HIGHWOODS PROPERTIES, INC., 10-Q filed on 8/2/2016
Quarterly Report
v3.5.0.2
Document and Entity Information Document - shares
 6 Months Ended
Jun. 30, 2016
Jul. 25, 2016
Entity Information [Line Items]    
Entity Registrant Name HIGHWOODS PROPERTIES INC.  
Entity Central Index Key 0000921082  
Current Fiscal Year End Date --12-31  
Entity Filer Category Large Accelerated Filer  
Document Type 10-Q  
Document Period End Date Jun. 30, 2016  
Document Fiscal Year Focus 2016  
Document Fiscal Period Focus Q2  
Amendment Flag false  
Entity Common Stock, Shares Outstanding   98,611,821
Entity Well-known Seasoned Issuer Yes  
Entity Voluntary Filers No  
Entity Current Reporting Status Yes  
Highwoods Realty Limited Partnership [Member]    
Entity Information [Line Items]    
Entity Registrant Name HIGHWOODS REALTY LIMITED PARTNERSHIP  
Entity Central Index Key 0000941713  
Current Fiscal Year End Date --12-31  
Entity Filer Category Non-accelerated Filer  
Document Type 10-Q  
Document Period End Date Jun. 30, 2016  
Document Fiscal Year Focus 2016  
Document Fiscal Period Focus Q2  
Amendment Flag false  
Entity Well-known Seasoned Issuer Yes  
Entity Voluntary Filers No  
Entity Current Reporting Status Yes  
v3.5.0.2
Consolidated Balance Sheets - USD ($)
$ in Thousands
Jun. 30, 2016
Dec. 31, 2015
Real estate assets, at cost:    
Land $ 448,212 $ 443,705
Buildings and tenant improvements 4,128,823 4,063,328
Development in-process 229,184 194,050
Land held for development 75,078 68,244
Total real estate assets 4,881,297 4,769,327
Less-accumulated depreciation (1,063,010) (1,007,104)
Net real estate assets 3,818,287 3,762,223
Real estate and other assets, net, held for sale 2,387 240,948
Cash and cash equivalents 2,444 5,036
Restricted cash 265,193 16,769
Accounts receivable, net of allowance of $850 and $928, respectively 26,671 29,077
Mortgages and notes receivable, net of allowance of $75 and $287, respectively 9,971 2,096
Accrued straight-line rents receivable, net of allowance of $483 and $257, respectively 162,573 150,392
Investments in and advances to unconsolidated affiliates 19,786 20,676
Deferred leasing costs, net of accumulated amortization of $129,252 and $115,172, respectively 217,042 231,765
Prepaid expenses and other assets, net of accumulated amortization of $19,260 and $17,830, respectively 40,008 26,649
Total Assets 4,564,362 4,485,631
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Liabilities, Redeemable Operating Partnership Units and Capital:    
Mortgages and notes payable, net 2,082,207 2,491,813
Accounts payable, accrued expenses and other liabilities 241,979 233,988
Liabilities held for sale 0 14,119
Total Liabilities 2,324,186 2,739,920
Commitments and contingencies
Noncontrolling interests in the Operating Partnership 151,400 126,429
Equity/Capital:    
Preferred Stock, $.01 par value, 50,000,000 authorized shares; 8.625% Series A Cumulative Redeemable Preferred Shares (liquidation preference $1,000 per share), 28,935 and 29,050 shares issued and outstanding, respectively 28,935 29,050
Common Stock, $.01 par value, 200,000,000 authorized shares; 98,570,974 and 96,091,932 shares issued and outstanding, respectively 986 961
Additional paid-in capital 2,693,755 2,598,242
Distributions in excess of net income available for common stockholders (640,969) (1,023,135)
Accumulated other comprehensive loss (11,628) (3,811)
Total Stockholders’ Equity 2,071,079 1,601,307
Noncontrolling interests in consolidated affiliates 17,697 17,975
Total Equity/Capital 2,088,776 1,619,282
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Capital 4,564,362 4,485,631
Highwoods Realty Limited Partnership [Member]    
Real estate assets, at cost:    
Land 448,212 443,705
Buildings and tenant improvements 4,128,823 4,063,328
Development in-process 229,184 194,050
Land held for development 75,078 68,244
Total real estate assets 4,881,297 4,769,327
Less-accumulated depreciation (1,063,010) (1,007,104)
Net real estate assets 3,818,287 3,762,223
Real estate and other assets, net, held for sale 2,387 240,948
Cash and cash equivalents 2,444 5,036
Restricted cash 265,193 16,769
Accounts receivable, net of allowance of $850 and $928, respectively 26,671 29,077
Mortgages and notes receivable, net of allowance of $75 and $287, respectively 9,971 2,096
Accrued straight-line rents receivable, net of allowance of $483 and $257, respectively 162,573 150,392
Investments in and advances to unconsolidated affiliates 19,786 20,676
Deferred leasing costs, net of accumulated amortization of $129,252 and $115,172, respectively 217,042 231,765
Prepaid expenses and other assets, net of accumulated amortization of $19,260 and $17,830, respectively 40,008 26,649
Total Assets 4,564,362 4,485,631
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Liabilities, Redeemable Operating Partnership Units and Capital:    
Mortgages and notes payable, net 2,082,207 2,491,813
Accounts payable, accrued expenses and other liabilities 241,979 233,988
Liabilities held for sale 0 14,119
Total Liabilities 2,324,186 2,739,920
Commitments and contingencies
Redeemable Operating Partnership Units:    
Common Units, 2,867,424 and 2,899,752 outstanding, respectively 151,400 126,429
Series A Preferred Units (liquidation preference $1,000 per unit), 28,935 and 29,050 units issued and outstanding, respectively 28,935 29,050
Total Redeemable Operating Partnership Units 180,335 155,479
Equity/Capital:    
General partner Common Units, 1,010,296 and 985,829 outstanding, respectively 20,537 15,759
Limited partner Common Units, 97,151,869 and 94,697,294 outstanding, respectively 2,033,235 1,560,309
Accumulated other comprehensive loss (11,628) (3,811)
Noncontrolling interests in consolidated affiliates 17,697 17,975
Total Equity/Capital 2,059,841 1,590,232
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity/Total Liabilities, Redeemable Operating Partnership Units and Capital $ 4,564,362 $ 4,485,631
v3.5.0.2
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2016
Dec. 31, 2015
Assets:    
Accounts receivable allowance $ 850 $ 928
Mortgages and notes receivable allowance 75 287
Accrued straight-line rents receivable allowance 483 257
Deferred leasing costs, accumulated amortization 129,252 115,172
Prepaid expenses and other assets, accumulated amortization $ 19,260 $ 17,830
Equity/Capital:    
Series A Preferred Stock, dividend rate percentage (in hundredths) 8.625% 8.625%
Series A Preferred Stock, par value (in dollars per share) $ 0.01 $ 0.01
Series A Preferred Stock, authorized shares (in shares) 50,000,000 50,000,000
Series A Preferred Stock, liquidation preference (in dollars per share) $ 1,000 $ 1,000
Series A Preferred Stock, shares issued (in shares) 28,935 29,050
Series A Preferred Stock, shares outstanding (in shares) 28,935 29,050
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) 98,570,974 96,091,932
Common Stock, shares outstanding (in shares) 98,570,974 96,091,932
Highwoods Realty Limited Partnership [Member]    
Assets:    
Accounts receivable allowance $ 850 $ 928
Mortgages and notes receivable allowance 75 287
Accrued straight-line rents receivable allowance 483 257
Deferred leasing costs, accumulated amortization 129,252 115,172
Prepaid expenses and other assets, accumulated amortization $ 19,260 $ 17,830
Redeemable Operating Partnership Units: [Abstract]    
Redeemable Common Units outstanding (in shares) 2,867,424 2,899,752
Series A Preferred Units, liquidation preference (in dollars per share) $ 1,000 $ 1,000
Series A Preferred Units, issued (in shares) 28,935 29,050
Series A Preferred Units, outstanding (in shares) 28,935 29,050
Common Units: [Abstract]    
General partners' capital account, units outstanding (in shares) 1,010,296 985,829
Limited partners' capital account, units outstanding (in shares) 97,151,869 94,697,294
v3.5.0.2
Consolidated Statements of Income - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Rental and other revenues $ 166,860 $ 148,543 $ 331,719 $ 293,779
Operating expenses:        
Rental property and other expenses 57,515 52,370 115,095 104,884
Depreciation and amortization 55,317 47,928 108,811 94,795
General and administrative 8,327 8,665 19,464 19,908
Total operating expenses 121,159 108,963 243,370 219,587
Interest expense:        
Contractual 18,674 20,857 38,389 41,299
Amortization of debt issuance costs 811 828 1,801 1,628
Financing obligation 0 162 0 162
Total interest expense 19,485 21,847 40,190 43,089
Other income:        
Interest and other income 534 520 1,051 1,102
Losses on debt extinguishment 0 (220) 0 (220)
Total other income 534 300 1,051 882
Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates 26,750 18,033 49,210 31,985
Gains on disposition of property 5,861 2,412 10,258 3,569
Equity in earnings of unconsolidated affiliates 917 1,776 2,202 3,587
Income from continuing operations 33,528 22,221 61,670 39,141
Discontinued operations:        
Income from discontinued operations 0 4,670 4,097 8,585
Net gains on disposition of discontinued operations 0 0 414,496 0
Total income from discontinued operations 0 4,670 418,593 8,585
Net income 33,528 26,891 480,263 47,726
Net (income) attributable to noncontrolling interests in the Operating Partnership (939) (782) (13,950) (1,378)
Net (income) attributable to noncontrolling interests in consolidated affiliates (314) (328) (622) (624)
Dividends on Preferred Stock (627) (626) (1,253) (1,253)
Net income available for common stockholders $ 31,648 $ 25,155 $ 464,438 $ 44,471
Earnings per Common Share – basic:        
Income from continuing operations available for common stockholders (in dollars per share) $ 0.32 $ 0.22 $ 0.60 $ 0.39
Income from discontinued operations available for common stockholders (in dollars per share) 0.00 0.05 4.19 0.08
Net income available for common stockholders (in dollars per share) $ 0.32 $ 0.27 $ 4.79 $ 0.47
Weighted average Common Shares outstanding - basic (in shares) 97,648 94,055 97,010 93,641
Earnings per Common Share - diluted:        
Income from continuing operations available for common stockholders (in dollars per share) $ 0.32 $ 0.22 $ 0.60 $ 0.39
Income from discontinued operations available for common stockholders (in dollars per share) 0.00 0.05 4.18 0.08
Net income available for common stockholders (in dollars per share) $ 0.32 $ 0.27 $ 4.78 $ 0.47
Weighted average Common Shares outstanding - diluted (in shares) [1] 100,628 97,049 99,992 96,666
Dividends declared per Common Share (in dollars per share) $ 0.425 $ 0.425 $ 0.85 $ 0.85
Net income available for common stockholders:        
Income from continuing operations available for common stockholders $ 31,648 $ 20,626 $ 58,110 $ 36,147
Income from discontinued operations available for common stockholders 0 4,529 406,328 8,324
Net income available for common stockholders 31,648 25,155 464,438 44,471
Highwoods Realty Limited Partnership [Member]        
Rental and other revenues 166,860 148,543 331,719 293,779
Operating expenses:        
Rental property and other expenses 57,515 52,370 115,095 104,884
Depreciation and amortization 55,317 47,928 108,811 94,795
General and administrative 8,327 8,665 19,464 19,908
Total operating expenses 121,159 108,963 243,370 219,587
Interest expense:        
Contractual 18,674 20,857 38,389 41,299
Amortization of debt issuance costs 811 828 1,801 1,628
Financing obligation 0 162 0 162
Total interest expense 19,485 21,847 40,190 43,089
Other income:        
Interest and other income 534 520 1,051 1,102
Losses on debt extinguishment 0 (220) 0 (220)
Total other income 534 300 1,051 882
Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates 26,750 18,033 49,210 31,985
Gains on disposition of property 5,861 2,412 10,258 3,569
Equity in earnings of unconsolidated affiliates 917 1,776 2,202 3,587
Income from continuing operations 33,528 22,221 61,670 39,141
Discontinued operations:        
Income from discontinued operations 0 4,670 4,097 8,585
Net gains on disposition of discontinued operations 0 0 414,496 0
Total income from discontinued operations 0 4,670 418,593 8,585
Net income 33,528 26,891 480,263 47,726
Net (income) attributable to noncontrolling interests in consolidated affiliates (314) (328) (622) (624)
Distributions on Preferred Units (627) (626) (1,253) (1,253)
Net income available for common unitholders $ 32,587 $ 25,937 $ 478,388 $ 45,849
Earnings per Common Unit - basic:        
Income from continuing operations available for common unitholders (in dollars per share) $ 0.33 $ 0.22 $ 0.60 $ 0.39
Income from discontinued operations available for common unitholders (in dollars per share) 0.00 0.05 4.21 0.09
Net income available for common unitholders (in dollars per share) $ 0.33 $ 0.27 $ 4.81 $ 0.48
Weighted average Common Units outstanding - basic (in shares) 100,129 96,556 99,496 96,153
Earnings per Common Unit - diluted:        
Income from continuing operations available for common unitholders (in dollars per share) $ 0.33 $ 0.22 $ 0.60 $ 0.39
Income from discontinued operations available for common unitholders (in dollars per share) 0.00 0.05 4.20 0.09
Net income available for common unitholders (in dollars per share) $ 0.33 $ 0.27 $ 4.80 $ 0.48
Weighted average Common Units outstanding - diluted (in shares) [2] 100,219 96,640 99,583 96,257
Distributions declared per Common Unit (in dollars per unit) $ 0.425 $ 0.425 $ 0.85 $ 0.85
Net income available for common unitholders:        
Income from continuing operations available for common unitholders $ 32,587 $ 21,267 $ 59,795 $ 37,264
Income from discontinued operations available for common unitholders 0 4,670 418,593 8,585
Net income available for common unitholders $ 32,587 $ 25,937 $ 478,388 $ 45,849
[1] Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable.
[2] Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable.
v3.5.0.2
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Comprehensive income:        
Net income $ 33,528 $ 26,891 $ 480,263 $ 47,726
Other comprehensive income/(loss):        
Unrealized gains on tax increment financing bond 0 1 0 194
Unrealized gains/(losses) on cash flow hedges (5,760) 269 (9,395) (2,645)
Amortization of cash flow hedges 783 925 1,578 1,849
Total other comprehensive income/(loss) (4,977) 1,195 (7,817) (602)
Total comprehensive income 28,551 28,086 472,446 47,124
Less-comprehensive (income) attributable to noncontrolling interests (1,253) (1,110) (14,572) (2,002)
Comprehensive income attributable to common stockholders/Comprehensive income attributable to common unitholders 27,298 26,976 457,874 45,122
Highwoods Realty Limited Partnership [Member]        
Comprehensive income:        
Net income 33,528 26,891 480,263 47,726
Other comprehensive income/(loss):        
Unrealized gains on tax increment financing bond 0 1 0 194
Unrealized gains/(losses) on cash flow hedges (5,760) 269 (9,395) (2,645)
Amortization of cash flow hedges 783 925 1,578 1,849
Total other comprehensive income/(loss) (4,977) 1,195 (7,817) (602)
Total comprehensive income 28,551 28,086 472,446 47,124
Less-comprehensive (income) attributable to noncontrolling interests (314) (328) (622) (624)
Comprehensive income attributable to common stockholders/Comprehensive income attributable to common unitholders $ 28,237 $ 27,758 $ 471,824 $ 46,500
v3.5.0.2
Consolidated Statements of Equity/Capital - USD ($)
$ in Thousands
Total
Highwoods Realty Limited Partnership [Member]
Common Stock [Member]
Series A Cumulative Redeemable Preferred Shares [Member]
General Partners' Common Units [Member]
Highwoods Realty Limited Partnership [Member]
Limited Partners' Common Units [Member]
Highwoods Realty Limited Partnership [Member]
Additional Paid-in Capital [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Highwoods Realty Limited Partnership [Member]
Noncontrolling Interests in Consolidated Affiliates [Member]
Noncontrolling Interests in Consolidated Affiliates [Member]
Highwoods Realty Limited Partnership [Member]
Distributions in Excess of Net Income Available for Common Stockholders [Member]
Balance (in shares) at Dec. 31, 2014     92,907,310                  
Balance at Dec. 31, 2014 $ 1,551,091 $ 1,522,223 $ 929 $ 29,060 $ 15,078 $ 1,492,948 $ 2,464,275 $ (3,912) $ (3,912) $ 18,109 $ 18,109 $ (957,370)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                        
Issuances of Common Units, net of issuance costs and tax withholdings   43,216     432 42,784     0   0  
Distributions paid on Common Units   (81,663)     (817) (80,846)     0   0  
Distributions paid on Preferred Units   (1,253)     (13) (1,240)     0   0  
Issuances of Common Stock, net of issuance costs and tax withholdings - Shares     1,055,491                  
Issuances of Common Stock, net of issuance costs and tax withholdings 43,216   $ 11 0     43,205 0   0   0
Conversions of Common Units to Common Stock - Shares     26,820                  
Conversions of Common Units to Common Stock 1,206   $ 0 0     1,206 0   0   0
Dividends on Common Stock (79,526)   0 0     0 0   0   (79,526)
Dividends on Preferred Stock (1,253)   0 0     0 0   0   (1,253)
Adjustment of noncontrolling interests in the Operating Partnership to fair value 11,475   0 0     11,475 0   0   0
Distributions to noncontrolling interests in consolidated affiliates (751) (751) $ 0 0 0 0 0 0 0 (751) (751) 0
Issuances of restricted stock - shares     128,951                  
Issuances of restricted stock 0   $ 0 0     0 0   0   0
Redemptions/repurchases of Preferred Stock (10)   $ 0 (10)     0 0   0   0
Share-based compensation expense, net of forfeitures - shares     (566)                  
Share-based compensation expense, net of forfeitures 5,067 5,067 $ 1 0 51 5,016 5,066 0 0 0 0 0
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner   13,248     133 13,115     0   0  
Net (income) attributable to noncontrolling interests in the Operating Partnership (1,378)   0 0     0 0   0   (1,378)
Net (income) attributable to noncontrolling interests in consolidated affiliates 0 0 0 0 (6) (618) 0 0 0 624 624 (624)
Comprehensive income:                        
Net income 47,726 47,726 0 0 477 47,249 0 0 0 0 0 47,726
Other comprehensive loss (602) (602) $ 0 0 0 0 0 (602) (602) 0 0 0
Total comprehensive income 47,124 47,124                    
Balance (in shares) at Jun. 30, 2015     94,118,006                  
Balance at Jun. 30, 2015 $ 1,576,261 1,547,211 $ 941 29,050 15,335 1,518,408 2,525,227 (4,514) (4,514) 17,982 17,982 (992,425)
Balance (in shares) at Dec. 31, 2015 96,091,932   96,091,932                  
Balance at Dec. 31, 2015 $ 1,619,282 1,590,232 $ 961 29,050 15,759 1,560,309 2,598,242 (3,811) (3,811) 17,975 17,975 (1,023,135)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                        
Issuances of Common Units, net of issuance costs and tax withholdings   104,472     1,045 103,427     0   0  
Distributions paid on Common Units   (84,387)     (844) (83,543)     0   0  
Distributions paid on Preferred Units   (1,253)     (13) (1,240)     0   0  
Issuances of Common Stock, net of issuance costs and tax withholdings - Shares     2,324,850                  
Issuances of Common Stock, net of issuance costs and tax withholdings 104,472   $ 23 0     104,449 0   0   0
Conversions of Common Units to Common Stock - Shares     32,328                  
Conversions of Common Units to Common Stock 1,558   $ 0 0     1,558 0   0   0
Dividends on Common Stock (82,272)   0 0     0 0   0   (82,272)
Dividends on Preferred Stock (1,253)   0 0     0 0   0   (1,253)
Adjustment of noncontrolling interests in the Operating Partnership to fair value (15,042)   0 0     (15,042) 0   0   0
Distributions to noncontrolling interests in consolidated affiliates (900) (900) $ 0 0 0 0 0 0 0 (900) (900) 0
Issuances of restricted stock - shares     130,752                  
Issuances of restricted stock 0   $ 0 0     0 0   0   0
Redemptions/repurchases of Preferred Stock (115)   $ 0 (115)     0 0   0   0
Share-based compensation expense, net of forfeitures - shares     (8,888)                  
Share-based compensation expense, net of forfeitures 4,550 4,550 $ 2 0 46 4,504 4,548 0 0 0 0 0
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner   (25,319)     (253) (25,066)     0   0  
Net (income) attributable to noncontrolling interests in the Operating Partnership (13,950)   0 0     0 0   0   (13,950)
Net (income) attributable to noncontrolling interests in consolidated affiliates 0 0 0 0 (6) (616) 0 0 0 622 622 (622)
Comprehensive income:                        
Net income 480,263 480,263 0 0 4,803 475,460 0 0 0 0 0 480,263
Other comprehensive loss (7,817) (7,817) $ 0 0 0 0 0 (7,817) (7,817) 0 0 0
Total comprehensive income $ 472,446 472,446                    
Balance (in shares) at Jun. 30, 2016 98,570,974   98,570,974                  
Balance at Jun. 30, 2016 $ 2,088,776 $ 2,059,841 $ 986 $ 28,935 $ 20,537 $ 2,033,235 $ 2,693,755 $ (11,628) $ (11,628) $ 17,697 $ 17,697 $ (640,969)
v3.5.0.2
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Operating activities:    
Net income $ 480,263 $ 47,726
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 108,811 101,548
Amortization of lease incentives and acquisition-related intangible assets and liabilities (1,179) 9
Share-based compensation expense 4,550 5,067
Allowance for losses on accounts and accrued straight-line rents receivable 1,218 1,174
Accrued interest on mortgages and notes receivable (212) (268)
Amortization of debt issuance costs 1,801 1,628
Amortization of cash flow hedges 1,578 1,849
Amortization of mortgages and notes payable fair value adjustments (116) 84
Losses on debt extinguishment 0 220
Net gains on disposition of property (424,754) (3,569)
Equity in earnings of unconsolidated affiliates (2,202) (3,587)
Changes in financing obligation 0 162
Distributions of earnings from unconsolidated affiliates 1,095 3,438
Changes in operating assets and liabilities:    
Accounts receivable (181) 1,723
Prepaid expenses and other assets (5,297) (4,365)
Accrued straight-line rents receivable (13,600) (11,417)
Accounts payable, accrued expenses and other liabilities (13,970) (19,127)
Net cash provided by operating activities 137,805 122,295
Investing activities:    
Investments in acquired real estate and related intangible assets, net of cash acquired (9,058) (4,277)
Investments in development in-process (74,668) (44,601)
Investments in tenant improvements and deferred leasing costs (42,954) (61,282)
Investments in building improvements (31,677) (23,513)
Net proceeds from disposition of real estate assets 675,003 6,070
Distributions of capital from unconsolidated affiliates 2,118 10,077
Investments in mortgages and notes receivable (7,818) (1,772)
Repayments of mortgages and notes receivable 155 9,221
Investments in and advances to unconsolidated affiliates (105) 0
Changes in restricted cash and other investing activities (257,181) (6,741)
Net cash provided by/(used in) investing activities 253,815 (116,818)
Financing activities:    
Dividends on Common Stock (82,272) (79,526)
Redemptions/repurchases of Preferred Stock (115) (10)
Dividends on Preferred Stock (1,253) (1,253)
Distributions to noncontrolling interests in the Operating Partnership (2,463) (2,485)
Distributions to noncontrolling interests in consolidated affiliates (900) (751)
Proceeds from the issuance of Common Stock 110,158 47,678
Costs paid for the issuance of Common Stock (1,629) (735)
Repurchase of shares related to tax withholdings (4,057) (3,727)
Borrowings on revolving credit facility 153,800 183,900
Repayments of revolving credit facility (169,800) (233,900)
Borrowings on mortgages and notes payable 0 125,000
Repayments of mortgages and notes payable (394,738) (41,887)
Payments on financing obligation 0 (162)
Changes in debt issuance costs and other financing activities (943) (1,512)
Net cash used in financing activities (394,212) (9,370)
Net decrease in cash and cash equivalents (2,592) (3,893)
Cash and cash equivalents at beginning of the period 5,036 8,832
Cash and cash equivalents at end of the period 2,444 4,939
Supplemental disclosure of cash flow information:    
Cash paid for interest, net of amounts capitalized 38,222 40,540
Supplemental disclosure of non-cash investing and financing activities:    
Unrealized losses on cash flow hedges (9,395) (2,645)
Conversions of Common Units to Common Stock 1,558 1,206
Changes in accrued capital expenditures 9,227 (3,250)
Write-off of fully depreciated real estate assets 21,948 31,011
Write-off of fully amortized debt issuance and leasing costs 11,690 17,812
Adjustment of noncontrolling interests in the Operating Partnership to fair value 15,042 (11,475)
Unrealized gains on tax increment financing bond 0 194
Assumption of mortgages and notes payable related to acquisition activities 0 19,277
Contingent consideration in connection with the acquisition of land 0 900
Highwoods Realty Limited Partnership [Member]    
Operating activities:    
Net income 480,263 47,726
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 108,811 101,548
Amortization of lease incentives and acquisition-related intangible assets and liabilities (1,179) 9
Share-based compensation expense 4,550 5,067
Allowance for losses on accounts and accrued straight-line rents receivable 1,218 1,174
Accrued interest on mortgages and notes receivable (212) (268)
Amortization of debt issuance costs 1,801 1,628
Amortization of cash flow hedges 1,578 1,849
Amortization of mortgages and notes payable fair value adjustments (116) 84
Losses on debt extinguishment 0 220
Net gains on disposition of property (424,754) (3,569)
Equity in earnings of unconsolidated affiliates (2,202) (3,587)
Changes in financing obligation 0 162
Distributions of earnings from unconsolidated affiliates 1,095 3,438
Changes in operating assets and liabilities:    
Accounts receivable (181) 1,723
Prepaid expenses and other assets (5,297) (4,365)
Accrued straight-line rents receivable (13,600) (11,417)
Accounts payable, accrued expenses and other liabilities (13,970) (19,041)
Net cash provided by operating activities 137,805 122,381
Investing activities:    
Investments in acquired real estate and related intangible assets, net of cash acquired (9,058) (4,277)
Investments in development in-process (74,668) (44,601)
Investments in tenant improvements and deferred leasing costs (42,954) (61,282)
Investments in building improvements (31,677) (23,513)
Net proceeds from disposition of real estate assets 675,003 6,070
Distributions of capital from unconsolidated affiliates 2,118 10,077
Investments in mortgages and notes receivable (7,818) (1,772)
Repayments of mortgages and notes receivable 155 9,221
Investments in and advances to unconsolidated affiliates (105) 0
Changes in restricted cash and other investing activities (257,181) (6,741)
Net cash provided by/(used in) investing activities 253,815 (116,818)
Financing activities:    
Distributions on Common Units (84,387) (81,663)
Redemptions/repurchases of Preferred Units (115) (10)
Distributions on Preferred Units (1,253) (1,253)
Distributions to noncontrolling interests in consolidated affiliates (900) (751)
Proceeds from the issuance of Common Units 110,158 47,678
Costs paid for the issuance of Common Units (1,629) (735)
Repurchase of units related to tax withholdings (4,057) (3,727)
Borrowings on revolving credit facility 153,800 183,900
Repayments of revolving credit facility (169,800) (233,900)
Borrowings on mortgages and notes payable 0 125,000
Repayments of mortgages and notes payable (394,738) (41,887)
Payments on financing obligation 0 (162)
Changes in debt issuance costs and other financing activities (1,291) (2,052)
Net cash used in financing activities (394,212) (9,562)
Net decrease in cash and cash equivalents (2,592) (3,999)
Cash and cash equivalents at beginning of the period 5,036 8,938
Cash and cash equivalents at end of the period 2,444 4,939
Supplemental disclosure of cash flow information:    
Cash paid for interest, net of amounts capitalized 38,222 40,540
Supplemental disclosure of non-cash investing and financing activities:    
Unrealized losses on cash flow hedges (9,395) (2,645)
Changes in accrued capital expenditures 9,227 (3,250)
Write-off of fully depreciated real estate assets 21,948 31,011
Write-off of fully amortized debt issuance and leasing costs 11,690 17,812
Adjustment of Redeemable Common Units to fair value 24,971 (13,788)
Unrealized gains on tax increment financing bond 0 194
Assumption of mortgages and notes payable related to acquisition activities 0 19,277
Contingent consideration in connection with the acquisition of land $ 0 $ 900
v3.5.0.2
Description of Business and Significant Accounting Policies
 6 Months Ended
Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business and Significant Accounting Policies
Description of Business and Significant Accounting Policies

Description of Business

Highwoods Properties, Inc. (the “Company”) is a fully integrated real estate investment trust (“REIT”) that provides leasing, management, development, construction and other customer-related services for its properties and for third parties. The Company conducts its activities through Highwoods Realty Limited Partnership (the “Operating Partnership”). At June 30, 2016, we owned or had an interest in 31.1 million rentable square feet of in-service properties, 1.1 million rentable square feet of properties under development and approximately 500 acres of development land.
 
The Company is the sole general partner of the Operating Partnership. At June 30, 2016, the Company owned all of the Preferred Units and 98.2 million, or 97.2%, of the Common Units in the Operating Partnership. Limited partners owned the remaining 2.9 million Common Units. During the six months ended June 30, 2016, the Company redeemed 32,328 Common Units for a like number of shares of Common Stock.

Common Stock Offerings
 
During the three and six months ended June 30, 2016, the Company issued 1,022,575 and 2,077,071 shares, respectively, of Common Stock under its equity distribution agreements at an average gross sales price of $48.90 and $47.36 per share, respectively, and received net proceeds, after sales commissions, of $49.3 million and $96.9 million, respectively. As a result of this activity and the redemptions discussed above, the percentage of Common Units owned by the Company increased from 97.1% at December 31, 2015 to 97.2% at June 30, 2016.

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 Statements of Income for the three and six months ended June 30, 2015 were retrospectively revised from previously reported amounts to reclassify 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. In addition, we consolidate those entities deemed to be variable interest entities in which we are determined to be the primary beneficiary. At June 30, 2016, we had involvement with, but are not the primary beneficiary in, an entity that we concluded to be a variable interest entity. All intercompany transactions and accounts have been eliminated.

The unaudited interim consolidated financial statements and accompanying unaudited consolidated financial information, in the opinion of management, contain all adjustments (including normal recurring accruals) necessary for a fair presentation of our financial position, results of operations and cash flows. We have condensed or omitted certain notes and other information from the interim Consolidated Financial Statements presented in this Quarterly Report as permitted by SEC rules and regulations. These Consolidated Financial Statements should be read in conjunction with our 2015 Annual Report on Form 10-K.


1.    Description of Business and Significant Accounting Policies – Continued

Use of Estimates

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

Recently Issued Accounting Standards

The Financial Accounting Standards Board ("FASB") recently issued an accounting standards update ("ASU") that requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that we identify the contract with the customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when we satisfy the performance obligations. We will also be required to disclose information regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The ASU is required to be adopted in 2018. Retrospective application is required either to all periods presented or with the cumulative effect of initial adoption recognized in the period of adoption. We are in the process of evaluating this ASU.
 
The FASB recently issued an ASU that amended consolidation requirements. The amendments significantly change the consolidation analysis required under GAAP and require companies to reevaluate all previous consolidation conclusions. We adopted the ASU as of January 1, 2016 and there was no impact to consolidated entities included in our Consolidated Financial Statements. However, in reevaluating our previous consolidation conclusions upon adoption of the ASU, we determined our 12.5% equity interest in an unconsolidated affiliate to be an interest in a variable interest entity because certain of its limited partners do not have substantive kick-out or participating rights. We do not qualify as the primary beneficiary since our obligation to absorb losses and receive benefits of the variable interest entity is less than that of the other general partner. Accordingly, the entity is not consolidated. At June 30, 2016, our maximum exposure to loss with respect to this arrangement is limited to the $1.6 million carrying value of our 12.5% investment in the unconsolidated affiliate.
 
The FASB recently issued an ASU that requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability to which they relate, consistent with debt discounts, as opposed to being presented as assets. For debt issuance costs related to revolving credit facilities, the FASB allows the presentation of debt issuance costs as an asset. We adopted the ASU as of January 1, 2016 with retrospective application to our December 31, 2015 Consolidated Balance Sheets. The effect of the adoption was to reclassify debt issuance costs from deferred financing and leasing costs, net of accumulated amortization, as follows: $7.8 million to a contra account as a deduction from the related mortgages and notes payable and $2.1 million to prepaid expenses and other assets. There was no effect on our Consolidated Statements of Income.

The FASB recently issued an ASU which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors.  The ASU requires lessors to account for leases using an approach that is substantially equivalent to the existing guidance and is effective for reporting periods beginning after December 15, 2018 with early adoption permitted.  We are in the process of evaluating this ASU.

The FASB recently issued an ASU that requires, among other things, the use of a new current expected credit loss ("CECL") model in determining our allowances for doubtful accounts with respect to accounts receivable, accrued straight-line rents receivable and mortgages and notes receivable. The CECL model requires that we estimate our lifetime expected credit loss with respect to these receivables and record allowances that, when deducted from the balance of the receivables, represent the net amounts expected to be collected. We will also be required to disclose information about how we developed the allowances, including changes in the factors (e.g., portfolio mix, credit trends, unemployment, gross domestic product, etc.) that influenced our estimate of expected credit losses and the reasons for those changes. We will apply the ASU’s provisions as a cumulative-effect adjustment to retained earnings upon adoption in 2020. We are in the process of evaluating this ASU.
v3.5.0.2
Real Estate Assets
 6 Months Ended
Jun. 30, 2016
Real Estate [Abstract]  
Real Estate Assets
Real Estate Assets
 
Acquisitions
 
During the second quarter of 2016, we acquired 14 acres of development land in Nashville, TN for a purchase price, including acquisition costs, of $9.1 million.
Dispositions
 
During the second quarter of 2016, we sold a building for a sale price of $14.2 million and recorded a gain on disposition of property of $5.9 million.
 
During the first quarter of 2016, we sold:
 
•
substantially all of our wholly-owned Country Club Plaza assets in Kansas City (which we refer to as the “Plaza assets”) for a sale price of $660.0 million (before closing credits to buyer of $4.8 million). We recorded gains on disposition of discontinued operations of $414.5 million and a gain on disposition of property of $1.3 million related to the land;
 
•
a 32,000 square foot building for a sale price of $4.7 million (before closing credits to buyer of $0.1 million) and recorded a gain on disposition of property of $1.1 million. The buyer, which leased 79% of the building, is a family business controlled by a director of the Company. The sale price exceeded the value set forth in an appraisal performed by a reputable independent commercial real estate services firm that has no relationship with the director or any of his affiliates; and
 
•
a building for a sale price of $6.4 million (before closing credits to buyer of $0.5 million) and recorded a gain on disposition of property of $2.0 million.
v3.5.0.2
Mortgages and Notes Receivable
 6 Months Ended
Jun. 30, 2016
Receivables [Abstract]  
Mortgages and Notes Receivable
Mortgages and Notes Receivable
Mortgages and notes receivable were $10.0 million and $2.1 million at June 30, 2016 and December 31, 2015, respectively. We evaluate the ability to collect our mortgages and notes receivable by monitoring the leasing statistics and/or market fundamentals of these assets. As of June 30, 2016, our mortgages and notes receivable were not in default and there were no other indicators of impairment.
v3.5.0.2
Investments In and Advances To Unconsolidated Affiliates
 6 Months Ended
Jun. 30, 2016
Equity Method Investments and Joint Ventures [Abstract]  
Investments In and Advances To Unconsolidated Affiliates
Investments in and Advances to Unconsolidated Affiliates

We have equity interests of up to 50.0% in various joint ventures with unrelated third parties that are accounted for using the equity method of accounting because we have the ability to exercise significant influence over their operating and financial policies.
 
The following table sets forth the summarized income statements of our unconsolidated affiliates:
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2016
 
2015
 
2016
 
2015
Income Statements:
 
 
 
 
 
 
 
Rental and other revenues
$
11,210

 
$
12,423

 
$
21,982

 
$
24,654

Expenses:
 
 
 
 
 
 
 
Rental property and other expenses
4,573

 
6,031

 
9,288

 
11,698

Depreciation and amortization
2,656

 
3,110

 
5,403

 
6,225

Interest expense
1,342

 
2,032

 
2,719

 
4,181

Total expenses
8,571

 
11,173

 
17,410

 
22,104

Income before disposition of property
2,639

 
1,250

 
4,572

 
2,550

Gains on disposition of property
—

 
16,054

 
902

 
18,181

Net income
$
2,639

 
$
17,304

 
$
5,474

 
$
20,731



4.    Investments in and Advances to Unconsolidated Affiliates - Continued

During the first quarter of 2016, Concourse Center Associates, LLC (a joint venture in which we own a 50.0% interest) sold two buildings and land to an unrelated third party for an aggregate sale price of $11.0 million and recorded losses on disposition of property of $0.1 million. As our cost basis was different from the basis reflected at the joint venture level, we recorded $0.4 million of gains through equity in earnings of unconsolidated affiliates. Simultaneously with the sale, the joint venture repaid all $6.6 million of its secured debt.

During the first quarter of 2016, 4600 Madison Associates, LP (a joint venture in which we own a 12.5% interest) sold land to an unrelated third party for a sale price of $3.4 million and recorded a gain on disposition of property of $1.0 million. We recorded $0.1 million as our share of this gain through equity in earnings of unconsolidated affiliates. Simultaneously with the sale, the joint venture used all of the proceeds to pay down $3.4 million on its secured mortgage loan with an effective interest rate of 6.85%.
v3.5.0.2
Intangible Assets and Below Market Lease Liabilities
 6 Months Ended
Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Below Market Lease Liabilities
Intangible Assets and Below Market Lease Liabilities
 
The following table sets forth total intangible assets and acquisition-related below market lease liabilities, net of accumulated amortization:
 
 
June 30,
2016
 
December 31,
2015
Assets:
 
 
 
Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets)
$
346,294

 
$
346,937

Less accumulated amortization
(129,252
)
 
(115,172
)
 
$
217,042

 
$
231,765

 
 
 
 
Liabilities (in accounts payable, accrued expenses and other liabilities):
 
 
 
Acquisition-related below market lease liabilities
$
63,400

 
$
63,830

Less accumulated amortization
(22,057
)
 
(17,927
)
 
$
41,343

 
$
45,903


The following table sets forth amortization of intangible assets and below market lease liabilities:
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2016
 
2015
 
2016
 
2015
Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization)
$
11,731

 
$
9,888

 
$
23,066

 
$
19,889

Amortization of lease incentives (in rental and other revenues)
$
390

 
$
412

 
$
1,101

 
$
763

Amortization of acquisition-related intangible assets (in rental and other revenues)
$
972

 
$
1,189

 
$
2,003

 
$
2,355

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

 
$
139

 
$
277

 
$
276

Amortization of acquisition-related below market lease liabilities (in rental and other revenues)
$
(2,788
)
 
$
(1,674
)
 
$
(4,560
)
 
$
(3,406
)

5.    Intangible Assets and Below Market Lease Liabilities - Continued

The following table sets forth scheduled future amortization of intangible assets and below market lease liabilities:
 
 
 
Amortization of Deferred Leasing Costs and Acquisition-Related Intangible Assets (in Depreciation and Amortization)
 
Amortization of Lease Incentives (in Rental and Other Revenues)
 
Amortization of Acquisition-Related Intangible Assets (in Rental and Other Revenues)
 
Amortization of Acquisition-Related Intangible Assets (in Rental Property and Other Expenses)
 
Amortization of Acquisition-Related Below Market Lease Liabilities (in Rental and Other Revenues)
July 1 through December 31, 2016
 
$
22,822

 
$
680

 
$
1,848

 
$
276

 
$
(3,520
)
2017
 
39,636

 
1,306

 
2,639

 
553

 
(6,207
)
2018
 
32,768

 
1,203

 
1,704

 
553

 
(6,014
)
2019
 
27,057

 
993

 
1,304

 
553

 
(5,524
)
2020
 
22,465

 
756

 
988

 
525

 
(5,196
)
Thereafter
 
51,660

 
2,193

 
2,560

 
—

 
(14,882
)
 
 
$
196,408

 
$
7,131

 
$
11,043

 
$
2,460

 
$
(41,343
)
Weighted average remaining amortization periods as of June 30, 2016 (in years)
 
6.6

 
7.2

 
6.2

 
4.5

 
7.6
v3.5.0.2
Mortgages and Notes Payable
 6 Months Ended
Jun. 30, 2016
Debt Disclosure [Abstract]  
Mortgages and Notes Payable
Mortgages and Notes Payable
 
The following table sets forth our mortgages and notes payable:
 
 
June 30,
2016
 
December 31,
2015
Secured indebtedness
$
130,001

 
$
175,281

Unsecured indebtedness
1,958,739

 
2,324,333

Less-unamortized debt issuance costs
(6,533
)
 
(7,801
)
Total mortgages and notes payable, net
$
2,082,207

 
$
2,491,813


 
At June 30, 2016, our secured mortgage loans were collateralized by real estate assets with an aggregate undepreciated book value of $244.6 million.
 
Our $475.0 million unsecured revolving credit facility is scheduled to mature in January 2018 and includes an accordion feature that allows for an additional $75.0 million of borrowing capacity subject to additional lender commitments. Assuming no defaults have occurred, we have an option to extend the maturity for two additional six-month periods. The interest rate at our current credit ratings is LIBOR plus 110 basis points and the annual facility fee is 20 basis points. There was $283.0 million and $272.0 million outstanding under our revolving credit facility at June 30, 2016 and July 25, 2016, respectively. At both June 30, 2016 and July 25, 2016, we had $0.2 million of outstanding letters of credit, which reduces the availability on our revolving credit facility. As a result, the unused capacity of our revolving credit facility at June 30, 2016 and July 25, 2016 was $191.8 million and $202.8 million, respectively.
 
During the second quarter of 2016, we prepaid without penalty the remaining $43.6 million balance on a secured mortgage loan with an effective interest rate of 7.5% that was originally scheduled to mature in August 2016.
 
During the second quarter of 2016, we executed a $150.0 million, 67-month unsecured term loan facility. The term loan facility is originally scheduled to mature in January 2022. The interest rate on the term loan facility at our current credit ratings is LIBOR plus 110 basis points. The purpose of the term loan facility is to repay amounts outstanding under our revolving credit facility and other general corporate purposes. There were no borrowings outstanding under our term loan facility at June 30, 2016 and July 25, 2016.
 
6.    Mortgages and Notes Payable - Continued
 
During the first quarter of 2016, we prepaid without penalty the $350.0 million balance on our unsecured bridge facility that was originally scheduled to mature in March 2016.
 
We are currently in compliance with financial covenants and other requirements with respect to our consolidated debt.
v3.5.0.2
Derivative Financial Instruments
 6 Months Ended
Jun. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments
Derivative Financial Instruments
 
During the first quarter of 2016, we obtained $150.0 million notional amount of forward-starting swaps that effectively lock the underlying 10-year treasury rate at 1.90% with respect to a forecasted debt issuance expected to occur prior to March 15, 2017. The counterparties under the swaps are major financial institutions.
 
Our interest rate swaps have been designated as and are being accounted for as cash flow hedges with changes in fair value recorded in other comprehensive income/(loss) each reporting period. No gain or loss was recognized related to hedge ineffectiveness or to amounts excluded from effectiveness testing on our cash flow hedges during the six months ended June 30, 2016 and 2015. We have no collateral requirements related to our interest rate swaps.
 
Amounts reported in accumulated other comprehensive loss ("AOCL") related to derivatives will be reclassified to interest expense as interest payments are made on our variable-rate debt. During the period from July 1, 2016 through June 30, 2017, we estimate that $4.0 million will be reclassified to interest expense.
 
The following table sets forth the fair value of our derivatives:
 
 
June 30,
2016
 
December 31,
2015
Derivatives:
 
 
 
Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities:
 
 
 
Interest rate swaps
$
11,049

 
$
3,073


 
The following table sets forth the effect of our cash flow hedges on AOCL and interest expense:
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2016
 
2015
 
2016
 
2015
Derivatives Designated as Cash Flow Hedges:
 
 
 
 
 
 
 
Amount of unrealized gains/(losses) recognized in AOCL on derivatives (effective portion):
 
 
 
 
 
 
 
Interest rate swaps
$
(5,760
)
 
$
269

 
$
(9,395
)
 
$
(2,645
)
Amount of losses reclassified out of AOCL into contractual interest expense (effective portion):
 
 
 
 
 
 
 
Interest rate swaps
$
783

 
$
925

 
$
1,578

 
$
1,849
v3.5.0.2
Noncontrolling Interests
 6 Months Ended
Jun. 30, 2016
Noncontrolling Interest [Abstract]  
Noncontrolling Interests
Noncontrolling Interests

Noncontrolling Interests in Consolidated Affiliates
 
At June 30, 2016, our noncontrolling interests in consolidated affiliates relate to our joint venture partner's 50.0% interest in office properties in Richmond, VA. Our joint venture partner is an unrelated third party.

Noncontrolling Interests in the Operating Partnership

The following table sets forth the Company's noncontrolling interests in the Operating Partnership:
 
 
Six Months Ended
June 30,
 
2016
 
2015
Beginning noncontrolling interests in the Operating Partnership
$
126,429

 
$
130,048

Adjustment of noncontrolling interests in the Operating Partnership to fair value
15,042

 
(11,475
)
Conversions of Common Units to Common Stock
(1,558
)
 
(1,206
)
Net income attributable to noncontrolling interests in the Operating Partnership
13,950

 
1,378

Distributions to noncontrolling interests in the Operating Partnership
(2,463
)
 
(2,485
)
Total noncontrolling interests in the Operating Partnership
$
151,400

 
$
116,260


The following table sets forth net income available for common stockholders and transfers from the Company's noncontrolling interests in the Operating Partnership:
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2016
 
2015
 
2016
 
2015
Net income available for common stockholders
$
31,648

 
$
25,155

 
$
464,438

 
$
44,471

Increase in additional paid in capital from conversions of Common Units
to Common Stock
1,558

 
—

 
1,558

 
1,206

Change from net income available for common stockholders and transfers from noncontrolling interests
$
33,206

 
$
25,155

 
$
465,996

 
$
45,677
v3.5.0.2
Disclosure About Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 2016
Fair Value Disclosures [Abstract]  
Disclosure About Fair Value of Financial Instruments
Disclosure About Fair Value of Financial Instruments

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

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

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

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

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

The fair value of mortgages and notes receivable and mortgages and notes payable is estimated by the income approach utilizing contractual cash flows and market-based interest rates to approximate the price that would be paid in an orderly transaction between market participants. The fair value of interest rate swaps is determined using the market standard methodology of netting the discounted future fixed cash receipts and the discounted expected variable cash payments. The variable cash payments of interest rate swaps are based on the expectation of future interest rates (forward curves) derived from observed market interest rate curves. In addition, credit valuation adjustments are considered in the fair values to account for potential nonperformance risk, but were concluded to not be significant inputs to the calculation for the periods presented.
 
Level 3. Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
 
Our Level 3 asset included our tax increment financing bond, which was not routinely traded but whose fair value was determined by the income approach utilizing contractual cash flows and market-based interest rates to estimate the projected redemption value based on quoted bid/ask prices for similar unrated municipal bonds.
 
Our Level 3 liability was the fair value of our financing obligation, which was estimated by the income approach to approximate the price that would be paid in an orderly transaction between market participants, utilizing: (1) contractual cash flows; (2) market-based interest rates; and (3) a number of other assumptions including demand for space, competition for customers, changes in market rental rates, costs of operation and expected ownership periods.


9.
Disclosure About Fair Value of Financial Instruments - Continued

The following table sets forth our assets and liabilities and the Company's noncontrolling interests in the Operating Partnership that are measured at fair value within the fair value hierarchy.
 
 
 
 
Level 1
 
Level 2
 
Level 3
 
 
Total
 
Quoted Prices
in Active
Markets for Identical Assets or Liabilities
 
Significant Observable Inputs
 
Significant Unobservable Inputs
Fair Value at June 30, 2016:
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
Mortgages and notes receivable, at fair value (1)
 
$
9,971

 
$
—

 
$
9,971

 
$
—

Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
 
2,572

 
2,572

 
—

 
—

Total Assets
 
$
12,543

 
$
2,572

 
$
9,971

 
$
—

Noncontrolling Interests in the Operating Partnership
 
$
151,400

 
$
151,400

 
$
—

 
$
—

Liabilities:
 
 
 
 
 
 
 
 
Mortgages and notes payable, net, at fair value (1)
 
$
2,120,627

 
$
—

 
$
2,120,627

 
$
—

Interest rate swaps (in accounts payable, accrued expenses and other liabilities)
 
11,049

 
—

 
11,049

 
—

Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
 
2,572

 
2,572

 
—

 
—

Total Liabilities
 
$
2,134,248

 
$
2,572

 
$
2,131,676

 
$
—

Fair Value at December 31, 2015:
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
Mortgages and notes receivable, at fair value (1)
 
$
2,096

 
$
—

 
$
2,096

 
$
—

Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
 
2,736

 
2,736

 
—

 
—

Tax increment financing bond (in real estate and other assets, net, held for sale) (2)
 
11,197

 
—

 
—

 
11,197

Total Assets
 
$
16,029

 
$
2,736

 
$
2,096

 
$
11,197

Noncontrolling Interests in the Operating Partnership
 
$
126,429

 
$
126,429

 
$
—

 
$
—

Liabilities:
 
 
 
 
 
 
 
 
Mortgages and notes payable, net, at fair value (1)
 
$
2,517,589

 
$
—

 
$
2,517,589

 
$
—

Interest rate swaps (in accounts payable, accrued expenses and other liabilities)
 
3,073

 
—

 
3,073

 
—

Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
 
2,736

 
2,736

 
—

 
—

Financing obligation, at fair value (in liabilities held for sale) (1) (2)
 
7,402

 
—

 
—

 
7,402

Total Liabilities
 
$
2,530,800

 
$
2,736

 
$
2,520,662

 
$
7,402


__________
(1)    Amounts recorded at historical cost on our Consolidated Balance Sheets at June 30, 2016 and December 31, 2015.
(2)    Sold during the first quarter of 2016 in conjunction with the sales of the Plaza assets.
9.
Disclosure About Fair Value of Financial Instruments - Continued

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

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2016
 
2015
 
2016
 
2015
Asset:
 
 
 
 
 
 
 
Tax Increment Financing Bond:
 
 
 
 
 
 
 
Beginning balance
$
—

 
$
12,640

 
$
11,197

 
$
12,447

Assigned to the buyer of the Plaza assets
—

 
—

 
(11,197
)
 
—

Unrealized gains (in AOCL)
—

 
1

 
—

 
194

Ending balance
$
—

 
$
12,641

 
$
—

 
$
12,641



During 2007, we acquired a tax increment financing bond associated with a parking garage developed by us, which was assigned in conjunction with the sales of the Plaza assets in the first quarter of 2016. The estimated fair value at the date of sale was equal to the outstanding principal amount due on the bond.
 
The following table sets forth quantitative information about the unobservable input of our Level 3 asset, which was recorded at fair value on our Consolidated Balance Sheets:
 
 
Valuation
Technique
 
Unobservable
Input
 
Rate as of
 
 
 
December 31,
2015
Asset:
 
 
 
 
 
Tax increment financing bond
Income approach
 
Discount rate
 
6.93%
v3.5.0.2
Share-Based Payments
 6 Months Ended
Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share-Based Payments
Share-Based Payments
 
During the six months ended June 30, 2016, the Company granted 244,664 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 $4.61. During the six months ended June 30, 2016, the Company also granted 72,698 shares of time-based restricted stock and 58,054 shares of total return-based restricted stock with weighted average grant date fair values per share of $43.59 and $41.37, respectively. We recorded share-based compensation expense of $1.0 million and $1.2 million during the three months ended June 30, 2016 and 2015, respectively, and $4.6 million and $5.1 million during the six months ended June 30, 2016 and 2015, respectively. At June 30, 2016, there was $6.8 million of total unrecognized share-based compensation costs, which will be recognized over a weighted average remaining contractual term of 2.6 years.
v3.5.0.2
Accumulated Other Comprehensive Loss
 6 Months Ended
Jun. 30, 2016
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss
 
The following table sets forth the components of AOCL:
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2016
 
2015
 
2016
 
2015
Tax increment financing bond:
 
 
 
 
 
 
 
Beginning balance
$
—

 
$
(252
)
 
$
—

 
$
(445
)
Unrealized gains on tax increment financing bond
—

 
1

 
—

 
194

Ending balance
—

 
(251
)
 
—

 
(251
)
Cash flow hedges:
 
 
 
 
 
 
 
Beginning balance
(6,651
)
 
(5,457
)
 
(3,811
)
 
(3,467
)
Unrealized gains/(losses) on cash flow hedges
(5,760
)
 
269

 
(9,395
)
 
(2,645
)
Amortization of cash flow hedges (1)
783

 
925

 
1,578

 
1,849

Ending balance
(11,628
)
 
(4,263
)
 
(11,628
)
 
(4,263
)
Total accumulated other comprehensive loss
$
(11,628
)

$
(4,514
)
 
$
(11,628
)
 
$
(4,514
)
__________
(1)    Amounts reclassified out of AOCL into contractual interest expense.
v3.5.0.2
Real Estate, Other Assets and Liabilities Held For Sale and Discontinued Operations
 6 Months Ended
Jun. 30, 2016
Discontinued Operations and Disposal Groups [Abstract]  
Real Estate, Other Assets and Liabilities Held For Sale and Discontinued Operations
Real Estate, Other Assets and Liabilities Held For Sale and Discontinued Operations

The following tables set forth the assets and liabilities related to discontinued operations at December 31, 2015, the results of operations for the three and six months ended June 30, 2016 and 2015 and cash flows for the six months ended June 30, 2016 and 2015 as well as assets held for sale at June 30, 2016:

 
June 30,
2016
 
December 31,
2015
Assets:
 
 
 
Land
$
—

 
$
16,681

Buildings and tenant improvements
—

 
322,811

Land held for development
2,230

 
1,089

Less-accumulated depreciation
—

 
(131,274
)
Net real estate assets
2,230

 
209,307

Accrued straight-line rents receivable, net
—

 
11,730

Deferred leasing costs, net
—

 
6,690

Prepaid expenses and other assets, net
157

 
13,221

Real estate and other assets, net, held for sale
$
2,387

 
$
240,948

Liabilities:
 
 
 
Accounts payable, accrued expenses and other liabilities
$
—

 
$
(6,717
)
Financing obligation
—

 
(7,402
)
Liabilities held for sale
$
—

 
$
(14,119
)


 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2016
 
2015
 
2016
 
2015
Rental and other revenues
$
—

 
$
12,593

 
$
8,484

 
$
24,667

Operating expenses:
 
 
 
 
 
 
 
Rental property and other expenses
—

 
4,908

 
3,334

 
9,907

Depreciation and amortization
—

 
3,312

 
—

 
6,753

General and administrative
—

 
227

 
1,388

 
421

Total operating expenses
—

 
8,447

 
4,722

 
17,081

Interest expense
—

 
155

 
85

 
336

Other income
—

 
679

 
420

 
1,335

Income from discontinued operations
—

 
4,670

 
4,097

 
8,585

Net gains on disposition of discontinued operations
—

 
—

 
414,496

 
—

Total income from discontinued operations
$
—

 
$
4,670

 
$
418,593

 
$
8,585



 
Six Months Ended
June 30,
 
2016
 
2015
Cash flows from operating activities
$
2,040

 
$
14,629

Cash flows from investing activities
$
417,097

 
$
(6,897
)
v3.5.0.2
Earnings Per Share and Per Unit
 6 Months Ended
Jun. 30, 2016
Earnings Per Share [Abstract]  
Earnings Per Share and Per Unit
Earnings Per Share and Per Unit

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

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2016
 
2015
 
2016
 
2015
Earnings per Common Share - basic:
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
33,528

 
$
22,221

 
$
61,670

 
$
39,141

Net (income) attributable to noncontrolling interests in the Operating Partnership from continuing operations
(939
)
 
(641
)
 
(1,685
)
 
(1,117
)
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(314
)
 
(328
)
 
(622
)
 
(624
)
Dividends on Preferred Stock
(627
)
 
(626
)
 
(1,253
)
 
(1,253
)
Income from continuing operations available for common stockholders
31,648

 
20,626

 
58,110

 
36,147

Income from discontinued operations
—

 
4,670

 
418,593

 
8,585

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

 
(141
)
 
(12,265
)
 
(261
)
Income from discontinued operations available for common stockholders
—

 
4,529

 
406,328

 
8,324

Net income available for common stockholders
$
31,648

 
$
25,155

 
$
464,438

 
$
44,471

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per Common Share – weighted average shares
97,648

 
94,055

 
97,010

 
93,641

Earnings per Common Share - basic:
 
 
 
 
 
 
 
Income from continuing operations available for common stockholders
$
0.32

 
$
0.22

 
$
0.60

 
$
0.39

Income from discontinued operations available for common stockholders
—

 
0.05

 
4.19

 
0.08

Net income available for common stockholders
$
0.32

 
$
0.27

 
$
4.79

 
$
0.47

Earnings per Common Share - diluted:
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
33,528

 
$
22,221

 
$
61,670

 
$
39,141

Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(314
)
 
(328
)
 
(622
)
 
(624
)
Dividends on Preferred Stock
(627
)
 
(626
)
 
(1,253
)
 
(1,253
)
Income from continuing operations available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
32,587

 
21,267

 
59,795

 
37,264

Income from discontinued operations available for common stockholders
—

 
4,670

 
418,593

 
8,585

Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
$
32,587

 
$
25,937

 
$
478,388

 
$
45,849

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per Common Share – weighted average shares
97,648

 
94,055

 
97,010

 
93,641

Add:
 
 
 
 
 
 
 
Stock options using the treasury method
90

 
84

 
87

 
104

Noncontrolling interests Common Units
2,890

 
2,910

 
2,895

 
2,921

Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions (1)
100,628

 
97,049

 
99,992

 
96,666

Earnings per Common Share - diluted:
 
 
 
 
 
 
 
Income from continuing operations available for common stockholders
$
0.32

 
$
0.22

 
$
0.60

 
$
0.39

Income from discontinued operations available for common stockholders
—

 
0.05

 
4.18

 
0.08

Net income available for common stockholders
$
0.32

 
$
0.27

 
$
4.78

 
$
0.47

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

13.
Earnings Per Share and Per Unit - Continued

The following table sets forth the computation of basic and diluted earnings per unit of the Operating Partnership:
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2016
 
2015
 
2016
 
2015
Earnings per Common Unit - basic:
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
33,528

 
$
22,221

 
$
61,670

 
$
39,141

Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(314
)
 
(328
)
 
(622
)
 
(624
)
Distributions on Preferred Units
(627
)
 
(626
)
 
(1,253
)
 
(1,253
)
Income from continuing operations available for common unitholders
32,587

 
21,267

 
59,795

 
37,264

Income from discontinued operations available for common unitholders
—

 
4,670

 
418,593

 
8,585

Net income available for common unitholders
$
32,587

 
$
25,937

 
$
478,388

 
$
45,849

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per Common Unit – weighted average units
100,129

 
96,556

 
99,496

 
96,153

Earnings per Common Unit - basic:
 
 
 
 
 
 
 
Income from continuing operations available for common unitholders
$
0.33

 
$
0.22

 
$
0.60

 
$
0.39

Income from discontinued operations available for common unitholders
—

 
0.05

 
4.21

 
0.09

Net income available for common unitholders
$
0.33

 
$
0.27

 
$
4.81

 
$
0.48

Earnings per Common Unit - diluted:
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
33,528

 
$
22,221

 
$
61,670

 
$
39,141

Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(314
)
 
(328
)
 
(622
)
 
(624
)
Distributions on Preferred Units
(627
)
 
(626
)
 
(1,253
)
 
(1,253
)
Income from continuing operations available for common unitholders
32,587

 
21,267

 
59,795

 
37,264

Income from discontinued operations available for common unitholders
—

 
4,670

 
418,593

 
8,585

Net income available for common unitholders
$
32,587

 
$
25,937

 
$
478,388

 
$
45,849

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per Common Unit – weighted average units
100,129

 
96,556

 
99,496

 
96,153

Add:
 
 
 
 
 
 
 
Stock options using the treasury method
90

 
84

 
87

 
104

Denominator for diluted earnings per Common Unit – adjusted weighted average units and assumed conversions (1)
100,219

 
96,640

 
99,583

 
96,257

Earnings per Common Unit - diluted:
 
 
 
 
 
 
 
Income from continuing operations available for common unitholders
$
0.33

 
$
0.22

 
$
0.60

 
$
0.39

Income from discontinued operations available for common unitholders
—

 
0.05

 
4.20

 
0.09

Net income available for common unitholders
$
0.33

 
$
0.27

 
$
4.80

 
$
0.48

__________
(1)
Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable.
v3.5.0.2
Segment Information
 6 Months Ended
Jun. 30, 2016
Segment Reporting [Abstract]  
Segment Information
Segment Information

The following tables summarize the rental and other revenues and net operating income, the primary industry property-level performance metric used by our chief operating decision maker which is defined as rental and other revenues less rental property and other expenses, for each of our reportable segments. Our segment information for the three and six months ended June 30, 2015 has been retrospectively revised from previously reported amounts to reflect a change in our reportable segments.

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2016
 
2015
 
2016
 
2015
Rental and Other Revenues:
 
 
 
 
 
 
 
Office:
 
 
 
 
 
 
 
Atlanta, GA
$
34,652

 
$
25,611

 
$
67,848

 
$
50,393

Greensboro, NC
5,037

 
5,398

 
10,184

 
10,838

Memphis, TN
11,931

 
12,050

 
23,945

 
23,784

Nashville, TN
24,415

 
21,770

 
47,781

 
43,586

Orlando, FL
11,197

 
10,948

 
22,682

 
21,782

Pittsburgh, PA
14,195

 
14,719

 
29,335

 
29,268

Raleigh, NC
28,024

 
25,541

 
56,246

 
48,982

Richmond, VA
10,937

 
10,203

 
22,006

 
20,787

Tampa, FL
22,814

 
18,602

 
44,252

 
37,029

Total Office Segment
163,202

 
144,842

 
324,279

 
286,449

Other
3,658

 
3,701

 
7,440

 
7,330

Total Rental and Other Revenues
$
166,860

 
$
148,543

 
$
331,719

 
$
293,779


14.
Segment Information - Continued

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2016
 
2015
 
2016
 
2015
Net Operating Income:
 
 
 
 
 
 
 
Office:
 
 
 
 
 
 
 
Atlanta, GA
$
21,911

 
$
15,663

 
$
42,963

 
$
31,030

Greensboro, NC
3,209

 
3,516

 
6,357

 
6,942

Memphis, TN
7,398

 
7,641

 
14,813

 
15,030

Nashville, TN
17,613

 
15,480

 
34,428

 
30,712

Orlando, FL
6,320

 
6,348

 
13,005

 
12,831

Pittsburgh, PA
8,108

 
8,670

 
16,711

 
16,632

Raleigh, NC
20,156

 
18,358

 
40,410

 
34,629

Richmond, VA
7,687

 
6,932

 
15,116

 
13,812

Tampa, FL
14,361

 
11,020

 
27,688

 
22,240

Total Office Segment
106,763

 
93,628

 
211,491

 
183,858

Other
2,582

 
2,545

 
5,133

 
5,037

Total Net Operating Income
109,345

 
96,173

 
216,624

 
188,895

Reconciliation to income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates:
 
 
 
 
 
 
 
Depreciation and amortization
(55,317
)
 
(47,928
)
 
(108,811
)
 
(94,795
)
General and administrative expenses
(8,327
)
 
(8,665
)
 
(19,464
)
 
(19,908
)
Interest expense
(19,485
)
 
(21,847
)
 
(40,190
)
 
(43,089
)
Other income
534

 
300

 
1,051

 
882

Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates
$
26,750

 
$
18,033

 
$
49,210

 
$
31,985
v3.5.0.2
Subsequent Events
 6 Months Ended
Jun. 30, 2016
Subsequent Events [Abstract]  
Subsequent Events
Subsequent Events

On July 1, 2016, we acquired fee simple title to the land underneath one of our buildings in Pittsburgh, PA that was previously subject to a ground lease for a purchase price of $18.5 million. We expect to expense $0.5 million of acquisition costs (included in general and administrative expenses) related to this acquisition.

On July 18, 2016, 4600 Madison Associates, LP (a joint venture in which we own a 12.5% interest) sold a building to an unrelated third party for a sale price of $32.7 million and expects to record a gain on disposition of property of $21.3 million. As our cost basis was different from the basis reflected at the joint venture level, we expect to record $1.9 million of gain through equity in earnings of unconsolidated affiliates. Simultaneously with the sale, the joint venture used a portion of the proceeds to pay off $6.3 million of debt.
v3.5.0.2
Description of Business and Significant Accounting Policies (Policies)
 6 Months Ended
Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation, Policy [Policy Text Block]
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 Statements of Income for the three and six months ended June 30, 2015 were retrospectively revised from previously reported amounts to reclassify 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. In addition, we consolidate those entities deemed to be variable interest entities in which we are determined to be the primary beneficiary. At June 30, 2016, we had involvement with, but are not the primary beneficiary in, an entity that we concluded to be a variable interest entity. All intercompany transactions and accounts have been eliminated.

The unaudited interim consolidated financial statements and accompanying unaudited consolidated financial information, in the opinion of management, contain all adjustments (including normal recurring accruals) necessary for a fair presentation of our financial position, results of operations and cash flows. We have condensed or omitted certain notes and other information from the interim Consolidated Financial Statements presented in this Quarterly Report as permitted by SEC rules and regulations. These Consolidated Financial Statements should be read in conjunction with our 2015 Annual Report on Form 10-K.


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 our Consolidated Financial Statements and accompanying notes. Actual results could differ from those estimates.
Recently Issued Accounting Standards, Policy [Policy Text Block]
Recently Issued Accounting Standards

The Financial Accounting Standards Board ("FASB") recently issued an accounting standards update ("ASU") that requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that we identify the contract with the customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when we satisfy the performance obligations. We will also be required to disclose information regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The ASU is required to be adopted in 2018. Retrospective application is required either to all periods presented or with the cumulative effect of initial adoption recognized in the period of adoption. We are in the process of evaluating this ASU.
 
The FASB recently issued an ASU that amended consolidation requirements. The amendments significantly change the consolidation analysis required under GAAP and require companies to reevaluate all previous consolidation conclusions. We adopted the ASU as of January 1, 2016 and there was no impact to consolidated entities included in our Consolidated Financial Statements. However, in reevaluating our previous consolidation conclusions upon adoption of the ASU, we determined our 12.5% equity interest in an unconsolidated affiliate to be an interest in a variable interest entity because certain of its limited partners do not have substantive kick-out or participating rights. We do not qualify as the primary beneficiary since our obligation to absorb losses and receive benefits of the variable interest entity is less than that of the other general partner. Accordingly, the entity is not consolidated. At June 30, 2016, our maximum exposure to loss with respect to this arrangement is limited to the $1.6 million carrying value of our 12.5% investment in the unconsolidated affiliate.
 
The FASB recently issued an ASU that requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability to which they relate, consistent with debt discounts, as opposed to being presented as assets. For debt issuance costs related to revolving credit facilities, the FASB allows the presentation of debt issuance costs as an asset. We adopted the ASU as of January 1, 2016 with retrospective application to our December 31, 2015 Consolidated Balance Sheets. The effect of the adoption was to reclassify debt issuance costs from deferred financing and leasing costs, net of accumulated amortization, as follows: $7.8 million to a contra account as a deduction from the related mortgages and notes payable and $2.1 million to prepaid expenses and other assets. There was no effect on our Consolidated Statements of Income.

The FASB recently issued an ASU which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors.  The ASU requires lessors to account for leases using an approach that is substantially equivalent to the existing guidance and is effective for reporting periods beginning after December 15, 2018 with early adoption permitted.  We are in the process of evaluating this ASU.

The FASB recently issued an ASU that requires, among other things, the use of a new current expected credit loss ("CECL") model in determining our allowances for doubtful accounts with respect to accounts receivable, accrued straight-line rents receivable and mortgages and notes receivable. The CECL model requires that we estimate our lifetime expected credit loss with respect to these receivables and record allowances that, when deducted from the balance of the receivables, represent the net amounts expected to be collected. We will also be required to disclose information about how we developed the allowances, including changes in the factors (e.g., portfolio mix, credit trends, unemployment, gross domestic product, etc.) that influenced our estimate of expected credit losses and the reasons for those changes. We will apply the ASU’s provisions as a cumulative-effect adjustment to retained earnings upon adoption in 2020. We are in the process of evaluating this ASU.
v3.5.0.2
Investments In and Advances To Unconsolidated Affiliates (Tables)
 6 Months Ended
Jun. 30, 2016
Equity Method Investments and Joint Ventures [Abstract]  
Schedule of Equity Method Investments Summarized Income Statement Information [Table Text Block]
The following table sets forth the summarized income statements of our unconsolidated affiliates:
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2016
 
2015
 
2016
 
2015
Income Statements:
 
 
 
 
 
 
 
Rental and other revenues
$
11,210

 
$
12,423

 
$
21,982

 
$
24,654

Expenses:
 
 
 
 
 
 
 
Rental property and other expenses
4,573

 
6,031

 
9,288

 
11,698

Depreciation and amortization
2,656

 
3,110

 
5,403

 
6,225

Interest expense
1,342

 
2,032

 
2,719

 
4,181

Total expenses
8,571

 
11,173

 
17,410

 
22,104

Income before disposition of property
2,639

 
1,250

 
4,572

 
2,550

Gains on disposition of property
—

 
16,054

 
902

 
18,181

Net income
$
2,639

 
$
17,304

 
$
5,474

 
$
20,731
v3.5.0.2
Intangible Assets and Below Market Lease Liabilities (Tables)
 6 Months Ended
Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
Total intangible assets and below market lease liabilities [Table Text Block]
The following table sets forth total intangible assets and acquisition-related below market lease liabilities, net of accumulated amortization:
 
 
June 30,
2016
 
December 31,
2015
Assets:
 
 
 
Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets)
$
346,294

 
$
346,937

Less accumulated amortization
(129,252
)
 
(115,172
)
 
$
217,042

 
$
231,765

 
 
 
 
Liabilities (in accounts payable, accrued expenses and other liabilities):
 
 
 
Acquisition-related below market lease liabilities
$
63,400

 
$
63,830

Less accumulated amortization
(22,057
)
 
(17,927
)
 
$
41,343

 
$
45,903
Amortization of intangible assets and below market lease liabilities [Table Text Block]
The following table sets forth amortization of intangible assets and below market lease liabilities:
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2016
 
2015
 
2016
 
2015
Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization)
$
11,731

 
$
9,888

 
$
23,066

 
$
19,889

Amortization of lease incentives (in rental and other revenues)
$
390

 
$
412

 
$
1,101

 
$
763

Amortization of acquisition-related intangible assets (in rental and other revenues)
$
972

 
$
1,189

 
$
2,003

 
$
2,355

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

 
$
139

 
$
277

 
$
276

Amortization of acquisition-related below market lease liabilities (in rental and other revenues)
$
(2,788
)
 
$
(1,674
)
 
$
(4,560
)
 
$
(3,406
)
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 Leasing Costs and Acquisition-Related Intangible Assets (in Depreciation and Amortization)
 
Amortization of Lease Incentives (in Rental and Other Revenues)
 
Amortization of Acquisition-Related Intangible Assets (in Rental and Other Revenues)
 
Amortization of Acquisition-Related Intangible Assets (in Rental Property and Other Expenses)
 
Amortization of Acquisition-Related Below Market Lease Liabilities (in Rental and Other Revenues)
July 1 through December 31, 2016
 
$
22,822

 
$
680

 
$
1,848

 
$
276

 
$
(3,520
)
2017
 
39,636

 
1,306

 
2,639

 
553

 
(6,207
)
2018
 
32,768

 
1,203

 
1,704

 
553

 
(6,014
)
2019
 
27,057

 
993

 
1,304

 
553

 
(5,524
)
2020
 
22,465

 
756

 
988

 
525

 
(5,196
)
Thereafter
 
51,660

 
2,193

 
2,560

 
—

 
(14,882
)
 
 
$
196,408

 
$
7,131

 
$
11,043

 
$
2,460

 
$
(41,343
)
Weighted average remaining amortization periods as of June 30, 2016 (in years)
 
6.6

 
7.2

 
6.2

 
4.5

 
7.6
v3.5.0.2
Mortgages and Notes Payable (Tables)
 6 Months Ended
Jun. 30, 2016
Debt Disclosure [Abstract]  
Schedule of Consolidated Mortgages and Notes Payable [Table Text Block]
The following table sets forth our mortgages and notes payable:
 
 
June 30,
2016
 
December 31,
2015
Secured indebtedness
$
130,001

 
$
175,281

Unsecured indebtedness
1,958,739

 
2,324,333

Less-unamortized debt issuance costs
(6,533
)
 
(7,801
)
Total mortgages and notes payable, net
$
2,082,207

 
$
2,491,813
v3.5.0.2
Derivative Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments, Fair Value [Table Text Block]
The following table sets forth the fair value of our derivatives:
 
 
June 30,
2016
 
December 31,
2015
Derivatives:
 
 
 
Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities:
 
 
 
Interest rate swaps
$
11,049

 
$
3,073
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]
The following table sets forth the effect of our cash flow hedges on AOCL and interest expense:
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2016
 
2015
 
2016
 
2015
Derivatives Designated as Cash Flow Hedges:
 
 
 
 
 
 
 
Amount of unrealized gains/(losses) recognized in AOCL on derivatives (effective portion):
 
 
 
 
 
 
 
Interest rate swaps
$
(5,760
)
 
$
269

 
$
(9,395
)
 
$
(2,645
)
Amount of losses reclassified out of AOCL into contractual interest expense (effective portion):
 
 
 
 
 
 
 
Interest rate swaps
$
783

 
$
925

 
$
1,578

 
$
1,849
v3.5.0.2
Noncontrolling Interests (Tables) - Highwoods Properties, Inc. [Member]
 6 Months Ended
Jun. 30, 2016
Noncontrolling Interest [Line Items]  
Noncontrolling Interests in the Operating Partnership [Table Text Block]
The following table sets forth the Company's noncontrolling interests in the Operating Partnership:
 
 
Six Months Ended
June 30,
 
2016
 
2015
Beginning noncontrolling interests in the Operating Partnership
$
126,429

 
$
130,048

Adjustment of noncontrolling interests in the Operating Partnership to fair value
15,042

 
(11,475
)
Conversions of Common Units to Common Stock
(1,558
)
 
(1,206
)
Net income attributable to noncontrolling interests in the Operating Partnership
13,950

 
1,378

Distributions to noncontrolling interests in the Operating Partnership
(2,463
)
 
(2,485
)
Total noncontrolling interests in the Operating Partnership
$
151,400

 
$
116,260
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership [Table Text Block]
The following table sets forth net income available for common stockholders and transfers from the Company's noncontrolling interests in the Operating Partnership:
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2016
 
2015
 
2016
 
2015
Net income available for common stockholders
$
31,648

 
$
25,155

 
$
464,438

 
$
44,471

Increase in additional paid in capital from conversions of Common Units
to Common Stock
1,558

 
—

 
1,558

 
1,206

Change from net income available for common stockholders and transfers from noncontrolling interests
$
33,206

 
$
25,155

 
$
465,996

 
$
45,677
v3.5.0.2
Disclosure About Fair Value of Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2016
Fair Value Disclosures [Abstract]  
Fair Value Measurements of Assets, Liabilities and Noncontrolling Interests [Table Text Block]
The following table sets forth our assets and liabilities and the Company's noncontrolling interests in the Operating Partnership that are measured at fair value within the fair value hierarchy.
 
 
 
 
Level 1
 
Level 2
 
Level 3
 
 
Total
 
Quoted Prices
in Active
Markets for Identical Assets or Liabilities
 
Significant Observable Inputs
 
Significant Unobservable Inputs
Fair Value at June 30, 2016:
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
Mortgages and notes receivable, at fair value (1)
 
$
9,971

 
$
—

 
$
9,971

 
$
—

Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
 
2,572

 
2,572

 
—

 
—

Total Assets
 
$
12,543

 
$
2,572

 
$
9,971

 
$
—

Noncontrolling Interests in the Operating Partnership
 
$
151,400

 
$
151,400

 
$
—

 
$
—

Liabilities:
 
 
 
 
 
 
 
 
Mortgages and notes payable, net, at fair value (1)
 
$
2,120,627

 
$
—

 
$
2,120,627

 
$
—

Interest rate swaps (in accounts payable, accrued expenses and other liabilities)
 
11,049

 
—

 
11,049

 
—

Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
 
2,572

 
2,572

 
—

 
—

Total Liabilities
 
$
2,134,248

 
$
2,572

 
$
2,131,676

 
$
—

Fair Value at December 31, 2015:
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
Mortgages and notes receivable, at fair value (1)
 
$
2,096

 
$
—

 
$
2,096

 
$
—

Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
 
2,736

 
2,736

 
—

 
—

Tax increment financing bond (in real estate and other assets, net, held for sale) (2)
 
11,197

 
—

 
—

 
11,197

Total Assets
 
$
16,029

 
$
2,736

 
$
2,096

 
$
11,197

Noncontrolling Interests in the Operating Partnership
 
$
126,429

 
$
126,429

 
$
—

 
$
—

Liabilities:
 
 
 
 
 
 
 
 
Mortgages and notes payable, net, at fair value (1)
 
$
2,517,589

 
$
—

 
$
2,517,589

 
$
—

Interest rate swaps (in accounts payable, accrued expenses and other liabilities)
 
3,073

 
—

 
3,073

 
—

Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
 
2,736

 
2,736

 
—

 
—

Financing obligation, at fair value (in liabilities held for sale) (1) (2)
 
7,402

 
—

 
—

 
7,402

Total Liabilities
 
$
2,530,800

 
$
2,736

 
$
2,520,662

 
$
7,402


__________
(1)    Amounts recorded at historical cost on our Consolidated Balance Sheets at June 30, 2016 and December 31, 2015.
(2)    Sold during the first quarter of 2016 in conjunction with the sales of the Plaza assets.
Fair Value Measurements, Unobservable Inputs Reconciliation [Table Text Block]
The following table sets forth the changes in our Level 3 asset, which was recorded at fair value on our Consolidated Balance Sheets:

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2016
 
2015
 
2016
 
2015
Asset:
 
 
 
 
 
 
 
Tax Increment Financing Bond:
 
 
 
 
 
 
 
Beginning balance
$
—

 
$
12,640

 
$
11,197

 
$
12,447

Assigned to the buyer of the Plaza assets
—

 
—

 
(11,197
)
 
—

Unrealized gains (in AOCL)
—

 
1

 
—

 
194

Ending balance
$
—

 
$
12,641

 
$
—

 
$
12,641
Fair Value Measurements, Valuation Techniques [Table Text Block]
The following table sets forth quantitative information about the unobservable input of our Level 3 asset, which was recorded at fair value on our Consolidated Balance Sheets:
 
 
Valuation
Technique
 
Unobservable
Input
 
Rate as of
 
 
 
December 31,
2015
Asset:
 
 
 
 
 
Tax increment financing bond
Income approach
 
Discount rate
 
6.93%
v3.5.0.2
Accumulated Other Comprehensive Loss (Tables)
 6 Months Ended
Jun. 30, 2016
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Components of Accumulated Other Comprehensive Loss [Table Text Block]
The following table sets forth the components of AOCL:
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2016
 
2015
 
2016
 
2015
Tax increment financing bond:
 
 
 
 
 
 
 
Beginning balance
$
—

 
$
(252
)
 
$
—

 
$
(445
)
Unrealized gains on tax increment financing bond
—

 
1

 
—

 
194

Ending balance
—

 
(251
)
 
—

 
(251
)
Cash flow hedges:
 
 
 
 
 
 
 
Beginning balance
(6,651
)
 
(5,457
)
 
(3,811
)
 
(3,467
)
Unrealized gains/(losses) on cash flow hedges
(5,760
)
 
269

 
(9,395
)
 
(2,645
)
Amortization of cash flow hedges (1)
783

 
925

 
1,578

 
1,849

Ending balance
(11,628
)
 
(4,263
)
 
(11,628
)
 
(4,263
)
Total accumulated other comprehensive loss
$
(11,628
)

$
(4,514
)
 
$
(11,628
)
 
$
(4,514
)
__________
(1)    Amounts reclassified out of AOCL into contractual interest expense.
v3.5.0.2
Real Estate, Other Assets and Liabilities Held For Sale and Discontinued Operations (Tables)
 6 Months Ended
Jun. 30, 2016
Discontinued Operations and Disposal Groups [Abstract]  
Real Estate and Other Assets of the Properties Classified As Held For Sale [Table Text Block]
The following tables set forth the assets and liabilities related to discontinued operations at December 31, 2015, the results of operations for the three and six months ended June 30, 2016 and 2015 and cash flows for the six months ended June 30, 2016 and 2015 as well as assets held for sale at June 30, 2016:

 
June 30,
2016
 
December 31,
2015
Assets:
 
 
 
Land
$
—

 
$
16,681

Buildings and tenant improvements
—

 
322,811

Land held for development
2,230

 
1,089

Less-accumulated depreciation
—

 
(131,274
)
Net real estate assets
2,230

 
209,307

Accrued straight-line rents receivable, net
—

 
11,730

Deferred leasing costs, net
—

 
6,690

Prepaid expenses and other assets, net
157

 
13,221

Real estate and other assets, net, held for sale
$
2,387

 
$
240,948

Liabilities:
 
 
 
Accounts payable, accrued expenses and other liabilities
$
—

 
$
(6,717
)
Financing obligation
—

 
(7,402
)
Liabilities held for sale
$
—

 
$
(14,119
)
Operations Classified as Discontinued Operations [Table Text Block]
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2016
 
2015
 
2016
 
2015
Rental and other revenues
$
—

 
$
12,593

 
$
8,484

 
$
24,667

Operating expenses:
 
 
 
 
 
 
 
Rental property and other expenses
—

 
4,908

 
3,334

 
9,907

Depreciation and amortization
—

 
3,312

 
—

 
6,753

General and administrative
—

 
227

 
1,388

 
421

Total operating expenses
—

 
8,447

 
4,722

 
17,081

Interest expense
—

 
155

 
85

 
336

Other income
—

 
679

 
420

 
1,335

Income from discontinued operations
—

 
4,670

 
4,097

 
8,585

Net gains on disposition of discontinued operations
—

 
—

 
414,496

 
—

Total income from discontinued operations
$
—

 
$
4,670

 
$
418,593

 
$
8,585



 
Six Months Ended
June 30,
 
2016
 
2015
Cash flows from operating activities
$
2,040

 
$
14,629

Cash flows from investing activities
$
417,097

 
$
(6,897
)
v3.5.0.2
Earnings Per Share and Per Unit (Tables)
 6 Months Ended
Jun. 30, 2016
Earnings Per Share and Per Unit Basic and Diluted [Line Items]  
Earnings Per Share [Table Text Block]
The following table sets forth the computation of basic and diluted earnings per share of the Company:

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2016
 
2015
 
2016
 
2015
Earnings per Common Share - basic:
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
33,528

 
$
22,221

 
$
61,670

 
$
39,141

Net (income) attributable to noncontrolling interests in the Operating Partnership from continuing operations
(939
)
 
(641
)
 
(1,685
)
 
(1,117
)
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(314
)
 
(328
)
 
(622
)
 
(624
)
Dividends on Preferred Stock
(627
)
 
(626
)
 
(1,253
)
 
(1,253
)
Income from continuing operations available for common stockholders
31,648

 
20,626

 
58,110

 
36,147

Income from discontinued operations
—

 
4,670

 
418,593

 
8,585

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

 
(141
)
 
(12,265
)
 
(261
)
Income from discontinued operations available for common stockholders
—

 
4,529

 
406,328

 
8,324

Net income available for common stockholders
$
31,648

 
$
25,155

 
$
464,438

 
$
44,471

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per Common Share – weighted average shares
97,648

 
94,055

 
97,010

 
93,641

Earnings per Common Share - basic:
 
 
 
 
 
 
 
Income from continuing operations available for common stockholders
$
0.32

 
$
0.22

 
$
0.60

 
$
0.39

Income from discontinued operations available for common stockholders
—

 
0.05

 
4.19

 
0.08

Net income available for common stockholders
$
0.32

 
$
0.27

 
$
4.79

 
$
0.47

Earnings per Common Share - diluted:
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
33,528

 
$
22,221

 
$
61,670

 
$
39,141

Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(314
)
 
(328
)
 
(622
)
 
(624
)
Dividends on Preferred Stock
(627
)
 
(626
)
 
(1,253
)
 
(1,253
)
Income from continuing operations available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
32,587

 
21,267

 
59,795

 
37,264

Income from discontinued operations available for common stockholders
—

 
4,670

 
418,593

 
8,585

Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
$
32,587

 
$
25,937

 
$
478,388

 
$
45,849

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per Common Share – weighted average shares
97,648

 
94,055

 
97,010

 
93,641

Add:
 
 
 
 
 
 
 
Stock options using the treasury method
90

 
84

 
87

 
104

Noncontrolling interests Common Units
2,890

 
2,910

 
2,895

 
2,921

Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions (1)
100,628

 
97,049

 
99,992

 
96,666

Earnings per Common Share - diluted:
 
 
 
 
 
 
 
Income from continuing operations available for common stockholders
$
0.32

 
$
0.22

 
$
0.60

 
$
0.39

Income from discontinued operations available for common stockholders
—

 
0.05

 
4.18

 
0.08

Net income available for common stockholders
$
0.32

 
$
0.27

 
$
4.78

 
$
0.47

__________
(1)
Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable.
Highwoods Realty Limited Partnership [Member]  
Earnings Per Share and Per Unit Basic and Diluted [Line Items]  
Earnings Per Unit [Table Text Block]
The following table sets forth the computation of basic and diluted earnings per unit of the Operating Partnership:
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2016
 
2015
 
2016
 
2015
Earnings per Common Unit - basic:
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
33,528

 
$
22,221

 
$
61,670

 
$
39,141

Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(314
)
 
(328
)
 
(622
)
 
(624
)
Distributions on Preferred Units
(627
)
 
(626
)
 
(1,253
)
 
(1,253
)
Income from continuing operations available for common unitholders
32,587

 
21,267

 
59,795

 
37,264

Income from discontinued operations available for common unitholders
—

 
4,670

 
418,593

 
8,585

Net income available for common unitholders
$
32,587

 
$
25,937

 
$
478,388

 
$
45,849

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per Common Unit – weighted average units
100,129

 
96,556

 
99,496

 
96,153

Earnings per Common Unit - basic:
 
 
 
 
 
 
 
Income from continuing operations available for common unitholders
$
0.33

 
$
0.22

 
$
0.60

 
$
0.39

Income from discontinued operations available for common unitholders
—

 
0.05

 
4.21

 
0.09

Net income available for common unitholders
$
0.33

 
$
0.27

 
$
4.81

 
$
0.48

Earnings per Common Unit - diluted:
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
33,528

 
$
22,221

 
$
61,670

 
$
39,141

Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
(314
)
 
(328
)
 
(622
)
 
(624
)
Distributions on Preferred Units
(627
)
 
(626
)
 
(1,253
)
 
(1,253
)
Income from continuing operations available for common unitholders
32,587

 
21,267

 
59,795

 
37,264

Income from discontinued operations available for common unitholders
—

 
4,670

 
418,593

 
8,585

Net income available for common unitholders
$
32,587

 
$
25,937

 
$
478,388

 
$
45,849

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per Common Unit – weighted average units
100,129

 
96,556

 
99,496

 
96,153

Add:
 
 
 
 
 
 
 
Stock options using the treasury method
90

 
84

 
87

 
104

Denominator for diluted earnings per Common Unit – adjusted weighted average units and assumed conversions (1)
100,219

 
96,640

 
99,583

 
96,257

Earnings per Common Unit - diluted:
 
 
 
 
 
 
 
Income from continuing operations available for common unitholders
$
0.33

 
$
0.22

 
$
0.60

 
$
0.39

Income from discontinued operations available for common unitholders
—

 
0.05

 
4.20

 
0.09

Net income available for common unitholders
$
0.33

 
$
0.27

 
$
4.80

 
$
0.48

__________
(1)
Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable.
v3.5.0.2
Segment Information (Tables)
 6 Months Ended
Jun. 30, 2016
Segment Reporting [Abstract]  
Segment Information [Table Text Block]
The following tables summarize the rental and other revenues and net operating income, the primary industry property-level performance metric used by our chief operating decision maker which is defined as rental and other revenues less rental property and other expenses, for each of our reportable segments. Our segment information for the three and six months ended June 30, 2015 has been retrospectively revised from previously reported amounts to reflect a change in our reportable segments.

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2016
 
2015
 
2016
 
2015
Rental and Other Revenues:
 
 
 
 
 
 
 
Office:
 
 
 
 
 
 
 
Atlanta, GA
$
34,652

 
$
25,611

 
$
67,848

 
$
50,393

Greensboro, NC
5,037

 
5,398

 
10,184

 
10,838

Memphis, TN
11,931

 
12,050

 
23,945

 
23,784

Nashville, TN
24,415

 
21,770

 
47,781

 
43,586

Orlando, FL
11,197

 
10,948

 
22,682

 
21,782

Pittsburgh, PA
14,195

 
14,719

 
29,335

 
29,268

Raleigh, NC
28,024

 
25,541

 
56,246

 
48,982

Richmond, VA
10,937

 
10,203

 
22,006

 
20,787

Tampa, FL
22,814

 
18,602

 
44,252

 
37,029

Total Office Segment
163,202

 
144,842

 
324,279

 
286,449

Other
3,658

 
3,701

 
7,440

 
7,330

Total Rental and Other Revenues
$
166,860

 
$
148,543

 
$
331,719

 
$
293,779


14.
Segment Information - Continued

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2016
 
2015
 
2016
 
2015
Net Operating Income:
 
 
 
 
 
 
 
Office:
 
 
 
 
 
 
 
Atlanta, GA
$
21,911

 
$
15,663

 
$
42,963

 
$
31,030

Greensboro, NC
3,209

 
3,516

 
6,357

 
6,942

Memphis, TN
7,398

 
7,641

 
14,813

 
15,030

Nashville, TN
17,613

 
15,480

 
34,428

 
30,712

Orlando, FL
6,320

 
6,348

 
13,005

 
12,831

Pittsburgh, PA
8,108

 
8,670

 
16,711

 
16,632

Raleigh, NC
20,156

 
18,358

 
40,410

 
34,629

Richmond, VA
7,687

 
6,932

 
15,116

 
13,812

Tampa, FL
14,361

 
11,020

 
27,688

 
22,240

Total Office Segment
106,763

 
93,628

 
211,491

 
183,858

Other
2,582

 
2,545

 
5,133

 
5,037

Total Net Operating Income
109,345

 
96,173

 
216,624

 
188,895

Reconciliation to income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates:
 
 
 
 
 
 
 
Depreciation and amortization
(55,317
)
 
(47,928
)
 
(108,811
)
 
(94,795
)
General and administrative expenses
(8,327
)
 
(8,665
)
 
(19,464
)
 
(19,908
)
Interest expense
(19,485
)
 
(21,847
)
 
(40,190
)
 
(43,089
)
Other income
534

 
300

 
1,051

 
882

Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates
$
26,750

 
$
18,033

 
$
49,210

 
$
31,985
v3.5.0.2
Description of Business and Significant Accounting Policies (Details)
$ / shares in Units, $ in Thousands, ft² in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2016
USD ($)
a
ft²
$ / shares
shares
Jun. 30, 2016
USD ($)
a
ft²
$ / shares
shares
Jun. 30, 2015
USD ($)
Dec. 31, 2015
USD ($)
Description of Business and Significant Accounting Policies [Line Items]        
Rentable square feet of commercial real estate properties (in sq feet) | ft² 31.1 31.1    
Rentable square feet of commercial real estate properties under development (in sq feet) | ft² 1.1 1.1    
Undeveloped land suitable for development (in acres) | a 500 500    
Net proceeds of Common Stock sold during the period   $ 104,472 $ 43,216  
Percentage of equity interest in joint ventures, maximum (in hundredths) 50.00% 50.00%    
Carrying value of investment in unconsolidated affiliate $ 19,786 $ 19,786   $ 20,676
Debt issuance costs reclassified to contra liability account 2,082,207 2,082,207   2,491,813
Debt issuance costs reclassified to prepaid expenses and other assets $ 40,008 $ 40,008   26,649
Reclassified Debt Issuance Costs Member        
Description of Business and Significant Accounting Policies [Line Items]        
Debt issuance costs reclassified to contra liability account       7,800
Debt issuance costs reclassified to prepaid expenses and other assets       $ 2,100
Unconsolidated Affiliate VIE Member        
Description of Business and Significant Accounting Policies [Line Items]        
Percentage of equity interest in joint ventures, maximum (in hundredths) 12.50% 12.50%    
Carrying value of investment in unconsolidated affiliate $ 1,600 $ 1,600    
Highwoods Properties, Inc. [Member]        
Description of Business and Significant Accounting Policies [Line Items]        
Common Units of partnership owned by the Company (in shares) | shares 98,200,000 98,200,000    
Percentage of ownership of Common Units (in hundredths) 97.20% 97.20%   97.10%
Common Units redeemed for a like number of common shares of stock (in shares) | shares   32,328    
Highwoods Properties, Inc. [Member] | ATM Equity Offering [Member]        
Description of Business and Significant Accounting Policies [Line Items]        
Number of Common Stock sold during the period (in shares) | shares 1,022,575 2,077,071    
Average price of Common Stock sold during the period (in dollars per share) | $ / shares $ 48.90 $ 47.36    
Net proceeds of Common Stock sold during the period $ 49,300 $ 96,900    
Highwoods Realty Limited Partnership [Member]        
Description of Business and Significant Accounting Policies [Line Items]        
Common Units of partnership not owned by the Company (in shares) | shares 2,900,000 2,900,000    
Carrying value of investment in unconsolidated affiliate $ 19,786 $ 19,786   $ 20,676
Debt issuance costs reclassified to contra liability account 2,082,207 2,082,207   2,491,813
Debt issuance costs reclassified to prepaid expenses and other assets $ 40,008 $ 40,008   $ 26,649
v3.5.0.2
Real Estate Assets (Details)
ft² in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2016
USD ($)
a
ft²
Mar. 31, 2016
USD ($)
ft²
Jun. 30, 2015
USD ($)
Jun. 30, 2016
USD ($)
a
ft²
Jun. 30, 2015
USD ($)
Acquisitions [Abstract]          
Acquisition of development land (in acres) | a 500     500  
Dispositions [Abstract]          
Gains on disposition of discontinued operations $ 0   $ 0 $ 414,496 $ 0
Gains on disposition of property $ 5,861   $ 2,412 $ 10,258 $ 3,569
Rentable square feet of building (in sq feet) | ft² 31,100     31,100  
Nashville TN Land Acquisition (6/2016) [Member]          
Acquisitions [Abstract]          
Acquisition of development land (in acres) | a 14     14  
Acquisition purchase price $ 9,100        
Division Exit [Member]          
Dispositions [Abstract]          
Purchase price of real estate   $ 660,000      
Gains on disposition of discontinued operations   414,500      
Gains on disposition of property   1,300      
Disposition closing credits excluded   4,800      
Related Party Office Building Disposition [Member]          
Dispositions [Abstract]          
Purchase price of real estate   4,700      
Gains on disposition of property   $ 1,100      
Rentable square feet of building (in sq feet) | ft²   32      
Buyer occupancy percentage (in hundredths)   79.00%      
Disposition closing credits excluded   $ 100      
Building Dispositions [Member]          
Dispositions [Abstract]          
Purchase price of real estate 14,200 6,400      
Gains on disposition of property $ 5,900 2,000      
Disposition closing credits excluded   $ 500      
v3.5.0.2
Mortgages and Notes Receivable (Details) - USD ($)
$ in Thousands
Jun. 30, 2016
Dec. 31, 2015
Mortgages and notes receivable [Abstract]    
Mortgages and notes receivable, net $ 9,971 $ 2,096
v3.5.0.2
Investments In and Advances To Unconsolidated Affiliates (Details)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2016
USD ($)
Mar. 31, 2016
USD ($)
property
Jun. 30, 2015
USD ($)
Jun. 30, 2016
USD ($)
Jun. 30, 2015
USD ($)
Income Statements:          
Rental and other revenues $ 11,210   $ 12,423 $ 21,982 $ 24,654
Expenses:          
Rental property and other expenses 4,573   6,031 9,288 11,698
Depreciation and amortization 2,656   3,110 5,403 6,225
Interest expense 1,342   2,032 2,719 4,181
Total expenses 8,571   11,173 17,410 22,104
Income before disposition of property 2,639   1,250 4,572 2,550
Gains/(losses) on disposition of property 0   16,054 902 18,181
Net income $ 2,639   $ 17,304 $ 5,474 $ 20,731
Percentage of equity interest in joint ventures, maximum (in hundredths) 50.00%     50.00%  
Concourse Center Associates, LLC Joint Venture [Member]          
Expenses:          
Gains/(losses) on disposition of property   $ (100)      
Percentage of equity interest in joint ventures, maximum (in hundredths)   50.00%      
Number of buildings sold | property   2      
Proceeds received from disposition of property   $ 11,000      
Our share of gains on disposition of property   400      
Repayment of debt   6,600      
4600 Madison Associates, LLC Joint Venture [Member]          
Expenses:          
Gains/(losses) on disposition of property   $ 1,000      
Percentage of equity interest in joint ventures, maximum (in hundredths)   12.50%      
Proceeds received from disposition of property   $ 3,400      
Our share of gains on disposition of property   100      
Repayment of debt   $ 3,400      
Fixed current interest rate (in hundredths)   6.85%      
v3.5.0.2
Intangible Assets and Below Market Lease Liabilities (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Dec. 31, 2015
Intangible assets and below market lease liabilities, net [Abstract]          
Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets) $ 346,294   $ 346,294   $ 346,937
Deferred leasing costs, accumulated amortization (129,252)   (129,252)   (115,172)
Deferred leasing costs, net/Total scheduled future amortization of intangible assets 217,042   217,042   231,765
Acquisition-related below market lease liabilities, gross 63,400   63,400   63,830
Acquisition-related below market lease liabilities, accumulated amortization (22,057)   (22,057)   (17,927)
Acquisition-related below market lease liabilities, net 41,343   41,343   $ 45,903
Deferred Leasing Costs and Acquisition-Related Intangible Assets [Member]          
Intangible assets and below market lease liabilities, net [Abstract]          
Deferred leasing costs, net/Total scheduled future amortization of intangible assets 196,408   196,408    
Amortization of intangible assets and below market lease liabilities [Abstract]          
Amortization of intangible assets 11,731 $ 9,888 23,066 $ 19,889  
Lease Incentives [Member]          
Intangible assets and below market lease liabilities, net [Abstract]          
Deferred leasing costs, net/Total scheduled future amortization of intangible assets 7,131   7,131    
Amortization of intangible assets and below market lease liabilities [Abstract]          
Amortization of intangible assets 390 412 1,101 763  
Acquisition-Related Intangible Assets (in Rental and Other Revenues) [Member]          
Intangible assets and below market lease liabilities, net [Abstract]          
Deferred leasing costs, net/Total scheduled future amortization of intangible assets 11,043   11,043    
Amortization of intangible assets and below market lease liabilities [Abstract]          
Amortization of intangible assets 972 1,189 2,003 2,355  
Acquisition-Related Intangible Assets (in Rental Property and Other Expenses) [Member]          
Intangible assets and below market lease liabilities, net [Abstract]          
Deferred leasing costs, net/Total scheduled future amortization of intangible assets 2,460   2,460    
Amortization of intangible assets and below market lease liabilities [Abstract]          
Amortization of intangible assets 139 139 277 276  
Acquisition-Related Below Market Lease Liabilities [Member]          
Intangible assets and below market lease liabilities, net [Abstract]          
Acquisition-related below market lease liabilities, net 41,343   41,343    
Amortization of intangible assets and below market lease liabilities [Abstract]          
Amortization of acquisition-related below market lease liabilities $ (2,788) $ (1,674) $ (4,560) $ (3,406)  
v3.5.0.2
Intangible Assets and Below Market Lease Liabilities - Scheduled Future Amortization (Details) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2016
Dec. 31, 2015
Scheduled future amortization of intangible assets [Abstract]    
Deferred leasing costs, net/Total scheduled future amortization of intangible assets $ 217,042 $ 231,765
Scheduled future amortization of below market lease liabilities [Abstract]    
Total scheduled future amortization of acquisition-related below market lease liabilities (41,343) $ (45,903)
Deferred Leasing Costs and Acquisition-Related Intangible Assets [Member]    
Scheduled future amortization of intangible assets [Abstract]    
July 1 through December 31, 2016 22,822  
2017 39,636  
2018 32,768  
2019 27,057  
2020 22,465  
Thereafter 51,660  
Deferred leasing costs, net/Total scheduled future amortization of intangible assets $ 196,408  
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 7 months 6 days  
Lease Incentives [Member]    
Scheduled future amortization of intangible assets [Abstract]    
July 1 through December 31, 2016 $ 680  
2017 1,306  
2018 1,203  
2019 993  
2020 756  
Thereafter 2,193  
Deferred leasing costs, net/Total scheduled future amortization of intangible assets $ 7,131  
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 12 days  
Acquisition-Related Intangible Assets (in Rental and Other Revenues) [Member]    
Scheduled future amortization of intangible assets [Abstract]    
July 1 through December 31, 2016 $ 1,848  
2017 2,639  
2018 1,704  
2019 1,304  
2020 988  
Thereafter 2,560  
Deferred leasing costs, net/Total scheduled future amortization of intangible assets $ 11,043  
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 2 months 12 days  
Acquisition-Related Intangible Assets (in Rental Property and Other Expenses) [Member]    
Scheduled future amortization of intangible assets [Abstract]    
July 1 through December 31, 2016 $ 276  
2017 553  
2018 553  
2019 553  
2020 525  
Thereafter 0  
Deferred leasing costs, net/Total scheduled future amortization of intangible assets $ 2,460  
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract]    
Finite-lived intangible assets, average useful life (in years) 4 years 6 months  
Acquisition-Related Below Market Lease Liabilities [Member]    
Scheduled future amortization of below market lease liabilities [Abstract]    
July 1 through December 31, 2016 $ (3,520)  
2017 (6,207)  
2018 (6,014)  
2019 (5,524)  
2020 (5,196)  
Thereafter (14,882)  
Total scheduled future amortization of acquisition-related below market lease liabilities $ (41,343)  
Weighted average remaining amortization periods for intangible assets and below market lease liabilities [Abstract]    
Finite-lived below market lease liabilities, average useful life (in years) 7 years 7 months 6 days  
v3.5.0.2
Mortgages and Notes Payable (Details)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2016
USD ($)
extensions
Mar. 31, 2016
USD ($)
Jun. 30, 2016
USD ($)
Jun. 30, 2015
USD ($)
Jul. 25, 2016
USD ($)
Dec. 31, 2015
USD ($)
Debt Instrument [Line Items]            
Mortgages and notes payable, net $ 2,082,207   $ 2,082,207     $ 2,491,813
Unamortized debt issuance costs (6,533)   (6,533)     (7,801)
Repayment of bridge credit facility     169,800 $ 233,900    
Revolving Credit Facility due 2018 [Member]            
Debt Instrument [Line Items]            
Maximum borrowing capacity on revolving credit facility $ 475,000   475,000      
Maturity date on revolving credit facility Jan. 01, 2018          
Additional borrowing capacity on revolving credit facility $ 75,000   75,000      
Number of additional maturity extensions | extensions 2          
Term of optional extension 6 months          
Facility interest rate basis LIBOR plus 110 basis points          
Interest rate spread (in hundredths) 1.10%          
Annual facility fee (in hundredths) 0.20%          
Amount outstanding on revolving credit facility $ 283,000   283,000      
Outstanding letters of credit on revolving credit facility 200   200      
Unused borrowing capacity on revolving credit facility 191,800   191,800      
Variable Rate Term Loan Facility due 2022 [Member]            
Debt Instrument [Line Items]            
Maximum borrowing capacity on revolving credit facility $ 150,000   150,000      
Maturity date on revolving credit facility Jan. 28, 2022          
Facility interest rate basis LIBOR plus 110 basis points          
Interest rate spread (in hundredths) 1.10%          
Term of debt (in months) 67 months          
7.50% Mortgage Loan due 2016 [Member]            
Debt Instrument [Line Items]            
Principal debt amount $ 43,600   $ 43,600      
Effective interest rate (in hundredths) 7.50%   7.50%      
Scheduled maturity date Aug. 06, 2016          
Bridge Term Loan Facility due 2016 [Member]            
Debt Instrument [Line Items]            
Maturity date on revolving credit facility   Mar. 28, 2016        
Repayment of bridge credit facility   $ 350,000        
Secured indebtedness [Member]            
Debt Instrument [Line Items]            
Mortgages and notes payable, net $ 130,001   $ 130,001     175,281
Aggregate undepreciated book value of secured real estate assets 244,600   244,600      
Unsecured indebtedness [Member]            
Debt Instrument [Line Items]            
Mortgages and notes payable, net $ 1,958,739   $ 1,958,739     $ 2,324,333
Subsequent Event [Member] | Revolving Credit Facility due 2018 [Member]            
Debt Instrument [Line Items]            
Amount outstanding on revolving credit facility         $ 272,000  
Outstanding letters of credit on revolving credit facility         200  
Unused borrowing capacity on revolving credit facility         $ 202,800  
v3.5.0.2
Derivative Financial Instruments (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2016
Mar. 31, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]            
Amount of borrowings, subject to swaps   $ 150,000        
Underlying treasury rate term (in years)   10 years        
Underlying treasury rate locked by forward-starting swaps (in hundredths)   1.90%        
Expected increase to interest expense $ 4,000     $ 4,000    
Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities [Abstract]            
Interest rate swaps 11,049     11,049   $ 3,073
Amount of unrealized gains/(losses) recognized in AOCL on derivatives (effective portion) [Abstract]            
Interest rate swaps (5,760)   $ 269 (9,395) $ (2,645)  
Amount of losses reclassified out of AOCL into contractual interest expense (effective portion) [Abstract]            
Interest rate swaps $ 783   $ 925 $ 1,578 $ 1,849  
v3.5.0.2
Noncontrolling Interests (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Noncontrolling Interests in Consolidated Affiliates [Abstract]        
Consolidated joint venture, partner's interest (in hundredths) 50.00%   50.00%  
Noncontrolling Interests in the Operating Partnership [Roll Forward]        
Beginning noncontrolling interests in the Operating Partnership     $ 126,429  
Adjustment of noncontrolling interests in the Operating Partnership to fair value     15,042 $ (11,475)
Conversions of Common Units to Common Stock     (1,558) (1,206)
Net income attributable to noncontrolling interests in the Operating Partnership $ 939 $ 782 13,950 1,378
Distributions to noncontrolling interests in the Operating Partnership     (2,463) (2,485)
Total noncontrolling interests in the Operating Partnership 151,400   151,400  
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership [Abstract]        
Net income available for common stockholders 31,648 25,155 464,438 44,471
Highwoods Properties, Inc. [Member]        
Noncontrolling Interests in the Operating Partnership [Roll Forward]        
Beginning noncontrolling interests in the Operating Partnership     126,429 130,048
Adjustment of noncontrolling interests in the Operating Partnership to fair value     15,042 (11,475)
Conversions of Common Units to Common Stock     (1,558) (1,206)
Net income attributable to noncontrolling interests in the Operating Partnership     13,950 1,378
Distributions to noncontrolling interests in the Operating Partnership     (2,463) (2,485)
Total noncontrolling interests in the Operating Partnership 151,400 116,260 151,400 116,260
Net Income Available for Common Stockholders and Transfers From Noncontrolling Interests in the Operating Partnership [Abstract]        
Net income available for common stockholders 31,648 25,155 464,438 44,471
Increase in additional paid in capital from conversions of Common Units to Common Stock 1,558 0 1,558 1,206
Change from net income available for common stockholders and transfers from noncontrolling interests $ 33,206 $ 25,155 $ 465,996 $ 45,677
v3.5.0.2
Disclosure About Fair Value of Financial Instruments - Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis (Details) - USD ($)
$ in Thousands
Jun. 30, 2016
Dec. 31, 2015
Assets:    
Mortgages and notes receivable, at fair value [1] $ 9,971 $ 2,096
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 2,572 2,736
Tax increment financing bond (in real estate and other assets, net, held for sale) [2]   11,197
Total Assets 12,543 16,029
Liabilities:    
Mortgages and notes payable, net, at fair value [1] 2,120,627 2,517,589
Interest rate swaps (in accounts payable, accrued expenses and other liabilities) 11,049 3,073
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 2,572 2,736
Financing obligation, at fair value (in liabilities held for sale) [1],[2]   7,402
Total Liabilities 2,134,248 2,530,800
Level 1 [Member]    
Assets:    
Mortgages and notes receivable, at fair value [1] 0 0
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 2,572 2,736
Tax increment financing bond (in real estate and other assets, net, held for sale) [2]   0
Total Assets 2,572 2,736
Liabilities:    
Mortgages and notes payable, net, at fair value [1] 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) 2,572 2,736
Financing obligation, at fair value (in liabilities held for sale) [1],[2]   0
Total Liabilities 2,572 2,736
Level 2 [Member]    
Assets:    
Mortgages and notes receivable, at fair value [1] 9,971 2,096
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 0 0
Tax increment financing bond (in real estate and other assets, net, held for sale) [2]   0
Total Assets 9,971 2,096
Liabilities:    
Mortgages and notes payable, net, at fair value [1] 2,120,627 2,517,589
Interest rate swaps (in accounts payable, accrued expenses and other liabilities) 11,049 3,073
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities) 0 0
Financing obligation, at fair value (in liabilities held for sale) [1],[2]   0
Total Liabilities 2,131,676 2,520,662
Level 3 [Member]    
Assets:    
Mortgages and notes receivable, at fair value [1] 0 0
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets) 0 0
Tax increment financing bond (in real estate and other assets, net, held for sale) [2]   11,197
Total Assets 0 11,197
Liabilities:    
Mortgages and notes payable, net, at fair value [1] 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
Financing obligation, at fair value (in liabilities held for sale) [1],[2]   7,402
Total Liabilities 0 7,402
Highwoods Properties, Inc. [Member]    
Assets:    
Noncontrolling Interests in the Operating Partnership 151,400 126,429
Highwoods Properties, Inc. [Member] | Level 1 [Member]    
Assets:    
Noncontrolling Interests in the Operating Partnership 151,400 126,429
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
[1] Amounts recorded at historical cost on our Consolidated Balance Sheets at June 30, 2016 and December 31, 2015.
[2] Sold during the first quarter of 2016 in conjunction with the sales of the Plaza assets.
v3.5.0.2
Disclosure About Fair Value of Financial Instruments - Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Dec. 31, 2015
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]          
Unrealized gains (in AOCL)     $ 0 $ 194  
Tax Increment Financing Bond [Member]          
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]          
Beginning balance $ 0 $ 12,640 11,197 12,447 $ 12,447
Assigned to the buyer of the Plaza assets 0 0 (11,197) 0  
Unrealized gains (in AOCL) 0 1 0 194  
Ending balance $ 0 $ 12,641 $ 0 $ 12,641 $ 11,197
Discount rate (in hundredths)         6.93%
v3.5.0.2
Share-Based Payments (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Stock-based compensation expense $ 992 $ 1,200 $ 4,550 $ 5,067
Total unrecognized stock-based compensation costs $ 6,800   $ 6,800  
Weighted average remaining contractual term for recognition of unrecognized stock-based compensation costs (in years)     2 years 7 months 6 days  
Highwoods Properties, Inc. [Member] | Stock Options [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Stock options granted     244,664  
Weighted average grant date fair value of each stock option granted (in dollars per option)     $ 4.61  
Highwoods Properties, Inc. [Member] | Time-Based Restricted Stock [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Restricted stock shares granted     72,698  
Weighted average grant date fair value of each restricted stock granted (in dollars per share)     $ 43.59  
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     58,054  
Weighted average grant date fair value of each restricted stock granted (in dollars per share)     $ 41.37  
v3.5.0.2
Accumulated Other Comprehensive Loss (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Accumulated Other Comprehensive Income (Loss) Calculation [Roll Forward]        
Beginning balance     $ (3,811)  
Ending balance $ (11,628) $ (4,514) (11,628) $ (4,514)
Tax Increment Financing Bond [Member]        
Accumulated Other Comprehensive Income (Loss) Calculation [Roll Forward]        
Beginning balance 0 (252) 0 (445)
Unrealized gains/(losses) 0 1 0 194
Ending balance 0 (251) 0 (251)
Cash Flow Hedges [Member]        
Accumulated Other Comprehensive Income (Loss) Calculation [Roll Forward]        
Beginning balance (6,651) (5,457) (3,811) (3,467)
Unrealized gains/(losses) (5,760) 269 (9,395) (2,645)
Amortization reclassified out of AOCL [1] 783 925 1,578 1,849
Ending balance $ (11,628) $ (4,263) $ (11,628) $ (4,263)
[1] Amounts reclassified out of AOCL into contractual interest expense.
v3.5.0.2
Real Estate, Other Assets and Liabilities Held For Sale and Discontinued Operations (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Dec. 31, 2015
Assets [Abstract]          
Land $ 0   $ 0   $ 16,681
Buildings and tenant improvements 0   0   322,811
Land held for development 2,230   2,230   1,089
Less - accumulated depreciation 0   0   (131,274)
Net real estate assets 2,230   2,230   209,307
Accrued straight-line rents receivable, net 0   0   11,730
Deferred leasing costs, net 0   0   6,690
Prepaid expenses and other assets, net 157   157   13,221
Real estate and other assets, net, held for sale 2,387   2,387   240,948
Liabilities [Abstract]          
Accounts payable, accrued expenses and other liabilities 0   0   (6,717)
Financing obligation 0   0   (7,402)
Liabilities held for sale 0   0   $ (14,119)
Discontinued Operations [Abstract]          
Rental and other revenues 0 $ 12,593 8,484 $ 24,667  
Operating expenses:          
Rental property and other expenses 0 4,908 3,334 9,907  
Depreciation and amortization 0 3,312 0 6,753  
General and administrative 0 227 1,388 421  
Total operating expenses 0 8,447 4,722 17,081  
Interest expense 0 155 85 336  
Other income 0 679 420 1,335  
Income from discontinued operations 0 4,670 4,097 8,585  
Net gains on disposition of discontinued operations 0 0 414,496 0  
Total income from discontinued operations $ 0 $ 4,670 418,593 8,585  
Net Cash Provided by/(Used in) Discontinued Operations [Abstract]          
Cash flows from operating activities     2,040 14,629  
Cash flows from investing activities     $ 417,097 $ (6,897)  
v3.5.0.2
Earnings Per Share and Per Unit (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Earnings per Common Share and Per Unit - basic: [Abstract]        
Income from continuing operations $ 33,528 $ 22,221 $ 61,670 $ 39,141
Net (income) attributable to noncontrolling interests in the Operating Partnership from continuing operations (939) (641) (1,685) (1,117)
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations (314) (328) (622) (624)
Dividends on Preferred Stock (627) (626) (1,253) (1,253)
Income from continuing operations available for common stockholders 31,648 20,626 58,110 36,147
Income from discontinued operations 0 4,670 418,593 8,585
Net (income) attributable to noncontrolling interests in the Operating Partnership from discontinued operations 0 (141) (12,265) (261)
Income from discontinued operations available for common stockholders 0 4,529 406,328 8,324
Net income available for common stockholders $ 31,648 $ 25,155 $ 464,438 $ 44,471
Denominator:        
Denominator for basic earnings per Common Share - weighted average shares (in shares) 97,648 94,055 97,010 93,641
Earnings per Common Share - basic:        
Income from continuing operations available for common stockholders (in dollars per share) $ 0.32 $ 0.22 $ 0.60 $ 0.39
Income from discontinued operations available for common stockholders (in dollars per share) 0.00 0.05 4.19 0.08
Net income available for common stockholders (in dollars per share) $ 0.32 $ 0.27 $ 4.79 $ 0.47
Earnings per Common Share and Per Unit - diluted: [Abstract]        
Income from continuing operations $ 33,528 $ 22,221 $ 61,670 $ 39,141
Net (income) attributable to noncontrolling interests in consolidated affiliates (314) (328) (622) (624)
Dividends on Preferred Stock (627) (626) (1,253) (1,253)
Income from continuing operations available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership 32,587 21,267 59,795 37,264
Income from discontinued operations available for common stockholders 0 4,670 418,593 8,585
Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership $ 32,587 $ 25,937 $ 478,388 $ 45,849
Denominator:        
Denominator for basic earnings per Common Share - weighted average shares (in shares) 97,648 94,055 97,010 93,641
Stock options using the treasury method 90 84 87 104
Noncontrolling interests Common Units 2,890 2,910 2,895 2,921
Denominator for diluted earnings per Common Share - adjusted weighted average shares and assumed conversions (in shares) [1] 100,628 97,049 99,992 96,666
Earnings per Common Share - diluted:        
Income from continuing operations available for common stockholders (in dollars per share) $ 0.32 $ 0.22 $ 0.60 $ 0.39
Income from discontinued operations available for common stockholders (in dollars per share) 0.00 0.05 4.18 0.08
Net income available for common stockholders (in dollars per share) $ 0.32 $ 0.27 $ 4.78 $ 0.47
Highwoods Realty Limited Partnership [Member]        
Earnings per Common Share and Per Unit - basic: [Abstract]        
Income from continuing operations $ 33,528 $ 22,221 $ 61,670 $ 39,141
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations (314) (328) (622) (624)
Distributions on Preferred Units (627) (626) (1,253) (1,253)
Income from continuing operations available for common unitholders 32,587 21,267 59,795 37,264
Income from discontinued operations available for common unitholders 0 4,670 418,593 8,585
Net income available for common unitholders $ 32,587 $ 25,937 $ 478,388 $ 45,849
Denominator:        
Denominator for basic earnings per Common Unit - weighted average units (in shares) 100,129 96,556 99,496 96,153
Earnings per Common Unit - basic:        
Income from continuing operations available for common unitholders (in dollars per share) $ 0.33 $ 0.22 $ 0.60 $ 0.39
Income from discontinued operations available for common unitholders (in dollars per share) 0.00 0.05 4.21 0.09
Net income available for common unitholders (in dollars per share) $ 0.33 $ 0.27 $ 4.81 $ 0.48
Earnings per Common Share and Per Unit - diluted: [Abstract]        
Income from continuing operations $ 33,528 $ 22,221 $ 61,670 $ 39,141
Net (income) attributable to noncontrolling interests in consolidated affiliates (314) (328) (622) (624)
Distributions on Preferred Units (627) (626) (1,253) (1,253)
Income from continuing operations available for common unitholders 32,587 21,267 59,795 37,264
Income from discontinued operations available for common unitholders 0 4,670 418,593 8,585
Net income available for common unitholders $ 32,587 $ 25,937 $ 478,388 $ 45,849
Denominator:        
Denominator for basic earnings per Common Unit - weighted average units (in shares) 100,129 96,556 99,496 96,153
Stock options using the treasury method 90 84 87 104
Denominator for diluted earnings per Common Unit - adjusted weighted average units and assumed conversions (in shares) [2] 100,219 96,640 99,583 96,257
Earnings per Common Unit - diluted:        
Income from continuing operations available for common unitholders (in dollars per share) $ 0.33 $ 0.22 $ 0.60 $ 0.39
Income from discontinued operations available for common unitholders (in dollars per share) 0.00 0.05 4.20 0.09
Net income available for common unitholders (in dollars per share) $ 0.33 $ 0.27 $ 4.80 $ 0.48
[1] Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable.
[2] Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable.
v3.5.0.2
Segment Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Segment Reporting Information [Line Items]        
Total Rental and Other Revenues $ 166,860 $ 148,543 $ 331,719 $ 293,779
Total Net Operating Income 109,345 96,173 216,624 188,895
Reconciliation to income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates:        
Depreciation and amortization (55,317) (47,928) (108,811) (94,795)
General and administrative expenses (8,327) (8,665) (19,464) (19,908)
Interest expense (19,485) (21,847) (40,190) (43,089)
Other income 534 300 1,051 882
Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates 26,750 18,033 49,210 31,985
Total Office Segment [Member]        
Segment Reporting Information [Line Items]        
Total Rental and Other Revenues 163,202 144,842 324,279 286,449
Total Net Operating Income 106,763 93,628 211,491 183,858
Office Atlanta, GA [Member]        
Segment Reporting Information [Line Items]        
Total Rental and Other Revenues 34,652 25,611 67,848 50,393
Total Net Operating Income 21,911 15,663 42,963 31,030
Office Greensboro, NC [Member]        
Segment Reporting Information [Line Items]        
Total Rental and Other Revenues 5,037 5,398 10,184 10,838
Total Net Operating Income 3,209 3,516 6,357 6,942
Office Memphis, TN [Member]        
Segment Reporting Information [Line Items]        
Total Rental and Other Revenues 11,931 12,050 23,945 23,784
Total Net Operating Income 7,398 7,641 14,813 15,030
Office Nashville, TN [Member]        
Segment Reporting Information [Line Items]        
Total Rental and Other Revenues 24,415 21,770 47,781 43,586
Total Net Operating Income 17,613 15,480 34,428 30,712
Office Orlando, FL [Member]        
Segment Reporting Information [Line Items]        
Total Rental and Other Revenues 11,197 10,948 22,682 21,782
Total Net Operating Income 6,320 6,348 13,005 12,831
Office Pittsburgh, PA [Member]        
Segment Reporting Information [Line Items]        
Total Rental and Other Revenues 14,195 14,719 29,335 29,268
Total Net Operating Income 8,108 8,670 16,711 16,632
Office Raleigh, NC [Member]        
Segment Reporting Information [Line Items]        
Total Rental and Other Revenues 28,024 25,541 56,246 48,982
Total Net Operating Income 20,156 18,358 40,410 34,629
Office Richmond, VA [Member]        
Segment Reporting Information [Line Items]        
Total Rental and Other Revenues 10,937 10,203 22,006 20,787
Total Net Operating Income 7,687 6,932 15,116 13,812
Office Tampa, FL [Member]        
Segment Reporting Information [Line Items]        
Total Rental and Other Revenues 22,814 18,602 44,252 37,029
Total Net Operating Income 14,361 11,020 27,688 22,240
Other [Member]        
Segment Reporting Information [Line Items]        
Total Rental and Other Revenues 3,658 3,701 7,440 7,330
Total Net Operating Income $ 2,582 $ 2,545 $ 5,133 $ 5,037
v3.5.0.2
Subsequent Events (Details)
$ in Thousands
 1 Months Ended 3 Months Ended 6 Months Ended
Jul. 01, 2016
USD ($)
property
Jul. 18, 2016
USD ($)
Jun. 30, 2016
USD ($)
Mar. 31, 2016
USD ($)
Jun. 30, 2015
USD ($)
Jun. 30, 2016
USD ($)
Jun. 30, 2015
USD ($)
Subsequent Event [Line Items]              
Percentage of equity interest in joint ventures, maximum (in hundredths)     50.00%     50.00%  
Gain on disposition of property     $ 0   $ 16,054 $ 902 $ 18,181
Pittsburgh PA Land Acquisition (7/2016) [Member] | Subsequent Event [Member]              
Subsequent Event [Line Items]              
Number of buildings | property 1            
Acquisition purchase price $ 18,500            
Acquisition-related costs $ 500            
4600 Madison Associates, LLC Joint Venture [Member]              
Subsequent Event [Line Items]              
Percentage of equity interest in joint ventures, maximum (in hundredths)       12.50%      
Proceeds received from disposition of property       $ 3,400      
Gain on disposition of property       1,000      
Our share of gains on disposition of property       100      
Repayment of debt       $ 3,400      
4600 Madison Associates, LLC Joint Venture [Member] | Subsequent Event [Member]              
Subsequent Event [Line Items]              
Percentage of equity interest in joint ventures, maximum (in hundredths)   12.50%          
Proceeds received from disposition of property   $ 32,700          
Gain on disposition of property   21,300          
Our share of gains on disposition of property   1,900          
Repayment of debt   $ 6,300