HIGHWOODS PROPERTIES, INC., 10-Q filed on 8/4/2015
Quarterly Report
Document and Entity Information Document
6 Months Ended
Jun. 30, 2015
Jul. 27, 2015
Entity Information [Line Items]
 
 
Entity Registrant Name
HIGHWOODS PROPERTIES INC. 
 
Entity Central Index Key
0000921082 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Large Accelerated Filer 
 
Document Type
10-Q 
 
Document Period End Date
Jun. 30, 2015 
 
Document Fiscal Year Focus
2015 
 
Document Fiscal Period Focus
Q2 
 
Amendment Flag
false 
 
Entity Common Stock, Shares Outstanding
 
94,118,906 
Entity Well-known Seasoned Issuer
Yes 
 
Entity Voluntary Filers
No 
 
Entity Current Reporting Status
Yes 
 
Highwoods Realty Limited Partnership [Member]
 
 
Entity Information [Line Items]
 
 
Entity Registrant Name
HIGHWOODS REALTY LIMITED PARTNERSHIP 
 
Entity Central Index Key
0000941713 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Non-accelerated Filer 
 
Document Type
10-Q 
 
Document Period End Date
Jun. 30, 2015 
 
Document Fiscal Year Focus
2015 
 
Document Fiscal Period Focus
Q2 
 
Amendment Flag
false 
 
Entity Well-known Seasoned Issuer
Yes 
 
Entity Voluntary Filers
No 
 
Entity Current Reporting Status
Yes 
 
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Real estate assets, at cost:
 
 
Land
$ 407,180 
$ 384,301 
Buildings and tenant improvements
3,991,536 
3,807,315 
Development in process
104,693 
205,971 
Land held for development
76,955 
79,355 
Total real estate assets
4,580,364 
4,476,942 
Less-accumulated depreciation
(1,066,945)
(1,024,936)
Net real estate assets
3,513,419 
3,452,006 
Real estate and other assets, net, held for sale
10,631 
1,038 
Cash and cash equivalents
4,939 
8,832 
Restricted cash
15,703 
14,595 
Accounts receivable, net of allowance of $1,487 and $1,314, respectively
27,027 
48,557 
Mortgages and notes receivable, net of allowance of $410 and $275, respectively
5,935 
13,116 
Accrued straight-line rents receivable, net of allowance of $1,022 and $600, respectively
151,028 
142,037 
Investments in and advances to unconsolidated affiliates
43,979 
50,685 
Deferred financing and leasing costs, net of accumulated amortization of $119,396 and $112,804, respectively
223,380 
228,768 
Prepaid expenses and other assets, net of accumulated amortization of $15,242 and $14,259, respectively
43,601 
39,489 
Total Assets
4,039,642 
3,999,123 
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Liabilities, Redeemable Operating Partnership Units and Capital:
 
 
Mortgages and notes payable
2,124,028 
2,071,389 
Accounts payable, accrued expenses and other liabilities
214,131 
237,633 
Financing obligation
8,962 
8,962 
Total Liabilities
2,347,121 
2,317,984 
Commitments and contingencies
   
   
Noncontrolling interests in the Operating Partnership
116,260 
130,048 
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), 29,050 and 29,060 shares issued and outstanding, respectively
29,050 
29,060 
Common Stock, $.01 par value, 200,000,000 authorized shares; 94,118,006 and 92,907,310 shares issued and outstanding, respectively
941 
929 
Additional paid-in capital
2,525,227 
2,464,275 
Distributions in excess of net income available for common stockholders
(992,425)
(957,370)
Accumulated other comprehensive loss
(4,514)
(3,912)
Total Stockholders’ Equity
1,558,279 
1,532,982 
Noncontrolling interests in consolidated affiliates
17,982 
18,109 
Total Equity/Capital
1,576,261 
1,551,091 
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Capital
4,039,642 
3,999,123 
Highwoods Realty Limited Partnership [Member]
 
 
Real estate assets, at cost:
 
 
Land
407,180 
384,301 
Buildings and tenant improvements
3,991,536 
3,807,315 
Development in process
104,693 
205,971 
Land held for development
76,955 
79,355 
Total real estate assets
4,580,364 
4,476,942 
Less-accumulated depreciation
(1,066,945)
(1,024,936)
Net real estate assets
3,513,419 
3,452,006 
Real estate and other assets, net, held for sale
10,631 
1,038 
Cash and cash equivalents
4,939 
8,938 
Restricted cash
15,703 
14,595 
Accounts receivable, net of allowance of $1,487 and $1,314, respectively
27,027 
48,557 
Mortgages and notes receivable, net of allowance of $410 and $275, respectively
5,935 
13,116 
Accrued straight-line rents receivable, net of allowance of $1,022 and $600, respectively
151,028 
142,037 
Investments in and advances to unconsolidated affiliates
43,979 
50,685 
Deferred financing and leasing costs, net of accumulated amortization of $119,396 and $112,804, respectively
223,380 
228,768 
Prepaid expenses and other assets, net of accumulated amortization of $15,242 and $14,259, respectively
43,601 
39,489 
Total Assets
4,039,642 
3,999,229 
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Liabilities, Redeemable Operating Partnership Units and Capital:
 
 
Mortgages and notes payable
2,124,028 
2,071,389 
Accounts payable, accrued expenses and other liabilities
214,131 
237,547 
Financing obligation
8,962 
8,962 
Total Liabilities
2,347,121 
2,317,898 
Commitments and contingencies
   
   
Redeemable Operating Partnership Units:
 
 
Common Units, 2,910,135 and 2,936,955 outstanding, respectively
116,260 
130,048 
Series A Preferred Units (liquidation preference $1,000 per unit), 29,050 and 29,060 units issued and outstanding, respectively
29,050 
29,060 
Total Redeemable Operating Partnership Units
145,310 
159,108 
Equity/Capital:
 
 
General partner Common Units, 966,193 and 954,355 outstanding, respectively
15,335 
15,078 
Limited partner Common Units, 92,743,004 and 91,544,146 outstanding, respectively
1,518,408 
1,492,948 
Accumulated other comprehensive loss
(4,514)
(3,912)
Noncontrolling interests in consolidated affiliates
17,982 
18,109 
Total Equity/Capital
1,547,211 
1,522,223 
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Capital
$ 4,039,642 
$ 3,999,229 
Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
6 Months Ended 12 Months Ended
Jun. 30, 2015
Dec. 31, 2014
Assets:
 
 
Accounts receivable allowance
$ 1,487 
$ 1,314 
Mortgages and notes receivable allowance
410 
275 
Accrued straight-line rents receivable allowance
1,022 
600 
Deferred financing and leasing costs, accumulated amortization
119,396 
112,804 
Prepaid expenses and other assets, accumulated amortization
15,242 
14,259 
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)
29,050 
29,060 
Series A Preferred Stock, shares outstanding (in shares)
29,050 
29,060 
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)
94,118,006 
92,907,310 
Common Stock, shares outstanding (in shares)
94,118,006 
92,907,310 
Highwoods Realty Limited Partnership [Member]
 
 
Assets:
 
 
Accounts receivable allowance
1,487 
1,314 
Mortgages and notes receivable allowance
410 
275 
Accrued straight-line rents receivable allowance
1,022 
600 
Deferred financing and leasing costs, accumulated amortization
119,396 
112,804 
Prepaid expenses and other assets, accumulated amortization
$ 15,242 
$ 14,259 
Redeemable Operating Partnership Units: [Abstract]
 
 
Redeemable Common Units outstanding (in shares)
2,910,135 
2,936,955 
Series A Preferred Units, liquidation preference (in dollars per share)
$ 1,000 
$ 1,000 
Series A Preferred Units, issued (in shares)
29,050 
29,060 
Series A Preferred Units, outstanding (in shares)
29,050 
29,060 
Common Units: [Abstract]
 
 
General partners' capital account, units outstanding (in shares)
966,193 
954,355 
Limited partners' capital account, units outstanding (in shares)
92,743,004 
91,544,146 
Consolidated Statements of Income (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Rental and other revenues
$ 161,136 
$ 152,722 
$ 318,446 
$ 301,175 
Operating expenses:
 
 
 
 
Rental property and other expenses
57,278 
55,275 
114,791 
111,665 
Depreciation and amortization
51,240 
50,443 
101,548 
98,608 
Impairments of real estate assets
0 
588 
0 
588 
General and administrative
8,892 
8,733 
20,329 
19,447 
Total operating expenses
117,410 
115,039 
236,668 
230,308 
Interest expense:
 
 
 
 
Contractual
20,857 
20,640 
41,299 
41,390 
Amortization of deferred financing costs
828 
799 
1,628 
1,451 
Financing obligation
317 
(226)
498 
(266)
Total interest expense
22,002 
21,213 
43,425 
42,575 
Other income:
 
 
 
 
Interest and other income
1,199 
1,410 
2,437 
2,809 
Gains/(losses) on debt extinguishment
(220)
18 
(220)
18 
Total other income
979 
1,428 
2,217 
2,827 
Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates
22,703 
17,898 
40,570 
31,119 
Gains on disposition of property
2,412 
5,947 
3,569 
5,947 
Equity in earnings of unconsolidated affiliates
1,776 
667 
3,587 
638 
Income from continuing operations
26,891 
24,512 
47,726 
37,704 
Discontinued operations:
 
 
 
 
Net gains on disposition of discontinued operations
0 
0 
0 
384 
Total discontinued operations
0 
0 
0 
384 
Net income
26,891 
24,512 
47,726 
38,088 
Net (income) attributable to noncontrolling interests in the Operating Partnership
(782)
(742)
(1,378)
(1,140)
Net (income) attributable to noncontrolling interests in consolidated affiliates
(328)
(438)
(624)
(861)
Dividends on Preferred Stock
(626)
(627)
(1,253)
(1,254)
Net income available for common stockholders
25,155 
22,705 
44,471 
34,833 
Earnings per Common Share – basic:
 
 
 
 
Income from continuing operations available for common stockholders (in dollars per share)
$ 0.27 
$ 0.25 
$ 0.47 
$ 0.38 
Income from discontinued operations available for common stockholders (in dollars per share)
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.01 
Net income available for common stockholders (in dollars per share)
$ 0.27 
$ 0.25 
$ 0.47 
$ 0.39 
Weighted average Common Shares outstanding - basic (in shares)
94,055 
90,254 
93,641 
90,111 
Earnings per Common Share - diluted:
 
 
 
 
Income from continuing operations available for common stockholders (in dollars per share)
$ 0.27 
$ 0.25 
$ 0.47 
$ 0.38 
Income from discontinued operations available for common stockholders (in dollars per share)
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.01 
Net income available for common stockholders (in dollars per share)
$ 0.27 
$ 0.25 
$ 0.47 
$ 0.39 
Weighted average Common Shares outstanding - diluted (in shares)
97,049 1 2
93,312 1 2
96,666 1 2
93,172 1 2
Dividends declared per Common Share (in dollars per share)
$ 0.425 
$ 0.425 
$ 0.850 
$ 0.850 
Net income available for common stockholders:
 
 
 
 
Income from continuing operations available for common stockholders
25,155 
22,705 
44,471 
34,461 
Income from discontinued operations available for common stockholders
0 
0 
0 
372 
Net income available for common stockholders
25,155 
22,705 
44,471 
34,833 
Highwoods Realty Limited Partnership [Member]
 
 
 
 
Rental and other revenues
161,136 
152,722 
318,446 
301,175 
Operating expenses:
 
 
 
 
Rental property and other expenses
57,278 
55,258 
114,791 
111,632 
Depreciation and amortization
51,240 
50,443 
101,548 
98,608 
Impairments of real estate assets
0 
588 
0 
588 
General and administrative
8,892 
8,750 
20,329 
19,480 
Total operating expenses
117,410 
115,039 
236,668 
230,308 
Interest expense:
 
 
 
 
Contractual
20,857 
20,640 
41,299 
41,390 
Amortization of deferred financing costs
828 
799 
1,628 
1,451 
Financing obligation
317 
(226)
498 
(266)
Total interest expense
22,002 
21,213 
43,425 
42,575 
Other income:
 
 
 
 
Interest and other income
1,199 
1,410 
2,437 
2,809 
Gains/(losses) on debt extinguishment
(220)
18 
(220)
18 
Total other income
979 
1,428 
2,217 
2,827 
Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates
22,703 
17,898 
40,570 
31,119 
Gains on disposition of property
2,412 
5,947 
3,569 
5,947 
Equity in earnings of unconsolidated affiliates
1,776 
667 
3,587 
638 
Income from continuing operations
26,891 
24,512 
47,726 
37,704 
Discontinued operations:
 
 
 
 
Net gains on disposition of discontinued operations
0 
0 
0 
384 
Total discontinued operations
0 
0 
0 
384 
Net income
26,891 
24,512 
47,726 
38,088 
Net (income) attributable to noncontrolling interests in consolidated affiliates
(328)
(438)
(624)
(861)
Distributions on Preferred Units
(626)
(627)
(1,253)
(1,254)
Net income available for common unitholders
25,937 
23,447 
45,849 
35,973 
Earnings per Common Unit - basic:
 
 
 
 
Income from continuing operations available for common unitholders (in dollars per share)
$ 0.27 
$ 0.25 
$ 0.48 
$ 0.38 
Income from discontinued operations available for common unitholders (in dollars per share)
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.01 
Net income available for common unitholders (in dollars per share)
$ 0.27 
$ 0.25 
$ 0.48 
$ 0.39 
Weighted average Common Units outstanding - basic (in shares)
96,556 
92,782 
96,153 
92,640 
Earnings per Common Unit - diluted:
 
 
 
 
Income from continuing operations available for common unitholders (in dollars per share)
$ 0.27 
$ 0.25 
$ 0.48 
$ 0.38 
Income from discontinued operations available for common unitholders (in dollars per share)
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.01 
Net income available for common unitholders (in dollars per share)
$ 0.27 
$ 0.25 
$ 0.48 
$ 0.39 
Weighted average Common Units outstanding - diluted (in shares)
96,640 2 3
92,903 2 3
96,257 2 3
92,763 2 3
Distributions declared per Common Unit (in dollars per unit)
$ 0.425 
$ 0.425 
$ 0.850 
$ 0.850 
Net income available for common unitholders:
 
 
 
 
Income from continuing operations available for common unitholders
25,937 
23,447 
45,849 
35,589 
Income from discontinued operations available for common unitholders
0 
0 
0 
384 
Net income available for common unitholders
$ 25,937 
$ 23,447 
$ 45,849 
$ 35,973 
Consolidated Statements of Comprehensive Income (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Comprehensive income:
 
 
 
 
Net income
$ 26,891 
$ 24,512 
$ 47,726 
$ 38,088 
Other comprehensive income/(loss):
 
 
 
 
Unrealized gains on tax increment financing bond
1 
105 
194 
270 
Unrealized gains/(losses) on cash flow hedges
269 
(2,846)
(2,645)
(4,250)
Amortization of cash flow hedges
925 
944 
1,849 
1,872 
Total other comprehensive income/(loss)
1,195 
(1,797)
(602)
(2,108)
Total comprehensive income
28,086 
22,715 
47,124 
35,980 
Less-comprehensive (income) attributable to noncontrolling interests
(1,110)
(1,180)
(2,002)
(2,001)
Comprehensive income attributable to common stockholders/Comprehensive income attributable to common unitholders
26,976 
21,535 
45,122 
33,979 
Highwoods Realty Limited Partnership [Member]
 
 
 
 
Comprehensive income:
 
 
 
 
Net income
26,891 
24,512 
47,726 
38,088 
Other comprehensive income/(loss):
 
 
 
 
Unrealized gains on tax increment financing bond
1 
105 
194 
270 
Unrealized gains/(losses) on cash flow hedges
269 
(2,846)
(2,645)
(4,250)
Amortization of cash flow hedges
925 
944 
1,849 
1,872 
Total other comprehensive income/(loss)
1,195 
(1,797)
(602)
(2,108)
Total comprehensive income
28,086 
22,715 
47,124 
35,980 
Less-comprehensive (income) attributable to noncontrolling interests
(328)
(438)
(624)
(861)
Comprehensive income attributable to common stockholders/Comprehensive income attributable to common unitholders
$ 27,758 
$ 22,277 
$ 46,500 
$ 35,119 
Consolidated Statements of Equity (USD $)
In Thousands, except Share data, unless otherwise specified
Total
Highwoods Realty Limited Partnership [Member]
Common Stock [Member]
Series A Cumulative Redeemable Preferred Shares [Member]
General Partner Common Units [Member]
Highwoods Realty Limited Partnership [Member]
Limited Partner 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 at Dec. 31, 2013
$ 1,507,467 
$ 1,478,562 
$ 899 
$ 29,077 
$ 14,596 
$ 1,445,181 
$ 2,370,368 
$ (2,611)
$ (2,611)
$ 21,396 
$ 21,396 
$ (911,662)
Balance (in shares) at Dec. 31, 2013
 
 
89,920,915 
 
 
 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
Issuances of Common Units, net of issuance costs and tax withholdings
 
8,712 
 
 
87 
8,625 
 
 
0 
 
0 
 
Redemptions of Common Units
 
(93)
 
 
(1)
(92)
 
 
0 
 
0 
 
Distributions paid on Common Units
 
(78,754)
 
 
(788)
(77,966)
 
 
0 
 
0 
 
Distributions paid on Preferred Units
 
(1,254)
 
 
(13)
(1,241)
 
 
0 
 
0 
 
Issuances of Common Stock - Shares
 
 
281,992 
 
 
 
 
 
 
 
 
 
Issuances of Common Stock, net of issuance costs and tax withholdings
8,712 
 
3 
0 
 
 
8,709 
0 
 
0 
 
0 
Conversions of Common Units to Common Stock - Shares
 
 
4,417 
 
 
 
 
 
 
 
 
 
Conversions of Common Units to Common Stock
162 
 
0 
0 
 
 
162 
0 
 
0 
 
0 
Dividends on Common Stock
(76,605)
 
0 
0 
 
 
0 
0 
 
0 
 
(76,605)
Dividends on Preferred Stock
(1,254)
 
0 
0 
 
 
0 
0 
 
0 
 
(1,254)
Adjustment of noncontrolling interests in the Operating Partnership to fair value
(18,337)
 
0 
0 
 
 
(18,337)
0 
 
0 
 
0 
Distributions to noncontrolling interests in consolidated affiliates
(940)
(940)
0 
0 
0 
0 
0 
0 
0 
(940)
(940)
0 
Issuances of restricted stock - shares
 
 
154,383 
 
 
 
 
 
 
 
 
 
Issuances of restricted stock
0 
 
0 
0 
 
 
0 
0 
 
0 
 
0 
Share-based compensation expense, net of forfeitures
5,381 
5,381 
2 
0 
54 
5,327 
5,379 
0 
0 
0 
0 
0 
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner
 
(17,175)
 
 
(171)
(17,004)
 
 
0 
 
0 
 
Net (income) attributable to noncontrolling interests in the Operating Partnership
(1,140)
 
0 
0 
 
 
0 
0 
 
0 
 
(1,140)
Net (income) attributable to noncontrolling interests in consolidated affiliates
0 
0 
0 
0 
(9)
(852)
0 
0 
0 
861 
861 
(861)
Comprehensive income:
 
 
 
 
 
 
 
 
 
 
 
 
Net income
38,088 
38,088 
0 
0 
381 
37,707 
0 
0 
0 
0 
0 
38,088 
Other comprehensive loss
(2,108)
(2,108)
0 
0 
0 
0 
0 
(2,108)
(2,108)
0 
0 
0 
Total comprehensive income
35,980 
35,980 
 
 
 
 
 
 
 
 
 
 
Balance at Jun. 30, 2014
1,459,426 
1,430,419 
904 
29,077 
14,136 
1,399,685 
2,366,281 
(4,719)
(4,719)
21,317 
21,317 
(953,434)
Balance (in shares) at Jun. 30, 2014
 
 
90,361,707 
 
 
 
 
 
 
 
 
 
Balance at Mar. 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
Net (income) attributable to noncontrolling interests in the Operating Partnership
(742)
 
 
 
 
 
 
 
 
 
 
 
Comprehensive income:
 
 
 
 
 
 
 
 
 
 
 
 
Net income
24,512 
24,512 
 
 
 
 
 
 
 
 
 
 
Other comprehensive loss
(1,797)
(1,797)
 
 
 
 
 
 
 
 
 
 
Total comprehensive income
22,715 
22,715 
 
 
 
 
 
 
 
 
 
 
Balance at Jun. 30, 2014
1,459,426 
1,430,419 
 
 
 
 
 
 
 
 
 
 
Balance at Dec. 31, 2014
1,551,091 
1,522,223 
929 
29,060 
15,078 
1,492,948 
2,464,275 
(3,912)
(3,912)
18,109 
18,109 
(957,370)
Balance (in shares) at Dec. 31, 2014
92,907,310 
 
92,907,310 
 
 
 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
Issuances of Common Units, net of issuance costs and tax withholdings
 
43,216 
 
 
432 
42,784 
 
 
0 
 
0 
 
Distributions paid on Common Units
 
(81,663)
 
 
(817)
(80,846)
 
 
0 
 
0 
 
Distributions paid on Preferred Units
 
(1,253)
 
 
(13)
(1,240)
 
 
0 
 
0 
 
Issuances of Common Stock - Shares
 
 
1,055,491 
 
 
 
 
 
 
 
 
 
Issuances of Common Stock, net of issuance costs and tax withholdings
43,216 
 
11 
0 
 
 
43,205 
0 
 
0 
 
0 
Conversions of Common Units to Common Stock - Shares
 
 
26,820 
 
 
 
 
 
 
 
 
 
Conversions of Common Units to Common Stock
1,206 
 
0 
0 
 
 
1,206 
0 
 
0 
 
0 
Dividends on Common Stock
(79,526)
 
0 
0 
 
 
0 
0 
 
0 
 
(79,526)
Dividends on Preferred Stock
(1,253)
 
0 
0 
 
 
0 
0 
 
0 
 
(1,253)
Adjustment of noncontrolling interests in the Operating Partnership to fair value
11,475 
 
0 
0 
 
 
11,475 
0 
 
0 
 
0 
Distributions to noncontrolling interests in consolidated affiliates
(751)
(751)
0 
0 
0 
0 
0 
0 
0 
(751)
(751)
0 
Issuances of restricted stock - shares
 
 
128,951 
 
 
 
 
 
 
 
 
 
Issuances of restricted stock
0 
 
0 
0 
 
 
0 
0 
 
0 
 
0 
Redemptions/repurchases of Preferred Stock
(10)
 
0 
(10)
 
 
0 
0 
 
0 
 
0 
Share-based compensation expense, net of forfeitures - shares
 
 
(566)
 
 
 
 
 
 
 
 
 
Share-based compensation expense, net of forfeitures
5,067 
5,067 
1 
0 
51 
5,016 
5,066 
0 
0 
0 
0 
0 
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner
 
13,248 
 
 
133 
13,115 
 
 
0 
 
0 
 
Net (income) attributable to noncontrolling interests in the Operating Partnership
(1,378)
 
0 
0 
 
 
0 
0 
 
0 
 
(1,378)
Net (income) attributable to noncontrolling interests in consolidated affiliates
0 
0 
0 
0 
(6)
(618)
0 
0 
0 
624 
624 
(624)
Comprehensive income:
 
 
 
 
 
 
 
 
 
 
 
 
Net income
47,726 
47,726 
0 
0 
477 
47,249 
0 
0 
0 
0 
0 
47,726 
Other comprehensive loss
(602)
(602)
0 
0 
0 
0 
0 
(602)
(602)
0 
0 
0 
Total comprehensive income
47,124 
47,124 
 
 
 
 
 
 
 
 
 
 
Balance at Jun. 30, 2015
1,576,261 
1,547,211 
941 
29,050 
15,335 
1,518,408 
2,525,227 
(4,514)
(4,514)
17,982 
17,982 
(992,425)
Balance (in shares) at Jun. 30, 2015
94,118,006 
 
94,118,006 
 
 
 
 
 
 
 
 
 
Balance at Mar. 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
Net (income) attributable to noncontrolling interests in the Operating Partnership
(782)
 
 
 
 
 
 
 
 
 
 
 
Comprehensive income:
 
 
 
 
 
 
 
 
 
 
 
 
Net income
26,891 
26,891 
 
 
 
 
 
 
 
 
 
 
Other comprehensive loss
1,195 
1,195 
 
 
 
 
 
 
 
 
 
 
Total comprehensive income
28,086 
28,086 
 
 
 
 
 
 
 
 
 
 
Balance at Jun. 30, 2015
$ 1,576,261 
$ 1,547,211 
 
 
 
 
 
 
 
 
 
 
Balance (in shares) at Jun. 30, 2015
94,118,006 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Operating activities:
 
 
Net income
$ 47,726 
$ 38,088 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Depreciation and amortization
101,548 
98,608 
Amortization of lease incentives and acquisition-related intangible assets and liabilities
9 
234 
Share-based compensation expense
5,067 
5,381 
Allowance for losses on accounts and accrued straight-line rents receivable
1,174 
1,278 
Accrued interest on mortgages and notes receivable
(268)
(232)
Amortization of deferred financing costs
1,628 
1,451 
Amortization of cash flow hedges
1,849 
1,872 
Amortization of mortgages and notes payable fair value adjustments
84 
(902)
Impairments of real estate assets
0 
588 
(Gains)/losses on debt extinguishment
220 
(18)
Net gains on disposition of property
(3,569)
(6,331)
Equity in earnings of unconsolidated affiliates
(3,587)
(638)
Changes in financing obligation
162 
(628)
Distributions of earnings from unconsolidated affiliates
3,438 
1,216 
Changes in operating assets and liabilities:
 
 
Accounts receivable
1,723 
1,491 
Prepaid expenses and other assets
(4,365)
(4,962)
Accrued straight-line rents receivable
(11,417)
(10,365)
Accounts payable, accrued expenses and other liabilities
(19,127)
(11,597)
Net cash provided by operating activities
122,295 
114,534 
Investing activities:
 
 
Investments in acquired real estate and related intangible assets, net of cash acquired
(4,277)
0 
Investments in development in process
(44,601)
(69,928)
Investments in tenant improvements and deferred leasing costs
(61,282)
(54,794)
Investments in building improvements
(23,513)
(28,877)
Net proceeds from disposition of real estate assets
6,070 
8,975 
Distributions of capital from unconsolidated affiliates
10,077 
468 
Investments in mortgages and notes receivable
(1,772)
(234)
Repayments of mortgages and notes receivable
9,221 
16,817 
Investments in and advances to unconsolidated affiliates
0 
(6,225)
Changes in restricted cash and other investing activities
(6,741)
686 
Net cash used in investing activities
(116,818)
(133,112)
Financing activities:
 
 
Dividends on Common Stock
(79,526)
(76,605)
Redemptions/repurchases of Preferred Stock
(10)
0 
Redemptions of Common Units
0 
(93)
Dividends on Preferred Stock
(1,253)
(1,254)
Distributions to noncontrolling interests in the Operating Partnership
(2,485)
(2,497)
Distributions to noncontrolling interests in consolidated affiliates
(751)
(940)
Proceeds from the issuance of Common Stock
47,678 
11,404 
Costs paid for the issuance of Common Stock
(735)
(42)
Repurchase of shares related to tax withholdings
(3,727)
(2,650)
Borrowings on revolving credit facility
183,900 
302,100 
Repayments of revolving credit facility
(233,900)
(360,800)
Borrowings on mortgages and notes payable
125,000 
296,949 
Repayments of mortgages and notes payable
(41,887)
(134,648)
Payments on financing obligation
(162)
(1,364)
Additions to deferred financing costs and other financing activities
(1,512)
(2,467)
Net cash provided by/(used in) financing activities
(9,370)
27,093 
Net increase/(decrease) in cash and cash equivalents
(3,893)
8,515 
Cash and cash equivalents at beginning of the period
8,832 
10,184 
Cash and cash equivalents at end of the period
4,939 
18,699 
Supplemental disclosure of cash flow information:
 
 
Cash paid for interest, net of amounts capitalized
40,540 
41,468 
Supplemental disclosure of non-cash investing and financing activities:
 
 
Unrealized losses on cash flow hedges
(2,645)
(4,250)
Conversions of Common Units to Common Stock
1,206 
162 
Changes in accrued capital expenditures
(3,250)
10,726 
Write-off of fully depreciated real estate assets
31,011 
16,994 
Write-off of fully amortized deferred financing and leasing costs
17,812 
13,273 
Adjustment of noncontrolling interests in the Operating Partnership to fair value
(11,475)
18,337 
Unrealized gains on tax increment financing bond
194 
270 
Assumption of mortgages and notes payable related to acquisition activities
19,277 
0 
Receivable related to redemption of investment in unconsolidated affiliate
0 
4,660 
Reduction in the carrying amount of real estate purchased from unconsolidated affiliate by our share of the unconsolidated affiliate's gain
3,124 
0 
Contingent consideration in connection with the acquisition of land
900 
0 
Highwoods Realty Limited Partnership [Member]
 
 
Operating activities:
 
 
Net income
47,726 
38,088 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Depreciation and amortization
101,548 
98,608 
Amortization of lease incentives and acquisition-related intangible assets and liabilities
9 
234 
Share-based compensation expense
5,067 
5,381 
Allowance for losses on accounts and accrued straight-line rents receivable
1,174 
1,278 
Accrued interest on mortgages and notes receivable
(268)
(232)
Amortization of deferred financing costs
1,628 
1,451 
Amortization of cash flow hedges
1,849 
1,872 
Amortization of mortgages and notes payable fair value adjustments
84 
(902)
Impairments of real estate assets
0 
588 
(Gains)/losses on debt extinguishment
220 
(18)
Net gains on disposition of property
(3,569)
(6,331)
Equity in earnings of unconsolidated affiliates
(3,587)
(638)
Changes in financing obligation
162 
(628)
Distributions of earnings from unconsolidated affiliates
3,438 
1,216 
Changes in operating assets and liabilities:
 
 
Accounts receivable
1,723 
1,491 
Prepaid expenses and other assets
(4,365)
(4,892)
Accrued straight-line rents receivable
(11,417)
(10,365)
Accounts payable, accrued expenses and other liabilities
(19,041)
(11,568)
Net cash provided by operating activities
122,381 
114,633 
Investing activities:
 
 
Investments in acquired real estate and related intangible assets, net of cash acquired
(4,277)
0 
Investments in development in process
(44,601)
(69,928)
Investments in tenant improvements and deferred leasing costs
(61,282)
(54,794)
Investments in building improvements
(23,513)
(28,877)
Net proceeds from disposition of real estate assets
6,070 
8,975 
Distributions of capital from unconsolidated affiliates
10,077 
468 
Investments in mortgages and notes receivable
(1,772)
(234)
Repayments of mortgages and notes receivable
9,221 
16,817 
Investments in and advances to unconsolidated affiliates
0 
(6,225)
Changes in restricted cash and other investing activities
(6,741)
686 
Net cash used in investing activities
(116,818)
(133,112)
Financing activities:
 
 
Distributions on Common Units
(81,663)
(78,754)
Redemptions/repurchases of Preferred Units
(10)
0 
Redemptions of Common Units
0 
(93)
Distributions on Preferred Units
(1,253)
(1,254)
Distributions to noncontrolling interests in consolidated affiliates
(751)
(940)
Proceeds from the issuance of Common Units
47,678 
11,404 
Costs paid for the issuance of Common Units
(735)
(42)
Repurchase of units related to tax withholdings
(3,727)
(2,650)
Borrowings on revolving credit facility
183,900 
302,100 
Repayments of revolving credit facility
(233,900)
(360,800)
Borrowings on mortgages and notes payable
125,000 
296,949 
Repayments of mortgages and notes payable
(41,887)
(134,648)
Payments on financing obligation
(162)
(1,364)
Additions to deferred financing costs and other financing activities
(2,052)
(2,917)
Net cash provided by/(used in) financing activities
(9,562)
26,991 
Net increase/(decrease) in cash and cash equivalents
(3,999)
8,512 
Cash and cash equivalents at beginning of the period
8,938 
10,281 
Cash and cash equivalents at end of the period
4,939 
18,793 
Supplemental disclosure of cash flow information:
 
 
Cash paid for interest, net of amounts capitalized
40,540 
41,468 
Supplemental disclosure of non-cash investing and financing activities:
 
 
Unrealized losses on cash flow hedges
(2,645)
(4,250)
Changes in accrued capital expenditures
(3,250)
10,726 
Write-off of fully depreciated real estate assets
31,011 
16,994 
Write-off of fully amortized deferred financing and leasing costs
17,812 
13,273 
Adjustment of Redeemable Common Units to fair value
(13,788)
16,725 
Unrealized gains on tax increment financing bond
194 
270 
Assumption of mortgages and notes payable related to acquisition activities
19,277 
0 
Receivable related to redemption of investment in unconsolidated affiliate
0 
4,660 
Reduction in the carrying amount of real estate purchased from unconsolidated affiliate by our share of the unconsolidated affiliate's gain
3,124 
0 
Contingent consideration in connection with the acquisition of land
$ 900 
$ 0 
Description of Business and Significant Accounting Policies
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 June 30, 2015, we owned or had an interest in 31.4 million rentable square feet of in-service properties, 0.9 million rentable square feet of properties under development and approximately 500 acres of development land.
 
The Company is the sole general partner of the Operating Partnership. At June 30, 2015, the Company owned all of the Preferred Units and 93.7 million, or 97.0%, of the Common Units in the Operating Partnership. Limited partners own the remaining 2.9 million Common Units. During the six months ended June 30, 2015, the Company redeemed 26,820 Common Units for a like number of shares of Common Stock.

Common Stock Offerings
 
During the three and six months ended June 30, 2015, the Company issued 58,533 and 972,659 shares, respectively, of Common Stock under its equity sales agreements at an average gross sales price of $41.72 and $45.12 per share, respectively, and received net proceeds, after sales commissions, of $2.4 million and $43.2 million, respectively. As a result of this activity and the redemptions discussed above, the percentage of Common Units owned by the Company increased from 96.9% at December 31, 2014 to 97.0% at June 30, 2015.

Basis of Presentation
 
Our Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company's Consolidated Financial Statements include the Operating Partnership, wholly owned subsidiaries and those entities in which the Company has the controlling interest. The Operating Partnership's Consolidated Financial Statements include wholly owned subsidiaries and those entities in which the Operating Partnership has the controlling interest. All intercompany transactions and accounts have been eliminated. At December 31, 2014, we had involvement with, but were not the primary beneficiary in, an entity that we concluded to be a variable interest entity (see Note 3).
 
During the second quarter of 2015, as a result of our partner’s irrevocable exercise of a buy-sell provision in one of our joint venture agreements, our partner’s right to put its 80.0% equity interest back to us became no longer exercisable. As a result, we recorded the original contribution transaction as a partial sale and recognized $2.2 million of gain. Our investment in this joint venture now qualifies for the equity method of accounting, which resulted in the retrospective revision of the Consolidated Balance Sheets and Consolidated Statements of Equity and Capital for all prior periods presented. The effects of the retrospective application of the equity method of accounting to the Consolidated Statements of Income, Comprehensive Income and Cash Flows were not material. The effects of the retrospective application of the equity method of accounting to the Company's December 31, 2014 Balance Sheet were as follows:
 
 
December 31,
2014
 
Previously Reported
 
As Revised
Net real estate assets
$
3,481,406

 
$
3,452,006

Investments in and advances to unconsolidated affiliates
$
27,071

 
$
50,685

Total Assets
$
4,004,909

 
$
3,999,123

Financing obligations
$
23,519

 
$
8,962

Distributions in excess of net income available for common stockholders
$
(966,141
)
 
$
(957,370
)
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity
$
4,004,909

 
$
3,999,123



1.    Description of Business and Significant Accounting Policies – Continued
 
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 2014 Annual Report on Form 10-K.

Use of Estimates
 
The preparation of consolidated financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Actual results could differ from those estimates.

Recently Issued Accounting Standards

The Financial Accounting Standards Board ("FASB") recently issued an accounting standards update that requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that we identify the contract with the customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when we satisfy the performance obligations. We will also be required to disclose information regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The accounting standards update is required to be adopted in 2017. Retrospective application is required either to all periods presented or with the cumulative effect of initial adoption recognized in the period of adoption. We are in the process of evaluating this accounting standards update.

The FASB recently issued an accounting standards update that amends consolidation requirements. The amendments significantly change the consolidation analysis required under GAAP and will require companies to reevaluate all previous consolidation conclusions. The accounting standards update is required to be adopted in 2016. We are in the process of evaluating this accounting standards update.

The FASB recently issued an accounting standards update that requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The accounting standards update is required to be adopted in 2016. Retrospective application is required. We are in the process of evaluating this accounting standards update.
Real Estate Assets
Real Estate Assets
Real Estate Assets

Acquisitions

During the second quarter of 2015, we acquired:

•
land in Atlanta, GA for a purchase price and related transaction costs of $5.2 million (including contingent consideration of $0.9 million); and

•
our Highwoods DLF 98/29, LLC joint venture partner’s 77.2% interest in a building in Orlando, FL encompassing 168,000 rentable square feet in exchange for the assumption of secured debt recorded at fair value of $19.3 million (see Note 6). We expensed $0.1 million of acquisition costs (included in general and administrative expenses) related to this acquisition.

The assets acquired and liabilities assumed were recorded at fair value as determined by management based on information available at the acquisition date and on current assumptions as to future operations.

Dispositions
 
During the second quarter of 2015, we sold land for a sale price of $0.5 million and recorded a gain on disposition of property of $0.2 million.

During the first quarter of 2015, we sold:

•
two buildings for an aggregate sale price of $3.5 million and recorded aggregate gains on disposition of property of $0.4 million; and

•
land for a sale price of $2.5 million and recorded a gain on disposition of property of $0.8 million.
Mortgages and Notes Receivable
Mortgages and Notes Receivable
Mortgages and Notes Receivable

Mortgages and notes receivable were $5.9 million and $13.1 million at June 30, 2015 and December 31, 2014, respectively, and consisted primarily of secured financing provided to a third party. During the second quarter of 2015, $9.9 million of secured acquisition financing provided to a third party in 2012 was repaid, including accrued interest. Previously, we concluded this arrangement to be an interest in a variable interest entity. However, since we did not have the power to direct matters that most significantly impact the activities of the entity, we did not qualify as the primary beneficiary. Accordingly, the entity was not consolidated. Our risk of loss with respect to this arrangement was limited to the carrying value of the mortgage receivable.

We evaluate the ability to collect our mortgages and notes receivable by monitoring the leasing statistics and/or market fundamentals of these assets. As of June 30, 2015, our mortgages and notes receivable were not in default and there were no other indicators of impairment.
Investments In and Advances To Unconsolidated Affiliates
Investments In and Advances To Unconsolidated Affiliates
Investments in and Advances to Unconsolidated Affiliates

We have equity interests of up to 50.0% in various joint ventures with unrelated third parties that are accounted for using the equity method of accounting because we have the ability to exercise significant influence over their operating and financial policies.
 
The following table sets forth the summarized income statements of our unconsolidated affiliates:
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2015
 
2014
 
2015
 
2014
Income Statements:
 
 
 
 
 
 
 
Rental and other revenues
$
12,423

 
$
12,845

 
$
24,654

 
$
25,278

Expenses:
 
 
 
 
 
 
 
Rental property and other expenses
6,031

 
6,236

 
11,698

 
12,439

Depreciation and amortization
3,110

 
3,328

 
6,225

 
6,817

Interest expense
2,032

 
2,301

 
4,181

 
4,512

Total expenses
11,173

 
11,865

 
22,104

 
23,768

Income before disposition of property
1,250

 
980

 
2,550

 
1,510

Gains on disposition of property
16,054

 
—

 
18,181

 
1,949

Net income
$
17,304

 
$
980

 
$
20,731

 
$
3,459


 
We have a 20.0% interest in SF-HIW Harborview Plaza, LP (“Harborview”). We are the manager and leasing agent for Harborview’s property in Tampa, FL and receive customary management and leasing fees. During 2012, we also provided a three-year $20.8 million interest-only secured loan to Harborview that is scheduled to mature in September 2015. The loan bears interest at LIBOR plus 500 basis points, subject to a LIBOR floor of 0.5%. Previously, we accounted for the original contribution transaction as a financing obligation since our partner had the right to put its 80.0% equity interest back to us any time during the one-year period prior to September 11, 2015. During the second quarter of 2015, as a result of our partner’s irrevocable exercise of a buy-sell provision in our joint venture agreement, our partner’s right to put its 80.0% equity interest back to us became no longer exercisable, which resulted in recording the original contribution transaction as a partial sale. Harborview is now accounted for using the equity method of accounting. See Note 1.

See Note 2 for a description of our acquisition of a building in Orlando, FL from Highwoods DLF 98/29, LLC during the second quarter of 2015. The joint venture recorded a gain on disposition of property of $13.7 million. Our share of $3.1 million was recorded as a reduction to real estate assets.

During the second quarter of 2015, Highwoods KC Glenridge Office, LLC and Highwoods KC Glenridge Land, LLC collectively sold two buildings and land to an unrelated third party for an aggregate sale price of $24.5 million (before closing credits to buyer of $0.3 million for unfunded tenant improvements) and recorded gains on disposition of property of $2.4 million. We recorded $0.9 million as our share of these gains through equity in earnings of unconsolidated affiliates.

During the first quarter of 2015, Highwoods DLF 97/26 DLF 99/32, LP sold a building to an unrelated third party for a sale price of $7.0 million and recorded a gain on disposition of property of $2.1 million. We recorded $1.1 million as our share of this gain through equity in earnings of unconsolidated affiliates.
Intangible Assets and Below Market Lease Liabilities
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:
 
 
June 30,
2015
 
December 31,
2014
Assets:
 
 
 
Deferred financing costs
$
19,508

 
$
19,478

Less accumulated amortization
(8,093
)
 
(7,953
)
 
11,415

 
11,525

Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets)
323,268

 
322,094

Less accumulated amortization
(111,303
)
 
(104,851
)
 
211,965

 
217,243

Deferred financing and leasing costs, net
$
223,380

 
$
228,768

 
 
 
 
Liabilities (in accounts payable, accrued expenses and other liabilities):
 
 
 
Acquisition-related below market lease liabilities
$
55,166

 
$
55,783

Less accumulated amortization
(16,300
)
 
(13,548
)
 
$
38,866

 
$
42,235


The following table sets forth amortization of intangible assets and below market lease liabilities:
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2015
 
2014
 
2015
 
2014
Amortization of deferred financing costs
$
828

 
$
799

 
$
1,628

 
$
1,451

Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization)
$
10,169

 
$
10,050

 
$
20,462

 
$
19,978

Amortization of lease incentives (in rental and other revenues)
$
422

 
$
399

 
$
784

 
$
750

Amortization of acquisition-related intangible assets (in rental and other revenues)
$
1,189

 
$
1,114

 
$
2,355

 
$
2,230

Amortization of acquisition-related intangible assets (in rental property and other expenses)
$
139

 
$
139

 
$
276

 
$
276

Amortization of acquisition-related below market lease liabilities (in rental and other revenues)
$
(1,674
)
 
$
(1,500
)
 
$
(3,406
)
 
$
(3,022
)


5.    Intangible Assets and Below Market Lease Liabilities - Continued
 
The following table sets forth scheduled future amortization of intangible assets and below market lease liabilities:
 
 
 
Amortization of Deferred Financing Costs
 
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)
July 1 through December 31, 2015
 
$
1,643

 
$
20,519

 
$
706

 
$
2,213

 
$
273

 
$
(3,098
)
2016
 
3,035

 
35,511

 
1,238

 
3,294

 
553

 
(5,555
)
2017
 
2,720

 
30,630

 
1,121

 
2,294

 
553

 
(5,284
)
2018
 
1,538

 
26,145

 
1,015

 
1,474

 
553

 
(5,123
)
2019
 
1,130

 
21,716

 
822

 
1,054

 
553

 
(4,810
)
Thereafter
 
1,349

 
53,743

 
2,582

 
2,870

 
533

 
(14,996
)
 
 
$
11,415

 
$
188,264

 
$
7,484

 
$
13,199

 
$
3,018

 
$
(38,866
)
Weighted average remaining amortization periods as of June 30, 2015 (in years)
 
4.3

 
7.0

 
7.9

 
6.1

 
5.5

 
7.8



The following table sets forth the intangible assets acquired and below market lease liabilities assumed as a result of 2015 acquisition activity:

 
 
Acquisition-Related Intangible Assets (amortized in Rental and Other Revenues)
 
Acquisition-Related Intangible Assets (amortized in Depreciation and Amortization)
 
Acquisition-Related Below Market Lease Liabilities (amortized in Rental and Other Revenues)
Amount recorded from acquisition activity
 
$
498

 
$
1,671

 
$
(37
)
Weighted average remaining amortization periods as of June 30, 2015 (in years)
 
2.1

 
2.3

 
4.8

Mortgages and Notes Payable
Mortgages and Notes Payable
Mortgages and Notes Payable
 
The following table sets forth our mortgages and notes payable:
 
 
June 30,
2015
 
December 31,
2014
Secured indebtedness
$
290,101

 
$
312,868

Unsecured indebtedness
1,833,927

 
1,758,521

Total mortgages and notes payable
$
2,124,028

 
$
2,071,389


 
At June 30, 2015, our secured mortgage loans were collateralized by real estate assets with an aggregate undepreciated book value of $545.5 million.
 

6.    Mortgages and Notes Payable - Continued

Our $475.0 million unsecured revolving credit facility is scheduled to mature in January 2018 and includes an accordion feature that allows for an additional $75.0 million of borrowing capacity subject to additional lender commitments. Assuming no defaults have occurred, we have an option to extend the maturity for two additional six-month periods. The interest rate at our current credit ratings is LIBOR plus 110 basis points and the annual facility fee is 20 basis points. There was $159.0 million and $158.0 million outstanding under our revolving credit facility at June 30, 2015 and July 27, 2015, respectively. At both June 30, 2015 and July 27, 2015, we had $0.4 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 June 30, 2015 and July 27, 2015 was $315.6 million and $316.6 million, respectively.

During the second quarter of 2015, we amended our $225.0 million, seven-year unsecured bank term loan, which was scheduled to mature in January 2019. We increased the borrowed amount to $350.0 million. The amended term loan is now scheduled to mature in June 2020 and the interest rate, based on our current credit ratings, was reduced from LIBOR plus 175 basis points to LIBOR plus 110 basis points. The interest rate is based on the higher of the publicly announced ratings from Moody’s Investors Service or Standard & Poor’s Ratings Services. The financial and other covenants under the amended term loan are unchanged. We incurred $1.3 million of deferred financing fees in connection with this amendment, which will be amortized along with existing unamortized deferred loan fees over the remaining term of the new loan.

During the second quarter of 2015, we prepaid without penalty the remaining $39.4 million balance on a secured mortgage loan with an effective interest rate of 6.43% that was originally scheduled to mature in November 2015. We recorded $0.2 million of loss on debt extinguishment related to this prepayment.

During the second quarter of 2015, we acquired our joint venture partner’s 77.2% interest in a building in Orlando, FL. Simultaneously with this acquisition, the joint venture's previously existing mortgage note was restructured into a new $18.0 million first mortgage note and a $10.2 million subordinated note, both of which are scheduled to mature in July 2017. The first mortgage note is interest only with an effective interest rate of 5.36%, payable monthly. The subordinated note has an effective interest rate of 8.6%. Additionally, we deposited $3.0 million into escrow to fund tenant improvements, leasing commissions and building improvements. The first mortgage note and subordinated note can be prepaid at any time commencing October 2016 upon a sale or refinancing of the property. In such event, the subordinated note and any and all accrued interest thereon would be deemed fully satisfied upon payment of a "waterfall payment," if any. Such "waterfall payment" would be a cash payment equal to 50.0% of the amount, if any, by which the net sale proceeds or appraised value in the event of a refinancing exceeds (1) the outstanding principal of the first mortgage note, (2) the funds deposited by us into escrow to fund tenant improvements, leasing commissions and building improvements and (3) a 10.0% return on such funds deposited by us into escrow. As of June 30, 2015, the fair value of the first mortgage note was $18.3 million and the fair value of the subordinated note equaled the projected waterfall payment of $1.0 million.

We are currently in compliance with financial covenants and other requirements with respect to our consolidated debt.
Derivative Financial Instruments
Derivative Financial Instruments
Derivative Financial Instruments
 
Our interest rate swaps have been designated as and are being accounted for as cash flow hedges with changes in fair value recorded in other comprehensive income/(loss) each reporting period. No gain or loss was recognized related to hedge ineffectiveness or to amounts excluded from effectiveness testing on our cash flow hedges during the six months ended June 30, 2015 and 2014. We have no collateral requirements related to our interest rate swaps.
 
Amounts reported in accumulated other comprehensive loss ("AOCL") related to derivatives will be reclassified to interest expense as interest payments are made on our variable-rate debt. During the period from July 1, 2015 through June 30, 2016, we estimate that $2.9 million will be reclassified to interest expense.
 

7.
Derivative Financial Instruments - Continued

The following table sets forth the fair value of our derivatives:
 
 
June 30,
2015
 
December 31,
2014
Derivatives:
 
 
 
Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities:
 
 
 
Interest rate swaps
$
3,366

 
$
2,412



The following table sets forth the effect of our cash flow hedges on AOCL and interest expense:
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2015
 
2014
 
2015
 
2014
Derivatives Designated as Cash Flow Hedges:
 
 
 
 
 
 
 
Amount of unrealized gains/(losses) recognized in AOCL on derivatives (effective portion):
 
 
 
 
 
 
 
Interest rate swaps
$
269

 
$
(2,846
)
 
$
(2,645
)
 
$
(4,250
)
Amount of losses reclassified out of AOCL into contractual interest expense (effective portion):
 
 
 
 
 
 
 
Interest rate swaps
$
925

 
$
944

 
$
1,849

 
$
1,872

Noncontrolling Interests
Noncontrolling Interests
Noncontrolling Interests

Noncontrolling Interests in Consolidated Affiliates
 
At June 30, 2015, our noncontrolling interests in consolidated affiliates relate to our joint venture partner's 50.0% interest in office properties in Richmond, VA. Our joint venture partner is an unrelated third party.

Noncontrolling Interests in the Operating Partnership

The following table sets forth the Company's noncontrolling interests in the Operating Partnership:
 
 
Six Months Ended
June 30,
 
2015
 
2014
Beginning noncontrolling interests in the Operating Partnership
$
130,048

 
$
106,480

Adjustment of noncontrolling interests in the Operating Partnership to fair value
(11,475
)
 
18,337

Conversions of Common Units to Common Stock
(1,206
)
 
(162
)
Redemptions of Common Units
—

 
(93
)
Net income attributable to noncontrolling interests in the Operating Partnership
1,378

 
1,140

Distributions to noncontrolling interests in the Operating Partnership
(2,485
)
 
(2,497
)
Total noncontrolling interests in the Operating Partnership
$
116,260

 
$
123,205



8.
Noncontrolling Interests - Continued

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
June 30,
 
Six Months Ended
June 30,
 
2015
 
2014
 
2015
 
2014
Net income available for common stockholders
$
25,155

 
$
22,705

 
$
44,471

 
$
34,833

Increase in additional paid in capital from conversions of Common Units
to Common Stock
—

 
—

 
1,206

 
162

Change from net income available for common stockholders and transfers from noncontrolling interests
$
25,155

 
$
22,705

 
$
45,677

 
$
34,995

Disclosure About Fair Value of Financial Instruments
Disclosure About Fair Value of Financial Instruments
Disclosure About Fair Value of Financial Instruments

The following summarizes the three levels of inputs that we use to measure fair value.

Level 1.  Quoted prices in active markets for identical assets or liabilities.

Our Level 1 asset is our investment in marketable securities that we use to pay benefits under our non-qualified deferred compensation plan. Our Level 1 liability is our non-qualified deferred compensation obligation. The Company's Level 1 noncontrolling interests in the Operating Partnership relate to the ownership of Common Units by various individuals and entities other than the Company.

Level 2. Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities.

Our Level 2 asset is the fair value of certain of our mortgages and notes receivable. Our Level 2 liabilities include the fair value of our mortgages and notes payable and interest rate swaps.

The fair value of mortgages and notes receivable and mortgages and notes payable is estimated by the income approach utilizing contractual cash flows and market-based interest rates to approximate the price that would be paid in an orderly transaction between market participants. The fair value of interest rate swaps is determined using the market standard methodology of netting the discounted future fixed cash receipts and the discounted expected variable cash payments. The variable cash payments of interest rate swaps are based on the expectation of future LIBOR interest rates (forward curves) derived from observed market LIBOR interest rate curves. In addition, credit valuation adjustments are incorporated 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 (1) certain of our mortgages and notes receivable, which were estimated by the income approach utilizing internal cash flow projections and market interest rates to estimate the price that would be paid in an orderly transaction between market participants, and (2) our tax increment financing bond, which is not routinely traded but whose fair value is determined by the income approach utilizing contractual cash flows and market-based interest rates to estimate the projected redemption value based on quoted bid/ask prices for similar unrated municipal bonds.
 
Our Level 3 liability is the fair value of our financing obligation, which was estimated by the income approach to approximate the price that would be paid in an orderly transaction between market participants, utilizing: (1) contractual cash flows; (2) market-based interest rates; and (3) a number of other assumptions including demand for space, competition for customers, changes in market rental rates, costs of operation and expected ownership periods.


9.
Disclosure About Fair Value of Financial Instruments - Continued

The following table sets forth our assets and liabilities and the Company's noncontrolling interests in the Operating Partnership that are measured 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 June 30, 2015:
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
Mortgages and notes receivable, at fair value (1)
 
$
5,943

 
$
—

 
$
2,167

 
$
3,776

Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
 
3,512

 
3,512

 
—

 
—

Tax increment financing bond (in prepaid expenses and other assets)
 
12,641

 
—

 
—

 
12,641

Total Assets
 
$
22,096

 
$
3,512

 
$
2,167

 
$
16,417

Noncontrolling Interests in the Operating Partnership
 
$
116,260

 
$
116,260

 
$
—

 
$
—

Liabilities:
 
 
 
 
 
 
 
 
Mortgages and notes payable, at fair value (1)
 
$
2,178,032

 
$
—

 
$
2,178,032

 
$
—

Interest rate swaps (in accounts payable, accrued expenses and other liabilities)
 
3,366

 
—

 
3,366

 
—

Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
 
3,512

 
3,512

 
—

 
—

Financing obligation, at fair value (1)
 
8,700

 
—

 
—

 
8,700

Total Liabilities
 
$
2,193,610

 
$
3,512

 
$
2,181,398

 
$
8,700

Fair Value at December 31, 2014:
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
Mortgages and notes receivable, at fair value (1)
 
$
13,142

 
$
—

 
$
2,247

 
$
10,895

Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
 
3,635

 
3,635

 
—

 
—

Tax increment financing bond (in prepaid expenses and other assets)
 
12,447

 
—

 
—

 
12,447

Total Assets
 
$
29,224

 
$
3,635

 
$
2,247

 
$
23,342

Noncontrolling Interests in the Operating Partnership
 
$
130,048

 
$
130,048

 
$
—

 
$
—

Liabilities:
 
 
 
 
 
 
 
 
Mortgages and notes payable, at fair value (1)
 
$
2,141,334

 
$
—

 
$
2,141,334

 
$
—

Interest rate swaps (in accounts payable, accrued expenses and other liabilities)
 
2,412

 
—

 
2,412

 
—

Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
 
3,635

 
3,635

 
—

 
—

Financing obligation, at fair value (as revised) (1)
 
8,623

 
—

 
—

 
8,623

Total Liabilities (as revised)
 
$
2,156,004

 
$
3,635

 
$
2,143,746

 
$
8,623


__________
(1)    Amounts recorded at historical cost on our Consolidated Balance Sheets at June 30, 2015 and December 31, 2014.
9.
Disclosure About Fair Value of Financial Instruments - Continued

The following table sets forth the changes in our Level 3 asset, which is recorded at fair value on our Consolidated Balance Sheets:

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2015
 
2014
 
2015
 
2014
Asset:
 
 
 
 
 
 
 
Tax Increment Financing Bond:
 
 
 
 
 
 
 
Beginning balance
$
12,640

 
$
13,568

 
$
12,447

 
$
13,403

Unrealized gains (in AOCL)
1

 
105

 
194

 
270

Ending balance
$
12,641

 
$
13,673

 
$
12,641

 
$
13,673



During 2007, we acquired a tax increment financing bond associated with a parking garage developed by us. This bond amortizes to maturity in 2020. The estimated fair value at June 30, 2015 was $0.2 million below the outstanding principal due on the bond. If the discount rate used to fair value this bond was 100 basis points higher or lower, the fair value of the bond would have been $0.3 million lower or $0.4 million higher, respectively, as of June 30, 2015. We intend to hold this bond and have concluded that we will not be required to sell this bond before recovery of the bond principal. Payment of the principal and interest for the bond is guaranteed by us. We have recorded no credit losses related to the bond during the three and six months ended June 30, 2015 and 2014. There is no legal right of offset with the liability, which we report as a financing obligation, related to this tax increment financing bond.
 
The following table sets forth quantitative information about the unobservable input of our Level 3 asset, which is recorded at fair value on our Consolidated Balance Sheets:
 
 
Valuation
Technique
 
Unobservable
Input
 
Rate as of
 
 
 
June 30,
2015
 
December 31,
2014
Asset:
 
 
 
 
 
 
 
Tax increment financing bond
Income approach
 
Discount rate
 
8.1%
 
8.4%
Share-Based Payments
Share-Based Payments
Share-Based Payments
 
During the six months ended June 30, 2015, the Company granted 197,408 stock options with an exercise price equal to the closing market price of a share of Common Stock on the date of grant. The fair value of each option is estimated on the date of grant using the Black-Scholes option pricing model, which resulted in a weighted average grant date fair value per share of $6.19. During the six months ended June 30, 2015, the Company also granted 71,994 shares of time-based restricted stock and 56,957 shares of total return-based restricted stock with weighted average grant date fair values per share of $45.91 and $43.77, respectively. We recorded share-based compensation expense of $1.2 million and $1.1 million during the three months ended June 30, 2015 and 2014, respectively, and $5.1 million and $5.4 million during the six months ended June 30, 2015 and 2014, respectively. At June 30, 2015, there was $6.7 million of total unrecognized share-based compensation costs, which will be recognized over a weighted average remaining contractual term of 2.6 years.
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss
 
The following table sets forth the components of AOCL:
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2015
 
2014
 
2015
 
2014
Tax increment financing bond:
 
 
 
 
 
 
 
Beginning balance
$
(252
)
 
$
(864
)
 
$
(445
)
 
$
(1,029
)
Unrealized gains on tax increment financing bond
1

 
105

 
194

 
270

Ending balance
(251
)
 
(759
)
 
(251
)
 
(759
)
Cash flow hedges:
 
 
 
 
 
 
 
Beginning balance
(5,457
)
 
(2,058
)
 
(3,467
)
 
(1,582
)
Unrealized gains/(losses) on cash flow hedges
269

 
(2,846
)
 
(2,645
)
 
(4,250
)
Amortization of cash flow hedges (1)
925

 
944

 
1,849

 
1,872

Ending balance
(4,263
)
 
(3,960
)
 
(4,263
)
 
(3,960
)
Total accumulated other comprehensive loss
$
(4,514
)

$
(4,719
)
 
$
(4,514
)
 
$
(4,719
)
__________
(1)    Amounts reclassified out of AOCL into contractual interest expense.
Real Estate and Other Assets Held For Sale
Real Estate and Other Assets Held For Sale
Real Estate and Other Assets Held For Sale

The following table sets forth the major classes of assets of our real estate and other assets, net, held for sale:

 
June 30,
2015
 
December 31,
2014
Assets:
 
 
 
Land
$
1,450

 
$
—

Buildings and tenant improvements
11,576

 
—

Land held for development
2,184

 
995

Less-accumulated depreciation
(5,062
)
 
—

Net real estate assets
10,148

 
995

Accrued straight-line rents receivable, net
335

 
—

Deferred leasing costs, net
128

 
—

Prepaid expenses and other assets
20

 
43

Real estate and other assets, net, held for sale
$
10,631

 
$
1,038

Earnings Per Share and Per Unit
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
June 30,
 
Six Months Ended
June 30,
 
2015
 
2014
 
2015
 
2014
Earnings per Common Share - basic:
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
26,891

 
$
24,512

 
$
47,726

 
$
37,704

Net (income) attributable to noncontrolling interests in the Operating Partnership from continuing operations
(782
)
 
(742
)
 
(1,378
)
 
(1,128
)
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(328
)
 
(438
)
 
(624
)
 
(861
)
Dividends on Preferred Stock
(626
)
 
(627
)
 
(1,253
)
 
(1,254
)
Income from continuing operations available for common stockholders
25,155

 
22,705

 
44,471

 
34,461

Income from discontinued operations
—

 
—

 
—

 
384

Net (income) attributable to noncontrolling interests in the Operating Partnership from discontinued operations
—

 
—

 
—

 
(12
)
Income from discontinued operations available for common stockholders
—

 
—

 
—

 
372

Net income available for common stockholders
$
25,155

 
$
22,705

 
$
44,471

 
$
34,833

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per Common Share – weighted average shares
94,055

 
90,254

 
93,641

 
90,111

Earnings per Common Share - basic:
 
 
 
 
 
 
 
Income from continuing operations available for common stockholders
$
0.27

 
$
0.25

 
$
0.47

 
$
0.38

Income from discontinued operations available for common stockholders
—

 
—

 
—

 
0.01

Net income available for common stockholders
$
0.27

 
$
0.25

 
$
0.47

 
$
0.39

Earnings per Common Share - diluted:
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
26,891

 
$
24,512

 
$
47,726

 
$
37,704

Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(328
)
 
(438
)
 
(624
)
 
(861
)
Dividends on Preferred Stock
(626
)
 
(627
)
 
(1,253
)
 
(1,254
)
Income from continuing operations available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
25,937

 
23,447

 
45,849

 
35,589

Income from discontinued operations available for common stockholders
—

 
—

 
—

 
384

Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
$
25,937

 
$
23,447

 
$
45,849

 
$
35,973

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per Common Share – weighted average shares
94,055

 
90,254

 
93,641

 
90,111

Add:
 
 
 
 
 
 
 
Stock options using the treasury method
84

 
121

 
104

 
123

Noncontrolling interests Common Units
2,910

 
2,937

 
2,921

 
2,938

Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions (1) (2)
97,049

 
93,312

 
96,666

 
93,172

Earnings per Common Share - diluted:
 
 
 
 
 
 
 
Income from continuing operations available for common stockholders
$
0.27

 
$
0.25

 
$
0.47

 
$
0.38

Income from discontinued operations available for common stockholders
—

 
—

 
—

 
0.01

Net income available for common stockholders
$
0.27

 
$
0.25

 
$
0.47

 
$
0.39

__________

 
13.
Earnings Per Share and Per Unit - Continued
(1)
There were 0.2 million options outstanding during each of the three and six months ended June 30, 2015 and the six months ended June 30, 2014 that were not included in the computation of diluted earnings per share because the impact of including such options would be anti-dilutive. There were no such options outstanding during the three months ended June 30, 2014.
(2)
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
June 30,
 
Six Months Ended
June 30,
 
2015
 
2014
 
2015
 
2014
Earnings per Common Unit - basic:
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
26,891

 
$
24,512

 
$
47,726

 
$
37,704

Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(328
)
 
(438
)
 
(624
)
 
(861
)
Distributions on Preferred Units
(626
)
 
(627
)
 
(1,253
)
 
(1,254
)
Income from continuing operations available for common unitholders
25,937

 
23,447

 
45,849

 
35,589

Income from discontinued operations available for common unitholders
—

 
—

 
—

 
384

Net income available for common unitholders
$
25,937

 
$
23,447

 
$
45,849

 
$
35,973

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per Common Unit – weighted average units
96,556

 
92,782

 
96,153

 
92,640

Earnings per Common Unit - basic:
 
 
 
 
 
 
 
Income from continuing operations available for common unitholders
$
0.27

 
$
0.25

 
$
0.48

 
$
0.38

Income from discontinued operations available for common unitholders
—

 
—

 
—

 
0.01

Net income available for common unitholders
$
0.27

 
$
0.25

 
$
0.48

 
$
0.39

Earnings per Common Unit - diluted:
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
26,891

 
$
24,512

 
$
47,726

 
$
37,704

Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(328
)
 
(438
)
 
(624
)
 
(861
)
Distributions on Preferred Units
(626
)
 
(627
)
 
(1,253
)
 
(1,254
)
Income from continuing operations available for common unitholders
25,937

 
23,447

 
45,849

 
35,589

Income from discontinued operations available for common unitholders
—

 
—

 
—

 
384

Net income available for common unitholders
$
25,937

 
$
23,447

 
$
45,849

 
$
35,973

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per Common Unit – weighted average units
96,556

 
92,782

 
96,153

 
92,640

Add:
 
 
 
 
 
 
 
Stock options using the treasury method
84

 
121

 
104

 
123

Denominator for diluted earnings per Common Unit – adjusted weighted average units and assumed conversions (1) (2)
96,640

 
92,903

 
96,257

 
92,763

Earnings per Common Unit - diluted:
 
 
 
 
 
 
 
Income from continuing operations available for common unitholders
$
0.27

 
$
0.25

 
$
0.48

 
$
0.38

Income from discontinued operations available for common unitholders
—

 
—

 
—

 
0.01

Net income available for common unitholders
$
0.27

 
$
0.25

 
$
0.48

 
$
0.39

__________
(1)
There were 0.2 million options outstanding during each of the three and six months ended June 30, 2015 and the six months ended June 30, 2014 that were not included in the computation of diluted earnings per unit because the impact of including such options would be anti-dilutive. There were no such options outstanding during the three months ended June 30, 2014.
(2)
Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable.
Segment Information
Segment Information
Segment Information

The following tables summarize the rental and other revenues and net operating income, the primary industry property-level performance metric used by our chief operating decision maker which is defined as rental and other revenues less rental property and other expenses, for each of our reportable segments. Our segment information for the three and six months ended June 30, 2014 has been retrospectively revised from previously reported amounts to reflect a change in our reportable segments.

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2015
 
2014
 
2015
 
2014
Rental and Other Revenues:
 
 
 
 
 
 
 
Office:
 
 
 
 
 
 
 
Atlanta, GA
$
25,611

 
$
23,627

 
$
50,393

 
$
46,604

Greensboro, NC
5,398

 
6,580

 
10,838

 
13,030

Greenville, SC
—

 
767

 
—

 
1,608

Kansas City, MO
4,142

 
4,086

 
8,358

 
8,183

Memphis, TN
12,050

 
10,055

 
23,784

 
19,890

Nashville, TN
21,770

 
20,182

 
43,586

 
39,787

Orlando, FL
10,948

 
9,148

 
21,782

 
18,068

Pittsburgh, PA
14,719

 
14,014

 
29,268

 
27,771

Raleigh, NC
25,541

 
22,538

 
48,982

 
44,029

Richmond, VA
10,203

 
12,020

 
20,787

 
23,763

Tampa, FL
18,602

 
17,129

 
37,029

 
33,756

Total Office Segment
148,984

 
140,146

 
294,807

 
276,489

Retail:
 
 
 
 
 
 
 
Kansas City, MO
9,140

 
9,366

 
17,703

 
18,584

Total Retail Segment
9,140

 
9,366

 
17,703

 
18,584

Other
3,012

 
3,210

 
5,936

 
6,102

Total Rental and Other Revenues
$
161,136

 
$
152,722

 
$
318,446

 
$
301,175


14.
Segment Information - Continued

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2015
 
2014
 
2015
 
2014
Net Operating Income:
 
 
 
 
 
 
 
Office:
 
 
 
 
 
 
 
Atlanta, GA
$
15,663

 
$
14,321

 
$
31,030

 
$
28,018

Greensboro, NC
3,516

 
4,249

 
6,942

 
8,247

Greenville, SC
—

 
390

 
—

 
865

Kansas City, MO
2,713

 
2,698

 
5,462

 
5,303

Memphis, TN
7,641

 
5,789

 
15,030

 
11,396

Nashville, TN
15,480

 
13,999

 
30,712

 
27,152

Orlando, FL
6,348

 
5,346

 
12,831

 
10,722

Pittsburgh, PA
8,670

 
7,988

 
16,632

 
15,181

Raleigh, NC
18,358

 
16,326

 
34,629

 
31,358

Richmond, VA
6,932

 
8,265

 
13,812

 
15,941

Tampa, FL
11,020

 
10,031

 
22,240

 
20,066

Total Office Segment
96,341

 
89,402

 
189,320

 
174,249

Retail:
 
 
 
 
 
 
 
Kansas City, MO
5,351

 
5,764

 
10,063

 
11,029

Total Retail Segment
5,351

 
5,764

 
10,063

 
11,029

Other
2,166

 
2,281

 
4,272

 
4,232

Total Net Operating Income
103,858

 
97,447

 
203,655

 
189,510

Reconciliation to income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates:
 
 
 
 
 
 
 
Depreciation and amortization
(51,240
)
 
(50,443
)
 
(101,548
)
 
(98,608
)
Impairments of real estate assets
—

 
(588
)
 
—

 
(588
)
General and administrative expenses
(8,892
)
 
(8,733
)
 
(20,329
)
 
(19,447
)
Interest expense
(22,002
)
 
(21,213
)
 
(43,425
)
 
(42,575
)
Other income
979

 
1,428

 
2,217

 
2,827

Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates
$
22,703

 
$
17,898

 
$
40,570

 
$
31,119

Subsequent Events
Subsequent Events
Subsequent Events

On July 23, 2015, we sold a building for a sale price of $15.3 million and expect to record a gain on disposition of property of $6.5 million.
Description of Business and Significant Accounting Policies (Policies)
Basis of Accounting, Policy [Policy Text Block] 
Our Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company's Consolidated Financial Statements include the Operating Partnership, wholly owned subsidiaries and those entities in which the Company has the controlling interest. The Operating Partnership's Consolidated Financial Statements include wholly owned subsidiaries and those entities in which the Operating Partnership has the controlling interest. All intercompany transactions and accounts have been eliminated.
Use of Estimates, Policy [Policy Text Block] 
Use of Estimates
 
The preparation of consolidated financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Actual results could differ from those estimates.
New Accounting Pronouncements, Policy [Policy Text Block] 
Recently Issued Accounting Standards

The Financial Accounting Standards Board ("FASB") recently issued an accounting standards update that requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that we identify the contract with the customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when we satisfy the performance obligations. We will also be required to disclose information regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The accounting standards update is required to be adopted in 2017. Retrospective application is required either to all periods presented or with the cumulative effect of initial adoption recognized in the period of adoption. We are in the process of evaluating this accounting standards update.

The FASB recently issued an accounting standards update that amends consolidation requirements. The amendments significantly change the consolidation analysis required under GAAP and will require companies to reevaluate all previous consolidation conclusions. The accounting standards update is required to be adopted in 2016. We are in the process of evaluating this accounting standards update.

The FASB recently issued an accounting standards update that requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The accounting standards update is required to be adopted in 2016. Retrospective application is required. We are in the process of evaluating this accounting standards update.
Description of Business and Significant Accounting Policies Description of Business and Significant Accounting Policies (Tables)
Schedule Of Retrospective Application Of The Equity Method Of Accounting [Table Text Block]
The effects of the retrospective application of the equity method of accounting to the Company's December 31, 2014 Balance Sheet were as follows:
 
 
December 31,
2014
 
Previously Reported
 
As Revised
Net real estate assets
$
3,481,406

 
$
3,452,006

Investments in and advances to unconsolidated affiliates
$
27,071

 
$
50,685

Total Assets
$
4,004,909

 
$
3,999,123

Financing obligations
$
23,519

 
$
8,962

Distributions in excess of net income available for common stockholders
$
(966,141
)
 
$
(957,370
)
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity
$
4,004,909

 
$
3,999,123

Investments In and Advances To Unconsolidated Affiliates (Tables)
Schedule of Equity Method Investments Summarized Income Statement Information [Table Text Block]
The following table sets forth the summarized income statements of our unconsolidated affiliates:
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2015
 
2014
 
2015
 
2014
Income Statements:
 
 
 
 
 
 
 
Rental and other revenues
$
12,423

 
$
12,845

 
$
24,654

 
$
25,278

Expenses:
 
 
 
 
 
 
 
Rental property and other expenses
6,031

 
6,236

 
11,698

 
12,439

Depreciation and amortization
3,110

 
3,328

 
6,225

 
6,817

Interest expense
2,032

 
2,301

 
4,181

 
4,512

Total expenses
11,173

 
11,865

 
22,104

 
23,768

Income before disposition of property
1,250

 
980

 
2,550

 
1,510

Gains on disposition of property
16,054

 
—

 
18,181

 
1,949

Net income
$
17,304

 
$
980

 
$
20,731

 
$
3,459

Intangible Assets and Below Market Lease Liabilities (Tables)
Total intangible assets and below market lease liabilities [Table Text Block] 
The following table sets forth total intangible assets and acquisition-related below market lease liabilities, net of accumulated amortization:
 
 
June 30,
2015
 
December 31,
2014
Assets:
 
 
 
Deferred financing costs
$
19,508

 
$
19,478

Less accumulated amortization
(8,093
)
 
(7,953
)
 
11,415

 
11,525

Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets)
323,268

 
322,094

Less accumulated amortization
(111,303
)
 
(104,851
)
 
211,965

 
217,243

Deferred financing and leasing costs, net
$
223,380

 
$
228,768

 
 
 
 
Liabilities (in accounts payable, accrued expenses and other liabilities):
 
 
 
Acquisition-related below market lease liabilities
$
55,166

 
$
55,783

Less accumulated amortization
(16,300
)
 
(13,548
)
 
$
38,866

 
$
42,235

Amortization of intangible assets and below market lease liabilities [Table Text Block] 
The following table sets forth amortization of intangible assets and below market lease liabilities:
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2015
 
2014
 
2015
 
2014
Amortization of deferred financing costs
$
828

 
$
799

 
$
1,628

 
$
1,451

Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization)
$
10,169

 
$
10,050

 
$
20,462

 
$
19,978

Amortization of lease incentives (in rental and other revenues)
$
422

 
$
399

 
$
784

 
$
750

Amortization of acquisition-related intangible assets (in rental and other revenues)
$
1,189

 
$
1,114

 
$
2,355

 
$
2,230

Amortization of acquisition-related intangible assets (in rental property and other expenses)
$
139

 
$
139

 
$
276

 
$
276

Amortization of acquisition-related below market lease liabilities (in rental and other revenues)
$
(1,674
)
 
$
(1,500
)
 
$
(3,406
)
 
$
(3,022
)

Scheduled future amortization of intangible assets and below market lease liabilities [Table Text Block] 
The following table sets forth scheduled future amortization of intangible assets and below market lease liabilities:
 
 
 
Amortization of Deferred Financing Costs
 
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)
July 1 through December 31, 2015
 
$
1,643

 
$
20,519

 
$
706

 
$
2,213

 
$
273

 
$
(3,098
)
2016
 
3,035

 
35,511

 
1,238

 
3,294

 
553

 
(5,555
)
2017
 
2,720

 
30,630

 
1,121

 
2,294

 
553

 
(5,284
)
2018
 
1,538

 
26,145

 
1,015

 
1,474

 
553

 
(5,123
)
2019
 
1,130

 
21,716

 
822

 
1,054

 
553

 
(4,810
)
Thereafter
 
1,349

 
53,743

 
2,582

 
2,870

 
533

 
(14,996
)
 
 
$
11,415

 
$
188,264

 
$
7,484

 
$
13,199

 
$
3,018

 
$
(38,866
)
Weighted average remaining amortization periods as of June 30, 2015 (in years)
 
4.3

 
7.0

 
7.9

 
6.1

 
5.5

 
7.8

Total Intangible Assets and Below Market Lease Liabilities from Acquisition Activity [Table Text Block] 
The following table sets forth the intangible assets acquired and below market lease liabilities assumed as a result of 2015 acquisition activity:

 
 
Acquisition-Related Intangible Assets (amortized in Rental and Other Revenues)
 
Acquisition-Related Intangible Assets (amortized in Depreciation and Amortization)
 
Acquisition-Related Below Market Lease Liabilities (amortized in Rental and Other Revenues)
Amount recorded from acquisition activity
 
$
498

 
$
1,671

 
$
(37
)
Weighted average remaining amortization periods as of June 30, 2015 (in years)
 
2.1

 
2.3

 
4.8

Mortgages and Notes Payable (Tables)
Schedule of Consolidated Mortgages and Notes Payable [Table Text Block]
The following table sets forth our mortgages and notes payable:
 
 
June 30,
2015
 
December 31,
2014
Secured indebtedness
$
290,101

 
$
312,868

Unsecured indebtedness
1,833,927

 
1,758,521

Total mortgages and notes payable
$
2,124,028

 
$
2,071,389

Derivative Financial Instruments (Tables)
Schedule of Derivative Instruments, Fair Value [Table Text Block] 
The following table sets forth the fair value of our derivatives:
 
 
June 30,
2015
 
December 31,
2014
Derivatives:
 
 
 
Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities:
 
 
 
Interest rate swaps
$
3,366

 
$
2,412

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] 
The following table sets forth the effect of our cash flow hedges on AOCL and interest expense:
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2015
 
2014
 
2015
 
2014
Derivatives Designated as Cash Flow Hedges:
 
 
 
 
 
 
 
Amount of unrealized gains/(losses) recognized in AOCL on derivatives (effective portion):
 
 
 
 
 
 
 
Interest rate swaps
$
269

 
$
(2,846
)
 
$
(2,645
)
 
$
(4,250
)
Amount of losses reclassified out of AOCL into contractual interest expense (effective portion):
 
 
 
 
 
 
 
Interest rate swaps
$
925

 
$
944

 
$
1,849

 
$
1,872

Noncontrolling Interests (Tables) (Highwoods Properties, Inc. [Member])
Noncontrolling Interests in the Operating Partnership [Table Text Block] 
The following table sets forth the Company's noncontrolling interests in the Operating Partnership:
 
 
Six Months Ended
June 30,
 
2015
 
2014
Beginning noncontrolling interests in the Operating Partnership
$
130,048

 
$
106,480

Adjustment of noncontrolling interests in the Operating Partnership to fair value
(11,475
)
 
18,337

Conversions of Common Units to Common Stock
(1,206
)
 
(162
)
Redemptions of Common Units
—

 
(93
)
Net income attributable to noncontrolling interests in the Operating Partnership
1,378

 
1,140

Distributions to noncontrolling interests in the Operating Partnership
(2,485
)
 
(2,497
)
Total noncontrolling interests in the Operating Partnership
$
116,260

 
$
123,205


Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership [Table Text Block] 
The following table sets forth net income available for common stockholders and transfers from the Company's noncontrolling interests in the Operating Partnership:
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2015
 
2014
 
2015
 
2014
Net income available for common stockholders
$
25,155

 
$
22,705

 
$
44,471

 
$
34,833

Increase in additional paid in capital from conversions of Common Units
to Common Stock
—

 
—

 
1,206

 
162

Change from net income available for common stockholders and transfers from noncontrolling interests
$
25,155

 
$
22,705

 
$
45,677

 
$
34,995

Disclosure About Fair Value of Financial Instruments (Tables)
Fair Value Measurements of Assets, Liabilities and Noncontrolling Interests [Table Text Block] 
The following table sets forth our assets and liabilities and the Company's noncontrolling interests in the Operating Partnership that are measured 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 June 30, 2015:
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
Mortgages and notes receivable, at fair value (1)
 
$
5,943

 
$
—

 
$
2,167

 
$
3,776

Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
 
3,512

 
3,512

 
—

 
—

Tax increment financing bond (in prepaid expenses and other assets)
 
12,641

 
—

 
—

 
12,641

Total Assets
 
$
22,096

 
$
3,512

 
$
2,167

 
$
16,417

Noncontrolling Interests in the Operating Partnership
 
$
116,260

 
$
116,260

 
$
—

 
$
—

Liabilities:
 
 
 
 
 
 
 
 
Mortgages and notes payable, at fair value (1)
 
$
2,178,032

 
$
—

 
$
2,178,032

 
$
—

Interest rate swaps (in accounts payable, accrued expenses and other liabilities)
 
3,366

 
—

 
3,366

 
—

Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
 
3,512

 
3,512

 
—

 
—

Financing obligation, at fair value (1)
 
8,700

 
—

 
—

 
8,700

Total Liabilities
 
$
2,193,610

 
$
3,512

 
$
2,181,398

 
$
8,700

Fair Value at December 31, 2014:
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
Mortgages and notes receivable, at fair value (1)
 
$
13,142

 
$
—

 
$
2,247

 
$
10,895

Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
 
3,635

 
3,635

 
—

 
—

Tax increment financing bond (in prepaid expenses and other assets)
 
12,447

 
—

 
—

 
12,447

Total Assets
 
$
29,224

 
$
3,635

 
$
2,247

 
$
23,342

Noncontrolling Interests in the Operating Partnership
 
$
130,048

 
$
130,048

 
$
—

 
$
—

Liabilities:
 
 
 
 
 
 
 
 
Mortgages and notes payable, at fair value (1)
 
$
2,141,334

 
$
—

 
$
2,141,334

 
$
—

Interest rate swaps (in accounts payable, accrued expenses and other liabilities)
 
2,412

 
—

 
2,412

 
—

Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
 
3,635

 
3,635

 
—

 
—

Financing obligation, at fair value (as revised) (1)
 
8,623

 
—

 
—

 
8,623

Total Liabilities (as revised)
 
$
2,156,004

 
$
3,635

 
$
2,143,746

 
$
8,623


__________
(1)    Amounts recorded at historical cost on our Consolidated Balance Sheets at June 30, 2015 and December 31, 2014.
Fair Value Measurements, Unobservable Inputs Reconciliation [Table Text Block] 
The following table sets forth the changes in our Level 3 asset, which is recorded at fair value on our Consolidated Balance Sheets:

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2015
 
2014
 
2015
 
2014
Asset:
 
 
 
 
 
 
 
Tax Increment Financing Bond:
 
 
 
 
 
 
 
Beginning balance
$
12,640

 
$
13,568

 
$
12,447

 
$
13,403

Unrealized gains (in AOCL)
1

 
105

 
194

 
270

Ending balance
$
12,641

 
$
13,673

 
$
12,641

 
$
13,673

Fair Value Measurements, Valuation Techniques [Table Text Block] 
The following table sets forth quantitative information about the unobservable input of our Level 3 asset, which is recorded at fair value on our Consolidated Balance Sheets:
 
 
Valuation
Technique
 
Unobservable
Input
 
Rate as of
 
 
 
June 30,
2015
 
December 31,
2014
Asset:
 
 
 
 
 
 
 
Tax increment financing bond
Income approach
 
Discount rate
 
8.1%
 
8.4%
Accumulated Other Comprehensive Loss (Tables)
Components of Accumulated Other Comprehensive Loss [Table Text Block]
The following table sets forth the components of AOCL:
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2015
 
2014
 
2015
 
2014
Tax increment financing bond:
 
 
 
 
 
 
 
Beginning balance
$
(252
)
 
$
(864
)
 
$
(445
)
 
$
(1,029
)
Unrealized gains on tax increment financing bond
1

 
105

 
194

 
270

Ending balance
(251
)
 
(759
)
 
(251
)
 
(759
)
Cash flow hedges:
 
 
 
 
 
 
 
Beginning balance
(5,457
)
 
(2,058
)
 
(3,467
)
 
(1,582
)
Unrealized gains/(losses) on cash flow hedges
269

 
(2,846
)
 
(2,645
)
 
(4,250
)
Amortization of cash flow hedges (1)
925

 
944

 
1,849

 
1,872

Ending balance
(4,263
)
 
(3,960
)
 
(4,263
)
 
(3,960
)
Total accumulated other comprehensive loss
$
(4,514
)

$
(4,719
)
 
$
(4,514
)
 
$
(4,719
)
__________
(1)    Amounts reclassified out of AOCL into contractual interest expense.
Real Estate and Other Assets Held For Sale (Tables)
Major Classes of Assets and Liabilities of the Properties Classified As Held For Sale [Table Text Block]
The following table sets forth the major classes of assets of our real estate and other assets, net, held for sale:

 
June 30,
2015
 
December 31,
2014
Assets:
 
 
 
Land
$
1,450

 
$
—

Buildings and tenant improvements
11,576

 
—

Land held for development
2,184

 
995

Less-accumulated depreciation
(5,062
)
 
—

Net real estate assets
10,148

 
995

Accrued straight-line rents receivable, net
335

 
—

Deferred leasing costs, net
128

 
—

Prepaid expenses and other assets
20

 
43

Real estate and other assets, net, held for sale
$
10,631

 
$
1,038

Earnings Per Share and Per Unit (Tables)
Earnings Per Share [Table Text Block] 
The following table sets forth the computation of basic and diluted earnings per share of the Company:

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2015
 
2014
 
2015
 
2014
Earnings per Common Share - basic:
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
26,891

 
$
24,512

 
$
47,726

 
$
37,704

Net (income) attributable to noncontrolling interests in the Operating Partnership from continuing operations
(782
)
 
(742
)
 
(1,378
)
 
(1,128
)
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(328
)
 
(438
)
 
(624
)
 
(861
)
Dividends on Preferred Stock
(626
)
 
(627
)
 
(1,253
)
 
(1,254
)
Income from continuing operations available for common stockholders
25,155

 
22,705

 
44,471

 
34,461

Income from discontinued operations
—

 
—

 
—

 
384

Net (income) attributable to noncontrolling interests in the Operating Partnership from discontinued operations
—

 
—

 
—

 
(12
)
Income from discontinued operations available for common stockholders
—

 
—

 
—

 
372

Net income available for common stockholders
$
25,155

 
$
22,705

 
$
44,471

 
$
34,833

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per Common Share – weighted average shares
94,055

 
90,254

 
93,641

 
90,111

Earnings per Common Share - basic:
 
 
 
 
 
 
 
Income from continuing operations available for common stockholders
$
0.27

 
$
0.25

 
$
0.47

 
$
0.38

Income from discontinued operations available for common stockholders
—

 
—

 
—

 
0.01

Net income available for common stockholders
$
0.27

 
$
0.25

 
$
0.47

 
$
0.39

Earnings per Common Share - diluted:
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
26,891

 
$
24,512

 
$
47,726

 
$
37,704

Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(328
)
 
(438
)
 
(624
)
 
(861
)
Dividends on Preferred Stock
(626
)
 
(627
)
 
(1,253
)
 
(1,254
)
Income from continuing operations available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
25,937

 
23,447

 
45,849

 
35,589

Income from discontinued operations available for common stockholders
—

 
—

 
—

 
384

Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
$
25,937

 
$
23,447

 
$
45,849

 
$
35,973

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per Common Share – weighted average shares
94,055

 
90,254

 
93,641

 
90,111

Add:
 
 
 
 
 
 
 
Stock options using the treasury method
84

 
121

 
104

 
123

Noncontrolling interests Common Units
2,910

 
2,937

 
2,921

 
2,938

Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions (1) (2)
97,049

 
93,312

 
96,666

 
93,172

Earnings per Common Share - diluted:
 
 
 
 
 
 
 
Income from continuing operations available for common stockholders
$
0.27

 
$
0.25

 
$
0.47

 
$
0.38

Income from discontinued operations available for common stockholders
—

 
—

 
—

 
0.01

Net income available for common stockholders
$
0.27

 
$
0.25

 
$
0.47

 
$
0.39

__________

 
13.
Earnings Per Share and Per Unit - Continued
(1)
There were 0.2 million options outstanding during each of the three and six months ended June 30, 2015 and the six months ended June 30, 2014 that were not included in the computation of diluted earnings per share because the impact of including such options would be anti-dilutive. There were no such options outstanding during the three months ended June 30, 2014.
(2)
Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable.
Earnings Per Unit [Table Text Block] 
The following table sets forth the computation of basic and diluted earnings per unit of the Operating Partnership:
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2015
 
2014
 
2015
 
2014
Earnings per Common Unit - basic:
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
26,891

 
$
24,512

 
$
47,726

 
$
37,704

Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(328
)
 
(438
)
 
(624
)
 
(861
)
Distributions on Preferred Units
(626
)
 
(627
)
 
(1,253
)
 
(1,254
)
Income from continuing operations available for common unitholders
25,937

 
23,447

 
45,849

 
35,589

Income from discontinued operations available for common unitholders
—

 
—

 
—

 
384

Net income available for common unitholders
$
25,937

 
$
23,447

 
$
45,849

 
$
35,973

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per Common Unit – weighted average units
96,556

 
92,782

 
96,153

 
92,640

Earnings per Common Unit - basic:
 
 
 
 
 
 
 
Income from continuing operations available for common unitholders
$
0.27

 
$
0.25

 
$
0.48

 
$
0.38

Income from discontinued operations available for common unitholders
—

 
—

 
—

 
0.01

Net income available for common unitholders
$
0.27

 
$
0.25

 
$
0.48

 
$
0.39

Earnings per Common Unit - diluted:
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
26,891

 
$
24,512

 
$
47,726

 
$
37,704

Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(328
)
 
(438
)
 
(624
)
 
(861
)
Distributions on Preferred Units
(626
)
 
(627
)
 
(1,253
)
 
(1,254
)
Income from continuing operations available for common unitholders
25,937

 
23,447

 
45,849

 
35,589

Income from discontinued operations available for common unitholders
—

 
—

 
—

 
384

Net income available for common unitholders
$
25,937

 
$
23,447

 
$
45,849

 
$
35,973

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per Common Unit – weighted average units
96,556

 
92,782

 
96,153

 
92,640

Add:
 
 
 
 
 
 
 
Stock options using the treasury method
84

 
121

 
104

 
123

Denominator for diluted earnings per Common Unit – adjusted weighted average units and assumed conversions (1) (2)
96,640

 
92,903

 
96,257

 
92,763

Earnings per Common Unit - diluted:
 
 
 
 
 
 
 
Income from continuing operations available for common unitholders
$
0.27

 
$
0.25

 
$
0.48

 
$
0.38

Income from discontinued operations available for common unitholders
—

 
—

 
—

 
0.01

Net income available for common unitholders
$
0.27

 
$
0.25

 
$
0.48

 
$
0.39

__________
(1)
There were 0.2 million options outstanding during each of the three and six months ended June 30, 2015 and the six months ended June 30, 2014 that were not included in the computation of diluted earnings per unit because the impact of including such options would be anti-dilutive. There were no such options outstanding during the three months ended June 30, 2014.
(2)
Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable.
Segment Information (Tables)
Segment Information [Table Text Block]
The following tables summarize the rental and other revenues and net operating income, the primary industry property-level performance metric used by our chief operating decision maker which is defined as rental and other revenues less rental property and other expenses, for each of our reportable segments. Our segment information for the three and six months ended June 30, 2014 has been retrospectively revised from previously reported amounts to reflect a change in our reportable segments.

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2015
 
2014
 
2015
 
2014
Rental and Other Revenues:
 
 
 
 
 
 
 
Office:
 
 
 
 
 
 
 
Atlanta, GA
$
25,611

 
$
23,627

 
$
50,393

 
$
46,604

Greensboro, NC
5,398

 
6,580

 
10,838

 
13,030

Greenville, SC
—

 
767

 
—

 
1,608

Kansas City, MO
4,142

 
4,086

 
8,358

 
8,183

Memphis, TN
12,050

 
10,055

 
23,784

 
19,890

Nashville, TN
21,770

 
20,182

 
43,586

 
39,787

Orlando, FL
10,948

 
9,148

 
21,782

 
18,068

Pittsburgh, PA
14,719

 
14,014

 
29,268

 
27,771

Raleigh, NC
25,541

 
22,538

 
48,982

 
44,029

Richmond, VA
10,203

 
12,020

 
20,787

 
23,763

Tampa, FL
18,602

 
17,129

 
37,029

 
33,756

Total Office Segment
148,984

 
140,146

 
294,807

 
276,489

Retail:
 
 
 
 
 
 
 
Kansas City, MO
9,140

 
9,366

 
17,703

 
18,584

Total Retail Segment
9,140

 
9,366

 
17,703

 
18,584

Other
3,012

 
3,210

 
5,936

 
6,102

Total Rental and Other Revenues
$
161,136

 
$
152,722

 
$
318,446

 
$
301,175


14.
Segment Information - Continued

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2015
 
2014
 
2015
 
2014
Net Operating Income:
 
 
 
 
 
 
 
Office:
 
 
 
 
 
 
 
Atlanta, GA
$
15,663

 
$
14,321

 
$
31,030

 
$
28,018

Greensboro, NC
3,516

 
4,249

 
6,942

 
8,247

Greenville, SC
—

 
390

 
—

 
865

Kansas City, MO
2,713

 
2,698

 
5,462

 
5,303

Memphis, TN
7,641

 
5,789

 
15,030

 
11,396

Nashville, TN
15,480

 
13,999

 
30,712

 
27,152

Orlando, FL
6,348

 
5,346

 
12,831

 
10,722

Pittsburgh, PA
8,670

 
7,988

 
16,632

 
15,181

Raleigh, NC
18,358

 
16,326

 
34,629

 
31,358

Richmond, VA
6,932

 
8,265

 
13,812

 
15,941

Tampa, FL
11,020

 
10,031

 
22,240

 
20,066

Total Office Segment
96,341

 
89,402

 
189,320

 
174,249

Retail:
 
 
 
 
 
 
 
Kansas City, MO
5,351

 
5,764

 
10,063

 
11,029

Total Retail Segment
5,351

 
5,764

 
10,063

 
11,029

Other
2,166

 
2,281

 
4,272

 
4,232

Total Net Operating Income
103,858

 
97,447

 
203,655

 
189,510

Reconciliation to income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates:
 
 
 
 
 
 
 
Depreciation and amortization
(51,240
)
 
(50,443
)
 
(101,548
)
 
(98,608
)
Impairments of real estate assets
—

 
(588
)
 
—

 
(588
)
General and administrative expenses
(8,892
)
 
(8,733
)
 
(20,329
)
 
(19,447
)
Interest expense
(22,002
)
 
(21,213
)
 
(43,425
)
 
(42,575
)
Other income
979

 
1,428

 
2,217

 
2,827

Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates
$
22,703

 
$
17,898

 
$
40,570

 
$
31,119

Description of Business and Significant Accounting Policies (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2015
sqft
acre
Jun. 30, 2015
sqft
acre
Jun. 30, 2014
Dec. 31, 2014
Description of Business and Significant Accounting Policies [Line Items]
 
 
 
 
Rentable square feet of commercial real estate property (in sq feet)
31,400,000 
31,400,000 
 
 
Rentable square feet of commercial real estate properties under development (in sq feet)
900,000 
900,000 
 
 
Undeveloped land suitable for development (in acres)
500 
500 
 
 
Common Units redeemed for a like number of common shares of stock (in shares)
 
26,820 
 
 
Net proceeds of Common Stock sold during the period
 
$ 43,216,000 
$ 8,712,000 
 
Joint venture partner's interest (in hundredths)
80.00% 
80.00% 
 
 
Gain recognized on partial sale
2,200,000 
 
 
 
Net real estate assets
3,513,419,000 
3,513,419,000 
 
3,452,006,000 
Investments in and advances to unconsolidated affiliates
43,979,000 
43,979,000 
 
50,685,000 
Total Assets
4,039,642,000 
4,039,642,000 
 
3,999,123,000 
Financing obligation
8,962,000 
8,962,000 
 
8,962,000 
Distributions in excess of net income available for common stockholders
(992,425,000)
(992,425,000)
 
(957,370,000)
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity
4,039,642,000 
4,039,642,000 
 
3,999,123,000 
Highwoods Properties, Inc. [Member]
 
 
 
 
Description of Business and Significant Accounting Policies [Line Items]
 
 
 
 
Common Units of partnership owned by the Company (in shares)
93,700,000 
93,700,000 
 
 
Percentage of ownership of Common Units (in hundredths)
97.00% 
97.00% 
 
96.90% 
Highwoods Properties, Inc. [Member] |
Previously Reported Disclosure [Member]
 
 
 
 
Description of Business and Significant Accounting Policies [Line Items]
 
 
 
 
Net real estate assets
 
 
 
3,481,406,000 
Investments in and advances to unconsolidated affiliates
 
 
 
27,071,000 
Total Assets
 
 
 
4,004,909,000 
Financing obligation
 
 
 
23,519,000 
Distributions in excess of net income available for common stockholders
 
 
 
(966,141,000)
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity
 
 
 
4,004,909,000 
Highwoods Properties, Inc. [Member] |
Revised Disclosure [Member]
 
 
 
 
Description of Business and Significant Accounting Policies [Line Items]
 
 
 
 
Net real estate assets
 
 
 
3,452,006,000 
Investments in and advances to unconsolidated affiliates
 
 
 
50,685,000 
Total Assets
 
 
 
3,999,123,000 
Financing obligation
 
 
 
8,962,000 
Distributions in excess of net income available for common stockholders
 
 
 
(957,370,000)
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity
 
 
 
3,999,123,000 
Highwoods Properties, Inc. [Member] |
ATM Equity Offering [Member]
 
 
 
 
Description of Business and Significant Accounting Policies [Line Items]
 
 
 
 
Number of Common Stock sold during the period (in shares)
58,533 
972,659 
 
 
Average price of Common Stock sold during the period (in dollars per share)
$ 41.72 
$ 45.12 
 
 
Net proceeds of Common Stock sold during the period
2,400,000 
43,200,000 
 
 
Highwoods Realty Limited Partnership [Member]
 
 
 
 
Description of Business and Significant Accounting Policies [Line Items]
 
 
 
 
Common Units of partnership not owned by the Company (in shares)
2,900,000 
2,900,000 
 
 
Net real estate assets
3,513,419,000 
3,513,419,000 
 
3,452,006,000 
Investments in and advances to unconsolidated affiliates
43,979,000 
43,979,000 
 
50,685,000 
Total Assets
4,039,642,000 
4,039,642,000 
 
3,999,229,000 
Financing obligation
8,962,000 
8,962,000 
 
8,962,000 
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity
$ 4,039,642,000 
$ 4,039,642,000 
 
$ 3,999,229,000 
Real Estate Assets (Details) (USD $)
3 Months Ended 6 Months Ended 3 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Atlanta, GA Land Acquisition [Member] (6/2015) [Member]
Jun. 30, 2015
Orlando, FL Building Acquisition [Member] (6/2015) [Member]
sqft
Mar. 31, 2015
Building Dispositions [Member]
property
Jun. 30, 2015
Land Dispositions [Member]
Mar. 31, 2015
Land Dispositions [Member]
Acquisitions [Abstract]
 
 
 
 
 
 
 
 
 
Percentage of equity interest acquired in unconsolidated affiliate (in hundredths)
 
 
 
 
 
77.20% 
 
 
 
Acquisition rentable square feet (in sq. ft.)
 
 
 
 
 
168,000 
 
 
 
Purchase price of acquisition
 
 
 
 
$ 5,200,000 
 
 
 
 
Contingent consideration in connection with the acquisition of land
 
 
900,000 
0 
900,000 
 
 
 
 
Fair value of debt assumed in connection with the acquisition
 
 
 
 
 
19,300,000 
 
 
 
Acquisition-related costs
 
 
 
 
 
100,000 
 
 
 
Dispositions [Abstract]
 
 
 
 
 
 
 
 
 
Number of buildings sold
 
 
 
 
 
 
2 
 
 
Purchase price of real estate
 
 
 
 
 
 
3,500,000 
500,000 
2,500,000 
Gain on disposition of property
$ 2,412,000 
$ 5,947,000 
$ 3,569,000 
$ 5,947,000 
 
 
$ 400,000 
$ 200,000 
$ 800,000 
Mortgages and Notes Receivable (Details) (USD $)
In Thousands, unless otherwise specified
6 Months Ended 3 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Jun. 30, 2015
Mortgages Receivable [Member]
Schedule of mortgages and notes receivable [Abstract]
 
 
 
 
Mortgages and notes receivable, net
$ 5,935 
 
$ 13,116 
 
Repayment of secured acquisition financing
$ 9,221 
$ 16,817 
 
$ 9,900 
Investments In and Advances To Unconsolidated Affiliates (Details) (USD $)
3 Months Ended 6 Months Ended 3 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
SF-Harborview Plaza, LP Joint Venture [Member]
Jun. 30, 2015
Highwoods DLF 98/29, LLC Joint Venture [Member]
Jun. 30, 2015
Highwoods KC Glenridge Office, LLC Joint Venture [Member]
property
Mar. 31, 2015
Highwoods DLF 97/26 DLF 99/32, LP Joint Venture [Member]
Income Statements:
 
 
 
 
 
 
 
 
Rental and other revenues
$ 12,423,000 
$ 12,845,000 
$ 24,654,000 
$ 25,278,000 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
Rental property and other expenses
6,031,000 
6,236,000 
11,698,000 
12,439,000 
 
 
 
 
Depreciation and amortization
3,110,000 
3,328,000 
6,225,000 
6,817,000 
 
 
 
 
Interest expense
2,032,000 
2,301,000 
4,181,000 
4,512,000 
 
 
 
 
Total expenses
11,173,000 
11,865,000 
22,104,000 
23,768,000 
 
 
 
 
Income before disposition of property
1,250,000 
980,000 
2,550,000 
1,510,000 
 
 
 
 
Gains on disposition of property
16,054,000 
0 
18,181,000 
1,949,000 
 
13,700,000 
2,400,000 
2,100,000 
Net income
17,304,000 
980,000 
20,731,000 
3,459,000 
 
 
 
 
Percentage of equity interest in joint ventures, maximum (in hundredths)
50.00% 
 
50.00% 
 
20.00% 
 
 
 
Term of debt instrument
 
 
 
 
3 years 
 
 
 
Advances to affiliate loan amount
 
 
 
 
20,800,000 
 
 
 
Maturity date of advance to affiliate
 
 
 
 
Sep. 11, 2015 
 
 
 
Joint venture partner's interest (in hundredths)
50.00% 
 
50.00% 
 
80.00% 
 
 
 
Term of put option right (in years)
 
 
 
 
1 year 
 
 
 
Advance to affiliate, variable interest rate basis
 
 
 
 
LIBOR plus 500 basis points 
 
 
 
Advance to affiliate, interest rate (in hundredths)
 
 
 
 
5.00% 
 
 
 
Advance to affiliate, minimum interest rate (in hundredths)
 
 
 
 
0.50% 
 
 
 
Number of buildings sold
 
 
 
 
 
 
2 
 
Proceeds received from disposition of property
 
 
 
 
 
 
24,500,000 
7,000,000 
Closing credits for unfunded tenant improvements
 
 
 
 
 
 
300,000 
 
Our share of gains on disposition of property
 
 
 
 
 
$ 3,100,000 
$ 900,000 
$ 1,100,000 
Intangible Assets and Below Market Lease Liabilities (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Intangible assets and below market lease liabilities, net [Abstract]
 
 
 
 
 
Deferred financing and leasing costs, accumulated amortization
$ (119,396)
 
$ (119,396)
 
$ (112,804)
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
223,380 
 
223,380 
 
228,768 
Acquired intangible assets (amortized in rental and other revenue)
498 
 
498 
 
 
Acquired intangible assets (amortized in depreciation and amortization)
1,671 
 
1,671 
 
 
Assumed below market lease liabilities (amortized in rental and other revenue)
(37)
 
(37)
 
 
Deferred Financing Costs [Member]
 
 
 
 
 
Intangible assets and below market lease liabilities, net [Abstract]
 
 
 
 
 
Deferred financing and leasing costs, gross
19,508 
 
19,508 
 
19,478 
Deferred financing and leasing costs, accumulated amortization
(8,093)
 
(8,093)
 
(7,953)
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
11,415 
 
11,415 
 
11,525 
Amortization of intangible assets and below market lease liabilities [Abstract]
 
 
 
 
 
Amortization of intangible assets
828 
799 
1,628 
1,451 
 
Deferred Leasing Costs [Member]
 
 
 
 
 
Intangible assets and below market lease liabilities, net [Abstract]
 
 
 
 
 
Deferred financing and leasing costs, gross
323,268 
 
323,268 
 
322,094 
Deferred financing and leasing costs, accumulated amortization
(111,303)
 
(111,303)
 
(104,851)
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
211,965 
 
211,965 
 
217,243 
Deferred Leasing Costs and Acquisition-Related Intangible Assets [Member]
 
 
 
 
 
Intangible assets and below market lease liabilities, net [Abstract]
 
 
 
 
 
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
188,264 
 
188,264 
 
 
Amortization of intangible assets and below market lease liabilities [Abstract]
 
 
 
 
 
Amortization of intangible assets
10,169 
10,050 
20,462 
19,978 
 
Lease Incentives [Member]
 
 
 
 
 
Intangible assets and below market lease liabilities, net [Abstract]
 
 
 
 
 
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
7,484 
 
7,484 
 
 
Amortization of intangible assets and below market lease liabilities [Abstract]
 
 
 
 
 
Amortization of intangible assets
422 
399 
784 
750 
 
Acquisition-Related Intangible Assets (in Rental and Other Revenues) [Member]
 
 
 
 
 
Intangible assets and below market lease liabilities, net [Abstract]
 
 
 
 
 
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
13,199 
 
13,199 
 
 
Amortization of intangible assets and below market lease liabilities [Abstract]
 
 
 
 
 
Amortization of intangible assets
1,189 
1,114 
2,355 
2,230 
 
Acquisition-Related Intangible Assets (in Rental Property and Other Expenses) [Member]
 
 
 
 
 
Intangible assets and below market lease liabilities, net [Abstract]
 
 
 
 
 
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
3,018 
 
3,018 
 
 
Amortization of intangible assets and below market lease liabilities [Abstract]
 
 
 
 
 
Amortization of intangible assets
139 
139 
276 
276 
 
Acquisition-Related Below Market Lease Liabilities [Member]
 
 
 
 
 
Intangible assets and below market lease liabilities, net [Abstract]
 
 
 
 
 
Acquisition-related below market lease liabilities, gross
55,166 
 
55,166 
 
55,783 
Acquisition-related below market lease liabilities, accumulated amortization
(16,300)
 
(16,300)
 
(13,548)
Acquisition-related below market lease liabilities, net
38,866 
 
38,866 
 
42,235 
Amortization of intangible assets and below market lease liabilities [Abstract]
 
 
 
 
 
Amortization of acquisition-related below market lease liabilities
$ (1,674)
$ (1,500)
$ (3,406)
$ (3,022)
 
Intangible Assets and Below Market Lease Liabilities - Scheduled Future Amortization (Details) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2015
Dec. 31, 2014
Scheduled future amortization of intangible assets [Abstract]
 
 
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
$ 223,380 
$ 228,768 
Deferred Financing Costs [Member]
 
 
Scheduled future amortization of intangible assets [Abstract]
 
 
July 1, 2015 through December 31, 2015
1,643 
 
2016
3,035 
 
2017
2,720 
 
2018
1,538 
 
2019
1,130 
 
Thereafter
1,349 
 
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
11,415 
11,525 
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract]
 
 
Finite-lived intangible assets, average useful life (in years)
4 years 4 months 
 
Deferred Leasing Costs and Acquisition-Related Intangible Assets [Member]
 
 
Scheduled future amortization of intangible assets [Abstract]
 
 
July 1, 2015 through December 31, 2015
20,519 
 
2016
35,511 
 
2017
30,630 
 
2018
26,145 
 
2019
21,716 
 
Thereafter
53,743 
 
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
188,264 
 
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 
 
Lease Incentives [Member]
 
 
Scheduled future amortization of intangible assets [Abstract]
 
 
July 1, 2015 through December 31, 2015
706 
 
2016
1,238 
 
2017
1,121 
 
2018
1,015 
 
2019
822 
 
Thereafter
2,582 
 
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
7,484 
 
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 11 months 
 
Acquisition-Related Intangible Assets (in Rental and Other Revenues) [Member]
 
 
Scheduled future amortization of intangible assets [Abstract]
 
 
July 1, 2015 through December 31, 2015
2,213 
 
2016
3,294 
 
2017
2,294 
 
2018
1,474 
 
2019
1,054 
 
Thereafter
2,870 
 
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
13,199 
 
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 1 month 5 days 
 
Acquired finite-lived intangible assets, weighted average useful life (in years)
2 years 1 month 5 days 
 
Acquisition-Related Intangible Assets (amortized in Depreciation and Amortization) [Member]
 
 
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract]
 
 
Acquired finite-lived intangible assets, weighted average useful life (in years)
2 years 4 months 
 
Acquisition-Related Intangible Assets (in Rental Property and Other Expenses) [Member]
 
 
Scheduled future amortization of intangible assets [Abstract]
 
 
July 1, 2015 through December 31, 2015
273 
 
2016
553 
 
2017
553 
 
2018
553 
 
2019
553 
 
Thereafter
533 
 
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
3,018 
 
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract]
 
 
Finite-lived intangible assets, average useful life (in years)
5 years 6 months 
 
Acquisition-Related Below Market Lease Liabilities [Member]
 
 
Scheduled future amortization of below market lease liabilities [Abstract]
 
 
July 1, 2015 through December 31, 2015
(3,098)
 
2016
(5,555)
 
2017
(5,284)
 
2018
(5,123)
 
2019
(4,810)
 
Thereafter
(14,996)
 
Total scheduled future amortization of acquisition-related below market lease liabilities
$ (38,866)
$ (42,235)
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract]
 
 
Finite-lived below market lease liabilities, average useful life (in years)
7 years 9 months 20 days 
 
Assumed finite-lived below market lease liabilities, weighted average useful life (in years)
4 years 9 months 20 days 
 
Mortgages and Notes Payable (Details) (USD $)
3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Jun. 30, 2015
Revolving Credit Facility due 2018 [Member]
extensions
Jun. 30, 2015
Revolving Credit Facility due 2018 [Member]
Jun. 30, 2015
Variable Rate Term Loan (2) due 2019 [Member]
Jun. 30, 2015
Variable Rate Term Loan due 2020 [Member]
Jun. 30, 2015
5.17% (6.43% effective rate) Mortage Loan due 2015 [Member]
Jun. 30, 2015
6.11% (5.36% effective rate) Mortgage Loan due 2017 (Note A) [Member]
Jun. 30, 2015
6.11% (8.60% effective rate) Mortgage Loan due 2017 (Note B) [Member]
Jun. 30, 2015
Secured indebtedness [Member]
Dec. 31, 2014
Secured indebtedness [Member]
Jun. 30, 2015
Unsecured indebtedness [Member]
Dec. 31, 2014
Unsecured indebtedness [Member]
Jul. 27, 2015
Subsequent Event [Member]
Revolving Credit Facility due 2018 [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgages and notes payable
$ 2,124,028,000 
 
$ 2,124,028,000 
 
$ 2,071,389,000 
 
 
 
 
 
 
 
$ 290,101,000 
$ 312,868,000 
$ 1,833,927,000 
$ 1,758,521,000 
 
Aggregate undepreciated book value of secured real estate assets
 
 
 
 
 
 
 
 
 
 
 
 
545,500,000 
 
 
 
 
Maximum borrowing capacity on revolving credit facility
 
 
 
 
 
475,000,000 
475,000,000 
 
 
 
 
 
 
 
 
 
 
Maturity date on revolving credit facility
 
 
 
 
 
 
Jan. 01, 2018 
 
 
 
 
 
 
 
 
 
 
Additional borrowing capacity on revolving credit facility
 
 
 
 
 
75,000,000 
75,000,000 
 
 
 
 
 
 
 
 
 
 
Facility interest rate basis
 
 
 
 
 
LIBOR plus 110 basis points 
 
 
 
 
 
 
 
 
 
 
 
Interest rate spread (in hundredths)
 
 
 
 
 
1.10% 
 
1.75% 
1.10% 
 
 
 
 
 
 
 
 
Annual facility fee (in hundredths)
 
 
 
 
 
0.20% 
 
 
 
 
 
 
 
 
 
 
 
Term of optional extension
 
 
 
 
 
6 months 
 
 
 
 
 
 
 
 
 
 
 
Number of additional maturity extensions
 
 
 
 
 
2 
 
 
 
 
 
 
 
 
 
 
 
Amount outstanding on revolving credit facility
 
 
 
 
 
159,000,000 
159,000,000 
 
 
 
 
 
 
 
 
 
158,000,000 
Outstanding letters of credit on revolving credit facility
 
 
 
 
 
400,000 
400,000 
 
 
 
 
 
 
 
 
 
400,000 
Unused borrowing capacity on revolving credit facility
 
 
 
 
 
315,600,000 
315,600,000 
 
 
 
 
 
 
 
 
 
316,600,000 
Principal debt amount
 
 
 
 
 
 
 
225,000,000 
350,000,000 
 
18,000,000 
10,200,000 
 
 
 
 
 
Term of debt instrument
 
 
 
 
 
 
 
7 years 
 
 
 
 
 
 
 
 
 
Early repayment of debt
 
 
 
 
 
 
 
 
 
39,400,000 
 
 
 
 
 
 
 
Scheduled maturity date
 
 
 
 
 
 
 
Jan. 01, 2019 
Jun. 01, 2020 
Nov. 01, 2015 
Jul. 06, 2017 
Jul. 06, 2017 
 
 
 
 
 
Debt, variable interest rate basis
 
 
 
 
 
 
 
LIBOR plus 175 basis points 
LIBOR plus 110 basis points 
 
 
 
 
 
 
 
 
Effective interest rate (in hundredths)
 
 
 
 
 
 
 
 
 
6.43% 
5.36% 
8.60% 
 
 
 
 
 
Deferred financing fees
 
 
 
 
 
 
 
 
1,300,000 
 
 
 
 
 
 
 
 
Loss on debt extinguishment
(220,000)
18,000 
(220,000)
18,000 
 
 
 
 
 
200,000 
 
 
 
 
 
 
 
Percentage of equity interest acquired in unconsolidated affiliate (in hundredths)
 
 
 
 
 
 
 
 
 
 
77.20% 
 
 
 
 
 
 
Amount of funded capital expenditures reserve
15,703,000 
 
15,703,000 
 
14,595,000 
 
 
 
 
 
3,000,000 
 
 
 
 
 
 
Mortgage prepayment date
 
 
 
 
 
 
 
 
 
 
Oct. 06, 2016 
Oct. 06, 2016 
 
 
 
 
 
Percentage of excess funds after waterfall payments (in hundredths)
 
 
 
 
 
 
 
 
 
 
 
50.00% 
 
 
 
 
 
Stated return on funds deposited in escrow (in hundredths)
 
 
 
 
 
 
 
 
 
 
 
10.00% 
 
 
 
 
 
Fair value of debt assumed in connection with the acquisition
 
 
 
 
 
 
 
 
 
 
$ 18,300,000 
$ 1,000,000 
 
 
 
 
 
Derivative Financial Instruments (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]
 
 
 
 
 
Expected increase to interest expense
$ 2,900,000 
 
$ 2,900,000 
 
 
Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities [Abstract]
 
 
 
 
 
Interest rate swaps
3,366,000 
 
3,366,000 
 
2,412,000 
Amount of unrealized gains/(losses) recognized in AOCL on derivatives (effective portion) [Abstract]
 
 
 
 
 
Interest rate swaps
269,000 
(2,846,000)
(2,645,000)
(4,250,000)
 
Amount of losses reclassified out of AOCL into contractual interest expense (effective portion) [Abstract]
 
 
 
 
 
Interest rate swaps
$ 925,000 
$ 944,000 
$ 1,849,000 
$ 1,872,000 
 
Noncontrolling Interests (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Noncontrolling Interests in the Operating Partnership [Roll Forward]
 
 
 
 
Beginning noncontrolling interests in the Operating Partnership
 
 
$ 130,048 
 
Adjustment of noncontrolling interests in the Operating Partnership to fair value
 
 
(11,475)
18,337 
Conversions of Common Units to Common Stock
 
 
(1,206)
(162)
Redemptions of Common Units
 
 
0 
(93)
Net income attributable to noncontrolling interests in the Operating Partnership
782 
742 
1,378 
1,140 
Distributions to noncontrolling interests in the Operating Partnership
 
 
(2,485)
(2,497)
Total noncontrolling interests in the Operating Partnership
116,260 
 
116,260 
 
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership [Abstract]
 
 
 
 
Net income available for common stockholders
25,155 
22,705 
44,471 
34,833 
Noncontrolling Interests in Consolidated Affiliates [Abstract]
 
 
 
 
Consolidated joint venture, partner's interest (in hundredths)
50.00% 
 
50.00% 
 
Highwoods Properties, Inc. [Member]
 
 
 
 
Noncontrolling Interests in the Operating Partnership [Roll Forward]
 
 
 
 
Beginning noncontrolling interests in the Operating Partnership
 
 
130,048 
106,480 
Adjustment of noncontrolling interests in the Operating Partnership to fair value
 
 
(11,475)
18,337 
Conversions of Common Units to Common Stock
 
 
(1,206)
(162)
Redemptions of Common Units
 
 
0 
(93)
Net income attributable to noncontrolling interests in the Operating Partnership
 
 
1,378 
1,140 
Distributions to noncontrolling interests in the Operating Partnership
 
 
(2,485)
(2,497)
Total noncontrolling interests in the Operating Partnership
116,260 
123,205 
116,260 
123,205 
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership [Abstract]
 
 
 
 
Net income available for common stockholders
25,155 
22,705 
44,471 
34,833 
Increase in additional paid in capital from conversions of Common Units to Common Stock
0 
0 
1,206 
162 
Change from net income available for common stockholders and transfers from noncontrolling interests
$ 25,155 
$ 22,705 
$ 45,677 
$ 34,995 
Disclosure About Fair Value of Financial Instruments - Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Assets:
 
 
Mortgages and notes receivable, at fair value
$ 5,943 1
$ 13,142 1
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
3,512 
3,635 
Tax increment financing bond (in prepaid expenses and other assets)
12,641 
12,447 
Total Assets
22,096 
29,224 
Liabilities:
 
 
Mortgages and notes payable, at fair value
2,178,032 1
2,141,334 1
Interest rate swaps (in accounts payable, accrued expenses and other liabilities)
3,366 
2,412 
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
3,512 
3,635 
Financing obligation, at fair value
8,700 1
8,623 1
Total Liabilities
2,193,610 
2,156,004 
Level 1 [Member]
 
 
Assets:
 
 
Mortgages and notes receivable, at fair value
0 1
0 1
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
3,512 
3,635 
Tax increment financing bond (in prepaid expenses and other assets)
0 
0 
Total Assets
3,512 
3,635 
Liabilities:
 
 
Mortgages and notes payable, at fair value
0 1
0 1
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)
3,512 
3,635 
Financing obligation, at fair value
0 1
0 1
Total Liabilities
3,512 
3,635 
Level 2 [Member]
 
 
Assets:
 
 
Mortgages and notes receivable, at fair value
2,167 1
2,247 1
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
0 
0 
Tax increment financing bond (in prepaid expenses and other assets)
0 
0 
Total Assets
2,167 
2,247 
Liabilities:
 
 
Mortgages and notes payable, at fair value
2,178,032 1
2,141,334 1
Interest rate swaps (in accounts payable, accrued expenses and other liabilities)
3,366 
2,412 
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
0 
0 
Financing obligation, at fair value
0 1
0 1
Total Liabilities
2,181,398 
2,143,746 
Level 3 [Member]
 
 
Assets:
 
 
Mortgages and notes receivable, at fair value
3,776 1
10,895 1
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
0 
0 
Tax increment financing bond (in prepaid expenses and other assets)
12,641 
12,447 
Total Assets
16,417 
23,342 
Liabilities:
 
 
Mortgages and notes payable, at fair value
0 1
0 1
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 
Financing obligation, at fair value
8,700 1
8,623 1
Total Liabilities
8,700 
8,623 
Highwoods Properties, Inc. [Member]
 
 
Assets:
 
 
Noncontrolling Interests in the Operating Partnership
116,260 
130,048 
Highwoods Properties, Inc. [Member] |
Level 1 [Member]
 
 
Assets:
 
 
Noncontrolling Interests in the Operating Partnership
116,260 
130,048 
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 
Disclosure About Fair Value of Financial Instruments - Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) (USD $)
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
 
Unrealized gains (in AOCL)
 
 
$ 194,000 
$ 270,000 
 
Tax Increment Financing Bond [Member]
 
 
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
 
Beginning balance
12,640,000 
13,568,000 
12,447,000 
13,403,000 
13,403,000 
Unrealized gains (in AOCL)
1,000 
105,000 
194,000 
270,000 
 
Ending balance
12,641,000 
13,673,000 
12,641,000 
13,673,000 
12,447,000 
Maturity date
 
 
Dec. 20, 2020 
 
 
Amount by which outstanding principal amount exceeds estimated fair value
 
 
200,000 
 
 
Change in discount rate (in hundredths)
1.00% 
 
 
 
 
Discount rate (in hundredths)
 
 
8.10% 
 
8.40% 
Tax Increment Financing Bond [Member] |
Minimum [Member]
 
 
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
 
Change in fair value of bond if discount rate changes
300,000 
 
300,000 
 
 
Tax Increment Financing Bond [Member] |
Maximum [Member]
 
 
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
 
Change in fair value of bond if discount rate changes
$ 400,000 
 
$ 400,000 
 
 
Share-Based Payments (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Stock-based compensation expense
$ 1,200,000 
$ 1,119,000 
$ 5,067,000 
$ 5,381,000 
Total unrecognized stock-based compensation costs
$ 6,700,000 
 
$ 6,700,000 
 
Weighted average remaining contractual term for recognition of unrecognized stock-based compensation costs (in years)
 
 
2 years 7 months 7 days 
 
Highwoods Properties, Inc. [Member] |
Stock Options [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Stock options granted
 
 
197,408 
 
Weighted average grant date fair value of each stock option granted (in dollars per option)
 
 
$ 6.19 
 
Highwoods Properties, Inc. [Member] |
Time-Based Restricted Stock [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Restricted stock shares granted
 
 
71,994 
 
Weighted average grant date fair value of each restricted stock granted (in dollars per share)
 
 
$ 45.91 
 
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
 
 
56,957 
 
Weighted average grant date fair value of each restricted stock granted (in dollars per share)
 
 
$ 43.77 
 
Accumulated Other Comprehensive Loss (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2015
Dec. 31, 2014
Jun. 30, 2014
Jun. 30, 2015
Tax Increment Financing Bond [Member]
Jun. 30, 2014
Tax Increment Financing Bond [Member]
Jun. 30, 2015
Tax Increment Financing Bond [Member]
Jun. 30, 2014
Tax Increment Financing Bond [Member]
Jun. 30, 2015
Cash Flow Hedges [Member]
Jun. 30, 2014
Cash Flow Hedges [Member]
Jun. 30, 2015
Cash Flow Hedges [Member]
Jun. 30, 2014
Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income (Loss) Calculation [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$ (4,514)
$ (3,912)
$ (4,719)
$ (252)
$ (864)
$ (445)
$ (1,029)
$ (5,457)
$ (2,058)
$ (3,467)
$ (1,582)
Unrealized gains/(losses)
 
 
 
1 
105 
194 
270 
269 
(2,846)
(2,645)
(4,250)
Amortization reclassified out of AOCL
 
 
 
 
 
 
 
925 1
944 1
1,849 1
1,872 1
Ending balance
$ (4,514)
$ (3,912)
$ (4,719)
$ (251)
$ (759)
$ (251)
$ (759)
$ (4,263)
$ (3,960)
$ (4,263)
$ (3,960)
Real Estate and Other Assets Held For Sale (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Assets, held for sale [Abstract]
 
 
Land
$ 1,450 
$ 0 
Buildings and tenant improvements
11,576 
0 
Land held for development
2,184 
995 
Less - accumulated depreciation
(5,062)
0 
Net real estate assets
10,148 
995 
Accrued straight-line rents receivable, net
335 
0 
Deferred leasing costs, net
128 
0 
Prepaid expenses and other assets
20 
43 
Real estate and other assets, net, held for sale
$ 10,631 
$ 1,038 
Earnings Per Share and Per Unit (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Numerator:
 
 
 
 
Income from continuing operations
$ 26,891 
$ 24,512 
$ 47,726 
$ 37,704 
Net (income) attributable to noncontrolling interests in the Operating Partnership from continuing operations
(782)
(742)
(1,378)
(1,128)
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(328)
(438)
(624)
(861)
Dividends on Preferred Stock
(626)
(627)
(1,253)
(1,254)
Income from continuing operations available for common stockholders
25,155 
22,705 
44,471 
34,461 
Income from discontinued operations
0 
0 
0 
384 
Net (income) attributable to noncontrolling interests in the Operating Partnership from discontinued operations
0 
0 
0 
(12)
Income from discontinued operations available for common stockholders
0 
0 
0 
372 
Net income available for common stockholders
25,155 
22,705 
44,471 
34,833 
Denominator:
 
 
 
 
Denominator for basic earnings per Common Share - weighted average shares (in shares)
94,055,000 
90,254,000 
93,641,000 
90,111,000 
Earnings per Common Share - basic:
 
 
 
 
Income from continuing operations available for common stockholders (in dollars per share)
$ 0.27 
$ 0.25 
$ 0.47 
$ 0.38 
Income from discontinued operations available for common stockholders (in dollars per share)
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.01 
Net income available for common stockholders (in dollars per share)
$ 0.27 
$ 0.25 
$ 0.47 
$ 0.39 
Numerator:
 
 
 
 
Income from continuing operations
26,891 
24,512 
47,726 
37,704 
Net (income) attributable to noncontrolling interests in consolidated affiliates
(328)
(438)
(624)
(861)
Dividends on Preferred Stock
(626)
(627)
(1,253)
(1,254)
Income from continuing operations available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
25,937 
23,447 
45,849 
35,589 
Income from discontinued operations available for common stockholders
0 
0 
0 
384 
Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
25,937 
23,447 
45,849 
35,973 
Denominator:
 
 
 
 
Denominator for basic earnings per Common Share - weighted average shares (in shares)
94,055,000 
90,254,000 
93,641,000 
90,111,000 
Stock options using the treasury method
84,000 
121,000 
104,000 
123,000 
Noncontrolling interests Common Units
2,910,000 
2,937,000 
2,921,000 
2,938,000 
Denominator for diluted earnings per Common Share - adjusted weighted average shares and assumed conversions (in shares)
97,049,000 1 2
93,312,000 1 2
96,666,000 1 2
93,172,000 1 2
Earnings per Common Share - diluted:
 
 
 
 
Income from continuing operations available for common stockholders (in dollars per share)
$ 0.27 
$ 0.25 
$ 0.47 
$ 0.38 
Income from discontinued operations available for common stockholders (in dollars per share)
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.01 
Net income available for common stockholders (in dollars per share)
$ 0.27 
$ 0.25 
$ 0.47 
$ 0.39 
Earnings Per Share and Per Unit, Basic and Diluted, Other Disclosures [Abstract]
 
 
 
 
Number of anti-dilutive options and warrants not included in earnings per share (in shares)
222,000.000 
 
197,000.000 
166,000.000 
Highwoods Realty Limited Partnership [Member]
 
 
 
 
Numerator:
 
 
 
 
Income from continuing operations
26,891 
24,512 
47,726 
37,704 
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(328)
(438)
(624)
(861)
Distributions on Preferred Units
(626)
(627)
(1,253)
(1,254)
Income from continuing operations available for common unitholders
25,937 
23,447 
45,849 
35,589 
Income from discontinued operations available for common unitholders
0 
0 
0 
384 
Net income available for common unitholders
25,937 
23,447 
45,849 
35,973 
Denominator:
 
 
 
 
Denominator for basic earnings per Common Unit - weighted average units (in shares)
96,556,000 
92,782,000 
96,153,000 
92,640,000 
Earnings per Common Unit - basic:
 
 
 
 
Income from continuing operations available for common unitholders (in dollars per share)
$ 0.27 
$ 0.25 
$ 0.48 
$ 0.38 
Income from discontinued operations available for common unitholders (in dollars per share)
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.01 
Net income available for common unitholders (in dollars per share)
$ 0.27 
$ 0.25 
$ 0.48 
$ 0.39 
Numerator:
 
 
 
 
Income from continuing operations
26,891 
24,512 
47,726 
37,704 
Net (income) attributable to noncontrolling interests in consolidated affiliates
(328)
(438)
(624)
(861)
Distributions on Preferred Units
(626)
(627)
(1,253)
(1,254)
Income from continuing operations available for common unitholders
25,937 
23,447 
45,849 
35,589 
Income from discontinued operations available for common unitholders
0 
0 
0 
384 
Net income available for common unitholders
$ 25,937 
$ 23,447 
$ 45,849 
$ 35,973 
Denominator:
 
 
 
 
Denominator for basic earnings per Common Unit - weighted average units (in shares)
96,556,000 
92,782,000 
96,153,000 
92,640,000 
Stock options using the treasury method
84,000 
121,000 
104,000 
123,000 
Denominator for diluted earnings per Common Unit - adjusted weighted average units and assumed conversions (in shares)
96,640,000 2 3
92,903,000 2 3
96,257,000 2 3
92,763,000 2 3
Earnings per Common Unit - diluted:
 
 
 
 
Income from continuing operations available for common unitholders (in dollars per share)
$ 0.27 
$ 0.25 
$ 0.48 
$ 0.38 
Income from discontinued operations available for common unitholders (in dollars per share)
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.01 
Net income available for common unitholders (in dollars per share)
$ 0.27 
$ 0.25 
$ 0.48 
$ 0.39 
Earnings Per Share and Per Unit, Basic and Diluted, Other Disclosures [Abstract]
 
 
 
 
Number of anti-dilutive options and warrants not included in earnings per share (in shares)
222,000.000 
 
197,000.000 
166,000.000 
Segment Information (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
$ 161,136 
$ 152,722 
$ 318,446 
$ 301,175 
Total Net Operating Income
103,858 
97,447 
203,655 
189,510 
Reconciliation to income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates:
 
 
 
 
Depreciation and amortization
(51,240)
(50,443)
(101,548)
(98,608)
Impairments of real estate assets
0 
(588)
0 
(588)
General and administrative expenses
(8,892)
(8,733)
(20,329)
(19,447)
Interest expense
(22,002)
(21,213)
(43,425)
(42,575)
Other income
979 
1,428 
2,217 
2,827 
Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates
22,703 
17,898 
40,570 
31,119 
Total Office Segment [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
148,984 
140,146 
294,807 
276,489 
Total Net Operating Income
96,341 
89,402 
189,320 
174,249 
Office Atlanta, GA [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
25,611 
23,627 
50,393 
46,604 
Total Net Operating Income
15,663 
14,321 
31,030 
28,018 
Office Greensboro, NC [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
5,398 
6,580 
10,838 
13,030 
Total Net Operating Income
3,516 
4,249 
6,942 
8,247 
Office Greenville, SC [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
0 
767 
0 
1,608 
Total Net Operating Income
0 
390 
0 
865 
Office Kansas City, MO [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
4,142 
4,086 
8,358 
8,183 
Total Net Operating Income
2,713 
2,698 
5,462 
5,303 
Office Memphis, TN [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
12,050 
10,055 
23,784 
19,890 
Total Net Operating Income
7,641 
5,789 
15,030 
11,396 
Office Nashville, TN [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
21,770 
20,182 
43,586 
39,787 
Total Net Operating Income
15,480 
13,999 
30,712 
27,152 
Office Orlando, FL [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
10,948 
9,148 
21,782 
18,068 
Total Net Operating Income
6,348 
5,346 
12,831 
10,722 
Office Pittsburgh, PA [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
14,719 
14,014 
29,268 
27,771 
Total Net Operating Income
8,670 
7,988 
16,632 
15,181 
Office Raleigh, NC [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
25,541 
22,538 
48,982 
44,029 
Total Net Operating Income
18,358 
16,326 
34,629 
31,358 
Office Richmond, VA [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
10,203 
12,020 
20,787 
23,763 
Total Net Operating Income
6,932 
8,265 
13,812 
15,941 
Office Tampa, FL [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
18,602 
17,129 
37,029 
33,756 
Total Net Operating Income
11,020 
10,031 
22,240 
20,066 
Total Retail Segment [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
9,140 
9,366 
17,703 
18,584 
Total Net Operating Income
5,351 
5,764 
10,063 
11,029 
Retail Kansas City, MO [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
9,140 
9,366 
17,703 
18,584 
Total Net Operating Income
5,351 
5,764 
10,063 
11,029 
Other [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
3,012 
3,210 
5,936 
6,102 
Total Net Operating Income
$ 2,166 
$ 2,281 
$ 4,272 
$ 4,232 
Subsequent Events (Details) (USD $)
3 Months Ended 6 Months Ended 1 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Jul. 23, 2015
3Q15 Building Dispositions [Member]
Subsequent Event [Member]
Subsequent Event [Line Items]
 
 
 
 
 
Purchase price of real estate
 
 
 
 
$ 15,300,000 
Gain on disposition of property
$ 2,412,000 
$ 5,947,000 
$ 3,569,000 
$ 5,947,000 
$ 6,500,000