [Member] | |||||
Assets: | |||||
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | 16,962 | 16,962 | |||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||||
Amortization of intangible assets | 636 | 273 | 1,154 | 882 | |
Acquisition-Related Intangible Assets (in Rental Property and Other Expenses) [Member] | |||||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||||
Amortization of intangible assets | 0 | 140 | 0 | 417 | |
Acquisition-Related Below Market Lease Liabilities (in Rental and Other Revenues) [Member] | |||||
Liabilities (in accounts payable, accrued expenses and other liabilities): | |||||
Acquisition-related below market lease liabilities, net | 30,204 | 30,204 | |||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||||
Amortization of acquisition-related below market lease liabilities | $ (1,391) | $ (1,479) | $ (4,241) | $ (4,562) |
Intangible Assets and Below M_4
Intangible Assets and Below Market Lease Liabilities - Scheduled Future Amortization (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Scheduled future amortization of intangible assets [Abstract] | ||
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | $ 267,405 | $ 209,329 |
Scheduled future amortization of below market lease liabilities [Abstract] | ||
Total scheduled future amortization of acquisition-related below market lease liabilities | (30,204) | $ (25,910) |
Deferred Leasing Costs and Acquisition-Related Intangible Assets (in Depreciation and Amortization) [Member] | ||
Scheduled future amortization of intangible assets [Abstract] | ||
October 1 through December 31, 2021 | 11,669 | |
2022 | 42,867 | |
2023 | 38,076 | |
2024 | 33,874 | |
2025 | 26,988 | |
Thereafter | 86,170 | |
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | $ 239,644 | |
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract] | ||
Finite-lived intangible assets, average useful life (in years) | 7 years 9 months 18 days | |
Acquired intangible assets, weighted average useful life (in years) | 7 years 2 months 12 days | |
Lease Incentives (in Rental and Other Revenues) [Member] | ||
Scheduled future amortization of intangible assets [Abstract] | ||
October 1 through December 31, 2021 | $ 381 | |
2022 | 1,484 | |
2023 | 1,414 | |
2024 | 1,269 | |
2025 | 1,195 | |
Thereafter | 5,056 | |
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | $ 10,799 | |
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract] | ||
Finite-lived intangible assets, average useful life (in years) | 8 years 9 months 18 days | |
Acquisition-Related Intangible Assets (in Rental and Other Revenues) [Member] | ||
Scheduled future amortization of intangible assets [Abstract] | ||
October 1 through December 31, 2021 | $ 777 | |
2022 | 2,986 | |
2023 | 2,829 | |
2024 | 2,573 | |
2025 | 1,667 | |
Thereafter | 6,130 | |
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | $ 16,962 | |
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract] | ||
Finite-lived intangible assets, average useful life (in years) | 7 years 9 months 18 days | |
Acquired intangible assets, weighted average useful life (in years) | 7 years 3 months 18 days | |
Acquisition-Related Below Market Lease Liabilities (in Rental and Other Revenues) [Member] | ||
Scheduled future amortization of below market lease liabilities [Abstract] | ||
October 1 through December 31, 2021 | $ (1,420) | |
2022 | (5,290) | |
2023 | (4,868) | |
2024 | (4,129) | |
2025 | (2,594) | |
Thereafter | (11,903) | |
Total scheduled future amortization of acquisition-related below market lease liabilities | $ (30,204) | |
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract] | ||
Finite-lived below market lease liabilities, average useful life (in years) | 8 years 4 months 24 days | |
Assumed finite-lived below market lease liabilities, weighted average useful life (in years) | 8 years 2 months 12 days |
Mortgages and Notes Payable (De
Mortgages and Notes Payable (Details) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2021USD ($)numberOfLoans | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($)extension | Sep. 30, 2021USD ($)numberOfLoans | Sep. 30, 2020USD ($) | Oct. 19, 2021USD ($) | Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | |||||||
Mortgages and notes payable | $ 2,942,902,000 | $ 2,942,902,000 | $ 2,470,021,000 | ||||
Unamortized debt issuance costs | (15,808,000) | (15,808,000) | (13,981,000) | ||||
Loss on debt extinguishment | (134,000) | $ (3,671,000) | |||||
Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity on credit facility | $ 750,000,000 | 600,000,000 | |||||
Additional borrowing capacity on revolving credit facility | $ 550,000,000 | ||||||
Number of additional extensions | extension | 2 | ||||||
Term of optional extension | 6 months | ||||||
Deferred financing fees | $ 4,800,000 | ||||||
Loss on debt extinguishment | $ (100,000) | ||||||
Amount outstanding on revolving credit facility | 135,000,000 | 135,000,000 | |||||
Outstanding letters of credit on revolving credit facility | 100,000 | 100,000 | |||||
Unused borrowing capacity on revolving credit facility | 614,900,000 | 614,900,000 | |||||
PAC Portfolio Acquisition [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Unamortized debt issuance costs | $ (3,410,000) | $ (3,410,000) | |||||
Number of loans assumed in acquisition | numberOfLoans | 4 | 4 | |||||
Unsecured Bridge Facility Due 2022 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity on credit facility | $ 200,000,000 | $ 200,000,000 | |||||
Term of optional extension | 6 months | ||||||
Deferred financing fees | $ 1,000,000 | 1,000,000 | |||||
Amount outstanding on revolving credit facility | $ 88,000,000 | 88,000,000 | |||||
Term of debt instrument | 6 months | ||||||
3.20% (3.363% effective rate) Notes due 2021 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Loss on debt extinguishment | $ (100,000) | ||||||
Early repayment of debt | $ 150,000,000 | ||||||
Stated interest rate (in hundredths) | 3.20% | ||||||
Secured indebtedness [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Mortgages and notes payable | $ 493,887,000 | 493,887,000 | 93,350,000 | ||||
Aggregate undepreciated book value of secured real estate assets | 721,000,000 | 721,000,000 | |||||
Secured indebtedness [Member] | PAC Portfolio Acquisition [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Mortgages and notes payable | 398,643,000 | 398,643,000 | |||||
Secured indebtedness [Member] | 4.27% (3.61% effective rate) mortgage loan due 08/2028 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Mortgages and notes payable | $ 116,374,000 | $ 116,374,000 | |||||
Effective interest rate (in hundredths) | 3.61% | 3.61% | |||||
Secured indebtedness [Member] | 3.61% (3.19% effective rate) mortgage loan due 08/2029 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Mortgages and notes payable | $ 85,049,000 | $ 85,049,000 | |||||
Effective interest rate (in hundredths) | 3.19% | 3.19% | |||||
Secured indebtedness [Member] | 3.40% (3.50% effective rate) mortgage loan due 04/2033 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Mortgages and notes payable | $ 69,409,000 | $ 69,409,000 | |||||
Effective interest rate (in hundredths) | 3.50% | 3.50% | |||||
Secured indebtedness [Member] | 4.60% (3.73% effective rate) mortgage loan due 01/2037 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Mortgages and notes payable | $ 131,221,000 | $ 131,221,000 | |||||
Effective interest rate (in hundredths) | 3.73% | 3.73% | |||||
Unsecured indebtedness [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Mortgages and notes payable | $ 2,464,823,000 | $ 2,464,823,000 | $ 2,390,652,000 | ||||
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Facility interest rate basis | LIBOR | ||||||
Interest rate, basis spread (in hundredths) | 0.90% | ||||||
Annual facility fee (in hundredths) | 0.20% | ||||||
London Interbank Offered Rate (LIBOR) [Member] | Unsecured Bridge Facility Due 2022 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Facility interest rate basis | LIBOR | ||||||
Interest rate, basis spread (in hundredths) | 0.85% | ||||||
Annual facility fee (in hundredths) | 0.20% | ||||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Amount outstanding on revolving credit facility | $ 155,000,000 | ||||||
Outstanding letters of credit on revolving credit facility | 100,000 | ||||||
Unused borrowing capacity on revolving credit facility | 594,900,000 | ||||||
Subsequent Event [Member] | Unsecured Bridge Facility Due 2022 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Amount outstanding on revolving credit facility | $ 88,000,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||
Expected net increase to interest expense | $ 100 | $ 100 | |||
Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities: | |||||
Interest rate swaps | 263 | 263 | $ 846 | ||
Amount of unrealized gains/(losses) recognized in accumulated other comprehensive loss on derivatives: | |||||
Interest rate swaps | (6) | $ 5 | (17) | $ (1,231) | |
Amount of losses reclassified out of accumulated other comprehensive loss into interest expense: | |||||
Interest rate swaps | $ 129 | $ 122 | $ 377 | $ 125 |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Noncontrolling Interests in the Operating Partnership [Roll Forward] | ||||
Beginning noncontrolling interests in the Operating Partnership | $ 112,499 | |||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | $ (4,262) | $ (10,430) | 11,072 | $ (46,955) |
Conversions of Common Units to Common Stock | (234) | (278) | 0 | |
Net income attributable to noncontrolling interests in the Operating Partnership | 1,967 | 1,107 | 5,084 | 7,084 |
Distributions to noncontrolling interests in the Operating Partnership | (4,144) | (4,092) | ||
Total noncontrolling interests in the Operating Partnership | 124,233 | 124,233 | ||
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership [Abstract] | ||||
Net income available for common stockholders | 72,105 | 40,304 | 185,869 | 262,805 |
Highwoods Properties, Inc. [Member] | ||||
Noncontrolling Interests in the Operating Partnership [Roll Forward] | ||||
Beginning noncontrolling interests in the Operating Partnership | 128,180 | 106,103 | 112,499 | 133,216 |
Adjustment of noncontrolling interests in the Operating Partnership to fair value | (4,262) | (10,430) | 11,072 | (46,955) |
Issuances of Common Units | 0 | 0 | 0 | 6,163 |
Conversions of Common Units to Common Stock | (234) | 0 | (278) | 0 |
Net income attributable to noncontrolling interests in the Operating Partnership | 1,967 | 1,107 | 5,084 | 7,084 |
Distributions to noncontrolling interests in the Operating Partnership | (1,418) | (1,364) | (4,144) | (4,092) |
Total noncontrolling interests in the Operating Partnership | 124,233 | 95,416 | 124,233 | 95,416 |
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership [Abstract] | ||||
Net income available for common stockholders | 72,105 | 40,304 | 185,869 | 262,805 |
Increase in additional paid in capital from conversions of Common Units to Common Stock | 234 | 0 | 278 | 0 |
Issuances of Common Units | 0 | 0 | 0 | (6,163) |
Change from net income available for common stockholders and transfers from noncontrolling interests | $ 72,339 | $ 40,304 | $ 186,147 | $ 256,642 |
Richmond Joint Venture [Member] | ||||
Noncontrolling Interests in Consolidated Affiliates [Abstract] | ||||
Consolidated joint venture, partner's interest (in hundredths) | 50.00% | 50.00% | ||
Midtown One Joint Venture [Member] | ||||
Noncontrolling Interests in Consolidated Affiliates [Abstract] | ||||
Consolidated joint venture, partner's interest (in hundredths) | 20.00% | 20.00% |
Disclosure About Fair Value o_3
Disclosure About Fair Value of Financial Instruments - Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets: | ||
Mortgages and notes receivable, at fair value | $ 1,247 | $ 1,341 |
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) | 2,796 | 2,573 |
Total Assets | 4,043 | 3,914 |
Liabilities: | ||
Mortgages and notes payable, net, at fair value | 3,089,765 | 2,639,163 |
Interest rate swaps (in accounts payable, accrued expenses and other liabilities) | 263 | 846 |
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 2,796 | 2,573 |
Total Liabilities | 3,092,824 | 2,642,582 |
Level 1 [Member] | ||
Assets: | ||
Mortgages and notes receivable, at fair value | 0 | 0 |
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) | 2,796 | 2,573 |
Total Assets | 2,796 | 2,573 |
Liabilities: | ||
Mortgages and notes payable, net, at fair value | 0 | 0 |
Interest rate swaps (in accounts payable, accrued expenses and other liabilities) | 0 | 0 |
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 2,796 | 2,573 |
Total Liabilities | 2,796 | 2,573 |
Level 2 [Member] | ||
Assets: | ||
Mortgages and notes receivable, at fair value | 1,247 | 1,341 |
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) | 0 | 0 |
Total Assets | 1,247 | 1,341 |
Liabilities: | ||
Mortgages and notes payable, net, at fair value | 3,089,765 | 2,639,163 |
Interest rate swaps (in accounts payable, accrued expenses and other liabilities) | 263 | 846 |
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 0 | 0 |
Total Liabilities | 3,090,028 | 2,640,009 |
Highwoods Properties, Inc. [Member] | ||
Assets: | ||
Noncontrolling Interests in the Operating Partnership | 124,233 | 112,499 |
Highwoods Properties, Inc. [Member] | Level 1 [Member] | ||
Assets: | ||
Noncontrolling Interests in the Operating Partnership | 124,233 | 112,499 |
Highwoods Properties, Inc. [Member] | Level 2 [Member] | ||
Assets: | ||
Noncontrolling Interests in the Operating Partnership | $ 0 | $ 0 |
Share-Based Payments (Details)
Share-Based Payments (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 1,900 | $ 1,200 | $ 6,751 | $ 4,980 |
Total unrecognized share-based compensation costs | $ 5,300 | $ 5,300 | ||
Weighted average remaining contractual term for recognition of unrecognized share-based compensation costs (in years) | 1 year 10 months 24 days | |||
Highwoods Properties, Inc. [Member] | Time-Based Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock shares granted (in shares) | 103,120 | |||
Weighted average grant date fair value of each restricted stock share granted (in dollars per share) | $ 39.99 | |||
Highwoods Properties, Inc. [Member] | Total Return-Based Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock shares granted (in shares) | 81,464 | |||
Weighted average grant date fair value of each restricted stock share granted (in dollars per share) | $ 36.41 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accumulated Other Comprehensive Loss Calculation [Roll Forward] | ||||
Beginning balance | $ (1,225) | $ (1,704) | $ (1,462) | $ (471) |
Unrealized gains/(losses) on cash flow hedges | (6) | 5 | (17) | (1,231) |
Amortization of cash flow hedges | 129 | 122 | 377 | 125 |
Total accumulated other comprehensive loss | $ (1,102) | $ (1,577) | $ (1,102) | $ (1,577) |
Real Estate and Other Assets _3
Real Estate and Other Assets Held For Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Real Estate and Other Assets Held For Sale [Abstract] | ||
Land | $ 6,723 | $ 2,612 |
Buildings and tenant improvements | 102,285 | 12,238 |
Land held for development | 3,482 | 0 |
Less-accumulated depreciation | (53,121) | (3,577) |
Net real estate assets | 59,369 | 11,273 |
Accrued straight-line rents receivable | 7,037 | 0 |
Deferred leasing costs, net | 3,285 | 87 |
Prepaid expenses and other assets, net | 115 | 0 |
Real estate and other assets, net, held for sale | $ 69,806 | $ 11,360 |
Earnings Per Share and Per Un_3
Earnings Per Share and Per Unit (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings per Common Share and Per Unit - basic: [Abstract] | ||||
Net income | $ 75,587 | $ 42,331 | $ 194,286 | $ 272,627 |
Net (income) attributable to noncontrolling interests in the Operating Partnership | (1,967) | (1,107) | (5,084) | (7,084) |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (894) | (298) | (1,469) | (872) |
Dividends on Preferred Stock | (621) | (622) | (1,864) | (1,866) |
Net income available for common stockholders | $ 72,105 | $ 40,304 | $ 185,869 | $ 262,805 |
Denominator: | ||||
Denominator for basic earnings per Common Share - weighted average shares (in shares) | 104,277 | 103,896 | 104,117 | 103,865 |
Earnings per Common Share - basic: | ||||
Net income available for common stockholders (in dollars per share) | $ 0.69 | $ 0.39 | $ 1.79 | $ 2.53 |
Earnings per Common Share and Per Unit - diluted: [Abstract] | ||||
Net income | $ 75,587 | $ 42,331 | $ 194,286 | $ 272,627 |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (894) | (298) | (1,469) | (872) |
Dividends on Preferred Stock | (621) | (622) | (1,864) | (1,866) |
Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership | $ 74,072 | $ 41,411 | $ 190,953 | $ 269,889 |
Denominator: | ||||
Denominator for basic earnings per Common Share - weighted average shares (in shares) | 104,277 | 103,896 | 104,117 | 103,865 |
Stock options using the treasury method (in shares) | 25 | 2 | 17 | 10 |
Noncontrolling interests Common Units (in shares) | 2,837 | 2,842 | 2,838 | 2,827 |
Denominator for diluted earnings per Common Share - adjusted weighted average shares and assumed conversions (in shares) | 107,139 | 106,740 | 106,972 | 106,702 |
Earnings per Common Share - diluted: | ||||
Net income available for common stockholders (in dollars per share) | $ 0.69 | $ 0.39 | $ 1.79 | $ 2.53 |
Highwoods Realty Limited Partnership [Member] | ||||
Earnings per Common Share and Per Unit - basic: [Abstract] | ||||
Net income | $ 75,587 | $ 42,331 | $ 194,286 | $ 272,627 |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (894) | (298) | (1,469) | (872) |
Distributions on Preferred Units | (621) | (622) | (1,864) | (1,866) |
Net income available for common unitholders | $ 74,072 | $ 41,411 | $ 190,953 | $ 269,889 |
Denominator: | ||||
Denominator for basic earnings per Common Unit - weighted average units (in shares) | 106,705 | 106,329 | 106,546 | 106,283 |
Earnings per Common Unit - basic: | ||||
Net income available for common unitholders (in dollars per share) | $ 0.69 | $ 0.39 | $ 1.79 | $ 2.54 |
Earnings per Common Share and Per Unit - diluted: [Abstract] | ||||
Net income | $ 75,587 | $ 42,331 | $ 194,286 | $ 272,627 |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (894) | (298) | (1,469) | (872) |
Distributions on Preferred Units | (621) | (622) | (1,864) | (1,866) |
Net income available for common unitholders | $ 74,072 | $ 41,411 | $ 190,953 | $ 269,889 |
Denominator: | ||||
Denominator for basic earnings per Common Unit - weighted average units (in shares) | 106,705 | 106,329 | 106,546 | 106,283 |
Stock options using the treasury method (in shares) | 25 | 2 | 17 | 10 |
Denominator for diluted earnings per Common Unit - adjusted weighted average units and assumed conversions (in shares) | 106,730 | 106,331 | 106,563 | 106,293 |
Earnings per Common Unit - diluted: | ||||
Net income available for common unitholders (in dollars per share) | $ 0.69 | $ 0.39 | $ 1.79 | $ 2.54 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||||
Total Rental and Other Revenues | $ 195,495 | $ 181,043 | $ 564,802 | $ 556,996 | |
Total Net Operating Income | 134,928 | 124,151 | 391,820 | 382,783 | |
Total Assets | 5,754,072 | 5,754,072 | $ 5,209,417 | ||
Reconciliation to net income: | |||||
Depreciation and amortization | (66,547) | (60,303) | (189,423) | (180,914) | |
Impairments of real estate assets | 0 | 0 | 0 | (1,778) | |
General and administrative expenses | (10,350) | (9,155) | (30,409) | (30,169) | |
Interest expense | (21,986) | (19,886) | (60,755) | (61,003) | |
Other income | 424 | (3,311) | 1,068 | (2,654) | |
Gains on disposition of property | 38,572 | 10,012 | 80,371 | 163,397 | |
Equity in earnings of unconsolidated affiliates | 546 | 823 | 1,614 | 2,965 | |
Net income | 75,587 | 42,331 | 194,286 | 272,627 | |
Total Office Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total Rental and Other Revenues | 192,570 | 173,979 | 555,147 | 528,938 | |
Total Net Operating Income | 133,255 | 119,807 | 386,139 | 365,904 | |
Total Assets | 5,656,880 | 5,656,880 | 4,886,747 | ||
Office Atlanta, GA [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total Rental and Other Revenues | 36,672 | 36,022 | 108,385 | 110,518 | |
Total Net Operating Income | 24,157 | 23,303 | 71,779 | 72,387 | |
Total Assets | 999,319 | 999,319 | 1,011,807 | ||
Office Charlotte, NC [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total Rental and Other Revenues | 14,313 | 8,858 | 32,364 | 26,801 | |
Total Net Operating Income | 11,159 | 6,973 | 25,446 | 21,298 | |
Total Assets | 775,852 | 775,852 | 443,051 | ||
Office Nashville, TN [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total Rental and Other Revenues | 36,136 | 34,661 | 106,873 | 103,780 | |
Total Net Operating Income | 27,355 | 25,022 | 78,172 | 74,907 | |
Total Assets | 1,264,025 | 1,264,025 | 1,191,219 | ||
Office Orlando, FL [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total Rental and Other Revenues | 12,852 | 11,518 | 38,141 | 36,844 | |
Total Net Operating Income | 7,920 | 6,505 | 23,414 | 22,260 | |
Total Assets | 284,361 | 284,361 | 289,129 | ||
Office Pittsburgh, PA [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total Rental and Other Revenues | 14,220 | 14,430 | 42,787 | 44,054 | |
Total Net Operating Income | 8,291 | 8,934 | 25,591 | 26,954 | |
Total Assets | 312,304 | 312,304 | 313,783 | ||
Office Raleigh, NC [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total Rental and Other Revenues | 42,471 | 32,037 | 117,168 | 95,792 | |
Total Net Operating Income | 31,425 | 24,037 | 88,005 | 71,670 | |
Total Assets | 1,276,356 | 1,276,356 | 839,831 | ||
Office Richmond, VA [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total Rental and Other Revenues | 12,050 | 11,878 | 35,263 | 35,972 | |
Total Net Operating Income | 7,805 | 8,204 | 24,092 | 25,403 | |
Total Assets | 211,263 | 211,263 | 240,976 | ||
Office Tampa, FL [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total Rental and Other Revenues | 23,856 | 24,575 | 74,166 | 75,177 | |
Total Net Operating Income | 15,143 | 16,829 | 49,640 | 51,025 | |
Total Assets | 533,400 | 533,400 | 556,951 | ||
Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total Rental and Other Revenues | 2,925 | 7,064 | 9,655 | 28,058 | |
Total Net Operating Income | 1,673 | $ 4,344 | 5,681 | $ 16,879 | |
Total Assets | $ 97,192 | $ 97,192 | $ 322,670 |
Subsequent Events (Details)
Subsequent Events (Details) - Nashville TN Land Acquisitions [Member] - USD ($) $ in Millions | Oct. 04, 2021 | Sep. 30, 2021 | Jun. 30, 2021 |
Subsequent Event [Line Items] | |||
Acquisition purchase price | $ 22.9 | $ 16.1 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Acquisition purchase price | $ 35.1 |