Cover Page Cover Page
Cover Page Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 15, 2019 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity Registrant Name | HIGHWOODS PROPERTIES, INC. | |
Entity Incorporation, State or Country Code | MD | |
Entity File Number | 001-13100 | |
Entity Tax Identification Number | 56-1871668 | |
Entity Address, Address Line One | 3100 Smoketree Court | |
Entity Address, Address Line Two | Suite 600 | |
Entity Address, City or Town | Raleigh | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 27604 | |
City Area Code | 919 | |
Local Phone Number | 872-4924 | |
Title of 12(b) Security | Common Stock, $.01 par value, of Highwoods Properties, Inc. | |
Trading Symbol | HIW | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 103,743,546 | |
Entity Central Index Key | 0000921082 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Highwoods Realty Limited Partnership [Member] | ||
Entity Information [Line Items] | ||
Entity Registrant Name | HIGHWOODS REALTY LIMITED PARTNERSHIP | |
Entity Incorporation, State or Country Code | NC | |
Entity File Number | 000-21731 | |
Entity Tax Identification Number | 56-1869557 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000941713 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Real estate assets, at cost: | ||
Land | $ 495,501 | $ 491,441 |
Buildings and tenant improvements | 4,844,229 | 4,676,862 |
Development in-process | 133,189 | 165,537 |
Land held for development | 94,550 | 128,248 |
Total real estate assets | 5,567,469 | 5,462,088 |
Less-accumulated depreciation | (1,388,166) | (1,296,562) |
Net real estate assets | 4,179,303 | 4,165,526 |
Cash and cash equivalents | 116,724 | 3,769 |
Restricted cash | 6,300 | 6,374 |
Accounts receivable | 25,507 | 25,952 |
Mortgages and notes receivable, net of allowance of $19 and $44, respectively | 1,542 | 5,599 |
Accrued straight-line rents receivable | 233,078 | 220,088 |
Investments in and advances to unconsolidated affiliates | 24,088 | 23,585 |
Deferred leasing costs, net of accumulated amortization of $148,019 and $149,275, respectively | 196,048 | 195,273 |
Prepaid expenses and other assets, net of accumulated depreciation of $19,944 and $18,074, respectively | 108,035 | 28,843 |
Total Assets | 4,890,625 | 4,675,009 |
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Liabilities, Redeemable Operating Partnership Units and Capital: | ||
Mortgages and notes payable, net | 2,322,226 | 2,085,831 |
Accounts payable, accrued expenses and other liabilities | 272,989 | 218,922 |
Total Liabilities | 2,595,215 | 2,304,753 |
Commitments and contingencies | ||
Noncontrolling interests in the Operating Partnership | 122,493 | 105,960 |
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), 28,859 and 28,877 shares issued and outstanding, respectively | 28,859 | 28,877 |
Common Stock, $.01 par value, 200,000,000 authorized shares; 103,748,337 and 103,557,065 shares issued and outstanding, respectively | 1,037 | 1,036 |
Additional paid-in capital | 2,963,680 | 2,976,197 |
Distributions in excess of net income available for common stockholders | (842,387) | (769,303) |
Accumulated other comprehensive income/(loss) | (527) | 9,913 |
Total Stockholders’ Equity | 2,150,662 | 2,246,720 |
Noncontrolling interests in consolidated affiliates | 22,255 | 17,576 |
Total Equity/Capital | 2,172,917 | 2,264,296 |
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Capital | 4,890,625 | 4,675,009 |
Highwoods Realty Limited Partnership [Member] | ||
Real estate assets, at cost: | ||
Land | 495,501 | 491,441 |
Buildings and tenant improvements | 4,844,229 | 4,676,862 |
Development in-process | 133,189 | 165,537 |
Land held for development | 94,550 | 128,248 |
Total real estate assets | 5,567,469 | 5,462,088 |
Less-accumulated depreciation | (1,388,166) | (1,296,562) |
Net real estate assets | 4,179,303 | 4,165,526 |
Cash and cash equivalents | 116,724 | 3,769 |
Restricted cash | 6,300 | 6,374 |
Accounts receivable | 25,507 | 25,952 |
Mortgages and notes receivable, net of allowance of $19 and $44, respectively | 1,542 | 5,599 |
Accrued straight-line rents receivable | 233,078 | 220,088 |
Investments in and advances to unconsolidated affiliates | 24,088 | 23,585 |
Deferred leasing costs, net of accumulated amortization of $148,019 and $149,275, respectively | 196,048 | 195,273 |
Prepaid expenses and other assets, net of accumulated depreciation of $19,944 and $18,074, respectively | 108,035 | 28,843 |
Total Assets | 4,890,625 | 4,675,009 |
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Liabilities, Redeemable Operating Partnership Units and Capital: | ||
Mortgages and notes payable, net | 2,322,226 | 2,085,831 |
Accounts payable, accrued expenses and other liabilities | 272,989 | 218,922 |
Total Liabilities | 2,595,215 | 2,304,753 |
Commitments and contingencies | ||
Redeemable Operating Partnership Units: | ||
Common Units, 2,725,703 and 2,738,703 outstanding, respectively | 122,493 | 105,960 |
Series A Preferred Units (liquidation preference $1,000 per unit), 28,859 and 28,877 units issued and outstanding, respectively | 28,859 | 28,877 |
Total Redeemable Operating Partnership Units | 151,352 | 134,837 |
Equity/Capital: | ||
General partner Common Units, 1,060,652 and 1,058,870 outstanding, respectively | 21,221 | 22,078 |
Limited partner Common Units, 102,278,876 and 102,089,386 outstanding, respectively | 2,101,109 | 2,185,852 |
Accumulated other comprehensive income/(loss) | (527) | 9,913 |
Noncontrolling interests in consolidated affiliates | 22,255 | 17,576 |
Total Equity/Capital | 2,144,058 | 2,235,419 |
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Capital | $ 4,890,625 | $ 4,675,009 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Assets: | ||
Mortgages and notes receivable allowance | $ 19 | $ 44 |
Deferred leasing costs, accumulated amortization | 148,019 | 149,275 |
Prepaid expenses and other assets, accumulated depreciation | $ 19,944 | $ 18,074 |
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) | 28,859 | 28,877 |
Series A Preferred Stock, shares outstanding (in shares) | 28,859 | 28,877 |
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) | 103,748,337 | 103,557,065 |
Common Stock, shares outstanding (in shares) | 103,748,337 | 103,557,065 |
Highwoods Realty Limited Partnership [Member] | ||
Assets: | ||
Mortgages and notes receivable allowance | $ 19 | $ 44 |
Deferred leasing costs, accumulated amortization | 148,019 | 149,275 |
Prepaid expenses and other assets, accumulated depreciation | $ 19,944 | $ 18,074 |
Redeemable Operating Partnership Units: [Abstract] | ||
Redeemable Common Units outstanding (in shares) | 2,725,703 | 2,738,703 |
Series A Preferred Units, liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 |
Series A Preferred Units, issued (in shares) | 28,859 | 28,877 |
Series A Preferred Units, outstanding (in shares) | 28,859 | 28,877 |
Common Units: [Abstract] | ||
General partners' capital account, units outstanding (in shares) | 1,060,652 | 1,058,870 |
Limited partners' capital account, units outstanding (in shares) | 102,278,876 | 102,089,386 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Rental and other revenues | $ 187,475 | $ 179,417 | $ 543,908 | $ 538,647 |
Operating expenses: | ||||
Rental property and other expenses | 64,135 | 61,153 | 185,244 | 180,248 |
Depreciation and amortization | 60,850 | 57,661 | 189,514 | 171,923 |
Impairments of real estate assets | 5,318 | 0 | 5,849 | 0 |
General and administrative | 11,717 | 9,551 | 33,658 | 30,869 |
Total operating expenses | 142,020 | 128,365 | 414,265 | 383,040 |
Interest expense | 20,527 | 17,437 | 59,622 | 53,705 |
Other income/(loss) | 174 | 818 | (3,271) | 1,735 |
Gains on disposition of property | 3,515 | 3 | 10,218 | 16,975 |
Equity in earnings of unconsolidated affiliates | 940 | 573 | 2,369 | 1,641 |
Net income | 29,557 | 35,009 | 79,337 | 122,253 |
Net (income) attributable to noncontrolling interests in the Operating Partnership | (737) | (902) | (1,974) | (3,171) |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (297) | (324) | (919) | (918) |
Dividends on Preferred Stock | (622) | (623) | (1,866) | (1,869) |
Net income available for common stockholders | $ 27,901 | $ 33,160 | $ 74,578 | $ 116,295 |
Earnings per Common Share – basic: | ||||
Net income available for common stockholders (in dollars per share) | $ 0.27 | $ 0.32 | $ 0.72 | $ 1.12 |
Weighted average Common Shares outstanding - basic (in shares) | 103,727 | 103,471 | 103,674 | 103,408 |
Earnings per Common Share - diluted: | ||||
Net income available for common stockholders (in dollars per share) | $ 0.27 | $ 0.32 | $ 0.72 | $ 1.12 |
Weighted average Common Shares outstanding - diluted (in shares) | 106,471 | 106,333 | 106,425 | 106,256 |
Highwoods Realty Limited Partnership [Member] | ||||
Rental and other revenues | $ 187,475 | $ 179,417 | $ 543,908 | $ 538,647 |
Operating expenses: | ||||
Rental property and other expenses | 64,135 | 61,153 | 185,244 | 180,248 |
Depreciation and amortization | 60,850 | 57,661 | 189,514 | 171,923 |
Impairments of real estate assets | 5,318 | 0 | 5,849 | 0 |
General and administrative | 11,717 | 9,551 | 33,658 | 30,869 |
Total operating expenses | 142,020 | 128,365 | 414,265 | 383,040 |
Interest expense | 20,527 | 17,437 | 59,622 | 53,705 |
Other income/(loss) | 174 | 818 | (3,271) | 1,735 |
Gains on disposition of property | 3,515 | 3 | 10,218 | 16,975 |
Equity in earnings of unconsolidated affiliates | 940 | 573 | 2,369 | 1,641 |
Net income | 29,557 | 35,009 | 79,337 | 122,253 |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (297) | (324) | (919) | (918) |
Distributions on Preferred Units | (622) | (623) | (1,866) | (1,869) |
Net income available for common unitholders | $ 28,638 | $ 34,062 | $ 76,552 | $ 119,466 |
Earnings per Common Unit - basic: | ||||
Net income available for common unitholders (in dollars per share) | $ 0.27 | $ 0.32 | $ 0.72 | $ 1.13 |
Weighted average Common Units outstanding - basic (in shares) | 106,046 | 105,866 | 105,998 | 105,808 |
Earnings per Common Unit - diluted: | ||||
Net income available for common unitholders (in dollars per share) | $ 0.27 | $ 0.32 | $ 0.72 | $ 1.13 |
Weighted average Common Units outstanding - diluted (in shares) | 106,062 | 105,924 | 106,016 | 105,847 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Comprehensive income: | ||||
Net income | $ 29,557 | $ 35,009 | $ 79,337 | $ 122,253 |
Other comprehensive income/(loss): | ||||
Unrealized gains/(losses) on cash flow hedges | (6,732) | 2,187 | (9,282) | 10,926 |
Amortization of cash flow hedges | (283) | (654) | (1,158) | (1,275) |
Total other comprehensive income/(loss) | (7,015) | 1,533 | (10,440) | 9,651 |
Total comprehensive income | 22,542 | 36,542 | 68,897 | 131,904 |
Less-comprehensive (income) attributable to noncontrolling interests | (1,034) | (1,226) | (2,893) | (4,089) |
Comprehensive income attributable to common stockholders/Comprehensive income attributable to common unitholders | 21,508 | 35,316 | 66,004 | 127,815 |
Highwoods Realty Limited Partnership [Member] | ||||
Comprehensive income: | ||||
Net income | 29,557 | 35,009 | 79,337 | 122,253 |
Other comprehensive income/(loss): | ||||
Unrealized gains/(losses) on cash flow hedges | (6,732) | 2,187 | (9,282) | 10,926 |
Amortization of cash flow hedges | (283) | (654) | (1,158) | (1,275) |
Total other comprehensive income/(loss) | (7,015) | 1,533 | (10,440) | 9,651 |
Total comprehensive income | 22,542 | 36,542 | 68,897 | 131,904 |
Less-comprehensive (income) attributable to noncontrolling interests | (297) | (324) | (919) | (918) |
Comprehensive income attributable to common stockholders/Comprehensive income attributable to common unitholders | $ 22,245 | $ 36,218 | $ 67,978 | $ 130,986 |
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, 2017 | 103,266,875 | |||||||||||
Balance at Dec. 31, 2017 | $ 2,237,234 | $ 2,208,342 | $ 1,033 | $ 28,892 | $ 21,830 | $ 2,161,258 | $ 2,929,399 | $ 7,838 | $ 7,838 | $ 17,416 | $ 17,416 | $ (747,344) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Issuances of Common Units, net of issuance costs and tax withholdings | 1,476 | 15 | 1,461 | |||||||||
Distributions on Common Units | (146,763) | (1,467) | (145,296) | |||||||||
Distributions on Preferred Units | (1,869) | (19) | (1,850) | |||||||||
Issuances of Common Stock, net of issuance costs and tax withholdings - Shares | 22,815 | |||||||||||
Issuances of Common Stock, net of issuance costs and tax withholdings | 1,476 | $ 0 | 1,476 | |||||||||
Conversions of Common Units to Common Stock - Shares | 26,196 | |||||||||||
Conversions of Common Units to Common Stock | 1,231 | 1,231 | ||||||||||
Dividends on Common Stock | (143,435) | (143,435) | ||||||||||
Dividends on Preferred Stock | (1,869) | (1,869) | ||||||||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | 9,607 | 9,607 | ||||||||||
Distributions to noncontrolling interests in consolidated affiliates | (950) | (950) | (950) | (950) | ||||||||
Issuances of restricted stock - shares | 172,440 | |||||||||||
Issuances of restricted stock | 0 | |||||||||||
Redemptions/repurchases of Preferred Stock | (5) | (5) | ||||||||||
Share-based compensation expense, net of forfeitures | 6,609 | 6,609 | $ 2 | 66 | 6,543 | 6,607 | ||||||
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner | 10,995 | 110 | 10,885 | |||||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | (3,171) | (3,171) | ||||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | 0 | 0 | (9) | (909) | 918 | 918 | (918) | |||||
Comprehensive income: | ||||||||||||
Net income | 122,253 | 122,253 | 1,223 | 121,030 | 122,253 | |||||||
Other comprehensive income/(loss) | 9,651 | 9,651 | 9,651 | 9,651 | ||||||||
Total comprehensive income | 131,904 | 131,904 | ||||||||||
Balance (in shares) at Sep. 30, 2018 | 103,488,326 | |||||||||||
Balance at Sep. 30, 2018 | 2,238,631 | 2,209,744 | $ 1,035 | 28,887 | 21,749 | 2,153,122 | 2,948,320 | 17,489 | 17,489 | 17,384 | 17,384 | (774,484) |
Balance (in shares) at Jun. 30, 2018 | 103,459,115 | |||||||||||
Balance at Jun. 30, 2018 | 2,240,193 | 2,211,306 | $ 1,035 | 28,887 | 21,778 | 2,156,105 | 2,936,636 | 15,956 | 15,956 | 17,467 | 17,467 | (759,788) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Issuances of Common Units, net of issuance costs and tax withholdings | 1,061 | 11 | 1,050 | |||||||||
Distributions on Common Units | (48,963) | (489) | (48,474) | |||||||||
Distributions on Preferred Units | (623) | (7) | (616) | |||||||||
Issuances of Common Stock, net of issuance costs and tax withholdings - Shares | 26,211 | |||||||||||
Issuances of Common Stock, net of issuance costs and tax withholdings | 1,061 | $ 0 | 1,061 | |||||||||
Conversions of Common Units to Common Stock - Shares | 3,000 | |||||||||||
Conversions of Common Units to Common Stock | 147 | 147 | ||||||||||
Dividends on Common Stock | (47,856) | (47,856) | ||||||||||
Dividends on Preferred Stock | (623) | (623) | ||||||||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | 9,335 | 9,335 | ||||||||||
Distributions to noncontrolling interests in consolidated affiliates | (407) | (407) | (407) | (407) | ||||||||
Share-based compensation expense, net of forfeitures | 1,141 | 1,141 | $ 0 | 11 | 1,130 | 1,141 | ||||||
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner | 9,687 | 97 | 9,590 | |||||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | (902) | (902) | ||||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | 0 | 0 | (3) | (321) | 324 | 324 | (324) | |||||
Comprehensive income: | ||||||||||||
Net income | 35,009 | 35,009 | 351 | 34,658 | 35,009 | |||||||
Other comprehensive income/(loss) | 1,533 | 1,533 | 1,533 | 1,533 | ||||||||
Total comprehensive income | 36,542 | 36,542 | ||||||||||
Balance (in shares) at Sep. 30, 2018 | 103,488,326 | |||||||||||
Balance at Sep. 30, 2018 | $ 2,238,631 | 2,209,744 | $ 1,035 | 28,887 | 21,749 | 2,153,122 | 2,948,320 | 17,489 | 17,489 | 17,384 | 17,384 | (774,484) |
Balance (in shares) at Dec. 31, 2018 | 103,557,065 | 103,557,065 | ||||||||||
Balance at Dec. 31, 2018 | $ 2,264,296 | 2,235,419 | $ 1,036 | 28,877 | 22,078 | 2,185,852 | 2,976,197 | 9,913 | 9,913 | 17,576 | 17,576 | (769,303) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Issuances of Common Units, net of issuance costs and tax withholdings | (243) | (2) | (241) | |||||||||
Distributions on Common Units | (150,973) | (1,510) | (149,463) | |||||||||
Distributions on Preferred Units | (1,866) | (19) | (1,847) | |||||||||
Issuances of Common Stock, net of issuance costs and tax withholdings - Shares | (11,715) | |||||||||||
Issuances of Common Stock, net of issuance costs and tax withholdings | (243) | $ 0 | (243) | |||||||||
Conversions of Common Units to Common Stock - Shares | 13,000 | |||||||||||
Conversions of Common Units to Common Stock | 572 | 572 | ||||||||||
Dividends on Common Stock | (147,662) | (147,662) | ||||||||||
Dividends on Preferred Stock | (1,866) | (1,866) | ||||||||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | (19,025) | (19,025) | ||||||||||
Distributions to noncontrolling interests in consolidated affiliates | (1,227) | (1,227) | (1,227) | (1,227) | ||||||||
Contributions from noncontrolling interests in consolidated affiliates | 4,987 | 4,987 | 4,987 | 4,987 | ||||||||
Issuances of restricted stock - shares | 190,934 | |||||||||||
Issuances of restricted stock | 0 | |||||||||||
Redemptions/repurchases of Preferred Stock | (18) | (18) | ||||||||||
Share-based compensation expense, net of forfeitures - shares | (947) | |||||||||||
Share-based compensation expense, net of forfeitures | 6,180 | 6,180 | $ 1 | 62 | 6,118 | 6,179 | ||||||
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner | (17,116) | (172) | (16,944) | |||||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | (1,974) | (1,974) | ||||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | 0 | 0 | (9) | (910) | 919 | 919 | (919) | |||||
Comprehensive income: | ||||||||||||
Net income | 79,337 | 79,337 | 793 | 78,544 | 79,337 | |||||||
Other comprehensive income/(loss) | (10,440) | (10,440) | (10,440) | (10,440) | ||||||||
Total comprehensive income | $ 68,897 | 68,897 | ||||||||||
Balance (in shares) at Sep. 30, 2019 | 103,748,337 | 103,748,337 | ||||||||||
Balance at Sep. 30, 2019 | $ 2,172,917 | 2,144,058 | $ 1,037 | 28,859 | 21,221 | 2,101,109 | 2,963,680 | (527) | (527) | 22,255 | 22,255 | (842,387) |
Balance (in shares) at Jun. 30, 2019 | 103,704,603 | |||||||||||
Balance at Jun. 30, 2019 | 2,210,532 | 2,181,673 | $ 1,037 | 28,859 | 21,528 | 2,131,256 | 2,972,798 | 6,488 | 6,488 | 22,401 | 22,401 | (821,051) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Issuances of Common Units, net of issuance costs and tax withholdings | 488 | 5 | 483 | |||||||||
Distributions on Common Units | (50,339) | (504) | (49,835) | |||||||||
Distributions on Preferred Units | (622) | (7) | (615) | |||||||||
Issuances of Common Stock, net of issuance costs and tax withholdings - Shares | 11,990 | |||||||||||
Issuances of Common Stock, net of issuance costs and tax withholdings | 488 | $ 0 | 488 | |||||||||
Conversions of Common Units to Common Stock - Shares | 5,000 | |||||||||||
Conversions of Common Units to Common Stock | 219 | 219 | ||||||||||
Dividends on Common Stock | (49,237) | (49,237) | ||||||||||
Dividends on Preferred Stock | (622) | (622) | ||||||||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | (10,493) | (10,493) | ||||||||||
Distributions to noncontrolling interests in consolidated affiliates | (443) | (443) | (443) | (443) | ||||||||
Issuances of restricted stock - shares | 26,744 | |||||||||||
Issuances of restricted stock | 0 | |||||||||||
Share-based compensation expense, net of forfeitures - shares | 0 | |||||||||||
Share-based compensation expense, net of forfeitures | 668 | 668 | $ 0 | 7 | 661 | 668 | ||||||
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner | (9,909) | (100) | (9,809) | |||||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | (737) | (737) | ||||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | 0 | 0 | (3) | (294) | 297 | 297 | (297) | |||||
Comprehensive income: | ||||||||||||
Net income | 29,557 | 29,557 | 295 | 29,262 | 29,557 | |||||||
Other comprehensive income/(loss) | (7,015) | (7,015) | (7,015) | (7,015) | ||||||||
Total comprehensive income | $ 22,542 | 22,542 | ||||||||||
Balance (in shares) at Sep. 30, 2019 | 103,748,337 | 103,748,337 | ||||||||||
Balance at Sep. 30, 2019 | $ 2,172,917 | $ 2,144,058 | $ 1,037 | $ 28,859 | $ 21,221 | $ 2,101,109 | $ 2,963,680 | $ (527) | $ (527) | $ 22,255 | $ 22,255 | $ (842,387) |
Consolidated Statements of Eq_2
Consolidated Statements of Equity/Capital (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Highwoods Properties, Inc. [Member] | ||||
Dividends on Common Stock (per share) | $ 0.475 | $ 0.4625 | $ 1.425 | $ 1.3875 |
Highwoods Properties, Inc. [Member] | Series A Cumulative Redeemable Preferred Shares [Member] | ||||
Dividends on Preferred Stock (per share)/Distributions on Preferred Units (per unit) | 21.5625 | 21.5625 | 64.6875 | 64.6875 |
Highwoods Realty Limited Partnership [Member] | ||||
Distributions on Common Units (per unit) | 0.475 | 0.4625 | 1.425 | 1.3875 |
Highwoods Realty Limited Partnership [Member] | Series A Cumulative Redeemable Preferred Shares [Member] | ||||
Dividends on Preferred Stock (per share)/Distributions on Preferred Units (per unit) | $ 21.5625 | $ 21.5625 | $ 64.6875 | $ 64.6875 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating activities: | ||
Net income | $ 79,337 | $ 122,253 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 189,514 | 171,923 |
Amortization of lease incentives and acquisition-related intangible assets and liabilities | 197 | (1,488) |
Share-based compensation expense | 6,180 | 6,609 |
Credit losses on operating lease receivables | 8,711 | 791 |
Write-off of mortgages and notes receivable | 4,087 | 0 |
Accrued interest on mortgages and notes receivable | (151) | (336) |
Amortization of debt issuance costs | 2,194 | 2,126 |
Amortization of cash flow hedges | (1,158) | (1,275) |
Amortization of mortgages and notes payable fair value adjustments | 1,193 | 1,071 |
Impairments of real estate assets | 5,849 | 0 |
Losses on debt extinguishment | 640 | 0 |
Net gains on disposition of property | (10,218) | (16,975) |
Equity in earnings of unconsolidated affiliates | (2,369) | (1,641) |
Distributions of earnings from unconsolidated affiliates | 730 | 1,943 |
Settlement of cash flow hedges | (11,749) | 7,216 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (3,611) | 4,778 |
Prepaid expenses and other assets | 458 | (1,487) |
Accrued straight-line rents receivable | (20,955) | (17,945) |
Accounts payable, accrued expenses and other liabilities | 37,382 | 15,395 |
Net cash provided by operating activities | 286,261 | 292,958 |
Investing activities: | ||
Investments in acquired real estate and related intangible assets, net of cash acquired | (19,365) | (50,649) |
Investments in development in-process | (77,854) | (130,241) |
Investments in tenant improvements and deferred leasing costs | (105,879) | (89,875) |
Investments in building improvements | (36,383) | (52,151) |
Net proceeds from disposition of real estate assets | 45,250 | 35,441 |
Distributions of capital from unconsolidated affiliates | 29 | 105 |
Repayments of mortgages and notes receivable | 221 | 1,137 |
Payments of earnest money deposits | (50,000) | 0 |
Changes in other investing activities | (6,279) | (4,671) |
Net cash used in investing activities | (250,260) | (290,904) |
Financing activities: | ||
Dividends on Common Stock | (147,662) | (143,435) |
Redemptions/repurchases of Preferred Stock | (18) | (5) |
Dividends on Preferred Stock | (1,866) | (1,869) |
Distributions to noncontrolling interests in the Operating Partnership | (3,894) | (3,895) |
Distributions to noncontrolling interests in consolidated affiliates | (1,227) | (950) |
Proceeds from the issuance of Common Stock | 1,541 | 3,242 |
Costs paid for the issuance of Common Stock | 0 | (95) |
Repurchase of shares related to tax withholdings | (1,784) | (1,671) |
Borrowings on revolving credit facility | 278,600 | 336,400 |
Repayments of revolving credit facility | (460,600) | (397,400) |
Borrowings on mortgages and notes payable | 747,990 | 345,863 |
Repayments of mortgages and notes payable | (326,400) | (211,345) |
Changes in debt issuance costs and other financing activities | (7,800) | (2,948) |
Net cash provided by/(used in) financing activities | 76,880 | (78,108) |
Net increase/(decrease) in cash and cash equivalents and restricted cash | 112,881 | (76,054) |
Cash and cash equivalents and restricted cash at beginning of the period | 10,143 | 88,333 |
Cash and cash equivalents and restricted cash at end of the period | 123,024 | 12,279 |
Reconciliation of cash and cash equivalents and restricted cash: | ||
Cash and cash equivalents at end of the period | 116,724 | 5,324 |
Restricted cash at end of the period | 6,300 | 6,955 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest, net of amounts capitalized | 55,608 | 56,771 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Unrealized gains/(losses) on cash flow hedges | (9,282) | 10,926 |
Conversions of Common Units to Common Stock | 572 | 1,231 |
Changes in accrued capital expenditures | (7,407) | (10,396) |
Write-off of fully depreciated real estate assets | 59,428 | 63,820 |
Write-off of fully amortized leasing costs | 34,203 | 26,660 |
Write-off of fully amortized debt issuance costs | 1,791 | 2,733 |
Adjustment of noncontrolling interests in the Operating Partnership to fair value | 19,025 | (9,607) |
Contributions from noncontrolling interests in consolidated affiliates | 4,987 | 0 |
Initial recognition of lease liabilities related to right of use assets | 35,349 | 0 |
Highwoods Realty Limited Partnership [Member] | ||
Operating activities: | ||
Net income | 79,337 | 122,253 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 189,514 | 171,923 |
Amortization of lease incentives and acquisition-related intangible assets and liabilities | 197 | (1,488) |
Share-based compensation expense | 6,180 | 6,609 |
Credit losses on operating lease receivables | 8,711 | 791 |
Write-off of mortgages and notes receivable | 4,087 | 0 |
Accrued interest on mortgages and notes receivable | (151) | (336) |
Amortization of debt issuance costs | 2,194 | 2,126 |
Amortization of cash flow hedges | (1,158) | (1,275) |
Amortization of mortgages and notes payable fair value adjustments | 1,193 | 1,071 |
Impairments of real estate assets | 5,849 | 0 |
Losses on debt extinguishment | 640 | 0 |
Net gains on disposition of property | (10,218) | (16,975) |
Equity in earnings of unconsolidated affiliates | (2,369) | (1,641) |
Distributions of earnings from unconsolidated affiliates | 730 | 1,943 |
Settlement of cash flow hedges | (11,749) | 7,216 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (3,611) | 4,778 |
Prepaid expenses and other assets | 458 | (1,487) |
Accrued straight-line rents receivable | (20,955) | (17,945) |
Accounts payable, accrued expenses and other liabilities | 37,382 | 15,395 |
Net cash provided by operating activities | 286,261 | 292,958 |
Investing activities: | ||
Investments in acquired real estate and related intangible assets, net of cash acquired | (19,365) | (50,649) |
Investments in development in-process | (77,854) | (130,241) |
Investments in tenant improvements and deferred leasing costs | (105,879) | (89,875) |
Investments in building improvements | (36,383) | (52,151) |
Net proceeds from disposition of real estate assets | 45,250 | 35,441 |
Distributions of capital from unconsolidated affiliates | 29 | 105 |
Repayments of mortgages and notes receivable | 221 | 1,137 |
Payments of earnest money deposits | (50,000) | 0 |
Changes in other investing activities | (6,279) | (4,671) |
Net cash used in investing activities | (250,260) | (290,904) |
Financing activities: | ||
Distributions on Common Units | (150,973) | (146,763) |
Redemptions/repurchases of Preferred Units | (18) | (5) |
Distributions on Preferred Units | (1,866) | (1,869) |
Distributions to noncontrolling interests in consolidated affiliates | (1,227) | (950) |
Proceeds from the issuance of Common Units | 1,541 | 3,242 |
Costs paid for the issuance of Common Units | 0 | (95) |
Repurchase of units related to tax withholdings | (1,784) | (1,671) |
Borrowings on revolving credit facility | 278,600 | 336,400 |
Repayments of revolving credit facility | (460,600) | (397,400) |
Borrowings on mortgages and notes payable | 747,990 | 345,863 |
Repayments of mortgages and notes payable | (326,400) | (211,345) |
Changes in debt issuance costs and other financing activities | (8,383) | (3,515) |
Net cash provided by/(used in) financing activities | 76,880 | (78,108) |
Net increase/(decrease) in cash and cash equivalents and restricted cash | 112,881 | (76,054) |
Cash and cash equivalents and restricted cash at beginning of the period | 10,143 | 88,333 |
Cash and cash equivalents and restricted cash at end of the period | 123,024 | 12,279 |
Reconciliation of cash and cash equivalents and restricted cash: | ||
Cash and cash equivalents at end of the period | 116,724 | 5,324 |
Restricted cash at end of the period | 6,300 | 6,955 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest, net of amounts capitalized | 55,608 | 56,771 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Unrealized gains/(losses) on cash flow hedges | (9,282) | 10,926 |
Changes in accrued capital expenditures | (7,407) | (10,396) |
Write-off of fully depreciated real estate assets | 59,428 | 63,820 |
Write-off of fully amortized leasing costs | 34,203 | 26,660 |
Write-off of fully amortized debt issuance costs | 1,791 | 2,733 |
Adjustment of Redeemable Common Units to fair value | 16,533 | (11,562) |
Contributions from noncontrolling interests in consolidated affiliates | 4,987 | 0 |
Initial recognition of lease liabilities related to right of use assets | $ 35,349 | $ 0 |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Significant Accounting Policies | Description of Business and Significant Accounting Policies Description of Business Highwoods Properties, Inc. (the “Company”) is a fully integrated real estate investment trust (“REIT”) that provides leasing, management, development, construction and other customer-related services for its properties and for third parties. The Company conducts its activities through Highwoods Realty Limited Partnership (the “Operating Partnership”). At September 30, 2019 , we owned or had an interest in 31.2 million rentable square feet of in-service properties, 1.2 million rentable square feet of office properties under development and approximately 275 acres of development land. The Company is the sole general partner of the Operating Partnership. At September 30, 2019 , the Company owned all of the Preferred Units and 103.3 million , or 97.4% , of the Common Units in the Operating Partnership. Limited partners owned the remaining 2.7 million Common Units. During the nine months ended September 30, 2019 , the Company redeemed 13,000 Common Units for a like number of shares of Common Stock. Basis of Presentation Our Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company’s Consolidated Financial Statements include the Operating Partnership, wholly owned subsidiaries and those entities in which the Company has the controlling interest. The Operating Partnership's Consolidated Financial Statements include wholly owned subsidiaries and those entities in which the Operating Partnership has the controlling interest. We consolidate joint venture investments, such as interests in partnerships and limited liability companies, when we control the major operating and financial policies of the investment through majority ownership, in our capacity as a general partner or managing member or through some other contractual right. In addition, we consolidate those entities deemed to be variable interest entities in which we are determined to be the primary beneficiary. At September 30, 2019 , we have involvement with, and are the primary beneficiary in, an entity that we concluded to be a variable interest entity (see Note 3). All intercompany transactions and accounts have been eliminated. The unaudited interim consolidated financial statements and accompanying unaudited consolidated financial information, in the opinion of management, contain all adjustments (including normal recurring accruals) necessary for a fair presentation of our financial position, results of operations and cash flows. We have condensed or omitted certain notes and other information from the interim Consolidated Financial Statements presented in this Quarterly Report as permitted by SEC rules and regulations. These Consolidated Financial Statements should be read in conjunction with our 2018 Annual Report on Form 10-K. Certain amounts within the Consolidated Statements of Income for the three and nine months ended September 30, 2018 were removed and/or combined to conform to the current year presentation. 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. Real Estate and Related Assets Real estate and related assets are recorded at cost and stated at cost less accumulated depreciation. Renovations, replacements and other expenditures that improve or extend the life of assets are capitalized and depreciated over their estimated useful lives. Expenditures for ordinary maintenance and repairs are charged to expense as incurred. Depreciation is computed using the straight-line method over the estimated useful life of 40 years for buildings and depreciable land infrastructure costs, 15 years for building improvements and five to seven years for furniture, fixtures and equipment. Tenant improvements are amortized using the straight-line method over initial fixed terms of the respective leases, which generally are from three to 10 years. Depreciation expense for real estate assets was $51.3 million and $48.1 million for the three months ended September 30, 2019 and 2018 , respectively, and $159.7 million and $142.4 million for the nine months ended September 30, 2019 and 2018 , respectively. Leases See Note 2 for policies and related disclosures with respect to our leases as both a lessee and lessor. Insurance We are primarily self-insured for health care claims for participating employees. We have stop-loss coverage to limit our exposure to significant claims on a per claim and annual aggregate basis. We determine our liabilities for claims, including incurred but not reported losses, based on all relevant information, including actuarial estimates of claim liabilities. At September 30, 2019 , a reserve of $0.5 million was recorded to cover estimated reported and unreported claims. Other Events During the third quarter of 2019, we announced a series of planned investment activities. First, we have agreed to acquire Bank of America Tower at Legacy Union in Charlotte’s uptown CBD submarket for a total investment of $ 436 million . Bank of America Tower at Legacy Union is a trophy, LEED gold-registered office building encompassing 841,000 square feet with structured parking that delivers this year. The acquisition is scheduled to close in November 2019. We have posted earnest money deposits totaling $ 50 million that are non-refundable except in limited circumstances. Second, we have a two -phased plan to exit the Greensboro and Memphis markets. The first phase consists of selling a select portfolio of assets in Greensboro and Memphis by mid-2020 with a total sales price that approximates the $ 436 million total investment for Bank of America Tower at Legacy Union and closing the division offices. We can provide no assurances, however, that we will dispose of any of these assets on favorable terms, or at all, because the dispositions are subject to the negotiation and execution of definitive and binding purchase and sale agreements and would then be subject to the buyers’ completion of satisfactory due diligence and other customary closing conditions. The second phase is the planned sale of the remaining assets in both markets. There is no pre-determined timetable for the second phase. As a result of the announced plan to exit the Greensboro and Memphis markets and close our division offices, we recorded $ 0.7 million of severance costs in the third quarter of 2019 and expect to record an additional $ 1.5 million in the fourth quarter of 2019. During the first quarter of 2019, Laser Spine Institute, which leased a 176,000 square foot building with structured parking in Tampa’s Westshore submarket, suddenly ceased operations. As a result of this sudden closure, we incurred $5.6 million of credit losses on operating lease receivables and $2.3 million of write-offs of lease incentives (in rental and other revenues), $4.1 million of write-offs of notes receivable (in other income/(loss)) and $11.6 million of write-offs of tenant improvements and deferred leasing costs (in depreciation and amortization). Recently Issued Accounting Standards The Financial Accounting Standards Board (“FASB”) issued an accounting standards update (“ASU”) that eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item when the hedged item affects earnings. We adopted the ASU as of January 1, 2019 with no material effect on our Consolidated Financial Statements. The FASB issued an ASU that changes certain disclosure requirements for fair value measurements. The ASU is required to be adopted in 2020 and applied prospectively. We do not expect such adoption to have a material effect on our Notes to Consolidated Financial Statements. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases On January 1, 2019, we adopted Accounting Standards Codification Topic 842 “Leases” (“ASC 842”), which supersedes Accounting Standards Codification Topic 840 “Leases” (“ASC 840”). Information in this Note 2 with respect to our leases and lease related costs as both lessee and lessor and lease related receivables as lessor is presented under ASC 842 as of September 30, 2019 and for the three and nine months ended September 30, 2019 and under ASC 840 as of and for the year ended December 31, 2018 . We adopted ASC 842 using the modified retrospective approach whereby the cumulative effect of adoption was recognized on the adoption date and prior periods were not restated. There was no net cumulative effect adjustment to retained earnings as of January 1, 2019 as a result of this adoption. ASC 842 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. We operate as both a lessor and a lessee. As a lessor, we are required under ASC 842 to account for leases using an approach that is substantially equivalent to ASC 840's guidance for operating leases and other leases such as sales-type leases and direct financing leases. In addition, ASC 842 requires lessors to capitalize and amortize only incremental direct leasing costs. As a lessee, we are required under the new standard to apply a dual approach, classifying leases, such as ground leases, as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase. This classification determines whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. ASC 842 also requires lessees to record a right of use asset and a lease liability for all leases with a term of greater than a year regardless of their classification. We have also elected the practical expedient not to recognize right of use assets and lease liabilities for leases with a term of a year or less. On adoption of the standard, we elected the package of practical expedients provided for in ASC 842, including: • No reassessment of whether any expired or existing contracts were or contained leases; • No reassessment of the lease classification for any expired or existing leases; and • No reassessment of initial direct costs for any existing leases. The package of practical expedients was made as a single election and was consistently applied to all existing leases as of January 1, 2019. We also elected the practical expedient provided to lessors in a subsequent amendment to ASC 842 that removed the requirement to separate lease and nonlease components, provided certain conditions were met. Information as Lessor Under ASC 842 To generate positive cash flow, as a lessor, we lease our office properties to lessees in exchange for fixed monthly payments that cover rent, property taxes, insurance and certain cost recoveries, primarily common area maintenance (“CAM”). Office properties owned by us that are under lease are located in Atlanta, Greensboro, Memphis, Nashville, Orlando, Pittsburgh, Raleigh, Richmond and Tampa and are leased to a wide variety of lessees across many industries. Our leases were determined to be operating leases and generally range from three to 10 years. Payments from customers for CAM are considered nonlease components that are separated from lease components and are generally accounted for in accordance with the revenue recognition standard. However, we qualified for and elected the practical expedient related to combining the components because the lease component is classified as an operating lease and the timing and pattern of transfer of CAM income, which is not the predominant component, is the same as the lease component. As such, consideration for CAM is accounted for as part of the overall consideration in the lease. Payments from customers for property taxes and insurance are considered noncomponents of the lease and therefore no consideration is allocated to them because they do not transfer a good or service to the customer. Fixed contractual payments from our leases are recognized on a straight-line basis over the terms of the respective leases. This means that, with respect to a particular lease, actual amounts billed in accordance with the lease during any given period may be higher or lower than the amount of rental revenue recognized for the period. Straight-line rental revenue is commenced when the customer assumes control of the leased premises. Accrued straight-line rents receivable represents the amount by which straight-line rental revenue exceeds rents currently billed in accordance with lease agreements. Some of our leases are subject to annual changes in the Consumer Price Index (“CPI”). Although increases in the CPI are not estimated as part of our measurement of straight-line rental revenue, to the extent that actual CPI is greater or less than the CPI at lease commencement, the amount of straight-line rent recognized in a given year is affected accordingly. Some of our leases have termination options and/or extension options. Termination options allow the customer to terminate the lease prior to the end of the lease term under certain circumstances. Termination options generally become effective half way or further into the original lease term and require advance notification from the customer and payment of a termination fee that reimburses us for a portion of the remaining rent under the original lease term and the undepreciated lease inception costs such as commissions, tenant improvements and lease incentives. Termination fee income is recognized on a straight-line basis from the date of the executed termination agreement through lease expiration when the amount of the fee is determinable and collectability of the fee is reasonably assured. Our extension options generally require a re-negotiation with the customer at market rates. Initial direct costs, primarily commissions, related to the leasing of our office properties are included in deferred leasing costs and are stated at amortized cost. Such expenditures are part of the investment necessary to execute leases and, therefore, are classified as investment activities in the statement of cash flows. All leasing commissions paid to third parties and our in-house personnel for new leases or lease renewals are capitalized. Capitalized leasing costs are amortized on a straight-line basis over the initial fixed terms of the respective leases. All other costs to negotiate or arrange a lease are expensed as incurred. Lease incentive costs, which are payments made to or on behalf of a customer as an incentive to sign a lease, are capitalized in deferred leasing costs and amortized on a straight-line basis over the respective lease terms as a reduction of rental revenues. Lease related receivables, which include accounts receivable and accrued straight-line rents receivable, are reduced for credit losses. Such amounts are recognized as a reduction to rental and other revenues. We regularly evaluate the collectability of our lease related receivables. Our evaluation of collectability primarily consists of reviewing past due account balances and considering such factors as the credit quality of our customer, historical trends of the customer and changes in customer payment terms. Additionally, with respect to customers in bankruptcy, we estimate the probable recovery through bankruptcy claims and reduce the related receivable balance for amounts deemed uncollectible. If our assumptions regarding the collectability of lease related receivables prove incorrect, we could experience credit losses in excess of what was recognized in rental and other revenues. We recognized rental and other revenues related to operating lease payments of $184.2 million and $534.2 million , respectively, during the three and nine months ended September 30, 2019 , of which variable lease payments were $17.3 million and $49.2 million , respectively. The following table sets forth the undiscounted cash flows for future minimum base rents to be received from customers for leases in effect at September 30, 2019 for the properties that we wholly own: October 1 through December 31, 2019 $ 156,920 2020 619,066 2021 577,843 2022 544,683 2023 483,709 2024 422,362 Thereafter 1,820,576 $ 4,625,159 Information as Lessor Under ASC 840 Minimum contractual rents from leases are recognized on a straight-line basis over the terms of the respective leases. This means that, with respect to a particular lease, actual amounts billed in accordance with the lease during any given period may be higher or lower than the amount of rental revenue recognized for the period. Straight-line rental revenue is commenced when the customer assumes control of the leased premises. Accrued straight-line rents receivable represents the amount by which straight-line rental revenue exceeds rents currently billed in accordance with lease agreements. Contingent rental revenue, such as percentage rent, is accrued when the contingency is removed. Termination fee income is recognized at the later of when the customer has vacated the space or the lease has expired and a fully executed lease termination agreement has been delivered, the amount of the fee is determinable and collectability of the fee is reasonably assured. Cost recovery income is determined on a calendar year and a lease-by-lease basis. The most common types of cost recovery income in our leases are CAM and real estate taxes, for which a customer typically pays its pro-rata share of operating and administrative expenses and real estate taxes in excess of the costs incurred during a contractually specified base year. The computation of cost recovery income is complex and involves numerous judgments, including the interpretation of lease provisions. Leases are not uniform in dealing with such cost recovery income and there are many variations in the computation. Many customers make monthly fixed payments of CAM, real estate taxes and other cost reimbursement items. We accrue income related to these payments each month. We make quarterly accrual adjustments, positive or negative, to cost recovery income to adjust the recorded amounts to our best estimate of the final annual amounts to be billed and collected. After the end of the calendar year, we compute each customer's final cost recovery income and, after considering amounts paid by the customer during the year, issue a bill or credit for the appropriate amount to the customer. The differences between the amounts billed less previously received payments and the accrual adjustment are recorded as increases or decreases to cost recovery income when the final bills are prepared, which occurs during the first half of the subsequent year. Accounts receivable, accrued straight-line rents receivable and mortgages and notes receivable are reduced by an allowance for amounts that may become uncollectible in the future. We regularly evaluate the adequacy of our allowance for doubtful accounts. The evaluation primarily consists of reviewing past due account balances and considering such factors as the credit quality of our customer, historical trends of the customer and changes in customer payment terms. Additionally, with respect to customers in bankruptcy, we estimate the probable recovery through bankruptcy claims and adjust the allowance for amounts deemed uncollectible. If our assumptions regarding the collectability of receivables prove incorrect, we could experience losses in excess of our allowance for doubtful accounts. The allowance and its related receivable are written-off when we have concluded there is a low probability of collection and we have discontinued collection efforts. Lease incentive costs, which are payments made to or on behalf of a customer as an incentive to sign a lease, are capitalized in deferred leasing costs and amortized on a straight-line basis over the respective lease terms as a reduction of rental revenues. Our real estate assets are leased to customers under operating leases. The minimum rental amounts under the leases are generally subject to scheduled fixed increases. Generally, the leases also provide that we receive cost recovery income from customers for increases in certain costs above the costs incurred during a contractually specified base year. The following table sets forth our scheduled future minimum base rents to be received from customers for leases in effect at December 31, 2018 for the properties that we wholly own: 2019 $ 618,014 2020 581,399 2021 524,381 2022 488,157 2023 428,461 Thereafter 2,068,891 $ 4,709,303 Information as Lessee Under ASC 842 We have 20 properties subject to operating ground leases in Atlanta, Nashville, Orlando, Raleigh and Tampa with a weighted average remaining term of 52 years. Rental payments on these leases are adjusted periodically based on either the CPI or on a pre-determined schedule. The monthly payments on a pre-determined schedule are recognized on a straight-line basis over the terms of the respective leases. Changes in the CPI are not estimated as part of our measurement of straight-line rental expense. Upon initial adoption of ASC 842, we recognized a lease liability of $35.3 million (in accounts payable, accrued expenses and other liabilities) and a related right of use asset of $29.7 million (in prepaid expenses and other assets) on our Consolidated Balance Sheets equal to the present value of the minimum lease payments required under each ground lease. The difference between the recorded lease liability and right of use asset represents the accrued straight-line rent liability previously recognized under ASC 840. We used a discount rate of approximately 4.5% , which was derived from our assessment of the credit quality of the Company and adjusted to reflect secured borrowing, estimated yield curves and long-term spread adjustments over appropriate tenors. Some of our ground leases contain extension options; however, these did not impact our calculation of the right of use asset and liability as they extend beyond the useful life of the properties subject to the operating ground leases. We recognized $0.6 million and $1.8 million of ground lease expense during the three and nine months ended September 30, 2019 , respectively. Cash payments related to these leases were $0.5 million and $1.7 million during the three and nine months ended September 30, 2019 , respectively. The following table sets forth the undiscounted cash flows of our scheduled obligations for future minimum payments on operating ground leases at September 30, 2019 and a reconciliation of those cash flows to the operating lease liability at September 30, 2019 : October 1 through December 31, 2019 $ 517 2020 2,086 2021 2,127 2022 2,169 2023 2,167 2024 2,123 Thereafter 83,697 94,886 Discount (59,869 ) Lease liability $ 35,017 Information as Lessee Under ASC 840 Certain of our properties are subject to operating ground leases. Rental payments on these leases are adjusted periodically based on either the CPI or on a pre-determined schedule. Total rental property expense recorded for operating ground leases was $2.5 million , $2.5 million and $2.9 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The following table sets forth our scheduled obligations for future minimum payments on operating ground leases at December 31, 2018 : 2019 $ 2,184 2020 2,223 2021 2,263 2022 2,305 2023 2,308 Thereafter 86,577 $ 97,860 |
Consolidated Variable Interest
Consolidated Variable Interest Entity | 9 Months Ended |
Sep. 30, 2019 | |
Variable Interest Entities [Abstract] | |
Consolidated Variable Interest Entity | Consolidated Variable Interest Entity During the second quarter of 2019, we and The Bromley Companies formed a joint venture (the "Midtown One joint venture”) to construct Midtown One, a 150,000 square foot, multi-customer office building located in the mixed-use Midtown Tampa project in Tampa’s Westshore submarket. Midtown One has an anticipated total investment of $71.3 million . Construction of Midtown One began in the third quarter of 2019 with a scheduled completion date in the second quarter of 2021. At closing, we agreed to contribute cash of $20.0 million ( $13.6 million of which was funded and/or placed in escrow as of September 30, 2019 ) in exchange for an 80.0% interest in the Midtown One joint venture and The Bromley Companies contributed land valued at $5.0 million in exchange for the remaining 20.0% interest. We also committed to provide a $46.3 million interest-only secured construction loan to the Midtown One joint venture that is scheduled to mature on the second anniversary of completion. The loan bears interest at LIBOR plus 250 basis points . As of September 30, 2019 , no amounts under the loan have been funded. We determined that we have a variable interest in the Midtown One joint venture primarily because the entity was designed to pass along interest rate risk, equity price risk and operation risk to us as both a debt and an equity holder and The Bromley Companies as an equity holder. The Midtown One joint venture was further determined to be a variable interest entity as it requires additional subordinated financial support in the form of a loan because the initial equity investment provided by us and The Bromley Companies is not sufficient to finance its planned investments and operations. We, as majority owner and managing member and through our control rights as set forth in the joint venture's governance documents, were determined to be the primary beneficiary as we have both the power to direct the activities that most significantly affect the entity (primarily lease rates, property operations and capital expenditures) and significant economic exposure through our equity investment and loan commitment. As such, the Midtown One joint venture was consolidated as of September 30, 2019 and for the period May 29, 2019 through September 30, 2019 and all intercompany transactions and accounts were eliminated. The following table sets forth the assets and liabilities of the Midtown One joint venture included on our Consolidated Balance Sheets: September 30, Development in-process $ 19,602 Accounts payable, accrued expenses and other liabilities $ 798 The assets of the Midtown One joint venture can be used only to settle obligations of the joint venture and its creditors have no recourse to our wholly owned assets. |
Real Estate Assets
Real Estate Assets | 9 Months Ended |
Sep. 30, 2019 | |
Real Estate [Abstract] | |
Real Estate Assets | Real Estate Assets Acquisitions During the third quarter of 2019, we acquired development land in Raleigh for a purchase price, including capitalized acquisition costs, of $6.6 million . Dispositions During the third quarter of 2019, we sold a building and land parcels for an aggregate sale price of $14.3 million and recorded aggregate gains on disposition of property of $3.5 million . During the second quarter of 2019, we sold two buildings and land for an aggregate sale price of $32.5 million and recorded aggregate gains on disposition of property of $6.7 million . Impairments During the third quarter of 2019, we recorded aggregate impairments of real estate assets of $5.3 million as a result of shortened hold periods from classifying all of our assets in Greensboro and Memphis as non-core. During the second quarter of 2019, we recorded an impairment of real estate assets of $0.5 million , which resulted from a change in market-based inputs and our assumptions about the use of the assets. |
Intangible Assets and Below Mar
Intangible Assets and Below Market Lease Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Below Market Lease Liabilities | Intangible Assets and Below Market Lease Liabilities The following table sets forth total intangible assets and acquisition-related below market lease liabilities, net of accumulated amortization: September 30, December 31, Assets: Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets) $ 344,067 $ 344,548 Less accumulated amortization (148,019 ) (149,275 ) $ 196,048 $ 195,273 Liabilities (in accounts payable, accrued expenses and other liabilities): Acquisition-related below market lease liabilities $ 53,861 $ 57,955 Less accumulated amortization (33,285 ) (32,307 ) $ 20,576 $ 25,648 The following table sets forth amortization of intangible assets and below market lease liabilities: Three Months Ended Nine Months Ended 2019 2018 2019 2018 Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization) $ 9,003 $ 8,969 $ 28,077 $ 27,671 Amortization of lease incentives (in rental and other revenues) $ 540 $ 452 $ 3,848 $ 1,357 Amortization of acquisition-related intangible assets (in rental and other revenues) $ 305 $ 415 $ 1,005 $ 1,292 Amortization of acquisition-related intangible assets (in rental property and other expenses) $ 140 $ 140 $ 416 $ 416 Amortization of acquisition-related below market lease liabilities (in rental and other revenues) $ (1,656 ) $ (1,535 ) $ (5,072 ) $ (4,553 ) 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) October 1 through December 31, 2019 $ 9,538 $ 428 $ 258 $ 137 $ (1,349 ) 2020 34,968 1,584 954 514 (5,107 ) 2021 30,100 1,338 631 — (4,152 ) 2022 25,689 1,104 462 — (3,086 ) 2023 22,180 1,025 308 — (2,707 ) Thereafter 58,995 4,735 1,100 — (4,175 ) $ 181,470 $ 10,214 $ 3,713 $ 651 $ (20,576 ) Weighted average remaining amortization periods as of September 30, 2019 (in years) 7.3 9.3 6.5 1.2 5.2 |
Mortgages and Notes Payable
Mortgages and Notes Payable | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Mortgages and Notes Payable | Mortgages and Notes Payable The following table sets forth our mortgages and notes payable: September 30, December 31, Secured indebtedness $ 95,779 $ 97,179 Unsecured indebtedness 2,239,999 1,997,816 Less-unamortized debt issuance costs (13,552 ) (9,164 ) Total mortgages and notes payable, net $ 2,322,226 $ 2,085,831 At September 30, 2019 , our secured mortgage loan was collateralized by real estate assets with an undepreciated book value of $ 146.3 million . Our $ 600.0 million unsecured revolving credit facility is scheduled to mature in January 2022 and includes an accordion feature that allows for an additional $400.0 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 100 basis points and the annual facility fee is 20 basis points. There were no amounts outstanding under our revolving credit facility at both September 30, 2019 and October 15, 2019 . At both September 30, 2019 and October 15, 2019 , we had $ 0.1 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 both September 30, 2019 and October 15, 2019 was $ 599.9 million . During the third quarter of 2019, the Operating Partnership issued $400.0 million aggregate principal amount of 3.050% notes due February 2030 , less original issuance discount of $1.0 million . These notes were priced to yield 3.079% . Underwriting fees and other expenses were incurred that aggregated $3.4 million ; these costs were deferred and will be amortized over the term of the notes. During the third quarter of 2019, we prepaid without penalty $100.0 million of our $200.0 million unsecured bank term loan that is scheduled to mature in January 2022 . The interest rate on the term loan at our current credit ratings is LIBOR plus 110 basis points . We recorded $0.3 million of loss on debt extinguishment related to this prepayment. During the first quarter of 2019, we prepaid without penalty our $225.0 million , seven -year unsecured bank term loan, which was scheduled to mature in June 2020 . The interest rate on the term loan was LIBOR plus 110 basis points . We recorded $0.4 million of loss on debt extinguishment related to this prepayment. During the first quarter of 2019, the Operating Partnership issued $350.0 million aggregate principal amount of 4.20% notes due April 2029 , less original issuance discount of $1.0 million . These notes were priced to yield 4.234% . Underwriting fees and other expenses were incurred that aggregated $3.1 million ; these costs were deferred and will be amortized over the term of the notes. We are currently in compliance with financial covenants with respect to our consolidated debt. We have considered our short-term liquidity needs and the adequacy of our estimated cash flows from operating activities and other available financing sources to meet these needs. We intend to meet these short-term liquidity requirements through a combination of the following: • available cash and cash equivalents; • cash flows from operating activities; • issuance of debt securities by the Operating Partnership; • issuance of secured debt; • bank term loans; • borrowings under our revolving credit facility; • issuance of equity securities by the Company or the Operating Partnership; and • the disposition of non-core assets. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments During the third quarter of 2019, we entered into $150.0 million notional amount of forward-starting swaps that effectively locked the underlying 10 -year treasury rate at 1.87% with respect to a planned issuance of debt securities by the Operating Partnership. Upon the subsequent issuance of the $400.0 million aggregate principal amount of 3.050% notes due February 2030 during the third quarter of 2019, we terminated the forward-starting swaps and paid cash upon settlement. The unrealized loss of $6.6 million in accumulated other comprehensive income/(loss) will be reclassified to interest expense as interest payments are made on the debt. During 2018, we entered into an aggregate of $225.0 million notional amount of forward-starting swaps that effectively locked the underlying 10 -year treasury rate at a weighted average of 2.86% with respect to a planned issuance of debt securities by the Operating Partnership. Upon issuance of the $350.0 million aggregate principal amount of 4.20% notes due April 2029 during the first quarter of 2019, we terminated the forward-starting swaps and paid cash upon settlement. The unrealized loss of $5.1 million in accumulated other comprehensive income/(loss) will be reclassified to interest expense as interest payments are made on the debt. The counterparties under our swaps are major financial institutions. The swap agreements contain a provision whereby if we default on certain of our indebtedness and which default results in repayment of such indebtedness being, or becoming capable of being, accelerated by the lender, then we could also be declared in default on our swaps. Our interest rate swaps have been designated as and are being accounted for as cash flow hedges with changes in fair value recorded in other comprehensive income/(loss) each reporting period. We have no collateral requirements related to our interest rate swaps. Amounts reported in accumulated other comprehensive income/(loss) related to derivatives will be reclassified to interest expense as interest payments are made on our debt. During the period from October 1, 2019 through September 30, 2020 , we estimate that $0.3 million will be reclassified as a net decrease to interest expense. The following table sets forth the gross fair value of our derivatives: September 30, December 31, Derivatives: Derivatives designated as cash flow hedges in prepaid expenses and other assets: Interest rate swaps $ — $ 1,146 Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities: Interest rate swaps $ 284 $ 3,581 The following table sets forth the effect of our cash flow hedges on accumulated other comprehensive income/(loss) and interest expense: Three Months Ended Nine Months Ended 2019 2018 2019 2018 Derivatives Designated as Cash Flow Hedges: Amount of unrealized gains/(losses) recognized in accumulated other comprehensive income/(loss) on derivatives: Interest rate swaps $ (6,732 ) $ 2,187 $ (9,282 ) $ 10,926 Amount of gains reclassified out of accumulated other comprehensive income/(loss) into interest expense: Interest rate swaps $ (283 ) $ (654 ) $ (1,158 ) $ (1,275 ) |
Noncontrolling Interests
Noncontrolling Interests | 9 Months Ended |
Sep. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests Noncontrolling Interests in Consolidated Affiliates At September 30, 2019 , our noncontrolling interests in consolidated affiliates relate to our joint venture partners' 50.0% interest in office properties in Richmond and 20.0% interest in an office development property in Tampa. Our joint venture partners are unrelated third parties. Noncontrolling Interests in the Operating Partnership The following table sets forth the Company's noncontrolling interests in the Operating Partnership: Three Months Ended Nine Months Ended 2019 2018 2019 2018 Beginning noncontrolling interests in the Operating Partnership $ 112,778 $ 142,323 $ 105,960 $ 144,009 Adjustment of noncontrolling interests in the Operating Partnership to fair value 10,493 (9,335 ) 19,025 (9,607 ) Conversions of Common Units to Common Stock (219 ) (147 ) (572 ) (1,231 ) Net income attributable to noncontrolling interests in the Operating Partnership 737 902 1,974 3,171 Distributions to noncontrolling interests in the Operating Partnership (1,296 ) (1,296 ) (3,894 ) (3,895 ) Total noncontrolling interests in the Operating Partnership $ 122,493 $ 132,447 $ 122,493 $ 132,447 The following table sets forth net income available for common stockholders and transfers from the Company's noncontrolling interests in the Operating Partnership: Three Months Ended Nine Months Ended 2019 2018 2019 2018 Net income available for common stockholders $ 27,901 $ 33,160 $ 74,578 $ 116,295 Increase in additional paid in capital from conversions of Common Units to Common Stock 219 147 572 1,231 Change from net income available for common stockholders and transfers from noncontrolling interests $ 28,120 $ 33,307 $ 75,150 $ 117,526 |
Disclosure About Fair Value of
Disclosure About Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Disclosure About Fair Value of Financial Instruments | Disclosure About Fair Value of Financial Instruments The following summarizes the levels of inputs that we use to measure fair value. Level 1. Quoted prices in active markets for identical assets or liabilities. Our Level 1 asset is our investment in marketable securities that we use to pay benefits under our non-qualified deferred compensation plan. Our Level 1 liability is our non-qualified deferred compensation obligation. The Company's Level 1 noncontrolling interests in the Operating Partnership relate to the ownership of Common Units by various individuals and entities other than the Company. Level 2. Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. Our Level 2 assets include the fair value of our mortgages and notes receivable and certain interest rate swaps. Our Level 2 liabilities include the fair value of our mortgages and notes payable and remaining interest rate swaps. The fair value of mortgages and notes receivable and mortgages and notes payable is estimated by the income approach utilizing contractual cash flows and market-based interest rates to approximate the price that would be paid in an orderly transaction between market participants. The fair value of interest rate swaps is determined using the market standard methodology of netting the discounted future fixed cash receipts and the discounted expected variable cash payments. The variable cash payments of interest rate swaps are based on the expectation of future interest rates (forward curves) derived from observed market interest rate curves. In addition, credit valuation adjustments are considered in the fair values to account for potential nonperformance risk, but were concluded to not be significant inputs to the calculation for the periods presented. Level 3. Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Our Level 3 assets include any real estate assets recorded at fair value on a non-recurring basis as a result of our quarterly impairment analysis, which are valued using unobservable local and national industry market data such as comparable sales, appraisals, brokers' opinions of value and/or the terms of definitive sales contracts. Significant increases or decreases in any valuation inputs in isolation would result in a significantly lower or higher fair value measurement. The following table sets forth our assets and liabilities and the Company's noncontrolling interests in the Operating Partnership that are measured or disclosed at fair value within the fair value hierarchy. Level 1 Level 2 Level 3 Total Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Observable Inputs Significant Unobservable Inputs Fair Value at September 30, 2019: Assets: Mortgages and notes receivable, at fair value (1) $ 1,542 $ — $ 1,542 $ — Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 2,170 2,170 — — Impaired real estate assets 7,580 — — 7,580 Total Assets $ 11,292 $ 2,170 $ 1,542 $ 7,580 Noncontrolling Interests in the Operating Partnership $ 122,493 $ 122,493 $ — $ — Liabilities: Mortgages and notes payable, net, at fair value (1) $ 2,391,434 $ — $ 2,391,434 $ — Interest rate swaps (in accounts payable, accrued expenses and other liabilities) 284 — 284 — Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 2,170 2,170 — — Total Liabilities $ 2,393,888 $ 2,170 $ 2,391,718 $ — Fair Value at December 31, 2018: Assets: Mortgages and notes receivable, at fair value (1) $ 5,599 $ — $ 5,599 $ — Interest rate swaps (in prepaid expenses and other assets) 1,146 — 1,146 — Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 1,849 1,849 — — Impaired real estate assets 10,252 — — 10,252 Total Assets $ 18,846 $ 1,849 $ 6,745 $ 10,252 Noncontrolling Interests in the Operating Partnership $ 105,960 $ 105,960 $ — $ — Liabilities: Mortgages and notes payable, net, at fair value (1) $ 2,056,248 $ — $ 2,056,248 $ — Interest rate swaps (in accounts payable, accrued expenses and other liabilities) 3,581 — 3,581 — Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 1,849 1,849 — — Total Liabilities $ 2,061,678 $ 1,849 $ 2,059,829 $ — __________ (1) Amounts recorded at historical cost on our Consolidated Balance Sheets at September 30, 2019 and December 31, 2018 . The Level 3 impaired real estate assets measured at a fair value of $7.6 million in the third quarter of 2019 include an office building and land held for development. The aggregate impairments resulted from a change in our assumptions about the use of the assets and were calculated using brokers’ opinions of value and comparable sales as observable inputs were not available. The Level 3 impaired real estate assets measured at fair values of $0.7 million and $10.3 million in the second quarter of 2019 and fourth quarter of 2018 , respectively, include land held for development. The impairments resulted from a change in our assumptions about the use of the assets and were calculated using the terms of definitive sales contracts as observable inputs were not available. |
Share-Based Payments
Share-Based Payments | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Payments | Share-Based Payments During the nine months ended September 30, 2019 , the Company granted 103,590 shares of time-based restricted stock and 87,344 shares of total return-based restricted stock with weighted average grant date fair values per share of $ 45.98 and $ 39.42 , respectively. We recorded share-based compensation expense of $0.7 million and $1.1 million during the three months ended September 30, 2019 and 2018 , respectively, and $6.2 million and $6.6 million during the nine months ended September 30, 2019 and 2018 , respectively. At September 30, 2019 , there was $6.2 million of total unrecognized share-based compensation costs, which will be recognized over a weighted average remaining contractual term of 2.3 years. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income/(Loss) | 9 Months Ended |
Sep. 30, 2019 | |
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 Nine Months Ended 2019 2018 2019 2018 Cash flow hedges: Beginning balance $ 6,488 $ 15,956 $ 9,913 $ 7,838 Unrealized gains/(losses) on cash flow hedges (6,732 ) 2,187 (9,282 ) 10,926 Amortization of cash flow hedges (1) (283 ) (654 ) (1,158 ) (1,275 ) Total accumulated other comprehensive income/(loss) $ (527 ) $ 17,489 $ (527 ) $ 17,489 __________ (1) Amounts reclassified out of accumulated other comprehensive income/(loss) into interest expense. |
Earnings Per Share and Per Unit
Earnings Per Share and Per Unit | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share and Per Unit | Earnings Per Share and Per Unit The following table sets forth the computation of basic and diluted earnings per share of the Company: Three Months Ended Nine Months Ended 2019 2018 2019 2018 Earnings per Common Share - basic: Numerator: Net income $ 29,557 $ 35,009 $ 79,337 $ 122,253 Net (income) attributable to noncontrolling interests in the Operating Partnership (737 ) (902 ) (1,974 ) (3,171 ) Net (income) attributable to noncontrolling interests in consolidated affiliates (297 ) (324 ) (919 ) (918 ) Dividends on Preferred Stock (622 ) (623 ) (1,866 ) (1,869 ) Net income available for common stockholders $ 27,901 $ 33,160 $ 74,578 $ 116,295 Denominator: Denominator for basic earnings per Common Share – weighted average shares 103,727 103,471 103,674 103,408 Net income available for common stockholders $ 0.27 $ 0.32 $ 0.72 $ 1.12 Earnings per Common Share - diluted: Numerator: Net income $ 29,557 $ 35,009 $ 79,337 $ 122,253 Net (income) attributable to noncontrolling interests in consolidated affiliates (297 ) (324 ) (919 ) (918 ) Dividends on Preferred Stock (622 ) (623 ) (1,866 ) (1,869 ) Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership $ 28,638 $ 34,062 $ 76,552 $ 119,466 Denominator: Denominator for basic earnings per Common Share – weighted average shares 103,727 103,471 103,674 103,408 Add: Stock options using the treasury method 16 58 18 39 Noncontrolling interests Common Units 2,728 2,804 2,733 2,809 Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions (1) 106,471 106,333 106,425 106,256 Net income available for common stockholders $ 0.27 $ 0.32 $ 0.72 $ 1.12 __________ (1) Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable. The following table sets forth the computation of basic and diluted earnings per unit of the Operating Partnership: Three Months Ended Nine Months Ended 2019 2018 2019 2018 Earnings per Common Unit - basic: Numerator: Net income $ 29,557 $ 35,009 $ 79,337 $ 122,253 Net (income) attributable to noncontrolling interests in consolidated affiliates (297 ) (324 ) (919 ) (918 ) Distributions on Preferred Units (622 ) (623 ) (1,866 ) (1,869 ) Net income available for common unitholders $ 28,638 $ 34,062 $ 76,552 $ 119,466 Denominator: Denominator for basic earnings per Common Unit – weighted average units 106,046 105,866 105,998 105,808 Net income available for common unitholders $ 0.27 $ 0.32 $ 0.72 $ 1.13 Earnings per Common Unit - diluted: Numerator: Net income $ 29,557 $ 35,009 $ 79,337 $ 122,253 Net (income) attributable to noncontrolling interests in consolidated affiliates (297 ) (324 ) (919 ) (918 ) Distributions on Preferred Units (622 ) (623 ) (1,866 ) (1,869 ) Net income available for common unitholders $ 28,638 $ 34,062 $ 76,552 $ 119,466 Denominator: Denominator for basic earnings per Common Unit – weighted average units 106,046 105,866 105,998 105,808 Add: Stock options using the treasury method 16 58 18 39 Denominator for diluted earnings per Common Unit – adjusted weighted average units and assumed conversions (1) 106,062 105,924 106,016 105,847 Net income available for common unitholders $ 0.27 $ 0.32 $ 0.72 $ 1.13 __________ (1) Includes all unvested restricted stock where distributions on such restricted stock are non-forfeitable. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The following tables summarize the rental and other revenues and net operating income, the primary industry property-level performance metric used by our chief operating decision maker and which is defined as rental and other revenues less rental property and other expenses, for each of our reportable segments. Three Months Ended Nine Months Ended 2019 2018 2019 2018 Rental and Other Revenues: Office: Atlanta $ 39,120 $ 35,375 $ 113,115 $ 105,635 Greensboro 5,524 5,349 16,611 16,753 Memphis 9,967 10,121 29,669 30,228 Nashville 34,748 29,927 99,256 91,319 Orlando 12,854 13,352 39,781 40,103 Pittsburgh 15,154 14,982 45,463 45,587 Raleigh 30,688 30,432 90,458 89,518 Richmond 12,576 11,262 37,203 33,204 Tampa 23,563 25,460 62,631 76,726 Total Office Segment 184,194 176,260 534,187 529,073 Other 3,281 3,157 9,721 9,574 Total Rental and Other Revenues $ 187,475 $ 179,417 $ 543,908 $ 538,647 Net Operating Income: Office: Atlanta $ 24,372 $ 21,443 $ 72,614 $ 65,721 Greensboro 3,500 3,372 10,715 10,817 Memphis 6,104 6,471 18,336 19,289 Nashville 25,191 21,896 71,717 66,306 Orlando 7,889 8,195 24,452 24,551 Pittsburgh 9,150 8,969 27,179 27,189 Raleigh 22,066 22,018 65,363 65,384 Richmond 8,337 7,376 25,499 22,616 Tampa 14,339 16,188 35,715 49,448 Total Office Segment 120,948 115,928 351,590 351,321 Other 2,392 2,336 7,074 7,078 Total Net Operating Income 123,340 118,264 358,664 358,399 Reconciliation to net income: Depreciation and amortization (60,850 ) (57,661 ) (189,514 ) (171,923 ) Impairments of real estate assets (5,318 ) — (5,849 ) — General and administrative expenses (11,717 ) (9,551 ) (33,658 ) (30,869 ) Interest expense (20,527 ) (17,437 ) (59,622 ) (53,705 ) Other income/(loss) 174 818 (3,271 ) 1,735 Gains on disposition of property 3,515 3 10,218 16,975 Equity in earnings of unconsolidated affiliates 940 573 2,369 1,641 Net income $ 29,557 $ 35,009 $ 79,337 $ 122,253 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On October 17, 2019, the Company declared a cash dividend of $0.475 per share of Common Stock, which is payable on December 3, 2019 to stockholders of record as of November 11, 2019. |
Description of Business and S_2
Description of Business and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Our Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company’s Consolidated Financial Statements include the Operating Partnership, wholly owned subsidiaries and those entities in which the Company has the controlling interest. The Operating Partnership's Consolidated Financial Statements include wholly owned subsidiaries and those entities in which the Operating Partnership has the controlling interest. We consolidate joint venture investments, such as interests in partnerships and limited liability companies, when we control the major operating and financial policies of the investment through majority ownership, in our capacity as a general partner or managing member or through some other contractual right. In addition, we consolidate those entities deemed to be variable interest entities in which we are determined to be the primary beneficiary. At September 30, 2019 , we have involvement with, and are the primary beneficiary in, an entity that we concluded to be a variable interest entity (see Note 3). All intercompany transactions and accounts have been eliminated. The unaudited interim consolidated financial statements and accompanying unaudited consolidated financial information, in the opinion of management, contain all adjustments (including normal recurring accruals) necessary for a fair presentation of our financial position, results of operations and cash flows. We have condensed or omitted certain notes and other information from the interim Consolidated Financial Statements presented in this Quarterly Report as permitted by SEC rules and regulations. These Consolidated Financial Statements should be read in conjunction with our 2018 Annual Report on Form 10-K. Certain amounts within the Consolidated Statements of Income for the three and nine months ended September 30, 2018 were removed and/or combined to conform to the current year presentation. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the amounts reported in our Consolidated Financial Statements and accompanying notes. Actual results could differ from those estimates. |
Real Estate and Related Assets | Real Estate and Related Assets Real estate and related assets are recorded at cost and stated at cost less accumulated depreciation. Renovations, replacements and other expenditures that improve or extend the life of assets are capitalized and depreciated over their estimated useful lives. Expenditures for ordinary maintenance and repairs are charged to expense as incurred. Depreciation is computed using the straight-line method over the estimated useful life of 40 years for buildings and depreciable land infrastructure costs, 15 years for building improvements and five to seven years for furniture, fixtures and equipment. Tenant improvements are amortized using the straight-line method over initial fixed terms of the respective leases, which generally are from three to 10 |
Insurance | Insurance |
Recently Issued Accounting Standards | Recently Issued Accounting Standards The Financial Accounting Standards Board (“FASB”) issued an accounting standards update (“ASU”) that eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item when the hedged item affects earnings. We adopted the ASU as of January 1, 2019 with no material effect on our Consolidated Financial Statements. The FASB issued an ASU that changes certain disclosure requirements for fair value measurements. The ASU is required to be adopted in 2020 and applied prospectively. We do not expect such adoption to have a material effect on our Notes to Consolidated Financial Statements. On January 1, 2019, we adopted Accounting Standards Codification Topic 842 “Leases” (“ASC 842”), which supersedes Accounting Standards Codification Topic 840 “Leases” (“ASC 840”). Information in this Note 2 with respect to our leases and lease related costs as both lessee and lessor and lease related receivables as lessor is presented under ASC 842 as of September 30, 2019 and for the three and nine months ended September 30, 2019 and under ASC 840 as of and for the year ended December 31, 2018 . We adopted ASC 842 using the modified retrospective approach whereby the cumulative effect of adoption was recognized on the adoption date and prior periods were not restated. There was no net cumulative effect adjustment to retained earnings as of January 1, 2019 as a result of this adoption. ASC 842 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. We operate as both a lessor and a lessee. As a lessor, we are required under ASC 842 to account for leases using an approach that is substantially equivalent to ASC 840's guidance for operating leases and other leases such as sales-type leases and direct financing leases. In addition, ASC 842 requires lessors to capitalize and amortize only incremental direct leasing costs. As a lessee, we are required under the new standard to apply a dual approach, classifying leases, such as ground leases, as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase. This classification determines whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. ASC 842 also requires lessees to record a right of use asset and a lease liability for all leases with a term of greater than a year regardless of their classification. We have also elected the practical expedient not to recognize right of use assets and lease liabilities for leases with a term of a year or less. On adoption of the standard, we elected the package of practical expedients provided for in ASC 842, including: • No reassessment of whether any expired or existing contracts were or contained leases; • No reassessment of the lease classification for any expired or existing leases; and • No reassessment of initial direct costs for any existing leases. The package of practical expedients was made as a single election and was consistently applied to all existing leases as of January 1, 2019. We also elected the practical expedient provided to lessors in a subsequent amendment to ASC 842 that removed the requirement to separate lease and nonlease components, provided certain conditions were met. |
Leases Leases (Policies)
Leases Leases (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards The Financial Accounting Standards Board (“FASB”) issued an accounting standards update (“ASU”) that eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item when the hedged item affects earnings. We adopted the ASU as of January 1, 2019 with no material effect on our Consolidated Financial Statements. The FASB issued an ASU that changes certain disclosure requirements for fair value measurements. The ASU is required to be adopted in 2020 and applied prospectively. We do not expect such adoption to have a material effect on our Notes to Consolidated Financial Statements. On January 1, 2019, we adopted Accounting Standards Codification Topic 842 “Leases” (“ASC 842”), which supersedes Accounting Standards Codification Topic 840 “Leases” (“ASC 840”). Information in this Note 2 with respect to our leases and lease related costs as both lessee and lessor and lease related receivables as lessor is presented under ASC 842 as of September 30, 2019 and for the three and nine months ended September 30, 2019 and under ASC 840 as of and for the year ended December 31, 2018 . We adopted ASC 842 using the modified retrospective approach whereby the cumulative effect of adoption was recognized on the adoption date and prior periods were not restated. There was no net cumulative effect adjustment to retained earnings as of January 1, 2019 as a result of this adoption. ASC 842 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. We operate as both a lessor and a lessee. As a lessor, we are required under ASC 842 to account for leases using an approach that is substantially equivalent to ASC 840's guidance for operating leases and other leases such as sales-type leases and direct financing leases. In addition, ASC 842 requires lessors to capitalize and amortize only incremental direct leasing costs. As a lessee, we are required under the new standard to apply a dual approach, classifying leases, such as ground leases, as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase. This classification determines whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. ASC 842 also requires lessees to record a right of use asset and a lease liability for all leases with a term of greater than a year regardless of their classification. We have also elected the practical expedient not to recognize right of use assets and lease liabilities for leases with a term of a year or less. On adoption of the standard, we elected the package of practical expedients provided for in ASC 842, including: • No reassessment of whether any expired or existing contracts were or contained leases; • No reassessment of the lease classification for any expired or existing leases; and • No reassessment of initial direct costs for any existing leases. The package of practical expedients was made as a single election and was consistently applied to all existing leases as of January 1, 2019. We also elected the practical expedient provided to lessors in a subsequent amendment to ASC 842 that removed the requirement to separate lease and nonlease components, provided certain conditions were met. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lessor, Operating Leases, ASC 842 Disclosure | The following table sets forth the undiscounted cash flows for future minimum base rents to be received from customers for leases in effect at September 30, 2019 for the properties that we wholly own: October 1 through December 31, 2019 $ 156,920 2020 619,066 2021 577,843 2022 544,683 2023 483,709 2024 422,362 Thereafter 1,820,576 $ 4,625,159 |
Lessor, Operating Leases, ASC 840 Disclosure | The following table sets forth our scheduled future minimum base rents to be received from customers for leases in effect at December 31, 2018 for the properties that we wholly own: 2019 $ 618,014 2020 581,399 2021 524,381 2022 488,157 2023 428,461 Thereafter 2,068,891 $ 4,709,303 |
Lessee, Operating Leases, ASC 842 Disclosure | The following table sets forth the undiscounted cash flows of our scheduled obligations for future minimum payments on operating ground leases at September 30, 2019 and a reconciliation of those cash flows to the operating lease liability at September 30, 2019 : October 1 through December 31, 2019 $ 517 2020 2,086 2021 2,127 2022 2,169 2023 2,167 2024 2,123 Thereafter 83,697 94,886 Discount (59,869 ) Lease liability $ 35,017 |
Lessee, Operating Leases, ASC 840 Disclosure | The following table sets forth our scheduled obligations for future minimum payments on operating ground leases at December 31, 2018 : 2019 $ 2,184 2020 2,223 2021 2,263 2022 2,305 2023 2,308 Thereafter 86,577 $ 97,860 |
Consolidated Variable Interes_2
Consolidated Variable Interest Entity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Variable Interest Entities [Abstract] | |
Schedule of Variable Interest Entities | The following table sets forth the assets and liabilities of the Midtown One joint venture included on our Consolidated Balance Sheets: September 30, Development in-process $ 19,602 Accounts payable, accrued expenses and other liabilities $ 798 |
Intangible Assets and Below M_2
Intangible Assets and Below Market Lease Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Total Intangible Assets and Below Market Lease Liabilities | The following table sets forth total intangible assets and acquisition-related below market lease liabilities, net of accumulated amortization: September 30, December 31, Assets: Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets) $ 344,067 $ 344,548 Less accumulated amortization (148,019 ) (149,275 ) $ 196,048 $ 195,273 Liabilities (in accounts payable, accrued expenses and other liabilities): Acquisition-related below market lease liabilities $ 53,861 $ 57,955 Less accumulated amortization (33,285 ) (32,307 ) $ 20,576 $ 25,648 |
Amortization of Intangible Assets and Below Market Lease Liabilities | The following table sets forth amortization of intangible assets and below market lease liabilities: Three Months Ended Nine Months Ended 2019 2018 2019 2018 Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization) $ 9,003 $ 8,969 $ 28,077 $ 27,671 Amortization of lease incentives (in rental and other revenues) $ 540 $ 452 $ 3,848 $ 1,357 Amortization of acquisition-related intangible assets (in rental and other revenues) $ 305 $ 415 $ 1,005 $ 1,292 Amortization of acquisition-related intangible assets (in rental property and other expenses) $ 140 $ 140 $ 416 $ 416 Amortization of acquisition-related below market lease liabilities (in rental and other revenues) $ (1,656 ) $ (1,535 ) $ (5,072 ) $ (4,553 ) |
Scheduled Future Amortization of Intangible Assets and Below Market Lease Liabilities | The following table sets forth scheduled future amortization of intangible assets and below market lease liabilities: Amortization of Deferred Leasing Costs and Acquisition-Related Intangible Assets (in Depreciation and Amortization) Amortization of Lease Incentives (in Rental and Other Revenues) Amortization of Acquisition-Related Intangible Assets (in Rental and Other Revenues) Amortization of Acquisition-Related Intangible Assets (in Rental Property and Other Expenses) Amortization of Acquisition-Related Below Market Lease Liabilities (in Rental and Other Revenues) October 1 through December 31, 2019 $ 9,538 $ 428 $ 258 $ 137 $ (1,349 ) 2020 34,968 1,584 954 514 (5,107 ) 2021 30,100 1,338 631 — (4,152 ) 2022 25,689 1,104 462 — (3,086 ) 2023 22,180 1,025 308 — (2,707 ) Thereafter 58,995 4,735 1,100 — (4,175 ) $ 181,470 $ 10,214 $ 3,713 $ 651 $ (20,576 ) Weighted average remaining amortization periods as of September 30, 2019 (in years) 7.3 9.3 6.5 1.2 5.2 |
Mortgages and Notes Payable (Ta
Mortgages and Notes Payable (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Consolidated Mortgages and Notes Payable | The following table sets forth our mortgages and notes payable: September 30, December 31, Secured indebtedness $ 95,779 $ 97,179 Unsecured indebtedness 2,239,999 1,997,816 Less-unamortized debt issuance costs (13,552 ) (9,164 ) Total mortgages and notes payable, net $ 2,322,226 $ 2,085,831 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments, Fair Value | The following table sets forth the gross fair value of our derivatives: September 30, December 31, Derivatives: Derivatives designated as cash flow hedges in prepaid expenses and other assets: Interest rate swaps $ — $ 1,146 Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities: Interest rate swaps $ 284 $ 3,581 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following table sets forth the effect of our cash flow hedges on accumulated other comprehensive income/(loss) and interest expense: Three Months Ended Nine Months Ended 2019 2018 2019 2018 Derivatives Designated as Cash Flow Hedges: Amount of unrealized gains/(losses) recognized in accumulated other comprehensive income/(loss) on derivatives: Interest rate swaps $ (6,732 ) $ 2,187 $ (9,282 ) $ 10,926 Amount of gains reclassified out of accumulated other comprehensive income/(loss) into interest expense: Interest rate swaps $ (283 ) $ (654 ) $ (1,158 ) $ (1,275 ) |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) - Highwoods Properties, Inc. [Member] | 9 Months Ended |
Sep. 30, 2019 | |
Noncontrolling Interest [Line Items] | |
Noncontrolling Interests in the Operating Partnership | The following table sets forth the Company's noncontrolling interests in the Operating Partnership: Three Months Ended Nine Months Ended 2019 2018 2019 2018 Beginning noncontrolling interests in the Operating Partnership $ 112,778 $ 142,323 $ 105,960 $ 144,009 Adjustment of noncontrolling interests in the Operating Partnership to fair value 10,493 (9,335 ) 19,025 (9,607 ) Conversions of Common Units to Common Stock (219 ) (147 ) (572 ) (1,231 ) Net income attributable to noncontrolling interests in the Operating Partnership 737 902 1,974 3,171 Distributions to noncontrolling interests in the Operating Partnership (1,296 ) (1,296 ) (3,894 ) (3,895 ) Total noncontrolling interests in the Operating Partnership $ 122,493 $ 132,447 $ 122,493 $ 132,447 |
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership | The following table sets forth net income available for common stockholders and transfers from the Company's noncontrolling interests in the Operating Partnership: Three Months Ended Nine Months Ended 2019 2018 2019 2018 Net income available for common stockholders $ 27,901 $ 33,160 $ 74,578 $ 116,295 Increase in additional paid in capital from conversions of Common Units to Common Stock 219 147 572 1,231 Change from net income available for common stockholders and transfers from noncontrolling interests $ 28,120 $ 33,307 $ 75,150 $ 117,526 |
Disclosure About Fair Value o_2
Disclosure About Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements of Assets, Liabilities and Noncontrolling Interests | The following table sets forth our assets and liabilities and the Company's noncontrolling interests in the Operating Partnership that are measured or disclosed at fair value within the fair value hierarchy. Level 1 Level 2 Level 3 Total Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Observable Inputs Significant Unobservable Inputs Fair Value at September 30, 2019: Assets: Mortgages and notes receivable, at fair value (1) $ 1,542 $ — $ 1,542 $ — Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 2,170 2,170 — — Impaired real estate assets 7,580 — — 7,580 Total Assets $ 11,292 $ 2,170 $ 1,542 $ 7,580 Noncontrolling Interests in the Operating Partnership $ 122,493 $ 122,493 $ — $ — Liabilities: Mortgages and notes payable, net, at fair value (1) $ 2,391,434 $ — $ 2,391,434 $ — Interest rate swaps (in accounts payable, accrued expenses and other liabilities) 284 — 284 — Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 2,170 2,170 — — Total Liabilities $ 2,393,888 $ 2,170 $ 2,391,718 $ — Fair Value at December 31, 2018: Assets: Mortgages and notes receivable, at fair value (1) $ 5,599 $ — $ 5,599 $ — Interest rate swaps (in prepaid expenses and other assets) 1,146 — 1,146 — Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 1,849 1,849 — — Impaired real estate assets 10,252 — — 10,252 Total Assets $ 18,846 $ 1,849 $ 6,745 $ 10,252 Noncontrolling Interests in the Operating Partnership $ 105,960 $ 105,960 $ — $ — Liabilities: Mortgages and notes payable, net, at fair value (1) $ 2,056,248 $ — $ 2,056,248 $ — Interest rate swaps (in accounts payable, accrued expenses and other liabilities) 3,581 — 3,581 — Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 1,849 1,849 — — Total Liabilities $ 2,061,678 $ 1,849 $ 2,059,829 $ — __________ (1) Amounts recorded at historical cost on our Consolidated Balance Sheets at September 30, 2019 and December 31, 2018 . |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income/(Loss) (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of Accumulated Other Comprehensive Income/(Loss) | The following table sets forth the components of accumulated other comprehensive income/(loss): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Cash flow hedges: Beginning balance $ 6,488 $ 15,956 $ 9,913 $ 7,838 Unrealized gains/(losses) on cash flow hedges (6,732 ) 2,187 (9,282 ) 10,926 Amortization of cash flow hedges (1) (283 ) (654 ) (1,158 ) (1,275 ) Total accumulated other comprehensive income/(loss) $ (527 ) $ 17,489 $ (527 ) $ 17,489 __________ (1) Amounts reclassified out of accumulated other comprehensive income/(loss) into interest expense. |
Earnings Per Share and Per Un_2
Earnings Per Share and Per Unit (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share and Per Unit Basic and Diluted [Line Items] | |
Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share of the Company: Three Months Ended Nine Months Ended 2019 2018 2019 2018 Earnings per Common Share - basic: Numerator: Net income $ 29,557 $ 35,009 $ 79,337 $ 122,253 Net (income) attributable to noncontrolling interests in the Operating Partnership (737 ) (902 ) (1,974 ) (3,171 ) Net (income) attributable to noncontrolling interests in consolidated affiliates (297 ) (324 ) (919 ) (918 ) Dividends on Preferred Stock (622 ) (623 ) (1,866 ) (1,869 ) Net income available for common stockholders $ 27,901 $ 33,160 $ 74,578 $ 116,295 Denominator: Denominator for basic earnings per Common Share – weighted average shares 103,727 103,471 103,674 103,408 Net income available for common stockholders $ 0.27 $ 0.32 $ 0.72 $ 1.12 Earnings per Common Share - diluted: Numerator: Net income $ 29,557 $ 35,009 $ 79,337 $ 122,253 Net (income) attributable to noncontrolling interests in consolidated affiliates (297 ) (324 ) (919 ) (918 ) Dividends on Preferred Stock (622 ) (623 ) (1,866 ) (1,869 ) Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership $ 28,638 $ 34,062 $ 76,552 $ 119,466 Denominator: Denominator for basic earnings per Common Share – weighted average shares 103,727 103,471 103,674 103,408 Add: Stock options using the treasury method 16 58 18 39 Noncontrolling interests Common Units 2,728 2,804 2,733 2,809 Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions (1) 106,471 106,333 106,425 106,256 Net income available for common stockholders $ 0.27 $ 0.32 $ 0.72 $ 1.12 __________ (1) |
Highwoods Realty Limited Partnership [Member] | |
Earnings Per Share and Per Unit Basic and Diluted [Line Items] | |
Earnings Per Unit | The following table sets forth the computation of basic and diluted earnings per unit of the Operating Partnership: Three Months Ended Nine Months Ended 2019 2018 2019 2018 Earnings per Common Unit - basic: Numerator: Net income $ 29,557 $ 35,009 $ 79,337 $ 122,253 Net (income) attributable to noncontrolling interests in consolidated affiliates (297 ) (324 ) (919 ) (918 ) Distributions on Preferred Units (622 ) (623 ) (1,866 ) (1,869 ) Net income available for common unitholders $ 28,638 $ 34,062 $ 76,552 $ 119,466 Denominator: Denominator for basic earnings per Common Unit – weighted average units 106,046 105,866 105,998 105,808 Net income available for common unitholders $ 0.27 $ 0.32 $ 0.72 $ 1.13 Earnings per Common Unit - diluted: Numerator: Net income $ 29,557 $ 35,009 $ 79,337 $ 122,253 Net (income) attributable to noncontrolling interests in consolidated affiliates (297 ) (324 ) (919 ) (918 ) Distributions on Preferred Units (622 ) (623 ) (1,866 ) (1,869 ) Net income available for common unitholders $ 28,638 $ 34,062 $ 76,552 $ 119,466 Denominator: Denominator for basic earnings per Common Unit – weighted average units 106,046 105,866 105,998 105,808 Add: Stock options using the treasury method 16 58 18 39 Denominator for diluted earnings per Common Unit – adjusted weighted average units and assumed conversions (1) 106,062 105,924 106,016 105,847 Net income available for common unitholders $ 0.27 $ 0.32 $ 0.72 $ 1.13 __________ (1) Includes all unvested restricted stock where distributions on such restricted stock are non-forfeitable. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | The following tables summarize the rental and other revenues and net operating income, the primary industry property-level performance metric used by our chief operating decision maker and which is defined as rental and other revenues less rental property and other expenses, for each of our reportable segments. Three Months Ended Nine Months Ended 2019 2018 2019 2018 Rental and Other Revenues: Office: Atlanta $ 39,120 $ 35,375 $ 113,115 $ 105,635 Greensboro 5,524 5,349 16,611 16,753 Memphis 9,967 10,121 29,669 30,228 Nashville 34,748 29,927 99,256 91,319 Orlando 12,854 13,352 39,781 40,103 Pittsburgh 15,154 14,982 45,463 45,587 Raleigh 30,688 30,432 90,458 89,518 Richmond 12,576 11,262 37,203 33,204 Tampa 23,563 25,460 62,631 76,726 Total Office Segment 184,194 176,260 534,187 529,073 Other 3,281 3,157 9,721 9,574 Total Rental and Other Revenues $ 187,475 $ 179,417 $ 543,908 $ 538,647 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Net Operating Income: Office: Atlanta $ 24,372 $ 21,443 $ 72,614 $ 65,721 Greensboro 3,500 3,372 10,715 10,817 Memphis 6,104 6,471 18,336 19,289 Nashville 25,191 21,896 71,717 66,306 Orlando 7,889 8,195 24,452 24,551 Pittsburgh 9,150 8,969 27,179 27,189 Raleigh 22,066 22,018 65,363 65,384 Richmond 8,337 7,376 25,499 22,616 Tampa 14,339 16,188 35,715 49,448 Total Office Segment 120,948 115,928 351,590 351,321 Other 2,392 2,336 7,074 7,078 Total Net Operating Income 123,340 118,264 358,664 358,399 Reconciliation to net income: Depreciation and amortization (60,850 ) (57,661 ) (189,514 ) (171,923 ) Impairments of real estate assets (5,318 ) — (5,849 ) — General and administrative expenses (11,717 ) (9,551 ) (33,658 ) (30,869 ) Interest expense (20,527 ) (17,437 ) (59,622 ) (53,705 ) Other income/(loss) 174 818 (3,271 ) 1,735 Gains on disposition of property 3,515 3 10,218 16,975 Equity in earnings of unconsolidated affiliates 940 573 2,369 1,641 Net income $ 29,557 $ 35,009 $ 79,337 $ 122,253 |
Description of Business and S_3
Description of Business and Significant Accounting Policies (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($)aft²phaseshares | Mar. 31, 2019USD ($)ft² | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)aft²phaseshares | Sep. 30, 2018USD ($) | |
Description of Business [Abstract] | ||||||
Rentable square feet of commercial real estate properties (in sq feet) | ft² | 31,200,000 | 31,200,000 | ||||
Rentable square feet of commercial real estate office properties under development (in sq feet) | ft² | 1,200,000 | 1,200,000 | ||||
Undeveloped land suitable for future development (in acres) | a | 275 | 275 | ||||
Real estate assets, depreciation expense | $ 51,300 | $ 48,100 | $ 159,700 | $ 142,400 | ||
Self insurance liability | 500 | 500 | ||||
Credit losses on operating lease receivables | 8,711 | 791 | ||||
Write-offs of lease incentives | 197 | (1,488) | ||||
Write-offs of notes receivable | 4,087 | 0 | ||||
Write-offs of tenant improvements and deferred leasing costs | $ 60,850 | 57,661 | $ 189,514 | 171,923 | ||
Highwoods Properties, Inc. [Member] | ||||||
Description of Business [Abstract] | ||||||
Common Units of partnership owned by the Company (in shares) | shares | 103,300,000 | 103,300,000 | ||||
Percentage of ownership of Common Units (in hundredths) | 97.40% | 97.40% | ||||
Common Units redeemed for a like number of common shares of stock (in shares) | shares | 13,000 | |||||
Highwoods Realty Limited Partnership [Member] | ||||||
Description of Business [Abstract] | ||||||
Common Units of partnership not owned by the Company (in shares) | shares | 2,700,000 | 2,700,000 | ||||
Credit losses on operating lease receivables | $ 8,711 | 791 | ||||
Write-offs of lease incentives | 197 | (1,488) | ||||
Write-offs of notes receivable | 4,087 | 0 | ||||
Write-offs of tenant improvements and deferred leasing costs | $ 60,850 | $ 57,661 | $ 189,514 | $ 171,923 | ||
Building [Member] | ||||||
Description of Business [Abstract] | ||||||
Property, plant and equipment useful life | 40 years | |||||
Building Improvements [Member] | ||||||
Description of Business [Abstract] | ||||||
Property, plant and equipment useful life | 15 years | |||||
Furniture and Fixtures [Member] | Minimum [Member] | ||||||
Description of Business [Abstract] | ||||||
Property, plant and equipment useful life | 5 years | |||||
Furniture and Fixtures [Member] | Maximum [Member] | ||||||
Description of Business [Abstract] | ||||||
Property, plant and equipment useful life | 7 years | |||||
Leaseholds and Leasehold Improvements [Member] | Minimum [Member] | ||||||
Description of Business [Abstract] | ||||||
Property, plant and equipment useful life | 3 years | |||||
Leaseholds and Leasehold Improvements [Member] | Maximum [Member] | ||||||
Description of Business [Abstract] | ||||||
Property, plant and equipment useful life | 10 years | |||||
Submarket Acquisition [Member] | ||||||
Description of Business [Abstract] | ||||||
Rentable square feet of commercial real estate properties (in sq feet) | ft² | 841,000 | 841,000 | ||||
Total investment cost of acquisition | $ 436,000 | |||||
Earnest money deposit | $ 50,000 | $ 50,000 | ||||
Division Exit [Member] | ||||||
Description of Business [Abstract] | ||||||
Number of plan phases (in ones) | phase | 2 | 2 | ||||
Purchase price of real estate | $ 436,000 | |||||
Expected severance costs | $ 700 | |||||
LSI Ceased Operations [Member] | ||||||
Description of Business [Abstract] | ||||||
Rentable square feet of commercial real estate properties (in sq feet) | ft² | 176,000 | |||||
Credit losses on operating lease receivables | $ 5,600 | |||||
Write-offs of lease incentives | 2,300 | |||||
Write-offs of notes receivable | 4,100 | |||||
Write-offs of tenant improvements and deferred leasing costs | $ 11,600 | |||||
Forecast [Member] | Division Exit [Member] | ||||||
Description of Business [Abstract] | ||||||
Expected severance costs | $ 1,500 |
Leases ASC 842 (Details)
Leases ASC 842 (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($)propertyUnit | |
Lessor Disclosure [Abstract] | ||
Rental and other revenues related to operating lease payments | $ 184,200 | $ 534,200 |
Variable lease income | 17,300 | 49,200 |
Operating leases, scheduled future minimum payments receivable [Abstract] | ||
October 1 to December 31, 2019 | 156,920 | 156,920 |
2020 | 619,066 | 619,066 |
2021 | 577,843 | 577,843 |
2022 | 544,683 | 544,683 |
2023 | 483,709 | 483,709 |
2024 | 422,362 | 422,362 |
Thereafter | 1,820,576 | 1,820,576 |
Operating leases, total future minimum payments receivable due | $ 4,625,159 | $ 4,625,159 |
Lessee Disclosure [Abstract] | ||
Number of properties subject to ground leases | propertyUnit | 20 | |
Weighted average remaining term of ground leases (in years) | 52 years | 52 years |
Operating lease liability upon initial adoption | $ 35,300 | $ 35,300 |
Right of use asset upon initial adoption | $ 29,700 | $ 29,700 |
Operating lease discount rate (in hundredths) | 4.50% | 4.50% |
Operating ground lease expense | $ 600 | $ 1,800 |
Operating ground lease payments | 500 | 1,700 |
Operating ground lease liabilities, scheduled future minimum payments [Abstract] | ||
October 1 to December 31, 2019 | 517 | 517 |
2020 | 2,086 | 2,086 |
2021 | 2,127 | 2,127 |
2022 | 2,169 | 2,169 |
2023 | 2,167 | 2,167 |
2024 | 2,123 | 2,123 |
Thereafter | 83,697 | 83,697 |
Operating ground lease liability, total future minimum payments | 94,886 | 94,886 |
Operating lease liability discount | (59,869) | (59,869) |
Operating lease liability | $ 35,017 | $ 35,017 |
Minimum [Member] | ||
Lessor Disclosure [Abstract] | ||
Operating leases, term of leases | 3 years | 3 years |
Maximum [Member] | ||
Lessor Disclosure [Abstract] | ||
Operating leases, term of leases | 10 years | 10 years |
Leases ASC 840 (Details)
Leases ASC 840 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating leases, scheduled future minimum payments receivable [Abstract] | |||
2019 | $ 618,014 | ||
2020 | 581,399 | ||
2021 | 524,381 | ||
2022 | 488,157 | ||
2023 | 428,461 | ||
Thereafter | 2,068,891 | ||
Operating leases, total future minimum payments receivable due | 4,709,303 | ||
Leases, Operating [Abstract] | |||
Total rental property expense recorded for operating ground leases | 2,500 | $ 2,500 | $ 2,900 |
Operating ground leases, scheduled future minimum payments [Abstract] | |||
2019 | 2,184 | ||
2020 | 2,223 | ||
2021 | 2,263 | ||
2022 | 2,305 | ||
2023 | 2,308 | ||
Thereafter | 86,577 | ||
Operating ground leases, total future minimum payments due | $ 97,860 |
Consolidated Variable Interes_3
Consolidated Variable Interest Entity (Details) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2019USD ($)ft² | Sep. 30, 2019USD ($)ft² | Dec. 31, 2018USD ($) | |
Consolidated Variable Interest Entity [Abstract] | |||
Rentable square feet of office property under development (in sq feet) | ft² | 1,200,000 | ||
Assets and liabilities of consolidated variable interest entity [Abstract] | |||
Development in-process | $ 133,189 | $ 165,537 | |
Accounts payable, accrued expenses and other liabilities | 272,989 | $ 218,922 | |
Consolidated Variable Interest Entity [Member] | |||
Consolidated Variable Interest Entity [Abstract] | |||
Rentable square feet of office property under development (in sq feet) | ft² | 150,000 | ||
Total anticipated development costs | $ 71,300 | ||
Contribution of cash to acquire interest in consolidated joint venture | $ 20,000 | ||
Contributions funded to acquire interest in consolidated joint venture | 13,600 | ||
Interest in consolidated joint venture (in hundredths) | 80.00% | ||
Partner's contribution of property to acquire interest in consolidated joint venture | $ 5,000 | ||
Partner's interest in consolidated joint venture (in hundredths) | 20.00% | ||
Advance to consolidated affiliate | $ 46,300 | ||
Assets and liabilities of consolidated variable interest entity [Abstract] | |||
Development in-process | 19,602 | ||
Accounts payable, accrued expenses and other liabilities | $ 798 | ||
London Interbank Offered Rate (LIBOR) [Member] | Consolidated Variable Interest Entity [Member] | |||
Consolidated Variable Interest Entity [Abstract] | |||
Variable interest rate basis | LIBOR plus 250 basis points | ||
Interest rate, basis spread (in hundredths) | 2.50% |
Real Estate Assets (Details)
Real Estate Assets (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($)propertyUnit | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | |
Dispositions [Abstract] | |||||
Gains on disposition of property | $ 3,515 | $ 3 | $ 10,218 | $ 16,975 | |
Impairments [Abstract] | |||||
Impairments of real estate assets | 5,318 | $ 0 | $ 5,849 | $ 0 | |
Raleigh NC Land Acquisition (7/2019) [Member] | |||||
Acquisitions [Abstract] | |||||
Acquisition purchase price | 6,600 | ||||
2019 Dispositions [Member] | |||||
Dispositions [Abstract] | |||||
Number of buildings sold | propertyUnit | 2 | ||||
Purchase price of real estate | 14,300 | $ 32,500 | |||
Gains on disposition of property | 3,500 | 6,700 | |||
2019 Impairments [Member] | |||||
Impairments [Abstract] | |||||
Impairments of real estate assets | $ 5,300 | $ 500 |
Intangible Assets and Below M_3
Intangible Assets and Below Market Lease Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Assets: | |||||
Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets) | $ 344,067 | $ 344,067 | $ 344,548 | ||
Deferred leasing costs, accumulated amortization | (148,019) | (148,019) | (149,275) | ||
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | 196,048 | 196,048 | 195,273 | ||
Liabilities (in accounts payable, accrued expenses and other liabilities): | |||||
Acquisition-related below market lease liabilities, gross | 53,861 | 53,861 | 57,955 | ||
Acquisition-related below market lease liabilities, accumulated amortization | (33,285) | (33,285) | (32,307) | ||
Acquisition-related below market lease liabilities, net | 20,576 | 20,576 | $ 25,648 | ||
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 | 181,470 | 181,470 | |||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||||
Amortization of intangible assets | 9,003 | $ 8,969 | 28,077 | $ 27,671 | |
Lease Incentives (in Rental and Other Revenues) [Member] | |||||
Assets: | |||||
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | 10,214 | 10,214 | |||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||||
Amortization of intangible assets | 540 | 452 | 3,848 | 1,357 | |
Acquisition-Related Intangible Assets (in Rental and Other Revenues) [Member] | |||||
Assets: | |||||
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | 3,713 | 3,713 | |||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||||
Amortization of intangible assets | 305 | 415 | 1,005 | 1,292 | |
Acquisition-Related Intangible Assets (in Rental Property and Other Expenses) [Member] | |||||
Assets: | |||||
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | 651 | 651 | |||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||||
Amortization of intangible assets | 140 | 140 | 416 | 416 | |
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 | 20,576 | 20,576 | |||
Amortization of intangible assets and below market lease liabilities [Abstract] | |||||
Amortization of acquisition-related below market lease liabilities | $ (1,656) | $ (1,535) | $ (5,072) | $ (4,553) |
Intangible Assets and Below M_4
Intangible Assets and Below Market Lease Liabilities - Scheduled Future Amortization (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Scheduled future amortization of intangible assets [Abstract] | ||
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | $ 196,048 | $ 195,273 |
Scheduled future amortization of below market lease liabilities [Abstract] | ||
Total scheduled future amortization of acquisition-related below market lease liabilities | (20,576) | $ (25,648) |
Deferred Leasing Costs and Acquisition-Related Intangible Assets (in Depreciation and Amortization) [Member] | ||
Scheduled future amortization of intangible assets [Abstract] | ||
October 1 through December 31, 2019 | 9,538 | |
2020 | 34,968 | |
2021 | 30,100 | |
2022 | 25,689 | |
2023 | 22,180 | |
Thereafter | 58,995 | |
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | $ 181,470 | |
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract] | ||
Finite-lived intangible assets, average useful life (in years) | 7 years 3 months 18 days | |
Lease Incentives (in Rental and Other Revenues) [Member] | ||
Scheduled future amortization of intangible assets [Abstract] | ||
October 1 through December 31, 2019 | $ 428 | |
2020 | 1,584 | |
2021 | 1,338 | |
2022 | 1,104 | |
2023 | 1,025 | |
Thereafter | 4,735 | |
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | $ 10,214 | |
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract] | ||
Finite-lived intangible assets, average useful life (in years) | 9 years 3 months 18 days | |
Acquisition-Related Intangible Assets (in Rental and Other Revenues) [Member] | ||
Scheduled future amortization of intangible assets [Abstract] | ||
October 1 through December 31, 2019 | $ 258 | |
2020 | 954 | |
2021 | 631 | |
2022 | 462 | |
2023 | 308 | |
Thereafter | 1,100 | |
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | $ 3,713 | |
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 6 months | |
Acquisition-Related Intangible Assets (in Rental Property and Other Expenses) [Member] | ||
Scheduled future amortization of intangible assets [Abstract] | ||
October 1 through December 31, 2019 | $ 137 | |
2020 | 514 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
Thereafter | 0 | |
Deferred leasing costs, net/Total scheduled future amortization of intangible assets | $ 651 | |
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract] | ||
Finite-lived intangible assets, average useful life (in years) | 1 year 2 months 12 days | |
Acquisition-Related Below Market Lease Liabilities (in Rental and Other Revenues) [Member] | ||
Scheduled future amortization of below market lease liabilities [Abstract] | ||
October 1 through December 31, 2019 | $ (1,349) | |
2020 | (5,107) | |
2021 | (4,152) | |
2022 | (3,086) | |
2023 | (2,707) | |
Thereafter | (4,175) | |
Total scheduled future amortization of acquisition-related below market lease liabilities | $ (20,576) | |
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) | 5 years 2 months 12 days |
Mortgages and Notes Payable (De
Mortgages and Notes Payable (Details) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2019USD ($)extension | Sep. 30, 2018USD ($) | Oct. 15, 2019USD ($) | Dec. 31, 2018USD ($) | |
Debt Instrument [Line Items] | ||||||
Mortgages and notes payable | $ 2,322,226,000 | $ 2,322,226,000 | $ 2,085,831,000 | |||
Unamortized debt issuance costs | (13,552,000) | (13,552,000) | (9,164,000) | |||
Loss on debt extinguishment | (640,000) | $ 0 | ||||
Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity on revolving credit facility | 600,000,000 | $ 600,000,000 | ||||
Maturity date on revolving credit facility | Jan. 1, 2022 | |||||
Additional borrowing capacity on revolving credit facility | 400,000,000 | $ 400,000,000 | ||||
Number of additional extensions | extension | 2 | |||||
Term of optional extension | 6 months | |||||
Annual facility fee (in hundredths) | 0.20% | |||||
Outstanding letters of credit on revolving credit facility | 100,000 | $ 100,000 | ||||
Amount outstanding on revolving credit facility | 0 | 0 | ||||
Unused borrowing capacity on revolving credit facility | 599,900,000 | 599,900,000 | ||||
3.05% (3.079% effective rate) Notes due 2030 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal debt amount | $ 400,000,000 | $ 400,000,000 | ||||
Scheduled maturity date | Feb. 15, 2030 | |||||
Interest rate (in hundredths) | 3.05% | 3.05% | ||||
Original issue discount | $ 1,000,000 | $ 1,000,000 | ||||
Effective interest rate (in hundredths) | 3.079% | 3.079% | ||||
Debt issuance costs incurred | $ 3,400,000 | $ 3,400,000 | ||||
Variable Rate Term Loan (amended) due 2022 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal debt amount | 200,000,000 | 200,000,000 | ||||
Early repayment of debt | $ 100,000,000 | |||||
Scheduled maturity date | Jan. 28, 2022 | |||||
Loss on debt extinguishment | $ (300,000) | |||||
Variable Rate Term Loan due 2020 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal debt amount | $ 225,000,000 | |||||
Term of debt instrument | 7 years | |||||
Scheduled maturity date | Jun. 8, 2020 | |||||
Loss on debt extinguishment | $ (400,000) | |||||
4.20% (4.234% effective rate) Notes due 2029 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal debt amount | $ 350,000,000 | |||||
Scheduled maturity date | Apr. 15, 2029 | |||||
Interest rate (in hundredths) | 4.20% | |||||
Original issue discount | $ 1,000,000 | |||||
Effective interest rate (in hundredths) | 4.234% | |||||
Debt issuance costs incurred | $ 3,100,000 | |||||
Secured indebtedness [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Mortgages and notes payable | 95,779,000 | 95,779,000 | 97,179,000 | |||
Aggregate undepreciated book value of secured real estate assets | 146,300,000 | 146,300,000 | ||||
Unsecured indebtedness [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Mortgages and notes payable | $ 2,239,999,000 | $ 2,239,999,000 | $ 1,997,816,000 | |||
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Facility interest rate basis | LIBOR plus 100 basis points | |||||
Interest rate, basis spread (in hundredths) | 1.00% | |||||
London Interbank Offered Rate (LIBOR) [Member] | Variable Rate Term Loan (amended) due 2022 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, basis spread (in hundredths) | 1.10% | |||||
Variable interest rate basis | LIBOR plus 110 basis points | |||||
London Interbank Offered Rate (LIBOR) [Member] | Variable Rate Term Loan due 2020 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, basis spread (in hundredths) | 1.10% | |||||
Variable interest rate basis | LIBOR plus 110 basis points | |||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding letters of credit on revolving credit facility | $ 100,000 | |||||
Amount outstanding on revolving credit facility | 0 | |||||
Unused borrowing capacity on revolving credit facility | $ 599,900,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Derivative [Line Items] | ||||||
Unrealized loss on forward starting swaps/Interest rate swaps | $ (6,732,000) | $ 2,187,000 | $ (9,282,000) | $ 10,926,000 | ||
Expected net decrease to interest expense | (300,000) | (300,000) | ||||
Derivatives designated as cash flow hedges in prepaid expenses and other assets: | ||||||
Interest rate swaps | 0 | 0 | $ 1,146,000 | |||
Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities: | ||||||
Interest rate swaps | 284,000 | 284,000 | 3,581,000 | |||
Amount of unrealized gains/(losses) recognized in accumulated other comprehensive income/(loss) on derivatives: | ||||||
Unrealized loss on forward starting swaps/Interest rate swaps | (6,732,000) | 2,187,000 | (9,282,000) | 10,926,000 | ||
Amount of gains reclassified out of accumulated other comprehensive income/(loss) into interest expense: | ||||||
Interest rate swaps | (283,000) | $ (654,000) | (1,158,000) | $ (1,275,000) | ||
4.20% (4.234% effective rate) Notes due 2029 [Member] | ||||||
Derivative [Line Items] | ||||||
Principal debt amount | $ 350,000,000 | |||||
Interest rate (in hundredths) | 4.20% | |||||
Scheduled maturity date | Apr. 15, 2029 | |||||
3.050% (3.079% effective rate) Notes due 2030 [Member] | ||||||
Derivative [Line Items] | ||||||
Principal debt amount | $ 400,000,000 | $ 400,000,000 | ||||
Interest rate (in hundredths) | 3.05% | 3.05% | ||||
Scheduled maturity date | Feb. 15, 2030 | |||||
Forward Starting Swaps [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative, Notional Amount | $ 150,000,000 | $ 150,000,000 | $ 225,000,000 | |||
Underlying treasury rate term (in periods) | 10 years | 10 years | ||||
Underlying treasury rate locked by forward-starting swaps (in hundredths) | 1.87% | 1.87% | 2.86% | |||
Unrealized loss on forward starting swaps/Interest rate swaps | $ (6,600,000) | $ (5,100,000) | ||||
Amount of unrealized gains/(losses) recognized in accumulated other comprehensive income/(loss) on derivatives: | ||||||
Unrealized loss on forward starting swaps/Interest rate swaps | $ (6,600,000) | $ (5,100,000) |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Noncontrolling Interests in the Operating Partnership [Roll Forward] | ||||
Beginning noncontrolling interests in the Operating Partnership | $ 105,960 | |||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | $ 10,493 | $ (9,335) | 19,025 | $ (9,607) |
Conversions of Common Units to Common Stock | (219) | (147) | (572) | (1,231) |
Net income attributable to noncontrolling interests in the Operating Partnership | 737 | 902 | 1,974 | 3,171 |
Distributions to noncontrolling interests in the Operating Partnership | (3,894) | (3,895) | ||
Total noncontrolling interests in the Operating Partnership | 122,493 | 122,493 | ||
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership [Abstract] | ||||
Net income available for common stockholders | 27,901 | 33,160 | 74,578 | 116,295 |
Highwoods Properties, Inc. [Member] | ||||
Noncontrolling Interests in the Operating Partnership [Roll Forward] | ||||
Beginning noncontrolling interests in the Operating Partnership | 112,778 | 142,323 | 105,960 | 144,009 |
Adjustment of noncontrolling interests in the Operating Partnership to fair value | 10,493 | (9,335) | 19,025 | (9,607) |
Conversions of Common Units to Common Stock | (219) | (147) | (572) | (1,231) |
Net income attributable to noncontrolling interests in the Operating Partnership | 737 | 902 | 1,974 | 3,171 |
Distributions to noncontrolling interests in the Operating Partnership | (1,296) | (1,296) | (3,894) | (3,895) |
Total noncontrolling interests in the Operating Partnership | 122,493 | 132,447 | 122,493 | 132,447 |
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership [Abstract] | ||||
Net income available for common stockholders | 27,901 | 33,160 | 74,578 | 116,295 |
Increase in additional paid in capital from conversions of Common Units to Common Stock | 219 | 147 | 572 | 1,231 |
Change from net income available for common stockholders and transfers from noncontrolling interests | $ 28,120 | $ 33,307 | $ 75,150 | $ 117,526 |
Richmond Joint Venture [Member] | ||||
Noncontrolling Interests in Consolidated Affiliates [Abstract] | ||||
Consolidated joint venture, partner's interest (in hundredths) | 50.00% | 50.00% | ||
Tampa Joint Venture [Member] | ||||
Noncontrolling Interests in Consolidated Affiliates [Abstract] | ||||
Consolidated joint venture, partner's interest (in hundredths) | 20.00% | 20.00% |
Disclosure About Fair Value o_3
Disclosure About Fair Value of Financial Instruments - Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Assets: | |||
Mortgages and notes receivable, at fair value | $ 1,542 | $ 5,599 | |
Interest rate swaps (in prepaid expenses and other assets) | 1,146 | ||
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) | 2,170 | 1,849 | |
Impaired real estate assets | 7,580 | 10,252 | |
Total Assets | 11,292 | 18,846 | |
Liabilities: | |||
Mortgages and notes payable, net, at fair value | 2,391,434 | 2,056,248 | |
Interest rate swaps (in accounts payable, accrued expenses and other liabilities) | 284 | 3,581 | |
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 2,170 | 1,849 | |
Total Liabilities | 2,393,888 | 2,061,678 | |
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) | 2,170 | 1,849 | |
Impaired real estate assets | 0 | 0 | |
Total Assets | 2,170 | 1,849 | |
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) | 2,170 | 1,849 | |
Total Liabilities | 2,170 | 1,849 | |
Level 2 [Member] | |||
Assets: | |||
Mortgages and notes receivable, at fair value | 1,542 | 5,599 | |
Interest rate swaps (in prepaid expenses and other assets) | 1,146 | ||
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) | 0 | 0 | |
Impaired real estate assets | 0 | 0 | |
Total Assets | 1,542 | 6,745 | |
Liabilities: | |||
Mortgages and notes payable, net, at fair value | 2,391,434 | 2,056,248 | |
Interest rate swaps (in accounts payable, accrued expenses and other liabilities) | 284 | 3,581 | |
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) | 0 | 0 | |
Total Liabilities | 2,391,718 | 2,059,829 | |
Level 3 [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) | 0 | 0 | |
Impaired real estate assets | 7,580 | $ 700 | 10,252 |
Total Assets | 7,580 | 10,252 | |
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) | 0 | 0 | |
Total Liabilities | 0 | 0 | |
Highwoods Properties, Inc. [Member] | |||
Assets: | |||
Noncontrolling Interests in the Operating Partnership | 122,493 | 105,960 | |
Highwoods Properties, Inc. [Member] | Level 1 [Member] | |||
Assets: | |||
Noncontrolling Interests in the Operating Partnership | 122,493 | 105,960 | |
Highwoods Properties, Inc. [Member] | Level 2 [Member] | |||
Assets: | |||
Noncontrolling Interests in the Operating Partnership | 0 | 0 | |
Highwoods Properties, Inc. [Member] | Level 3 [Member] | |||
Assets: | |||
Noncontrolling Interests in the Operating Partnership | $ 0 | $ 0 |
Share-Based Payments (Details)
Share-Based Payments (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 700 | $ 1,100 | $ 6,180 | $ 6,609 |
Total unrecognized stock-based compensation costs | $ 6,200 | $ 6,200 | ||
Weighted average remaining contractual term for recognition of unrecognized stock-based compensation costs (in years) | 2 years 3 months 18 days | |||
Highwoods Properties, Inc. [Member] | Time-Based Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock shares granted (in shares) | 103,590 | |||
Weighted average grant date fair value of each restricted stock share granted (in dollars per share) | $ 45.98 | |||
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) | 87,344 | |||
Weighted average grant date fair value of each restricted stock share granted (in dollars per share) | $ 39.42 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income/(Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accumulated Other Comprehensive Income/(Loss) Calculation [Roll Forward] | ||||
Beginning balance | $ 6,488 | $ 15,956 | $ 9,913 | $ 7,838 |
Unrealized gains/(losses) on cash flow hedges | (6,732) | 2,187 | (9,282) | 10,926 |
Amortization of cash flow hedges | (283) | (654) | (1,158) | (1,275) |
Total accumulated other comprehensive income/(loss) | $ (527) | $ 17,489 | $ (527) | $ 17,489 |
Earnings Per Share and Per Un_3
Earnings Per Share and Per Unit (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings per Common Share and Per Unit - basic: [Abstract] | ||||
Net income | $ 29,557 | $ 35,009 | $ 79,337 | $ 122,253 |
Net (income) attributable to noncontrolling interests in the Operating Partnership from continuing operations | (737) | (902) | (1,974) | (3,171) |
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations | (297) | (324) | (919) | (918) |
Dividends on Preferred Stock | (622) | (623) | (1,866) | (1,869) |
Net income available for common stockholders | $ 27,901 | $ 33,160 | $ 74,578 | $ 116,295 |
Denominator: | ||||
Denominator for basic earnings per Common Share - weighted average shares (in shares) | 103,727 | 103,471 | 103,674 | 103,408 |
Earnings per Common Share - basic: | ||||
Net income available for common stockholders (in dollars per share) | $ 0.27 | $ 0.32 | $ 0.72 | $ 1.12 |
Earnings per Common Share and Per Unit - diluted: [Abstract] | ||||
Net income | $ 29,557 | $ 35,009 | $ 79,337 | $ 122,253 |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (297) | (324) | (919) | (918) |
Dividends on Preferred Stock | (622) | (623) | (1,866) | (1,869) |
Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership | $ 28,638 | $ 34,062 | $ 76,552 | $ 119,466 |
Denominator: | ||||
Denominator for basic earnings per Common Share - weighted average shares (in shares) | 103,727 | 103,471 | 103,674 | 103,408 |
Stock options using the treasury method (in shares) | 16 | 58 | 18 | 39 |
Noncontrolling interests Common Units (in shares) | 2,728 | 2,804 | 2,733 | 2,809 |
Denominator for diluted earnings per Common Share - adjusted weighted average shares and assumed conversions (in shares) | 106,471 | 106,333 | 106,425 | 106,256 |
Earnings per Common Share - diluted: | ||||
Net income available for common stockholders (in dollars per share) | $ 0.27 | $ 0.32 | $ 0.72 | $ 1.12 |
Highwoods Realty Limited Partnership [Member] | ||||
Earnings per Common Share and Per Unit - basic: [Abstract] | ||||
Net income | $ 29,557 | $ 35,009 | $ 79,337 | $ 122,253 |
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations | (297) | (324) | (919) | (918) |
Distributions on Preferred Units | (622) | (623) | (1,866) | (1,869) |
Net income available for common unitholders | $ 28,638 | $ 34,062 | $ 76,552 | $ 119,466 |
Denominator: | ||||
Denominator for basic earnings per Common Unit - weighted average units (in shares) | 106,046 | 105,866 | 105,998 | 105,808 |
Earnings per Common Unit - basic: | ||||
Net income available for common unitholders (in dollars per share) | $ 0.27 | $ 0.32 | $ 0.72 | $ 1.13 |
Earnings per Common Share and Per Unit - diluted: [Abstract] | ||||
Net income | $ 29,557 | $ 35,009 | $ 79,337 | $ 122,253 |
Net (income) attributable to noncontrolling interests in consolidated affiliates | (297) | (324) | (919) | (918) |
Distributions on Preferred Units | (622) | (623) | (1,866) | (1,869) |
Net income available for common unitholders | $ 28,638 | $ 34,062 | $ 76,552 | $ 119,466 |
Denominator: | ||||
Denominator for basic earnings per Common Unit - weighted average units (in shares) | 106,046 | 105,866 | 105,998 | 105,808 |
Stock options using the treasury method (in shares) | 16 | 58 | 18 | 39 |
Denominator for diluted earnings per Common Unit - adjusted weighted average units and assumed conversions (in shares) | 106,062 | 105,924 | 106,016 | 105,847 |
Earnings per Common Unit - diluted: | ||||
Net income available for common unitholders (in dollars per share) | $ 0.27 | $ 0.32 | $ 0.72 | $ 1.13 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | $ 187,475 | $ 179,417 | $ 543,908 | $ 538,647 |
Total Net Operating Income | 123,340 | 118,264 | 358,664 | 358,399 |
Reconciliation to net income: | ||||
Depreciation and amortization | (60,850) | (57,661) | (189,514) | (171,923) |
Impairments of real estate assets | (5,318) | 0 | (5,849) | 0 |
General and administrative expenses | (11,717) | (9,551) | (33,658) | (30,869) |
Interest expense | (20,527) | (17,437) | (59,622) | (53,705) |
Other income/(loss) | 174 | 818 | (3,271) | 1,735 |
Gains on disposition of property | 3,515 | 3 | 10,218 | 16,975 |
Equity in earnings of unconsolidated affiliates | 940 | 573 | 2,369 | 1,641 |
Net income | 29,557 | 35,009 | 79,337 | 122,253 |
Total Office Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 184,194 | 176,260 | 534,187 | 529,073 |
Total Net Operating Income | 120,948 | 115,928 | 351,590 | 351,321 |
Office Atlanta, GA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 39,120 | 35,375 | 113,115 | 105,635 |
Total Net Operating Income | 24,372 | 21,443 | 72,614 | 65,721 |
Office Greensboro, NC [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 5,524 | 5,349 | 16,611 | 16,753 |
Total Net Operating Income | 3,500 | 3,372 | 10,715 | 10,817 |
Office Memphis, TN [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 9,967 | 10,121 | 29,669 | 30,228 |
Total Net Operating Income | 6,104 | 6,471 | 18,336 | 19,289 |
Office Nashville, TN [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 34,748 | 29,927 | 99,256 | 91,319 |
Total Net Operating Income | 25,191 | 21,896 | 71,717 | 66,306 |
Office Orlando, FL [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 12,854 | 13,352 | 39,781 | 40,103 |
Total Net Operating Income | 7,889 | 8,195 | 24,452 | 24,551 |
Office Pittsburgh, PA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 15,154 | 14,982 | 45,463 | 45,587 |
Total Net Operating Income | 9,150 | 8,969 | 27,179 | 27,189 |
Office Raleigh, NC [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 30,688 | 30,432 | 90,458 | 89,518 |
Total Net Operating Income | 22,066 | 22,018 | 65,363 | 65,384 |
Office Richmond, VA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 12,576 | 11,262 | 37,203 | 33,204 |
Total Net Operating Income | 8,337 | 7,376 | 25,499 | 22,616 |
Office Tampa, FL [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 23,563 | 25,460 | 62,631 | 76,726 |
Total Net Operating Income | 14,339 | 16,188 | 35,715 | 49,448 |
Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Rental and Other Revenues | 3,281 | 3,157 | 9,721 | 9,574 |
Total Net Operating Income | $ 2,392 | $ 2,336 | $ 7,074 | $ 7,078 |
Subsequent Events (Details)
Subsequent Events (Details) - Highwoods Properties, Inc. [Member] - $ / shares | Oct. 17, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Subsequent Event [Line Items] | |||||
Dividends declared per Common Share (in dollars per share0 | $ 0.475 | $ 0.4625 | $ 1.425 | $ 1.3875 | |
Dividend Declared [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Dividends declared per Common Share (in dollars per share0 | $ 0.475 |