|
[X]
|
Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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[ ]
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Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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|
Maryland
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001-13100
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56-1871668
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|
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(State or other jurisdiction
of incorporation or organization)
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(Commission
File Number)
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(I.R.S. Employer
Identification Number)
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|
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North Carolina
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000-21731
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56-1869557
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|
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(State or other jurisdiction
of incorporation or organization)
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(Commission
File Number)
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(I.R.S. Employer
Identification Number)
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|
Title of Each Class
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Name of Each Exchange on Which Registered
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Common Stock, $.01 par value, of Highwoods Properties, Inc.
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New York Stock Exchange
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|
Item No.
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Page
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PART I
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|
1.
|
||
1A.
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||
1B.
|
||
2.
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||
3.
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||
X.
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||
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PART II
|
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5.
|
||
6.
|
||
7.
|
||
7A.
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||
8.
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||
9.
|
||
9A.
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||
9B.
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||
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PART III
|
|
10.
|
||
11.
|
||
12.
|
||
13.
|
||
14.
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||
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PART IV
|
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15.
|
•
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owning high-quality, differentiated real estate assets in the key infill business districts in our core markets;
|
•
|
improving the operating results of our existing properties through concentrated leasing, asset management, cost control and customer service efforts;
|
•
|
developing and acquiring office properties in key infill business districts that improve the overall quality of our portfolio and generate attractive returns over the long-term for our stockholders;
|
•
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selectively disposing of properties no longer considered to be core assets primarily due to location, age, quality and overall strategic fit; and
|
•
|
maintaining a conservative, flexible balance sheet with ample liquidity to meet our funding needs and growth prospects.
|
•
|
the unavailability of favorable construction and/or permanent financing;
|
•
|
construction costs exceeding original estimates;
|
•
|
construction and lease-up delays resulting in increased debt service expense and construction costs; and
|
•
|
lower than anticipated occupancy rates and rents causing a property to be unprofitable or less profitable than originally estimated.
|
•
|
the level of institutional interest in us;
|
•
|
the perceived attractiveness of investment in us, in comparison to other REITs;
|
•
|
the attractiveness of securities of REITs in comparison to other asset classes;
|
•
|
our financial condition and performance;
|
•
|
the market's perception of our growth potential and potential future cash dividends;
|
•
|
government action or regulation, including changes in tax laws;
|
•
|
increases in market interest rates, which may lead investors to expect a higher annual yield from our distributions in relation to the price of the Common Stock;
|
•
|
changes in our credit ratings; and
|
•
|
any negative change in the level or stability of our dividend.
|
•
|
debt service requirements after taking into account debt covenants and the repayment and restructuring of certain indebtedness and the availability of alternative sources of debt and equity capital and their impact on our ability to refinance existing debt and grow our business;
|
•
|
scheduled increases in base rents of existing leases;
|
•
|
changes in rents attributable to the renewal of existing leases or replacement leases;
|
•
|
changes in occupancy rates at existing properties and execution of leases for newly acquired or developed properties;
|
•
|
changes in operating expenses;
|
•
|
anticipated leasing capital expenditures attributable to the renewal of existing leases or replacement leases;
|
•
|
anticipated building improvements; and
|
•
|
expected cash flows from financing and investing activities.
|
•
|
Ownership limit
. The Company's charter prohibits direct, indirect or constructive ownership by any person or entity of more than 9.8% of the Company's outstanding capital stock. Any attempt to own or transfer shares of capital stock in excess of the ownership limit without the consent of the Company's board of directors will be void.
|
•
|
Preferred Stock
. The Company's charter authorizes the board of directors to issue preferred stock in one or more classes and to establish the preferences and rights of any class of preferred stock issued. These actions can be taken without stockholder approval. The issuance of preferred stock could have the effect of delaying or preventing someone from taking control of the Company, even if a change in control were in our best interest.
|
•
|
Business combinations.
Pursuant to the Company's charter and Maryland law, the Company cannot merge into or consolidate with another corporation or enter into a statutory share exchange transaction in which the Company is not the surviving entity or sell all or substantially all of its assets unless the board of directors adopts a resolution declaring the proposed transaction advisable and a majority of the stockholders voting together as a single class approve the transaction. Maryland law prohibits stockholders from taking action by written consent unless all stockholders consent in writing. The practical effect of this limitation is that any action required or permitted to be taken by the Company's stockholders may only be taken if it is properly brought before an annual or special meeting of stockholders. The Company's bylaws further provide that in order for a stockholder to properly bring any matter before a meeting, the stockholder must comply with requirements regarding advance notice. The foregoing provisions could have the effect of delaying until the next annual meeting stockholder actions that the holders of a majority of the Company's outstanding voting securities favor. These provisions may also discourage another person from making a tender offer for the Company's common stock, because such person or entity, even if it acquired a majority of the Company's outstanding voting securities, would likely be able to take action as a stockholder, such as electing new directors or approving a merger, only at a duly called stockholders meeting. Maryland law also establishes special requirements with respect to business combinations between Maryland corporations and interested stockholders unless exemptions apply. Among other things, the law prohibits for five years a merger and other similar transactions between a company and an interested stockholder and requires a supermajority vote for such transactions after the end of the five-year period. The Company's charter contains a provision exempting the Company from the Maryland business combination statute. However, we cannot assure you that this charter provision will not be amended or repealed at any point in the future.
|
•
|
Control share acquisitions.
Maryland general corporation law also provides that control shares of a Maryland corporation acquired in a control share acquisition have no voting rights except to the extent approved by a vote of two-thirds of the votes entitled to be cast on the matter, excluding shares owned by the acquirer or by officers or employee directors. The control share acquisition statute does not apply to shares acquired in a merger, consolidation or share exchange if the corporation is a party to the transaction, or to acquisitions approved or exempted by the corporation's charter or bylaws. The Company's bylaws contain a provision exempting from the control share acquisition statute any stock acquired by any person. However, we cannot assure you that this bylaw provision will not be amended or repealed at any point in the future.
|
•
|
Maryland unsolicited takeover statute.
Under Maryland law, the Company's board of directors could adopt various anti-takeover provisions without the consent of stockholders. The adoption of such measures could discourage offers for the Company or make an acquisition of the Company more difficult, even when an acquisition would be in the best interest of the Company's stockholders.
|
•
|
Anti‑takeover protections of operating partnership agreement
. Upon a change in control of the Company, the partnership agreement of the Operating Partnership requires certain acquirers to maintain an umbrella partnership real estate investment trust structure with terms at least as favorable to the limited partners as are currently in place. For instance, the acquirer would be required to preserve the limited partner's right to continue to hold tax-deferred partnership interests that are redeemable for capital stock of the acquirer. Exceptions would require the approval of two-thirds of the limited partners of our Operating Partnership (other than the Company). These provisions may make a change of control transaction involving the Company more complicated and therefore might decrease the likelihood of such a transaction occurring, even if such a transaction would be in the best interest of the Company's stockholders.
|
|
December 31, 2012
|
|
December 31, 2011
|
||||||||
|
Rentable
Square Feet
|
|
Percent
Occupied/
Leased/
Pre-Leased
|
|
Rentable
Square Feet
|
|
Percent
Occupied/
Leased/
Pre-Leased
|
||||
In-Service
(Occupied)
:
|
|
|
|
|
|
|
|
||||
Office
|
23,361,000
|
|
|
90.0
|
%
|
|
22,612,000
|
|
|
89.2
|
%
|
Industrial
|
5,474,000
|
|
|
93.2
|
|
|
5,827,000
|
|
|
91.6
|
|
Retail
|
853,000
|
|
|
98.6
|
|
|
853,000
|
|
|
98.7
|
|
Total or Weighted Average
|
29,688,000
|
|
|
90.9
|
%
|
|
29,292,000
|
|
|
90.0
|
%
|
|
|
|
|
|
|
|
|
||||
Development
(Leased/pre-leased)
:
|
|
|
|
|
|
|
|
||||
Completed—Not Stabilized
(1)
|
|
|
|
|
|
|
|
||||
Office
|
—
|
|
|
—
|
%
|
|
117,000
|
|
|
100.0
|
%
|
Total or Weighted Average
|
—
|
|
|
—
|
%
|
|
117,000
|
|
|
100.0
|
%
|
In Process
(1)
|
|
|
|
|
|
|
|
||||
Office
|
246,000
|
|
|
89.9
|
%
|
|
228,000
|
|
|
88.9
|
%
|
Total or Weighted Average
|
246,000
|
|
|
89.9
|
%
|
|
228,000
|
|
|
88.9
|
%
|
|
|
|
|
|
|
|
|
||||
Total:
|
|
|
|
|
|
|
|
||||
Office
|
23,607,000
|
|
|
|
|
22,957,000
|
|
|
|
||
Industrial
|
5,474,000
|
|
|
|
|
5,827,000
|
|
|
|
||
Retail
|
853,000
|
|
|
|
|
853,000
|
|
|
|
||
Total
|
29,934,000
|
|
|
|
|
29,637,000
|
|
|
|
(1)
|
We consider a development project to be stabilized upon the earlier of the original projected stabilization date or the date such project is generally more than 90% occupied. None of these properties qualified for development in process as reflected in our Consolidated Balance Sheets since substantial development activity is not underway.
|
|
Year Ended December 31,
|
|||||||
|
2012
|
|
2011
|
|
2010
|
|||
|
(rentable square feet in thousands)
|
|||||||
Office, Industrial and Retail Properties:
|
|
|
|
|
|
|||
Dispositions
|
(1,179
|
)
|
|
(136
|
)
|
|
(1,309
|
)
|
Developments Placed In-Service
|
116
|
|
|
208
|
|
|
413
|
|
Redevelopment/Other
|
23
|
|
|
(53
|
)
|
|
(35
|
)
|
Acquisitions
|
1,436
|
|
|
2,091
|
|
|
336
|
|
Net Change in Square Footage of In-Service Wholly Owned Properties
|
396
|
|
|
2,110
|
|
|
(595
|
)
|
|
|
Rentable
Square Feet
|
|
Occupancy
|
|
Percentage of Annualized Cash Rental Revenue
(1)
|
||||||||||||
Market
|
|
Office
|
|
Industrial
|
|
Retail
|
|
Total
|
||||||||||
Raleigh
|
|
4,428,000
|
|
|
88.7
|
%
|
|
15.8
|
%
|
|
—
|
%
|
|
—
|
%
|
|
15.8
|
%
|
Atlanta
|
|
6,439,000
|
|
|
89.0
|
|
|
12.0
|
|
|
2.5
|
|
|
—
|
|
|
14.5
|
|
Tampa
|
|
2,912,000
|
|
|
91.5
|
|
|
12.7
|
|
|
—
|
|
|
—
|
|
|
12.7
|
|
Nashville
|
|
2,610,000
|
|
|
95.6
|
|
|
11.4
|
|
|
—
|
|
|
—
|
|
|
11.4
|
|
Kansas City
|
|
1,465,000
|
|
|
95.0
|
|
|
2.8
|
|
|
—
|
|
|
6.7
|
|
|
9.5
|
|
Richmond
|
|
2,229,000
|
|
|
94.9
|
|
|
8.1
|
|
|
—
|
|
|
—
|
|
|
8.1
|
|
Piedmont Triad
|
|
4,176,000
|
|
|
91.8
|
|
|
4.8
|
|
|
2.5
|
|
|
—
|
|
|
7.3
|
|
Memphis
|
|
1,960,000
|
|
|
86.5
|
|
|
7.1
|
|
|
—
|
|
|
—
|
|
|
7.1
|
|
Pittsburgh
|
|
2,156,000
|
|
|
91.0
|
|
|
9.5
|
|
|
—
|
|
|
—
|
|
|
9.5
|
|
Greenville
|
|
897,000
|
|
|
85.2
|
|
|
2.3
|
|
|
—
|
|
|
—
|
|
|
2.3
|
|
Orlando
|
|
416,000
|
|
|
94.5
|
|
|
1.8
|
|
|
—
|
|
|
—
|
|
|
1.8
|
|
Total
|
|
29,688,000
|
|
|
90.9
|
%
|
|
88.3
|
%
|
|
5.0
|
%
|
|
6.7
|
%
|
|
100.0
|
%
|
(1)
|
Annualized Cash Rental Revenue is cash rental revenue (base rent plus cost recovery income, excluding straight-line rent) for the month of
December 2012
multiplied by 12.
|
|
Average
Occupancy
|
|
Annualized GAAP Rent
Per Square
Foot
(1)
|
|
Annualized Cash Rent
Per Square
Foot
(2)
|
|||||
2008
|
91.2
|
%
|
|
$
|
17.41
|
|
|
$
|
17.18
|
|
2009
|
88.2
|
%
|
|
$
|
17.75
|
|
|
$
|
17.53
|
|
2010
|
88.6
|
%
|
|
$
|
18.03
|
|
|
$
|
17.40
|
|
2011
|
89.6
|
%
|
|
$
|
18.58
|
|
|
$
|
17.84
|
|
2012
|
90.3
|
%
|
|
$
|
17.90
|
|
|
$
|
18.42
|
|
(1)
|
Annualized GAAP Rent Per Square Foot is rental revenue (base rent plus cost recovery income, including straight-line rent) for the month of December of the respective year multiplied by 12, divided by total occupied square footage.
|
(2)
|
Annualized Cash Rent Per Square Foot is cash rental revenue (base rent plus cost recovery income, excluding straight-line rent) for the month of December of the respective year multiplied by 12, divided by total occupied square footage.
|
Customer
|
|
Rental Square
Feet
|
|
Annualized
Cash Rental
Revenue
(1)
|
|
Percent of
Total
Annualized
Cash Rental
Revenue
(1)
|
|
Weighted
Average
Remaining
Lease Term in
Years
|
|||||
|
|
|
|
(in thousands)
|
|
|
|
|
|||||
Federal Government
|
|
1,489,871
|
|
|
$
|
34,660
|
|
|
6.97
|
%
|
|
5.3
|
|
AT&T
|
|
579,906
|
|
|
11,507
|
|
|
2.32
|
|
|
1.2
|
|
|
PricewaterhouseCoopers
|
|
318,647
|
|
|
9,137
|
|
|
1.84
|
|
|
2.3
|
|
|
PPG Industries
|
|
340,483
|
|
|
8,735
|
|
|
1.76
|
|
|
8.5
|
|
|
Healthways
|
|
290,689
|
|
|
6,739
|
|
|
1.36
|
|
|
9.3
|
|
|
HCA Corporation
|
|
278,207
|
|
|
6,483
|
|
|
1.30
|
|
|
3.0
|
|
|
State of Georgia
|
|
358,620
|
|
|
6,469
|
|
|
1.30
|
|
|
6.7
|
|
|
Metropolitan Life Insurance
|
|
297,189
|
|
|
6,143
|
|
|
1.24
|
|
|
5.3
|
|
|
EQT Corporation
|
|
280,592
|
|
|
5,600
|
|
|
1.13
|
|
|
11.8
|
|
|
T-Mobile USA
|
|
210,971
|
|
|
5,509
|
|
|
1.11
|
|
|
1.6
|
|
|
Marsh USA
|
|
188,719
|
|
|
5,154
|
|
|
1.04
|
|
|
6.6
|
|
|
Lockton Companies
|
|
190,800
|
|
|
4,878
|
|
|
0.98
|
|
|
17.2
|
|
|
Aon
|
|
190,683
|
|
|
4,442
|
|
|
0.89
|
|
|
6.8
|
|
|
Vanderbilt University
|
|
198,783
|
|
|
4,385
|
|
|
0.88
|
|
|
2.7
|
|
|
BB&T
|
|
275,266
|
|
|
4,356
|
|
|
0.88
|
|
|
3.7
|
|
|
PNC Bank
|
|
169,840
|
|
|
4,326
|
|
|
0.87
|
|
|
13.5
|
|
|
Syniverse Technologies
|
|
198,750
|
|
|
4,267
|
|
|
0.86
|
|
|
3.8
|
|
|
SCI Services
|
|
162,784
|
|
|
3,897
|
|
|
0.78
|
|
|
4.6
|
|
|
Volvo
|
|
294,437
|
|
|
3,841
|
|
|
0.77
|
|
|
4.3
|
|
|
Jacobs Engineering Group
|
|
210,126
|
|
|
3,730
|
|
|
0.75
|
|
|
3.4
|
|
|
Total
|
|
6,525,363
|
|
|
$
|
144,258
|
|
|
29.03
|
%
|
|
5.7
|
|
(1)
|
Annualized Cash Rental Revenue is cash rental revenue (base rent plus cost recovery income, excluding straight-line rent) for the month of
December 2012
multiplied by 12.
|
|
|
Rentable
Square Feet
|
|
Weighted
Average
Ownership
Interest
(1)
|
|
Occupancy
|
|
Percentage of
Annualized
Cash Rental
Revenue
(2)
|
||||
Market
|
|
Office
|
||||||||||
Orlando, FL
|
|
1,793,000
|
|
|
36.4
|
%
|
|
82.8
|
%
|
|
39.8
|
%
|
Kansas City, MO
(3)
|
|
719,000
|
|
|
36.1
|
|
|
82.1
|
|
|
17.8
|
|
Atlanta, GA
|
|
840,000
|
|
|
38.7
|
|
|
80.7
|
|
|
16.0
|
|
Raleigh, NC
|
|
635,000
|
|
|
25.0
|
|
|
95.2
|
|
|
10.5
|
|
Richmond, VA
(4)
|
|
411,000
|
|
|
50.0
|
|
|
98.5
|
|
|
9.7
|
|
Piedmont Triad, NC
|
|
208,000
|
|
|
46.9
|
|
|
68.8
|
|
|
2.6
|
|
Tampa, FL
(4)
|
|
205,000
|
|
|
20.0
|
|
|
76.7
|
|
|
2.4
|
|
Charlotte, NC
|
|
148,000
|
|
|
22.8
|
|
|
100.0
|
|
|
1.2
|
|
Total
|
|
4,959,000
|
|
|
35.8
|
%
|
|
84.9
|
%
|
|
100.0
|
%
|
(1)
|
Weighted Average Ownership Interest is calculated using Rentable Square Feet.
|
(2)
|
Annualized Cash Rental Revenue is cash rental revenue (base rent plus cost recovery income, excluding straight-line rent) for the month of
December 2012
multiplied by 12.
|
(3)
|
Includes a 12.5% interest in a 261,000 square foot office property owned directly by the Company (not included in the Operating Partnership’s Consolidated Financial Statements).
|
(4)
|
This joint venture is consolidated.
|
Lease Expiring
|
|
Number of Leases Expiring
|
|
Rentable
Square Feet
Subject to
Expiring
Leases
|
|
Percentage of
Leased Square
Footage
Represented
by Expiring
Leases
|
|
Annualized
Cash Rental
Revenue
Under Expiring
Leases
(1)
|
|
Average
Annual Cash
Rental Rate
Per Square
Foot for
Expirations
|
|
Percent of
Annualized
Cash Rental
Revenue
Represented
by Expiring
Leases
(1)
|
||||||||
|
|
|
|
|
|
|
($ in thousands)
|
|
|
|
||||||||||
2013
(2)
|
|
390
|
|
|
1,922,614
|
|
|
9.1
|
%
|
|
$
|
42,295
|
|
|
$
|
22.00
|
|
|
9.6
|
%
|
2014
|
|
344
|
|
|
2,536,761
|
|
|
12.1
|
|
|
56,448
|
|
|
22.25
|
|
|
12.9
|
|
||
2015
|
|
302
|
|
|
2,693,824
|
|
|
12.9
|
|
|
58,135
|
|
|
21.58
|
|
|
13.3
|
|
||
2016
|
|
237
|
|
|
2,336,954
|
|
|
11.1
|
|
|
47,277
|
|
|
20.23
|
|
|
10.8
|
|
||
2017
|
|
226
|
|
|
2,644,134
|
|
|
12.6
|
|
|
57,112
|
|
|
21.60
|
|
|
13.0
|
|
||
2018
|
|
140
|
|
|
1,956,686
|
|
|
9.3
|
|
|
37,730
|
|
|
19.28
|
|
|
8.6
|
|
||
2019
|
|
65
|
|
|
1,396,259
|
|
|
6.6
|
|
|
27,721
|
|
|
19.85
|
|
|
6.3
|
|
||
2020
|
|
39
|
|
|
973,477
|
|
|
4.6
|
|
|
22,101
|
|
|
22.70
|
|
|
5.0
|
|
||
2021
|
|
37
|
|
|
1,384,808
|
|
|
6.6
|
|
|
29,976
|
|
|
21.65
|
|
|
6.8
|
|
||
2022
|
|
33
|
|
|
590,919
|
|
|
2.8
|
|
|
10,420
|
|
|
17.63
|
|
|
2.4
|
|
||
Thereafter
|
|
130
|
|
|
2,595,360
|
|
|
12.3
|
|
|
49,605
|
|
|
19.11
|
|
|
11.3
|
|
||
|
|
1,943
|
|
|
21,031,796
|
|
|
100.0
|
%
|
|
$
|
438,820
|
|
|
$
|
20.86
|
|
|
100.0
|
%
|
Lease Expiring
|
|
Number of Leases Expiring
|
|
Rentable
Square Feet
Subject to
Expiring
Leases
|
|
Percentage of
Leased Square
Footage
Represented
by Expiring
Leases
|
|
Annualized
Cash Rental
Revenue
Under
Expiring
Leases
(1)
|
|
Average
Annual Cash
Rental Rate
Per Square
Foot for
Expirations
|
|
Percent of
Annualized
Cash Rental
Revenue
Represented
by Expiring
Leases
(1)
|
||||||||
|
|
|
|
|
|
|
($ in thousands)
|
|
|
|
||||||||||
2013
(3)
|
|
53
|
|
|
745,142
|
|
|
14.6
|
%
|
|
$
|
4,310
|
|
|
$
|
5.78
|
|
|
17.2
|
%
|
2014
|
|
37
|
|
|
1,067,898
|
|
|
20.9
|
|
|
5,791
|
|
|
5.42
|
|
|
23.0
|
|
||
2015
|
|
22
|
|
|
416,241
|
|
|
8.2
|
|
|
2,254
|
|
|
5.42
|
|
|
9.0
|
|
||
2016
|
|
31
|
|
|
795,334
|
|
|
15.6
|
|
|
4,004
|
|
|
5.03
|
|
|
16.0
|
|
||
2017
|
|
20
|
|
|
552,545
|
|
|
10.8
|
|
|
2,820
|
|
|
5.10
|
|
|
11.2
|
|
||
2018
|
|
5
|
|
|
105,600
|
|
|
2.1
|
|
|
377
|
|
|
3.57
|
|
|
1.5
|
|
||
2019
|
|
6
|
|
|
253,455
|
|
|
5.0
|
|
|
1,034
|
|
|
4.08
|
|
|
4.1
|
|
||
2020
|
|
8
|
|
|
205,678
|
|
|
4.0
|
|
|
603
|
|
|
2.93
|
|
|
2.4
|
|
||
2021
|
|
1
|
|
|
117,805
|
|
|
2.3
|
|
|
299
|
|
|
2.54
|
|
|
1.2
|
|
||
2022
|
|
5
|
|
|
336,606
|
|
|
6.6
|
|
|
1,619
|
|
|
4.81
|
|
|
6.5
|
|
||
Thereafter
|
|
17
|
|
|
505,004
|
|
|
9.9
|
|
|
1,970
|
|
|
3.90
|
|
|
7.9
|
|
||
|
|
205
|
|
|
5,101,308
|
|
|
100.0
|
%
|
|
$
|
25,081
|
|
|
$
|
4.92
|
|
|
100.0
|
%
|
(1)
|
Annualized Cash Rental Revenue is cash rental revenue (base rent plus cost recovery income, excluding straight-line rent) for the month of
December 2012
multiplied by 12.
|
(2)
|
Includes
50,000
square feet of leases that are on a month-to-month basis, which represent
0.2%
of total annualized cash rental revenue.
|
(3)
|
Includes
166,000
square feet of leases that are on a month-to-month basis, which represent
0.1%
of total annualized cash rental revenue.
|
Lease Expiring
|
|
Number of Leases Expiring
|
|
Rentable
Square Feet
Subject to
Expiring
Leases
|
|
Percentage of
Leased Square
Footage
Represented
by Expiring
Leases
|
|
Annualized
Cash Rental
Revenue
Under
Expiring
Leases
(1)
|
|
Average
Annual Cash
Rental Rate
Per Square
Foot for
Expirations
|
|
Percent of
Annualized
Cash Rental
Revenue
Represented
by Expiring
Leases
(1)
|
||||||||
|
|
|
|
|
|
|
($ in thousands)
|
|
|
|
||||||||||
2013
(2)
|
|
36
|
|
|
99,351
|
|
|
11.8
|
%
|
|
$
|
2,227
|
|
|
$
|
22.42
|
|
|
6.7
|
%
|
2014
|
|
11
|
|
|
36,819
|
|
|
4.4
|
|
|
1,862
|
|
|
50.57
|
|
|
5.6
|
|
||
2015
|
|
18
|
|
|
101,923
|
|
|
12.0
|
|
|
3,561
|
|
|
34.94
|
|
|
10.8
|
|
||
2016
|
|
10
|
|
|
60,706
|
|
|
7.2
|
|
|
3,074
|
|
|
50.64
|
|
|
9.3
|
|
||
2017
|
|
10
|
|
|
94,937
|
|
|
11.3
|
|
|
2,630
|
|
|
27.70
|
|
|
8.0
|
|
||
2018
|
|
16
|
|
|
87,051
|
|
|
10.4
|
|
|
4,426
|
|
|
50.84
|
|
|
13.4
|
|
||
2019
|
|
9
|
|
|
86,740
|
|
|
10.3
|
|
|
2,869
|
|
|
33.08
|
|
|
8.7
|
|
||
2020
|
|
10
|
|
|
50,103
|
|
|
6.0
|
|
|
2,231
|
|
|
44.53
|
|
|
6.7
|
|
||
2021
|
|
12
|
|
|
83,786
|
|
|
10.0
|
|
|
3,585
|
|
|
42.79
|
|
|
10.8
|
|
||
2022
|
|
16
|
|
|
91,196
|
|
|
10.9
|
|
|
4,507
|
|
|
49.42
|
|
|
13.6
|
|
||
Thereafter
|
|
5
|
|
|
47,751
|
|
|
5.7
|
|
|
2,104
|
|
|
44.06
|
|
|
6.4
|
|
||
|
|
153
|
|
|
840,363
|
|
|
100.0
|
%
|
|
$
|
33,076
|
|
|
$
|
39.36
|
|
|
100.0
|
%
|
Lease Expiring
|
|
Number of Leases Expiring
|
|
Rentable
Square Feet
Subject to
Expiring
Leases
|
|
Percentage of
Leased Square
Footage
Represented
by Expiring
Leases
|
|
Annualized
Cash Rental
Revenue
Under
Expiring
Leases
(1)
|
|
Average
Annual Cash
Rental Rate
Per Square
Foot for
Expirations
|
|
Percent of
Annualized
Cash Rental
Revenue
Represented
by Expiring
Leases
(1)
|
||||||||
|
|
|
|
|
|
|
($ in thousands)
|
|
|
|
||||||||||
2013
(3)
|
|
479
|
|
|
2,767,107
|
|
|
10.3
|
%
|
|
$
|
48,832
|
|
|
$
|
17.65
|
|
|
9.8
|
%
|
2014
|
|
392
|
|
|
3,641,478
|
|
|
13.4
|
|
|
64,101
|
|
|
17.60
|
|
|
12.9
|
|
||
2015
|
|
342
|
|
|
3,211,988
|
|
|
11.9
|
|
|
63,950
|
|
|
19.91
|
|
|
12.9
|
|
||
2016
|
|
278
|
|
|
3,192,994
|
|
|
11.8
|
|
|
54,355
|
|
|
17.02
|
|
|
10.9
|
|
||
2017
|
|
256
|
|
|
3,291,616
|
|
|
12.2
|
|
|
62,562
|
|
|
19.01
|
|
|
12.6
|
|
||
2018
|
|
161
|
|
|
2,149,337
|
|
|
8.0
|
|
|
42,533
|
|
|
19.79
|
|
|
8.6
|
|
||
2019
|
|
80
|
|
|
1,736,454
|
|
|
6.4
|
|
|
31,624
|
|
|
18.21
|
|
|
6.4
|
|
||
2020
|
|
57
|
|
|
1,229,258
|
|
|
4.6
|
|
|
24,935
|
|
|
20.28
|
|
|
5.0
|
|
||
2021
|
|
50
|
|
|
1,586,399
|
|
|
5.9
|
|
|
33,860
|
|
|
21.34
|
|
|
6.8
|
|
||
2022
|
|
54
|
|
|
1,018,721
|
|
|
3.8
|
|
|
16,546
|
|
|
16.24
|
|
|
3.3
|
|
||
Thereafter
|
|
152
|
|
|
3,148,115
|
|
|
11.7
|
|
|
53,679
|
|
|
17.05
|
|
|
10.8
|
|
||
|
|
2,301
|
|
|
26,973,467
|
|
|
100.0
|
%
|
|
$
|
496,977
|
|
|
$
|
18.42
|
|
|
100.0
|
%
|
(1)
|
Annualized Cash Rental Revenue is cash rental revenue (base rent plus cost recovery income, excluding straight-line rent) for the month of
December 2012
multiplied by 12.
|
(2)
|
Includes
7,000
square feet of leases that are on a month-to-month basis, which represent less than
0.1%
of total annualized cash rental revenue.
|
(3)
|
Includes
223,000
square feet of leases that are on a month-to-month basis, which represent
0.4%
of total annualized cash rental revenue.
|
Name
|
|
Age
|
|
Position and Background
|
Edward J. Fritsch
|
|
54
|
|
Director, President and Chief Executive Officer.
Mr. Fritsch has been a director since January 2001. Mr. Fritsch became our chief executive officer and chair of the investment committee of our board of directors on July 1, 2004 and our president in December 2003. Prior to that, Mr. Fritsch was our chief operating officer from January 1998 to July 2004 and was a vice president and secretary from June 1994 to January 1998. Mr. Fritsch joined our predecessor in 1982 and was a partner of that entity at the time of our initial public offering in June 1994. Mr. Fritsch currently serves as a director and member of the audit and compensation committees of National Retail Properties, Inc., a publicly-traded REIT. Mr. Fritsch is also a member of NAREIT Board of Governors executive committee, director and president of the YMCA of the Triangle, director and audit committee member of Capital Associated Industries, Inc., Ravenscroft board of trustees, member of Wells Fargo's central regional advisory board, member of the University of North Carolina at Chapel Hill Foundation Board; director of the University of North Carolina at Chapel Hill Real Estate Holdings; member of the University of North Carolina Kenan-Flagler’s Business School Board of Visitors and past chair of the University of North Carolina’s board of visitors.
|
Michael E. Harris
|
|
63
|
|
Executive Vice President and Chief Operating Officer.
Mr. Harris became chief operating officer in July 2004. Prior to that, Mr. Harris was a senior vice president and was responsible for our operations in Memphis, Nashville, Kansas City, Baltimore and Charlotte. Mr. Harris was executive vice president of Crocker Realty Trust prior to its merger with us in 1996. Before joining Crocker Realty Trust, Mr. Harris served as senior vice president, general counsel and chief financial officer of Towermarc Corporation, a privately owned real estate development firm. Mr. Harris is past president of the Memphis Chapter of Lambda Alpha International Land Economics Society. Mr. Harris currently serves on the Advisory Board of the Graduate School of Real Estate at the University of Mississippi and is a past member of the Advisory Boards of Wachovia Bank- Memphis and Allen & Hoshall Engineering, Inc
.
|
Terry L. Stevens
|
|
64
|
|
Senior Vice President and Chief Financial Officer.
Prior to joining us in December 2003, Mr. Stevens was executive vice president, chief financial officer and trustee for Crown American Realty Trust, a public REIT. Before joining Crown American Realty Trust, Mr. Stevens was director of financial systems development at AlliedSignal, Inc., a large multi-national manufacturer. Mr. Stevens was also an audit partner with Price Waterhouse for seven years. Mr. Stevens currently serves as trustee, chairman of the Audit Committee and member of the Investment and Finance Committee of First Potomac Realty Trust, a public REIT. Mr. Stevens is a member of the American and the Pennsylvania Institutes of Certified Public Accountants.
|
Jeffrey D. Miller
|
|
42
|
|
Vice President, General Counsel and Secretary.
Prior to joining us in March 2007, Mr. Miller was a partner with DLA Piper US, LLP, where he practiced since 2005. Previously, Mr. Miller had been a partner with Alston & Bird LLP. Mr. Miller is admitted to practice in North Carolina. Mr. Miller currently serves as lead independent director of Hatteras Financial Corp., a publicly-traded mortgage REIT.
|
Theodore J. Klinck
|
|
47
|
|
Vice President and Chief Investment Officer.
Prior to joining us in March 2012, Mr. Klinck served as principal and chief investment officer with Goddard Investment Group, a privately owned real estate investment firm, since September 2009. Previously, Mr. Klinck had been a managing director at Morgan Stanley Real Estate.
|
Kevin E. Penn
|
|
41
|
|
Vice President, Chief Strategy and Administration Officer.
Mr. Penn became chief strategy and administration officer in January 2012. Mr. Penn joined us in 1997 and was our vice president of strategy from August 2005 to January 2012 and chief information officer from April 2002 to August 2005. Mr. Penn is a member of the Urban Land Institute, executive committee member of the Office, Technology and Operations Consortium and board member for the North Carolina Leukemia Lymphoma Society.
|
|
|
2012
|
|
2011
|
||||||||||||||||||||
Quarter Ended
|
|
High
|
|
Low
|
|
Dividend
|
|
High
|
|
Low
|
|
Dividend
|
||||||||||||
March 31
|
|
$
|
33.90
|
|
|
$
|
29.34
|
|
|
$
|
0.425
|
|
|
$
|
35.15
|
|
|
$
|
31.25
|
|
|
$
|
0.425
|
|
June 30
|
|
$
|
35.78
|
|
|
$
|
31.14
|
|
|
$
|
0.425
|
|
|
$
|
37.51
|
|
|
$
|
31.71
|
|
|
$
|
0.425
|
|
September 30
|
|
$
|
34.92
|
|
|
$
|
32.30
|
|
|
$
|
0.425
|
|
|
$
|
35.15
|
|
|
$
|
26.43
|
|
|
$
|
0.425
|
|
December 31
|
|
$
|
34.24
|
|
|
$
|
30.62
|
|
|
$
|
0.425
|
|
|
$
|
32.27
|
|
|
$
|
25.64
|
|
|
$
|
0.425
|
|
•
|
debt service requirements after taking into account debt covenants and the repayment and restructuring of certain indebtedness and the availability of alternative sources of debt and equity capital and their impact on our ability to refinance existing debt and grow our business;
|
•
|
scheduled increases in base rents of existing leases;
|
•
|
changes in rents attributable to the renewal of existing leases or replacement leases;
|
•
|
changes in occupancy rates at existing properties and execution of leases for newly acquired or developed properties;
|
•
|
changes in operating expenses;
|
•
|
anticipated leasing capital expenditures attributable to the renewal of existing leases or replacement leases;
|
•
|
anticipated building improvements; and
|
•
|
expected cash flows from financing and investing activities.
|
|
|
For the Period from December 31, 2007 to December 31,
|
|||||||||||||
Index
|
|
2008
|
|
2009
|
|
2010
|
|
2011
|
|
2012
|
|||||
Highwoods Properties, Inc.
|
|
98.56
|
|
|
128.53
|
|
|
129.85
|
|
|
127.54
|
|
|
151.44
|
|
S&P 500
|
|
63.00
|
|
|
79.68
|
|
|
91.68
|
|
|
93.61
|
|
|
108.59
|
|
Russell 2000
|
|
66.21
|
|
|
84.20
|
|
|
106.82
|
|
|
102.36
|
|
|
119.09
|
|
FTSE NAREIT All Equity REITs Index
|
|
62.27
|
|
|
79.70
|
|
|
101.99
|
|
|
110.45
|
|
|
130.39
|
|
|
Year Ended December 31,
|
||||||||||||||||||
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
2008
|
||||||||||
Rental and other revenues
|
$
|
516,102
|
|
|
$
|
463,444
|
|
|
$
|
440,836
|
|
|
$
|
429,212
|
|
|
$
|
425,775
|
|
Income from continuing operations
|
$
|
50,718
|
|
|
$
|
39,006
|
|
|
$
|
64,092
|
|
|
$
|
40,060
|
|
|
$
|
31,778
|
|
Income from discontinued operations
|
$
|
33,517
|
|
|
$
|
8,965
|
|
|
$
|
8,211
|
|
|
$
|
21,634
|
|
|
$
|
3,832
|
|
Income from continuing operations available for common stockholders
|
$
|
45,164
|
|
|
$
|
30,158
|
|
|
$
|
53,994
|
|
|
$
|
31,362
|
|
|
$
|
18,490
|
|
Net income
|
$
|
84,235
|
|
|
$
|
47,971
|
|
|
$
|
72,303
|
|
|
$
|
61,694
|
|
|
$
|
35,610
|
|
Net income available for common stockholders
|
$
|
77,087
|
|
|
$
|
38,677
|
|
|
$
|
61,790
|
|
|
$
|
51,778
|
|
|
$
|
22,080
|
|
Earnings per Common Share – basic:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations available for common stockholders
|
$
|
0.60
|
|
|
$
|
0.42
|
|
|
$
|
0.75
|
|
|
$
|
0.46
|
|
|
$
|
0.31
|
|
Net income
|
$
|
1.02
|
|
|
$
|
0.54
|
|
|
$
|
0.86
|
|
|
$
|
0.76
|
|
|
$
|
0.37
|
|
Earnings per Common Share – diluted:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations available for common stockholders
|
$
|
0.60
|
|
|
$
|
0.42
|
|
|
$
|
0.75
|
|
|
$
|
0.46
|
|
|
$
|
0.31
|
|
Net income
|
$
|
1.02
|
|
|
$
|
0.54
|
|
|
$
|
0.86
|
|
|
$
|
0.76
|
|
|
$
|
0.37
|
|
Dividends declared and paid per Common Share
|
$
|
1.70
|
|
|
$
|
1.70
|
|
|
$
|
1.70
|
|
|
$
|
1.70
|
|
|
$
|
1.70
|
|
|
December 31,
|
||||||||||||||||||
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
2008
|
||||||||||
Total assets
|
$
|
3,350,428
|
|
|
$
|
3,180,992
|
|
|
$
|
2,871,835
|
|
|
$
|
2,887,101
|
|
|
$
|
2,946,170
|
|
Mortgages and notes payable
|
$
|
1,859,162
|
|
|
$
|
1,868,906
|
|
|
$
|
1,488,638
|
|
|
$
|
1,443,500
|
|
|
$
|
1,588,080
|
|
Financing obligations
|
$
|
29,358
|
|
|
$
|
30,150
|
|
|
$
|
31,874
|
|
|
$
|
36,515
|
|
|
$
|
33,022
|
|
|
Year Ended December 31,
|
||||||||||||||||||
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
2008
|
||||||||||
Rental and other revenues
|
$
|
516,102
|
|
|
$
|
463,444
|
|
|
$
|
440,836
|
|
|
$
|
429,212
|
|
|
$
|
425,775
|
|
Income from continuing operations
|
$
|
50,778
|
|
|
$
|
39,067
|
|
|
$
|
64,065
|
|
|
$
|
40,006
|
|
|
$
|
31,651
|
|
Income from discontinued operations
|
$
|
33,517
|
|
|
$
|
8,965
|
|
|
$
|
8,211
|
|
|
$
|
21,634
|
|
|
$
|
3,832
|
|
Income from continuing operations available for common unitholders
|
$
|
47,484
|
|
|
$
|
31,864
|
|
|
$
|
56,872
|
|
|
$
|
33,287
|
|
|
$
|
19,698
|
|
Net income
|
$
|
84,295
|
|
|
$
|
48,032
|
|
|
$
|
72,276
|
|
|
$
|
61,640
|
|
|
$
|
35,483
|
|
Net income available for common unitholders
|
$
|
81,001
|
|
|
$
|
40,829
|
|
|
$
|
65,083
|
|
|
$
|
54,921
|
|
|
$
|
23,530
|
|
Earnings per Common Unit – basic:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations available for common unitholders
|
$
|
0.60
|
|
|
$
|
0.42
|
|
|
$
|
0.76
|
|
|
$
|
0.47
|
|
|
$
|
0.31
|
|
Net income
|
$
|
1.02
|
|
|
$
|
0.54
|
|
|
$
|
0.87
|
|
|
$
|
0.77
|
|
|
$
|
0.37
|
|
Earnings per Common Unit – diluted:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations available for common unitholders
|
$
|
0.60
|
|
|
$
|
0.42
|
|
|
$
|
0.76
|
|
|
$
|
0.47
|
|
|
$
|
0.31
|
|
Net income
|
$
|
1.02
|
|
|
$
|
0.54
|
|
|
$
|
0.87
|
|
|
$
|
0.77
|
|
|
$
|
0.37
|
|
Distributions declared and paid per Common Unit
|
$
|
1.70
|
|
|
$
|
1.70
|
|
|
$
|
1.70
|
|
|
$
|
1.70
|
|
|
$
|
1.70
|
|
|
December 31,
|
||||||||||||||||||
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
2008
|
||||||||||
Total assets
|
$
|
3,349,525
|
|
|
$
|
3,179,884
|
|
|
$
|
2,870,671
|
|
|
$
|
2,885,738
|
|
|
$
|
2,944,856
|
|
Mortgages and notes payable
|
$
|
1,859,162
|
|
|
$
|
1,868,906
|
|
|
$
|
1,488,638
|
|
|
$
|
1,443,500
|
|
|
$
|
1,588,080
|
|
Financing obligations
|
$
|
29,358
|
|
|
$
|
30,150
|
|
|
$
|
31,874
|
|
|
$
|
36,515
|
|
|
$
|
33,022
|
|
•
|
the financial condition of our customers could deteriorate;
|
•
|
we may not be able to lease or release second generation space, defined as previously occupied space that becomes available for lease, quickly or on as favorable terms as old leases;
|
•
|
we may not be able to lease our newly constructed buildings as quickly or on as favorable terms as originally anticipated;
|
•
|
we may not be able to complete development, acquisition, reinvestment, disposition or joint venture projects as quickly or on as favorable terms as anticipated;
|
•
|
development activity by our competitors in our existing markets could result in an excessive supply of office, industrial and retail properties relative to customer demand;
|
•
|
our markets may suffer declines in economic growth;
|
•
|
unanticipated increases in interest rates could increase our debt service costs;
|
•
|
unanticipated increases in operating expenses could negatively impact our operating results;
|
•
|
we may not be able to meet our liquidity requirements or obtain capital on favorable terms to fund our working capital needs and growth initiatives or to repay or refinance outstanding debt upon maturity; and
|
•
|
the Company could lose key executive officers.
|
•
|
owning high-quality, differentiated real estate assets in the key infill business districts in our core markets;
|
•
|
improving the operating results of our existing properties through concentrated leasing, asset management, cost control and customer service efforts;
|
•
|
developing and acquiring office properties in key infill business districts that improve the overall quality of our portfolio and generate attractive returns over the long-term for our stockholders;
|
•
|
selectively disposing of properties no longer considered to be core assets primarily due to location, age, quality and overall strategic fit; and
|
•
|
maintaining a conservative, flexible balance sheet with ample liquidity to meet our funding needs and growth prospects.
|
|
Year Ended December 31,
|
|
|
||||||||
|
2012
|
|
2011
|
|
Change
|
||||||
Net Cash Provided By Operating Activities
|
$
|
193,416
|
|
|
$
|
195,396
|
|
|
$
|
(1,980
|
)
|
Net Cash Used In Investing Activities
|
(238,812
|
)
|
|
(215,479
|
)
|
|
(23,333
|
)
|
|||
Net Cash Provided By Financing Activities
|
47,991
|
|
|
17,065
|
|
|
30,926
|
|
|||
Total Cash Flows
|
$
|
2,595
|
|
|
$
|
(3,018
|
)
|
|
$
|
5,613
|
|
|
December 31,
|
||||||
|
2012
|
|
2011
|
||||
Mortgages and notes payable, at recorded book value
(1)
|
$
|
1,859,162
|
|
|
$
|
1,903,213
|
|
Financing obligations
(1)
|
$
|
29,358
|
|
|
$
|
31,444
|
|
Preferred Stock, at liquidation value
|
$
|
29,077
|
|
|
$
|
29,077
|
|
Common Stock outstanding
|
80,311
|
|
|
72,648
|
|
||
Common Units outstanding (not owned by the Company)
|
3,733
|
|
|
3,730
|
|
||
Per share stock price at year end
|
$
|
33.45
|
|
|
$
|
29.67
|
|
Market value of Common Stock and Common Units
|
$
|
2,811,272
|
|
|
$
|
2,266,135
|
|
Total market capitalization
|
$
|
4,728,869
|
|
|
$
|
4,229,869
|
|
(1)
|
Amounts have not been retrospectively revised to reflect liabilities held for sale at December 31, 2011.
|
•
|
cash flow from operating activities;
|
•
|
bank term loans and borrowings under our revolving credit facility;
|
•
|
the issuance of unsecured debt;
|
•
|
the issuance of secured debt;
|
•
|
the issuance of equity securities by the Company or the Operating Partnership; and
|
•
|
the disposition of non-core assets.
|
•
|
a
492,000
square foot office property in Atlanta, GA for a purchase price of
$144.9 million
;
|
•
|
a
616,000
square foot office property in Pittsburgh, PA for a purchase price of
$91.2 million
;
|
•
|
three
medical office properties in Greensboro, NC for a purchase price of
$29.6 million
, which consisted of the issuance of
66,864
Common Units, contingent consideration with fair value at the acquisition date of
$0.7 million
, and the assumption of secured debt due
August 2014
recorded at fair value of
$7.9 million
, with an effective interest rate of
4.06%
; and
|
•
|
a
178,300
square foot office property in Cary, NC from our DLF I joint venture for an agreed upon value of
$26.0 million
, the net proceeds of which were used to reduce the balance of the advance due to us from the joint venture.
|
•
|
three
non-core buildings in Jackson, MS and Atlanta, GA for a sale price of
$86.5 million
and recorded gain on disposition of discontinued operations of
$14.0 million
;
|
•
|
five
non-core office properties in Nashville, TN for a sale price of
$41.0 million
and recorded gain on disposition of discontinued operations of
$7.0 million
;
|
•
|
a non-core office property in Pinellas County, FL for a sale price of
$9.5 million
and recorded gain on disposition of discontinued operations of
$1.4 million
;
|
•
|
a non-core office property in Kansas City, MO for a sale price of
$6.5 million
and recorded gain on disposition of discontinued operations of
$1.9 million
;
|
•
|
96
vacant non-core rental residential units in Kansas City, MO for a sale price of
$11.0 million
and recorded gain on disposition of discontinued operations of
$5.1 million
; and
|
•
|
17
for-sale residential condominiums in Raleigh, NC for a sale price of
$5.5 million
and recorded a net gain of
$0.4 million
. All for-sale condominiums were sold as of December 31, 2012.
|
|
Face Amount
|
|
Carrying Amount
|
|
Stated Interest Rate
|
|
Effective Interest Rate
|
||||||
Notes due in 2017
|
$
|
379,685
|
|
|
$
|
379,194
|
|
|
5.850
|
%
|
|
5.880
|
%
|
Notes due in 2018
|
$
|
200,000
|
|
|
$
|
200,000
|
|
|
7.500
|
%
|
|
7.500
|
%
|
Notes due in 2023
|
$
|
250,000
|
|
|
$
|
247,361
|
|
|
3.625
|
%
|
|
3.752
|
%
|
|
|
|
Amounts due during the years ending December 31,
|
|
|
||||||||||||||||||||||
|
Total
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
Thereafter
|
||||||||||||||
Mortgages and Notes Payable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Principal payments
(1)
|
$
|
1,858,216
|
|
|
$
|
122,944
|
|
|
$
|
111,972
|
|
|
$
|
67,456
|
|
|
$
|
192,638
|
|
|
$
|
488,206
|
|
|
$
|
875,000
|
|
Interest payments
|
419,032
|
|
|
90,883
|
|
|
79,378
|
|
|
77,961
|
|
|
66,751
|
|
|
45,591
|
|
|
58,468
|
|
|||||||
Financing Obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
SF-HIW Harborview Plaza, LP financing obligation
|
12,747
|
|
|
—
|
|
|
12,747
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Tax increment financing bond
|
11,787
|
|
|
1,365
|
|
|
1,460
|
|
|
1,561
|
|
|
1,669
|
|
|
1,785
|
|
|
3,947
|
|
|||||||
Interest on financing obligations
(2)
|
3,486
|
|
|
817
|
|
|
722
|
|
|
621
|
|
|
513
|
|
|
397
|
|
|
416
|
|
|||||||
Capitalized Lease Obligations
|
260
|
|
|
123
|
|
|
105
|
|
|
32
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Purchase Obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Lease and contractual commitments
(3)
|
121,990
|
|
|
113,913
|
|
|
6,142
|
|
|
1,097
|
|
|
514
|
|
|
163
|
|
|
161
|
|
|||||||
Operating Lease Obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Operating ground leases
|
62,016
|
|
|
2,383
|
|
|
2,404
|
|
|
2,427
|
|
|
2,451
|
|
|
2,476
|
|
|
49,875
|
|
|||||||
Other Long Term Obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
DLF I obligation
|
243
|
|
|
243
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Future infrastructure funding
|
8,438
|
|
|
618
|
|
|
5,520
|
|
|
2,300
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total
|
$
|
2,498,215
|
|
|
$
|
333,289
|
|
|
$
|
220,450
|
|
|
$
|
153,455
|
|
|
$
|
264,536
|
|
|
$
|
538,618
|
|
|
$
|
987,867
|
|
(1)
|
Excludes amortization of premiums, discounts and/or purchase accounting adjustments.
|
(2)
|
Does not include interest on the SF-HIW Harborview Plaza, LP financing obligation, which cannot be reasonably estimated for future periods. The interest expense on this financing obligation was
$(0.3) million
,
$0.8 million
and
$1.1 million
in
2012
,
2011
and
2010
, respectively.
|
(3)
|
Amount represents commitments under signed leases and contracts for operating properties, excluding tenant-funded tenant improvements, and contracts for development/redevelopment projects. The timing of these expenditures may fluctuate.
|
2013
|
$
|
23,458
|
|
2014
|
57,163
|
|
|
2015
|
21,821
|
|
|
2016
|
1,054
|
|
|
2017
|
26,452
|
|
|
Thereafter
(1)
|
7,313
|
|
|
|
$
|
137,261
|
|
(1)
|
Includes our 12.5% portion of a $9.4 million mortgage payable related to an equity method investee owned directly by the Company (not included in the Operating Partnership’s Consolidated Financial Statements).
|
•
|
Real estate and related assets;
|
•
|
Impairments of real estate assets and investments in unconsolidated affiliates;
|
•
|
Sales of real estate;
|
•
|
Rental and other revenues; and
|
•
|
Allowance for doubtful accounts.
|
•
|
Net income/(loss) computed in accordance with GAAP;
|
•
|
Less net income attributable to noncontrolling interests in consolidated affiliates;
|
•
|
Plus depreciation and amortization of depreciable operating properties;
|
•
|
Less gains, or plus losses, from sales of depreciable operating properties, plus impairments on depreciable operating properties and excluding items that are classified as extraordinary items under GAAP;
|
•
|
Plus or minus our proportionate share of adjustments, including depreciation and amortization of depreciable operating properties, for unconsolidated partnerships and joint ventures (to reflect funds from operations on the same basis); and
|
•
|
Plus or minus adjustments for depreciation and amortization and gains/(losses) on sales of depreciable operating properties, plus impairments on depreciable operating properties, and noncontrolling interests in consolidated affiliates related to discontinued operations.
|
|
Year Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Funds from operations:
|
|
|
|
|
|
||||||
Net income
|
$
|
84,235
|
|
|
$
|
47,971
|
|
|
$
|
72,303
|
|
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
(786
|
)
|
|
(755
|
)
|
|
(485
|
)
|
|||
Depreciation and amortization of real estate assets
|
154,236
|
|
|
135,925
|
|
|
128,497
|
|
|||
Impairments of depreciable properties
|
—
|
|
|
2,429
|
|
|
—
|
|
|||
(Gains) on disposition of depreciable properties
|
—
|
|
|
—
|
|
|
(74
|
)
|
|||
(Gains) on disposition of investments in unconsolidated affiliates
|
—
|
|
|
—
|
|
|
(25,330
|
)
|
|||
Unconsolidated affiliates:
|
|
|
|
|
|
||||||
Depreciation and amortization of real estate assets
|
7,736
|
|
|
8,388
|
|
|
10,471
|
|
|||
Impairments of depreciable properties
|
1,002
|
|
|
—
|
|
|
—
|
|
|||
(Gains) on disposition of depreciable properties
|
(1,120
|
)
|
|
—
|
|
|
—
|
|
|||
Discontinued operations:
|
|
|
|
|
|
||||||
Depreciation and amortization of real estate assets
|
2,009
|
|
|
5,256
|
|
|
5,926
|
|
|||
Impairments of depreciable properties
|
—
|
|
|
—
|
|
|
260
|
|
|||
(Gains) on disposition of depreciable properties
|
(29,455
|
)
|
|
(2,573
|
)
|
|
(174
|
)
|
|||
Funds from operations
|
217,857
|
|
|
196,641
|
|
|
191,394
|
|
|||
Dividends on Preferred Stock
|
(2,508
|
)
|
|
(4,553
|
)
|
|
(6,708
|
)
|
|||
Excess of Preferred Stock redemption/repurchase cost over carrying value
|
—
|
|
|
(1,895
|
)
|
|
—
|
|
|||
Funds from operations available for common stockholders
|
$
|
215,349
|
|
|
$
|
190,193
|
|
|
$
|
184,686
|
|
Funds from operations available for common stockholders per share
|
$
|
2.70
|
|
|
$
|
2.50
|
|
|
$
|
2.44
|
|
Weighted average shares outstanding
(1)
|
79,678
|
|
|
76,189
|
|
|
75,578
|
|
(1)
|
Includes assumed conversion of all potentially dilutive Common Stock equivalents.
|
|
|
Year Ended December 31,
|
||||||
|
|
2012
|
|
2011
|
||||
Income from continuing operations before disposition of property, condominiums and investments in unconsolidated affiliates and equity in earnings of unconsolidated affiliates
|
|
$
|
45,239
|
|
|
$
|
31,398
|
|
Other income
|
|
(6,380
|
)
|
|
(7,363
|
)
|
||
Interest expense
|
|
96,114
|
|
|
95,510
|
|
||
General and administrative expenses
|
|
37,377
|
|
|
35,727
|
|
||
Impairments of real estate assets
|
|
—
|
|
|
2,429
|
|
||
Depreciation and amortization
|
|
156,318
|
|
|
137,890
|
|
||
Net operating income from continuing operations
|
|
328,668
|
|
|
295,591
|
|
||
Less – non same property and other net operating income
|
|
41,285
|
|
|
16,150
|
|
||
Total same property net operating income from continuing operations
|
|
$
|
287,383
|
|
|
$
|
279,441
|
|
|
|
|
|
|
||||
Rental and other revenues
|
|
$
|
516,102
|
|
|
$
|
463,444
|
|
Rental property and other expenses
|
|
187,434
|
|
|
167,853
|
|
||
Total net operating income from continuing operations
|
|
328,668
|
|
|
295,591
|
|
||
Less – non same property and other net operating income
|
|
41,285
|
|
|
16,150
|
|
||
Total same property net operating income from continuing operations
|
|
$
|
287,383
|
|
|
$
|
279,441
|
|
|
|
|
|
|
||||
Total same property net operating income from continuing operations
|
|
$
|
287,383
|
|
|
$
|
279,441
|
|
Less – straight-line rent and lease termination fees
|
|
10,185
|
|
|
11,953
|
|
||
Same property cash net operating income from continuing operations
|
|
$
|
277,198
|
|
|
$
|
267,488
|
|
See page
55
for Index to Consolidated Financial Statements of Highwoods Properties, Inc. and Highwoods Realty Limited Partnership.
|
•
|
activities undertaken and reports issued by employees responsible for testing our internal control over financial reporting;
|
•
|
quarterly sub-certifications by representatives from appropriate business and accounting functions to support the CEO's and CFO's evaluations of our controls and procedures;
|
•
|
other personnel in our finance and accounting organization;
|
•
|
members of our internal disclosure committee; and
|
•
|
members of the audit committee of the Company's Board of Directors.
|
•
|
pertain to the maintenance of records that in reasonable detail accurately and fairly reflect transactions and dispositions of assets;
|
•
|
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that receipts and expenditures are being made only in accordance with authorizations of management and directors; and
|
•
|
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of assets that could have a material effect on the financial statements.
|
Reference is made to the Index to Consolidated Financial Statements on page
55
for a list of the consolidated financial statements of Highwoods Properties, Inc. and Highwoods Realty Limited Partnership included in this report.
|
Exhibit
Number
|
|
Description
|
3.1
|
|
Amended and Restated Charter of the Company (filed as part of the Company’s Current Report on Form 8-K dated May 15, 2008)
|
3.2
|
|
Amended and Restated Bylaws of the Company (filed as part of the Company’s Current Report on Form 8-K dated May 15, 2008)
|
4.1
|
|
Indenture among the Operating Partnership, the Company and First Union National Bank of North Carolina dated as of December 1, 1996 (filed as part of the Operating Partnership’s Current Report on Form 8-K dated December 2, 1996)
|
4.2
|
|
Form of 3.625% Notes due January 15, 2023 (filed as part of the Company's Current Report on Form 8-K dated December 18, 2012)
|
4.3
|
|
Officers' Certificate Establishing the Terms of the 3.625% Notes, dated as of December 18, 2012 (filed as part of the Company's Current Report on Form 8-K dated December 18, 2012)
|
10.1
|
|
Second Restated Agreement of Limited Partnership, dated as of January 1, 2000, of the Operating Partnership (filed as part of the Company’s Annual Report on Form 10-K for the year ended December 31, 2004)
|
10.2
|
|
Amendment No. 1, dated as of July 22, 2004, to the Second Restated Agreement of Limited Partnership, dated as of January 1, 2000, of the Operating Partnership (filed as part of the Company’s Annual Report on Form 10-K for the year ended December 31, 2004)
|
10.3
|
*
|
2009 Long-Term Equity Incentive Plan (filed as part of the Company’s Current Report on Form 8-K dated May 13, 2009)
|
10.4
|
|
Form of warrants to purchase Common Stock of the Company (filed as part of the Company’s Annual Report on Form 10-K for the year ended December 31, 1997)
|
10.5
|
|
Third Amended and Restated Credit Agreement, dated as of July 27, 2011, by and among the Company, the Operating Partnership and the Subsidiaries named therein and the Lenders named therein (filed as part of the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2011)
|
10.6
|
|
First Amendment, dated as of October 12, 2012, to Third Amended and Restated Credit Agreement, dated as of July 27, 2011, by and among the Company, the Operating Partnership and the Subsidiaries named therein and the Lenders named therein (filed as part of the Company's Current Report on Form 8-K dated October 11, 2012)
|
10.7
|
|
Credit Agreement, dated as of February 2, 2011, by and among the Company, the Operating Partnership and the Subsidiaries named therein and the Lenders named therein (filed as part of the Company's Annual Report on Form 10-K for the year ended December 31, 2010)
|
10.8
|
|
Amendment No. 1, dated as of July 27, 2011, to Credit Agreement, dated as of February 2, 2011, by and among the Company, the Operating Partnership and the Subsidiaries named therein and the Lenders named therein (filed as part of our Quarterly Report on Form 10-Q for the quarter ended June 30, 2011)
|
10.9
|
|
Second Amendment, dated as of October 11, 2012, to Credit Agreement, dated as of February 2, 2011, by and among the Company, the Operating Partnership and the Subsidiaries named therein and the Lenders named therein (filed as part of the Company's Current Report on Form 8-K dated October 11, 2012)
|
10.10
|
*
|
Highwoods Properties, Inc. Retirement Plan, effective as of March 1, 2006 (filed as part of the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2007)
|
Exhibit
Number
|
|
Description
|
10.11
|
*
|
Amended and Restated Executive Supplemental Employment Agreement, dated as of February 12, 2012, between the Company and Edward J. Fritsch
|
10.12
|
*
|
Amended and Restated Executive Supplemental Employment Agreement, dated as of February 12, 2012, between the Company and Michael E. Harris
|
10.13
|
*
|
Amended and Restated Executive Supplemental Employment Agreement, dated as of February 12, 2012, between the Company and Terry L. Stevens
|
10.14
|
*
|
Amended and Restated Executive Supplemental Employment Agreement, dated as of February 12, 2012, between the Company and Jeffrey D. Miller
|
10.15
|
*
|
Highwoods Properties, Inc. Amended and Restated Employee Stock Purchase Plan (filed as part of the Company’s Current Report on Form 8-K dated May 12, 2010)
|
10.16
|
*
|
Amendment No. 1 to the Amended and Restated Employee Stock Purchase Plan of the Company (filed as part of the Company's Annual Report on Form 10-K for the year ended December 31, 2010)
|
10.17
|
|
Credit Agreement, dated as of January 11, 2012, by and among the Company, the Operating Partnership and the Subsidiaries named therein and the Lenders named therein (filed as part of the Company's Current Report on Form 8-K dated January 11, 2012)
|
10.18
|
|
First Amendment, dated as of October 11, 2012, to Credit Agreement, dated as of January 11, 2012, by and among the Company, the Operating Partnership and the Subsidiaries named therein and the Lenders named therein (filed as part of the Company's Current Report on Form 8-K dated October 11, 2012)
|
12.1
|
|
Statement re: Computation of Ratios of the Company
|
12.2
|
|
Statement re: Computation of Ratios of the Operating Partnership
|
21
|
|
Schedule of Subsidiaries
|
23.1
|
|
Consent of Deloitte & Touche LLP for the Company
|
23.2
|
|
Consent of Deloitte & Touche LLP for the Operating Partnership
|
31.1
|
|
Certification of CEO Pursuant to Section 302 of the Sarbanes-Oxley Act for the Company
|
31.2
|
|
Certification of CFO Pursuant to Section 302 of the Sarbanes-Oxley Act for the Company
|
31.3
|
|
Certification of CEO Pursuant to Section 302 of the Sarbanes-Oxley Act for the Operating Partnership
|
31.4
|
|
Certification of CFO Pursuant to Section 302 of the Sarbanes-Oxley Act for the Operating Partnership
|
32.1
|
|
Certification of CEO Pursuant to Section 906 of the Sarbanes-Oxley Act for the Company
|
32.2
|
|
Certification of CFO Pursuant to Section 906 of the Sarbanes-Oxley Act for the Company
|
32.3
|
|
Certification of CEO Pursuant to Section 906 of the Sarbanes-Oxley Act for the Operating Partnership
|
32.4
|
|
Certification of CFO Pursuant to Section 906 of the Sarbanes-Oxley Act for the Operating Partnership
|
101.INS
|
|
XBRL Instance Document
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB
|
|
XBRL Extension Labels Linkbase
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
Page
|
|
|
Highwoods Properties, Inc.
|
|
Consolidated Financial Statements:
|
|
|
|
Highwoods Realty Limited Partnership:
|
|
Consolidated Financial Statements:
|
|
|
|
|
|
|
December 31,
|
||||||
|
2012
|
|
2011
|
||||
Assets:
|
|
|
|
||||
Real estate assets, at cost:
|
|
|
|
||||
Land
|
$
|
374,212
|
|
|
$
|
355,694
|
|
Buildings and tenant improvements
|
3,304,468
|
|
|
3,009,155
|
|
||
Development in process
|
21,198
|
|
|
—
|
|
||
Land held for development
|
117,784
|
|
|
105,206
|
|
||
|
3,817,662
|
|
|
3,470,055
|
|
||
Less-accumulated depreciation
|
(947,567
|
)
|
|
(869,046
|
)
|
||
Net real estate assets
|
2,870,095
|
|
|
2,601,009
|
|
||
For-sale residential condominiums
|
—
|
|
|
4,751
|
|
||
Real estate and other assets, net, held for sale
|
—
|
|
|
124,273
|
|
||
Cash and cash equivalents
|
13,783
|
|
|
11,188
|
|
||
Restricted cash
|
19,702
|
|
|
26,666
|
|
||
Accounts receivable, net of allowance of $2,848 and $3,548, respectively
|
23,073
|
|
|
30,093
|
|
||
Mortgages and notes receivable, net of allowance of $182 and $61, respectively
|
25,472
|
|
|
18,600
|
|
||
Accrued straight-line rents receivable, net of allowance of $929 and $1,294, respectively
|
116,992
|
|
|
99,490
|
|
||
Investments in and advances to unconsolidated affiliates
|
66,800
|
|
|
100,367
|
|
||
Deferred financing and leasing costs, net of accumulated amortization of $77,383 and $62,319, respectively
|
170,023
|
|
|
127,774
|
|
||
Prepaid expenses and other assets, net of accumulated amortization of $12,318 and $15,089,
respectively |
44,488
|
|
|
36,781
|
|
||
Total Assets
|
$
|
3,350,428
|
|
|
$
|
3,180,992
|
|
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity:
|
|
|
|
||||
Mortgages and notes payable
|
$
|
1,859,162
|
|
|
$
|
1,868,906
|
|
Accounts payable, accrued expenses and other liabilities
|
172,146
|
|
|
148,607
|
|
||
Financing obligations
|
29,358
|
|
|
30,150
|
|
||
Liabilities held for sale
|
—
|
|
|
35,815
|
|
||
Total Liabilities
|
2,060,666
|
|
|
2,083,478
|
|
||
Commitments and contingencies
|
|
|
|
||||
Noncontrolling interests in the Operating Partnership
|
124,869
|
|
|
110,655
|
|
||
Equity:
|
|
|
|
||||
Preferred Stock, $.01 par value, 50,000,000 authorized shares;
|
|
|
|
||||
8.625% Series A Cumulative Redeemable Preferred Shares (liquidation preference $1,000 per share), 29,077 shares issued and outstanding
|
29,077
|
|
|
29,077
|
|
||
Common Stock, $.01 par value, 200,000,000 authorized shares;
|
|
|
|
||||
80,311,437 and 72,647,697 shares issued and outstanding, respectively
|
803
|
|
|
726
|
|
||
Additional paid-in capital
|
2,040,306
|
|
|
1,803,997
|
|
||
Distributions in excess of net income available for common stockholders
|
(897,418
|
)
|
|
(845,853
|
)
|
||
Accumulated other comprehensive loss
|
(12,628
|
)
|
|
(5,734
|
)
|
||
Total Stockholders’ Equity
|
1,160,140
|
|
|
982,213
|
|
||
Noncontrolling interests in consolidated affiliates
|
4,753
|
|
|
4,646
|
|
||
Total Equity
|
1,164,893
|
|
|
986,859
|
|
||
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity
|
$
|
3,350,428
|
|
|
$
|
3,180,992
|
|
|
|||||||||||
|
Year Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Rental and other revenues
|
$
|
516,102
|
|
|
$
|
463,444
|
|
|
$
|
440,836
|
|
Operating expenses:
|
|
|
|
|
|
||||||
Rental property and other expenses
|
187,434
|
|
|
167,853
|
|
|
155,771
|
|
|||
Depreciation and amortization
|
156,318
|
|
|
137,890
|
|
|
130,232
|
|
|||
Impairments of real estate assets
|
—
|
|
|
2,429
|
|
|
—
|
|
|||
General and administrative
|
37,377
|
|
|
35,727
|
|
|
32,948
|
|
|||
Total operating expenses
|
381,129
|
|
|
343,899
|
|
|
318,951
|
|
|||
Interest expense:
|
|
|
|
|
|
||||||
Contractual
|
92,838
|
|
|
91,458
|
|
|
87,409
|
|
|||
Amortization of deferred financing costs
|
3,685
|
|
|
3,312
|
|
|
3,385
|
|
|||
Financing obligations
|
(409
|
)
|
|
740
|
|
|
2,157
|
|
|||
|
96,114
|
|
|
95,510
|
|
|
92,951
|
|
|||
Other income:
|
|
|
|
|
|
||||||
Interest and other income
|
7,353
|
|
|
7,387
|
|
|
6,362
|
|
|||
Losses on debt extinguishment
|
(973
|
)
|
|
(24
|
)
|
|
(705
|
)
|
|||
|
6,380
|
|
|
7,363
|
|
|
5,657
|
|
|||
Income from continuing operations before disposition of property, condominiums and investments in unconsolidated affiliates and equity in earnings of unconsolidated affiliates
|
45,239
|
|
|
31,398
|
|
|
34,591
|
|
|||
Gains on disposition of property
|
—
|
|
|
764
|
|
|
74
|
|
|||
Gains/(losses) on for-sale residential condominiums
|
444
|
|
|
(316
|
)
|
|
276
|
|
|||
Gains on disposition of investments in unconsolidated affiliates
|
—
|
|
|
2,282
|
|
|
25,330
|
|
|||
Equity in earnings of unconsolidated affiliates
|
5,035
|
|
|
4,878
|
|
|
3,821
|
|
|||
Income from continuing operations
|
50,718
|
|
|
39,006
|
|
|
64,092
|
|
|||
Discontinued operations:
|
|
|
|
|
|
||||||
Income from discontinued operations
|
4,062
|
|
|
6,392
|
|
|
8,297
|
|
|||
Net gains/(losses) on disposition of discontinued operations
|
29,455
|
|
|
2,573
|
|
|
(86
|
)
|
|||
|
33,517
|
|
|
8,965
|
|
|
8,211
|
|
|||
Net income
|
84,235
|
|
|
47,971
|
|
|
72,303
|
|
|||
Net (income) attributable to noncontrolling interests in the Operating Partnership
|
(3,854
|
)
|
|
(2,091
|
)
|
|
(3,320
|
)
|
|||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
(786
|
)
|
|
(755
|
)
|
|
(485
|
)
|
|||
Dividends on Preferred Stock
|
(2,508
|
)
|
|
(4,553
|
)
|
|
(6,708
|
)
|
|||
Excess of Preferred Stock redemption/repurchase cost over carrying value
|
—
|
|
|
(1,895
|
)
|
|
—
|
|
|||
Net income available for common stockholders
|
$
|
77,087
|
|
|
$
|
38,677
|
|
|
$
|
61,790
|
|
Earnings per Common Share – basic:
|
|
|
|
|
|
||||||
Income from continuing operations available for common stockholders
|
$
|
0.60
|
|
|
$
|
0.42
|
|
|
$
|
0.75
|
|
Income from discontinued operations available for common stockholders
|
0.42
|
|
|
0.12
|
|
|
0.11
|
|
|||
Net income available for common stockholders
|
$
|
1.02
|
|
|
$
|
0.54
|
|
|
$
|
0.86
|
|
Weighted average Common Shares outstanding – basic
|
75,811
|
|
|
72,281
|
|
|
71,578
|
|
|||
Earnings per Common Share – diluted:
|
|
|
|
|
|
||||||
Income from continuing operations available for common stockholders
|
$
|
0.60
|
|
|
$
|
0.42
|
|
|
$
|
0.75
|
|
Income from discontinued operations available for common stockholders
|
0.42
|
|
|
0.12
|
|
|
0.11
|
|
|||
Net income available for common stockholders
|
$
|
1.02
|
|
|
$
|
0.54
|
|
|
$
|
0.86
|
|
Weighted average Common Shares outstanding – diluted
|
79,678
|
|
|
76,189
|
|
|
75,578
|
|
|||
Net income available for common stockholders:
|
|
|
|
|
|
||||||
Income from continuing operations available for common stockholders
|
$
|
45,164
|
|
|
$
|
30,158
|
|
|
$
|
53,994
|
|
Income from discontinued operations available for common stockholders
|
31,923
|
|
|
8,519
|
|
|
7,796
|
|
|||
Net income available for common stockholders
|
$
|
77,087
|
|
|
$
|
38,677
|
|
|
$
|
61,790
|
|
|
Year Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Comprehensive income:
|
|
|
|
|
|
||||||
Net income
|
$
|
84,235
|
|
|
$
|
47,971
|
|
|
$
|
72,303
|
|
Other comprehensive income/(loss):
|
|
|
|
|
|
||||||
Unrealized gains/(losses) on tax increment financing bond
|
411
|
|
|
234
|
|
|
(177
|
)
|
|||
Unrealized losses on cash flow hedges
|
(10,358
|
)
|
|
(2,202
|
)
|
|
—
|
|
|||
Amortization of cash flow hedges
|
3,053
|
|
|
(118
|
)
|
|
237
|
|
|||
Sale of cash flow hedge related to disposition of investments in unconsolidated affiliate
|
—
|
|
|
—
|
|
|
103
|
|
|||
Total other comprehensive income/(loss)
|
(6,894
|
)
|
|
(2,086
|
)
|
|
163
|
|
|||
Total comprehensive income
|
77,341
|
|
|
45,885
|
|
|
72,466
|
|
|||
Less-comprehensive (income) attributable to noncontrolling interests
|
(4,640
|
)
|
|
(2,846
|
)
|
|
(3,805
|
)
|
|||
Comprehensive income attributable to common stockholders
|
$
|
72,701
|
|
|
$
|
43,039
|
|
|
$
|
68,661
|
|
|
||||||||||||||||||||||||||||||||||
|
Number of Common Shares
|
|
Common Stock
|
|
Series A Cumulative Redeemable Preferred Shares
|
|
Series B Cumulative Redeemable Preferred Shares
|
|
Additional Paid-In Capital
|
|
Accumulated Other Compre-hensive Loss
|
|
Non-controlling Interests in Consolidated Affiliates
|
|
Distributions in Excess of Net Income Available for Common Stockholders
|
|
Total
|
|||||||||||||||||
Balance at December 31, 2009
|
71,285,303
|
|
|
$
|
713
|
|
|
$
|
29,092
|
|
|
$
|
52,500
|
|
|
$
|
1,751,398
|
|
|
$
|
(3,811
|
)
|
|
$
|
5,183
|
|
|
$
|
(701,932
|
)
|
|
$
|
1,133,143
|
|
Issuances of Common Stock, net
|
143,907
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
2,997
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,998
|
|
||||||||
Conversions of Common Units to Common Stock
|
97,134
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
3,060
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,061
|
|
||||||||
Dividends on Common Stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(121,643
|
)
|
|
(121,643
|
)
|
||||||||
Dividends on Preferred Stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,708
|
)
|
|
(6,708
|
)
|
||||||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,721
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,721
|
|
||||||||
Distributions to noncontrolling interests in consolidated affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(568
|
)
|
|
—
|
|
|
(568
|
)
|
||||||||
Acquisition of noncontrolling interest in consolidated affiliate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
140
|
|
|
—
|
|
|
(640
|
)
|
|
—
|
|
|
(500
|
)
|
||||||||
Issuances of restricted stock
|
164,143
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Share-based compensation expense
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
6,570
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,572
|
|
||||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,320
|
)
|
|
(3,320
|
)
|
||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
485
|
|
|
(485
|
)
|
|
—
|
|
||||||||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
72,303
|
|
|
72,303
|
|
||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
163
|
|
|
—
|
|
|
—
|
|
|
163
|
|
||||||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
72,466
|
|
||||||||||||||||
Balance at December 31, 2010
|
71,690,487
|
|
|
717
|
|
|
29,092
|
|
|
52,500
|
|
|
1,766,886
|
|
|
(3,648
|
)
|
|
4,460
|
|
|
(761,785
|
)
|
|
1,088,222
|
|
||||||||
Issuances of Common Stock, net
|
758,389
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
23,262
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,270
|
|
||||||||
Conversions of Common Units to Common Stock
|
64,469
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,906
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,906
|
|
||||||||
Dividends on Common Stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(122,745
|
)
|
|
(122,745
|
)
|
||||||||
Dividends on Preferred Stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,553
|
)
|
|
(4,553
|
)
|
||||||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,955
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,955
|
|
||||||||
Distributions to noncontrolling interests in consolidated affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(569
|
)
|
|
—
|
|
|
(569
|
)
|
||||||||
Issuances of restricted stock
|
134,352
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Redemptions/repurchases of Preferred Stock
|
—
|
|
|
—
|
|
|
(15
|
)
|
|
(52,500
|
)
|
|
1,895
|
|
|
—
|
|
|
—
|
|
|
(1,895
|
)
|
|
(52,515
|
)
|
||||||||
Share-based compensation expense
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
6,093
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,094
|
|
||||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,091
|
)
|
|
(2,091
|
)
|
||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
755
|
|
|
(755
|
)
|
|
—
|
|
||||||||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47,971
|
|
|
47,971
|
|
||||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,086
|
)
|
|
—
|
|
|
—
|
|
|
(2,086
|
)
|
||||||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
45,885
|
|
||||||||||||||||
Balance at December 31, 2011
|
72,647,697
|
|
|
$
|
726
|
|
|
$
|
29,077
|
|
|
$
|
—
|
|
|
$
|
1,803,997
|
|
|
$
|
(5,734
|
)
|
|
$
|
4,646
|
|
|
$
|
(845,853
|
)
|
|
$
|
986,859
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HIGHWOODS PROPERTIES, INC.
Consolidated Statements of Equity - Continued
(in thousands, except share amounts)
|
||||||||||||||||||||||||||||||||||
|
Number of Common Shares
|
|
Common Stock
|
|
Series A Cumulative Redeemable Preferred Shares
|
|
Series B Cumulative Redeemable Preferred Shares
|
|
Additional Paid-In Capital
|
|
Accumulated Other Compre-hensive Loss
|
|
Non-controlling Interests in Consolidated Affiliates
|
|
Distributions in Excess of Net Income Available for Common Stockholders
|
|
Total
|
|||||||||||||||||
Balance at December 31, 2011
|
72,647,697
|
|
|
$
|
726
|
|
|
$
|
29,077
|
|
|
$
|
—
|
|
|
$
|
1,803,997
|
|
|
$
|
(5,734
|
)
|
|
$
|
4,646
|
|
|
$
|
(845,853
|
)
|
|
$
|
986,859
|
|
Issuances of Common Stock, net
|
7,441,489
|
|
|
74
|
|
|
—
|
|
|
—
|
|
|
243,094
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
243,168
|
|
||||||||
Conversions of Common Units to Common Stock
|
63,366
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,096
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,096
|
|
||||||||
Dividends on Common Stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(128,652
|
)
|
|
(128,652
|
)
|
||||||||
Dividends on Preferred Stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,508
|
)
|
|
(2,508
|
)
|
||||||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16,491
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16,491
|
)
|
||||||||
Distributions to noncontrolling interests in consolidated affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(679
|
)
|
|
—
|
|
|
(679
|
)
|
||||||||
Issuances of restricted stock
|
158,885
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Share-based compensation expense
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
7,610
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,613
|
|
||||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,854
|
)
|
|
(3,854
|
)
|
||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
786
|
|
|
(786
|
)
|
|
—
|
|
||||||||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
84,235
|
|
|
84,235
|
|
||||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,894
|
)
|
|
—
|
|
|
—
|
|
|
(6,894
|
)
|
||||||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
77,341
|
|
||||||||||||||||
Balance at December 31, 2012
|
80,311,437
|
|
|
$
|
803
|
|
|
$
|
29,077
|
|
|
$
|
—
|
|
|
$
|
2,040,306
|
|
|
$
|
(12,628
|
)
|
|
$
|
4,753
|
|
|
$
|
(897,418
|
)
|
|
$
|
1,164,893
|
|
|
Year Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
84,235
|
|
|
$
|
47,971
|
|
|
$
|
72,303
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
158,327
|
|
|
143,146
|
|
|
136,158
|
|
|||
Amortization of lease incentives and acquisition-related intangible assets and liabilities
|
355
|
|
|
1,446
|
|
|
1,239
|
|
|||
Share-based compensation expense
|
7,613
|
|
|
6,094
|
|
|
6,572
|
|
|||
Allowance for losses on accounts and accrued straight-line rents receivable
|
1,059
|
|
|
2,521
|
|
|
4,009
|
|
|||
Amortization of deferred financing costs
|
3,685
|
|
|
3,312
|
|
|
3,385
|
|
|||
Amortization of cash flow hedges
|
3,053
|
|
|
(118
|
)
|
|
237
|
|
|||
Impairments of real estate assets
|
—
|
|
|
2,429
|
|
|
—
|
|
|||
Losses on debt extinguishment
|
973
|
|
|
24
|
|
|
705
|
|
|||
Net (gains)/losses on disposition of property
|
(29,455
|
)
|
|
(3,337
|
)
|
|
12
|
|
|||
(Gains)/losses on for-sale residential condominiums
|
(444
|
)
|
|
316
|
|
|
(276
|
)
|
|||
Gains on disposition of investments in unconsolidated affiliates
|
—
|
|
|
(2,282
|
)
|
|
(25,330
|
)
|
|||
Equity in earnings of unconsolidated affiliates
|
(5,035
|
)
|
|
(4,878
|
)
|
|
(3,821
|
)
|
|||
Changes in financing obligations
|
(1,282
|
)
|
|
(476
|
)
|
|
708
|
|
|||
Distributions of earnings from unconsolidated affiliates
|
4,618
|
|
|
5,029
|
|
|
4,433
|
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||||||
Accounts receivable
|
3,132
|
|
|
(8,498
|
)
|
|
(3,290
|
)
|
|||
Prepaid expenses and other assets
|
(1,129
|
)
|
|
(400
|
)
|
|
370
|
|
|||
Accrued straight-line rents receivable
|
(17,919
|
)
|
|
(13,604
|
)
|
|
(11,889
|
)
|
|||
Accounts payable, accrued expenses and other liabilities
|
(18,370
|
)
|
|
16,701
|
|
|
5,012
|
|
|||
Net cash provided by operating activities
|
193,416
|
|
|
195,396
|
|
|
190,537
|
|
|||
Investing activities:
|
|
|
|
|
|
||||||
Investments in acquired real estate and related intangible assets, net of cash acquired
|
(269,847
|
)
|
|
(75,510
|
)
|
|
(20,281
|
)
|
|||
Investments in development in process
|
(13,288
|
)
|
|
(5,835
|
)
|
|
(223
|
)
|
|||
Investments in tenant improvements and deferred leasing costs
|
(79,639
|
)
|
|
(80,934
|
)
|
|
(55,858
|
)
|
|||
Investments in building improvements
|
(35,799
|
)
|
|
(22,287
|
)
|
|
(26,355
|
)
|
|||
Net proceeds from disposition of real estate assets
|
152,456
|
|
|
17,717
|
|
|
6,801
|
|
|||
Net proceeds from disposition of for-sale residential condominiums
|
5,195
|
|
|
3,020
|
|
|
4,952
|
|
|||
Proceeds from disposition of investments in unconsolidated affiliates
|
—
|
|
|
4,756
|
|
|
15,000
|
|
|||
Distributions of capital from unconsolidated affiliates
|
1,311
|
|
|
1,577
|
|
|
1,933
|
|
|||
Investments in mortgage receivable
|
(8,648
|
)
|
|
—
|
|
|
—
|
|
|||
Repayments of mortgages and notes receivable
|
1,776
|
|
|
444
|
|
|
329
|
|
|||
Investments in and advances/repayments to/from unconsolidated affiliates
|
8,291
|
|
|
(39,901
|
)
|
|
(2,875
|
)
|
|||
Changes in restricted cash and other investing activities
|
(620
|
)
|
|
(18,526
|
)
|
|
(1,578
|
)
|
|||
Net cash used in investing activities
|
(238,812
|
)
|
|
(215,479
|
)
|
|
(78,155
|
)
|
|||
Financing activities:
|
|
|
|
|
|
||||||
Dividends on Common Stock
|
(128,652
|
)
|
|
(122,745
|
)
|
|
(121,643
|
)
|
|||
Redemptions/repurchases of Preferred Stock
|
—
|
|
|
(52,515
|
)
|
|
—
|
|
|||
Dividends on Preferred Stock
|
(2,508
|
)
|
|
(4,553
|
)
|
|
(6,708
|
)
|
|||
Distributions to noncontrolling interests in the Operating Partnership
|
(6,334
|
)
|
|
(6,413
|
)
|
|
(6,469
|
)
|
|||
Distributions to noncontrolling interests in consolidated affiliates
|
(679
|
)
|
|
(569
|
)
|
|
(568
|
)
|
|||
Acquisition of noncontrolling interest in consolidated affiliate
|
—
|
|
|
—
|
|
|
(500
|
)
|
|||
Proceeds from the issuance of Common Stock
|
249,489
|
|
|
23,270
|
|
|
2,998
|
|
|||
Costs paid for the issuance of Common Stock
|
(3,600
|
)
|
|
—
|
|
|
—
|
|
|||
Repurchase of shares related to tax withholdings
|
(2,721
|
)
|
|
—
|
|
|
—
|
|
|||
Borrowings on revolving credit facility
|
524,100
|
|
|
525,800
|
|
|
37,500
|
|
|||
Repayments of revolving credit facility
|
(863,100
|
)
|
|
(193,800
|
)
|
|
(7,500
|
)
|
|||
Borrowings on mortgages and notes payable
|
507,350
|
|
|
200,000
|
|
|
10,368
|
|
|||
Repayments of mortgages and notes payable
|
(219,530
|
)
|
|
(344,203
|
)
|
|
(27,004
|
)
|
|||
Borrowings on financing obligations
|
1,839
|
|
|
—
|
|
|
—
|
|
|||
Payments on financing obligations
|
(1,316
|
)
|
|
(1,194
|
)
|
|
(1,116
|
)
|
|||
Payments on debt extinguishment
|
(908
|
)
|
|
—
|
|
|
(577
|
)
|
|||
Additions to deferred financing costs and other financing activities
|
(5,439
|
)
|
|
(6,013
|
)
|
|
(656
|
)
|
|||
Net cash provided by/(used in) financing activities
|
47,991
|
|
|
17,065
|
|
|
(121,875
|
)
|
|
Year Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Net increase/(decrease) in cash and cash equivalents
|
$
|
2,595
|
|
|
$
|
(3,018
|
)
|
|
$
|
(9,493
|
)
|
Cash and cash equivalents at beginning of the period
|
11,188
|
|
|
14,206
|
|
|
23,699
|
|
|||
Cash and cash equivalents at end of the period
|
$
|
13,783
|
|
|
$
|
11,188
|
|
|
$
|
14,206
|
|
|
Year Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Cash paid for interest, net of amounts capitalized
|
$
|
93,547
|
|
|
$
|
90,838
|
|
|
$
|
86,395
|
|
|
Year Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Unrealized losses on cash flow hedges
|
$
|
(10,358
|
)
|
|
$
|
(2,202
|
)
|
|
$
|
—
|
|
Conversion of Common Units to Common Stock
|
2,096
|
|
|
1,906
|
|
|
3,061
|
|
|||
Changes in accrued capital expenditures
|
8,116
|
|
|
11,048
|
|
|
(1,946
|
)
|
|||
Write-off of fully depreciated real estate assets
|
48,978
|
|
|
48,565
|
|
|
43,955
|
|
|||
Write-off of fully amortized deferred financing and leasing costs
|
19,176
|
|
|
19,987
|
|
|
15,719
|
|
|||
Unrealized gains/(losses) on marketable securities of non-qualified deferred compensation plan
|
475
|
|
|
(119
|
)
|
|
382
|
|
|||
Settlement of financing obligation
|
—
|
|
|
—
|
|
|
4,184
|
|
|||
Adjustment of noncontrolling interests in the Operating Partnership to fair value
|
16,491
|
|
|
(3,955
|
)
|
|
(2,721
|
)
|
|||
Unrealized gain/(loss) on tax increment financing bond
|
411
|
|
|
234
|
|
|
(177
|
)
|
|||
Mortgages receivable from seller financing
|
—
|
|
|
—
|
|
|
17,030
|
|
|||
Assumption of mortgages and notes payable related to acquisition activities
|
7,837
|
|
|
192,367
|
|
|
40,306
|
|
|||
Reduction of advances to unconsolidated affiliates related to acquisition activities
|
26,000
|
|
|
—
|
|
|
—
|
|
|||
Issuances of Common Units to noncontrolling interests to acquire real estate assets
|
2,299
|
|
|
—
|
|
|
—
|
|
•
|
a
492,000
square foot office property in Atlanta, GA for a purchase price of
$144.9 million
;
|
•
|
a
616,000
square foot office property in Pittsburgh, PA for a purchase price of
$91.2 million
;
|
•
|
three
medical office properties in Greensboro, NC for a purchase price of
$29.6 million
, which consisted of the issuance of
66,864
Common Units to noncontrolling interests, contingent consideration with fair value at the acquisition date of
$0.7 million
, and the assumption of secured debt due
August 2014
recorded at fair value of
$7.9 million
, with an effective interest rate of
4.06%
;
|
•
|
a
178,300
square foot office property in Cary, NC from our DLF I joint venture for an agreed upon value of
$26.0 million
, the net proceeds of which were used to reduce the balance of the advance due to us from the joint venture; and
|
•
|
68
acres of development land currently zoned for
1.3 million
square feet of future office development in Nashville, TN for a purchase price of
$15.0 million
.
|
|
Total
Purchase Price Allocation
|
||
Real estate assets
|
$
|
135,128
|
|
Acquisition-related intangible assets (in deferred financing and leasing costs)
|
21,637
|
|
|
Acquisition-related below market lease liabilities (in accounts payable, accrued expenses and other liabilities)
|
(11,875
|
)
|
|
Total allocation
|
$
|
144,890
|
|
|
Year Ended December 31,
|
||||||
|
2012
|
|
2011
|
||||
|
(unaudited)
|
||||||
Pro forma rental and other revenues
|
$
|
530,613
|
|
|
$
|
479,908
|
|
Pro forma net income
|
$
|
84,135
|
|
|
$
|
44,817
|
|
Pro forma earnings per share - basic
|
$
|
1.02
|
|
|
$
|
0.49
|
|
Pro forma earnings per share - diluted
|
$
|
1.01
|
|
|
$
|
0.49
|
|
|
Total
Purchase Price Allocation
|
||
Real estate assets
|
$
|
241,602
|
|
Acquisition-related intangible assets (in deferred financing and leasing costs)
|
39,721
|
|
|
Furniture, fixtures and equipment (in prepaid expenses and other assets)
|
1,101
|
|
|
Acquisition-related below market lease liabilities (in accounts payable, accrued expenses and other liabilities)
|
(15,627
|
)
|
|
Total allocation
|
$
|
266,797
|
|
|
Year Ended December 31,
|
||||||
|
2011
|
|
2010
|
||||
|
(unaudited)
|
||||||
Pro forma rental and other revenues
|
$
|
505,072
|
|
|
$
|
491,573
|
|
Pro forma net income
|
$
|
45,674
|
|
|
$
|
65,409
|
|
Pro forma earnings per share - basic
|
$
|
0.50
|
|
|
$
|
0.77
|
|
Pro forma earnings per share - diluted
|
$
|
0.50
|
|
|
$
|
0.77
|
|
•
|
three
non-core buildings in Jackson, MS and Atlanta, GA for a sale price of
$86.5 million
and recorded gain on disposition of discontinued operations of
$14.0 million
;
|
•
|
five
non-core office properties in Nashville, TN for a sale price of
$41.0 million
and recorded gain on disposition of discontinued operations of
$7.0 million
;
|
•
|
a non-core office property in Pinellas County, FL for a sale price of
$9.5 million
and recorded gain on disposition of discontinued operations of
$1.4 million
;
|
•
|
a non-core office property in Kansas City, MO for a sale price of
$6.5 million
and recorded gain on disposition of discontinued operations of
$1.9 million
;
|
•
|
96
vacant non-core rental residential units in Kansas City, MO for a sale price of
$11.0 million
and recorded gain on disposition of discontinued operations of
$5.1 million
; and
|
•
|
17
for-sale residential condominiums in Raleigh, NC for a sale price of
$5.5 million
and recorded a net gain of
$0.4 million
. All for-sale residential condominiums were sold as of December 31, 2012.
|
|
December 31,
|
||||||
|
2012
|
|
2011
|
||||
Seller financing (first mortgages)
|
$
|
15,853
|
|
|
$
|
17,180
|
|
Less allowance
|
—
|
|
|
—
|
|
||
|
15,853
|
|
|
17,180
|
|
||
Mortgage receivable
|
8,648
|
|
|
—
|
|
||
Less allowance
|
—
|
|
|
—
|
|
||
|
8,648
|
|
|
—
|
|
||
Promissory notes
|
1,153
|
|
|
1,481
|
|
||
Less allowance
|
(182
|
)
|
|
(61
|
)
|
||
|
971
|
|
|
1,420
|
|
||
Mortgages and notes receivable, net
|
$
|
25,472
|
|
|
$
|
18,600
|
|
|
December 31,
|
||||||
|
2012
|
|
2011
|
||||
Beginning notes receivable allowance
|
$
|
61
|
|
|
$
|
868
|
|
Bad debt expense
|
186
|
|
|
196
|
|
||
Recoveries/write-offs/other
|
(65
|
)
|
|
(1,003
|
)
|
||
Total notes receivable allowance
|
$
|
182
|
|
|
$
|
61
|
|
Joint Venture
|
|
Location of Properties
|
|
Ownership
Interest
|
Concourse Center Associates, LLC
|
|
Greensboro, NC
|
|
50.0%
|
Plaza Colonnade, LLC
|
|
Kansas City, MO
|
|
50.0%
|
Lofts at Weston, LLC
|
|
Raleigh, NC
|
|
50.0%
|
Board of Trade Investment Company
|
|
Kansas City, MO
|
|
49.0%
|
Highwoods DLF 97/26 DLF 99/32, LP
|
|
Atlanta, GA; Greensboro, NC; Orlando, FL
|
|
42.9%
|
Highwoods KC Glenridge Office, LLC
|
|
Atlanta, GA
|
|
40.0%
|
Highwoods KC Glenridge Land, LLC
|
|
Atlanta, GA
|
|
39.9%
|
HIW-KC Orlando, LLC
|
|
Orlando, FL
|
|
40.0%
|
Kessinger/Hunter, LLC
|
|
Kansas City, MO
|
|
26.5%
|
Highwoods DLF Forum, LLC
|
|
Raleigh, NC
|
|
25.0%
|
Highwoods DLF 98/29, LLC
|
|
Atlanta, GA; Charlotte, NC; Greensboro, NC; Raleigh, NC; Orlando, FL
|
|
22.8%
|
4600 Madison Associates, LP
|
|
Kansas City, MO
|
|
12.5%
|
|
December 31,
|
||||||
|
2012
|
|
2011
|
||||
Balance Sheets:
|
|
|
|
||||
Assets:
|
|
|
|
||||
Real estate assets, net
|
$
|
491,180
|
|
|
$
|
536,088
|
|
All other assets, net
|
113,734
|
|
|
96,944
|
|
||
Total Assets
|
$
|
604,914
|
|
|
$
|
633,032
|
|
Liabilities and Partners’ or Shareholders’ Equity:
|
|
|
|
||||
Mortgages and notes payable
(1)
|
$
|
370,393
|
|
|
$
|
406,875
|
|
All other liabilities
|
24,507
|
|
|
21,808
|
|
||
Partners’ or shareholders’ equity
|
210,014
|
|
|
204,349
|
|
||
Total Liabilities and Partners’ or Shareholders’ Equity
|
$
|
604,914
|
|
|
$
|
633,032
|
|
Our share of historical partners’ or shareholders’ equity
|
$
|
63,847
|
|
|
$
|
59,584
|
|
Advances to unconsolidated affiliate
|
—
|
|
|
38,323
|
|
||
Net excess of cost of investments over the net book value of underlying net assets
(2)
|
2,953
|
|
|
2,460
|
|
||
Carrying value of investments in and advances to unconsolidated affiliates
|
$
|
66,800
|
|
|
$
|
100,367
|
|
Our share of unconsolidated non-recourse mortgage debt
(1)
|
$
|
137,261
|
|
|
$
|
146,926
|
|
(1)
|
Our share of scheduled future principal payments, including amortization, due on mortgages and notes payable at
December 31, 2012
is as follows:
|
2013
|
$
|
23,458
|
|
2014
|
57,163
|
|
|
2015
|
21,821
|
|
|
2016
|
1,054
|
|
|
2017
|
26,452
|
|
|
Thereafter
|
7,313
|
|
|
|
$
|
137,261
|
|
(2)
|
This amount represents the aggregate difference between our historical cost basis and the basis reflected at the joint venture level, which is typically depreciated over the life of the related asset.
|
|
Year Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Income Statements:
|
|
|
|
|
|
||||||
Rental and other revenues
|
$
|
101,233
|
|
|
$
|
100,958
|
|
|
$
|
119,868
|
|
Expenses:
|
|
|
|
|
|
||||||
Rental property and other expenses
|
47,762
|
|
|
44,584
|
|
|
56,868
|
|
|||
Depreciation and amortization
|
25,253
|
|
|
26,430
|
|
|
31,401
|
|
|||
Impairments of real estate assets
|
7,180
|
|
|
—
|
|
|
—
|
|
|||
Interest expense
|
20,953
|
|
|
23,762
|
|
|
27,956
|
|
|||
Total expenses
|
101,148
|
|
|
94,776
|
|
|
116,225
|
|
|||
Income before disposition of properties
|
85
|
|
|
6,182
|
|
|
3,643
|
|
|||
Gains on disposition of properties
|
11,184
|
|
|
—
|
|
|
—
|
|
|||
Net income
|
$
|
11,269
|
|
|
$
|
6,182
|
|
|
$
|
3,643
|
|
Our share of:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
$
|
7,736
|
|
|
$
|
8,388
|
|
|
$
|
10,471
|
|
Impairments of real estate assets
|
$
|
1,002
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest expense
|
$
|
7,368
|
|
|
$
|
8,163
|
|
|
$
|
10,545
|
|
Gains on disposition of properties
|
$
|
1,120
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Net income
|
$
|
3,304
|
|
|
$
|
2,429
|
|
|
$
|
1,466
|
|
|
|
|
|
|
|
||||||
Our share of net income
|
$
|
3,304
|
|
|
$
|
2,429
|
|
|
$
|
1,466
|
|
Adjustment for management and other fees
|
1,731
|
|
|
2,449
|
|
|
2,355
|
|
|||
Equity in earnings of unconsolidated affiliates
|
$
|
5,035
|
|
|
$
|
4,878
|
|
|
$
|
3,821
|
|
|
December 31,
|
||||||
|
2012
|
|
2011
|
||||
Assets:
|
|
|
|
||||
Deferred financing costs
|
$
|
21,759
|
|
|
$
|
18,044
|
|
Less accumulated amortization
|
(7,862
|
)
|
|
(5,797
|
)
|
||
|
13,897
|
|
|
12,247
|
|
||
Deferred leasing costs (including lease incentives and acquisition-related intangible assets)
|
225,647
|
|
|
172,049
|
|
||
Less accumulated amortization
|
(69,521
|
)
|
|
(56,522
|
)
|
||
|
156,126
|
|
|
115,527
|
|
||
Deferred financing and leasing costs, net
|
$
|
170,023
|
|
|
$
|
127,774
|
|
|
|
|
|
||||
Liabilities (in accounts payable, accrued expenses and other liabilities):
|
|
|
|
||||
Acquisition-related below market lease liabilities
|
$
|
37,019
|
|
|
$
|
16,441
|
|
Less accumulated amortization
|
(3,383
|
)
|
|
(971
|
)
|
||
|
$
|
33,636
|
|
|
$
|
15,470
|
|
|
Year Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Amortization of deferred financing costs
|
$
|
3,685
|
|
|
$
|
3,312
|
|
|
$
|
3,385
|
|
Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization)
|
$
|
27,731
|
|
|
$
|
20,980
|
|
|
$
|
17,383
|
|
Amortization of lease incentives (in rental and other revenues)
|
$
|
1,439
|
|
|
$
|
1,371
|
|
|
$
|
1,239
|
|
Amortization of acquisition-related intangible assets (in rental and other revenues)
|
$
|
1,357
|
|
|
$
|
915
|
|
|
$
|
531
|
|
Amortization of acquisition-related intangible assets (in rental property and other expenses)
|
$
|
186
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Amortization of acquisition-related below market lease liabilities (in rental and other revenues)
|
$
|
(2,627
|
)
|
|
$
|
(840
|
)
|
|
$
|
(96
|
)
|
Years Ending December 31,
|
|
Amortization
of Deferred Financing
Costs
|
|
Amortization
of Deferred Leasing Costs and Acquisition-Related Intangible Assets (in Depreciation and Amortization)
|
|
Amortization
of Lease Incentives (in Rental and Other Revenues)
|
|
Amortization
of Acquisition-Related Intangible Assets (in Rental and Other Revenues)
|
|
Amortization of Acquisition-Related Intangible Assets (in Rental Property and Other Expenses)
|
|
Amortization
of Acquisition-Related Below Market Lease Liabilities (in Rental and Other Revenues)
|
||||||||||||
2013
|
|
$
|
3,521
|
|
|
$
|
29,636
|
|
|
$
|
1,314
|
|
|
$
|
1,277
|
|
|
$
|
553
|
|
|
$
|
(4,149
|
)
|
2014
|
|
3,224
|
|
|
25,200
|
|
|
1,163
|
|
|
989
|
|
|
553
|
|
|
(4,067
|
)
|
||||||
2015
|
|
2,594
|
|
|
20,391
|
|
|
928
|
|
|
754
|
|
|
553
|
|
|
(3,801
|
)
|
||||||
2016
|
|
1,519
|
|
|
16,877
|
|
|
734
|
|
|
659
|
|
|
553
|
|
|
(3,499
|
)
|
||||||
2017
|
|
1,225
|
|
|
14,141
|
|
|
654
|
|
|
587
|
|
|
553
|
|
|
(3,256
|
)
|
||||||
Thereafter
|
|
1,814
|
|
|
33,569
|
|
|
2,065
|
|
|
780
|
|
|
1,643
|
|
|
(14,864
|
)
|
||||||
|
|
$
|
13,897
|
|
|
$
|
139,814
|
|
|
$
|
6,858
|
|
|
$
|
5,046
|
|
|
$
|
4,408
|
|
|
$
|
(33,636
|
)
|
Weighted average remaining amortization periods as of December 31, 2012 (in years)
|
|
4.6
|
|
|
6.9
|
|
|
7.7
|
|
|
5.6
|
|
|
8.0
|
|
|
9.9
|
|
|
|
Acquisition-Related Intangible Assets (amortized in Rental and Other Revenues)
|
|
Acquisition-Related Intangible Assets (amortized in Depreciation and Amortization)
|
|
Acquisition-Related Intangible Assets (amortized in Rental Property and Other Expenses)
|
|
Acquisition-Related Below Market Lease Liabilities (amortized in Rental and Other Revenues)
|
||||||||
Amount recorded from acquisition activity
|
|
$
|
2,636
|
|
|
$
|
37,247
|
|
|
$
|
4,593
|
|
|
$
|
(20,934
|
)
|
Weighted average remaining amortization periods (in years)
|
|
5.3
|
|
|
8.7
|
|
|
8.0
|
|
|
10.6
|
|
|
December 31,
|
||||||
|
2012
|
|
2011
|
||||
Secured indebtedness:
(1)
|
|
|
|
||||
5.45% (5.12% effective rate) mortgage loan due 2014
(2)
|
67,604
|
|
|
67,809
|
|
||
5.18% (4.22% effective rate) mortgage loan due 2017
(3)
|
120,924
|
|
|
123,613
|
|
||
6.03% mortgage loan due 2013
|
—
|
|
|
125,264
|
|
||
5.68% mortgage loan due 2013
|
107,289
|
|
|
110,343
|
|
||
5.17% (6.43% effective rate) mortgage loan due 2015
(4)
|
39,805
|
|
|
40,015
|
|
||
6.88% mortgage loans due 2016
|
110,671
|
|
|
112,075
|
|
||
7.50% mortgage loan due 2016
|
45,662
|
|
|
46,181
|
|
||
5.74% to 9.00% mortgage loans due between 2012 and 2016
(5) (6) (7)
|
57,652
|
|
|
72,640
|
|
||
Variable rate construction loan due 2012
|
—
|
|
|
17,802
|
|
||
|
549,607
|
|
|
715,742
|
|
||
Unsecured indebtedness:
|
|
|
|
||||
5.85% (5.88% effective rate) notes due 2017
(8)
|
379,194
|
|
|
391,164
|
|
||
7.50% notes due 2018
|
200,000
|
|
|
200,000
|
|
||
3.625% (3.752% effective rate) notes due 2023
(9)
|
247,361
|
|
|
—
|
|
||
Variable rate term loan due 2016
(10)
|
35,000
|
|
|
200,000
|
|
||
Variable rate term loan due 2018
(11)
|
200,000
|
|
|
—
|
|
||
Variable rate term loan due 2019
(12)
|
225,000
|
|
|
—
|
|
||
Revolving credit facility due 2015
(13)
|
23,000
|
|
|
362,000
|
|
||
|
1,309,555
|
|
|
1,153,164
|
|
||
Total
|
$
|
1,859,162
|
|
|
$
|
1,868,906
|
|
(1)
|
The secured mortgage loans payable are collateralized by real estate assets with an aggregate undepreciated book value of $
966.9 million
at
December 31, 2012
. Our fixed rate mortgage loans generally are either locked out to prepayment for all or a portion of their term or are prepayable subject to certain conditions including prepayment penalties.
|
(2)
|
Includes unamortized fair market premium of
$0.2 million
as of
December 31, 2012
.
|
(3)
|
Includes unamortized fair market premium of
$4.6 million
as of
December 31, 2012
.
|
(4)
|
Net of unamortized fair market value discount of $
1.2 million
as of
December 31, 2012
.
|
(5)
|
Includes mortgage debt related to Harborview, a consolidated 20.0% owned joint venture, of $
21.0 million
at
December 31, 2011
. See Note 8.
|
(6)
|
Includes mortgage debt related to Markel, a consolidated 50.0% owned joint venture, of $
33.1 million
and $
34.0 million
at
December 31, 2012
and
2011
, respectively. See Note 10.
|
(7)
|
Net of unamortized fair market value premium of $
0.5 million
and $
0.3 million
at
December 31, 2012
and
2011
, respectively.
|
(8)
|
Net of unamortized original issuance discount of $
0.5 million
and $
0.6 million
at
December 31, 2012
and
2011
, respectively.
|
(9)
|
Net of unamortized original issuance discount of
$2.6 million
at
December 31, 2012
.
|
(10)
|
The interest rate is
2.42%
at
December 31, 2012
.
|
(11)
|
The interest rate is
1.87%
at
December 31, 2012
.
|
(12)
|
As more fully described in Note 7, we entered into floating-to-fixed interest rate swaps that effectively fix LIBOR for the full amount and duration of this loan. Accordingly, the equivalent fixed rate of this loan is
3.58%
.
|
(13)
|
The interest rate is
1.71%
at
December 31, 2012
.
|
Years Ending December 31,
|
|
Principal Amount
|
||
2013
|
|
$
|
123,537
|
|
2014
|
|
112,283
|
|
|
2015
|
|
67,733
|
|
|
2016
|
|
193,217
|
|
|
2017
|
|
488,617
|
|
|
Thereafter
|
|
873,775
|
|
|
|
|
$
|
1,859,162
|
|
7.
|
Derivative Financial Instruments
|
7.
|
Derivative Financial Instruments - Continued
|
|
Fair Value as of December 31,
|
||||||
|
2012
|
|
2011
|
||||
Liability Derivatives:
|
|
|
|
||||
Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities:
|
|
|
|
||||
Interest rate swaps
|
$
|
9,369
|
|
|
$
|
2,202
|
|
|
Year Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Derivatives Designated as Cash Flow Hedges:
|
|
|
|
|
|
||||||
Amount of unrealized losses recognized in AOCL on derivatives (effective portion):
|
|
|
|
|
|
||||||
Interest rate swaps
|
$
|
(10,358
|
)
|
|
$
|
(2,202
|
)
|
|
$
|
—
|
|
Amount of (gains)/losses reclassified out of AOCL into contractual interest expense (effective portion):
|
|
|
|
|
|
||||||
Interest rate swaps
|
$
|
3,053
|
|
|
$
|
(118
|
)
|
|
$
|
237
|
|
8.
|
Financing Arrangements
|
|
December 31,
|
||||||
|
2012
|
|
2011
|
||||
Harborview financing obligation
|
$
|
17,571
|
|
|
$
|
17,086
|
|
Tax increment financing bond
|
11,787
|
|
|
13,064
|
|
||
Total
|
$
|
29,358
|
|
|
$
|
30,150
|
|
8.
|
Financing Arrangements - Continued
|
9.
|
Commitments and Contingencies
|
Years Ending December 31,
|
|
Minimum Payments
|
||
2013
|
|
$
|
2,383
|
|
2014
|
|
2,404
|
|
|
2015
|
|
2,427
|
|
|
2016
|
|
2,451
|
|
|
2017
|
|
2,476
|
|
|
Thereafter
|
|
49,875
|
|
|
|
|
$
|
62,016
|
|
9.
|
Commitments and Contingencies - Continued
|
10.
|
Noncontrolling Interests
|
|
Year Ended December 31,
|
||||||
|
2012
|
|
2011
|
||||
Beginning noncontrolling interests in the Operating Partnership
|
$
|
110,655
|
|
|
$
|
120,838
|
|
Adjustments of noncontrolling interests in the Operating Partnership to fair value
|
16,491
|
|
|
(3,955
|
)
|
||
Issuances of Common Units
|
2,299
|
|
|
—
|
|
||
Conversion of Common Units to Common Stock
|
(2,096
|
)
|
|
(1,906
|
)
|
||
Net income attributable to noncontrolling interests in the Operating Partnership
|
3,854
|
|
|
2,091
|
|
||
Distributions to noncontrolling interests in the Operating Partnership
|
(6,334
|
)
|
|
(6,413
|
)
|
||
Total noncontrolling interests in the Operating Partnership
|
$
|
124,869
|
|
|
$
|
110,655
|
|
|
Year Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Net income available for common stockholders
|
$
|
77,087
|
|
|
$
|
38,677
|
|
|
$
|
61,790
|
|
Increase in additional paid in capital from conversion of Common Units to Common Stock
|
2,096
|
|
|
1,906
|
|
|
3,060
|
|
|||
Issuances of Common Units
|
(2,299
|
)
|
|
—
|
|
|
—
|
|
|||
Change from net income available for common stockholders and transfers from noncontrolling interests
|
$
|
76,884
|
|
|
$
|
40,583
|
|
|
$
|
64,850
|
|
11.
|
Disclosure About Fair Value of Financial Instruments
|
11.
|
Disclosure About Fair Value of Financial Instruments – Continued
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
December 31, 2012
|
|
Quoted Prices
in Active
Markets for Identical Assets or Liabilities
|
|
Significant Observable Inputs
|
|
Significant Unobservable Inputs
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Mortgages and notes receivable, at fair value
(1)
|
$
|
24,725
|
|
|
$
|
—
|
|
|
$
|
16,077
|
|
|
$
|
8,648
|
|
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
|
3,354
|
|
|
3,354
|
|
|
—
|
|
|
—
|
|
||||
Tax increment financing bond (in prepaid expenses and other assets)
|
14,496
|
|
|
—
|
|
|
—
|
|
|
14,496
|
|
||||
Total Assets
|
$
|
42,575
|
|
|
$
|
3,354
|
|
|
$
|
16,077
|
|
|
$
|
23,144
|
|
Noncontrolling Interests in the Operating Partnership
|
$
|
124,869
|
|
|
$
|
124,869
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Mortgages and notes payable, at fair value
(1)
|
$
|
1,987,364
|
|
|
$
|
—
|
|
|
$
|
1,987,364
|
|
|
$
|
—
|
|
Interest rate swaps (in accounts payable, accrued expenses and other liabilities)
|
9,369
|
|
|
—
|
|
|
9,369
|
|
|
—
|
|
||||
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
|
3,354
|
|
|
3,354
|
|
|
—
|
|
|
—
|
|
||||
Contingent consideration to acquire real estate assets (in accounts payable, accrued expenses and other liabilities)
|
563
|
|
|
—
|
|
|
—
|
|
|
563
|
|
||||
Financing obligations, at fair value
(1)
|
23,252
|
|
|
—
|
|
|
—
|
|
|
23,252
|
|
||||
Total Liabilities
|
$
|
2,023,902
|
|
|
$
|
3,354
|
|
|
$
|
1,996,733
|
|
|
$
|
23,815
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
December 31, 2011
|
|
Quoted Prices
in Active
Markets for Identical Assets or Liabilities
|
|
Significant Observable Inputs
|
|
Significant Unobservable Inputs
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Mortgages and notes receivable, at fair value
(1)
|
$
|
18,990
|
|
|
$
|
—
|
|
|
$
|
18,990
|
|
|
$
|
—
|
|
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
|
3,149
|
|
|
3,149
|
|
|
—
|
|
|
—
|
|
||||
Tax increment financing bond (in prepaid expenses and other assets)
|
14,788
|
|
|
—
|
|
|
—
|
|
|
14,788
|
|
||||
Impaired real estate assets and for-sale residential condominiums
|
12,767
|
|
|
—
|
|
|
—
|
|
|
12,767
|
|
||||
Total Assets
|
$
|
49,694
|
|
|
$
|
3,149
|
|
|
$
|
18,990
|
|
|
$
|
27,555
|
|
Noncontrolling Interests in the Operating Partnership
|
$
|
110,655
|
|
|
$
|
110,655
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Mortgages and notes payable, at fair value
(1)
|
$
|
1,959,438
|
|
|
$
|
—
|
|
|
$
|
1,959,438
|
|
|
$
|
—
|
|
Interest rate swaps (in accounts payable, accrued expenses and other liabilities)
|
2,202
|
|
|
—
|
|
|
2,202
|
|
|
—
|
|
||||
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
|
3,149
|
|
|
3,149
|
|
|
—
|
|
|
—
|
|
||||
Financing obligations, at fair value
(1)
|
17,572
|
|
|
—
|
|
|
—
|
|
|
17,572
|
|
||||
Total Liabilities
|
$
|
1,982,361
|
|
|
$
|
3,149
|
|
|
$
|
1,961,640
|
|
|
$
|
17,572
|
|
11.
|
Disclosure About Fair Value of Financial Instruments – Continued
|
|
December 31,
|
||||||
|
2012
|
|
2011
|
||||
Asset:
|
|
|
|
||||
Tax Increment Financing Bond:
|
|
|
|
||||
Beginning balance
|
$
|
14,788
|
|
|
$
|
15,699
|
|
Principal repayment
|
(703
|
)
|
|
(1,145
|
)
|
||
Unrealized gains (in AOCL)
|
411
|
|
|
234
|
|
||
Ending balance
|
$
|
14,496
|
|
|
$
|
14,788
|
|
Liability:
|
|
|
|
||||
Contingent Consideration to Acquire Real Estate Assets:
|
|
|
|
||||
Beginning balance
|
$
|
—
|
|
|
$
|
—
|
|
Fair value at acquisition date
|
677
|
|
|
—
|
|
||
Unrealized gains (in general and administrative expenses)
|
(114
|
)
|
|
—
|
|
||
Ending balance
|
$
|
563
|
|
|
$
|
—
|
|
|
Fair Value at
December 31, 2012
|
|
Valuation
Technique
|
|
Unobservable
Input
|
|
Rate/ Percentage
|
|||
Asset:
|
|
|
|
|
|
|
|
|||
Tax increment financing bond
|
$
|
14,496
|
|
|
Income approach
|
|
Discount rate
|
|
10.34
|
%
|
Liability:
|
|
|
|
|
|
|
|
|||
Contingent consideration to acquire real estate assets
|
$
|
563
|
|
|
Income approach
|
|
Payout percentage
|
|
75.00
|
%
|
12.
|
Equity
|
12.
|
Equity - Continued
|
|
Year Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Ordinary income
|
$
|
1.28
|
|
|
$
|
1.15
|
|
|
$
|
0.41
|
|
Capital gains
|
0.24
|
|
|
—
|
|
|
0.44
|
|
|||
Return of capital
|
0.18
|
|
|
0.55
|
|
|
0.85
|
|
|||
Total
|
$
|
1.70
|
|
|
$
|
1.70
|
|
|
$
|
1.70
|
|
Preferred Stock Issuances
|
|
Issue Date
|
|
Number of Shares Outstanding
|
|
Carrying Value
|
|
Liquidation Preference Per Share
|
|
Optional Redemption Date
|
|
Annual Dividends Payable Per Share
|
|||||||
|
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|||||||
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
8.625% Series A Cumulative Redeemable
|
|
2/12/1997
|
|
29
|
|
|
$
|
29,077
|
|
|
$
|
1,000
|
|
|
2/12/2027
|
|
$
|
86.25
|
|
December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
8.625% Series A Cumulative Redeemable
|
|
2/12/1997
|
|
29
|
|
|
$
|
29,077
|
|
|
$
|
1,000
|
|
|
2/12/2027
|
|
$
|
86.25
|
|
|
Year Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
8.625% Series A Cumulative Redeemable:
|
|
|
|
|
|
||||||
Ordinary income
|
$
|
72.46
|
|
|
$
|
86.25
|
|
|
$
|
41.80
|
|
Capital gains
|
13.79
|
|
|
—
|
|
|
44.45
|
|
|||
Total
|
$
|
86.25
|
|
|
$
|
86.25
|
|
|
$
|
86.25
|
|
8.000% Series B Cumulative Redeemable:
|
|
|
|
|
|
||||||
Ordinary income
|
$
|
—
|
|
|
$
|
1.05
|
|
|
$
|
0.97
|
|
Capital gains
|
—
|
|
|
—
|
|
|
1.03
|
|
|||
Total
|
$
|
—
|
|
|
$
|
1.05
|
|
|
$
|
2.00
|
|
12.
|
Equity - Continued
|
13.
|
Employee Benefit Plans
|
13.
|
Employee Benefit Plans - Continued
|
(1)
|
Represents the interest rate as of the grant date on US treasury bonds having the same life as the estimated life of the option grants.
|
(2)
|
The dividend yield is calculated utilizing the dividends paid for the previous
one
-year period and the per share price of Common Stock on the date of grant.
|
(3)
|
Based on the historical volatility of Common Stock over a period relevant to the related stock option grant.
|
(4)
|
The average expected option life is based on an analysis of our historical data.
|
|
Options Outstanding
|
|||||
|
Number of Shares
|
|
Weighted Average Exercise Price
|
|||
Balances at December 31, 2009
|
1,467,773
|
|
|
$
|
27.15
|
|
Options granted
|
190,826
|
|
|
29.05
|
|
|
Options exercised
|
(178,403
|
)
|
|
22.54
|
|
|
Balances at December 31, 2010
|
1,480,196
|
|
|
27.95
|
|
|
Options granted
|
146,581
|
|
|
33.93
|
|
|
Options exercised
|
(417,322
|
)
|
|
26.79
|
|
|
Balances at December 31, 2011
|
1,209,455
|
|
|
29.08
|
|
|
Options granted
|
190,886
|
|
|
31.97
|
|
|
Options exercised
|
(271,032
|
)
|
|
26.87
|
|
|
Balances at December 31, 2012
(1) (2)
|
1,129,309
|
|
|
$
|
30.10
|
|
13.
|
Employee Benefit Plans - Continued
|
(1)
|
The outstanding options at
December 31, 2012
had a weighted average remaining life of
3.3
years.
|
(2)
|
We have
634,550
options exercisable at
December 31, 2012
with a weighted average exercise price of
$30.75
, weighted average remaining life of
2.1
years and intrinsic value of
$2.6 million
. Of these exercisable options,
173,007
had exercise prices higher than the market price of our Common Stock at
December 31, 2012
.
|
|
Number of Shares
|
|
Weighted Average Grant Date Fair Value
|
|||
Restricted shares outstanding at December 31, 2009
|
316,074
|
|
|
$
|
28.60
|
|
Awarded and issued
(1)
|
88,930
|
|
|
29.05
|
|
|
Vested
(2)
|
(138,745
|
)
|
|
31.81
|
|
|
Forfeited
|
(1,933
|
)
|
|
25.86
|
|
|
Restricted shares outstanding at December 31, 2010
|
264,326
|
|
|
27.08
|
|
|
Awarded and issued
(1)
|
76,966
|
|
|
33.70
|
|
|
Vested
(2)
|
(116,631
|
)
|
|
30.64
|
|
|
Restricted shares outstanding at December 31, 2011
|
224,661
|
|
|
28.02
|
|
|
Awarded and issued
(1)
|
90,983
|
|
|
32.27
|
|
|
Vested
(2)
|
(92,239
|
)
|
|
27.14
|
|
|
Forfeited
|
(903
|
)
|
|
30.12
|
|
|
Restricted shares outstanding at December 31, 2012
|
222,502
|
|
|
$
|
30.31
|
|
(1)
|
The fair value at grant date of time-based restricted stock issued during the years ended
December 31, 2012
,
2011
and
2010
was
$2.9 million
,
$2.6 million
and
$2.6 million
, respectively.
|
(2)
|
The vesting date fair value of time-based restricted stock that vested during the years ended
December 31, 2012
,
2011
and
2010
was
$2.9 million
,
$3.9 million
and
$4.3 million
, respectively. Vested shares include those shares repurchased for withholding taxes.
|
13.
|
Employee Benefit Plans - Continued
|
|
2012
|
|
2011
|
|
2010
|
|||
Risk free interest rate
(1)
|
0.4
|
%
|
|
1.0
|
%
|
|
1.3
|
%
|
Common stock dividend yield
(2)
|
5.4
|
%
|
|
5.4
|
%
|
|
5.6
|
%
|
Expected volatility
(3)
|
43.7
|
%
|
|
42.8
|
%
|
|
42.5
|
%
|
(1)
|
Represents the interest rate as of the grant date on US treasury bonds having the same life as the estimated life of the total return-based restricted stock grants.
|
(2)
|
The dividend yield is calculated utilizing the dividends paid for the previous
one
-year period and the per share price of Common Stock on the date of grant.
|
(3)
|
Based on the historical volatility of Common Stock over a period relevant to the related total return-based restricted stock grant.
|
|
Number of Shares
|
|
Weighted Average Grant Date Fair Value
|
|||
Restricted shares outstanding at December 31, 2009
|
202,775
|
|
|
$
|
22.05
|
|
Awarded and issued
(1)
|
77,624
|
|
|
29.05
|
|
|
Vested
(2)
|
(47,257
|
)
|
|
38.50
|
|
|
Forfeited
|
(1,307
|
)
|
|
22.99
|
|
|
Restricted shares outstanding at December 31, 2010
|
231,835
|
|
|
21.03
|
|
|
Awarded and issued
(1)
|
57,386
|
|
|
41.02
|
|
|
Vested
(2)
|
(66,417
|
)
|
|
13.79
|
|
|
Forfeited
|
(99,975
|
)
|
|
13.79
|
|
|
Restricted shares outstanding at December 31, 2011
|
122,829
|
|
|
34.86
|
|
|
Awarded and issued
(1)
|
67,902
|
|
|
38.71
|
|
|
Vested
(2)
|
(32,722
|
)
|
|
29.47
|
|
|
Forfeited
|
(32,721
|
)
|
|
29.47
|
|
|
Restricted shares outstanding at December 31, 2012
|
125,288
|
|
|
$
|
32.87
|
|
(1)
|
The fair value at grant date of total return-based restricted stock issued during the years ended
December 31, 2012
,
2011
and
2010
was
$2.6 million
,
$2.4 million
and
$2.3 million
, respectively. There were no performance-based restricted stock issued subsequent to 2008.
|
(2)
|
The vesting date fair value of total return-based and other types of performance-based restricted stock that vested during the years ended
December 31, 2012
,
2011
and
2010
was
$1.1 million
,
$2.0 million
and
$1.6 million
, respectively. Vested shares include those shares repurchased for withholding taxes.
|
13.
|
Employee Benefit Plans - Continued
|
|
Year Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Beginning deferred compensation liability
|
$
|
3,149
|
|
|
$
|
4,091
|
|
|
$
|
6,898
|
|
Contributions to deferred compensation plans
|
—
|
|
|
545
|
|
|
229
|
|
|||
Mark-to-market adjustment to deferred compensation (in general and administrative expenses)
|
475
|
|
|
(119
|
)
|
|
246
|
|
|||
Distributions from deferred compensation plans
|
(270
|
)
|
|
(1,368
|
)
|
|
(3,282
|
)
|
|||
Total deferred compensation liability
|
$
|
3,354
|
|
|
$
|
3,149
|
|
|
$
|
4,091
|
|
13.
|
Employee Benefit Plans - Continued
|
14.
|
Accumulated Other Comprehensive Loss
|
|
December 31,
|
||||||
|
2012
|
|
2011
|
||||
Tax increment financing bond:
|
|
|
|
||||
Beginning balance
|
$
|
(2,309
|
)
|
|
$
|
(2,543
|
)
|
Unrealized gains on tax increment financing bond
|
411
|
|
|
234
|
|
||
Ending balance
|
(1,898
|
)
|
|
(2,309
|
)
|
||
Cash flow hedges:
|
|
|
|
||||
Beginning balance
|
(3,425
|
)
|
|
(1,105
|
)
|
||
Unrealized losses on cash flow hedges
|
(10,358
|
)
|
|
(2,202
|
)
|
||
Amortization of cash flow hedges
|
3,053
|
|
|
(118
|
)
|
||
Ending balance
|
(10,730
|
)
|
|
(3,425
|
)
|
||
Total accumulated other comprehensive loss
|
$
|
(12,628
|
)
|
|
$
|
(5,734
|
)
|
15.
|
Rental and Other Revenues; Rental Property and Other Expenses
|
|
Year Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Contractual rents, net
|
$
|
439,610
|
|
|
$
|
402,275
|
|
|
$
|
379,554
|
|
Straight-line rental income, net
|
18,775
|
|
|
12,173
|
|
|
10,582
|
|
|||
Amortization of lease incentives
|
(1,424
|
)
|
|
(1,342
|
)
|
|
(1,202
|
)
|
|||
Cost recovery income, net
|
41,289
|
|
|
35,561
|
|
|
41,101
|
|
|||
Lease termination fees
|
1,848
|
|
|
2,439
|
|
|
2,938
|
|
|||
Fee income
|
4,965
|
|
|
5,571
|
|
|
5,466
|
|
|||
Other miscellaneous operating revenues
|
11,039
|
|
|
6,767
|
|
|
2,397
|
|
|||
|
$
|
516,102
|
|
|
$
|
463,444
|
|
|
$
|
440,836
|
|
2013
|
$
|
463,913
|
|
2014
|
430,278
|
|
|
2015
|
378,021
|
|
|
2016
|
325,970
|
|
|
2017
|
267,530
|
|
|
Thereafter
|
878,894
|
|
|
|
$
|
2,744,606
|
|
|
Year Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Utilities, insurance and real estate taxes
|
$
|
100,956
|
|
|
$
|
92,119
|
|
|
$
|
86,013
|
|
Maintenance, cleaning and general building
|
69,026
|
|
|
58,910
|
|
|
54,422
|
|
|||
Property management and administrative expenses
|
12,542
|
|
|
11,295
|
|
|
10,832
|
|
|||
Other miscellaneous operating expenses
|
4,910
|
|
|
5,529
|
|
|
4,504
|
|
|||
|
$
|
187,434
|
|
|
$
|
167,853
|
|
|
$
|
155,771
|
|
16.
|
Discontinued Operations
|
|
Year Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Rental and other revenues
|
$
|
10,120
|
|
|
$
|
21,002
|
|
|
$
|
23,917
|
|
Operating expenses:
|
|
|
|
|
|
||||||
Rental property and other expenses
|
3,766
|
|
|
8,865
|
|
|
9,273
|
|
|||
Depreciation and amortization
|
2,009
|
|
|
5,256
|
|
|
5,926
|
|
|||
Total operating expenses
|
5,775
|
|
|
14,121
|
|
|
15,199
|
|
|||
Interest expense
|
283
|
|
|
489
|
|
|
421
|
|
|||
Income from discontinued operations
|
4,062
|
|
|
6,392
|
|
|
8,297
|
|
|||
Net gains/(losses) on disposition of discontinued operations
|
29,455
|
|
|
2,573
|
|
|
(86
|
)
|
|||
Total discontinued operations
|
$
|
33,517
|
|
|
$
|
8,965
|
|
|
$
|
8,211
|
|
Carrying value of assets held for sale and assets sold that qualified for discontinued operations during the year
|
$
|
122,861
|
|
|
$
|
137,237
|
|
|
$
|
165,243
|
|
|
December 31,
|
||||||
|
2012
|
|
2011
|
||||
Assets:
|
|
|
|
||||
Land
|
$
|
—
|
|
|
$
|
14,077
|
|
Buildings and tenant improvements
|
—
|
|
|
135,013
|
|
||
Less - accumulated depreciation
|
—
|
|
|
(32,254
|
)
|
||
Net real estate assets
|
—
|
|
|
116,836
|
|
||
Accrued straight-line rents receivable
|
—
|
|
|
6,520
|
|
||
Deferred leasing costs, net
|
—
|
|
|
811
|
|
||
Prepaid expenses and other assets
|
—
|
|
|
106
|
|
||
Real estate and other assets, net, held for sale
|
$
|
—
|
|
|
$
|
124,273
|
|
Liabilities:
|
|
|
|
||||
Mortgages and notes payable
|
$
|
—
|
|
|
$
|
34,307
|
|
Accrued expenses and other liabilities
|
—
|
|
|
214
|
|
||
Financing obligations
|
—
|
|
|
1,294
|
|
||
Liabilities held for sale
|
$
|
—
|
|
|
$
|
35,815
|
|
17.
|
Earnings Per Share
|
|
Year Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Earnings per Common Share - basic:
|
|
|
|
|
|
||||||
Numerator:
|
|
|
|
|
|
||||||
Income from continuing operations
|
$
|
50,718
|
|
|
$
|
39,006
|
|
|
$
|
64,092
|
|
Net (income) attributable to noncontrolling interests in the Operating Partnership from continuing operations
|
(2,260
|
)
|
|
(1,645
|
)
|
|
(2,905
|
)
|
|||
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
|
(786
|
)
|
|
(755
|
)
|
|
(485
|
)
|
|||
Dividends on Preferred Stock
|
(2,508
|
)
|
|
(4,553
|
)
|
|
(6,708
|
)
|
|||
Excess of Preferred Stock redemption/repurchase cost over carrying value
|
—
|
|
|
(1,895
|
)
|
|
—
|
|
|||
Income from continuing operations available for common stockholders
|
45,164
|
|
|
30,158
|
|
|
53,994
|
|
|||
Income from discontinued operations
|
33,517
|
|
|
8,965
|
|
|
8,211
|
|
|||
Net (income) attributable to noncontrolling interests in the Operating Partnership from discontinued operations
|
(1,594
|
)
|
|
(446
|
)
|
|
(415
|
)
|
|||
Income from discontinued operations available for common stockholders
|
31,923
|
|
|
8,519
|
|
|
7,796
|
|
|||
Net income available for common stockholders
|
$
|
77,087
|
|
|
$
|
38,677
|
|
|
$
|
61,790
|
|
Denominator:
|
|
|
|
|
|
||||||
Denominator for basic earnings per Common Share – weighted average shares
(1) (2)
|
75,811
|
|
|
72,281
|
|
|
71,578
|
|
|||
Earnings per Common Share - basic:
|
|
|
|
|
|
||||||
Income from continuing operations available for common stockholders
|
$
|
0.60
|
|
|
$
|
0.42
|
|
|
$
|
0.75
|
|
Income from discontinued operations available for common stockholders
|
0.42
|
|
|
0.12
|
|
|
0.11
|
|
|||
Net income available for common stockholders
|
$
|
1.02
|
|
|
$
|
0.54
|
|
|
$
|
0.86
|
|
Earnings per Common Share - diluted:
|
|
|
|
|
|
||||||
Numerator:
|
|
|
|
|
|
||||||
Income from continuing operations
|
$
|
50,718
|
|
|
$
|
39,006
|
|
|
$
|
64,092
|
|
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
|
(786
|
)
|
|
(755
|
)
|
|
(485
|
)
|
|||
Dividends on Preferred Stock
|
(2,508
|
)
|
|
(4,553
|
)
|
|
(6,708
|
)
|
|||
Excess of Preferred Stock redemption/repurchase cost over carrying value
|
—
|
|
|
(1,895
|
)
|
|
—
|
|
|||
Income from continuing operations available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
|
47,424
|
|
|
31,803
|
|
|
56,899
|
|
|||
Income from discontinued operations available for common stockholders
|
33,517
|
|
|
8,965
|
|
|
8,211
|
|
|||
Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
|
$
|
80,941
|
|
|
$
|
40,768
|
|
|
$
|
65,110
|
|
Denominator:
|
|
|
|
|
|
||||||
Denominator for basic earnings per Common Share –weighted average shares
(1) (2)
|
75,811
|
|
|
72,281
|
|
|
71,578
|
|
|||
Add:
|
|
|
|
|
|
||||||
Stock options using the treasury method
|
122
|
|
|
136
|
|
|
198
|
|
|||
Noncontrolling interests Common Units
|
3,745
|
|
|
3,772
|
|
|
3,802
|
|
|||
Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions
(
1)
|
79,678
|
|
|
76,189
|
|
|
75,578
|
|
|||
Earnings per Common Share - diluted:
|
|
|
|
|
|
||||||
Income from continuing operations available for common stockholders
|
$
|
0.60
|
|
|
$
|
0.42
|
|
|
$
|
0.75
|
|
Income from discontinued operations available for common stockholders
|
0.42
|
|
|
0.12
|
|
|
0.11
|
|
|||
Net income available for common stockholders
|
$
|
1.02
|
|
|
$
|
0.54
|
|
|
$
|
0.86
|
|
17.
|
Earnings Per Share - Continued
|
(1)
|
There were
0.5 million
,
0.4 million
and
0.7 million
options outstanding during the years ended
December 31, 2012
,
2011
and
2010
, respectively, that were not included in the computation of diluted earnings per share because the impact of including such options would be anti-dilutive
.
|
(2)
|
Includes all unvested restricted stock since dividends on such restricted stock are non-forfeitable.
|
18.
|
Income Taxes
|
19.
|
Segment Information
|
|
Year Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Rental and Other Revenues:
(1)
|
|
|
|
|
|
||||||
Office:
|
|
|
|
|
|
||||||
Atlanta, GA
|
$
|
61,947
|
|
|
$
|
49,521
|
|
|
$
|
44,480
|
|
Greenville, SC
|
13,395
|
|
|
14,076
|
|
|
13,612
|
|
|||
Kansas City, MO
|
15,003
|
|
|
13,795
|
|
|
14,160
|
|
|||
Memphis, TN
|
36,832
|
|
|
36,801
|
|
|
31,479
|
|
|||
Nashville, TN
|
56,542
|
|
|
53,645
|
|
|
52,159
|
|
|||
Orlando, FL
|
11,169
|
|
|
10,233
|
|
|
11,611
|
|
|||
Piedmont Triad, NC
|
21,569
|
|
|
20,645
|
|
|
21,163
|
|
|||
Pittsburgh, PA
|
38,796
|
|
|
10,963
|
|
|
—
|
|
|||
Raleigh, NC
|
81,624
|
|
|
78,638
|
|
|
75,714
|
|
|||
Richmond, VA
|
47,310
|
|
|
47,525
|
|
|
47,175
|
|
|||
Tampa, FL
|
69,381
|
|
|
68,240
|
|
|
71,060
|
|
|||
Total Office Segment
|
453,568
|
|
|
404,082
|
|
|
382,613
|
|
|||
Industrial:
|
|
|
|
|
|
||||||
Atlanta, GA
|
12,805
|
|
|
13,266
|
|
|
12,335
|
|
|||
Piedmont Triad, NC
|
12,518
|
|
|
11,827
|
|
|
12,372
|
|
|||
Total Industrial Segment
|
25,323
|
|
|
25,093
|
|
|
24,707
|
|
|||
Retail:
|
|
|
|
|
|
||||||
Kansas City, MO
|
37,211
|
|
|
34,269
|
|
|
33,516
|
|
|||
Total Retail Segment
|
37,211
|
|
|
34,269
|
|
|
33,516
|
|
|||
Total Rental and Other Revenues
|
$
|
516,102
|
|
|
$
|
463,444
|
|
|
$
|
440,836
|
|
19.
|
Segment Information - Continued
|
|
Year Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Net Operating Income:
(1)
|
|
|
|
|
|
||||||
Office:
|
|
|
|
|
|
||||||
Atlanta, GA
|
$
|
39,306
|
|
|
$
|
31,077
|
|
|
$
|
27,607
|
|
Greenville, SC
|
7,612
|
|
|
8,333
|
|
|
8,142
|
|
|||
Kansas City, MO
|
9,516
|
|
|
8,374
|
|
|
8,824
|
|
|||
Memphis, TN
|
21,848
|
|
|
20,874
|
|
|
18,640
|
|
|||
Nashville, TN
|
38,831
|
|
|
36,586
|
|
|
35,451
|
|
|||
Orlando, FL
|
5,841
|
|
|
5,187
|
|
|
6,256
|
|
|||
Piedmont Triad, NC
|
13,325
|
|
|
13,041
|
|
|
13,886
|
|
|||
Pittsburgh, PA
|
19,545
|
|
|
5,450
|
|
|
—
|
|
|||
Raleigh, NC
|
56,628
|
|
|
54,699
|
|
|
52,347
|
|
|||
Richmond, VA
|
32,407
|
|
|
31,281
|
|
|
32,035
|
|
|||
Tampa, FL
|
43,114
|
|
|
42,371
|
|
|
44,622
|
|
|||
Total Office Segment
|
287,973
|
|
|
257,273
|
|
|
247,810
|
|
|||
Industrial:
|
|
|
|
|
|
||||||
Atlanta, GA
|
9,282
|
|
|
9,780
|
|
|
8,734
|
|
|||
Piedmont Triad, NC
|
9,149
|
|
|
8,652
|
|
|
9,037
|
|
|||
Total Industrial Segment
|
18,431
|
|
|
18,432
|
|
|
17,771
|
|
|||
Retail:
|
|
|
|
|
|
||||||
Kansas City, MO
|
22,528
|
|
|
20,157
|
|
|
19,927
|
|
|||
Total Retail Segment
|
22,528
|
|
|
20,157
|
|
|
19,927
|
|
|||
Residential:
|
|
|
|
|
|
||||||
Raleigh, NC
|
(178
|
)
|
|
(195
|
)
|
|
(362
|
)
|
|||
Total Residential Segment
|
(178
|
)
|
|
(195
|
)
|
|
(362
|
)
|
|||
Corporate and other
(2)
|
(86
|
)
|
|
(76
|
)
|
|
(81
|
)
|
|||
Total Net Operating Income
|
328,668
|
|
|
295,591
|
|
|
285,065
|
|
|||
Reconciliation to income from continuing operations before disposition of property, condominiums and investments in unconsolidated affiliates and equity in earnings of unconsolidated affiliates:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
(156,318
|
)
|
|
(137,890
|
)
|
|
(130,232
|
)
|
|||
Impairments of real estate assets
|
—
|
|
|
(2,429
|
)
|
|
—
|
|
|||
General and administrative expenses
|
(37,377
|
)
|
|
(35,727
|
)
|
|
(32,948
|
)
|
|||
Interest expense
|
(96,114
|
)
|
|
(95,510
|
)
|
|
(92,951
|
)
|
|||
Other income
|
6,380
|
|
|
7,363
|
|
|
5,657
|
|
|||
Income from continuing operations before disposition of property, condominiums and investments in unconsolidated affiliates and equity in earnings of unconsolidated affiliates
|
$
|
45,239
|
|
|
$
|
31,398
|
|
|
$
|
34,591
|
|
(1)
|
Net of discontinued operations.
|
(2)
|
Negative NOI with no corresponding revenues represents expensed real estate taxes and other carrying costs associated with land held for development that is currently zoned for the respective product type.
|
19.
|
Segment Information - Continued
|
|
December 31,
|
||||||
|
2012
|
|
2011
|
||||
Total Assets:
|
|
|
|
||||
Office:
|
|
|
|
||||
Atlanta, GA
|
$
|
495,175
|
|
|
$
|
359,225
|
|
Greenville, SC
|
69,138
|
|
|
69,669
|
|
||
Kansas City, MO
|
84,538
|
|
|
86,028
|
|
||
Memphis, TN
|
225,541
|
|
|
265,259
|
|
||
Nashville, TN
|
314,705
|
|
|
325,272
|
|
||
Orlando, FL
|
51,373
|
|
|
46,547
|
|
||
Piedmont Triad, NC
|
144,404
|
|
|
115,096
|
|
||
Pittsburgh, PA
|
330,975
|
|
|
227,965
|
|
||
Raleigh, NC
|
479,995
|
|
|
468,494
|
|
||
Richmond, VA
|
246,276
|
|
|
254,364
|
|
||
Tampa, FL
|
386,676
|
|
|
394,569
|
|
||
Total Office Segment
|
2,828,796
|
|
|
2,612,488
|
|
||
Industrial:
|
|
|
|
||||
Atlanta, GA
|
115,330
|
|
|
133,640
|
|
||
Piedmont Triad, NC
|
76,013
|
|
|
78,081
|
|
||
Total Industrial Segment
|
191,343
|
|
|
211,721
|
|
||
Retail:
|
|
|
|
||||
Kansas City, MO
|
166,030
|
|
|
170,717
|
|
||
Total Retail Segment
|
166,030
|
|
|
170,717
|
|
||
Residential:
|
|
|
|
||||
Kansas City, MO
|
—
|
|
|
5,707
|
|
||
Raleigh, NC
|
8
|
|
|
4,768
|
|
||
Total Residential Segment
|
8
|
|
|
10,475
|
|
||
Corporate and other
|
164,251
|
|
|
175,591
|
|
||
Total Assets
|
$
|
3,350,428
|
|
|
$
|
3,180,992
|
|
20.
|
Quarterly Financial Data (Unaudited)
|
|
Year Ended December 31, 2012
|
||||||||||||||||||
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Total
|
||||||||||
Rental and other revenues
(1)
|
$
|
125,583
|
|
|
$
|
128,323
|
|
|
$
|
128,214
|
|
|
$
|
133,982
|
|
|
$
|
516,102
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
(1)
|
11,419
|
|
|
11,377
|
|
|
12,313
|
|
|
15,609
|
|
|
50,718
|
|
|||||
Income from discontinued operations
(1)
|
6,913
|
|
|
3,121
|
|
|
23,483
|
|
|
—
|
|
|
33,517
|
|
|||||
Net income
|
18,332
|
|
|
14,498
|
|
|
35,796
|
|
|
15,609
|
|
|
84,235
|
|
|||||
Net (income) attributable to noncontrolling interests in the Operating Partnership
|
(827
|
)
|
|
(686
|
)
|
|
(1,653
|
)
|
|
(688
|
)
|
|
(3,854
|
)
|
|||||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
(184
|
)
|
|
(223
|
)
|
|
(159
|
)
|
|
(220
|
)
|
|
(786
|
)
|
|||||
Dividends on Preferred Stock
|
(627
|
)
|
|
(627
|
)
|
|
(627
|
)
|
|
(627
|
)
|
|
(2,508
|
)
|
|||||
Net income available for common stockholders
|
$
|
16,694
|
|
|
$
|
12,962
|
|
|
$
|
33,357
|
|
|
$
|
14,074
|
|
|
$
|
77,087
|
|
Earnings per Common Share-basic:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations available for common stockholders
|
$
|
0.14
|
|
|
$
|
0.13
|
|
|
$
|
0.15
|
|
|
$
|
0.18
|
|
|
$
|
0.60
|
|
Income from discontinued operations available for common stockholders
|
0.09
|
|
|
0.04
|
|
|
0.29
|
|
|
—
|
|
|
0.42
|
|
|||||
Net income available for common stockholders
|
$
|
0.23
|
|
|
$
|
0.17
|
|
|
$
|
0.44
|
|
|
$
|
0.18
|
|
|
$
|
1.02
|
|
Earnings per Common Share-diluted:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations available for common stockholders
|
$
|
0.14
|
|
|
$
|
0.13
|
|
|
$
|
0.14
|
|
|
$
|
0.18
|
|
|
$
|
0.60
|
|
Income from discontinued operations available for common stockholders
|
0.09
|
|
|
0.04
|
|
|
0.29
|
|
|
—
|
|
|
0.42
|
|
|||||
Net income available for common stockholders
|
$
|
0.23
|
|
|
$
|
0.17
|
|
|
$
|
0.43
|
|
|
$
|
0.18
|
|
|
$
|
1.02
|
|
20.
|
Quarterly Financial Data (Unaudited)
|
|
Year Ended December 31, 2011
|
||||||||||||||||||
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Total
|
||||||||||
Rental and other revenues
(1)
|
$
|
110,047
|
|
|
$
|
112,185
|
|
|
$
|
117,265
|
|
|
$
|
123,947
|
|
|
$
|
463,444
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
(1)
|
10,671
|
|
|
12,572
|
|
|
3,957
|
|
|
11,806
|
|
|
39,006
|
|
|||||
Income from discontinued operations
(1)
|
1,772
|
|
|
1,862
|
|
|
4,287
|
|
|
1,044
|
|
|
8,965
|
|
|||||
Net income
|
12,443
|
|
|
14,434
|
|
|
8,244
|
|
|
12,850
|
|
|
47,971
|
|
|||||
Net (income) attributable to noncontrolling interests in the Operating Partnership
|
(507
|
)
|
|
(623
|
)
|
|
(366
|
)
|
|
(595
|
)
|
|
(2,091
|
)
|
|||||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
(123
|
)
|
|
(182
|
)
|
|
(249
|
)
|
|
(201
|
)
|
|
(755
|
)
|
|||||
Dividends on Preferred Stock
|
(1,677
|
)
|
|
(1,622
|
)
|
|
(627
|
)
|
|
(627
|
)
|
|
(4,553
|
)
|
|||||
Excess of Preferred Stock redemption/repurchase cost over carrying value
|
—
|
|
|
(1,895
|
)
|
|
—
|
|
|
—
|
|
|
(1,895
|
)
|
|||||
Net income available for common stockholders
|
$
|
10,136
|
|
|
$
|
10,112
|
|
|
$
|
7,002
|
|
|
$
|
11,427
|
|
|
$
|
38,677
|
|
Earnings per Common Share-basic:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations available for common stockholders
|
$
|
0.12
|
|
|
$
|
0.12
|
|
|
$
|
0.04
|
|
|
$
|
0.14
|
|
|
$
|
0.42
|
|
Income from discontinued operations available for common stockholders
|
0.02
|
|
|
0.02
|
|
|
0.06
|
|
|
0.02
|
|
|
0.12
|
|
|||||
Net income available for common stockholders
|
$
|
0.14
|
|
|
$
|
0.14
|
|
|
$
|
0.10
|
|
|
$
|
0.16
|
|
|
$
|
0.54
|
|
Earnings per Common Share-diluted:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations available for common stockholders
|
$
|
0.12
|
|
|
$
|
0.12
|
|
|
$
|
0.04
|
|
|
$
|
0.14
|
|
|
$
|
0.42
|
|
Income from discontinued operations available for common stockholders
|
0.02
|
|
|
0.02
|
|
|
0.06
|
|
|
0.02
|
|
|
0.12
|
|
|||||
Net income available for common stockholders
|
$
|
0.14
|
|
|
$
|
0.14
|
|
|
$
|
0.10
|
|
|
$
|
0.16
|
|
|
$
|
0.54
|
|
20.
|
Quarterly Financial Data (Unaudited) – Continued
|
(1)
|
The amounts presented may not equal to the amounts previously reported in the most recent Form 10-Qs or prior 10-K for each period as a result of discontinued operations. Below is the reconciliation to the amounts previously reported:
|
|
Quarter Ended
|
||||||||||
|
March 31,
|
|
June 30,
|
|
September 30,
|
||||||
|
2012
|
|
2012
|
|
2012
|
||||||
Rental and other revenues, as reported
|
$
|
129,943
|
|
|
$
|
130,735
|
|
|
$
|
128,214
|
|
Discontinued operations
|
(4,360
|
)
|
|
(2,412
|
)
|
|
—
|
|
|||
Rental and other revenues, as adjusted
|
$
|
125,583
|
|
|
$
|
128,323
|
|
|
$
|
128,214
|
|
Income from continuing operations, as reported
|
$
|
13,115
|
|
|
$
|
12,357
|
|
|
$
|
12,313
|
|
Discontinued operations
|
(1,696
|
)
|
|
(980
|
)
|
|
—
|
|
|||
Income from continuing operations, as adjusted
|
$
|
11,419
|
|
|
$
|
11,377
|
|
|
$
|
12,313
|
|
Income from discontinued operations, as reported
|
$
|
5,217
|
|
|
$
|
2,141
|
|
|
$
|
23,483
|
|
Additional discontinued operations from properties sold subsequent to the respective reporting period
|
1,696
|
|
|
980
|
|
|
—
|
|
|||
Income from discontinued operations, as adjusted
|
$
|
6,913
|
|
|
$
|
3,121
|
|
|
$
|
23,483
|
|
|
Quarter Ended
|
||||||||||||||
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
||||||||
|
2011
|
|
2011
|
|
2011
|
|
2011
|
||||||||
Rental and other revenues, as reported
|
$
|
114,351
|
|
|
$
|
114,651
|
|
|
$
|
117,265
|
|
|
$
|
128,730
|
|
Discontinued operations
|
(4,304
|
)
|
|
(2,466
|
)
|
|
—
|
|
|
(4,783
|
)
|
||||
Rental and other revenues, as adjusted
|
$
|
110,047
|
|
|
$
|
112,185
|
|
|
$
|
117,265
|
|
|
$
|
123,947
|
|
Income from continuing operations, as reported
|
$
|
11,903
|
|
|
$
|
13,695
|
|
|
$
|
3,957
|
|
|
$
|
12,850
|
|
Discontinued operations
|
(1,232
|
)
|
|
(1,123
|
)
|
|
—
|
|
|
(1,044
|
)
|
||||
Income from continuing operations, as adjusted
|
$
|
10,671
|
|
|
$
|
12,572
|
|
|
$
|
3,957
|
|
|
$
|
11,806
|
|
Income from discontinued operations, as reported
|
$
|
540
|
|
|
$
|
739
|
|
|
$
|
4,287
|
|
|
$
|
—
|
|
Additional discontinued operations from properties sold subsequent to the respective reporting period
|
1,232
|
|
|
1,123
|
|
|
—
|
|
|
1,044
|
|
||||
Income from discontinued operations, as adjusted
|
$
|
1,772
|
|
|
$
|
1,862
|
|
|
$
|
4,287
|
|
|
$
|
1,044
|
|
21.
|
Subsequent Events
|
|
December 31,
|
||||||
|
2012
|
|
2011
|
||||
Assets:
|
|
|
|
||||
Real estate assets, at cost:
|
|
|
|
||||
Land
|
$
|
374,212
|
|
|
$
|
355,694
|
|
Buildings and tenant improvements
|
3,304,468
|
|
|
3,009,155
|
|
||
Development in process
|
21,198
|
|
|
—
|
|
||
Land held for development
|
117,784
|
|
|
105,206
|
|
||
|
3,817,662
|
|
|
3,470,055
|
|
||
Less-accumulated depreciation
|
(947,567
|
)
|
|
(869,046
|
)
|
||
Net real estate assets
|
2,870,095
|
|
|
2,601,009
|
|
||
For-sale residential condominiums
|
—
|
|
|
4,751
|
|
||
Real estate and other assets, net, held for sale
|
—
|
|
|
124,273
|
|
||
Cash and cash equivalents
|
13,867
|
|
|
11,151
|
|
||
Restricted cash
|
19,702
|
|
|
26,666
|
|
||
Accounts receivable, net of allowance of $2,848 and $3,548, respectively
|
23,073
|
|
|
30,093
|
|
||
Mortgages and notes receivable, net of allowance of $182 and $61, respectively
|
25,472
|
|
|
18,600
|
|
||
Accrued straight-line rents receivable, net of allowance of $929 and $1,294, respectively
|
116,992
|
|
|
99,490
|
|
||
Investments in and advances to unconsolidated affiliates
|
65,813
|
|
|
99,296
|
|
||
Deferred financing and leasing costs, net of accumulated amortization of $77,383 and $62,319, respectively
|
170,023
|
|
|
127,774
|
|
||
Prepaid expenses and other assets, net of accumulated amortization of $12,318 and $15,089,
respectively |
44,488
|
|
|
36,781
|
|
||
Total Assets
|
$
|
3,349,525
|
|
|
$
|
3,179,884
|
|
Liabilities, Redeemable Operating Partnership Units and Equity:
|
|
|
|
||||
Mortgages and notes payable
|
$
|
1,859,162
|
|
|
$
|
1,868,906
|
|
Accounts payable, accrued expenses and other liabilities
|
172,026
|
|
|
148,607
|
|
||
Financing obligations
|
29,358
|
|
|
30,150
|
|
||
Liabilities held for sale
|
—
|
|
|
35,815
|
|
||
Total Liabilities
|
2,060,546
|
|
|
2,083,478
|
|
||
Commitments and contingencies
|
|
|
|
||||
Redeemable Operating Partnership Units:
|
|
|
|
||||
Common Units, 3,733,016 and 3,729,518 outstanding, respectively
|
124,869
|
|
|
110,655
|
|
||
Series A Preferred Units (liquidation preference $1,000 per unit), 29,077 units issued and
outstanding |
29,077
|
|
|
29,077
|
|
||
Total Redeemable Operating Partnership Units
|
153,946
|
|
|
139,732
|
|
||
Equity:
|
|
|
|
||||
Common Units:
|
|
|
|
||||
General partner Common Units, 836,356 and 759,684 outstanding, respectively
|
11,427
|
|
|
9,575
|
|
||
Limited partner Common Units, 79,066,272 and 71,479,204 outstanding, respectively
|
1,131,481
|
|
|
948,187
|
|
||
Accumulated other comprehensive loss
|
(12,628
|
)
|
|
(5,734
|
)
|
||
Noncontrolling interests in consolidated affiliates
|
4,753
|
|
|
4,646
|
|
||
Total Equity
|
1,135,033
|
|
|
956,674
|
|
||
Total Liabilities, Redeemable Operating Partnership Units and Equity
|
$
|
3,349,525
|
|
|
$
|
3,179,884
|
|
|
|||||||||||
|
Year Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Rental and other revenues
|
$
|
516,102
|
|
|
$
|
463,444
|
|
|
$
|
440,836
|
|
Operating expenses:
|
|
|
|
|
|
||||||
Rental property and other expenses
|
187,185
|
|
|
167,827
|
|
|
155,411
|
|
|||
Depreciation and amortization
|
156,318
|
|
|
137,890
|
|
|
130,232
|
|
|||
Impairments of real estate assets
|
—
|
|
|
2,429
|
|
|
—
|
|
|||
General and administrative
|
37,626
|
|
|
35,753
|
|
|
33,308
|
|
|||
Total operating expenses
|
381,129
|
|
|
343,899
|
|
|
318,951
|
|
|||
Interest expense:
|
|
|
|
|
|
||||||
Contractual
|
92,838
|
|
|
91,458
|
|
|
87,409
|
|
|||
Amortization of deferred financing costs
|
3,685
|
|
|
3,312
|
|
|
3,385
|
|
|||
Financing obligations
|
(409
|
)
|
|
740
|
|
|
2,157
|
|
|||
|
96,114
|
|
|
95,510
|
|
|
92,951
|
|
|||
Other income:
|
|
|
|
|
|
||||||
Interest and other income
|
7,353
|
|
|
7,387
|
|
|
6,362
|
|
|||
Losses on debt extinguishment
|
(973
|
)
|
|
(24
|
)
|
|
(705
|
)
|
|||
|
6,380
|
|
|
7,363
|
|
|
5,657
|
|
|||
Income from continuing operations before disposition of property, condominiums and investments in unconsolidated affiliates and equity in earnings of unconsolidated affiliates
|
45,239
|
|
|
31,398
|
|
|
34,591
|
|
|||
Gains on disposition of property
|
—
|
|
|
764
|
|
|
74
|
|
|||
Gains/(losses) on for-sale residential condominiums
|
444
|
|
|
(316
|
)
|
|
276
|
|
|||
Gains on disposition of investments in unconsolidated affiliates
|
—
|
|
|
2,282
|
|
|
25,330
|
|
|||
Equity in earnings of unconsolidated affiliates
|
5,095
|
|
|
4,939
|
|
|
3,794
|
|
|||
Income from continuing operations
|
50,778
|
|
|
39,067
|
|
|
64,065
|
|
|||
Discontinued operations:
|
|
|
|
|
|
||||||
Income from discontinued operations
|
4,062
|
|
|
6,392
|
|
|
8,297
|
|
|||
Net gains/(losses) on disposition of discontinued operations
|
29,455
|
|
|
2,573
|
|
|
(86
|
)
|
|||
|
33,517
|
|
|
8,965
|
|
|
8,211
|
|
|||
Net income
|
84,295
|
|
|
48,032
|
|
|
72,276
|
|
|||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
(786
|
)
|
|
(755
|
)
|
|
(485
|
)
|
|||
Distributions on Preferred Units
|
(2,508
|
)
|
|
(4,553
|
)
|
|
(6,708
|
)
|
|||
Excess of Preferred Unit redemption/repurchase cost over carrying value
|
—
|
|
|
(1,895
|
)
|
|
—
|
|
|||
Net income available for common unitholders
|
$
|
81,001
|
|
|
$
|
40,829
|
|
|
$
|
65,083
|
|
Earnings per Common Unit – basic:
|
|
|
|
|
|
||||||
Income from continuing operations available for common unitholders
|
0.60
|
|
|
0.42
|
|
|
0.76
|
|
|||
Income from discontinued operations available for common unitholders
|
0.42
|
|
|
0.12
|
|
|
0.11
|
|
|||
Net income available for common unitholders
|
1.02
|
|
|
0.54
|
|
|
0.87
|
|
|||
Weighted average Common Units outstanding – basic
|
79,147
|
|
|
75,644
|
|
|
74,971
|
|
|||
Earnings per Common Unit – diluted:
|
|
|
|
|
|
||||||
Income from continuing operations available for common unitholders
|
0.60
|
|
|
0.42
|
|
|
0.76
|
|
|||
Income from discontinued operations available for common unitholders
|
0.42
|
|
|
0.12
|
|
|
0.11
|
|
|||
Net income available for common unitholders
|
1.02
|
|
|
0.54
|
|
|
0.87
|
|
|||
Weighted average Common Units outstanding – diluted
|
79,269
|
|
|
75,780
|
|
|
75,169
|
|
|||
Net income available for common unitholders:
|
|
|
|
|
|
||||||
Income from continuing operations available for common unitholders
|
$
|
47,484
|
|
|
$
|
31,864
|
|
|
$
|
56,872
|
|
Income from discontinued operations available for common unitholders
|
33,517
|
|
|
8,965
|
|
|
8,211
|
|
|||
Net income available for common unitholders
|
$
|
81,001
|
|
|
$
|
40,829
|
|
|
$
|
65,083
|
|
|
Year Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Comprehensive income:
|
|
|
|
|
|
||||||
Net income
|
$
|
84,295
|
|
|
$
|
48,032
|
|
|
$
|
72,276
|
|
Other comprehensive income/(loss):
|
|
|
|
|
|
||||||
Unrealized gains/(losses) on tax increment financing bond
|
411
|
|
|
234
|
|
|
(177
|
)
|
|||
Unrealized losses on cash flow hedges
|
(10,358
|
)
|
|
(2,202
|
)
|
|
—
|
|
|||
Amortization of cash flow hedges
|
3,053
|
|
|
(118
|
)
|
|
237
|
|
|||
Sale of cash flow hedge related to disposition of investments in unconsolidated affiliate
|
—
|
|
|
—
|
|
|
103
|
|
|||
Total other comprehensive income/(loss)
|
(6,894
|
)
|
|
(2,086
|
)
|
|
163
|
|
|||
Total comprehensive income
|
77,401
|
|
|
45,946
|
|
|
72,439
|
|
|||
Less-comprehensive (income) attributable to noncontrolling interests
|
(786
|
)
|
|
(755
|
)
|
|
(485
|
)
|
|||
Comprehensive income attributable to common unitholders
|
$
|
76,615
|
|
|
$
|
45,191
|
|
|
$
|
71,954
|
|
|
|||||||||||||||||||
|
Common Units
|
|
Accumulated
Other
Comprehensive Loss
|
|
Noncontrolling
Interests in
Consolidated
Affiliates
|
|
Total Partners’
Capital
|
||||||||||||
|
General
Partners’
Capital
|
|
Limited
Partners’
Capital
|
|
|||||||||||||||
Balance at December 31, 2009
|
$
|
10,485
|
|
|
$
|
1,038,328
|
|
|
$
|
(3,811
|
)
|
|
$
|
5,183
|
|
|
$
|
1,050,185
|
|
Issuances of Common Units, net
|
30
|
|
|
2,968
|
|
|
—
|
|
|
—
|
|
|
2,998
|
|
|||||
Distributions paid on Common Units
|
(1,274
|
)
|
|
(126,143
|
)
|
|
—
|
|
|
—
|
|
|
(127,417
|
)
|
|||||
Distributions paid on Preferred Units
|
(67
|
)
|
|
(6,641
|
)
|
|
—
|
|
|
—
|
|
|
(6,708
|
)
|
|||||
Share-based compensation expense
|
66
|
|
|
6,506
|
|
|
—
|
|
|
—
|
|
|
6,572
|
|
|||||
Distributions to noncontrolling interests in consolidated affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
(568
|
)
|
|
(568
|
)
|
|||||
Acquisition of noncontrolling interest in consolidated affiliate
|
1
|
|
|
139
|
|
|
—
|
|
|
(640
|
)
|
|
(500
|
)
|
|||||
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner
|
85
|
|
|
8,380
|
|
|
—
|
|
|
—
|
|
|
8,465
|
|
|||||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
(5
|
)
|
|
(480
|
)
|
|
—
|
|
|
485
|
|
|
—
|
|
|||||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
723
|
|
|
71,553
|
|
|
—
|
|
|
—
|
|
|
72,276
|
|
|||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
163
|
|
|
—
|
|
|
163
|
|
|||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
72,439
|
|
|||||||||
Balance at December 31, 2010
|
10,044
|
|
|
994,610
|
|
|
(3,648
|
)
|
|
4,460
|
|
|
1,005,466
|
|
|||||
Issuances of Common Units, net
|
233
|
|
|
23,037
|
|
|
—
|
|
|
—
|
|
|
23,270
|
|
|||||
Distributions paid on Common Units
|
(1,285
|
)
|
|
(127,178
|
)
|
|
—
|
|
|
—
|
|
|
(128,463
|
)
|
|||||
Distributions paid on Preferred Units
|
(46
|
)
|
|
(4,507
|
)
|
|
—
|
|
|
—
|
|
|
(4,553
|
)
|
|||||
Share-based compensation expense
|
61
|
|
|
6,033
|
|
|
—
|
|
|
—
|
|
|
6,094
|
|
|||||
Distributions to noncontrolling interests in consolidated affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
(569
|
)
|
|
(569
|
)
|
|||||
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner
|
96
|
|
|
9,387
|
|
|
—
|
|
|
—
|
|
|
9,483
|
|
|||||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
(8
|
)
|
|
(747
|
)
|
|
—
|
|
|
755
|
|
|
—
|
|
|||||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
480
|
|
|
47,552
|
|
|
—
|
|
|
—
|
|
|
48,032
|
|
|||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
(2,086
|
)
|
|
—
|
|
|
(2,086
|
)
|
|||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
45,946
|
|
|||||||||
Balance at December 31, 2011
|
9,575
|
|
|
948,187
|
|
|
(5,734
|
)
|
|
4,646
|
|
|
956,674
|
|
|||||
Issuances of Common Units, net
|
2,455
|
|
|
243,012
|
|
|
—
|
|
|
—
|
|
|
245,467
|
|
|||||
Distributions paid on Common Units
|
(1,343
|
)
|
|
(132,948
|
)
|
|
—
|
|
|
—
|
|
|
(134,291
|
)
|
|||||
Distributions paid on Preferred Units
|
(25
|
)
|
|
(2,483
|
)
|
|
—
|
|
|
—
|
|
|
(2,508
|
)
|
|||||
Share-based compensation expense
|
76
|
|
|
7,537
|
|
|
—
|
|
|
—
|
|
|
7,613
|
|
|||||
Distributions to noncontrolling interests in consolidated affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
(679
|
)
|
|
(679
|
)
|
|||||
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner
|
(146
|
)
|
|
(14,498
|
)
|
|
—
|
|
|
—
|
|
|
(14,644
|
)
|
|||||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
(8
|
)
|
|
(778
|
)
|
|
—
|
|
|
786
|
|
|
—
|
|
|||||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
843
|
|
|
83,452
|
|
|
—
|
|
|
—
|
|
|
84,295
|
|
|||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
(6,894
|
)
|
|
—
|
|
|
(6,894
|
)
|
|||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
77,401
|
|
|||||||||
Balance at December 31, 2012
|
$
|
11,427
|
|
|
$
|
1,131,481
|
|
|
$
|
(12,628
|
)
|
|
$
|
4,753
|
|
|
$
|
1,135,033
|
|
|
Year Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
84,295
|
|
|
$
|
48,032
|
|
|
$
|
72,276
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
158,327
|
|
|
143,146
|
|
|
136,158
|
|
|||
Amortization of lease incentives and acquisition-related intangible assets and liabilities
|
355
|
|
|
1,446
|
|
|
1,239
|
|
|||
Share-based compensation expense
|
7,613
|
|
|
6,094
|
|
|
6,572
|
|
|||
Allowance for losses on accounts and accrued straight-line rents receivable
|
1,059
|
|
|
2,521
|
|
|
4,009
|
|
|||
Amortization of deferred financing costs
|
3,685
|
|
|
3,312
|
|
|
3,385
|
|
|||
Amortization of cash flow hedges
|
3,053
|
|
|
(118
|
)
|
|
237
|
|
|||
Impairments of real estate assets
|
—
|
|
|
2,429
|
|
|
—
|
|
|||
Losses on debt extinguishment
|
973
|
|
|
24
|
|
|
705
|
|
|||
Net (gains)/losses on disposition of property
|
(29,455
|
)
|
|
(3,337
|
)
|
|
12
|
|
|||
(Gains)/losses on for-sale residential condominiums
|
(444
|
)
|
|
316
|
|
|
(276
|
)
|
|||
Gains on disposition of investments in unconsolidated affiliates
|
—
|
|
|
(2,282
|
)
|
|
(25,330
|
)
|
|||
Equity in earnings of unconsolidated affiliates
|
(5,095
|
)
|
|
(4,939
|
)
|
|
(3,794
|
)
|
|||
Changes in financing obligations
|
(1,282
|
)
|
|
(476
|
)
|
|
708
|
|
|||
Distributions of earnings from unconsolidated affiliates
|
4,592
|
|
|
5,005
|
|
|
4,377
|
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||||||
Accounts receivable
|
3,132
|
|
|
(8,498
|
)
|
|
(3,290
|
)
|
|||
Prepaid expenses and other assets
|
(1,129
|
)
|
|
(400
|
)
|
|
370
|
|
|||
Accrued straight-line rents receivable
|
(17,919
|
)
|
|
(13,604
|
)
|
|
(11,889
|
)
|
|||
Accounts payable, accrued expenses and other liabilities
|
(18,490
|
)
|
|
16,701
|
|
|
5,012
|
|
|||
Net cash provided by operating activities
|
193,270
|
|
|
195,372
|
|
|
190,481
|
|
|||
Investing activities:
|
|
|
|
|
|
||||||
Investments in acquired real estate and related intangible assets, net of cash acquired
|
(269,847
|
)
|
|
(75,510
|
)
|
|
(20,281
|
)
|
|||
Investments in development in process
|
(13,288
|
)
|
|
(5,835
|
)
|
|
(223
|
)
|
|||
Investments in tenant improvements and deferred leasing costs
|
(79,639
|
)
|
|
(80,934
|
)
|
|
(55,858
|
)
|
|||
Investments in building improvements
|
(35,799
|
)
|
|
(22,287
|
)
|
|
(26,355
|
)
|
|||
Net proceeds from disposition of real estate assets
|
152,456
|
|
|
17,717
|
|
|
6,801
|
|
|||
Net proceeds from disposition of for-sale residential condominiums
|
5,195
|
|
|
3,020
|
|
|
4,952
|
|
|||
Proceeds from disposition of investments in unconsolidated affiliates
|
—
|
|
|
4,756
|
|
|
15,000
|
|
|||
Distributions of capital from unconsolidated affiliates
|
1,311
|
|
|
1,577
|
|
|
1,933
|
|
|||
Investments in mortgages receivable
|
(8,648
|
)
|
|
—
|
|
|
—
|
|
|||
Repayments of mortgages and notes receivable
|
1,776
|
|
|
444
|
|
|
329
|
|
|||
Investments in and advances/repayments to/from unconsolidated affiliates
|
8,291
|
|
|
(39,901
|
)
|
|
(2,875
|
)
|
|||
Changes in restricted cash and other investing activities
|
(620
|
)
|
|
(18,526
|
)
|
|
(1,576
|
)
|
|||
Net cash used in investing activities
|
(238,812
|
)
|
|
(215,479
|
)
|
|
(78,153
|
)
|
|||
Financing activities:
|
|
|
|
|
|
||||||
Distributions on Common Units
|
(134,291
|
)
|
|
(128,463
|
)
|
|
(127,417
|
)
|
|||
Redemptions/repurchases of Preferred Units
|
—
|
|
|
(52,515
|
)
|
|
—
|
|
|||
Distributions on Preferred Units
|
(2,508
|
)
|
|
(4,553
|
)
|
|
(6,708
|
)
|
|||
Distributions to noncontrolling interests in consolidated affiliates
|
(679
|
)
|
|
(569
|
)
|
|
(568
|
)
|
|||
Acquisition of noncontrolling interest in consolidated affiliate
|
—
|
|
|
—
|
|
|
(500
|
)
|
|||
Proceeds from the issuance of Common Units
|
249,489
|
|
|
23,270
|
|
|
2,998
|
|
|||
Costs paid for the issuance of Common Units
|
(3,600
|
)
|
|
—
|
|
|
—
|
|
|||
Repurchase of units related to tax withholdings
|
(2,721
|
)
|
|
—
|
|
|
—
|
|
|||
Borrowings on revolving credit facility
|
524,100
|
|
|
525,800
|
|
|
37,500
|
|
|||
Repayments of revolving credit facility
|
(863,100
|
)
|
|
(193,800
|
)
|
|
(7,500
|
)
|
|||
Borrowings on mortgages and notes payable
|
507,350
|
|
|
200,000
|
|
|
10,368
|
|
|||
Repayments of mortgages and notes payable
|
(219,530
|
)
|
|
(344,203
|
)
|
|
(27,004
|
)
|
|||
Borrowings on financing obligations
|
1,839
|
|
|
—
|
|
|
—
|
|
|||
Payments on financing obligations
|
(1,316
|
)
|
|
(1,194
|
)
|
|
(1,116
|
)
|
|||
Payments on debt extinguishment
|
(908
|
)
|
|
—
|
|
|
(577
|
)
|
|||
Additions to deferred financing costs and other financing activities
|
(5,867
|
)
|
|
(6,713
|
)
|
|
(1,125
|
)
|
|||
Net cash provided by/(used in) financing activities
|
48,258
|
|
|
17,060
|
|
|
(121,649
|
)
|
|
Year Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Net increase/(decrease) in cash and cash equivalents
|
$
|
2,716
|
|
|
$
|
(3,047
|
)
|
|
$
|
(9,321
|
)
|
Cash and cash equivalents at beginning of the period
|
11,151
|
|
|
14,198
|
|
|
23,519
|
|
|||
Cash and cash equivalents at end of the period
|
$
|
13,867
|
|
|
$
|
11,151
|
|
|
$
|
14,198
|
|
|
Year Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Cash paid for interest, net of amounts capitalized
|
$
|
93,547
|
|
|
$
|
90,838
|
|
|
$
|
86,395
|
|
|
Year Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Unrealized losses on cash flow hedges
|
$
|
(10,358
|
)
|
|
$
|
(2,202
|
)
|
|
$
|
—
|
|
Changes in accrued capital expenditures
|
8,116
|
|
|
11,048
|
|
|
(1,946
|
)
|
|||
Write-off of fully depreciated real estate assets
|
48,978
|
|
|
48,565
|
|
|
43,955
|
|
|||
Write-off of fully amortized deferred financing and leasing costs
|
19,176
|
|
|
19,987
|
|
|
15,719
|
|
|||
Unrealized gains/(losses) on marketable securities of non-qualified deferred compensation plan
|
475
|
|
|
(119
|
)
|
|
382
|
|
|||
Settlement of financing obligation
|
—
|
|
|
—
|
|
|
4,184
|
|
|||
Adjustment of Redeemable Common Units to fair value
|
11,915
|
|
|
(10,183
|
)
|
|
(2,721
|
)
|
|||
Unrealized gain/(loss) on tax increment financing bond
|
411
|
|
|
234
|
|
|
(177
|
)
|
|||
Mortgages receivable from seller financing
|
—
|
|
|
—
|
|
|
17,030
|
|
|||
Assumption of mortgages and notes payable related to acquisition activities
|
7,837
|
|
|
192,367
|
|
|
40,306
|
|
|||
Reduction of advances to unconsolidated affiliates related to acquisition activities
|
26,000
|
|
|
—
|
|
|
—
|
|
|||
Issuances of Common Units to acquire real estate assets
|
2,299
|
|
|
—
|
|
|
—
|
|
•
|
a
492,000
square foot office property in Atlanta, GA for a purchase price of
$144.9 million
;
|
•
|
a
616,000
square foot office property in Pittsburgh, PA for a purchase price of
$91.2 million
;
|
•
|
three
medical office properties in Greensboro, NC for a purchase price of
$29.6 million
, which consisted of the issuance of
66,864
Common Units, contingent consideration with fair value at the acquisition date of
$0.7 million
, and the assumption of secured debt due
August 2014
recorded at fair value of
$7.9 million
, with an effective interest rate of
4.06%
;
|
•
|
a
178,300
square foot office property in Cary, NC from our DLF I joint venture for an agreed upon value of
$26.0 million
, the net proceeds of which were used to reduce the balance of the advance due to us from the joint venture; and
|
•
|
68
acres of development land currently zoned for
1.3 million
square feet of future office development in Nashville, TN for a purchase price of
$15.0 million
.
|
|
Total
Purchase Price Allocation
|
||
Real estate assets
|
$
|
135,128
|
|
Acquisition-related intangible assets (in deferred financing and leasing costs)
|
21,637
|
|
|
Acquisition-related below market lease liabilities (in accounts payable, accrued expenses and other liabilities)
|
(11,875
|
)
|
|
Total allocation
|
$
|
144,890
|
|
|
Year Ended December 31,
|
||||||
|
2012
|
|
2011
|
||||
|
(unaudited)
|
||||||
Pro forma rental and other revenues
|
$
|
530,613
|
|
|
$
|
479,908
|
|
Pro forma net income
|
$
|
84,195
|
|
|
$
|
44,878
|
|
Pro forma earnings per share - basic
|
$
|
1.02
|
|
|
$
|
0.50
|
|
Pro forma earnings per share - diluted
|
$
|
1.02
|
|
|
$
|
0.50
|
|
|
Total
Purchase Price Allocation
|
||
Real estate assets
|
$
|
241,602
|
|
Acquisition-related intangible assets (in deferred financing and leasing costs)
|
39,721
|
|
|
Furniture, fixtures and equipment (in prepaid expenses and other assets)
|
1,101
|
|
|
Acquisition-related below market lease liabilities (in accounts payable, accrued expenses and other liabilities)
|
(15,627
|
)
|
|
Total allocation
|
$
|
266,797
|
|
|
Year Ended December 31,
|
||||||
|
2011
|
|
2010
|
||||
|
(unaudited)
|
||||||
Pro forma rental and other revenues
|
$
|
505,072
|
|
|
$
|
491,573
|
|
Pro forma net income
|
$
|
38,470
|
|
|
$
|
58,216
|
|
Pro forma earnings per share - basic
|
$
|
0.51
|
|
|
$
|
0.78
|
|
Pro forma earnings per share - diluted
|
$
|
0.51
|
|
|
$
|
0.77
|
|
•
|
three
non-core buildings in Jackson, MS and Atlanta, GA for a sale price of
$86.5 million
and recorded gain on disposition of discontinued operations of
$14.0 million
;
|
•
|
five
non-core office properties in Nashville, TN for a sale price of
$41.0 million
and recorded gain on disposition of discontinued operations of
$7.0 million
;
|
•
|
a non-core office property in Pinellas County, FL for a sale price of
$9.5 million
and recorded gain on disposition of discontinued operations of
$1.4 million
;
|
•
|
a non-core office property in Kansas City, MO for a sale price of
$6.5 million
and recorded gain on disposition of discontinued operations of
$1.9 million
;
|
•
|
96
vacant non-core rental residential units in Kansas City, MO for a sale price of
$11.0 million
and recorded gain on disposition of discontinued operations of
$5.1 million
; and
|
•
|
17
for-sale residential condominiums in Raleigh, NC for a sale price of
$5.5 million
and recorded a net gain of
$0.4 million
. All for-sale residential condominiums were sold as of December 31, 2012.
|
|
December 31,
|
||||||
|
2012
|
|
2011
|
||||
Seller financing (first mortgages)
|
$
|
15,853
|
|
|
$
|
17,180
|
|
Less allowance
|
—
|
|
|
—
|
|
||
|
15,853
|
|
|
17,180
|
|
||
Mortgage receivable
|
8,648
|
|
|
—
|
|
||
Less allowance
|
—
|
|
|
—
|
|
||
|
8,648
|
|
|
—
|
|
||
Promissory notes
|
1,153
|
|
|
1,481
|
|
||
Less allowance
|
(182
|
)
|
|
(61
|
)
|
||
|
971
|
|
|
1,420
|
|
||
Mortgages and notes receivable, net
|
$
|
25,472
|
|
|
$
|
18,600
|
|
|
December 31,
|
||||||
|
2012
|
|
2011
|
||||
Beginning notes receivable allowance
|
$
|
61
|
|
|
$
|
868
|
|
Bad debt expense
|
186
|
|
|
196
|
|
||
Recoveries/write-offs/other
|
(65
|
)
|
|
(1,003
|
)
|
||
Total notes receivable allowance
|
$
|
182
|
|
|
$
|
61
|
|
Joint Venture
|
|
Location of Properties
|
|
Ownership
Interest
|
Concourse Center Associates, LLC
|
|
Greensboro, NC
|
|
50.0%
|
Plaza Colonnade, LLC
|
|
Kansas City, MO
|
|
50.0%
|
Lofts at Weston, LLC
|
|
Raleigh, NC
|
|
50.0%
|
Board of Trade Investment Company
|
|
Kansas City, MO
|
|
49.0%
|
Highwoods DLF 97/26 DLF 99/32, LP
|
|
Atlanta, GA; Greensboro, NC; Orlando, FL
|
|
42.9%
|
Highwoods KC Glenridge Office, LLC
|
|
Atlanta, GA
|
|
40.0%
|
Highwoods KC Glenridge Land, LLC
|
|
Atlanta, GA
|
|
39.9%
|
HIW-KC Orlando, LLC
|
|
Orlando, FL
|
|
40.0%
|
Kessinger/Hunter, LLC
|
|
Kansas City, MO
|
|
26.5%
|
Highwoods DLF Forum, LLC
|
|
Raleigh, NC
|
|
25.0%
|
Highwoods DLF 98/29, LLC
|
|
Atlanta, GA; Charlotte, NC; Greensboro, NC; Raleigh, NC; Orlando, FL
|
|
22.8%
|
|
December 31,
|
||||||
|
2012
|
|
2011
|
||||
Balance Sheets:
|
|
|
|
||||
Assets:
|
|
|
|
||||
Real estate assets, net
|
$
|
480,245
|
|
|
$
|
523,992
|
|
All other assets, net
|
112,295
|
|
|
95,504
|
|
||
Total Assets
|
$
|
592,540
|
|
|
$
|
619,496
|
|
Liabilities and Partners’ or Shareholders’ Equity:
|
|
|
|
||||
Mortgages and notes payable
(1)
|
$
|
360,944
|
|
|
$
|
396,977
|
|
All other liabilities
|
23,983
|
|
|
21,121
|
|
||
Partners’ or shareholders’ equity
|
207,613
|
|
|
201,398
|
|
||
Total Liabilities and Partners’ or Shareholders’ Equity
|
$
|
592,540
|
|
|
$
|
619,496
|
|
Our share of historical partners’ or shareholders’ equity
|
$
|
63,546
|
|
|
$
|
59,215
|
|
Advances to unconsolidated affiliate
|
—
|
|
|
38,323
|
|
||
Net excess of cost of investments over the net book value of underlying net assets
(2)
|
$
|
2,267
|
|
|
$
|
1,758
|
|
Carrying value of investments in and advances to unconsolidated affiliates
|
$
|
65,813
|
|
|
$
|
99,296
|
|
Our share of unconsolidated non-recourse mortgage debt
(1)
|
$
|
136,080
|
|
|
$
|
145,689
|
|
(1)
|
Our share of scheduled future principal payments, including amortization, due on mortgages and notes payable at
December 31, 2012
is as follows:
|
2013
|
$
|
23,427
|
|
2014
|
57,130
|
|
|
2015
|
21,786
|
|
|
2016
|
1,017
|
|
|
2017
|
26,412
|
|
|
Thereafter
|
6,308
|
|
|
|
$
|
136,080
|
|
(2)
|
This amount represents the aggregate difference between our historical cost basis and the basis reflected at the joint venture level, which is typically depreciated over the life of the related asset.
|
|
Year Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Income Statements:
|
|
|
|
|
|
||||||
Rental and other revenues
|
$
|
97,225
|
|
|
$
|
96,771
|
|
|
$
|
115,826
|
|
Expenses:
|
|
|
|
|
|
||||||
Rental property and other expenses
|
45,391
|
|
|
42,052
|
|
|
54,695
|
|
|||
Depreciation and amortization
|
24,007
|
|
|
25,184
|
|
|
29,945
|
|
|||
Impairments of real estate assets
|
7,180
|
|
|
—
|
|
|
—
|
|
|||
Interest expense
|
20,296
|
|
|
23,062
|
|
|
27,187
|
|
|||
Total expenses
|
96,874
|
|
|
90,298
|
|
|
111,827
|
|
|||
Income before disposition of properties
|
351
|
|
|
6,473
|
|
|
3,999
|
|
|||
Gains on disposition of properties
|
11,184
|
|
|
—
|
|
|
—
|
|
|||
Net income
|
$
|
11,535
|
|
|
$
|
6,473
|
|
|
$
|
3,999
|
|
Our share of:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
$
|
7,580
|
|
|
$
|
8,232
|
|
|
$
|
10,318
|
|
Impairments of real estate assets
|
$
|
12,924
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest expense
|
$
|
7,286
|
|
|
$
|
8,075
|
|
|
$
|
10,449
|
|
Gains on disposition of properties
|
$
|
1,120
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Net income
|
$
|
3,337
|
|
|
$
|
2,585
|
|
|
$
|
1,483
|
|
|
|
|
|
|
|
||||||
Our share of net income
|
$
|
3,337
|
|
|
$
|
2,585
|
|
|
$
|
1,483
|
|
Adjustment for management and other fees
|
1,758
|
|
|
2,354
|
|
|
2,311
|
|
|||
Equity in earnings of unconsolidated affiliates
|
$
|
5,095
|
|
|
$
|
4,939
|
|
|
$
|
3,794
|
|
|
December 31,
|
||||||
|
2012
|
|
2011
|
||||
Assets:
|
|
|
|
||||
Deferred financing costs
|
$
|
21,759
|
|
|
$
|
18,044
|
|
Less accumulated amortization
|
(7,862
|
)
|
|
(5,797
|
)
|
||
|
13,897
|
|
|
12,247
|
|
||
Deferred leasing costs (including lease incentives and acquisition-related intangible assets)
|
225,647
|
|
|
172,049
|
|
||
Less accumulated amortization
|
(69,521
|
)
|
|
(56,522
|
)
|
||
|
156,126
|
|
|
115,527
|
|
||
Deferred financing and leasing costs, net
|
$
|
170,023
|
|
|
$
|
127,774
|
|
|
|
|
|
||||
Liabilities (in accounts payable, accrued expenses and other liabilities):
|
|
|
|
||||
Acquisition-related below market lease liabilities
|
$
|
37,019
|
|
|
$
|
16,441
|
|
Less accumulated amortization
|
(3,383
|
)
|
|
(971
|
)
|
||
|
$
|
33,636
|
|
|
$
|
15,470
|
|
|
Year Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Amortization of deferred financing costs
|
$
|
3,685
|
|
|
$
|
3,312
|
|
|
$
|
3,385
|
|
Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization)
|
$
|
27,731
|
|
|
$
|
20,980
|
|
|
$
|
17,383
|
|
Amortization of lease incentives (in rental and other revenues)
|
$
|
1,439
|
|
|
$
|
1,371
|
|
|
$
|
1,239
|
|
Amortization of acquisition-related intangible assets (in rental and other revenues)
|
$
|
1,357
|
|
|
$
|
915
|
|
|
$
|
531
|
|
Amortization of acquisition-related intangible assets (in rental property and other expenses)
|
$
|
186
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Amortization of acquisition-related below market lease liabilities (in rental and other revenues)
|
$
|
(2,627
|
)
|
|
$
|
(840
|
)
|
|
$
|
(96
|
)
|
Years Ending December 31,
|
|
Amortization
of Deferred Financing
Costs
|
|
Amortization
of Deferred Leasing Costs and Acquisition-Related Intangible Assets (in Depreciation and Amortization)
|
|
Amortization
of Lease Incentives (in Rental and Other Revenues)
|
|
Amortization
of Acquisition-Related Intangible Assets (in Rental and Other Revenues)
|
|
Amortization of Acquisition-Related Intangible Assets (in Rental Property and Other Expenses)
|
|
Amortization
of Acquisition-Related Below Market Lease Liabilities (in Rental and Other Revenues)
|
||||||||||||
2013
|
|
$
|
3,521
|
|
|
$
|
29,636
|
|
|
$
|
1,314
|
|
|
$
|
1,277
|
|
|
$
|
553
|
|
|
$
|
(4,149
|
)
|
2014
|
|
3,224
|
|
|
25,200
|
|
|
1,163
|
|
|
989
|
|
|
553
|
|
|
(4,067
|
)
|
||||||
2015
|
|
2,594
|
|
|
20,391
|
|
|
928
|
|
|
754
|
|
|
553
|
|
|
(3,801
|
)
|
||||||
2016
|
|
1,519
|
|
|
16,877
|
|
|
734
|
|
|
659
|
|
|
553
|
|
|
(3,499
|
)
|
||||||
2017
|
|
1,225
|
|
|
14,141
|
|
|
654
|
|
|
587
|
|
|
553
|
|
|
(3,256
|
)
|
||||||
Thereafter
|
|
1,814
|
|
|
33,569
|
|
|
2,065
|
|
|
780
|
|
|
1,643
|
|
|
(14,864
|
)
|
||||||
|
|
$
|
13,897
|
|
|
$
|
139,814
|
|
|
$
|
6,858
|
|
|
$
|
5,046
|
|
|
$
|
4,408
|
|
|
$
|
(33,636
|
)
|
Weighted average remaining amortization periods as of December 31, 2012 (in years)
|
|
4.6
|
|
|
6.9
|
|
|
7.7
|
|
|
5.6
|
|
|
8.0
|
|
|
9.9
|
|
|
|
Acquisition-Related Intangible Assets (amortized in Rental and Other Revenues)
|
|
Acquisition-Related Intangible Assets (amortized in Depreciation and Amortization)
|
|
Acquisition-Related Intangible Assets (amortized in Rental Property and Other Expenses)
|
|
Acquisition-Related Below Market Lease Liabilities (amortized in Rental and Other Revenues)
|
||||||||
Amount recorded from acquisition activity
|
|
$
|
2,636
|
|
|
$
|
37,247
|
|
|
$
|
4,593
|
|
|
$
|
(20,934
|
)
|
Weighted average remaining amortization periods (in years)
|
|
5.3
|
|
|
8.7
|
|
|
8.0
|
|
|
10.6
|
|
|
December 31,
|
||||||
|
2012
|
|
2011
|
||||
Secured indebtedness:
(1)
|
|
|
|
||||
5.45% (5.12% effective rate) mortgage loan due 2014
(2)
|
67,604
|
|
|
67,809
|
|
||
5.18% (4.22% effective rate) mortgage loan due 2017
(3)
|
120,924
|
|
|
123,613
|
|
||
6.03% mortgage loan due 2013
|
—
|
|
|
125,264
|
|
||
5.68% mortgage loan due 2013
|
107,289
|
|
|
110,343
|
|
||
5.17% (6.43% effective rate) mortgage loan due 2015
(4)
|
39,805
|
|
|
40,015
|
|
||
6.88% mortgage loans due 2016
|
110,671
|
|
|
112,075
|
|
||
7.50% mortgage loan due 2016
|
45,662
|
|
|
46,181
|
|
||
5.74% to 9.00% mortgage loans due between 2012 and 2016
(5) (6) (7)
|
57,652
|
|
|
72,640
|
|
||
Variable rate construction loan due 2012
|
—
|
|
|
17,802
|
|
||
|
549,607
|
|
|
715,742
|
|
||
Unsecured indebtedness:
|
|
|
|
||||
5.85% (5.88% effective rate) notes due 2017
(8)
|
379,194
|
|
|
391,164
|
|
||
7.50% notes due 2018
|
200,000
|
|
|
200,000
|
|
||
3.625% (3.752% effective rate) notes due 2023
(9)
|
247,361
|
|
|
—
|
|
||
Variable rate term loan due 2016
(10)
|
35,000
|
|
|
200,000
|
|
||
Variable rate term loan due 2018
(11)
|
200,000
|
|
|
—
|
|
||
Variable rate term loan due 2019
(12)
|
225,000
|
|
|
—
|
|
||
Revolving credit facility due 2015
(13)
|
23,000
|
|
|
362,000
|
|
||
|
1,309,555
|
|
|
1,153,164
|
|
||
Total
|
$
|
1,859,162
|
|
|
$
|
1,868,906
|
|
(1)
|
The secured mortgage loans payable are collateralized by real estate assets with an aggregate undepreciated book value of $
966.9 million
at
December 31, 2012
. Our fixed rate mortgage loans generally are either locked out to prepayment for all or a portion of their term or are prepayable subject to certain conditions including prepayment penalties.
|
(2)
|
Includes unamortized fair market premium of
$0.2 million
as of
December 31, 2012
.
|
(3)
|
Includes unamortized fair market premium of
$4.6 million
as of
December 31, 2012
.
|
(4)
|
Net of unamortized fair market value discount of $
1.2 million
as of
December 31, 2012
.
|
(5)
|
Includes mortgage debt related to Harborview, a consolidated 20.0% owned joint venture, of $
21.0 million
at
December 31, 2011
. See Note 8.
|
(6)
|
Includes mortgage debt related to Markel, a consolidated 50.0% owned joint venture, of $
33.1 million
and $
34.0 million
at
December 31, 2012
and
2011
, respectively. See Note 10.
|
(7)
|
Net of unamortized fair market value premium of $
0.5 million
and $
0.3 million
at
December 31, 2012
and
2011
, respectively.
|
(8)
|
Net of unamortized original issuance discount of $
0.5 million
and $
0.6 million
at
December 31, 2012
and
2011
, respectively.
|
(9)
|
Net of unamortized original issuance discount of
$2.6 million
at
December 31, 2012
.
|
(10)
|
The interest rate is
2.42%
at
December 31, 2012
.
|
(11)
|
The interest rate is
1.87%
at
December 31, 2012
.
|
(12)
|
As more fully described in Note 7, we entered into floating-to-fixed interest rate swaps that effectively fix LIBOR for the full amount and duration of this loan. Accordingly, the equivalent fixed rate of this loan is
3.58%
.
|
(13)
|
The interest rate is
1.71%
at
December 31, 2012
.
|
Years Ending December 31,
|
|
Principal Amount
|
||
2013
|
|
$
|
123,537
|
|
2014
|
|
112,283
|
|
|
2015
|
|
67,733
|
|
|
2016
|
|
193,217
|
|
|
2017
|
|
488,617
|
|
|
Thereafter
|
|
873,775
|
|
|
|
|
$
|
1,859,162
|
|
7.
|
Derivative Financial Instruments
|
7.
|
Derivative Financial Instruments- Continued
|
|
Fair Value as of December 31,
|
||||||
|
2012
|
|
2011
|
||||
Liability Derivatives:
|
|
|
|
||||
Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities:
|
|
|
|
||||
Interest rate swaps
|
$
|
9,369
|
|
|
$
|
2,202
|
|
|
Year Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Derivatives Designated as Cash Flow Hedges:
|
|
|
|
|
|
||||||
Amount of unrealized losses recognized in AOCL on derivatives (effective portion):
|
|
|
|
|
|
||||||
Interest rate swaps
|
$
|
(10,358
|
)
|
|
$
|
(2,202
|
)
|
|
$
|
—
|
|
Amount of (gains)/losses reclassified out of AOCL into contractual interest expense (effective portion):
|
|
|
|
|
|
||||||
Interest rate swaps
|
$
|
3,053
|
|
|
$
|
(118
|
)
|
|
$
|
237
|
|
8.
|
Financing Arrangements
|
|
December 31,
|
||||||
|
2012
|
|
2011
|
||||
Harborview financing obligation
|
$
|
17,571
|
|
|
$
|
17,086
|
|
Tax increment financing bond
|
11,787
|
|
|
13,064
|
|
||
Total
|
$
|
29,358
|
|
|
$
|
30,150
|
|
8.
|
Financing Arrangements - Continued
|
9.
|
Commitments and Contingencies
|
Years Ending December 31,
|
|
Minimum Payments
|
||
2013
|
|
$
|
2,383
|
|
2014
|
|
2,404
|
|
|
2015
|
|
2,427
|
|
|
2016
|
|
2,451
|
|
|
2017
|
|
2,476
|
|
|
Thereafter
|
|
49,875
|
|
|
|
|
$
|
62,016
|
|
9.
|
Commitments and Contingencies - Continued
|
10.
|
Noncontrolling Interests
|
11.
|
Disclosure About Fair Value of Financial Instruments
|
11.
|
Disclosure About Fair Value of Financial Instruments – Continued
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
December 31, 2012
|
|
Quoted Prices
in Active
Markets for Identical Assets or Liabilities
|
|
Significant Observable Inputs
|
|
Significant Unobservable Inputs
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Mortgages and notes receivable, at fair value
(1)
|
$
|
24,725
|
|
|
$
|
—
|
|
|
$
|
16,077
|
|
|
$
|
8,648
|
|
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
|
3,354
|
|
|
3,354
|
|
|
—
|
|
|
—
|
|
||||
Tax increment financing bond (in prepaid expenses and other assets)
|
14,496
|
|
|
—
|
|
|
—
|
|
|
14,496
|
|
||||
Total Assets
|
$
|
42,575
|
|
|
$
|
3,354
|
|
|
$
|
16,077
|
|
|
$
|
23,144
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Mortgages and notes payable, at fair value
(1)
|
$
|
1,987,364
|
|
|
$
|
—
|
|
|
$
|
1,987,364
|
|
|
$
|
—
|
|
Interest rate swaps (in accounts payable, accrued expenses and other liabilities)
|
9,369
|
|
|
—
|
|
|
9,369
|
|
|
—
|
|
||||
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
|
3,354
|
|
|
3,354
|
|
|
—
|
|
|
—
|
|
||||
Contingent consideration to acquire real estate assets (in accounts payable, accrued expenses and other liabilities)
|
563
|
|
|
—
|
|
|
—
|
|
|
563
|
|
||||
Financing obligations, at fair value
(1)
|
23,252
|
|
|
—
|
|
|
—
|
|
|
23,252
|
|
||||
Total Liabilities
|
$
|
2,023,902
|
|
|
$
|
3,354
|
|
|
$
|
1,996,733
|
|
|
$
|
23,815
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
December 31, 2011
|
|
Quoted Prices
in Active
Markets for Identical Assets or Liabilities
|
|
Significant Observable Inputs
|
|
Significant Unobservable Inputs
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Mortgages and notes receivable, at fair value
(1)
|
$
|
18,990
|
|
|
$
|
—
|
|
|
$
|
18,990
|
|
|
$
|
—
|
|
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
|
3,149
|
|
|
3,149
|
|
|
—
|
|
|
—
|
|
||||
Tax increment financing bond (in prepaid expenses and other assets)
|
14,788
|
|
|
—
|
|
|
—
|
|
|
14,788
|
|
||||
Impaired real estate assets and for-sale residential condominiums
|
12,767
|
|
|
—
|
|
|
—
|
|
|
12,767
|
|
||||
Total Assets
|
$
|
49,694
|
|
|
$
|
3,149
|
|
|
$
|
18,990
|
|
|
$
|
27,555
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Mortgages and notes payable, at fair value
(1)
|
$
|
1,959,438
|
|
|
$
|
—
|
|
|
$
|
1,959,438
|
|
|
$
|
—
|
|
Interest rate swaps (in accounts payable, accrued expenses and other liabilities)
|
2,202
|
|
|
—
|
|
|
2,202
|
|
|
—
|
|
||||
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
|
3,149
|
|
|
3,149
|
|
|
—
|
|
|
—
|
|
||||
Financing obligations, at fair value
(1)
|
17,572
|
|
|
—
|
|
|
—
|
|
|
17,572
|
|
||||
Total Liabilities
|
$
|
1,982,361
|
|
|
$
|
3,149
|
|
|
$
|
1,961,640
|
|
|
$
|
17,572
|
|
11.
|
Disclosure About Fair Value of Financial Instruments – Continued
|
|
December 31,
|
||||||
|
2012
|
|
2011
|
||||
Asset:
|
|
|
|
||||
Tax Increment Financing Bond:
|
|
|
|
||||
Beginning balance
|
$
|
14,788
|
|
|
$
|
15,699
|
|
Principal repayment
|
(703
|
)
|
|
(1,145
|
)
|
||
Unrealized gains (in AOCL)
|
411
|
|
|
234
|
|
||
Ending balance
|
$
|
14,496
|
|
|
$
|
14,788
|
|
Liability:
|
|
|
|
||||
Contingent Consideration to Acquire Real Estate Assets:
|
|
|
|
||||
Beginning balance
|
$
|
—
|
|
|
$
|
—
|
|
Fair value at acquisition date
|
677
|
|
|
—
|
|
||
Unrealized gains (in general and administrative expenses)
|
(114
|
)
|
|
—
|
|
||
Ending balance
|
$
|
563
|
|
|
$
|
—
|
|
|
Fair Value at
December 31, 2012
|
|
Valuation
Technique
|
|
Unobservable
Input
|
|
Rate/ Percentage
|
|||
Asset:
|
|
|
|
|
|
|
|
|||
Tax increment financing bond
|
$
|
14,496
|
|
|
Income approach
|
|
Discount rate
|
|
10.34
|
%
|
Liability:
|
|
|
|
|
|
|
|
|||
Contingent consideration to acquire real estate assets
|
$
|
563
|
|
|
Income approach
|
|
Payout percentage
|
|
75.00
|
%
|
12.
|
Equity
|
12.
|
Equity - Continued
|
Preferred Unit Issuances
|
|
Issue Date
|
|
Number of
Units
Outstanding
|
|
Carrying
Value
|
|
Liquidation Preference
Per Unit
|
|
Optional Redemption
Date
|
|
Annual
Distributions
Payable
Per Unit
|
|||||||
|
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|||||||
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
8.625% Series A Cumulative Redeemable
|
|
2/12/1997
|
|
29
|
|
|
$
|
29,077
|
|
|
$
|
1,000
|
|
|
2/12/2027
|
|
$
|
86.25
|
|
December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
8.625% Series A Cumulative Redeemable
|
|
2/12/1997
|
|
29
|
|
|
$
|
29,077
|
|
|
$
|
1,000
|
|
|
2/12/2027
|
|
$
|
86.25
|
|
13.
|
Employee Benefit Plans
|
13.
|
Employee Benefit Plans - Continued
|
(1)
|
Represents the interest rate as of the grant date on US treasury bonds having the same life as the estimated life of the option grants.
|
(2)
|
The dividend yield is calculated utilizing the dividends paid for the previous one-year period and the per share price of Common Stock on the date of grant.
|
(3)
|
Based on the historical volatility of Common Stock over a period relevant to the related stock option grant.
|
(4)
|
The average expected option life is based on an analysis of the Company's historical data.
|
13.
|
Employee Benefit Plans - Continued
|
|
Options Outstanding
|
|||||
|
Number of Shares
|
|
Weighted Average Exercise Price
|
|||
Balances at December 31, 2009
|
1,467,773
|
|
|
$
|
27.15
|
|
Options granted
|
190,826
|
|
|
29.05
|
|
|
Options exercised
|
(178,403
|
)
|
|
22.54
|
|
|
Balances at December 31, 2010
|
1,480,196
|
|
|
27.95
|
|
|
Options granted
|
146,581
|
|
|
33.93
|
|
|
Options exercised
|
(417,322
|
)
|
|
26.79
|
|
|
Balances at December 31, 2011
|
1,209,455
|
|
|
29.08
|
|
|
Options granted
|
190,886
|
|
|
31.97
|
|
|
Options exercised
|
(271,032
|
)
|
|
26.87
|
|
|
Balances at December 31, 2012
(1) (2)
|
1,129,309
|
|
|
$
|
30.10
|
|
(1)
|
The outstanding options at
December 31, 2012
had a weighted average remaining life of
3.3
years.
|
(2)
|
The Company has
634,550
options exercisable at
December 31, 2012
with a weighted average exercise price of
$30.75
, weighted average remaining life of
2.1
years and intrinsic value of
$2.6 million
. Of these exercisable options,
173,007
had exercise prices higher than the market price of our Common Stock at
December 31, 2012
.
|
13.
|
Employee Benefit Plans - Continued
|
|
Number of Shares
|
|
Weighted Average Grant Date Fair Value
|
|||
Restricted shares outstanding at December 31, 2009
|
316,074
|
|
|
$
|
28.60
|
|
Awarded and issued
(1)
|
88,930
|
|
|
29.05
|
|
|
Vested
(2)
|
(138,745
|
)
|
|
31.81
|
|
|
Forfeited
|
(1,933
|
)
|
|
25.86
|
|
|
Restricted shares outstanding at December 31, 2010
|
264,326
|
|
|
27.08
|
|
|
Awarded and issued
(1)
|
76,966
|
|
|
33.70
|
|
|
Vested
(2)
|
(116,631
|
)
|
|
30.64
|
|
|
Restricted shares outstanding at December 31, 2011
|
224,661
|
|
|
28.02
|
|
|
Awarded and issued
(1)
|
90,983
|
|
|
32.27
|
|
|
Vested
(2)
|
(92,239
|
)
|
|
27.14
|
|
|
Forfeited
|
(903
|
)
|
|
30.12
|
|
|
Restricted shares outstanding at December 31, 2012
|
222,502
|
|
|
$
|
30.31
|
|
(1)
|
The fair value at grant date of time-based restricted stock issued during the years ended
December 31, 2012
,
2011
and
2010
was
$2.9 million
,
$2.6 million
and
$2.6 million
, respectively.
|
(2)
|
The vesting date fair value of time-based restricted stock that vested during the years ended
December 31, 2012
,
2011
and
2010
was
$2.9 million
,
$3.9 million
and
$4.3 million
, respectively. Vested shares include those shares repurchased for withholding taxes.
|
|
2012
|
|
2011
|
|
2010
|
|||
Risk free interest rate
(1)
|
0.4
|
%
|
|
1.0
|
%
|
|
1.3
|
%
|
Common stock dividend yield
(2)
|
5.4
|
%
|
|
5.4
|
%
|
|
5.6
|
%
|
Expected volatility
(3)
|
43.7
|
%
|
|
42.8
|
%
|
|
42.5
|
%
|
(1)
|
Represents the interest rate as of the grant date on US treasury bonds having the same life as the estimated life of the total return-based restricted stock grants.
|
(2)
|
The dividend yield is calculated utilizing the dividends paid for the previous one-year period and the per share price of Common Stock on the date of grant.
|
(3)
|
Based on the historical volatility of Common Stock over a period relevant to the related total return-based restricted stock grant.
|
13.
|
Employee Benefit Plans - Continued
|
|
Number of Shares
|
|
Weighted Average Grant Date Fair Value
|
|||
Restricted shares outstanding at December 31, 2009
|
202,775
|
|
|
$
|
22.05
|
|
Awarded and issued
(1)
|
77,624
|
|
|
29.05
|
|
|
Vested
(2)
|
(47,257
|
)
|
|
38.50
|
|
|
Forfeited
|
(1,307
|
)
|
|
22.99
|
|
|
Restricted shares outstanding at December 31, 2010
|
231,835
|
|
|
21.03
|
|
|
Awarded and issued
(1)
|
57,386
|
|
|
41.02
|
|
|
Vested
(2)
|
(66,417
|
)
|
|
13.79
|
|
|
Forfeited
|
(99,975
|
)
|
|
13.79
|
|
|
Restricted shares outstanding at December 31, 2011
|
122,829
|
|
|
34.86
|
|
|
Awarded and issued
(1)
|
67,902
|
|
|
38.71
|
|
|
Vested
(2)
|
(32,722
|
)
|
|
29.47
|
|
|
Forfeited
|
(32,721
|
)
|
|
29.47
|
|
|
Restricted shares outstanding at December 31, 2012
|
125,288
|
|
|
$
|
32.87
|
|
(1)
|
The fair value at grant date of total return-based restricted stock issued during the years ended
December 31, 2012
,
2011
and
2010
was
$2.6 million
,
$2.4 million
and
$2.3 million
, respectively. There were no performance-based restricted stock issued subsequent to 2008.
|
(2)
|
The vesting date fair value of total return-based and other types of performance-based restricted stock that vested during the years ended
December 31, 2012
,
2011
and
2010
was
$1.1 million
,
$2.0 million
and
$1.6 million
, respectively. Vested shares include those shares repurchased for withholding taxes.
|
13.
|
Employee Benefit Plans - Continued
|
|
Year Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Beginning deferred compensation liability
|
$
|
3,149
|
|
|
$
|
4,091
|
|
|
$
|
6,898
|
|
Contributions to deferred compensation plans
|
—
|
|
|
545
|
|
|
229
|
|
|||
Mark-to-market adjustment to deferred compensation (in general and administrative expenses)
|
475
|
|
|
(119
|
)
|
|
246
|
|
|||
Distributions from deferred compensation plans
|
(270
|
)
|
|
(1,368
|
)
|
|
(3,282
|
)
|
|||
Total deferred compensation liability
|
$
|
3,354
|
|
|
$
|
3,149
|
|
|
$
|
4,091
|
|
14.
|
Accumulated Other Comprehensive Loss
|
|
December 31,
|
||||||
|
2012
|
|
2011
|
||||
Tax increment financing bond:
|
|
|
|
||||
Beginning balance
|
$
|
(2,309
|
)
|
|
$
|
(2,543
|
)
|
Unrealized gains on tax increment financing bond
|
411
|
|
|
234
|
|
||
Ending balance
|
(1,898
|
)
|
|
(2,309
|
)
|
||
Cash flow hedges:
|
|
|
|
||||
Beginning balance
|
(3,425
|
)
|
|
(1,105
|
)
|
||
Unrealized losses on cash flow hedges
|
(10,358
|
)
|
|
(2,202
|
)
|
||
Amortization of cash flow hedges
|
3,053
|
|
|
(118
|
)
|
||
Ending balance
|
(10,730
|
)
|
|
(3,425
|
)
|
||
Total accumulated other comprehensive loss
|
$
|
(12,628
|
)
|
|
$
|
(5,734
|
)
|
15.
|
Rental and Other Revenues; Rental Property and Other Expenses
|
|
Year Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Contractual rents, net
|
$
|
439,610
|
|
|
$
|
402,275
|
|
|
$
|
379,554
|
|
Straight-line rental income, net
|
18,775
|
|
|
12,173
|
|
|
10,582
|
|
|||
Amortization of lease incentives
|
(1,424
|
)
|
|
(1,342
|
)
|
|
(1,202
|
)
|
|||
Cost recovery income, net
|
41,289
|
|
|
35,561
|
|
|
41,101
|
|
|||
Lease termination fees
|
1,848
|
|
|
2,439
|
|
|
2,938
|
|
|||
Fee income
|
4,965
|
|
|
5,571
|
|
|
5,466
|
|
|||
Other miscellaneous operating revenues
|
11,039
|
|
|
6,767
|
|
|
2,397
|
|
|||
|
$
|
516,102
|
|
|
$
|
463,444
|
|
|
$
|
440,836
|
|
2013
|
$
|
463,913
|
|
2014
|
430,278
|
|
|
2015
|
378,021
|
|
|
2016
|
325,970
|
|
|
2017
|
267,530
|
|
|
Thereafter
|
878,894
|
|
|
|
$
|
2,744,606
|
|
|
Year Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Utilities, insurance and real estate taxes
|
$
|
100,707
|
|
|
$
|
92,093
|
|
|
$
|
85,653
|
|
Maintenance, cleaning and general building
|
69,026
|
|
|
58,910
|
|
|
54,422
|
|
|||
Property management and administrative expenses
|
12,542
|
|
|
11,295
|
|
|
10,832
|
|
|||
Other miscellaneous operating expenses
|
4,910
|
|
|
5,529
|
|
|
4,504
|
|
|||
|
$
|
187,185
|
|
|
$
|
167,827
|
|
|
$
|
155,411
|
|
16.
|
Discontinued Operations
|
|
Year Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Rental and other revenues
|
$
|
10,120
|
|
|
$
|
21,002
|
|
|
$
|
23,917
|
|
Operating expenses:
|
|
|
|
|
|
||||||
Rental property and other expenses
|
3,766
|
|
|
8,865
|
|
|
9,273
|
|
|||
Depreciation and amortization
|
2,009
|
|
|
5,256
|
|
|
5,926
|
|
|||
Total operating expenses
|
5,775
|
|
|
14,121
|
|
|
15,199
|
|
|||
Interest expense
|
283
|
|
|
489
|
|
|
421
|
|
|||
Income from discontinued operations
|
4,062
|
|
|
6,392
|
|
|
8,297
|
|
|||
Net gains/(losses) on disposition of discontinued operations
|
29,455
|
|
|
2,573
|
|
|
(86
|
)
|
|||
Total discontinued operations
|
$
|
33,517
|
|
|
$
|
8,965
|
|
|
$
|
8,211
|
|
Carrying value of assets held for sale and assets sold that qualified for discontinued operations during the year
|
$
|
122,861
|
|
|
$
|
137,237
|
|
|
$
|
165,243
|
|
|
December 31,
|
||||||
|
2012
|
|
2011
|
||||
Assets:
|
|
|
|
||||
Land
|
$
|
—
|
|
|
$
|
14,077
|
|
Buildings and tenant improvements
|
—
|
|
|
135,013
|
|
||
Less - accumulated depreciation
|
—
|
|
|
(32,254
|
)
|
||
Net real estate assets
|
—
|
|
|
116,836
|
|
||
Accrued straight-line rents receivable
|
—
|
|
|
6,520
|
|
||
Deferred leasing costs, net
|
—
|
|
|
811
|
|
||
Prepaid expenses and other assets
|
—
|
|
|
106
|
|
||
Real estate and other assets, net, held for sale
|
$
|
—
|
|
|
$
|
124,273
|
|
Liabilities:
|
|
|
|
||||
Mortgages and notes payable
|
$
|
—
|
|
|
$
|
34,307
|
|
Accrued expenses and other liabilities
|
—
|
|
|
214
|
|
||
Financing obligations
|
—
|
|
|
1,294
|
|
||
Liabilities held for sale
|
$
|
—
|
|
|
$
|
35,815
|
|
17.
|
Earnings Per Unit
|
|
Year Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Earnings per Common Unit - basic:
|
|
|
|
|
|
||||||
Numerator:
|
|
|
|
|
|
||||||
Income from continuing operations
|
$
|
50,778
|
|
|
$
|
39,067
|
|
|
$
|
64,065
|
|
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
|
(786
|
)
|
|
(755
|
)
|
|
(485
|
)
|
|||
Distributions on Preferred Units
|
(2,508
|
)
|
|
(4,553
|
)
|
|
(6,708
|
)
|
|||
Excess of Preferred Unit redemption/repurchase cost over carrying value
|
—
|
|
|
(1,895
|
)
|
|
—
|
|
|||
Income from continuing operations available for common unitholders
|
47,484
|
|
|
31,864
|
|
|
56,872
|
|
|||
Income from discontinued operations available for common unitholders
|
33,517
|
|
|
8,965
|
|
|
8,211
|
|
|||
Net income available for common unitholders
|
$
|
81,001
|
|
|
$
|
40,829
|
|
|
$
|
65,083
|
|
Denominator:
|
|
|
|
|
|
||||||
Denominator for basic earnings per Common Unit – weighted average units
(1) (2)
|
79,147
|
|
|
75,644
|
|
|
74,971
|
|
|||
Earnings per Common Unit - basic:
|
|
|
|
|
|
||||||
Income from continuing operations available for common unitholders
|
$
|
0.60
|
|
|
$
|
0.42
|
|
|
$
|
0.76
|
|
Income from discontinued operations available for common unitholders
|
0.42
|
|
|
0.12
|
|
|
0.11
|
|
|||
Net income available for common unitholders
|
$
|
1.02
|
|
|
$
|
0.54
|
|
|
$
|
0.87
|
|
Earnings per Common Unit - diluted:
|
|
|
|
|
|
||||||
Numerator:
|
|
|
|
|
|
||||||
Income from continuing operations
|
$
|
50,778
|
|
|
$
|
39,067
|
|
|
$
|
64,065
|
|
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
|
(786
|
)
|
|
(755
|
)
|
|
(485
|
)
|
|||
Distributions on Preferred Units
|
(2,508
|
)
|
|
(4,553
|
)
|
|
(6,708
|
)
|
|||
Excess of Preferred Unit redemption/repurchase cost over carrying value
|
—
|
|
|
(1,895
|
)
|
|
—
|
|
|||
Income from continuing operations available for common unitholders
|
47,484
|
|
|
31,864
|
|
|
56,872
|
|
|||
Income from discontinued operations available for common unitholders
|
33,517
|
|
|
8,965
|
|
|
8,211
|
|
|||
Net income available for common unitholders
|
$
|
81,001
|
|
|
$
|
40,829
|
|
|
$
|
65,083
|
|
Denominator:
|
|
|
|
|
|
||||||
Denominator for basic earnings per Common Unit –weighted average units
(1) (2)
|
79,147
|
|
|
75,644
|
|
|
74,971
|
|
|||
Add:
|
|
|
|
|
|
||||||
Stock options using the treasury method
|
122
|
|
|
136
|
|
|
198
|
|
|||
Denominator for diluted earnings per Common Unit – adjusted weighted average units and assumed conversions
(1)
|
79,269
|
|
|
75,780
|
|
|
75,169
|
|
|||
Earnings per Common Unit - diluted:
|
|
|
|
|
|
||||||
Income from continuing operations available for common unitholders
|
$
|
0.60
|
|
|
$
|
0.42
|
|
|
$
|
0.76
|
|
Income from discontinued operations available for common unitholders
|
0.42
|
|
|
0.12
|
|
|
0.11
|
|
|||
Net income available for common unitholders
|
$
|
1.02
|
|
|
$
|
0.54
|
|
|
$
|
0.87
|
|
(1)
|
There were
0.5 million
,
0.4 million
and
0.7 million
options outstanding during the years ended
December 31, 2012
,
2011
and
2010
, respectively, that were not included in the computation of diluted earnings per unit because the impact of including such options would be anti-dilutive
.
|
(2)
|
Includes all unvested restricted stock since dividends on such restricted stock are non-forfeitable.
|
18.
|
Income Taxes
|
19.
|
Segment Information
|
|
Year Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Rental and Other Revenues:
(1)
|
|
|
|
|
|
||||||
Office:
|
|
|
|
|
|
||||||
Atlanta, GA
|
$
|
61,948
|
|
|
$
|
49,521
|
|
|
$
|
44,480
|
|
Greenville, SC
|
13,394
|
|
|
14,076
|
|
|
13,612
|
|
|||
Kansas City, MO
|
15,003
|
|
|
13,795
|
|
|
14,160
|
|
|||
Memphis, TN
|
36,832
|
|
|
36,801
|
|
|
31,479
|
|
|||
Nashville, TN
|
56,542
|
|
|
53,643
|
|
|
52,159
|
|
|||
Orlando, FL
|
11,169
|
|
|
10,233
|
|
|
11,611
|
|
|||
Piedmont Triad, NC
|
21,569
|
|
|
20,645
|
|
|
21,162
|
|
|||
Pittsburgh, PA
|
38,796
|
|
|
10,963
|
|
|
—
|
|
|||
Raleigh, NC
|
81,624
|
|
|
78,640
|
|
|
75,715
|
|
|||
Richmond, VA
|
47,310
|
|
|
47,525
|
|
|
47,175
|
|
|||
Tampa, FL
|
69,381
|
|
|
68,240
|
|
|
71,060
|
|
|||
Total Office Segment
|
453,568
|
|
|
404,082
|
|
|
382,613
|
|
|||
Industrial:
|
|
|
|
|
|
||||||
Atlanta, GA
|
12,805
|
|
|
13,266
|
|
|
12,335
|
|
|||
Piedmont Triad, NC
|
12,518
|
|
|
11,827
|
|
|
12,372
|
|
|||
Total Industrial Segment
|
25,323
|
|
|
25,093
|
|
|
24,707
|
|
|||
Retail:
|
|
|
|
|
|
||||||
Kansas City, MO
|
37,211
|
|
|
34,269
|
|
|
33,516
|
|
|||
Total Retail Segment
|
37,211
|
|
|
34,269
|
|
|
33,516
|
|
|||
Total Rental and Other Revenues
|
$
|
516,102
|
|
|
$
|
463,444
|
|
|
$
|
440,836
|
|
19.
|
Segment Information - Continued
|
|
Year Ended December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Net Operating Income:
(1)
|
|
|
|
|
|
||||||
Office:
|
|
|
|
|
|
||||||
Atlanta, GA
|
$
|
39,335
|
|
|
$
|
31,080
|
|
|
$
|
27,641
|
|
Greenville, SC
|
7,618
|
|
|
8,334
|
|
|
8,152
|
|
|||
Kansas City, MO
|
9,523
|
|
|
8,375
|
|
|
8,835
|
|
|||
Memphis, TN
|
21,864
|
|
|
20,876
|
|
|
18,664
|
|
|||
Nashville, TN
|
38,860
|
|
|
36,589
|
|
|
35,497
|
|
|||
Orlando, FL
|
5,845
|
|
|
5,187
|
|
|
6,264
|
|
|||
Piedmont Triad, NC
|
13,335
|
|
|
13,042
|
|
|
13,903
|
|
|||
Pittsburgh, PA
|
19,548
|
|
|
5,450
|
|
|
—
|
|
|||
Raleigh, NC
|
56,682
|
|
|
54,704
|
|
|
52,413
|
|
|||
Richmond, VA
|
32,431
|
|
|
31,283
|
|
|
32,075
|
|
|||
Tampa, FL
|
43,150
|
|
|
42,375
|
|
|
44,679
|
|
|||
Total Office Segment
|
288,191
|
|
|
257,295
|
|
|
248,123
|
|
|||
Industrial:
|
|
|
|
|
|
||||||
Atlanta, GA
|
9,289
|
|
|
9,781
|
|
|
8,745
|
|
|||
Piedmont Triad, NC
|
9,156
|
|
|
8,653
|
|
|
9,048
|
|
|||
Total Industrial Segment
|
18,445
|
|
|
18,434
|
|
|
17,793
|
|
|||
Retail:
|
|
|
|
|
|
||||||
Kansas City, MO
|
22,545
|
|
|
20,159
|
|
|
19,952
|
|
|||
Total Retail Segment
|
22,545
|
|
|
20,159
|
|
|
19,952
|
|
|||
Residential:
|
|
|
|
|
|
||||||
Raleigh, NC
|
(178
|
)
|
|
(195
|
)
|
|
(362
|
)
|
|||
Total Residential Segment
|
(178
|
)
|
|
(195
|
)
|
|
(362
|
)
|
|||
Corporate and other
(2)
|
(86
|
)
|
|
(76
|
)
|
|
(81
|
)
|
|||
Total Net Operating Income
|
328,917
|
|
|
295,617
|
|
|
285,425
|
|
|||
Reconciliation to income from continuing operations before disposition of property, condominiums and investments in unconsolidated affiliates and equity in earnings of unconsolidated affiliates:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
(156,318
|
)
|
|
(137,890
|
)
|
|
(130,232
|
)
|
|||
Impairments of real estate assets
|
—
|
|
|
(2,429
|
)
|
|
—
|
|
|||
General and administrative expenses
|
(37,626
|
)
|
|
(35,753
|
)
|
|
(33,308
|
)
|
|||
Interest expense
|
(96,114
|
)
|
|
(95,510
|
)
|
|
(92,951
|
)
|
|||
Other income
|
6,380
|
|
|
7,363
|
|
|
5,657
|
|
|||
Income from continuing operations before disposition of property, condominiums and investments in unconsolidated affiliates and equity in earnings of unconsolidated affiliates
|
$
|
45,239
|
|
|
$
|
31,398
|
|
|
$
|
34,591
|
|
(1)
|
Net of discontinued operations.
|
(2)
|
Negative NOI with no corresponding revenues represents expensed real estate taxes and other carrying costs associated with land held for development that is currently zoned for the respective product type.
|
19.
|
Segment Information - Continued
|
|
December 31,
|
||||||
|
2012
|
|
2011
|
||||
Total Assets:
|
|
|
|
||||
Office:
|
|
|
|
||||
Atlanta, GA
|
$
|
495,175
|
|
|
$
|
359,225
|
|
Greenville, SC
|
69,138
|
|
|
69,669
|
|
||
Kansas City, MO
|
84,538
|
|
|
86,028
|
|
||
Memphis, TN
|
225,541
|
|
|
265,259
|
|
||
Nashville, TN
|
314,705
|
|
|
325,272
|
|
||
Orlando, FL
|
51,373
|
|
|
46,547
|
|
||
Piedmont Triad, NC
|
144,404
|
|
|
115,096
|
|
||
Pittsburgh, PA
|
330,975
|
|
|
227,965
|
|
||
Raleigh, NC
|
479,995
|
|
|
468,494
|
|
||
Richmond, VA
|
246,276
|
|
|
254,364
|
|
||
Tampa, FL
|
386,676
|
|
|
394,569
|
|
||
Total Office Segment
|
2,828,796
|
|
|
2,612,488
|
|
||
Industrial:
|
|
|
|
||||
Atlanta, GA
|
115,330
|
|
|
133,640
|
|
||
Piedmont Triad, NC
|
76,013
|
|
|
78,081
|
|
||
Total Industrial Segment
|
191,343
|
|
|
211,721
|
|
||
Retail:
|
|
|
|
||||
Kansas City, MO
|
166,030
|
|
|
170,717
|
|
||
Total Retail Segment
|
166,030
|
|
|
170,717
|
|
||
Residential:
|
|
|
|
||||
Kansas City, MO
|
—
|
|
|
5,707
|
|
||
Raleigh, NC
|
8
|
|
|
4,768
|
|
||
Total Residential Segment
|
8
|
|
|
10,475
|
|
||
Corporate and other
|
163,348
|
|
|
174,483
|
|
||
Total Assets
|
$
|
3,349,525
|
|
|
$
|
3,179,884
|
|
20.
|
Quarterly Financial Data (Unaudited)
|
|
Year Ended December 31, 2012
|
||||||||||||||||||
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Total
|
||||||||||
Rental and other revenues
(1)
|
$
|
125,583
|
|
|
$
|
128,323
|
|
|
$
|
128,214
|
|
|
$
|
133,982
|
|
|
$
|
516,102
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
(1)
|
11,421
|
|
|
11,380
|
|
|
12,317
|
|
|
15,660
|
|
|
50,778
|
|
|||||
Income from discontinued operations
(1)
|
6,913
|
|
|
3,121
|
|
|
23,483
|
|
|
—
|
|
|
33,517
|
|
|||||
Net income
|
18,334
|
|
|
14,501
|
|
|
35,800
|
|
|
15,660
|
|
|
84,295
|
|
|||||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
(184
|
)
|
|
(223
|
)
|
|
(159
|
)
|
|
(220
|
)
|
|
(786
|
)
|
|||||
Distributions on Preferred Units
|
(627
|
)
|
|
(627
|
)
|
|
(627
|
)
|
|
(627
|
)
|
|
(2,508
|
)
|
|||||
Net income available for common unitholders
|
$
|
17,523
|
|
|
$
|
13,651
|
|
|
$
|
35,014
|
|
|
$
|
14,813
|
|
|
$
|
81,001
|
|
Earnings per Common Unit-basic:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations available for common unitholders
|
0.14
|
|
|
0.14
|
|
|
0.15
|
|
|
0.18
|
|
|
0.60
|
|
|||||
Income from discontinued operations available for common unitholders
|
0.09
|
|
|
0.04
|
|
|
0.29
|
|
|
—
|
|
|
0.42
|
|
|||||
Net income available for common unitholders
|
0.23
|
|
|
0.18
|
|
|
0.44
|
|
|
0.18
|
|
|
1.02
|
|
|||||
Earnings per Common Unit-diluted:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations available for common unitholders
|
0.14
|
|
|
0.13
|
|
|
0.15
|
|
|
0.18
|
|
|
0.60
|
|
|||||
Income from discontinued operations available for common unitholders
|
0.09
|
|
|
0.04
|
|
|
0.29
|
|
|
—
|
|
|
0.42
|
|
|||||
Net income available for common unitholders
|
0.23
|
|
|
0.17
|
|
|
0.44
|
|
|
0.18
|
|
|
1.02
|
|
20.
|
Quarterly Financial Data (Unaudited)
|
|
Year Ended December 31, 2011
|
||||||||||||||||||
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Total
|
||||||||||
Rental and other revenues
(1)
|
$
|
110,047
|
|
|
$
|
112,185
|
|
|
$
|
117,265
|
|
|
$
|
123,947
|
|
|
$
|
463,444
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
(1)
|
10,679
|
|
|
12,576
|
|
|
3,957
|
|
|
11,855
|
|
|
39,067
|
|
|||||
Income from discontinued operations
(1)
|
1,772
|
|
|
1,862
|
|
|
4,287
|
|
|
1,044
|
|
|
8,965
|
|
|||||
Net income
|
12,451
|
|
|
14,438
|
|
|
8,244
|
|
|
12,899
|
|
|
48,032
|
|
|||||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
(123
|
)
|
|
(182
|
)
|
|
(249
|
)
|
|
(201
|
)
|
|
(755
|
)
|
|||||
Distributions on Preferred Units
|
(1,677
|
)
|
|
(1,622
|
)
|
|
(627
|
)
|
|
(627
|
)
|
|
(4,553
|
)
|
|||||
Excess of Preferred Unit redemption/repurchase cost over carrying value
|
—
|
|
|
(1,895
|
)
|
|
—
|
|
|
—
|
|
|
(1,895
|
)
|
|||||
Net income available for common unitholders
|
$
|
10,651
|
|
|
$
|
10,739
|
|
|
$
|
7,368
|
|
|
$
|
12,071
|
|
|
$
|
40,829
|
|
Earnings per Common Unit-basic:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations available for common unitholders
|
0.12
|
|
|
0.12
|
|
|
0.04
|
|
|
0.15
|
|
|
0.42
|
|
|||||
Income from discontinued operations available for common unitholders
|
0.02
|
|
|
0.02
|
|
|
0.06
|
|
|
0.01
|
|
|
0.12
|
|
|||||
Net income available for common unitholders
|
0.14
|
|
|
0.14
|
|
|
0.10
|
|
|
0.16
|
|
|
0.54
|
|
|||||
Earnings per Common Unit-diluted:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations available for common unitholders
|
0.12
|
|
|
0.12
|
|
|
0.04
|
|
|
0.15
|
|
|
0.42
|
|
|||||
Income from discontinued operations available for common unitholders
|
0.02
|
|
|
0.02
|
|
|
0.06
|
|
|
0.01
|
|
|
0.12
|
|
|||||
Net income available for common unitholders
|
0.14
|
|
|
0.14
|
|
|
0.10
|
|
|
0.16
|
|
|
0.54
|
|
20.
|
Quarterly Financial Data (Unaudited) – Continued
|
(1)
|
The amounts presented may not equal to the amounts previously reported in the most recent Form 10-Qs or prior 10-K for each period as a result of discontinued operations. Below is the reconciliation to the amounts previously reported:
|
|
Quarter Ended
|
||||||||||
|
March 31,
|
|
June 30,
|
|
September 30,
|
||||||
|
2012
|
|
2012
|
|
2012
|
||||||
Rental and other revenues, as reported
|
$
|
129,943
|
|
|
$
|
130,735
|
|
|
$
|
128,214
|
|
Discontinued operations
|
(4,360
|
)
|
|
(2,412
|
)
|
|
—
|
|
|||
Rental and other revenues, as adjusted
|
$
|
125,583
|
|
|
$
|
128,323
|
|
|
$
|
128,214
|
|
Income from continuing operations, as reported
|
$
|
13,117
|
|
|
$
|
12,360
|
|
|
$
|
12,317
|
|
Discontinued operations
|
(1,696
|
)
|
|
(980
|
)
|
|
—
|
|
|||
Income from continuing operations, as adjusted
|
$
|
11,421
|
|
|
$
|
11,380
|
|
|
$
|
12,317
|
|
Income from discontinued operations, as reported
|
$
|
5,217
|
|
|
$
|
2,141
|
|
|
$
|
23,483
|
|
Additional discontinued operations from properties sold subsequent to the respective reporting period
|
1,696
|
|
|
980
|
|
|
—
|
|
|||
Income from discontinued operations, as adjusted
|
$
|
6,913
|
|
|
$
|
3,121
|
|
|
$
|
23,483
|
|
|
Quarter Ended
|
||||||||||||||
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
||||||||
|
2011
|
|
2011
|
|
2011
|
|
2011
|
||||||||
Rental and other revenues, as reported
|
$
|
114,351
|
|
|
$
|
114,651
|
|
|
$
|
117,265
|
|
|
$
|
128,730
|
|
Discontinued operations
|
(4,304
|
)
|
|
(2,466
|
)
|
|
—
|
|
|
(4,783
|
)
|
||||
Rental and other revenues, as adjusted
|
$
|
110,047
|
|
|
$
|
112,185
|
|
|
$
|
117,265
|
|
|
$
|
123,947
|
|
Income from continuing operations, as reported
|
$
|
11,911
|
|
|
$
|
13,699
|
|
|
$
|
3,957
|
|
|
$
|
12,899
|
|
Discontinued operations
|
(1,232
|
)
|
|
(1,123
|
)
|
|
—
|
|
|
(1,044
|
)
|
||||
Income from continuing operations, as adjusted
|
$
|
10,679
|
|
|
$
|
12,576
|
|
|
$
|
3,957
|
|
|
$
|
11,855
|
|
Income from discontinued operations, as reported
|
$
|
540
|
|
|
$
|
739
|
|
|
$
|
4,287
|
|
|
$
|
—
|
|
Additional discontinued operations from properties sold subsequent to the respective reporting period
|
1,232
|
|
|
1,123
|
|
|
—
|
|
|
1,044
|
|
||||
Income from discontinued operations, as adjusted
|
$
|
1,772
|
|
|
$
|
1,862
|
|
|
$
|
4,287
|
|
|
$
|
1,044
|
|
21.
|
Subsequent Events
|
|
Balance at December 31, 2011
|
|
Additions
|
|
Deductions
|
|
Balance at December 31, 2012
|
||||||||
Allowance for Doubtful Accounts - Straight-Line Rent
|
$
|
1,294
|
|
|
$
|
1,382
|
|
|
$
|
(1,747
|
)
|
|
$
|
929
|
|
Allowance for Doubtful Accounts - Accounts Receivable
|
3,548
|
|
|
767
|
|
|
(1,467
|
)
|
|
2,848
|
|
||||
Allowance for Doubtful Accounts - Notes Receivable
|
61
|
|
|
186
|
|
|
(65
|
)
|
|
182
|
|
||||
Totals
|
$
|
4,903
|
|
|
$
|
2,335
|
|
|
$
|
(3,279
|
)
|
|
$
|
3,959
|
|
|
Balance at December 31, 2010
|
|
Additions
|
|
Deductions
|
|
Balance at December 31, 2011
|
||||||||
Allowance for Doubtful Accounts - Straight-Line Rent
|
$
|
2,209
|
|
|
$
|
710
|
|
|
$
|
(1,625
|
)
|
|
$
|
1,294
|
|
Allowance for Doubtful Accounts - Accounts Receivable
|
3,595
|
|
|
1,616
|
|
|
(1,663
|
)
|
|
3,548
|
|
||||
Allowance for Doubtful Accounts - Notes Receivable
|
868
|
|
|
196
|
|
|
(1,003
|
)
|
|
61
|
|
||||
Totals
|
$
|
6,672
|
|
|
$
|
2,522
|
|
|
$
|
(4,291
|
)
|
|
$
|
4,903
|
|
|
Balance at December 31, 2009
|
|
Additions
|
|
Deductions
|
|
Balance at December 31, 2010
|
||||||||
Allowance for Doubtful Accounts - Straight-Line Rent
|
$
|
2,443
|
|
|
$
|
635
|
|
|
$
|
(869
|
)
|
|
$
|
2,209
|
|
Allowance for Doubtful Accounts - Accounts Receivable
|
2,810
|
|
|
2,961
|
|
|
(2,176
|
)
|
|
3,595
|
|
||||
Allowance for Doubtful Accounts - Notes Receivable
|
698
|
|
|
413
|
|
|
(243
|
)
|
|
868
|
|
||||
Totals
|
$
|
5,951
|
|
|
$
|
4,009
|
|
|
$
|
(3,288
|
)
|
|
$
|
6,672
|
|
|
December 31,
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Real estate assets:
|
|
|
|
|
|
||||||
Beginning balance
|
$
|
3,594,328
|
|
|
$
|
3,308,306
|
|
|
$
|
3,341,257
|
|
Additions:
|
|
|
|
|
|
||||||
Acquisitions, development and improvements
|
214,959
|
|
|
329,675
|
|
|
104,199
|
|
|||
Cost of real estate sold and retired
|
(12,823
|
)
|
|
(43,653
|
)
|
|
(137,150
|
)
|
|||
Ending balance (a)
|
$
|
3,796,464
|
|
|
$
|
3,594,328
|
|
|
$
|
3,308,306
|
|
Accumulated depreciation:
|
|
|
|
|
|
||||||
Beginning balance
|
$
|
901,300
|
|
|
$
|
832,918
|
|
|
$
|
782,557
|
|
Depreciation expense
|
128,971
|
|
|
120,812
|
|
|
117,639
|
|
|||
Real estate sold and retired
|
(82,704
|
)
|
|
(52,430
|
)
|
|
(67,278
|
)
|
|||
Ending balance (b)
|
$
|
947,567
|
|
|
$
|
901,300
|
|
|
$
|
832,918
|
|
(a)
|
Reconciliation of total real estate assets to balance sheet caption:
|
|
2012
|
|
2011
|
|
2010
|
||||||
Total per Schedule III
|
$
|
3,796,464
|
|
|
$
|
3,594,328
|
|
|
$
|
3,308,306
|
|
Development in progress exclusive of land included in Schedule III
|
21,198
|
|
|
—
|
|
|
4,524
|
|
|||
Real estate assets, net, held for sale
|
—
|
|
|
(124,273
|
)
|
|
(142,783
|
)
|
|||
Total real estate assets
|
$
|
3,817,662
|
|
|
$
|
3,470,055
|
|
|
$
|
3,170,047
|
|
(b)
|
Reconciliation of total accumulated depreciation to balance sheet caption:
|
|
2012
|
|
2011
|
|
2010
|
||||||
Total per Schedule III
|
$
|
947,567
|
|
|
$
|
901,300
|
|
|
$
|
832,918
|
|
Real estate assets, net, held for sale
|
—
|
|
|
(32,254
|
)
|
|
(34,501
|
)
|
|||
Total accumulated depreciation
|
$
|
947,567
|
|
|
$
|
869,046
|
|
|
$
|
798,417
|
|
|
|||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
Initial Costs
|
|
Costs Capitalized
Subsequent to
Acquisition
|
|
Gross Value at Close of Period
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Description
|
|
Segment
Type
|
|
City
|
|
2012
Encumbrance
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Total
Assets
|
|
Accumulated
Depreciation
|
|
Date of
Construction
|
|
Life on
Which
Depreciation
is
Calculated
|
|||||||||||||||||
Atlanta, GA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
1700 Century Circle
|
|
Office
|
|
Atlanta
|
|
|
|
$
|
—
|
|
|
$
|
2,482
|
|
|
$
|
2
|
|
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
2,483
|
|
|
$
|
2,485
|
|
|
$
|
591
|
|
|
1983
|
|
5-40 yrs.
|
|
1800 Century Boulevard
|
|
Office
|
|
Atlanta
|
|
|
|
1,444
|
|
|
29,081
|
|
|
—
|
|
|
13,179
|
|
|
1,444
|
|
|
42,260
|
|
|
43,704
|
|
|
17,806
|
|
|
1975
|
|
5-40 yrs.
|
|||||||||
1825 Century Parkway
|
|
Office
|
|
Atlanta
|
|
|
|
864
|
|
|
—
|
|
|
303
|
|
|
14,392
|
|
|
1,167
|
|
|
14,392
|
|
|
15,559
|
|
|
3,686
|
|
|
2002
|
|
5-40 yrs.
|
|||||||||
1875 Century Boulevard
|
|
Office
|
|
Atlanta
|
|
|
|
—
|
|
|
8,924
|
|
|
—
|
|
|
2,280
|
|
|
—
|
|
|
11,204
|
|
|
11,204
|
|
|
5,022
|
|
|
1976
|
|
5-40 yrs.
|
|||||||||
1900 Century Boulevard
|
|
Office
|
|
Atlanta
|
|
|
|
—
|
|
|
4,744
|
|
|
—
|
|
|
702
|
|
|
—
|
|
|
5,446
|
|
|
5,446
|
|
|
2,296
|
|
|
1971
|
|
5-40 yrs.
|
|||||||||
2200 Century Parkway
|
|
Office
|
|
Atlanta
|
|
|
|
—
|
|
|
14,432
|
|
|
—
|
|
|
3,672
|
|
|
—
|
|
|
18,104
|
|
|
18,104
|
|
|
7,320
|
|
|
1971
|
|
5-40 yrs.
|
|||||||||
2400 Century Parkway
|
|
Office
|
|
Atlanta
|
|
|
|
—
|
|
|
—
|
|
|
406
|
|
|
12,646
|
|
|
406
|
|
|
12,646
|
|
|
13,052
|
|
|
4,640
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
2500 Century Parkway
|
|
Office
|
|
Atlanta
|
|
|
|
—
|
|
|
—
|
|
|
328
|
|
|
14,329
|
|
|
328
|
|
|
14,329
|
|
|
14,657
|
|
|
3,907
|
|
|
2005
|
|
5-40 yrs.
|
|||||||||
2500/2635 Parking Garage
|
|
Office
|
|
Atlanta
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,319
|
|
|
—
|
|
|
6,319
|
|
|
6,319
|
|
|
1,108
|
|
|
2005
|
|
5-40 yrs.
|
|||||||||
2600 Century Parkway
|
|
Office
|
|
Atlanta
|
|
|
|
—
|
|
|
10,679
|
|
|
—
|
|
|
3,971
|
|
|
—
|
|
|
14,650
|
|
|
14,650
|
|
|
6,205
|
|
|
1973
|
|
5-40 yrs.
|
|||||||||
2635 Century Parkway
|
|
Office
|
|
Atlanta
|
|
|
|
—
|
|
|
21,643
|
|
|
—
|
|
|
4,513
|
|
|
—
|
|
|
26,156
|
|
|
26,156
|
|
|
10,219
|
|
|
1980
|
|
5-40 yrs.
|
|||||||||
2800 Century Parkway
|
|
Office
|
|
Atlanta
|
|
|
|
—
|
|
|
20,449
|
|
|
—
|
|
|
6,728
|
|
|
—
|
|
|
27,177
|
|
|
27,177
|
|
|
8,810
|
|
|
1983
|
|
5-40 yrs.
|
|||||||||
50 Glenlake
|
|
Office
|
|
Atlanta
|
|
|
|
2,500
|
|
|
20,006
|
|
|
—
|
|
|
2,944
|
|
|
2,500
|
|
|
22,950
|
|
|
25,450
|
|
|
8,873
|
|
|
1997
|
|
5-40 yrs.
|
|||||||||
6348 Northeast Expressway
|
|
Industrial
|
|
Atlanta
|
|
|
|
275
|
|
|
1,655
|
|
|
—
|
|
|
199
|
|
|
275
|
|
|
1,854
|
|
|
2,129
|
|
|
789
|
|
|
1978
|
|
5-40 yrs.
|
|||||||||
6438 Northeast Expressway
|
|
Industrial
|
|
Atlanta
|
|
|
|
179
|
|
|
2,216
|
|
|
—
|
|
|
612
|
|
|
179
|
|
|
2,828
|
|
|
3,007
|
|
|
1,041
|
|
|
1981
|
|
5-40 yrs.
|
|||||||||
Bluegrass Lakes I
|
|
Industrial
|
|
Atlanta
|
|
|
|
816
|
|
|
—
|
|
|
336
|
|
|
2,972
|
|
|
1,152
|
|
|
2,972
|
|
|
4,124
|
|
|
1,159
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Bluegrass Place I
|
|
Industrial
|
|
Atlanta
|
|
|
|
491
|
|
|
2,061
|
|
|
—
|
|
|
125
|
|
|
491
|
|
|
2,186
|
|
|
2,677
|
|
|
854
|
|
|
1995
|
|
5-40 yrs.
|
|||||||||
Bluegrass Place II
|
|
Industrial
|
|
Atlanta
|
|
|
|
412
|
|
|
2,583
|
|
|
—
|
|
|
103
|
|
|
412
|
|
|
2,686
|
|
|
3,098
|
|
|
1,026
|
|
|
1996
|
|
5-40 yrs.
|
|||||||||
Bluegrass Valley I
|
|
Industrial
|
|
Atlanta
|
|
|
|
1,500
|
|
|
—
|
|
|
374
|
|
|
3,117
|
|
|
1,874
|
|
|
3,117
|
|
|
4,991
|
|
|
927
|
|
|
2000
|
|
5-40 yrs.
|
|||||||||
Bluegrass Valley - Land
|
|
Industrial
|
|
Atlanta
|
|
|
|
19,711
|
|
|
—
|
|
|
(14,810
|
)
|
|
—
|
|
|
4,901
|
|
|
—
|
|
|
4,901
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Century Plaza I
|
|
Office
|
|
Atlanta
|
|
|
|
1,290
|
|
|
8,567
|
|
|
—
|
|
|
3,240
|
|
|
1,290
|
|
|
11,807
|
|
|
13,097
|
|
|
4,224
|
|
|
1981
|
|
5-40 yrs.
|
|||||||||
Century Plaza II
|
|
Office
|
|
Atlanta
|
|
|
|
1,380
|
|
|
7,733
|
|
|
—
|
|
|
2,222
|
|
|
1,380
|
|
|
9,955
|
|
|
11,335
|
|
|
3,245
|
|
|
1984
|
|
5-40 yrs.
|
|||||||||
Chastain Place I
|
|
Industrial
|
|
Atlanta
|
|
|
|
451
|
|
|
—
|
|
|
341
|
|
|
3,767
|
|
|
792
|
|
|
3,767
|
|
|
4,559
|
|
|
1,153
|
|
|
1997
|
|
5-40 yrs.
|
|||||||||
Chastain Place II
|
|
Industrial
|
|
Atlanta
|
|
|
|
599
|
|
|
—
|
|
|
194
|
|
|
1,505
|
|
|
793
|
|
|
1,505
|
|
|
2,298
|
|
|
515
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
Chastain Place III
|
|
Industrial
|
|
Atlanta
|
|
|
|
539
|
|
|
—
|
|
|
173
|
|
|
1,318
|
|
|
712
|
|
|
1,318
|
|
|
2,030
|
|
|
482
|
|
|
1999
|
|
5-40 yrs.
|
HIGHWOODS PROPERTIES, INC.
HIGHWOODS REALTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)
|
|||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
Initial Costs
|
|
Costs Capitalized
Subsequent to
Acquisition
|
|
Gross Value at Close of Period
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Description
|
|
Segment
Type
|
|
City
|
|
2012
Encumbrance
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Total
Assets
|
|
Accumulated
Depreciation
|
|
Date of
Construction
|
|
Life on
Which
Depreciation
is
Calculated
|
|||||||||||||||||
Corporate Lakes
|
|
Industrial
|
|
Atlanta
|
|
|
|
1,265
|
|
|
7,243
|
|
|
—
|
|
|
2,124
|
|
|
1,265
|
|
|
9,367
|
|
|
10,632
|
|
|
3,540
|
|
|
1988
|
|
5-40 yrs.
|
|||||||||
General Services Administration
|
|
Office
|
|
Atlanta
|
|
|
|
3,100
|
|
|
—
|
|
|
(3,100
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2007
|
|
5-40 yrs.
|
|||||||||
Federal Aviation Administration
|
|
Office
|
|
Atlanta
|
|
|
|
1,196
|
|
|
—
|
|
|
1,416
|
|
|
15,143
|
|
|
2,612
|
|
|
15,143
|
|
|
17,755
|
|
|
2,232
|
|
|
2009
|
|
5-40 yrs.
|
|||||||||
Gwinnett Distribution Center
|
|
Industrial
|
|
Atlanta
|
|
|
|
1,119
|
|
|
5,960
|
|
|
—
|
|
|
3,875
|
|
|
1,119
|
|
|
9,835
|
|
|
10,954
|
|
|
3,322
|
|
|
1991
|
|
5-40 yrs.
|
|||||||||
Henry County - Land
|
|
Industrial
|
|
Atlanta
|
|
|
|
3,010
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
3,023
|
|
|
—
|
|
|
3,023
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Highwoods Ctr I at Tradeport
|
|
Office
|
|
Atlanta
|
|
|
|
307
|
|
|
—
|
|
|
139
|
|
|
2,049
|
|
|
446
|
|
|
2,049
|
|
|
2,495
|
|
|
697
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Highwoods Ctr II at Tradeport
|
|
Office
|
|
Atlanta
|
|
|
|
641
|
|
|
—
|
|
|
181
|
|
|
9,024
|
|
|
822
|
|
|
9,024
|
|
|
9,846
|
|
|
379
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Highwoods Ctr III at Tradeport
|
|
Office
|
|
Atlanta
|
|
|
|
409
|
|
|
—
|
|
|
130
|
|
|
3,900
|
|
|
539
|
|
|
3,900
|
|
|
4,439
|
|
|
623
|
|
|
2001
|
|
5-40 yrs.
|
|||||||||
Highwoods River Point IV
|
|
Industrial
|
|
Atlanta
|
|
|
|
1,037
|
|
|
—
|
|
|
858
|
|
|
8,820
|
|
|
1,895
|
|
|
8,820
|
|
|
10,715
|
|
|
1,275
|
|
|
2009
|
|
5-40 yrs.
|
|||||||||
NARA
|
|
Industrial
|
|
Atlanta
|
|
|
|
1,484
|
|
|
—
|
|
|
(1,484
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2004
|
|
5-40 yrs.
|
|||||||||
Newpoint Place I
|
|
Industrial
|
|
Atlanta
|
|
|
|
819
|
|
|
—
|
|
|
391
|
|
|
2,871
|
|
|
1,210
|
|
|
2,871
|
|
|
4,081
|
|
|
991
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
Newpoint Place II
|
|
Industrial
|
|
Atlanta
|
|
|
|
1,499
|
|
|
—
|
|
|
434
|
|
|
3,085
|
|
|
1,933
|
|
|
3,085
|
|
|
5,018
|
|
|
917
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Newpoint Place III
|
|
Industrial
|
|
Atlanta
|
|
|
|
668
|
|
|
—
|
|
|
276
|
|
|
1,879
|
|
|
944
|
|
|
1,879
|
|
|
2,823
|
|
|
686
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
Newpoint Place IV
|
|
Industrial
|
|
Atlanta
|
|
|
|
989
|
|
|
—
|
|
|
455
|
|
|
4,048
|
|
|
1,444
|
|
|
4,048
|
|
|
5,492
|
|
|
973
|
|
|
2001
|
|
5-40 yrs.
|
|||||||||
Newpoint Place V
|
|
Industrial
|
|
Atlanta
|
|
|
|
2,150
|
|
|
—
|
|
|
920
|
|
|
8,949
|
|
|
3,070
|
|
|
8,949
|
|
|
12,019
|
|
|
2,134
|
|
|
2007
|
|
5-40 yrs.
|
|||||||||
Norcross, I & II
|
|
Industrial
|
|
Atlanta
|
|
|
|
323
|
|
|
2,000
|
|
|
—
|
|
|
602
|
|
|
323
|
|
|
2,602
|
|
|
2,925
|
|
|
1,099
|
|
|
1970
|
|
5-40 yrs.
|
|||||||||
5405 Windward Parkway
|
|
Office
|
|
Atlanta
|
|
|
|
3,342
|
|
|
32,111
|
|
|
—
|
|
|
411
|
|
|
3,342
|
|
|
32,522
|
|
|
35,864
|
|
|
12,155
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
Riverpoint - Land
|
|
Industrial
|
|
Atlanta
|
|
|
|
7,250
|
|
|
—
|
|
|
4,525
|
|
|
2,712
|
|
|
11,775
|
|
|
2,712
|
|
|
14,487
|
|
|
211
|
|
|
N/A
|
|
N/A
|
|||||||||
Riverwood 100
|
|
Office
|
|
Atlanta
|
|
(1)
|
|
5,785
|
|
|
64,913
|
|
|
—
|
|
|
4,629
|
|
|
5,785
|
|
|
69,542
|
|
|
75,327
|
|
|
3,175
|
|
|
1989
|
|
5-40 yrs.
|
|||||||||
South Park Residential - Land
|
|
Other
|
|
Atlanta
|
|
|
|
50
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
57
|
|
|
—
|
|
|
57
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
South Park Site - Land
|
|
Industrial
|
|
Atlanta
|
|
|
|
1,204
|
|
|
—
|
|
|
754
|
|
|
—
|
|
|
1,958
|
|
|
—
|
|
|
1,958
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Southside Distribution Center
|
|
Industrial
|
|
Atlanta
|
|
|
|
804
|
|
|
4,553
|
|
|
—
|
|
|
2,207
|
|
|
804
|
|
|
6,760
|
|
|
7,564
|
|
|
2,664
|
|
|
1988
|
|
5-40 yrs.
|
|||||||||
Tradeport Place I
|
|
Industrial
|
|
Atlanta
|
|
|
|
557
|
|
|
—
|
|
|
261
|
|
|
2,218
|
|
|
818
|
|
|
2,218
|
|
|
3,036
|
|
|
750
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Tradeport Place II
|
|
Industrial
|
|
Atlanta
|
|
|
|
557
|
|
|
—
|
|
|
261
|
|
|
2,305
|
|
|
818
|
|
|
2,305
|
|
|
3,123
|
|
|
809
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Tradeport Place III
|
|
Industrial
|
|
Atlanta
|
|
|
|
673
|
|
|
—
|
|
|
370
|
|
|
2,684
|
|
|
1,043
|
|
|
2,684
|
|
|
3,727
|
|
|
907
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Tradeport Place IV
|
|
Industrial
|
|
Atlanta
|
|
|
|
667
|
|
|
—
|
|
|
365
|
|
|
3,683
|
|
|
1,032
|
|
|
3,683
|
|
|
4,715
|
|
|
1,105
|
|
|
2001
|
|
5-40 yrs.
|
|||||||||
Tradeport - Land
|
|
Industrial
|
|
Atlanta
|
|
|
|
5,243
|
|
|
—
|
|
|
(387
|
)
|
|
—
|
|
|
4,856
|
|
|
—
|
|
|
4,856
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Tradeport Place V
|
|
Industrial
|
|
Atlanta
|
|
|
|
463
|
|
|
—
|
|
|
180
|
|
|
2,322
|
|
|
643
|
|
|
2,322
|
|
|
2,965
|
|
|
565
|
|
|
2002
|
|
5-40 yrs.
|
|||||||||
Two Point Royal
|
|
Office
|
|
Atlanta
|
|
|
|
1,793
|
|
|
14,964
|
|
|
—
|
|
|
2,486
|
|
|
1,793
|
|
|
17,450
|
|
|
19,243
|
|
|
6,737
|
|
|
1997
|
|
5-40 yrs.
|
HIGHWOODS PROPERTIES, INC.
HIGHWOODS REALTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)
|
|||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
Initial Costs
|
|
Costs Capitalized
Subsequent to
Acquisition
|
|
Gross Value at Close of Period
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Description
|
|
Segment
Type
|
|
City
|
|
2012
Encumbrance
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Total
Assets
|
|
Accumulated
Depreciation
|
|
Date of
Construction
|
|
Life on
Which
Depreciation
is
Calculated
|
|||||||||||||||||
Two Alliance Center
|
|
Office
|
|
Atlanta
|
|
|
|
9,579
|
|
|
125,549
|
|
|
—
|
|
|
2,020
|
|
|
9,579
|
|
|
127,569
|
|
|
137,148
|
|
|
1,587
|
|
|
2009
|
|
5-40 yrs.
|
|||||||||
Greenville, SC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Brookfield Plaza
|
|
Office
|
|
Greenville
|
|
|
|
1,500
|
|
|
8,514
|
|
|
—
|
|
|
2,691
|
|
|
1,500
|
|
|
11,205
|
|
|
12,705
|
|
|
4,922
|
|
|
1987
|
|
5-40 yrs.
|
|||||||||
Jacobs Building
|
|
Office
|
|
Greenville
|
|
|
|
3,050
|
|
|
17,280
|
|
|
(23
|
)
|
|
3,880
|
|
|
3,027
|
|
|
21,160
|
|
|
24,187
|
|
|
9,155
|
|
|
1990
|
|
5-40 yrs.
|
|||||||||
Brookfield Metlife
|
|
Office
|
|
Greenville
|
|
|
|
1,039
|
|
|
—
|
|
|
352
|
|
|
8,033
|
|
|
1,391
|
|
|
8,033
|
|
|
9,424
|
|
|
2,226
|
|
|
2001
|
|
5-40 yrs.
|
|||||||||
Patewood I
|
|
Office
|
|
Greenville
|
|
|
|
942
|
|
|
5,117
|
|
|
—
|
|
|
992
|
|
|
942
|
|
|
6,109
|
|
|
7,051
|
|
|
2,315
|
|
|
1985
|
|
5-40 yrs.
|
|||||||||
Patewood II
|
|
Office
|
|
Greenville
|
|
|
|
942
|
|
|
5,176
|
|
|
—
|
|
|
651
|
|
|
942
|
|
|
5,827
|
|
|
6,769
|
|
|
2,259
|
|
|
1987
|
|
5-40 yrs.
|
|||||||||
Patewood III
|
|
Office
|
|
Greenville
|
|
|
|
842
|
|
|
4,776
|
|
|
—
|
|
|
489
|
|
|
842
|
|
|
5,265
|
|
|
6,107
|
|
|
2,147
|
|
|
1989
|
|
5-40 yrs.
|
|||||||||
Patewood IV
|
|
Office
|
|
Greenville
|
|
|
|
1,219
|
|
|
6,918
|
|
|
—
|
|
|
618
|
|
|
1,219
|
|
|
7,536
|
|
|
8,755
|
|
|
3,095
|
|
|
1989
|
|
5-40 yrs.
|
|||||||||
Patewood V
|
|
Office
|
|
Greenville
|
|
|
|
1,690
|
|
|
9,589
|
|
|
—
|
|
|
1,359
|
|
|
1,690
|
|
|
10,948
|
|
|
12,638
|
|
|
4,448
|
|
|
1990
|
|
5-40 yrs.
|
|||||||||
Patewood VI
|
|
Office
|
|
Greenville
|
|
|
|
2,360
|
|
|
—
|
|
|
321
|
|
|
7,661
|
|
|
2,681
|
|
|
7,661
|
|
|
10,342
|
|
|
2,693
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Kansas City, MO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Country Club Plaza
|
|
Retail
|
|
Kansas City
|
|
|
|
14,286
|
|
|
146,879
|
|
|
(198
|
)
|
|
126,551
|
|
|
14,088
|
|
|
273,430
|
|
|
287,518
|
|
|
98,798
|
|
|
1920-2002
|
|
5-40 yrs.
|
|||||||||
Land - Hotel Land - Valencia
|
|
Office
|
|
Kansas City
|
|
|
|
978
|
|
|
—
|
|
|
111
|
|
|
—
|
|
|
1,089
|
|
|
—
|
|
|
1,089
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Neptune Apartments
|
|
Office
|
|
Kansas City
|
|
|
|
1,098
|
|
|
6,282
|
|
|
(1,098
|
)
|
|
(6,282
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1988
|
|
5-40 yrs.
|
|||||||||
One Ward Parkway
|
|
Office
|
|
Kansas City
|
|
|
|
681
|
|
|
3,937
|
|
|
(681
|
)
|
|
(3,937
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1980
|
|
5-40 yrs.
|
|||||||||
Park Plaza Building
|
|
Office
|
|
Kansas City
|
|
(1)
|
|
1,384
|
|
|
6,410
|
|
|
—
|
|
|
1,982
|
|
|
1,384
|
|
|
8,392
|
|
|
9,776
|
|
|
2,706
|
|
|
1983
|
|
5-40 yrs.
|
|||||||||
Two Emanuel Cleaver Boulevard
|
|
Office
|
|
Kansas City
|
|
|
|
984
|
|
|
4,402
|
|
|
—
|
|
|
2,074
|
|
|
984
|
|
|
6,476
|
|
|
7,460
|
|
|
1,956
|
|
|
1983
|
|
5-40 yrs.
|
|||||||||
Valencia Place Office
|
|
Office
|
|
Kansas City
|
|
(1)
|
|
1,576
|
|
|
—
|
|
|
970
|
|
|
36,673
|
|
|
2,546
|
|
|
36,673
|
|
|
39,219
|
|
|
13,283
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Memphis, TN
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
3400 Players Club Parkway
|
|
Office
|
|
Memphis
|
|
|
|
1,005
|
|
|
—
|
|
|
207
|
|
|
5,260
|
|
|
1,212
|
|
|
5,260
|
|
|
6,472
|
|
|
2,020
|
|
|
1997
|
|
5-40 yrs.
|
|||||||||
Triad Centre I
|
|
Office
|
|
Memphis
|
|
|
|
2,340
|
|
|
11,385
|
|
|
(849
|
)
|
|
4,289
|
|
|
1,491
|
|
|
15,674
|
|
|
17,165
|
|
|
4,848
|
|
|
1985
|
|
5-40 yrs.
|
|||||||||
Triad Centre II
|
|
Office
|
|
Memphis
|
|
|
|
1,980
|
|
|
8,677
|
|
|
(404
|
)
|
|
3,269
|
|
|
1,576
|
|
|
11,946
|
|
|
13,522
|
|
|
3,713
|
|
|
1987
|
|
5-40 yrs.
|
|||||||||
Atrium I & II
|
|
Office
|
|
Memphis
|
|
|
|
1,570
|
|
|
6,253
|
|
|
—
|
|
|
2,449
|
|
|
1,570
|
|
|
8,702
|
|
|
10,272
|
|
|
3,659
|
|
|
1984
|
|
5-40 yrs.
|
|||||||||
Centrum
|
|
Office
|
|
Memphis
|
|
|
|
1,013
|
|
|
5,580
|
|
|
—
|
|
|
2,587
|
|
|
1,013
|
|
|
8,167
|
|
|
9,180
|
|
|
3,193
|
|
|
1979
|
|
5-40 yrs.
|
|||||||||
Comcast
|
|
Office
|
|
Memphis
|
|
|
|
946
|
|
|
—
|
|
|
—
|
|
|
8,621
|
|
|
946
|
|
|
8,621
|
|
|
9,567
|
|
|
1,805
|
|
|
2008
|
|
5-40 yrs.
|
|||||||||
International Place Phase II
|
|
Office
|
|
Memphis
|
|
(2)
|
|
4,884
|
|
|
27,782
|
|
|
—
|
|
|
4,060
|
|
|
4,884
|
|
|
31,842
|
|
|
36,726
|
|
|
13,333
|
|
|
1988
|
|
5-40 yrs.
|
HIGHWOODS PROPERTIES, INC.
HIGHWOODS REALTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)
|
|||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
Initial Costs
|
|
Costs Capitalized
Subsequent to
Acquisition
|
|
Gross Value at Close of Period
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Description
|
|
Segment
Type
|
|
City
|
|
2012
Encumbrance
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Total
Assets
|
|
Accumulated
Depreciation
|
|
Date of
Construction
|
|
Life on
Which
Depreciation
is
Calculated
|
|||||||||||||||||
PennMarc Centre
|
|
Office
|
|
Memphis
|
|
7,028
|
|
3,607
|
|
|
10,240
|
|
|
—
|
|
|
1,423
|
|
|
3,607
|
|
|
11,663
|
|
|
15,270
|
|
|
1,751
|
|
|
2008
|
|
5-40 yrs.
|
|||||||||
Shadow Creek I
|
|
Office
|
|
Memphis
|
|
|
|
924
|
|
|
—
|
|
|
466
|
|
|
6,559
|
|
|
1,390
|
|
|
6,559
|
|
|
7,949
|
|
|
2,025
|
|
|
2000
|
|
5-40 yrs.
|
|||||||||
Shadow Creek II
|
|
Office
|
|
Memphis
|
|
|
|
734
|
|
|
—
|
|
|
467
|
|
|
7,164
|
|
|
1,201
|
|
|
7,164
|
|
|
8,365
|
|
|
1,968
|
|
|
2001
|
|
5-40 yrs.
|
|||||||||
Southwind Office Center A
|
|
Office
|
|
Memphis
|
|
|
|
1,004
|
|
|
5,694
|
|
|
282
|
|
|
1,448
|
|
|
1,286
|
|
|
7,142
|
|
|
8,428
|
|
|
2,975
|
|
|
1991
|
|
5-40 yrs.
|
|||||||||
Southwind Office Center B
|
|
Office
|
|
Memphis
|
|
|
|
1,366
|
|
|
7,754
|
|
|
—
|
|
|
981
|
|
|
1,366
|
|
|
8,735
|
|
|
10,101
|
|
|
3,578
|
|
|
1990
|
|
5-40 yrs.
|
|||||||||
Southwind Office Center C
|
|
Office
|
|
Memphis
|
|
|
|
1,070
|
|
|
—
|
|
|
221
|
|
|
5,079
|
|
|
1,291
|
|
|
5,079
|
|
|
6,370
|
|
|
1,833
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
Southwind Office Center D
|
|
Office
|
|
Memphis
|
|
|
|
744
|
|
|
—
|
|
|
193
|
|
|
5,310
|
|
|
937
|
|
|
5,310
|
|
|
6,247
|
|
|
1,666
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Colonnade
|
|
Office
|
|
Memphis
|
|
|
|
1,300
|
|
|
6,481
|
|
|
267
|
|
|
505
|
|
|
1,567
|
|
|
6,986
|
|
|
8,553
|
|
|
2,612
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
ThyssenKrupp Elevator Mfg Headquarters
|
|
Office
|
|
Memphis
|
|
|
|
1,040
|
|
|
—
|
|
|
25
|
|
|
8,342
|
|
|
1,065
|
|
|
8,342
|
|
|
9,407
|
|
|
2,198
|
|
|
2007
|
|
5-40 yrs.
|
|||||||||
General Services Administration
|
|
Office
|
|
Memphis
|
|
|
|
871
|
|
|
—
|
|
|
(871
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2007
|
|
5-40 yrs.
|
|||||||||
Crescent Center
|
|
Office
|
|
Memphis
|
|
39,805
|
|
7,875
|
|
|
32,756
|
|
|
—
|
|
|
4,168
|
|
|
7,875
|
|
|
36,924
|
|
|
44,799
|
|
|
2,975
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
Southwind - Land
|
|
Office
|
|
Memphis
|
|
|
|
3,662
|
|
|
—
|
|
|
(1,477
|
)
|
|
—
|
|
|
2,185
|
|
|
—
|
|
|
2,185
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Triad Centre III
|
|
Office
|
|
Memphis
|
|
|
|
1,253
|
|
|
—
|
|
|
—
|
|
|
35,122
|
|
|
1,253
|
|
|
35,122
|
|
|
36,375
|
|
|
2,943
|
|
|
2009
|
|
5-40 yrs.
|
|||||||||
Nashville, TN
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
3322 West End
|
|
Office
|
|
Nashville
|
|
|
|
3,025
|
|
|
27,490
|
|
|
—
|
|
|
3,556
|
|
|
3,025
|
|
|
31,046
|
|
|
34,071
|
|
|
10,301
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
3401 West End
|
|
Office
|
|
Nashville
|
|
|
|
5,862
|
|
|
22,917
|
|
|
—
|
|
|
5,630
|
|
|
5,862
|
|
|
28,547
|
|
|
34,409
|
|
|
12,724
|
|
|
1982
|
|
5-40 yrs.
|
|||||||||
5310 Maryland Way
|
|
Office
|
|
Nashville
|
|
|
|
1,863
|
|
|
7,201
|
|
|
—
|
|
|
230
|
|
|
1,863
|
|
|
7,431
|
|
|
9,294
|
|
|
3,139
|
|
|
1994
|
|
5-40 yrs.
|
|||||||||
BNA Corporate Center
|
|
Office
|
|
Nashville
|
|
|
|
—
|
|
|
18,506
|
|
|
—
|
|
|
(18,506
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1985
|
|
5-40 yrs.
|
|||||||||
Century City Plaza I
|
|
Office
|
|
Nashville
|
|
|
|
903
|
|
|
6,919
|
|
|
(903
|
)
|
|
(6,919
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1987
|
|
5-40 yrs.
|
|||||||||
Cool Springs 1 & 2 Deck
|
|
Office
|
|
Nashville
|
|
(3)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,957
|
|
|
—
|
|
|
3,957
|
|
|
3,957
|
|
|
511
|
|
|
2007
|
|
5-40 yrs.
|
|||||||||
Cool Springs 3 & 4 Deck
|
|
Office
|
|
Nashville
|
|
(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,418
|
|
|
—
|
|
|
4,418
|
|
|
4,418
|
|
|
636
|
|
|
2007
|
|
5-40 yrs.
|
|||||||||
Cool Springs I
|
|
Office
|
|
Nashville
|
|
(3)
|
|
1,583
|
|
|
—
|
|
|
15
|
|
|
12,288
|
|
|
1,598
|
|
|
12,288
|
|
|
13,886
|
|
|
4,135
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Cool Springs II
|
|
Office
|
|
Nashville
|
|
(3)
|
|
1,824
|
|
|
—
|
|
|
346
|
|
|
18,154
|
|
|
2,170
|
|
|
18,154
|
|
|
20,324
|
|
|
5,429
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Cool Springs III
|
|
Office
|
|
Nashville
|
|
(3)
|
|
1,631
|
|
|
—
|
|
|
804
|
|
|
16,949
|
|
|
2,435
|
|
|
16,949
|
|
|
19,384
|
|
|
4,089
|
|
|
2006
|
|
5-40 yrs.
|
|||||||||
Cool Springs IV
|
|
Office
|
|
Nashville
|
|
(1)
|
|
1,715
|
|
|
—
|
|
|
—
|
|
|
21,371
|
|
|
1,715
|
|
|
21,371
|
|
|
23,086
|
|
|
3,546
|
|
|
2008
|
|
5-40 yrs.
|
|||||||||
Cool Springs V – Healthways
|
|
Office
|
|
Nashville
|
|
|
|
3,688
|
|
|
—
|
|
|
295
|
|
|
52,433
|
|
|
3,983
|
|
|
52,433
|
|
|
56,416
|
|
|
8,586
|
|
|
2007
|
|
5-40 yrs.
|
|||||||||
Harpeth On The Green II
|
|
Office
|
|
Nashville
|
|
|
|
1,419
|
|
|
5,677
|
|
|
—
|
|
|
1,292
|
|
|
1,419
|
|
|
6,969
|
|
|
8,388
|
|
|
2,941
|
|
|
1984
|
|
5-40 yrs.
|
|||||||||
Harpeth On The Green III
|
|
Office
|
|
Nashville
|
|
|
|
1,660
|
|
|
6,649
|
|
|
—
|
|
|
1,836
|
|
|
1,660
|
|
|
8,485
|
|
|
10,145
|
|
|
3,514
|
|
|
1987
|
|
5-40 yrs.
|
|||||||||
Harpeth On The Green IV
|
|
Office
|
|
Nashville
|
|
|
|
1,713
|
|
|
6,842
|
|
|
—
|
|
|
1,464
|
|
|
1,713
|
|
|
8,306
|
|
|
10,019
|
|
|
3,314
|
|
|
1989
|
|
5-40 yrs.
|
|||||||||
Harpeth On The Green V
|
|
Office
|
|
Nashville
|
|
|
|
662
|
|
|
—
|
|
|
197
|
|
|
4,304
|
|
|
859
|
|
|
4,304
|
|
|
5,163
|
|
|
1,647
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
Hickory Trace
|
|
Office
|
|
Nashville
|
|
(2)
|
|
1,164
|
|
|
—
|
|
|
164
|
|
|
4,657
|
|
|
1,328
|
|
|
4,657
|
|
|
5,985
|
|
|
1,350
|
|
|
2001
|
|
5-40 yrs.
|
HIGHWOODS PROPERTIES, INC.
HIGHWOODS REALTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)
|
|||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
Initial Costs
|
|
Costs Capitalized
Subsequent to
Acquisition
|
|
Gross Value at Close of Period
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Description
|
|
Segment
Type
|
|
City
|
|
2012
Encumbrance
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Total
Assets
|
|
Accumulated
Depreciation
|
|
Date of
Construction
|
|
Life on
Which
Depreciation
is
Calculated
|
|||||||||||||||||
Highwoods Plaza I
|
|
Office
|
|
Nashville
|
|
|
|
1,552
|
|
|
—
|
|
|
307
|
|
|
7,989
|
|
|
1,859
|
|
|
7,989
|
|
|
9,848
|
|
|
3,337
|
|
|
1996
|
|
5-40 yrs.
|
|||||||||
Highwoods Plaza II
|
|
Office
|
|
Nashville
|
|
|
|
1,448
|
|
|
—
|
|
|
307
|
|
|
5,799
|
|
|
1,755
|
|
|
5,799
|
|
|
7,554
|
|
|
2,160
|
|
|
1997
|
|
5-40 yrs.
|
|||||||||
Lakeview Ridge II
|
|
Office
|
|
Nashville
|
|
|
|
605
|
|
|
—
|
|
|
(605
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
Lakeview Ridge III
|
|
Office
|
|
Nashville
|
|
|
|
1,073
|
|
|
—
|
|
|
(1,073
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Seven Springs - Land I
|
|
Office
|
|
Nashville
|
|
|
|
3,122
|
|
|
—
|
|
|
(1,314
|
)
|
|
—
|
|
|
1,808
|
|
|
—
|
|
|
1,808
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Seven Springs - Land II
|
|
Office
|
|
Nashville
|
|
|
|
3,715
|
|
|
—
|
|
|
(1,025
|
)
|
|
—
|
|
|
2,690
|
|
|
—
|
|
|
2,690
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Seven Springs I
|
|
Office
|
|
Nashville
|
|
|
|
2,076
|
|
|
—
|
|
|
592
|
|
|
12,658
|
|
|
2,668
|
|
|
12,658
|
|
|
15,326
|
|
|
4,392
|
|
|
2002
|
|
5-40 yrs.
|
|||||||||
SouthPointe
|
|
Office
|
|
Nashville
|
|
|
|
1,655
|
|
|
—
|
|
|
310
|
|
|
6,761
|
|
|
1,965
|
|
|
6,761
|
|
|
8,726
|
|
|
2,484
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
The Ramparts of Brentwood
|
|
Office
|
|
Nashville
|
|
|
|
2,394
|
|
|
12,806
|
|
|
—
|
|
|
2,109
|
|
|
2,394
|
|
|
14,915
|
|
|
17,309
|
|
|
4,907
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
Westwood South
|
|
Office
|
|
Nashville
|
|
|
|
2,106
|
|
|
—
|
|
|
382
|
|
|
9,006
|
|
|
2,488
|
|
|
9,006
|
|
|
11,494
|
|
|
2,972
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
100 Winners Circle
|
|
Office
|
|
Nashville
|
|
|
|
1,497
|
|
|
7,258
|
|
|
—
|
|
|
1,368
|
|
|
1,497
|
|
|
8,626
|
|
|
10,123
|
|
|
3,158
|
|
|
1987
|
|
5-40 yrs.
|
|||||||||
Nashville - Land
|
|
Office
|
|
Nashville
|
|
|
|
15,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,000
|
|
|
—
|
|
|
15,000
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Orlando, FL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Berkshire at MetroCenter
|
|
Office
|
|
Orlando
|
|
|
|
1,265
|
|
|
—
|
|
|
672
|
|
|
12,781
|
|
|
1,937
|
|
|
12,781
|
|
|
14,718
|
|
|
2,984
|
|
|
2007
|
|
5-40 yrs.
|
|||||||||
Capital Plaza III - Land
|
|
Office
|
|
Orlando
|
|
|
|
2,994
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
3,012
|
|
|
—
|
|
|
3,012
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Eola Park - Land
|
|
Office
|
|
Orlando
|
|
|
|
2,027
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,027
|
|
|
—
|
|
|
2,027
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Cambridge at MetroCenter
|
|
Office
|
|
Orlando
|
|
|
|
501
|
|
|
—
|
|
|
14
|
|
|
3,320
|
|
|
515
|
|
|
3,320
|
|
|
3,835
|
|
|
773
|
|
|
2000
|
|
5-40 yrs.
|
|||||||||
Oxford - Land
|
|
Office
|
|
Orlando
|
|
|
|
1,100
|
|
|
—
|
|
|
51
|
|
|
—
|
|
|
1,151
|
|
|
—
|
|
|
1,151
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
MetroWest Commerce Center
|
|
Office
|
|
Orlando
|
|
|
|
1,354
|
|
|
7,687
|
|
|
(164
|
)
|
|
4,816
|
|
|
1,190
|
|
|
12,503
|
|
|
13,693
|
|
|
4,315
|
|
|
1988
|
|
5-40 yrs.
|
|||||||||
Stratford - Land
|
|
Office
|
|
Orlando
|
|
|
|
2,034
|
|
|
—
|
|
|
(148
|
)
|
|
—
|
|
|
1,886
|
|
|
—
|
|
|
1,886
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Windsor at MetroCenter
|
|
Office
|
|
Orlando
|
|
|
|
—
|
|
|
—
|
|
|
2,060
|
|
|
8,296
|
|
|
2,060
|
|
|
8,296
|
|
|
10,356
|
|
|
2,000
|
|
|
2002
|
|
5-40 yrs.
|
|||||||||
The 1800 Eller Drive Building
|
|
Office
|
|
South Florida
|
|
|
|
—
|
|
|
9,851
|
|
|
—
|
|
|
2,619
|
|
|
—
|
|
|
12,470
|
|
|
12,470
|
|
|
5,550
|
|
|
1983
|
|
5-40 yrs.
|
|||||||||
Piedmont Triad, NC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
101 South Stratford Road
|
|
Office
|
|
Piedmont Triad
|
|
|
|
1,205
|
|
|
6,916
|
|
|
—
|
|
|
1,164
|
|
|
1,205
|
|
|
8,080
|
|
|
9,285
|
|
|
3,013
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
6348 Burnt Poplar
|
|
Industrial
|
|
Piedmont Triad
|
|
|
|
724
|
|
|
2,900
|
|
|
—
|
|
|
254
|
|
|
724
|
|
|
3,154
|
|
|
3,878
|
|
|
1,355
|
|
|
1990
|
|
5-40 yrs.
|
|||||||||
6350 Burnt Poplar
|
|
Industrial
|
|
Piedmont Triad
|
|
|
|
341
|
|
|
1,374
|
|
|
—
|
|
|
237
|
|
|
341
|
|
|
1,611
|
|
|
1,952
|
|
|
701
|
|
|
1992
|
|
5-40 yrs.
|
|||||||||
7341 West Friendly Avenue
|
|
Industrial
|
|
Piedmont Triad
|
|
|
|
113
|
|
|
841
|
|
|
—
|
|
|
381
|
|
|
113
|
|
|
1,222
|
|
|
1,335
|
|
|
521
|
|
|
1988
|
|
5-40 yrs.
|
|||||||||
7343 West Friendly Avenue
|
|
Industrial
|
|
Piedmont Triad
|
|
|
|
72
|
|
|
555
|
|
|
—
|
|
|
273
|
|
|
72
|
|
|
828
|
|
|
900
|
|
|
331
|
|
|
1988
|
|
5-40 yrs.
|
HIGHWOODS PROPERTIES, INC.
HIGHWOODS REALTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)
|
|||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
Initial Costs
|
|
Costs Capitalized
Subsequent to
Acquisition
|
|
Gross Value at Close of Period
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Description
|
|
Segment
Type
|
|
City
|
|
2012
Encumbrance
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Total
Assets
|
|
Accumulated
Depreciation
|
|
Date of
Construction
|
|
Life on
Which
Depreciation
is
Calculated
|
|||||||||||||||||
7345 West Friendly Avenue
|
|
Industrial
|
|
Piedmont Triad
|
|
|
|
66
|
|
|
492
|
|
|
—
|
|
|
210
|
|
|
66
|
|
|
702
|
|
|
768
|
|
|
295
|
|
|
1988
|
|
5-40 yrs.
|
|||||||||
7347 West Friendly Avenue
|
|
Industrial
|
|
Piedmont Triad
|
|
|
|
97
|
|
|
719
|
|
|
—
|
|
|
269
|
|
|
97
|
|
|
988
|
|
|
1,085
|
|
|
407
|
|
|
1988
|
|
5-40 yrs.
|
|||||||||
7349 West Friendly Avenue
|
|
Industrial
|
|
Piedmont Triad
|
|
|
|
53
|
|
|
393
|
|
|
—
|
|
|
161
|
|
|
53
|
|
|
554
|
|
|
607
|
|
|
202
|
|
|
1988
|
|
5-40 yrs.
|
|||||||||
7351 West Friendly Avenue
|
|
Industrial
|
|
Piedmont Triad
|
|
|
|
106
|
|
|
788
|
|
|
—
|
|
|
153
|
|
|
106
|
|
|
941
|
|
|
1,047
|
|
|
399
|
|
|
1988
|
|
5-40 yrs.
|
|||||||||
7353 West Friendly Avenue
|
|
Industrial
|
|
Piedmont Triad
|
|
|
|
123
|
|
|
912
|
|
|
—
|
|
|
120
|
|
|
123
|
|
|
1,032
|
|
|
1,155
|
|
|
420
|
|
|
1988
|
|
5-40 yrs.
|
|||||||||
7355 West Friendly Avenue
|
|
Industrial
|
|
Piedmont Triad
|
|
|
|
72
|
|
|
538
|
|
|
—
|
|
|
156
|
|
|
72
|
|
|
694
|
|
|
766
|
|
|
276
|
|
|
1988
|
|
5-40 yrs.
|
|||||||||
420 Gallimore Dairy Road
|
|
Office
|
|
Piedmont Triad
|
|
|
|
379
|
|
|
1,516
|
|
|
—
|
|
|
419
|
|
|
379
|
|
|
1,935
|
|
|
2,314
|
|
|
803
|
|
|
1990
|
|
5-40 yrs.
|
|||||||||
418 Gallimore Dairy Road
|
|
Office
|
|
Piedmont Triad
|
|
|
|
462
|
|
|
1,849
|
|
|
—
|
|
|
414
|
|
|
462
|
|
|
2,263
|
|
|
2,725
|
|
|
949
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
416 Gallimore Dairy Road
|
|
Office
|
|
Piedmont Triad
|
|
|
|
322
|
|
|
1,293
|
|
|
—
|
|
|
485
|
|
|
322
|
|
|
1,778
|
|
|
2,100
|
|
|
766
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
7031 Albert Pick Road
|
|
Office
|
|
Piedmont Triad
|
|
|
|
510
|
|
|
2,921
|
|
|
—
|
|
|
1,668
|
|
|
510
|
|
|
4,589
|
|
|
5,099
|
|
|
2,008
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
7029 Albert Pick Road
|
|
Office
|
|
Piedmont Triad
|
|
|
|
739
|
|
|
3,237
|
|
|
—
|
|
|
875
|
|
|
739
|
|
|
4,112
|
|
|
4,851
|
|
|
1,933
|
|
|
1988
|
|
5-40 yrs.
|
|||||||||
7025 Albert Pick Road
|
|
Office
|
|
Piedmont Triad
|
|
(2)
|
|
2,393
|
|
|
9,576
|
|
|
—
|
|
|
2,884
|
|
|
2,393
|
|
|
12,460
|
|
|
14,853
|
|
|
5,424
|
|
|
1990
|
|
5-40 yrs.
|
|||||||||
7027 Albert Pick Road
|
|
Office
|
|
Piedmont Triad
|
|
(2)
|
|
850
|
|
|
—
|
|
|
699
|
|
|
3,911
|
|
|
1,549
|
|
|
3,911
|
|
|
5,460
|
|
|
1,486
|
|
|
1997
|
|
5-40 yrs.
|
|||||||||
7009 Albert Pick Road
|
|
Industrial
|
|
Piedmont Triad
|
|
|
|
224
|
|
|
1,068
|
|
|
—
|
|
|
320
|
|
|
224
|
|
|
1,388
|
|
|
1,612
|
|
|
748
|
|
|
1990
|
|
5-40 yrs.
|
|||||||||
426 Gallimore Dairy Road
|
|
Office
|
|
Piedmont Triad
|
|
|
|
465
|
|
|
—
|
|
|
380
|
|
|
1,024
|
|
|
845
|
|
|
1,024
|
|
|
1,869
|
|
|
429
|
|
|
1996
|
|
5-40 yrs.
|
|||||||||
422 Gallimore Dairy Road
|
|
Industrial
|
|
Piedmont Triad
|
|
|
|
145
|
|
|
1,081
|
|
|
—
|
|
|
331
|
|
|
145
|
|
|
1,412
|
|
|
1,557
|
|
|
570
|
|
|
1990
|
|
5-40 yrs.
|
|||||||||
406 Gallimore Dairy Road
|
|
Office
|
|
Piedmont Triad
|
|
|
|
265
|
|
|
—
|
|
|
270
|
|
|
951
|
|
|
535
|
|
|
951
|
|
|
1,486
|
|
|
378
|
|
|
1996
|
|
5-40 yrs.
|
|||||||||
7021 Albert Pick Road
|
|
Industrial
|
|
Piedmont Triad
|
|
|
|
237
|
|
|
1,103
|
|
|
—
|
|
|
199
|
|
|
237
|
|
|
1,302
|
|
|
1,539
|
|
|
567
|
|
|
1985
|
|
5-40 yrs.
|
|||||||||
7019 Albert Pick Road
|
|
Industrial
|
|
Piedmont Triad
|
|
|
|
192
|
|
|
946
|
|
|
—
|
|
|
199
|
|
|
192
|
|
|
1,145
|
|
|
1,337
|
|
|
488
|
|
|
1985
|
|
5-40 yrs.
|
HIGHWOODS PROPERTIES, INC.
HIGHWOODS REALTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)
|
|||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
Initial Costs
|
|
Costs Capitalized
Subsequent to
Acquisition
|
|
Gross Value at Close of Period
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Description
|
|
Segment
Type
|
|
City
|
|
2012
Encumbrance
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Total
Assets
|
|
Accumulated
Depreciation
|
|
Date of
Construction
|
|
Life on
Which
Depreciation
is
Calculated
|
|||||||||||||||||
7015 Albert Pick Road
|
|
Industrial
|
|
Piedmont Triad
|
|
|
|
305
|
|
|
1,219
|
|
|
—
|
|
|
372
|
|
|
305
|
|
|
1,591
|
|
|
1,896
|
|
|
682
|
|
|
1985
|
|
5-40 yrs.
|
|||||||||
7017 Albert Pick Road
|
|
Industrial
|
|
Piedmont Triad
|
|
|
|
225
|
|
|
928
|
|
|
—
|
|
|
116
|
|
|
225
|
|
|
1,044
|
|
|
1,269
|
|
|
454
|
|
|
1985
|
|
5-40 yrs.
|
|||||||||
7011 Albert Pick Road
|
|
Industrial
|
|
Piedmont Triad
|
|
|
|
171
|
|
|
777
|
|
|
—
|
|
|
230
|
|
|
171
|
|
|
1,007
|
|
|
1,178
|
|
|
432
|
|
|
1990
|
|
5-40 yrs.
|
|||||||||
424 Gallimore Dairy Road
|
|
Office
|
|
Piedmont Triad
|
|
|
|
271
|
|
|
—
|
|
|
239
|
|
|
989
|
|
|
510
|
|
|
989
|
|
|
1,499
|
|
|
480
|
|
|
1997
|
|
5-40 yrs.
|
|||||||||
410 Gallimore Dairy Road
|
|
Industrial
|
|
Piedmont Triad
|
|
|
|
356
|
|
|
1,613
|
|
|
—
|
|
|
202
|
|
|
356
|
|
|
1,815
|
|
|
2,171
|
|
|
840
|
|
|
1985
|
|
5-40 yrs.
|
|||||||||
412 Gallimore Dairy Road
|
|
Industrial
|
|
Piedmont Triad
|
|
|
|
374
|
|
|
1,523
|
|
|
—
|
|
|
377
|
|
|
374
|
|
|
1,900
|
|
|
2,274
|
|
|
787
|
|
|
1985
|
|
5-40 yrs.
|
|||||||||
408 Gallimore Dairy Road
|
|
Industrial
|
|
Piedmont Triad
|
|
|
|
341
|
|
|
1,486
|
|
|
—
|
|
|
629
|
|
|
341
|
|
|
2,115
|
|
|
2,456
|
|
|
1,006
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
414 Gallimore Dairy Road
|
|
Industrial
|
|
Piedmont Triad
|
|
|
|
659
|
|
|
2,676
|
|
|
—
|
|
|
646
|
|
|
659
|
|
|
3,322
|
|
|
3,981
|
|
|
1,447
|
|
|
1988
|
|
5-40 yrs.
|
|||||||||
237 Burgess Road
|
|
Industrial
|
|
Piedmont Triad
|
|
|
|
860
|
|
|
2,919
|
|
|
—
|
|
|
550
|
|
|
860
|
|
|
3,469
|
|
|
4,329
|
|
|
1,548
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
235 Burgess Road
|
|
Industrial
|
|
Piedmont Triad
|
|
|
|
1,302
|
|
|
4,392
|
|
|
—
|
|
|
706
|
|
|
1,302
|
|
|
5,098
|
|
|
6,400
|
|
|
2,504
|
|
|
1987
|
|
5-40 yrs.
|
|||||||||
241 Burgess Road
|
|
Industrial
|
|
Piedmont Triad
|
|
|
|
450
|
|
|
1,517
|
|
|
—
|
|
|
897
|
|
|
450
|
|
|
2,414
|
|
|
2,864
|
|
|
964
|
|
|
1988
|
|
5-40 yrs.
|
|||||||||
243 Burgess Road
|
|
Industrial
|
|
Piedmont Triad
|
|
|
|
452
|
|
|
1,514
|
|
|
—
|
|
|
153
|
|
|
452
|
|
|
1,667
|
|
|
2,119
|
|
|
774
|
|
|
1988
|
|
5-40 yrs.
|
|||||||||
496 Gallimore Dairy Road
|
|
Industrial
|
|
Piedmont Triad
|
|
|
|
546
|
|
|
—
|
|
|
—
|
|
|
2,918
|
|
|
546
|
|
|
2,918
|
|
|
3,464
|
|
|
1,157
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
494 Gallimore Dairy Road
|
|
Industrial
|
|
Piedmont Triad
|
|
|
|
749
|
|
|
—
|
|
|
—
|
|
|
2,509
|
|
|
749
|
|
|
2,509
|
|
|
3,258
|
|
|
854
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
486 Gallimore Dairy Road
|
|
Industrial
|
|
Piedmont Triad
|
|
|
|
603
|
|
|
—
|
|
|
—
|
|
|
2,273
|
|
|
603
|
|
|
2,273
|
|
|
2,876
|
|
|
729
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
488 Gallimore Dairy Road
|
|
Industrial
|
|
Piedmont Triad
|
|
|
|
499
|
|
|
—
|
|
|
—
|
|
|
2,075
|
|
|
499
|
|
|
2,075
|
|
|
2,574
|
|
|
661
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
490 Gallimore Dairy Road
|
|
Industrial
|
|
Piedmont Triad
|
|
|
|
1,733
|
|
|
—
|
|
|
—
|
|
|
5,742
|
|
|
1,733
|
|
|
5,742
|
|
|
7,475
|
|
|
2,691
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
7825 National Service Road
|
|
Office
|
|
Piedmont Triad
|
|
|
|
944
|
|
|
3,831
|
|
|
—
|
|
|
1,017
|
|
|
944
|
|
|
4,848
|
|
|
5,792
|
|
|
2,230
|
|
|
1984
|
|
5-40 yrs.
|
|||||||||
7823 National Service Road
|
|
Office
|
|
Piedmont Triad
|
|
|
|
887
|
|
|
3,550
|
|
|
—
|
|
|
506
|
|
|
887
|
|
|
4,056
|
|
|
4,943
|
|
|
1,818
|
|
|
1985
|
|
5-40 yrs.
|
HIGHWOODS PROPERTIES, INC.
HIGHWOODS REALTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)
|
|||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
Initial Costs
|
|
Costs Capitalized
Subsequent to
Acquisition
|
|
Gross Value at Close of Period
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Description
|
|
Segment
Type
|
|
City
|
|
2012
Encumbrance
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Total
Assets
|
|
Accumulated
Depreciation
|
|
Date of
Construction
|
|
Life on
Which
Depreciation
is
Calculated
|
|||||||||||||||||
7819 National Service Road
|
|
Office
|
|
Piedmont Triad
|
|
|
|
227
|
|
|
907
|
|
|
—
|
|
|
430
|
|
|
227
|
|
|
1,337
|
|
|
1,564
|
|
|
644
|
|
|
1985
|
|
5-40 yrs.
|
|||||||||
7817 National Service Road
|
|
Office
|
|
Piedmont Triad
|
|
|
|
243
|
|
|
971
|
|
|
—
|
|
|
647
|
|
|
243
|
|
|
1,618
|
|
|
1,861
|
|
|
622
|
|
|
1985
|
|
5-40 yrs.
|
|||||||||
7815 National Service Road
|
|
Office
|
|
Piedmont Triad
|
|
|
|
327
|
|
|
1,309
|
|
|
—
|
|
|
842
|
|
|
327
|
|
|
2,151
|
|
|
2,478
|
|
|
968
|
|
|
1985
|
|
5-40 yrs.
|
|||||||||
Brigham Road - Land
|
|
Industrial
|
|
Piedmont Triad
|
|
|
|
7,059
|
|
|
—
|
|
|
(3,720
|
)
|
|
—
|
|
|
3,339
|
|
|
—
|
|
|
3,339
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
3330 Healy Drive
|
|
Office
|
|
Piedmont Triad
|
|
|
|
625
|
|
|
2,183
|
|
|
(235
|
)
|
|
555
|
|
|
390
|
|
|
2,738
|
|
|
3,128
|
|
|
1,344
|
|
|
1983
|
|
5-40 yrs.
|
|||||||||
3334 Healy Drive
|
|
Office
|
|
Piedmont Triad
|
|
|
|
625
|
|
|
4,435
|
|
|
(203
|
)
|
|
(983
|
)
|
|
422
|
|
|
3,452
|
|
|
3,874
|
|
|
1,754
|
|
|
1983
|
|
5-40 yrs.
|
|||||||||
1381 Old Mill Circle
|
|
Office
|
|
Piedmont Triad
|
|
|
|
680
|
|
|
3,572
|
|
|
(217
|
)
|
|
(963
|
)
|
|
463
|
|
|
2,609
|
|
|
3,072
|
|
|
1,317
|
|
|
1989
|
|
5-40 yrs.
|
|||||||||
1399 Ashleybrook Lane
|
|
Office
|
|
Piedmont Triad
|
|
|
|
376
|
|
|
1,655
|
|
|
(123
|
)
|
|
(337
|
)
|
|
253
|
|
|
1,318
|
|
|
1,571
|
|
|
667
|
|
|
1989
|
|
5-40 yrs.
|
|||||||||
7800 Thorndike Road
|
|
Office
|
|
Piedmont Triad
|
|
|
|
1,041
|
|
|
5,892
|
|
|
—
|
|
|
1,429
|
|
|
1,041
|
|
|
7,321
|
|
|
8,362
|
|
|
2,812
|
|
|
1989
|
|
5-40 yrs.
|
|||||||||
651 Brigham Road
|
|
Industrial
|
|
Piedmont Triad
|
|
|
|
453
|
|
|
—
|
|
|
360
|
|
|
2,900
|
|
|
813
|
|
|
2,900
|
|
|
3,713
|
|
|
896
|
|
|
2002
|
|
5-40 yrs.
|
|||||||||
657 Brigham Road
|
|
Industrial
|
|
Piedmont Triad
|
|
|
|
2,733
|
|
|
—
|
|
|
881
|
|
|
11,097
|
|
|
3,614
|
|
|
11,097
|
|
|
14,711
|
|
|
1,924
|
|
|
2006
|
|
5-40 yrs.
|
|||||||||
653 Brigham Road
|
|
Industrial
|
|
Piedmont Triad
|
|
|
|
814
|
|
|
—
|
|
|
—
|
|
|
3,587
|
|
|
814
|
|
|
3,587
|
|
|
4,401
|
|
|
454
|
|
|
2007
|
|
5-40 yrs.
|
|||||||||
2000 Frontis Plaza Boulevard
|
|
Office
|
|
Piedmont Triad
|
|
|
|
329
|
|
|
1,867
|
|
|
—
|
|
|
767
|
|
|
329
|
|
|
2,634
|
|
|
2,963
|
|
|
1,227
|
|
|
1985
|
|
5-40 yrs.
|
|||||||||
1501 Highwoods Boulevard
|
|
Office
|
|
Piedmont Triad
|
|
|
|
1,476
|
|
|
—
|
|
|
—
|
|
|
7,848
|
|
|
1,476
|
|
|
7,848
|
|
|
9,324
|
|
|
2,126
|
|
|
2001
|
|
5-40 yrs.
|
|||||||||
Jefferson Pilot - Land
|
|
Office
|
|
Piedmont Triad
|
|
|
|
11,759
|
|
|
—
|
|
|
(4,311
|
)
|
|
—
|
|
|
7,448
|
|
|
—
|
|
|
7,448
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
4200 Tudor Lane
|
|
Industrial
|
|
Piedmont Triad
|
|
|
|
515
|
|
|
—
|
|
|
383
|
|
|
2,352
|
|
|
898
|
|
|
2,352
|
|
|
3,250
|
|
|
988
|
|
|
1996
|
|
5-40 yrs.
|
|||||||||
4224 Tudor Lane
|
|
Industrial
|
|
Piedmont Triad
|
|
|
|
435
|
|
|
—
|
|
|
288
|
|
|
1,838
|
|
|
723
|
|
|
1,838
|
|
|
2,561
|
|
|
724
|
|
|
1996
|
|
5-40 yrs.
|
|||||||||
7023 Albert Pick Road
|
|
Office
|
|
Piedmont Triad
|
|
|
|
834
|
|
|
3,459
|
|
|
—
|
|
|
500
|
|
|
834
|
|
|
3,959
|
|
|
4,793
|
|
|
1,706
|
|
|
1989
|
|
5-40 yrs.
|
|||||||||
380 Knollwood Street - Retail
|
|
Office
|
|
Piedmont Triad
|
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
227
|
|
|
—
|
|
|
228
|
|
|
228
|
|
|
117
|
|
|
1995
|
|
5-40 yrs.
|
HIGHWOODS PROPERTIES, INC.
HIGHWOODS REALTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)
|
|||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
Initial Costs
|
|
Costs Capitalized
Subsequent to
Acquisition
|
|
Gross Value at Close of Period
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Description
|
|
Segment
Type
|
|
City
|
|
2012
Encumbrance
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Total
Assets
|
|
Accumulated
Depreciation
|
|
Date of
Construction
|
|
Life on
Which
Depreciation
is
Calculated
|
|||||||||||||||||
370 Knollwood Street
|
|
Office
|
|
Piedmont Triad
|
|
|
|
1,826
|
|
|
7,495
|
|
|
—
|
|
|
2,627
|
|
|
1,826
|
|
|
10,122
|
|
|
11,948
|
|
|
3,716
|
|
|
1994
|
|
5-40 yrs.
|
|||||||||
380 Knollwood Street
|
|
Office
|
|
Piedmont Triad
|
|
|
|
2,989
|
|
|
12,028
|
|
|
—
|
|
|
2,902
|
|
|
2,989
|
|
|
14,930
|
|
|
17,919
|
|
|
6,580
|
|
|
1990
|
|
5-40 yrs.
|
|||||||||
799 Hanes Mall Boulevard
|
|
Office
|
|
Piedmont Triad
|
|
|
|
1,450
|
|
|
11,375
|
|
|
—
|
|
|
1,005
|
|
|
1,450
|
|
|
12,380
|
|
|
13,830
|
|
|
4,924
|
|
|
1970-1987
|
|
5-40 yrs.
|
|||||||||
3901 Westpoint Boulevard
|
|
Office
|
|
Piedmont Triad
|
|
|
|
347
|
|
|
1,389
|
|
|
—
|
|
|
97
|
|
|
347
|
|
|
1,486
|
|
|
1,833
|
|
|
653
|
|
|
1990
|
|
5-40 yrs.
|
|||||||||
Church St Medical Center I
|
|
Office
|
|
Piedmont Triad
|
|
7,764
|
|
|
2,734
|
|
|
9,129
|
|
|
—
|
|
|
—
|
|
|
2,734
|
|
|
9,129
|
|
|
11,863
|
|
|
91
|
|
|
2003
|
|
5-40 yrs.
|
||||||||
Church St Medical Center II
|
|
Office
|
|
Piedmont Triad
|
|
|
|
2,376
|
|
|
5,451
|
|
|
—
|
|
|
3
|
|
|
2,376
|
|
|
5,454
|
|
|
7,830
|
|
|
125
|
|
|
2007
|
|
5-40 yrs.
|
|||||||||
Church St Medical Center III
|
|
Office
|
|
Piedmont Triad
|
|
|
|
925
|
|
|
4,551
|
|
|
—
|
|
|
76
|
|
|
925
|
|
|
4,627
|
|
|
5,552
|
|
|
91
|
|
|
2008
|
|
5-40 yrs.
|
|||||||||
Pittsburgh, PA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
One PPG Place
|
|
Office
|
|
Pittsburgh
|
|
(4)
|
|
9,819
|
|
|
107,643
|
|
|
—
|
|
|
11,751
|
|
|
9,819
|
|
|
119,394
|
|
|
129,213
|
|
|
5,274
|
|
|
1983-1985
|
|
5-40 yrs.
|
|||||||||
Two PPG Place-Office
|
|
Office
|
|
Pittsburgh
|
|
(4)
|
|
2,302
|
|
|
10,863
|
|
|
—
|
|
|
376
|
|
|
2,302
|
|
|
11,239
|
|
|
13,541
|
|
|
520
|
|
|
1983-1985
|
|
5-40 yrs.
|
|||||||||
Two PPG Place-Retail
|
|
Office
|
|
Pittsburgh
|
|
(4)
|
|
—
|
|
|
115
|
|
|
—
|
|
|
150
|
|
|
—
|
|
|
265
|
|
|
265
|
|
|
28
|
|
|
1983-1985
|
|
5-40 yrs.
|
|||||||||
Three PPG Place
|
|
Office
|
|
Pittsburgh
|
|
(4)
|
|
501
|
|
|
2,923
|
|
|
—
|
|
|
556
|
|
|
501
|
|
|
3,479
|
|
|
3,980
|
|
|
152
|
|
|
1983-1985
|
|
5-40 yrs.
|
|||||||||
Four PPG Place
|
|
Office
|
|
Pittsburgh
|
|
(4)
|
|
620
|
|
|
3,239
|
|
|
—
|
|
|
689
|
|
|
620
|
|
|
3,928
|
|
|
4,548
|
|
|
154
|
|
|
1983-1985
|
|
5-40 yrs.
|
|||||||||
Five PPG Place
|
|
Office
|
|
Pittsburgh
|
|
(4)
|
|
803
|
|
|
4,924
|
|
|
—
|
|
|
1,149
|
|
|
803
|
|
|
6,073
|
|
|
6,876
|
|
|
310
|
|
|
1983-1985
|
|
5-40 yrs.
|
|||||||||
Six PPG Place
|
|
Office
|
|
Pittsburgh
|
|
(4)
|
|
3,353
|
|
|
25,602
|
|
|
—
|
|
|
2,744
|
|
|
3,353
|
|
|
28,346
|
|
|
31,699
|
|
|
1,698
|
|
|
1983-1985
|
|
5-40 yrs.
|
|||||||||
EQT Plaza
|
|
Office
|
|
Pittsburgh
|
|
|
|
—
|
|
|
83,812
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
83,812
|
|
|
83,812
|
|
|
282
|
|
|
1987
|
|
5-40 yrs.
|
|||||||||
Raleigh, NC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
3600 Glenwood Avenue
|
|
Office
|
|
Raleigh
|
|
|
|
—
|
|
|
10,994
|
|
|
—
|
|
|
4,581
|
|
|
—
|
|
|
15,575
|
|
|
15,575
|
|
|
5,441
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
3737 Glenwood Avenue
|
|
Office
|
|
Raleigh
|
|
|
|
—
|
|
|
—
|
|
|
318
|
|
|
15,347
|
|
|
318
|
|
|
15,347
|
|
|
15,665
|
|
|
4,822
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
4101 Research Commons
|
|
Office
|
|
Raleigh
|
|
|
|
1,348
|
|
|
8,346
|
|
|
220
|
|
|
(2,109
|
)
|
|
1,568
|
|
|
6,237
|
|
|
7,805
|
|
|
2,026
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
4201 Research Commons
|
|
Office
|
|
Raleigh
|
|
|
|
1,204
|
|
|
11,858
|
|
|
—
|
|
|
(1,284
|
)
|
|
1,204
|
|
|
10,574
|
|
|
11,778
|
|
|
4,029
|
|
|
1991
|
|
5-40 yrs.
|
|||||||||
4301 Research Commons
|
|
Office
|
|
Raleigh
|
|
|
|
900
|
|
|
8,237
|
|
|
—
|
|
|
534
|
|
|
900
|
|
|
8,771
|
|
|
9,671
|
|
|
3,853
|
|
|
1989
|
|
5-40 yrs.
|
|||||||||
4401 Research Commons
|
|
Office
|
|
Raleigh
|
|
|
|
1,249
|
|
|
9,387
|
|
|
—
|
|
|
2,007
|
|
|
1,249
|
|
|
11,394
|
|
|
12,643
|
|
|
4,988
|
|
|
1987
|
|
5-40 yrs.
|
|||||||||
4501 Research Commons
|
|
Office
|
|
Raleigh
|
|
|
|
785
|
|
|
5,856
|
|
|
—
|
|
|
1,780
|
|
|
785
|
|
|
7,636
|
|
|
8,421
|
|
|
3,854
|
|
|
1985
|
|
5-40 yrs.
|
|||||||||
4800 North Park
|
|
Office
|
|
Raleigh
|
|
|
|
2,678
|
|
|
17,630
|
|
|
—
|
|
|
7,493
|
|
|
2,678
|
|
|
25,123
|
|
|
27,801
|
|
|
11,333
|
|
|
1985
|
|
5-40 yrs.
|
|||||||||
4900 North Park
|
|
Office
|
|
Raleigh
|
|
87
|
|
770
|
|
|
1,983
|
|
|
—
|
|
|
1,275
|
|
|
770
|
|
|
3,258
|
|
|
4,028
|
|
|
1,373
|
|
|
1984
|
|
5-40 yrs.
|
|||||||||
5000 North Park
|
|
Office
|
|
Raleigh
|
|
|
|
1,010
|
|
|
4,612
|
|
|
(49
|
)
|
|
2,423
|
|
|
961
|
|
|
7,035
|
|
|
7,996
|
|
|
3,546
|
|
|
1980
|
|
5-40 yrs.
|
HIGHWOODS PROPERTIES, INC.
HIGHWOODS REALTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)
|
|||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
Initial Costs
|
|
Costs Capitalized
Subsequent to
Acquisition
|
|
Gross Value at Close of Period
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Description
|
|
Segment
Type
|
|
City
|
|
2012
Encumbrance
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Total
Assets
|
|
Accumulated
Depreciation
|
|
Date of
Construction
|
|
Life on
Which
Depreciation
is
Calculated
|
|||||||||||||||||
801 Raleigh Corporate Center
|
|
Office
|
|
Raleigh
|
|
(3)
|
|
828
|
|
|
—
|
|
|
272
|
|
|
9,565
|
|
|
1,100
|
|
|
9,565
|
|
|
10,665
|
|
|
2,700
|
|
|
2002
|
|
5-40 yrs.
|
|||||||||
Blue Ridge I
|
|
Office
|
|
Raleigh
|
|
|
|
722
|
|
|
4,606
|
|
|
—
|
|
|
1,082
|
|
|
722
|
|
|
5,688
|
|
|
6,410
|
|
|
2,705
|
|
|
1982
|
|
5-40 yrs.
|
|||||||||
Blue Ridge II
|
|
Office
|
|
Raleigh
|
|
|
|
462
|
|
|
1,410
|
|
|
—
|
|
|
494
|
|
|
462
|
|
|
1,904
|
|
|
2,366
|
|
|
1,091
|
|
|
1988
|
|
5-40 yrs.
|
|||||||||
Cape Fear
|
|
Office
|
|
Raleigh
|
|
|
|
131
|
|
|
1,630
|
|
|
—
|
|
|
770
|
|
|
131
|
|
|
2,400
|
|
|
2,531
|
|
|
2,224
|
|
|
1979
|
|
5-40 yrs.
|
|||||||||
Catawba
|
|
Office
|
|
Raleigh
|
|
|
|
125
|
|
|
1,635
|
|
|
—
|
|
|
2,390
|
|
|
125
|
|
|
4,025
|
|
|
4,150
|
|
|
2,975
|
|
|
1980
|
|
5-40 yrs.
|
|||||||||
CentreGreen One
|
|
Office
|
|
Raleigh
|
|
(2)
|
|
1,529
|
|
|
—
|
|
|
(378
|
)
|
|
9,400
|
|
|
1,151
|
|
|
9,400
|
|
|
10,551
|
|
|
2,677
|
|
|
2000
|
|
5-40 yrs.
|
|||||||||
CentreGreen Two
|
|
Office
|
|
Raleigh
|
|
(2)
|
|
1,653
|
|
|
—
|
|
|
(389
|
)
|
|
8,885
|
|
|
1,264
|
|
|
8,885
|
|
|
10,149
|
|
|
2,655
|
|
|
2001
|
|
5-40 yrs.
|
|||||||||
CentreGreen Three - Land
|
|
Office
|
|
Raleigh
|
|
|
|
1,876
|
|
|
—
|
|
|
(384
|
)
|
|
—
|
|
|
1,492
|
|
|
—
|
|
|
1,492
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
CentreGreen Four
|
|
Office
|
|
Raleigh
|
|
(2)
|
|
1,779
|
|
|
—
|
|
|
(397
|
)
|
|
11,127
|
|
|
1,382
|
|
|
11,127
|
|
|
12,509
|
|
|
3,984
|
|
|
2002
|
|
5-40 yrs.
|
|||||||||
CentreGreen Five
|
|
Office
|
|
Raleigh
|
|
|
|
1,280
|
|
|
—
|
|
|
69
|
|
|
12,781
|
|
|
1,349
|
|
|
12,781
|
|
|
14,130
|
|
|
2,428
|
|
|
2008
|
|
5-40 yrs.
|
|||||||||
Cottonwood
|
|
Office
|
|
Raleigh
|
|
|
|
609
|
|
|
3,244
|
|
|
—
|
|
|
434
|
|
|
609
|
|
|
3,678
|
|
|
4,287
|
|
|
1,728
|
|
|
1983
|
|
5-40 yrs.
|
|||||||||
Dogwood
|
|
Office
|
|
Raleigh
|
|
|
|
766
|
|
|
2,769
|
|
|
—
|
|
|
524
|
|
|
766
|
|
|
3,293
|
|
|
4,059
|
|
|
1,656
|
|
|
1983
|
|
5-40 yrs.
|
|||||||||
EPA
|
|
Office
|
|
Raleigh
|
|
|
|
2,597
|
|
|
—
|
|
|
—
|
|
|
1,670
|
|
|
2,597
|
|
|
1,670
|
|
|
4,267
|
|
|
949
|
|
|
2003
|
|
5-40 yrs.
|
|||||||||
GlenLake - Land
|
|
Office
|
|
Raleigh
|
|
|
|
13,003
|
|
|
—
|
|
|
(6,096
|
)
|
|
114
|
|
|
6,907
|
|
|
114
|
|
|
7,021
|
|
|
33
|
|
|
N/A
|
|
N/A
|
|||||||||
GlenLake One
|
|
Office
|
|
Raleigh
|
|
(2)
|
|
924
|
|
|
—
|
|
|
1,324
|
|
|
21,914
|
|
|
2,248
|
|
|
21,914
|
|
|
24,162
|
|
|
6,652
|
|
|
2002
|
|
5-40 yrs.
|
|||||||||
GlenLake Four
|
|
Office
|
|
Raleigh
|
|
(3)
|
|
1,659
|
|
|
—
|
|
|
493
|
|
|
21,920
|
|
|
2,152
|
|
|
21,920
|
|
|
24,072
|
|
|
4,717
|
|
|
2006
|
|
5-40 yrs.
|
|||||||||
GlenLake Six
|
|
Office
|
|
Raleigh
|
|
|
|
941
|
|
|
—
|
|
|
737
|
|
|
22,186
|
|
|
1,678
|
|
|
22,186
|
|
|
23,864
|
|
|
3,557
|
|
|
2008
|
|
5-40 yrs.
|
|||||||||
701 Raleigh Corporate Center
|
|
Office
|
|
Raleigh
|
|
(3)
|
|
1,304
|
|
|
—
|
|
|
540
|
|
|
13,812
|
|
|
1,844
|
|
|
13,812
|
|
|
15,656
|
|
|
5,570
|
|
|
1996
|
|
5-40 yrs.
|
|||||||||
Highwoods Centre
|
|
Office
|
|
Raleigh
|
|
|
|
531
|
|
|
—
|
|
|
(267
|
)
|
|
7,553
|
|
|
264
|
|
|
7,553
|
|
|
7,817
|
|
|
2,918
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
Highwoods Office Center North - Land
|
|
Office
|
|
Raleigh
|
|
|
|
357
|
|
|
49
|
|
|
—
|
|
|
—
|
|
|
357
|
|
|
49
|
|
|
406
|
|
|
31
|
|
|
N/A
|
|
N/A
|
|||||||||
Highwoods Tower One
|
|
Office
|
|
Raleigh
|
|
|
|
203
|
|
|
16,744
|
|
|
—
|
|
|
3,377
|
|
|
203
|
|
|
20,121
|
|
|
20,324
|
|
|
10,313
|
|
|
1991
|
|
5-40 yrs.
|
|||||||||
Highwoods Tower Two
|
|
Office
|
|
Raleigh
|
|
|
|
365
|
|
|
—
|
|
|
503
|
|
|
21,362
|
|
|
868
|
|
|
21,362
|
|
|
22,230
|
|
|
6,114
|
|
|
2001
|
|
5-40 yrs.
|
|||||||||
Inveresk Parcel 2 - Land
|
|
Office
|
|
Raleigh
|
|
|
|
657
|
|
|
—
|
|
|
197
|
|
|
—
|
|
|
854
|
|
|
—
|
|
|
854
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Inveresk Parcel 3 - Land
|
|
Office
|
|
Raleigh
|
|
|
|
548
|
|
|
—
|
|
|
306
|
|
|
—
|
|
|
854
|
|
|
—
|
|
|
854
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Lake Boone Medical Center
|
|
Office
|
|
Raleigh
|
|
|
|
1,450
|
|
|
6,311
|
|
|
—
|
|
|
257
|
|
|
1,450
|
|
|
6,568
|
|
|
8,018
|
|
|
527
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
4620 Creekstone Drive
|
|
Office
|
|
Raleigh
|
|
|
|
149
|
|
|
—
|
|
|
107
|
|
|
3,153
|
|
|
256
|
|
|
3,153
|
|
|
3,409
|
|
|
982
|
|
|
2001
|
|
5-40 yrs.
|
|||||||||
4825 Creekstone Drive
|
|
Office
|
|
Raleigh
|
|
|
|
398
|
|
|
—
|
|
|
293
|
|
|
9,282
|
|
|
691
|
|
|
9,282
|
|
|
9,973
|
|
|
3,131
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Pamlico
|
|
Office
|
|
Raleigh
|
|
|
|
289
|
|
|
—
|
|
|
—
|
|
|
14,825
|
|
|
289
|
|
|
14,825
|
|
|
15,114
|
|
|
9,943
|
|
|
1980
|
|
5-40 yrs.
|
|||||||||
ParkWest One
|
|
Office
|
|
Raleigh
|
|
|
|
242
|
|
|
—
|
|
|
—
|
|
|
3,315
|
|
|
242
|
|
|
3,315
|
|
|
3,557
|
|
|
946
|
|
|
2001
|
|
5-40 yrs.
|
|||||||||
ParkWest Two
|
|
Office
|
|
Raleigh
|
|
|
|
356
|
|
|
—
|
|
|
—
|
|
|
4,099
|
|
|
356
|
|
|
4,099
|
|
|
4,455
|
|
|
1,574
|
|
|
2001
|
|
5-40 yrs.
|
|||||||||
ParkWest Three - Land - Weston
|
|
Office
|
|
Raleigh
|
|
|
|
306
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
306
|
|
|
—
|
|
|
306
|
|
|
—
|
|
|
N/A
|
|
5-40 yrs.
|
HIGHWOODS PROPERTIES, INC.
HIGHWOODS REALTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)
|
|||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
Initial Costs
|
|
Costs Capitalized
Subsequent to
Acquisition
|
|
Gross Value at Close of Period
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Description
|
|
Segment
Type
|
|
City
|
|
2012
Encumbrance
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Total
Assets
|
|
Accumulated
Depreciation
|
|
Date of
Construction
|
|
Life on
Which
Depreciation
is
Calculated
|
|||||||||||||||||
Progress Center Renovation
|
|
Office
|
|
Raleigh
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
362
|
|
|
—
|
|
|
362
|
|
|
362
|
|
|
215
|
|
|
2003
|
|
5-40 yrs.
|
|||||||||
Raleigh Corp Center Lot D
|
|
Office
|
|
Raleigh
|
|
|
|
1,211
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
1,219
|
|
|
—
|
|
|
1,219
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
PNC Plaza
|
|
Office
|
|
Raleigh
|
|
45,662
|
|
1,206
|
|
|
—
|
|
|
—
|
|
|
71,553
|
|
|
1,206
|
|
|
71,553
|
|
|
72,759
|
|
|
9,831
|
|
|
2008
|
|
5-40 yrs.
|
|||||||||
Rexwoods Center I
|
|
Office
|
|
Raleigh
|
|
|
|
878
|
|
|
3,730
|
|
|
—
|
|
|
1,224
|
|
|
878
|
|
|
4,954
|
|
|
5,832
|
|
|
2,798
|
|
|
1990
|
|
5-40 yrs.
|
|||||||||
Rexwoods Center II
|
|
Office
|
|
Raleigh
|
|
|
|
362
|
|
|
1,818
|
|
|
—
|
|
|
1,001
|
|
|
362
|
|
|
2,819
|
|
|
3,181
|
|
|
930
|
|
|
1993
|
|
5-40 yrs.
|
|||||||||
Rexwoods Center III
|
|
Office
|
|
Raleigh
|
|
|
|
919
|
|
|
2,816
|
|
|
—
|
|
|
751
|
|
|
919
|
|
|
3,567
|
|
|
4,486
|
|
|
1,889
|
|
|
1992
|
|
5-40 yrs.
|
|||||||||
Rexwoods Center IV
|
|
Office
|
|
Raleigh
|
|
|
|
586
|
|
|
—
|
|
|
—
|
|
|
3,888
|
|
|
586
|
|
|
3,888
|
|
|
4,474
|
|
|
1,574
|
|
|
1995
|
|
5-40 yrs.
|
|||||||||
Rexwoods Center V
|
|
Office
|
|
Raleigh
|
|
|
|
1,301
|
|
|
—
|
|
|
184
|
|
|
5,241
|
|
|
1,485
|
|
|
5,241
|
|
|
6,726
|
|
|
1,942
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
Riverbirch
|
|
Office
|
|
Raleigh
|
|
|
|
469
|
|
|
4,038
|
|
|
23
|
|
|
6,409
|
|
|
492
|
|
|
10,447
|
|
|
10,939
|
|
|
599
|
|
|
1987
|
|
5-40 yrs.
|
|||||||||
Situs I
|
|
Office
|
|
Raleigh
|
|
|
|
692
|
|
|
4,646
|
|
|
178
|
|
|
(1,189
|
)
|
|
870
|
|
|
3,457
|
|
|
4,327
|
|
|
1,334
|
|
|
1996
|
|
5-40 yrs.
|
|||||||||
Situs II
|
|
Office
|
|
Raleigh
|
|
|
|
718
|
|
|
6,254
|
|
|
181
|
|
|
(1,081
|
)
|
|
899
|
|
|
5,173
|
|
|
6,072
|
|
|
1,857
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
Situs III
|
|
Office
|
|
Raleigh
|
|
|
|
440
|
|
|
4,078
|
|
|
119
|
|
|
(1,008
|
)
|
|
559
|
|
|
3,070
|
|
|
3,629
|
|
|
1,025
|
|
|
2000
|
|
5-40 yrs.
|
|||||||||
Six Forks Center I
|
|
Office
|
|
Raleigh
|
|
|
|
666
|
|
|
2,665
|
|
|
—
|
|
|
1,268
|
|
|
666
|
|
|
3,933
|
|
|
4,599
|
|
|
1,774
|
|
|
1982
|
|
5-40 yrs.
|
|||||||||
Six Forks Center II
|
|
Office
|
|
Raleigh
|
|
|
|
1,086
|
|
|
4,533
|
|
|
—
|
|
|
1,582
|
|
|
1,086
|
|
|
6,115
|
|
|
7,201
|
|
|
2,803
|
|
|
1983
|
|
5-40 yrs.
|
|||||||||
Six Forks Center III
|
|
Office
|
|
Raleigh
|
|
|
|
862
|
|
|
4,411
|
|
|
—
|
|
|
1,897
|
|
|
862
|
|
|
6,308
|
|
|
7,170
|
|
|
2,956
|
|
|
1987
|
|
5-40 yrs.
|
|||||||||
Smoketree Tower
|
|
Office
|
|
Raleigh
|
|
|
|
2,353
|
|
|
11,743
|
|
|
—
|
|
|
4,245
|
|
|
2,353
|
|
|
15,988
|
|
|
18,341
|
|
|
7,083
|
|
|
1984
|
|
5-40 yrs.
|
|||||||||
4601 Creekstone Drive
|
|
Office
|
|
Raleigh
|
|
|
|
255
|
|
|
—
|
|
|
217
|
|
|
5,184
|
|
|
472
|
|
|
5,184
|
|
|
5,656
|
|
|
1,945
|
|
|
1997
|
|
5-40 yrs.
|
|||||||||
Weston - Land
|
|
Office
|
|
Raleigh
|
|
|
|
22,771
|
|
|
—
|
|
|
(8,938
|
)
|
|
—
|
|
|
13,833
|
|
|
—
|
|
|
13,833
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
4625 Creekstone Drive
|
|
Office
|
|
Raleigh
|
|
|
|
458
|
|
|
—
|
|
|
268
|
|
|
5,142
|
|
|
726
|
|
|
5,142
|
|
|
5,868
|
|
|
2,200
|
|
|
1995
|
|
5-40 yrs.
|
|||||||||
11000 Weston Parkway
|
|
Office
|
|
Raleigh
|
|
|
|
2,651
|
|
|
18,850
|
|
|
—
|
|
|
233
|
|
|
2,651
|
|
|
19,083
|
|
|
21,734
|
|
|
572
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
Other Property
|
|
Other
|
|
Raleigh
|
|
|
|
24,976
|
|
|
9,495
|
|
|
(23,151
|
)
|
|
4,574
|
|
|
1,825
|
|
|
14,069
|
|
|
15,894
|
|
|
7,467
|
|
|
N/A
|
|
N/A
|
|||||||||
Richmond, VA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
4900 Cox Road
|
|
Office
|
|
Richmond
|
|
|
|
1,324
|
|
|
5,311
|
|
|
—
|
|
|
3,006
|
|
|
1,324
|
|
|
8,317
|
|
|
9,641
|
|
|
3,605
|
|
|
1991
|
|
5-40 yrs.
|
|||||||||
Colonnade Building
|
|
Office
|
|
Richmond
|
|
(2)
|
|
1,364
|
|
|
6,105
|
|
|
—
|
|
|
722
|
|
|
1,364
|
|
|
6,827
|
|
|
8,191
|
|
|
1,967
|
|
|
2003
|
|
5-40 yrs.
|
|||||||||
Dominion Place - Pitts Parcel - Land
|
|
Office
|
|
Richmond
|
|
|
|
1,101
|
|
|
—
|
|
|
(189
|
)
|
|
—
|
|
|
912
|
|
|
—
|
|
|
912
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Markel 4521
|
|
Office
|
|
Richmond
|
|
10,142
|
|
1,581
|
|
|
13,299
|
|
|
—
|
|
|
(1,746
|
)
|
|
1,581
|
|
|
11,553
|
|
|
13,134
|
|
|
3,683
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Grove Park I
|
|
Office
|
|
Richmond
|
|
|
|
713
|
|
|
—
|
|
|
319
|
|
|
5,230
|
|
|
1,032
|
|
|
5,230
|
|
|
6,262
|
|
|
1,974
|
|
|
1997
|
|
5-40 yrs.
|
|||||||||
Hamilton Beach/Proctor-Silex
|
|
Office
|
|
Richmond
|
|
|
|
1,086
|
|
|
4,345
|
|
|
—
|
|
|
2,025
|
|
|
1,086
|
|
|
6,370
|
|
|
7,456
|
|
|
3,028
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
Highwoods Commons
|
|
Office
|
|
Richmond
|
|
|
|
521
|
|
|
—
|
|
|
446
|
|
|
3,343
|
|
|
967
|
|
|
3,343
|
|
|
4,310
|
|
|
1,133
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Highwoods One
|
|
Office
|
|
Richmond
|
|
|
|
1,688
|
|
|
—
|
|
|
—
|
|
|
11,014
|
|
|
1,688
|
|
|
11,014
|
|
|
12,702
|
|
|
4,249
|
|
|
1996
|
|
5-40 yrs.
|
|||||||||
Highwoods Two
|
|
Office
|
|
Richmond
|
|
(2)
|
|
786
|
|
|
—
|
|
|
213
|
|
|
6,070
|
|
|
999
|
|
|
6,070
|
|
|
7,069
|
|
|
2,370
|
|
|
1997
|
|
5-40 yrs.
|
HIGHWOODS PROPERTIES, INC.
HIGHWOODS REALTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)
|
|||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
Initial Costs
|
|
Costs Capitalized
Subsequent to
Acquisition
|
|
Gross Value at Close of Period
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Description
|
|
Segment
Type
|
|
City
|
|
2012
Encumbrance
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Total
Assets
|
|
Accumulated
Depreciation
|
|
Date of
Construction
|
|
Life on
Which
Depreciation
is
Calculated
|
|||||||||||||||||
Highwoods Five
|
|
Office
|
|
Richmond
|
|
|
|
783
|
|
|
—
|
|
|
—
|
|
|
5,339
|
|
|
783
|
|
|
5,339
|
|
|
6,122
|
|
|
1,961
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
Highwoods Plaza
|
|
Office
|
|
Richmond
|
|
|
|
909
|
|
|
—
|
|
|
176
|
|
|
5,719
|
|
|
1,085
|
|
|
5,719
|
|
|
6,804
|
|
|
1,785
|
|
|
2000
|
|
5-40 yrs.
|
|||||||||
Markel 4551
|
|
Office
|
|
Richmond
|
|
4,809
|
|
1,300
|
|
|
6,958
|
|
|
(144
|
)
|
|
(414
|
)
|
|
1,156
|
|
|
6,544
|
|
|
7,700
|
|
|
1,475
|
|
|
1987
|
|
5-40 yrs.
|
|||||||||
Innslake Center
|
|
Office
|
|
Richmond
|
|
|
|
845
|
|
|
—
|
|
|
195
|
|
|
5,396
|
|
|
1,040
|
|
|
5,396
|
|
|
6,436
|
|
|
1,521
|
|
|
2001
|
|
5-40 yrs.
|
|||||||||
Highwoods Centre
|
|
Office
|
|
Richmond
|
|
|
|
1,205
|
|
|
4,825
|
|
|
—
|
|
|
1,098
|
|
|
1,205
|
|
|
5,923
|
|
|
7,128
|
|
|
2,374
|
|
|
1990
|
|
5-40 yrs.
|
|||||||||
Markel 4501
|
|
Office
|
|
Richmond
|
|
7,992
|
|
1,300
|
|
|
13,259
|
|
|
72
|
|
|
(4,410
|
)
|
|
1,372
|
|
|
8,849
|
|
|
10,221
|
|
|
2,013
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
Markel 4600
|
|
Office
|
|
Richmond
|
|
10,142
|
|
1,700
|
|
|
17,081
|
|
|
(386
|
)
|
|
(5,389
|
)
|
|
1,314
|
|
|
11,692
|
|
|
13,006
|
|
|
2,617
|
|
|
1989
|
|
5-40 yrs.
|
|||||||||
North Park
|
|
Office
|
|
Richmond
|
|
|
|
2,163
|
|
|
8,659
|
|
|
(14
|
)
|
|
1,846
|
|
|
2,149
|
|
|
10,505
|
|
|
12,654
|
|
|
4,849
|
|
|
1989
|
|
5-40 yrs.
|
|||||||||
North Shore Commons I
|
|
Office
|
|
Richmond
|
|
(2)
|
|
951
|
|
|
—
|
|
|
—
|
|
|
11,361
|
|
|
951
|
|
|
11,361
|
|
|
12,312
|
|
|
3,189
|
|
|
2002
|
|
5-40 yrs.
|
|||||||||
North Shore Commons II
|
|
Office
|
|
Richmond
|
|
(2)
|
|
2,067
|
|
|
—
|
|
|
(103
|
)
|
|
11,075
|
|
|
1,964
|
|
|
11,075
|
|
|
13,039
|
|
|
2,215
|
|
|
2007
|
|
5-40 yrs.
|
|||||||||
North Shore Commons C - Land
|
|
Office
|
|
Richmond
|
|
|
|
1,497
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,497
|
|
|
—
|
|
|
1,497
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
North Shore Commons D - Land
|
|
Office
|
|
Richmond
|
|
|
|
1,261
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,261
|
|
|
—
|
|
|
1,261
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Nucklos Corner Land
|
|
Office
|
|
Richmond
|
|
|
|
1,259
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,259
|
|
|
—
|
|
|
1,259
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
One Shockoe Plaza
|
|
Office
|
|
Richmond
|
|
|
|
—
|
|
|
—
|
|
|
356
|
|
|
15,164
|
|
|
356
|
|
|
15,164
|
|
|
15,520
|
|
|
6,684
|
|
|
1996
|
|
5-40 yrs.
|
|||||||||
Pavilion Land
|
|
Office
|
|
Richmond
|
|
|
|
181
|
|
|
46
|
|
|
20
|
|
|
(46
|
)
|
|
201
|
|
|
—
|
|
|
201
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Lake Brook Commons
|
|
Office
|
|
Richmond
|
|
|
|
1,600
|
|
|
8,864
|
|
|
—
|
|
|
2,063
|
|
|
1,600
|
|
|
10,927
|
|
|
12,527
|
|
|
1,332
|
|
|
1996
|
|
5-40 yrs.
|
|||||||||
Sadler & Cox Land
|
|
Office
|
|
Richmond
|
|
|
|
1,535
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,535
|
|
|
—
|
|
|
1,535
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
4840 Cox Road
|
|
Office
|
|
Richmond
|
|
(2)
|
|
1,918
|
|
|
—
|
|
|
337
|
|
|
13,550
|
|
|
2,255
|
|
|
13,550
|
|
|
15,805
|
|
|
4,075
|
|
|
2005
|
|
5-40 yrs.
|
|||||||||
Stony Point F Land
|
|
Office
|
|
Richmond
|
|
|
|
1,841
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,841
|
|
|
—
|
|
|
1,841
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Stony Point I
|
|
Office
|
|
Richmond
|
|
(2)
|
|
1,384
|
|
|
11,630
|
|
|
59
|
|
|
2,480
|
|
|
1,443
|
|
|
14,110
|
|
|
15,553
|
|
|
5,268
|
|
|
1990
|
|
5-40 yrs.
|
|||||||||
Stony Point II
|
|
Office
|
|
Richmond
|
|
|
|
1,240
|
|
|
—
|
|
|
—
|
|
|
11,826
|
|
|
1,240
|
|
|
11,826
|
|
|
13,066
|
|
|
3,896
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Stony Point III
|
|
Office
|
|
Richmond
|
|
(2)
|
|
995
|
|
|
—
|
|
|
—
|
|
|
9,270
|
|
|
995
|
|
|
9,270
|
|
|
10,265
|
|
|
2,738
|
|
|
2002
|
|
5-40 yrs.
|
|||||||||
Stony Point IV
|
|
Office
|
|
Richmond
|
|
|
|
955
|
|
|
—
|
|
|
—
|
|
|
11,459
|
|
|
955
|
|
|
11,459
|
|
|
12,414
|
|
|
2,868
|
|
|
2006
|
|
5-40 yrs.
|
|||||||||
Technology Park I
|
|
Office
|
|
Richmond
|
|
|
|
541
|
|
|
2,166
|
|
|
—
|
|
|
363
|
|
|
541
|
|
|
2,529
|
|
|
3,070
|
|
|
1,054
|
|
|
1991
|
|
5-40 yrs.
|
|||||||||
Technology Park II
|
|
Office
|
|
Richmond
|
|
|
|
264
|
|
|
1,058
|
|
|
—
|
|
|
109
|
|
|
264
|
|
|
1,167
|
|
|
1,431
|
|
|
507
|
|
|
1991
|
|
5-40 yrs.
|
|||||||||
Vantage Place-A
|
|
Office
|
|
Richmond
|
|
(2)
|
|
203
|
|
|
811
|
|
|
—
|
|
|
168
|
|
|
203
|
|
|
979
|
|
|
1,182
|
|
|
449
|
|
|
1987
|
|
5-40 yrs.
|
|||||||||
Vantage Place-B
|
|
Office
|
|
Richmond
|
|
(2)
|
|
233
|
|
|
931
|
|
|
—
|
|
|
254
|
|
|
233
|
|
|
1,185
|
|
|
1,418
|
|
|
513
|
|
|
1988
|
|
5-40 yrs.
|
|||||||||
Vantage Place-C
|
|
Office
|
|
Richmond
|
|
(2)
|
|
235
|
|
|
940
|
|
|
—
|
|
|
282
|
|
|
235
|
|
|
1,222
|
|
|
1,457
|
|
|
542
|
|
|
1987
|
|
5-40 yrs.
|
|||||||||
Vantage Place-D
|
|
Office
|
|
Richmond
|
|
(2)
|
|
218
|
|
|
873
|
|
|
—
|
|
|
283
|
|
|
218
|
|
|
1,156
|
|
|
1,374
|
|
|
515
|
|
|
1988
|
|
5-40 yrs.
|
|||||||||
Vantage Pointe
|
|
Office
|
|
Richmond
|
|
(2)
|
|
1,089
|
|
|
4,500
|
|
|
—
|
|
|
1,279
|
|
|
1,089
|
|
|
5,779
|
|
|
6,868
|
|
|
2,547
|
|
|
1990
|
|
5-40 yrs.
|
|||||||||
Virginia Mutual
|
|
Office
|
|
Richmond
|
|
|
|
1,301
|
|
|
6,036
|
|
|
—
|
|
|
709
|
|
|
1,301
|
|
|
6,745
|
|
|
8,046
|
|
|
2,137
|
|
|
1996
|
|
5-40 yrs.
|
HIGHWOODS PROPERTIES, INC.
HIGHWOODS REALTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)
|
|||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
Initial Costs
|
|
Costs Capitalized
Subsequent to
Acquisition
|
|
Gross Value at Close of Period
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Description
|
|
Segment
Type
|
|
City
|
|
2012
Encumbrance
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Total
Assets
|
|
Accumulated
Depreciation
|
|
Date of
Construction
|
|
Life on
Which
Depreciation
is
Calculated
|
|||||||||||||||||
Waterfront Plaza
|
|
Office
|
|
Richmond
|
|
|
|
585
|
|
|
2,347
|
|
|
—
|
|
|
1,180
|
|
|
585
|
|
|
3,527
|
|
|
4,112
|
|
|
1,572
|
|
|
1988
|
|
5-40 yrs.
|
|||||||||
West Shore I
|
|
Office
|
|
Richmond
|
|
|
|
332
|
|
|
1,431
|
|
|
—
|
|
|
195
|
|
|
332
|
|
|
1,626
|
|
|
1,958
|
|
|
668
|
|
|
1995
|
|
5-40 yrs.
|
|||||||||
West Shore II
|
|
Office
|
|
Richmond
|
|
|
|
489
|
|
|
2,181
|
|
|
—
|
|
|
593
|
|
|
489
|
|
|
2,774
|
|
|
3,263
|
|
|
1,096
|
|
|
1995
|
|
5-40 yrs.
|
|||||||||
West Shore III
|
|
Office
|
|
Richmond
|
|
|
|
961
|
|
|
—
|
|
|
141
|
|
|
4,295
|
|
|
1,102
|
|
|
4,295
|
|
|
5,397
|
|
|
1,505
|
|
|
1997
|
|
5-40 yrs.
|
|||||||||
Tampa, FL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
380 Park Place
|
|
Office
|
|
Tampa
|
|
|
|
1,502
|
|
|
—
|
|
|
240
|
|
|
6,946
|
|
|
1,742
|
|
|
6,946
|
|
|
8,688
|
|
|
2,059
|
|
|
2001
|
|
5-40 yrs.
|
|||||||||
4200 Cypress
|
|
Office
|
|
Tampa
|
|
|
|
2,673
|
|
|
16,470
|
|
|
—
|
|
|
897
|
|
|
2,673
|
|
|
17,367
|
|
|
20,040
|
|
|
2,425
|
|
|
1989
|
|
5-40 yrs.
|
|||||||||
Anchor Plaza
|
|
Office
|
|
Tampa
|
|
|
|
1,281
|
|
|
11,318
|
|
|
—
|
|
|
1,241
|
|
|
1,281
|
|
|
12,559
|
|
|
13,840
|
|
|
4,773
|
|
|
1988
|
|
5-40 yrs.
|
|||||||||
Avion Park - Land
|
|
Office
|
|
Tampa
|
|
|
|
5,237
|
|
|
—
|
|
|
—
|
|
|
1,487
|
|
|
5,237
|
|
|
1,487
|
|
|
6,724
|
|
|
158
|
|
|
N/A
|
|
N/A
|
|||||||||
Bayshore Place
|
|
Office
|
|
Tampa
|
|
|
|
2,276
|
|
|
11,817
|
|
|
—
|
|
|
1,244
|
|
|
2,276
|
|
|
13,061
|
|
|
15,337
|
|
|
4,960
|
|
|
1990
|
|
5-40 yrs.
|
|||||||||
General Services Administration
|
|
Office
|
|
Tampa
|
|
(3)
|
|
4,054
|
|
|
—
|
|
|
406
|
|
|
27,273
|
|
|
4,460
|
|
|
27,273
|
|
|
31,733
|
|
|
6,330
|
|
|
2005
|
|
5-40 yrs.
|
|||||||||
Feather Sound Corporate Ctr II
|
|
Office
|
|
Tampa
|
|
|
|
802
|
|
|
7,463
|
|
|
(802
|
)
|
|
(7,463
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
Harborview Plaza
|
|
Office
|
|
Tampa
|
|
|
|
3,537
|
|
|
29,944
|
|
|
969
|
|
|
(5,138
|
)
|
|
4,506
|
|
|
24,806
|
|
|
29,312
|
|
|
6,143
|
|
|
2001
|
|
5-40 yrs.
|
|||||||||
Highwoods Preserve Building I
|
|
Office
|
|
Tampa
|
|
(3)
|
|
991
|
|
|
—
|
|
|
—
|
|
|
22,216
|
|
|
991
|
|
|
22,216
|
|
|
23,207
|
|
|
7,350
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Highwoods Preserve - Land
|
|
Office
|
|
Tampa
|
|
|
|
1,485
|
|
|
—
|
|
|
485
|
|
|
—
|
|
|
1,970
|
|
|
—
|
|
|
1,970
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Highwoods Preserve Building V
|
|
Office
|
|
Tampa
|
|
(3)
|
|
881
|
|
|
—
|
|
|
—
|
|
|
27,282
|
|
|
881
|
|
|
27,282
|
|
|
28,163
|
|
|
10,195
|
|
|
2001
|
|
5-40 yrs.
|
|||||||||
Highwoods Bay Center I
|
|
Office
|
|
Tampa
|
|
|
|
3,565
|
|
|
—
|
|
|
(64
|
)
|
|
37,754
|
|
|
3,501
|
|
|
37,754
|
|
|
41,255
|
|
|
7,307
|
|
|
2007
|
|
5-40 yrs.
|
|||||||||
HIW Bay Center II - Land
|
|
Office
|
|
Tampa
|
|
|
|
3,482
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,482
|
|
|
—
|
|
|
3,482
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Highwoods Preserve Building VII
|
|
Office
|
|
Tampa
|
|
|
|
790
|
|
|
—
|
|
|
—
|
|
|
12,498
|
|
|
790
|
|
|
12,498
|
|
|
13,288
|
|
|
1,781
|
|
|
2007
|
|
5-40 yrs.
|
|||||||||
HIW Preserve VII Garage
|
|
Office
|
|
Tampa
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,789
|
|
|
—
|
|
|
6,789
|
|
|
6,789
|
|
|
1,004
|
|
|
2007
|
|
5-40 yrs.
|
|||||||||
Horizon
|
|
Office
|
|
Tampa
|
|
|
|
—
|
|
|
6,257
|
|
|
—
|
|
|
2,724
|
|
|
—
|
|
|
8,981
|
|
|
8,981
|
|
|
3,850
|
|
|
1980
|
|
5-40 yrs.
|
|||||||||
LakePointe One
|
|
Office
|
|
Tampa
|
|
|
|
2,106
|
|
|
89
|
|
|
—
|
|
|
36,297
|
|
|
2,106
|
|
|
36,386
|
|
|
38,492
|
|
|
13,845
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
LakePointe Two
|
|
Office
|
|
Tampa
|
|
|
|
2,000
|
|
|
15,848
|
|
|
672
|
|
|
7,803
|
|
|
2,672
|
|
|
23,651
|
|
|
26,323
|
|
|
7,974
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Lakeside
|
|
Office
|
|
Tampa
|
|
|
|
—
|
|
|
7,369
|
|
|
—
|
|
|
965
|
|
|
—
|
|
|
8,334
|
|
|
8,334
|
|
|
3,172
|
|
|
1978
|
|
5-40 yrs.
|
|||||||||
Lakeside/Parkside Garage
|
|
Office
|
|
Tampa
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,571
|
|
|
—
|
|
|
3,571
|
|
|
3,571
|
|
|
658
|
|
|
2004
|
|
5-40 yrs.
|
|||||||||
One Harbour Place
|
|
Office
|
|
Tampa
|
|
|
|
2,016
|
|
|
25,252
|
|
|
—
|
|
|
6,730
|
|
|
2,016
|
|
|
31,982
|
|
|
33,998
|
|
|
10,983
|
|
|
1985
|
|
5-40 yrs.
|
|||||||||
Parkside
|
|
Office
|
|
Tampa
|
|
|
|
—
|
|
|
9,407
|
|
|
—
|
|
|
3,502
|
|
|
—
|
|
|
12,909
|
|
|
12,909
|
|
|
5,864
|
|
|
1979
|
|
5-40 yrs.
|
|||||||||
Pavilion
|
|
Office
|
|
Tampa
|
|
|
|
—
|
|
|
16,394
|
|
|
—
|
|
|
3,209
|
|
|
—
|
|
|
19,603
|
|
|
19,603
|
|
|
7,501
|
|
|
1982
|
|
5-40 yrs.
|
|||||||||
Pavilion Parking Garage
|
|
Office
|
|
Tampa
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,689
|
|
|
—
|
|
|
5,689
|
|
|
5,689
|
|
|
1,851
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Spectrum
|
|
Office
|
|
Tampa
|
|
|
|
1,454
|
|
|
14,502
|
|
|
—
|
|
|
5,261
|
|
|
1,454
|
|
|
19,763
|
|
|
21,217
|
|
|
7,447
|
|
|
1984
|
|
5-40 yrs.
|
|||||||||
Tower Place
|
|
Office
|
|
Tampa
|
|
(3)
|
|
3,218
|
|
|
19,898
|
|
|
—
|
|
|
2,764
|
|
|
3,218
|
|
|
22,662
|
|
|
25,880
|
|
|
9,467
|
|
|
1988
|
|
5-40 yrs.
|
HIGHWOODS PROPERTIES, INC.
HIGHWOODS REALTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)
|
|||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
Initial Costs
|
|
Costs Capitalized
Subsequent to
Acquisition
|
|
Gross Value at Close of Period
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Description
|
|
Segment
Type
|
|
City
|
|
2012
Encumbrance
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Total
Assets
|
|
Accumulated
Depreciation
|
|
Date of
Construction
|
|
Life on
Which
Depreciation
is
Calculated
|
|||||||||||||||||
Westshore Square
|
|
Office
|
|
Tampa
|
|
|
|
1,126
|
|
|
5,186
|
|
|
—
|
|
|
1,641
|
|
|
1,126
|
|
|
6,827
|
|
|
7,953
|
|
|
2,258
|
|
|
1976
|
|
5-40 yrs.
|
|||||||||
Independence Park - Land
|
|
Office
|
|
Tampa
|
|
|
|
4,943
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,943
|
|
|
—
|
|
|
4,943
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Independence Park I
|
|
Office
|
|
Tampa
|
|
|
|
2,531
|
|
|
4,526
|
|
|
—
|
|
|
4,716
|
|
|
2,531
|
|
|
9,242
|
|
|
11,773
|
|
|
561
|
|
|
1983
|
|
5-40 yrs.
|
|||||||||
|
|
|
|
|
|
|
|
533,198
|
|
|
1,809,760
|
|
|
(41,202
|
)
|
|
1,494,708
|
|
|
491,996
|
|
|
3,304,468
|
|
|
3,796,464
|
|
|
947,567
|
|
|
|
|
|
(1)
|
These assets are pledged as collateral for a $67,604,000 first mortgage loan.
|
(2)
|
These assets are pledged as collateral for a $116,977,000 first mortgage loan.
|
(3)
|
These assets are pledged as collateral for a $110,671,000 first mortgage loan.
|
(4)
|
These assets are pledged as collateral for a $120,924,000 first mortgage loan.
|
Highwoods Properties, Inc.
|
|
By:
|
/s/ Edward J. Fritsch
|
|
Edward J. Fritsch
|
|
President and Chief Executive Officer
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ O. Temple Sloan, Jr.
|
|
Chairman of the Board of Directors
|
|
February 12, 2013
|
O. Temple Sloan, Jr.
|
|
|
|
|
|
|
|
|
|
/s/ Edward J. Fritsch
|
|
President, Chief Executive Officer and Director
|
|
February 12, 2013
|
Edward J. Fritsch
|
|
|
|
|
|
|
|
|
|
/s/ Thomas W. Adler
|
|
Director
|
|
February 12, 2013
|
Thomas W. Adler
|
|
|
|
|
|
|
|
|
|
/s/ Gene H. Anderson
|
|
Director
|
|
February 12, 2013
|
Gene H. Anderson
|
|
|
|
|
|
|
|
|
|
/s/ David J. Hartzell
|
|
Director
|
|
February 12, 2013
|
David J. Hartzell
|
|
|
|
|
|
|
|
|
|
/s/ Sherry A. Kellett
|
|
Director
|
|
February 12, 2013
|
Sherry A. Kellett
|
|
|
|
|
|
|
|
|
|
/s/ Mark F. Mulhern
|
|
Director
|
|
February 12, 2013
|
Mark F. Mulhern
|
|
|
|
|
|
|
|
|
|
/s/ L. Glenn Orr, Jr.
|
|
Director
|
|
February 12, 2013
|
L. Glenn Orr, Jr.
|
|
|
|
|
|
|
|
|
|
/s/ Terry L. Stevens
|
|
Senior Vice President and Chief Financial Officer
|
|
February 12, 2013
|
Terry L. Stevens
|
|
|
|
|
|
|
|
|
|
/s/ Daniel L. Clemmens
|
|
Vice President and Chief Accounting Officer
|
|
February 12, 2013
|
Daniel L. Clemmens
|
|
|
|
|
Highwoods Realty Limited Partnership
|
|
By:
|
Highwoods Properties, Inc., its sole general partner
|
By:
|
/s/ Edward J. Fritsch
|
|
Edward J. Fritsch
|
|
President and Chief Executive Officer
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ O. Temple Sloan, Jr.
|
|
Chairman of the Board of Directors of the General Partner
|
|
February 12, 2013
|
O. Temple Sloan, Jr.
|
|
|
|
|
|
|
|
|
|
/s/ Edward J. Fritsch
|
|
President, Chief Executive Officer and Director of the General Partner
|
|
February 12, 2013
|
Edward J. Fritsch
|
|
|
|
|
|
|
|
|
|
/s/ Thomas W. Adler
|
|
Director of the General Partner
|
|
February 12, 2013
|
Thomas W. Adler
|
|
|
|
|
|
|
|
|
|
/s/ Gene H. Anderson
|
|
Director of the General Partner
|
|
February 12, 2013
|
Gene H. Anderson
|
|
|
|
|
|
|
|
|
|
/s/ David J. Hartzell
|
|
Director of the General Partner
|
|
February 12, 2013
|
David J. Hartzell
|
|
|
|
|
|
|
|
|
|
/s/ Sherry A. Kellett
|
|
Director of the General Partner
|
|
February 12, 2013
|
Sherry A. Kellett
|
|
|
|
|
|
|
|
|
|
/s/ Mark F. Mulhern
|
|
Director of the General Partner
|
|
February 12, 2013
|
Mark F. Mulhern
|
|
|
|
|
|
|
|
|
|
/s/ L. Glenn Orr, Jr.
|
|
Director of the General Partner
|
|
February 12, 2013
|
L. Glenn Orr, Jr.
|
|
|
|
|
|
|
|
|
|
/s/ Terry L. Stevens
|
|
Senior Vice President and Chief Financial Officer of the General Partner
|
|
February 12, 2013
|
Terry L. Stevens
|
|
|
|
|
|
|
|
|
|
/s/ Daniel L. Clemmens
|
|
Vice President and Chief Accounting Officer of the General Partner
|
|
February 12, 2013
|
Daniel L. Clemmens
|
|
|
|
|
(a)
|
Position and Duties
.
|
(b)
|
Compensation.
|
|
If to the Executive:
|
|
Highwoods Properties, Inc.
3100 Smoketree Court, Suite 600
Raleigh, North Carolina 27604-1051
Attention: Edward J. Fritsch
|
|
|
|
|
|
If to the Company:
|
|
Highwoods Properties, Inc.
3100 Smoketree Court, Suite 600
Raleigh, North Carolina 27604-1051
Attention: Chairman of the Board of Directors
|
|
|
EXECUTIVE:
|
|
|
|
|
/s/ Edward J. Fritsch
|
|
|
|
Edward J. Fritsch
|
|
|
|
|
|
|
HIGHWOODS PROPERTIES, INC.
|
|
|
|
By:
|
/s/ Jeffrey D. Miller
|
|
|
|
Jeffrey D. Miller
|
|
|
|
Vice President, General Counsel and Secretary
|
|
|
|
|
(a)
|
Position and Duties
.
|
(b)
|
Compensation.
|
|
If to the Executive:
|
|
Highwoods Properties, Inc.
3100 Smoketree Court, Suite 600
Raleigh, North Carolina 27604-1051
Attention: Michael E. Harris
|
|
|
|
|
|
If to the Company:
|
|
Highwoods Properties, Inc.
3100 Smoketree Court, Suite 600
Raleigh, North Carolina 27604-1051
Attention: Chairman of the Board of Directors
|
|
|
EXECUTIVE:
|
|
|
|
|
/s/ Michael E. Harris
|
|
|
|
Michael E. Harris
|
|
|
|
|
|
|
HIGHWOODS PROPERTIES, INC.
|
|
|
|
By:
|
/s/ Edward J. Fritsch
|
|
|
|
Edward J. Fritsch
|
|
|
|
President and Chief Executive Officer
|
|
|
|
|
(a)
|
Position and Duties
.
|
(b)
|
Compensation.
|
|
If to the Executive:
|
|
Highwoods Properties, Inc.
3100 Smoketree Court, Suite 600
Raleigh, North Carolina 27604-1051
Attention: Terry L. Stevens
|
|
|
|
|
|
If to the Company:
|
|
Highwoods Properties, Inc.
3100 Smoketree Court, Suite 600
Raleigh, North Carolina 27604-1051
Attention: Chairman of the Board of Directors
|
|
|
EXECUTIVE:
|
|
|
|
|
/s/ Terry L. Stevens
|
|
|
|
Terry L. Stevens
|
|
|
|
|
|
|
HIGHWOODS PROPERTIES, INC.
|
|
|
|
By:
|
/s/ Edward J. Fritsch
|
|
|
|
Edward J. Fritsch
|
|
|
|
President and Chief Executive Officer
|
|
|
|
|
(a)
|
Position and Duties
.
|
(b)
|
Compensation.
|
|
If to the Executive:
|
|
Highwoods Properties, Inc.
3100 Smoketree Court, Suite 600
Raleigh, North Carolina 27604-1051
Attention: Jeffrey D. Miller
|
|
|
|
|
|
If to the Company:
|
|
Highwoods Properties, Inc.
3100 Smoketree Court, Suite 600
Raleigh, North Carolina 27604-1051
Attention: Chairman of the Board of Directors
|
|
|
EXECUTIVE:
|
|
|
|
|
/s/ Jeffrey D. Miller
|
|
|
|
Jeffrey D. Miller
|
|
|
|
|
|
|
HIGHWOODS PROPERTIES, INC.
|
|
|
|
By:
|
/s/ Edward J. Fritsch
|
|
|
|
Edward J. Fritsch
|
|
|
|
President and Chief Executive Officer
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
2008
|
||||||||||
Earnings:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations before equity in earnings of unconsolidated affiliates
|
|
$
|
45,683
|
|
|
$
|
34,128
|
|
|
$
|
60,271
|
|
|
$
|
34,639
|
|
|
$
|
25,900
|
|
Fixed charges
|
|
98,647
|
|
|
97,535
|
|
|
95,894
|
|
|
92,589
|
|
|
107,999
|
|
|||||
Capitalized interest
|
|
(1,031
|
)
|
|
(589
|
)
|
|
(1,419
|
)
|
|
(4,555
|
)
|
|
(8,312
|
)
|
|||||
Distributions of earnings from unconsolidated affiliates
|
|
4,618
|
|
|
5,029
|
|
|
4,433
|
|
|
4,180
|
|
|
5,994
|
|
|||||
Total earnings
|
|
$
|
147,917
|
|
|
$
|
136,103
|
|
|
$
|
159,179
|
|
|
$
|
126,853
|
|
|
$
|
131,581
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed charges and Preferred Stock dividends:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Contractual interest expense
|
|
$
|
92,838
|
|
|
$
|
91,458
|
|
|
$
|
87,409
|
|
|
$
|
81,703
|
|
|
$
|
92,682
|
|
Amortization of deferred financing costs
|
|
3,685
|
|
|
3,312
|
|
|
3,385
|
|
|
2,760
|
|
|
2,716
|
|
|||||
Financing obligations interest expense
|
|
(409
|
)
|
|
740
|
|
|
2,157
|
|
|
1,963
|
|
|
2,822
|
|
|||||
Capitalized interest
|
|
1,031
|
|
|
589
|
|
|
1,419
|
|
|
4,555
|
|
|
8,312
|
|
|||||
Interest component of rental expense
|
|
1,502
|
|
|
1,436
|
|
|
1,524
|
|
|
1,608
|
|
|
1,467
|
|
|||||
Total fixed charges
|
|
98,647
|
|
|
97,535
|
|
|
95,894
|
|
|
92,589
|
|
|
107,999
|
|
|||||
Preferred Stock dividends
|
|
2,508
|
|
|
4,553
|
|
|
6,708
|
|
|
6,708
|
|
|
9,804
|
|
|||||
Total fixed charges and Preferred Stock dividends
|
|
$
|
101,155
|
|
|
$
|
102,088
|
|
|
$
|
102,602
|
|
|
$
|
99,297
|
|
|
$
|
117,803
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ratio of earnings to fixed charges
|
|
1.50
|
|
|
1.40
|
|
|
1.66
|
|
|
1.37
|
|
|
1.22
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ratio of earnings to combined fixed charges and Preferred Stock dividends
|
|
1.46
|
|
|
1.33
|
|
|
1.55
|
|
|
1.28
|
|
|
1.12
|
|
|
|
|
||||||||||||||||||
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
2008
|
||||||||||
Earnings:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations before equity in earnings of unconsolidated affiliates
|
|
$
|
45,683
|
|
|
$
|
34,128
|
|
|
$
|
60,271
|
|
|
$
|
34,639
|
|
|
$
|
25,840
|
|
Fixed charges
|
|
98,647
|
|
|
97,535
|
|
|
95,894
|
|
|
92,589
|
|
|
107,999
|
|
|||||
Capitalized interest
|
|
(1,031
|
)
|
|
(589
|
)
|
|
(1,419
|
)
|
|
(4,555
|
)
|
|
(8,312
|
)
|
|||||
Distributions of earnings from unconsolidated affiliates
|
|
4,592
|
|
|
5,005
|
|
|
4,377
|
|
|
4,103
|
|
|
5,978
|
|
|||||
Total earnings
|
|
$
|
147,891
|
|
|
$
|
136,079
|
|
|
$
|
159,123
|
|
|
$
|
126,776
|
|
|
$
|
131,505
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed charges and Preferred Unit distributions:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Contractual interest expense
|
|
$
|
92,838
|
|
|
$
|
91,458
|
|
|
$
|
87,409
|
|
|
$
|
81,703
|
|
|
$
|
92,682
|
|
Amortization of deferred financing costs
|
|
3,685
|
|
|
3,312
|
|
|
3,385
|
|
|
2,760
|
|
|
2,716
|
|
|||||
Financing obligations interest expense
|
|
(409
|
)
|
|
740
|
|
|
2,157
|
|
|
1,963
|
|
|
2,822
|
|
|||||
Capitalized interest
|
|
1,031
|
|
|
589
|
|
|
1,419
|
|
|
4,555
|
|
|
8,312
|
|
|||||
Interest component of rental expense
|
|
1,502
|
|
|
1,436
|
|
|
1,524
|
|
|
1,608
|
|
|
1,467
|
|
|||||
Total fixed charges
|
|
98,647
|
|
|
97,535
|
|
|
95,894
|
|
|
92,589
|
|
|
107,999
|
|
|||||
Preferred Unit distributions
|
|
2,508
|
|
|
4,553
|
|
|
6,708
|
|
|
6,708
|
|
|
9,804
|
|
|||||
Total fixed charges and Preferred Unit distributions
|
|
$
|
101,155
|
|
|
$
|
102,088
|
|
|
$
|
102,602
|
|
|
$
|
99,297
|
|
|
$
|
117,803
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ratio of earnings to fixed charges
|
|
1.50
|
|
|
1.40
|
|
|
1.66
|
|
|
1.37
|
|
|
1.22
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ratio of earnings to combined fixed charges and Preferred Unit distributions
|
|
1.46
|
|
|
1.33
|
|
|
1.55
|
|
|
1.28
|
|
|
1.12
|
|
*
|
We have omitted the names of other direct and indirect subsidiaries of Highwoods Properties, Inc. because such other subsidiaries, considered in the aggregate as a single subsidiary, would not constitute a significant subsidiary.
|
*
|
We have omitted the names of other direct and indirect subsidiaries of Highwoods Realty Limited Partnership because such other subsidiaries, considered in the aggregate as a single subsidiary, would not constitute a significant subsidiary.
|
1.
|
I have reviewed this Annual Report on Form 10-K of Highwoods Properties, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
|
4.
|
The Registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:
|
(a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and
|
5.
|
The Registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the Audit Committee of the Registrant’s Board of Directors (or persons performing the equivalent functions):
|
(a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.
|
/s/ Edward J. Fritsch
|
Edward J. Fritsch
President and Chief Executive Officer
|
1.
|
I have reviewed this Annual Report on Form 10-K of Highwoods Properties, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
|
4.
|
The Registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:
|
(a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and
|
5.
|
The Registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the Audit Committee of the Registrant’s Board of Directors (or persons performing the equivalent functions):
|
(a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.
|
/s/ Terry L. Stevens
|
Terry L. Stevens
Senior Vice President and Chief Financial Officer
|
1.
|
I have reviewed this Annual Report on Form 10-K of Highwoods Realty Limited Partnership;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
|
4.
|
The Registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:
|
(a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
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disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and
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5.
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The Registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the Audit Committee of the Registrant’s Board of Directors (or persons performing the equivalent functions):
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(a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and
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(b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.
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/s/ Edward J. Fritsch
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Edward J. Fritsch
President and Chief Executive Officer of the General Partner
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1.
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I have reviewed this Annual Report on Form 10-K of Highwoods Realty Limited Partnership;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
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4.
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The Registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:
|
(a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
|
evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and
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5.
|
The Registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the Audit Committee of the Registrant’s Board of Directors (or persons performing the equivalent functions):
|
(a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.
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/s/ Terry L. Stevens
|
Terry L. Stevens
Senior Vice President and Chief Financial Officer of the General Partner
|
1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Edward J. Fritsch
|
Edward J. Fritsch
President and Chief Executive Officer
|
February 12, 2013
|
1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Terry L. Stevens
|
Terry L. Stevens
Senior Vice President and Chief Financial Officer
|
February 12, 2013
|
1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Operating Partnership.
|
/s/ Edward J. Fritsch
|
Edward J. Fritsch
President and Chief Executive Officer of the General Partner
|
February 12, 2013
|
1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Operating Partnership.
|
/s/ Terry L. Stevens
|
Terry L. Stevens
Senior Vice President and Chief Financial Officer of the General Partner
|
February 12, 2013
|