HIGHWOODS PROPERTIES, INC., 10-Q filed on 4/28/2020
Quarterly Report
v3.20.1
Cover Page Cover Page - shares
3 Months Ended
Mar. 31, 2020
Apr. 21, 2020
Entity Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2020  
Document Transition Report false  
Entity Registrant Name HIGHWOODS PROPERTIES, INC.  
Entity Incorporation, State or Country Code MD  
Entity File Number 001-13100  
Entity Tax Identification Number 56-1871668  
Entity Address, Address Line One 3100 Smoketree Court  
Entity Address, Address Line Two Suite 600  
Entity Address, City or Town Raleigh  
Entity Address, State or Province NC  
Entity Address, Postal Zip Code 27604  
City Area Code 919  
Local Phone Number 872-4924  
Title of 12(b) Security Common Stock, $.01 par value, of Highwoods Properties, Inc.  
Trading Symbol HIW  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   103,885,918
Entity Central Index Key 0000921082  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2020  
Document Fiscal Period Focus Q1  
Amendment Flag false  
Highwoods Realty Limited Partnership [Member]    
Entity Information [Line Items]    
Entity Registrant Name HIGHWOODS REALTY LIMITED PARTNERSHIP  
Entity Incorporation, State or Country Code NC  
Entity File Number 000-21731  
Entity Tax Identification Number 56-1869557  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Central Index Key 0000941713  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2020  
Document Fiscal Period Focus Q1  
Amendment Flag false  
v3.20.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Real estate assets, at cost:    
Land $ 482,658 $ 515,095
Buildings and tenant improvements 4,959,136 5,128,150
Development in-process 184,400 172,706
Land held for development 128,984 99,163
Total real estate assets 5,755,178 5,915,114
Less-accumulated depreciation (1,337,174) (1,388,566)
Net real estate assets 4,418,004 4,526,548
Real estate and other assets, net, held for sale 2,726 20,790
Cash and cash equivalents 12,696 9,505
Restricted cash 111,393 5,237
Accounts receivable 26,326 23,370
Mortgages and notes receivable 1,489 1,501
Accrued straight-line rents receivable 239,669 234,652
Investments in and advances to unconsolidated affiliates 26,286 26,298
Deferred leasing costs, net of accumulated amortization of $146,438 and $146,125, respectively 225,258 231,347
Prepaid expenses and other assets, net of accumulated depreciation of $19,909 and $20,017, respectively 66,862 58,996
Total Assets 5,130,709 5,138,244
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Liabilities, Redeemable Operating Partnership Units and Capital:    
Mortgages and notes payable, net 2,410,189 2,543,710
Accounts payable, accrued expenses and other liabilities 264,986 286,911
Total Liabilities 2,675,175 2,830,621
Commitments and contingencies
Noncontrolling interests in the Operating Partnership 100,674 133,216
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), 28,856 and 28,859 shares issued and outstanding, respectively 28,856 28,859
Common Stock, $.01 par value, 200,000,000 authorized shares; 103,885,918 and 103,756,046 shares issued and outstanding, respectively 1,039 1,038
Additional paid-in capital 3,000,614 2,954,779
Distributions in excess of net income available for common stockholders (696,070) (831,808)
Accumulated other comprehensive income/(loss) (1,676) (471)
Total Stockholders’ Equity 2,332,763 2,152,397
Noncontrolling interests in consolidated affiliates 22,097 22,010
Total Equity/Capital 2,354,860 2,174,407
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Capital 5,130,709 5,138,244
Highwoods Realty Limited Partnership [Member]    
Real estate assets, at cost:    
Land 482,658 515,095
Buildings and tenant improvements 4,959,136 5,128,150
Development in-process 184,400 172,706
Land held for development 128,984 99,163
Total real estate assets 5,755,178 5,915,114
Less-accumulated depreciation (1,337,174) (1,388,566)
Net real estate assets 4,418,004 4,526,548
Real estate and other assets, net, held for sale 2,726 20,790
Cash and cash equivalents 12,696 9,505
Restricted cash 111,393 5,237
Accounts receivable 26,326 23,370
Mortgages and notes receivable 1,489 1,501
Accrued straight-line rents receivable 239,669 234,652
Investments in and advances to unconsolidated affiliates 26,286 26,298
Deferred leasing costs, net of accumulated amortization of $146,438 and $146,125, respectively 225,258 231,347
Prepaid expenses and other assets, net of accumulated depreciation of $19,909 and $20,017, respectively 66,862 58,996
Total Assets 5,130,709 5,138,244
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Liabilities, Redeemable Operating Partnership Units and Capital:    
Mortgages and notes payable, net 2,410,189 2,543,710
Accounts payable, accrued expenses and other liabilities 264,986 286,911
Total Liabilities 2,675,175 2,830,621
Commitments and contingencies
Redeemable Operating Partnership Units:    
Common Units, 2,842,295 and 2,723,703 outstanding, respectively 100,674 133,216
Series A Preferred Units (liquidation preference $1,000 per unit), 28,856 and 28,859 units issued and outstanding, respectively 28,856 28,859
Total Redeemable Operating Partnership Units 129,530 162,075
Equity/Capital:    
General partner Common Units, 1,063,194 and 1,060,709 outstanding, respectively 23,055 21,240
Limited partner Common Units, 102,413,915 and 102,286,528 outstanding, respectively 2,282,528 2,102,769
Accumulated other comprehensive income/(loss) (1,676) (471)
Noncontrolling interests in consolidated affiliates 22,097 22,010
Total Equity/Capital 2,326,004 2,145,548
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Capital $ 5,130,709 $ 5,138,244
v3.20.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2020
Dec. 31, 2019
Assets:    
Deferred leasing costs, accumulated amortization $ 146,438 $ 146,125
Prepaid expenses and other assets, accumulated depreciation $ 19,909 $ 20,017
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) 28,856 28,859
Series A Preferred Stock, shares outstanding (in shares) 28,856 28,859
Common Stock, par value (in dollars per share) $ 0.01 $ 0.01
Common Stock, authorized shares (in shares) 200,000,000 200,000,000
Common Stock, shares issued (in shares) 103,885,918 103,756,046
Common Stock, shares outstanding (in shares) 103,885,918 103,756,046
Highwoods Realty Limited Partnership [Member]    
Assets:    
Deferred leasing costs, accumulated amortization $ 146,438 $ 146,125
Prepaid expenses and other assets, accumulated depreciation $ 19,909 $ 20,017
Redeemable Operating Partnership Units: [Abstract]    
Redeemable Common Units outstanding (in shares) 2,842,295 2,723,703
Series A Preferred Units, liquidation preference (in dollars per share) $ 1,000 $ 1,000
Series A Preferred Units, issued (in shares) 28,856 28,859
Series A Preferred Units, outstanding (in shares) 28,856 28,859
Common Units: [Abstract]    
General partners' capital account, units outstanding (in shares) 1,063,194 1,060,709
Limited partners' capital account, units outstanding (in shares) 102,413,915 102,286,528
v3.20.1
Consolidated Statements of Income - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Rental and other revenues $ 192,800 $ 172,363
Operating expenses:    
Rental property and other expenses 62,202 60,551
Depreciation and amortization 61,150 69,204
General and administrative 10,930 12,381
Total operating expenses 134,282 142,136
Interest expense 21,277 18,739
Other income/(loss) 69 (3,766)
Gains on disposition of property 153,067 0
Equity in earnings of unconsolidated affiliates 963 664
Net income 191,340 8,386
Net (income) attributable to noncontrolling interests in the Operating Partnership (4,960) (193)
Net (income) attributable to noncontrolling interests in consolidated affiliates (285) (316)
Dividends on Preferred Stock (622) (622)
Net income available for common stockholders $ 185,473 $ 7,255
Earnings per Common Share – basic:    
Net income available for common stockholders (in dollars per share) $ 1.79 $ 0.07
Weighted average Common Shares outstanding - basic (in shares) 103,813 103,600
Earnings per Common Share - diluted:    
Net income available for common stockholders (in dollars per share) $ 1.79 $ 0.07
Weighted average Common Shares outstanding - diluted (in shares) 106,633 106,357
Highwoods Realty Limited Partnership [Member]    
Rental and other revenues $ 192,800 $ 172,363
Operating expenses:    
Rental property and other expenses 62,202 60,551
Depreciation and amortization 61,150 69,204
General and administrative 10,930 12,381
Total operating expenses 134,282 142,136
Interest expense 21,277 18,739
Other income/(loss) 69 (3,766)
Gains on disposition of property 153,067 0
Equity in earnings of unconsolidated affiliates 963 664
Net income 191,340 8,386
Net (income) attributable to noncontrolling interests in consolidated affiliates (285) (316)
Distributions on Preferred Units (622) (622)
Net income available for common unitholders $ 190,433 $ 7,448
Earnings per Common Unit - basic:    
Net income available for common unitholders (in dollars per share) $ 1.79 $ 0.07
Weighted average Common Units outstanding - basic (in shares) 106,199 105,928
Earnings per Common Unit - diluted:    
Net income available for common unitholders (in dollars per share) $ 1.79 $ 0.07
Weighted average Common Units outstanding - diluted (in shares) 106,224 105,948
v3.20.1
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Comprehensive income:    
Net income $ 191,340 $ 8,386
Other comprehensive loss:    
Unrealized losses on cash flow hedges (1,133) (1,904)
Amortization of cash flow hedges (72) (515)
Total other comprehensive loss (1,205) (2,419)
Total comprehensive income 190,135 5,967
Less-comprehensive (income) attributable to noncontrolling interests (5,245) (509)
Comprehensive income attributable to common stockholders/Comprehensive income attributable to common unitholders 184,890 5,458
Highwoods Realty Limited Partnership [Member]    
Comprehensive income:    
Net income 191,340 8,386
Other comprehensive loss:    
Unrealized losses on cash flow hedges (1,133) (1,904)
Amortization of cash flow hedges (72) (515)
Total other comprehensive loss (1,205) (2,419)
Total comprehensive income 190,135 5,967
Less-comprehensive (income) attributable to noncontrolling interests (285) (316)
Comprehensive income attributable to common stockholders/Comprehensive income attributable to common unitholders $ 189,850 $ 5,651
v3.20.1
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, 2018     103,557,065                  
Balance at Dec. 31, 2018 $ 2,264,296 $ 2,235,419 $ 1,036 $ 28,877 $ 22,078 $ 2,185,852 $ 2,976,197 $ 9,913 $ 9,913 $ 17,576 $ 17,576 $ (769,303)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                        
Issuances of Common Units, net of issuance costs and tax withholdings   (1,128)     (11) (1,117)            
Distributions on Common Units   (50,281)     (503) (49,778)            
Distributions on Preferred Units   (622)     (6) (616)            
Issuances of Common Stock, net of issuance costs and tax withholdings - Shares     (33,377)                  
Issuances of Common Stock, net of issuance costs and tax withholdings (1,128)   $ 0       (1,128)          
Conversions of Common Units to Common Stock - Shares     3,000                  
Conversions of Common Units to Common Stock 131           131          
Dividends on Common Stock (49,175)                     (49,175)
Dividends on Preferred Stock (622)                     (622)
Adjustment of noncontrolling interests in the Operating Partnership to fair value (23,254)           (23,254)          
Distributions to noncontrolling interests in consolidated affiliates (308) (308)               (308) (308)  
Issuances of restricted stock - shares     164,190                  
Issuances of restricted stock 0                      
Redemptions/repurchases of Preferred Stock (18)     (18)                
Share-based compensation expense, net of forfeitures - shares     (259)                  
Share-based compensation expense, net of forfeitures 4,572 4,572 $ 1   46 4,526 4,571          
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner   (22,210)     (222) (21,988)            
Net (income) attributable to noncontrolling interests in the Operating Partnership (193)                     (193)
Net (income) attributable to noncontrolling interests in consolidated affiliates 0 0     (3) (313)       316 316 (316)
Comprehensive income:                        
Net income 8,386 8,386     84 8,302           8,386
Other comprehensive loss (2,419) (2,419)           (2,419) (2,419)      
Total comprehensive income 5,967 5,967                    
Balance (in shares) at Mar. 31, 2019     103,690,619                  
Balance at Mar. 31, 2019 $ 2,200,268 2,171,409 $ 1,037 28,859 21,463 2,124,868 2,956,517 7,494 7,494 17,584 17,584 (811,223)
Balance (in shares) at Dec. 31, 2019 103,756,046   103,756,046                  
Balance at Dec. 31, 2019 $ 2,174,407 2,145,548 $ 1,038 28,859 21,240 2,102,769 2,954,779 (471) (471) 22,010 22,010 (831,808)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                        
Issuances of Common Units, net of issuance costs and tax withholdings   7,202     72 7,130            
Distributions on Common Units   (50,903)     (509) (50,394)            
Distributions on Preferred Units   (622)     (6) (616)            
Issuances of Common Stock, net of issuance costs and tax withholdings - Shares     (13,266)                  
Issuances of Common Stock, net of issuance costs and tax withholdings 1,039   $ 0       1,039          
Conversions of Common Units to Common Stock 0                      
Dividends on Common Stock (49,735)                     (49,735)
Dividends on Preferred Stock (622)                     (622)
Adjustment of noncontrolling interests in the Operating Partnership to fair value 42,301           42,301          
Distributions to noncontrolling interests in consolidated affiliates (198) (198)               (198) (198)  
Issuances of restricted stock - shares     149,304                  
Issuances of restricted stock 0                      
Redemptions/repurchases of Preferred Stock (3)     (3)                
Share-based compensation expense, net of forfeitures - shares     (6,166)                  
Share-based compensation expense, net of forfeitures 2,496 2,496 $ 1   25 2,471 2,495          
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner   32,346     323 32,023            
Net (income) attributable to noncontrolling interests in the Operating Partnership (4,960)                     (4,960)
Net (income) attributable to noncontrolling interests in consolidated affiliates 0 0     (3) (282)       285 285 (285)
Comprehensive income:                        
Net income 191,340 191,340     1,913 189,427           191,340
Other comprehensive loss (1,205) (1,205)           (1,205) (1,205)      
Total comprehensive income $ 190,135 190,135                    
Balance (in shares) at Mar. 31, 2020 103,885,918   103,885,918                  
Balance at Mar. 31, 2020 $ 2,354,860 $ 2,326,004 $ 1,039 $ 28,856 $ 23,055 $ 2,282,528 $ 3,000,614 $ (1,676) $ (1,676) $ 22,097 $ 22,097 $ (696,070)
v3.20.1
Consolidated Statements of Equity/Capital (Parentheticals) - $ / shares
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Highwoods Properties, Inc. [Member]    
Dividends on Common Stock (per share) $ 0.48 $ 0.475
Highwoods Properties, Inc. [Member] | Series A Cumulative Redeemable Preferred Shares [Member]    
Dividends on Preferred Stock (per share)/Distributions on Preferred Units (per unit) 21.5625 21.5625
Highwoods Realty Limited Partnership [Member]    
Distributions on Common Units (per unit) 0.48 0.475
Highwoods Realty Limited Partnership [Member] | Series A Cumulative Redeemable Preferred Shares [Member]    
Dividends on Preferred Stock (per share)/Distributions on Preferred Units (per unit) $ 21.5625 $ 21.5625
v3.20.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Operating activities:    
Net income $ 191,340 $ 8,386
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 61,150 69,204
Amortization of lease incentives and acquisition-related intangible assets and liabilities (649) 1,689
Share-based compensation expense 2,496 4,572
Credit losses on operating lease receivables 1,249 7,315
Write-off of mortgages and notes receivable 0 4,087
Accrued interest on mortgages and notes receivable (31) (85)
Amortization of debt issuance costs 767 736
Amortization of cash flow hedges (72) (515)
Amortization of mortgages and notes payable fair value adjustments 426 385
Losses on debt extinguishment 0 375
Net gains on disposition of property (153,067) 0
Equity in earnings of unconsolidated affiliates (963) (664)
Distributions of earnings from unconsolidated affiliates 341 609
Settlement of cash flow hedges 0 (5,144)
Changes in operating assets and liabilities:    
Accounts receivable 824 (2,583)
Prepaid expenses and other assets (8,745) (6,953)
Accrued straight-line rents receivable (10,888) (6,903)
Accounts payable, accrued expenses and other liabilities (20,564) (11,798)
Net cash provided by operating activities 63,614 62,713
Investing activities:    
Investments in acquired real estate and related intangible assets, net of cash acquired (55) 0
Investments in development in-process (36,122) (28,555)
Investments in tenant improvements and deferred leasing costs (49,825) (38,544)
Investments in building improvements (15,254) (12,517)
Net proceeds from disposition of real estate assets 331,761 0
Distributions of capital from unconsolidated affiliates 72 29
Investments in mortgages and notes receivable (32) 0
Repayments of mortgages and notes receivable 75 74
Changes in other investing activities 477 (1,989)
Net cash provided by/(used in) investing activities 231,097 (81,502)
Financing activities:    
Dividends on Common Stock (49,735) (49,175)
Redemptions/repurchases of Preferred Stock (3) (18)
Dividends on Preferred Stock (622) (622)
Distributions to noncontrolling interests in the Operating Partnership (1,364) (1,300)
Distributions to noncontrolling interests in consolidated affiliates (198) (308)
Proceeds from the issuance of Common Stock 2,343 652
Costs paid for the issuance of Common Stock (180) 0
Repurchase of shares related to tax withholdings (1,124) (1,780)
Borrowings on revolving credit facility 110,000 98,300
Repayments of revolving credit facility (244,000) (145,300)
Borrowings on mortgages and notes payable 0 349,010
Repayments of mortgages and notes payable (481) (225,462)
Changes in debt issuance costs and other financing activities 0 (2,884)
Net cash provided by/(used in) financing activities (185,364) 21,113
Net increase in cash and cash equivalents and restricted cash 109,347 2,324
Cash and cash equivalents and restricted cash at beginning of the period 14,742 10,143
Cash and cash equivalents and restricted cash at end of the period 124,089 12,467
Reconciliation of cash and cash equivalents and restricted cash:    
Cash and cash equivalents at end of the period 12,696 4,827
Restricted cash at end of the period 111,393 7,640
Supplemental disclosure of cash flow information:    
Cash paid for interest, net of amounts capitalized 25,321 23,924
Supplemental disclosure of non-cash investing and financing activities:    
Unrealized losses on cash flow hedges (1,133) (1,904)
Conversions of Common Units to Common Stock 0 131
Changes in accrued capital expenditures [1] (4,789) (119)
Write-off of fully depreciated real estate assets 12,033 23,880
Write-off of fully amortized leasing costs 5,842 12,671
Write-off of fully amortized debt issuance costs 0 828
Adjustment of noncontrolling interests in the Operating Partnership to fair value (42,301) 23,254
Issuances of Common Units to acquire real estate assets 6,163 0
Initial recognition of lease liabilities related to right of use assets 0 35,349
Accrued capital expenditures included in accounts payable, accrued expenses and other liabilities 63,200 62,200
Highwoods Realty Limited Partnership [Member]    
Operating activities:    
Net income 191,340 8,386
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 61,150 69,204
Amortization of lease incentives and acquisition-related intangible assets and liabilities (649) 1,689
Share-based compensation expense 2,496 4,572
Credit losses on operating lease receivables 1,249 7,315
Write-off of mortgages and notes receivable 0 4,087
Accrued interest on mortgages and notes receivable (31) (85)
Amortization of debt issuance costs 767 736
Amortization of cash flow hedges (72) (515)
Amortization of mortgages and notes payable fair value adjustments 426 385
Losses on debt extinguishment 0 375
Net gains on disposition of property (153,067) 0
Equity in earnings of unconsolidated affiliates (963) (664)
Distributions of earnings from unconsolidated affiliates 341 609
Settlement of cash flow hedges 0 (5,144)
Changes in operating assets and liabilities:    
Accounts receivable 824 (2,583)
Prepaid expenses and other assets (8,745) (6,953)
Accrued straight-line rents receivable (10,888) (6,903)
Accounts payable, accrued expenses and other liabilities (20,564) (11,798)
Net cash provided by operating activities 63,614 62,713
Investing activities:    
Investments in acquired real estate and related intangible assets, net of cash acquired (55) 0
Investments in development in-process (36,122) (28,555)
Investments in tenant improvements and deferred leasing costs (49,825) (38,544)
Investments in building improvements (15,254) (12,517)
Net proceeds from disposition of real estate assets 331,761 0
Distributions of capital from unconsolidated affiliates 72 29
Investments in mortgages and notes receivable (32) 0
Repayments of mortgages and notes receivable 75 74
Changes in other investing activities 477 (1,989)
Net cash provided by/(used in) investing activities 231,097 (81,502)
Financing activities:    
Distributions on Common Units (50,903) (50,281)
Redemptions/repurchases of Preferred Units (3) (18)
Distributions on Preferred Units (622) (622)
Distributions to noncontrolling interests in consolidated affiliates (198) (308)
Proceeds from the issuance of Common Units 2,343 652
Costs paid for the issuance of Common Units (180) 0
Repurchase of units related to tax withholdings (1,124) (1,780)
Borrowings on revolving credit facility 110,000 98,300
Repayments of revolving credit facility (244,000) (145,300)
Borrowings on mortgages and notes payable 0 349,010
Repayments of mortgages and notes payable (481) (225,462)
Changes in debt issuance costs and other financing activities (196) (3,078)
Net cash provided by/(used in) financing activities (185,364) 21,113
Net increase in cash and cash equivalents and restricted cash 109,347 2,324
Cash and cash equivalents and restricted cash at beginning of the period 14,742 10,143
Cash and cash equivalents and restricted cash at end of the period 124,089 12,467
Reconciliation of cash and cash equivalents and restricted cash:    
Cash and cash equivalents at end of the period 12,696 4,827
Restricted cash at end of the period 111,393 7,640
Supplemental disclosure of cash flow information:    
Cash paid for interest, net of amounts capitalized 25,321 23,924
Supplemental disclosure of non-cash investing and financing activities:    
Unrealized losses on cash flow hedges (1,133) (1,904)
Changes in accrued capital expenditures [2] (4,789) (119)
Write-off of fully depreciated real estate assets 12,033 23,880
Write-off of fully amortized leasing costs 5,842 12,671
Write-off of fully amortized debt issuance costs 0 828
Adjustment of Redeemable Common Units to fair value (38,705) 22,016
Issuances of Common Units to acquire real estate assets 6,163 0
Initial recognition of lease liabilities related to right of use assets 0 35,349
Accrued capital expenditures included in accounts payable, accrued expenses and other liabilities $ 63,200 $ 62,200
[1]
(1)
Accrued capital expenditures included in accounts payable, accrued expenses and other liabilities at March 31, 2020 and 2019 were $63.2 million and $62.2 million, respectively.
[2]
(1)
Accrued capital expenditures included in accounts payable, accrued expenses and other liabilities at March 31, 2020 and 2019 were $63.2 million and $62.2 million, respectively.
v3.20.1
Description of Business and Significant Accounting Policies
3 Months Ended
Mar. 31, 2020
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, 2020, we owned or had an interest in 28.1 million rentable square feet of in-service properties, 1.2 million rentable square feet of office properties under development and approximately 250 acres of development land.
 
The Company is the sole general partner of the Operating Partnership. At March 31, 2020, the Company owned all of the Preferred Units and 103.5 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, 2020, the Company issued 118,592 Common Units to acquire real estate assets.
 
Basis of Presentation
 
Our Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

The Company’s Consolidated Financial Statements include the Operating Partnership, wholly owned subsidiaries and those entities in which the Company has the controlling interest. The Operating Partnership’s Consolidated Financial Statements include wholly owned subsidiaries and those entities in which the Operating Partnership has the controlling interest. We consolidate joint venture investments, such as interests in partnerships and limited liability companies, when we control the major operating and financial policies of the investment through majority ownership, in our capacity as a general partner or managing member or through some other contractual right. We also consolidate those entities deemed to be variable interest entities in which we are determined to be the primary beneficiary. At March 31, 2020, we have involvement with, and are the primary beneficiary in, an entity that we concluded to be a variable interest entity (see Note 3).

In addition, during 2019, we acquired a building using a special purpose entity owned by a qualified intermediary to facilitate a potential Section 1031 reverse exchange under the Internal Revenue Code. To realize the tax deferral available under the Section 1031 exchange, we must complete the Section 1031 exchange, and take title to the to-be-exchanged building within 180 days of the acquisition date. We have determined that this entity is a variable interest entity of which we are the primary beneficiary and therefore, we consolidate this entity. As of March 31, 2020, this variable interest entity had total assets, liabilities and cash flows of $438.9 million$21.7 million and $4.8 million, respectively. We completed the exchange by acquiring 100% of the special purpose entity on April 1, 2020. The assets of the special purpose entity can be used only to settle obligations of the special purpose entity and its creditors have no recourse to our wholly owned assets.

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 2019 Annual Report on Form 10-K.
 
Use of Estimates
 
The preparation of consolidated financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the amounts reported in our Consolidated Financial Statements and accompanying notes. Actual results could differ from those estimates.

Insurance
 
We are primarily self-insured for health care claims for participating employees. We have stop-loss coverage to limit our exposure to significant claims on a per claim and annual aggregate basis. We determine our liabilities for claims, including incurred but not reported losses, based on all relevant information, including actuarial estimates of claim liabilities. At March 31, 2020, a reserve of $0.6 million was recorded to cover estimated reported and unreported claims.

Recently Issued Accounting Standards
 
The Financial Accounting Standards Board (“FASB”) issued an accounting standards update (“ASU”) that changes certain disclosure requirements for fair value measurements. We adopted the ASU as of January 1, 2020 with no material effect on our Notes to Consolidated Financial Statements.

The FASB issued an ASU that provides temporary optional expedients and exceptions to the guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate (“SOFR”). Entities can elect not to apply certain modification accounting requirements to contracts affected by reference rate reform, if certain criteria are met. An entity that makes this election would not have to remeasure the contracts at the modification date or reassess a previous accounting determination. Entities can also elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform, if certain criteria are met. The ASU can be applied from March 12, 2020 through December 31, 2022. We are in the process of evaluating this ASU; however, we currently expect to avail ourselves of such optional expedients and exceptions should our modified contracts meet the required criteria.

Due to the business disruptions and challenges severely affecting the global economy caused by the COVID-19 pandemic, lessors may provide rent deferrals and other lease concessions to lessees. In April 2020, the FASB staff issued a question and answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of the COVID-19 pandemic. Under existing lease guidance, we would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant (treated within the lease modification accounting framework) or if a lease concession was under the enforceable rights and obligations within the existing lease agreement (precluded from applying the lease modification accounting framework). The Lease Modification Q&A allows us, if certain criteria have been met, to bypass the lease by lease analysis, and instead elect to either apply the lease modification accounting framework or not, with such election applied consistently to leases with similar characteristics and similar circumstances. We are in the process of evaluating the Lease Modification Q&A.
v3.20.1
Leases
3 Months Ended
Mar. 31, 2020
Leases [Abstract]  
Leases
Leases

We generally lease our office properties to lessees in exchange for fixed monthly payments that cover rent, property taxes, insurance and certain cost recoveries, primarily common area maintenance. Office properties owned by us that are under lease are primarily located in Atlanta, Charlotte, Nashville, Orlando, Pittsburgh, Raleigh, Richmond and Tampa and are leased to a wide variety of lessees across many industries. Our leases are operating leases and mostly range from three to 10 years. We recognized rental and other revenues related to operating lease payments of $189.6 million during the three months ended March 31, 2020, of which variable lease payments were $16.5 million.
v3.20.1
Consolidated Variable Interest Entity
3 Months Ended
Mar. 31, 2020
Variable Interest Entities [Abstract]  
Consolidated Variable Interest Entity Consolidated Variable Interest Entity
 
We and The Bromley Companies formed a joint venture (the “Midtown One joint venture”) to construct Midtown One, a 150,000 square foot, multi-customer office building located in the mixed-use Midtown Tampa project in Tampa’s Westshore submarket. Midtown One has an anticipated total investment of $71.3 million. Construction of Midtown One began in the third quarter of 2019 with a scheduled completion date in the second quarter of 2021. At closing, we agreed to contribute cash of $20.0 million (which was fully funded as of March 31, 2020) in exchange for an 80.0% interest in the Midtown One joint venture and The Bromley Companies contributed land valued at $5.0 million in exchange for the remaining 20.0% interest. We also committed to provide a $46.3 million interest-only secured construction loan to the Midtown One joint venture that is scheduled to mature on the second anniversary of completion. The loan bears interest at LIBOR plus 250 basis points. As of March 31, 2020, $2.2 million under the loan has been funded.

We determined that we have a variable interest in the Midtown One joint venture primarily because the entity was designed to pass along interest rate risk, equity price risk and operation risk to us as both a debt and an equity holder and The Bromley Companies as an equity holder. The Midtown One joint venture was further determined to be a variable interest entity as it requires additional subordinated financial support in the form of a loan because the initial equity investment provided by us and The Bromley Companies is not sufficient to finance its planned investments and operations. We, as majority owner and managing member and through our control rights as set forth in the joint venture’s governance documents, were determined to be the primary beneficiary as we have both the power to direct the activities that most significantly affect the entity (primarily lease rates, property operations and capital expenditures) and significant economic exposure through our equity investment and loan commitment. As such, the Midtown One joint venture is consolidated and all intercompany transactions and accounts are eliminated. The following table sets forth the assets and liabilities of the Midtown One joint venture included on our Consolidated Balance Sheets:

 
March 31,
2020
Development in-process
$
29,073

Accounts payable, accrued expenses and other liabilities
$
1,669



The assets of the Midtown One joint venture can be used only to settle obligations of the joint venture and its creditors have no recourse to our wholly owned assets.
v3.20.1
Real Estate Assets
3 Months Ended
Mar. 31, 2020
Real Estate [Abstract]  
Real Estate Assets Real Estate Assets
 
Acquisitions
 
During the first quarter of 2020, we acquired development land in Nashville for a purchase price of $6.2 million, which consisted of the issuance of 118,592 Common Units and capitalized acquisition costs.

Dispositions
 
During the first quarter of 2020, we sold 41 buildings and land in Greensboro and Memphis for an aggregate sale price of $338.4 million (before closing credits to buyer of $3.8 million) and recorded aggregate gains on disposition of property of $153.1 million.
v3.20.1
Intangible Assets and Below Market Lease Liabilities
3 Months Ended
Mar. 31, 2020
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,
2020
 
December 31,
2019
Assets:
 
 
 
Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets)
$
371,696

 
$
377,472

Less accumulated amortization
(146,438
)
 
(146,125
)
 
$
225,258

 
$
231,347

Liabilities (in accounts payable, accrued expenses and other liabilities):
 
 
 
Acquisition-related below market lease liabilities
$
65,292

 
$
65,971

Less accumulated amortization
(34,900
)
 
(34,014
)
 
$
30,392

 
$
31,957

 
The following table sets forth amortization of intangible assets and below market lease liabilities:
 
 
Three Months Ended
March 31,
 
2020
 
2019
Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization)
$
8,798

 
$
10,315

Amortization of lease incentives (in rental and other revenues)
$
490

 
$
2,848

Amortization of acquisition-related intangible assets (in rental and other revenues)
$
288

 
$
357

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

 
$
137

Amortization of acquisition-related below market lease liabilities (in rental and other revenues)
$
(1,566
)
 
$
(1,653
)

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, 2020
 
$
28,126

 
$
1,231

 
$
807

 
$
371

 
$
(4,391
)
2021
 
33,372

 
1,386

 
777

 

 
(5,013
)
2022
 
29,147

 
1,176

 
608

 

 
(3,982
)
2023
 
25,709

 
1,094

 
454

 

 
(3,607
)
2024
 
22,696

 
952

 
380

 

 
(2,939
)
Thereafter
 
70,546

 
4,253

 
2,173

 

 
(10,460
)
 
 
$
209,596

 
$
10,092

 
$
5,199

 
$
371

 
$
(30,392
)
Weighted average remaining amortization periods as of March 31, 2020 (in years)
 
8.4

 
9.2

 
9.4

 
0.7

 
8.7


v3.20.1
Mortgages and Notes Payable
3 Months Ended
Mar. 31, 2020
Debt Disclosure [Abstract]  
Mortgages and Notes Payable Mortgages and Notes Payable
 
The following table sets forth our mortgages and notes payable:
 
 
March 31,
2020
 
December 31,
2019
Secured indebtedness
$
94,822

 
$
95,303

Unsecured indebtedness
2,327,851

 
2,461,425

Less-unamortized debt issuance costs
(12,484
)
 
(13,018
)
Total mortgages and notes payable, net
$
2,410,189

 
$
2,543,710


 
At March 31, 2020, our secured mortgage loan was collateralized by real estate assets with an undepreciated book value of $147.2 million.
 
Our $600.0 million unsecured revolving credit facility is scheduled to mature in January 2022 and includes an accordion feature that allows for an additional $400.0 million of borrowing capacity subject to additional lender commitments. Assuming no defaults have occurred, we have an option to extend the maturity for two additional six-month periods. The interest rate at our current credit ratings is LIBOR plus 100 basis points and the annual facility fee is 20 basis points. There was $87.0 million outstanding under our revolving credit facility at March 31, 2020. There were no amounts outstanding under our revolving credit facility at April 21, 2020. At both March 31, 2020 and April 21, 2020, we had $0.1 million of outstanding letters of credit, which reduces the availability on our revolving credit facility. As a result, the unused capacity of our revolving credit facility at March 31, 2020 and April 21, 2020 was $512.9 million and $599.9 million, respectively.
 
We are currently in compliance with financial covenants with respect to our consolidated debt.
 
We have considered our short-term liquidity needs and the adequacy of our estimated cash flows from operating activities and other available financing sources to meet these needs. We intend to meet these short-term liquidity requirements through a combination of the following:
 
available cash and cash equivalents;
 
cash flows from operating activities;
 
issuance of debt securities by the Operating Partnership;
 
issuance of secured debt;
 
bank term loans;
 
borrowings under our revolving credit facility;
 
issuance of equity securities by the Company or the Operating Partnership; and

the disposition of non-core assets.
v3.20.1
Derivative Financial Instruments
3 Months Ended
Mar. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments
Derivative Financial Instruments

The counterparties under our swaps are major financial institutions. The swap agreements contain a provision whereby if we default on certain of our indebtedness and which default results in repayment of such indebtedness being, or becoming capable of being, accelerated by the lender, then we could also be declared in default on our swaps.

Our interest rate swaps have been designated as and are being accounted for as cash flow hedges with changes in fair value recorded in other comprehensive income/(loss) each reporting period. We have no collateral requirements related to our interest rate swaps.
 
Amounts reported in accumulated other comprehensive income/(loss) related to derivatives will be reclassified to interest expense as interest payments are made on our debt. During the period from April 1, 2020 through March 31, 2021, we estimate that $0.4 million will be reclassified as a net increase to interest expense.

The following table sets forth the fair value of our derivatives:
 
 
March 31,
2020
 
December 31,
2019
Derivatives:
 
 
 
Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities:
 
 
 
Interest rate swaps
$
1,284

 
$
154


 
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,
 
2020
 
2019
Derivatives Designated as Cash Flow Hedges:
 
 
 
Amount of unrealized losses recognized in accumulated other comprehensive income/(loss) on derivatives:
 
 
 
Interest rate swaps
$
(1,133
)
 
$
(1,904
)
Amount of gains reclassified out of accumulated other comprehensive income/(loss) into interest expense:
 
 
 
Interest rate swaps
$
(72
)
 
$
(515
)

v3.20.1
Noncontrolling Interests
3 Months Ended
Mar. 31, 2020
Noncontrolling Interest [Abstract]  
Noncontrolling Interests
Noncontrolling Interests

Noncontrolling Interests in Consolidated Affiliates
 
At March 31, 2020, our noncontrolling interests in consolidated affiliates relate to our joint venture partners’ 50.0% interest in office properties in Richmond and 20.0% interest in an office development property in Tampa. Our joint venture partners are unrelated third parties.

Noncontrolling Interests in the Operating Partnership

The following table sets forth the Company’s noncontrolling interests in the Operating Partnership:
 
 
Three Months Ended
March 31,
 
2020
 
2019
Beginning noncontrolling interests in the Operating Partnership
$
133,216

 
$
105,960

Adjustment of noncontrolling interests in the Operating Partnership to fair value
(42,301
)
 
23,254

Issuances of Common Units
6,163

 

Conversions of Common Units to Common Stock

 
(131
)
Net income attributable to noncontrolling interests in the Operating Partnership
4,960

 
193

Distributions to noncontrolling interests in the Operating Partnership
(1,364
)
 
(1,300
)
Total noncontrolling interests in the Operating Partnership
$
100,674

 
$
127,976


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,
 
2020
 
2019
Net income available for common stockholders
$
185,473

 
$
7,255

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

 
131

Issuances of Common Units
(6,163
)
 

Change from net income available for common stockholders and transfers from noncontrolling interests
$
179,310

 
$
7,386


v3.20.1
Disclosure About Fair Value of Financial Instruments
3 Months Ended
Mar. 31, 2020
Fair Value Disclosures [Abstract]  
Disclosure About Fair Value of Financial Instruments
Disclosure About Fair Value of Financial Instruments

The following summarizes the levels of inputs that we use to measure fair value.
 
Level 1.  Quoted prices in active markets for identical assets or liabilities.

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

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

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

The fair value of mortgages and notes receivable and mortgages and notes payable is estimated by the income approach utilizing contractual cash flows and market-based interest rates to approximate the price that would be paid in an orderly transaction
between market participants. The fair value of interest rate swaps is determined using the market standard methodology of netting the discounted future fixed cash receipts and the discounted expected variable cash payments. The variable cash payments of interest rate swaps are based on the expectation of future interest rates (forward curves) derived from observed market interest rate curves. In addition, credit valuation adjustments are considered in the fair values to account for potential nonperformance risk, but were concluded to not be significant inputs to the calculation for the periods presented.

Level 3. Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
 
Our Level 3 assets include any real estate assets recorded at fair value on a non-recurring basis as a result of our quarterly impairment analysis, which are valued using unobservable local and national industry market data such as comparable sales, appraisals, brokers’ opinions of value and/or the terms of definitive sales contracts. Significant increases or decreases in any valuation inputs in isolation would result in a significantly lower or higher fair value measurement.

The following table sets forth our assets and liabilities and the Company’s noncontrolling interests in the Operating Partnership that are measured or disclosed at fair value within the fair value hierarchy:
 
 
 
 
Level 1
 
Level 2
 
 
Total
 
Quoted Prices
in Active
Markets for Identical Assets or Liabilities
 
Significant Observable Inputs
Fair Value at March 31, 2020:
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
Mortgages and notes receivable, at fair value (1)
 
$
1,489

 
$

 
$
1,489

Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
 
1,759

 
1,759

 

Total Assets
 
$
3,248

 
$
1,759

 
$
1,489

Noncontrolling Interests in the Operating Partnership
 
$
100,674

 
$
100,674

 
$

Liabilities:
 
 
 
 
 
 
Mortgages and notes payable, net, at fair value (1)
 
$
2,384,563

 
$

 
$
2,384,563

Interest rate swaps (in accounts payable, accrued expenses and other liabilities)
 
1,284

 

 
1,284

Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
 
1,759

 
1,759

 

Total Liabilities
 
$
2,387,606

 
$
1,759

 
$
2,385,847

Fair Value at December 31, 2019:
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
Mortgages and notes receivable, at fair value (1)
 
$
1,501

 
$

 
$
1,501

Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
 
2,345

 
2,345

 

Total Assets
 
$
3,846

 
$
2,345

 
$
1,501

Noncontrolling Interests in the Operating Partnership
 
$
133,216

 
$
133,216

 
$

Liabilities:
 
 
 
 
 
 
Mortgages and notes payable, net, at fair value (1)
 
$
2,615,776

 
$

 
$
2,615,776

Interest rate swaps (in accounts payable, accrued expenses and other liabilities)
 
154

 

 
154

Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
 
2,345

 
2,345

 

Total Liabilities
 
$
2,618,275

 
$
2,345

 
$
2,615,930


__________
(1)    Amounts are not recorded at fair value on our Consolidated Balance Sheets at March 31, 2020 and December 31, 2019.
v3.20.1
Share-Based Payments
3 Months Ended
Mar. 31, 2020
Share-based Payment Arrangement [Abstract]  
Share-Based Payments
Share-Based Payments
 
During the three months ended March 31, 2020, the Company granted 83,116 shares of time-based restricted stock and 66,188 shares of total return-based restricted stock with weighted average grant date fair values per share of $44.88 and $38.31, respectively. We recorded share-based compensation expense of $2.5 million and $4.6 million during the three months ended March 31, 2020 and 2019, respectively. At March 31, 2020, there was $8.9 million of total unrecognized share-based compensation costs, which will be recognized over a weighted average remaining contractual term of 2.4 years.
v3.20.1
Accumulated Other Comprehensive Income/(Loss)
3 Months Ended
Mar. 31, 2020
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,
 
2020
 
2019
Cash flow hedges:
 
 
 
Beginning balance
$
(471
)
 
$
9,913

Unrealized losses on cash flow hedges
(1,133
)
 
(1,904
)
Amortization of cash flow hedges (1)
(72
)
 
(515
)
Total accumulated other comprehensive income/(loss)
$
(1,676
)
 
$
7,494

__________
(1)    Amounts reclassified out of accumulated other comprehensive income/(loss) into interest expense.
v3.20.1
Real Estate and Other Assets Held For Sale
3 Months Ended
Mar. 31, 2020
Discontinued Operations and Disposal Groups [Abstract]  
Real Estate and Other Assets Held For Sale
Real Estate and Other Assets Held For Sale
The following table sets forth the assets held for sale at March 31, 2020 and December 31, 2019, which are considered non-core:
 
 
March 31,
2020
 
December 31,
2019
Assets:
 
 
 
Land
$

 
$
4,815

Buildings and tenant improvements

 
29,581

Land held for development
2,726

 

Less-accumulated depreciation

 
(16,775
)
Net real estate assets
2,726

 
17,621

Accrued straight-line rents receivable

 
2,073

Deferred leasing costs, net

 
1,096

Real estate and other assets, net, held for sale
$
2,726

 
$
20,790


v3.20.1
Earnings Per Share and Per Unit
3 Months Ended
Mar. 31, 2020
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,
 
2020
 
2019
Earnings per Common Share - basic:
 
 
 
Numerator:
 
 
 
Net income
$
191,340

 
$
8,386

Net (income) attributable to noncontrolling interests in the Operating Partnership
(4,960
)
 
(193
)
Net (income) attributable to noncontrolling interests in consolidated affiliates
(285
)
 
(316
)
Dividends on Preferred Stock
(622
)
 
(622
)
Net income available for common stockholders
$
185,473

 
$
7,255

Denominator:
 
 
 
Denominator for basic earnings per Common Share – weighted average shares (1)
103,813

 
103,600

Net income available for common stockholders
$
1.79

 
$
0.07

Earnings per Common Share - diluted:
 
 
 
Numerator:
 
 
 
Net income
$
191,340

 
$
8,386

Net (income) attributable to noncontrolling interests in consolidated affiliates
(285
)
 
(316
)
Dividends on Preferred Stock
(622
)
 
(622
)
Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
$
190,433

 
$
7,448

Denominator:
 
 
 
Denominator for basic earnings per Common Share – weighted average shares (1)
103,813

 
103,600

Add:
 
 
 
Stock options using the treasury method
25

 
20

Noncontrolling interests Common Units
2,795

 
2,737

Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions
106,633

 
106,357

Net income available for common stockholders
$
1.79

 
$
0.07

__________
(1)
Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable.

The following table sets forth the computation of basic and diluted earnings per unit of the Operating Partnership:
 
 
Three Months Ended
March 31,
 
2020
 
2019
Earnings per Common Unit - basic:
 
 
 
Numerator:
 
 
 
Net income
$
191,340

 
$
8,386

Net (income) attributable to noncontrolling interests in consolidated affiliates
(285
)
 
(316
)
Distributions on Preferred Units
(622
)
 
(622
)
Net income available for common unitholders
$
190,433

 
$
7,448

Denominator:
 
 
 
Denominator for basic earnings per Common Unit – weighted average units (1)
106,199

 
105,928

Net income available for common unitholders
$
1.79

 
$
0.07

Earnings per Common Unit - diluted:
 
 
 
Numerator:
 
 
 
Net income
$
191,340

 
$
8,386

Net (income) attributable to noncontrolling interests in consolidated affiliates
(285
)
 
(316
)
Distributions on Preferred Units
(622
)
 
(622
)
Net income available for common unitholders
$
190,433

 
$
7,448

Denominator:
 
 
 
Denominator for basic earnings per Common Unit – weighted average units (1)
106,199

 
105,928

Add:
 
 
 
Stock options using the treasury method
25

 
20

Denominator for diluted earnings per Common Unit – adjusted weighted average units and assumed conversions
106,224

 
105,948

Net income available for common unitholders
$
1.79

 
$
0.07

__________
(1)
Includes all unvested restricted stock where distributions on such restricted stock are non-forfeitable.
v3.20.1
Segment Information
3 Months Ended
Mar. 31, 2020
Segment Reporting [Abstract]  
Segment Information
Segment Information
 
The following tables summarize the rental and other revenues and net operating income, the primary industry property-level performance metric used by our chief operating decision maker and which is defined as rental and other revenues less rental property and other expenses, for each of our reportable segments.
 
Three Months Ended
March 31,
 
2020
 
2019
Rental and Other Revenues:
 
 
 
Office:
 
 
 
Atlanta
$
37,959

 
$
36,303

Charlotte
8,933

 

Greensboro
4,729

 
5,481

Memphis
7,647

 
9,757

Nashville
34,497

 
31,399

Orlando
13,022

 
13,932

Pittsburgh
14,948

 
15,315

Raleigh
32,553

 
29,097

Richmond
12,260

 
12,286

Tampa
25,244

 
15,571

Total Office Segment
191,792

 
169,141

Other
1,008

 
3,222

Total Rental and Other Revenues
$
192,800

 
$
172,363


Net Operating Income:
 
 
 
Office:
 
 
 
Atlanta
$
25,183