HIGHWOODS PROPERTIES, INC., 10-Q/A filed on 8/11/2011
Amended Quarterly Report
Document And Entity Information (USD $)
6 Months Ended
Jun. 30, 2011
Jun. 30, 2010
Entity Registrant Name
Highwoods Properties Inc 
 
Entity Central Index Key
0000921082 
 
Current Fiscal Year End Date
--12-31 
 
Entity Well-known Seasoned Issuer
Yes 
 
Entity Voluntary Filers
No 
 
Entity Current Reporting Status
Yes 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Public Float
 
$ 1,963,562,043 
Entity Common Stock, Shares Outstanding
72,399,428 
 
Document Fiscal Year Focus
2011 
 
Document Fiscal Period Focus
Q2 
 
Document Type
10-Q 
 
Amendment Flag
FALSE 
 
Document Period End Date
Jun. 30, 2011 
 
Consolidated Balance Sheets (Unaudited) (USD $)
In Thousands
Jun. 30, 2011
Dec. 31, 2010
Dec. 31, 2009
Real estate assets, at cost:
 
 
 
Land
$ 345,791 
$ 345,088 
 
Buildings and tenant improvements
2,886,871 
2,883,092 
 
Development in process
13,317 
4,524 
 
Land held for development
106,871 
107,101 
 
Total real estate assets
3,352,850 
3,339,805 
 
Less-accumulated depreciation
(863,730)
(830,153)
 
Net real estate assets
2,489,120 
2,509,652 
 
For-sale residential condominiums
5,840 
8,225 
 
Real estate and other assets, net, held for sale
11,609 
13,607 
 
Cash and cash equivalents
9,239 
14,206 
23,699 
Restricted cash
7,619 
4,399 
 
Accounts receivable, net of allowance of $3,470 and $3,595, respectively
22,952 
20,716 
 
Mortgages and notes receivable, net of allowance of $617 and $868, respectively
18,809 
19,044 
 
Accrued straight-line rents receivable, net of allowance of $1,360 and $2,209, respectively
99,466 
93,178 
 
Investment in and advances to unconsolidated affiliates
103,025 
63,607 
 
Deferred financing and leasing costs, net of accumulated amortization of $62,542 and $59,360, respectively
85,168 
85,001 
 
Prepaid expenses and other assets
36,633 
40,200 
 
Total Assets
2,889,480 
2,871,835 
 
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Liabilities, Redeemable Operating Partnership Units and Equity:
 
 
 
Mortgages and notes payable
1,615,068 
1,522,945 
 
Accounts payable, accrued expenses and other liabilities
106,105 
106,716 
 
Financing obligations
32,869 
33,114 
 
Total Liabilities
1,754,042 
1,662,775 
 
Commitments and contingencies
 
 
 
Noncontrolling interests in the Operating Partnership
125,075 
120,838 
129,769 
Equity:
 
 
 
Common Stock, $.01 par value, 200,000,000 authorized shares; 72,399,428 and 71,690,487 shares issued and outstanding, respectively
724 
717 
 
Additional paid-in capital
1,782,889 
1,766,886 
 
Distributions in excess of net income available for common stockholders
(802,606)
(761,785)
 
Accumulated other comprehensive loss
(4,177)
(3,648)
 
Total Stockholders' Equity
1,005,917 
1,083,762 
 
Noncontrolling interests in consolidated affiliates
4,446 
4,460 
 
Total Equity
1,010,363 
1,088,222 
1,133,143 
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Equity
2,889,480 
2,871,835 
 
Highwoods Realty Limited Partnership [Member]
 
 
 
Real estate assets, at cost:
 
 
 
Land
345,791 
345,088 
 
Buildings and tenant improvements
2,886,871 
2,883,092 
 
Development in process
13,317 
4,524 
 
Land held for development
106,871 
107,101 
 
Total real estate assets
3,352,850 
3,339,805 
 
Less-accumulated depreciation
(863,730)
(830,153)
 
Net real estate assets
2,489,120 
2,509,652 
 
For-sale residential condominiums
5,840 
8,225 
 
Real estate and other assets, net, held for sale
11,609 
13,607 
 
Cash and cash equivalents
9,087 
14,198 
23,519 
Restricted cash
7,619 
4,399 
 
Accounts receivable, net of allowance of $3,470 and $3,595, respectively
22,952 
20,716 
 
Mortgages and notes receivable, net of allowance of $617 and $868, respectively
18,809 
19,044 
 
Accrued straight-line rents receivable, net of allowance of $1,360 and $2,209, respectively
99,466 
93,178 
 
Investment in and advances to unconsolidated affiliates
101,893 
62,451 
 
Deferred financing and leasing costs, net of accumulated amortization of $62,542 and $59,360, respectively
85,168 
85,001 
 
Prepaid expenses and other assets
36,533 
40,200 
 
Total Assets
2,888,096 
2,870,671 
 
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Liabilities, Redeemable Operating Partnership Units and Equity:
 
 
 
Mortgages and notes payable
1,615,068 
1,522,945 
 
Accounts payable, accrued expenses and other liabilities
106,105 
106,716 
 
Financing obligations
32,869 
33,114 
 
Total Liabilities
1,754,042 
1,662,775 
 
Commitments and contingencies
 
 
 
Redeemable Operating Partnership Units:
 
 
 
Common Units, 3,775,250 and 3,793,987 outstanding, respectively
125,075 
120,838 
 
Total Redeemable Operating Partnership Units
154,162 
202,430 
 
Equity:
 
 
 
General partner Common Units, 757,659 and 750,757 outstanding, respectively
9,794 
10,044 
 
Limited partner Common Units, 71,232,960 and 70,530,921 outstanding, respectively
969,829 
994,610 
 
Accumulated other comprehensive loss
(4,177)
(3,648)
 
Noncontrolling interests in consolidated affiliates
4,446 
4,460 
 
Total Equity
979,892 
1,005,466 
1,050,185 
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Equity
2,888,096 
2,870,671 
 
Highwoods Realty Limited Partnership [Member] |
Series A Preferred Units [Member]
 
 
 
Redeemable Operating Partnership Units:
 
 
 
Preferred Units
29,087 
29,092 
 
Highwoods Realty Limited Partnership [Member] |
Series B Preferred Units [Member]
 
 
 
Redeemable Operating Partnership Units:
 
 
 
Preferred Units
0 
52,500 
 
8.625% Series A Cumulative Redeemable Preferred Stock [Member]
 
 
 
Equity:
 
 
 
Preferred Stock
29,087 
29,092 
 
8.000% Series B Cumulative Redeemable Preferred Stock [Member]
 
 
 
Equity:
 
 
 
Preferred Stock
$ 0 
$ 52,500 
 
Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $)
In Thousands, except Share data
Jun. 30, 2011
Dec. 31, 2010
Assets:
 
 
Accounts receivable allowance
$ 3,470 
$ 3,595 
Mortgages and notes receivable allowance
617 
868 
Accrued straight-line rents receivable allowance
1,360 
2,209 
Deferred financing and leasing costs, accumulated amortization
62,542 
59,360 
Equity:
 
 
Preferred Stock, par value (in dollars per share)
$ 0.01 
$ 0.01 
Preferred Stock, authorized shares (in shares)
50,000,000 
50,000,000 
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)
72,399,428 
71,690,487 
Common Stock, shares outstanding (in shares)
72,399,428 
71,690,487 
Highwoods Realty Limited Partnership [Member]
 
 
Assets:
 
 
Accounts receivable allowance
3,470 
3,595 
Mortgages and notes receivable allowance
617 
868 
Accrued straight-line rents receivable allowance
1,360 
2,209 
Deferred financing and leasing costs, accumulated amortization
$ 62,542 
$ 59,360 
Redeemable Operating Partnership Units:
 
 
Redeemable Common Units, outstanding (in shares)
3,775,250 
3,793,987 
Common Units: [Abstract]
 
 
General Partner Common Units, outstanding (in shares)
757,659 
750,757 
Limited Partner Common Units, outstanding (in shares)
71,232,960 
70,530,921 
Highwoods Realty Limited Partnership [Member] |
Series A Preferred Units [Member]
 
 
Redeemable Operating Partnership Units:
 
 
Preferred Units, liquidation preference (in dollars per share)
$ 1,000 
$ 1,000 
Preferred Units, issued (in shares)
29,087 
29,092 
Preferred Units, outstanding (in shares)
29,087 
29,092 
Highwoods Realty Limited Partnership [Member] |
Series B Preferred Units [Member]
 
 
Redeemable Operating Partnership Units:
 
 
Preferred Units, liquidation preference (in dollars per share)
$ 25 
$ 25 
Preferred Units, issued (in shares)
0 
2,100,000 
Preferred Units, outstanding (in shares)
0 
2,100,000 
8.625% Series A Cumulative Redeemable Preferred Stock [Member]
 
 
Equity:
 
 
Preferred stock, liquidation preference (in dollars per share)
$ 1,000 
$ 1,000 
Preferred stock, shares issued (in shares)
29,087 
29,092 
Preferred stock, shares outstanding (in shares)
29,087 
29,092 
8.000% Series B Cumulative Redeemable Preferred Stock [Member]
 
 
Equity:
 
 
Preferred stock, liquidation preference (in dollars per share)
$ 25 
$ 25 
Preferred stock, shares issued (in shares)
0 
2,100,000 
Preferred stock, shares outstanding (in shares)
0 
2,100,000 
Consolidated Statements of Income (Unaudited) (USD $)
In Thousands, except Per Share data
3 Months Ended
Jun. 30,		 6 Months Ended
Jun. 30,
2011
2010
2011
2010
Rental and other revenues
$ 117,057 
$ 113,765 
$ 232,036 
$ 228,268 
Operating expenses:
 
 
 
 
Rental property and other expenses
41,143 
38,143 
82,341 
79,647 
Depreciation and amortization
33,430 
33,260 
67,147 
65,898 
General and administrative
7,978 
6,980 
15,771 
15,487 
Total operating expenses
82,551 
78,383 
165,259 
161,032 
Interest expense:
 
 
 
 
Contractual
22,940 
21,705 
45,371 
43,507 
Amortization of deferred financing costs
821 
835 
1,642 
1,670 
Financing obligations
146 
394 
437 
870 
Total interest expense
23,907 
22,934 
47,450 
46,047 
Other income:
 
 
 
 
Interest and other income
1,899 
965 
3,772 
2,665 
Loss on debt extinguishment
(24)
0 
(24)
0 
Total other income
1,875 
965 
3,748 
2,665 
Income from continuing operations before disposition of property, condominiums and investment in unconsolidated affiliates and equity in earnings of unconsolidated affiliates
12,474 
13,413 
23,075 
23,854 
Gains on disposition of property
200 
17 
200 
36 
Gains on disposition of for-sale residential condominiums
116 
163 
154 
353 
Gains on disposition of investment in unconsolidated affiliates
0 
25,330 
0 
25,330 
Equity in earnings of unconsolidated affiliates
1,353 
888 
2,820 
1,683 
Income from continuing operations
14,143 
39,811 
26,249 
51,256 
Discontinued operations:
 
 
 
 
Income from discontinued operations
291 
498 
628 
961 
Net losses on disposition of discontinued operations
0 
(260)
0 
(86)
Total discontinued operations
291 
238 
628 
875 
Net income
14,434 
40,049 
26,877 
52,131 
Net (income) attributable to noncontrolling interests in the Operating Partnership
(623)
(1,933)
(1,130)
(2,453)
Net (income) attributable to noncontrolling interests in consolidated affiliates
(182)
(215)
(305)
(429)
Dividends on Preferred Stock
(1,622)
(1,677)
(3,299)
(3,354)
Excess of Preferred Stock redemption/repurchase cost over carrying value
(1,895)
0 
(1,895)
0 
Net income available for common stockholders
10,112 
36,224 
20,248 
45,895 
Earnings per Common Share - basic:
 
 
 
 
Income from continuing operations available for common stockholders (in dollars per share)
$ 0.14 
$ 0.51 
$ 0.27 
$ 0.63 
Income from discontinued operations available for common stockholders (in dollars per share)
$ 0 
$ 0 
$ 0.01 
$ 0.01 
Net income available for common stockholders (in dollars per share)
$ 0.14 
$ 0.51 
$ 0.28 
$ 0.64 
Weighted average Common Shares outstanding - basic (in shares)
72,211 
71,601 
72,015 
71,508 
Earnings per Common Share - diluted:
 
 
 
 
Income from continuing operations available for common stockholders (in dollars per share)
$ 0.14 
$ 0.50 
$ 0.27 
$ 0.63 
Income from discontinued operations available for common stockholders (in dollars per share)
$ 0 
$ 0 
$ 0.01 
$ 0.01 
Net income available for common stockholders (in dollars per share)
$ 0.14 
$ 0.50 
$ 0.28 
$ 0.64 
Weighted average Common Shares outstanding - diluted (in shares)
76,197 1
75,607 1
75,987 1
75,504 1
Dividends declared per Common Share (in dollars per share)
$ 0.425 
$ 0.425 
$ 0.85 
$ 0.85 
Net income available for common stockholders:
 
 
 
 
Income from continuing operations available for common stockholders
9,836 
35,998 
19,652 
45,064 
Income from discontinued operations available for common stockholders
276 
226 
596 
831 
Net income available for common stockholders
10,112 
36,224 
20,248 
45,895 
Highwoods Realty Limited Partnership [Member]
 
 
 
 
Rental and other revenues
117,057 
113,765 
232,036 
228,268 
Operating expenses:
 
 
 
 
Rental property and other expenses
41,080 
38,253 
82,427 
79,437 
Depreciation and amortization
33,430 
33,260 
67,147 
65,898 
General and administrative
8,041 
6,870 
15,685 
15,697 
Total operating expenses
82,551 
78,383 
165,259 
161,032 
Interest expense:
 
 
 
 
Contractual
22,940 
21,705 
45,371 
43,507 
Amortization of deferred financing costs
821 
835 
1,642 
1,670 
Financing obligations
146 
394 
437 
870 
Total interest expense
23,907 
22,934 
47,450 
46,047 
Other income:
 
 
 
 
Interest and other income
1,899 
965 
3,772 
2,665 
Loss on debt extinguishment
(24)
0 
(24)
0 
Total other income
1,875 
965 
3,748 
2,665 
Income from continuing operations before disposition of property, condominiums and investment in unconsolidated affiliates and equity in earnings of unconsolidated affiliates
12,474 
13,413 
23,075 
23,854 
Gains on disposition of property
200 
17 
200 
36 
Gains on disposition of for-sale residential condominiums
116 
163 
154 
353 
Gains on disposition of investment in unconsolidated affiliates
0 
25,330 
0 
25,330 
Equity in earnings of unconsolidated affiliates
1,357 
871 
2,832 
1,672 
Income from continuing operations
14,147 
39,794 
26,261 
51,245 
Discontinued operations:
 
 
 
 
Income from discontinued operations
291 
498 
628 
961 
Net losses on disposition of discontinued operations
0 
(260)
0 
(86)
Total discontinued operations
291 
238 
628 
875 
Net income
14,438 
40,032 
26,889 
52,120 
Net (income) attributable to noncontrolling interests in consolidated affiliates
(182)
(215)
(305)
(429)
Distributions on Preferred Units
(1,622)
(1,677)
(3,299)
(3,354)
Excess of Preferred Unit redemption/repurchase cost over carrying value
(1,895)
0 
(1,895)
0 
Net income available for common unitholders
10,739 
38,140 
21,390 
48,337 
Earnings per Common Unit - basic:
 
 
 
 
Income from continuing operations available for common unitholders (in dollars per share)
$ 0.14 
$ 0.51 
$ 0.27 
$ 0.64 
Income from discontinued operations available for common unitholders (in dollars per share)
$ 0 
$ 0 
$ 0.01 
$ 0.01 
Net income available for common unitholders (in dollars per share)
$ 0.14 
$ 0.51 
$ 0.28 
$ 0.65 
Weighted average Common Units outstanding - basic (in shares)
75,586 
74,989 
75,393 
74,907 
Earnings per Common Unit - diluted:
 
 
 
 
Income from continuing operations available for common unitholders (in dollars per share)
$ 0.14 
$ 0.51 
$ 0.27 
$ 0.64 
Income from discontinued operations available for common unitholders (in dollars per share)
$ 0 
$ 0 
$ 0.01 
$ 0 
Net income available for common unitholders (in dollars per share)
$ 0.14 
$ 0.51 
$ 0.28 
$ 0.64 
Weighted average Common Units outstanding - diluted (in shares)
75,788 
75,198 
75,578 
75,095 
Distributions declared per Common Unit (in dollars per share)
$ 0.425 
$ 0.425 
$ 0.85 
$ 0.85 
Net income available for common unitholders:
 
 
 
 
Income from continuing operations available for common unitholders
10,448 
37,902 
20,762 
47,462 
Income from discontinued operations available for common unitholders
291 
238 
628 
875 
Net income available for common unitholders
$ 10,739 
$ 38,140 
$ 21,390 
$ 48,337 
Consolidated Statements of Equity (Unaudited) (USD $)
In Thousands, except Share data
Total
Common Stock [Member]
Series A Cumulative Redeemable Preferred Shares [Member]
Series B Cumulative Redeemable Preferred Shares [Member]
Additional Paid-in Capital [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Noncontrolling Interests in Consolidated Affiliates [Member]
Distributions in Excess of Net Income Available for Common Stockholders [Member]
Highwoods Realty Limited Partnership [Member]
Highwoods Realty Limited Partnership [Member]
General Partner Common Units [Member]
Highwoods Realty Limited Partnership [Member]
Limited Partner Common Units [Member]
Highwoods Realty Limited Partnership [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Highwoods Realty Limited Partnership [Member]
Noncontrolling Interests in Consolidated Affiliates [Member]
Balance at Dec. 31, 2009
$ 1,133,143 
$ 713 
$ 29,092 
$ 52,500 
$ 1,751,398 
$ (3,811)
$ 5,183 
$ (701,932)
$ 1,050,185 
$ 10,485 
$ 1,038,328 
$ (3,811)
$ 5,183 
Balance (in shares) at Dec. 31, 2009
 
71,285,303 
 
 
 
 
 
 
 
 
 
 
 
Issuance of Common Units, net
 
 
 
 
 
 
 
 
1,062 
11 
1,051 
 
 
Distributions on Preferred Units
 
 
 
 
 
 
 
 
(3,354)
(34)
(3,320)
 
 
Distributions on Common Units
 
 
 
 
 
 
 
 
(63,648)
(637)
(63,011)
 
 
Issuances of Common Stock - Shares
 
71,568 
 
 
 
 
 
 
 
 
 
 
 
Issuances of Common Stock, net
1,062 
1 
 
 
1,061 
 
 
 
 
 
 
 
 
Conversion of Common Units to Common Stock - Shares
 
93,971 
 
 
 
 
 
 
 
 
 
 
 
Conversion of Common Units to Common Stock
2,958 
1 
 
 
2,957 
 
 
 
 
 
 
 
 
Dividends on Common Stock
(60,753)
 
 
 
 
 
 
(60,753)
 
 
 
 
 
Dividends on Preferred Stock
(3,354)
 
 
 
 
 
 
(3,354)
 
 
 
 
 
Adjustment of noncontrolling interests in the Operating Partnership to fair value
20,612 
 
 
 
20,612 
 
 
 
 
 
 
 
 
Distributions to noncontrolling interests in consolidated affiliates
(324)
 
 
 
 
 
(324)
 
(324)
 
 
 
(324)
Issuances of restricted stock, net - Shares
 
164,143 
 
 
 
 
 
 
 
 
 
 
 
Issuances of restricted stock, net
0 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based compensation expense
3,497 
1 
 
 
3,496 
 
 
 
3,497 
35 
3,462 
 
 
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner
 
 
 
 
 
 
 
 
24,282 
243 
24,039 
 
 
Net (income) attributable to noncontrolling interests in the Operating Partnership
(2,453)
 
 
 
 
 
 
(2,453)
 
 
 
 
 
Net (income) attributable to noncontrolling interests in consolidated affiliates
0 
 
 
 
 
 
429 
(429)
0 
(4)
(425)
 
429 
Comprehensive income:
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
52,131 
 
 
 
 
 
 
52,131 
52,120 
521 
51,599 
 
 
Other comprehensive income/(loss)
536 
 
 
 
 
536 
 
 
536 
 
 
536 
 
Total comprehensive income
52,667 
 
 
 
 
 
 
 
52,656 
 
 
 
 
Balance at Jun. 30, 2010
1,147,055 
716 
29,092 
52,500 
1,779,524 
(3,275)
5,288 
(716,790)
1,064,356 
10,620 
1,051,723 
(3,275)
5,288 
Balance (in shares) at Jun. 30, 2010
 
71,614,985 
 
 
 
 
 
 
 
 
 
 
 
Balance at Mar. 31, 2010
 
 
 
 
 
 
 
 
 
 
 
 
 
Distributions on Preferred Units
 
 
 
 
 
 
 
 
(1,677)
 
 
 
 
Share-based compensation expense
1,400 
 
 
 
 
 
 
 
 
 
 
 
 
Net (income) attributable to noncontrolling interests in the Operating Partnership
(1,933)
 
 
 
 
 
 
 
 
 
 
 
 
Comprehensive income:
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
40,049 
 
 
 
 
 
 
 
40,032 
 
 
 
 
Other comprehensive income/(loss)
78 
 
 
 
 
 
 
 
 
 
 
 
 
Total comprehensive income
40,127 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at Jun. 30, 2010
1,147,055 
 
29,092 
52,500 
 
 
 
 
1,064,356 
 
 
 
 
Balance at Dec. 31, 2010
1,088,222 
717 
29,092 
52,500 
1,766,886 
(3,648)
4,460 
(761,785)
1,005,466 
10,044 
994,610 
(3,648)
4,460 
Balance (in shares) at Dec. 31, 2010
71,690,487 
71,690,487 
 
 
 
 
 
 
 
 
 
 
 
Issuance of Common Units, net
 
 
 
 
 
 
 
 
16,984 
170 
16,814 
 
 
Distributions on Preferred Units
 
 
 
 
 
 
 
 
(3,299)
(33)
(3,266)
 
 
Distributions on Common Units
 
 
 
 
 
 
 
 
(63,936)
(640)
(63,296)
 
 
Issuances of Common Stock - Shares
 
556,652 
 
 
 
 
 
 
 
 
 
 
 
Issuances of Common Stock, net
16,984 
6 
 
 
16,978 
 
 
 
 
 
 
 
 
Conversion of Common Units to Common Stock - Shares
 
18,737 
 
 
 
 
 
 
 
 
 
 
 
Conversion of Common Units to Common Stock
635 
 
 
 
635 
 
 
 
 
 
 
 
 
Dividends on Common Stock
(61,069)
 
 
 
 
 
 
(61,069)
 
 
 
 
 
Dividends on Preferred Stock
(3,299)
 
 
 
 
 
 
(3,299)
 
 
 
 
 
Adjustment of noncontrolling interests in the Operating Partnership to fair value
(6,957)
 
 
 
(6,957)
 
 
 
 
 
 
 
 
Distributions to noncontrolling interests in consolidated affiliates
(319)
 
 
 
 
 
(319)
 
(319)
 
 
 
(319)
Issuances of restricted stock, net - Shares
 
133,552 
 
 
 
 
 
 
 
 
 
 
 
Issuances of restricted stock, net
0 
 
 
 
 
 
 
 
 
 
 
 
 
Redemptions/repurchases of Preferred Stock
(52,505)
 
(5)
(52,500)
1,895 
 
 
(1,895)
 
 
 
 
 
Share-based compensation expense
3,453 
1 
 
 
3,452 
 
 
 
3,453 
35 
3,418 
 
 
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner
 
 
 
 
 
 
 
 
(4,817)
(48)
(4,769)
 
 
Net (income) attributable to noncontrolling interests in the Operating Partnership
(1,130)
 
 
 
 
 
 
(1,130)
 
 
 
 
 
Net (income) attributable to noncontrolling interests in consolidated affiliates
0 
 
 
 
 
 
305 
(305)
0 
(3)
(302)
 
305 
Comprehensive income:
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
26,877 
 
 
 
 
 
 
26,877 
26,889 
269 
26,620 
 
 
Other comprehensive income/(loss)
(529)
 
 
 
 
(529)
 
 
(529)
 
 
(529)
 
Total comprehensive income
26,348 
 
 
 
 
 
 
 
26,360 
 
 
 
 
Balance at Jun. 30, 2011
1,010,363 
724 
29,087 
0 
1,782,889 
(4,177)
4,446 
(802,606)
979,892 
9,794 
969,829 
(4,177)
4,446 
Balance (in shares) at Jun. 30, 2011
72,399,428 
72,399,428 
 
 
 
 
 
 
 
 
 
 
 
Balance at Mar. 31, 2011
 
 
 
 
 
 
 
 
 
 
 
 
 
Distributions on Preferred Units
 
 
 
 
 
 
 
 
(1,622)
 
 
 
 
Share-based compensation expense
1,400 
 
 
 
 
 
 
 
 
 
 
 
 
Net (income) attributable to noncontrolling interests in the Operating Partnership
(623)
 
 
 
 
 
 
 
 
 
 
 
 
Comprehensive income:
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
14,434 
 
 
 
 
 
 
 
14,438 
 
 
 
 
Other comprehensive income/(loss)
(365)
 
 
 
 
 
 
 
 
 
 
 
 
Total comprehensive income
14,069 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at Jun. 30, 2011
$ 1,010,363 
 
 
 
 
 
 
 
$ 979,892 
 
 
 
 
Balance (in shares) at Jun. 30, 2011
72,399,428 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Thousands
6 Months Ended
Jun. 30,
2011
2010
Operating activities:
 
 
Net income
$ 26,877 
$ 52,131 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Depreciation and amortization
67,274 
66,447 
Amortization of lease incentives and acquisition-related intangible assets and liabilities
968 
537 
Share-based compensation expense
3,453 
3,497 
Allowance for losses on accounts and accrued straight-line rents receivable
1,029 
2,636 
Amortization of deferred financing costs
1,642 
1,670 
Amortization of settled cash-flow hedges
(58)
287 
Loss on debt extinguishment
24 
0 
Net (gains)/losses on disposition of property
(200)
50 
Gains on disposition of for-sale residential condominiums
(154)
(353)
Gains on disposition of investment in unconsolidated affiliates
0 
(25,330)
Equity in earnings of unconsolidated affiliates
(2,820)
(1,683)
Changes in financing obligations
(245)
81 
Distributions of earnings from unconsolidated affiliates
2,162 
1,717 
Changes in operating assets and liabilities:
 
 
Accounts receivable
(1,821)
(1,430)
Prepaid expenses and other assets
(644)
1,734 
Accrued straight-line rents receivable
(6,098)
(5,296)
Accounts payable, accrued expenses and other liabilities
(3,794)
3,352 
Net cash provided by operating activities
87,595 
100,047 
Investing activities:
 
 
Additions to real estate assets and deferred leasing costs
(44,447)
(38,292)
Net proceeds from disposition of real estate assets
2,063 
6,801 
Net proceeds from disposition of for-sale residential condominiums
2,401 
3,186 
Proceeds from disposition of investment in unconsolidated affiliates
0 
15,000 
Distributions of capital from unconsolidated affiliates
632 
1,106 
Repayments of mortgages and notes receivable
235 
29 
Investment in and advances to unconsolidated affiliates
(39,402)
(303)
Changes in restricted cash and other investing activities
(395)
(3,178)
Net cash used in investing activities
(78,913)
(15,651)
Financing activities:
 
 
Dividends on Common Stock
(61,069)
(60,753)
Redemptions/repurchases of Preferred Stock
(52,505)
0 
Dividends on Preferred Stock
(3,299)
(3,354)
Distributions to noncontrolling interests in the Operating Partnership
(3,215)
(3,243)
Distributions to noncontrolling interests in consolidated affiliates
(319)
(324)
Net proceeds from the issuance of Common Stock
16,984 
1,062 
Borrowings on revolving credit facility
124,700 
4,000 
Repayments of revolving credit facility
(79,300)
(4,000)
Borrowings on mortgages and notes payable
200,000 
0 
Repayments of mortgages and notes payable
(153,522)
(5,452)
Additions to deferred financing costs and other financing activities
(2,104)
(188)
Net cash used in financing activities
(13,649)
(72,252)
Net increase/(decrease) in cash and cash equivalents
(4,967)
12,144 
Cash and cash equivalents at beginning of the period
14,206 
23,699 
Cash and cash equivalents at end of the period
9,239 
35,843 
Supplemental disclosure of cash flow information:
 
 
Cash paid for interest, net of amounts capitalized
44,948 
43,204 
Supplemental disclosure of non-cash investing and financing activities:
 
 
Conversion of Common Units to Common Stock
635 
2,958 
Change in accrued capital expenditures
1,525 
(2,294)
Write-off of fully depreciated real estate assets
23,352 
24,273 
Write-off of fully amortized deferred financing and leasing costs
8,247 
7,963 
Unrealized gains on marketable securities of non-qualified deferred compensation plan
210 
174 
Settlement of financing obligation
0 
4,184 
Adjustment of noncontrolling interests in the Operating Partnership to fair value
6,957 
(20,612)
Unrealized gain/(loss) on tax increment financing bond
(471)
146 
Mortgages receivable from seller financing
0 
17,030 
Highwoods Realty Limited Partnership [Member]
 
 
Operating activities:
 
 
Net income
26,889 
52,120 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Depreciation and amortization
67,274 
66,447 
Amortization of lease incentives and acquisition-related intangible assets and liabilities
968 
537 
Share-based compensation expense
3,453 
3,497 
Allowance for losses on accounts and accrued straight-line rents receivable
1,029 
2,636 
Amortization of deferred financing costs
1,642 
1,670 
Amortization of settled cash-flow hedges
(58)
287 
Loss on debt extinguishment
24 
0 
Net (gains)/losses on disposition of property
(200)
50 
Gains on disposition of for-sale residential condominiums
(154)
(353)
Gains on disposition of investment in unconsolidated affiliates
0 
(25,330)
Equity in earnings of unconsolidated affiliates
(2,832)
(1,672)
Changes in financing obligations
(245)
81 
Distributions of earnings from unconsolidated affiliates
2,150 
1,704 
Changes in operating assets and liabilities:
 
 
Accounts receivable
(1,821)
(1,616)
Prepaid expenses and other assets
(544)
1,769 
Accrued straight-line rents receivable
(6,098)
(5,296)
Accounts payable, accrued expenses and other liabilities
(3,794)
3,352 
Net cash provided by operating activities
87,683 
99,883 
Investing activities:
 
 
Additions to real estate assets and deferred leasing costs
(44,447)
(38,292)
Net proceeds from disposition of real estate assets
2,063 
6,801 
Net proceeds from disposition of for-sale residential condominiums
2,401 
3,186 
Proceeds from disposition of investment in unconsolidated affiliates
0 
15,000 
Distributions of capital from unconsolidated affiliates
632 
1,106 
Repayments of mortgages and notes receivable
235 
29 
Investment in and advances to unconsolidated affiliates
(39,402)
(303)
Changes in restricted cash and other investing activities
(395)
(3,178)
Net cash used in investing activities
(78,913)
(15,651)
Financing activities:
 
 
Distributions on Common Units
(63,936)
(63,648)
Redemptions/repurchases of Preferred Units
(52,505)
0 
Distributions on Preferred Units
(3,299)
(3,354)
Distributions to noncontrolling interests in consolidated affiliates
(319)
(324)
Net proceeds from the issuance of Common Units
16,984 
1,062 
Borrowings on revolving credit facility
124,700 
4,000 
Repayments of revolving credit facility
(79,300)
(4,000)
Borrowings on mortgages and notes payable
200,000 
0 
Repayments of mortgages and notes payable
(153,522)
(5,452)
Additions to deferred financing costs and other financing activities
(2,684)
(290)
Net cash used in financing activities
(13,881)
(72,006)
Net increase/(decrease) in cash and cash equivalents
(5,111)
12,226 
Cash and cash equivalents at beginning of the period
14,198 
23,519 
Cash and cash equivalents at end of the period
9,087 
35,745 
Supplemental disclosure of cash flow information:
 
 
Cash paid for interest, net of amounts capitalized
44,948 
43,204 
Supplemental disclosure of non-cash investing and financing activities:
 
 
Change in accrued capital expenditures
1,525 
(2,294)
Write-off of fully depreciated real estate assets
23,352 
24,273 
Write-off of fully amortized deferred financing and leasing costs
8,247 
7,963 
Unrealized gains on marketable securities of non-qualified deferred compensation plan
210 
174 
Settlement of financing obligation
0 
4,184 
Adjustment of Redeemable Common Units to fair value
4,237 
(24,360)
Unrealized gain/(loss) on tax increment financing bond
(471)
146 
Mortgages receivable from seller financing
$ 0 
$ 17,030 
Description of Business and Significant Accounting Policies
Description of Business and Significant Accounting Policies
1.      Description of Business and Significant Accounting Policies

Description of Business

The Company is a fully-integrated, self-administered and self-managed equity real estate investment trust (“REIT”) that operates in the Southeastern and Midwestern United States. The Company conducts virtually all of its activities through the Operating Partnership. At June 30, 2011, the Company and/or the Operating Partnership wholly owned: 296 in-service office, industrial and retail properties, comprising 27.3 million square feet; 96 rental residential units; 19 for-sale residential condominiums; 603 acres of undeveloped land suitable for future development, of which 523 acres are considered core holdings; and an additional office property that is considered completed but not yet stabilized.

The Company is the sole general partner of the Operating Partnership. At June 30, 2011, the Company owned all of the Preferred Units and 72.0 million, or 95.0%, of the Common Units. Limited partners (including one officer and two directors of the Company) own the remaining 3.8 million Common Units. Generally, the Operating Partnership is obligated to redeem each Common Unit at the request of the holder thereof for cash equal to the value of one share of Common Stock, $.01 par value, based on the average of the market price for the 10 trading days immediately preceding the notice date of such redemption provided that the Company, at its option, may elect to acquire any such Common Units presented for redemption for cash or one share of Common Stock. The Common Units owned by the Company are not redeemable. During the six months ended June 30, 2011, the Company redeemed 18,737 Common Units for a like number of shares of Common Stock.

Common Stock Offering

In the second quarter of 2011, we entered into equity sales agreements with various financial institutions to offer and sell, from time to time, shares of our Common Stock having an aggregate offering price of up to $150.0 million. During the second quarter of 2011, we issued 236,000 shares of Common Stock under these agreements at an average price of $35.62 per share raising net proceeds, after sales commissions and expenses, of $8.3 million.

Preferred Stock Retirements

In the second quarter of 2011, we redeemed the remaining 2.1 million outstanding 8.0% Series B Cumulative Redeemable Preferred Shares for an aggregate redemption price of $52.5 million, excluding accrued dividends. In connection with this redemption, the $1.9 million excess of the redemption cost over the net carrying amount of the redeemed shares was recorded as a reduction to net income available for common stockholders in the second quarter of 2011.

Basis of Presentation

Our Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States (“GAAP”). Our Consolidated Balance Sheet at December 31, 2010 was revised from previously reported amounts to reflect those properties which required held for sale presentation. Our Consolidated Statements of Income for the three and six months ended June 30, 2010 were revised from previously reported amounts to reflect those properties sold or held for sale which required discontinued operations presentation.

Our Consolidated Financial Statements include the Operating Partnership, wholly owned subsidiaries and those entities in which we have the controlling financial interest. All significant intercompany transactions and accounts have been eliminated. At June 30, 2011 and December 31, 2010, we were not involved with any entities that were determined to be variable interest entities.
 
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 omitted certain notes and other information from the interim consolidated financial statements presented in this Quarterly Report on Form 10-Q as permitted by SEC rules and regulations. These Consolidated Financial Statements should be read in conjunction with our 2010 Annual Report on Form 10-K.

Use of Estimates

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

Recently Issued Accounting Standards

Beginning with our Quarterly Report on Form 10-Q for the three months ended March 31, 2012, we will be required to enhance our disclosure of assets and liabilities measured at fair value. This includes disclosing any significant transfers between Levels 1 and 2 of the fair value hierarchy, additional quantitative and qualitative information regarding fair value measurements categorized as Level 3 of the fair value hierarchy and the hierarchy classification for items whose fair value is not recorded on our Consolidated Balance Sheets but is disclosed in our Notes to Consolidated Financial Statements. Additionally, we will be required to present comprehensive income on the face of our Consolidated Statements of Income, which previously has been disclosed in our Notes to Consolidated Financial Statements.
Real Estate Assets
Real Estate Assets
2.      Real Estate Assets

Acquisitions

During the second quarter of 2011, we acquired a 48,000 square foot medical office property in Raleigh, NC for approximately $9.0 million in cash and incurred $0.1 million of acquisition-related costs.
Mortgages and Notes Receivable
Mortgages and Notes Receivable
3.      Mortgages and Notes Receivable

The following table sets forth our mortgages and notes receivable:

   
June 30,
2011
 
December 31,
2010
 
Seller financing (first mortgages)
 
$
17,180
 
$
17,180
 
Less allowance
   
—
   
—
 
     
17,180
   
17,180
 
Promissory notes
   
2,246
   
2,732
 
Less allowance
   
(617
)
 
(868
)
     
1,629
   
1,864
 
Mortgages and notes receivable, net
 
$
18,809
 
$
19,044
 
 
The following table sets forth our notes receivable allowance, which relates only to promissory notes:

   
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
   
2011
 
2010
 
2011
 
2010
 
Beginning notes receivable allowance
 
$
497
 
$
732
 
$
868
 
$
698
 
Bad debt expense
   
162
   
25
   
184
   
88
 
Write-offs
   
—
   
(5
)
 
(364
)
 
(5
)
Recoveries/other
   
(42
)
 
19
   
(71
)
 
(10
)
Total notes receivable allowance
 
$
617
 
$
771
 
$
617
 
$
771
 

Our mortgages and notes receivable consists primarily of seller financing issued in conjunction with two disposition transactions in the second quarter of 2010. As of June 30, 2011, the interest payments on both mortgages receivable were current and there were no indications of impairment on the receivables.

Investment in and Advances to Unconsolidated Affiliates
Investments in and Advances To Affiliates
4.      Investment in and Advances to Unconsolidated Affiliates

We have equity interests ranging from 10.0% to 50.0% in various joint ventures with unrelated third parties and a debt interest in one of those joint ventures, as described below. The following table sets forth the combined, summarized income statements for our unconsolidated joint ventures:

   
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
   
2011
 
2010
 
2011
 
2010
 
Income Statements:
                         
Revenues                                                                      
 
$
24,779
 
$
31,714
 
$
49,996
 
$
67,302
 
Expenses:
                         
Rental property and other expenses
   
10,774
   
15,632
   
22,771
   
32,799
 
Depreciation and amortization
   
6,295
   
7,778
   
12,911
   
17,378
 
Interest expense
   
5,858
   
7,233
   
11,865
   
15,798
 
Total expenses
   
22,927
   
30,643
   
47,547
   
65,975
 
Net income
 
$
1,852
 
$
1,071
 
$
2,449
 
$
1,327
 
Our share of:
                         
Depreciation and amortization of real estate assets
 
$
2,033
 
$
2,737
 
$
4,126
 
$
6,078
 
Interest expense
 
$
2,033
 
$
2,755
 
$
4,194
 
$
6,178
 
Net income
 
$
749
 
$
308
 
$
1,670
 
$
520
 
                           
Our share of net income
 
$
749
 
$
308
 
$
1,670
 
$
520
 
Purchase accounting and management, leasing and other fees adjustments
   
604
   
580
   
1,150
   
1,163
 
Equity in earnings of unconsolidated affiliates
 
$
1,353
 
$
888
 
$
2,820
 
$
1,683
 
 
In the second quarter of 2011, we provided a one-year $38.3 million interest-only secured loan to an unconsolidated joint venture, which was used to repay a secured loan before maturity to a third party lender. The loan bears interest at LIBOR plus 500 basis points, which may be reduced by up to 50 basis points upon the use of proceeds from the sale of certain assets by the joint venture to repay the loan.

During the second quarter of 2010, we sold our equity interests in a series of unconsolidated joint ventures relating to properties in Des Moines, IA. For information regarding this sale, see Note 3 to the Consolidated Financial Statements in our 2010 Annual Report on Form 10-K.
Intangible Assets and Liabilities
Intangible Assets and Liabilities
5.      Intangible Assets and Liabilities

The following table sets forth total intangible assets and liabilities, net of accumulated amortization:

   
June 30,
2011
 
December 31,
2010
 
Assets:
             
Deferred financing costs
 
$
17,295
 
$
16,412
 
Less accumulated amortization
   
(7,996
)
 
(7,054
)
     
9,299
   
9,358
 
Deferred leasing costs (including lease incentives and acquisition-related intangible assets)
   
130,415
   
127,949
 
Less accumulated amortization
   
(54,546
)
 
(52,306
)
     
75,869
   
75,643
 
Deferred financing and leasing costs, net
 
$
85,168
 
$
85,001
 
               
Liabilities (in accounts payable, accrued expenses and other liabilities):
             
Acquisition-related intangible liabilities
 
$
720
 
$
658
 
Less accumulated amortization
   
(226
)
 
(125
)
   
$
494
 
$
533
 

The following table sets forth amortization of intangible assets and liabilities:

   
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
   
2011
 
2010
 
2011
 
2010
 
Amortization of deferred financing costs
 
$
821
 
$
835
 
$
1,642
 
$
1,670
 
Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization)
 
$
4,401
 
$
3,817
 
$
8,757
 
$
7,583
 
Amortization of lease incentives (in rental and other revenues)
 
$
303
 
$
276
 
$
641
 
$
537
 
Amortization of acquisition-related intangible assets and liabilities (in rental and other revenues)
 
$
166
 
$
36
 
$
327
 
$
76
 
 
The following table sets forth scheduled future amortization of intangible assets and liabilities:

   
Amortization of Deferred Financing Costs
 
Amortization of Deferred Leasing Costs and Acquisition-Related Intangible Assets (in Depreciation and Amortization)
 
Amortization of Lease Incentives (in Rental and Other Revenues)
 
Amortization of Acquisition-Related Intangible Assets and Liabilities (in Rental and Other Revenues)
 
July 1, 2011 through December 31, 2011
 
$
1,724
 
$
8,653
 
$
613
 
$
320
 
2012                                                             
   
3,093
   
15,087
   
1,141
   
561
 
2013                                                             
   
1,486
   
12,106
   
983
   
390
 
2014                                                             
   
1,098
   
9,398
   
819
   
298
 
2015                                                             
   
1,098
   
6,966
   
603
   
188
 
Thereafter                                                             
   
800
   
14,690
   
2,088
   
471
 
   
$
9,299
 
$
66,900
 
$
6,247
 
$
2,228
 

The weighted average remaining amortization periods for deferred financing costs, deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization), lease incentives (in rental and other revenues) and acquisition-related intangible assets and liabilities (in rental and other revenues) were 3.3 years, 6.1 years, 7.9 years and 6.3 years, respectively, as of June 30, 2011.

In connection with the acquisition of a medical office property in Raleigh, NC in the second quarter of 2011, we recorded $0.1 million of above market lease intangible assets and $0.9 million of in-place lease intangible assets with weighted average amortization periods of 3.0 years each at the date of the acquisition.
Mortgages and Notes Payable
Mortgages and Notes Payable
6.      Mortgages and Notes Payable

The following table sets forth our consolidated mortgages and notes payable:

   
June 30,
2011
 
December 31,
2010
 
Secured indebtedness                                                                                                      
 
$
748,563
 
$
754,399
 
Unsecured indebtedness                                                                                                      
   
866,505
   
768,546
 
Total mortgages and notes payable
 
$
1,615,068
 
$
1,522,945
 

At June 30, 2011, our secured mortgage loans were secured by real estate assets with an aggregate undepreciated book value of $1.2 billion.

Our $400.0 million unsecured revolving credit facility is scheduled to mature on February 21, 2013 and includes an accordion feature that allows for an additional $50.0 million of borrowing capacity subject to additional lender commitments. Assuming we continue to have three publicly announced ratings from the credit rating agencies, the interest rate and facility fee under our revolving credit facility are based on the lower of the two highest publicly announced ratings. Based on our current credit ratings, the interest rate is LIBOR plus 290 basis points and the annual facility fee is 60 basis points. There was $75.4 million and $77.0 million outstanding under our revolving credit facility at June 30, 2011 and July 20, 2011, respectively. At both June 30, 2011 and July 20, 2011, 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 June 30, 2011 and July 20, 2011 was $324.4 million and $322.8 million, respectively.

Our secured construction facility, which has $52.1 million outstanding at June 30, 2011, is scheduled to mature on December 20, 2011. Assuming no defaults have occurred, we have the option to extend the maturity date for an additional one-year period. The interest rate is LIBOR plus 85 basis points. During the second quarter of 2011, we exercised our right to reduce the borrowing capacity of this facility to $52.1 million.

In the second quarter of 2011, we repaid the remaining $10.0 million of a three-year unsecured term loan before maturity. We incurred no penalties related to this repayment.

We are currently in compliance with the debt covenants and other requirements with respect to our outstanding debt.
Noncontrolling Interests
Noncontrolling Interests
7.      Noncontrolling Interests

Noncontrolling Interests in the Operating Partnership

Noncontrolling interests in the Operating Partnership relate to the ownership of Common Units by various individuals and entities other than the Company. The following table sets forth noncontrolling interests in the Operating Partnership:

   
Six Months Ended
June 30,
 
   
2011
 
2010
 
Beginning noncontrolling interests in the Operating Partnership
 
$
120,838
 
$
129,769
 
Adjustments of noncontrolling interests in the Operating Partnership to fair value
   
6,957
   
(20,612
)
Conversion of Common Units to Common Stock
   
(635
)
 
(2,958
)
Net income attributable to noncontrolling interests in the Operating Partnership
   
1,130
   
2,453
 
Distributions to noncontrolling interests in the Operating Partnership
   
(3,215
)
 
(3,243
)
Total noncontrolling interests in the Operating Partnership
 
$
125,075
 
$
105,409
 

The following table sets forth net income available for common stockholders and transfers from noncontrolling interests in the Operating Partnership:

   
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
   
2011
 
2010
 
2011
 
2010
 
Net income available for common stockholders                                                                               
 
$
10,112
 
$
36,224
 
$
20,248
 
$
45,895
 
Increase in additional paid in capital from conversion of Common Units to Common Stock
   
449
   
33
   
635
   
2,957
 
Change in equity from net income available for common stockholders and conversion of Common Units to Common Stock
 
$
10,561
 
$
36,257
 
$
20,883
 
$
48,852
 

Noncontrolling Interests in Consolidated Affiliates

At June 30, 2011, noncontrolling interests in consolidated affiliates relates to our joint venture partner’s 50.0% interest in office properties located in Richmond, VA. Our joint venture partner is an unrelated third party.
Disclosure About Fair Value of Financial Instruments
Disclosure About Fair Value of Financial Instruments
8.      Disclosure About Fair Value of Financial Instruments

The following summarizes the three levels of inputs that we use to measure fair value, as well as the assets, noncontrolling interests in the Operating Partnership and liabilities that we recognize at fair value using those levels of inputs.

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

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

We had no Level 2 assets or liabilities at both June 30, 2011 and December 31, 2010.

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 is our tax increment financing bond, which is not routinely traded but whose fair value is determined using an estimate of projected redemption value based on quoted bid/ask prices for similar unrated municipal bonds.

The following tables set forth the assets, noncontrolling interests in the Operating Partnership and liability that we measure at fair value by level within the fair value hierarchy. We determine the level based on the lowest level of substantive input used to determine fair value.

   
June 30,
2011
 
Level 1
 
Level 3
 
Assets:
                   
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
 
$
3,876
 
$
3,876
 
$
—
 
Tax increment financing bond (in prepaid expenses and other assets)
   
15,228
   
—
   
15,228
 
Total Assets
 
$
19,104
 
$
3,876
 
$
15,228
 
                     
Noncontrolling Interests in the Operating Partnership
 
$
125,075
 
$
125,075
 
$
—
 
                     
Liability:
                   
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
 
$
3,876
 
$
3,876
 
$
—
 


   
December 31,
2010
 
Level 1
 
Level 3
 
Assets:
                   
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
 
$
3,479
 
$
3,479
 
$
—
 
Tax increment financing bond (in prepaid expenses and other assets)
   
15,699
   
—
   
15,699
 
Total Assets
 
$
19,178
 
$
3,479
 
$
15,699
 
                     
Noncontrolling Interests in the Operating Partnership
 
$
120,838
 
$
120,838
 
$
—
 
                     
Liability:
                   
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
 
$
4,091
 
$
4,091
 
$
—
 

The following table sets forth our Level 3 asset:

   
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
   
2011
 
2010
 
2011
 
2010
 
Asset:
                         
Tax Increment Financing Bond
                         
Beginning balance
 
$
15,564
 
$
17,090
 
$
15,699
 
$
16,871
 
Unrealized gain/(loss) (in AOCL)
   
(336
)
 
(73
)
 
(471
)
 
146
 
Ending balance
 
$
15,228
 
$
17,017
 
$
15,228
 
$
17,017
 

We own a tax increment financing bond associated with a property developed by us. This bond amortizes to maturity in 2020. The estimated fair value at June 30, 2011 was $3.0 million below the outstanding principal due on the bond. If the yield-to-maturity used to fair value this bond was 100 basis points higher or lower, the fair value of the bond would have been $0.6 million lower or higher, respectively, as of June 30, 2011. Currently, we intend to hold this bond and have concluded that we will not be required to sell this bond before recovery of the bond principal. Payment of the principal and interest for the bond is guaranteed by us and, therefore, we have recorded no credit losses related to the bond in the three and six months ended June 30, 2011 and 2010. There is no legal right of offset with the liability, which we report as a financing obligation, related to this tax increment financing bond.

The following table sets forth the carrying amounts and fair values of our financial instruments not disclosed elsewhere in this Quarterly Report on Form 10-Q:

   
Carrying
Amount
 
Fair Value
 
June 30, 2011
             
Mortgages and notes receivable
 
$
18,809
 
$
19,141
 
Mortgages and notes payable
 
$
1,615,068
 
$
1,725,186
 
Financing obligations
 
$
32,869
 
$
20,852
 
               
December 31, 2010
             
Mortgages and notes receivable                                                                                                
 
$
19,044
 
$
19,093
 
Mortgages and notes payable                                                                                                
 
$
1,522,945
 
$
1,581,518
 
Financing obligations                                                                                                
 
$
33,114
 
$
23,880
 

The fair values of our mortgages and notes receivable, mortgages and notes payable and financing obligations were estimated using the income or market approaches to approximate the price that would be paid in an orderly transaction between market participants on the respective measurement dates. The carrying values of our cash and cash equivalents, restricted cash, accounts receivable, marketable securities of non-qualified deferred compensation plan, tax increment financing bond, non-qualified deferred compensation obligation and noncontrolling interests in the Operating Partnership are equal to or approximate fair value.
Share-Based Payments
Share-Based Payments
9.      Share-Based Payments

During the six months ended June 30, 2011, we granted 146,581 stock options with an exercise price equal to the closing market price of a share of our Common Stock on the date of grant. The fair value of each option grant 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 $6.47. During the six months ended June 30, 2011, we also granted 76,166 shares of time-based restricted stock and 57,386 shares of total return-based restricted stock with weighted average grant date fair values per share of $33.74 and $41.02, respectively. We recorded stock-based compensation expense of $1.4 million each during the three months ended June 30, 2011 and 2010, and $3.5 million each during the six months ended June 30, 2011 and 2010. At June 30, 2011, there was $7.9 million of total unrecognized stock-based compensation costs, which will be recognized over a weighted average remaining service period of 2.4 years.
Comprehensive Income and Accumulated Other Comprehensive Loss
Comprehensive Income and Accumulated Other Comprehensive Loss
10.           Comprehensive Income and Accumulated Other Comprehensive Loss

The following table sets forth the components of comprehensive income:

   
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
   
2011
 
2010
 
2011
 
2010
 
Net income                                                                             
 
$
14,434
 
$
40,049
 
$
26,877
 
$
52,131
 
Other comprehensive income/(loss):
                         
Unrealized gain/(loss) on tax increment financing bond
   
(336
)
 
(73
)
 
(471
)
 
146
 
Amortization of settled cash-flow hedges
   
(29
)
 
48
   
(58
)
 
287
 
Sale of cash-flow hedge related to disposition of investment
in unconsolidated affiliate
   
—
   
103
   
—
   
103
 
Total other comprehensive income/(loss)
   
(365
)
 
78
   
(529
)
 
536
 
Total comprehensive income
 
$
14,069
 
$
40,127
 
$
26,348
 
$
52,667
 

The following table sets forth the components of AOCL:

   
June 30,
2011
 
December 31,
2010
 
Tax increment financing bond                                                                                                      
 
$
3,013
 
$
2,543
 
Settled cash-flow hedges                                                                                                      
   
1,164
   
1,105
 
Total accumulated other comprehensive loss
 
$
4,177
 
$
3,648
 


Discontinued Operations
Discontinued Operations
11.      Discontinued Operations

The following table sets forth our operations which required classification as discontinued operations:

   
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
   
2011
 
2010
 
2011
 
2010
 
Rental and other revenues                                                                                     
 
$
500
 
$
1,227
 
$
1,113
 
$
2,557
 
Operating expenses:
                         
Rental property and other expenses
   
178
   
455
   
359
   
1,048
 
Depreciation and amortization
   
32
   
275
   
127
   
549
 
Total operating expenses
   
210
   
730
   
486
   
1,597
 
Other income
   
1
   
1
   
1
   
1
 
Income from discontinued operations
   
291
   
498
   
628
   
961
 
Net losses on disposition of discontinued operations
   
—
   
(260
)
 
—
   
(86
)
Total discontinued operations                                                                                     
 
$
291
 
$
238
 
$
628
 
$
875
 

The following table sets forth the major classes of assets and liabilities of the properties classified as held for sale:

   
June 30,
2011
 
December 31,
2010
 
Assets:
             
Land
 
$
2,788
 
$
2,788
 
Buildings and tenant improvements                                                                                                 
   
12,663
   
12,707
 
Land held for development                                                                                                 
   
967
   
2,766
 
Total real estate assets                                                                                            
   
16,418
   
18,261
 
Less accumulated depreciation                                                                                                 
   
(5,113
)
 
(5,012
)
Net real estate assets
   
11,305
   
13,249
 
Deferred leasing costs, net
   
55
   
58
 
Accrued straight line rents receivable
   
249
   
257
 
Prepaid expenses and other assets
   
—
   
43
 
Real estate and other assets, net, held for sale
 
$
11,609
 
$
13,607
 
Tenant security deposits, deferred rents and accrued costs (1)                                                                                                      
 
$
123
 
$
11
 

 
(1)
Included in accounts payable, accrued expenses and other liabilities.
 


Earnings Per Share
Earnings Per Share
12.      Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per Common Share:

   
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
   
2011
 
2010
 
2011
 
2010
 
Earnings per Common Share - basic:
                         
Numerator:
                         
Income from continuing operations
 
$
14,143
 
$
39,811
 
$
26,249
 
$
51,256
 
Net (income) attributable to noncontrolling  interests in the Operating Partnership from continuing operations
   
(608
)
 
(1,921
)
 
(1,098
)
 
(2,409
)
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
   
(182
)
 
(215
)
 
(305
)
 
(429
)
Dividends on Preferred Stock
   
(1,622
)
 
(1,677
)
 
(3,299
)
 
(3,354
)
Excess of Preferred Stock redemption/repurchase cost over carrying value
   
(1,895
)
 
—
   
(1,895
)
 
—
 
Income from continuing operations available for common stockholders
   
9,836
   
35,998
   
19,652
   
45,064
 
Income from discontinued operations
   
291
   
238
   
628
   
875
 
Net (income) attributable to noncontrolling interests in the Operating Partnership from discontinued operations
   
(15
)
 
(12
)
 
(32
)
 
(44
)
Income from discontinued operations available for common stockholders
   
276
   
226
   
596
   
831
 
Net income available for common stockholders
 
$
10,112
 
$
36,224
 
$
20,248
 
$
45,895
 
Denominator:
                         
Denominator for basic earnings per Common Share – weighted average
shares
   
72,211
   
71,601
   
72,015
   
71,508
 
Earnings per Common Share – basic:
                         
Income from continuing operations available for common stockholders
 
$
0.14
 
$
0.51
 
$
0.27
 
$
0.63
 
Income from discontinued operations available for common stockholders
   
—
   
—
   
0.01
   
0.01
 
Net income available for common stockholders
 
$
0.14
 
$
0.51
 
$
0.28
 
$
0.64
 
Earnings per Common Share - diluted:
                         
Numerator:
                         
Income from continuing operations
 
$
14,143
 
$
39,811
 
$
26,249
 
$
51,256
 
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
   
(182
)
 
(215
)
 
(305
)
 
(429
)
Dividends on Preferred Stock
   
(1,622
)
 
(1,677
)
 
(3,299
)
 
(3,354
)
Excess of Preferred Stock redemption/repurchase cost over carrying value
   
(1,895
)
 
—
   
(1,895
)
 
—
 
Income from continuing operations available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
   
10,444
   
37,919
   
20,750
   
47,473
 
Income from discontinued operations available for common stockholders
   
291
   
238
   
628
   
875
 
Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
 
$
10,735
 
$
38,157
 
$
21,378
 
$
48,348
 
Denominator:
                         
Denominator for basic earnings per Common Share –weighted average
shares
   
72,211
   
71,601
   
72,015
   
71,508
 
Add:
                         
Stock options using the treasury method
   
202
   
209
   
185
   
188
 
Noncontrolling interests partnership units
   
3,784
   
3,797
   
3,787
   
3,808
 
Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions (1)
   
76,197
   
75,607
   
75,987
   
75,504
 
Earnings per Common Share – diluted:
                         
Income from continuing operations available for common stockholders
 
$
0.14
   
0.50
   
0.27
   
0.63
 
Income from discontinued operations available for common stockholders
   
—
   
—
   
0.01
   
0.01
 
Net income available for common stockholders
 
$
0.14
   
0.50
   
0.28
   
0.64
 
__________
 
(1)
There were 0.3 million and 0.6 million options outstanding during the three and six months ended June 30, 2011 and 2010, respectively, that were not included in the computation of diluted earnings per share because the impact of including such options would be anti-dilutive.

Segment Information
Segment Information
13.      Segment Information

The following table summarizes the rental and other revenues and net operating income, the primary industry property-level performance metric which is defined as rental and other revenues less rental property and other expenses, for each reportable segment:

   
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
   
2011
 
2010
 
2011
 
2010
 
Rental and Other Revenues: (1)
                         
Office:
                         
Atlanta, GA
 
$
12,341
 
$
12,065
 
$
24,245
 
$
24,198
 
Greenville, SC
   
3,437
   
3,451
   
6,943
   
7,127
 
Kansas City, MO
   
3,586
   
3,663
   
7,243
   
7,371
 
Memphis, TN
   
10,077
   
7,328
   
20,180
   
15,196
 
Nashville, TN
   
15,362
   
14,851
   
29,977
   
29,964
 
Orlando, FL
   
2,619
   
3,059
   
4,937
   
6,064
 
Piedmont Triad, NC
   
5,273
   
5,367
   
10,637
   
10,764
 
Raleigh, NC
   
20,103
   
18,523
   
39,423
   
37,328
 
Richmond, VA
   
11,668
   
11,483
   
23,047
   
23,276
 
Tampa, FL
   
17,458
   
18,037
   
34,250
   
35,979
 
Total Office Segment
   
101,924
   
97,827
   
200,882
   
197,267
 
Industrial:
                         
Atlanta, GA
   
4,028
   
3,842
   
7,962
   
7,817
 
Piedmont Triad, NC
   
2,825
   
3,044
   
5,803
   
6,065
 
Total Industrial Segment
   
6,853
   
6,886
   
13,765
   
13,882
 
Retail:
                         
Kansas City, MO
   
8,203
   
8,749
   
17,104
   
16,437
 
Total Retail Segment
   
8,203
   
8,749
   
17,104
   
16,437
 
Residential:
                         
Kansas City, MO                                                         
   
77
   
303
   
285
   
682
 
Total Residential Segment
   
77
   
303
   
285
   
682
 
Total Rental and Other Revenues                                                                    
 
$
117,057
 
$
113,765
 
$
232,036
 
$
228,268
 


   
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
   
2011
 
2010
 
2011
 
2010
 
Net Operating Income: (1)
                         
Office:
                         
Atlanta, GA
 
$
7,973
 
$
7,828
 
$
15,467
 
$
15,461
 
Greenville, SC
   
2,067
   
2,168
   
4,143
   
4,449
 
Kansas City, MO
   
2,113
   
2,327
   
4,228
   
4,540
 
Memphis, TN
   
5,462
   
4,223
   
11,224
   
9,507
 
Nashville, TN
   
10,329
   
10,065
   
19,981
   
19,934
 
Orlando, FL
   
1,285
   
1,723
   
2,451
   
3,336
 
Piedmont Triad, NC
   
3,452
   
3,791
   
7,055
   
7,091
 
Raleigh, NC
   
14,270
   
13,046
   
27,473
   
25,675
 
Richmond, VA
   
8,232
   
8,405
   
16,092
   
16,355
 
Tampa, FL
   
10,802
   
10,991
   
21,192
   
21,811
 
Total Office Segment
   
65,985
   
64,567
   
129,306
   
128,159
 
Industrial:
                         
Atlanta, GA
   
3,001
   
2,793
   
5,841
   
5,563
 
Piedmont Triad, NC
   
2,107
   
2,328
   
4,332
   
4,375
 
Total Industrial Segment
   
5,108
   
5,121
   
10,173
   
9,938
 
Retail:
                         
Kansas City, MO
   
4,832
   
5,746
   
10,123
   
10,098
 
Total Retail Segment
   
4,832
   
5,746
   
10,123
   
10,098
 
Residential:
                         
Kansas City, MO
   
(11
)
 
188
   
93
   
426
 
Total Residential Segment
   
(11
)
 
188
   
93
   
426
 
Total Net Operating Income                                                                    
   
75,914
   
75,622
   
149,695
   
148,621
 
Reconciliation to income from continuing operations before disposition of property, condominiums and investment in unconsolidated affiliates and equity in earnings of unconsolidated affiliates:
                         
Depreciation and amortization
   
(33,430
)
 
(33,260
)
 
(67,147
)
 
(65,898
)
General and administrative expense
   
(7,978
)
 
(6,980
)
 
(15,771
)
 
(15,487
)
Interest expense
   
(23,907
)
 
(22,934
)
 
(47,450
)
 
(46,047
)
Interest and other income
   
1,875
   
965
   
3,748
   
2,665
 
Income from continuing operations before disposition of property, condominiums and investment in unconsolidated affiliates and equity in earnings of unconsolidated affiliates
 
$
12,474
 
$
13,413
 
$
23,075
 
$
23,854
 
__________
 
(1)
Net of discontinued operations.


Subsequent Events
Subsequent Events
14.      Subsequent Events

On July 27, 2011, we obtained a new $475.0 million unsecured revolving credit facility, which replaced our previously existing $400.0 million revolving credit facility. Our new revolving credit facility is originally scheduled to mature on July 27, 2015. Assuming no defaults have occurred, we have an option to extend the maturity for an additional year. The new credit facility includes an accordion feature that allows for an additional $75.0 million of borrowing capacity subject to additional lender commitments. The interest rate on the new facility at our current credit ratings is LIBOR plus 150 basis points and the annual facility fee is 35 basis points. The interest rate and facility fee under the new facility are based on the higher of the publicly announced ratings from Moody’s Investors Service or Standard & Poors. The financial and other covenants under the new facility are substantially the same as our previous credit facility.
Description of Business and Significant Accounting Policies (LP)
Description of Business and Significant Accounting Policies (LP)
1.      Description of Business and Significant Accounting Policies

Description of Business

The Company is a fully-integrated, self-administered and self-managed equity real estate investment trust (“REIT”) that operates in the Southeastern and Midwestern United States. The Company conducts virtually all of its activities through the Operating Partnership. At June 30, 2011, the Company and/or the Operating Partnership wholly owned: 296 in-service office, industrial and retail properties, comprising 27.3 million square feet; 96 rental residential units; 19 for-sale residential condominiums; 603 acres of undeveloped land suitable for future development, of which 523 acres are considered core holdings; and an additional office property that is considered completed but not yet stabilized.

The Company is the sole general partner of the Operating Partnership. At June 30, 2011, the Company owned all of the Preferred Units and 72.0 million, or 95.0%, of the Common Units. Limited partners (including one officer and two directors of the Company) own the remaining 3.8 million Common Units. Generally, the Operating Partnership is obligated to redeem each Common Unit at the request of the holder thereof for cash equal to the value of one share of Common Stock, $.01 par value, based on the average of the market price for the 10 trading days immediately preceding the notice date of such redemption provided that the Company, at its option, may elect to acquire any such Common Units presented for redemption for cash or one share of Common Stock. The Common Units owned by the Company are not redeemable. During the six months ended June 30, 2011, the Company redeemed 18,737 Common Units for a like number of shares of Common Stock.

Common Stock Offering

In the second quarter of 2011, we entered into equity sales agreements with various financial institutions to offer and sell, from time to time, shares of our Common Stock having an aggregate offering price of up to $150.0 million. During the second quarter of 2011, we issued 236,000 shares of Common Stock under these agreements at an average price of $35.62 per share raising net proceeds, after sales commissions and expenses, of $8.3 million.

Preferred Stock Retirements

In the second quarter of 2011, we redeemed the remaining 2.1 million outstanding 8.0% Series B Cumulative Redeemable Preferred Shares for an aggregate redemption price of $52.5 million, excluding accrued dividends. In connection with this redemption, the $1.9 million excess of the redemption cost over the net carrying amount of the redeemed shares was recorded as a reduction to net income available for common stockholders in the second quarter of 2011.

Basis of Presentation

Our Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States (“GAAP”). Our Consolidated Balance Sheet at December 31, 2010 was revised from previously reported amounts to reflect those properties which required held for sale presentation. Our Consolidated Statements of Income for the three and six months ended June 30, 2010 were revised from previously reported amounts to reflect those properties sold or held for sale which required discontinued operations presentation.

Our Consolidated Financial Statements include the Operating Partnership, wholly owned subsidiaries and those entities in which we have the controlling financial interest. All significant intercompany transactions and accounts have been eliminated. At June 30, 2011 and December 31, 2010, we were not involved with any entities that were determined to be variable interest entities.
 
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 omitted certain notes and other information from the interim consolidated financial statements presented in this Quarterly Report on Form 10-Q as permitted by SEC rules and regulations. These Consolidated Financial Statements should be read in conjunction with our 2010 Annual Report on Form 10-K.

Use of Estimates

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

Recently Issued Accounting Standards

Beginning with our Quarterly Report on Form 10-Q for the three months ended March 31, 2012, we will be required to enhance our disclosure of assets and liabilities measured at fair value. This includes disclosing any significant transfers between Levels 1 and 2 of the fair value hierarchy, additional quantitative and qualitative information regarding fair value measurements categorized as Level 3 of the fair value hierarchy and the hierarchy classification for items whose fair value is not recorded on our Consolidated Balance Sheets but is disclosed in our Notes to Consolidated Financial Statements. Additionally, we will be required to present comprehensive income on the face of our Consolidated Statements of Income, which previously has been disclosed in our Notes to Consolidated Financial Statements.
Real Estate Assets LP
Real Estate Assets
2.      Real Estate Assets

Acquisitions

During the second quarter of 2011, we acquired a 48,000 square foot medical office property in Raleigh, NC for approximately $9.0 million in cash and incurred $0.1 million of acquisition-related costs.
Mortgages and Notes Receivable (LP)
Mortgages and Notes Receivable (LP)
3.      Mortgages and Notes Receivable

The following table sets forth our mortgages and notes receivable:

   
June 30,
2011
 
December 31,
2010
 
Seller financing (first mortgages)
 
$
17,180
 
$
17,180
 
Less allowance
   
—
   
—
 
     
17,180
   
17,180
 
Promissory notes
   
2,246
   
2,732
 
Less allowance
   
(617
)
 
(868
)
     
1,629
   
1,864
 
Mortgages and notes receivable, net
 
$
18,809
 
$
19,044
 
 
The following table sets forth our notes receivable allowance, which relates only to promissory notes:

   
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
   
2011
 
2010
 
2011
 
2010
 
Beginning notes receivable allowance
 
$
497
 
$
732
 
$
868
 
$
698
 
Bad debt expense
   
162
   
25
   
184
   
88
 
Write-offs
   
—
   
(5
)
 
(364
)
 
(5
)
Recoveries/other
   
(42
)
 
19
   
(71
)
 
(10
)
Total notes receivable allowance
 
$
617
 
$
771
 
$
617
 
$
771
 

Our mortgages and notes receivable consists primarily of seller financing issued in conjunction with two disposition transactions in the second quarter of 2010. As of June 30, 2011, the interest payments on both mortgages receivable were current and there were no indications of impairment on the receivables.

Investment in Unconsolidated Affiliates (LP)
Investment in Unconsolidated Affiliates
4.      Investment in and Advances to Unconsolidated Affiliates

We have equity interests ranging from 10.0% to 50.0% in various joint ventures with unrelated third parties and a debt interest in one of these joint ventures, as described below. The following table sets forth the combined, summarized income statements for our unconsolidated joint ventures:

   
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
   
2011
 
2010
 
2011
 
2010
 
Income Statements:
                         
Revenues                                                                      
 
$
23,756
 
$
30,697
 
$
47,958
 
$
65,266
 
Expenses:
                         
Rental property and other expenses
   
10,155
   
15,128
   
21,526
   
31,655
 
Depreciation and amortization
   
6,053
   
7,410
   
12,299
   
16,641
 
Interest expense
   
5,683
   
7,037
   
11,508
   
15,404
 
Total expenses
   
21,891
   
29,575
   
45,333
   
63,700
 
Net income
 
$
1,865
 
$
1,122
 
$
2,625
 
$
1,566
 
Our share of:
                         
Depreciation and amortization of real estate assets
 
$
1,995
 
$
2,699
 
$
4,050
 
$
6,001
 
Interest expense
 
$
2,012
 
$
2,730
 
$
4,149
 
$
6,128
 
Net income
 
$
759
 
$
307
 
$
1,694
 
$
535
 
                           
Our share of net income
 
$
759
 
$
307
 
$
1,694
 
$
535
 
Purchase accounting and management, leasing and other fees
adjustments
   
598
   
564
   
1,138
   
1,137
 
Equity in earnings of unconsolidated affiliates
 
$
1,357
 
$
871
 
$
2,832
 
$
1,672
 
 
In the second quarter of 2011, we provided a one-year $38.3 million interest-only secured loan to an unconsolidated joint venture, which was used to repay a secured loan before maturity to a third party lender. The loan bears interest at LIBOR plus 500 basis points, which may be reduced by up to 50 basis points upon the use of proceeds from the sale of certain assets by the joint venture to repay the loan.

During the second quarter of 2010, we sold our equity interests in a series of unconsolidated joint ventures relating to properties in Des Moines, IA. For information regarding this sale, see Note 3 to the Consolidated Financial Statements in our 2010 Annual Report on Form 10-K.
Intangible Assets and Liabilities LP
Intangible Assets and Liabilities
5.      Intangible Assets and Liabilities

The following table sets forth total intangible assets and liabilities, net of accumulated amortization:

   
June 30,
2011
 
December 31,
2010
 
Assets:
             
Deferred financing costs
 
$
17,295
 
$
16,412
 
Less accumulated amortization
   
(7,996
)
 
(7,054
)
     
9,299
   
9,358
 
Deferred leasing costs (including lease incentives and acquisition-related intangible assets)
   
130,415
   
127,949
 
Less accumulated amortization
   
(54,546
)
 
(52,306
)
     
75,869
   
75,643
 
Deferred financing and leasing costs, net
 
$
85,168
 
$
85,001
 
               
Liabilities (in accounts payable, accrued expenses and other liabilities):
             
Acquisition-related intangible liabilities
 
$
720
 
$
658
 
Less accumulated amortization
   
(226
)
 
(125
)
   
$
494
 
$
533
 

The following table sets forth amortization of intangible assets and liabilities:

   
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
   
2011
 
2010
 
2011
 
2010
 
Amortization of deferred financing costs
 
$
821
 
$
835
 
$
1,642
 
$
1,670
 
Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization)
 
$
4,401
 
$
3,817
 
$
8,757
 
$
7,583
 
Amortization of lease incentives (in rental and other revenues)
 
$
303
 
$
276
 
$
641
 
$
537
 
Amortization of acquisition-related intangible assets and liabilities (in rental and other revenues)
 
$
166
 
$
36
 
$
327
 
$
76
 
 
The following table sets forth scheduled future amortization of intangible assets and liabilities:

   
Amortization of Deferred Financing Costs
 
Amortization of Deferred Leasing Costs and Acquisition-Related Intangible Assets (in Depreciation and Amortization)
 
Amortization of Lease Incentives (in Rental and Other Revenues)
 
Amortization of Acquisition-Related Intangible Assets and Liabilities (in Rental and Other Revenues)
 
July 1, 2011 through December 31, 2011
 
$
1,724
 
$
8,653
 
$
613
 
$
320
 
2012                                                             
   
3,093
   
15,087
   
1,141
   
561
 
2013                                                             
   
1,486
   
12,106
   
983
   
390
 
2014                                                             
   
1,098
   
9,398
   
819
   
298
 
2015                                                             
   
1,098
   
6,966
   
603
   
188
 
Thereafter                                                             
   
800
   
14,690
   
2,088
   
471
 
   
$
9,299
 
$
66,900
 
$
6,247
 
$
2,228
 

The weighted average remaining amortization periods for deferred financing costs, deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization), lease incentives (in rental and other revenues) and acquisition-related intangible assets and liabilities (in rental and other revenues) were 3.3 years, 6.1 years, 7.9 years and 6.3 years, respectively, as of June 30, 2011.

In connection with the acquisition of a medical office property in Raleigh, NC in the second quarter of 2011, we recorded $0.1 million of above market lease intangible assets and $0.9 million of in-place lease intangible assets with weighted average amortization periods of 3.0 years each at the date of the acquisition.
Mortgages and Notes Payable (LP)
Mortgages and Notes Payable (LP)
6.      Mortgages and Notes Payable

The following table sets forth our consolidated mortgages and notes payable:

   
June 30,
2011
 
December 31,
2010
 
Secured indebtedness                                                                                                      
 
$
748,563
 
$
754,399
 
Unsecured indebtedness                                                                                                      
   
866,505
   
768,546
 
Total mortgages and notes payable
 
$
1,615,068
 
$
1,522,945
 

At June 30, 2011, our secured mortgage loans were secured by real estate assets with an aggregate undepreciated book value of $1.2 billion.

Our $400.0 million unsecured revolving credit facility is scheduled to mature on February 21, 2013 and includes an accordion feature that allows for an additional $50.0 million of borrowing capacity subject to additional lender commitments. Assuming we continue to have three publicly announced ratings from the credit rating agencies, the interest rate and facility fee under our revolving credit facility are based on the lower of the two highest publicly announced ratings. Based on our current credit ratings, the interest rate is LIBOR plus 290 basis points and the annual facility fee is 60 basis points. There was $75.4 million and $77.0 million outstanding under our revolving credit facility at June 30, 2011 and July 20, 2011, respectively. At both June 30, 2011 and July 20, 2011, 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 June 30, 2011 and July 20, 2011 was $324.4 million and $322.8 million, respectively.

Our secured construction facility, which has $52.1 million outstanding at June 30, 2011, is scheduled to mature on December 20, 2011. Assuming no defaults have occurred, we have the option to extend the maturity date for an additional one-year period. The interest rate is LIBOR plus 85 basis points. During the second quarter of 2011, we exercised our right to reduce the borrowing capacity of this facility to $52.1 million.

In the second quarter of 2011, we repaid the remaining $10.0 million of a three-year unsecured term loan before maturity. We incurred no penalties related to this repayment.

We are currently in compliance with the debt covenants and other requirements with respect to our outstanding debt.
Noncontrolling Interests (LP)
Noncontrolling Interests
7.      Noncontrolling Interests

Noncontrolling Interests in Consolidated Affiliates

At June 30, 2011, noncontrolling interests in consolidated affiliates relates to our joint venture partner’s 50.0% interest in office properties located in Richmond, VA. Our joint venture partner is an unrelated third party.

Disclosure About Fair Value of Financial Instruments (LP)
Disclosure About Fair Value of Financial Instruments (LP)
8.      Disclosure About Fair Value of Financial Instruments

The following summarizes the three levels of inputs that we use to measure fair value, as well as the assets, noncontrolling interests in the Operating Partnership and liabilities that we recognize at fair value using those levels of inputs.

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

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

We had no Level 2 assets or liabilities at both June 30, 2011 and December 31, 2010.

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 is our tax increment financing bond, which is not routinely traded but whose fair value is determined using an estimate of projected redemption value based on quoted bid/ask prices for similar unrated municipal bonds.

The following tables set forth the assets, noncontrolling interests in the Operating Partnership and liability that we measure at fair value by level within the fair value hierarchy. We determine the level based on the lowest level of substantive input used to determine fair value.

   
June 30,
2011
 
Level 1
 
Level 3
 
Assets:
                   
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
 
$
3,876
 
$
3,876
 
$
—
 
Tax increment financing bond (in prepaid expenses and other assets)
   
15,228
   
—
   
15,228
 
Total Assets
 
$
19,104
 
$
3,876
 
$
15,228
 
                     
Noncontrolling Interests in the Operating Partnership
 
$
125,075
 
$
125,075
 
$
—
 
                     
Liability:
                   
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
 
$
3,876
 
$
3,876
 
$
—
 


   
December 31,
2010
 
Level 1
 
Level 3
 
Assets:
                   
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
 
$
3,479
 
$
3,479
 
$
—
 
Tax increment financing bond (in prepaid expenses and other assets)
   
15,699
   
—
   
15,699
 
Total Assets
 
$
19,178
 
$
3,479
 
$
15,699
 
                     
Noncontrolling Interests in the Operating Partnership
 
$
120,838
 
$
120,838
 
$
—
 
                     
Liability:
                   
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
 
$
4,091
 
$
4,091
 
$
—
 

The following table sets forth our Level 3 asset:

   
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
   
2011
 
2010
 
2011
 
2010
 
Asset:
                         
Tax Increment Financing Bond
                         
Beginning balance
 
$
15,564
 
$
17,090
 
$
15,699
 
$
16,871
 
Unrealized gain/(loss) (in AOCL)
   
(336
)
 
(73
)
 
(471
)
 
146
 
Ending balance
 
$
15,228
 
$
17,017
 
$
15,228
 
$
17,017
 

We own a tax increment financing bond associated with a property developed by us. This bond amortizes to maturity in 2020. The estimated fair value at June 30, 2011 was $3.0 million below the outstanding principal due on the bond. If the yield-to-maturity used to fair value this bond was 100 basis points higher or lower, the fair value of the bond would have been $0.6 million lower or higher, respectively, as of June 30, 2011. Currently, we intend to hold this bond and have concluded that we will not be required to sell this bond before recovery of the bond principal. Payment of the principal and interest for the bond is guaranteed by us and, therefore, we have recorded no credit losses related to the bond in the three and six months ended June 30, 2011 and 2010. There is no legal right of offset with the liability, which we report as a financing obligation, related to this tax increment financing bond.

The following table sets forth the carrying amounts and fair values of our financial instruments not disclosed elsewhere in this Quarterly Report on Form 10-Q:

   
Carrying
Amount
 
Fair Value
 
June 30, 2011
             
Mortgages and notes receivable
 
$
18,809
 
$
19,141
 
Mortgages and notes payable
 
$
1,615,068
 
$
1,725,186
 
Financing obligations
 
$
32,869
 
$
20,852
 
               
December 31, 2010
             
Mortgages and notes receivable                                                                                                
 
$
19,044
 
$
19,093
 
Mortgages and notes payable                                                                                                
 
$
1,522,945
 
$
1,581,518
 
Financing obligations                                                                                                
 
$
33,114
 
$
23,880
 

The fair values of our mortgages and notes receivable, mortgages and notes payable and financing obligations were estimated using the income or market approaches to approximate the price that would be paid in an orderly transaction between market participants on the respective measurement dates. The carrying values of our cash and cash equivalents, restricted cash, accounts receivable, marketable securities of non-qualified deferred compensation plan, tax increment financing bond, non-qualified deferred compensation obligation and noncontrolling interests in the Operating Partnership are equal to or approximate fair value.
Share-Based Payments (LP)
Disclosure Of Compensation Related Costs Share Based Payments Lp [Text Block]
9.      Share-Based Payments

During the six months ended June 30, 2011, the Company granted 146,581 stock options with an exercise price equal to the closing market price of a share of its Common Stock on the date of grant. The fair value of each option grant 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 $6.47. During the six months ended June 30, 2011, the Company also granted 76,166 shares of time-based restricted stock and 57,386 shares of total return-based restricted stock with weighted average grant date fair values per share of $33.74 and $41.02, respectively. We recorded stock-based compensation expense of $1.4 million each during the three months ended June 30, 2011 and 2010, and $3.5 million each during the six months ended June 30, 2011 and 2010. At June 30, 2011, there was $7.9 million of total unrecognized stock-based compensation costs, which will be recognized over a weighted average remaining service period of 2.4 years.

Comprehensive Income and Accumulated Other Comprehensive Loss (LP)
Comprehensive Income and Accumulated Other Comprehensive Loss
10.           Comprehensive Income and Accumulated Other Comprehensive Loss

The following table sets forth the components of comprehensive income:

   
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
   
2011
 
2010
 
2011
 
2010
 
Net income                                                                             
 
$
14,438
 
$
40,032
 
$
26,889
 
$
52,120
 
Other comprehensive income/(loss):
                         
Unrealized gain/(loss) on tax increment financing bond
   
(336
)
 
(73
)
 
(471
)
 
146
 
Amortization of settled cash-flow hedges
   
(29
)
 
48
   
(58
)
 
287
 
Sale of cash-flow hedge related to disposition of investment
in unconsolidated affiliate
   
—
   
103
   
—
   
103
 
Total other comprehensive income/(loss)
   
(365
)
 
78
   
(529
)
 
536
 
Total comprehensive income
 
$
14,073
 
$
40,110
 
$
26,360
 
$
52,656
 

The following table sets forth the components of AOCL:

   
June 30,
2011
 
December 31,
2010
 
Tax increment financing bond                                                                                                      
 
$
3,013
 
$
2,543
 
Settled cash-flow hedges                                                                                                      
   
1,164
   
1,105
 
Total accumulated other comprehensive loss
 
$
4,177
 
$
3,648
 


Discontinued Operations (LP)
Discontinued Operations (LP)
11.      Discontinued Operations

The following table sets forth our operations which required classification as discontinued operations:

   
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
   
2011
 
2010
 
2011
 
2010
 
Rental and other revenues                                                                                     
 
$
500
 
$
1,227
 
$
1,113
 
$
2,557
 
Operating expenses:
                         
Rental property and other expenses
   
178
   
455
   
359
   
1,048
 
Depreciation and amortization
   
32
   
275
   
127
   
549
 
Total operating expenses
   
210
   
730
   
486
   
1,597
 
Other income
   
1
   
1
   
1
   
1
 
Income from discontinued operations
   
291
   
498
   
628
   
961
 
Net losses on disposition of discontinued operations
   
—
   
(260
)
 
—
   
(86
)
Total discontinued operations                                                                                     
 
$
291
 
$
238
 
$
628
 
$
875
 

The following table sets forth the major classes of assets and liabilities of the properties classified as held for sale:

   
June 30,
2011
 
December 31,
2010
 
Assets:
             
Land
 
$
2,788
 
$
2,788
 
Buildings and tenant improvements                                                                                                 
   
12,663
   
12,707
 
Land held for development                                                                                                 
   
967
   
2,766
 
Total real estate assets                                                                                            
   
16,418
   
18,261
 
Less accumulated depreciation                                                                                                 
   
(5,113
)
 
(5,012
)
Net real estate assets
   
11,305
   
13,249
 
Deferred leasing costs, net
   
55
   
58
 
Accrued straight line rents receivable
   
249
   
257
 
Prepaid expenses and other assets
   
—
   
43
 
Real estate and other assets, net, held for sale
 
$
11,609
 
$
13,607
 
Tenant security deposits, deferred rents and accrued costs (1)                                                                                                      
 
$
123
 
$
11
 

 
(1)
Included in accounts payable, accrued expenses and other liabilities.
 


Earnings Per Unit (LP)
Earnings Per Share
12.      Earnings Per Unit

The following table sets forth the computation of basic and diluted earnings per Common Unit:

   
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
   
2011
 
2010
 
2011
 
2010
 
Earnings per Common Unit - basic:
                         
Numerator:
                         
Income from continuing operations
 
$
14,147
 
$
39,794
 
$
26,261
 
$
51,245
 
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
   
(182
)
 
(215
)
 
(305
)
 
(429
)
Distributions on Preferred Units
   
(1,622
)
 
(1,677
)
 
(3,299
)
 
(3,354
)
Excess of Preferred Unit redemption/repurchase cost over carrying value
   
(1,895
)
 
—
   
(1,895
)
 
—
 
Income from continuing operations available for common unitholders
   
10,448
   
37,902
   
20,762
   
47,462
 
Income from discontinued operations
   
291
   
238
   
628
   
875
 
Net income available for common unitholders
 
$
10,739
 
$
38,140
 
$
21,390
 
$
48,337
 
Denominator:
                         
Denominator for basic earnings per Common Unit – weighted average
units
   
75,586
   
74,989
   
75,393
   
74,907
 
Earnings per Common Unit – basic:
                         
Income from continuing operations available for common unitholders
 
$
0.14
 
$
0.51
 
$
0.27
 
$
0.64
 
Income from discontinued operations available for common unitholders
   
—
   
—
   
0.01
   
0.01
 
Net income available for common unitholders
 
$
0.14
 
$
0.51
 
$
0.28
 
$
0.65
 
Earnings per Common Unit - diluted:
                         
Numerator:
                         
Income from continuing operations
 
$
14,147
 
$
39,794
 
$
26,261
 
$
51,245
 
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
   
(182
)
 
(215
)
 
(305
)
 
(429
)
Distributions on Preferred Units
   
(1,622
)
 
(1,677
)
 
(3,299
)
 
(3,354
)
Excess of Preferred Unit redemption/repurchase cost over carrying value
   
(1,895
)
 
—
   
(1,895
)
 
—
 
Income from continuing operations available for common unitholders
   
10,448
   
37,902
   
20,762
   
47,462
 
Income from discontinued operations
   
291
   
238
   
628
   
875
 
Net income available for common unitholders
 
$
10,739
 
$
38,140
 
$
21,390
 
$
48,337
 
Denominator:
                         
Denominator for basic earnings per Common Unit –weighted average
units
   
75,586
   
74,989
   
75,393
   
74,907
 
Add:
                         
Units options using the treasury method
   
202
   
209
   
185
   
188
 
Denominator for diluted earnings per Common Unit – adjusted weighted average units and assumed conversions (1)
   
75,788
   
75,198
   
75,578
   
75,095
 
Earnings per Common Unit – diluted:
                         
Income from continuing operations available for common unitholders
 
$
0.14
   
0.51
   
0.27
   
0.64
 
Income from discontinued operations available for common unitholders
   
—
   
—
   
0.01
   
—
 
Net income available for common unitholders
 
$
0.14
   
0.51
   
0.28
   
0.64
 
__________
 
(1)
There were 0.3 million and 0.6 million options outstanding during the three and six months ended June 30, 2011 and 2010, respectively, that were not included in the computation of diluted earnings per share because the impact of including such options would be anti-dilutive.
Segment Information (LP)
Segment Information
13.      Segment Information

The following table summarizes the rental and other revenues and net operating income, the primary industry property-level performance metric which is defined as rental and other revenues less rental property and other expenses, for each reportable segment:

   
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
   
2011
 
2010
 
2011
 
2010
 
Rental and Other Revenues: (1)
                         
Office:
                         
Atlanta, GA
 
$
12,341
 
$
12,065
 
$
24,245
 
$
24,198
 
Greenville, SC
   
3,437
   
3,451
   
6,943
   
7,127
 
Kansas City, MO
   
3,586
   
3,663
   
7,243
   
7,371
 
Memphis, TN
   
10,077
   
7,328
   
20,180
   
15,196
 
Nashville, TN
   
15,362
   
14,851
   
29,977
   
29,964
 
Orlando, FL
   
2,619
   
3,059
   
4,937
   
6,064
 
Piedmont Triad, NC
   
5,273
   
5,367
   
10,637
   
10,764
 
Raleigh, NC
   
20,103
   
18,523
   
39,423
   
37,328
 
Richmond, VA
   
11,668
   
11,483
   
23,047
   
23,276
 
Tampa, FL
   
17,458
   
18,037
   
34,250
   
35,979
 
Total Office Segment
   
101,924
   
97,827
   
200,882
   
197,267
 
Industrial:
                         
Atlanta, GA
   
4,028
   
3,842
   
7,962
   
7,817
 
Piedmont Triad, NC
   
2,825
   
3,044
   
5,803
   
6,065
 
Total Industrial Segment
   
6,853
   
6,886
   
13,765
   
13,882
 
Retail:
                         
Kansas City, MO
   
8,203
   
8,749
   
17,104
   
16,437
 
Total Retail Segment
   
8,203
   
8,749
   
17,104
   
16,437
 
Residential:
                         
Kansas City, MO                                                         
   
77
   
303
   
285
   
682
 
Total Residential Segment
   
77
   
303
   
285
   
682
 
Total Rental and Other Revenues                                                                    
 
$
117,057
 
$
113,765
 
$
232,036
 
$
228,268
 


   
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
   
2011
 
2010
 
2011
 
2010
 
Net Operating Income: (1)
                         
Office:
                         
Atlanta, GA
 
$
7,980
 
$
7,816
 
$
15,458
 
$
15,484
 
Greenville, SC
   
2,069
   
2,165
   
4,141
   
4,455
 
Kansas City, MO
   
2,115
   
2,324
   
4,226
   
4,546
 
Memphis, TN
   
5,467
   
4,217
   
11,217
   
9,520
 
Nashville, TN
   
10,337
   
10,050
   
19,970
   
19,963
 
Orlando, FL
   
1,286
   
1,720
   
2,450
   
3,341
 
Piedmont Triad, NC
   
3,455
   
3,785
   
7,051
   
7,099
 
Raleigh, NC
   
14,281
   
13,026
   
27,457
   
25,712
 
Richmond, VA
   
8,239
   
8,393
   
16,083
   
16,378
 
Tampa, FL
   
10,811
   
10,976
   
21,179
   
21,842
 
Total Office Segment
   
66,040
   
64,472
   
129,232
   
128,340
 
Industrial:
                         
Atlanta, GA
   
3,003
   
2,789
   
5,838
   
5,571
 
Piedmont Triad, NC
   
2,109
   
2,325
   
4,330
   
4,381
 
Total Industrial Segment
   
5,112
   
5,114
   
10,168
   
9,952
 
Retail:
                         
Kansas City, MO
   
4,836
   
5,738
   
10,116
   
10,112
 
Total Retail Segment
   
4,836
   
5,738
   
10,116
   
10,112
 
Residential:
                         
Kansas City, MO
   
(11
)
 
188
   
93
   
427
 
Total Residential Segment
   
(11
)
 
188
   
93
   
427
 
Total Net Operating Income                                                                    
   
75,977
   
75,512
   
149,609
   
148,831
 
Reconciliation to income from continuing operations before disposition of property, condominiums and investment in unconsolidated affiliates and equity in earnings of unconsolidated affiliates:
                         
Depreciation and amortization
   
(33,430
)
 
(33,260
)
 
(67,147
)
 
(65,898
)
General and administrative expense
   
(8,041
)
 
(6,870
)
 
(15,685
)
 
(15,697
)
Interest expense
   
(23,907
)
 
(22,934
)
 
(47,450
)
 
(46,047
)
Interest and other income
   
1,875
   
965
   
3,748
   
2,665
 
Income from continuing operations before disposition of property, condominiums and investment in unconsolidated affiliates and equity in earnings of unconsolidated affiliates
 
$
12,474
 
$
13,413
 
$
23,075
 
$
23,854
 
__________
 
(1)
Net of discontinued operations.


Subsequent Events (LP)
Subsequent Events (LP)
14.      Subsequent Events

On July 27, 2011, we obtained a new $475.0 million unsecured revolving credit facility, which replaced our previously existing $400.0 million revolving credit facility. Our new revolving credit facility is originally scheduled to mature on July 27, 2015. Assuming no defaults have occurred, we have an option to extend the maturity for an additional year. The new credit facility includes an accordion feature that allows for an additional $75.0 million of borrowing capacity subject to additional lender commitments. The interest rate on the new facility at our current credit ratings is LIBOR plus 150 basis points and the annual facility fee is 35 basis points. The interest rate and facility fee under the new facility are based on the higher of the publicly announced ratings from Moody’s Investors Service or Standard & Poors. The financial and other covenants under the new facility are substantially the same as our previous credit facility.
Mortgages and Notes Receivable (Tables)
Mortgages and Notes Receivable 
The following table sets forth our mortgages and notes receivable:

   
June 30,
2011
 
December 31,
2010
 
Seller financing (first mortgages)
 
$
17,180
 
$
17,180
 
Less allowance
   
—
   
—
 
     
17,180
   
17,180
 
Promissory notes
   
2,246
   
2,732
 
Less allowance
   
(617
)
 
(868
)
     
1,629
   
1,864
 
Mortgages and notes receivable, net
 
$
18,809
 
$
19,044
Schedule of notes receivable allowance 
The following table sets forth our notes receivable allowance, which relates only to promissory notes:

   
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
   
2011
 
2010
 
2011
 
2010
 
Beginning notes receivable allowance
 
$
497
 
$
732
 
$
868
 
$
698
 
Bad debt expense
   
162
   
25
   
184
   
88
 
Write-offs
   
—
   
(5
)
 
(364
)
 
(5
)
Recoveries/other
   
(42
)
 
19
   
(71
)
 
(10
)
Total notes receivable allowance
 
$
617
 
$
771
 
$
617
 
$
771
 

Investment in and Advances to Unconsolidated Affiliates (Tables)
Investments in and Advances To Affiliates
We have equity interests ranging from 10.0% to 50.0% in various joint ventures with unrelated third parties and a debt interest in one of those joint ventures, as described below. The following table sets forth the combined, summarized income statements for our unconsolidated joint ventures:

   
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
   
2011
 
2010
 
2011
 
2010
 
Income Statements:
                         
Revenues                                                                      
 
$
24,779
 
$
31,714
 
$
49,996
 
$
67,302
 
Expenses:
                         
Rental property and other expenses
   
10,774
   
15,632
   
22,771
   
32,799
 
Depreciation and amortization
   
6,295
   
7,778
   
12,911
   
17,378
 
Interest expense
   
5,858
   
7,233
   
11,865
   
15,798
 
Total expenses
   
22,927
   
30,643
   
47,547
   
65,975
 
Net income
 
$
1,852
 
$
1,071
 
$
2,449
 
$
1,327
 
Our share of:
                         
Depreciation and amortization of real estate assets
 
$
2,033
 
$
2,737
 
$
4,126
 
$
6,078
 
Interest expense
 
$
2,033
 
$
2,755
 
$
4,194
 
$
6,178
 
Net income
 
$
749
 
$
308
 
$
1,670
 
$
520
 
                           
Our share of net income
 
$
749
 
$
308
 
$
1,670
 
$
520
 
Purchase accounting and management, leasing and other fees adjustments
   
604
   
580
   
1,150
   
1,163
 
Equity in earnings of unconsolidated affiliates
 
$
1,353
 
$
888
 
$
2,820
 
$
1,683
 
 
Intangible Assets and Liabilities (Tables)
Total intangible assets and liabilities 
The following table sets forth total intangible assets and liabilities, net of accumulated amortization:

   
June 30,
2011
 
December 31,
2010
 
Assets:
             
Deferred financing costs
 
$
17,295
 
$
16,412
 
Less accumulated amortization
   
(7,996
)
 
(7,054
)
     
9,299
   
9,358
 
Deferred leasing costs (including lease incentives and acquisition-related intangible assets)
   
130,415
   
127,949
 
Less accumulated amortization
   
(54,546
)
 
(52,306
)
     
75,869
   
75,643
 
Deferred financing and leasing costs, net
 
$
85,168
 
$
85,001
 
               
Liabilities (in accounts payable, accrued expenses and other liabilities):
             
Acquisition-related intangible liabilities
 
$
720
 
$
658
 
Less accumulated amortization
   
(226
)
 
(125
)
   
$
494
 
$
533
 
Amortization of intangible assets and liabilities 
The following table sets forth amortization of intangible assets and liabilities:

   
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
   
2011
 
2010
 
2011
 
2010
 
Amortization of deferred financing costs
 
$
821
 
$
835
 
$
1,642
 
$
1,670
 
Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization)
 
$
4,401
 
$
3,817
 
$
8,757
 
$
7,583
 
Amortization of lease incentives (in rental and other revenues)
 
$
303
 
$
276
 
$
641
 
$
537
 
Amortization of acquisition-related intangible assets and liabilities (in rental and other revenues)
 
$
166
 
$
36
 
$
327
 
$
76
 
 
Scheduled future amortization of intangible assets and liabilities 
The following table sets forth scheduled future amortization of intangible assets and liabilities:

   
Amortization of Deferred Financing Costs
 
Amortization of Deferred Leasing Costs and Acquisition-Related Intangible Assets (in Depreciation and Amortization)
 
Amortization of Lease Incentives (in Rental and Other Revenues)
 
Amortization of Acquisition-Related Intangible Assets and Liabilities (in Rental and Other Revenues)
 
July 1, 2011 through December 31, 2011
 
$
1,724
 
$
8,653
 
$
613
 
$
320
 
2012                                                             
   
3,093
   
15,087
   
1,141
   
561
 
2013                                                             
   
1,486
   
12,106
   
983
   
390
 
2014                                                             
   
1,098
   
9,398
   
819
   
298
 
2015                                                             
   
1,098
   
6,966
   
603
   
188
 
Thereafter                                                             
   
800
   
14,690
   
2,088
   
471
 
   
$
9,299
 
$
66,900
 
$
6,247
 
$
2,228
 

Mortgages and Notes Payable (Tables)
Consolidated mortgages and notes payable
The following table sets forth our consolidated mortgages and notes payable:

   
June 30,
2011
 
December 31,
2010
 
Secured indebtedness                                                                                                      
 
$
748,563
 
$
754,399
 
Unsecured indebtedness                                                                                                      
   
866,505
   
768,546
 
Total mortgages and notes payable
 
$
1,615,068
 
$
1,522,945
 

Noncontrolling Interests (Tables)
Noncontrolling Interests in the Operating Partnership 
Noncontrolling interests in the Operating Partnership relate to the ownership of Common Units by various individuals and entities other than the Company. The following table sets forth noncontrolling interests in the Operating Partnership:

   
Six Months Ended
June 30,
 
   
2011
 
2010
 
Beginning noncontrolling interests in the Operating Partnership
 
$
120,838
 
$
129,769
 
Adjustments of noncontrolling interests in the Operating Partnership to fair value
   
6,957
   
(20,612
)
Conversion of Common Units to Common Stock
   
(635
)
 
(2,958
)
Net income attributable to noncontrolling interests in the Operating Partnership
   
1,130
   
2,453
 
Distributions to noncontrolling interests in the Operating Partnership
   
(3,215
)
 
(3,243
)
Total noncontrolling interests in the Operating Partnership
 
$
125,075
 
$
105,409
 

Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership 
The following table sets forth net income available for common stockholders and transfers from noncontrolling interests in the Operating Partnership:

   
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
   
2011
 
2010
 
2011
 
2010
 
Net income available for common stockholders                                                                               
 
$
10,112
 
$
36,224
 
$
20,248
 
$
45,895
 
Increase in additional paid in capital from conversion of Common Units to Common Stock
   
449
   
33
   
635
   
2,957
 
Change in equity from net income available for common stockholders and conversion of Common Units to Common Stock
 
$
10,561
 
$
36,257
 
$
20,883
 
$
48,852
 
Disclosure About Fair Value of Financial Instruments (Tables)
Fair value measurements of assets, liabilities and noncontrolling interests 
The following tables set forth the assets, noncontrolling interests in the Operating Partnership and liability that we measure at fair value by level within the fair value hierarchy. We determine the level based on the lowest level of substantive input used to determine fair value.

   
June 30,
2011
 
Level 1
 
Level 3
 
Assets:
                   
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
 
$
3,876
 
$
3,876
 
$
—
 
Tax increment financing bond (in prepaid expenses and other assets)
   
15,228
   
—
   
15,228
 
Total Assets
 
$
19,104
 
$
3,876
 
$
15,228
 
                     
Noncontrolling Interests in the Operating Partnership
 
$
125,075
 
$
125,075
 
$
—
 
                     
Liability:
                   
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
 
$
3,876
 
$
3,876
 
$
—
 


   
December 31,
2010
 
Level 1
 
Level 3
 
Assets:
                   
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
 
$
3,479
 
$
3,479
 
$
—
 
Tax increment financing bond (in prepaid expenses and other assets)
   
15,699
   
—
   
15,699
 
Total Assets
 
$
19,178
 
$
3,479
 
$
15,699
 
                     
Noncontrolling Interests in the Operating Partnership
 
$
120,838
 
$
120,838
 
$
—
 
                     
Liability:
                   
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
 
$
4,091
 
$
4,091
 
$
—
 

Fair value measurements, unobservable inputs reconciliation 
The following table sets forth our Level 3 asset:

   
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
   
2011
 
2010
 
2011
 
2010
 
Asset:
                         
Tax Increment Financing Bond
                         
Beginning balance
 
$
15,564
 
$
17,090
 
$
15,699
 
$
16,871
 
Unrealized gain/(loss) (in AOCL)
   
(336
)
 
(73
)
 
(471
)
 
146
 
Ending balance
 
$
15,228
 
$
17,017
 
$
15,228
 
$
17,017
 

Fair value and carrying amounts of assets and liabilities, by balance sheet line item 
The following table sets forth the carrying amounts and fair values of our financial instruments not disclosed elsewhere in this Quarterly Report on Form 10-Q:

   
Carrying
Amount
 
Fair Value
 
June 30, 2011
             
Mortgages and notes receivable
 
$
18,809
 
$
19,141
 
Mortgages and notes payable
 
$
1,615,068
 
$
1,725,186
 
Financing obligations
 
$
32,869
 
$
20,852
 
               
December 31, 2010
             
Mortgages and notes receivable                                                                                                
 
$
19,044
 
$
19,093
 
Mortgages and notes payable                                                                                                
 
$
1,522,945
 
$
1,581,518
 
Financing obligations                                                                                                
 
$
33,114
 
$
23,880
 

Comprehensive Income and Accumulated Other Comprehensive Loss (Tables)
Components of comprehensive income 
The following table sets forth the components of comprehensive income:

   
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
   
2011
 
2010
 
2011
 
2010
 
Net income                                                                             
 
$
14,434
 
$
40,049
 
$
26,877
 
$
52,131
 
Other comprehensive income/(loss):
                         
Unrealized gain/(loss) on tax increment financing bond
   
(336
)
 
(73
)
 
(471
)
 
146
 
Amortization of settled cash-flow hedges
   
(29
)
 
48
   
(58
)
 
287
 
Sale of cash-flow hedge related to disposition of investment
in unconsolidated affiliate
   
—
   
103
   
—
   
103
 
Total other comprehensive income/(loss)
   
(365
)
 
78
   
(529
)
 
536
 
Total comprehensive income
 
$
14,069
 
$
40,127
 
$
26,348
 
$
52,667
 

Components of accumulated comprehensive loss 
The following table sets forth the components of AOCL:

   
June 30,
2011
 
December 31,
2010
 
Tax increment financing bond                                                                                                      
 
$
3,013
 
$
2,543
 
Settled cash-flow hedges                                                                                                      
   
1,164
   
1,105
 
Total accumulated other comprehensive loss
 
$
4,177
 
$
3,648
 


Discontinued Operations (Tables)
Operations classified as discontinued operations 
The following table sets forth our operations which required classification as discontinued operations:

   
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
   
2011
 
2010
 
2011
 
2010
 
Rental and other revenues                                                                                     
 
$
500
 
$
1,227
 
$
1,113
 
$
2,557
 
Operating expenses:
                         
Rental property and other expenses
   
178
   
455
   
359
   
1,048
 
Depreciation and amortization
   
32
   
275
   
127
   
549
 
Total operating expenses
   
210
   
730
   
486
   
1,597
 
Other income
   
1
   
1
   
1
   
1
 
Income from discontinued operations
   
291
   
498
   
628
   
961
 
Net losses on disposition of discontinued operations
   
—
   
(260
)
 
—
   
(86
)
Total discontinued operations                                                                                     
 
$
291
 
$
238
 
$
628
 
$
875
 

Major classes of assets and liabilities of the properties classified as held for sale 
The following table sets forth the major classes of assets and liabilities of the properties classified as held for sale:

   
June 30,
2011
 
December 31,
2010
 
Assets:
             
Land
 
$
2,788
 
$
2,788
 
Buildings and tenant improvements                                                                                                 
   
12,663
   
12,707
 
Land held for development                                                                                                 
   
967
   
2,766
 
Total real estate assets                                                                                            
   
16,418
   
18,261
 
Less accumulated depreciation                                                                                                 
   
(5,113
)
 
(5,012
)
Net real estate assets
   
11,305
   
13,249
 
Deferred leasing costs, net
   
55
   
58
 
Accrued straight line rents receivable
   
249
   
257
 
Prepaid expenses and other assets
   
—
   
43
 
Real estate and other assets, net, held for sale
 
$
11,609
 
$
13,607
 
Tenant security deposits, deferred rents and accrued costs (1)                                                                                                      
 
$
123
 
$
11
 

 
(1)
Included in accounts payable, accrued expenses and other liabilities.
 
Earnings Per Share (Tables)
Earnings Per Share
The following table sets forth the computation of basic and diluted earnings per Common Share:

   
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
   
2011
 
2010
 
2011
 
2010
 
Earnings per Common Share - basic:
                         
Numerator:
                         
Income from continuing operations
 
$
14,143
 
$
39,811
 
$
26,249
 
$
51,256
 
Net (income) attributable to noncontrolling  interests in the Operating Partnership from continuing operations
   
(608
)
 
(1,921
)
 
(1,098
)
 
(2,409
)
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
   
(182
)
 
(215
)
 
(305
)
 
(429
)
Dividends on Preferred Stock
   
(1,622
)
 
(1,677
)
 
(3,299
)
 
(3,354
)
Excess of Preferred Stock redemption/repurchase cost over carrying value
   
(1,895
)
 
—
   
(1,895
)
 
—
 
Income from continuing operations available for common stockholders
   
9,836
   
35,998
   
19,652
   
45,064
 
Income from discontinued operations
   
291
   
238
   
628
   
875
 
Net (income) attributable to noncontrolling interests in the Operating Partnership from discontinued operations
   
(15
)
 
(12
)
 
(32
)
 
(44
)
Income from discontinued operations available for common stockholders
   
276
   
226
   
596
   
831
 
Net income available for common stockholders
 
$
10,112
 
$
36,224
 
$
20,248
 
$
45,895
 
Denominator:
                         
Denominator for basic earnings per Common Share – weighted average
shares
   
72,211
   
71,601
   
72,015
   
71,508
 
Earnings per Common Share – basic:
                         
Income from continuing operations available for common stockholders
 
$
0.14
 
$
0.51
 
$
0.27
 
$
0.63
 
Income from discontinued operations available for common stockholders
   
—
   
—
   
0.01
   
0.01
 
Net income available for common stockholders
 
$
0.14
 
$
0.51
 
$
0.28
 
$
0.64
 
Earnings per Common Share - diluted:
                         
Numerator:
                         
Income from continuing operations
 
$
14,143
 
$
39,811
 
$
26,249
 
$
51,256
 
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
   
(182
)
 
(215
)
 
(305
)
 
(429
)
Dividends on Preferred Stock
   
(1,622
)
 
(1,677
)
 
(3,299
)
 
(3,354
)
Excess of Preferred Stock redemption/repurchase cost over carrying value
   
(1,895
)
 
—
   
(1,895
)
 
—
 
Income from continuing operations available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
   
10,444
   
37,919
   
20,750
   
47,473
 
Income from discontinued operations available for common stockholders
   
291
   
238
   
628
   
875
 
Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
 
$
10,735
 
$
38,157
 
$
21,378
 
$
48,348
 
Denominator:
                         
Denominator for basic earnings per Common Share –weighted average
shares
   
72,211
   
71,601
   
72,015
   
71,508
 
Add:
                         
Stock options using the treasury method
   
202
   
209
   
185
   
188
 
Noncontrolling interests partnership units
   
3,784
   
3,797
   
3,787
   
3,808
 
Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions (1)
   
76,197
   
75,607
   
75,987
   
75,504
 
Earnings per Common Share – diluted:
                         
Income from continuing operations available for common stockholders
 
$
0.14
   
0.50
   
0.27
   
0.63
 
Income from discontinued operations available for common stockholders
   
—
   
—
   
0.01
   
0.01
 
Net income available for common stockholders
 
$
0.14
   
0.50
   
0.28
   
0.64
 
__________
 
(1)
There were 0.3 million and 0.6 million options outstanding during the three and six months ended June 30, 2011 and 2010, respectively, that were not included in the computation of diluted earnings per share because the impact of including such options would be anti-dilutive.
Segment Information (Tables)
Segment Information
The following table summarizes the rental and other revenues and net operating income, the primary industry property-level performance metric which is defined as rental and other revenues less rental property and other expenses, for each reportable segment:

   
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
   
2011
 
2010
 
2011
 
2010
 
Rental and Other Revenues: (1)
                         
Office:
                         
Atlanta, GA
 
$
12,341
 
$
12,065
 
$
24,245
 
$
24,198
 
Greenville, SC
   
3,437
   
3,451
   
6,943
   
7,127
 
Kansas City, MO
   
3,586
   
3,663
   
7,243
   
7,371
 
Memphis, TN
   
10,077
   
7,328
   
20,180
   
15,196
 
Nashville, TN
   
15,362
   
14,851
   
29,977
   
29,964
 
Orlando, FL
   
2,619
   
3,059
   
4,937
   
6,064
 
Piedmont Triad, NC
   
5,273
   
5,367
   
10,637
   
10,764
 
Raleigh, NC
   
20,103
   
18,523
   
39,423
   
37,328
 
Richmond, VA
   
11,668
   
11,483
   
23,047
   
23,276
 
Tampa, FL
   
17,458
   
18,037
   
34,250
   
35,979
 
Total Office Segment
   
101,924
   
97,827
   
200,882
   
197,267
 
Industrial:
                         
Atlanta, GA
   
4,028
   
3,842
   
7,962
   
7,817
 
Piedmont Triad, NC
   
2,825
   
3,044
   
5,803
   
6,065
 
Total Industrial Segment
   
6,853
   
6,886
   
13,765
   
13,882
 
Retail:
                         
Kansas City, MO
   
8,203
   
8,749
   
17,104
   
16,437
 
Total Retail Segment
   
8,203
   
8,749
   
17,104
   
16,437
 
Residential:
                         
Kansas City, MO                                                         
   
77
   
303
   
285
   
682
 
Total Residential Segment
   
77
   
303
   
285
   
682
 
Total Rental and Other Revenues                                                                    
 
$
117,057
 
$
113,765
 
$
232,036
 
$
228,268
 


   
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
   
2011
 
2010
 
2011
 
2010
 
Net Operating Income: (1)
                         
Office:
                         
Atlanta, GA
 
$
7,973
 
$
7,828
 
$
15,467
 
$
15,461
 
Greenville, SC
   
2,067
   
2,168
   
4,143
   
4,449
 
Kansas City, MO
   
2,113
   
2,327
   
4,228
   
4,540
 
Memphis, TN
   
5,462
   
4,223
   
11,224
   
9,507
 
Nashville, TN
   
10,329
   
10,065
   
19,981
   
19,934
 
Orlando, FL
   
1,285
   
1,723
   
2,451
   
3,336
 
Piedmont Triad, NC
   
3,452
   
3,791
   
7,055
   
7,091
 
Raleigh, NC
   
14,270
   
13,046
   
27,473
   
25,675
 
Richmond, VA
   
8,232
   
8,405
   
16,092
   
16,355
 
Tampa, FL
   
10,802
   
10,991
   
21,192
   
21,811
 
Total Office Segment
   
65,985
   
64,567
   
129,306
   
128,159
 
Industrial:
                         
Atlanta, GA
   
3,001
   
2,793
   
5,841
   
5,563
 
Piedmont Triad, NC
   
2,107
   
2,328
   
4,332
   
4,375
 
Total Industrial Segment
   
5,108
   
5,121
   
10,173
   
9,938
 
Retail:
                         
Kansas City, MO
   
4,832
   
5,746
   
10,123
   
10,098
 
Total Retail Segment
   
4,832
   
5,746
   
10,123
   
10,098
 
Residential:
                         
Kansas City, MO
   
(11
)
 
188
   
93
   
426
 
Total Residential Segment
   
(11
)
 
188
   
93
   
426
 
Total Net Operating Income                                                                    
   
75,914
   
75,622
   
149,695
   
148,621
 
Reconciliation to income from continuing operations before disposition of property, condominiums and investment in unconsolidated affiliates and equity in earnings of unconsolidated affiliates:
                         
Depreciation and amortization
   
(33,430
)
 
(33,260
)
 
(67,147
)
 
(65,898
)
General and administrative expense
   
(7,978
)
 
(6,980
)
 
(15,771
)
 
(15,487
)
Interest expense
   
(23,907
)
 
(22,934
)
 
(47,450
)
 
(46,047
)
Interest and other income
   
1,875
   
965
   
3,748
   
2,665
 
Income from continuing operations before disposition of property, condominiums and investment in unconsolidated affiliates and equity in earnings of unconsolidated affiliates
 
$
12,474
 
$
13,413
 
$
23,075
 
$
23,854
 
__________
 
(1)
Net of discontinued operations.
Description of Business and Significant Accounting Policies (Details) (USD $)
3 Months Ended
Jun. 30,		 6 Months Ended
Jun. 30,
2011
2010
2011
2010
Dec. 31, 2010
Description of Business and Significant Accounting Policies [Abstract]
 
 
 
 
 
In-service office, industrial and retail properties (in units)
296 
 
296 
 
 
Square footage of commercial property (in sq feet)
27,300,000 
 
27,300,000 
 
 
Rental residential units (in units)
96 
 
96 
 
 
Residential condominiums for sale (in units)
19 
 
19 
 
 
Undeveloped land suitable for future development (in acres)
603 
 
603 
 
 
Undeveloped land considered core holdings (in acres)
523 
 
523 
 
 
Percentage of ownership of Common Units
95.00% 
 
95.00% 
 
 
Common Units of partnership owned by The Company
72,000,000 
 
72,000,000 
 
 
Common Units of partnership not owned by the Company
3,800,000 
 
3,800,000 
 
 
Common Stock par value
$ 0.01 
 
$ 0.01 
 
$ 0.01 
Number of officers of the Company who are also limited partners
1 
 
1 
 
 
Number of directors of the Company who are also limited partners
2 
 
2 
 
 
Common units redeemed for a like number of common shares of stock (in shares)
 
 
18,737 
 
 
Number of trading days preceeding Redemption Notice Date
10 
 
10 
 
 
Maximum Aggregate Offering Price of Common Stock Issuances
 
 
$ 150,000,000 
 
 
Number of Common Stock Sold During Period (in shares)
236,000 
 
 
 
 
Average Price of Common Stock Sold During Period
$ 35.62 
 
 
 
 
Net Proceeds of Common Stock Sold During Period
8,300,000 
 
 
 
 
Number of Preferred Stock Redeemed During Period (in shares)
2,100,000 
 
 
 
 
Redemption Price of Preferred Stock Redeemed During Period
52,500,000 
 
 
 
 
Excess of Preferred Stock redemption/repurchase cost over carrying value
$ 1,895,000 
$ 0 
$ 1,895,000 
$ 0 
 
Number of common units required to convert to one share of common stock (in shares)
1 
 
1 
 
 
Real Estate Assets (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Jun. 30, 2011
Acquisitions [Abstract]
 
Acquisition rentable square feet
48,000 
Acquisition purchase price
$ 9.0 
Acquisition-related costs
$ 0.1 
Mortgages and Notes Receivable (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Jun. 30,		 6 Months Ended
Jun. 30,
2011
2010
2011
2010
Dec. 31, 2010
Schedule of mortgages and notes receivable
 
 
 
 
 
Seller financing (first mortgages)
$ 17,180 
 
$ 17,180 
 
$ 17,180 
Less allowance
0 
 
0 
 
0 
Seller financing, net
17,180 
 
17,180 
 
17,180 
Promissory notes
2,246 
 
2,246 
 
2,732 
Less allowance
(617)
 
(617)
 
(868)
Promissory notes, net
1,629 
 
1,629 
 
1,864 
Mortgages and notes receivable, net
18,809 
 
18,809 
 
19,044 
Notes receivable allowance, promissory notes
 
 
 
 
 
Beginning notes receivable allowance
497 
732 
868 
698 
 
Bad debt expense
162 
25 
184 
88 
 
Write-offs
0 
(5)
(364)
(5)
 
Recoveries/other
(42)
19 
(71)
(10)
 
Total notes receivable allowance
$ 617 
$ 771 
$ 617 
$ 771 
 
Number Of Transactions With Seller Financing
 
2 
 
 
 
Investment in and Advances to Unconsolidated Affiliates (Details) (USD $)
3 Months Ended
Jun. 30,		 6 Months Ended
Jun. 30,
2011
2010
2011
2010
Income Statements:
 
 
 
 
Revenues
$ 24,779,000 
$ 31,714,000 
$ 49,996,000 
$ 67,302,000 
Expenses:
 
 
 
 
Rental property and other expenses
10,774,000 
15,632,000 
22,771,000 
32,799,000 
Depreciation and amortization
6,295,000 
7,778,000 
12,911,000 
17,378,000 
Interest expense
5,858,000 
7,233,000 
11,865,000 
15,798,000 
Total expenses
22,927,000 
30,643,000 
47,547,000 
65,975,000 
Net income
1,852,000 
1,071,000 
2,449,000 
1,327,000 
Our share of:
 
 
 
 
Depreciation and amortization of real estate assets
2,033,000 
2,737,000 
4,126,000 
6,078,000 
Interest expense
2,033,000 
2,755,000 
4,194,000 
6,178,000 
Net income
749,000 
308,000 
1,670,000 
520,000 
Our share of net income
749,000 
308,000 
1,670,000 
520,000 
Purchase accounting and management, leasing and other fees adjustments
604,000 
580,000 
1,150,000 
1,163,000 
Equity in earnings of unconsolidated affiliates
1,353,000 
888,000 
2,820,000 
1,683,000 
Percentage of equity interest in joint ventures, minimum
10.00% 
 
10.00% 
 
Percentage of equity interest in joint ventures, maximum
50.00% 
 
50.00% 
 
Number of joint ventures with debt investment
1 
 
1 
 
Investments in and Advances to Affiliates [Line Items]
 
 
 
 
Advances to Affiliates loan amount
$ 38,300,000 
 
 
 
Duration of loan, in years
1 
 
 
 
Current interest rate
LIBOR plus 500 basis points 
 
 
 
Interest rate reduction amount
50 basis points 
 
 
 
Intangible Assets and Liabilities (Details) (USD $)
3 Months Ended
Jun. 30,		 6 Months Ended
Jun. 30,
2011
2010
2011
2010
Dec. 31, 2010
Finite-Lived Intangible Assets [Line Items]
 
 
 
 
 
Deferred financing and leasing costs, net
$ 85,168,000 
 
$ 85,168,000 
 
$ 85,001,000 
Amortization of intangible assets and liabilities
 
 
 
 
 
Amortization of deferred financing costs
821,000 
835,000 
1,642,000 
1,670,000 
 
Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization)
4,401,000 
3,817,000 
8,757,000 
7,583,000 
 
Amortization of lease incentives (in rental and other revenues)
303,000 
276,000 
641,000 
537,000 
 
Amortization of acquisition-related intangible assets and liabilities (in rental and other revenues)
166,000 
36,000 
327,000 
76,000 
 
Weighted average remaining amortization periods for intangible assets and liabilities [Abstract]
 
 
 
 
 
Deferred financing costs (in years)
3.3 
 
3.3 
 
 
Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization) (in years)
6.1 
 
6.1 
 
 
Lease incentives (in rental and other revenues) (in years)
7.9 
 
7.9 
 
 
Amortization of acquisition-related intangible assets and liabilities (in rental and other revenues) (in years)
6.3 
 
6.3 
 
 
Intangible assets and liabilities from new acquisitions [Abstract]
 
 
 
 
 
Acquired above market lease intangible assets
100,000 
 
 
 
 
Acquired in-place lease intangible assets
900,000 
 
 
 
 
Weighted average amortization periods, above market (in years)
3 
 
3 
 
 
Weighted average amortization periods, in-place (in years)
3 
 
3 
 
 
Deferred Financing Costs [Member]
 
 
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
 
 
Deferred financing costs, deferred leasing costs and acquisition-related intangible liabilities, gross
17,295,000 
 
17,295,000 
 
16,412,000 
Deferred financing costs, deferred leasing costs and acquisition-related intangible liabilities, accumulated amortization
(7,996,000)
 
(7,996,000)
 
(7,054,000)
Deferred financing costs, deferred leasing costs and acquisition-related intangible liabilities, net
9,299,000 
 
9,299,000 
 
9,358,000 
Deferred Leasing Costs [Member]
 
 
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
 
 
Deferred financing costs, deferred leasing costs and acquisition-related intangible liabilities, gross
130,415,000 
 
130,415,000 
 
127,949,000 
Deferred financing costs, deferred leasing costs and acquisition-related intangible liabilities, accumulated amortization
(54,546,000)
 
(54,546,000)
 
(52,306,000)
Deferred financing costs, deferred leasing costs and acquisition-related intangible liabilities, net
75,869,000 
 
75,869,000 
 
75,643,000 
Acquisition-Related Intangible Liabilities [Member]
 
 
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
 
 
Deferred financing costs, deferred leasing costs and acquisition-related intangible liabilities, gross
720,000 
 
720,000 
 
658,000 
Deferred financing costs, deferred leasing costs and acquisition-related intangible liabilities, accumulated amortization
(226,000)
 
(226,000)
 
(125,000)
Deferred financing costs, deferred leasing costs and acquisition-related intangible liabilities, net
494,000 
 
494,000 
 
533,000 
Acquisition Related Intangible Assets and Liabilities Amortization Recorded in Rental and Other Revenues [Member]
 
 
 
 
 
Scheduled future amortization of intangible assets and liabilities
 
 
 
 
 
July 1, 2011 through December 31, 2011
 
 
320,000 
 
 
2012
 
 
561,000 
 
 
2013
 
 
390,000 
 
 
2014
 
 
298,000 
 
 
2015
 
 
188,000 
 
 
Thereafter
 
 
471,000 
 
 
Total future amortization of intangible assets and liabilities
 
 
2,228,000 
 
 
Deferred Financing Costs Amortization Recorded in Interest Expense[Member]
 
 
 
 
 
Scheduled future amortization of intangible assets and liabilities
 
 
 
 
 
July 1, 2011 through December 31, 2011
 
 
1,724,000 
 
 
2012
 
 
3,093,000 
 
 
2013
 
 
1,486,000 
 
 
2014
 
 
1,098,000 
 
 
2015
 
 
1,098,000 
 
 
Thereafter
 
 
800,000 
 
 
Total future amortization of intangible assets and liabilities
 
 
9,299,000 
 
 
Deferred Leasing Costs and Acquisition-Related Intangible Assets Amortization Recorded in Depreciation and Amortization [Member]
 
 
 
 
 
Scheduled future amortization of intangible assets and liabilities
 
 
 
 
 
July 1, 2011 through December 31, 2011
 
 
8,653,000 
 
 
2012
 
 
15,087,000 
 
 
2013
 
 
12,106,000 
 
 
2014
 
 
9,398,000 
 
 
2015
 
 
6,966,000 
 
 
Thereafter
 
 
14,690,000 
 
 
Total future amortization of intangible assets and liabilities
 
 
66,900,000 
 
 
Lease Incentives Amortization Recorded in Rental and Other Revenues [Member]
 
 
 
 
 
Scheduled future amortization of intangible assets and liabilities
 
 
 
 
 
July 1, 2011 through December 31, 2011
 
 
613,000 
 
 
2012
 
 
1,141,000 
 
 
2013
 
 
983,000 
 
 
2014
 
 
819,000 
 
 
2015
 
 
603,000 
 
 
Thereafter
 
 
2,088,000 
 
 
Total future amortization of intangible assets and liabilities
 
 
$ 6,247,000 
 
 
Mortgages and Notes Payable (Details) (USD $)
6 Months Ended
Jun. 30,
Jun. 30, 2011
Dec. 31, 2010
Jun. 30, 2011
Secured indebtedness [Member]
Dec. 31, 2010
Secured indebtedness [Member]
Jun. 30, 2011
Unsecured indebtedness [Member]
Dec. 31, 2010
Unsecured indebtedness [Member]
2011
Bank term loan [Member]
2011
Unsecured revolving credit facility [Member]
Jul. 20, 2011
Unsecured revolving credit facility [Member]
6 Months Ended
Jun. 30, 2011
Secured construction facility [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
Total mortgages and notes payable
$ 1,615,068,000 
$ 1,522,945,000 
$ 748,563,000 
$ 754,399,000 
$ 866,505,000 
$ 768,546,000 
 
 
 
 
Aggregate undepreciated book value of secured real estate assets
1,200,000,000 
 
 
 
 
 
 
 
 
 
Term of debt instrument (in years)
 
 
 
 
 
 
3 
 
 
 
Early repayment of debt
 
 
 
 
 
 
10,000,000 
 
 
 
Line Of Credit Facility [Line Items]
 
 
 
 
 
 
 
 
 
 
Maximum borrowing capacity
 
 
 
 
 
 
 
400,000,000 
 
52,100,000 
Maturity date
 
 
 
 
 
 
 
Feb. 21, 2013 
 
Dec. 20, 2011 
Additional borrowing capacity
 
 
 
 
 
 
 
50,000,000 
 
 
Interest rate
 
 
 
 
 
 
 
LIBOR plus 290 basis points 
 
LIBOR plus 85 basis points 
Annual facility fee (in hundredths)
 
 
 
 
 
 
 
0.60% 
 
 
Amount outstanding
 
 
 
 
 
 
 
75,400,000 
77,000,000 
52,100,000 
Outstanding letters of credit
 
 
 
 
 
 
 
200,000 
200,000 
 
Unused borrowing capacity
 
 
 
 
 
 
 
$ 324,400,000 
$ 322,800,000 
 
Term of optional extension (in years)
 
 
 
 
 
 
 
 
 
1 
Noncontrolling Interests (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Jun. 30,		 6 Months Ended
Jun. 30,
2011
2010
2011
2010
Noncontrolling Interests in the Operating Partnership
 
 
 
 
Beginning noncontrolling interests in the Operating Partnership
 
 
$ 120,838 
$ 129,769 
Adjustments of noncontrolling interests in the Operating Partnership to fair value
 
 
6,957 
(20,612)
Conversion of Common Units to Common Stock
 
 
(635)
(2,958)
Net income attributable to noncontrolling interests in the Operating Partnership
623 
1,933 
1,130 
2,453 
Distributions to noncontrolling interests in the Operating Partnership
 
 
(3,215)
(3,243)
Total noncontrolling interests in the Operating Partnership
125,075 
105,409 
125,075 
105,409 
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership.
 
 
 
 
Net income available for common stockholders
10,112 
36,224 
20,248 
45,895 
Increase in additional paid in capital from conversion of Common Units to Common Stock
449 
33 
635 
2,957 
Change in equity from net income available for common stockholders and conversion of Common Units to Common Stock
$ 10,561 
$ 36,257 
$ 20,883 
$ 48,852 
Consolidated joint venture, partner's interest (in hundredths)
50.00% 
 
50.00% 
 
Disclosure About Fair Value of Financial Instruments (Details) (USD $)
3 Months Ended
Jun. 30,		 6 Months Ended
Jun. 30,
2011
2010
2011
2010
Dec. 31, 2010
Assets [Abstract]
 
 
 
 
 
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
$ 3,876,000 
 
$ 3,876,000 
 
$ 3,479,000 
Tax increment financing bond (in prepaid expenses and other assets)
15,228,000 
 
15,228,000 
 
15,699,000 
Total Assets
19,104,000 
 
19,104,000 
 
19,178,000 
Noncontrolling Interests in the Operating Partnership
125,075,000 
 
125,075,000 
 
120,838,000 
Liability [Abstract]
 
 
 
 
 
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
3,876,000 
 
3,876,000 
 
4,091,000 
Tax increment financing bond [Abstract]
 
 
 
 
 
Unrealized gain/(loss) (in AOCL)
(336,000)
(73,000)
(471,000)
146,000 
 
Amount by which outstanding principal amount exceeds estimated fair value
3,013,000 
 
3,013,000 
 
2,543,000 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
 
 
 
Mortgages and notes receivable
18,809,000 
 
18,809,000 
 
19,044,000 
Mortgages and notes payable
1,615,068,000 
 
1,615,068,000 
 
1,522,945,000 
Financing obligations
32,869,000 
 
32,869,000 
 
33,114,000 
Level 1 [Member]
 
 
 
 
 
Assets [Abstract]
 
 
 
 
 
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
3,876,000 
 
3,876,000 
 
3,479,000 
Tax increment financing bond (in prepaid expenses and other assets)
0 
 
0 
 
0 
Total Assets
3,876,000 
 
3,876,000 
 
3,479,000 
Noncontrolling Interests in the Operating Partnership
125,075,000 
 
125,075,000 
 
120,838,000 
Liability [Abstract]
 
 
 
 
 
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
3,876,000 
 
3,876,000 
 
4,091,000 
Level 3 [Member]
 
 
 
 
 
Assets [Abstract]
 
 
 
 
 
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
0 
 
0 
 
0 
Tax increment financing bond (in prepaid expenses and other assets)
15,228,000 
 
15,228,000 
 
15,699,000 
Total Assets
15,228,000 
 
15,228,000 
 
15,699,000 
Noncontrolling Interests in the Operating Partnership
0 
 
0 
 
0 
Liability [Abstract]
 
 
 
 
 
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
0 
 
0 
 
0 
Tax Increment Financing Bond [Member]
 
 
 
 
 
Tax increment financing bond [Abstract]
 
 
 
 
 
Beginning balance
15,564,000 
17,090,000 
15,699,000 
16,871,000 
 
Unrealized gain/(loss) (in AOCL)
(336,000)
(73,000)
(471,000)
146,000 
 
Ending balance
15,228,000 
17,017,000 
15,228,000 
17,017,000 
 
Amount by which outstanding principal amount exceeds estimated fair value
3,000,000 
 
3,000,000 
 
 
Maturity date
 
 
Dec. 01, 2020 
 
 
Decrease in fair value of bond if yield-to-maturity was 100 basis points higher
600,000 
 
600,000 
 
 
Increase in fair value of bond if yield-to-maturity was 100 basis points lower
600,000 
 
600,000 
 
 
Fair value [Member]
 
 
 
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
 
 
 
Mortgages and notes receivable
19,141,000 
 
19,141,000 
 
19,093,000 
Mortgages and notes payable
1,725,186,000 
 
1,725,186,000 
 
1,581,518,000 
Financing obligations
20,852,000 
 
20,852,000 
 
23,880,000 
Carrying value [Member]
 
 
 
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
 
 
 
Mortgages and notes receivable
18,809,000 
 
18,809,000 
 
19,044,000 
Mortgages and notes payable
1,615,068,000 
 
1,615,068,000 
 
1,522,945,000 
Financing obligations
$ 32,869,000 
 
$ 32,869,000 
 
$ 33,114,000 
Share-Based Payments (Details) (USD $)
3 Months Ended
Jun. 30,		 6 Months Ended
Jun. 30,
2011
2010
2011
2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Stock-based compensation expense
$ 1,400,000 
$ 1,400,000 
$ 3,453,000 
$ 3,497,000 
Total unrecognized stock-based compensation costs
$ 7,900,000 
 
$ 7,900,000 
 
Weighted average remaining contractual term for recognition of unrecognized stock-based compensation costs (in years)
2.4 
 
2.4 
 
Stock Options [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Options granted
 
 
146,581 
 
Weighted average grant date fair value of each stock option granted (in dollars per option)
 
 
$ 6.47 
 
Time Based Restricted Stock [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Shares granted (in shares)
 
 
76,166 
 
Weighted average grant date fair values per share of restricted stock (in dollars per share)
 
 
$ 33.74 
 
Total-Return Based Restricted Stock [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Shares granted (in shares)
 
 
57,386 
 
Weighted average grant date fair values per share of restricted stock (in dollars per share)
 
 
$ 41.02 
 
Comprehensive Income and Accumulated Other Comprehensive Loss (Details) (USD $)
In Thousands
3 Months Ended
Jun. 30,		 6 Months Ended
Jun. 30,
2011
2010
2011
2010
Dec. 31, 2010
Comprehensive Income and Accumulated Other Comprehensive Loss [Abstract]
 
 
 
 
 
Net income
$ 14,434 
$ 40,049 
$ 26,877 
$ 52,131 
 
Other comprehensive income/(loss):
 
 
 
 
 
Unrealized gain/(loss) on tax increment financing bond
(336)
(73)
(471)
146 
 
Amortization of settled cash-flow hedges
(29)
48 
(58)
287 
 
Sale of cash-flow hedge related to disposition of investment in unconsolidated affiliate
0 
103 
0 
103 
 
Total other comprehensive income/(loss)
(365)
78 
(529)
536 
 
Total comprehensive income
14,069 
40,127 
26,348 
52,667 
 
Components of AOCL
 
 
 
 
 
Tax increment financing bond
3,013 
 
3,013 
 
2,543 
Settled cash-flow hedges
1,164 
 
1,164 
 
1,105 
Total accumulated other comprehensive loss
$ 4,177 
 
$ 4,177 
 
$ 3,648 
Discontinued Operations (Details) (USD $)
In Thousands
3 Months Ended
Jun. 30,		 6 Months Ended
Jun. 30,
2011
2010
2011
2010
Dec. 31, 2010
Discontinued Operations [Abstract]
 
 
 
 
 
Rental and other revenues
$ 500 
$ 1,227 
$ 1,113 
$ 2,557 
 
Operating expenses:
 
 
 
 
 
Rental property and other expenses
178 
455 
359 
1,048 
 
Depreciation and amortization
32 
275 
127 
549 
 
Total operating expenses
210 
730 
486 
1,597 
 
Other Income
1 
1 
1 
1 
 
Income from discontinued operations
291 
498 
628 
961 
 
Net losses on disposition of discontinued operations
0 
(260)
0 
(86)
 
Total discontinued operations
291 
238 
628 
875 
 
Assets:
 
 
 
 
 
Land
2,788 
 
2,788 
 
2,788 
Buildings and tenant improvements
12,663 
 
12,663 
 
12,707 
Land held for development
967 
 
967 
 
2,766 
Total real estate assets
16,418 
 
16,418 
 
18,261 
Less accumulated depreciation
(5,113)
 
(5,113)
 
(5,012)
Net real estate assets
11,305 
 
11,305 
 
13,249 
Deferred leasing costs, net
55 
 
55 
 
58 
Accrued straight line rents receivable
249 
 
249 
 
257 
Prepaid expenses and other assets
0 
 
0 
 
43 
Real estate and other assets, net, held for sale
11,609 
 
11,609 
 
13,607 
Tenant security deposits, deferred rents and accrued costs
$ 123 1
 
$ 123 1
 
$ 11 1
Earnings Per Share (Details) (USD $)
In Thousands, except Share data
3 Months Ended
Jun. 30,		 6 Months Ended
Jun. 30,
2011
2010
2011
2010
Numerator:
 
 
 
 
Income from continuing operations
$ 14,143 
$ 39,811 
$ 26,249 
$ 51,256 
Net (income) attributable to noncontrolling interests in the Operating Partnership from continuing operations
(608)
(1,921)
(1,098)
(2,409)
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(182)
(215)
(305)
(429)
Dividends on Preferred Stock
(1,622)
(1,677)
(3,299)
(3,354)
Excess of Preferred Stock redemption/repurchase cost over carrying value
(1,895)
0 
(1,895)
0 
Income from continuing operations available for common stockholders
9,836 
35,998 
19,652 
45,064 
Income from discontinued operations
291 
238 
628 
875 
Net (income) attributable to noncontrolling interests in the Operating Partnership from discontinued operations
(15)
(12)
(32)
(44)
Income from discontinued operations available for common stockholders
276 
226 
596 
831 
Net income available for common stockholders
10,112 
36,224 
20,248 
45,895 
Denominator:
 
 
 
 
Denominator for basic earnings per Common Share - weighted average shares
72,211,000 
71,601,000 
72,015,000 
71,508,000 
Earnings per Common Share - basic:
 
 
 
 
Income from continuing operations available for common stockholders (in dollars per share)
$ 0.14 
$ 0.51 
$ 0.27 
$ 0.63 
Income from discontinued operations available for common stockholders (in dollars per share)
$ 0 
$ 0 
$ 0.01 
$ 0.01 
Net income available for common stockholders (in dollars per share)
$ 0.14 
$ 0.51 
$ 0.28 
$ 0.64 
Numerator:
 
 
 
 
Income from continuing operations
14,143 
39,811 
26,249 
51,256 
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(182)
(215)
(305)
(429)
Dividends on Preferred Stock
(1,622)
(1,677)
(3,299)
(3,354)
Excess of Preferred Stock redemption/repurchase cost over carrying value
(1,895)
0 
(1,895)
0 
Income from continuing operations available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
10,444 
37,919 
20,750 
47,473 
Income from discontinued operations available for common stockholders
291 
238 
628 
875 
Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
$ 10,735 
$ 38,157 
$ 21,378 
$ 48,348 
Denominator:
 
 
 
 
Denominator for basic earnings per Common Share -weighted average shares
72,211,000 
71,601,000 
72,015,000 
71,508,000 
Stock options using the treasury method
202,000 
209,000 
185,000 
188,000 
Noncontrolling interests partnership units
3,784,000 
3,797,000 
3,787,000 
3,808,000 
Denominator for diluted earnings per Common Share - adjusted weighted average shares and assumed conversions (1)
76,197,000 1
75,607,000 1
75,987,000 1
75,504,000 1
Earnings per Common Share - diluted:
 
 
 
 
Income from continuing operations available for common stockholders (in dollars per share)
$ 0.14 
$ 0.50 
$ 0.27 
$ 0.63 
Income from discontinued operations available for common stockholders (in dollars per share)
$ 0 
$ 0 
$ 0.01 
$ 0.01 
Net income available for common stockholders (in dollars per share)
$ 0.14 
$ 0.50 
$ 0.28 
$ 0.64 
Number of anti-dilutive options and warrants not included in earnings per share (in dollars per share)
300,000 
300,000 
600,000 
600,000 
Segment Information (Details) (USD $)
In Thousands
3 Months Ended
Jun. 30,		 6 Months Ended
Jun. 30,
2011
2010
2011
2010
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
$ 117,057 
$ 113,765 
$ 232,036 
$ 228,268 
Total Net Operating Income
75,914 
75,622 
149,695 
148,621 
Depreciation and amortization
(33,430)
(33,260)
(67,147)
(65,898)
General and administrative expense
(7,978)
(6,980)
(15,771)
(15,487)
Interest expense
(23,907)
(22,934)
(47,450)
(46,047)
Interest and other income
1,875 
965 
3,748 
2,665 
Income from continuing operations before disposition of property, condominiums and investment in unconsolidated affiliates and equity in earnings of unconsolidated affiliates
12,474 
13,413 
23,075 
23,854 
Office Atlanta, GA [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
12,341 
12,065 
24,245 
24,198 
Total Net Operating Income
7,973 
7,828 
15,467 
15,461 
Office Greenville, SC [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
3,437 
3,451 
6,943 
7,127 
Total Net Operating Income
2,067 
2,168 
4,143 
4,449 
Office Kansas City, MO [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
3,586 
3,663 
7,243 
7,371 
Total Net Operating Income
2,113 
2,327 
4,228 
4,540 
Office Memphis, TN [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
10,077 
7,328 
20,180 
15,196 
Total Net Operating Income
5,462 
4,223 
11,224 
9,507 
Office Nashville, TN [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
15,362 
14,851 
29,977 
29,964 
Total Net Operating Income
10,329 
10,065 
19,981 
19,934 
Office Orlando, FL [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
2,619 
3,059 
4,937 
6,064 
Total Net Operating Income
1,285 
1,723 
2,451 
3,336 
Office Piedmont Triad, NC [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
5,273 
5,367 
10,637 
10,764 
Total Net Operating Income
3,452 
3,791 
7,055 
7,091 
Office Raleigh, NC [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
20,103 
18,523 
39,423 
37,328 
Total Net Operating Income
14,270 
13,046 
27,473 
25,675 
Office Richmond, VA [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
11,668 
11,483 
23,047 
23,276 
Total Net Operating Income
8,232 
8,405 
16,092 
16,355 
Office Tampa, FL [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
17,458 
18,037 
34,250 
35,979 
Total Net Operating Income
10,802 
10,991 
21,192 
21,811 
Office Total Segment [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
101,924 
97,827 
200,882 
197,267 
Total Net Operating Income
65,985 
64,567 
129,306 
128,159 
Industrial Atlanta, GA [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
4,028 
3,842 
7,962 
7,817 
Total Net Operating Income
3,001 
2,793 
5,841 
5,563 
Industrial Piedmont Triad, NC [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
2,825 
3,044 
5,803 
6,065 
Total Net Operating Income
2,107 
2,328 
4,332 
4,375 
Industrial Total Segment [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
6,853 
6,886 
13,765 
13,882 
Total Net Operating Income
5,108 
5,121 
10,173 
9,938 
Retail Kansas City, MO [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
8,203 
8,749 
17,104 
16,437 
Total Net Operating Income
4,832 
5,746 
10,123 
10,098 
Total Retail Segment [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
8,203 
8,749 
17,104 
16,437 
Total Net Operating Income
4,832 
5,746 
10,123 
10,098 
Residential Kansas City, MO [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
77 
303 
285 
682 
Total Net Operating Income
(11)
188 
93 
426 
Total Residential Segment [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
77 
303 
285 
682 
Total Net Operating Income
$ (11)
$ 188 
$ 93 
$ 426 
Subsequent Events (Details) (New Revolving Credit Facility [Member], USD $)
In Millions, unless otherwise specified
1 Months Ended
Jul. 27, 2011
New Revolving Credit Facility [Member]
 
Subsequent Event [Line Items]
 
Maximum borrowing capacity
$ 475.0 
Maximum borrowing capacity for previous revolving credit facility
400.0 
Maturity date
Jul. 27, 2015 
Additional borrowing capacity
$ 75.0 
Interest rate
LIBOR plus 150 basis points  
Annual facility fee (in hundredths)
0.35%