HIGHWOODS PROPERTIES, INC., 10-Q filed on 4/25/2017
Quarterly Report
v3.7.0.1
Document and Entity Information Document - shares
3 Months Ended
Mar. 31, 2017
Apr. 18, 2017
Entity Information [Line Items]    
Entity Registrant Name HIGHWOODS PROPERTIES INC.  
Entity Central Index Key 0000921082  
Current Fiscal Year End Date --12-31  
Entity Filer Category Large Accelerated Filer  
Document Type 10-Q  
Document Period End Date Mar. 31, 2017  
Document Fiscal Year Focus 2017  
Document Fiscal Period Focus Q1  
Amendment Flag false  
Entity Common Stock, Shares Outstanding   102,019,691
Highwoods Realty Limited Partnership [Member]    
Entity Information [Line Items]    
Entity Registrant Name HIGHWOODS REALTY LIMITED PARTNERSHIP  
Entity Central Index Key 0000941713  
Current Fiscal Year End Date --12-31  
Entity Filer Category Non-accelerated Filer  
Document Type 10-Q  
Document Period End Date Mar. 31, 2017  
Document Fiscal Year Focus 2017  
Document Fiscal Period Focus Q1  
Amendment Flag false  
v3.7.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Mar. 31, 2017
Dec. 31, 2016
Real estate assets, at cost:    
Land $ 474,661 $ 474,375
Buildings and tenant improvements 4,326,570 4,313,373
Development in-process 327,446 279,602
Land held for development 84,056 77,355
Total real estate assets 5,212,733 5,144,705
Less-accumulated depreciation (1,166,865) (1,134,103)
Net real estate assets 4,045,868 4,010,602
Cash and cash equivalents 4,918 49,490
Restricted cash 29,241 29,141
Accounts receivable, net of allowance of $491 and $624, respectively 15,814 17,372
Mortgages and notes receivable, net of allowance of $96 and $105, respectively 7,787 8,833
Accrued straight-line rents receivable, net of allowance of $242 and $692, respectively 178,872 172,829
Investments in and advances to unconsolidated affiliates 14,822 18,846
Deferred leasing costs, net of accumulated amortization of $142,148 and $140,081, respectively 210,141 213,500
Prepaid expenses and other assets, net of accumulated amortization of $20,695 and $19,904, respectively 41,353 40,437
Total Assets 4,548,816 4,561,050
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Liabilities, Redeemable Operating Partnership Units and Capital:    
Mortgages and notes payable, net 2,042,486 1,948,047
Accounts payable, accrued expenses and other liabilities 207,144 313,885
Total Liabilities 2,249,630 2,261,932
Commitments and contingencies
Noncontrolling interests in the Operating Partnership 139,367 144,802
Equity/Capital:    
Preferred Stock, $.01 par value, 50,000,000 authorized shares; 8.625% Series A Cumulative Redeemable Preferred Shares (liquidation preference $1,000 per share), 28,905 and 28,920 shares issued and outstanding, respectively 28,905 28,920
Common Stock, $.01 par value, 200,000,000 authorized shares; 102,018,119 and 101,665,554 shares issued and outstanding, respectively 1,020 1,017
Additional paid-in capital 2,868,869 2,850,881
Distributions in excess of net income available for common stockholders (762,655) (749,412)
Accumulated other comprehensive income 5,885 4,949
Total Stockholders’ Equity 2,142,024 2,136,355
Noncontrolling interests in consolidated affiliates 17,795 17,961
Total Equity/Capital 2,159,819 2,154,316
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Capital 4,548,816 4,561,050
Highwoods Realty Limited Partnership [Member]    
Real estate assets, at cost:    
Land 474,661 474,375
Buildings and tenant improvements 4,326,570 4,313,373
Development in-process 327,446 279,602
Land held for development 84,056 77,355
Total real estate assets 5,212,733 5,144,705
Less-accumulated depreciation (1,166,865) (1,134,103)
Net real estate assets 4,045,868 4,010,602
Cash and cash equivalents 4,918 49,490
Restricted cash 29,241 29,141
Accounts receivable, net of allowance of $491 and $624, respectively 15,814 17,372
Mortgages and notes receivable, net of allowance of $96 and $105, respectively 7,787 8,833
Accrued straight-line rents receivable, net of allowance of $242 and $692, respectively 178,872 172,829
Investments in and advances to unconsolidated affiliates 14,822 18,846
Deferred leasing costs, net of accumulated amortization of $142,148 and $140,081, respectively 210,141 213,500
Prepaid expenses and other assets, net of accumulated amortization of $20,695 and $19,904, respectively 41,353 40,437
Total Assets 4,548,816 4,561,050
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Liabilities, Redeemable Operating Partnership Units and Capital:    
Mortgages and notes payable, net 2,042,486 1,948,047
Accounts payable, accrued expenses and other liabilities 207,144 313,885
Total Liabilities 2,249,630 2,261,932
Commitments and contingencies
Redeemable Operating Partnership Units:    
Common Units, 2,836,704 and 2,838,704 outstanding, respectively 139,367 144,802
Series A Preferred Units (liquidation preference $1,000 per unit), 28,905 and 28,920 units issued and outstanding, respectively 28,905 28,920
Total Redeemable Operating Partnership Units 168,272 173,722
Equity/Capital:    
General partner Common Units, 1,044,460 and 1,040,954 outstanding, respectively 21,070 21,023
Limited partner Common Units, 100,564,850 and 100,215,791 outstanding, respectively 2,086,164 2,081,463
Accumulated other comprehensive income 5,885 4,949
Noncontrolling interests in consolidated affiliates 17,795 17,961
Total Equity/Capital 2,130,914 2,125,396
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Capital $ 4,548,816 $ 4,561,050
v3.7.0.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2017
Dec. 31, 2016
Assets:    
Accounts receivable allowance $ 491 $ 624
Mortgages and notes receivable allowance 96 105
Accrued straight-line rents receivable allowance 242 692
Deferred leasing costs, accumulated amortization 142,148 140,081
Prepaid expenses and other assets, accumulated amortization $ 20,695 $ 19,904
Equity/Capital:    
Series A Preferred Stock, dividend rate percentage (in hundredths) 8.625% 8.625%
Series A Preferred Stock, par value (in dollars per share) $ 0.01 $ 0.01
Series A Preferred Stock, authorized shares (in shares) 50,000,000 50,000,000
Series A Preferred Stock, liquidation preference (in dollars per share) $ 1,000 $ 1,000
Series A Preferred Stock, shares issued (in shares) 28,905 28,920
Series A Preferred Stock, shares outstanding (in shares) 28,905 28,920
Common Stock, par value (in dollars per share) $ 0.01 $ 0.01
Common Stock, authorized shares (in shares) 200,000,000 200,000,000
Common Stock, shares issued (in shares) 102,018,119 101,665,554
Common Stock, shares outstanding (in shares) 102,018,119 101,665,554
Highwoods Realty Limited Partnership [Member]    
Assets:    
Accounts receivable allowance $ 491 $ 624
Mortgages and notes receivable allowance 96 105
Accrued straight-line rents receivable allowance 242 692
Deferred leasing costs, accumulated amortization 142,148 140,081
Prepaid expenses and other assets, accumulated amortization $ 20,695 $ 19,904
Redeemable Operating Partnership Units: [Abstract]    
Redeemable Common Units outstanding (in shares) 2,836,704 2,838,704
Series A Preferred Units, liquidation preference (in dollars per share) $ 1,000 $ 1,000
Series A Preferred Units, issued (in shares) 28,905 28,920
Series A Preferred Units, outstanding (in shares) 28,905 28,920
Common Units: [Abstract]    
General partners' capital account, units outstanding (in shares) 1,044,460 1,040,954
Limited partners' capital account, units outstanding (in shares) 100,564,850 100,215,791
v3.7.0.1
Consolidated Statements of Income - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Rental and other revenues $ 169,408 $ 164,859
Operating expenses:    
Rental property and other expenses 57,396 57,580
Depreciation and amortization 56,145 53,494
General and administrative 11,490 11,137
Total operating expenses 125,031 122,211
Interest expense:    
Contractual 17,023 19,715
Amortization of debt issuance costs 840 990
Total interest expense 17,863 20,705
Other income:    
Interest and other income 684 517
Total other income 684 517
Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates 27,198 22,460
Gains on disposition of property 5,332 4,397
Equity in earnings of unconsolidated affiliates 955 1,285
Income from continuing operations 33,485 28,142
Discontinued operations:    
Income from discontinued operations 0 4,097
Net gains on disposition of discontinued operations 0 414,496
Total income from discontinued operations 0 418,593
Net income 33,485 446,735
Net (income) attributable to noncontrolling interests in the Operating Partnership (888) (13,011)
Net (income) attributable to noncontrolling interests in consolidated affiliates (300) (308)
Dividends on Preferred Stock (623) (626)
Net income available for common stockholders $ 31,674 $ 432,790
Earnings per Common Share – basic:    
Income from continuing operations available for common stockholders (in dollars per share) $ 0.31 $ 0.27
Income from discontinued operations available for common stockholders (in dollars per share) 0.00 4.22
Net income available for common stockholders (in dollars per share) $ 0.31 $ 4.49
Weighted average Common Shares outstanding - basic (in shares) 101,738 96,373
Earnings per Common Share - diluted:    
Income from continuing operations available for common stockholders (in dollars per share) $ 0.31 $ 0.27
Income from discontinued operations available for common stockholders (in dollars per share) 0.00 4.22
Net income available for common stockholders (in dollars per share) $ 0.31 $ 4.49
Weighted average Common Shares outstanding - diluted (in shares) 104,661 99,357
Dividends declared per Common Share (in dollars per share) $ 0.440 $ 0.425
Net income available for common stockholders:    
Income from continuing operations available for common stockholders $ 31,674 $ 26,462
Income from discontinued operations available for common stockholders 0 406,328
Net income available for common stockholders 31,674 432,790
Highwoods Realty Limited Partnership [Member]    
Rental and other revenues 169,408 164,859
Operating expenses:    
Rental property and other expenses 57,396 57,580
Depreciation and amortization 56,145 53,494
General and administrative 11,490 11,137
Total operating expenses 125,031 122,211
Interest expense:    
Contractual 17,023 19,715
Amortization of debt issuance costs 840 990
Total interest expense 17,863 20,705
Other income:    
Interest and other income 684 517
Total other income 684 517
Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates 27,198 22,460
Gains on disposition of property 5,332 4,397
Equity in earnings of unconsolidated affiliates 955 1,285
Income from continuing operations 33,485 28,142
Discontinued operations:    
Income from discontinued operations 0 4,097
Net gains on disposition of discontinued operations 0 414,496
Total income from discontinued operations 0 418,593
Net income 33,485 446,735
Net (income) attributable to noncontrolling interests in consolidated affiliates (300) (308)
Distributions on Preferred Units (623) (626)
Net income available for common unitholders $ 32,562 $ 445,801
Earnings per Common Unit - basic:    
Income from continuing operations available for common unitholders (in dollars per share) $ 0.31 $ 0.28
Income from discontinued operations available for common unitholders (in dollars per share) 0.00 4.23
Net income available for common unitholders (in dollars per share) $ 0.31 $ 4.51
Weighted average Common Units outstanding - basic (in shares) 104,167 98,864
Earnings per Common Unit - diluted:    
Income from continuing operations available for common unitholders (in dollars per share) $ 0.31 $ 0.28
Income from discontinued operations available for common unitholders (in dollars per share) 0.00 4.23
Net income available for common unitholders (in dollars per share) $ 0.31 $ 4.51
Weighted average Common Units outstanding - diluted (in shares) 104,252 98,948
Distributions declared per Common Unit (in dollars per unit) $ 0.44 $ 0.425
Net income available for common unitholders:    
Income from continuing operations available for common unitholders $ 32,562 $ 27,208
Income from discontinued operations available for common unitholders 0 418,593
Net income available for common unitholders $ 32,562 $ 445,801
v3.7.0.1
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Comprehensive income:    
Net income $ 33,485 $ 446,735
Other comprehensive income/(loss):    
Unrealized gains/(losses) on cash flow hedges 452 (3,635)
Amortization of cash flow hedges 484 795
Total other comprehensive income/(loss) 936 (2,840)
Total comprehensive income 34,421 443,895
Less-comprehensive (income) attributable to noncontrolling interests (1,188) (13,319)
Comprehensive income attributable to common stockholders/Comprehensive income attributable to common unitholders 33,233 430,576
Highwoods Realty Limited Partnership [Member]    
Comprehensive income:    
Net income 33,485 446,735
Other comprehensive income/(loss):    
Unrealized gains/(losses) on cash flow hedges 452 (3,635)
Amortization of cash flow hedges 484 795
Total other comprehensive income/(loss) 936 (2,840)
Total comprehensive income 34,421 443,895
Less-comprehensive (income) attributable to noncontrolling interests (300) (308)
Comprehensive income attributable to common stockholders/Comprehensive income attributable to common unitholders $ 34,121 $ 443,587
v3.7.0.1
Consolidated Statements of Equity/Capital - USD ($)
$ in Thousands
Total
Highwoods Realty Limited Partnership [Member]
Common Stock [Member]
Series A Cumulative Redeemable Preferred Shares [Member]
General Partners' Common Units [Member]
Highwoods Realty Limited Partnership [Member]
Limited Partners' Common Units [Member]
Highwoods Realty Limited Partnership [Member]
Additional Paid-in Capital [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Highwoods Realty Limited Partnership [Member]
Noncontrolling Interests in Consolidated Affiliates [Member]
Noncontrolling Interests in Consolidated Affiliates [Member]
Highwoods Realty Limited Partnership [Member]
Distributions in Excess of Net Income Available for Common Stockholders [Member]
Balance (in shares) at Dec. 31, 2015     96,091,932                  
Balance at Dec. 31, 2015 $ 1,619,282 $ 1,590,232 $ 961 $ 29,050 $ 15,759 $ 1,560,309 $ 2,598,242 $ (3,811) $ (3,811) $ 17,975 $ 17,975 $ (1,023,135)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                        
Issuances of Common Units, net of issuance costs and tax withholdings   50,898     509 50,389     0   0  
Distributions on Common Units   (41,939)     (419) (41,520)     0   0  
Distributions on Preferred Units   (626)     (6) (620)     0   0  
Issuances of Common Stock, net of issuance costs and tax withholdings - Shares     1,177,885                  
Issuances of Common Stock, net of issuance costs and tax withholdings 50,898   $ 12 0     50,886 0   0   0
Conversions of Common Units to Common Stock 0                      
Dividends on Common Stock (40,881)   0 0     0 0   0   (40,881)
Dividends on Preferred Stock (626)   0 0     0 0   0   (626)
Adjustment of noncontrolling interests in the Operating Partnership to fair value (429)   0 0     (429) 0   0   0
Distributions to noncontrolling interests in consolidated affiliates (320) (320) $ 0 0 0 0 0 0 0 (320) (320) 0
Issuances of restricted stock - shares     122,832                  
Issuances of restricted stock 0   $ 0 0     0 0   0   0
Redemptions/repurchases of Preferred Stock (20)   $ 0 (20)     0 0   0   0
Share-based compensation expense, net of forfeitures - shares     (348)                  
Share-based compensation expense, net of forfeitures 3,556 3,556 $ 1 0 36 3,520 3,555 0 0 0 0 0
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner   (12,382)     (124) (12,258)     0   0  
Net (income) attributable to noncontrolling interests in the Operating Partnership (13,011)   0 0     0 0   0   (13,011)
Net (income) attributable to noncontrolling interests in consolidated affiliates 0 0 0 0 (3) (305) 0 0 0 308 308 (308)
Comprehensive income:                        
Net income 446,735 446,735 0 0 4,467 442,268 0 0 0 0 0 446,735
Other comprehensive income/(loss) (2,840) (2,840) $ 0 0 0 0 0 (2,840) (2,840) 0 0 0
Total comprehensive income 443,895 443,895                    
Balance (in shares) at Mar. 31, 2016     97,392,301                  
Balance at Mar. 31, 2016 $ 2,062,344 2,033,314 $ 974 29,030 20,219 2,001,783 2,652,254 (6,651) (6,651) 17,963 17,963 (631,226)
Balance (in shares) at Dec. 31, 2016 101,665,554   101,665,554                  
Balance at Dec. 31, 2016 $ 2,154,316 2,125,396 $ 1,017 28,920 21,023 2,081,463 2,850,881 4,949 4,949 17,961 17,961 (749,412)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                        
Issuances of Common Units, net of issuance costs and tax withholdings   9,134     91 9,043     0   0  
Distributions on Common Units   (45,986)     (460) (45,526)     0   0  
Distributions on Preferred Units   (623)     (6) (617)     0   0  
Issuances of Common Stock, net of issuance costs and tax withholdings - Shares     239,817                  
Issuances of Common Stock, net of issuance costs and tax withholdings 9,134   $ 2 0     9,132 0   0   0
Conversions of Common Units to Common Stock - Shares     2,000                  
Conversions of Common Units to Common Stock 102   $ 0 0     102 0   0   0
Dividends on Common Stock (44,917)   0 0     0 0   0   (44,917)
Dividends on Preferred Stock (623)   0 0     0 0   0   (623)
Adjustment of noncontrolling interests in the Operating Partnership to fair value 4,972   0 0     4,972 0   0   0
Distributions to noncontrolling interests in consolidated affiliates (466) (466) $ 0 0 0 0 0 0 0 (466) (466) 0
Issuances of restricted stock - shares     110,748                  
Issuances of restricted stock 0   $ 0 0     0 0   0   0
Redemptions/repurchases of Preferred Stock (15)   $ 0 (15)     0 0   0   0
Share-based compensation expense, net of forfeitures - shares     0                  
Share-based compensation expense, net of forfeitures 3,783 3,783 $ 1 0 38 3,745 3,782 0 0 0 0 0
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner   5,255     52 5,203     0   0  
Net (income) attributable to noncontrolling interests in the Operating Partnership (888)   0 0     0 0   0   (888)
Net (income) attributable to noncontrolling interests in consolidated affiliates 0 0 0 0 (3) (297) 0 0 0 300 300 (300)
Comprehensive income:                        
Net income 33,485 33,485 0 0 335 33,150 0 0 0 0 0 33,485
Other comprehensive income/(loss) 936 936 $ 0 0 0 0 0 936 936 0 0 0
Total comprehensive income $ 34,421 34,421                    
Balance (in shares) at Mar. 31, 2017 102,018,119   102,018,119                  
Balance at Mar. 31, 2017 $ 2,159,819 $ 2,130,914 $ 1,020 $ 28,905 $ 21,070 $ 2,086,164 $ 2,868,869 $ 5,885 $ 5,885 $ 17,795 $ 17,795 $ (762,655)
v3.7.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Operating activities:    
Net income $ 33,485 $ 446,735
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 56,145 53,494
Amortization of lease incentives and acquisition-related intangible assets and liabilities (10) 108
Share-based compensation expense 3,783 3,556
Allowance for losses on accounts and accrued straight-line rents receivable 61 1,077
Accrued interest on mortgages and notes receivable (132) (42)
Amortization of debt issuance costs 840 990
Amortization of cash flow hedges 484 795
Amortization of mortgages and notes payable fair value adjustments (30) (59)
Net gains on disposition of property (5,332) (418,893)
Equity in earnings of unconsolidated affiliates (955) (1,285)
Distributions of earnings from unconsolidated affiliates 2,431 717
Settlement of cash flow hedges 7,322 0
Changes in operating assets and liabilities:    
Accounts receivable 3,922 601
Prepaid expenses and other assets (5,959) (6,577)
Accrued straight-line rents receivable (6,185) (6,624)
Accounts payable, accrued expenses and other liabilities (20,951) (26,358)
Net cash provided by operating activities 68,919 48,235
Investing activities:    
Investments in development in-process (59,408) (33,188)
Investments in tenant improvements and deferred leasing costs (24,649) (23,513)
Investments in building improvements (17,194) (16,479)
Net proceeds from disposition of real estate assets 11,532 661,390
Distributions of capital from unconsolidated affiliates 6,512 2,118
Investments in mortgages and notes receivable 0 (7,602)
Repayments of mortgages and notes receivable 1,178 79
Investments in and advances to unconsolidated affiliates 0 (105)
Changes in restricted cash and other investing activities (1,696) (248,865)
Net cash provided by/(used in) investing activities (83,725) 333,835
Financing activities:    
Dividends on Common Stock (44,917) (40,881)
Special dividend on Common Stock (81,205) 0
Redemptions/repurchases of Preferred Stock (15) (20)
Dividends on Preferred Stock (623) (626)
Distributions to noncontrolling interests in the Operating Partnership (1,249) (1,232)
Special distribution to noncontrolling interests in the Operating Partnership (2,271) 0
Distributions to noncontrolling interests in consolidated affiliates (466) (320)
Proceeds from the issuance of Common Stock 13,191 54,915
Costs paid for the issuance of Common Stock (250) (788)
Repurchase of shares related to tax withholdings (3,807) (3,229)
Borrowings on revolving credit facility 200,300 66,400
Repayments of revolving credit facility (69,300) (107,400)
Borrowings on mortgages and notes payable 346,001 0
Repayments of mortgages and notes payable (380,261) (350,535)
Changes in debt issuance costs and other financing activities (4,894) (45)
Net cash used in financing activities (29,766) (383,761)
Net decrease in cash and cash equivalents (44,572) (1,691)
Cash and cash equivalents at beginning of the period 49,490 5,036
Cash and cash equivalents at end of the period 4,918 3,345
Supplemental disclosure of cash flow information:    
Cash paid for interest, net of amounts capitalized 18,909 20,951
Supplemental disclosure of non-cash investing and financing activities:    
Unrealized gains/(losses) on cash flow hedges 452 (3,635)
Conversions of Common Units to Common Stock 102 0
Changes in accrued capital expenditures (6,741) (5,978)
Write-off of fully depreciated real estate assets 10,649 12,579
Write-off of fully amortized debt issuance and leasing costs 13,252 5,282
Adjustment of noncontrolling interests in the Operating Partnership to fair value (4,972) 429
Highwoods Realty Limited Partnership [Member]    
Operating activities:    
Net income 33,485 446,735
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 56,145 53,494
Amortization of lease incentives and acquisition-related intangible assets and liabilities (10) 108
Share-based compensation expense 3,783 3,556
Allowance for losses on accounts and accrued straight-line rents receivable 61 1,077
Accrued interest on mortgages and notes receivable (132) (42)
Amortization of debt issuance costs 840 990
Amortization of cash flow hedges 484 795
Amortization of mortgages and notes payable fair value adjustments (30) (59)
Net gains on disposition of property (5,332) (418,893)
Equity in earnings of unconsolidated affiliates (955) (1,285)
Distributions of earnings from unconsolidated affiliates 2,431 717
Settlement of cash flow hedges 7,322 0
Changes in operating assets and liabilities:    
Accounts receivable 3,922 601
Prepaid expenses and other assets (5,959) (6,577)
Accrued straight-line rents receivable (6,185) (6,624)
Accounts payable, accrued expenses and other liabilities (20,951) (26,358)
Net cash provided by operating activities 68,919 48,235
Investing activities:    
Investments in development in-process (59,408) (33,188)
Investments in tenant improvements and deferred leasing costs (24,649) (23,513)
Investments in building improvements (17,194) (16,479)
Net proceeds from disposition of real estate assets 11,532 661,390
Distributions of capital from unconsolidated affiliates 6,512 2,118
Investments in mortgages and notes receivable 0 (7,602)
Repayments of mortgages and notes receivable 1,178 79
Investments in and advances to unconsolidated affiliates 0 (105)
Changes in restricted cash and other investing activities (1,696) (248,865)
Net cash provided by/(used in) investing activities (83,725) 333,835
Financing activities:    
Distributions on Common Units (45,986) (41,939)
Special distribution on Common Units (83,149) 0
Redemptions/repurchases of Preferred Units (15) (20)
Distributions on Preferred Units (623) (626)
Distributions to noncontrolling interests in consolidated affiliates (466) (320)
Proceeds from the issuance of Common Units 13,191 54,915
Costs paid for the issuance of Common Units (250) (788)
Repurchase of units related to tax withholdings (3,807) (3,229)
Borrowings on revolving credit facility 200,300 66,400
Repayments of revolving credit facility (69,300) (107,400)
Borrowings on mortgages and notes payable 346,001 0
Repayments of mortgages and notes payable (380,261) (350,535)
Changes in debt issuance costs and other financing activities (5,401) (219)
Net cash used in financing activities (29,766) (383,761)
Net decrease in cash and cash equivalents (44,572) (1,691)
Cash and cash equivalents at beginning of the period 49,490 5,036
Cash and cash equivalents at end of the period 4,918 3,345
Supplemental disclosure of cash flow information:    
Cash paid for interest, net of amounts capitalized 18,909 20,951
Supplemental disclosure of non-cash investing and financing activities:    
Unrealized gains/(losses) on cash flow hedges 452 (3,635)
Changes in accrued capital expenditures (6,741) (5,978)
Write-off of fully depreciated real estate assets 10,649 12,579
Write-off of fully amortized debt issuance and leasing costs 13,252 5,282
Adjustment of Redeemable Common Units to fair value $ (5,435) $ 12,208
v3.7.0.1
Description of Business and Significant Accounting Policies
3 Months Ended
Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business and Significant Accounting Policies
Description of Business and Significant Accounting Policies

Description of Business

Highwoods Properties, Inc. (the “Company”) is a fully integrated real estate investment trust (“REIT”) that provides leasing, management, development, construction and other customer-related services for its properties and for third parties. The Company conducts its activities through Highwoods Realty Limited Partnership (the “Operating Partnership”). At March 31, 2017, we owned or had an interest in 31.3 million rentable square feet of in-service properties, 1.2 million rentable square feet of properties under development and approximately 400 acres of development land.
 
The Company is the sole general partner of the Operating Partnership. At March 31, 2017, the Company owned all of the Preferred Units and 101.6 million, or 97.3%, of the Common Units in the Operating Partnership. Limited partners owned the remaining 2.8 million Common Units. During the three months ended March 31, 2017, the Company redeemed 2,000 Common Units for a like number of shares of Common Stock.

Common Stock Offerings
 
During the first quarter of 2017, we entered into separate equity distribution agreements in which the Company may offer and sell up to $300.0 million in aggregate gross sales price of shares of Common Stock. During the three months ended March 31, 2017, the Company issued 186,185 shares of Common Stock under its equity distribution agreements at an average gross sales price of $49.73 per share and received net proceeds, after sales commissions, of $9.1 million.

Basis of Presentation
 
Our Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

The Company's Consolidated Financial Statements include the Operating Partnership, wholly owned subsidiaries and those entities in which the Company has the controlling interest. The Operating Partnership's Consolidated Financial Statements include wholly owned subsidiaries and those entities in which the Operating Partnership has the controlling interest. All intercompany transactions and accounts have been eliminated.

The unaudited interim consolidated financial statements and accompanying unaudited consolidated financial information, in the opinion of management, contain all adjustments (including normal recurring accruals) necessary for a fair presentation of our financial position, results of operations and cash flows. We have condensed or omitted certain notes and other information from the interim Consolidated Financial Statements presented in this Quarterly Report as permitted by SEC rules and regulations. These Consolidated Financial Statements should be read in conjunction with our 2016 Annual Report on Form 10-K.

Use of Estimates

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

1.    Description of Business and Significant Accounting Policies – Continued

Recently Issued Accounting Standards

The Financial Accounting Standards Board ("FASB") issued an accounting standards update ("ASU") that requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that we identify the contract with the customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when we satisfy the performance obligations. We will also be required to disclose information regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The ASU is required to be adopted in 2018. Retrospective application is required either to all periods presented or with the cumulative effect of initial adoption recognized in the period of adoption. Our initial analysis of our non-lease related revenue contracts indicates that the adoption of this ASU will not have a material effect on our Consolidated Financial Statements; however, we are still in the process of evaluating this ASU.
 
The FASB issued an ASU that adds to and clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows. The ASU is required to be adopted in 2018 with retrospective application required. We do not expect such adoption to have a material effect on our Consolidated Statements of Cash Flows.

The FASB issued an ASU that clarifies and narrows the definition of a business used in determining whether to account for a transaction as an asset acquisition or business combination. The guidance requires evaluation of the fair value of the assets acquired to determine if it is concentrated in a single identifiable asset or a group of similar identifiable assets. If so, the transferred assets would not be a business. The guidance also requires a business to include at least one substantive process and narrows the definition of outputs. The ASU is required to be adopted in 2018 and applied prospectively. We are in the process of evaluating this ASU.

The FASB issued an ASU which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The ASU requires lessors to account for leases using an approach that is substantially equivalent to the existing guidance and is effective for reporting periods beginning in 2019 with early adoption permitted. We are in the process of evaluating this ASU.

The FASB issued an ASU that requires, among other things, the use of a new current expected credit loss ("CECL") model in determining our allowances for doubtful accounts with respect to accounts receivable, accrued straight-line rents receivable and mortgages and notes receivable. The CECL model requires that we estimate our lifetime expected credit loss with respect to these receivables and record allowances that, when deducted from the balance of the receivables, represent the net amounts expected to be collected. We will also be required to disclose information about how we developed the allowances, including changes in the factors (e.g., portfolio mix, credit trends, unemployment, gross domestic product, etc.) that influenced our estimate of expected credit losses and the reasons for those changes. We will apply the ASU’s provisions as a cumulative-effect adjustment to retained earnings upon adoption in 2020. We are in the process of evaluating this ASU.
v3.7.0.1
Real Estate Assets
3 Months Ended
Mar. 31, 2017
Real Estate [Abstract]  
Real Estate Assets
Real Estate Assets
During the first quarter of 2017, we sold a building for a sale price of $13.0 million (before closing credits to buyer of $1.2 million) and recorded a gain on disposition of property of $5.3 million.
v3.7.0.1
Mortgages and Notes Receivable
3 Months Ended
Mar. 31, 2017
Receivables [Abstract]  
Mortgages and Notes Receivable
Mortgages and Notes Receivable
Mortgages and notes receivable were $7.8 million and $8.8 million at March 31, 2017 and December 31, 2016, respectively. We evaluate the ability to collect our mortgages and notes receivable by monitoring the leasing statistics and/or market fundamentals of these assets. As of March 31, 2017, our mortgages and notes receivable were not in default and there were no other indicators of impairment.
v3.7.0.1
Intangible Assets and Below Market Lease Liabilities
3 Months Ended
Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Below Market Lease Liabilities
Intangible Assets and Below Market Lease Liabilities
 
The following table sets forth total intangible assets and acquisition-related below market lease liabilities, net of accumulated amortization:
 
 
March 31,
2017
 
December 31,
2016
Assets:
 
 
 
Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets)
$
352,289

 
$
353,581

Less accumulated amortization
(142,148
)
 
(140,081
)
 
$
210,141

 
$
213,500

 
 
 
 
Liabilities (in accounts payable, accrued expenses and other liabilities):
 
 
 
Acquisition-related below market lease liabilities
$
61,049

 
$
61,221

Less accumulated amortization
(24,482
)
 
(23,074
)
 
$
36,567

 
$
38,147

 
The following table sets forth amortization of intangible assets and below market lease liabilities:
 
 
Three Months Ended
March 31,
 
2017
 
2016
Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization)
$
10,619

 
$
11,335

Amortization of lease incentives (in rental and other revenues)
$
397

 
$
711

Amortization of acquisition-related intangible assets (in rental and other revenues)
$
1,036

 
$
1,031

Amortization of acquisition-related intangible assets (in rental property and other expenses)
$
137

 
$
138

Amortization of acquisition-related below market lease liabilities (in rental and other revenues)
$
(1,580
)
 
$
(1,772
)
 
4.    Intangible Assets and Below Market Lease Liabilities - Continued

The following table sets forth scheduled future amortization of intangible assets and below market lease liabilities:
 
 
 
Amortization of Deferred Leasing Costs and Acquisition-Related Intangible Assets (in Depreciation and Amortization)
 
Amortization of Lease Incentives (in Rental and Other Revenues)
 
Amortization of Acquisition-Related Intangible Assets (in Rental and Other Revenues)
 
Amortization of Acquisition-Related Intangible Assets (in Rental Property and Other Expenses)
 
Amortization of Acquisition-Related Below Market Lease Liabilities (in Rental and Other Revenues)
April 1 through December 31, 2017
 
$
31,933

 
$
1,155

 
$
1,815

 
$
412

 
$
(4,665
)
2018
 
35,918

 
1,432

 
1,680

 
553

 
(5,962
)
2019
 
30,251

 
1,214

 
1,286

 
553

 
(5,492
)
2020
 
25,543

 
936

 
967

 
525

 
(5,180
)
2021
 
21,315

 
729

 
647

 

 
(4,409
)
Thereafter
 
46,614

 
2,778

 
1,885

 

 
(10,859
)
 
 
$
191,574

 
$
8,244

 
$
8,280

 
$
2,043

 
$
(36,567
)
Weighted average remaining amortization periods as of March 31, 2017 (in years)
 
6.7

 
8.2

 
6.4

 
3.7

 
7.1

v3.7.0.1
Mortgages and Notes Payable
3 Months Ended
Mar. 31, 2017
Debt Disclosure [Abstract]  
Mortgages and Notes Payable
Mortgages and Notes Payable
 
The following table sets forth our mortgages and notes payable:
 
 
March 31,
2017
 
December 31,
2016
Secured indebtedness
$
127,358

 
$
128,204

Unsecured indebtedness
1,923,692

 
1,826,145

Less-unamortized debt issuance costs
(8,564
)
 
(6,302
)
Total mortgages and notes payable, net
$
2,042,486

 
$
1,948,047


 
At March 31, 2017, our secured mortgage loans were collateralized by real estate assets with an aggregate undepreciated book value of $254.2 million.

Our $475.0 million unsecured revolving credit facility is scheduled to mature in January 2018 and includes an accordion feature that allows for an additional $75.0 million of borrowing capacity subject to additional lender commitments. Assuming no defaults have occurred, we have an option to extend the maturity for two additional six-month periods. The interest rate at our current credit ratings is LIBOR plus 110 basis points and the annual facility fee is 20 basis points. There was $131.0 million and $130.0 million outstanding under our revolving credit facility at March 31, 2017 and April 18, 2017, respectively. At both March 31, 2017 and April 18, 2017, we had $0.2 million of outstanding letters of credit, which reduces the availability on our revolving credit facility. As a result, the unused capacity of our revolving credit facility at March 31, 2017 and April 18, 2017 was $343.8 million and $344.8 million, respectively.
 
During the first quarter of 2017, the Operating Partnership issued $300.0 million aggregate principal amount of 3.875% notes due 2027, less original issue discount of $4.0 million. These notes were priced to yield 4.038%. Underwriting fees and other expenses were incurred that aggregated $2.5 million; these costs were deferred and will be amortized over the term of the notes.

5.    Mortgages and Notes Payable - Continued

During the first quarter of 2017, we paid off at maturity $379.7 million principal amount of 5.85% unsecured notes.

During the first quarter of 2017, we amended our $150.0 million unsecured bank term loan that is scheduled to mature in January 2022 by increasing the borrowed amount to $200.0 million. The interest rate on this term loan at our current credit ratings is LIBOR plus 110 basis points. We incurred $0.3 million of debt issuance costs in connection with this amendment, which will be amortized along with existing unamortized debt issuance costs over the remaining term.
 
We are currently in compliance with financial covenants and other requirements with respect to our consolidated debt.

We have considered our short-term liquidity needs within one year from April 25, 2017 (the date of issuance of the quarterly financial statements) and the adequacy of our estimated cash flows from operating activities and other expected financing sources to meet these needs. In particular, we have considered our scheduled debt maturities during such one year period, including the $108.3 million secured loan due November 1, 2017 and the $200.0 million principal amount of unsecured notes due April 15, 2018. We have concluded it is probable we will meet these short-term liquidity requirements through a combination of the following:
 
available cash and cash equivalents;
 
cash flows from operating activities;
 
issuance of debt securities by the Operating Partnership;
 
issuance of secured debt (including the $100.0 million fixed-rate loan described in Note 14);

bank term loans;
 
borrowings under our revolving credit facility;
 
issuance of other secured debt;
 
issuance of equity securities by the Company or the Operating Partnership; and
 
the disposition of non-core assets.
v3.7.0.1
Derivative Financial Instruments
3 Months Ended
Mar. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments
Derivative Financial Instruments
 
During 2016, we obtained $150.0 million notional amount of forward-starting swaps that effectively locked the underlying 10-year treasury rate at 1.90% with respect to a planned issuance of debt securities by the Operating Partnership. The counterparties under the swaps were major financial institutions. Upon issuance of the $300.0 million aggregate principal amount of 3.875% notes due 2027 during the first quarter of 2017, we terminated the forward-starting swaps resulting in an unrealized gain of $7.3 million in accumulated other comprehensive income.

Our interest rate swaps have been designated as and are being accounted for as cash flow hedges with changes in fair value recorded in other comprehensive income/(loss) each reporting period. No gain or loss was recognized related to hedge ineffectiveness or to amounts excluded from effectiveness testing on our cash flow hedges during the three months ended March 31, 2017 and 2016. We have no collateral requirements related to our interest rate swaps.
 
Amounts reported in accumulated other comprehensive income/(loss) related to derivatives will be reclassified to interest expense as interest payments are made on our variable-rate debt. During the period from April 1, 2017 through March 31, 2018, we estimate that $0.5 million will be reclassified to interest expense.
 
The following table sets forth the gross fair value of our derivatives:
 
 
March 31,
2017
 
December 31,
2016
Derivatives:
 
 
 
Derivatives designated as cash flow hedges in prepaid expenses and other assets:
 
 
 
Interest rate swaps
$

 
$
7,619

Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities:
 
 
 
Interest rate swaps
$
1,001

 
$
1,870


 
The following table sets forth the effect of our cash flow hedges on accumulated other comprehensive income/(loss) and interest expense:
 
 
Three Months Ended
March 31,
 
2017
 
2016
Derivatives Designated as Cash Flow Hedges:
 
 
 
Amount of unrealized gains/(losses) recognized in accumulated other comprehensive income/(loss) on derivatives (effective portion):
 
 
 
Interest rate swaps
$
452

 
$
(3,635
)
Amount of net losses reclassified out of accumulated other comprehensive income/(loss) into contractual interest expense (effective portion):
 
 
 
Interest rate swaps
$
484

 
$
795

v3.7.0.1
Noncontrolling Interests
3 Months Ended
Mar. 31, 2017
Noncontrolling Interest [Abstract]  
Noncontrolling Interests
Noncontrolling Interests

Noncontrolling Interests in Consolidated Affiliates
 
At March 31, 2017, our noncontrolling interests in consolidated affiliates relate to our joint venture partner's 50.0% interest in office properties in Richmond. Our joint venture partner is an unrelated third party.

Noncontrolling Interests in the Operating Partnership

The following table sets forth the Company's noncontrolling interests in the Operating Partnership:
 
 
Three Months Ended
March 31,
 
2017
 
2016
Beginning noncontrolling interests in the Operating Partnership
$
144,802

 
$
126,429

Adjustment of noncontrolling interests in the Operating Partnership to fair value
(4,972
)
 
429

Conversions of Common Units to Common Stock
(102
)
 

Net income attributable to noncontrolling interests in the Operating Partnership
888

 
13,011

Distributions to noncontrolling interests in the Operating Partnership
(1,249
)
 
(1,232
)
Total noncontrolling interests in the Operating Partnership
$
139,367

 
$
138,637


The following table sets forth net income available for common stockholders and transfers from the Company's noncontrolling interests in the Operating Partnership:
 
 
Three Months Ended
March 31,
 
2017
 
2016
Net income available for common stockholders
$
31,674

 
$
432,790

Increase in additional paid in capital from conversions of Common Units
to Common Stock
102

 

Change from net income available for common stockholders and transfers from noncontrolling interests
$
31,776

 
$
432,790

v3.7.0.1
Disclosure About Fair Value of Financial Instruments
3 Months Ended
Mar. 31, 2017
Fair Value Disclosures [Abstract]  
Disclosure About Fair Value of Financial Instruments
Disclosure About Fair Value of Financial Instruments

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

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

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

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

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

The fair value of mortgages and notes receivable and mortgages and notes payable is estimated by the income approach utilizing contractual cash flows and market-based interest rates to approximate the price that would be paid in an orderly transaction between market participants. The fair value of interest rate swaps is determined using the market standard methodology of netting the discounted future fixed cash receipts and the discounted expected variable cash payments. The variable cash payments of interest rate swaps are based on the expectation of future interest rates (forward curves) derived from observed market interest rate curves. In addition, credit valuation adjustments are considered in the fair values to account for potential nonperformance risk, but were concluded to not be significant inputs to the calculation for the periods presented.
 
Level 3. Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
 
Our Level 3 asset consisted of our tax increment financing bond, which was not routinely traded but whose fair value was determined by the income approach utilizing contractual cash flows and market-based interest rates to estimate the projected redemption value based on quoted bid/ask prices for similar unrated municipal bonds. Our tax increment financing bond was assigned in conjunction with a sale during the first quarter of 2016. The estimated fair value at the date of sale of $11.2 million was equal to the outstanding principal amount due on the bond.
 

8.
Disclosure About Fair Value of Financial Instruments - Continued

The following table sets forth our assets and liabilities and the Company's noncontrolling interests in the Operating Partnership that are measured or disclosed at fair value within the fair value hierarchy.
 
 
 
 
Level 1
 
Level 2
 
 
Total
 
Quoted Prices
in Active
Markets for Identical Assets or Liabilities
 
Significant Observable Inputs
Fair Value at March 31, 2017:
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
Mortgages and notes receivable, at fair value (1)
 
$
7,787

 
$

 
$
7,787

Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
 
2,370

 
2,370

 

Total Assets
 
$
10,157

 
$
2,370

 
$
7,787

Noncontrolling Interests in the Operating Partnership
 
$
139,367

 
$
139,367

 
$

Liabilities:
 
 
 
 
 
 
Mortgages and notes payable, net, at fair value (1)
 
$
2,050,264

 
$

 
$
2,050,264

Interest rate swaps (in accounts payable, accrued expenses and other liabilities)
 
1,001

 

 
1,001

Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
 
2,370

 
2,370

 

Total Liabilities
 
$
2,053,635

 
$
2,370

 
$
2,051,265

Fair Value at December 31, 2016:
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
Mortgages and notes receivable, at fair value (1)
 
$
8,833

 
$

 
$
8,833

Interest rate swaps (in prepaid expenses and other assets)
 
7,619

 

 
7,619

Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
 
2,451

 
2,451

 

Total Assets
 
$
18,903

 
$
2,451

 
$
16,452

Noncontrolling Interests in the Operating Partnership
 
$
144,802

 
$
144,802

 
$

Liabilities:
 
 
 
 
 
 
Mortgages and notes payable, net, at fair value (1)
 
$
1,965,611

 
$

 
$
1,965,611

Interest rate swaps (in accounts payable, accrued expenses and other liabilities)
 
1,870

 

 
1,870

Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
 
2,451

 
2,451

 

Total Liabilities
 
$
1,969,932

 
$
2,451

 
$
1,967,481


__________
(1)    Amounts recorded at historical cost on our Consolidated Balance Sheets at March 31, 2017 and December 31, 2016.
v3.7.0.1
Share-Based Payments
3 Months Ended
Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share-Based Payments
Share-Based Payments
 
During the three months ended March 31, 2017, the Company granted 168,748 stock options with an exercise price equal to the last reported stock price of our Common Stock on the New York Stock Exchange on the last trading day prior to the date of grant. The fair value of each option is estimated on the date of grant using the Black-Scholes option pricing model, which resulted in a weighted average grant date fair value per share of $6.72. During the three months ended March 31, 2017, the Company also granted 61,404 shares of time-based restricted stock and 49,344 shares of total return-based restricted stock with weighted average grant date fair values per share of $52.49 and $49.59, respectively. We recorded share-based compensation expense of $3.8 million and $3.6 million during the three months ended March 31, 2017 and 2016, respectively. At March 31, 2017, there was $8.1 million of total unrecognized share-based compensation costs, which will be recognized over a weighted average remaining contractual term of 2.6 years.
v3.7.0.1
Accumulated Other Comprehensive Income (Loss)
3 Months Ended
Mar. 31, 2017
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Accumulated Other Comprehensive Income/(Loss)
Accumulated Other Comprehensive Income/(Loss)
 
The following table sets forth the components of accumulated other comprehensive income/(loss):
 
 
Three Months Ended
March 31,
 
2017
 
2016
Cash flow hedges:
 
 
 
Beginning balance
$
4,949

 
$
(3,811
)
Unrealized gains/(losses) on cash flow hedges
452

 
(3,635
)
Amortization of cash flow hedges (1)
484

 
795

Total accumulated other comprehensive income/(loss)
$
5,885

 
$
(6,651
)
__________
(1)    Amounts reclassified out of accumulated other comprehensive income/(loss) into contractual interest expense.
v3.7.0.1
Discontinued Operations
3 Months Ended
Mar. 31, 2017
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
Discontinued Operations

The following tables set forth the results of operations and cash flows related to discontinued operations for the three months ended March 31, 2017 and 2016:
 
Three Months Ended
March 31,
 
2017
 
2016
Rental and other revenues
$

 
$
8,484

Operating expenses:
 
 
 
Rental property and other expenses

 
3,334

General and administrative

 
1,388

Total operating expenses

 
4,722

Interest expense

 
85

Other income

 
420

Income from discontinued operations

 
4,097

Net gains on disposition of discontinued operations

 
414,496

Total income from discontinued operations
$

 
$
418,593



 
Three Months Ended
March 31,
 
2017
 
2016
Cash flows from operating activities
$

 
$
2,040

Cash flows from investing activities
$

 
$
417,097

v3.7.0.1
Earnings Per Share and Per Unit
3 Months Ended
Mar. 31, 2017
Earnings Per Share [Abstract]  
Earnings Per Share and Per Unit
Earnings Per Share and Per Unit

The following table sets forth the computation of basic and diluted earnings per share of the Company:

 
Three Months Ended
March 31,
 
2017
 
2016
Earnings per Common Share - basic:
 
 
 
Numerator:
 
 
 
Income from continuing operations
$
33,485

 
$
28,142

Net (income) attributable to noncontrolling interests in the Operating Partnership from continuing operations
(888
)
 
(746
)
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(300
)
 
(308
)
Dividends on Preferred Stock
(623
)
 
(626
)
Income from continuing operations available for common stockholders
31,674

 
26,462

Income from discontinued operations

 
418,593

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

 
(12,265
)
Income from discontinued operations available for common stockholders

 
406,328

Net income available for common stockholders
$
31,674

 
$
432,790

Denominator:
 
 
 
Denominator for basic earnings per Common Share – weighted average shares
101,738

 
96,373

Earnings per Common Share - basic:
 
 
 
Income from continuing operations available for common stockholders
$
0.31

 
$
0.27

Income from discontinued operations available for common stockholders

 
4.22

Net income available for common stockholders
$
0.31

 
$
4.49

Earnings per Common Share - diluted:
 
 
 
Numerator:
 
 
 
Income from continuing operations
$
33,485

 
$
28,142

Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(300
)
 
(308
)
Dividends on Preferred Stock
(623
)
 
(626
)
Income from continuing operations available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
32,562

 
27,208

Income from discontinued operations available for common stockholders

 
418,593

Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
$
32,562

 
$
445,801

Denominator:
 
 
 
Denominator for basic earnings per Common Share – weighted average shares
101,738

 
96,373

Add:
 
 
 
Stock options using the treasury method
85

 
84

Noncontrolling interests Common Units
2,838

 
2,900

Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions (1)
104,661

 
99,357

Earnings per Common Share - diluted:
 
 
 
Income from continuing operations available for common stockholders
$
0.31