Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 18, 2017 | |
Entity Information [Line Items] | ||
Entity Registrant Name | HIGHWOODS PROPERTIES INC. | |
Entity Central Index Key | 921,082 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 102,019,691 | |
Highwoods Realty Limited Partnership [Member] | ||
Entity Information [Line Items] | ||
Entity Registrant Name | HIGHWOODS REALTY LIMITED PARTNERSHIP | |
Entity Central Index Key | 941,713 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Real estate assets, at cost: | ||
Land | $ 474,661 | $ 474,375 |
Buildings and tenant improvements | 4,326,570 | 4,313,373 |
Development in-process | 327,446 | 279,602 |
Land held for development | 84,056 | 77,355 |
Total real estate assets | 5,212,733 | 5,144,705 |
Less-accumulated depreciation | (1,166,865) | (1,134,103) |
Net real estate assets | 4,045,868 | 4,010,602 |
Cash and cash equivalents | 4,918 | 49,490 |
Restricted cash | 29,241 | 29,141 |
Accounts receivable, net of allowance of $491 and $624, respectively | 15,814 | 17,372 |
Mortgages and notes receivable, net of allowance of $96 and $105, respectively | 7,787 | 8,833 |
Accrued straight-line rents receivable, net of allowance of $242 and $692, respectively | 178,872 | 172,829 |
Investments in and advances to unconsolidated affiliates | 14,822 | 18,846 |
Deferred leasing costs, net of accumulated amortization of $142,148 and $140,081, respectively | 210,141 | 213,500 |
Prepaid expenses and other assets, net of accumulated amortization of $20,695 and $19,904, respectively | 41,353 | 40,437 |
Total Assets | 4,548,816 | 4,561,050 |
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Liabilities, Redeemable Operating Partnership Units and Capital: | ||
Mortgages and notes payable, net | 2,042,486 | 1,948,047 |
Accounts payable, accrued expenses and other liabilities | 207,144 | 313,885 |
Total Liabilities | 2,249,630 | 2,261,932 |
Commitments and contingencies | ||
Noncontrolling interests in the Operating Partnership | 139,367 | 144,802 |
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), 28,905 and 28,920 shares issued and outstanding, respectively | 28,905 | 28,920 |
Common Stock, $.01 par value, 200,000,000 authorized shares; 102,018,119 and 101,665,554 shares issued and outstanding, respectively | 1,020 | 1,017 |
Additional paid-in capital | 2,868,869 | 2,850,881 |
Distributions in excess of net income available for common stockholders | (762,655) | (749,412) |
Accumulated other comprehensive income | 5,885 | 4,949 |
Total Stockholders’ Equity | 2,142,024 | 2,136,355 |
Noncontrolling interests in consolidated affiliates | 17,795 | 17,961 |
Total Equity/Capital | 2,159,819 | 2,154,316 |
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Capital | 4,548,816 | 4,561,050 |
Highwoods Realty Limited Partnership [Member] | ||
Real estate assets, at cost: | ||
Land | 474,661 | 474,375 |
Buildings and tenant improvements | 4,326,570 | 4,313,373 |
Development in-process | 327,446 | 279,602 |
Land held for development | 84,056 | 77,355 |
Total real estate assets | 5,212,733 | 5,144,705 |
Less-accumulated depreciation | (1,166,865) | (1,134,103) |
Net real estate assets | 4,045,868 | 4,010,602 |
Cash and cash equivalents | 4,918 | 49,490 |
Restricted cash | 29,241 | 29,141 |
Accounts receivable, net of allowance of $491 and $624, respectively | 15,814 | 17,372 |
Mortgages and notes receivable, net of allowance of $96 and $105, respectively | 7,787 | 8,833 |
Accrued straight-line rents receivable, net of allowance of $242 and $692, respectively | 178,872 | 172,829 |
Investments in and advances to unconsolidated affiliates | 14,822 | 18,846 |
Deferred leasing costs, net of accumulated amortization of $142,148 and $140,081, respectively | 210,141 | 213,500 |
Prepaid expenses and other assets, net of accumulated amortization of $20,695 and $19,904, respectively | 41,353 | 40,437 |
Total Assets | 4,548,816 | 4,561,050 |
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Liabilities, Redeemable Operating Partnership Units and Capital: | ||
Mortgages and notes payable, net | 2,042,486 | 1,948,047 |
Accounts payable, accrued expenses and other liabilities | 207,144 | 313,885 |
Total Liabilities | 2,249,630 | 2,261,932 |
Commitments and contingencies | ||
Redeemable Operating Partnership Units: | ||
Common Units, 2,836,704 and 2,838,704 outstanding, respectively | 139,367 | 144,802 |
Series A Preferred Units (liquidation preference $1,000 per unit), 28,905 and 28,920 units issued and outstanding, respectively | 28,905 | 28,920 |
Total Redeemable Operating Partnership Units | 168,272 | 173,722 |
Equity/Capital: | ||
General partner Common Units, 1,044,460 and 1,040,954 outstanding, respectively | 21,070 | 21,023 |
Limited partner Common Units, 100,564,850 and 100,215,791 outstanding, respectively | 2,086,164 | 2,081,463 |
Accumulated other comprehensive income | 5,885 | 4,949 |
Noncontrolling interests in consolidated affiliates | 17,795 | 17,961 |
Total Equity/Capital | 2,130,914 | 2,125,396 |
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Capital | $ 4,548,816 | $ 4,561,050 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Assets: | ||
Accounts receivable allowance | $ 491 | $ 624 |
Mortgages and notes receivable allowance | 96 | 105 |
Accrued straight-line rents receivable allowance | 242 | 692 |
Deferred leasing costs, accumulated amortization | 142,148 | 140,081 |
Prepaid expenses and other assets, accumulated amortization | $ 20,695 | $ 19,904 |
Equity/Capital: | ||
Series A Preferred Stock, dividend rate percentage (in hundredths) | 8.625% | 8.625% |
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, liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 |
Series A Preferred Stock, shares issued (in shares) | 28,905 | 28,920 |
Series A Preferred Stock, shares outstanding (in shares) | 28,905 | 28,920 |
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) | 102,018,119 | 101,665,554 |
Common Stock, shares outstanding (in shares) | 102,018,119 | 101,665,554 |
Highwoods Realty Limited Partnership [Member] | ||
Assets: | ||
Accounts receivable allowance | $ 491 | $ 624 |
Mortgages and notes receivable allowance | 96 | 105 |
Accrued straight-line rents receivable allowance | 242 | 692 |
Deferred leasing costs, accumulated amortization | 142,148 | 140,081 |
Prepaid expenses and other assets, accumulated amortization | $ 20,695 | $ 19,904 |
Redeemable Operating Partnership Units: [Abstract] | ||
Redeemable Common Units outstanding (in shares) | 2,836,704 | 2,838,704 |
Series A Preferred Units, liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 |
Series A Preferred Units, issued (in shares) | 28,905 | 28,920 |
Series A Preferred Units, outstanding (in shares) | 28,905 | 28,920 |
Common Units: [Abstract] | ||
General partners' capital account, units outstanding (in shares) | 1,044,460 | 1,040,954 |
Limited partners' capital account, units outstanding (in shares) | 100,564,850 | 100,215,791 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Rental and other revenues | $ 169,408 | $ 164,859 |
Operating expenses: | ||
Rental property and other expenses | 57,396 | 57,580 |
Depreciation and amortization | 56,145 | 53,494 |
General and administrative | 11,490 | 11,137 |
Total operating expenses | 125,031 | 122,211 |
Interest expense: | ||
Contractual | 17,023 | 19,715 |
Amortization of debt issuance costs | 840 | 990 |
Total interest expense | 17,863 | 20,705 |
Other income: | ||
Interest and other income | 684 | 517 |
Total other income | 684 | 517 |
Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates | 27,198 | 22,460 |
Gains on disposition of property | 5,332 | 4,397 |
Equity in earnings of unconsolidated affiliates | 955 | 1,285 |
Income from continuing operations | 33,485 | 28,142 |
Discontinued operations: | ||
Income from discontinued operations | 0 | 4,097 |
Net gains on disposition of discontinued operations | 0 | 414,496 |
Total income from discontinued operations | 0 | 418,593 |
Net income | 33,485 | 446,735 |
Net (income) attributable to noncontrolling interests in the Operating Partnership | (888) | (13,011) |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (300) | (308) |
Dividends on Preferred Stock | (623) | (626) |
Net income available for common stockholders | $ 31,674 | $ 432,790 |
Earnings per Common Share – basic: | ||
Income from continuing operations available for common stockholders (in dollars per share) | $ 0.31 | $ 0.27 |
Income from discontinued operations available for common stockholders (in dollars per share) | 0 | 4.22 |
Net income available for common stockholders (in dollars per share) | $ 0.31 | $ 4.49 |
Weighted average Common Shares outstanding - basic (in shares) | 101,738 | 96,373 |
Earnings per Common Share - diluted: | ||
Income from continuing operations available for common stockholders (in dollars per share) | $ 0.31 | $ 0.27 |
Income from discontinued operations available for common stockholders (in dollars per share) | 0 | 4.22 |
Net income available for common stockholders (in dollars per share) | $ 0.31 | $ 4.49 |
Weighted average Common Shares outstanding - diluted (in shares) | 104,661 | 99,357 |
Dividends declared per Common Share (in dollars per share) | $ 0.440 | $ 0.425 |
Net income available for common stockholders: | ||
Income from continuing operations available for common stockholders | $ 31,674 | $ 26,462 |
Income from discontinued operations available for common stockholders | 0 | 406,328 |
Net income available for common stockholders | 31,674 | 432,790 |
Highwoods Realty Limited Partnership [Member] | ||
Rental and other revenues | 169,408 | 164,859 |
Operating expenses: | ||
Rental property and other expenses | 57,396 | 57,580 |
Depreciation and amortization | 56,145 | 53,494 |
General and administrative | 11,490 | 11,137 |
Total operating expenses | 125,031 | 122,211 |
Interest expense: | ||
Contractual | 17,023 | 19,715 |
Amortization of debt issuance costs | 840 | 990 |
Total interest expense | 17,863 | 20,705 |
Other income: | ||
Interest and other income | 684 | 517 |
Total other income | 684 | 517 |
Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates | 27,198 | 22,460 |
Gains on disposition of property | 5,332 | 4,397 |
Equity in earnings of unconsolidated affiliates | 955 | 1,285 |
Income from continuing operations | 33,485 | 28,142 |
Discontinued operations: | ||
Income from discontinued operations | 0 | 4,097 |
Net gains on disposition of discontinued operations | 0 | 414,496 |
Total income from discontinued operations | 0 | 418,593 |
Net income | 33,485 | 446,735 |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (300) | (308) |
Distributions on Preferred Units | (623) | (626) |
Net income available for common unitholders | $ 32,562 | $ 445,801 |
Earnings per Common Unit - basic: | ||
Income from continuing operations available for common unitholders (in dollars per share) | $ 0.31 | $ 0.28 |
Income from discontinued operations available for common unitholders (in dollars per share) | 0 | 4.23 |
Net income available for common unitholders (in dollars per share) | $ 0.31 | $ 4.51 |
Weighted average Common Units outstanding - basic (in shares) | 104,167 | 98,864 |
Earnings per Common Unit - diluted: | ||
Income from continuing operations available for common unitholders (in dollars per share) | $ 0.31 | $ 0.28 |
Income from discontinued operations available for common unitholders (in dollars per share) | 0 | 4.23 |
Net income available for common unitholders (in dollars per share) | $ 0.31 | $ 4.51 |
Weighted average Common Units outstanding - diluted (in shares) | 104,252 | 98,948 |
Distributions declared per Common Unit (in dollars per unit) | $ 0.44 | $ 0.425 |
Net income available for common unitholders: | ||
Income from continuing operations available for common unitholders | $ 32,562 | $ 27,208 |
Income from discontinued operations available for common unitholders | 0 | 418,593 |
Net income available for common unitholders | $ 32,562 | $ 445,801 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Comprehensive income: | ||
Net income | $ 33,485 | $ 446,735 |
Other comprehensive income/(loss): | ||
Unrealized gains/(losses) on cash flow hedges | 452 | (3,635) |
Amortization of cash flow hedges | 484 | 795 |
Total other comprehensive income/(loss) | 936 | (2,840) |
Total comprehensive income | 34,421 | 443,895 |
Less-comprehensive (income) attributable to noncontrolling interests | (1,188) | (13,319) |
Comprehensive income attributable to common stockholders/Comprehensive income attributable to common unitholders | 33,233 | 430,576 |
Highwoods Realty Limited Partnership [Member] | ||
Comprehensive income: | ||
Net income | 33,485 | 446,735 |
Other comprehensive income/(loss): | ||
Unrealized gains/(losses) on cash flow hedges | 452 | (3,635) |
Amortization of cash flow hedges | 484 | 795 |
Total other comprehensive income/(loss) | 936 | (2,840) |
Total comprehensive income | 34,421 | 443,895 |
Less-comprehensive (income) attributable to noncontrolling interests | (300) | (308) |
Comprehensive income attributable to common stockholders/Comprehensive income attributable to common unitholders | $ 34,121 | $ 443,587 |
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, 2015 | 96,091,932 | |||||||||||
Balance at Dec. 31, 2015 | $ 1,619,282 | $ 1,590,232 | $ 961 | $ 29,050 | $ 15,759 | $ 1,560,309 | $ 2,598,242 | $ (3,811) | $ (3,811) | $ 17,975 | $ 17,975 | $ (1,023,135) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Issuances of Common Units, net of issuance costs and tax withholdings | 50,898 | 509 | 50,389 | 0 | 0 | |||||||
Distributions on Common Units | (41,939) | (419) | (41,520) | 0 | 0 | |||||||
Distributions on Preferred Units | (626) | (6) | (620) | 0 | 0 | |||||||
Issuances of Common Stock, net of issuance costs and tax withholdings - Shares | 1,177,885 | |||||||||||
Issuances of Common Stock, net of issuance costs and tax withholdings | 50,898 | $ 12 | 0 | 50,886 | 0 | 0 | 0 | |||||
Conversions of Common Units to Common Stock | 0 | |||||||||||
Dividends on Common Stock | (40,881) | 0 | 0 | 0 | 0 | 0 | (40,881) | |||||
Dividends on Preferred Stock | (626) | 0 | 0 | 0 | 0 | 0 | (626) | |||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | (429) | 0 | 0 | (429) | 0 | 0 | 0 | |||||
Distributions to noncontrolling interests in consolidated affiliates | (320) | (320) | $ 0 | 0 | 0 | 0 | 0 | 0 | 0 | (320) | (320) | 0 |
Issuances of restricted stock - shares | 122,832 | |||||||||||
Issuances of restricted stock | 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | |||||
Redemptions/repurchases of Preferred Stock | (20) | $ 0 | (20) | 0 | 0 | 0 | 0 | |||||
Share-based compensation expense, net of forfeitures - shares | (348) | |||||||||||
Share-based compensation expense, net of forfeitures | 3,556 | 3,556 | $ 1 | 0 | 36 | 3,520 | 3,555 | 0 | 0 | 0 | 0 | 0 |
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner | (12,382) | (124) | (12,258) | 0 | 0 | |||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | (13,011) | 0 | 0 | 0 | 0 | 0 | (13,011) | |||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | 0 | 0 | 0 | 0 | (3) | (305) | 0 | 0 | 0 | 308 | 308 | (308) |
Comprehensive income: | ||||||||||||
Net income | 446,735 | 446,735 | 0 | 0 | 4,467 | 442,268 | 0 | 0 | 0 | 0 | 0 | 446,735 |
Other comprehensive income/(loss) | (2,840) | (2,840) | $ 0 | 0 | 0 | 0 | 0 | (2,840) | (2,840) | 0 | 0 | 0 |
Total comprehensive income | 443,895 | 443,895 | ||||||||||
Balance (in shares) at Mar. 31, 2016 | 97,392,301 | |||||||||||
Balance at Mar. 31, 2016 | $ 2,062,344 | 2,033,314 | $ 974 | 29,030 | 20,219 | 2,001,783 | 2,652,254 | (6,651) | (6,651) | 17,963 | 17,963 | (631,226) |
Balance (in shares) at Dec. 31, 2016 | 101,665,554 | 101,665,554 | ||||||||||
Balance at Dec. 31, 2016 | $ 2,154,316 | 2,125,396 | $ 1,017 | 28,920 | 21,023 | 2,081,463 | 2,850,881 | 4,949 | 4,949 | 17,961 | 17,961 | (749,412) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Issuances of Common Units, net of issuance costs and tax withholdings | 9,134 | 91 | 9,043 | 0 | 0 | |||||||
Distributions on Common Units | (45,986) | (460) | (45,526) | 0 | 0 | |||||||
Distributions on Preferred Units | (623) | (6) | (617) | 0 | 0 | |||||||
Issuances of Common Stock, net of issuance costs and tax withholdings - Shares | 239,817 | |||||||||||
Issuances of Common Stock, net of issuance costs and tax withholdings | 9,134 | $ 2 | 0 | 9,132 | 0 | 0 | 0 | |||||
Conversions of Common Units to Common Stock - Shares | 2,000 | |||||||||||
Conversions of Common Units to Common Stock | 102 | $ 0 | 0 | 102 | 0 | 0 | 0 | |||||
Dividends on Common Stock | (44,917) | 0 | 0 | 0 | 0 | 0 | (44,917) | |||||
Dividends on Preferred Stock | (623) | 0 | 0 | 0 | 0 | 0 | (623) | |||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | 4,972 | 0 | 0 | 4,972 | 0 | 0 | 0 | |||||
Distributions to noncontrolling interests in consolidated affiliates | (466) | (466) | $ 0 | 0 | 0 | 0 | 0 | 0 | 0 | (466) | (466) | 0 |
Issuances of restricted stock - shares | 110,748 | |||||||||||
Issuances of restricted stock | 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | |||||
Redemptions/repurchases of Preferred Stock | (15) | $ 0 | (15) | 0 | 0 | 0 | 0 | |||||
Share-based compensation expense, net of forfeitures - shares | 0 | |||||||||||
Share-based compensation expense, net of forfeitures | 3,783 | 3,783 | $ 1 | 0 | 38 | 3,745 | 3,782 | 0 | 0 | 0 | 0 | 0 |
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner | 5,255 | 52 | 5,203 | 0 | 0 | |||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | (888) | 0 | 0 | 0 | 0 | 0 | (888) | |||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | 0 | 0 | 0 | 0 | (3) | (297) | 0 | 0 | 0 | 300 | 300 | (300) |
Comprehensive income: | ||||||||||||
Net income | 33,485 | 33,485 | 0 | 0 | 335 | 33,150 | 0 | 0 | 0 | 0 | 0 | 33,485 |
Other comprehensive income/(loss) | 936 | 936 | $ 0 | 0 | 0 | 0 | 0 | 936 | 936 | 0 | 0 | 0 |
Total comprehensive income | $ 34,421 | 34,421 | ||||||||||
Balance (in shares) at Mar. 31, 2017 | 102,018,119 | 102,018,119 | ||||||||||
Balance at Mar. 31, 2017 | $ 2,159,819 | $ 2,130,914 | $ 1,020 | $ 28,905 | $ 21,070 | $ 2,086,164 | $ 2,868,869 | $ 5,885 | $ 5,885 | $ 17,795 | $ 17,795 | $ (762,655) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Operating activities: | ||
Net income | $ 33,485 | $ 446,735 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 56,145 | 53,494 |
Amortization of lease incentives and acquisition-related intangible assets and liabilities | (10) | 108 |
Share-based compensation expense | 3,783 | 3,556 |
Allowance for losses on accounts and accrued straight-line rents receivable | 61 | 1,077 |
Accrued interest on mortgages and notes receivable | (132) | (42) |
Amortization of debt issuance costs | 840 | 990 |
Amortization of cash flow hedges | 484 | 795 |
Amortization of mortgages and notes payable fair value adjustments | (30) | (59) |
Net gains on disposition of property | (5,332) | (418,893) |
Equity in earnings of unconsolidated affiliates | (955) | (1,285) |
Distributions of earnings from unconsolidated affiliates | 2,431 | 717 |
Settlement of cash flow hedges | 7,322 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 3,922 | 601 |
Prepaid expenses and other assets | (5,959) | (6,577) |
Accrued straight-line rents receivable | (6,185) | (6,624) |
Accounts payable, accrued expenses and other liabilities | (20,951) | (26,358) |
Net cash provided by operating activities | 68,919 | 48,235 |
Investing activities: | ||
Investments in development in-process | (59,408) | (33,188) |
Investments in tenant improvements and deferred leasing costs | (24,649) | (23,513) |
Investments in building improvements | (17,194) | (16,479) |
Net proceeds from disposition of real estate assets | 11,532 | 661,390 |
Distributions of capital from unconsolidated affiliates | 6,512 | 2,118 |
Investments in mortgages and notes receivable | 0 | (7,602) |
Repayments of mortgages and notes receivable | 1,178 | 79 |
Investments in and advances to unconsolidated affiliates | 0 | (105) |
Changes in restricted cash and other investing activities | (1,696) | (248,865) |
Net cash provided by/(used in) investing activities | (83,725) | 333,835 |
Financing activities: | ||
Dividends on Common Stock | (44,917) | (40,881) |
Special dividend on Common Stock | (81,205) | 0 |
Redemptions/repurchases of Preferred Stock | (15) | (20) |
Dividends on Preferred Stock | (623) | (626) |
Distributions to noncontrolling interests in the Operating Partnership | (1,249) | (1,232) |
Special distribution to noncontrolling interests in the Operating Partnership | (2,271) | 0 |
Distributions to noncontrolling interests in consolidated affiliates | (466) | (320) |
Proceeds from the issuance of Common Stock | 13,191 | 54,915 |
Costs paid for the issuance of Common Stock | (250) | (788) |
Repurchase of shares related to tax withholdings | (3,807) | (3,229) |
Borrowings on revolving credit facility | 200,300 | 66,400 |
Repayments of revolving credit facility | (69,300) | (107,400) |
Borrowings on mortgages and notes payable | 346,001 | 0 |
Repayments of mortgages and notes payable | (380,261) | (350,535) |
Changes in debt issuance costs and other financing activities | (4,894) | (45) |
Net cash used in financing activities | (29,766) | (383,761) |
Net decrease in cash and cash equivalents | (44,572) | (1,691) |
Cash and cash equivalents at beginning of the period | 49,490 | 5,036 |
Cash and cash equivalents at end of the period | 4,918 | 3,345 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest, net of amounts capitalized | 18,909 | 20,951 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Unrealized gains/(losses) on cash flow hedges | 452 | (3,635) |
Conversions of Common Units to Common Stock | 102 | 0 |
Changes in accrued capital expenditures | (6,741) | (5,978) |
Write-off of fully depreciated real estate assets | 10,649 | 12,579 |
Write-off of fully amortized debt issuance and leasing costs | 13,252 | 5,282 |
Adjustment of noncontrolling interests in the Operating Partnership to fair value | (4,972) | 429 |
Highwoods Realty Limited Partnership [Member] | ||
Operating activities: | ||
Net income | 33,485 | 446,735 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 56,145 | 53,494 |
Amortization of lease incentives and acquisition-related intangible assets and liabilities | (10) | 108 |
Share-based compensation expense | 3,783 | 3,556 |
Allowance for losses on accounts and accrued straight-line rents receivable | 61 | 1,077 |
Accrued interest on mortgages and notes receivable | (132) | (42) |
Amortization of debt issuance costs | 840 | 990 |
Amortization of cash flow hedges | 484 | 795 |
Amortization of mortgages and notes payable fair value adjustments | (30) | (59) |
Net gains on disposition of property | (5,332) | (418,893) |
Equity in earnings of unconsolidated affiliates | (955) | (1,285) |
Distributions of earnings from unconsolidated affiliates | 2,431 | 717 |
Settlement of cash flow hedges | 7,322 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 3,922 | 601 |
Prepaid expenses and other assets | (5,959) | (6,577) |
Accrued straight-line rents receivable | (6,185) | (6,624) |
Accounts payable, accrued expenses and other liabilities | (20,951) | (26,358) |
Net cash provided by operating activities | 68,919 | 48,235 |
Investing activities: | ||
Investments in development in-process | (59,408) | (33,188) |
Investments in tenant improvements and deferred leasing costs | (24,649) | (23,513) |
Investments in building improvements | (17,194) | (16,479) |
Net proceeds from disposition of real estate assets | 11,532 | 661,390 |
Distributions of capital from unconsolidated affiliates | 6,512 | 2,118 |
Investments in mortgages and notes receivable | 0 | (7,602) |
Repayments of mortgages and notes receivable | 1,178 | 79 |
Investments in and advances to unconsolidated affiliates | 0 | (105) |
Changes in restricted cash and other investing activities | (1,696) | (248,865) |
Net cash provided by/(used in) investing activities | (83,725) | 333,835 |
Financing activities: | ||
Distributions on Common Units | (45,986) | (41,939) |
Special distribution on Common Units | (83,149) | 0 |
Redemptions/repurchases of Preferred Units | (15) | (20) |
Distributions on Preferred Units | (623) | (626) |
Distributions to noncontrolling interests in consolidated affiliates | (466) | (320) |
Proceeds from the issuance of Common Units | 13,191 | 54,915 |
Costs paid for the issuance of Common Units | (250) | (788) |
Repurchase of units related to tax withholdings | (3,807) | (3,229) |
Borrowings on revolving credit facility | 200,300 | 66,400 |
Repayments of revolving credit facility | (69,300) | (107,400) |
Borrowings on mortgages and notes payable | 346,001 | 0 |
Repayments of mortgages and notes payable | (380,261) | (350,535) |
Changes in debt issuance costs and other financing activities | (5,401) | (219) |
Net cash used in financing activities | (29,766) | (383,761) |
Net decrease in cash and cash equivalents | (44,572) | (1,691) |
Cash and cash equivalents at beginning of the period | 49,490 | 5,036 |
Cash and cash equivalents at end of the period | 4,918 | 3,345 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest, net of amounts capitalized | 18,909 | 20,951 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Unrealized gains/(losses) on cash flow hedges | 452 | (3,635) |
Changes in accrued capital expenditures | (6,741) | (5,978) |
Write-off of fully depreciated real estate assets | 10,649 | 12,579 |
Write-off of fully amortized debt issuance and leasing costs | 13,252 | 5,282 |
Adjustment of Redeemable Common Units to fair value | $ (5,435) | $ 12,208 |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 , we owned or had an interest in 31.3 million rentable square feet of in-service properties, 1.2 million rentable square feet of properties under development and approximately 400 acres of development land. The Company is the sole general partner of the Operating Partnership. At March 31, 2017 , the Company owned all of the Preferred Units and 101.6 million , or 97.3% , of the Common Units in the Operating Partnership. Limited partners owned the remaining 2.8 million Common Units. During the three months ended March 31, 2017 , the Company redeemed 2,000 Common Units for a like number of shares of Common Stock. Common Stock Offerings During the first quarter of 2017 , 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 three months ended March 31, 2017 , the Company issued 186,185 shares of Common Stock under its equity distribution agreements at an average gross sales price of $49.73 per share and received net proceeds, after sales commissions, of $9.1 million . 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. 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 2016 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. 1. Description of Business and Significant Accounting Policies – Continued Recently Issued Accounting Standards The Financial Accounting Standards Board ("FASB") issued an accounting standards update ("ASU") that requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that we identify the contract with the customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when we satisfy the performance obligations. We will also be required to disclose information regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The ASU is required to be adopted in 2018. Retrospective application is required either to all periods presented or with the cumulative effect of initial adoption recognized in the period of adoption. Our initial analysis of our non-lease related revenue contracts indicates that the adoption of this ASU will not have a material effect on our Consolidated Financial Statements; however, we are still in the process of evaluating this ASU. The FASB issued an ASU that adds to and clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows. The ASU is required to be adopted in 2018 with retrospective application required. We do not expect such adoption to have a material effect on our Consolidated Statements of Cash Flows. The FASB issued an ASU that clarifies and narrows the definition of a business used in determining whether to account for a transaction as an asset acquisition or business combination. The guidance requires evaluation of the fair value of the assets acquired to determine if it is concentrated in a single identifiable asset or a group of similar identifiable assets. If so, the transferred assets would not be a business. The guidance also requires a business to include at least one substantive process and narrows the definition of outputs. The ASU is required to be adopted in 2018 and applied prospectively. We are in the process of evaluating this ASU. The FASB issued an ASU which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The ASU requires lessors to account for leases using an approach that is substantially equivalent to the existing guidance and is effective for reporting periods beginning in 2019 with early adoption permitted. We are in the process of evaluating this ASU. The FASB issued an ASU that requires, among other things, the use of a new current expected credit loss ("CECL") model in determining our allowances for doubtful accounts with respect to accounts receivable, accrued straight-line rents receivable and mortgages and notes receivable. The CECL model requires that we estimate our lifetime expected credit loss with respect to these receivables and record allowances that, when deducted from the balance of the receivables, represent the net amounts expected to be collected. We will also be required to disclose information about how we developed the allowances, including changes in the factors (e.g., portfolio mix, credit trends, unemployment, gross domestic product, etc.) that influenced our estimate of expected credit losses and the reasons for those changes. We will apply the ASU’s provisions as a cumulative-effect adjustment to retained earnings upon adoption in 2020. We are in the process of evaluating this ASU. |
Real Estate Assets
Real Estate Assets | 3 Months Ended |
Mar. 31, 2017 | |
Real Estate [Abstract] | |
Real Estate Assets | Real Estate Assets During the first quarter of 2017, we sold a building for a sale price of $13.0 million (before closing credits to buyer of $1.2 million ) and recorded a gain on disposition of property of $5.3 million . |
Mortgages and Notes Receivable
Mortgages and Notes Receivable | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Mortgages and Notes Receivable | Mortgages and Notes Receivable Mortgages and notes receivable were $7.8 million and $8.8 million at March 31, 2017 and December 31, 2016 , respectively. We evaluate the ability to collect our mortgages and notes receivable by monitoring the leasing statistics and/or market fundamentals of these assets. As of March 31, 2017 , our mortgages and notes receivable were not in default and there were no other indicators of impairment. |
Intangible Assets and Below Mar
Intangible Assets and Below Market Lease Liabilities | 3 Months Ended |
Mar. 31, 2017 | |
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: March 31, December 31, Assets: Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets) $ 352,289 $ 353,581 Less accumulated amortization (142,148 ) (140,081 ) $ 210,141 $ 213,500 Liabilities (in accounts payable, accrued expenses and other liabilities): Acquisition-related below market lease liabilities $ 61,049 $ 61,221 Less accumulated amortization (24,482 ) (23,074 ) $ 36,567 $ 38,147 The following table sets forth amortization of intangible assets and below market lease liabilities: Three Months Ended 2017 2016 Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization) $ 10,619 $ 11,335 Amortization of lease incentives (in rental and other revenues) $ 397 $ 711 Amortization of acquisition-related intangible assets (in rental and other revenues) $ 1,036 $ 1,031 Amortization of acquisition-related intangible assets (in rental property and other expenses) $ 137 $ 138 Amortization of acquisition-related below market lease liabilities (in rental and other revenues) $ (1,580 ) $ (1,772 ) 4. Intangible Assets and Below Market Lease Liabilities - Continued 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 Intangible Assets (in Rental Property and Other Expenses) Amortization of Acquisition-Related Below Market Lease Liabilities (in Rental and Other Revenues) April 1 through December 31, 2017 $ 31,933 $ 1,155 $ 1,815 $ 412 $ (4,665 ) 2018 35,918 1,432 1,680 553 (5,962 ) 2019 30,251 1,214 1,286 553 (5,492 ) 2020 25,543 936 967 525 (5,180 ) 2021 21,315 729 647 — (4,409 ) Thereafter 46,614 2,778 1,885 — (10,859 ) $ 191,574 $ 8,244 $ 8,280 $ 2,043 $ (36,567 ) Weighted average remaining amortization periods as of March 31, 2017 (in years) 6.7 8.2 6.4 3.7 7.1 |
Mortgages and Notes Payable
Mortgages and Notes Payable | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Mortgages and Notes Payable | Mortgages and Notes Payable The following table sets forth our mortgages and notes payable: March 31, December 31, Secured indebtedness $ 127,358 $ 128,204 Unsecured indebtedness 1,923,692 1,826,145 Less-unamortized debt issuance costs (8,564 ) (6,302 ) Total mortgages and notes payable, net $ 2,042,486 $ 1,948,047 At March 31, 2017 , our secured mortgage loans were collateralized by real estate assets with an aggregate undepreciated book value of $ 254.2 million . Our $ 475.0 million unsecured revolving credit facility is scheduled to mature in January 2018 and includes an accordion feature that allows for an additional $ 75.0 million of borrowing capacity subject to additional lender commitments. Assuming no defaults have occurred, we have an option to extend the maturity for two additional six -month periods. The interest rate at our current credit ratings is LIBOR plus 110 basis points and the annual facility fee is 20 basis points. There was $ 131.0 million and $ 130.0 million outstanding under our revolving credit facility at March 31, 2017 and April 18, 2017 , respectively. At both March 31, 2017 and April 18, 2017 , we had $ 0.2 million of outstanding letters of credit, which reduces the availability on our revolving credit facility. As a result, the unused capacity of our revolving credit facility at March 31, 2017 and April 18, 2017 was $ 343.8 million and $ 344.8 million , respectively. During the first quarter of 2017, the Operating Partnership issued $300.0 million aggregate principal amount of 3.875% notes due 2027 , less original issue discount of $4.0 million . These notes were priced to yield 4.038% . Underwriting fees and other expenses were incurred that aggregated $2.5 million ; these costs were deferred and will be amortized over the term of the notes. 5. Mortgages and Notes Payable - Continued During the first quarter of 2017, we paid off at maturity $379.7 million principal amount of 5.85% unsecured notes. During the first quarter of 2017, we amended our $150.0 million unsecured bank term loan that is scheduled to mature in January 2022 by increasing the borrowed amount to $200.0 million . The interest rate on this term loan at our current credit ratings is LIBOR plus 110 basis points . We incurred $0.3 million of debt issuance costs in connection with this amendment, which will be amortized along with existing unamortized debt issuance costs over the remaining term. We are currently in compliance with financial covenants and other requirements with respect to our consolidated debt. We have considered our short-term liquidity needs within one year from April 25, 2017 (the date of issuance of the quarterly financial statements) and the adequacy of our estimated cash flows from operating activities and other expected financing sources to meet these needs. In particular, we have considered our scheduled debt maturities during such one year period, including the $108.3 million secured loan due November 1, 2017 and the $200.0 million principal amount of unsecured notes due April 15, 2018 . We have concluded it is probable we will 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 (including the $100.0 million fixed-rate loan described in Note 14); • bank term loans; • borrowings under our revolving credit facility; • issuance of other secured debt; • issuance of equity securities by the Company or the Operating Partnership; and • the disposition of non-core assets. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments During 2016, we obtained $150.0 million notional amount of forward-starting swaps that effectively locked the underlying 10 -year treasury rate at 1.90% with respect to a planned issuance of debt securities by the Operating Partnership. The counterparties under the swaps were major financial institutions. Upon issuance of the $300.0 million aggregate principal amount of 3.875% notes due 2027 during the first quarter of 2017, we terminated the forward-starting swaps resulting in an unrealized gain of $7.3 million in accumulated other comprehensive income. 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. No gain or loss was recognized related to hedge ineffectiveness or to amounts excluded from effectiveness testing on our cash flow hedges during the three months ended March 31, 2017 and 2016 . 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 variable-rate debt. During the period from April 1, 2017 through March 31, 2018 , we estimate that $0.5 million will be reclassified to interest expense. The following table sets forth the gross fair value of our derivatives: March 31, December 31, Derivatives: Derivatives designated as cash flow hedges in prepaid expenses and other assets: Interest rate swaps $ — $ 7,619 Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities: Interest rate swaps $ 1,001 $ 1,870 The following table sets forth the effect of our cash flow hedges on accumulated other comprehensive income/(loss) and interest expense: Three Months Ended 2017 2016 Derivatives Designated as Cash Flow Hedges: Amount of unrealized gains/(losses) recognized in accumulated other comprehensive income/(loss) on derivatives (effective portion): Interest rate swaps $ 452 $ (3,635 ) Amount of net losses reclassified out of accumulated other comprehensive income/(loss) into contractual interest expense (effective portion): Interest rate swaps $ 484 $ 795 |
Noncontrolling Interests
Noncontrolling Interests | 3 Months Ended |
Mar. 31, 2017 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests Noncontrolling Interests in Consolidated Affiliates At March 31, 2017 , our noncontrolling interests in consolidated affiliates relate to our joint venture partner's 50.0% interest in office properties in Richmond. Our joint venture partner is an unrelated third party. Noncontrolling Interests in the Operating Partnership The following table sets forth the Company's noncontrolling interests in the Operating Partnership: Three Months Ended 2017 2016 Beginning noncontrolling interests in the Operating Partnership $ 144,802 $ 126,429 Adjustment of noncontrolling interests in the Operating Partnership to fair value (4,972 ) 429 Conversions of Common Units to Common Stock (102 ) — Net income attributable to noncontrolling interests in the Operating Partnership 888 13,011 Distributions to noncontrolling interests in the Operating Partnership (1,249 ) (1,232 ) Total noncontrolling interests in the Operating Partnership $ 139,367 $ 138,637 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 2017 2016 Net income available for common stockholders $ 31,674 $ 432,790 Increase in additional paid in capital from conversions of Common Units 102 — Change from net income available for common stockholders and transfers from noncontrolling interests $ 31,776 $ 432,790 |
Disclosure About Fair Value of
Disclosure About Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Disclosure About Fair Value of Financial Instruments | Disclosure About Fair Value of Financial Instruments The following summarizes the three 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 and certain of our interest rate swaps. Our Level 2 liabilities include the fair value of our mortgages and notes payable and the remainder of our 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 asset consisted of our tax increment financing bond, which was not routinely traded but whose fair value was determined by the income approach utilizing contractual cash flows and market-based interest rates to estimate the projected redemption value based on quoted bid/ask prices for similar unrated municipal bonds. Our tax increment financing bond was assigned in conjunction with a sale during the first quarter of 2016. The estimated fair value at the date of sale of $ 11.2 million was equal to the outstanding principal amount due on the bond. 8. Disclosure About Fair Value of Financial Instruments - Continued 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 in Active Markets for Identical Assets or Liabilities Significant Observable Inputs Fair Value at March 31, 2017: Assets: Mortgages and notes receivable, at fair value (1) $ 7,787 $ — $ 7,787 Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 2,370 2,370 — Total Assets $ 10,157 $ 2,370 $ 7,787 Noncontrolling Interests in the Operating Partnership $ 139,367 $ 139,367 $ — Liabilities: Mortgages and notes payable, net, at fair value (1) $ 2,050,264 $ — $ 2,050,264 Interest rate swaps (in accounts payable, accrued expenses and other liabilities) 1,001 — 1,001 Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 2,370 2,370 — Total Liabilities $ 2,053,635 $ 2,370 $ 2,051,265 Fair Value at December 31, 2016: Assets: Mortgages and notes receivable, at fair value (1) $ 8,833 $ — $ 8,833 Interest rate swaps (in prepaid expenses and other assets) 7,619 — 7,619 Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 2,451 2,451 — Total Assets $ 18,903 $ 2,451 $ 16,452 Noncontrolling Interests in the Operating Partnership $ 144,802 $ 144,802 $ — Liabilities: Mortgages and notes payable, net, at fair value (1) $ 1,965,611 $ — $ 1,965,611 Interest rate swaps (in accounts payable, accrued expenses and other liabilities) 1,870 — 1,870 Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 2,451 2,451 — Total Liabilities $ 1,969,932 $ 2,451 $ 1,967,481 __________ (1) Amounts recorded at historical cost on our Consolidated Balance Sheets at March 31, 2017 and December 31, 2016 . |
Share-Based Payments
Share-Based Payments | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Payments | Share-Based Payments During the three months ended March 31, 2017 , the Company granted 168,748 stock options with an exercise price equal to the last reported stock price of our Common Stock on the New York Stock Exchange on the last trading day prior to the date of grant. The fair value of each option is estimated on the date of grant using the Black-Scholes option pricing model, which resulted in a weighted average grant date fair value per share of $ 6.72 . During the three months ended March 31, 2017 , the Company also granted 61,404 shares of time-based restricted stock and 49,344 shares of total return-based restricted stock with weighted average grant date fair values per share of $ 52.49 and $ 49.59 , respectively. We recorded share-based compensation expense of $ 3.8 million and $ 3.6 million during the three months ended March 31, 2017 and 2016 , respectively. At March 31, 2017 , there was $8.1 million of total unrecognized share-based compensation costs, which will be recognized over a weighted average remaining contractual term of 2.6 years. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income/(Loss) | Accumulated Other Comprehensive Income/(Loss) The following table sets forth the components of accumulated other comprehensive income/(loss): Three Months Ended 2017 2016 Cash flow hedges: Beginning balance $ 4,949 $ (3,811 ) Unrealized gains/(losses) on cash flow hedges 452 (3,635 ) Amortization of cash flow hedges (1) 484 795 Total accumulated other comprehensive income/(loss) $ 5,885 $ (6,651 ) __________ (1) Amounts reclassified out of accumulated other comprehensive income/(loss) into contractual interest expense. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations The following tables set forth the results of operations and cash flows related to discontinued operations for the three months ended March 31, 2017 and 2016 : Three Months Ended 2017 2016 Rental and other revenues $ — $ 8,484 Operating expenses: Rental property and other expenses — 3,334 General and administrative — 1,388 Total operating expenses — 4,722 Interest expense — 85 Other income — 420 Income from discontinued operations — 4,097 Net gains on disposition of discontinued operations — 414,496 Total income from discontinued operations $ — $ 418,593 Three Months Ended 2017 2016 Cash flows from operating activities $ — $ 2,040 Cash flows from investing activities $ — $ 417,097 |
Earnings Per Share and Per Unit
Earnings Per Share and Per Unit | 3 Months Ended |
Mar. 31, 2017 | |
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 2017 2016 Earnings per Common Share - basic: Numerator: Income from continuing operations $ 33,485 $ 28,142 Net (income) attributable to noncontrolling interests in the Operating Partnership from continuing operations (888 ) (746 ) Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations (300 ) (308 ) Dividends on Preferred Stock (623 ) (626 ) Income from continuing operations available for common stockholders 31,674 26,462 Income from discontinued operations — 418,593 Net (income) attributable to noncontrolling interests in the Operating Partnership from discontinued operations — (12,265 ) Income from discontinued operations available for common stockholders — 406,328 Net income available for common stockholders $ 31,674 $ 432,790 Denominator: Denominator for basic earnings per Common Share – weighted average shares 101,738 96,373 Earnings per Common Share - basic: Income from continuing operations available for common stockholders $ 0.31 $ 0.27 Income from discontinued operations available for common stockholders — 4.22 Net income available for common stockholders $ 0.31 $ 4.49 Earnings per Common Share - diluted: Numerator: Income from continuing operations $ 33,485 $ 28,142 Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations (300 ) (308 ) Dividends on Preferred Stock (623 ) (626 ) Income from continuing operations available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership 32,562 27,208 Income from discontinued operations available for common stockholders — 418,593 Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership $ 32,562 $ 445,801 Denominator: Denominator for basic earnings per Common Share – weighted average shares 101,738 96,373 Add: Stock options using the treasury method 85 84 Noncontrolling interests Common Units 2,838 2,900 Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions (1) 104,661 99,357 Earnings per Common Share - diluted: Income from continuing operations available for common stockholders $ 0.31 $ 0.27 Income from discontinued operations available for common stockholders — 4.22 Net income available for common stockholders $ 0.31 $ 4.49 __________ (1) Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable. 12. Earnings Per Share and Per Unit - Continued The following table sets forth the computation of basic and diluted earnings per unit of the Operating Partnership: Three Months Ended 2017 2016 Earnings per Common Unit - basic: Numerator: Income from continuing operations $ 33,485 $ 28,142 Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations (300 ) (308 ) Distributions on Preferred Units (623 ) (626 ) Income from continuing operations available for common unitholders 32,562 27,208 Income from discontinued operations available for common unitholders — 418,593 Net income available for common unitholders $ 32,562 $ 445,801 Denominator: Denominator for basic earnings per Common Unit – weighted average units 104,167 98,864 Earnings per Common Unit - basic: Income from continuing operations available for common unitholders $ 0.31 $ 0.28 Income from discontinued operations available for common unitholders — 4.23 Net income available for common unitholders $ 0.31 $ 4.51 Earnings per Common Unit - diluted: Numerator: Income from continuing operations $ 33,485 $ 28,142 Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations (300 ) (308 ) Distributions on Preferred Units (623 ) (626 ) Income from continuing operations available for common unitholders 32,562 27,208 Income from discontinued operations available for common unitholders — 418,593 Net income available for common unitholders $ 32,562 $ 445,801 Denominator: Denominator for basic earnings per Common Unit – weighted average units 104,167 98,864 Add: Stock options using the treasury method 85 84 Denominator for diluted earnings per Common Unit – adjusted weighted average units and assumed conversions (1) 104,252 98,948 Earnings per Common Unit - diluted: Income from continuing operations available for common unitholders $ 0.31 $ 0.28 Income from discontinued operations available for common unitholders — 4.23 Net income available for common unitholders $ 0.31 $ 4.51 __________ (1) Includes all unvested restricted stock where distributions on such restricted stock are non-forfeitable. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2017 | |
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 which is defined as rental and other revenues less rental property and other expenses, for each of our reportable segments. Three Months Ended 2017 2016 Rental and Other Revenues: Office: Atlanta $ 34,209 $ 33,196 Greensboro 5,302 5,147 Memphis 11,795 12,014 Nashville 23,690 23,366 Orlando 12,438 11,485 Pittsburgh 14,849 15,140 Raleigh 29,546 28,222 Richmond 10,942 11,069 Tampa 23,256 21,438 Total Office Segment 166,027 161,077 Other 3,381 3,782 Total Rental and Other Revenues $ 169,408 $ 164,859 13. Segment Information - Continued Three Months Ended 2017 2016 Net Operating Income: Office: Atlanta $ 22,006 $ 21,052 Greensboro 3,358 3,148 Memphis 7,272 7,415 Nashville 16,624 16,815 Orlando 7,578 6,685 Pittsburgh 8,625 8,603 Raleigh 21,465 20,254 Richmond 7,621 7,429 Tampa 15,122 13,327 Total Office Segment 109,671 104,728 Other 2,341 2,551 Total Net Operating Income 112,012 107,279 Reconciliation to income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates: Depreciation and amortization (56,145 ) (53,494 ) General and administrative expenses (11,490 ) (11,137 ) Interest expense (17,863 ) (20,705 ) Other income 684 517 Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates $ 27,198 $ 22,460 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On April 20, 2017, the Company declared a cash dividend of $0.44 per share of Common Stock, which is payable on June 6, 2017 to stockholders of record as of May 17, 2017. On April 24, 2017, we obtained a $100.0 million secured mortgage loan from a third party lender with an effective interest rate of 4.0% . This loan is scheduled to mature in May 2029 . Subsequent to March 31, 2017, we obtained $150.0 million notional amount of forward-starting swaps that effectively lock the underlying treasury rate at 2.44% with respect to a forecasted debt issuance expected to occur prior to May 15, 2018. The counterparties under the swaps are major financial institutions. |
Description of Business and S22
Description of Business and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation, Policy [Policy Text Block] | 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. 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 2016 Annual Report on Form 10-K. |
Use of Estimates, Policy [Policy Text Block] | 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. |
Recently Issued Accounting Standards, Policy [Policy Text Block] | Recently Issued Accounting Standards The Financial Accounting Standards Board ("FASB") issued an accounting standards update ("ASU") that requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that we identify the contract with the customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when we satisfy the performance obligations. We will also be required to disclose information regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The ASU is required to be adopted in 2018. Retrospective application is required either to all periods presented or with the cumulative effect of initial adoption recognized in the period of adoption. Our initial analysis of our non-lease related revenue contracts indicates that the adoption of this ASU will not have a material effect on our Consolidated Financial Statements; however, we are still in the process of evaluating this ASU. The FASB issued an ASU that adds to and clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows. The ASU is required to be adopted in 2018 with retrospective application required. We do not expect such adoption to have a material effect on our Consolidated Statements of Cash Flows. The FASB issued an ASU that clarifies and narrows the definition of a business used in determining whether to account for a transaction as an asset acquisition or business combination. The guidance requires evaluation of the fair value of the assets acquired to determine if it is concentrated in a single identifiable asset or a group of similar identifiable assets. If so, the transferred assets would not be a business. The guidance also requires a business to include at least one substantive process and narrows the definition of outputs. The ASU is required to be adopted in 2018 and applied prospectively. We are in the process of evaluating this ASU. The FASB issued an ASU which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The ASU requires lessors to account for leases using an approach that is substantially equivalent to the existing guidance and is effective for reporting periods beginning in 2019 with early adoption permitted. We are in the process of evaluating this ASU. The FASB issued an ASU that requires, among other things, the use of a new current expected credit loss ("CECL") model in determining our allowances for doubtful accounts with respect to accounts receivable, accrued straight-line rents receivable and mortgages and notes receivable. The CECL model requires that we estimate our lifetime expected credit loss with respect to these receivables and record allowances that, when deducted from the balance of the receivables, represent the net amounts expected to be collected. We will also be required to disclose information about how we developed the allowances, including changes in the factors (e.g., portfolio mix, credit trends, unemployment, gross domestic product, etc.) that influenced our estimate of expected credit losses and the reasons for those changes. We will apply the ASU’s provisions as a cumulative-effect adjustment to retained earnings upon adoption in 2020. We are in the process of evaluating this ASU. |
Intangible Assets and Below M23
Intangible Assets and Below Market Lease Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Total Intangible Assets and Below Market Lease Liabilities [Table Text Block] | The following table sets forth total intangible assets and acquisition-related below market lease liabilities, net of accumulated amortization: March 31, December 31, Assets: Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets) $ 352,289 $ 353,581 Less accumulated amortization (142,148 ) (140,081 ) $ 210,141 $ 213,500 Liabilities (in accounts payable, accrued expenses and other liabilities): Acquisition-related below market lease liabilities $ 61,049 $ 61,221 Less accumulated amortization (24,482 ) (23,074 ) $ 36,567 $ 38,147 |
Amortization of Intangible Assets and Below Market Lease Liabilities [Table Text Block] | The following table sets forth amortization of intangible assets and below market lease liabilities: Three Months Ended 2017 2016 Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization) $ 10,619 $ 11,335 Amortization of lease incentives (in rental and other revenues) $ 397 $ 711 Amortization of acquisition-related intangible assets (in rental and other revenues) $ 1,036 $ 1,031 Amortization of acquisition-related intangible assets (in rental property and other expenses) $ 137 $ 138 Amortization of acquisition-related below market lease liabilities (in rental and other revenues) $ (1,580 ) $ (1,772 ) |
Scheduled Future Amortization of Intangible Assets and Below Market Lease Liabilities [Table Text Block] | 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 Intangible Assets (in Rental Property and Other Expenses) Amortization of Acquisition-Related Below Market Lease Liabilities (in Rental and Other Revenues) April 1 through December 31, 2017 $ 31,933 $ 1,155 $ 1,815 $ 412 $ (4,665 ) 2018 35,918 1,432 1,680 553 (5,962 ) 2019 30,251 1,214 1,286 553 (5,492 ) 2020 25,543 936 967 525 (5,180 ) 2021 21,315 729 647 — (4,409 ) Thereafter 46,614 2,778 1,885 — (10,859 ) $ 191,574 $ 8,244 $ 8,280 $ 2,043 $ (36,567 ) Weighted average remaining amortization periods as of March 31, 2017 (in years) 6.7 8.2 6.4 3.7 7.1 |
Mortgages and Notes Payable (Ta
Mortgages and Notes Payable (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Consolidated Mortgages and Notes Payable [Table Text Block] | The following table sets forth our mortgages and notes payable: March 31, December 31, Secured indebtedness $ 127,358 $ 128,204 Unsecured indebtedness 1,923,692 1,826,145 Less-unamortized debt issuance costs (8,564 ) (6,302 ) Total mortgages and notes payable, net $ 2,042,486 $ 1,948,047 |
Derivative Financial Instrume25
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments, Fair Value [Table Text Block] | The following table sets forth the gross fair value of our derivatives: March 31, December 31, Derivatives: Derivatives designated as cash flow hedges in prepaid expenses and other assets: Interest rate swaps $ — $ 7,619 Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities: Interest rate swaps $ 1,001 $ 1,870 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | The following table sets forth the effect of our cash flow hedges on accumulated other comprehensive income/(loss) and interest expense: Three Months Ended 2017 2016 Derivatives Designated as Cash Flow Hedges: Amount of unrealized gains/(losses) recognized in accumulated other comprehensive income/(loss) on derivatives (effective portion): Interest rate swaps $ 452 $ (3,635 ) Amount of net losses reclassified out of accumulated other comprehensive income/(loss) into contractual interest expense (effective portion): Interest rate swaps $ 484 $ 795 |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) - Highwoods Properties, Inc. [Member] | 3 Months Ended |
Mar. 31, 2017 | |
Noncontrolling Interest [Line Items] | |
Noncontrolling Interests in the Operating Partnership [Table Text Block] | The following table sets forth the Company's noncontrolling interests in the Operating Partnership: Three Months Ended 2017 2016 Beginning noncontrolling interests in the Operating Partnership $ 144,802 $ 126,429 Adjustment of noncontrolling interests in the Operating Partnership to fair value (4,972 ) 429 Conversions of Common Units to Common Stock (102 ) — Net income attributable to noncontrolling interests in the Operating Partnership 888 13,011 Distributions to noncontrolling interests in the Operating Partnership (1,249 ) (1,232 ) Total noncontrolling interests in the Operating Partnership $ 139,367 $ 138,637 |
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership [Table Text Block] | 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 2017 2016 Net income available for common stockholders $ 31,674 $ 432,790 Increase in additional paid in capital from conversions of Common Units 102 — Change from net income available for common stockholders and transfers from noncontrolling interests $ 31,776 $ 432,790 |
Disclosure About Fair Value o27
Disclosure About Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements of Assets, Liabilities and Noncontrolling Interests [Table Text Block] | 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 in Active Markets for Identical Assets or Liabilities Significant Observable Inputs Fair Value at March 31, 2017: Assets: Mortgages and notes receivable, at fair value (1) $ 7,787 $ — $ 7,787 Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 2,370 2,370 — Total Assets $ 10,157 $ 2,370 $ 7,787 Noncontrolling Interests in the Operating Partnership $ 139,367 $ 139,367 $ — Liabilities: Mortgages and notes payable, net, at fair value (1) $ 2,050,264 $ — $ 2,050,264 Interest rate swaps (in accounts payable, accrued expenses and other liabilities) 1,001 — 1,001 Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 2,370 2,370 — Total Liabilities $ 2,053,635 $ 2,370 $ 2,051,265 Fair Value at December 31, 2016: Assets: Mortgages and notes receivable, at fair value (1) $ 8,833 $ — $ 8,833 Interest rate swaps (in prepaid expenses and other assets) 7,619 — 7,619 Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 2,451 2,451 — Total Assets $ 18,903 $ 2,451 $ 16,452 Noncontrolling Interests in the Operating Partnership $ 144,802 $ 144,802 $ — Liabilities: Mortgages and notes payable, net, at fair value (1) $ 1,965,611 $ — $ 1,965,611 Interest rate swaps (in accounts payable, accrued expenses and other liabilities) 1,870 — 1,870 Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 2,451 2,451 — Total Liabilities $ 1,969,932 $ 2,451 $ 1,967,481 __________ (1) Amounts recorded at historical cost on our Consolidated Balance Sheets at March 31, 2017 and December 31, 2016 . |
Accumulated Other Comprehensi28
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of Accumulated Other Comprehensive Income/(Loss) [Table Text Block] | The following table sets forth the components of accumulated other comprehensive income/(loss): Three Months Ended 2017 2016 Cash flow hedges: Beginning balance $ 4,949 $ (3,811 ) Unrealized gains/(losses) on cash flow hedges 452 (3,635 ) Amortization of cash flow hedges (1) 484 795 Total accumulated other comprehensive income/(loss) $ 5,885 $ (6,651 ) __________ (1) Amounts reclassified out of accumulated other comprehensive income/(loss) into contractual interest expense. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Operations Classified as Discontinued Operations [Table Text Block] | The following tables set forth the results of operations and cash flows related to discontinued operations for the three months ended March 31, 2017 and 2016 : Three Months Ended 2017 2016 Rental and other revenues $ — $ 8,484 Operating expenses: Rental property and other expenses — 3,334 General and administrative — 1,388 Total operating expenses — 4,722 Interest expense — 85 Other income — 420 Income from discontinued operations — 4,097 Net gains on disposition of discontinued operations — 414,496 Total income from discontinued operations $ — $ 418,593 Three Months Ended 2017 2016 Cash flows from operating activities $ — $ 2,040 Cash flows from investing activities $ — $ 417,097 |
Earnings Per Share and Per Un30
Earnings Per Share and Per Unit (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share and Per Unit Basic and Diluted [Line Items] | |
Earnings Per Share [Table Text Block] | The following table sets forth the computation of basic and diluted earnings per share of the Company: Three Months Ended 2017 2016 Earnings per Common Share - basic: Numerator: Income from continuing operations $ 33,485 $ 28,142 Net (income) attributable to noncontrolling interests in the Operating Partnership from continuing operations (888 ) (746 ) Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations (300 ) (308 ) Dividends on Preferred Stock (623 ) (626 ) Income from continuing operations available for common stockholders 31,674 26,462 Income from discontinued operations — 418,593 Net (income) attributable to noncontrolling interests in the Operating Partnership from discontinued operations — (12,265 ) Income from discontinued operations available for common stockholders — 406,328 Net income available for common stockholders $ 31,674 $ 432,790 Denominator: Denominator for basic earnings per Common Share – weighted average shares 101,738 96,373 Earnings per Common Share - basic: Income from continuing operations available for common stockholders $ 0.31 $ 0.27 Income from discontinued operations available for common stockholders — 4.22 Net income available for common stockholders $ 0.31 $ 4.49 Earnings per Common Share - diluted: Numerator: Income from continuing operations $ 33,485 $ 28,142 Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations (300 ) (308 ) Dividends on Preferred Stock (623 ) (626 ) Income from continuing operations available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership 32,562 27,208 Income from discontinued operations available for common stockholders — 418,593 Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership $ 32,562 $ 445,801 Denominator: Denominator for basic earnings per Common Share – weighted average shares 101,738 96,373 Add: Stock options using the treasury method 85 84 Noncontrolling interests Common Units 2,838 2,900 Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions (1) 104,661 99,357 Earnings per Common Share - diluted: Income from continuing operations available for common stockholders $ 0.31 $ 0.27 Income from discontinued operations available for common stockholders — 4.22 Net income available for common stockholders $ 0.31 $ 4.49 __________ (1) Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable. |
Highwoods Realty Limited Partnership [Member] | |
Earnings Per Share and Per Unit Basic and Diluted [Line Items] | |
Earnings Per Unit [Table Text Block] | The following table sets forth the computation of basic and diluted earnings per unit of the Operating Partnership: Three Months Ended 2017 2016 Earnings per Common Unit - basic: Numerator: Income from continuing operations $ 33,485 $ 28,142 Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations (300 ) (308 ) Distributions on Preferred Units (623 ) (626 ) Income from continuing operations available for common unitholders 32,562 27,208 Income from discontinued operations available for common unitholders — 418,593 Net income available for common unitholders $ 32,562 $ 445,801 Denominator: Denominator for basic earnings per Common Unit – weighted average units 104,167 98,864 Earnings per Common Unit - basic: Income from continuing operations available for common unitholders $ 0.31 $ 0.28 Income from discontinued operations available for common unitholders — 4.23 Net income available for common unitholders $ 0.31 $ 4.51 Earnings per Common Unit - diluted: Numerator: Income from continuing operations $ 33,485 $ 28,142 Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations (300 ) (308 ) Distributions on Preferred Units (623 ) (626 ) Income from continuing operations available for common unitholders 32,562 27,208 Income from discontinued operations available for common unitholders — 418,593 Net income available for common unitholders $ 32,562 $ 445,801 Denominator: Denominator for basic earnings per Common Unit – weighted average units 104,167 98,864 Add: Stock options using the treasury method 85 84 Denominator for diluted earnings per Common Unit – adjusted weighted average units and assumed conversions (1) 104,252 98,948 Earnings per Common Unit - diluted: Income from continuing operations available for common unitholders $ 0.31 $ 0.28 Income from discontinued operations available for common unitholders — 4.23 Net income available for common unitholders $ 0.31 $ 4.51 __________ (1) Includes all unvested restricted stock where distributions on such restricted stock are non-forfeitable. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | 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 which is defined as rental and other revenues less rental property and other expenses, for each of our reportable segments. Three Months Ended 2017 2016 Rental and Other Revenues: Office: Atlanta $ 34,209 $ 33,196 Greensboro 5,302 5,147 Memphis 11,795 12,014 Nashville 23,690 23,366 Orlando 12,438 11,485 Pittsburgh 14,849 15,140 Raleigh 29,546 28,222 Richmond 10,942 11,069 Tampa 23,256 21,438 Total Office Segment 166,027 161,077 Other 3,381 3,782 Total Rental and Other Revenues $ 169,408 $ 164,859 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Three Months Ended 2017 2016 Net Operating Income: Office: Atlanta $ 22,006 $ 21,052 Greensboro 3,358 3,148 Memphis 7,272 7,415 Nashville 16,624 16,815 Orlando 7,578 6,685 Pittsburgh 8,625 8,603 Raleigh 21,465 20,254 Richmond 7,621 7,429 Tampa 15,122 13,327 Total Office Segment 109,671 104,728 Other 2,341 2,551 Total Net Operating Income 112,012 107,279 Reconciliation to income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates: Depreciation and amortization (56,145 ) (53,494 ) General and administrative expenses (11,490 ) (11,137 ) Interest expense (17,863 ) (20,705 ) Other income 684 517 Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates $ 27,198 $ 22,460 |
Description of Business and S32
Description of Business and Significant Accounting Policies (Details) $ / shares in Units, $ in Thousands, ft² in Millions | 3 Months Ended | |
Mar. 31, 2017USD ($)aft²$ / sharesshares | Mar. 31, 2016USD ($) | |
Description of Business and Significant Accounting Policies [Line Items] | ||
Rentable square feet of commercial real estate properties (in sq feet) | ft² | 31.3 | |
Rentable square feet of commercial real estate properties under development (in sq feet) | ft² | 1.2 | |
Undeveloped land suitable for development (in acres) | a | 400 | |
Net proceeds of Common Stock sold during the period | $ | $ 9,134 | $ 50,898 |
Highwoods Properties, Inc. [Member] | ||
Description of Business and Significant Accounting Policies [Line Items] | ||
Common Units of partnership owned by the Company (in shares) | 101,600,000 | |
Percentage of ownership of Common Units (in hundredths) | 97.30% | |
Common Units redeemed for a like number of common shares of stock (in shares) | 2,000 | |
Highwoods Properties, Inc. [Member] | ATM Equity Offering [Member] | ||
Description of Business and Significant Accounting Policies [Line Items] | ||
Net proceeds of Common Stock sold during the period | $ | $ 9,100 | |
Number of Common Stock sold during the period (in shares) | 186,185 | |
Average price of Common Stock sold during the period (in dollars per share) | $ / shares | $ 49.73 | |
Highwoods Properties, Inc. [Member] | ATM Equity Offering [Member] | Maximum [Member] | ||
Description of Business and Significant Accounting Policies [Line Items] | ||
Net proceeds of Common Stock sold during the period | $ | $ 300,000 | |
Highwoods Realty Limited Partnership [Member] | ||
Description of Business and Significant Accounting Policies [Line Items] | ||
Common Units of partnership not owned by the Company (in shares) | 2,800,000 |
Real Estate Assets (Details)
Real Estate Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Significant Acquisitions and Disposals [Line Items] | ||
Gains on disposition of property | $ 5,332 | $ 4,397 |
2017 Dispositions [Member] | ||
Significant Acquisitions and Disposals [Line Items] | ||
Purchase price of real estate | 13,000 | |
Disposition closing credits excluded | 1,200 | |
Gains on disposition of property | $ 5,300 |
Mortgages and Notes Receivable
Mortgages and Notes Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Mortgages and notes receivable [Abstract] | ||
Mortgages and notes receivable, net | $ 7,787 | $ 8,833 |
Intangible Assets and Below M35
Intangible Assets and Below Market Lease Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Assets: | |||
Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets) | $ 352,289 | $ 353,581 | |
Deferred leasing costs, accumulated amortization | (142,148) | (140,081) | |
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | 210,141 | 213,500 | |
Liabilities (in accounts payable, accrued expenses and other liabilities): | |||
Acquisition-related below market lease liabilities, gross | 61,049 | 61,221 | |
Acquisition-related below market lease liabilities, accumulated amortization | (24,482) | (23,074) | |
Acquisition-related below market lease liabilities, net | 36,567 | $ 38,147 | |
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 | 191,574 | ||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||
Amortization of intangible assets | 10,619 | $ 11,335 | |
Lease Incentives (in Rental and Other Revenues) [Member] | |||
Assets: | |||
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | 8,244 | ||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||
Amortization of intangible assets | 397 | 711 | |
Acquisition-Related Intangible Assets (in Rental and Other Revenues) [Member] | |||
Assets: | |||
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | 8,280 | ||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||
Amortization of intangible assets | 1,036 | 1,031 | |
Acquisition-Related Intangible Assets (in Rental Property and Other Expenses) [Member] | |||
Assets: | |||
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | 2,043 | ||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||
Amortization of intangible assets | 137 | 138 | |
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 | 36,567 | ||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||
Amortization of acquisition-related below market lease liabilities | $ (1,580) | $ (1,772) |
Intangible Assets and Below M36
Intangible Assets and Below Market Lease Liabilities - Scheduled Future Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Scheduled future amortization of intangible assets [Abstract] | ||
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | $ 210,141 | $ 213,500 |
Scheduled future amortization of below market lease liabilities [Abstract] | ||
Total scheduled future amortization of acquisition-related below market lease liabilities | (36,567) | $ (38,147) |
Deferred Leasing Costs and Acquisition-Related Intangible Assets (in Depreciation and Amortization) [Member] | ||
Scheduled future amortization of intangible assets [Abstract] | ||
April 1 through December 31, 2017 | 31,933 | |
2,018 | 35,918 | |
2,019 | 30,251 | |
2,020 | 25,543 | |
2,021 | 21,315 | |
Thereafter | 46,614 | |
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | $ 191,574 | |
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract] | ||
Finite-lived intangible assets, average useful life (in years) | 6 years 8 months 12 days | |
Lease Incentives (in Rental and Other Revenues) [Member] | ||
Scheduled future amortization of intangible assets [Abstract] | ||
April 1 through December 31, 2017 | $ 1,155 | |
2,018 | 1,432 | |
2,019 | 1,214 | |
2,020 | 936 | |
2,021 | 729 | |
Thereafter | 2,778 | |
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | $ 8,244 | |
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 2 months 12 days | |
Acquisition-Related Intangible Assets (in Rental and Other Revenues) [Member] | ||
Scheduled future amortization of intangible assets [Abstract] | ||
April 1 through December 31, 2017 | $ 1,815 | |
2,018 | 1,680 | |
2,019 | 1,286 | |
2,020 | 967 | |
2,021 | 647 | |
Thereafter | 1,885 | |
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | $ 8,280 | |
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract] | ||
Finite-lived intangible assets, average useful life (in years) | 6 years 4 months 24 days | |
Acquisition-Related Intangible Assets (in Rental Property and Other Expenses) [Member] | ||
Scheduled future amortization of intangible assets [Abstract] | ||
April 1 through December 31, 2017 | $ 412 | |
2,018 | 553 | |
2,019 | 553 | |
2,020 | 525 | |
2,021 | 0 | |
Thereafter | 0 | |
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | $ 2,043 | |
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract] | ||
Finite-lived intangible assets, average useful life (in years) | 3 years 8 months 12 days | |
Acquisition-Related Below Market Lease Liabilities (in Rental and Other Revenues) [Member] | ||
Scheduled future amortization of below market lease liabilities [Abstract] | ||
April 1 through December 31, 2017 | $ (4,665) | |
2,018 | (5,962) | |
2,019 | (5,492) | |
2,020 | (5,180) | |
2,021 | (4,409) | |
Thereafter | (10,859) | |
Total scheduled future amortization of acquisition-related below market lease liabilities | $ (36,567) | |
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) | 7 years 1 month 6 days |
Mortgages and Notes Payable (De
Mortgages and Notes Payable (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017USD ($)extensions | Apr. 18, 2017USD ($) | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | |||
Mortgages and notes payable | $ 2,042,486 | $ 1,948,047 | |
Unamortized debt issuance costs | $ (8,564) | (6,302) | |
Maximum liquidity requirements (in years) | 1 year | ||
Revolving Credit Facility due 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity on revolving credit facility | $ 475,000 | ||
Maturity date on revolving credit facility | Jan. 1, 2018 | ||
Additional borrowing capacity on revolving credit facility | $ 75,000 | ||
Number of additional maturity extensions | extensions | 2 | ||
Term of optional extension | 6 months | ||
Interest rate, basis spread (in hundredths) | 1.10% | ||
Annual facility fee (in hundredths) | 0.20% | ||
Amount outstanding on revolving credit facility | $ 131,000 | ||
Outstanding letters of credit on revolving credit facility | 200 | ||
Unused borrowing capacity on revolving credit facility | 343,800 | ||
3.875% (4.038% effective rate) Notes due 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Principal debt amount | $ 300,000 | ||
Interest rate (in hundredths) | 3.875% | ||
Scheduled maturity date | Mar. 1, 2027 | ||
Original issue discount | $ 4,000 | ||
Effective interest rate (in hundredths) | 4.038% | ||
Debt issuance costs incurred | $ 2,500 | ||
5.85% (5.88% effective rate) Notes due 2017 [Member] | |||
Debt Instrument [Line Items] | |||
Principal debt amount | $ 379,700 | ||
Interest rate (in hundredths) | 5.85% | ||
Variable Rate Term Loan due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Principal debt amount | $ 150,000 | ||
Variable Rate Term Loan (amended) due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate, basis spread (in hundredths) | 1.10% | ||
Principal debt amount | $ 200,000 | ||
Scheduled maturity date | Jan. 1, 2022 | ||
Debt issuance costs incurred | $ 300 | ||
Secured Loan due November 2017 [Member] | |||
Debt Instrument [Line Items] | |||
Principal debt amount | $ 108,300 | ||
Scheduled maturity date | Nov. 1, 2017 | ||
Unsecured Notes due April 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Principal debt amount | $ 200,000 | ||
Scheduled maturity date | Apr. 15, 2018 | ||
Anticipated Fixed Rate Secured Loan [Member] | |||
Debt Instrument [Line Items] | |||
Principal debt amount | $ 100,000 | ||
Secured indebtedness [Member] | |||
Debt Instrument [Line Items] | |||
Mortgages and notes payable | 127,358 | 128,204 | |
Aggregate undepreciated book value of secured real estate assets | 254,200 | ||
Unsecured indebtedness [Member] | |||
Debt Instrument [Line Items] | |||
Mortgages and notes payable | $ 1,923,692 | $ 1,826,145 | |
Subsequent Event [Member] | Revolving Credit Facility due 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Amount outstanding on revolving credit facility | $ 130,000 | ||
Outstanding letters of credit on revolving credit facility | 200 | ||
Unused borrowing capacity on revolving credit facility | $ 344,800 | ||
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility due 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Facility interest rate basis | LIBOR plus 110 basis points | ||
London Interbank Offered Rate (LIBOR) [Member] | Variable Rate Term Loan (amended) due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Variable interest rate basis | LIBOR plus 110 basis points |
Derivative Financial Instrume38
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Derivative [Line Items] | |||
Expected increase to interest expense | $ 500 | ||
Derivatives designated as cash flow hedges in prepaid expenses and other assets [Abstract] | |||
Interest rate swaps | 0 | $ 7,619 | |
Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities [Abstract] | |||
Interest rate swaps | 1,001 | 1,870 | |
Amount of unrealized gains/(losses) recognized in accumulated other comprehensive income/(loss) on derivatives (effective portion) [Abstract] | |||
Interest rate swaps | 452 | $ (3,635) | |
Amount of losses reclassified out of accumulated other comprehensive income/(loss) into contractual interest expense (effective portion) [Abstract] | |||
Interest rate swaps | 484 | $ 795 | |
3.875% (4.038% effective rate) Notes due 2027 [Member] | |||
Derivative [Line Items] | |||
Principal debt amount | $ 300,000 | ||
Interest rate (in hundredths) | 3.875% | ||
Forward Starting Swaps [Member] | |||
Derivative [Line Items] | |||
Amount of borrowings, subject to swaps | $ 150,000 | ||
Underlying treasury rate term (in years) | 10 years | ||
Underlying treasury rate locked by forward-starting swaps (in hundredths) | 1.90% | ||
Gain on forward-starting interest rate swaps | $ 7,300 |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Noncontrolling Interests in Consolidated Affiliates [Abstract] | ||
Consolidated joint venture, partner's interest (in hundredths) | 50.00% | |
Noncontrolling Interests in the Operating Partnership [Roll Forward] | ||
Beginning noncontrolling interests in the Operating Partnership | $ 144,802 | |
Adjustment of noncontrolling interests in the Operating Partnership to fair value | (4,972) | $ 429 |
Conversions of Common Units to Common Stock | (102) | 0 |
Net income attributable to noncontrolling interests in the Operating Partnership | 888 | 13,011 |
Distributions to noncontrolling interests in the Operating Partnership | (1,249) | (1,232) |
Total noncontrolling interests in the Operating Partnership | 139,367 | |
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership [Abstract] | ||
Net income available for common stockholders | 31,674 | 432,790 |
Highwoods Properties, Inc. [Member] | ||
Noncontrolling Interests in the Operating Partnership [Roll Forward] | ||
Beginning noncontrolling interests in the Operating Partnership | 144,802 | 126,429 |
Adjustment of noncontrolling interests in the Operating Partnership to fair value | (4,972) | 429 |
Conversions of Common Units to Common Stock | (102) | 0 |
Net income attributable to noncontrolling interests in the Operating Partnership | 888 | 13,011 |
Distributions to noncontrolling interests in the Operating Partnership | (1,249) | (1,232) |
Total noncontrolling interests in the Operating Partnership | 139,367 | 138,637 |
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership [Abstract] | ||
Net income available for common stockholders | 31,674 | 432,790 |
Increase in additional paid in capital from conversions of Common Units to Common Stock | 102 | 0 |
Change from net income available for common stockholders and transfers from noncontrolling interests | $ 31,776 | $ 432,790 |
Disclosure About Fair Value o40
Disclosure About Fair Value of Financial Instruments - Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Tax Increment Financing Bond [Member] | |
Tax increment financing bond [Abstract] | |
Estimated fair value of outstanding principal amount at the date of sale | $ 11.2 |
Disclosure About Fair Value o41
Disclosure About Fair Value of Financial Instruments - Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Mortgages and notes receivable, at fair value | $ 7,787 | $ 8,833 |
Interest rate swaps (in prepaid expenses and other assets) | 7,619 | |
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) | 2,370 | 2,451 |
Total Assets | 10,157 | 18,903 |
Liabilities: | ||
Mortgages and notes payable, net, at fair value | 2,050,264 | 1,965,611 |
Interest rate swaps (in accounts payable, accrued expenses and other liabilities) | 1,001 | 1,870 |
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 2,370 | 2,451 |
Total Liabilities | 2,053,635 | 1,969,932 |
Level 1 [Member] | ||
Assets: | ||
Mortgages and notes receivable, at fair value | 0 | 0 |
Interest rate swaps (in prepaid expenses and other assets) | 0 | |
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) | 2,370 | 2,451 |
Total Assets | 2,370 | 2,451 |
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) | 2,370 | 2,451 |
Total Liabilities | 2,370 | 2,451 |
Level 2 [Member] | ||
Assets: | ||
Mortgages and notes receivable, at fair value | 7,787 | 8,833 |
Interest rate swaps (in prepaid expenses and other assets) | 7,619 | |
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) | 0 | 0 |
Total Assets | 7,787 | 16,452 |
Liabilities: | ||
Mortgages and notes payable, net, at fair value | 2,050,264 | 1,965,611 |
Interest rate swaps (in accounts payable, accrued expenses and other liabilities) | 1,001 | 1,870 |
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 0 | 0 |
Total Liabilities | 2,051,265 | 1,967,481 |
Highwoods Properties, Inc. [Member] | ||
Assets: | ||
Noncontrolling Interests in the Operating Partnership | 139,367 | 144,802 |
Highwoods Properties, Inc. [Member] | Level 1 [Member] | ||
Assets: | ||
Noncontrolling Interests in the Operating Partnership | 139,367 | 144,802 |
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 | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 3,783 | $ 3,556 |
Total unrecognized stock-based compensation costs | $ 8,100 | |
Weighted average remaining contractual term for recognition of unrecognized stock-based compensation costs (in years) | 2 years 7 months 6 days | |
Highwoods Properties, Inc. [Member] | Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options granted (in shares) | 168,748 | |
Weighted average grant date fair value of each stock option granted (in dollars per option) | $ 6.72 | |
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) | 61,404 | |
Weighted average grant date fair value of each restricted stock share granted (in dollars per share) | $ 52.49 | |
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) | 49,344 | |
Weighted average grant date fair value of each restricted stock share granted (in dollars per share) | $ 49.59 |
Accumulated Other Comprehensi43
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) Calculation [Roll Forward] | ||
Beginning balance | $ 4,949 | $ (3,811) |
Unrealized gains/(losses) on cash flow hedges | 452 | (3,635) |
Amortization of cash flow hedges | 484 | 795 |
Total accumulated other comprehensive income/(loss) | $ 5,885 | $ (6,651) |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Discontinued Operations [Abstract] | ||
Rental and other revenues | $ 0 | $ 8,484 |
Operating expenses: | ||
Rental property and other expenses | 0 | 3,334 |
General and administrative | 0 | 1,388 |
Total operating expenses | 0 | 4,722 |
Interest expense | 0 | 85 |
Other income | 0 | 420 |
Income from discontinued operations | 0 | 4,097 |
Net gains on disposition of discontinued operations | 0 | 414,496 |
Total income from discontinued operations | 0 | 418,593 |
Net Cash Provided by/(Used in) Discontinued Operations [Abstract] | ||
Cash flows from operating activities | 0 | 2,040 |
Cash flows from investing activities | $ 0 | $ 417,097 |
Earnings Per Share and Per Un45
Earnings Per Share and Per Unit (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings per Common Share and Per Unit - basic: [Abstract] | ||
Income from continuing operations | $ 33,485 | $ 28,142 |
Net (income) attributable to noncontrolling interests in the Operating Partnership from continuing operations | (888) | (746) |
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations | (300) | (308) |
Dividends on Preferred Stock | (623) | (626) |
Income from continuing operations available for common stockholders | 31,674 | 26,462 |
Income from discontinued operations | 0 | 418,593 |
Net (income) attributable to noncontrolling interests in the Operating Partnership from discontinued operations | 0 | (12,265) |
Income from discontinued operations available for common stockholders | 0 | 406,328 |
Net income available for common stockholders | $ 31,674 | $ 432,790 |
Denominator: | ||
Denominator for basic earnings per Common Share - weighted average shares (in shares) | 101,738 | 96,373 |
Earnings per Common Share - basic: | ||
Income from continuing operations available for common stockholders (in dollars per share) | $ 0.31 | $ 0.27 |
Income from discontinued operations available for common stockholders (in dollars per share) | 0 | 4.22 |
Net income available for common stockholders (in dollars per share) | $ 0.31 | $ 4.49 |
Earnings per Common Share and Per Unit - diluted: [Abstract] | ||
Income from continuing operations | $ 33,485 | $ 28,142 |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (300) | (308) |
Dividends on Preferred Stock | (623) | (626) |
Income from continuing operations available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership | 32,562 | 27,208 |
Income from discontinued operations available for common stockholders | 0 | 418,593 |
Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership | $ 32,562 | $ 445,801 |
Denominator: | ||
Denominator for basic earnings per Common Share - weighted average shares (in shares) | 101,738 | 96,373 |
Stock options using the treasury method (in shares) | 85 | 84 |
Noncontrolling interests Common Units (in shares) | 2,838 | 2,900 |
Denominator for diluted earnings per Common Share - adjusted weighted average shares and assumed conversions (in shares) | 104,661 | 99,357 |
Earnings per Common Share - diluted: | ||
Income from continuing operations available for common stockholders (in dollars per share) | $ 0.31 | $ 0.27 |
Income from discontinued operations available for common stockholders (in dollars per share) | 0 | 4.22 |
Net income available for common stockholders (in dollars per share) | $ 0.31 | $ 4.49 |
Highwoods Realty Limited Partnership [Member] | ||
Earnings per Common Share and Per Unit - basic: [Abstract] | ||
Income from continuing operations | $ 33,485 | $ 28,142 |
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations | (300) | (308) |
Distributions on Preferred Units | (623) | (626) |
Income from continuing operations available for common unitholders | 32,562 | 27,208 |
Income from discontinued operations available for common unitholders | 0 | 418,593 |
Net income available for common unitholders | $ 32,562 | $ 445,801 |
Denominator: | ||
Denominator for basic earnings per Common Unit - weighted average units (in shares) | 104,167 | 98,864 |
Earnings per Common Unit - basic: | ||
Income from continuing operations available for common unitholders (in dollars per share) | $ 0.31 | $ 0.28 |
Income from discontinued operations available for common unitholders (in dollars per share) | 0 | 4.23 |
Net income available for common unitholders (in dollars per share) | $ 0.31 | $ 4.51 |
Earnings per Common Share and Per Unit - diluted: [Abstract] | ||
Income from continuing operations | $ 33,485 | $ 28,142 |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (300) | (308) |
Distributions on Preferred Units | (623) | (626) |
Income from continuing operations available for common unitholders | 32,562 | 27,208 |
Income from discontinued operations available for common unitholders | 0 | 418,593 |
Net income available for common unitholders | $ 32,562 | $ 445,801 |
Denominator: | ||
Denominator for basic earnings per Common Unit - weighted average units (in shares) | 104,167 | 98,864 |
Stock options using the treasury method (in shares) | 85 | 84 |
Denominator for diluted earnings per Common Unit - adjusted weighted average units and assumed conversions (in shares) | 104,252 | 98,948 |
Earnings per Common Unit - diluted: | ||
Income from continuing operations available for common unitholders (in dollars per share) | $ 0.31 | $ 0.28 |
Income from discontinued operations available for common unitholders (in dollars per share) | 0 | 4.23 |
Net income available for common unitholders (in dollars per share) | $ 0.31 | $ 4.51 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | $ 169,408 | $ 164,859 |
Total Net Operating Income | 112,012 | 107,279 |
Reconciliation to income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates: | ||
Depreciation and amortization | (56,145) | (53,494) |
General and administrative expenses | (11,490) | (11,137) |
Interest expense | (17,863) | (20,705) |
Other income | 684 | 517 |
Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates | 27,198 | 22,460 |
Total Office Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 166,027 | 161,077 |
Total Net Operating Income | 109,671 | 104,728 |
Office Atlanta, GA [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 34,209 | 33,196 |
Total Net Operating Income | 22,006 | 21,052 |
Office Greensboro, NC [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 5,302 | 5,147 |
Total Net Operating Income | 3,358 | 3,148 |
Office Memphis, TN [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 11,795 | 12,014 |
Total Net Operating Income | 7,272 | 7,415 |
Office Nashville, TN [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 23,690 | 23,366 |
Total Net Operating Income | 16,624 | 16,815 |
Office Orlando, FL [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 12,438 | 11,485 |
Total Net Operating Income | 7,578 | 6,685 |
Office Pittsburgh, PA [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 14,849 | 15,140 |
Total Net Operating Income | 8,625 | 8,603 |
Office Raleigh, NC [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 29,546 | 28,222 |
Total Net Operating Income | 21,465 | 20,254 |
Office Richmond, VA [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 10,942 | 11,069 |
Total Net Operating Income | 7,621 | 7,429 |
Office Tampa, FL [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 23,256 | 21,438 |
Total Net Operating Income | 15,122 | 13,327 |
Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Rental and Other Revenues | 3,381 | 3,782 |
Total Net Operating Income | $ 2,341 | $ 2,551 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 24, 2017 | Apr. 20, 2017 | Mar. 31, 2017 | Mar. 31, 2016 |
Subsequent Event [Line Items] | ||||
Dividends declared per Common Share (in dollars per share) | $ 0.440 | $ 0.425 | ||
Highwoods Properties, Inc. [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Dividends declared per Common Share (in dollars per share) | $ 0.44 | |||
4.0% Mortgage Loan due 2029 [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Principal debt amount | $ 100 | |||
Interest rate (in hundredths) | 4.00% | |||
Scheduled maturity date | May 10, 2029 | |||
Forward Starting Swaps (2) [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Amount of borrowings, subject to swaps | $ 150 | |||
Underlying treasury rate locked by forward-starting swaps (in hundredths) | 2.44% |