HIGHWOODS PROPERTIES, INC., 10-Q filed on 10/29/2013
Quarterly Report
Document and Entity Information Document
9 Months Ended
Sep. 30, 2013
Oct. 21, 2013
Entity Information [Line Items]
 
 
Entity Registrant Name
HIGHWOODS PROPERTIES INC. 
 
Entity Central Index Key
0000921082 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Large Accelerated Filer 
 
Document Type
10-Q 
 
Document Period End Date
Sep. 30, 2013 
 
Document Fiscal Year Focus
2013 
 
Document Fiscal Period Focus
Q3 
 
Amendment Flag
false 
 
Entity Common Stock, Shares Outstanding
 
89,910,944 
Entity Well-known Seasoned Issuer
Yes 
 
Entity Voluntary Filers
No 
 
Entity Current Reporting Status
Yes 
 
Highwoods Realty Limited Partnership [Member]
 
 
Entity Information [Line Items]
 
 
Entity Registrant Name
HIGHWOODS REALTY LIMITED PARTNERSHIP 
 
Entity Central Index Key
0000941713 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Non-accelerated Filer 
 
Document Type
10-Q 
 
Document Period End Date
Sep. 30, 2013 
 
Document Fiscal Year Focus
2013 
 
Document Fiscal Period Focus
Q3 
 
Amendment Flag
false 
 
Entity Well-known Seasoned Issuer
Yes 
 
Entity Voluntary Filers
No 
 
Entity Current Reporting Status
Yes 
 
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Real estate assets, at cost:
 
 
Land
$ 403,556 
$ 345,614 
Buildings and tenant improvements
3,756,552 
3,172,107 
Development in process
56,495 
21,198 
Land held for development
112,079 
115,416 
Total real estate assets
4,328,682 
3,654,335 
Less-accumulated depreciation
(981,602)
(903,837)
Net real estate assets
3,347,080 
2,750,498 
Real estate and other assets, net, held for sale
16,316 
129,400 
Cash and cash equivalents
31,689 
13,783 
Restricted cash
15,246 
19,702 
Accounts receivable, net of allowance of $1,532 and $2,848, respectively
30,839 
23,073 
Mortgages and notes receivable, net of allowance of $340 and $182, respectively
26,291 
25,472 
Accrued straight-line rents receivable, net of allowance of $1,177 and $813, respectively
123,047 
111,233 
Investments in and advances to unconsolidated affiliates
35,856 
66,800 
Deferred financing and leasing costs, net of accumulated amortization of $90,241 and $75,863, respectively
227,826 
166,009 
Prepaid expenses and other assets, net of accumulated amortization of $12,835 and $12,318, respectively
42,675 
44,458 
Total Assets
3,896,865 
3,350,428 
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Liabilities, Redeemable Operating Partnership Units and Equity:
 
 
Mortgages and notes payable
2,050,061 
1,859,162 
Accounts payable, accrued expenses and other liabilities
208,536 
172,146 
Financing obligations
28,192 
29,358 
Total Liabilities
2,286,789 
2,060,666 
Commitments and contingencies
   
   
Noncontrolling interests in the Operating Partnership
103,948 
124,869 
Equity:
 
 
Preferred Stock, $.01 par value, 50,000,000 authorized shares; 8.625% Series A Cumulative Redeemable Preferred Shares (liquidation preference $1,000 per share; 29,077 shares issued and outstanding)
29,077 
29,077 
Common Stock, $.01 par value, 200,000,000 authorized shares; 89,910,944 and 80,311,437 shares issued and outstanding, respectively
899 
803 
Additional paid-in capital
2,371,925 
2,040,306 
Distributions in excess of net income available for common stockholders
(911,948)
(897,418)
Accumulated other comprehensive loss
(5,003)
(12,628)
Total Stockholders’ Equity
1,484,950 
1,160,140 
Noncontrolling interests in consolidated affiliates
21,178 
4,753 
Total Equity
1,506,128 
1,164,893 
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Equity
3,896,865 
3,350,428 
Highwoods Realty Limited Partnership [Member]
 
 
Real estate assets, at cost:
 
 
Land
403,556 
345,614 
Buildings and tenant improvements
3,756,552 
3,172,107 
Development in process
56,495 
21,198 
Land held for development
112,079 
115,416 
Total real estate assets
4,328,682 
3,654,335 
Less-accumulated depreciation
(981,602)
(903,837)
Net real estate assets
3,347,080 
2,750,498 
Real estate and other assets, net, held for sale
16,316 
129,400 
Cash and cash equivalents
31,780 
13,867 
Restricted cash
15,246 
19,702 
Accounts receivable, net of allowance of $1,532 and $2,848, respectively
30,839 
23,073 
Mortgages and notes receivable, net of allowance of $340 and $182, respectively
26,291 
25,472 
Accrued straight-line rents receivable, net of allowance of $1,177 and $813, respectively
123,047 
111,233 
Investments in and advances to unconsolidated affiliates
34,838 
65,813 
Deferred financing and leasing costs, net of accumulated amortization of $90,241 and $75,863, respectively
227,826 
166,009 
Prepaid expenses and other assets, net of accumulated amortization of $12,835 and $12,318, respectively
42,628 
44,458 
Total Assets
3,895,891 
3,349,525 
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Liabilities, Redeemable Operating Partnership Units and Equity:
 
 
Mortgages and notes payable
2,050,061 
1,859,162 
Accounts payable, accrued expenses and other liabilities
208,467 
172,026 
Financing obligations
28,192 
29,358 
Total Liabilities
2,286,720 
2,060,546 
Commitments and contingencies
   
   
Redeemable Operating Partnership Units:
 
 
Common Units, 2,943,872 and 3,733,016 outstanding, respectively
103,948 
124,869 
Series A Preferred Units (liquidation preference $1,000 per unit), 29,077 units issued and outstanding
29,077 
29,077 
Total Redeemable Operating Partnership Units
133,025 
153,946 
Equity:
 
 
General partner Common Units, 924,460 and 836,356 outstanding, respectively
14,598 
11,427 
Limited partner Common Units, 88,577,675 and 79,066,272 outstanding, respectively
1,445,373 
1,131,481 
Accumulated other comprehensive loss
(5,003)
(12,628)
Noncontrolling interests in consolidated affiliates
21,178 
4,753 
Total Equity
1,476,146 
1,135,033 
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Equity
$ 3,895,891 
$ 3,349,525 
Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
9 Months Ended 12 Months Ended
Sep. 30, 2013
Dec. 31, 2012
Assets:
 
 
Accounts receivable allowance
$ 1,532 
$ 2,848 
Mortgages and notes receivable allowance
340 
182 
Accrued straight-line rents receivable allowance
1,177 
813 
Deferred financing and leasing costs, accumulated amortization
90,241 
75,863 
Prepaid expenses and other assets, accumulated amortization
12,835 
12,318 
Equity:
 
 
Series A Preferred Stock, dividend rate percentage (in hundredths)
8.625% 
8.625% 
Series A Preferred Stock, par value (in dollars per share)
$ 0.01 
$ 0.01 
Series A Preferred Stock, authorized shares (in shares)
50,000,000 
50,000,000 
Series A Preferred Stock, liquidation preference (in dollars per share)
$ 1,000 
$ 1,000 
Series A Preferred Stock, shares issued (in shares)
29,077 
29,077 
Series A Preferred Stock, shares outstanding (in shares)
29,077 
29,077 
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)
89,910,944 
80,311,437 
Common Stock, shares outstanding (in shares)
89,910,944 
80,311,437 
Highwoods Realty Limited Partnership [Member]
 
 
Assets:
 
 
Accounts receivable allowance
1,532 
2,848 
Mortgages and notes receivable allowance
340 
182 
Accrued straight-line rents receivable allowance
1,177 
813 
Deferred financing and leasing costs, accumulated amortization
90,241 
75,863 
Prepaid expenses and other assets, accumulated amortization
$ 12,835 
$ 12,318 
Redeemable Operating Partnership Units: [Abstract]
 
 
Redeemable Common Units outstanding (in shares)
2,943,872 
3,733,016 
Series A Preferred Units, liquidation preference (in dollars per share)
$ 1,000 
$ 1,000 
Series A Preferred Units, issued (in shares)
29,077 
29,077 
Series A Preferred Units, outstanding (in shares)
29,077 
29,077 
Common Units: [Abstract]
 
 
General partners' capital account, units outstanding (in shares)
924,460 
836,356 
Limited partners' capital account, units outstanding (in shares)
88,577,675 
79,066,272 
Consolidated Statements of Income (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Rental and other revenues
$ 147,294 
$ 123,418 
$ 415,961 
$ 368,029 
Operating expenses:
 
 
 
 
Rental property and other expenses
55,365 
45,904 
151,802 
134,102 
Depreciation and amortization
48,124 
37,041 
130,390 
110,656 
General and administrative
8,969 
9,725 
27,948 
28,298 
Total operating expenses
112,458 
92,670 
310,140 
273,056 
Interest expense:
 
 
 
 
Contractual
22,683 
22,910 
67,879 
70,309 
Amortization of deferred financing costs
963 
907 
2,860 
2,709 
Financing obligations
26 
(205)
87 
(357)
Total interest expense
23,672 
23,612 
70,826 
72,661 
Other income:
 
 
 
 
Interest and other income
1,582 
1,916 
4,982 
5,883 
Losses on debt extinguishment
(32)
0 
(196)
(973)
Total other income
1,550 
1,916 
4,786 
4,910 
Income from continuing operations before disposition of property and condominiums and acquisition of controlling interest in and equity in earnings/(losses) of unconsolidated affiliates
12,714 
9,052 
39,781 
27,222 
Gains/(losses) on disposition of property
34 
0 
(3)
0 
Gains on for-sale residential condominiums
0 
80 
0 
255 
Gain on acquisition of controlling interest in unconsolidated affiliate
7,451 
0 
7,451 
0 
Equity in earnings/(losses) of unconsolidated affiliates
(3,173)
1,324 
(1,824)
2,670 
Income from continuing operations
17,026 
10,456 
45,405 
30,147 
Discontinued operations:
 
 
 
 
Income from discontinued operations
1,096 
2,404 
3,843 
9,024 
Impairments of real estate assets
0 
0 
(2,194)
0 
Net gains on disposition of discontinued operations
37,946 
22,936 
52,353 
29,455 
Total discontinued operations
39,042 
25,340 
54,002 
38,479 
Net income
56,068 
35,796 
99,407 
68,626 
Net (income) attributable to noncontrolling interests in the Operating Partnership
(1,889)
(1,653)
(3,713)
(3,166)
Net (income) attributable to noncontrolling interests in consolidated affiliates
(203)
(159)
(593)
(566)
Dividends on Preferred Stock
(627)
(627)
(1,881)
(1,881)
Net income available for common stockholders
53,349 
33,357 
93,220 
63,013 
Earnings per Common Share – basic:
 
 
 
 
Income from continuing operations available for common stockholders (in dollars per share)
$ 0.18 
$ 0.12 
$ 0.49 
$ 0.35 
Income from discontinued operations available for common stockholders (in dollars per share)
$ 0.43 
$ 0.32 
$ 0.62 
$ 0.49 
Net income available for common stockholders (in dollars per share)
$ 0.61 
$ 0.44 
$ 1.11 
$ 0.84 
Weighted average Common Shares outstanding - basic (in shares)
87,467 1 2
76,590 1 2
83,793 1 2
74,703 1 2
Earnings per Common Share - diluted:
 
 
 
 
Income from continuing operations available for common stockholders (in dollars per share)
$ 0.18 
$ 0.12 
$ 0.49 
$ 0.35 
Income from discontinued operations available for common stockholders (in dollars per share)
$ 0.43 
$ 0.31 
$ 0.62 
$ 0.49 
Net income available for common stockholders (in dollars per share)
$ 0.61 
$ 0.43 
$ 1.11 
$ 0.84 
Weighted average Common Shares outstanding - diluted (in shares)
90,769 1
80,495 1
87,443 1
78,568 1
Dividends declared per Common Share (in dollars per share)
$ 0.425 
$ 0.425 
$ 1.275 
$ 1.275 
Net income available for common stockholders:
 
 
 
 
Income from continuing operations available for common stockholders
15,693 
9,211 
41,247 
26,365 
Income from discontinued operations available for common stockholders
37,656 
24,146 
51,973 
36,648 
Net income available for common stockholders
53,349 
33,357 
93,220 
63,013 
Highwoods Realty Limited Partnership [Member]
 
 
 
 
Rental and other revenues
147,294 
123,418 
415,961 
368,029 
Operating expenses:
 
 
 
 
Rental property and other expenses
55,343 
45,830 
151,784 
133,907 
Depreciation and amortization
48,124 
37,041 
130,390 
110,656 
General and administrative
8,991 
9,799 
27,966 
28,493 
Total operating expenses
112,458 
92,670 
310,140 
273,056 
Interest expense:
 
 
 
 
Contractual
22,683 
22,910 
67,879 
70,309 
Amortization of deferred financing costs
963 
907 
2,860 
2,709 
Financing obligations
26 
(205)
87 
(357)
Total interest expense
23,672 
23,612 
70,826 
72,661 
Other income:
 
 
 
 
Interest and other income
1,582 
1,916 
4,982 
5,883 
Losses on debt extinguishment
(32)
0 
(196)
(973)
Total other income
1,550 
1,916 
4,786 
4,910 
Income from continuing operations before disposition of property and condominiums and acquisition of controlling interest in and equity in earnings/(losses) of unconsolidated affiliates
12,714 
9,052 
39,781 
27,222 
Gains/(losses) on disposition of property
34 
0 
(3)
0 
Gains on for-sale residential condominiums
0 
80 
0 
255 
Gain on acquisition of controlling interest in unconsolidated affiliate
7,451 
0 
7,451 
0 
Equity in earnings/(losses) of unconsolidated affiliates
(3,174)
1,328 
(1,875)
2,679 
Income from continuing operations
17,025 
10,460 
45,354 
30,156 
Discontinued operations:
 
 
 
 
Income from discontinued operations
1,096 
2,404 
3,843 
9,024 
Impairments of real estate assets
0 
0 
(2,194)
0 
Net gains on disposition of discontinued operations
37,946 
22,936 
52,353 
29,455 
Total discontinued operations
39,042 
25,340 
54,002 
38,479 
Net income
56,067 
35,800 
99,356 
68,635 
Net (income) attributable to noncontrolling interests in consolidated affiliates
(203)
(159)
(593)
(566)
Distributions on Preferred Units
(627)
(627)
(1,881)
(1,881)
Net income available for common unitholders
55,237 
35,014 
96,882 
66,188 
Earnings per Common Unit - basic:
 
 
 
 
Income from continuing operations available for common unitholders (in dollars per share)
$ 0.18 
$ 0.12 
$ 0.49 
$ 0.36 
Income from discontinued operations available for common unitholders (in dollars per share)
$ 0.43 
$ 0.32 
$ 0.62 
$ 0.49 
Net income available for common unitholders (in dollars per share)
$ 0.61 
$ 0.44 
$ 1.11 
$ 0.85 
Weighted average Common Units outstanding - basic (in shares)
90,259 2 3
79,949 2 3
86,920 2 3
78,032 2 3
Earnings per Common Unit - diluted:
 
 
 
 
Income from continuing operations available for common unitholders (in dollars per share)
$ 0.18 
$ 0.12 
$ 0.49 
$ 0.36 
Income from discontinued operations available for common unitholders (in dollars per share)
$ 0.43 
$ 0.32 
$ 0.62 
$ 0.49 
Net income available for common unitholders (in dollars per share)
$ 0.61 
$ 0.44 
$ 1.11 
$ 0.85 
Weighted average Common Units outstanding - diluted (in shares)
90,360 3
80,086 3
87,034 3
78,159 3
Distributions declared per Common Unit (in dollars per unit)
$ 0.425 
$ 0.425 
$ 1.275 
$ 1.275 
Net income available for common unitholders:
 
 
 
 
Income from continuing operations available for common unitholders
16,195 
9,674 
42,880 
27,709 
Income from discontinued operations available for common unitholders
39,042 
25,340 
54,002 
38,479 
Net income available for common unitholders
$ 55,237 
$ 35,014 
$ 96,882 
$ 66,188 
Consolidated Statements of Comprehensive Income (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Comprehensive income:
 
 
 
 
Net income
$ 56,068 
$ 35,796 
$ 99,407 
$ 68,626 
Other comprehensive income:
 
 
 
 
Unrealized gains/(losses) on tax increment financing bond
97 
(101)
396 
482 
Unrealized gains/(losses) on cash flow hedges
(1,798)
(3,337)
4,801 
(10,424)
Amortization of cash flow hedges
840 
791 
2,428 
2,250 
Total other comprehensive income/(loss)
(861)
(2,647)
7,625 
(7,692)
Total comprehensive income
55,207 
33,149 
107,032 
60,934 
Less-comprehensive (income) attributable to noncontrolling interests
(2,092)
(1,812)
(4,306)
(3,732)
Comprehensive income attributable to common stockholders/Comprehensive income attributable to common unitholders
53,115 
31,337 
102,726 
57,202 
Highwoods Realty Limited Partnership [Member]
 
 
 
 
Comprehensive income:
 
 
 
 
Net income
56,067 
35,800 
99,356 
68,635 
Other comprehensive income:
 
 
 
 
Unrealized gains/(losses) on tax increment financing bond
97 
(101)
396 
482 
Unrealized gains/(losses) on cash flow hedges
(1,798)
(3,337)
4,801 
(10,424)
Amortization of cash flow hedges
840 
791 
2,428 
2,250 
Total other comprehensive income/(loss)
(861)
(2,647)
7,625 
(7,692)
Total comprehensive income
55,206 
33,153 
106,981 
60,943 
Less-comprehensive (income) attributable to noncontrolling interests
(203)
(159)
(593)
(566)
Comprehensive income attributable to common stockholders/Comprehensive income attributable to common unitholders
$ 55,003 
$ 32,994 
$ 106,388 
$ 60,377 
Consolidated Statements of Equity (USD $)
In Thousands, except Share data, unless otherwise specified
Total
Highwoods Realty Limited Partnership [Member]
Common Stock [Member]
Series A Cumulative Redeemable Preferred Shares [Member]
General Partner Common Units [Member]
Highwoods Realty Limited Partnership [Member]
Limited Partner Common Units [Member]
Highwoods Realty Limited Partnership [Member]
Additional Paid-in Capital [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Highwoods Realty Limited Partnership [Member]
Noncontrolling Interests in Consolidated Affiliates [Member]
Noncontrolling Interests in Consolidated Affiliates [Member]
Highwoods Realty Limited Partnership [Member]
Distributions in Excess of Net Income Available for Common Stockholders [Member]
Balance at Dec. 31, 2011
$ 986,859 
$ 956,674 
$ 726 
$ 29,077 
$ 9,575 
$ 948,187 
$ 1,803,997 
$ (5,734)
$ (5,734)
$ 4,646 
$ 4,646 
$ (845,853)
Balance (in shares) at Dec. 31, 2011
 
 
72,647,697 
 
 
 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
Issuances of Common Units, net of tax withholdings
 
188,973 
 
 
1,890 
187,083 
 
 
0 
 
0 
 
Distributions paid on Common Units
 
(99,334)
 
 
(994)
(98,340)
 
 
0 
 
0 
 
Distributions paid on Preferred Units
 
(1,881)
 
 
(19)
(1,862)
 
 
0 
 
0 
 
Issuances of Common Stock - Shares
 
 
5,701,974 
 
 
 
 
 
 
 
 
 
Issuances of Common Stock, net of tax withholdings
186,674 
 
57 
0 
 
 
186,617 
0 
 
0 
 
0 
Conversions of Common Units to Common Stock - Shares
 
 
21,366 
 
 
 
 
 
 
 
 
 
Conversions of Common Units to Common Stock
731 
 
0 
0 
 
 
731 
0 
 
0 
 
0 
Dividends on Common Stock
(95,122)
 
0 
0 
 
 
0 
0 
 
0 
 
(95,122)
Dividends on Preferred Stock
(1,881)
 
0 
0 
 
 
0 
0 
 
0 
 
(1,881)
Adjustment of noncontrolling interests in the Operating Partnership to fair value
(12,485)
 
0 
0 
 
 
(12,485)
0 
 
0 
 
0 
Distributions to noncontrolling interests in consolidated affiliates
(663)
(663)
0 
0 
0 
0 
0 
0 
0 
(663)
(663)
0 
Issuances of restricted stock -shares
 
 
158,885 
 
 
 
 
 
 
 
 
 
Issuances of restricted stock
0 
 
0 
0 
 
 
0 
0 
 
0 
 
0 
Share-based compensation expense, net of forfeitures
6,464 
6,464 
2 
0 
65 
6,399 
6,462 
0 
0 
0 
0 
0 
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner
 
(12,814)
 
 
(128)
(12,686)
 
 
0 
 
0 
 
Net (income) attributable to noncontrolling interests in the Operating Partnership
(3,166)
 
0 
0 
 
 
0 
0 
 
0 
 
(3,166)
Net (income) attributable to noncontrolling interests in consolidated affiliates
0 
0 
0 
0 
(6)
(560)
0 
0 
0 
566 
566 
(566)
Comprehensive income:
 
 
 
 
 
 
 
 
 
 
 
 
Net income
68,626 
68,635 
0 
0 
686 
67,949 
0 
0 
0 
0 
0 
68,626 
Other comprehensive income/(loss)
(7,692)
(7,692)
0 
0 
0 
0 
0 
(7,692)
(7,692)
0 
0 
0 
Total comprehensive income
60,934 
60,943 
 
 
 
 
 
 
 
 
 
 
Balance at Sep. 30, 2012
1,128,345 
1,098,362 
785 
29,077 
11,069 
1,096,170 
1,985,322 
(13,426)
(13,426)
4,549 
4,549 
(877,962)
Balance (in shares) at Sep. 30, 2012
 
 
78,529,922 
 
 
 
 
 
 
 
 
 
Balance at Jun. 30, 2012
 
 
 
 
 
 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
Net (income) attributable to noncontrolling interests in the Operating Partnership
(1,653)
 
 
 
 
 
 
 
 
 
 
 
Comprehensive income:
 
 
 
 
 
 
 
 
 
 
 
 
Net income
35,796 
35,800 
 
 
 
 
 
 
 
 
 
 
Other comprehensive income/(loss)
(2,647)
(2,647)
 
 
 
 
 
 
 
 
 
 
Total comprehensive income
33,149 
33,153 
 
 
 
 
 
 
 
 
 
 
Balance at Sep. 30, 2012
1,128,345 
1,098,362 
 
 
 
 
 
 
 
 
 
 
Balance at Dec. 31, 2012
1,164,893 
1,135,033 
803 
29,077 
11,427 
1,131,481 
2,040,306 
(12,628)
(12,628)
4,753 
4,753 
(897,418)
Balance (in shares) at Dec. 31, 2012
80,311,437 
 
80,311,437 
 
 
 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
Issuances of Common Units, net of tax withholdings
 
305,601 
 
 
3,056 
302,545 
 
 
0 
 
0 
 
Distributions paid on Common Units
 
(111,645)
 
 
(1,117)
(110,528)
 
 
0 
 
0 
 
Distributions paid on Preferred Units
 
(1,881)
 
 
(19)
(1,862)
 
 
0 
 
0 
 
Issuances of Common Stock - Shares
 
 
8,660,546 
 
 
 
 
 
 
 
 
 
Issuances of Common Stock, net of tax withholdings
305,601 
 
87 
0 
 
 
305,514 
0 
 
0 
 
0 
Conversions of Common Units to Common Stock - Shares
 
 
789,144 
 
 
 
 
 
 
 
 
 
Conversions of Common Units to Common Stock
28,788 
 
0 
0 
 
 
28,788 
0 
 
0 
 
0 
Dividends on Common Stock
(107,750)
 
0 
0 
 
 
0 
0 
 
0 
 
(107,750)
Dividends on Preferred Stock
(1,881)
 
0 
0 
 
 
0 
0 
 
0 
 
(1,881)
Adjustment of noncontrolling interests in the Operating Partnership to fair value
(8,570)
 
0 
0 
 
 
(8,570)
0 
 
0 
 
0 
Distributions to noncontrolling interests in consolidated affiliates
(408)
(408)
0 
0 
0 
0 
0 
0 
0 
(408)
(408)
0 
Contributions from noncontrolling interests in consolidated affiliates
16,240 
16,240 
0 
0 
0 
0 
0 
0 
0 
16,240 
16,240 
0 
Issuances of restricted stock -shares
 
 
151,630 
 
 
 
 
 
 
 
 
 
Issuances of restricted stock
0 
 
0 
0 
 
 
0 
0 
 
0 
 
0 
Share-based compensation expense, net of forfeitures - Shares
 
 
(1,813)
 
 
 
 
 
 
 
 
 
Share-based compensation expense, net of forfeitures
5,896 
5,896 
9 
0 
59 
5,837 
5,887 
0 
0 
0 
0 
0 
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner
 
20,329 
 
 
204 
20,125 
 
 
0 
 
0 
 
Net (income) attributable to noncontrolling interests in the Operating Partnership
(3,713)
 
0 
0 
 
 
0 
0 
 
0 
 
(3,713)
Net (income) attributable to noncontrolling interests in consolidated affiliates
0 
0 
0 
0 
(6)
(587)
0 
0 
0 
593 
593 
(593)
Comprehensive income:
 
 
 
 
 
 
 
 
 
 
 
 
Net income
99,407 
99,356 
0 
0 
994 
98,362 
0 
0 
0 
0 
0 
99,407 
Other comprehensive income/(loss)
7,625 
7,625 
0 
0 
0 
0 
0 
7,625 
7,625 
0 
0 
0 
Total comprehensive income
107,032 
106,981 
 
 
 
 
 
 
 
 
 
 
Balance at Sep. 30, 2013
1,506,128 
1,476,146 
899 
29,077 
14,598 
1,445,373 
2,371,925 
(5,003)
(5,003)
21,178 
21,178 
(911,948)
Balance (in shares) at Sep. 30, 2013
89,910,944 
 
89,910,944 
 
 
 
 
 
 
 
 
 
Balance at Jun. 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
Net (income) attributable to noncontrolling interests in the Operating Partnership
(1,889)
 
 
 
 
 
 
 
 
 
 
 
Comprehensive income:
 
 
 
 
 
 
 
 
 
 
 
 
Net income
56,068 
56,067 
 
 
 
 
 
 
 
 
 
 
Other comprehensive income/(loss)
(861)
(861)
 
 
 
 
 
 
 
 
 
 
Total comprehensive income
55,207 
55,206 
 
 
 
 
 
 
 
 
 
 
Balance at Sep. 30, 2013
$ 1,506,128 
$ 1,476,146 
 
 
 
 
 
 
 
 
 
 
Balance (in shares) at Sep. 30, 2013
89,910,944 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Operating activities:
 
 
Net income
$ 99,407 
$ 68,626 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Depreciation and amortization
133,556 
117,764 
Amortization of lease incentives and acquisition-related intangible assets and liabilities
258 
358 
Share-based compensation expense
5,896 
6,464 
Allowance for losses on accounts and accrued straight-line rents receivable
1,029 
1,235 
Amortization of deferred financing costs
2,860 
2,709 
Amortization of cash flow hedges
2,428 
2,250 
Amortization of mortgages and notes payable fair value adjustments
(1,015)
0 
Impairments of real estate assets
2,194 
0 
Losses on debt extinguishment
196 
973 
Net gains on disposition of property
(52,350)
(29,455)
Gains on for-sale residential condominiums
0 
(255)
Gain on acquisition of controlling interest in unconsolidated affiliate
(7,451)
0 
Equity in (earnings)/losses of unconsolidated affiliates
1,824 
(2,670)
Changes in financing obligations
(591)
(1,010)
Distributions of earnings from unconsolidated affiliates
3,129 
3,249 
Changes in operating assets and liabilities:
 
 
Accounts receivable
(508)
5,310 
Prepaid expenses and other assets
(2,188)
(3,258)
Accrued straight-line rents receivable
(12,368)
(13,609)
Accounts payable, accrued expenses and other liabilities
10,206 
(20,663)
Net cash provided by operating activities
186,512 
138,018 
Investing activities:
 
 
Investments in acquired real estate and related intangible assets, net of cash acquired
(418,796)
(158,200)
Investment in acquired controlling interest in unconsolidated affiliate
(32,818)
0 
Investments in development in process
(16,634)
(5,392)
Investments in tenant improvements and deferred leasing costs
(77,456)
(61,821)
Investments in building improvements
(38,702)
(27,229)
Net proceeds from disposition of real estate assets
161,970 
152,456 
Net proceeds from disposition of for-sale residential condominiums
0 
3,768 
Distributions of capital from unconsolidated affiliates
16,671 
1,035 
Investments in and repayments of mortgages and notes receivable
(864)
1,657 
Investments in and advances/repayments to/from unconsolidated affiliates
(429)
(3,928)
Changes in restricted cash and other investing activities
5,484 
2,904 
Net cash (used in) investing activities
(401,574)
(94,750)
Financing activities:
 
 
Dividends on Common Stock
(107,750)
(95,122)
Dividends on Preferred Stock
(1,881)
(1,881)
Distributions to noncontrolling interests in the Operating Partnership
(4,416)
(4,733)
Distributions to noncontrolling interests in consolidated affiliates
(408)
(663)
Proceeds from the issuance of Common Stock
315,818 
191,667 
Costs paid for the issuance of Common Stock
(7,678)
(2,745)
Repurchase of shares related to tax withholdings
(2,539)
(2,248)
Borrowings on revolving credit facility
695,300 
219,800 
Repayments of revolving credit facility
(511,900)
(492,800)
Borrowings on mortgages and notes payable
0 
225,000 
Repayments of mortgages and notes payable
(157,001)
(77,264)
Payments on financing obligations
(575)
(1,316)
Contributions from noncontrolling interests in consolidated affiliates
16,240 
0 
Additions to deferred financing costs and other financing activities
(242)
(3,065)
Net cash provided by/(used in) financing activities
232,968 
(45,370)
Net increase/(decrease) in cash and cash equivalents
17,906 
(2,102)
Cash and cash equivalents at beginning of the period
13,783 
11,188 
Cash and cash equivalents at end of the period
31,689 
9,086 
Supplemental disclosure of cash flow information:
 
 
Cash paid for interest, net of amounts capitalized
67,786 
72,793 
Supplemental disclosure of non-cash investing and financing activities:
 
 
Unrealized gains/(losses) on cash flow hedges
4,801 
(10,424)
Conversions of Common Units to Common Stock
28,788 
731 
Changes in accrued capital expenditures
12,778 
1,829 
Write-off of fully depreciated real estate assets
24,498 
36,918 
Write-off of fully amortized deferred financing and leasing costs
17,500 
14,189 
Unrealized gains on marketable securities of non-qualified deferred compensation plan
558 
310 
Adjustment of noncontrolling interests in the Operating Partnership to fair value
8,570 
12,485 
Unrealized gains on tax increment financing bond
396 
482 
Assumption of mortgages and notes payable related to acquisition activities
165,515 
0 
Reduction of advances to unconsolidated affiliates related to acquisition activities
0 
26,000 
Issuances of Common Units to acquire real estate assets
0 
2,299 
Reclass of aggregate differences between historical cost basis and the basis reflected at the joint venture level for assets acquired
8,206 
0 
Highwoods Realty Limited Partnership [Member]
 
 
Operating activities:
 
 
Net income
99,356 
68,635 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Depreciation and amortization
133,556 
117,764 
Amortization of lease incentives and acquisition-related intangible assets and liabilities
258 
358 
Share-based compensation expense
5,896 
6,464 
Allowance for losses on accounts and accrued straight-line rents receivable
1,029 
1,235 
Amortization of deferred financing costs
2,860 
2,709 
Amortization of cash flow hedges
2,428 
2,250 
Amortization of mortgages and notes payable fair value adjustments
(1,015)
0 
Impairments of real estate assets
2,194 
0 
Losses on debt extinguishment
196 
973 
Net gains on disposition of property
(52,350)
(29,455)
Gains on for-sale residential condominiums
0 
(255)
Gain on acquisition of controlling interest in unconsolidated affiliate
(7,451)
0 
Equity in (earnings)/losses of unconsolidated affiliates
1,875 
(2,679)
Changes in financing obligations
(591)
(1,010)
Distributions of earnings from unconsolidated affiliates
3,109 
3,230 
Changes in operating assets and liabilities:
 
 
Accounts receivable
(508)
5,310 
Prepaid expenses and other assets
(2,141)
(3,216)
Accrued straight-line rents receivable
(12,368)
(13,609)
Accounts payable, accrued expenses and other liabilities
10,257 
(20,753)
Net cash provided by operating activities
186,590 
137,951 
Investing activities:
 
 
Investments in acquired real estate and related intangible assets, net of cash acquired
(418,796)
(158,200)
Investment in acquired controlling interest in unconsolidated affiliate
(32,818)
0 
Investments in development in process
(16,634)
(5,392)
Investments in tenant improvements and deferred leasing costs
(77,456)
(61,821)
Investments in building improvements
(38,702)
(27,229)
Net proceeds from disposition of real estate assets
161,970 
152,456 
Net proceeds from disposition of for-sale residential condominiums
0 
3,768 
Distributions of capital from unconsolidated affiliates
16,671 
1,035 
Investments in and repayments of mortgages and notes receivable
(864)
1,657 
Investments in and advances/repayments to/from unconsolidated affiliates
(429)
(3,928)
Changes in restricted cash and other investing activities
5,484 
2,904 
Net cash (used in) investing activities
(401,574)
(94,750)
Financing activities:
 
 
Distributions on Common Units
(111,645)
(99,334)
Distributions on Preferred Units
(1,881)
(1,881)
Distributions to noncontrolling interests in consolidated affiliates
(408)
(663)
Proceeds from the issuance of Common Units
315,818 
191,667 
Costs paid for the issuance of Common Units
(7,678)
(2,745)
Repurchase of units related to tax withholdings
(2,539)
(2,248)
Borrowings on revolving credit facility
695,300 
219,800 
Repayments of revolving credit facility
(511,900)
(492,800)
Borrowings on mortgages and notes payable
0 
225,000 
Repayments of mortgages and notes payable
(157,001)
(77,264)
Payments on financing obligations
(575)
(1,316)
Contributions from noncontrolling interests in consolidated affiliates
16,240 
0 
Additions to deferred financing costs and other financing activities
(834)
(3,394)
Net cash provided by/(used in) financing activities
232,897 
(45,178)
Net increase/(decrease) in cash and cash equivalents
17,913 
(1,977)
Cash and cash equivalents at beginning of the period
13,867 
11,151 
Cash and cash equivalents at end of the period
31,780 
9,174 
Supplemental disclosure of cash flow information:
 
 
Cash paid for interest, net of amounts capitalized
67,786 
72,793 
Supplemental disclosure of non-cash investing and financing activities:
 
 
Unrealized gains/(losses) on cash flow hedges
4,801 
(10,424)
Changes in accrued capital expenditures
12,778 
1,829 
Write-off of fully depreciated real estate assets
24,498 
36,918 
Write-off of fully amortized deferred financing and leasing costs
17,500 
14,189 
Unrealized gains on marketable securities of non-qualified deferred compensation plan
558 
310 
Adjustment of Redeemable Common Units to fair value
(20,921)
10,187 
Unrealized gains on tax increment financing bond
396 
482 
Assumption of mortgages and notes payable related to acquisition activities
165,515 
0 
Reduction of advances to unconsolidated affiliates related to acquisition activities
0 
26,000 
Issuances of Common Units to acquire real estate assets
0 
2,299 
Reclass of aggregate differences between historical cost basis and the basis reflected at the joint venture level for assets acquired
$ 8,206 
$ 0 
Description of Business and Significant Accounting Policies
Description of Business and Significant Accounting Policies
Description of Business and Significant Accounting Policies

Description of Business

Highwoods Properties, Inc. (the “Company”) is a fully-integrated equity real estate investment trust (“REIT”) that provides leasing, management, development, construction and other customer-related services for its properties and for third parties. The Company conducts virtually all of its activities through Highwoods Realty Limited Partnership (the “Operating Partnership”). At September 30, 2013, the Company and/or the Operating Partnership wholly owned: 282 in-service office, industrial and retail properties, comprising 30.1 million square feet; 592 acres of undeveloped land suitable for future development, of which 496 acres are considered core assets; and four office development properties. In addition, we owned interests (50.0% or less) in 23 in-service office properties, a rental residential development property and 11 acres of undeveloped land suitable for future development, which includes a 12.5% interest in a 261,000 square foot office property directly owned by the Company (not included in the Operating Partnership’s Consolidated Financial Statements).

The Company is the sole general partner of the Operating Partnership. At September 30, 2013, the Company owned all of the Preferred Units and 89.5 million, or 96.8%, of the Common Units in the Operating Partnership. Limited partners own the remaining 2.9 million Common Units. During the nine months ended September 30, 2013, the Company redeemed 789,144 Common Units for a like number of shares of Common Stock.

Common Stock Offerings
 
During the three and nine months ended September 30, 2013, the Company issued 904,809 and 3,961,190 shares of Common Stock, respectively, under its equity sales agreements at an average gross sales price of $35.81 and $36.97 per share, respectively, and received net proceeds, after sales commissions, of $31.9 million and $144.2 million, respectively. During the third quarter of 2013, the Company issued 4,312,500 shares of Common Stock in a public offering and received net proceeds of $150.9 million. As a result of these Common Stock offerings and the redemptions discussed above, the percentage of Common Units owned by the Company increased from 95.6% at December 31, 2012 to 96.8% at September 30, 2013.

Basis of Presentation

Our Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Our Consolidated Balance Sheets at December 31, 2012 were retrospectively revised from previously reported amounts to reflect in real estate and other assets, net, held for sale those properties classified as held for sale during the three months ended September 30, 2013. Our Consolidated Statements of Income for the three and nine months ended September 30, 2012 were retrospectively revised from previously reported amounts to reflect in discontinued operations the operations for those properties classified as discontinued operations.

The Company's Consolidated Financial Statements include the Operating Partnership, wholly owned subsidiaries and those entities in which the Company has the controlling interest. The Operating Partnership's Consolidated Financial Statements include wholly owned subsidiaries and those entities in which the Operating Partnership has the controlling interest. All intercompany transactions and accounts have been eliminated. At September 30, 2013 and December 31, 2012, we had involvement with, but are not the primary beneficiary in, an entity that we concluded to be a variable interest entity (see Note 3).


1.    Description of Business and Significant Accounting Policies – Continued
 
The unaudited interim consolidated financial statements and accompanying unaudited consolidated financial information, in the opinion of management, contain all adjustments (including normal recurring accruals) necessary for a fair presentation of our financial position, results of operations and cash flows. We have omitted certain notes and other information from the interim Consolidated Financial Statements presented in this Quarterly Report as permitted by SEC rules and regulations. These Consolidated Financial Statements should be read in conjunction with our 2012 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.
Real Estate Assets
Real Estate Assets
Real Estate Assets
 
Acquisitions
 
During the third quarter of 2013, we acquired our joint venture partner's 60.0% interest in the HIW-KC Orlando, LLC joint venture, which owns five office properties in Orlando, FL encompassing 1.3 million square feet, for a net purchase price of $112.8 million. We previously accounted for our 40.0% interest in this joint venture using the equity method of accounting. The assets and liabilities of the joint venture are now wholly owned and are recorded in our Consolidated Financial Statements, including assets recorded at fair value of $188.0 million and secured debt recorded at fair value of $127.9 million, with an effective interest rate of 3.11%. This debt matures in July 2014. As a result of acquiring a controlling interest in this joint venture, our previously held equity interest was remeasured at a fair value of $75.2 million resulting in a gain of $7.5 million, which represents the difference between the fair market value of our previously held equity interest and the cost basis in our investment on the date of acquisition. The fair market value of our previously held equity interest was determined by management based on information available at the acquisition date and on current assumptions as to future operations.
 
During the third quarter of 2013, we also acquired:

•
an office property in Nashville, TN encompassing 520,000 square feet for a net purchase price of $150.1 million; and

•
our DLF II joint venture partner's 57.0% interest in two office properties in Atlanta, GA encompassing 505,000 square feet for a net purchase price of $44.5 million, including the assumption of secured debt recorded at fair value of $37.6 million, with an effective interest rate of 3.34%. This debt matures in April 2015.
 
During the second quarter of 2013, we acquired an office property in Atlanta, GA encompassing 553,000 square feet for a purchase price of $140.1 million.

During the first quarter of 2013, we acquired:

•
two office properties in Tampa, FL encompassing 372,000 square feet for a purchase price of $52.5 million;

•
two office properties in Greensboro, NC encompassing 195,000 square feet for a purchase price of $30.8 million; and

•
five acres of development land in Memphis, TN for a purchase price of $4.8 million.
 
During the three and nine months ended September 30, 2013, we expensed $0.8 million and $1.7 million, respectively, of acquisition costs (included in general and administrative expenses) related to these acquisitions. The assets acquired and liabilities assumed were recorded at fair value as determined by management based on information available at the acquisition date and on current assumptions as to future operations.
 

2.    Real Estate Assets - Continued
 
The following table sets forth a summary of the fair value of the major assets acquired and liabilities assumed relating to the third quarter 2013 acquisitions in Orlando, FL and Nashville, TN and the second quarter 2013 acquisition in Atlanta, GA discussed in the preceding paragraphs:
 
 
Total
Purchase Price Allocation
Real estate assets
$
445,396

Acquisition-related intangible assets (in deferred financing and leasing costs)
50,595

Mortgages and notes payable
(127,891
)
Acquisition-related below market lease liabilities (in accounts payable, accrued expenses and other liabilities)
(17,818
)
Total allocation
$
350,282


 
The following table sets forth our rental and other revenues and net income, adjusted for interest expense and depreciation and amortization related to purchase price allocations, acquisition costs and equity in earnings of unconsolidated affiliates previously recognized as income assuming the Orlando, FL, Nashville, TN and Atlanta, GA acquisitions discussed in the preceding paragraph had been completed as of January 1, 2012:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Pro forma rental and other revenues
$
152,221

 
$
162,422

 
$
451,317

 
$
410,027

Pro forma net income
$
49,818

 
$
23,952

 
$
90,064

 
$
56,782

Pro forma earnings per share - basic
$
0.54

 
$
0.28

 
$
1.00

 
$
0.68

Pro forma earnings per share - diluted
$
0.54

 
$
0.29

 
$
1.00

 
$
0.69


 
The third quarter 2013 acquisitions in Orlando, FL and Nashville, TN and the second quarter 2013 acquisition in Atlanta, GA resulted in revenues of $10.0 million and $10.3 million and net losses of $0.1 million and $0.4 million recorded in the Consolidated Statements of Income for the three and nine months ended September 30, 2013, respectively.
 
During the third quarter of 2012, we acquired a 492,000 square foot office property in Atlanta, GA for $144.9 million. The following table sets forth a summary of the fair value of the major assets acquired and liabilities assumed in this acquisition:
 
 
Total
Purchase Price Allocation
Real estate assets
$
135,128

Acquisition-related intangible assets (in deferred financing and leasing costs)
21,637

Acquisition-related below market lease liabilities (in accounts payable, accrued expenses and other liabilities)
(11,875
)
Total allocation
$
144,890


 
The following table sets forth our rental and other revenues and net income, adjusted for interest expense and depreciation and amortization related to purchase price allocations, and acquisition costs assuming the 492,000 square foot office building in Atlanta, GA was acquired on January 1, 2011:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2012
 
2012
Pro forma rental and other revenues
$
127,836

 
$
381,070

Pro forma net income
$
35,765

 
$
68,526

Pro forma earnings per share - basic
$
0.43

 
$
0.84

Pro forma earnings per share - diluted
$
0.43

 
$
0.84



2.    Real Estate Assets - Continued

Dispositions

During the third quarter of 2013, we sold:

•
an office property in Tampa, FL for a sale price of $11.6 million and recorded a gain on disposition of discontinued operations of $1.2 million; and

•
sixteen industrial properties and a land parcel in a single transaction in Atlanta, GA for a sale price of $91.6 million (before $0.3 million in closing credits to buyer for unfunded tenant improvements and after $0.3 million in closing credits to buyer for free rent). We recorded gains on disposition of discontinued operations of $36.7 million related to the industrial properties and a gain on disposition of property of less than $0.1 million related to the land parcel.

During the second quarter of 2013, we sold:

•
five industrial properties in Atlanta, GA for a sale price of $4.5 million (after $0.1 million in closing credits to buyer for free rent) and recorded a gain on disposition of discontinued operations of less than $0.1 million;

•
six industrial properties and a land parcel in a single transaction in Atlanta, GA for a sale price of $38.7 million (before $1.8 million in closing credits to buyer for unfunded tenant improvements and after $1.3 million in closing credits to buyer for free rent) and recorded a gain on disposition of discontinued operations of $13.2 million; and

•
two industrial properties in Atlanta, GA for a sale price of $4.8 million and recorded a loss on disposition of discontinued operations of less than $0.1 million.

During the first quarter of 2013, we sold two office properties in Orlando, FL for a sale price of $14.6 million (before $0.8 million in closing credits to buyer for unfunded tenant improvements) and recorded a loss on disposition of discontinued operations of $0.3 million.

In connection with the disposition of an office property in Jackson, MS in the third quarter of 2012, we had the right to receive additional cash consideration of up to $1.5 million upon the satisfaction of a certain post-closing requirement. The post-closing requirement was satisfied and the cash consideration was received during the first quarter of 2013. Accordingly, we recognized $1.5 million in additional gain on disposition of discontinued operations in the first quarter of 2013.

Impairments

During the second quarter of 2013, we recorded impairments of real estate assets of $1.1 million on four properties in a single office park in Winston-Salem, NC. This office park was subsequently classified as discontinued operations in the third quarter of 2013.

During the first quarter of 2013, we recorded impairments of real estate assets of $0.4 million on two industrial properties in Atlanta, GA and recorded impairments of real estate assets held for sale of $0.7 million on five industrial properties in Atlanta, GA. These properties were subsequently sold in the second quarter of 2013 and are classified as discontinued operations.

These impairments were due to a change in the assumed timing of future dispositions and leasing assumptions, which reduced the future expected cash flows from the impaired properties.
Mortgages and Notes Receivable
Mortgages and Notes Receivable
Mortgages and Notes Receivable

The following table sets forth our mortgages and notes receivable:

 
September 30,
2013
 
December 31,
2012
Seller financing (first mortgages)
$
16,454

 
$
15,853

Less allowance
—

 
—

 
16,454

 
15,853

Mortgage receivable
9,207

 
8,648

Less allowance
—

 
—

 
9,207

 
8,648

Promissory notes
970

 
1,153

Less allowance
(340
)
 
(182
)
 
630

 
971

Mortgages and notes receivable, net
$
26,291

 
$
25,472



During 2010, we provided seller financing in conjunction with two disposition transactions. The seller financing is evidenced by first mortgages secured by the assignment of rents and the underlying real estate assets.

During 2012, we provided secured acquisition financing to a third party. We also agreed to loan such third party $8.4 million on a secured basis to fund future infrastructure development. As of September 30, 2013, $0.2 million has been funded to the third party for infrastructure development. We concluded this arrangement to be an interest in a variable interest entity. However, since we do not have the power to direct matters that most significantly impact the activities of the entity, we do not qualify as the primary beneficiary. Accordingly, the entity is not consolidated. Our risk of loss with respect to this arrangement is limited to the carrying value of the mortgage receivable and the future infrastructure development funding commitment.

We evaluate the ability to collect our mortgages and notes receivable by monitoring the leasing statistics and/or market fundamentals of these assets. As of September 30, 2013, our mortgages and notes receivable were not in default and there were no other indicators of impairment.

The following table sets forth our notes receivable allowance, which relates only to promissory notes:

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Beginning notes receivable allowance
$
376

 
$
118

 
$
182

 
$
61

Recoveries/write-offs/other
(36
)
 
93

 
158

 
150

Total notes receivable allowance
$
340

 
$
211

 
$
340

 
$
211

Investments In and Advances To Affiliates
Investments In and Advances To Affiliates
Investments in and Advances to Affiliates

Unconsolidated Affiliates

We have equity interests of up to 50.0% in various joint ventures with unrelated third parties that are accounted for using the equity method of accounting because we have the ability to exercise significant influence over their operating and financial policies.

The following table sets forth combined summarized financial information for the Company's unconsolidated affiliates:

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Income Statements: (1)
 
 
 
 
 
 
 
Rental and other revenues
$
16,911

 
$
25,051

 
$
64,362

 
$
75,920

Expenses:
 
 
 
 
 
 
 
Rental property and other expenses
8,733

 
11,624

 
31,681

 
35,706

Depreciation and amortization
5,010

 
6,355

 
17,383

 
18,839

Impairments of real estate assets
15,287

 
—

 
20,077

 
7,180

Interest expense
3,141

 
4,980

 
12,569

 
16,077

Total expenses
32,171

 
22,959

 
81,710

 
77,802

Income/(loss) before disposition of properties
(15,260
)
 
2,092

 
(17,348
)
 
(1,882
)
Gains on disposition of properties
8,256

 
—

 
8,323

 
6,275

Net income/(loss)
$
(7,004
)
 
$
2,092

 
$
(9,025
)
 
$
4,393

The Company's share of:
 
 
 
 
 
 
 
Depreciation and amortization
$
1,628

 
$
2,028

 
$
5,735

 
$
5,801

Impairments of real estate assets
$
3,487

 
$
—

 
$
4,507

 
$
1,002

Interest expense
$
1,099

 
$
1,775

 
$
4,583

 
$
5,598

Gains on disposition of properties
$
—

 
$
—

 
$
431

 
$
—

Net income/(loss)
$
(3,410
)
 
$
914

 
$
(2,835
)
 
$
1,252

 
 
 
 
 
 
 
 
The Company's share of net income/(loss)
$
(3,410
)
 
$
914

 
$
(2,835
)
 
$
1,252

Adjustments for management and other fees
237

 
410

 
1,011

 
1,418

Equity in earnings/(losses) of unconsolidated affiliates
$
(3,173
)
 
$
1,324

 
$
(1,824
)
 
$
2,670


__________
(1)
For the three and nine months ended September 30, 2013, as a result of acquiring our joint venture partner's 60.0% interest in the third quarter of 2013, we consolidated a joint venture previously accounted for under the equity method of accounting.


4.    Investments in and Advances to Affiliates - Continued

The following table sets forth combined summarized financial information for the Operating Partnership's unconsolidated affiliates:

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Income Statements: (1)
 
 
 
 
 
 
 
Rental and other revenues
$
15,872

 
$
24,062

 
$
61,243

 
$
72,916

Expenses:
 
 
 
 
 
 
 
Rental property and other expenses
8,126

 
11,024

 
29,821

 
33,901

Depreciation and amortization
4,699

 
6,044

 
16,449

 
17,905

Impairments of real estate assets
15,287

 
—

 
20,077

 
7,180

Interest expense
2,976

 
4,817

 
12,086

 
15,583

Total expenses
31,088

 
21,885

 
78,433

 
74,569

Income/(loss) before disposition of properties
(15,216
)
 
2,177

 
(17,190
)
 
(1,653
)
Gains on disposition of properties
8,256

 
—

 
8,323

 
6,275

Net income/(loss)
$
(6,960
)
 
$
2,177

 
$
(8,867
)
 
$
4,622

The Operating Partnership's share of:
 
 
 
 
 
 
 
Depreciation and amortization
$
1,589

 
$
1,989

 
$
5,618

 
$
5,684

Impairments of real estate assets
$
3,487

 
$
—

 
$
4,507

 
$
1,002

Interest expense
$
1,079

 
$
1,754

 
$
4,523

 
$
5,536

Gains on disposition of properties
$
—

 
$
—

 
$
431

 
$
—

Net income/(loss)
$
(3,405
)
 
$
925

 
$
(2,815
)
 
$
1,281

 
 
 
 
 
 
 
 
The Operating Partnership's share of net income/(loss)
$
(3,405
)
 
$
925

 
$
(2,815
)
 
$
1,281

Adjustments for management and other fees
231

 
403

 
940

 
1,398

Equity in earnings/(losses) of unconsolidated affiliates
$
(3,174
)
 
$
1,328

 
$
(1,875
)
 
$
2,679


__________
(1)
For the three and nine months ended September 30, 2013, as a result of acquiring our joint venture partner's 60.0% interest in the third quarter of 2013, we consolidated a joint venture previously accounted for under the equity method of accounting.



4.    Investments in and Advances to Affiliates - Continued

Highwoods DLF 98/29, LLC ("DLF I")

During the second quarter of 2013, DLF I sold an office property to an unrelated third party for a sale price of $5.9 million (after $0.1 million in closing credits to buyer for free rent) and recorded a gain on disposition of discontinued operations of less than $0.1 million. We recorded less than $0.1 million as our share of this gain through equity in earnings of unconsolidated affiliates.

During the third quarter of 2013, DLF I recorded impairment of real estate assets of $15.3 million on an office property in Orlando, FL. We recorded $3.5 million as our share of this impairment charge through equity in earnings of unconsolidated affiliates.
 
During the first quarter of 2013, DLF I recorded impairments of real estate assets of $4.8 million on an office property in Atlanta, GA and an office property in Charlotte, NC.  We recorded $1.0 million as our share of this impairment charge through equity in earnings of unconsolidated affiliates. 
 
These impairments were due to a change in the assumed timing of future dispositions and/or leasing assumptions, which reduced the future expected cash flows from the impaired properties.
 
Highwoods DLF 97/26 DLF 99/32, LP ("DLF II")
 
See Note 2 for a description of our acquisition of two office properties in Atlanta, GA from DLF II during the third quarter of 2013.
 
During the first quarter of 2013, DLF II sold an office property to unrelated third parties for a sale price of $10.1 million (after $0.3 million in closing credits to buyer for free rent) and recorded a gain on disposition of property of less than $0.1 million. As our cost basis is different from the basis reflected at the joint venture level, we recorded $0.4 million of gain through equity in earnings of unconsolidated affiliates.
Intangible Assets and Below Market Lease Liabilities
Intangible Assets and Below Market Lease Liabilities
Intangible Assets and Below Market Lease Liabilities
 
The following table sets forth total intangible assets and acquisition-related below market lease liabilities, net of accumulated amortization:
 
 
September 30,
2013
 
December 31,
2012
Assets:
 
 
 
Deferred financing costs
$
19,506

 
$
21,759

Less accumulated amortization
(8,632
)
 
(7,862
)
 
10,874

 
13,897

Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets)
298,561

 
220,113

Less accumulated amortization
(81,609
)
 
(68,001
)
 
216,952

 
152,112

Deferred financing and leasing costs, net
$
227,826

 
$
166,009

 
 
 
 
Liabilities (in accounts payable, accrued expenses and other liabilities):
 
 
 
Acquisition-related below market lease liabilities
$
55,323

 
$
37,019

Less accumulated amortization
(6,900
)
 
(3,383
)
 
$
48,423

 
$
33,636


5.    Intangible Assets and Below Market Lease Liabilities - Continued

The following table sets forth amortization of intangible assets and acquisition-related below market lease liabilities:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Amortization of deferred financing costs
$
963

 
$
907

 
$
2,860

 
$
2,709

Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization)
$
10,751

 
$
6,667

 
$
26,962

 
$
19,930

Amortization of lease incentives (in rental and other revenues)
$
347

 
$
386

 
$
1,061

 
$
1,037

Amortization of acquisition-related intangible assets (in rental and other revenues)
$
1,548

 
$
433

 
$
2,499

 
$
1,027

Amortization of acquisition-related intangible assets (in rental property and other expenses)
$
140

 
$
46

 
$
416

 
$
46

Amortization of acquisition-related below market lease liabilities (in rental and other revenues)
$
(1,584
)
 
$
(647
)
 
$
(3,737
)
 
$
(1,744
)

The following table sets forth scheduled future amortization of intangible assets and below market lease liabilities:

 
 
Amortization of Deferred Financing Costs
 
Amortization of Deferred Leasing Costs and Acquisition-Related Intangible Assets (in Depreciation and Amortization)
 
Amortization of Lease Incentives (in Rental and Other Revenues)
 
Amortization of Acquisition-Related Intangible Assets (in Rental and Other Revenues)
 
Amortization of Acquisition-Related Intangible Assets (in Rental Property and Other Expenses)
 
Amortization of Acquisition-Related Below Market Lease Liabilities (in Rental and Other Revenues)
October 1 through December 31, 2013
 
$
865

 
$
10,222

 
$
320

 
$
1,240

 
$
138

 
$
(1,567
)
2014
 
3,233

 
38,795

 
1,199

 
4,401

 
553

 
(6,011
)
2015
 
2,599

 
32,028

 
971

 
3,627

 
553

 
(5,728
)
2016
 
1,500

 
26,229

 
794

 
2,815

 
553

 
(5,414
)
2017
 
1,213

 
22,312

 
729

 
2,265

 
553

 
(5,165
)
Thereafter
 
1,464

 
57,402

 
2,553

 
5,058

 
1,642

 
(24,538
)
 
 
$
10,874

 
$
186,988

 
$
6,566

 
$
19,406

 
$
3,992

 
$
(48,423
)
Weighted average remaining amortization periods as of September 30, 2013 (in years)
 
5.1

 
6.7

 
7.9

 
6.7

 
7.2

 
9.3



The following table sets forth the intangible assets acquired and below market lease liabilities assumed as a result of 2013 acquisition activity:

 
 
Acquisition-Related Intangible Assets (amortized in Rental and Other Revenues)
 
Acquisition-Related Intangible Assets (amortized in Depreciation and Amortization)
 
Acquisition-Related Below Market Lease Liabilities (amortized in Rental and Other Revenues)
Amount recorded from acquisition activity
 
$
17,201

 
$
58,422

 
$
(19,124
)
Weighted average remaining amortization periods as of September 30, 2013 (in years)
 
6.5

 
6.5

 
8.9



Mortgages and Notes Payable
Mortgages and Notes Payable
Mortgages and Notes Payable

The following table sets forth our mortgages and notes payable:

 
September 30,
2013
 
December 31,
2012
Secured indebtedness
$
591,821

 
$
549,607

Unsecured indebtedness
1,458,240

 
1,309,555

Total mortgages and notes payable
$
2,050,061

 
$
1,859,162



At September 30, 2013, our secured mortgage loans were collateralized by real estate assets with an aggregate undepreciated book value of $971.2 million.

Our $475.0 million unsecured revolving credit facility is scheduled to mature in July 2015 and includes an accordion feature that allows for an additional $75.0 million of borrowing capacity subject to additional lender commitments. Assuming no defaults have occurred, we have an option to extend the maturity for an additional year. There was $206.4 million and $284.4 million outstanding under our revolving credit facility at September 30, 2013 and October 21, 2013, respectively. At both September 30, 2013 and October 21, 2013, we had $0.1 million of outstanding letters of credit, which reduces the availability on our revolving credit facility. As a result, the unused capacity of our revolving credit facility at September 30, 2013 and October 21, 2013 was $268.5 million and $190.5 million, respectively.

During the third quarter of 2013, we prepaid without penalty the remaining $114.7 million balance on two secured mortgage loans bearing interest at a weighted average rate of 5.75% that were originally scheduled to mature in December 2013. We recorded less than $0.1 million of loss on debt extinguishment related to this repayment.

During the first quarter of 2013, we prepaid the remaining $35.0 million balance on a $200.0 million bank term loan that was originally scheduled to mature in February 2016. We recorded $0.2 million of loss on debt extinguishment related to this repayment.

We are currently in compliance with the debt covenants and other requirements with respect to our debt.
Derivative Financial Instruments
Derivative Financial Instruments
Derivative Financial Instruments
 
Our interest rate swaps have been designated as and are being accounted for as cash flow hedges with changes in fair value recorded in other comprehensive income each reporting period. No gain or loss was recognized related to hedge ineffectiveness or to amounts excluded from effectiveness testing on our cash flow hedges during the nine months ended September 30, 2013. We have no collateral requirements related to our interest rate swaps.
 
Amounts reported in accumulated other comprehensive loss ("AOCL") related to derivatives will be reclassified to interest expense as interest payments are made on our variable-rate debt. During the period from October 1, 2013 through September 30, 2014, we estimate that $3.3 million will be reclassified to interest expense.
 
For the periods ended September 30, 2013 and December 31, 2012, all of our derivatives were in a liability position. The following table sets forth the fair value of our derivatives:
 
 
September 30,
2013
 
December 31,
2012
Derivatives:
 
 
 
Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities:
 
 
 
Interest rate swaps
$
2,047

 
$
9,369



7.
Derivative Financial Instruments - Continued

The following table sets forth the effect of our cash flow hedges on AOCL and interest expense:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Derivatives Designated as Cash Flow Hedges:
 
 
 
 
 
 
 
Amount of unrealized gains/(losses) recognized in AOCL on derivatives (effective portion):
 
 
 
 
 
 
 
Interest rate swaps
$
(1,798
)
 
$
(3,337
)
 
$
4,801

 
$
(10,424
)
Amount of losses reclassified out of AOCL into contractual interest expense (effective portion):
 
 
 
 
 
 
 
Interest rate swaps
$
840

 
$
791

 
$
2,428

 
$
2,250

Noncontrolling Interests
Noncontrolling Interests
Noncontrolling Interests

Noncontrolling Interests in Consolidated Affiliates
 
At September 30, 2013, our 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.

Noncontrolling Interests in the Operating Partnership

The following table sets forth the Company's noncontrolling interests in the Operating Partnership:
 
 
Nine Months Ended September 30,
 
2013
 
2012
Beginning noncontrolling interests in the Operating Partnership
$
124,869

 
$
110,655

Adjustment of noncontrolling interests in the Operating Partnership to fair value
8,570

 
12,485

Issuances of Common Units
—

 
2,299

Conversions of Common Units to Common Stock
(28,788
)
 
(731
)
Net income attributable to noncontrolling interests in the Operating Partnership
3,713

 
3,166

Distributions to noncontrolling interests in the Operating Partnership
(4,416
)
 
(4,733
)
Total noncontrolling interests in the Operating Partnership
$
103,948

 
$
123,141


The following table sets forth net income available for common stockholders and transfers from the Company's noncontrolling interests in the Operating Partnership:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Net income available for common stockholders
$
53,349

 
$
33,357

 
$
93,220

 
$
63,013

Increase in additional paid in capital from conversions of Common Units
to Common Stock
25,937

 
100

 
28,788

 
731

Issuances of Common Units
—

 
(2,299
)
 
—

 
(2,299
)
Change from net income available for common stockholders and transfers from noncontrolling interests
$
79,286

 
$
31,158

 
$
122,008

 
$
61,445



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

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

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

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

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

Our Level 2 asset is the fair value of certain of our mortgages and notes receivable, which was estimated by the income approach utilizing contractual cash flows and market-based interest rates to approximate the price that would be paid in an orderly transaction between market participants.
 
Our Level 2 liabilities include (1) the fair value of our mortgages and notes payable, which was estimated by the income approach utilizing contractual cash flows and market-based interest rates to approximate the price that would be paid in an orderly transaction between market participants and (2) interest rate swaps whose fair value is determined using the market standard methodology of netting the discounted future fixed cash receipts and the discounted expected variable cash payments. The variable cash payments of our interest rate swaps are based on the expectation of future LIBOR interest rates (forward curves) derived from observed market LIBOR interest rate curves. In addition, credit valuation adjustments are incorporated in the fair values to account for potential nonperformance risk, but were concluded to not be significant inputs to the calculation for the periods presented.
 
Level 3. Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
 
Our Level 3 assets include (1) certain of our mortgages and notes receivable, which were estimated by the income approach utilizing internal cash flow projections and market interest rates to estimate the price that would be paid in an orderly transaction between market participants, (2) our tax increment financing bond, which is not routinely traded but whose fair value is determined by the income approach utilizing contractual cash flows and market-based interest rates to estimate the projected redemption value based on quoted bid/ask prices for similar unrated municipal bonds, and (3) any real estate assets recorded at fair value on a non-recurring basis as a result of our quarterly impairment analysis, which were valued using the terms of definitive sales contracts or the sales comparison approach and substantiated with internal cash flow projections.
 
Our Level 3 liabilities include the fair value of our contingent consideration to acquire real estate assets and financing obligations, which were estimated by the income approach to approximate the price that would be paid in an orderly transaction between market participants, utilizing: (1) contractual cash flows; (2) market-based interest rates; and (3) a number of other assumptions including demand for space, competition for customers, changes in market rental rates, costs of operation and expected ownership periods.
 

9.
Disclosure About Fair Value of Financial Instruments - Continued

The following table sets forth our assets and liabilities and the Company's noncontrolling interests in the Operating Partnership that are measured at fair value within the fair value hierarchy.
 
 
 
 
Level 1
 
Level 2
 
Level 3
 
 
Total
 
Quoted Prices
in Active
Markets for Identical Assets or Liabilities
 
Significant Observable Inputs
 
Significant Unobservable Inputs
Fair Value at September 30, 2013:
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
Mortgages and notes receivable, at fair value (1)
 
$
26,409

 
$
—

 
$
17,169

 
$
9,240

Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
 
3,753

 
3,753

 
—

 
—

Tax increment financing bond (in prepaid expenses and other assets)
 
14,330

 
—

 
—

 
14,330

Total Assets
 
$
44,492

 
$
3,753

 
$
17,169

 
$
23,570

Noncontrolling Interests in the Operating Partnership
 
$
103,948

 
$
103,948

 
$
—

 
$
—

Liabilities:
 
 
 
 
 
 
 
 
Mortgages and notes payable, at fair value (1)
 
$
2,136,107

 
$
—

 
$
2,136,107

 
$
—

Interest rate swaps (in accounts payable, accrued expenses and other liabilities)
 
2,047

 
—

 
2,047

 
—

Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
 
3,753

 
3,753

 
—

 
—

Contingent consideration to acquire real estate assets (in accounts payable, accrued expenses and other liabilities)
 
191

 
—

 
—

 
191

Financing obligations, at fair value (1)
 
24,211

 
—

 
—

 
24,211

Total Liabilities
 
$
2,166,309

 
$
3,753

 
$
2,138,154

 
$
24,402

Fair Value at December 31, 2012:
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
Mortgages and notes receivable, at fair value (1)
 
$
24,725

 
$
—

 
$
16,077

 
$
8,648

Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
 
3,354

 
3,354

 
—

 
—

Tax increment financing bond (in prepaid expenses and other assets)
 
14,496

 
—

 
—

 
14,496

Total Assets
 
$
42,575

 
$
3,354

 
$
16,077

 
$
23,144

Noncontrolling Interests in the Operating Partnership
 
$
124,869

 
$
124,869

 
$
—

 
$
—

Liabilities:
 
 
 
 
 
 
 
 
Mortgages and notes payable, at fair value (1)
 
$
1,987,364

 
$
—

 
$
1,987,364

 
$
—

Interest rate swaps (in accounts payable, accrued expenses and other liabilities)
 
9,369

 
—

 
9,369

 
—

Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
 
3,354

 
3,354

 
—

 
—

Contingent consideration to acquire real estate assets (in accounts payable, accrued expenses and other liabilities)
 
563

 
—

 
—

 
563

Financing obligations, at fair value (1)
 
23,252

 
—

 
—

 
23,252

Total Liabilities
 
$
2,023,902

 
$
3,354

 
$
1,996,733

 
$
23,815


__________
(1)    Amounts recorded at historical cost on our Consolidated Balance Sheets at September 30, 2013 and December 31, 2012.
9.
Disclosure About Fair Value of Financial Instruments - Continued

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

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Asset:
 
 
 
 
 
 
 
Tax Increment Financing Bond:
 
 
 
 
 
 
 
Beginning balance
$
14,233

 
$
15,371

 
$
14,496

 
$
14,788

Principal repayment
—

 
—

 
(562
)
 
—

Unrealized gains/(losses) (in AOCL)
97

 
(101
)
 
396

 
482

Ending balance
$
14,330

 
$
15,270

 
$
14,330

 
$
15,270

Liability:
 
 
 
 
 
 
 
Contingent Consideration to Acquire Real Estate Assets:
 
 
 
 
 
 
 
Beginning balance
$
384

 
$
677

 
$
563

 
$
677

Unrealized gains (in general and administrative expenses)
(193
)
 
(114
)
 
(372
)
 
(114
)
Ending balance
$
191

 
$
563

 
$
191

 
$
563



During 2007, we acquired a tax increment financing bond associated with a parking garage developed by us. This bond amortizes to maturity in 2020. The estimated fair value at September 30, 2013 was $1.5 million below the outstanding principal due on the bond. If the discount rate used to fair value this bond was 100 basis points higher or lower, the fair value of the bond would have been $0.4 million lower or $0.5 million higher, respectively, as of September 30, 2013. We intend to hold this bond and have concluded that we will not be required to sell this bond before recovery of the bond principal. Payment of the principal and interest for the bond is guaranteed by us. We have recorded no credit losses related to the bond during the three and nine months ended September 30, 2013 and 2012. There is no legal right of offset with the liability, which we report as a financing obligation, related to this tax increment financing bond.
 
The following table sets forth quantitative information about the unobservable inputs of our Level 3 asset and liability, which are recorded at fair value on our Consolidated Balance Sheets:
 
 
Fair Value at
September 30, 2013
 
Valuation
Technique
 
Unobservable
Input
 
Rate/ Percentage
Asset:
 
 
 
 
 
 
 
Tax increment financing bond
$
14,330

 
Income approach
 
Discount rate
 
10.8%
Liability:
 
 
 
 
 
 
 
Contingent consideration to acquire real estate assets
$
191

 
Income approach
 
Payout percentage
 
25.0%
Share-Based Payments
Share-Based Payments
Share-Based Payments
 
During the nine months ended September 30, 2013, the Company granted 168,700 stock options with an exercise price equal to the closing market price of a share of Common Stock on the date of grant. The fair value of each option is estimated on the date of grant using the Black-Scholes option pricing model, which resulted in a weighted average grant date fair value per share of $6.50. During the nine months ended September 30, 2013, the Company also granted 86,144 shares of time-based restricted stock and 65,486 shares of total return-based restricted stock with weighted average grant date fair values per share of $36.64 and $31.73, respectively. We recorded stock-based compensation expense of $1.2 million and $2.0 million during the three months ended September 30, 2013 and 2012, respectively, and $5.9 million and $6.5 million during the nine months ended September 30, 2013 and 2012, respectively. At September 30, 2013, there was $5.0 million of total unrecognized stock-based compensation costs, which will be recognized over a weighted average remaining contractual term of 2.4 years.
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss
 
The following table sets forth the components of AOCL:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Tax increment financing bond:
 
 
 
 
 
 
 
Beginning balance
$
(1,599
)
 
$
(1,726
)
 
$
(1,898
)
 
$
(2,309
)
Unrealized gains/(losses) on tax increment financing bond
97

 
(101
)
 
396

 
482

Ending balance
(1,502
)
 
(1,827
)
 
(1,502
)
 
(1,827
)
Cash flow hedges:
 
 
 
 
 
 
 
Beginning balance
(2,543
)
 
(9,053
)
 
(10,730
)
 
(3,425
)
Unrealized gains/(losses) on cash flow hedges
(1,798
)
 
(3,337
)
 
4,801

 
(10,424
)
Amortization of cash flow hedges (1)
840

 
791

 
2,428

 
2,250

Ending balance
(3,501
)
 
(11,599
)
 
(3,501
)
 
(11,599
)
Total accumulated other comprehensive loss
$
(5,003
)

$
(13,426
)
 
$
(5,003
)
 
$
(13,426
)
__________
(1)    Amounts reclassified out of AOCL into contractual interest expense.
Discontinued Operations
Discontinued Operations
Discontinued Operations

The following table sets forth our operations classified as discontinued operations:

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Rental and other revenues
$
2,810

 
$
5,671

 
$
10,398

 
$
24,211

Operating expenses:
 
 
 
 
 
 
 
Rental property and other expenses
1,049

 
1,622

 
3,389

 
7,796

Depreciation and amortization
665

 
1,610

 
3,166

 
7,108

Total operating expenses
1,714

 
3,232

 
6,555

 
14,904

Interest expense
—

 
35

 
—

 
283

Income from discontinued operations
1,096

 
2,404

 
3,843

 
9,024

Impairments of real estate assets
—

 
—

 
(2,194
)
 
—

Net gains on disposition of discontinued operations
37,946

 
22,936

 
52,353

 
29,455

Total discontinued operations
$
39,042

 
$
25,340

 
$
54,002

 
$
38,479


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

 
September 30,
2013
 
December 31,
2012
Assets:
 
 
 
Land
$
1,948

 
$
28,598

Buildings and tenant improvements
18,498

 
132,361

Land held for development
—

 
2,368

Less-accumulated depreciation
(5,931
)
 
(43,730
)
Net real estate assets
14,515

 
119,597

Accrued straight-line rents receivable, net
1,187

 
5,759

Deferred leasing costs, net
614

 
4,014

Prepaid expenses and other assets
—

 
30

Real estate and other assets, net, held for sale
$
16,316

 
$
129,400



As of September 30, 2013, real estate and other assets, net, held for sale consisted of an office property in Atlanta, GA and four office properties in Winston-Salem, NC. As of December 31, 2012, real estate and other assets, net, held for sale consisted of an office property and 29 industrial properties in Atlanta, GA, two office properties in Orlando, FL, an office property in Tampa, FL and four office properties in Winston-Salem, NC. All of these properties are classified as discontinued operations during the three and nine months ended September 30, 2013 and 2012, respectively.
Earnings Per Share/Unit
Earnings Per Share/Unit
Earnings Per Share and Per Unit

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

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Earnings per Common Share - basic:
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
17,026

 
$
10,456

 
$
45,405

 
$
30,147

Net (income) attributable to noncontrolling interests in the Operating Partnership from continuing operations
(503
)
 
(459
)
 
(1,684
)
 
(1,335
)
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(203
)
 
(159
)
 
(593
)
 
(566
)
Dividends on Preferred Stock
(627
)
 
(627
)
 
(1,881
)
 
(1,881
)
Income from continuing operations available for common stockholders
15,693

 
9,211

 
41,247

 
26,365

Income from discontinued operations
39,042

 
25,340

 
54,002

 
38,479

Net (income) attributable to noncontrolling interests in the Operating Partnership from discontinued operations
(1,386
)
 
(1,194
)
 
(2,029
)
 
(1,831
)
Income from discontinued operations available for common stockholders
37,656

 
24,146

 
51,973

 
36,648

Net income available for common stockholders
$
53,349

 
$
33,357

 
$
93,220

 
$
63,013

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per Common Share – weighted average shares (1) (2)
87,467

 
76,590

 
83,793

 
74,703

Earnings per Common Share - basic:
 
 
 
 
 
 
 
Income from continuing operations available for common stockholders
$
0.18

 
$
0.12

 
$
0.49

 
$
0.35

Income from discontinued operations available for common stockholders
0.43

 
0.32

 
0.62

 
0.49

Net income available for common stockholders
$
0.61

 
$
0.44

 
$
1.11

 
$
0.84

Earnings per Common Share - diluted:
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
17,026

 
$
10,456

 
$
45,405

 
$
30,147

Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(203
)
 
(159
)
 
(593
)
 
(566
)
Dividends on Preferred Stock
(627
)
 
(627
)
 
(1,881
)
 
(1,881
)
Income from continuing operations available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
16,196

 
9,670

 
42,931

 
27,700

Income from discontinued operations available for common stockholders
39,042

 
25,340

 
54,002

 
38,479

Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
$
55,238

 
$
35,010

 
$
96,933

 
$
66,179

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per Common Share –weighted average shares (1) (2)
87,467

 
76,590

 
83,793

 
74,703

Add:
 
 
 
 
 
 
 
Stock options using the treasury method
101

 
137

 
114

 
127

Noncontrolling interests Common Units
3,201

 
3,768

 
3,536

 
3,738

Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions (1)
90,769

 
80,495

 
87,443

 
78,568

Earnings per Common Share - diluted:
 
 
 
 
 
 
 
Income from continuing operations available for common stockholders
$
0.18

 
$
0.12

 
$
0.49

 
$
0.35

Income from discontinued operations available for common stockholders
0.43

 
0.31

 
0.62

 
0.49

Net income available for common stockholders
$
0.61

 
$
0.43

 
$
1.11

 
$
0.84

__________

13.
Earnings Per Share and Per Unit - Continued
(1)
There were 0.3 million and 0.5 million options outstanding during the three months ended September 30, 2013 and 2012, respectively, and 0.3 million and 0.5 million options outstanding during the nine months ended September 30, 2013 and 2012, respectively, that were not included in the computation of diluted earnings per share because the impact of including such options would be anti-dilutive.
(2)
Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable.

The following table sets forth the computation of basic and diluted earnings per unit of the Operating Partnership:

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Earnings per Common Unit - basic:
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
17,025

 
$
10,460

 
$
45,354

 
$
30,156

Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(203
)
 
(159
)
 
(593
)
 
(566
)
Distributions on Preferred Units
(627
)
 
(627
)
 
(1,881
)
 
(1,881
)
Income from continuing operations available for common unitholders
16,195

 
9,674

 
42,880

 
27,709

Income from discontinued operations available for common unitholders
39,042

 
25,340

 
54,002

 
38,479

Net income available for common unitholders
$
55,237

 
$
35,014

 
$
96,882

 
$
66,188

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per Common Unit – weighted average units (1) (2)
90,259

 
79,949

 
86,920

 
78,032

Earnings per Common Unit - basic:
 
 
 
 
 
 
 
Income from continuing operations available for common unitholders
$
0.18

 
$
0.12

 
$
0.49

 
$
0.36

Income from discontinued operations available for common unitholders
0.43

 
0.32

 
0.62

 
0.49

Net income available for common unitholders
$
0.61

 
$
0.44

 
$
1.11

 
$
0.85

Earnings per Common Unit - diluted:
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
17,025

 
$
10,460

 
$
45,354

 
$
30,156

Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(203
)
 
(159
)
 
(593
)
 
(566
)
Distributions on Preferred Units
(627
)
 
(627
)
 
(1,881
)
 
(1,881
)
Income from continuing operations available for common unitholders
16,195

 
9,674

 
42,880

 
27,709

Income from discontinued operations available for common unitholders
39,042

 
25,340

 
54,002

 
38,479

Net income available for common unitholders
$
55,237

 
$
35,014

 
$
96,882

 
$
66,188

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per Common Unit –weighted average units (1) (2)
90,259

 
79,949

 
86,920

 
78,032

Add:
 
 
 
 
 
 
 
Stock options using the treasury method
101

 
137

 
114

 
127

Denominator for diluted earnings per Common Unit – adjusted weighted average units and assumed conversions (1)
90,360

 
80,086

 
87,034

 
78,159

Earnings per Common Unit - diluted:
 
 
 
 
 
 
 
Income from continuing operations available for common unitholders
$
0.18

 
$
0.12

 
$
0.49

 
$
0.36

Income from discontinued operations available for common unitholders
0.43

 
0.32

 
0.62

 
0.49

Net income available for common unitholders
$
0.61

 
$
0.44

 
$
1.11

 
$
0.85

__________
(1)
There were 0.3 million and 0.5 million options outstanding during the three months ended September 30, 2013 and 2012, respectively, and 0.3 million and 0.5 million options outstanding during the nine months ended September 30, 2013 and 2012, respectively, that were not included in the computation of diluted earnings per unit because the impact of including such options would be anti-dilutive.
(2)
Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable.
Segment Information
Segment Information
Segment Information

The following tables summarize the rental and other revenues and net operating income, the primary industry property-level performance metric which is defined as rental and other revenues less rental property and other expenses, for each of our reportable segments:

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Rental and Other Revenues: (1)
 
 
 
 
 
 
 
Office:
 
 
 
 
 
 
 
Atlanta, GA
$
22,523

 
$
13,704

 
$
57,630

 
$
43,220

Greenville, SC
2,699

 
3,296

 
9,056

 
10,286

Kansas City, MO
4,064

 
4,014

 
12,067

 
11,173

Memphis, TN
9,644

 
9,103

 
28,680

 
27,603

Nashville, TN
15,147

 
14,285

 
43,411

 
42,456

Orlando, FL
8,441

 
2,217

 
12,894

 
6,594

Piedmont Triad, NC
6,792

 
5,176

 
19,932

 
14,532

Pittsburgh, PA
14,191

 
9,482

 
41,835

 
27,671

Raleigh, NC
21,737

 
20,578

 
64,124

 
60,737

Richmond, VA
12,006

 
11,848

 
35,639

 
35,442

Tampa, FL
17,278

 
17,199

 
52,840

 
51,140

Total Office Segment
134,522

 
110,902

 
378,108

 
330,854

Industrial:
 
 
 
 
 
 
 
Atlanta, GA
210

 
189

 
624

 
610

Piedmont Triad, NC
2,998

 
3,141

 
9,238

 
9,389

Total Industrial Segment
3,208

 
3,330

 
9,862

 
9,999

Retail:
 
 
 
 
 
 
 
Kansas City, MO
9,564

 
9,186

 
27,991

 
27,176

Total Retail Segment
9,564

 
9,186

 
27,991

 
27,176

Total Rental and Other Revenues
$
147,294

 
$
123,418

 
$
415,961

 
$
368,029


14.
Segment Information - Continued

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Net Operating Income: (1)
 
 
 
 
 
 
 
Office:
 
 
 
 
 
 
 
Atlanta, GA
$
13,868

 
$
8,408

 
$
35,936

 
$
27,346

Greenville, SC
1,301

 
1,806

 
4,869

 
5,986

Kansas City, MO
2,597

 
2,546

 
7,796

 
7,060

Memphis, TN
5,408

 
5,378

 
16,337

 
16,226

Nashville, TN
10,311

 
9,772

 
30,028

 
29,247

Orlando, FL
4,950

 
947

 
7,099

 
3,066

Piedmont Triad, NC
4,373

 
3,095

 
12,823

 
9,103

Pittsburgh, PA
8,001

 
4,949

 
23,322

 
13,851

Raleigh, NC
14,920

 
13,939

 
45,226

 
42,267

Richmond, VA
7,910

 
7,863

 
24,267

 
24,270

Tampa, FL
10,165

 
10,818

 
32,287

 
32,028

Total Office Segment
83,804

 
69,521

 
239,990

 
210,450

Industrial:
 
 
 
 
 
 
 
Atlanta, GA
122

 
100

 
361

 
347

Piedmont Triad, NC
2,187

 
2,256

 
6,797

 
6,848

Total Industrial Segment
2,309

 
2,356

 
7,158

 
7,195

Retail:
 
 
 
 
 
 
 
Kansas City, MO
5,837

 
5,676

 
17,066

 
16,525

Total Retail Segment
5,837

 
5,676

 
17,066

 
16,525

Residential:
 
 
 
 
 
 
 
Raleigh, NC
—

 
(33
)
 
—

 
(178
)
Total Residential Segment
—


(33
)
 
—

 
(178
)
Corporate and other
(21
)
 
(6
)
 
(55
)
 
(65
)
Total Net Operating Income
91,929

 
77,514

 
264,159

 
233,927

Reconciliation to income from continuing operations before disposition of property and condominiums and acquisition of controlling interest in and equity in earnings/(losses) of unconsolidated affiliates:
 
 
 
 
 
 
 
Depreciation and amortization
(48,124
)
 
(37,041
)
 
(130,390
)
 
(110,656
)
General and administrative expenses
(8,969
)
 
(9,725
)
 
(27,948
)
 
(28,298
)
Interest expense
(23,672
)
 
(23,612
)
 
(70,826
)
 
(72,661
)
Other income
1,550

 
1,916

 
4,786

 
4,910

Income from continuing operations before disposition of property and condominiums and acquisition of controlling interest in and equity in earnings/(losses) of unconsolidated affiliates
$
12,714

 
$
9,052

 
$
39,781

 
$
27,222

__________
(1)
Net of discontinued operations.
Subsequent Events
Subsequent Events
Subsequent Events

Effective October 1, 2013, the Company contributed its 12.5% interest in the 4600 Madison Associates, LP joint venture to the Operating Partnership.

On October 1, 2013, our consolidated Highwoods-Markel Associates, LLC joint venture prepaid without penalty the remaining $32.3 million balance on four secured mortgage loans bearing interest at a weighted average rate of 5.79% that were originally scheduled to mature in January 2014.

On October 2, 2013, we sold an office property in Atlanta, GA for a sale price of $13.8 million and expect to record a gain on disposition of discontinued operations of $3.0 million.

On October 3, 2013, we prepaid without penalty a secured mortgage loan with a fair market value of $67.5 million bearing an effective interest rate of 5.12% that was originally scheduled to mature in January 2014.

On October 24, 2013, we sold four office properties in Winston-Salem, NC for a sale price of $6.2 million and expect to record a gain on disposition of discontinued operations of $0.1 million.

On October 28, 2013, we sold an office property in Winston-Salem, NC for a sale price of $5.3 million and expect to record a gain on disposition of discontinued operations of $2.5 million.
Description of Business and Significant Accounting Policies (Policies)
Basis of Accounting, Policy [Policy Text Block] 
Our Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Our Consolidated Balance Sheets at December 31, 2012 were retrospectively revised from previously reported amounts to reflect in real estate and other assets, net, held for sale those properties classified as held for sale during the three months ended September 30, 2013. Our Consolidated Statements of Income for the three and nine months ended September 30, 2012 were retrospectively revised from previously reported amounts to reflect in discontinued operations the operations for those properties classified as discontinued operations.

The Company's Consolidated Financial Statements include the Operating Partnership, wholly owned subsidiaries and those entities in which the Company has the controlling interest. The Operating Partnership's Consolidated Financial Statements include wholly owned subsidiaries and those entities in which the Operating Partnership has the controlling interest. All intercompany transactions and accounts have been eliminated. At September 30, 2013 and December 31, 2012, we had involvement with, but are not the primary beneficiary in, an entity that we concluded to be a variable interest entity (see Note 3).

Use of Estimates, Policy [Policy Text Block] 
Use of Estimates
 
The preparation of consolidated financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Actual results could differ from those estimates.
Real Estate Assets Real Estate Assets (Tables)
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Pro Forma 2013 Acquisitions [Member]
 
 
Significant Acquisitions and Disposals [Line Items]
 
 
Schedule of business acquisitions, purchase price allocation, table
Text Block 
 
Schedule of business acquisitions, pro forma, table
Text Block 
 
Pro Forma 2012 Acquisitions [Member]
 
 
Significant Acquisitions and Disposals [Line Items]
 
 
Schedule of business acquisitions, purchase price allocation, table
 
Text Block 
Schedule of business acquisitions, pro forma, table
Text Block 
 
Schedule of business acquisitions, purchase price allocation, table 
The following table sets forth a summary of the fair value of the major assets acquired and liabilities assumed relating to the third quarter 2013 acquisitions in Orlando, FL and Nashville, TN and the second quarter 2013 acquisition in Atlanta, GA discussed in the preceding paragraphs:
 
 
Total
Purchase Price Allocation
Real estate assets
$
445,396

Acquisition-related intangible assets (in deferred financing and leasing costs)
50,595

Mortgages and notes payable
(127,891
)
Acquisition-related below market lease liabilities (in accounts payable, accrued expenses and other liabilities)
(17,818
)
Total allocation
$
350,282

Schedule of business acquisitions, pro forma, table 
The following table sets forth our rental and other revenues and net income, adjusted for interest expense and depreciation and amortization related to purchase price allocations, acquisition costs and equity in earnings of unconsolidated affiliates previously recognized as income assuming the Orlando, FL, Nashville, TN and Atlanta, GA acquisitions discussed in the preceding paragraph had been completed as of January 1, 2012:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Pro forma rental and other revenues
$
152,221

 
$
162,422

 
$
451,317

 
$
410,027

Pro forma net income
$
49,818

 
$
23,952

 
$
90,064

 
$
56,782

Pro forma earnings per share - basic
$
0.54

 
$
0.28

 
$
1.00

 
$
0.68

Pro forma earnings per share - diluted
$
0.54

 
$
0.29

 
$
1.00

 
$
0.69

Schedule of business acquisitions, purchase price allocation, table 
During the third quarter of 2012, we acquired a 492,000 square foot office property in Atlanta, GA for $144.9 million. The following table sets forth a summary of the fair value of the major assets acquired and liabilities assumed in this acquisition:
 
 
Total
Purchase Price Allocation
Real estate assets
$
135,128

Acquisition-related intangible assets (in deferred financing and leasing costs)
21,637

Acquisition-related below market lease liabilities (in accounts payable, accrued expenses and other liabilities)
(11,875
)
Total allocation
$
144,890

Schedule of business acquisitions, pro forma, table 
The following table sets forth our rental and other revenues and net income, adjusted for interest expense and depreciation and amortization related to purchase price allocations, and acquisition costs assuming the 492,000 square foot office building in Atlanta, GA was acquired on January 1, 2011:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2012
 
2012
Pro forma rental and other revenues
$
127,836

 
$
381,070

Pro forma net income
$
35,765

 
$
68,526

Pro forma earnings per share - basic
$
0.43

 
$
0.84

Pro forma earnings per share - diluted
$
0.43

 
$
0.84

Mortgages and Notes Receivable (Tables)
Schedule of Mortgages and Notes Receivable [Table Text Block] 
The following table sets forth our mortgages and notes receivable:

 
September 30,
2013
 
December 31,
2012
Seller financing (first mortgages)
$
16,454

 
$
15,853

Less allowance
—

 
—

 
16,454

 
15,853

Mortgage receivable
9,207

 
8,648

Less allowance
—

 
—

 
9,207

 
8,648

Promissory notes
970

 
1,153

Less allowance
(340
)
 
(182
)
 
630

 
971

Mortgages and notes receivable, net
$
26,291

 
$
25,472

Schedule of Notes Receivable Allowance [Table Text Block] 
The following table sets forth our notes receivable allowance, which relates only to promissory notes:

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Beginning notes receivable allowance
$
376

 
$
118

 
$
182

 
$
61

Recoveries/write-offs/other
(36
)
 
93

 
158

 
150

Total notes receivable allowance
$
340

 
$
211

 
$
340

 
$
211

Investments In and Advances To Affiliates (Tables)
Schedule of Equity Method Investments Summarized Income Statement Information [Table Text Block] 
The following table sets forth combined summarized financial information for the Company's unconsolidated affiliates:

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Income Statements: (1)
 
 
 
 
 
 
 
Rental and other revenues
$
16,911

 
$
25,051

 
$
64,362

 
$
75,920

Expenses:
 
 
 
 
 
 
 
Rental property and other expenses
8,733

 
11,624

 
31,681

 
35,706

Depreciation and amortization
5,010

 
6,355

 
17,383

 
18,839

Impairments of real estate assets
15,287

 
—

 
20,077

 
7,180

Interest expense
3,141

 
4,980

 
12,569

 
16,077

Total expenses
32,171

 
22,959

 
81,710

 
77,802

Income/(loss) before disposition of properties
(15,260
)
 
2,092

 
(17,348
)
 
(1,882
)
Gains on disposition of properties
8,256

 
—

 
8,323

 
6,275

Net income/(loss)
$
(7,004
)
 
$
2,092

 
$
(9,025
)
 
$
4,393

The Company's share of:
 
 
 
 
 
 
 
Depreciation and amortization
$
1,628

 
$
2,028

 
$
5,735

 
$
5,801

Impairments of real estate assets
$
3,487

 
$
—

 
$
4,507

 
$
1,002

Interest expense
$
1,099

 
$
1,775

 
$
4,583

 
$
5,598

Gains on disposition of properties
$
—

 
$
—

 
$
431

 
$
—

Net income/(loss)
$
(3,410
)
 
$
914

 
$
(2,835
)
 
$
1,252

 
 
 
 
 
 
 
 
The Company's share of net income/(loss)
$
(3,410
)
 
$
914

 
$
(2,835
)
 
$
1,252

Adjustments for management and other fees
237

 
410

 
1,011

 
1,418

Equity in earnings/(losses) of unconsolidated affiliates
$
(3,173
)
 
$
1,324

 
$
(1,824
)
 
$
2,670


__________
(1)
For the three and nine months ended September 30, 2013, as a result of acquiring our joint venture partner's 60.0% interest in the third quarter of 2013, we consolidated a joint venture previously accounted for under the equity method of accounting.
Schedule of Equity Method Investments Summarized Income Statement Information [Table Text Block] 
The following table sets forth combined summarized financial information for the Operating Partnership's unconsolidated affiliates:

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Income Statements: (1)
 
 
 
 
 
 
 
Rental and other revenues
$
15,872

 
$
24,062

 
$
61,243

 
$
72,916

Expenses:
 
 
 
 
 
 
 
Rental property and other expenses
8,126

 
11,024

 
29,821

 
33,901

Depreciation and amortization
4,699

 
6,044

 
16,449

 
17,905

Impairments of real estate assets
15,287

 
—

 
20,077

 
7,180

Interest expense
2,976

 
4,817

 
12,086

 
15,583

Total expenses
31,088

 
21,885

 
78,433

 
74,569

Income/(loss) before disposition of properties
(15,216
)
 
2,177

 
(17,190
)
 
(1,653
)
Gains on disposition of properties
8,256

 
—

 
8,323

 
6,275

Net income/(loss)
$
(6,960
)
 
$
2,177

 
$
(8,867
)
 
$
4,622

The Operating Partnership's share of:
 
 
 
 
 
 
 
Depreciation and amortization
$
1,589

 
$
1,989

 
$
5,618

 
$
5,684

Impairments of real estate assets
$
3,487

 
$
—

 
$
4,507

 
$
1,002

Interest expense
$
1,079

 
$
1,754

 
$
4,523

 
$
5,536

Gains on disposition of properties
$
—

 
$
—

 
$
431

 
$
—

Net income/(loss)
$
(3,405
)
 
$
925

 
$
(2,815
)
 
$
1,281

 
 
 
 
 
 
 
 
The Operating Partnership's share of net income/(loss)
$
(3,405
)
 
$
925

 
$
(2,815
)
 
$
1,281

Adjustments for management and other fees
231

 
403

 
940

 
1,398

Equity in earnings/(losses) of unconsolidated affiliates
$
(3,174
)
 
$
1,328

 
$
(1,875
)
 
$
2,679


__________
(1)
For the three and nine months ended September 30, 2013, as a result of acquiring our joint venture partner's 60.0% interest in the third quarter of 2013, we consolidated a joint venture previously accounted for under the equity method of accounting.

Intangible Assets and Below Market Lease Liabilities (Tables)
Total intangible assets and below market lease liabilities [Table Text Block] 
The following table sets forth total intangible assets and acquisition-related below market lease liabilities, net of accumulated amortization:
 
 
September 30,
2013
 
December 31,
2012
Assets:
 
 
 
Deferred financing costs
$
19,506

 
$
21,759

Less accumulated amortization
(8,632
)
 
(7,862
)
 
10,874

 
13,897

Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets)
298,561

 
220,113

Less accumulated amortization
(81,609
)
 
(68,001
)
 
216,952

 
152,112

Deferred financing and leasing costs, net
$
227,826

 
$
166,009

 
 
 
 
Liabilities (in accounts payable, accrued expenses and other liabilities):
 
 
 
Acquisition-related below market lease liabilities
$
55,323

 
$
37,019

Less accumulated amortization
(6,900
)
 
(3,383
)
 
$
48,423

 
$
33,636

Amortization of intangible assets and below market lease liabilities [Table Text Block] 
The following table sets forth amortization of intangible assets and acquisition-related below market lease liabilities:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Amortization of deferred financing costs
$
963

 
$
907

 
$
2,860

 
$
2,709

Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization)
$
10,751

 
$
6,667

 
$
26,962

 
$
19,930

Amortization of lease incentives (in rental and other revenues)
$
347

 
$
386

 
$
1,061

 
$
1,037

Amortization of acquisition-related intangible assets (in rental and other revenues)
$
1,548

 
$
433

 
$
2,499

 
$
1,027

Amortization of acquisition-related intangible assets (in rental property and other expenses)
$
140

 
$
46

 
$
416

 
$
46

Amortization of acquisition-related below market lease liabilities (in rental and other revenues)
$
(1,584
)
 
$
(647
)
 
$
(3,737
)
 
$
(1,744
)

Scheduled future amortization of intangible assets and below market lease liabilities [Table Text Block] 
The following table sets forth scheduled future amortization of intangible assets and below market lease liabilities:

 
 
Amortization of Deferred Financing Costs
 
Amortization of Deferred Leasing Costs and Acquisition-Related Intangible Assets (in Depreciation and Amortization)
 
Amortization of Lease Incentives (in Rental and Other Revenues)
 
Amortization of Acquisition-Related Intangible Assets (in Rental and Other Revenues)
 
Amortization of Acquisition-Related Intangible Assets (in Rental Property and Other Expenses)
 
Amortization of Acquisition-Related Below Market Lease Liabilities (in Rental and Other Revenues)
October 1 through December 31, 2013
 
$
865

 
$
10,222

 
$
320

 
$
1,240

 
$
138

 
$
(1,567
)
2014
 
3,233

 
38,795

 
1,199

 
4,401

 
553

 
(6,011
)
2015
 
2,599

 
32,028

 
971

 
3,627

 
553

 
(5,728
)
2016
 
1,500

 
26,229

 
794

 
2,815

 
553

 
(5,414
)
2017
 
1,213

 
22,312

 
729

 
2,265

 
553

 
(5,165
)
Thereafter
 
1,464

 
57,402

 
2,553

 
5,058

 
1,642

 
(24,538
)
 
 
$
10,874

 
$
186,988

 
$
6,566

 
$
19,406

 
$
3,992

 
$
(48,423
)
Weighted average remaining amortization periods as of September 30, 2013 (in years)
 
5.1

 
6.7

 
7.9

 
6.7

 
7.2

 
9.3

Total intangible assets and below market lease liabilities from acquisition activity [Table Text Block] 
The following table sets forth the intangible assets acquired and below market lease liabilities assumed as a result of 2013 acquisition activity:

 
 
Acquisition-Related Intangible Assets (amortized in Rental and Other Revenues)
 
Acquisition-Related Intangible Assets (amortized in Depreciation and Amortization)
 
Acquisition-Related Below Market Lease Liabilities (amortized in Rental and Other Revenues)
Amount recorded from acquisition activity
 
$
17,201

 
$
58,422

 
$
(19,124
)
Weighted average remaining amortization periods as of September 30, 2013 (in years)
 
6.5

 
6.5

 
8.9

Mortgages and Notes Payable (Tables)
Schedule of Consolidated Mortgages and Notes Payable [Table Text Block]
The following table sets forth our mortgages and notes payable:

 
September 30,
2013
 
December 31,
2012
Secured indebtedness
$
591,821

 
$
549,607

Unsecured indebtedness
1,458,240

 
1,309,555

Total mortgages and notes payable
$
2,050,061

 
$
1,859,162

Derivative Financial Instruments (Tables)
Schedule of Derivative Instruments, Fair Value [Table Text Block] 
 
 
September 30,
2013
 
December 31,
2012
Derivatives:
 
 
 
Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities:
 
 
 
Interest rate swaps
$
2,047

 
$
9,369

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] 
The following table sets forth the effect of our cash flow hedges on AOCL and interest expense:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Derivatives Designated as Cash Flow Hedges:
 
 
 
 
 
 
 
Amount of unrealized gains/(losses) recognized in AOCL on derivatives (effective portion):
 
 
 
 
 
 
 
Interest rate swaps
$
(1,798
)
 
$
(3,337
)
 
$
4,801

 
$
(10,424
)
Amount of losses reclassified out of AOCL into contractual interest expense (effective portion):
 
 
 
 
 
 
 
Interest rate swaps
$
840

 
$
791

 
$
2,428

 
$
2,250

Noncontrolling Interests (Tables) (Highwoods Properties, Inc. [Member])
Noncontrolling Interests in the Operating Partnership [Table Text Block] 
The following table sets forth the Company's noncontrolling interests in the Operating Partnership:
 
 
Nine Months Ended September 30,
 
2013
 
2012
Beginning noncontrolling interests in the Operating Partnership
$
124,869

 
$
110,655

Adjustment of noncontrolling interests in the Operating Partnership to fair value
8,570

 
12,485

Issuances of Common Units
—

 
2,299

Conversions of Common Units to Common Stock
(28,788
)
 
(731
)
Net income attributable to noncontrolling interests in the Operating Partnership
3,713

 
3,166

Distributions to noncontrolling interests in the Operating Partnership
(4,416
)
 
(4,733
)
Total noncontrolling interests in the Operating Partnership
$
103,948

 
$
123,141


Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership [Table Text Block] 
The following table sets forth net income available for common stockholders and transfers from the Company's noncontrolling interests in the Operating Partnership:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Net income available for common stockholders
$
53,349

 
$
33,357

 
$
93,220

 
$
63,013

Increase in additional paid in capital from conversions of Common Units
to Common Stock
25,937

 
100

 
28,788

 
731

Issuances of Common Units
—

 
(2,299
)
 
—

 
(2,299
)
Change from net income available for common stockholders and transfers from noncontrolling interests
$
79,286

 
$
31,158

 
$
122,008

 
$
61,445



Disclosure About Fair Value of Financial Instruments (Tables)
Fair Value Measurements of Assets, Liabilities and Noncontrolling Interests [Table Text Block] 
The following table sets forth our assets and liabilities and the Company's noncontrolling interests in the Operating Partnership that are measured at fair value within the fair value hierarchy.
 
 
 
 
Level 1
 
Level 2
 
Level 3
 
 
Total
 
Quoted Prices
in Active
Markets for Identical Assets or Liabilities
 
Significant Observable Inputs
 
Significant Unobservable Inputs
Fair Value at September 30, 2013:
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
Mortgages and notes receivable, at fair value (1)
 
$
26,409

 
$
—

 
$
17,169

 
$
9,240

Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
 
3,753

 
3,753

 
—

 
—

Tax increment financing bond (in prepaid expenses and other assets)
 
14,330

 
—

 
—

 
14,330

Total Assets
 
$
44,492

 
$
3,753

 
$
17,169

 
$
23,570

Noncontrolling Interests in the Operating Partnership
 
$
103,948

 
$
103,948

 
$
—

 
$
—

Liabilities:
 
 
 
 
 
 
 
 
Mortgages and notes payable, at fair value (1)
 
$
2,136,107

 
$
—

 
$
2,136,107

 
$
—

Interest rate swaps (in accounts payable, accrued expenses and other liabilities)
 
2,047

 
—

 
2,047

 
—

Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
 
3,753

 
3,753

 
—

 
—

Contingent consideration to acquire real estate assets (in accounts payable, accrued expenses and other liabilities)
 
191

 
—

 
—

 
191

Financing obligations, at fair value (1)
 
24,211

 
—

 
—

 
24,211

Total Liabilities
 
$
2,166,309

 
$
3,753

 
$
2,138,154

 
$
24,402

Fair Value at December 31, 2012:
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
Mortgages and notes receivable, at fair value (1)
 
$
24,725

 
$
—

 
$
16,077

 
$
8,648

Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
 
3,354

 
3,354

 
—

 
—

Tax increment financing bond (in prepaid expenses and other assets)
 
14,496

 
—

 
—

 
14,496

Total Assets
 
$
42,575

 
$
3,354

 
$
16,077

 
$
23,144

Noncontrolling Interests in the Operating Partnership
 
$
124,869

 
$
124,869

 
$
—

 
$
—

Liabilities:
 
 
 
 
 
 
 
 
Mortgages and notes payable, at fair value (1)
 
$
1,987,364

 
$
—

 
$
1,987,364

 
$
—

Interest rate swaps (in accounts payable, accrued expenses and other liabilities)
 
9,369

 
—

 
9,369

 
—

Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
 
3,354

 
3,354

 
—

 
—

Contingent consideration to acquire real estate assets (in accounts payable, accrued expenses and other liabilities)
 
563

 
—

 
—

 
563

Financing obligations, at fair value (1)
 
23,252

 
—

 
—

 
23,252

Total Liabilities
 
$
2,023,902

 
$
3,354

 
$
1,996,733

 
$
23,815


__________
(1)    Amounts recorded at historical cost on our Consolidated Balance Sheets at September 30, 2013 and December 31, 2012.
Fair Value Measurements, Unobservable Inputs Reconciliation [Table Text Block] 
The following table sets forth the changes in our Level 3 asset and liability, which are recorded at fair value on our Consolidated Balance Sheets:

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Asset:
 
 
 
 
 
 
 
Tax Increment Financing Bond:
 
 
 
 
 
 
 
Beginning balance
$
14,233

 
$
15,371

 
$
14,496

 
$
14,788

Principal repayment
—

 
—

 
(562
)
 
—

Unrealized gains/(losses) (in AOCL)
97

 
(101
)
 
396

 
482

Ending balance
$
14,330

 
$
15,270

 
$
14,330

 
$
15,270

Liability:
 
 
 
 
 
 
 
Contingent Consideration to Acquire Real Estate Assets:
 
 
 
 
 
 
 
Beginning balance
$
384

 
$
677

 
$
563

 
$
677

Unrealized gains (in general and administrative expenses)
(193
)
 
(114
)
 
(372
)
 
(114
)
Ending balance
$
191

 
$
563

 
$
191

 
$
563

Fair Value Measurements, Valuation Techniques [Table Text Block] 
The following table sets forth quantitative information about the unobservable inputs of our Level 3 asset and liability, which are recorded at fair value on our Consolidated Balance Sheets:
 
 
Fair Value at
September 30, 2013
 
Valuation
Technique
 
Unobservable
Input
 
Rate/ Percentage
Asset:
 
 
 
 
 
 
 
Tax increment financing bond
$
14,330

 
Income approach
 
Discount rate
 
10.8%
Liability:
 
 
 
 
 
 
 
Contingent consideration to acquire real estate assets
$
191

 
Income approach
 
Payout percentage
 
25.0%
Accumulated Other Comprehensive Loss (Tables)
Components of Accumulated Other Comprehensive Loss [Table Text Block]
The following table sets forth the components of AOCL:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Tax increment financing bond:
 
 
 
 
 
 
 
Beginning balance
$
(1,599
)
 
$
(1,726
)
 
$
(1,898
)
 
$
(2,309
)
Unrealized gains/(losses) on tax increment financing bond
97

 
(101
)
 
396

 
482

Ending balance
(1,502
)
 
(1,827
)
 
(1,502
)
 
(1,827
)
Cash flow hedges:
 
 
 
 
 
 
 
Beginning balance
(2,543
)
 
(9,053
)
 
(10,730
)
 
(3,425
)
Unrealized gains/(losses) on cash flow hedges
(1,798
)
 
(3,337
)
 
4,801

 
(10,424
)
Amortization of cash flow hedges (1)
840

 
791

 
2,428

 
2,250

Ending balance
(3,501
)
 
(11,599
)
 
(3,501
)
 
(11,599
)
Total accumulated other comprehensive loss
$
(5,003
)

$
(13,426
)
 
$
(5,003
)
 
$
(13,426
)
__________
(1)    Amounts reclassified out of AOCL into contractual interest expense.
Discontinued Operations (Tables)
Operations Classified As Discontinued Operations [Table Text Block] 
The following table sets forth our operations classified as discontinued operations:

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Rental and other revenues
$
2,810

 
$
5,671

 
$
10,398

 
$
24,211

Operating expenses:
 
 
 
 
 
 
 
Rental property and other expenses
1,049

 
1,622

 
3,389

 
7,796

Depreciation and amortization
665

 
1,610

 
3,166

 
7,108

Total operating expenses
1,714

 
3,232

 
6,555

 
14,904

Interest expense
—

 
35

 
—

 
283

Income from discontinued operations
1,096

 
2,404

 
3,843

 
9,024

Impairments of real estate assets
—

 
—

 
(2,194
)
 
—

Net gains on disposition of discontinued operations
37,946

 
22,936

 
52,353

 
29,455

Total discontinued operations
$
39,042

 
$
25,340

 
$
54,002

 
$
38,479


Major Classes of Assets and Liabilities of the Properties Classified As Held For Sale [Table Text Block] 
The following table sets forth the major classes of assets of our real estate and other assets, net, held for sale:

 
September 30,
2013
 
December 31,
2012
Assets:
 
 
 
Land
$
1,948

 
$
28,598

Buildings and tenant improvements
18,498

 
132,361

Land held for development
—

 
2,368

Less-accumulated depreciation
(5,931
)
 
(43,730
)
Net real estate assets
14,515

 
119,597

Accrued straight-line rents receivable, net
1,187

 
5,759

Deferred leasing costs, net
614

 
4,014

Prepaid expenses and other assets
—

 
30

Real estate and other assets, net, held for sale
$
16,316

 
$
129,400

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

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Earnings per Common Share - basic:
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
17,026

 
$
10,456

 
$
45,405

 
$
30,147

Net (income) attributable to noncontrolling interests in the Operating Partnership from continuing operations
(503
)
 
(459
)
 
(1,684
)
 
(1,335
)
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(203
)
 
(159
)
 
(593
)
 
(566
)
Dividends on Preferred Stock
(627
)
 
(627
)
 
(1,881
)
 
(1,881
)
Income from continuing operations available for common stockholders
15,693

 
9,211

 
41,247

 
26,365

Income from discontinued operations
39,042

 
25,340

 
54,002

 
38,479

Net (income) attributable to noncontrolling interests in the Operating Partnership from discontinued operations
(1,386
)
 
(1,194
)
 
(2,029
)
 
(1,831
)
Income from discontinued operations available for common stockholders
37,656

 
24,146

 
51,973

 
36,648

Net income available for common stockholders
$
53,349

 
$
33,357

 
$
93,220

 
$
63,013

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per Common Share – weighted average shares (1) (2)
87,467

 
76,590

 
83,793

 
74,703

Earnings per Common Share - basic:
 
 
 
 
 
 
 
Income from continuing operations available for common stockholders
$
0.18

 
$
0.12

 
$
0.49

 
$
0.35

Income from discontinued operations available for common stockholders
0.43

 
0.32

 
0.62

 
0.49

Net income available for common stockholders
$
0.61

 
$
0.44

 
$
1.11

 
$
0.84

Earnings per Common Share - diluted:
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
17,026

 
$
10,456

 
$
45,405

 
$
30,147

Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(203
)
 
(159
)
 
(593
)
 
(566
)
Dividends on Preferred Stock
(627
)
 
(627
)
 
(1,881
)
 
(1,881
)
Income from continuing operations available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
16,196

 
9,670

 
42,931

 
27,700

Income from discontinued operations available for common stockholders
39,042

 
25,340

 
54,002

 
38,479

Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
$
55,238

 
$
35,010

 
$
96,933

 
$
66,179

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per Common Share –weighted average shares (1) (2)
87,467

 
76,590

 
83,793

 
74,703

Add:
 
 
 
 
 
 
 
Stock options using the treasury method
101

 
137

 
114

 
127

Noncontrolling interests Common Units
3,201

 
3,768

 
3,536

 
3,738

Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions (1)
90,769

 
80,495

 
87,443

 
78,568

Earnings per Common Share - diluted:
 
 
 
 
 
 
 
Income from continuing operations available for common stockholders
$
0.18

 
$
0.12

 
$
0.49

 
$
0.35

Income from discontinued operations available for common stockholders
0.43

 
0.31

 
0.62

 
0.49

Net income available for common stockholders
$
0.61

 
$
0.43

 
$
1.11

 
$
0.84

__________

13.
Earnings Per Share and Per Unit - Continued
(1)
There were 0.3 million and 0.5 million options outstanding during the three months ended September 30, 2013 and 2012, respectively, and 0.3 million and 0.5 million options outstanding during the nine months ended September 30, 2013 and 2012, respectively, that were not included in the computation of diluted earnings per share because the impact of including such options would be anti-dilutive.
(2)
Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable.
Earnings Per Unit [Table Text Block] 
The following table sets forth the computation of basic and diluted earnings per unit of the Operating Partnership:

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Earnings per Common Unit - basic:
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
17,025

 
$
10,460

 
$
45,354

 
$
30,156

Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(203
)
 
(159
)
 
(593
)
 
(566
)
Distributions on Preferred Units
(627
)
 
(627
)
 
(1,881
)
 
(1,881
)
Income from continuing operations available for common unitholders
16,195

 
9,674

 
42,880

 
27,709

Income from discontinued operations available for common unitholders
39,042

 
25,340

 
54,002

 
38,479

Net income available for common unitholders
$
55,237

 
$
35,014

 
$
96,882

 
$
66,188

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per Common Unit – weighted average units (1) (2)
90,259

 
79,949

 
86,920

 
78,032

Earnings per Common Unit - basic:
 
 
 
 
 
 
 
Income from continuing operations available for common unitholders
$
0.18

 
$
0.12

 
$
0.49

 
$
0.36

Income from discontinued operations available for common unitholders
0.43

 
0.32

 
0.62

 
0.49

Net income available for common unitholders
$
0.61

 
$
0.44

 
$
1.11

 
$
0.85

Earnings per Common Unit - diluted:
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
17,025

 
$
10,460

 
$
45,354

 
$
30,156

Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(203
)
 
(159
)
 
(593
)
 
(566
)
Distributions on Preferred Units
(627
)
 
(627
)
 
(1,881
)
 
(1,881
)
Income from continuing operations available for common unitholders
16,195

 
9,674

 
42,880

 
27,709

Income from discontinued operations available for common unitholders
39,042

 
25,340

 
54,002

 
38,479

Net income available for common unitholders
$
55,237

 
$
35,014

 
$
96,882

 
$
66,188

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per Common Unit –weighted average units (1) (2)
90,259

 
79,949

 
86,920

 
78,032

Add:
 
 
 
 
 
 
 
Stock options using the treasury method
101

 
137

 
114

 
127

Denominator for diluted earnings per Common Unit – adjusted weighted average units and assumed conversions (1)
90,360

 
80,086

 
87,034

 
78,159

Earnings per Common Unit - diluted:
 
 
 
 
 
 
 
Income from continuing operations available for common unitholders
$
0.18

 
$
0.12

 
$
0.49

 
$
0.36

Income from discontinued operations available for common unitholders
0.43

 
0.32

 
0.62

 
0.49

Net income available for common unitholders
$
0.61

 
$
0.44

 
$
1.11

 
$
0.85

__________
(1)
There were 0.3 million and 0.5 million options outstanding during the three months ended September 30, 2013 and 2012, respectively, and 0.3 million and 0.5 million options outstanding during the nine months ended September 30, 2013 and 2012, respectively, that were not included in the computation of diluted earnings per unit because the impact of including such options would be anti-dilutive.
(2)
Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable.
Segment Information (Tables)
Segment Information [Table Text Block]
The following tables summarize the rental and other revenues and net operating income, the primary industry property-level performance metric which is defined as rental and other revenues less rental property and other expenses, for each of our reportable segments:

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Rental and Other Revenues: (1)
 
 
 
 
 
 
 
Office:
 
 
 
 
 
 
 
Atlanta, GA
$
22,523

 
$
13,704

 
$
57,630

 
$
43,220

Greenville, SC
2,699

 
3,296

 
9,056

 
10,286

Kansas City, MO
4,064

 
4,014

 
12,067

 
11,173

Memphis, TN
9,644

 
9,103

 
28,680

 
27,603

Nashville, TN
15,147

 
14,285

 
43,411

 
42,456

Orlando, FL
8,441

 
2,217

 
12,894

 
6,594

Piedmont Triad, NC
6,792

 
5,176

 
19,932

 
14,532

Pittsburgh, PA
14,191

 
9,482

 
41,835

 
27,671

Raleigh, NC
21,737

 
20,578

 
64,124

 
60,737

Richmond, VA
12,006

 
11,848

 
35,639

 
35,442

Tampa, FL
17,278

 
17,199

 
52,840

 
51,140

Total Office Segment
134,522

 
110,902

 
378,108

 
330,854

Industrial:
 
 
 
 
 
 
 
Atlanta, GA
210

 
189

 
624

 
610

Piedmont Triad, NC
2,998

 
3,141

 
9,238

 
9,389

Total Industrial Segment
3,208

 
3,330

 
9,862

 
9,999

Retail:
 
 
 
 
 
 
 
Kansas City, MO
9,564

 
9,186

 
27,991

 
27,176

Total Retail Segment
9,564

 
9,186

 
27,991

 
27,176

Total Rental and Other Revenues
$
147,294

 
$
123,418

 
$
415,961

 
$
368,029


14.
Segment Information - Continued

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Net Operating Income: (1)
 
 
 
 
 
 
 
Office:
 
 
 
 
 
 
 
Atlanta, GA
$
13,868

 
$
8,408

 
$
35,936

 
$
27,346

Greenville, SC
1,301

 
1,806

 
4,869

 
5,986

Kansas City, MO
2,597

 
2,546

 
7,796

 
7,060

Memphis, TN
5,408

 
5,378

 
16,337

 
16,226

Nashville, TN
10,311

 
9,772

 
30,028

 
29,247

Orlando, FL
4,950

 
947

 
7,099

 
3,066

Piedmont Triad, NC
4,373

 
3,095

 
12,823

 
9,103

Pittsburgh, PA
8,001

 
4,949

 
23,322

 
13,851

Raleigh, NC
14,920

 
13,939

 
45,226

 
42,267

Richmond, VA
7,910

 
7,863

 
24,267

 
24,270

Tampa, FL
10,165

 
10,818

 
32,287

 
32,028

Total Office Segment
83,804

 
69,521

 
239,990

 
210,450

Industrial:
 
 
 
 
 
 
 
Atlanta, GA
122

 
100

 
361

 
347

Piedmont Triad, NC
2,187

 
2,256

 
6,797

 
6,848

Total Industrial Segment
2,309

 
2,356

 
7,158

 
7,195

Retail:
 
 
 
 
 
 
 
Kansas City, MO
5,837

 
5,676

 
17,066

 
16,525

Total Retail Segment
5,837

 
5,676

 
17,066

 
16,525

Residential:
 
 
 
 
 
 
 
Raleigh, NC
—

 
(33
)
 
—

 
(178
)
Total Residential Segment
—


(33
)
 
—

 
(178
)
Corporate and other
(21
)
 
(6
)
 
(55
)
 
(65
)
Total Net Operating Income
91,929

 
77,514

 
264,159

 
233,927

Reconciliation to income from continuing operations before disposition of property and condominiums and acquisition of controlling interest in and equity in earnings/(losses) of unconsolidated affiliates:
 
 
 
 
 
 
 
Depreciation and amortization
(48,124
)
 
(37,041
)
 
(130,390
)
 
(110,656
)
General and administrative expenses
(8,969
)
 
(9,725
)
 
(27,948
)
 
(28,298
)
Interest expense
(23,672
)
 
(23,612
)
 
(70,826
)
 
(72,661
)
Other income
1,550

 
1,916

 
4,786

 
4,910

Income from continuing operations before disposition of property and condominiums and acquisition of controlling interest in and equity in earnings/(losses) of unconsolidated affiliates
$
12,714

 
$
9,052

 
$
39,781

 
$
27,222

__________
(1)
Net of discontinued operations.
Description of Business and Significant Accounting Policies (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended
Sep. 30, 2013
property
sqft
acre
Sep. 30, 2012
Sep. 30, 2013
Highwoods Properties, Inc. [Member]
sqft
Dec. 31, 2012
Highwoods Properties, Inc. [Member]
Sep. 30, 2013
Highwoods Properties, Inc. [Member]
ATM Equity Offering [Member]
Sep. 30, 2013
Highwoods Properties, Inc. [Member]
ATM Equity Offering [Member]
Sep. 30, 2013
Highwoods Properties, Inc. [Member]
Public Equity Offering (8/2013) [Member]
Sep. 30, 2013
Highwoods Realty Limited Partnership [Member]
Description of Business and Significant Accounting Policies [Line Items]
 
 
 
 
 
 
 
 
In-service office, industrial and retail properties (in units)
282 
 
 
 
 
 
 
 
Square footage of commercial property (in sq feet)
30,100,000 
 
 
 
 
 
 
 
Undeveloped land suitable for future development (in acres)
592 
 
 
 
 
 
 
 
Undeveloped land considered core holdings (in acres)
496 
 
 
 
 
 
 
 
Office properties under/planned for development (in units)
4 
 
 
 
 
 
 
 
Percentage of equity interest in joint ventures, maximum (in hundredths)
50.00% 
 
 
 
 
 
 
 
Number of real estate properties not wholly owned (in units)
23 
 
 
 
 
 
 
 
Area of undeveloped land not wholly owned (in acres)
11 
 
 
 
 
 
 
 
Percentage of equity interest in joint venture not owned by Operating Partership
 
 
12.50% 
 
 
 
 
 
Square footage of real estate property not owned by Operating Partnership (in sq feet)
 
 
261,000 
 
 
 
 
 
Common Units of partnership owned by the Company (in shares)
 
 
89,500,000 
 
 
 
 
 
Percentage of ownership of Common Units
 
 
96.80% 
95.60% 
 
 
 
 
Common Units of partnership not owned by the Company (in shares)
 
 
 
 
 
 
 
2,900,000 
Common Units redeemed for a like number of common shares of stock (in shares)
789,144 
 
 
 
 
 
 
 
Number of Common Stock sold during the period (in shares)
 
 
 
 
904,809 
3,961,190 
4,312,500 
 
Average price of Common Stock sold during the period (in dollars per share)
 
 
 
 
$ 35.81 
$ 36.97 
 
 
Net proceeds of Common Stock sold during the period
$ 305,601 
$ 186,674 
 
 
$ 31,900 
$ 144,200 
$ 150,900 
 
Real Estate Assets (Details) (USD $)
3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended
Sep. 30, 2013
acre
Sep. 30, 2012
Sep. 30, 2013
acre
Sep. 30, 2012
Sep. 30, 2013
Pro Forma 2013 Acquisitions [Member]
Sep. 30, 2012
Pro Forma 2013 Acquisitions [Member]
Sep. 30, 2013
Pro Forma 2013 Acquisitions [Member]
Sep. 30, 2012
Pro Forma 2013 Acquisitions [Member]
Sep. 30, 2012
Pro Forma 2012 Acquisitions [Member]
Sep. 30, 2012
Pro Forma 2012 Acquisitions [Member]
Sep. 30, 2013
Orlando, FL Office Properties Acquisition (9/2013) [Member]
property
sqft
Sep. 30, 2013
Nashville, TN Office Property Acquisition (9/2013) [Member]
sqft
Sep. 30, 2013
Atlanta, GA Office Properties Acquisition (9/2013) [Member]
sqft
property
Jun. 30, 2013
Atlanta, GA Office Property Acquisition (6/2013) [Member]
sqft
Mar. 31, 2013
Tampa, FL Office Properties Acquisition (3/2013) [Member]
sqft
property
Mar. 31, 2013
Greensboro, NC Office Properties Acquisition (3/2013) [Member]
property
sqft
Mar. 31, 2013
Memphis, TN Development Land Acquisition (3/2013) [Member]
acre
Sep. 30, 2012
Atlanta, GA Office Property Acquisition (9/2012) [Member]
sqft
Sep. 30, 2013
Tampa, FL Office Property Disposition (9/2013) [Member]
Sep. 30, 2013
Atlanta, GA Industrial Properties/Land Disposition (9/2013) [Member]
property
Jun. 30, 2013
Atlanta, GA Industrial Property Disposition (6/2013) [Member]
property
Jun. 30, 2013
Atlanta, GA Industrial Property/Land Disposition 2 (6/2013) [Member]
property
Jun. 30, 2013
Atlanta, GA Industrial Property Disposition 3 (6/2013) [Member]
property
Mar. 31, 2013
Orlando, FL Office Properties Disposition (3/2013) [Member]
property
Mar. 31, 2013
Jackson, MS Office Property Disposition (9/2012) [Member]
Jun. 30, 2013
Winston-Salem, NC Office Properties (6/2013) [Member]
property
Mar. 31, 2013
Atlanta, GA Industrial Properties (3/2013) [Member]
property
Mar. 31, 2013
Atlanta, GA Industrial Properties Held For Sale (3/2013) [Member]
property
Acquisitions [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of equity interest acquired in unconsolidated affiliate (in hundredths)
 
 
 
 
 
 
 
 
 
 
60.00% 
 
57.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of equity interest in joint venture, previously held (in hundredths)
 
 
 
 
 
 
 
 
 
 
40.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of office properties acquired
 
 
 
 
 
 
 
 
 
 
5 
 
2 
 
2 
2 
 
 
 
 
 
 
 
 
 
 
 
 
Rentable square feet of acquisition (in sq. ft)
 
 
 
 
 
 
 
 
 
 
1,300,000 
520,000 
505,000 
553,000 
372,000 
195,000 
 
492,000 
 
 
 
 
 
 
 
 
 
 
Purchase price of acquisition of unconsolidated affiliate
 
 
 
 
 
 
 
 
 
 
$ 112,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of assets recorded from the acquisition
 
 
 
 
 
 
 
 
 
 
188,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of debt assumed from the acquisition
 
 
 
 
127,891,000 
 
127,891,000 
 
 
 
127,900,000 
 
37,600,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective interest rate of secured debt assumed from the acquisition (in hundredths)
 
 
 
 
 
 
 
 
 
 
3.11% 
 
3.34% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maturity date of debt assumed from the acquisition
 
 
 
 
 
 
 
 
 
 
Jul. 01, 2014 
 
Apr. 01, 2015 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Previously held equity interest remeasured at fair value
 
 
 
 
 
 
 
 
 
 
75,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain on acquisition of controlling interest in unconsolidated affiliate
7,451,000 
0 
7,451,000 
0 
 
 
 
 
 
 
7,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisition purchase price
 
 
 
 
 
 
 
 
 
 
 
150,100,000 
44,500,000 
140,100,000 
52,500,000 
30,800,000 
4,800,000 
144,900,000 
 
 
 
 
 
 
 
 
 
 
Acquisition development land (in acres)
592 
 
592 
 
 
 
 
 
 
 
 
 
 
 
 
 
5 
 
 
 
 
 
 
 
 
 
 
 
Acquisition-related costs
800,000 
 
1,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Acquisition, Purchase Price Allocation [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate assets
 
 
 
 
445,396,000 
 
445,396,000 
 
135,128,000 
135,128,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisition-related intangible assets (in deferred financing and leasing costs)
 
 
 
 
50,595,000 
 
50,595,000 
 
21,637,000 
21,637,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of debt assumed from the acquisition
 
 
 
 
(127,891,000)
 
(127,891,000)
 
 
 
(127,900,000)
 
(37,600,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisition-related below market lease liabilities (in accounts payable, accrued expenses and other liabilities)
 
 
 
 
(17,818,000)
 
(17,818,000)
 
(11,875,000)
(11,875,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total allocation
 
 
 
 
350,282,000 
 
350,282,000 
 
144,890,000 
144,890,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Acquisition, Pro Forma Information [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pro forma, rental and other revenues
 
 
 
 
152,221,000 
162,422,000 
451,317,000 
410,027,000 
127,836,000 
381,070,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pro forma, net income
 
 
 
 
49,818,000 
23,952,000 
90,064,000 
56,782,000 
35,765,000 
68,526,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pro forma, earnings per share - basic
 
 
 
 
$ 0.54 
$ 0.28 
$ 1.00 
$ 0.68 
$ 0.43 
$ 0.84 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pro forma, earnings per share - diluted
 
 
 
 
$ 0.54 
$ 0.29 
$ 1.00 
$ 0.69 
$ 0.43 
$ 0.84 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pro forma, assumption date of acquisition
 
 
 
 
Jan. 01, 2012 
 
 
 
Jan. 01, 2011 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues recorded due to acquisitions
 
 
 
 
10,000,000 
 
10,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net loss recorded due to acquisitions
 
 
 
 
(100,000)
 
(400,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dispositions [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of office properties sold
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2 
 
 
 
 
Number of industrial real estate properties sold
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
16 
5 
6 
2 
 
 
 
 
 
Proceeds received from sale of real estate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
11,600,000 
91,600,000 
4,500,000 
38,700,000 
4,800,000 
14,600,000 
 
 
 
 
Closing credits for unfunded tenant improvements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
300,000 
 
1,800,000 
 
800,000 
 
 
 
 
Closing credits for free rent
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
300,000 
100,000 
1,300,000 
 
 
 
 
 
 
Gain/(loss) on disposition of discontinued operations
37,946,000 
22,936,000 
52,353,000 
29,455,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,200,000 
36,700,000 
100,000 
13,200,000 
(100,000)
(300,000)
1,500,000 
 
 
 
Gain on disposition of property
34,000 
0 
(3,000)
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100,000 
 
 
 
 
 
 
 
 
Impairments [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of impaired properties
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4 
2 
5 
Impairments of real estate assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,100,000 
400,000 
 
Impairments of real estate assets held for sale
$ 0 
$ 0 
$ 2,194,000 
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 700,000 
Mortgages and Notes Receivable (Details) (USD $)
12 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2013
Dec. 31, 2012
Dec. 31, 2010
Seller Financing [Member]
transactions
Sep. 30, 2013
Seller Financing [Member]
Dec. 31, 2012
Seller Financing [Member]
Sep. 30, 2013
Mortgage Receivable [Member]
Dec. 31, 2012
Mortgage Receivable [Member]
Sep. 30, 2013
Promissory Notes [Member]
Sep. 30, 2012
Promissory Notes [Member]
Sep. 30, 2013
Promissory Notes [Member]
Sep. 30, 2012
Promissory Notes [Member]
Dec. 31, 2012
Promissory Notes [Member]
Schedule of mortgages and notes receivable [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
Mortgages and notes receivable, gross
 
 
 
$ 16,454,000 
$ 15,853,000 
$ 9,207,000 
$ 8,648,000 
$ 970,000 
 
$ 970,000 
 
$ 1,153,000 
Mortgages and notes receivable, allowance
(340,000)
(182,000)
 
0 
0 
0 
 
(340,000)
(211,000)
(340,000)
(211,000)
 
Mortgages and notes receivable, net
26,291,000 
25,472,000 
 
16,454,000 
15,853,000 
9,207,000 
8,648,000 
630,000 
 
630,000 
 
971,000 
Number of transactions with seller financing
 
 
2 
 
 
 
 
 
 
 
 
 
Additional loan commitment to third party
 
 
 
 
 
 
8,400,000 
 
 
 
 
 
Cumulative funds for future infrastructure disbursed to third party
 
 
 
 
 
200,000 
 
 
 
 
 
 
Notes receivable allowance, promissory notes [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
Beginning notes receivable allowance
340,000 
182,000 
 
0 
0 
0 
 
376,000 
118,000 
182,000 
61,000 
 
Recoveries/write-offs/other
 
 
 
 
 
 
 
(36,000)
93,000 
158,000 
150,000 
 
Total notes receivable allowance
$ 340,000 
$ 182,000 
 
$ 0 
$ 0 
$ 0 
 
$ 340,000 
$ 211,000 
$ 340,000 
$ 211,000 
 
Investments In and Advances To Affiliates (Details) (USD $)
3 Months Ended 9 Months Ended 3 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Highwoods DLF 98/29, LLC Joint Venture [Member]
Jun. 30, 2013
Highwoods DLF 98/29, LLC Joint Venture [Member]
Mar. 31, 2013
Highwoods DLF 98/29, LLC Joint Venture [Member]
Mar. 31, 2013
Highwoods DLF 97/26 DLF 99/32, LP Joint Venture [Member]
Sep. 30, 2013
Highwoods DLF 97/26 DLF 99/32, LP Joint Venture [Member]
property
Sep. 30, 2013
HIW-KC Orlando, LLC Joint Venture [Member]
Sep. 30, 2013
Highwoods Realty Limited Partnership [Member]
Sep. 30, 2012
Highwoods Realty Limited Partnership [Member]
Sep. 30, 2013
Highwoods Realty Limited Partnership [Member]
Sep. 30, 2012
Highwoods Realty Limited Partnership [Member]
Sep. 30, 2013
Highwoods Realty Limited Partnership [Member]
HIW-KC Orlando, LLC Joint Venture [Member]
Income Statements:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rental and other revenues
$ 16,911,000 
$ 25,051,000 
$ 64,362,000 
$ 75,920,000 
 
 
 
 
 
 
$ 15,872,000 
$ 24,062,000 
$ 61,243,000 
$ 72,916,000 
 
Expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rental property and other expenses
8,733,000 
11,624,000 
31,681,000 
35,706,000 
 
 
 
 
 
 
8,126,000 
11,024,000 
29,821,000 
33,901,000 
 
Depreciation and amortization
5,010,000 
6,355,000 
17,383,000 
18,839,000 
 
 
 
 
 
 
4,699,000 
6,044,000 
16,449,000 
17,905,000 
 
Impairments of real estate assets
15,287,000 
0 
20,077,000 
7,180,000 
15,300,000 
 
4,800,000 
 
 
 
15,287,000 
0 
20,077,000 
7,180,000 
 
Interest expense
3,141,000 
4,980,000 
12,569,000 
16,077,000 
 
 
 
 
 
 
2,976,000 
4,817,000 
12,086,000 
15,583,000 
 
Total expenses
32,171,000 
22,959,000 
81,710,000 
77,802,000 
 
 
 
 
 
 
31,088,000 
21,885,000 
78,433,000 
74,569,000 
 
Income/(loss) before disposition of properties
(15,260,000)
2,092,000 
(17,348,000)
(1,882,000)
 
 
 
 
 
 
(15,216,000)
2,177,000 
(17,190,000)
(1,653,000)
 
Gains on disposition of properties
8,256,000 
0 
8,323,000 
6,275,000 
 
100,000 
 
100,000 
 
 
8,256,000 
0 
8,323,000 
6,275,000 
 
Net income/(loss)
(7,004,000)
2,092,000 
(9,025,000)
4,393,000 
 
 
 
 
 
 
(6,960,000)
2,177,000 
(8,867,000)
4,622,000 
 
Our share of:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization of real estate assets
1,628,000 
2,028,000 
5,735,000 
5,801,000 
 
 
 
 
 
 
1,589,000 
1,989,000 
5,618,000 
5,684,000 
 
Impairments of real estate assets
3,487,000 
0 
4,507,000 
1,002,000 
3,500,000 
 
1,000,000 
 
 
 
3,487,000 
0 
4,507,000 
1,002,000 
 
Interest expense
1,099,000 
1,775,000 
4,583,000 
5,598,000 
 
 
 
 
 
 
1,079,000 
1,754,000 
4,523,000 
5,536,000 
 
Our share of gains recorded on disposition of property
0 
0 
431,000 
0 
 
100,000 
 
400,000 
 
 
0 
0 
431,000 
0 
 
Net income
(3,410,000)1
914,000 
(2,835,000)1
1,252,000 
 
 
 
 
 
 
(3,405,000)1
925,000 
(2,815,000)1
1,281,000 
 
Our share of net income
(3,410,000)1
914,000 
(2,835,000)1
1,252,000 
 
 
 
 
 
 
(3,405,000)1
925,000 
(2,815,000)1
1,281,000 
 
Adjustments for management and other fees
237,000 
410,000 
1,011,000 
1,418,000 
 
 
 
 
 
 
231,000 
403,000 
940,000 
1,398,000 
 
Equity in earnings of unconsolidated affiliates
(3,173,000)
1,324,000 
(1,824,000)
2,670,000 
 
 
 
 
 
 
(3,174,000)
1,328,000 
(1,875,000)
2,679,000 
 
Percentage of equity interest in joint ventures, maximum (in hundredths)
50.00% 
 
50.00% 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of equity interest acquired in unconsolidated affiliate (in hundredths)
 
 
 
 
 
 
 
 
 
60.00% 
 
 
 
 
60.00% 
Number of office properties sold
 
 
 
 
 
 
 
 
2 
 
 
 
 
 
 
Proceeds received from disposition of property
 
 
 
 
 
5,900,000 
 
10,100,000 
 
 
 
 
 
 
 
Closing credits for free rent
 
 
 
 
 
$ 100,000 
 
$ 300,000 
 
 
 
 
 
 
 
Intangible Assets and Below Market Lease Liabilities (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Intangible assets and below market lease liabilities, net [Abstract]
 
 
 
 
 
Deferred financing and leasing costs, accumulated amortization
$ (90,241)
 
$ (90,241)
 
$ (75,863)
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
227,826 
 
227,826 
 
166,009 
Acquired above market lease intangible assets
17,201 
 
17,201 
 
 
Acquired in-place lease intangible assets
58,422 
 
58,422 
 
 
Assumed below market lease liabilities
(19,124)
 
(19,124)
 
 
Deferred Financing Costs [Member]
 
 
 
 
 
Intangible assets and below market lease liabilities, net [Abstract]
 
 
 
 
 
Deferred financing and leasing costs, gross
19,506 
 
19,506 
 
21,759 
Deferred financing and leasing costs, accumulated amortization
(8,632)
 
(8,632)
 
(7,862)
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
10,874 
 
10,874 
 
13,897 
Amortization of intangible assets and below market lease liabilities [Abstract]
 
 
 
 
 
Amortization of intangible assets
963 
907 
2,860 
2,709 
 
Deferred Leasing Costs [Member]
 
 
 
 
 
Intangible assets and below market lease liabilities, net [Abstract]
 
 
 
 
 
Deferred financing and leasing costs, gross
298,561 
 
298,561 
 
220,113 
Deferred financing and leasing costs, accumulated amortization
(81,609)
 
(81,609)
 
(68,001)
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
216,952 
 
216,952 
 
152,112 
Deferred Leasing Costs and Acquisition-Related Intangible Assets [Member]
 
 
 
 
 
Intangible assets and below market lease liabilities, net [Abstract]
 
 
 
 
 
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
186,988 
 
186,988 
 
 
Amortization of intangible assets and below market lease liabilities [Abstract]
 
 
 
 
 
Amortization of intangible assets
10,751 
6,667 
26,962 
19,930 
 
Lease Incentives [Member]
 
 
 
 
 
Intangible assets and below market lease liabilities, net [Abstract]
 
 
 
 
 
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
6,566 
 
6,566 
 
 
Amortization of intangible assets and below market lease liabilities [Abstract]
 
 
 
 
 
Amortization of intangible assets
347 
386 
1,061 
1,037 
 
Acquisition-Related Intangible Assets (in Rental and Other Revenues) [Member]
 
 
 
 
 
Intangible assets and below market lease liabilities, net [Abstract]
 
 
 
 
 
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
19,406 
 
19,406 
 
 
Amortization of intangible assets and below market lease liabilities [Abstract]
 
 
 
 
 
Amortization of intangible assets
1,548 
433 
2,499 
1,027 
 
Acquisition-Related Intangible Assets (in Rental Property and Other Expenses) [Member]
 
 
 
 
 
Intangible assets and below market lease liabilities, net [Abstract]
 
 
 
 
 
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
3,992 
 
3,992 
 
 
Amortization of intangible assets and below market lease liabilities [Abstract]
 
 
 
 
 
Amortization of intangible assets
140 
46 
416 
46 
 
Acquisition-Related Below Market Lease Liabilities [Member]
 
 
 
 
 
Intangible assets and below market lease liabilities, net [Abstract]
 
 
 
 
 
Acquisition-related below market lease liabilities, gross
55,323 
 
55,323 
 
37,019 
Acquisition-related below market lease liabilities, accumulated amortization
(6,900)
 
(6,900)
 
(3,383)
Acquisition-related below market lease liabilities, net
48,423 
 
48,423 
 
33,636 
Amortization of intangible assets and below market lease liabilities [Abstract]
 
 
 
 
 
Amortization of acquisition-related below market lease liabilities
$ (1,584)
$ (647)
$ (3,737)
$ (1,744)
 
Intangible Assets and Below Market Lease Liabilities - Scheduled Future Amortization (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2013
Dec. 31, 2012
Scheduled future amortization of intangible assets [Abstract]
 
 
 
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
$ 227,826 
$ 227,826 
$ 166,009 
Deferred Financing Costs [Member]
 
 
 
Scheduled future amortization of intangible assets [Abstract]
 
 
 
October 1, 2013 through December 31, 2013
865 
865 
 
2014
3,233 
3,233 
 
2015
2,599 
2,599 
 
2016
1,500 
1,500 
 
2017
1,213 
1,213 
 
Thereafter
1,464 
1,464 
 
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
10,874 
10,874 
13,897 
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract]
 
 
 
Finite-lived intangible assets, average useful life (in years)
 
5 years 1 month 15 days 
 
Deferred Leasing Costs and Acquisition-Related Intangible Assets [Member]
 
 
 
Scheduled future amortization of intangible assets [Abstract]
 
 
 
October 1, 2013 through December 31, 2013
10,222 
10,222 
 
2014
38,795 
38,795 
 
2015
32,028 
32,028 
 
2016
26,229 
26,229 
 
2017
22,312 
22,312 
 
Thereafter
57,402 
57,402 
 
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
186,988 
186,988 
 
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract]
 
 
 
Finite-lived intangible assets, average useful life (in years)
 
6 years 8 months 12 days 
 
Lease Incentives [Member]
 
 
 
Scheduled future amortization of intangible assets [Abstract]
 
 
 
October 1, 2013 through December 31, 2013
320 
320 
 
2014
1,199 
1,199 
 
2015
971 
971 
 
2016
794 
794 
 
2017
729 
729 
 
Thereafter
2,553 
2,553 
 
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
6,566 
6,566 
 
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract]
 
 
 
Finite-lived intangible assets, average useful life (in years)
 
7 years 11 months 
 
Acquisition-Related Intangible Assets (in Rental and Other Revenues) [Member]
 
 
 
Scheduled future amortization of intangible assets [Abstract]
 
 
 
October 1, 2013 through December 31, 2013
1,240 
1,240 
 
2014
4,401 
4,401 
 
2015
3,627 
3,627 
 
2016
2,815 
2,815 
 
2017
2,265 
2,265 
 
Thereafter
5,058 
5,058 
 
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
19,406 
19,406 
 
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract]
 
 
 
Finite-lived intangible assets, average useful life (in years)
 
6 years 8 months 12 days 
 
Acquired finite-lived intangible assets, average useful life (in years)
6 years 6 months 
 
 
Acquisition-Related Intangible Assets (in Rental Property and Other Expenses) [Member]
 
 
 
Scheduled future amortization of intangible assets [Abstract]
 
 
 
October 1, 2013 through December 31, 2013
138 
138 
 
2014
553 
553 
 
2015
553 
553 
 
2016
553 
553 
 
2017
553 
553 
 
Thereafter
1,642 
1,642 
 
Deferred financing and leasing costs, net/Total scheduled future amortization of intangible assets
3,992 
3,992 
 
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract]
 
 
 
Finite-lived intangible assets, average useful life (in years)
 
7 years 2 months 13 days 
 
Acquisition-Related Below Market Lease Liabilities [Member]
 
 
 
Scheduled future amortization of below market lease liabilities [Abstract]
 
 
 
October 1, 2013 through December 31, 2013
(1,567)
(1,567)
 
2014
(6,011)
(6,011)
 
2015
(5,728)
(5,728)
 
2016
(5,414)
(5,414)
 
2017
(5,165)
(5,165)
 
Thereafter
(24,538)
(24,538)
 
Total scheduled future amortization of acquisition-related below market lease liabilities
$ (48,423)
$ (48,423)
$ (33,636)
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract]
 
 
 
Finite-lived below market lease liabilities, average useful life (in years)
 
9 years 4 months 
 
Assumed finite-lived below market lease liabilities, average useful life (in years)
8 years 11 months 
 
 
in-Place Lease Intangible Assets [Member]
 
 
 
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract]
 
 
 
Acquired finite-lived intangible assets, average useful life (in years)
6 years 6 months 
 
 
Mortgages and Notes Payable (Details) (USD $)
3 Months Ended 9 Months Ended 3 Months Ended 3 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Sep. 30, 2013
Revolving Credit Facility due 2015 [Member]
Oct. 21, 2013
Revolving Credit Facility due 2015 [Member]
Mar. 31, 2013
Variable Rate Term Loan due 2016 [Member]
Sep. 30, 2013
5.68% and 6.48% Mortgage Loans Due 2013 [Member]
loans
Sep. 30, 2013
Secured indebtedness [Member]
Dec. 31, 2012
Secured indebtedness [Member]
Sep. 30, 2013
Unsecured indebtedness [Member]
Dec. 31, 2012
Unsecured indebtedness [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgages and notes payable
$ 2,050,061,000 
 
$ 2,050,061,000 
 
$ 1,859,162,000 
 
 
 
 
$ 591,821,000 
$ 549,607,000 
$ 1,458,240,000 
$ 1,309,555,000 
Aggregate undepreciated book value of secured real estate assets
 
 
 
 
 
 
 
 
 
971,200,000 
 
 
 
Maximum borrowing capacity on revolving credit facility
 
 
 
 
 
475,000,000 
 
 
 
 
 
 
 
Maturity date on revolving credit facility
 
 
 
 
 
Jul. 27, 2015 
 
 
 
 
 
 
 
Additional borrowing capacity on revolving credit facility
 
 
 
 
 
75,000,000 
 
 
 
 
 
 
 
Amount outstanding on revolving credit facility
 
 
 
 
 
206,400,000 
284,400,000 
 
 
 
 
 
 
Outstanding letters of credit on revolving credit facility
 
 
 
 
 
100,000 
100,000 
 
 
 
 
 
 
Unused borrowing capacity on revolving credit facility
 
 
 
 
 
268,500,000 
190,500,000 
 
 
 
 
 
 
Early repayment of debt
 
 
 
 
 
 
 
35,000,000 
114,700,000 
 
 
 
 
Number of debt instruments repaid
 
 
 
 
 
 
 
 
2 
 
 
 
 
Current interest rate (in hundredths)
 
 
 
 
 
 
 
 
5.75% 
 
 
 
 
Debt instrument maturity date
 
 
 
 
 
 
 
Feb. 28, 2016 
Dec. 01, 2013 
 
 
 
 
Principal amount of debt
 
 
 
 
 
 
 
200,000,000 
 
 
 
 
 
Loss on extinguishment of debt
$ (32,000)
$ 0 
$ (196,000)
$ (973,000)
 
 
 
$ (200,000)
$ (100,000)
 
 
 
 
Derivative Financial Instruments (Details) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Derivative Instruments and Hedging Activities Disclosure [Abstract]
 
 
 
 
 
Expected increase to interest expense
$ 3,300,000 
 
$ 3,300,000 
 
 
Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities [Abstract]
 
 
 
 
 
Interest rate swaps
2,047,000 
 
2,047,000 
 
9,369,000 
Amount of unrealized gains/(losses) recognized in AOCL on derivatives (effective portion) [Abstract]
 
 
 
 
 
Interest rate swaps
(1,798,000)
(3,337,000)
4,801,000 
(10,424,000)
 
Amount of (gains)/losses reclassified out of AOCL into contractual interest expense (effective portion) [Abstract]
 
 
 
 
 
Interest rate swaps
$ 840,000 
$ 791,000 
$ 2,428,000 
$ 2,250,000 
 
Noncontrolling Interests (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Noncontrolling Interests in the Operating Partnership [Roll Forward]
 
 
 
 
Beginning noncontrolling interests in the Operating Partnership
 
 
$ 124,869 
 
Adjustment of noncontrolling interests in the Operating Partnership to fair value
 
 
8,570 
12,485 
Conversions of Common Units to Common Stock
 
 
(28,788)
(731)
Net income attributable to noncontrolling interests in the Operating Partnership
1,889 
1,653 
3,713 
3,166 
Distributions to noncontrolling interests in the Operating Partnership
 
 
4,416 
4,733 
Total noncontrolling interests in the Operating Partnership
103,948 
 
103,948 
 
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership [Abstract]
 
 
 
 
Net income available for common stockholders
53,349 
33,357 
93,220 
63,013 
Noncontrolling Interests in Consolidated Affiliates [Abstract]
 
 
 
 
Consolidated joint venture, partner's interest (in hundredths)
50.00% 
 
50.00% 
 
Highwoods Properties, Inc. [Member]
 
 
 
 
Noncontrolling Interests in the Operating Partnership [Roll Forward]
 
 
 
 
Beginning noncontrolling interests in the Operating Partnership
 
 
124,869 
110,655 
Adjustment of noncontrolling interests in the Operating Partnership to fair value
 
 
8,570 
12,485 
Issuances of Common Units
 
 
0 
2,299 
Conversions of Common Units to Common Stock
 
 
(28,788)
(731)
Net income attributable to noncontrolling interests in the Operating Partnership
 
 
3,713 
3,166 
Distributions to noncontrolling interests in the Operating Partnership
 
 
(4,416)
(4,733)
Total noncontrolling interests in the Operating Partnership
103,948 
123,141 
103,948 
123,141 
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership [Abstract]
 
 
 
 
Net income available for common stockholders
53,349 
33,357 
93,220 
63,013 
Increase in additional paid in capital from conversions of Common Units to Common Stock
25,937 
100 
28,788 
731 
Issuance of Common Units
0 
(2,299)
0 
(2,299)
Change from net income available for common stockholders and transfers from noncontrolling interests
$ 79,286 
$ 31,158 
$ 122,008 
$ 61,445 
Disclosure About Fair Value of Financial Instruments - Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Assets:
 
 
Mortgages and notes receivable, at fair value
$ 26,409 1
$ 24,725 1
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
3,753 
3,354 
Tax increment financing bond (in prepaid expenses and other assets)
14,330 
14,496 
Total Assets
44,492 
42,575 
Liabilities:
 
 
Mortgages and notes payable, at fair value
2,136,107 1
1,987,364 1
Interest rate swaps (in accounts payable, accrued expenses and other liabilities)
2,047 
9,369 
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
3,753 
3,354 
Contingent consideration to acquire real estate assets (in accounts payable, accrued expenses and other liabilities)
191 
563 
Financing obligations, at fair value
24,211 1
23,252 1
Total Liabilities
2,166,309 
2,023,902 
Level 1 [Member]
 
 
Assets:
 
 
Mortgages and notes receivable, at fair value
0 
0 
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
3,753 
3,354 
Tax increment financing bond (in prepaid expenses and other assets)
0 
0 
Total Assets
3,753 
3,354 
Liabilities:
 
 
Mortgages and notes payable, at fair value
0 
0 
Interest rate swaps (in accounts payable, accrued expenses and other liabilities)
0 
0 
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
3,753 
3,354 
Contingent consideration to acquire real estate assets (in accounts payable, accrued expenses and other liabilities)
0 
0 
Financing obligations, at fair value
0 
0 
Total Liabilities
3,753 
3,354 
Level 2 [Member]
 
 
Assets:
 
 
Mortgages and notes receivable, at fair value
17,169 
16,077 
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
0 
0 
Tax increment financing bond (in prepaid expenses and other assets)
0 
0 
Total Assets
17,169 
16,077 
Liabilities:
 
 
Mortgages and notes payable, at fair value
2,136,107 
1,987,364 
Interest rate swaps (in accounts payable, accrued expenses and other liabilities)
2,047 
9,369 
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
0 
0 
Contingent consideration to acquire real estate assets (in accounts payable, accrued expenses and other liabilities)
0 
0 
Financing obligations, at fair value
0 
0 
Total Liabilities
2,138,154 
1,996,733 
Level 3 [Member]
 
 
Assets:
 
 
Mortgages and notes receivable, at fair value
9,240 
8,648 
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
0 
0 
Tax increment financing bond (in prepaid expenses and other assets)
14,330 
14,496 
Total Assets
23,570 
23,144 
Liabilities:
 
 
Mortgages and notes payable, at fair value
0 
0 
Interest rate swaps (in accounts payable, accrued expenses and other liabilities)
0 
0 
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
0 
0 
Contingent consideration to acquire real estate assets (in accounts payable, accrued expenses and other liabilities)
191 
563 
Financing obligations, at fair value
24,211 
23,252 
Total Liabilities
24,402 
23,815 
Highwoods Properties, Inc. [Member]
 
 
Assets:
 
 
Noncontrolling Interests in the Operating Partnership
103,948 
124,869 
Highwoods Properties, Inc. [Member] |
Level 1 [Member]
 
 
Assets:
 
 
Noncontrolling Interests in the Operating Partnership
103,948 
124,869 
Highwoods Properties, Inc. [Member] |
Level 2 [Member]
 
 
Assets:
 
 
Noncontrolling Interests in the Operating Partnership
0 
0 
Highwoods Properties, Inc. [Member] |
Level 3 [Member]
 
 
Assets:
 
 
Noncontrolling Interests in the Operating Partnership
$ 0 
$ 0 
Disclosure About Fair Value of Financial Instruments - Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Unrealized gains (in AOCL)
 
 
$ 396,000 
$ 482,000 
Contingent Consideration to Acquire Real Estate Assets [Member]
 
 
 
 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Beginning balance
384,000 
677,000 
563,000 
677,000 
Unrealized gains (in general and administrative)
(193,000)
(114,000)
(372,000)
(114,000)
Ending balance
191,000 
563,000 
191,000 
563,000 
Fair value of Level 3 liability
191,000 
563,000 
191,000 
563,000 
Payout percentage (in hundredths)
 
 
25.00% 
 
Tax Increment Financing Bond [Member]
 
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Beginning balance
14,233,000 
15,371,000 
14,496,000 
14,788,000 
Principal repayment
0 
0 
(562,000)
0 
Unrealized gains (in AOCL)
97,000 
(101,000)
396,000 
482,000 
Ending balance
14,330,000 
15,270,000 
14,330,000 
15,270,000 
Maturity date
Dec. 20, 2020 
 
 
 
Amount by which outstanding principal amount exceeds estimated fair value
1,500,000 
 
 
 
Change in discount rate (in hundredths)
1.00% 
 
 
 
Fair value of Level 3 asset
14,330,000 
15,270,000 
14,330,000 
15,270,000 
Discount rate (in hundredths)
 
 
10.80% 
 
Tax Increment Financing Bond [Member] |
Minimum [Member]
 
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Change in fair value of bond if discount rate changes
400,000 
 
400,000 
 
Tax Increment Financing Bond [Member] |
Maximum [Member]
 
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Change in fair value of bond if discount rate changes
$ 500,000 
 
$ 500,000 
 
Share-Based Payments (Details) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Stock-based compensation expense
$ 1,153,000 
$ 2,005,000 
$ 5,896,000 
$ 6,464,000 
Total unrecognized stock-based compensation costs
$ 5,000,000 
 
$ 5,000,000 
 
Weighted average remaining contractual term for recognition of unrecognized stock-based compensation costs (in years)
 
 
2 years 4 months 25 days 
 
Highwoods Properties, Inc. [Member] |
Stock Options [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Stock options granted
 
 
168,700 
 
Weighted average grant date fair value of each stock option granted (in dollars per option)
 
 
$ 6.50 
 
Highwoods Properties, Inc. [Member] |
Time-Based Restricted Stock [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Restricted stock shares granted
 
 
86,144 
 
Weighted average grant date fair value of each restricted stock granted (in dollars per share)
 
 
$ 36.64 
 
Highwoods Properties, Inc. [Member] |
Total Return-Based Restricted Stock [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Restricted stock shares granted
 
 
65,486 
 
Weighted average grant date fair value of each restricted stock granted (in dollars per share)
 
 
$ 31.73 
 
Accumulated Other Comprehensive Loss (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2013
Dec. 31, 2012
Sep. 30, 2012
Sep. 30, 2013
Tax Increment Financing Bond [Member]
Sep. 30, 2012
Tax Increment Financing Bond [Member]
Sep. 30, 2013
Tax Increment Financing Bond [Member]
Sep. 30, 2012
Tax Increment Financing Bond [Member]
Sep. 30, 2013
Cash Flow Hedges [Member]
Sep. 30, 2012
Cash Flow Hedges [Member]
Sep. 30, 2013
Cash Flow Hedges [Member]
Sep. 30, 2012
Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income (Loss) Calculation [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$ (5,003)
$ (12,628)
$ (13,426)
$ (1,599)
$ (1,726)
$ (1,898)
$ (2,309)
$ (2,543)
$ (9,053)
$ (10,730)
$ (3,425)
Unrealized gains/(losses)
 
 
 
97 
(101)
396 
482 
(1,798)
(3,337)
4,801 
(10,424)
Amortization reclassified out of AOCL
 
 
 
 
 
 
 
840 
791 
2,428 
2,250 
Ending balance
(5,003)
(12,628)
(13,426)
(1,502)
(1,827)
(1,502)
(1,827)
(3,501)
(11,599)
(3,501)
(11,599)
Total accumulated other comprehensive loss
$ (5,003)
$ (12,628)
$ (13,426)
$ (1,502)
$ (1,827)
$ (1,502)
$ (1,827)
$ (3,501)
$ (11,599)
$ (3,501)
$ (11,599)
Discontinued Operations (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Discontinued operations [Abstract]
 
 
 
 
 
Rental and other revenues
$ 2,810 
$ 5,671 
$ 10,398 
$ 24,211 
 
Operating expenses:
 
 
 
 
 
Rental property and other expenses
1,049 
1,622 
3,389 
7,796 
 
Depreciation and amortization
665 
1,610 
3,166 
7,108 
 
Total operating expenses
1,714 
3,232 
6,555 
14,904 
 
Interest expense
0 
35 
0 
283 
 
Income from discontinued operations
1,096 
2,404 
3,843 
9,024 
 
Impairment of real estate assets
0 
0 
(2,194)
0 
 
Net gains on disposition of discontinued operations
37,946 
22,936 
52,353 
29,455 
 
Total discontinued operations
39,042 
25,340 
54,002 
38,479 
 
Assets, held for sale [Abstract]
 
 
 
 
 
Land
1,948 
 
1,948 
 
28,598 
Buildings and tenant improvements
18,498 
 
18,498 
 
132,361 
Land held for development
0 
 
0 
 
2,368 
Less accumulated depreciation
(5,931)
 
(5,931)
 
(43,730)
Net real estate assets
14,515 
 
14,515 
 
119,597 
Accrued straight line rents receivable
1,187 
 
1,187 
 
5,759 
Deferred leasing costs, net
614 
 
614 
 
4,014 
Prepaid expenses and other assets
0 
 
0 
 
30 
Real estate and other assets, net, held for sale
$ 16,316 
 
$ 16,316 
 
$ 129,400 
Winston-Salem, NC Office Properties Disposition (9/2013) [Member]
 
 
 
 
 
Assets, held for sale [Abstract]
 
 
 
 
 
Number of office properties included in real estate and other assets, net, held for sale
4 
 
4 
 
4 
Atlanta, GA Industrial Properties/Land Disposition (9/2013) [Member]
 
 
 
 
 
Assets, held for sale [Abstract]
 
 
 
 
 
Number of industrial properties included in real estate and other assets, net, held for sale
 
 
 
 
29 
Orlando, FL Office Properties Disposition (3/2013) [Member]
 
 
 
 
 
Assets, held for sale [Abstract]
 
 
 
 
 
Number of office properties included in real estate and other assets, net, held for sale
 
 
 
 
2 
Earnings Per Share/Unit (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Numerator:
 
 
 
 
Income from continuing operations
$ 17,026 
$ 10,456 
$ 45,405 
$ 30,147 
Net (income) attributable to noncontrolling interests in the Operating Partnership from continuing operations
(503)
(459)
(1,684)
(1,335)
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(203)
(159)
(593)
(566)
Dividends on Preferred Stock
(627)
(627)
(1,881)
(1,881)
Income from continuing operations available for common stockholders
15,693 
9,211 
41,247 
26,365 
Income from discontinued operations
39,042 
25,340 
54,002 
38,479 
Net (income) attributable to noncontrolling interests in the Operating Partnership from discontinued operations
(1,386)
(1,194)
(2,029)
(1,831)
Income from discontinued operations available for common stockholders
37,656 
24,146 
51,973 
36,648 
Net income available for common stockholders
53,349 
33,357 
93,220 
63,013 
Denominator:
 
 
 
 
Denominator for basic earnings per Common Share - weighted average shares (in shares)
87,467,000 1 2
76,590,000 1 2
83,793,000 1 2
74,703,000 1 2
Earnings per Common Share - basic:
 
 
 
 
Income from continuing operations available for common stockholders (in dollars per share)
$ 0.18 
$ 0.12 
$ 0.49 
$ 0.35 
Income from discontinued operations available for common stockholders (in dollars per share)
$ 0.43 
$ 0.32 
$ 0.62 
$ 0.49 
Net income available for common stockholders (in dollars per share)
$ 0.61 
$ 0.44 
$ 1.11 
$ 0.84 
Numerator:
 
 
 
 
Income from continuing operations
17,026 
10,456 
45,405 
30,147 
Net (income) attributable to noncontrolling interests in consolidated affiliates
(203)
(159)
(593)
(566)
Dividends on Preferred Stock
(627)
(627)
(1,881)
(1,881)
Income from continuing operations available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
16,196 
9,670 
42,931 
27,700 
Income from discontinued operations available for common stockholders
39,042 
25,340 
54,002 
38,479 
Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
55,238 
35,010 
96,933 
66,179 
Denominator:
 
 
 
 
Denominator for basic earnings per Common Share - weighted average shares (in shares)
87,467,000 1 2
76,590,000 1 2
83,793,000 1 2
74,703,000 1 2
Stock options using the treasury method
101,000 
137,000 
114,000 
127,000 
Noncontrolling interests Common Units
3,201,000 
3,768,000 
3,536,000 
3,738,000 
Denominator for diluted earnings per Common Share - adjusted weighted average shares and assumed conversions (in shares) (1)
90,769,000 1
80,495,000 1
87,443,000 1
78,568,000 1
Earnings per Common Share - diluted:
 
 
 
 
Income from continuing operations available for common stockholders (in dollars per share)
$ 0.18 
$ 0.12 
$ 0.49 
$ 0.35 
Income from discontinued operations available for common stockholders (in dollars per share)
$ 0.43 
$ 0.31 
$ 0.62 
$ 0.49 
Net income available for common stockholders (in dollars per share)
$ 0.61 
$ 0.43 
$ 1.11 
$ 0.84 
Earnings per Common Unit - diluted:
 
 
 
 
Number of anti-dilutive options and warrants not included in earnings per share (in dollars per share)
300,000 
500,000 
300,000 
500,000 
Highwoods Realty Limited Partnership [Member]
 
 
 
 
Numerator:
 
 
 
 
Income from continuing operations
17,025 
10,460 
45,354 
30,156 
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(203)
(159)
(593)
(566)
Distributions on Preferred Units
(627)
(627)
(1,881)
(1,881)
Income from continuing operations available for common unitholders
16,195 
9,674 
42,880 
27,709 
Income from discontinued operations available for common unitholders
39,042 
25,340 
54,002 
38,479 
Net income available for common unitholders
55,237 
35,014 
96,882 
66,188 
Denominator:
 
 
 
 
Denominator for basic earnings per Common Unit - weighted average units (in shares)
90,259,000 2 3
79,949,000 2 3
86,920,000 2 3
78,032,000 2 3
Earnings per Common Unit - basic:
 
 
 
 
Income from continuing operations available for common unitholders (in dollars per share)
$ 0.18 
$ 0.12 
$ 0.49 
$ 0.36 
Income from discontinued operations available for common unitholders (in dollars per share)
$ 0.43 
$ 0.32 
$ 0.62 
$ 0.49 
Net income available for common unitholders (in dollars per share)
$ 0.61 
$ 0.44 
$ 1.11 
$ 0.85 
Numerator:
 
 
 
 
Income from continuing operations
17,025 
10,460 
45,354 
30,156 
Net (income) attributable to noncontrolling interests in consolidated affiliates
(203)
(159)
(593)
(566)
Distributions on Preferred Units
(627)
(627)
(1,881)
(1,881)
Income from continuing operations available for common unitholders
16,195 
9,674 
42,880 
27,709 
Income from discontinued operations available for common unitholders
39,042 
25,340 
54,002 
38,479 
Net income available for common unitholders
$ 55,237 
$ 35,014 
$ 96,882 
$ 66,188 
Denominator:
 
 
 
 
Denominator for basic earnings per Common Unit - weighted average units (in shares)
90,259,000 2 3
79,949,000 2 3
86,920,000 2 3
78,032,000 2 3
Stock options using the treasury method
101,000 
137,000 
114,000 
127,000 
Denominator for diluted earnings per Common Unit - adjusted weighted average units and assumed conversions (in shares)
90,360,000 3
80,086,000 3
87,034,000 3
78,159,000 3
Earnings per Common Unit - diluted:
 
 
 
 
Income from continuing operations available for common unitholders (in dollars per share)
$ 0.18 
$ 0.12 
$ 0.49 
$ 0.36 
Income from discontinued operations available for common unitholders (in dollars per share)
$ 0.43 
$ 0.32 
$ 0.62 
$ 0.49 
Net income available for common unitholders (in dollars per share)
$ 0.61 
$ 0.44 
$ 1.11 
$ 0.85 
Number of anti-dilutive options and warrants not included in earnings per share (in dollars per share)
300,000 
500,000 
300,000 
500,000 
Segment Information (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
$ 147,294 
$ 123,418 
$ 415,961 
$ 368,029 
Total Net Operating Income
91,929 
77,514 
264,159 
233,927 
Reconciliation to income from continuing operations before disposition of property and condominiums and acquisition of interest in and equity in earnings of unconsolidated affiliates:
 
 
 
 
Depreciation and amortization
(48,124)
(37,041)
(130,390)
(110,656)
General and administrative expenses
(8,969)
(9,725)
(27,948)
(28,298)
Interest expense
(23,672)
(23,612)
(70,826)
(72,661)
Other income
1,550 
1,916 
4,786 
4,910 
Income from continuing operations before disposition of property and condominiums and acquisition of controlling interest in and equity in earnings/(losses) of unconsolidated affiliates
12,714 
9,052 
39,781 
27,222 
Total Office Segment [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
134,522 1
110,902 1
378,108 1
330,854 1
Total Net Operating Income
83,804 1
69,521 1
239,990 1
210,450 1
Office Atlanta, GA [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
22,523 
13,704 
57,630 
43,220 
Total Net Operating Income
13,868 
8,408 
35,936 
27,346 
Office Greenville, SC [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
2,699 
3,296 
9,056 
10,286 
Total Net Operating Income
1,301 
1,806 
4,869 
5,986 
Office Kansas City, MO [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
4,064 
4,014 
12,067 
11,173 
Total Net Operating Income
2,597 
2,546 
7,796 
7,060 
Office Memphis, TN [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
9,644 
9,103 
28,680 
27,603 
Total Net Operating Income
5,408 
5,378 
16,337 
16,226 
Office Nashville, TN [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
15,147 
14,285 
43,411 
42,456 
Total Net Operating Income
10,311 
9,772 
30,028 
29,247 
Office Orlando, FL [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
8,441 
2,217 
12,894 
6,594 
Total Net Operating Income
4,950 
947 
7,099 
3,066 
Office Piedmont Triad, NC [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
6,792 
5,176 
19,932 
14,532 
Total Net Operating Income
4,373 
3,095 
12,823 
9,103 
Office Pittsburgh, PA [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
14,191 
9,482 
41,835 
27,671 
Total Net Operating Income
8,001 
4,949 
23,322 
13,851 
Office Raleigh, NC [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
21,737 
20,578 
64,124 
60,737 
Total Net Operating Income
14,920 
13,939 
45,226 
42,267 
Office Richmond, VA [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
12,006 
11,848 
35,639 
35,442 
Total Net Operating Income
7,910 
7,863 
24,267 
24,270 
Office Tampa, FL [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
17,278 
17,199 
52,840 
51,140 
Total Net Operating Income
10,165 
10,818 
32,287 
32,028 
Total Industrial Segment [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
3,208 1
3,330 1
9,862 1
9,999 1
Total Net Operating Income
2,309 1
2,356 1
7,158 1
7,195 1
Industrial Atlanta, GA [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
210 
189 
624 
610 
Total Net Operating Income
122 
100 
361 
347 
Industrial Piedmont Triad, NC [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
2,998 
3,141 
9,238 
9,389 
Total Net Operating Income
2,187 
2,256 
6,797 
6,848 
Total Retail Segment [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
9,564 1
9,186 1
27,991 1
27,176 1
Total Net Operating Income
5,837 1
5,676 1
17,066 1
16,525 1
Retail Kansas City, MO [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Rental and Other Revenues
9,564 
9,186 
27,991 
27,176 
Total Net Operating Income
5,837 
5,676 
17,066 
16,525 
Total Residential Segment [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Net Operating Income
0 1
(33)1
0 1
(178)1
Residential Raleigh, NC [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Net Operating Income
0 
(33)
0 
(178)
Corporate and Other [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Net Operating Income
$ (21)1
$ (6)1
$ (55)1
$ (65)1
Subsequent Events (Details) (USD $)
3 Months Ended 9 Months Ended 0 Months Ended 1 Months Ended 0 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Oct. 2, 2013
Atlanta, GA Office Property Dispositon (10/2013) [Member]
Oct. 24, 2013
Winston-Salem, NC Office Properties Disposition (9/2013) [Member]
property
Oct. 28, 2013
Winston-Salem, NC Office Property Disposition 2 (10/2013) [Member]
Oct. 2, 2013
5.74% to 5.89% Mortgage Loans Due 2014 [Member]
loans
Oct. 3, 2013
5.45% (5.12% effective rate) Mortgage Loan due 2014 [Member]
Sep. 30, 2013
Highwoods Properties, Inc. [Member]
Oct. 2, 2013
Highwoods Properties, Inc. [Member]
Board of Trade Investment Company [Member]
Subsequent Event [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Percentage of equity interest in joint venture not owned by Operating Partership
 
 
 
 
 
 
 
 
 
12.50% 
12.50% 
Early repayment of debt
 
 
 
 
 
 
 
$ 32,300,000 
$ 67,500,000 
 
 
Number of debt instruments repaid
 
 
 
 
 
 
 
4 
 
 
 
Current interest rate (in hundredths)
 
 
 
 
 
 
 
5.79% 
5.12% 
 
 
Debt instrument maturity date
 
 
 
 
 
 
 
Jan. 01, 2014 
Jan. 01, 2014 
 
 
Number of office properties sold
 
 
 
 
 
4 
 
 
 
 
 
Proceeds received from sale of real estate
 
 
 
 
13,800,000 
6,200,000 
5,300,000 
 
 
 
 
Gain/(loss) on disposition of discontinued operations
$ 37,946,000 
$ 22,936,000 
$ 52,353,000 
$ 29,455,000 
$ 3,000,000 
$ 126,000 
$ 2,500,000