|
[X]
|
Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
[ ]
|
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
|
Maryland
|
001-13100
|
56-1871668
|
|
|
(State or other jurisdiction
of incorporation or organization)
|
(Commission
File Number)
|
(I.R.S. Employer
Identification Number)
|
|
|
North Carolina
|
000-21731
|
56-1869557
|
|
|
(State or other jurisdiction
of incorporation or organization)
|
(Commission
File Number)
|
(I.R.S. Employer
Identification Number)
|
|
Title of Each Class
|
Name of Each Exchange on Which Registered
|
Common Stock, $.01 par value, of Highwoods Properties, Inc.
|
New York Stock Exchange
|
|
•
|
combined reports better reflect how management and investors view the business as a single operating unit;
|
•
|
combined reports enhance investors' understanding of the Company and the Operating Partnership by enabling them to view the business as a whole and in the same manner as management;
|
•
|
combined reports are more efficient for the Company and the Operating Partnership and result in savings in time, effort and expense; and
|
•
|
combined reports are more efficient for investors by reducing duplicative disclosure and providing a single document for their review.
|
•
|
Item 6 - Selected Financial Data;
|
•
|
Item 9A - Controls and Procedures;
|
•
|
Item 15 - Certifications of CEO and CFO Pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act;
|
•
|
Consolidated Financial Statements; and
|
•
|
the following Notes to Consolidated Financial Statements:
|
•
|
Note 11 - Equity;
|
•
|
Note 16 - Earnings Per Share and Per Unit; and
|
•
|
Note 19 - Quarterly Financial Data.
|
Item No.
|
|
Page
|
|
PART I
|
|
1.
|
||
1A.
|
||
1B.
|
||
2.
|
||
3.
|
||
X.
|
||
|
|
|
|
PART II
|
|
5.
|
||
6.
|
||
7.
|
||
7A.
|
||
8.
|
||
9.
|
||
9A.
|
||
9B.
|
||
|
|
|
|
PART III
|
|
10.
|
||
11.
|
||
12.
|
||
13.
|
||
14.
|
||
|
|
|
|
PART IV
|
|
15.
|
•
|
owning high-quality, differentiated office buildings in the BBDs of our core markets;
|
•
|
improving the operating results of our properties through concentrated leasing, asset management, cost control and customer service efforts;
|
•
|
developing and acquiring office buildings in BBDs that improve the overall quality of our portfolio and generate attractive returns over the long term for our stockholders;
|
•
|
disposing of properties no longer considered to be core assets primarily due to location, age, quality and/or overall strategic fit; and
|
•
|
maintaining a balance sheet with ample liquidity to meet our funding needs and growth prospects.
|
•
|
the unavailability of favorable 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.
|
•
|
we could become engaged in a dispute with any of our joint venture partners that might affect our ability to develop or operate a property;
|
•
|
our joint ventures are subject to debt and the refinancing of such debt may require equity capital calls;
|
•
|
our joint venture partners may default on their obligations necessitating that we fulfill their obligation ourselves;
|
•
|
our joint venture partners may have different objectives than we have regarding the appropriate timing and terms of any renovation, sale or refinancing of properties;
|
•
|
our joint venture partners may be structured differently than us for tax purposes and this could create conflicts of interest; and
|
•
|
our joint venture partners may have competing interests in our markets that could create conflicts of interest.
|
•
|
disrupt the proper functioning of our networks and systems and therefore our operations and/or those of certain of our customers;
|
•
|
result in misstated financial reports, violations of loan covenants, missed reporting deadlines and/or missed permitting deadlines;
|
•
|
result in our inability to properly monitor our compliance with the rules and regulations regarding our qualification as a REIT;
|
•
|
result in the unauthorized access to, and destruction, loss, theft, misappropriation or release of, proprietary, confidential, sensitive or otherwise valuable information of ours or others, which others could use to compete against us or which could expose us to damage claims by third-parties for disruptive, destructive or otherwise harmful purposes and outcomes;
|
•
|
result in our inability to maintain the building systems relied upon by our customers for the efficient use of their leased space;
|
•
|
require significant management attention and resources to remedy any damages that result;
|
•
|
subject us to claims for breach of contract, damages, credits, penalties or termination of leases or other agreements; or
|
•
|
damage our reputation among our customers and investors generally.
|
•
|
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 our Common Stock;
|
•
|
changes in our credit ratings;
|
•
|
the issuance of additional shares of Common Stock, or the perception that such issuances might occur, including under our equity distribution agreements; and
|
•
|
any negative change in the level or stability of our dividend.
|
•
|
projections with respect to the future REIT taxable income expected to be generated by the Company;
|
•
|
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, including from the sales of assets generating taxable gains to the extent such assets are not sold in a tax-deferred exchange under Section 1031 of the Internal Revenue Code or another tax-free or tax-deferred transaction.
|
•
|
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 establish the preferences and rights of any class of preferred stock issued. These actions can be taken without
|
•
|
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 corporation 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.
|
Market
|
|
Rentable
Square Feet
|
|
Occupancy
|
|
Percentage of Annualized Cash Rental Revenue (1)
|
|||
Atlanta
|
|
5,244,000
|
|
|
88.7
|
%
|
|
18.9
|
%
|
Raleigh
|
|
4,824,000
|
|
|
94.7
|
|
|
17.7
|
|
Nashville
|
|
4,053,000
|
|
|
95.7
|
|
|
17.2
|
|
Tampa
|
|
3,822,000
|
|
|
93.6
|
|
|
14.9
|
|
Pittsburgh
|
|
2,148,000
|
|
|
94.1
|
|
|
8.7
|
|
Orlando
|
|
1,976,000
|
|
|
90.1
|
|
|
7.2
|
|
Memphis
|
|
1,637,000
|
|
|
94.1
|
|
|
6.4
|
|
Richmond
|
|
1,946,000
|
|
|
92.9
|
|
|
5.6
|
|
Greensboro
|
|
1,151,000
|
|
|
92.2
|
|
|
3.4
|
|
Total
|
|
26,801,000
|
|
|
92.9
|
%
|
|
100.0
|
%
|
(1)
|
Annualized Cash Rental Revenue is cash rental revenue (base rent plus cost recovery income, excluding straight-line rent) from our office properties for the month of
December 2017
multiplied by 12.
|
|
Year Ended December 31,
|
|||||||
|
2017
|
|
2016
|
|
2015
|
|||
|
(rentable square feet in thousands)
|
|||||||
Acquisitions
|
—
|
|
|
243
|
|
|
1,592
|
|
Developments Placed In-Service
|
1,014
|
|
|
176
|
|
|
503
|
|
Redevelopment/Other
|
(7
|
)
|
|
(46
|
)
|
|
14
|
|
Dispositions
|
(1,077
|
)
|
|
(1,429
|
)
|
|
(175
|
)
|
Net Change in Rentable Square Footage
|
(70
|
)
|
|
(1,056
|
)
|
|
1,934
|
|
|
Average
Occupancy
|
|
Annualized GAAP Rent
Per Square
Foot (1)
|
|
Annualized Cash Rent
Per Square
Foot (2)
|
|||||
2013
|
90.0
|
%
|
|
$
|
21.42
|
|
|
$
|
20.48
|
|
2014
|
90.4
|
%
|
|
$
|
22.13
|
|
|
$
|
21.29
|
|
2015
|
92.3
|
%
|
|
$
|
23.30
|
|
|
$
|
22.55
|
|
2016
|
92.8
|
%
|
|
$
|
23.24
|
|
|
$
|
22.55
|
|
2017
|
92.5
|
%
|
|
$
|
24.05
|
|
|
$
|
23.46
|
|
(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 rentable 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 rentable square footage.
|
Customer
|
|
Rentable 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
|
|
1,419,732
|
|
|
$
|
34,242
|
|
|
5.34
|
%
|
|
4.5
|
|
Metropolitan Life Insurance
|
|
621,190
|
|
|
15,733
|
|
|
2.46
|
|
|
10.5
|
|
|
Bridgestone Americas
|
|
506,128
|
|
|
14,553
|
|
|
2.27
|
|
|
19.7
|
|
|
PPG Industries
|
|
356,215
|
|
|
9,727
|
|
|
1.52
|
|
|
13.3
|
|
|
EQT Corporation
|
|
319,269
|
|
|
7,544
|
|
|
1.18
|
|
|
6.8
|
|
|
Healthways
|
|
263,598
|
|
|
7,038
|
|
|
1.10
|
|
|
5.2
|
|
|
International Paper
|
|
278,444
|
|
|
6,804
|
|
|
1.06
|
|
|
10.9
|
|
|
Vanderbilt University
|
|
251,415
|
|
|
6,725
|
|
|
1.05
|
|
|
4.0
|
|
|
Bass, Berry & Sims
|
|
201,588
|
|
|
6,678
|
|
|
1.04
|
|
|
7.1
|
|
|
State of Georgia
|
|
320,449
|
|
|
5,791
|
|
|
0.90
|
|
|
4.3
|
|
|
American General Life
|
|
173,834
|
|
|
5,777
|
|
|
0.90
|
|
|
9.1
|
|
|
Novelis
|
|
168,949
|
|
|
5,687
|
|
|
0.89
|
|
|
6.7
|
|
|
Marsh USA
|
|
177,382
|
|
|
5,537
|
|
|
0.86
|
|
|
4.2
|
|
|
Laser Spine Institute
|
|
176,089
|
|
|
5,490
|
|
|
0.86
|
|
|
14.8
|
|
|
PNC Bank
|
|
187,076
|
|
|
5,430
|
|
|
0.85
|
|
|
8.9
|
|
|
Syniverse Technologies
|
|
218,678
|
|
|
5,005
|
|
|
0.78
|
|
|
8.8
|
|
|
Aon
|
|
168,697
|
|
|
4,996
|
|
|
0.78
|
|
|
4.1
|
|
|
Lifepoint Corporate Services
|
|
202,991
|
|
|
4,809
|
|
|
0.75
|
|
|
11.3
|
|
|
AT&T
|
|
197,826
|
|
|
4,668
|
|
|
0.73
|
|
|
1.6
|
|
|
HDR Engineering
|
|
134,835
|
|
|
4,383
|
|
|
0.68
|
|
|
1.8
|
|
|
Total
|
|
6,344,385
|
|
|
$
|
166,617
|
|
|
26.00
|
%
|
|
8.2
|
|
(1)
|
Annualized Cash Rental Revenue is cash rental revenue (base rent plus cost recovery income, excluding straight-line rent) for the month of
December 2017
multiplied by 12.
|
Lease Expiring
(1)
|
|
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
(2)
|
|
Average
Annual Cash
Rental Rate
Per Square
Foot for
Expirations
|
|
Percent of
Annualized
Cash Rental
Revenue
Represented
by Expiring
Leases
(2)
|
||||||||
|
|
|
|
|
|
|
($ in thousands)
|
|
|
|
||||||||||
2018
(3)
|
|
447
|
|
|
2,558,245
|
|
|
10.3
|
%
|
|
$
|
63,063
|
|
|
$
|
24.65
|
|
|
10.1
|
%
|
2019
|
|
356
|
|
|
3,171,150
|
|
|
12.7
|
|
|
79,643
|
|
|
25.11
|
|
|
12.7
|
|
||
2020
|
|
336
|
|
|
2,749,799
|
|
|
11.0
|
|
|
74,382
|
|
|
27.05
|
|
|
11.9
|
|
||
2021
|
|
255
|
|
|
2,436,494
|
|
|
9.8
|
|
|
62,218
|
|
|
25.54
|
|
|
9.9
|
|
||
2022
|
|
252
|
|
|
2,362,640
|
|
|
9.5
|
|
|
56,984
|
|
|
24.12
|
|
|
9.1
|
|
||
2023
|
|
131
|
|
|
1,927,697
|
|
|
7.7
|
|
|
46,709
|
|
|
24.23
|
|
|
7.5
|
|
||
2024
|
|
90
|
|
|
1,883,361
|
|
|
7.6
|
|
|
51,019
|
|
|
27.09
|
|
|
8.1
|
|
||
2025
|
|
64
|
|
|
1,304,276
|
|
|
5.2
|
|
|
35,206
|
|
|
26.99
|
|
|
5.6
|
|
||
2026
|
|
71
|
|
|
1,271,390
|
|
|
5.1
|
|
|
32,557
|
|
|
25.61
|
|
|
5.2
|
|
||
2027
|
|
40
|
|
|
1,300,493
|
|
|
5.2
|
|
|
33,572
|
|
|
25.81
|
|
|
5.4
|
|
||
Thereafter
|
|
172
|
|
|
3,922,265
|
|
|
15.9
|
|
|
90,800
|
|
|
23.15
|
|
|
14.5
|
|
||
|
|
2,214
|
|
|
24,887,810
|
|
|
100.0
|
%
|
|
$
|
626,153
|
|
|
$
|
25.16
|
|
|
100.0
|
%
|
(1)
|
Expirations that have been renewed are reflected above based on the renewal expiration date. Expirations include leases related to completed not stabilized development properties but exclude leases related to developments in-process.
|
(2)
|
Annualized Cash Rental Revenue is cash rental revenue (base rent plus cost recovery income, excluding straight-line rent) for the month of
December 2017
multiplied by 12.
|
(3)
|
Includes
98,000
rentable square feet of leases that are on a month-to-month basis, which represent
0.3%
of total annualized cash rental revenue.
|
Property
|
|
Market
|
|
Rentable Square Feet
|
|
Anticipated Total Investment
(1)
|
|
Investment As Of December 31, 2017
(1)
|
|
Pre Leased %
|
|
Estimated Completion
|
|
Estimated Stabilization
|
||||||
|
|
|
|
|
|
($ in thousands)
|
|
|
|
|
|
|
||||||||
Virginia Urology
|
|
Richmond
|
|
87,000
|
|
|
$
|
29,140
|
|
|
$
|
14,037
|
|
|
100.0
|
%
|
|
3Q18
|
|
3Q18
|
751 Corporate Center
|
|
Raleigh
|
|
89,700
|
|
|
21,850
|
|
|
9,522
|
|
|
35.3
|
|
|
4Q18
|
|
4Q20
|
||
MetLife III
|
|
Raleigh
|
|
219,000
|
|
|
64,500
|
|
|
16,351
|
|
|
100.0
|
|
|
2Q19
|
|
2Q21
|
||
Virginia Springs I
|
|
Nashville
|
|
109,000
|
|
|
34,300
|
|
|
6,426
|
|
|
33.8
|
|
|
2Q19
|
|
3Q20
|
||
Mars Petcare - Ovation
|
|
Nashville
|
|
223,700
|
|
|
96,200
|
|
|
20,392
|
|
|
100.0
|
|
|
3Q19
|
|
3Q19
|
||
|
|
|
|
728,400
|
|
|
$
|
245,990
|
|
|
$
|
66,728
|
|
|
82.1
|
%
|
|
|
|
|
(1)
|
Includes deferred lease commissions which are classified in deferred leasing costs on our Consolidated Balance Sheets.
|
|
|
Rentable
Square Feet
|
|
Weighted
Average
Ownership
Interest
(1)
|
|
Occupancy
|
|
Percentage of
Annualized
Cash Rental
Revenue
(2)
|
||||
Market
|
|
|||||||||||
Kansas City
(3)
|
|
292,000
|
|
|
50.0
|
%
|
|
97.3
|
%
|
|
51.4
|
%
|
Richmond
(4)
|
|
345,000
|
|
|
50.0
|
|
|
100.0
|
|
|
28.4
|
|
Raleigh
|
|
635,000
|
|
|
25.0
|
|
|
53.8
|
|
|
20.2
|
|
Total
|
|
1,272,000
|
|
|
37.5
|
%
|
|
76.3
|
%
|
|
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 2017
multiplied by 12.
|
(3)
|
Excluding our 26.5% ownership interest in a real estate brokerage services company.
|
(4)
|
This joint venture is consolidated.
|
Name
|
|
Age
|
|
Position and Background
|
Edward J. Fritsch
|
|
59
|
|
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 (NYSE:NNN). Mr. Fritsch is past chair of the National Association of Real Estate Investment Trusts ("NAREIT") and currently serves on its executive board. Mr. Fritsch is also a member of Wells Fargo's central region advisory board, a member of the University of North Carolina at Chapel Hill Foundation board, a director of the University of North Carolina at Chapel Hill Real Estate Holdings and a member of the Dix Park Conservancy board.
|
Theodore J. Klinck
|
|
52
|
|
Executive Vice President and Chief Operating and Investment Officer.
Mr. Klinck became executive vice president and chief operating and investment officer in September 2015. Prior to that, Mr. Klinck was our senior vice president and chief investment officer since March 2012. Before joining us, Mr. Klinck served as principal and chief investment officer with Goddard Investment Group, a privately owned real estate investment firm. Previously, Mr. Klinck had been a managing director at Morgan Stanley Real Estate.
|
Mark F. Mulhern
|
|
58
|
|
Executive Vice President and Chief Financial Officer.
Mr. Mulhern became chief financial officer in September 2014. Prior to that, Mr. Mulhern was a director of the Company since January 2012. Mr. Mulhern served as executive vice president and chief financial officer of Exco Resources, Inc. (NYSE:XCO), an oil and gas exploration and production company, from 2013 until September 2014. Mr. Mulhern served as senior vice president and chief financial officer of Progress Energy, Inc. (NYSE:PGN) from 2008 until its merger with Duke Energy Corporation (NYSE:DUK) in July 2012. Mr. Mulhern first joined Progress Energy in 1996 and served in a number of financial and strategic roles. He also spent eight years at Price Waterhouse. Mr. Mulhern currently serves as a director of McKim and Creed, a private engineering services firm, and Triangle Capital Corporation (NYSE:TCAP), a leading provider of capital to lower middle market companies. Mr. Mulhern is a certified public accountant, a certified management accountant and a certified internal auditor.
|
Jeffrey D. Miller
|
|
47
|
|
Executive 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 served as lead independent director of Hatteras Financial Corp., a publicly-traded mortgage REIT (NYSE:HTS), prior to its merger with Annaly Capital Management, Inc. (NYSE:NLY) in July 2016.
|
|
|
2017
|
|
2016
|
||||||||||||||||||||
Quarter Ended
|
|
High
|
|
Low
|
|
Dividend
|
|
High
|
|
Low
|
|
Dividend
|
||||||||||||
March 31
|
|
$
|
53.26
|
|
|
$
|
48.42
|
|
|
$
|
0.440
|
|
|
$
|
48.14
|
|
|
$
|
38.08
|
|
|
$
|
0.425
|
|
June 30
|
|
$
|
52.82
|
|
|
$
|
48.98
|
|
|
$
|
0.440
|
|
|
$
|
52.86
|
|
|
$
|
44.93
|
|
|
$
|
0.425
|
|
September 30
|
|
$
|
52.75
|
|
|
$
|
48.68
|
|
|
$
|
0.440
|
|
|
$
|
56.23
|
|
|
$
|
50.05
|
|
|
$
|
0.425
|
|
December 31
(1)
|
|
$
|
53.34
|
|
|
$
|
50.08
|
|
|
$
|
0.440
|
|
|
$
|
52.03
|
|
|
$
|
45.83
|
|
|
$
|
1.225
|
|
(1)
|
Includes a special cash dividend of
$0.80
per share declared in the quarter ended December 31, 2016 and paid January 10, 2017. The principal purpose of the special dividend was to distribute taxable capital gains associated with the sales of substantially all of our wholly-owned Country Club Plaza assets in Kansas City (which we refer to as the “Plaza assets”) during the first quarter of 2016.
|
•
|
projections with respect to the future REIT taxable income expected to be generated by the Company;
|
•
|
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, including from the sales of assets generating taxable gains to the extent such assets are not sold in a tax-deferred exchange under Section 1031 of the Internal Revenue Code or another tax-free or tax-deferred transaction.
|
|
|
For the Period from December 31, 2012 to December 31,
|
|||||||||||||
Index
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|||||
Highwoods Properties, Inc.
|
|
113.27
|
|
|
144.61
|
|
|
148.09
|
|
|
182.49
|
|
|
188.57
|
|
S&P 500 Index
|
|
132.39
|
|
|
150.51
|
|
|
152.59
|
|
|
170.84
|
|
|
208.14
|
|
FTSE NAREIT All Equity REITs Index
|
|
102.86
|
|
|
131.68
|
|
|
135.40
|
|
|
147.09
|
|
|
159.85
|
|
|
Year Ended December 31,
|
||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Rental and other revenues
|
$
|
702,737
|
|
|
$
|
665,634
|
|
|
$
|
604,671
|
|
|
$
|
555,871
|
|
|
$
|
505,008
|
|
Income from continuing operations
|
$
|
191,663
|
|
|
$
|
122,546
|
|
|
$
|
85,521
|
|
|
$
|
96,987
|
|
|
$
|
42,641
|
|
Income from discontinued operations
|
$
|
—
|
|
|
$
|
418,593
|
|
|
$
|
15,739
|
|
|
$
|
18,985
|
|
|
$
|
88,456
|
|
Income from continuing operations available for common stockholders
|
$
|
182,873
|
|
|
$
|
115,461
|
|
|
$
|
79,308
|
|
|
$
|
90,069
|
|
|
$
|
37,890
|
|
Net income
|
$
|
191,663
|
|
|
$
|
541,139
|
|
|
$
|
101,260
|
|
|
$
|
115,972
|
|
|
$
|
131,097
|
|
Net income available for common stockholders
|
$
|
182,873
|
|
|
$
|
521,789
|
|
|
$
|
94,572
|
|
|
$
|
108,457
|
|
|
$
|
122,949
|
|
Earnings per Common Share – basic:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations available for common stockholders
|
$
|
1.78
|
|
|
$
|
1.17
|
|
|
$
|
0.84
|
|
|
$
|
1.00
|
|
|
$
|
0.44
|
|
Net income available for common stockholders
|
$
|
1.78
|
|
|
$
|
5.30
|
|
|
$
|
1.00
|
|
|
$
|
1.20
|
|
|
$
|
1.44
|
|
Earnings per Common Share – diluted:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations available for common stockholders
|
$
|
1.78
|
|
|
$
|
1.17
|
|
|
$
|
0.84
|
|
|
$
|
0.99
|
|
|
$
|
0.44
|
|
Net income available for common stockholders
|
$
|
1.78
|
|
|
$
|
5.30
|
|
|
$
|
1.00
|
|
|
$
|
1.19
|
|
|
$
|
1.44
|
|
Dividends declared per Common Share
(1)
|
$
|
1.76
|
|
|
$
|
2.50
|
|
|
$
|
1.70
|
|
|
$
|
1.70
|
|
|
$
|
1.70
|
|
|
December 31,
|
||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Total assets
|
$
|
4,623,791
|
|
|
$
|
4,561,050
|
|
|
$
|
4,485,631
|
|
|
$
|
3,990,702
|
|
|
$
|
3,793,177
|
|
Mortgages and notes payable, net
|
$
|
2,014,333
|
|
|
$
|
1,948,047
|
|
|
$
|
2,491,813
|
|
|
$
|
2,062,968
|
|
|
$
|
1,948,161
|
|
(1)
|
Includes a special cash dividend of $0.80 per share declared in the quarter ended December 31, 2016 and paid January 10, 2017.
|
|
Year Ended December 31,
|
||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Rental and other revenues
|
$
|
702,737
|
|
|
$
|
665,634
|
|
|
$
|
604,671
|
|
|
$
|
555,871
|
|
|
$
|
505,008
|
|
Income from continuing operations
|
$
|
191,663
|
|
|
$
|
122,546
|
|
|
$
|
85,521
|
|
|
$
|
96,987
|
|
|
$
|
42,590
|
|
Income from discontinued operations
|
$
|
—
|
|
|
$
|
418,593
|
|
|
$
|
15,739
|
|
|
$
|
18,985
|
|
|
$
|
88,456
|
|
Income from continuing operations available for common unitholders
|
$
|
187,932
|
|
|
$
|
118,792
|
|
|
$
|
81,751
|
|
|
$
|
93,014
|
|
|
$
|
39,133
|
|
Net income
|
$
|
191,663
|
|
|
$
|
541,139
|
|
|
$
|
101,260
|
|
|
$
|
115,972
|
|
|
$
|
131,046
|
|
Net income available for common unitholders
|
$
|
187,932
|
|
|
$
|
537,385
|
|
|
$
|
97,490
|
|
|
$
|
111,999
|
|
|
$
|
127,589
|
|
Earnings per Common Unit – basic:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations available for common unitholders
|
$
|
1.79
|
|
|
$
|
1.18
|
|
|
$
|
0.84
|
|
|
$
|
1.00
|
|
|
$
|
0.44
|
|
Net income available for common unitholders
|
$
|
1.79
|
|
|
$
|
5.33
|
|
|
$
|
1.01
|
|
|
$
|
1.20
|
|
|
$
|
1.44
|
|
Earnings per Common Unit – diluted:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations available for common unitholders
|
$
|
1.79
|
|
|
$
|
1.18
|
|
|
$
|
0.84
|
|
|
$
|
1.00
|
|
|
$
|
0.44
|
|
Net income available for common unitholders
|
$
|
1.79
|
|
|
$
|
5.32
|
|
|
$
|
1.01
|
|
|
$
|
1.20
|
|
|
$
|
1.44
|
|
Distributions declared per Common Unit
(1)
|
$
|
1.76
|
|
|
$
|
2.50
|
|
|
$
|
1.70
|
|
|
$
|
1.70
|
|
|
$
|
1.70
|
|
|
December 31,
|
||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Total assets
|
$
|
4,623,791
|
|
|
$
|
4,561,050
|
|
|
$
|
4,485,631
|
|
|
$
|
3,990,808
|
|
|
$
|
3,793,274
|
|
Mortgages and notes payable, net
|
$
|
2,014,333
|
|
|
$
|
1,948,047
|
|
|
$
|
2,491,813
|
|
|
$
|
2,062,968
|
|
|
$
|
1,948,161
|
|
(1)
|
Includes a special cash distribution of $0.80 per unit declared in the quarter ended December 31, 2016 and paid January 10, 2017.
|
•
|
the financial condition of our customers could deteriorate;
|
•
|
we may not be able to lease or re-lease 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 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 in our existing markets could result in an excessive supply relative to customer demand;
|
•
|
our markets may suffer declines in economic and/or office employment 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 repay or refinance outstanding debt upon maturity; and
|
•
|
the Company could lose key executive officers.
|
•
|
owning high-quality, differentiated office buildings in the BBDs of our core markets;
|
•
|
improving the operating results of our properties through concentrated leasing, asset management, cost control and customer service efforts;
|
•
|
developing and acquiring office buildings in BBDs that improve the overall quality of our portfolio and generate attractive returns over the long term for our stockholders;
|
•
|
disposing of properties no longer considered to be core assets primarily due to location, age, quality and/or overall strategic fit; and
|
•
|
maintaining a balance sheet with ample liquidity to meet our funding needs and growth prospects.
|
|
New
|
|
Renewal
|
|
All Office
|
||||||
Leased space (in rentable square feet)
|
279,401
|
|
|
737,704
|
|
|
1,017,105
|
|
|||
Average term (in years - rentable square foot weighted)
|
8.1
|
|
|
6.7
|
|
|
7.1
|
|
|||
Base rents (per rentable square foot)
(1)
|
$
|
29.36
|
|
|
$
|
28.65
|
|
|
$
|
28.85
|
|
Rent concessions (per rentable square foot)
(1)
|
(1.04
|
)
|
|
(0.22
|
)
|
|
(0.44
|
)
|
|||
GAAP rents (per rentable square foot)
(1)
|
$
|
28.32
|
|
|
$
|
28.43
|
|
|
$
|
28.41
|
|
Tenant improvements (per rentable square foot)
(1)
|
$
|
4.08
|
|
|
$
|
2.84
|
|
|
$
|
3.18
|
|
Leasing commissions (per rentable square foot)
(1)
|
$
|
0.96
|
|
|
$
|
0.80
|
|
|
$
|
0.84
|
|
(1)
|
Weighted average per rentable square foot on an annual basis over the lease term.
|
•
|
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.
|
|
Year Ended December 31,
|
|
|
|
|
||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2017-2016 Change
|
|
2016-2015 Change
|
||||||||||
Net Cash Provided By Operating Activities
|
$
|
352,532
|
|
|
$
|
305,805
|
|
|
$
|
288,879
|
|
|
$
|
46,727
|
|
|
$
|
16,926
|
|
Net Cash Provided By/(Used In) Investing Activities
|
(256,222
|
)
|
|
203,890
|
|
|
(654,157
|
)
|
|
(460,112
|
)
|
|
858,047
|
|
|||||
Net Cash Provided By/(Used In) Financing Activities
|
(142,528
|
)
|
|
(465,241
|
)
|
|
361,482
|
|
|
322,713
|
|
|
(826,723
|
)
|
|||||
Total Cash Flows
|
$
|
(46,218
|
)
|
|
$
|
44,454
|
|
|
$
|
(3,796
|
)
|
|
$
|
(90,672
|
)
|
|
$
|
48,250
|
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
Mortgages and notes payable, net, at recorded book value
|
$
|
2,014,333
|
|
|
$
|
1,948,047
|
|
Preferred Stock, at liquidation value
|
$
|
28,892
|
|
|
$
|
28,920
|
|
Common Stock outstanding
|
103,267
|
|
|
101,666
|
|
||
Common Units outstanding (not owned by the Company)
|
2,829
|
|
|
2,839
|
|
||
Per share stock price at year end
|
$
|
50.91
|
|
|
$
|
51.01
|
|
Market value of Common Stock and Common Units
|
$
|
5,401,347
|
|
|
$
|
5,330,800
|
|
Total capitalization
|
$
|
7,444,572
|
|
|
$
|
7,307,767
|
|
|
Face Amount
|
|
Carrying Amount
|
|
Stated Interest Rate
|
|
Effective Interest Rate
|
||||||
Notes due April 2018
|
$
|
200,000
|
|
|
$
|
200,000
|
|
|
7.500
|
%
|
|
7.500
|
%
|
Notes due June 2021
|
$
|
300,000
|
|
|
$
|
298,504
|
|
|
3.200
|
%
|
|
3.363
|
%
|
Notes due January 2023
|
$
|
250,000
|
|
|
$
|
248,675
|
|
|
3.625
|
%
|
|
3.752
|
%
|
Notes due March 2027
|
$
|
300,000
|
|
|
$
|
296,334
|
|
|
3.875
|
%
|
|
4.038
|
%
|
|
|
|
Amounts due during the years ending December 31,
|
|
|
||||||||||||||||||||||
|
Total
|
|
2018
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
Thereafter
|
||||||||||||||
Mortgages and Notes Payable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Principal payments
(1)
|
$
|
2,028,981
|
|
|
$
|
211,803
|
|
|
$
|
1,876
|
|
|
$
|
226,952
|
|
|
$
|
302,032
|
|
|
$
|
647,115
|
|
|
$
|
639,203
|
|
Interest payments
|
316,744
|
|
|
61,359
|
|
|
56,765
|
|
|
53,214
|
|
|
45,154
|
|
|
30,031
|
|
|
70,221
|
|
|||||||
Capitalized Lease Obligations
|
62
|
|
|
29
|
|
|
18
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Purchase Obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Lease and contractual commitments and contingent consideration
(2)
|
343,765
|
|
|
291,829
|
|
|
44,251
|
|
|
5,381
|
|
|
330
|
|
|
954
|
|
|
1,020
|
|
|||||||
Operating Lease Obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Operating ground leases
|
99,414
|
|
|
2,099
|
|
|
2,136
|
|
|
2,175
|
|
|
2,215
|
|
|
2,257
|
|
|
88,532
|
|
|||||||
Total
|
$
|
2,788,966
|
|
|
$
|
567,119
|
|
|
$
|
105,046
|
|
|
$
|
287,737
|
|
|
$
|
349,731
|
|
|
$
|
680,357
|
|
|
$
|
798,976
|
|
(1)
|
Excludes amortization of premiums, discounts, debt issuance costs and/or purchase accounting adjustments.
|
(2)
|
Consists primarily of commitments under signed leases and contracts for operating properties, excluding tenant-funded tenant improvements, and contracts for development/redevelopment projects. This includes
$233.0 million
of contractual commitments related to our in-process development activity, of which
$189.6 million
is scheduled to be funded in
2018
. For a description of our development activity, see "Item 2. Properties - In-Process Development." The timing of these lease and contractual commitments may fluctuate.
|
•
|
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 share of adjustments, including depreciation and amortization of depreciable operating properties, for unconsolidated joint venture investments (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,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Funds from operations:
|
|
|
|
|
|
||||||
Net income
|
$
|
191,663
|
|
|
$
|
541,139
|
|
|
$
|
101,260
|
|
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
(1,239
|
)
|
|
(1,253
|
)
|
|
(1,264
|
)
|
|||
Depreciation and amortization of real estate assets
|
225,052
|
|
|
217,533
|
|
|
199,449
|
|
|||
(Gains) on disposition of depreciable properties
|
(53,170
|
)
|
|
(8,915
|
)
|
|
(9,147
|
)
|
|||
(Gain) on disposition of investment in unconsolidated affiliate
|
—
|
|
|
—
|
|
|
(4,155
|
)
|
|||
Unconsolidated affiliates:
|
|
|
|
|
|
||||||
Depreciation and amortization of real estate assets
|
2,298
|
|
|
2,978
|
|
|
3,203
|
|
|||
(Gains) on disposition of depreciable properties
|
(4,617
|
)
|
|
(2,173
|
)
|
|
(946
|
)
|
|||
Discontinued operations:
|
|
|
|
|
|
||||||
Depreciation and amortization of real estate assets
|
—
|
|
|
—
|
|
|
13,820
|
|
|||
(Gains) on disposition of depreciable properties
|
—
|
|
|
(414,496
|
)
|
|
—
|
|
|||
Funds from operations
|
359,987
|
|
|
334,813
|
|
|
302,220
|
|
|||
Dividends on Preferred Stock
|
(2,492
|
)
|
|
(2,501
|
)
|
|
(2,506
|
)
|
|||
Funds from operations available for common stockholders
|
$
|
357,495
|
|
|
$
|
332,312
|
|
|
$
|
299,714
|
|
Funds from operations available for common stockholders per share
|
$
|
3.39
|
|
|
$
|
3.28
|
|
|
$
|
3.08
|
|
Weighted average shares outstanding
(1)
|
105,594
|
|
|
101,398
|
|
|
97,406
|
|
(1)
|
Includes assumed conversion of all potentially dilutive Common Stock equivalents.
|
|
|
Year Ended December 31,
|
||||||
|
|
2017
|
|
2016
|
||||
Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates
|
|
$
|
130,102
|
|
|
$
|
101,946
|
|
Other income
|
|
(2,283
|
)
|
|
(2,338
|
)
|
||
Interest expense
|
|
69,105
|
|
|
76,648
|
|
||
General and administrative expenses
|
|
39,648
|
|
|
38,153
|
|
||
Impairments of real estate assets
|
|
1,445
|
|
|
—
|
|
||
Depreciation and amortization
|
|
227,832
|
|
|
220,140
|
|
||
Net operating income from continuing operations
|
|
465,849
|
|
|
434,549
|
|
||
Less – non same property and other net operating income
|
|
(46,301
|
)
|
|
(23,723
|
)
|
||
Same property net operating income from continuing operations
|
|
$
|
419,548
|
|
|
$
|
410,826
|
|
|
|
|
|
|
||||
Same property net operating income from continuing operations
|
|
$
|
419,548
|
|
|
$
|
410,826
|
|
Less – lease termination fees, straight-line rent and other non-cash adjustments
|
|
(13,148
|
)
|
|
(20,438
|
)
|
||
Same property cash net operating income from continuing operations
|
|
$
|
406,400
|
|
|
$
|
390,388
|
|
See page
50
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
50
for a list of the Consolidated Financial Statements of Highwoods Properties, Inc. and Highwoods Realty Limited Partnership included in this report.
|
Exhibit
Number
|
|
Description
|
1
|
|
|
3.1
|
|
|
3.2
|
|
|
4.1
|
|
|
4.2
|
|
|
4.3
|
|
|
4.4
|
|
|
4.5
|
|
|
4.6
|
|
|
4.7
|
|
|
4.8
|
|
|
10.1
|
|
|
10.2
|
|
|
10.3
|
*
|
|
10.4
|
|
|
10.5
|
*
|
|
10.6
|
*
|
|
10.7
|
*
|
Exhibit
Number
|
|
Description
|
10.8
|
*
|
|
10.9
|
*
|
|
10.10
|
*
|
|
10.11
|
*
|
|
10.12
|
|
|
10.13
|
|
|
10.14
|
|
|
10.15
|
|
|
10.16
|
|
|
12.1
|
|
|
12.2
|
|
|
21
|
|
|
23.1
|
|
|
23.2
|
|
|
31.1
|
|
|
31.2
|
|
|
31.3
|
|
|
31.4
|
|
|
32.1
|
|
|
32.2
|
|
|
32.3
|
|
|
32.4
|
|
|
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,
|
||||||
|
2017
|
|
2016
|
||||
Assets:
|
|
|
|
||||
Real estate assets, at cost:
|
|
|
|
||||
Land
|
$
|
485,956
|
|
|
$
|
474,375
|
|
Buildings and tenant improvements
|
4,590,490
|
|
|
4,313,373
|
|
||
Development in-process
|
88,452
|
|
|
279,602
|
|
||
Land held for development
|
74,765
|
|
|
77,355
|
|
||
|
5,239,663
|
|
|
5,144,705
|
|
||
Less-accumulated depreciation
|
(1,202,424
|
)
|
|
(1,134,103
|
)
|
||
Net real estate assets
|
4,037,239
|
|
|
4,010,602
|
|
||
Real estate and other assets, net, held for sale
|
14,118
|
|
|
—
|
|
||
Cash and cash equivalents
|
3,272
|
|
|
49,490
|
|
||
Restricted cash
|
85,061
|
|
|
29,141
|
|
||
Accounts receivable, net of allowance of $753 and $624, respectively
|
24,397
|
|
|
17,372
|
|
||
Mortgages and notes receivable, net of allowance of $72 and $105, respectively
|
6,425
|
|
|
8,833
|
|
||
Accrued straight-line rents receivable, net of allowance of $819 and $692, respectively
|
200,131
|
|
|
172,829
|
|
||
Investments in and advances to unconsolidated affiliates
|
23,897
|
|
|
18,846
|
|
||
Deferred leasing costs, net of accumulated amortization of $143,512 and $140,081, respectively
|
200,679
|
|
|
213,500
|
|
||
Prepaid expenses and other assets, net of accumulated amortization of $19,092 and $19,904,
respectively |
28,572
|
|
|
40,437
|
|
||
Total Assets
|
$
|
4,623,791
|
|
|
$
|
4,561,050
|
|
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity:
|
|
|
|
||||
Mortgages and notes payable, net
|
$
|
2,014,333
|
|
|
$
|
1,948,047
|
|
Accounts payable, accrued expenses and other liabilities
|
228,215
|
|
|
313,885
|
|
||
Total Liabilities
|
2,242,548
|
|
|
2,261,932
|
|
||
Commitments and contingencies
|
|
|
|
||||
Noncontrolling interests in the Operating Partnership
|
144,009
|
|
|
144,802
|
|
||
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), 28,892 and 28,920 shares issued and outstanding, respectively
|
28,892
|
|
|
28,920
|
|
||
Common Stock, $.01 par value, 200,000,000 authorized shares;
|
|
|
|
||||
103,266,875 and 101,665,554 shares issued and outstanding, respectively
|
1,033
|
|
|
1,017
|
|
||
Additional paid-in capital
|
2,929,399
|
|
|
2,850,881
|
|
||
Distributions in excess of net income available for common stockholders
|
(747,344
|
)
|
|
(749,412
|
)
|
||
Accumulated other comprehensive income
|
7,838
|
|
|
4,949
|
|
||
Total Stockholders’ Equity
|
2,219,818
|
|
|
2,136,355
|
|
||
Noncontrolling interests in consolidated affiliates
|
17,416
|
|
|
17,961
|
|
||
Total Equity
|
2,237,234
|
|
|
2,154,316
|
|
||
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity
|
$
|
4,623,791
|
|
|
$
|
4,561,050
|
|
|
|||||||||||
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Rental and other revenues
|
$
|
702,737
|
|
|
$
|
665,634
|
|
|
$
|
604,671
|
|
Operating expenses:
|
|
|
|
|
|
||||||
Rental property and other expenses
|
236,888
|
|
|
231,085
|
|
|
215,941
|
|
|||
Depreciation and amortization
|
227,832
|
|
|
220,140
|
|
|
201,918
|
|
|||
Impairments of real estate assets
|
1,445
|
|
|
—
|
|
|
—
|
|
|||
General and administrative
|
39,648
|
|
|
38,153
|
|
|
37,642
|
|
|||
Total operating expenses
|
505,813
|
|
|
489,378
|
|
|
455,501
|
|
|||
Interest expense:
|
|
|
|
|
|
||||||
Contractual
|
65,939
|
|
|
73,142
|
|
|
82,245
|
|
|||
Amortization of debt issuance costs
|
3,166
|
|
|
3,506
|
|
|
3,645
|
|
|||
Financing obligation
|
—
|
|
|
—
|
|
|
162
|
|
|||
|
69,105
|
|
|
76,648
|
|
|
86,052
|
|
|||
Other income:
|
|
|
|
|
|
||||||
Interest and other income
|
2,309
|
|
|
2,338
|
|
|
1,969
|
|
|||
Losses on debt extinguishment
|
(26
|
)
|
|
—
|
|
|
(243
|
)
|
|||
|
2,283
|
|
|
2,338
|
|
|
1,726
|
|
|||
Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates
|
130,102
|
|
|
101,946
|
|
|
64,844
|
|
|||
Gains on disposition of property
|
54,157
|
|
|
14,807
|
|
|
11,444
|
|
|||
Gain on disposition of investment in unconsolidated affiliate
|
—
|
|
|
—
|
|
|
4,155
|
|
|||
Equity in earnings of unconsolidated affiliates
|
7,404
|
|
|
5,793
|
|
|
5,078
|
|
|||
Income from continuing operations
|
191,663
|
|
|
122,546
|
|
|
85,521
|
|
|||
Discontinued operations:
|
|
|
|
|
|
||||||
Income from discontinued operations
|
—
|
|
|
4,097
|
|
|
15,739
|
|
|||
Net gains on disposition of discontinued operations
|
—
|
|
|
414,496
|
|
|
—
|
|
|||
|
—
|
|
|
418,593
|
|
|
15,739
|
|
|||
Net income
|
191,663
|
|
|
541,139
|
|
|
101,260
|
|
|||
Net (income) attributable to noncontrolling interests in the Operating Partnership
|
(5,059
|
)
|
|
(15,596
|
)
|
|
(2,918
|
)
|
|||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
(1,239
|
)
|
|
(1,253
|
)
|
|
(1,264
|
)
|
|||
Dividends on Preferred Stock
|
(2,492
|
)
|
|
(2,501
|
)
|
|
(2,506
|
)
|
|||
Net income available for common stockholders
|
$
|
182,873
|
|
|
$
|
521,789
|
|
|
$
|
94,572
|
|
Earnings per Common Share – basic:
|
|
|
|
|
|
||||||
Income from continuing operations available for common stockholders
|
$
|
1.78
|
|
|
$
|
1.17
|
|
|
$
|
0.84
|
|
Income from discontinued operations available for common stockholders
|
—
|
|
|
4.13
|
|
|
0.16
|
|
|||
Net income available for common stockholders
|
$
|
1.78
|
|
|
$
|
5.30
|
|
|
$
|
1.00
|
|
Weighted average Common Shares outstanding – basic
|
102,682
|
|
|
98,439
|
|
|
94,404
|
|
|||
Earnings per Common Share – diluted:
|
|
|
|
|
|
||||||
Income from continuing operations available for common stockholders
|
$
|
1.78
|
|
|
$
|
1.17
|
|
|
$
|
0.84
|
|
Income from discontinued operations available for common stockholders
|
—
|
|
|
4.13
|
|
|
0.16
|
|
|||
Net income available for common stockholders
|
$
|
1.78
|
|
|
$
|
5.30
|
|
|
$
|
1.00
|
|
Weighted average Common Shares outstanding – diluted
|
105,594
|
|
|
101,398
|
|
|
97,406
|
|
|||
Net income available for common stockholders:
|
|
|
|
|
|
||||||
Income from continuing operations available for common stockholders
|
$
|
182,873
|
|
|
$
|
115,461
|
|
|
$
|
79,308
|
|
Income from discontinued operations available for common stockholders
|
—
|
|
|
406,328
|
|
|
15,264
|
|
|||
Net income available for common stockholders
|
$
|
182,873
|
|
|
$
|
521,789
|
|
|
$
|
94,572
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Comprehensive income:
|
|
|
|
|
|
||||||
Net income
|
$
|
191,663
|
|
|
$
|
541,139
|
|
|
$
|
101,260
|
|
Other comprehensive income/(loss):
|
|
|
|
|
|
||||||
Unrealized gains on tax increment financing bond
|
—
|
|
|
—
|
|
|
445
|
|
|||
Unrealized gains/(losses) on cash flow hedges
|
1,732
|
|
|
5,703
|
|
|
(4,040
|
)
|
|||
Amortization of cash flow hedges
|
1,157
|
|
|
3,057
|
|
|
3,696
|
|
|||
Total other comprehensive income
|
2,889
|
|
|
8,760
|
|
|
101
|
|
|||
Total comprehensive income
|
194,552
|
|
|
549,899
|
|
|
101,361
|
|
|||
Less-comprehensive (income) attributable to noncontrolling interests
|
(6,298
|
)
|
|
(16,849
|
)
|
|
(4,182
|
)
|
|||
Comprehensive income attributable to common stockholders
|
$
|
188,254
|
|
|
$
|
533,050
|
|
|
$
|
97,179
|
|
|
||||||||||||||||||||||||||||||
|
Number of Common Shares
|
|
Common Stock
|
|
Series A Cumulative Redeemable Preferred Shares
|
|
Additional Paid-In Capital
|
|
Accumulated Other Compre-hensive Income/(Loss)
|
|
Non-controlling Interests in Consolidated Affiliates
|
|
Distributions in Excess of Net Income Available for Common Stockholders
|
|
Total
|
|||||||||||||||
Balance at December 31, 2014
|
92,907,310
|
|
|
$
|
929
|
|
|
$
|
29,060
|
|
|
$
|
2,464,275
|
|
|
$
|
(3,912
|
)
|
|
$
|
18,109
|
|
|
$
|
(957,370
|
)
|
|
$
|
1,551,091
|
|
Issuances of Common Stock, net of issuance costs and tax withholdings
|
3,023,710
|
|
|
30
|
|
|
—
|
|
|
125,507
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
125,537
|
|
|||||||
Conversions of Common Units to Common Stock
|
37,203
|
|
|
—
|
|
|
—
|
|
|
1,645
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,645
|
|
|||||||
Dividends on Common Stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(160,337
|
)
|
|
(160,337
|
)
|
|||||||
Dividends on Preferred Stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,506
|
)
|
|
(2,506
|
)
|
|||||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value
|
—
|
|
|
—
|
|
|
—
|
|
|
(67
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(67
|
)
|
|||||||
Distributions to noncontrolling interests in consolidated affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,398
|
)
|
|
—
|
|
|
(1,398
|
)
|
|||||||
Issuances of restricted stock
|
128,951
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Redemptions/repurchases of Preferred Stock
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|||||||
Share-based compensation expense, net of forfeitures
|
(5,242
|
)
|
|
2
|
|
|
—
|
|
|
6,882
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,884
|
|
|||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,918
|
)
|
|
(2,918
|
)
|
|||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,264
|
|
|
(1,264
|
)
|
|
—
|
|
|||||||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
101,260
|
|
|
101,260
|
|
|||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
101
|
|
|
—
|
|
|
—
|
|
|
101
|
|
|||||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101,361
|
|
||||||||||||||
Balance at December 31, 2015
|
96,091,932
|
|
|
961
|
|
|
29,050
|
|
|
2,598,242
|
|
|
(3,811
|
)
|
|
17,975
|
|
|
(1,023,135
|
)
|
|
1,619,282
|
|
|||||||
Issuances of Common Stock, net of issuance costs and tax withholdings
|
5,390,710
|
|
|
54
|
|
|
—
|
|
|
256,326
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
256,380
|
|
|||||||
Conversions of Common Units to Common Stock
|
61,048
|
|
|
—
|
|
|
—
|
|
|
3,057
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,057
|
|
|||||||
Dividends on Common Stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(166,861
|
)
|
|
(166,861
|
)
|
|||||||
Special dividend on Common Stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(81,205
|
)
|
|
(81,205
|
)
|
|||||||
Dividends on Preferred Stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,501
|
)
|
|
(2,501
|
)
|
|||||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,993
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,993
|
)
|
|||||||
Distributions to noncontrolling interests in consolidated affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,267
|
)
|
|
—
|
|
|
(1,267
|
)
|
|||||||
Issuances of restricted stock
|
130,752
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Redemptions/repurchases of Preferred Stock
|
—
|
|
|
—
|
|
|
(130
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(130
|
)
|
|||||||
Share-based compensation expense, net of forfeitures
|
(8,888
|
)
|
|
2
|
|
|
—
|
|
|
6,249
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,251
|
|
|||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15,596
|
)
|
|
(15,596
|
)
|
|||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,253
|
|
|
(1,253
|
)
|
|
—
|
|
|||||||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
541,139
|
|
|
541,139
|
|
|||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,760
|
|
|
—
|
|
|
—
|
|
|
8,760
|
|
|||||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
549,899
|
|
||||||||||||||
Balance at December 31, 2016
|
101,665,554
|
|
|
$
|
1,017
|
|
|
$
|
28,920
|
|
|
$
|
2,850,881
|
|
|
$
|
4,949
|
|
|
$
|
17,961
|
|
|
$
|
(749,412
|
)
|
|
$
|
2,154,316
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Additional Paid-In Capital
|
|
Accumulated Other Compre-hensive Income/(Loss)
|
|
Non-controlling Interests in Consolidated Affiliates
|
|
Distributions in Excess of Net Income Available for Common Stockholders
|
|
Total
|
|||||||||||||||
Balance at December 31, 2016
|
101,665,554
|
|
|
$
|
1,017
|
|
|
$
|
28,920
|
|
|
$
|
2,850,881
|
|
|
$
|
4,949
|
|
|
$
|
17,961
|
|
|
$
|
(749,412
|
)
|
|
$
|
2,154,316
|
|
Issuances of Common Stock, net of issuance costs and tax withholdings
|
1,480,573
|
|
|
15
|
|
|
—
|
|
|
70,962
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
70,977
|
|
|||||||
Conversions of Common Units to Common Stock
|
10,000
|
|
|
—
|
|
|
—
|
|
|
511
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
511
|
|
|||||||
Dividends on Common Stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(180,805
|
)
|
|
(180,805
|
)
|
|||||||
Dividends on Preferred Stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,492
|
)
|
|
(2,492
|
)
|
|||||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value
|
—
|
|
|
—
|
|
|
—
|
|
|
354
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
354
|
|
|||||||
Distributions to noncontrolling interests in consolidated affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,784
|
)
|
|
—
|
|
|
(1,784
|
)
|
|||||||
Issuances of restricted stock
|
110,748
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Redemptions/repurchases of Preferred Stock
|
—
|
|
|
—
|
|
|
(28
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(28
|
)
|
|||||||
Share-based compensation expense, net of forfeitures
|
—
|
|
|
1
|
|
|
—
|
|
|
6,691
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,692
|
|
|||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,059
|
)
|
|
(5,059
|
)
|
|||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,239
|
|
|
(1,239
|
)
|
|
—
|
|
|||||||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
191,663
|
|
|
191,663
|
|
|||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,889
|
|
|
—
|
|
|
—
|
|
|
2,889
|
|
|||||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
194,552
|
|
||||||||||||||
Balance at December 31, 2017
|
103,266,875
|
|
|
$
|
1,033
|
|
|
$
|
28,892
|
|
|
$
|
2,929,399
|
|
|
$
|
7,838
|
|
|
$
|
17,416
|
|
|
$
|
(747,344
|
)
|
|
$
|
2,237,234
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
191,663
|
|
|
$
|
541,139
|
|
|
$
|
101,260
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
227,832
|
|
|
220,140
|
|
|
215,957
|
|
|||
Amortization of lease incentives and acquisition-related intangible assets and liabilities
|
(1,172
|
)
|
|
(1,996
|
)
|
|
86
|
|
|||
Share-based compensation expense
|
6,692
|
|
|
6,251
|
|
|
6,884
|
|
|||
Allowance for losses on accounts and accrued straight-line rents receivable
|
1,508
|
|
|
2,001
|
|
|
2,103
|
|
|||
Accrued interest on mortgages and notes receivable
|
(509
|
)
|
|
(502
|
)
|
|
(357
|
)
|
|||
Amortization of debt issuance costs
|
3,166
|
|
|
3,506
|
|
|
3,645
|
|
|||
Amortization of cash flow hedges
|
1,157
|
|
|
3,057
|
|
|
3,696
|
|
|||
Amortization of mortgages and notes payable fair value adjustments
|
705
|
|
|
(234
|
)
|
|
(58
|
)
|
|||
Impairments of real estate assets
|
1,445
|
|
|
—
|
|
|
—
|
|
|||
Losses on debt extinguishment
|
26
|
|
|
—
|
|
|
243
|
|
|||
Net gains on disposition of property
|
(54,157
|
)
|
|
(429,303
|
)
|
|
(11,444
|
)
|
|||
Gain on disposition of investment in unconsolidated affiliate
|
—
|
|
|
—
|
|
|
(4,155
|
)
|
|||
Equity in earnings of unconsolidated affiliates
|
(7,404
|
)
|
|
(5,793
|
)
|
|
(5,078
|
)
|
|||
Changes in financing obligation
|
—
|
|
|
—
|
|
|
162
|
|
|||
Distributions of earnings from unconsolidated affiliates
|
5,078
|
|
|
4,424
|
|
|
4,901
|
|
|||
Settlement of cash flow hedges
|
7,322
|
|
|
—
|
|
|
—
|
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||||||
Accounts receivable
|
(4,974
|
)
|
|
3,401
|
|
|
1,415
|
|
|||
Prepaid expenses and other assets
|
7,908
|
|
|
(4,423
|
)
|
|
1,266
|
|
|||
Accrued straight-line rents receivable
|
(32,234
|
)
|
|
(24,245
|
)
|
|
(22,756
|
)
|
|||
Accounts payable, accrued expenses and other liabilities
|
(1,520
|
)
|
|
(11,618
|
)
|
|
(8,891
|
)
|
|||
Net cash provided by operating activities
|
352,532
|
|
|
305,805
|
|
|
288,879
|
|
|||
Investing activities:
|
|
|
|
|
|
||||||
Investments in acquired real estate and related intangible assets, net of cash acquired
|
(1,840
|
)
|
|
(110,249
|
)
|
|
(408,634
|
)
|
|||
Investments in development in-process
|
(150,944
|
)
|
|
(177,875
|
)
|
|
(136,664
|
)
|
|||
Investments in tenant improvements and deferred leasing costs
|
(109,742
|
)
|
|
(91,423
|
)
|
|
(115,503
|
)
|
|||
Investments in building improvements
|
(63,780
|
)
|
|
(80,672
|
)
|
|
(55,881
|
)
|
|||
Net proceeds from disposition of real estate assets
|
129,503
|
|
|
684,371
|
|
|
26,748
|
|
|||
Net proceeds from disposition of investment in unconsolidated affiliate
|
—
|
|
|
—
|
|
|
6,919
|
|
|||
Distributions of capital from unconsolidated affiliates
|
11,670
|
|
|
2,766
|
|
|
10,401
|
|
|||
Investments in mortgages and notes receivable
|
—
|
|
|
(7,934
|
)
|
|
(1,772
|
)
|
|||
Repayments of mortgages and notes receivable
|
2,917
|
|
|
1,699
|
|
|
9,381
|
|
|||
Investments in and advances to unconsolidated affiliates
|
(10,063
|
)
|
|
(105
|
)
|
|
(659
|
)
|
|||
Repayments from unconsolidated affiliates
|
—
|
|
|
448
|
|
|
20,800
|
|
|||
Changes in restricted cash and other investing activities
|
(63,943
|
)
|
|
(17,136
|
)
|
|
(9,293
|
)
|
|||
Net cash provided by/(used in) investing activities
|
$
|
(256,222
|
)
|
|
$
|
203,890
|
|
|
$
|
(654,157
|
)
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Financing activities:
|
|
|
|
|
|
||||||
Dividends on Common Stock
|
$
|
(180,805
|
)
|
|
$
|
(166,861
|
)
|
|
$
|
(160,337
|
)
|
Special dividend on Common Stock
|
(81,205
|
)
|
|
—
|
|
|
—
|
|
|||
Redemptions/repurchases of Preferred Stock
|
(28
|
)
|
|
(130
|
)
|
|
(10
|
)
|
|||
Dividends on Preferred Stock
|
(2,492
|
)
|
|
(2,501
|
)
|
|
(2,506
|
)
|
|||
Distributions to noncontrolling interests in the Operating Partnership
|
(4,987
|
)
|
|
(4,888
|
)
|
|
(4,959
|
)
|
|||
Special distribution to noncontrolling interests in the Operating Partnership
|
(2,271
|
)
|
|
—
|
|
|
—
|
|
|||
Distributions to noncontrolling interests in consolidated affiliates
|
(1,784
|
)
|
|
(1,267
|
)
|
|
(1,398
|
)
|
|||
Proceeds from the issuance of Common Stock
|
76,268
|
|
|
264,769
|
|
|
131,341
|
|
|||
Costs paid for the issuance of Common Stock
|
(1,283
|
)
|
|
(3,973
|
)
|
|
(2,040
|
)
|
|||
Repurchase of shares related to tax withholdings
|
(4,008
|
)
|
|
(4,416
|
)
|
|
(3,764
|
)
|
|||
Borrowings on revolving credit facility
|
780,300
|
|
|
287,600
|
|
|
476,300
|
|
|||
Repayments of revolving credit facility
|
(535,300
|
)
|
|
(586,600
|
)
|
|
(386,300
|
)
|
|||
Borrowings on mortgages and notes payable
|
656,001
|
|
|
150,000
|
|
|
475,000
|
|
|||
Repayments of mortgages and notes payable
|
(832,553
|
)
|
|
(395,993
|
)
|
|
(156,120
|
)
|
|||
Payments on financing obligation
|
—
|
|
|
—
|
|
|
(1,722
|
)
|
|||
Payments of debt extinguishment costs
|
(57
|
)
|
|
—
|
|
|
—
|
|
|||
Changes in debt issuance costs and other financing activities
|
(8,324
|
)
|
|
(981
|
)
|
|
(2,003
|
)
|
|||
Net cash provided by/(used in) financing activities
|
(142,528
|
)
|
|
(465,241
|
)
|
|
361,482
|
|
|||
Net increase/(decrease) in cash and cash equivalents
|
(46,218
|
)
|
|
44,454
|
|
|
(3,796
|
)
|
|||
Cash and cash equivalents at beginning of the period
|
49,490
|
|
|
5,036
|
|
|
8,832
|
|
|||
Cash and cash equivalents at end of the period
|
$
|
3,272
|
|
|
$
|
49,490
|
|
|
$
|
5,036
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Cash paid for interest, net of amounts capitalized
|
$
|
68,207
|
|
|
$
|
72,847
|
|
|
$
|
82,242
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Unrealized gains/(losses) on cash flow hedges
|
$
|
1,732
|
|
|
$
|
5,703
|
|
|
$
|
(4,040
|
)
|
Conversions of Common Units to Common Stock
|
511
|
|
|
3,057
|
|
|
1,645
|
|
|||
Changes in accrued capital expenditures
|
(1,912
|
)
|
|
8,580
|
|
|
2,547
|
|
|||
Write-off of fully depreciated real estate assets
|
59,108
|
|
|
39,262
|
|
|
48,698
|
|
|||
Write-off of fully amortized leasing costs
|
40,517
|
|
|
25,569
|
|
|
37,176
|
|
|||
Write-off of fully amortized debt issuance costs
|
11,724
|
|
|
964
|
|
|
1,088
|
|
|||
Adjustment of noncontrolling interests in the Operating Partnership to fair value
|
(354
|
)
|
|
12,993
|
|
|
67
|
|
|||
Unrealized gains on tax increment financing bond
|
—
|
|
|
—
|
|
|
445
|
|
|||
Assumption of mortgages and notes payable related to acquisition activities
|
—
|
|
|
—
|
|
|
19,277
|
|
|||
Contingent consideration in connection with the acquisition of land
|
750
|
|
|
—
|
|
|
900
|
|
|||
Special dividend on Common Stock declared
|
—
|
|
|
(81,205
|
)
|
|
—
|
|
|||
Special distribution to noncontrolling interests in the Operating Partnership declared
|
—
|
|
|
(2,271
|
)
|
|
—
|
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
Assets:
|
|
|
|
||||
Real estate assets, at cost:
|
|
|
|
||||
Land
|
$
|
485,956
|
|
|
$
|
474,375
|
|
Buildings and tenant improvements
|
4,590,490
|
|
|
4,313,373
|
|
||
Development in-process
|
88,452
|
|
|
279,602
|
|
||
Land held for development
|
74,765
|
|
|
77,355
|
|
||
|
5,239,663
|
|
|
5,144,705
|
|
||
Less-accumulated depreciation
|
(1,202,424
|
)
|
|
(1,134,103
|
)
|
||
Net real estate assets
|
4,037,239
|
|
|
4,010,602
|
|
||
Real estate and other assets, net, held for sale
|
14,118
|
|
|
—
|
|
||
Cash and cash equivalents
|
3,272
|
|
|
49,490
|
|
||
Restricted cash
|
85,061
|
|
|
29,141
|
|
||
Accounts receivable, net of allowance of $753 and $624, respectively
|
24,397
|
|
|
17,372
|
|
||
Mortgages and notes receivable, net of allowance of $72 and $105, respectively
|
6,425
|
|
|
8,833
|
|
||
Accrued straight-line rents receivable, net of allowance of $819 and $692, respectively
|
200,131
|
|
|
172,829
|
|
||
Investments in and advances to unconsolidated affiliates
|
23,897
|
|
|
18,846
|
|
||
Deferred leasing costs, net of accumulated amortization of $143,512 and $140,081, respectively
|
200,679
|
|
|
213,500
|
|
||
Prepaid expenses and other assets, net of accumulated amortization of $19,092 and $19,904,
respectively |
28,572
|
|
|
40,437
|
|
||
Total Assets
|
$
|
4,623,791
|
|
|
$
|
4,561,050
|
|
Liabilities, Redeemable Operating Partnership Units and Capital:
|
|
|
|
||||
Mortgages and notes payable, net
|
$
|
2,014,333
|
|
|
$
|
1,948,047
|
|
Accounts payable, accrued expenses and other liabilities
|
228,215
|
|
|
313,885
|
|
||
Total Liabilities
|
2,242,548
|
|
|
2,261,932
|
|
||
Commitments and contingencies
|
|
|
|
||||
Redeemable Operating Partnership Units:
|
|
|
|
||||
Common Units, 2,828,704 and 2,838,704 outstanding, respectively
|
144,009
|
|
|
144,802
|
|
||
Series A Preferred Units (liquidation preference $1,000 per unit), 28,892 and 28,920 units
issued and outstanding, respectively |
28,892
|
|
|
28,920
|
|
||
Total Redeemable Operating Partnership Units
|
172,901
|
|
|
173,722
|
|
||
Capital:
|
|
|
|
||||
Common Units:
|
|
|
|
||||
General partner Common Units, 1,056,868 and 1,040,954 outstanding, respectively
|
21,830
|
|
|
21,023
|
|
||
Limited partner Common Units, 101,801,198 and 100,215,791 outstanding, respectively
|
2,161,258
|
|
|
2,081,463
|
|
||
Accumulated other comprehensive income
|
7,838
|
|
|
4,949
|
|
||
Noncontrolling interests in consolidated affiliates
|
17,416
|
|
|
17,961
|
|
||
Total Capital
|
2,208,342
|
|
|
2,125,396
|
|
||
Total Liabilities, Redeemable Operating Partnership Units and Capital
|
$
|
4,623,791
|
|
|
$
|
4,561,050
|
|
|
|||||||||||
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Rental and other revenues
|
$
|
702,737
|
|
|
$
|
665,634
|
|
|
$
|
604,671
|
|
Operating expenses:
|
|
|
|
|
|
||||||
Rental property and other expenses
|
236,888
|
|
|
231,085
|
|
|
215,941
|
|
|||
Depreciation and amortization
|
227,832
|
|
|
220,140
|
|
|
201,918
|
|
|||
Impairments of real estate assets
|
1,445
|
|
|
—
|
|
|
—
|
|
|||
General and administrative
|
39,648
|
|
|
38,153
|
|
|
37,642
|
|
|||
Total operating expenses
|
505,813
|
|
|
489,378
|
|
|
455,501
|
|
|||
Interest expense:
|
|
|
|
|
|
||||||
Contractual
|
65,939
|
|
|
73,142
|
|
|
82,245
|
|
|||
Amortization of debt issuance costs
|
3,166
|
|
|
3,506
|
|
|
3,645
|
|
|||
Financing obligation
|
—
|
|
|
—
|
|
|
162
|
|
|||
|
69,105
|
|
|
76,648
|
|
|
86,052
|
|
|||
Other income:
|
|
|
|
|
|
||||||
Interest and other income
|
2,309
|
|
|
2,338
|
|
|
1,969
|
|
|||
Losses on debt extinguishment
|
(26
|
)
|
|
—
|
|
|
(243
|
)
|
|||
|
2,283
|
|
|
2,338
|
|
|
1,726
|
|
|||
Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates
|
130,102
|
|
|
101,946
|
|
|
64,844
|
|
|||
Gains on disposition of property
|
54,157
|
|
|
14,807
|
|
|
11,444
|
|
|||
Gain on disposition of investment in unconsolidated affiliate
|
—
|
|
|
—
|
|
|
4,155
|
|
|||
Equity in earnings of unconsolidated affiliates
|
7,404
|
|
|
5,793
|
|
|
5,078
|
|
|||
Income from continuing operations
|
191,663
|
|
|
122,546
|
|
|
85,521
|
|
|||
Discontinued operations:
|
|
|
|
|
|
||||||
Income from discontinued operations
|
—
|
|
|
4,097
|
|
|
15,739
|
|
|||
Net gains on disposition of discontinued operations
|
—
|
|
|
414,496
|
|
|
—
|
|
|||
|
—
|
|
|
418,593
|
|
|
15,739
|
|
|||
Net income
|
191,663
|
|
|
541,139
|
|
|
101,260
|
|
|||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
(1,239
|
)
|
|
(1,253
|
)
|
|
(1,264
|
)
|
|||
Distributions on Preferred Units
|
(2,492
|
)
|
|
(2,501
|
)
|
|
(2,506
|
)
|
|||
Net income available for common unitholders
|
$
|
187,932
|
|
|
$
|
537,385
|
|
|
$
|
97,490
|
|
Earnings per Common Unit – basic:
|
|
|
|
|
|
||||||
Income from continuing operations available for common unitholders
|
$
|
1.79
|
|
|
$
|
1.18
|
|
|
$
|
0.84
|
|
Income from discontinued operations available for common unitholders
|
—
|
|
|
4.15
|
|
|
0.17
|
|
|||
Net income available for common unitholders
|
$
|
1.79
|
|
|
$
|
5.33
|
|
|
$
|
1.01
|
|
Weighted average Common Units outstanding – basic
|
105,106
|
|
|
100,902
|
|
|
96,910
|
|
|||
Earnings per Common Unit – diluted:
|
|
|
|
|
|
||||||
Income from continuing operations available for common unitholders
|
$
|
1.79
|
|
|
$
|
1.18
|
|
|
$
|
0.84
|
|
Income from discontinued operations available for common unitholders
|
—
|
|
|
4.14
|
|
|
0.17
|
|
|||
Net income available for common unitholders
|
$
|
1.79
|
|
|
$
|
5.32
|
|
|
$
|
1.01
|
|
Weighted average Common Units outstanding – diluted
|
105,185
|
|
|
100,989
|
|
|
96,997
|
|
|||
Net income available for common unitholders:
|
|
|
|
|
|
||||||
Income from continuing operations available for common unitholders
|
$
|
187,932
|
|
|
$
|
118,792
|
|
|
$
|
81,751
|
|
Income from discontinued operations available for common unitholders
|
—
|
|
|
418,593
|
|
|
15,739
|
|
|||
Net income available for common unitholders
|
$
|
187,932
|
|
|
$
|
537,385
|
|
|
$
|
97,490
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Comprehensive income:
|
|
|
|
|
|
||||||
Net income
|
$
|
191,663
|
|
|
$
|
541,139
|
|
|
$
|
101,260
|
|
Other comprehensive income/(loss):
|
|
|
|
|
|
||||||
Unrealized gains on tax increment financing bond
|
—
|
|
|
—
|
|
|
445
|
|
|||
Unrealized gains/(losses) on cash flow hedges
|
1,732
|
|
|
5,703
|
|
|
(4,040
|
)
|
|||
Amortization of cash flow hedges
|
1,157
|
|
|
3,057
|
|
|
3,696
|
|
|||
Total other comprehensive income
|
2,889
|
|
|
8,760
|
|
|
101
|
|
|||
Total comprehensive income
|
194,552
|
|
|
549,899
|
|
|
101,361
|
|
|||
Less-comprehensive (income) attributable to noncontrolling interests
|
(1,239
|
)
|
|
(1,253
|
)
|
|
(1,264
|
)
|
|||
Comprehensive income attributable to common unitholders
|
$
|
193,313
|
|
|
$
|
548,646
|
|
|
$
|
100,097
|
|
|
Common Units
|
|
Accumulated
Other
Comprehensive Income/(Loss)
|
|
Noncontrolling
Interests in
Consolidated
Affiliates
|
|
Total
|
||||||||||||
|
General
Partners’
Capital
|
|
Limited
Partners’
Capital
|
|
|||||||||||||||
Balance at December 31, 2014
|
$
|
15,078
|
|
|
$
|
1,492,948
|
|
|
$
|
(3,912
|
)
|
|
$
|
18,109
|
|
|
$
|
1,522,223
|
|
Issuances of Common Units, net of issuance costs and tax withholdings
|
1,255
|
|
|
124,282
|
|
|
—
|
|
|
—
|
|
|
125,537
|
|
|||||
Distributions on Common Units
|
(1,646
|
)
|
|
(162,955
|
)
|
|
—
|
|
|
—
|
|
|
(164,601
|
)
|
|||||
Distributions on Preferred Units
|
(25
|
)
|
|
(2,481
|
)
|
|
—
|
|
|
—
|
|
|
(2,506
|
)
|
|||||
Share-based compensation expense, net of forfeitures
|
69
|
|
|
6,815
|
|
|
—
|
|
|
—
|
|
|
6,884
|
|
|||||
Distributions to noncontrolling interests in consolidated affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,398
|
)
|
|
(1,398
|
)
|
|||||
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner
|
28
|
|
|
2,704
|
|
|
—
|
|
|
—
|
|
|
2,732
|
|
|||||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
(13
|
)
|
|
(1,251
|
)
|
|
—
|
|
|
1,264
|
|
|
—
|
|
|||||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
1,013
|
|
|
100,247
|
|
|
—
|
|
|
—
|
|
|
101,260
|
|
|||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
101
|
|
|
—
|
|
|
101
|
|
|||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
101,361
|
|
|||||||||
Balance at December 31, 2015
|
15,759
|
|
|
1,560,309
|
|
|
(3,811
|
)
|
|
17,975
|
|
|
1,590,232
|
|
|||||
Issuances of Common Units, net of issuance costs and tax withholdings
|
2,564
|
|
|
253,816
|
|
|
—
|
|
|
—
|
|
|
256,380
|
|
|||||
Distributions on Common Units
|
(1,710
|
)
|
|
(169,344
|
)
|
|
—
|
|
|
—
|
|
|
(171,054
|
)
|
|||||
Special distribution on Common Units
|
(832
|
)
|
|
(82,317
|
)
|
|
—
|
|
|
—
|
|
|
(83,149
|
)
|
|||||
Distributions on Preferred Units
|
(25
|
)
|
|
(2,476
|
)
|
|
—
|
|
|
—
|
|
|
(2,501
|
)
|
|||||
Share-based compensation expense, net of forfeitures
|
63
|
|
|
6,188
|
|
|
—
|
|
|
—
|
|
|
6,251
|
|
|||||
Distributions to noncontrolling interests in consolidated affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,267
|
)
|
|
(1,267
|
)
|
|||||
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner
|
(194
|
)
|
|
(19,201
|
)
|
|
—
|
|
|
—
|
|
|
(19,395
|
)
|
|||||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
(13
|
)
|
|
(1,240
|
)
|
|
—
|
|
|
1,253
|
|
|
—
|
|
|||||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
5,411
|
|
|
535,728
|
|
|
—
|
|
|
—
|
|
|
541,139
|
|
|||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
8,760
|
|
|
—
|
|
|
8,760
|
|
|||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
549,899
|
|
|||||||||
Balance at December 31, 2016
|
21,023
|
|
|
2,081,463
|
|
|
4,949
|
|
|
17,961
|
|
|
2,125,396
|
|
|||||
Issuances of Common Units, net of issuance costs and tax withholdings
|
710
|
|
|
70,267
|
|
|
—
|
|
|
—
|
|
|
70,977
|
|
|||||
Distributions on Common Units
|
(1,851
|
)
|
|
(183,221
|
)
|
|
—
|
|
|
—
|
|
|
(185,072
|
)
|
|||||
Distributions on Preferred Units
|
(25
|
)
|
|
(2,467
|
)
|
|
—
|
|
|
—
|
|
|
(2,492
|
)
|
|||||
Share-based compensation expense, net of forfeitures
|
67
|
|
|
6,625
|
|
|
—
|
|
|
—
|
|
|
6,692
|
|
|||||
Distributions to noncontrolling interests in consolidated affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,784
|
)
|
|
(1,784
|
)
|
|||||
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner
|
1
|
|
|
72
|
|
|
—
|
|
|
—
|
|
|
73
|
|
|||||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
(12
|
)
|
|
(1,227
|
)
|
|
—
|
|
|
1,239
|
|
|
—
|
|
|||||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
1,917
|
|
|
189,746
|
|
|
—
|
|
|
—
|
|
|
191,663
|
|
|||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
2,889
|
|
|
—
|
|
|
2,889
|
|
|||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
194,552
|
|
|||||||||
Balance at December 31, 2017
|
$
|
21,830
|
|
|
$
|
2,161,258
|
|
|
$
|
7,838
|
|
|
$
|
17,416
|
|
|
$
|
2,208,342
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
191,663
|
|
|
$
|
541,139
|
|
|
$
|
101,260
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
227,832
|
|
|
220,140
|
|
|
215,957
|
|
|||
Amortization of lease incentives and acquisition-related intangible assets and liabilities
|
(1,172
|
)
|
|
(1,996
|
)
|
|
86
|
|
|||
Share-based compensation expense
|
6,692
|
|
|
6,251
|
|
|
6,884
|
|
|||
Allowance for losses on accounts and accrued straight-line rents receivable
|
1,508
|
|
|
2,001
|
|
|
2,103
|
|
|||
Accrued interest on mortgages and notes receivable
|
(509
|
)
|
|
(502
|
)
|
|
(357
|
)
|
|||
Amortization of debt issuance costs
|
3,166
|
|
|
3,506
|
|
|
3,645
|
|
|||
Amortization of cash flow hedges
|
1,157
|
|
|
3,057
|
|
|
3,696
|
|
|||
Amortization of mortgages and notes payable fair value adjustments
|
705
|
|
|
(234
|
)
|
|
(58
|
)
|
|||
Impairments of real estate assets
|
1,445
|
|
|
—
|
|
|
—
|
|
|||
Losses on debt extinguishment
|
26
|
|
|
—
|
|
|
243
|
|
|||
Net gains on disposition of property
|
(54,157
|
)
|
|
(429,303
|
)
|
|
(11,444
|
)
|
|||
Gain on disposition of investment in unconsolidated affiliate
|
—
|
|
|
—
|
|
|
(4,155
|
)
|
|||
Equity in earnings of unconsolidated affiliates
|
(7,404
|
)
|
|
(5,793
|
)
|
|
(5,078
|
)
|
|||
Changes in financing obligation
|
—
|
|
|
—
|
|
|
162
|
|
|||
Distributions of earnings from unconsolidated affiliates
|
5,078
|
|
|
4,011
|
|
|
4,901
|
|
|||
Settlement of cash flow hedges
|
7,322
|
|
|
—
|
|
|
—
|
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||||||
Accounts receivable
|
(4,974
|
)
|
|
3,401
|
|
|
1,415
|
|
|||
Prepaid expenses and other assets
|
7,908
|
|
|
(4,423
|
)
|
|
1,266
|
|
|||
Accrued straight-line rents receivable
|
(32,234
|
)
|
|
(24,245
|
)
|
|
(22,756
|
)
|
|||
Accounts payable, accrued expenses and other liabilities
|
(1,520
|
)
|
|
(11,618
|
)
|
|
(8,805
|
)
|
|||
Net cash provided by operating activities
|
352,532
|
|
|
305,392
|
|
|
288,965
|
|
|||
Investing activities:
|
|
|
|
|
|
||||||
Investments in acquired real estate and related intangible assets, net of cash acquired
|
(1,840
|
)
|
|
(110,249
|
)
|
|
(408,634
|
)
|
|||
Investments in development in-process
|
(150,944
|
)
|
|
(177,875
|
)
|
|
(136,664
|
)
|
|||
Investments in tenant improvements and deferred leasing costs
|
(109,742
|
)
|
|
(91,423
|
)
|
|
(115,503
|
)
|
|||
Investments in building improvements
|
(63,780
|
)
|
|
(80,672
|
)
|
|
(55,881
|
)
|
|||
Net proceeds from disposition of real estate assets
|
129,503
|
|
|
684,371
|
|
|
26,748
|
|
|||
Net proceeds from disposition of investment in unconsolidated affiliate
|
—
|
|
|
—
|
|
|
6,919
|
|
|||
Distributions of capital from unconsolidated affiliates
|
11,670
|
|
|
3,179
|
|
|
10,401
|
|
|||
Investments in mortgages and notes receivable
|
—
|
|
|
(7,934
|
)
|
|
(1,772
|
)
|
|||
Repayments of mortgages and notes receivable
|
2,917
|
|
|
1,699
|
|
|
9,381
|
|
|||
Investments in and advances to unconsolidated affiliates
|
(10,063
|
)
|
|
(105
|
)
|
|
(659
|
)
|
|||
Repayments from unconsolidated affiliates
|
—
|
|
|
448
|
|
|
20,800
|
|
|||
Changes in restricted cash and other investing activities
|
(63,943
|
)
|
|
(17,136
|
)
|
|
(9,293
|
)
|
|||
Net cash provided by/(used in) investing activities
|
$
|
(256,222
|
)
|
|
$
|
204,303
|
|
|
$
|
(654,157
|
)
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Financing activities:
|
|
|
|
|
|
||||||
Distributions on Common Units
|
$
|
(185,072
|
)
|
|
$
|
(171,054
|
)
|
|
$
|
(164,601
|
)
|
Special distribution on Common Units
|
(83,149
|
)
|
|
—
|
|
|
—
|
|
|||
Redemptions/repurchases of Preferred Units
|
(28
|
)
|
|
(130
|
)
|
|
(10
|
)
|
|||
Distributions on Preferred Units
|
(2,492
|
)
|
|
(2,501
|
)
|
|
(2,506
|
)
|
|||
Distributions to noncontrolling interests in consolidated affiliates
|
(1,784
|
)
|
|
(1,267
|
)
|
|
(1,398
|
)
|
|||
Proceeds from the issuance of Common Units
|
76,268
|
|
|
264,769
|
|
|
131,341
|
|
|||
Costs paid for the issuance of Common Units
|
(1,283
|
)
|
|
(3,973
|
)
|
|
(2,040
|
)
|
|||
Repurchase of units related to tax withholdings
|
(4,008
|
)
|
|
(4,416
|
)
|
|
(3,764
|
)
|
|||
Borrowings on revolving credit facility
|
780,300
|
|
|
287,600
|
|
|
476,300
|
|
|||
Repayments of revolving credit facility
|
(535,300
|
)
|
|
(586,600
|
)
|
|
(386,300
|
)
|
|||
Borrowings on mortgages and notes payable
|
656,001
|
|
|
150,000
|
|
|
475,000
|
|
|||
Repayments of mortgages and notes payable
|
(832,553
|
)
|
|
(395,993
|
)
|
|
(156,120
|
)
|
|||
Payments on financing obligation
|
—
|
|
|
—
|
|
|
(1,722
|
)
|
|||
Payments of debt extinguishment costs
|
(57
|
)
|
|
—
|
|
|
—
|
|
|||
Changes in debt issuance costs and other financing activities
|
(9,371
|
)
|
|
(1,676
|
)
|
|
(2,890
|
)
|
|||
Net cash provided by/(used in) financing activities
|
(142,528
|
)
|
|
(465,241
|
)
|
|
361,290
|
|
|||
Net increase/(decrease) in cash and cash equivalents
|
(46,218
|
)
|
|
44,454
|
|
|
(3,902
|
)
|
|||
Cash and cash equivalents at beginning of the period
|
49,490
|
|
|
5,036
|
|
|
8,938
|
|
|||
Cash and cash equivalents at end of the period
|
$
|
3,272
|
|
|
$
|
49,490
|
|
|
$
|
5,036
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Cash paid for interest, net of amounts capitalized
|
$
|
68,207
|
|
|
$
|
72,847
|
|
|
$
|
82,242
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Unrealized gains/(losses) on cash flow hedges
|
$
|
1,732
|
|
|
$
|
5,703
|
|
|
$
|
(4,040
|
)
|
Changes in accrued capital expenditures
|
(1,912
|
)
|
|
8,580
|
|
|
2,547
|
|
|||
Write-off of fully depreciated real estate assets
|
59,108
|
|
|
39,262
|
|
|
48,698
|
|
|||
Write-off of fully amortized leasing costs
|
40,517
|
|
|
25,569
|
|
|
37,176
|
|
|||
Write-off of fully amortized debt issuance costs
|
11,724
|
|
|
964
|
|
|
1,088
|
|
|||
Adjustment of Redeemable Common Units to fair value
|
(793
|
)
|
|
18,373
|
|
|
(3,619
|
)
|
|||
Unrealized gains on tax increment financing bond
|
—
|
|
|
—
|
|
|
445
|
|
|||
Assumption of mortgages and notes payable related to acquisition activities
|
—
|
|
|
—
|
|
|
19,277
|
|
|||
Contingent consideration in connection with the acquisition of land
|
750
|
|
|
—
|
|
|
900
|
|
|||
Special distribution on Common Units declared
|
—
|
|
|
(83,149
|
)
|
|
—
|
|
•
|
fee simple title to the land underneath one of our buildings in Pittsburgh that was previously subject to a ground lease for a purchase price of $18.5 million. We expensed $0.5 million of acquisition costs (included in general and administrative expenses) related to this acquisition;
|
•
|
an acre of development land in Raleigh for a purchase price, including capitalized acquisition costs, of $5.8 million; and
|
•
|
14 acres of development land in Nashville for a purchase price, including capitalized acquisition costs, of $9.1 million.
|
•
|
a building in Tampa encompassing 528,000 rentable square feet for a net purchase price of $113.5 million and an adjacent land parcel for a purchase price of $2.2 million;
|
•
|
two buildings in Atlanta encompassing 896,000 rentable square feet for a net purchase price of $290.3 million;
|
•
|
land in Atlanta for a purchase price and related transaction costs of $5.2 million (including contingent consideration of $0.9 million); and
|
•
|
our Highwoods DLF 98/29, LLC joint venture partner’s 77.2% interest in a building in Orlando encompassing 168,000 rentable square feet in exchange for the assumption of secured debt recorded at fair value of $19.3 million (see Note 6).
|
|
Total
Purchase Price Allocation
|
||
Real estate assets
|
$
|
275,639
|
|
Acquisition-related intangible assets (in deferred leasing costs)
|
23,722
|
|
|
Acquisition-related below market lease liabilities (in accounts payable, accrued expenses and other liabilities)
|
(9,076
|
)
|
|
Total allocation
|
$
|
290,285
|
|
|
Year Ended December 31,
|
||
|
2015
|
||
|
(unaudited)
|
||
Pro forma revenues
|
$
|
626,067
|
|
Pro forma net income
|
$
|
103,485
|
|
Pro forma net income available for common stockholders
|
$
|
96,797
|
|
Pro forma earnings per share - basic
|
$
|
1.03
|
|
Pro forma earnings per share - diluted
|
$
|
1.02
|
|
•
|
substantially all of our wholly-owned Country Club Plaza assets in Kansas City (which we refer to as the “Plaza assets”) for a sale price of $660.0 million (before closing credits to buyer of $4.8 million). We recorded gains on disposition of discontinued operations of $414.5 million and a gain on disposition of property of $1.3 million related to the land; and
|
•
|
a 32,000 square foot building for a sale price of $4.7 million (before closing credits to buyer of $0.1 million) and recorded a gain on disposition of property of $1.1 million. The buyer, which leased 79% of the building, is a family business controlled by a director of the Company. The sale price exceeded the value set forth in an appraisal performed by a reputable independent commercial real estate services firm that has no relationship with the director or any of his affiliates.
|
Joint Venture
|
|
Location
|
|
Ownership
Interest
|
Plaza Colonnade, Tenant-in-Common
|
|
Kansas City
|
|
50.0%
|
Kessinger/Hunter & Company, LC
|
|
Kansas City
|
|
26.5%
|
Highwoods DLF Forum, LLC
|
|
Raleigh
|
|
25.0%
|
Highwoods DLF 98/29, LLC
|
|
Orlando
|
|
22.8%
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
Assets:
|
|
|
|
||||
Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets)
|
$
|
344,191
|
|
|
$
|
353,581
|
|
Less accumulated amortization
|
(143,512
|
)
|
|
(140,081
|
)
|
||
|
$
|
200,679
|
|
|
$
|
213,500
|
|
|
|
|
|
||||
Liabilities (in accounts payable, accrued expenses and other liabilities):
|
|
|
|
||||
Acquisition-related below market lease liabilities
|
$
|
59,947
|
|
|
$
|
61,221
|
|
Less accumulated amortization
|
(28,214
|
)
|
|
(23,074
|
)
|
||
|
$
|
31,733
|
|
|
$
|
38,147
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization)
|
$
|
41,187
|
|
|
$
|
44,968
|
|
|
$
|
43,332
|
|
Amortization of lease incentives (in rental and other revenues)
|
$
|
1,765
|
|
|
$
|
1,779
|
|
|
$
|
1,493
|
|
Amortization of acquisition-related intangible assets (in rental and other revenues)
|
$
|
2,921
|
|
|
$
|
3,851
|
|
|
$
|
5,062
|
|
Amortization of acquisition-related intangible assets (in rental property and other expenses)
|
$
|
557
|
|
|
$
|
557
|
|
|
$
|
557
|
|
Amortization of acquisition-related below market lease liabilities (in rental and other revenues)
|
$
|
(6,415
|
)
|
|
$
|
(8,183
|
)
|
|
$
|
(7,065
|
)
|
Years Ending December 31,
|
|
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)
|
||||||||||
2018
|
|
$
|
36,566
|
|
|
$
|
1,586
|
|
|
$
|
1,659
|
|
|
$
|
553
|
|
|
$
|
(5,911
|
)
|
2019
|
|
31,032
|
|
|
1,434
|
|
|
1,275
|
|
|
553
|
|
|
(5,454
|
)
|
|||||
2020
|
|
26,614
|
|
|
1,171
|
|
|
959
|
|
|
518
|
|
|
(5,193
|
)
|
|||||
2021
|
|
22,262
|
|
|
948
|
|
|
632
|
|
|
—
|
|
|
(4,383
|
)
|
|||||
2022
|
|
18,098
|
|
|
734
|
|
|
462
|
|
|
—
|
|
|
(3,269
|
)
|
|||||
Thereafter
|
|
48,182
|
|
|
4,033
|
|
|
1,408
|
|
|
—
|
|
|
(7,523
|
)
|
|||||
|
|
$
|
182,754
|
|
|
$
|
9,906
|
|
|
$
|
6,395
|
|
|
$
|
1,624
|
|
|
$
|
(31,733
|
)
|
Weighted average remaining amortization periods as of December 31, 2017 (in years)
|
|
7.6
|
|
|
9.9
|
|
|
6.5
|
|
|
3.0
|
|
|
6.6
|
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
Secured indebtedness:
(1)
|
|
|
|
||||
5.10% (4.22% effective rate) mortgage loan due 2017
(2)
|
$
|
—
|
|
|
$
|
109,138
|
|
6.11% (5.36% effective rate) mortgage loan due 2017
(2)
|
—
|
|
|
19,066
|
|
||
4.00% mortgage loan due 2029
|
98,981
|
|
|
—
|
|
||
|
98,981
|
|
|
128,204
|
|
||
Unsecured indebtedness:
|
|
|
|
||||
5.85% (5.88% effective rate) notes due 2017
(2)
|
—
|
|
|
379,661
|
|
||
7.50% notes due 2018
|
200,000
|
|
|
200,000
|
|
||
3.20% (3.363% effective rate) notes due 2021
(3)
|
298,504
|
|
|
298,072
|
|
||
3.625% (3.752% effective rate) notes due 2023
(4)
|
248,675
|
|
|
248,412
|
|
||
3.875% (4.038% effective rate) notes due 2027
(5)
|
296,334
|
|
|
—
|
|
||
Variable rate term loan due 2018
(6)
|
10,000
|
|
|
—
|
|
||
Variable rate term loan due 2020
(7)
|
225,000
|
|
|
350,000
|
|
||
Variable rate term loan due 2022
(8)
|
200,000
|
|
|
150,000
|
|
||
Variable rate term loan due 2022
(9)
|
200,000
|
|
|
200,000
|
|
||
Revolving credit facility due 2022
(10)
|
245,000
|
|
|
—
|
|
||
|
1,923,513
|
|
|
1,826,145
|
|
||
Less-unamortized debt issuance costs
|
(8,161
|
)
|
|
(6,302
|
)
|
||
Total mortgages and notes payable, net
|
$
|
2,014,333
|
|
|
$
|
1,948,047
|
|
(1)
|
Our secured mortgage loans were collateralized by real estate assets with an aggregate undepreciated book value of $
147.6 million
at
December 31, 2017
. 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)
|
This debt was repaid in
2017
.
|
(3)
|
Net of unamortized original issuance discount of $
1.5 million
and $
1.9 million
as of
December 31, 2017
and
2016
, respectively.
|
(4)
|
Net of unamortized original issuance discount of
$1.3 million
and
$1.6 million
as of
December 31, 2017
and
2016
, respectively.
|
(5)
|
Net of unamortized original issuance discount of
$3.7 million
as of
December 31, 2017
.
|
(6)
|
The interest rate was
2.46%
at
December 31, 2017
.
|
(7)
|
As more fully described in Note 7, we entered into floating-to-fixed interest rate swaps that effectively fix LIBOR for $225.0 million of this loan. Accordingly, the equivalent fixed rate of this amount is
2.78%
.
|
(8)
|
As more fully described in Note 7, we entered into floating-to-fixed interest rate swaps that effectively fix LIBOR for $50.0 million of this loan. Accordingly, the equivalent fixed rate of this amount is
2.79%
. The interest rate on the remaining $150.0 million was
2.47%
at
December 31, 2017
.
|
(9)
|
The interest rate was
2.60%
at
December 31, 2017
.
|
(10)
|
The interest rate was
2.48%
at
December 31, 2017
.
|
Years Ending December 31,
|
|
Principal Amount
|
||
2018
|
|
$
|
210,708
|
|
2019
|
|
781
|
|
|
2020
|
|
225,857
|
|
|
2021
|
|
301,170
|
|
|
2022
|
|
646,452
|
|
|
Thereafter
|
|
637,526
|
|
|
Less-unamortized debt issuance costs
|
|
(8,161
|
)
|
|
|
|
$
|
2,014,333
|
|
•
|
available cash and cash equivalents;
|
•
|
cash flows from operating activities;
|
•
|
issuance of debt securities by the Operating Partnership (some of which debt securities may be hedged to a fixed interest rate pursuant to the forward-starting swaps referred to in Note 7);
|
•
|
issuance of secured debt;
|
•
|
bank term loans;
|
•
|
borrowings under our revolving credit facility;
|
•
|
issuance of equity securities by the Company or the Operating Partnership; and
|
•
|
the disposition of non-core assets.
|
7.
|
Derivative Financial Instruments
|
7.
|
Derivative Financial Instruments - Continued
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
Derivatives:
|
|
|
|
||||
Derivatives designated as cash flow hedges in prepaid expenses and other assets:
|
|
|
|
||||
Interest rate swaps
|
$
|
1,286
|
|
|
$
|
7,619
|
|
Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities:
|
|
|
|
||||
Interest rate swaps
|
$
|
—
|
|
|
$
|
1,870
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Derivatives Designated as Cash Flow Hedges:
|
|
|
|
|
|
||||||
Amount of unrealized gains/(losses) recognized in accumulated other comprehensive income/(loss) on derivatives (effective portion):
|
|
|
|
|
|
||||||
Interest rate swaps
|
$
|
1,732
|
|
|
$
|
5,703
|
|
|
$
|
(4,040
|
)
|
Amount of net losses reclassified out of accumulated other comprehensive income/(loss) into contractual interest expense (effective portion):
|
|
|
|
|
|
||||||
Interest rate swaps
|
$
|
1,157
|
|
|
$
|
3,057
|
|
|
$
|
3,696
|
|
8.
|
Commitments and Contingencies
|
Years Ending December 31,
|
|
Minimum Payments
|
||
2018
|
|
$
|
2,099
|
|
2019
|
|
2,136
|
|
|
2020
|
|
2,175
|
|
|
2021
|
|
2,215
|
|
|
2022
|
|
2,257
|
|
|
Thereafter
|
|
88,532
|
|
|
|
|
$
|
99,414
|
|
9.
|
Noncontrolling Interests
|
|
Year Ended December 31,
|
||||||
|
2017
|
|
2016
|
||||
Beginning noncontrolling interests in the Operating Partnership
|
$
|
144,802
|
|
|
$
|
126,429
|
|
Adjustment of noncontrolling interests in the Operating Partnership to fair value
|
(354
|
)
|
|
12,993
|
|
||
Conversions of Common Units to Common Stock
|
(511
|
)
|
|
(3,057
|
)
|
||
Net income attributable to noncontrolling interests in the Operating Partnership
|
5,059
|
|
|
15,596
|
|
||
Distributions to noncontrolling interests in the Operating Partnership
|
(4,987
|
)
|
|
(7,159
|
)
|
||
Total noncontrolling interests in the Operating Partnership
|
$
|
144,009
|
|
|
$
|
144,802
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Net income available for common stockholders
|
$
|
182,873
|
|
|
$
|
521,789
|
|
|
$
|
94,572
|
|
Increase in additional paid in capital from conversions of Common Units to Common Stock
|
511
|
|
|
3,057
|
|
|
1,645
|
|
|||
Change from net income available for common stockholders and transfers from noncontrolling interests
|
$
|
183,384
|
|
|
$
|
524,846
|
|
|
$
|
96,217
|
|
10.
|
Disclosure About Fair Value of Financial Instruments
|
10.
|
Disclosure About Fair Value of Financial Instruments - Continued
|
|
|
|
Level 1
|
|
Level 2
|
||||||
|
Total
|
|
Quoted Prices
in Active
Markets for Identical Assets or Liabilities
|
|
Significant Observable Inputs
|
||||||
Fair Value at December 31, 2017:
|
|
|
|
|
|
||||||
Assets:
|
|
|
|
|
|
||||||
Mortgages and notes receivable, at fair value
(1)
|
$
|
6,425
|
|
|
$
|
—
|
|
|
$
|
6,425
|
|
Interest rate swaps (in prepaid expenses and other assets)
|
1,286
|
|
|
—
|
|
|
1,286
|
|
|||
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
|
2,388
|
|
|
2,388
|
|
|
—
|
|
|||
Total Assets
|
$
|
10,099
|
|
|
$
|
2,388
|
|
|
$
|
7,711
|
|
Noncontrolling Interests in the Operating Partnership
|
$
|
144,009
|
|
|
$
|
144,009
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
||||||
Mortgages and notes payable, net, at fair value
(1)
|
$
|
2,015,689
|
|
|
$
|
—
|
|
|
$
|
2,015,689
|
|
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
|
2,388
|
|
|
2,388
|
|
|
—
|
|
|||
Total Liabilities
|
$
|
2,018,077
|
|
|
$
|
2,388
|
|
|
$
|
2,015,689
|
|
Fair Value at December 31, 2016:
|
|
|
|
|
|
||||||
Assets:
|
|
|
|
|
|
||||||
Mortgages and notes receivable, at fair value
(1)
|
$
|
8,833
|
|
|
$
|
—
|
|
|
$
|
8,833
|
|
Interest rate swaps (in prepaid expenses and other assets)
|
7,619
|
|
|
—
|
|
|
7,619
|
|
|||
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
|
2,451
|
|
|
2,451
|
|
|
—
|
|
|||
Total Assets
|
$
|
18,903
|
|
|
$
|
2,451
|
|
|
$
|
16,452
|
|
Noncontrolling Interests in the Operating Partnership
|
$
|
144,802
|
|
|
$
|
144,802
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
||||||
Mortgages and notes payable, net, at fair value
(1)
|
$
|
1,965,611
|
|
|
$
|
—
|
|
|
$
|
1,965,611
|
|
Interest rate swaps (in accounts payable, accrued expenses and other liabilities)
|
1,870
|
|
|
—
|
|
|
1,870
|
|
|||
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
|
2,451
|
|
|
2,451
|
|
|
—
|
|
|||
Total Liabilities
|
$
|
1,969,932
|
|
|
$
|
2,451
|
|
|
$
|
1,967,481
|
|
11.
|
Equity
|
|
Year Ended December 31,
|
||||||||||
|
2017
(1)
|
|
2016
(1)
|
|
2015
|
||||||
Ordinary income
|
$
|
1.50
|
|
|
$
|
1.15
|
|
|
$
|
1.50
|
|
Capital gains
|
0.32
|
|
|
1.29
|
|
|
0.13
|
|
|||
Return of capital
|
—
|
|
|
—
|
|
|
0.07
|
|
|||
Total
|
$
|
1.82
|
|
|
$
|
2.44
|
|
|
$
|
1.70
|
|
(1)
|
During 2016, cash dividends declared on Common Stock totaled $2.50 per share, of which approximately
$0.06
was recognized as a 2017 distribution for federal income tax purposes.
|
|
|
Issue Date
|
|
Number of Shares Outstanding
|
|
Carrying Value
|
|
Liquidation Preference Per Share
|
|
Optional Redemption Date
|
|
Annual Dividends Payable Per Share
|
|||||||
|
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
8.625% Series A Cumulative Redeemable
|
|
2/12/1997
|
|
29
|
|
|
$
|
28,892
|
|
|
$
|
1,000
|
|
|
2/12/2027
|
|
$
|
86.25
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
8.625% Series A Cumulative Redeemable
|
|
2/12/1997
|
|
29
|
|
|
$
|
28,920
|
|
|
$
|
1,000
|
|
|
2/12/2027
|
|
$
|
86.25
|
|
11.
|
Equity - Continued
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
8.625% Series A Cumulative Redeemable:
|
|
|
|
|
|
||||||
Ordinary income
|
$
|
71.00
|
|
|
$
|
40.65
|
|
|
$
|
79.23
|
|
Capital gains
|
15.25
|
|
|
45.60
|
|
|
7.02
|
|
|||
Total
|
$
|
86.25
|
|
|
$
|
86.25
|
|
|
$
|
86.25
|
|
|
|
Issue Date
|
|
Number of
Units
Outstanding
|
|
Carrying
Value
|
|
Liquidation Preference
Per Unit
|
|
Optional Redemption
Date
|
|
Annual
Distributions
Payable
Per Unit
|
|||||||
|
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
8.625% Series A Cumulative Redeemable
|
|
2/12/1997
|
|
29
|
|
|
$
|
28,892
|
|
|
$
|
1,000
|
|
|
2/12/2027
|
|
$
|
86.25
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
8.625% Series A Cumulative Redeemable
|
|
2/12/1997
|
|
29
|
|
|
$
|
28,920
|
|
|
$
|
1,000
|
|
|
2/12/2027
|
|
$
|
86.25
|
|
12.
|
Employee Benefit Plans
|
12.
|
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 then current regular dividend rate for a
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.
|
|
Options Outstanding
|
|||||
|
Number of Options
|
|
Weighted Average Exercise Price
|
|||
Stock options outstanding at December 31, 2014
|
577,321
|
|
|
$
|
34.92
|
|
Granted
|
197,408
|
|
|
45.61
|
|
|
Canceled
|
(3,829
|
)
|
|
40.21
|
|
|
Exercised
|
(83,672
|
)
|
|
34.89
|
|
|
Stock options outstanding at December 31, 2015
|
687,228
|
|
|
37.97
|
|
|
Granted
|
244,664
|
|
|
43.55
|
|
|
Canceled
|
(14,743
|
)
|
|
42.64
|
|
|
Exercised
|
(330,034
|
)
|
|
34.26
|
|
|
Stock options outstanding at December 31, 2016
|
587,115
|
|
|
42.26
|
|
|
Granted
|
168,748
|
|
|
52.49
|
|
|
Exercised
|
(115,041
|
)
|
|
40.41
|
|
|
Stock options outstanding at December 31, 2017
(1) (2)
|
640,822
|
|
|
$
|
45.29
|
|
(1)
|
The outstanding options at
December 31, 2017
had a weighted average remaining life of
7.7
years.
|
(2)
|
The Company had
152,745
options exercisable at
December 31, 2017
with a weighted average exercise price of
$41.39
, weighted average remaining life of
6.4
years and intrinsic value of
$1.5 million
. Of these exercisable options, there were no exercise prices higher than the market price of our Common Stock at
December 31, 2017
.
|
12.
|
Employee Benefit Plans - Continued
|
|
Number of Shares
|
|
Weighted Average Grant Date Fair Value
|
|||
Restricted shares outstanding at December 31, 2014
|
222,068
|
|
|
$
|
35.97
|
|
Awarded and issued
(1)
|
71,994
|
|
|
45.91
|
|
|
Vested
(2)
|
(85,809
|
)
|
|
35.14
|
|
|
Forfeited
|
(3,533
|
)
|
|
39.94
|
|
|
Restricted shares outstanding at December 31, 2015
|
204,720
|
|
|
39.74
|
|
|
Awarded and issued
(1)
|
72,698
|
|
|
43.59
|
|
|
Vested
(2)
|
(84,212
|
)
|
|
37.76
|
|
|
Forfeited
|
(4,225
|
)
|
|
41.96
|
|
|
Restricted shares outstanding at December 31, 2016
|
188,981
|
|
|
42.06
|
|
|
Awarded and issued
(1)
|
61,404
|
|
|
52.49
|
|
|
Vested
(2)
|
(78,139
|
)
|
|
40.55
|
|
|
Restricted shares outstanding at December 31, 2017
|
172,246
|
|
|
$
|
46.46
|
|
(1)
|
The weighted average fair value at grant date of time-based restricted stock issued during the years ended
December 31, 2017
,
2016
and
2015
was
$3.2 million
,
$3.2 million
and
$3.3 million
, respectively.
|
(2)
|
The vesting date fair value of time-based restricted stock that vested during the years ended
December 31, 2017
,
2016
and
2015
was
$4.1 million
,
$3.7 million
and
$3.9 million
, respectively. Vested shares include those shares surrendered by employees to satisfy tax withholding obligations in connection with such vesting.
|
12.
|
Employee Benefit Plans - Continued
|
|
2017
|
|
2016
|
|
2015
|
|||
Risk free interest rate
(1)
|
1.6
|
%
|
|
0.9
|
%
|
|
1.0
|
%
|
Common stock dividend yield
(2)
|
3.5
|
%
|
|
4.1
|
%
|
|
3.8
|
%
|
Expected volatility
(3)
|
42.8
|
%
|
|
43.1
|
%
|
|
43.0
|
%
|
(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 then current regular dividend rate for a
one
-year period and the average per share price of Common Stock during the three-month period preceding 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, 2014
|
207,957
|
|
|
$
|
35.70
|
|
Awarded and issued
(1) (3)
|
118,817
|
|
|
37.64
|
|
|
Vested
(2) (3)
|
(129,762
|
)
|
|
31.97
|
|
|
Forfeited
|
(1,709
|
)
|
|
37.25
|
|
|
Restricted shares outstanding at December 31, 2015
|
195,303
|
|
|
36.66
|
|
|
Awarded and issued
(1) (3)
|
64,701
|
|
|
40.87
|
|
|
Vested
(2) (3)
|
(71,617
|
)
|
|
36.50
|
|
|
Forfeited
|
(4,663
|
)
|
|
39.91
|
|
|
Restricted shares outstanding at December 31, 2016
|
183,724
|
|
|
39.82
|
|
|
Awarded and issued
(1) (3)
|
84,013
|
|
|
44.76
|
|
|
Vested
(2) (3)
|
(107,013
|
)
|
|
37.88
|
|
|
Restricted shares outstanding at December 31, 2017
|
160,724
|
|
|
$
|
44.72
|
|
(1)
|
The fair value at grant date of total return-based restricted stock issued during the years ended
December 31, 2017
,
2016
and
2015
was
$2.4 million
,
$2.4 million
and
$2.5 million
, respectively, at target.
|
(2)
|
The vesting date fair value of total return-based restricted stock that vested during the years ended
December 31, 2017
,
2016
and
2015
was
$5.6 million
,
$3.1 million
and
$5.9 million
, respectively, based on the performance of the specific plans. Vested shares include those shares surrendered by employees to satisfy tax withholding obligations in connection with such vesting.
|
(3)
|
The
2017
,
2016
and
2015
amounts include
34,669
,
6,647
and
61,860
additional shares, respectively, that were issued at the end of the applicable measurement period because actual performance exceeded certain levels of performance.
|
12.
|
Employee Benefit Plans - Continued
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Beginning deferred compensation liability
|
$
|
2,451
|
|
|
$
|
2,736
|
|
|
$
|
3,635
|
|
Mark-to-market adjustment to deferred compensation (in general and administrative expenses)
|
492
|
|
|
222
|
|
|
(32
|
)
|
|||
Distributions from deferred compensation plans
|
(555
|
)
|
|
(507
|
)
|
|
(867
|
)
|
|||
Total deferred compensation liability
|
$
|
2,388
|
|
|
$
|
2,451
|
|
|
$
|
2,736
|
|
13.
|
Accumulated Other Comprehensive Income/(Loss)
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
Cash flow hedges:
|
|
|
|
||||
Beginning balance
|
$
|
4,949
|
|
|
$
|
(3,811
|
)
|
Unrealized gains on cash flow hedges
|
1,732
|
|
|
5,703
|
|
||
Amortization of cash flow hedges
(1)
|
1,157
|
|
|
3,057
|
|
||
Total accumulated other comprehensive income
|
$
|
7,838
|
|
|
$
|
4,949
|
|
(1)
|
Amounts reclassified out of accumulated other comprehensive income/(loss) into contractual interest expense.
|
14.
|
Rental and Other Revenues; Rental Property and Other Expenses
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Contractual rents, net
|
$
|
583,825
|
|
|
$
|
561,242
|
|
|
$
|
513,909
|
|
Straight-line rental income, net
|
31,721
|
|
|
23,909
|
|
|
22,054
|
|
|||
Cost recovery income, net
|
53,942
|
|
|
48,730
|
|
|
45,247
|
|
|||
Lease termination fees
|
1,501
|
|
|
2,311
|
|
|
990
|
|
|||
Other miscellaneous operating revenues
|
31,748
|
|
|
29,442
|
|
|
22,471
|
|
|||
|
$
|
702,737
|
|
|
$
|
665,634
|
|
|
$
|
604,671
|
|
2018
|
$
|
595,638
|
|
2019
|
556,405
|
|
|
2020
|
490,429
|
|
|
2021
|
432,602
|
|
|
2022
|
377,964
|
|
|
Thereafter
|
1,378,404
|
|
|
|
$
|
3,831,442
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Utilities, insurance and real estate taxes
|
$
|
126,461
|
|
|
$
|
124,940
|
|
|
$
|
117,470
|
|
Maintenance, cleaning and general building
|
90,764
|
|
|
86,221
|
|
|
79,091
|
|
|||
Property management and administrative expenses
|
13,117
|
|
|
12,588
|
|
|
12,446
|
|
|||
Other miscellaneous operating expenses
|
6,546
|
|
|
7,336
|
|
|
6,934
|
|
|||
|
$
|
236,888
|
|
|
$
|
231,085
|
|
|
$
|
215,941
|
|
15.
|
Real Estate and Other Assets Held For Sale and Discontinued Operations
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
Assets:
|
|
|
|
||||
Land
|
$
|
870
|
|
|
$
|
—
|
|
Buildings and tenant improvements
|
21,318
|
|
|
—
|
|
||
Land held for development
|
355
|
|
|
—
|
|
||
Less-accumulated depreciation
|
(9,304
|
)
|
|
—
|
|
||
Net real estate assets
|
13,239
|
|
|
—
|
|
||
Accrued straight-line rents receivable
|
591
|
|
|
—
|
|
||
Deferred leasing costs, net
|
253
|
|
|
—
|
|
||
Prepaid expenses and other assets
|
35
|
|
|
—
|
|
||
Real estate and other assets, net, held for sale
|
$
|
14,118
|
|
|
$
|
—
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Rental and other revenues
|
$
|
—
|
|
|
$
|
8,484
|
|
|
$
|
50,935
|
|
Operating expenses:
|
|
|
|
|
|
||||||
Rental property and other expenses
|
—
|
|
|
3,334
|
|
|
20,805
|
|
|||
Depreciation and amortization
|
—
|
|
|
—
|
|
|
14,039
|
|
|||
General and administrative
|
—
|
|
|
1,388
|
|
|
2,366
|
|
|||
Total operating expenses
|
—
|
|
|
4,722
|
|
|
37,210
|
|
|||
Interest expense
|
—
|
|
|
85
|
|
|
621
|
|
|||
Other income
|
—
|
|
|
420
|
|
|
2,635
|
|
|||
Income from discontinued operations
|
—
|
|
|
4,097
|
|
|
15,739
|
|
|||
Net gains on disposition of discontinued operations
|
—
|
|
|
414,496
|
|
|
—
|
|
|||
Total income from discontinued operations
|
$
|
—
|
|
|
$
|
418,593
|
|
|
$
|
15,739
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Cash flows from operating activities
|
$
|
—
|
|
|
$
|
2,040
|
|
|
$
|
27,579
|
|
Cash flows from investing activities
|
$
|
—
|
|
|
$
|
417,097
|
|
|
$
|
(16,445
|
)
|
16.
|
Earnings Per Share and Per Unit
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Earnings per Common Share - basic:
|
|
|
|
|
|
||||||
Numerator:
|
|
|
|
|
|
||||||
Income from continuing operations
|
$
|
191,663
|
|
|
$
|
122,546
|
|
|
$
|
85,521
|
|
Net (income) attributable to noncontrolling interests in the Operating Partnership from continuing operations
|
(5,059
|
)
|
|
(3,331
|
)
|
|
(2,443
|
)
|
|||
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
|
(1,239
|
)
|
|
(1,253
|
)
|
|
(1,264
|
)
|
|||
Dividends on Preferred Stock
|
(2,492
|
)
|
|
(2,501
|
)
|
|
(2,506
|
)
|
|||
Income from continuing operations available for common stockholders
|
182,873
|
|
|
115,461
|
|
|
79,308
|
|
|||
Income from discontinued operations
|
—
|
|
|
418,593
|
|
|
15,739
|
|
|||
Net (income) attributable to noncontrolling interests in the Operating Partnership from discontinued operations
|
—
|
|
|
(12,265
|
)
|
|
(475
|
)
|
|||
Income from discontinued operations available for common stockholders
|
—
|
|
|
406,328
|
|
|
15,264
|
|
|||
Net income available for common stockholders
|
$
|
182,873
|
|
|
$
|
521,789
|
|
|
$
|
94,572
|
|
Denominator:
|
|
|
|
|
|
||||||
Denominator for basic earnings per Common Share – weighted average shares
|
102,682
|
|
|
98,439
|
|
|
94,404
|
|
|||
Earnings per Common Share - basic:
|
|
|
|
|
|
||||||
Income from continuing operations available for common stockholders
|
$
|
1.78
|
|
|
$
|
1.17
|
|
|
$
|
0.84
|
|
Income from discontinued operations available for common stockholders
|
—
|
|
|
4.13
|
|
|
0.16
|
|
|||
Net income available for common stockholders
|
$
|
1.78
|
|
|
$
|
5.30
|
|
|
$
|
1.00
|
|
Earnings per Common Share - diluted:
|
|
|
|
|
|
||||||
Numerator:
|
|
|
|
|
|
||||||
Income from continuing operations
|
$
|
191,663
|
|
|
$
|
122,546
|
|
|
$
|
85,521
|
|
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
|
(1,239
|
)
|
|
(1,253
|
)
|
|
(1,264
|
)
|
|||
Dividends on Preferred Stock
|
(2,492
|
)
|
|
(2,501
|
)
|
|
(2,506
|
)
|
|||
Income from continuing operations available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
|
187,932
|
|
|
118,792
|
|
|
81,751
|
|
|||
Income from discontinued operations available for common stockholders
|
—
|
|
|
418,593
|
|
|
15,739
|
|
|||
Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
|
$
|
187,932
|
|
|
$
|
537,385
|
|
|
$
|
97,490
|
|
Denominator:
|
|
|
|
|
|
||||||
Denominator for basic earnings per Common Share – weighted average shares
|
102,682
|
|
|
98,439
|
|
|
94,404
|
|
|||
Add:
|
|
|
|
|
|
||||||
Stock options using the treasury method
|
79
|
|
|
87
|
|
|
87
|
|
|||
Noncontrolling interests Common Units
|
2,833
|
|
|
2,872
|
|
|
2,915
|
|
|||
Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions
(1)
|
105,594
|
|
|
101,398
|
|
|
97,406
|
|
|||
Earnings per Common Share - diluted:
|
|
|
|
|
|
||||||
Income from continuing operations available for common stockholders
|
$
|
1.78
|
|
|
$
|
1.17
|
|
|
$
|
0.84
|
|
Income from discontinued operations available for common stockholders
|
—
|
|
|
4.13
|
|
|
0.16
|
|
|||
Net income available for common stockholders
|
$
|
1.78
|
|
|
$
|
5.30
|
|
|
$
|
1.00
|
|
(1)
|
Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable.
|
16.
|
Earnings Per Share and Per Unit - Continued
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Earnings per Common Unit - basic:
|
|
|
|
|
|
||||||
Numerator:
|
|
|
|
|
|
||||||
Income from continuing operations
|
$
|
191,663
|
|
|
$
|
122,546
|
|
|
$
|
85,521
|
|
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
|
(1,239
|
)
|
|
(1,253
|
)
|
|
(1,264
|
)
|
|||
Distributions on Preferred Units
|
(2,492
|
)
|
|
(2,501
|
)
|
|
(2,506
|
)
|
|||
Income from continuing operations available for common unitholders
|
187,932
|
|
|
118,792
|
|
|
81,751
|
|
|||
Income from discontinued operations available for common unitholders
|
—
|
|
|
418,593
|
|
|
15,739
|
|
|||
Net income available for common unitholders
|
$
|
187,932
|
|
|
$
|
537,385
|
|
|
$
|
97,490
|
|
Denominator:
|
|
|
|
|
|
||||||
Denominator for basic earnings per Common Unit – weighted average units
|
105,106
|
|
|
100,902
|
|
|
96,910
|
|
|||
Earnings per Common Unit - basic:
|
|
|
|
|
|
||||||
Income from continuing operations available for common unitholders
|
$
|
1.79
|
|
|
$
|
1.18
|
|
|
$
|
0.84
|
|
Income from discontinued operations available for common unitholders
|
—
|
|
|
4.15
|
|
|
0.17
|
|
|||
Net income available for common unitholders
|
$
|
1.79
|
|
|
$
|
5.33
|
|
|
$
|
1.01
|
|
Earnings per Common Unit - diluted:
|
|
|
|
|
|
||||||
Numerator:
|
|
|
|
|
|
||||||
Income from continuing operations
|
$
|
191,663
|
|
|
$
|
122,546
|
|
|
$
|
85,521
|
|
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
|
(1,239
|
)
|
|
(1,253
|
)
|
|
(1,264
|
)
|
|||
Distributions on Preferred Units
|
(2,492
|
)
|
|
(2,501
|
)
|
|
(2,506
|
)
|
|||
Income from continuing operations available for common unitholders
|
187,932
|
|
|
118,792
|
|
|
81,751
|
|
|||
Income from discontinued operations available for common unitholders
|
—
|
|
|
418,593
|
|
|
15,739
|
|
|||
Net income available for common unitholders
|
$
|
187,932
|
|
|
$
|
537,385
|
|
|
$
|
97,490
|
|
Denominator:
|
|
|
|
|
|
||||||
Denominator for basic earnings per Common Unit – weighted average units
|
105,106
|
|
|
100,902
|
|
|
96,910
|
|
|||
Add:
|
|
|
|
|
|
||||||
Stock options using the treasury method
|
79
|
|
|
87
|
|
|
87
|
|
|||
Denominator for diluted earnings per Common Unit – adjusted weighted average units and assumed conversions
(1)
|
105,185
|
|
|
100,989
|
|
|
96,997
|
|
|||
Earnings per Common Unit - diluted:
|
|
|
|
|
|
||||||
Income from continuing operations available for common unitholders
|
$
|
1.79
|
|
|
$
|
1.18
|
|
|
$
|
0.84
|
|
Income from discontinued operations available for common unitholders
|
—
|
|
|
4.14
|
|
|
0.17
|
|
|||
Net income available for common unitholders
|
$
|
1.79
|
|
|
$
|
5.32
|
|
|
$
|
1.01
|
|
(1)
|
Includes all unvested restricted stock where distributions on such restricted stock are non-forfeitable.
|
17.
|
Income Taxes
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Current tax expense/(benefit):
|
|
|
|
|
|
||||||
Federal
|
$
|
(177
|
)
|
|
$
|
(38
|
)
|
|
$
|
949
|
|
State
|
105
|
|
|
89
|
|
|
351
|
|
|||
|
(72
|
)
|
|
51
|
|
|
1,300
|
|
|||
Deferred tax expense/(benefit):
|
|
|
|
|
|
||||||
Federal
|
223
|
|
|
(160
|
)
|
|
(233
|
)
|
|||
State
|
(9
|
)
|
|
87
|
|
|
(115
|
)
|
|||
|
214
|
|
|
(73
|
)
|
|
(348
|
)
|
|||
Less tax expense netted against gain on disposition of property
|
—
|
|
|
—
|
|
|
(518
|
)
|
|||
Total income tax expense/(benefit)
|
$
|
142
|
|
|
$
|
(22
|
)
|
|
$
|
434
|
|
18.
|
Segment Information
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Rental and Other Revenues:
|
|
|
|
|
|
||||||
Office:
|
|
|
|
|
|
||||||
Atlanta
|
$
|
140,323
|
|
|
$
|
134,601
|
|
|
$
|
108,590
|
|
Greensboro
|
21,453
|
|
|
20,522
|
|
|
21,251
|
|
|||
Memphis
|
45,430
|
|
|
48,251
|
|
|
47,137
|
|
|||
Nashville
|
111,506
|
|
|
95,912
|
|
|
88,310
|
|
|||
Orlando
|
51,236
|
|
|
46,260
|
|
|
44,621
|
|
|||
Pittsburgh
|
59,103
|
|
|
58,789
|
|
|
59,392
|
|
|||
Raleigh
|
119,254
|
|
|
112,958
|
|
|
102,841
|
|
|||
Richmond
|
43,959
|
|
|
44,315
|
|
|
42,089
|
|
|||
Tampa
|
97,524
|
|
|
89,903
|
|
|
75,715
|
|
|||
Total Office Segment
|
689,788
|
|
|
651,511
|
|
|
589,946
|
|
|||
Other
|
12,949
|
|
|
14,123
|
|
|
14,725
|
|
|||
Total Rental and Other Revenues
|
$
|
702,737
|
|
|
$
|
665,634
|
|
|
$
|
604,671
|
|
18.
|
Segment Information - Continued
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Net Operating Income:
|
|
|
|
|
|
||||||
Office:
|
|
|
|
|
|
||||||
Atlanta
|
$
|
89,575
|
|
|
$
|
84,733
|
|
|
$
|
67,094
|
|
Greensboro
|
13,612
|
|
|
12,781
|
|
|
13,395
|
|
|||
Memphis
|
28,128
|
|
|
30,038
|
|
|
29,534
|
|
|||
Nashville
|
81,204
|
|
|
68,678
|
|
|
62,387
|
|
|||
Orlando
|
30,526
|
|
|
26,525
|
|
|
25,524
|
|
|||
Pittsburgh
|
34,784
|
|
|
34,175
|
|
|
34,348
|
|
|||
Raleigh
|
86,475
|
|
|
80,803
|
|
|
72,981
|
|
|||
Richmond
|
29,946
|
|
|
30,505
|
|
|
27,922
|
|
|||
Tampa
|
62,378
|
|
|
56,493
|
|
|
45,447
|
|
|||
Total Office Segment
|
456,628
|
|
|
424,731
|
|
|
378,632
|
|
|||
Other
|
9,221
|
|
|
9,818
|
|
|
10,098
|
|
|||
Total Net Operating Income
|
465,849
|
|
|
434,549
|
|
|
388,730
|
|
|||
Reconciliation to income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
(227,832
|
)
|
|
(220,140
|
)
|
|
(201,918
|
)
|
|||
Impairments of real estate assets
|
(1,445
|
)
|
|
—
|
|
|
—
|
|
|||
General and administrative expenses
|
(39,648
|
)
|
|
(38,153
|
)
|
|
(37,642
|
)
|
|||
Interest expense
|
(69,105
|
)
|
|
(76,648
|
)
|
|
(86,052
|
)
|
|||
Other income
|
2,283
|
|
|
2,338
|
|
|
1,726
|
|
|||
Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates
|
$
|
130,102
|
|
|
$
|
101,946
|
|
|
$
|
64,844
|
|
18.
|
Segment Information - Continued
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
Total Assets:
|
|
|
|
||||
Office:
|
|
|
|
||||
Atlanta
|
$
|
1,049,100
|
|
|
$
|
1,039,519
|
|
Greensboro
|
134,194
|
|
|
127,887
|
|
||
Memphis
|
218,088
|
|
|
271,115
|
|
||
Nashville
|
806,725
|
|
|
714,905
|
|
||
Orlando
|
306,970
|
|
|
307,021
|
|
||
Pittsburgh
|
334,136
|
|
|
353,816
|
|
||
Raleigh
|
762,331
|
|
|
760,607
|
|
||
Richmond
|
229,468
|
|
|
212,508
|
|
||
Tampa
|
550,375
|
|
|
553,068
|
|
||
Total Office Segment
|
4,391,387
|
|
|
4,340,446
|
|
||
Other
|
232,404
|
|
|
220,604
|
|
||
Total Assets
|
$
|
4,623,791
|
|
|
$
|
4,561,050
|
|
19.
|
Quarterly Financial Data (Unaudited)
|
|
Year Ended December 31, 2017
|
||||||||||||||||||
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Total
|
||||||||||
Rental and other revenues
|
$
|
169,408
|
|
|
$
|
177,283
|
|
|
$
|
180,185
|
|
|
$
|
175,861
|
|
|
$
|
702,737
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
33,485
|
|
|
39,554
|
|
|
59,549
|
|
|
59,075
|
|
|
191,663
|
|
|||||
Net (income) attributable to noncontrolling interests in the Operating Partnership
|
(888
|
)
|
|
(1,043
|
)
|
|
(1,571
|
)
|
|
(1,557
|
)
|
|
(5,059
|
)
|
|||||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
(300
|
)
|
|
(299
|
)
|
|
(315
|
)
|
|
(325
|
)
|
|
(1,239
|
)
|
|||||
Dividends on Preferred Stock
|
(623
|
)
|
|
(623
|
)
|
|
(623
|
)
|
|
(623
|
)
|
|
(2,492
|
)
|
|||||
Net income available for common stockholders
|
$
|
31,674
|
|
|
$
|
37,589
|
|
|
$
|
57,040
|
|
|
$
|
56,570
|
|
|
$
|
182,873
|
|
Earnings per Common Share – basic:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income available for common stockholders
|
$
|
0.31
|
|
|
$
|
0.37
|
|
|
$
|
0.55
|
|
|
$
|
0.55
|
|
|
$
|
1.78
|
|
Earnings per Common Share – diluted:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income available for common stockholders
|
$
|
0.31
|
|
|
$
|
0.37
|
|
|
$
|
0.55
|
|
|
$
|
0.55
|
|
|
$
|
1.78
|
|
|
Year Ended December 31, 2016
|
||||||||||||||||||
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Total
|
||||||||||
Rental and other revenues
|
$
|
164,859
|
|
|
$
|
166,860
|
|
|
$
|
166,269
|
|
|
$
|
167,646
|
|
|
$
|
665,634
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
28,142
|
|
|
33,528
|
|
|
33,840
|
|
|
27,036
|
|
|
122,546
|
|
|||||
Income from discontinued operations
(1)
|
418,593
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
418,593
|
|
|||||
Net income
|
446,735
|
|
|
33,528
|
|
|
33,840
|
|
|
27,036
|
|
|
541,139
|
|
|||||
Net (income) attributable to noncontrolling interests in the Operating Partnership
|
(13,011
|
)
|
|
(939
|
)
|
|
(926
|
)
|
|
(720
|
)
|
|
(15,596
|
)
|
|||||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
(308
|
)
|
|
(314
|
)
|
|
(319
|
)
|
|
(312
|
)
|
|
(1,253
|
)
|
|||||
Dividends on Preferred Stock
|
(626
|
)
|
|
(627
|
)
|
|
(624
|
)
|
|
(624
|
)
|
|
(2,501
|
)
|
|||||
Net income available for common stockholders
|
$
|
432,790
|
|
|
$
|
31,648
|
|
|
$
|
31,971
|
|
|
$
|
25,380
|
|
|
$
|
521,789
|
|
Earnings per Common Share – basic:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations available for common stockholders
|
$
|
0.27
|
|
|
$
|
0.32
|
|
|
$
|
0.32
|
|
|
$
|
0.25
|
|
|
$
|
1.17
|
|
Income from discontinued operations available for common stockholders
|
4.22
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.13
|
|
|||||
Net income available for common stockholders
|
$
|
4.49
|
|
|
$
|
0.32
|
|
|
$
|
0.32
|
|
|
$
|
0.25
|
|
|
$
|
5.30
|
|
Earnings per Common Share – diluted:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations available for common stockholders
|
$
|
0.27
|
|
|
$
|
0.32
|
|
|
$
|
0.32
|
|
|
$
|
0.25
|
|
|
$
|
1.17
|
|
Income from discontinued operations available for common stockholders
|
4.22
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.13
|
|
|||||
Net income available for common stockholders
|
$
|
4.49
|
|
|
$
|
0.32
|
|
|
$
|
0.32
|
|
|
$
|
0.25
|
|
|
$
|
5.30
|
|
(1)
|
See Note 2 for a discussion regarding the sales of the Plaza assets.
|
19.
|
Quarterly Financial Data (Unaudited) - Continued
|
|
Year Ended December 31, 2017
|
||||||||||||||||||
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Total
|
||||||||||
Rental and other revenues
|
$
|
169,408
|
|
|
$
|
177,283
|
|
|
$
|
180,185
|
|
|
$
|
175,861
|
|
|
$
|
702,737
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
33,485
|
|
|
39,554
|
|
|
59,549
|
|
|
59,075
|
|
|
191,663
|
|
|||||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
(300
|
)
|
|
(299
|
)
|
|
(315
|
)
|
|
(325
|
)
|
|
(1,239
|
)
|
|||||
Distributions on Preferred Units
|
(623
|
)
|
|
(623
|
)
|
|
(623
|
)
|
|
(623
|
)
|
|
(2,492
|
)
|
|||||
Net income available for common unitholders
|
$
|
32,562
|
|
|
$
|
38,632
|
|
|
$
|
58,611
|
|
|
$
|
58,127
|
|
|
$
|
187,932
|
|
Earnings per Common Unit – basic:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income available for common unitholders
|
$
|
0.31
|
|
|
$
|
0.37
|
|
|
$
|
0.55
|
|
|
$
|
0.55
|
|
|
$
|
1.79
|
|
Earnings per Common Unit – diluted:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income available for common unitholders
|
$
|
0.31
|
|
|
$
|
0.37
|
|
|
$
|
0.55
|
|
|
$
|
0.55
|
|
|
$
|
1.79
|
|
|
Year Ended December 31, 2016
|
||||||||||||||||||
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Total
|
||||||||||
Rental and other revenues
|
$
|
164,859
|
|
|
$
|
166,860
|
|
|
$
|
166,269
|
|
|
$
|
167,646
|
|
|
$
|
665,634
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
28,142
|
|
|
33,528
|
|
|
33,840
|
|
|
27,036
|
|
|
122,546
|
|
|||||
Income from discontinued operations
(1)
|
418,593
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
418,593
|
|
|||||
Net income
|
446,735
|
|
|
33,528
|
|
|
33,840
|
|
|
27,036
|
|
|
541,139
|
|
|||||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
(308
|
)
|
|
(314
|
)
|
|
(319
|
)
|
|
(312
|
)
|
|
(1,253
|
)
|
|||||
Distributions on Preferred Units
|
(626
|
)
|
|
(627
|
)
|
|
(624
|
)
|
|
(624
|
)
|
|
(2,501
|
)
|
|||||
Net income available for common unitholders
|
$
|
445,801
|
|
|
$
|
32,587
|
|
|
$
|
32,897
|
|
|
$
|
26,100
|
|
|
$
|
537,385
|
|
Earnings per Common Unit – basic:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations available for common unitholders
|
$
|
0.28
|
|
|
$
|
0.33
|
|
|
$
|
0.32
|
|
|
$
|
0.25
|
|
|
$
|
1.18
|
|
Income from discontinued operations available for common unitholders
|
4.23
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.15
|
|
|||||
Net income available for common unitholders
|
$
|
4.51
|
|
|
$
|
0.33
|
|
|
$
|
0.32
|
|
|
$
|
0.25
|
|
|
$
|
5.33
|
|
Earnings per Common Unit – diluted:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations available for common unitholders
|
$
|
0.28
|
|
|
$
|
0.33
|
|
|
$
|
0.32
|
|
|
$
|
0.25
|
|
|
$
|
1.18
|
|
Income from discontinued operations available for common unitholders
|
4.23
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.14
|
|
|||||
Net income available for common unitholders
|
$
|
4.51
|
|
|
$
|
0.33
|
|
|
$
|
0.32
|
|
|
$
|
0.25
|
|
|
$
|
5.32
|
|
(1)
|
See Note 2 for a discussion regarding the sales of the Plaza assets.
|
20.
|
Subsequent Events
|
|
Balance at December 31, 2016
|
|
Additions
|
|
Deductions
|
|
Balance at December 31, 2017
|
||||||||
Allowance for Doubtful Accounts - Straight-Line Rent
|
$
|
692
|
|
|
$
|
1,503
|
|
|
$
|
(1,376
|
)
|
|
$
|
819
|
|
Allowance for Doubtful Accounts - Accounts Receivable
|
624
|
|
|
500
|
|
|
(371
|
)
|
|
753
|
|
||||
Allowance for Doubtful Accounts - Notes Receivable
|
105
|
|
|
—
|
|
|
(33
|
)
|
|
72
|
|
||||
Totals
|
$
|
1,421
|
|
|
$
|
2,003
|
|
|
$
|
(1,780
|
)
|
|
$
|
1,644
|
|
|
Balance at December 31, 2015
|
|
Additions
|
|
Deductions
|
|
Balance at December 31, 2016
|
||||||||
Allowance for Doubtful Accounts - Straight-Line Rent
|
$
|
257
|
|
|
$
|
1,501
|
|
|
$
|
(1,066
|
)
|
|
$
|
692
|
|
Allowance for Doubtful Accounts - Accounts Receivable
|
928
|
|
|
1,045
|
|
|
(1,349
|
)
|
|
624
|
|
||||
Allowance for Doubtful Accounts - Notes Receivable
|
287
|
|
|
—
|
|
|
(182
|
)
|
|
105
|
|
||||
Totals
|
$
|
1,472
|
|
|
$
|
2,546
|
|
|
$
|
(2,597
|
)
|
|
$
|
1,421
|
|
|
Balance at December 31, 2014
|
|
Additions
|
|
Deductions
|
|
Balance at December 31, 2015
|
||||||||
Allowance for Doubtful Accounts - Straight-Line Rent
|
$
|
316
|
|
|
$
|
1,412
|
|
|
$
|
(1,471
|
)
|
|
$
|
257
|
|
Allowance for Doubtful Accounts - Accounts Receivable
|
1,314
|
|
|
1,141
|
|
|
(1,527
|
)
|
|
928
|
|
||||
Allowance for Doubtful Accounts - Notes Receivable
|
275
|
|
|
12
|
|
|
—
|
|
|
287
|
|
||||
Totals
|
$
|
1,905
|
|
|
$
|
2,565
|
|
|
$
|
(2,998
|
)
|
|
$
|
1,472
|
|
|
December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Real estate assets:
|
|
|
|
|
|
||||||
Beginning balance
|
$
|
4,865,103
|
|
|
$
|
4,915,858
|
|
|
$
|
4,271,966
|
|
Additions:
|
|
|
|
|
|
||||||
Acquisitions, development and improvements
|
486,755
|
|
|
353,236
|
|
|
708,793
|
|
|||
Cost of real estate sold and retired
|
(178,104
|
)
|
|
(403,991
|
)
|
|
(64,901
|
)
|
|||
Ending balance (a)
|
$
|
5,173,754
|
|
|
$
|
4,865,103
|
|
|
$
|
4,915,858
|
|
Accumulated depreciation:
|
|
|
|
|
|
||||||
Beginning balance
|
$
|
1,134,103
|
|
|
$
|
1,138,378
|
|
|
$
|
1,024,936
|
|
Depreciation expense
|
184,385
|
|
|
173,072
|
|
|
168,663
|
|
|||
Real estate sold and retired
|
(106,760
|
)
|
|
(177,347
|
)
|
|
(55,221
|
)
|
|||
Ending balance (b)
|
$
|
1,211,728
|
|
|
$
|
1,134,103
|
|
|
$
|
1,138,378
|
|
(a)
|
Reconciliation of total real estate assets to balance sheet caption:
|
|
2017
|
|
2016
|
|
2015
|
||||||
Total per Schedule III
|
$
|
5,173,754
|
|
|
$
|
4,865,103
|
|
|
$
|
4,915,858
|
|
Development in-process exclusive of land included in Schedule III
|
88,452
|
|
|
279,602
|
|
|
194,050
|
|
|||
Real estate assets, net, held for sale
|
(22,543
|
)
|
|
—
|
|
|
(340,581
|
)
|
|||
Total real estate assets
|
$
|
5,239,663
|
|
|
$
|
5,144,705
|
|
|
$
|
4,769,327
|
|
(b)
|
Reconciliation of total accumulated depreciation to balance sheet caption:
|
|
2017
|
|
2016
|
|
2015
|
||||||
Total per Schedule III
|
$
|
1,211,728
|
|
|
$
|
1,134,103
|
|
|
$
|
1,138,378
|
|
Real estate assets, net, held for sale
|
(9,304
|
)
|
|
—
|
|
|
(131,274
|
)
|
|||
Total accumulated depreciation
|
$
|
1,202,424
|
|
|
$
|
1,134,103
|
|
|
$
|
1,007,104
|
|
|
|||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
Initial Costs
|
|
Costs Capitalized
Subsequent to
Acquisition
|
|
Gross Value at Close of Period
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Description
|
|
Property
Type
|
|
2017
Encumbrance |
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Total
Assets (1)
|
|
Accumulated
Depreciation
|
|
Date of
Construction
|
|
Life on
Which
Depreciation
is
Calculated
|
|||||||||||||||||
Atlanta, GA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
1700 Century Circle
|
|
Office
|
|
|
|
$
|
—
|
|
|
$
|
2,482
|
|
|
$
|
2
|
|
|
$
|
1,546
|
|
|
$
|
2
|
|
|
$
|
4,028
|
|
|
$
|
4,030
|
|
|
$
|
1,372
|
|
|
1983
|
|
5-40 yrs.
|
|
1800 Century Boulevard
|
|
Office
|
|
|
|
1,444
|
|
|
29,081
|
|
|
—
|
|
|
10,284
|
|
|
1,444
|
|
|
39,365
|
|
|
40,809
|
|
|
20,376
|
|
|
1975
|
|
5-40 yrs.
|
|||||||||
1825 Century Parkway
|
|
Office
|
|
|
|
864
|
|
|
—
|
|
|
303
|
|
|
13,971
|
|
|
1,167
|
|
|
13,971
|
|
|
15,138
|
|
|
5,367
|
|
|
2002
|
|
5-40 yrs.
|
|||||||||
1875 Century Boulevard
|
|
Office
|
|
|
|
—
|
|
|
8,924
|
|
|
—
|
|
|
8,388
|
|
|
—
|
|
|
17,312
|
|
|
17,312
|
|
|
6,083
|
|
|
1976
|
|
5-40 yrs.
|
|||||||||
1900 Century Boulevard
|
|
Office
|
|
|
|
—
|
|
|
4,744
|
|
|
—
|
|
|
711
|
|
|
—
|
|
|
5,455
|
|
|
5,455
|
|
|
4,872
|
|
|
1971
|
|
5-40 yrs.
|
|||||||||
2200 Century Parkway
|
|
Office
|
|
|
|
—
|
|
|
14,432
|
|
|
—
|
|
|
6,956
|
|
|
—
|
|
|
21,388
|
|
|
21,388
|
|
|
10,078
|
|
|
1971
|
|
5-40 yrs.
|
|||||||||
2400 Century Parkway
|
|
Office
|
|
|
|
—
|
|
|
—
|
|
|
406
|
|
|
15,250
|
|
|
406
|
|
|
15,250
|
|
|
15,656
|
|
|
6,328
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
2500 Century Parkway
|
|
Office
|
|
|
|
—
|
|
|
—
|
|
|
328
|
|
|
11,105
|
|
|
328
|
|
|
11,105
|
|
|
11,433
|
|
|
3,344
|
|
|
2005
|
|
5-40 yrs.
|
|||||||||
2500/2635 Parking Garage
|
|
Office
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,439
|
|
|
—
|
|
|
6,439
|
|
|
6,439
|
|
|
1,917
|
|
|
2005
|
|
5-40 yrs.
|
|||||||||
2600 Century Parkway
|
|
Office
|
|
|
|
—
|
|
|
10,679
|
|
|
—
|
|
|
2,962
|
|
|
—
|
|
|
13,641
|
|
|
13,641
|
|
|
6,943
|
|
|
1973
|
|
5-40 yrs.
|
|||||||||
2635 Century Parkway
|
|
Office
|
|
|
|
—
|
|
|
21,643
|
|
|
—
|
|
|
5,343
|
|
|
—
|
|
|
26,986
|
|
|
26,986
|
|
|
13,052
|
|
|
1980
|
|
5-40 yrs.
|
|||||||||
2800 Century Parkway
|
|
Office
|
|
|
|
—
|
|
|
20,449
|
|
|
—
|
|
|
12,881
|
|
|
—
|
|
|
33,330
|
|
|
33,330
|
|
|
16,521
|
|
|
1983
|
|
5-40 yrs.
|
|||||||||
50 Glenlake
|
|
Office
|
|
|
|
2,500
|
|
|
20,006
|
|
|
—
|
|
|
4,253
|
|
|
2,500
|
|
|
24,259
|
|
|
26,759
|
|
|
11,971
|
|
|
1997
|
|
5-40 yrs.
|
|||||||||
Century Plaza I
|
|
Office
|
|
|
|
1,290
|
|
|
8,567
|
|
|
—
|
|
|
4,648
|
|
|
1,290
|
|
|
13,215
|
|
|
14,505
|
|
|
5,759
|
|
|
1981
|
|
5-40 yrs.
|
|||||||||
Century Plaza II
|
|
Office
|
|
|
|
1,380
|
|
|
7,733
|
|
|
—
|
|
|
3,444
|
|
|
1,380
|
|
|
11,177
|
|
|
12,557
|
|
|
4,892
|
|
|
1984
|
|
5-40 yrs.
|
|||||||||
Federal Aviation Administration
|
|
Office
|
|
|
|
1,196
|
|
|
—
|
|
|
1,416
|
|
|
15,156
|
|
|
2,612
|
|
|
15,156
|
|
|
17,768
|
|
|
5,173
|
|
|
2009
|
|
5-40 yrs.
|
|||||||||
Henry County - Land
|
|
Industrial
|
|
|
|
3,010
|
|
|
—
|
|
|
(284
|
)
|
|
—
|
|
|
2,726
|
|
|
—
|
|
|
2,726
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
5405 Windward Parkway
|
|
Office
|
|
|
|
3,342
|
|
|
32,111
|
|
|
—
|
|
|
19,349
|
|
|
3,342
|
|
|
51,460
|
|
|
54,802
|
|
|
19,971
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
Riverpoint - Land
|
|
Industrial
|
|
|
|
7,250
|
|
|
—
|
|
|
3,913
|
|
|
2,543
|
|
|
11,163
|
|
|
2,543
|
|
|
13,706
|
|
|
513
|
|
|
N/A
|
|
5-40 yrs.
|
|||||||||
Riverwood 100
|
|
Office
|
|
|
|
5,785
|
|
|
64,913
|
|
|
(29
|
)
|
|
14,543
|
|
|
5,756
|
|
|
79,456
|
|
|
85,212
|
|
|
16,534
|
|
|
1989
|
|
5-40 yrs.
|
|||||||||
South Park Residential - Land
|
|
Other
|
|
|
|
50
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
55
|
|
|
—
|
|
|
55
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
South Park Site - Land
|
|
Industrial
|
|
|
|
1,204
|
|
|
—
|
|
|
715
|
|
|
—
|
|
|
1,919
|
|
|
—
|
|
|
1,919
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Tradeport - Land
|
|
Industrial
|
|
|
|
5,243
|
|
|
—
|
|
|
(4,819
|
)
|
|
—
|
|
|
424
|
|
|
—
|
|
|
424
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Two Point Royal
|
|
Office
|
|
|
|
1,793
|
|
|
14,964
|
|
|
—
|
|
|
3,653
|
|
|
1,793
|
|
|
18,617
|
|
|
20,410
|
|
|
9,347
|
|
|
1997
|
|
5-40 yrs.
|
|||||||||
Two Alliance Center
|
|
Office
|
|
|
|
9,579
|
|
|
125,549
|
|
|
—
|
|
|
2,948
|
|
|
9,579
|
|
|
128,497
|
|
|
138,076
|
|
|
24,936
|
|
|
2009
|
|
5-40 yrs.
|
|||||||||
One Alliance Center
|
|
Office
|
|
|
|
14,775
|
|
|
123,071
|
|
|
—
|
|
|
12,027
|
|
|
14,775
|
|
|
135,098
|
|
|
149,873
|
|
|
18,871
|
|
|
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
|
|
Property
Type
|
|
2017
Encumbrance |
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Total
Assets (1)
|
|
Accumulated
Depreciation
|
|
Date of
Construction
|
|
Life on
Which
Depreciation
is
Calculated
|
|||||||||||||||||
10 Glenlake North
|
|
Office
|
|
|
|
5,349
|
|
|
26,334
|
|
|
—
|
|
|
6,217
|
|
|
5,349
|
|
|
32,551
|
|
|
37,900
|
|
|
5,613
|
|
|
2000
|
|
5-40 yrs.
|
|||||||||
10 Glenlake South
|
|
Office
|
|
|
|
5,103
|
|
|
22,811
|
|
|
—
|
|
|
3,545
|
|
|
5,103
|
|
|
26,356
|
|
|
31,459
|
|
|
4,813
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Riverwood 200
|
|
Office
|
|
|
|
—
|
|
|
—
|
|
|
4,777
|
|
|
89,708
|
|
|
4,777
|
|
|
89,708
|
|
|
94,485
|
|
|
1,913
|
|
|
2017
|
|
5-40 yrs.
|
|||||||||
Riverwood 300 Land
|
|
Office
|
|
|
|
400
|
|
|
—
|
|
|
—
|
|
|
710
|
|
|
400
|
|
|
710
|
|
|
1,110
|
|
|
16
|
|
|
N/A
|
|
N/A
|
|||||||||
Monarch Tower
|
|
Office
|
|
|
|
22,717
|
|
|
143,068
|
|
|
—
|
|
|
6,317
|
|
|
22,717
|
|
|
149,385
|
|
|
172,102
|
|
|
11,155
|
|
|
1997
|
|
5-40 yrs.
|
|||||||||
Monarch Plaza
|
|
Office
|
|
|
|
27,678
|
|
|
88,962
|
|
|
—
|
|
|
4,079
|
|
|
27,678
|
|
|
93,041
|
|
|
120,719
|
|
|
7,400
|
|
|
1983
|
|
5-40 yrs.
|
|||||||||
Memphis, TN
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Triad Centre I
|
|
Office
|
|
|
|
2,340
|
|
|
11,385
|
|
|
(849
|
)
|
|
4,448
|
|
|
1,491
|
|
|
15,833
|
|
|
17,324
|
|
|
7,369
|
|
|
1985
|
|
5-40 yrs.
|
|||||||||
Triad Centre II
|
|
Office
|
|
|
|
1,980
|
|
|
8,677
|
|
|
(404
|
)
|
|
5,049
|
|
|
1,576
|
|
|
13,726
|
|
|
15,302
|
|
|
6,010
|
|
|
1987
|
|
5-40 yrs.
|
|||||||||
Atrium I & II
|
|
Office
|
|
|
|
1,570
|
|
|
6,253
|
|
|
—
|
|
|
3,778
|
|
|
1,570
|
|
|
10,031
|
|
|
11,601
|
|
|
4,925
|
|
|
1984
|
|
5-40 yrs.
|
|||||||||
Centrum
|
|
Office
|
|
|
|
1,013
|
|
|
5,580
|
|
|
—
|
|
|
3,236
|
|
|
1,013
|
|
|
8,816
|
|
|
9,829
|
|
|
4,463
|
|
|
1979
|
|
5-40 yrs.
|
|||||||||
Comcast
|
|
Office
|
|
|
|
946
|
|
|
—
|
|
|
—
|
|
|
8,620
|
|
|
946
|
|
|
8,620
|
|
|
9,566
|
|
|
3,857
|
|
|
2008
|
|
5-40 yrs.
|
|||||||||
International Place Phase II
|
|
Office
|
|
|
|
4,884
|
|
|
27,782
|
|
|
—
|
|
|
6,105
|
|
|
4,884
|
|
|
33,887
|
|
|
38,771
|
|
|
17,170
|
|
|
1988
|
|
5-40 yrs.
|
|||||||||
PennMarc Centre
|
|
Office
|
|
|
|
3,607
|
|
|
10,240
|
|
|
—
|
|
|
4,690
|
|
|
3,607
|
|
|
14,930
|
|
|
18,537
|
|
|
4,276
|
|
|
2008
|
|
5-40 yrs.
|
|||||||||
Colonnade
|
|
Office
|
|
|
|
1,300
|
|
|
6,481
|
|
|
267
|
|
|
2,194
|
|
|
1,567
|
|
|
8,675
|
|
|
10,242
|
|
|
4,073
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
Crescent Center
|
|
Office
|
|
|
|
7,875
|
|
|
32,756
|
|
|
(547
|
)
|
|
10,298
|
|
|
7,328
|
|
|
43,054
|
|
|
50,382
|
|
|
10,618
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
Southwind - Land
|
|
Office
|
|
|
|
3,662
|
|
|
—
|
|
|
(2,475
|
)
|
|
—
|
|
|
1,187
|
|
|
—
|
|
|
1,187
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Triad Centre III
|
|
Office
|
|
|
|
1,253
|
|
|
—
|
|
|
—
|
|
|
36,191
|
|
|
1,253
|
|
|
36,191
|
|
|
37,444
|
|
|
9,614
|
|
|
2009
|
|
5-40 yrs.
|
|||||||||
Capital Grille
|
|
Office
|
|
|
|
311
|
|
|
3,258
|
|
|
—
|
|
|
2
|
|
|
311
|
|
|
3,260
|
|
|
3,571
|
|
|
1,035
|
|
|
2014
|
|
5-40 yrs.
|
|||||||||
Seasons 52
|
|
Office
|
|
|
|
320
|
|
|
3,741
|
|
|
—
|
|
|
(39
|
)
|
|
320
|
|
|
3,702
|
|
|
4,022
|
|
|
1,135
|
|
|
2014
|
|
5-40 yrs.
|
|||||||||
International Place IV
|
|
Office
|
|
|
|
4,940
|
|
|
49,141
|
|
|
—
|
|
|
(262
|
)
|
|
4,940
|
|
|
48,879
|
|
|
53,819
|
|
|
3,562
|
|
|
2015
|
|
5-40 yrs.
|
|||||||||
Nashville, TN
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
3322 West End
|
|
Office
|
|
|
|
3,025
|
|
|
27,490
|
|
|
—
|
|
|
9,014
|
|
|
3,025
|
|
|
36,504
|
|
|
39,529
|
|
|
14,562
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
3401 West End
|
|
Office
|
|
|
|
5,862
|
|
|
22,917
|
|
|
—
|
|
|
4,489
|
|
|
5,862
|
|
|
27,406
|
|
|
33,268
|
|
|
14,927
|
|
|
1982
|
|
5-40 yrs.
|
|||||||||
5310 Maryland Way
|
|
Office
|
|
|
|
1,863
|
|
|
7,201
|
|
|
—
|
|
|
3,681
|
|
|
1,863
|
|
|
10,882
|
|
|
12,745
|
|
|
5,067
|
|
|
1994
|
|
5-40 yrs.
|
|||||||||
Cool Springs 1 & 2 Deck
|
|
Office
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,989
|
|
|
—
|
|
|
3,989
|
|
|
3,989
|
|
|
1,011
|
|
|
2007
|
|
5-40 yrs.
|
|||||||||
Cool Springs 3 & 4 Deck
|
|
Office
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,461
|
|
|
—
|
|
|
4,461
|
|
|
4,461
|
|
|
1,195
|
|
|
2007
|
|
5-40 yrs.
|
|||||||||
Cool Springs I
|
|
Office
|
|
|
|
1,583
|
|
|
—
|
|
|
15
|
|
|
13,886
|
|
|
1,598
|
|
|
13,886
|
|
|
15,484
|
|
|
6,423
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Cool Springs II
|
|
Office
|
|
|
|
1,824
|
|
|
—
|
|
|
346
|
|
|
18,714
|
|
|
2,170
|
|
|
18,714
|
|
|
20,884
|
|
|
7,578
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Cool Springs III
|
|
Office
|
|
|
|
1,631
|
|
|
—
|
|
|
804
|
|
|
15,408
|
|
|
2,435
|
|
|
15,408
|
|
|
17,843
|
|
|
4,554
|
|
|
2006
|
|
5-40 yrs.
|
|||||||||
Cool Springs IV
|
|
Office
|
|
|
|
1,715
|
|
|
—
|
|
|
—
|
|
|
19,143
|
|
|
1,715
|
|
|
19,143
|
|
|
20,858
|
|
|
4,870
|
|
|
2008
|
|
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
|
|
Property
Type
|
|
2017
Encumbrance |
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Total
Assets (1)
|
|
Accumulated
Depreciation
|
|
Date of
Construction
|
|
Life on
Which
Depreciation
is
Calculated
|
|||||||||||||||||
Cool Springs V – Healthways
|
|
Office
|
|
|
|
3,688
|
|
|
—
|
|
|
295
|
|
|
53,000
|
|
|
3,983
|
|
|
53,000
|
|
|
56,983
|
|
|
17,596
|
|
|
2007
|
|
5-40 yrs.
|
|||||||||
Harpeth On The Green II
|
|
Office
|
|
|
|
1,419
|
|
|
5,677
|
|
|
—
|
|
|
2,750
|
|
|
1,419
|
|
|
8,427
|
|
|
9,846
|
|
|
4,335
|
|
|
1984
|
|
5-40 yrs.
|
|||||||||
Harpeth On The Green III
|
|
Office
|
|
|
|
1,660
|
|
|
6,649
|
|
|
—
|
|
|
2,921
|
|
|
1,660
|
|
|
9,570
|
|
|
11,230
|
|
|
4,777
|
|
|
1987
|
|
5-40 yrs.
|
|||||||||
Harpeth On The Green IV
|
|
Office
|
|
|
|
1,713
|
|
|
6,842
|
|
|
—
|
|
|
2,436
|
|
|
1,713
|
|
|
9,278
|
|
|
10,991
|
|
|
4,648
|
|
|
1989
|
|
5-40 yrs.
|
|||||||||
Harpeth On The Green V
|
|
Office
|
|
|
|
662
|
|
|
—
|
|
|
197
|
|
|
5,588
|
|
|
859
|
|
|
5,588
|
|
|
6,447
|
|
|
2,824
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
Hickory Trace
|
|
Office
|
|
|
|
1,164
|
|
|
—
|
|
|
164
|
|
|
4,775
|
|
|
1,328
|
|
|
4,775
|
|
|
6,103
|
|
|
1,812
|
|
|
2001
|
|
5-40 yrs.
|
|||||||||
Highwoods Plaza I
|
|
Office
|
|
|
|
1,552
|
|
|
—
|
|
|
307
|
|
|
8,928
|
|
|
1,859
|
|
|
8,928
|
|
|
10,787
|
|
|
4,610
|
|
|
1996
|
|
5-40 yrs.
|
|||||||||
Highwoods Plaza II
|
|
Office
|
|
|
|
1,448
|
|
|
—
|
|
|
307
|
|
|
8,833
|
|
|
1,755
|
|
|
8,833
|
|
|
10,588
|
|
|
3,784
|
|
|
1997
|
|
5-40 yrs.
|
|||||||||
Seven Springs I
|
|
Office
|
|
|
|
2,076
|
|
|
—
|
|
|
592
|
|
|
13,145
|
|
|
2,668
|
|
|
13,145
|
|
|
15,813
|
|
|
5,018
|
|
|
2002
|
|
5-40 yrs.
|
|||||||||
SouthPointe
|
|
Office
|
|
|
|
1,655
|
|
|
—
|
|
|
310
|
|
|
7,827
|
|
|
1,965
|
|
|
7,827
|
|
|
9,792
|
|
|
3,640
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
The Ramparts of Brentwood
|
|
Office
|
|
|
|
2,394
|
|
|
12,806
|
|
|
—
|
|
|
7,343
|
|
|
2,394
|
|
|
20,149
|
|
|
22,543
|
|
|
6,468
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
Westwood South
|
|
Office
|
|
|
|
2,106
|
|
|
—
|
|
|
382
|
|
|
10,603
|
|
|
2,488
|
|
|
10,603
|
|
|
13,091
|
|
|
4,419
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
100 Winners Circle
|
|
Office
|
|
|
|
1,497
|
|
|
7,258
|
|
|
—
|
|
|
2,452
|
|
|
1,497
|
|
|
9,710
|
|
|
11,207
|
|
|
4,707
|
|
|
1987
|
|
5-40 yrs.
|
|||||||||
The Pinnacle at Symphony Place
|
|
Office
|
|
98,981
|
|
|
—
|
|
|
141,469
|
|
|
—
|
|
|
6,160
|
|
|
—
|
|
|
147,629
|
|
|
147,629
|
|
|
23,127
|
|
|
2010
|
|
5-40 yrs.
|
||||||||
Seven Springs East
|
|
Office
|
|
|
|
2,525
|
|
|
37,587
|
|
|
—
|
|
|
123
|
|
|
2,525
|
|
|
37,710
|
|
|
40,235
|
|
|
4,913
|
|
|
2013
|
|
5-40 yrs.
|
|||||||||
The Shops at Seven Springs
|
|
Office
|
|
|
|
803
|
|
|
8,223
|
|
|
—
|
|
|
526
|
|
|
803
|
|
|
8,749
|
|
|
9,552
|
|
|
1,441
|
|
|
2013
|
|
5-40 yrs.
|
|||||||||
Seven Springs West
|
|
Office
|
|
|
|
2,439
|
|
|
51,306
|
|
|
—
|
|
|
1,287
|
|
|
2,439
|
|
|
52,593
|
|
|
55,032
|
|
|
2,508
|
|
|
2016
|
|
5-40 yrs.
|
|||||||||
Seven Springs II
|
|
Office
|
|
|
|
—
|
|
|
—
|
|
|
2,356
|
|
|
30,048
|
|
|
2,356
|
|
|
30,048
|
|
|
32,404
|
|
|
675
|
|
|
2017
|
|
5-40 yrs.
|
|||||||||
Bridgestone Americas, Inc.
|
|
Office
|
|
|
|
—
|
|
|
—
|
|
|
15,639
|
|
|
169,392
|
|
|
15,639
|
|
|
169,392
|
|
|
185,031
|
|
|
1,708
|
|
|
2017
|
|
5-40 yrs.
|
|||||||||
Orlando, FL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Berkshire at MetroCenter
|
|
Office
|
|
|
|
1,265
|
|
|
—
|
|
|
672
|
|
|
11,799
|
|
|
1,937
|
|
|
11,799
|
|
|
13,736
|
|
|
3,838
|
|
|
2007
|
|
5-40 yrs.
|
|||||||||
Capital Plaza Three - Land
|
|
Office
|
|
|
|
2,994
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
3,012
|
|
|
—
|
|
|
3,012
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Eola Park - Land
|
|
Office
|
|
|
|
2,027
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,027
|
|
|
—
|
|
|
2,027
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Oxford - Land
|
|
Office
|
|
|
|
1,100
|
|
|
—
|
|
|
51
|
|
|
458
|
|
|
1,151
|
|
|
458
|
|
|
1,609
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Stratford - Land
|
|
Office
|
|
|
|
2,034
|
|
|
—
|
|
|
(148
|
)
|
|
—
|
|
|
1,886
|
|
|
—
|
|
|
1,886
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Windsor at MetroCenter
|
|
Office
|
|
|
|
—
|
|
|
—
|
|
|
2,060
|
|
|
9,552
|
|
|
2,060
|
|
|
9,552
|
|
|
11,612
|
|
|
3,310
|
|
|
2002
|
|
5-40 yrs.
|
|||||||||
The 1800 Eller Drive Building
|
|
Office
|
|
|
|
—
|
|
|
9,851
|
|
|
—
|
|
|
3,267
|
|
|
—
|
|
|
13,118
|
|
|
13,118
|
|
|
7,822
|
|
|
1983
|
|
5-40 yrs.
|
|||||||||
Seaside Plaza
|
|
Office
|
|
|
|
3,893
|
|
|
29,541
|
|
|
—
|
|
|
5,550
|
|
|
3,893
|
|
|
35,091
|
|
|
38,984
|
|
|
5,494
|
|
|
1982
|
|
5-40 yrs.
|
|||||||||
Capital Plaza Two
|
|
Office
|
|
|
|
4,346
|
|
|
43,394
|
|
|
—
|
|
|
4,849
|
|
|
4,346
|
|
|
48,243
|
|
|
52,589
|
|
|
6,991
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Capital Plaza One
|
|
Office
|
|
|
|
3,482
|
|
|
27,321
|
|
|
—
|
|
|
4,714
|
|
|
3,482
|
|
|
32,035
|
|
|
35,517
|
|
|
4,080
|
|
|
1975
|
|
5-40 yrs.
|
|||||||||
Landmark Center Two
|
|
Office
|
|
|
|
4,743
|
|
|
22,031
|
|
|
—
|
|
|
7,650
|
|
|
4,743
|
|
|
29,681
|
|
|
34,424
|
|
|
4,886
|
|
|
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
|
|
Property
Type
|
|
2017
Encumbrance |
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Total
Assets (1)
|
|
Accumulated
Depreciation
|
|
Date of
Construction
|
|
Life on
Which
Depreciation
is
Calculated
|
|||||||||||||||||
Landmark Center One
|
|
Office
|
|
|
|
6,207
|
|
|
22,655
|
|
|
—
|
|
|
7,613
|
|
|
6,207
|
|
|
30,268
|
|
|
36,475
|
|
|
4,817
|
|
|
1983
|
|
5-40 yrs.
|
|||||||||
Lincoln Plaza
|
|
Office
|
|
|
|
3,490
|
|
|
56,079
|
|
|
—
|
|
|
5,310
|
|
|
3,490
|
|
|
61,389
|
|
|
64,879
|
|
|
6,073
|
|
|
2000
|
|
5-40 yrs.
|
|||||||||
Eola
|
|
Office
|
|
|
|
3,758
|
|
|
11,160
|
|
|
—
|
|
|
3,334
|
|
|
3,758
|
|
|
14,494
|
|
|
18,252
|
|
|
1,423
|
|
|
1969
|
|
5-40 yrs.
|
|||||||||
Greensboro, NC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
6348 Burnt Poplar
|
|
Industrial
|
|
|
|
724
|
|
|
2,900
|
|
|
—
|
|
|
339
|
|
|
724
|
|
|
3,239
|
|
|
3,963
|
|
|
1,801
|
|
|
1990
|
|
5-40 yrs.
|
|||||||||
6350 Burnt Poplar
|
|
Industrial
|
|
|
|
341
|
|
|
1,374
|
|
|
—
|
|
|
784
|
|
|
341
|
|
|
2,158
|
|
|
2,499
|
|
|
975
|
|
|
1992
|
|
5-40 yrs.
|
|||||||||
420 Gallimore Dairy Road
|
|
Office
|
|
|
|
379
|
|
|
1,516
|
|
|
—
|
|
|
924
|
|
|
379
|
|
|
2,440
|
|
|
2,819
|
|
|
1,209
|
|
|
1990
|
|
5-40 yrs.
|
|||||||||
418 Gallimore Dairy Road
|
|
Office
|
|
|
|
462
|
|
|
1,849
|
|
|
—
|
|
|
638
|
|
|
462
|
|
|
2,487
|
|
|
2,949
|
|
|
1,392
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
416 Gallimore Dairy Road
|
|
Office
|
|
|
|
322
|
|
|
1,293
|
|
|
—
|
|
|
603
|
|
|
322
|
|
|
1,896
|
|
|
2,218
|
|
|
955
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
7031 Albert Pick Road
|
|
Office
|
|
|
|
510
|
|
|
2,921
|
|
|
—
|
|
|
2,465
|
|
|
510
|
|
|
5,386
|
|
|
5,896
|
|
|
2,856
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
7029 Albert Pick Road
|
|
Office
|
|
|
|
739
|
|
|
3,237
|
|
|
—
|
|
|
2,112
|
|
|
739
|
|
|
5,349
|
|
|
6,088
|
|
|
2,927
|
|
|
1988
|
|
5-40 yrs.
|
|||||||||
7025 Albert Pick Road
|
|
Office
|
|
|
|
2,393
|
|
|
9,576
|
|
|
—
|
|
|
6,190
|
|
|
2,393
|
|
|
15,766
|
|
|
18,159
|
|
|
7,857
|
|
|
1990
|
|
5-40 yrs.
|
|||||||||
7027 Albert Pick Road
|
|
Office
|
|
|
|
850
|
|
|
—
|
|
|
699
|
|
|
5,160
|
|
|
1,549
|
|
|
5,160
|
|
|
6,709
|
|
|
2,136
|
|
|
1997
|
|
5-40 yrs.
|
|||||||||
7009 Albert Pick Road
|
|
Industrial
|
|
|
|
224
|
|
|
1,068
|
|
|
—
|
|
|
270
|
|
|
224
|
|
|
1,338
|
|
|
1,562
|
|
|
712
|
|
|
1990
|
|
5-40 yrs.
|
|||||||||
426 Gallimore Dairy Road
|
|
Office
|
|
|
|
465
|
|
|
—
|
|
|
380
|
|
|
1,259
|
|
|
845
|
|
|
1,259
|
|
|
2,104
|
|
|
628
|
|
|
1996
|
|
5-40 yrs.
|
|||||||||
422 Gallimore Dairy Road
|
|
Industrial
|
|
|
|
145
|
|
|
1,081
|
|
|
—
|
|
|
382
|
|
|
145
|
|
|
1,463
|
|
|
1,608
|
|
|
856
|
|
|
1990
|
|
5-40 yrs.
|
|||||||||
406 Gallimore Dairy Road
|
|
Office
|
|
|
|
265
|
|
|
—
|
|
|
270
|
|
|
1,096
|
|
|
535
|
|
|
1,096
|
|
|
1,631
|
|
|
565
|
|
|
1996
|
|
5-40 yrs.
|
|||||||||
7021 Albert Pick Road
|
|
Industrial
|
|
|
|
237
|
|
|
1,103
|
|
|
—
|
|
|
279
|
|
|
237
|
|
|
1,382
|
|
|
1,619
|
|
|
766
|
|
|
1985
|
|
5-40 yrs.
|
|||||||||
7019 Albert Pick Road
|
|
Industrial
|
|
|
|
192
|
|
|
946
|
|
|
—
|
|
|
382
|
|
|
192
|
|
|
1,328
|
|
|
1,520
|
|
|
726
|
|
|
1985
|
|
5-40 yrs.
|
|||||||||
7015 Albert Pick Road
|
|
Industrial
|
|
|
|
305
|
|
|
1,219
|
|
|
—
|
|
|
268
|
|
|
305
|
|
|
1,487
|
|
|
1,792
|
|
|
840
|
|
|
1985
|
|
5-40 yrs.
|
|||||||||
7017 Albert Pick Road
|
|
Industrial
|
|
|
|
225
|
|
|
928
|
|
|
—
|
|
|
442
|
|
|
225
|
|
|
1,370
|
|
|
1,595
|
|
|
704
|
|
|
1985
|
|
5-40 yrs.
|
|||||||||
7011 Albert Pick Road
|
|
Industrial
|
|
|
|
171
|
|
|
777
|
|
|
—
|
|
|
358
|
|
|
171
|
|
|
1,135
|
|
|
1,306
|
|
|
628
|
|
|
1990
|
|
5-40 yrs.
|
|||||||||
424 Gallimore Dairy Road
|
|
Office
|
|
|
|
271
|
|
|
—
|
|
|
239
|
|
|
981
|
|
|
510
|
|
|
981
|
|
|
1,491
|
|
|
414
|
|
|
1997
|
|
5-40 yrs.
|
|||||||||
410 Gallimore Dairy Road
|
|
Industrial
|
|
|
|
356
|
|
|
1,613
|
|
|
—
|
|
|
877
|
|
|
356
|
|
|
2,490
|
|
|
2,846
|
|
|
1,319
|
|
|
1985
|
|
5-40 yrs.
|
|||||||||
412 Gallimore Dairy Road
|
|
Industrial
|
|
|
|
374
|
|
|
1,523
|
|
|
—
|
|
|
620
|
|
|
374
|
|
|
2,143
|
|
|
2,517
|
|
|
1,175
|
|
|
1985
|
|
5-40 yrs.
|
|||||||||
408 Gallimore Dairy Road
|
|
Industrial
|
|
|
|
341
|
|
|
1,486
|
|
|
—
|
|
|
966
|
|
|
341
|
|
|
2,452
|
|
|
2,793
|
|
|
1,324
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
414 Gallimore Dairy Road
|
|
Industrial
|
|
|
|
659
|
|
|
2,676
|
|
|
—
|
|
|
967
|
|
|
659
|
|
|
3,643
|
|
|
4,302
|
|
|
1,944
|
|
|
1988
|
|
5-40 yrs.
|
|||||||||
237 Burgess Road
|
|
Industrial
|
|
|
|
860
|
|
|
2,919
|
|
|
—
|
|
|
1,093
|
|
|
860
|
|
|
4,012
|
|
|
4,872
|
|
|
2,073
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
235 Burgess Road
|
|
Industrial
|
|
|
|
1,302
|
|
|
4,392
|
|
|
—
|
|
|
1,641
|
|
|
1,302
|
|
|
6,033
|
|
|
7,335
|
|
|
3,139
|
|
|
1987
|
|
5-40 yrs.
|
|||||||||
241 Burgess Road
|
|
Industrial
|
|
|
|
450
|
|
|
1,517
|
|
|
—
|
|
|
1,276
|
|
|
450
|
|
|
2,793
|
|
|
3,243
|
|
|
1,617
|
|
|
1988
|
|
5-40 yrs.
|
|||||||||
243 Burgess Road
|
|
Industrial
|
|
|
|
452
|
|
|
1,514
|
|
|
—
|
|
|
322
|
|
|
452
|
|
|
1,836
|
|
|
2,288
|
|
|
1,005
|
|
|
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
|
|
Property
Type
|
|
2017
Encumbrance |
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Total
Assets (1)
|
|
Accumulated
Depreciation
|
|
Date of
Construction
|
|
Life on
Which
Depreciation
is
Calculated
|
|||||||||||||||||
496 Gallimore Dairy Road
|
|
Industrial
|
|
|
|
546
|
|
|
—
|
|
|
—
|
|
|
3,342
|
|
|
546
|
|
|
3,342
|
|
|
3,888
|
|
|
1,568
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
494 Gallimore Dairy Road
|
|
Industrial
|
|
|
|
749
|
|
|
—
|
|
|
—
|
|
|
3,101
|
|
|
749
|
|
|
3,101
|
|
|
3,850
|
|
|
1,256
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
486 Gallimore Dairy Road
|
|
Industrial
|
|
|
|
603
|
|
|
—
|
|
|
—
|
|
|
3,281
|
|
|
603
|
|
|
3,281
|
|
|
3,884
|
|
|
1,207
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
488 Gallimore Dairy Road
|
|
Industrial
|
|
|
|
499
|
|
|
—
|
|
|
—
|
|
|
2,473
|
|
|
499
|
|
|
2,473
|
|
|
2,972
|
|
|
1,009
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
490 Gallimore Dairy Road
|
|
Industrial
|
|
|
|
1,733
|
|
|
—
|
|
|
—
|
|
|
5,997
|
|
|
1,733
|
|
|
5,997
|
|
|
7,730
|
|
|
3,441
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Brigham Road - Land
|
|
Industrial
|
|
|
|
7,059
|
|
|
—
|
|
|
(5,510
|
)
|
|
—
|
|
|
1,549
|
|
|
—
|
|
|
1,549
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
651 Brigham Road
|
|
Industrial
|
|
|
|
453
|
|
|
—
|
|
|
360
|
|
|
2,857
|
|
|
813
|
|
|
2,857
|
|
|
3,670
|
|
|
1,132
|
|
|
2002
|
|
5-40 yrs.
|
|||||||||
657 Brigham Road
|
|
Industrial
|
|
|
|
2,733
|
|
|
—
|
|
|
881
|
|
|
10,758
|
|
|
3,614
|
|
|
10,758
|
|
|
14,372
|
|
|
3,042
|
|
|
2006
|
|
5-40 yrs.
|
|||||||||
653 Brigham Road
|
|
Industrial
|
|
|
|
814
|
|
|
—
|
|
|
—
|
|
|
3,587
|
|
|
814
|
|
|
3,587
|
|
|
4,401
|
|
|
903
|
|
|
2007
|
|
5-40 yrs.
|
|||||||||
1501 Highwoods Boulevard
|
|
Office
|
|
|
|
1,476
|
|
|
—
|
|
|
—
|
|
|
8,565
|
|
|
1,476
|
|
|
8,565
|
|
|
10,041
|
|
|
3,182
|
|
|
2001
|
|
5-40 yrs.
|
|||||||||
Jefferson Pilot - Land
|
|
Office
|
|
|
|
11,759
|
|
|
—
|
|
|
(4,311
|
)
|
|
—
|
|
|
7,448
|
|
|
—
|
|
|
7,448
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
4200 Tudor Lane
|
|
Industrial
|
|
|
|
515
|
|
|
—
|
|
|
383
|
|
|
2,860
|
|
|
898
|
|
|
2,860
|
|
|
3,758
|
|
|
1,285
|
|
|
1996
|
|
5-40 yrs.
|
|||||||||
4224 Tudor Lane
|
|
Industrial
|
|
|
|
435
|
|
|
—
|
|
|
288
|
|
|
2,431
|
|
|
723
|
|
|
2,431
|
|
|
3,154
|
|
|
1,041
|
|
|
1996
|
|
5-40 yrs.
|
|||||||||
7023 Albert Pick Road
|
|
Office
|
|
|
|
834
|
|
|
3,459
|
|
|
—
|
|
|
1,189
|
|
|
834
|
|
|
4,648
|
|
|
5,482
|
|
|
2,398
|
|
|
1989
|
|
5-40 yrs.
|
|||||||||
370 Knollwood Street
|
|
Office
|
|
|
|
1,826
|
|
|
7,495
|
|
|
—
|
|
|
4,112
|
|
|
1,826
|
|
|
11,607
|
|
|
13,433
|
|
|
6,000
|
|
|
1994
|
|
5-40 yrs.
|
|||||||||
380 Knollwood Street
|
|
Office
|
|
|
|
2,989
|
|
|
12,029
|
|
|
—
|
|
|
4,888
|
|
|
2,989
|
|
|
16,917
|
|
|
19,906
|
|
|
9,088
|
|
|
1990
|
|
5-40 yrs.
|
|||||||||
Church St Medical Center I
|
|
Office
|
|
|
|
2,734
|
|
|
9,129
|
|
|
—
|
|
|
803
|
|
|
2,734
|
|
|
9,932
|
|
|
12,666
|
|
|
1,446
|
|
|
2003
|
|
5-40 yrs.
|
|||||||||
Church St Medical Center II
|
|
Office
|
|
|
|
2,376
|
|
|
5,451
|
|
|
—
|
|
|
(629
|
)
|
|
2,376
|
|
|
4,822
|
|
|
7,198
|
|
|
667
|
|
|
2007
|
|
5-40 yrs.
|
|||||||||
Church St Medical Center III
|
|
Office
|
|
|
|
925
|
|
|
4,551
|
|
|
—
|
|
|
124
|
|
|
925
|
|
|
4,675
|
|
|
5,600
|
|
|
1,026
|
|
|
2008
|
|
5-40 yrs.
|
|||||||||
628 Green Valley Road
|
|
Office
|
|
|
|
2,906
|
|
|
12,141
|
|
|
—
|
|
|
960
|
|
|
2,906
|
|
|
13,101
|
|
|
16,007
|
|
|
1,895
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
701 Green Valley Road
|
|
Office
|
|
|
|
3,787
|
|
|
7,719
|
|
|
—
|
|
|
900
|
|
|
3,787
|
|
|
8,619
|
|
|
12,406
|
|
|
1,511
|
|
|
1996
|
|
5-40 yrs.
|
|||||||||
661 Brigham Road
|
|
Office
|
|
|
|
890
|
|
|
5,512
|
|
|
—
|
|
|
117
|
|
|
890
|
|
|
5,629
|
|
|
6,519
|
|
|
246
|
|
|
2016
|
|
5-40 yrs.
|
|||||||||
655 Brigham Road
|
|
Office
|
|
|
|
—
|
|
|
—
|
|
|
899
|
|
|
6,470
|
|
|
899
|
|
|
6,470
|
|
|
7,369
|
|
|
70
|
|
|
2017
|
|
5-40 yrs.
|
|||||||||
Pittsburgh, PA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
One PPG Place
|
|
Office
|
|
|
|
9,819
|
|
|
107,643
|
|
|
—
|
|
|
42,053
|
|
|
9,819
|
|
|
149,696
|
|
|
159,515
|
|
|
32,647
|
|
|
1983-1985
|
|
5-40 yrs.
|
|||||||||
Two PPG Place
|
|
Office
|
|
|
|
2,302
|
|
|
10,978
|
|
|
—
|
|
|
8,404
|
|
|
2,302
|
|
|
19,382
|
|
|
21,684
|
|
|
3,030
|
|
|
1983-1985
|
|
5-40 yrs.
|
|||||||||
Three PPG Place
|
|
Office
|
|
|
|
501
|
|
|
2,923
|
|
|
—
|
|
|
4,007
|
|
|
501
|
|
|
6,930
|
|
|
7,431
|
|
|
1,513
|
|
|
1983-1985
|
|
5-40 yrs.
|
|||||||||
Four PPG Place
|
|
Office
|
|
|
|
620
|
|
|
3,239
|
|
|
—
|
|
|
3,215
|
|
|
620
|
|
|
6,454
|
|
|
7,074
|
|
|
1,242
|
|
|
1983-1985
|
|
5-40 yrs.
|
|||||||||
Five PPG Place
|
|
Office
|
|
|
|
803
|
|
|
4,924
|
|
|
—
|
|
|
1,862
|
|
|
803
|
|
|
6,786
|
|
|
7,589
|
|
|
1,772
|
|
|
1983-1985
|
|
5-40 yrs.
|
|||||||||
Six PPG Place
|
|
Office
|
|
|
|
3,353
|
|
|
25,602
|
|
|
—
|
|
|
10,234
|
|
|
3,353
|
|
|
35,836
|
|
|
39,189
|
|
|
6,002
|
|
|
1983-1985
|
|
5-40 yrs.
|
|||||||||
EQT Plaza
|
|
Office
|
|
|
|
—
|
|
|
83,812
|
|
|
16,457
|
|
|
11,785
|
|
|
16,457
|
|
|
95,597
|
|
|
112,054
|
|
|
18,005
|
|
|
1987
|
|
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
|
|
Property
Type
|
|
2017
Encumbrance |
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Total
Assets (1)
|
|
Accumulated
Depreciation
|
|
Date of
Construction
|
|
Life on
Which
Depreciation
is
Calculated
|
|||||||||||||||||
Raleigh, NC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
3600 Glenwood Avenue
|
|
Office
|
|
|
|
—
|
|
|
10,994
|
|
|
—
|
|
|
4,800
|
|
|
—
|
|
|
15,794
|
|
|
15,794
|
|
|
8,378
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
3737 Glenwood Avenue
|
|
Office
|
|
|
|
—
|
|
|
—
|
|
|
318
|
|
|
16,525
|
|
|
318
|
|
|
16,525
|
|
|
16,843
|
|
|
7,169
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
4800 North Park
|
|
Office
|
|
|
|
2,678
|
|
|
17,630
|
|
|
—
|
|
|
6,169
|
|
|
2,678
|
|
|
23,799
|
|
|
26,477
|
|
|
14,640
|
|
|
1985
|
|
5-40 yrs.
|
|||||||||
5000 North Park
|
|
Office
|
|
|
|
1,010
|
|
|
4,612
|
|
|
(49
|
)
|
|
4,218
|
|
|
961
|
|
|
8,830
|
|
|
9,791
|
|
|
4,861
|
|
|
1980
|
|
5-40 yrs.
|
|||||||||
801 Raleigh Corporate Center
|
|
Office
|
|
|
|
828
|
|
|
—
|
|
|
272
|
|
|
10,798
|
|
|
1,100
|
|
|
10,798
|
|
|
11,898
|
|
|
3,934
|
|
|
2002
|
|
5-40 yrs.
|
|||||||||
Blue Ridge I
|
|
Office
|
|
|
|
722
|
|
|
4,606
|
|
|
—
|
|
|
1,818
|
|
|
722
|
|
|
6,424
|
|
|
7,146
|
|
|
3,596
|
|
|
1982
|
|
5-40 yrs.
|
|||||||||
Blue Ridge II
|
|
Office
|
|
|
|
462
|
|
|
1,410
|
|
|
—
|
|
|
871
|
|
|
462
|
|
|
2,281
|
|
|
2,743
|
|
|
1,447
|
|
|
1988
|
|
5-40 yrs.
|
|||||||||
Cape Fear
|
|
Office
|
|
|
|
131
|
|
|
1,630
|
|
|
(2
|
)
|
|
1,238
|
|
|
129
|
|
|
2,868
|
|
|
2,997
|
|
|
2,404
|
|
|
1979
|
|
5-40 yrs.
|
|||||||||
Catawba
|
|
Office
|
|
|
|
125
|
|
|
1,635
|
|
|
(2
|
)
|
|
1,258
|
|
|
123
|
|
|
2,893
|
|
|
3,016
|
|
|
2,719
|
|
|
1980
|
|
5-40 yrs.
|
|||||||||
CentreGreen One
|
|
Office
|
|
|
|
1,529
|
|
|
—
|
|
|
(391
|
)
|
|
10,724
|
|
|
1,138
|
|
|
10,724
|
|
|
11,862
|
|
|
5,149
|
|
|
2000
|
|
5-40 yrs.
|
|||||||||
CentreGreen Two
|
|
Office
|
|
|
|
1,653
|
|
|
—
|
|
|
(389
|
)
|
|
10,344
|
|
|
1,264
|
|
|
10,344
|
|
|
11,608
|
|
|
3,944
|
|
|
2001
|
|
5-40 yrs.
|
|||||||||
CentreGreen Three
|
|
Office
|
|
|
|
—
|
|
|
—
|
|
|
1,291
|
|
|
31,860
|
|
|
1,291
|
|
|
31,860
|
|
|
33,151
|
|
|
374
|
|
|
2017
|
|
5-40 yrs.
|
|||||||||
CentreGreen Four
|
|
Office
|
|
|
|
1,779
|
|
|
—
|
|
|
(397
|
)
|
|
13,850
|
|
|
1,382
|
|
|
13,850
|
|
|
15,232
|
|
|
3,680
|
|
|
2002
|
|
5-40 yrs.
|
|||||||||
CentreGreen Five
|
|
Office
|
|
|
|
1,280
|
|
|
—
|
|
|
55
|
|
|
12,693
|
|
|
1,335
|
|
|
12,693
|
|
|
14,028
|
|
|
4,368
|
|
|
2008
|
|
5-40 yrs.
|
|||||||||
Cottonwood
|
|
Office
|
|
|
|
609
|
|
|
3,244
|
|
|
—
|
|
|
615
|
|
|
609
|
|
|
3,859
|
|
|
4,468
|
|
|
2,295
|
|
|
1983
|
|
5-40 yrs.
|
|||||||||
Dogwood
|
|
Office
|
|
|
|
766
|
|
|
2,769
|
|
|
—
|
|
|
241
|
|
|
766
|
|
|
3,010
|
|
|
3,776
|
|
|
1,716
|
|
|
1983
|
|
5-40 yrs.
|
|||||||||
GlenLake - Land
|
|
Office
|
|
|
|
13,003
|
|
|
—
|
|
|
(8,359
|
)
|
|
114
|
|
|
4,644
|
|
|
114
|
|
|
4,758
|
|
|
48
|
|
|
N/A
|
|
5-40 yrs.
|
|||||||||
GlenLake One
|
|
Office
|
|
|
|
924
|
|
|
—
|
|
|
1,324
|
|
|
21,641
|
|
|
2,248
|
|
|
21,641
|
|
|
23,889
|
|
|
7,917
|
|
|
2002
|
|
5-40 yrs.
|
|||||||||
GlenLake Four
|
|
Office
|
|
|
|
1,659
|
|
|
—
|
|
|
493
|
|
|
20,615
|
|
|
2,152
|
|
|
20,615
|
|
|
22,767
|
|
|
6,379
|
|
|
2006
|
|
5-40 yrs.
|
|||||||||
GlenLake Six
|
|
Office
|
|
|
|
941
|
|
|
—
|
|
|
(365
|
)
|
|
22,812
|
|
|
576
|
|
|
22,812
|
|
|
23,388
|
|
|
7,252
|
|
|
2008
|
|
5-40 yrs.
|
|||||||||
701 Raleigh Corporate Center
|
|
Office
|
|
|
|
1,304
|
|
|
—
|
|
|
540
|
|
|
14,957
|
|
|
1,844
|
|
|
14,957
|
|
|
16,801
|
|
|
7,051
|
|
|
1996
|
|
5-40 yrs.
|
|||||||||
Highwoods Centre
|
|
Office
|
|
|
|
531
|
|
|
—
|
|
|
(267
|
)
|
|
7,926
|
|
|
264
|
|
|
7,926
|
|
|
8,190
|
|
|
3,521
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
Highwoods Office Center North - Land
|
|
Office
|
|
|
|
357
|
|
|
49
|
|
|
—
|
|
|
—
|
|
|
357
|
|
|
49
|
|
|
406
|
|
|
37
|
|
|
N/A
|
|
5-40 yrs.
|
|||||||||
Highwoods Tower Two
|
|
Office
|
|
|
|
365
|
|
|
—
|
|
|
503
|
|
|
21,269
|
|
|
868
|
|
|
21,269
|
|
|
22,137
|
|
|
9,267
|
|
|
2001
|
|
5-40 yrs.
|
|||||||||
Inveresk Parcel 2 - Land
|
|
Office
|
|
|
|
657
|
|
|
—
|
|
|
38
|
|
|
103
|
|
|
695
|
|
|
103
|
|
|
798
|
|
|
6
|
|
|
N/A
|
|
N/A
|
|||||||||
Lake Boone Medical Center
|
|
Office
|
|
|
|
1,450
|
|
|
6,311
|
|
|
—
|
|
|
580
|
|
|
1,450
|
|
|
6,891
|
|
|
8,341
|
|
|
1,341
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
4620 Creekstone Drive
|
|
Office
|
|
|
|
149
|
|
|
—
|
|
|
107
|
|
|
3,191
|
|
|
256
|
|
|
3,191
|
|
|
3,447
|
|
|
1,315
|
|
|
2001
|
|
5-40 yrs.
|
|||||||||
4825 Creekstone Drive
|
|
Office
|
|
|
|
398
|
|
|
—
|
|
|
293
|
|
|
11,304
|
|
|
691
|
|
|
11,304
|
|
|
11,995
|
|
|
4,827
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Pamlico
|
|
Office
|
|
|
|
289
|
|
|
—
|
|
|
—
|
|
|
10,507
|
|
|
289
|
|
|
10,507
|
|
|
10,796
|
|
|
7,794
|
|
|
1980
|
|
5-40 yrs.
|
|||||||||
Progress Center Renovation
|
|
Office
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
362
|
|
|
—
|
|
|
362
|
|
|
362
|
|
|
353
|
|
|
2003
|
|
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
|
|
Property
Type
|
|
2017
Encumbrance |
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Total
Assets (1)
|
|
Accumulated
Depreciation
|
|
Date of
Construction
|
|
Life on
Which
Depreciation
is
Calculated
|
|||||||||||||||||
PNC Plaza
|
|
Office
|
|
|
|
1,206
|
|
|
—
|
|
|
—
|
|
|
71,350
|
|
|
1,206
|
|
|
71,350
|
|
|
72,556
|
|
|
21,320
|
|
|
2008
|
|
5-40 yrs.
|
|||||||||
Rexwoods Center I
|
|
Office
|
|
|
|
878
|
|
|
3,730
|
|
|
—
|
|
|
2,488
|
|
|
878
|
|
|
6,218
|
|
|
7,096
|
|
|
3,480
|
|
|
1990
|
|
5-40 yrs.
|
|||||||||
Rexwoods Center II
|
|
Office
|
|
|
|
362
|
|
|
1,818
|
|
|
—
|
|
|
1,436
|
|
|
362
|
|
|
3,254
|
|
|
3,616
|
|
|
1,626
|
|
|
1993
|
|
5-40 yrs.
|
|||||||||
Rexwoods Center III
|
|
Office
|
|
|
|
919
|
|
|
2,816
|
|
|
—
|
|
|
1,641
|
|
|
919
|
|
|
4,457
|
|
|
5,376
|
|
|
2,435
|
|
|
1992
|
|
5-40 yrs.
|
|||||||||
Rexwoods Center IV
|
|
Office
|
|
|
|
586
|
|
|
—
|
|
|
—
|
|
|
4,752
|
|
|
586
|
|
|
4,752
|
|
|
5,338
|
|
|
2,450
|
|
|
1995
|
|
5-40 yrs.
|
|||||||||
Rexwoods Center V
|
|
Office
|
|
|
|
1,301
|
|
|
—
|
|
|
184
|
|
|
6,376
|
|
|
1,485
|
|
|
6,376
|
|
|
7,861
|
|
|
2,881
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
Riverbirch
|
|
Office
|
|
|
|
469
|
|
|
4,038
|
|
|
23
|
|
|
5,226
|
|
|
492
|
|
|
9,264
|
|
|
9,756
|
|
|
2,100
|
|
|
1987
|
|
5-40 yrs.
|
|||||||||
Six Forks Center I
|
|
Office
|
|
|
|
666
|
|
|
2,665
|
|
|
—
|
|
|
1,997
|
|
|
666
|
|
|
4,662
|
|
|
5,328
|
|
|
2,686
|
|
|
1982
|
|
5-40 yrs.
|
|||||||||
Six Forks Center II
|
|
Office
|
|
|
|
1,086
|
|
|
4,533
|
|
|
—
|
|
|
2,807
|
|
|
1,086
|
|
|
7,340
|
|
|
8,426
|
|
|
3,971
|
|
|
1983
|
|
5-40 yrs.
|
|||||||||
Six Forks Center III
|
|
Office
|
|
|
|
862
|
|
|
4,411
|
|
|
—
|
|
|
3,051
|
|
|
862
|
|
|
7,462
|
|
|
8,324
|
|
|
4,254
|
|
|
1987
|
|
5-40 yrs.
|
|||||||||
Smoketree Tower
|
|
Office
|
|
|
|
2,353
|
|
|
11,743
|
|
|
—
|
|
|
7,109
|
|
|
2,353
|
|
|
18,852
|
|
|
21,205
|
|
|
9,725
|
|
|
1984
|
|
5-40 yrs.
|
|||||||||
4601 Creekstone Drive
|
|
Office
|
|
|
|
255
|
|
|
—
|
|
|
217
|
|
|
6,358
|
|
|
472
|
|
|
6,358
|
|
|
6,830
|
|
|
2,956
|
|
|
1997
|
|
5-40 yrs.
|
|||||||||
Weston - Land
|
|
Other
|
|
|
|
22,771
|
|
|
—
|
|
|
(19,526
|
)
|
|
—
|
|
|
3,245
|
|
|
—
|
|
|
3,245
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
4625 Creekstone Drive
|
|
Office
|
|
|
|
458
|
|
|
—
|
|
|
268
|
|
|
6,415
|
|
|
726
|
|
|
6,415
|
|
|
7,141
|
|
|
3,186
|
|
|
1995
|
|
5-40 yrs.
|
|||||||||
11000 Weston Parkway
|
|
Office
|
|
|
|
2,651
|
|
|
18,850
|
|
|
—
|
|
|
1,318
|
|
|
2,651
|
|
|
20,168
|
|
|
22,819
|
|
|
4,560
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
GlenLake Five
|
|
Office
|
|
|
|
2,263
|
|
|
30,264
|
|
|
—
|
|
|
3,431
|
|
|
2,263
|
|
|
33,695
|
|
|
35,958
|
|
|
3,900
|
|
|
2014
|
|
5-40 yrs.
|
|||||||||
11800 Weston Parkway
|
|
Office
|
|
|
|
826
|
|
|
13,188
|
|
|
—
|
|
|
2
|
|
|
826
|
|
|
13,190
|
|
|
14,016
|
|
|
1,320
|
|
|
2014
|
|
5-40 yrs.
|
|||||||||
CentreGreen Café
|
|
Office
|
|
|
|
41
|
|
|
3,509
|
|
|
—
|
|
|
—
|
|
|
41
|
|
|
3,509
|
|
|
3,550
|
|
|
272
|
|
|
2014
|
|
5-40 yrs.
|
|||||||||
CentreGreen Fitness Center
|
|
Office
|
|
|
|
27
|
|
|
2,322
|
|
|
—
|
|
|
—
|
|
|
27
|
|
|
2,322
|
|
|
2,349
|
|
|
180
|
|
|
2014
|
|
5-40 yrs.
|
|||||||||
One City Plaza
|
|
Office
|
|
|
|
11,288
|
|
|
68,375
|
|
|
—
|
|
|
18,767
|
|
|
11,288
|
|
|
87,142
|
|
|
98,430
|
|
|
9,401
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
Weston Lakefront I
|
|
Office
|
|
|
|
8,522
|
|
|
42,267
|
|
|
—
|
|
|
168
|
|
|
8,522
|
|
|
42,435
|
|
|
50,957
|
|
|
3,876
|
|
|
2015
|
|
5-40 yrs.
|
|||||||||
Weston Lakefront II
|
|
Office
|
|
|
|
8,522
|
|
|
45,870
|
|
|
—
|
|
|
151
|
|
|
8,522
|
|
|
46,021
|
|
|
54,543
|
|
|
3,925
|
|
|
2015
|
|
5-40 yrs.
|
|||||||||
Edison - Land
|
|
Office
|
|
|
|
5,984
|
|
|
—
|
|
|
2,605
|
|
|
—
|
|
|
8,589
|
|
|
—
|
|
|
8,589
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Charter Square
|
|
Office
|
|
|
|
7,267
|
|
|
65,881
|
|
|
—
|
|
|
4,191
|
|
|
7,267
|
|
|
70,072
|
|
|
77,339
|
|
|
2,573
|
|
|
2015
|
|
5-40 yrs.
|
|||||||||
Other Property
|
|
Other
|
|
|
|
39,376
|
|
|
20,868
|
|
|
(33,209
|
)
|
|
(695
|
)
|
|
6,167
|
|
|
20,173
|
|
|
26,340
|
|
|
10,615
|
|
|
N/A
|
|
N/A
|
|||||||||
Richmond, VA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
4900 Cox Road
|
|
Office
|
|
|
|
1,324
|
|
|
5,311
|
|
|
15
|
|
|
3,226
|
|
|
1,339
|
|
|
8,537
|
|
|
9,876
|
|
|
4,574
|
|
|
1991
|
|
5-40 yrs.
|
|||||||||
Colonnade Building
|
|
Office
|
|
|
|
1,364
|
|
|
6,105
|
|
|
—
|
|
|
2,401
|
|
|
1,364
|
|
|
8,506
|
|
|
9,870
|
|
|
3,059
|
|
|
2003
|
|
5-40 yrs.
|
|||||||||
Dominion Place - Pitts Parcel - Land
|
|
Office
|
|
|
|
1,101
|
|
|
—
|
|
|
(343
|
)
|
|
—
|
|
|
758
|
|
|
—
|
|
|
758
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Markel 4521
|
|
Office
|
|
|
|
1,581
|
|
|
13,299
|
|
|
168
|
|
|
(1,244
|
)
|
|
1,749
|
|
|
12,055
|
|
|
13,804
|
|
|
5,213
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Hamilton Beach/Proctor-Silex
|
|
Office
|
|
|
|
1,086
|
|
|
4,345
|
|
|
10
|
|
|
2,492
|
|
|
1,096
|
|
|
6,837
|
|
|
7,933
|
|
|
3,378
|
|
|
1986
|
|
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
|
|
Property
Type
|
|
2017
Encumbrance |
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Total
Assets (1)
|
|
Accumulated
Depreciation
|
|
Date of
Construction
|
|
Life on
Which
Depreciation
is
Calculated
|
|||||||||||||||||
Highwoods Commons
|
|
Office
|
|
|
|
521
|
|
|
—
|
|
|
458
|
|
|
3,793
|
|
|
979
|
|
|
3,793
|
|
|
4,772
|
|
|
1,766
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Highwoods One
|
|
Office
|
|
|
|
1,688
|
|
|
—
|
|
|
22
|
|
|
13,763
|
|
|
1,710
|
|
|
13,763
|
|
|
15,473
|
|
|
6,148
|
|
|
1996
|
|
5-40 yrs.
|
|||||||||
Highwoods Two
|
|
Office
|
|
|
|
786
|
|
|
—
|
|
|
226
|
|
|
8,033
|
|
|
1,012
|
|
|
8,033
|
|
|
9,045
|
|
|
2,910
|
|
|
1997
|
|
5-40 yrs.
|
|||||||||
Highwoods Five
|
|
Office
|
|
|
|
783
|
|
|
—
|
|
|
11
|
|
|
7,296
|
|
|
794
|
|
|
7,296
|
|
|
8,090
|
|
|
2,790
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
Highwoods Plaza
|
|
Office
|
|
|
|
909
|
|
|
—
|
|
|
187
|
|
|
6,008
|
|
|
1,096
|
|
|
6,008
|
|
|
7,104
|
|
|
2,947
|
|
|
2000
|
|
5-40 yrs.
|
|||||||||
Innslake Center
|
|
Office
|
|
|
|
845
|
|
|
—
|
|
|
195
|
|
|
6,434
|
|
|
1,040
|
|
|
6,434
|
|
|
7,474
|
|
|
2,592
|
|
|
2001
|
|
5-40 yrs.
|
|||||||||
Highwoods Centre
|
|
Office
|
|
|
|
1,205
|
|
|
4,825
|
|
|
—
|
|
|
1,366
|
|
|
1,205
|
|
|
6,191
|
|
|
7,396
|
|
|
3,239
|
|
|
1990
|
|
5-40 yrs.
|
|||||||||
Markel 4501
|
|
Office
|
|
|
|
1,300
|
|
|
13,259
|
|
|
213
|
|
|
(4,135
|
)
|
|
1,513
|
|
|
9,124
|
|
|
10,637
|
|
|
3,083
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
Markel 4600
|
|
Office
|
|
|
|
1,700
|
|
|
17,081
|
|
|
169
|
|
|
(3,607
|
)
|
|
1,869
|
|
|
13,474
|
|
|
15,343
|
|
|
4,339
|
|
|
1989
|
|
5-40 yrs.
|
|||||||||
North Park
|
|
Office
|
|
|
|
2,163
|
|
|
8,659
|
|
|
6
|
|
|
2,582
|
|
|
2,169
|
|
|
11,241
|
|
|
13,410
|
|
|
5,988
|
|
|
1989
|
|
5-40 yrs.
|
|||||||||
North Shore Commons I
|
|
Office
|
|
|
|
951
|
|
|
—
|
|
|
17
|
|
|
12,510
|
|
|
968
|
|
|
12,510
|
|
|
13,478
|
|
|
5,053
|
|
|
2002
|
|
5-40 yrs.
|
|||||||||
North Shore Commons II
|
|
Office
|
|
|
|
2,067
|
|
|
—
|
|
|
(89
|
)
|
|
11,030
|
|
|
1,978
|
|
|
11,030
|
|
|
13,008
|
|
|
2,884
|
|
|
2007
|
|
5-40 yrs.
|
|||||||||
North Shore Commons C - Land
|
|
Office
|
|
|
|
1,497
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
1,512
|
|
|
—
|
|
|
1,512
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
North Shore Commons D - Land
|
|
Office
|
|
|
|
1,261
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,261
|
|
|
—
|
|
|
1,261
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Nuckols Corner Land
|
|
Office
|
|
|
|
1,259
|
|
|
—
|
|
|
203
|
|
|
—
|
|
|
1,462
|
|
|
—
|
|
|
1,462
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
One Shockoe Plaza
|
|
Office
|
|
|
|
—
|
|
|
—
|
|
|
356
|
|
|
17,440
|
|
|
356
|
|
|
17,440
|
|
|
17,796
|
|
|
8,138
|
|
|
1996
|
|
5-40 yrs.
|
|||||||||
Pavilion Land
|
|
Office
|
|
|
|
181
|
|
|
46
|
|
|
20
|
|
|
(46
|
)
|
|
201
|
|
|
—
|
|
|
201
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Lake Brook Commons
|
|
Office
|
|
|
|
1,600
|
|
|
8,864
|
|
|
21
|
|
|
2,211
|
|
|
1,621
|
|
|
11,075
|
|
|
12,696
|
|
|
3,925
|
|
|
1996
|
|
5-40 yrs.
|
|||||||||
Sadler & Cox Land
|
|
Office
|
|
|
|
1,535
|
|
|
—
|
|
|
343
|
|
|
—
|
|
|
1,878
|
|
|
—
|
|
|
1,878
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Highwoods Three
|
|
Office
|
|
|
|
1,918
|
|
|
—
|
|
|
358
|
|
|
10,543
|
|
|
2,276
|
|
|
10,543
|
|
|
12,819
|
|
|
3,142
|
|
|
2005
|
|
5-40 yrs.
|
|||||||||
Stony Point I
|
|
Office
|
|
|
|
1,384
|
|
|
11,630
|
|
|
(267
|
)
|
|
4,323
|
|
|
1,117
|
|
|
15,953
|
|
|
17,070
|
|
|
7,557
|
|
|
1990
|
|
5-40 yrs.
|
|||||||||
Stony Point II
|
|
Office
|
|
|
|
1,240
|
|
|
—
|
|
|
103
|
|
|
12,450
|
|
|
1,343
|
|
|
12,450
|
|
|
13,793
|
|
|
5,309
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Stony Point III
|
|
Office
|
|
|
|
995
|
|
|
—
|
|
|
—
|
|
|
10,342
|
|
|
995
|
|
|
10,342
|
|
|
11,337
|
|
|
4,126
|
|
|
2002
|
|
5-40 yrs.
|
|||||||||
Stony Point IV
|
|
Office
|
|
|
|
955
|
|
|
—
|
|
|
—
|
|
|
11,065
|
|
|
955
|
|
|
11,065
|
|
|
12,020
|
|
|
3,244
|
|
|
2006
|
|
5-40 yrs.
|
|||||||||
Virginia Mutual
|
|
Office
|
|
|
|
1,301
|
|
|
6,036
|
|
|
15
|
|
|
1,481
|
|
|
1,316
|
|
|
7,517
|
|
|
8,833
|
|
|
3,237
|
|
|
1996
|
|
5-40 yrs.
|
|||||||||
Waterfront Plaza
|
|
Office
|
|
|
|
585
|
|
|
2,347
|
|
|
8
|
|
|
1,375
|
|
|
593
|
|
|
3,722
|
|
|
4,315
|
|
|
1,752
|
|
|
1988
|
|
5-40 yrs.
|
|||||||||
Innsbrook Center
|
|
Office
|
|
|
|
914
|
|
|
8,249
|
|
|
—
|
|
|
686
|
|
|
914
|
|
|
8,935
|
|
|
9,849
|
|
|
3,211
|
|
|
1987
|
|
5-40 yrs.
|
|||||||||
Tampa, FL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
4200 Cypress
|
|
Office
|
|
|
|
2,673
|
|
|
16,470
|
|
|
—
|
|
|
4,519
|
|
|
2,673
|
|
|
20,989
|
|
|
23,662
|
|
|
4,881
|
|
|
1989
|
|
5-40 yrs.
|
|||||||||
Bayshore Place
|
|
Office
|
|
|
|
2,276
|
|
|
11,817
|
|
|
—
|
|
|
2,336
|
|
|
2,276
|
|
|
14,153
|
|
|
16,429
|
|
|
7,268
|
|
|
1990
|
|
5-40 yrs.
|
|||||||||
General Services Administration Building
|
|
Office
|
|
|
|
4,054
|
|
|
—
|
|
|
406
|
|
|
27,759
|
|
|
4,460
|
|
|
27,759
|
|
|
32,219
|
|
|
10,894
|
|
|
2005
|
|
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
|
|
Property
Type
|
|
2017
Encumbrance |
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Total
Assets (1)
|
|
Accumulated
Depreciation
|
|
Date of
Construction
|
|
Life on
Which
Depreciation
is
Calculated
|
|||||||||||||||||
Highwoods Preserve Building I
|
|
Office
|
|
|
|
991
|
|
|
—
|
|
|
—
|
|
|
26,283
|
|
|
991
|
|
|
26,283
|
|
|
27,274
|
|
|
9,874
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Highwoods Preserve Building V
|
|
Office
|
|
|
|
881
|
|
|
—
|
|
|
—
|
|
|
25,398
|
|
|
881
|
|
|
25,398
|
|
|
26,279
|
|
|
11,752
|
|
|
2001
|
|
5-40 yrs.
|
|||||||||
Highwoods Bay Center I
|
|
Office
|
|
|
|
3,565
|
|
|
—
|
|
|
(64
|
)
|
|
36,958
|
|
|
3,501
|
|
|
36,958
|
|
|
40,459
|
|
|
11,197
|
|
|
2007
|
|
5-40 yrs.
|
|||||||||
HIW Bay Center II - Land
|
|
Office
|
|
|
|
3,482
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,482
|
|
|
—
|
|
|
3,482
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Highwoods Preserve Building VII
|
|
Office
|
|
|
|
790
|
|
|
—
|
|
|
—
|
|
|
12,498
|
|
|
790
|
|
|
12,498
|
|
|
13,288
|
|
|
3,362
|
|
|
2007
|
|
5-40 yrs.
|
|||||||||
HIW Preserve VII Garage
|
|
Office
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,797
|
|
|
—
|
|
|
6,797
|
|
|
6,797
|
|
|
1,853
|
|
|
2007
|
|
5-40 yrs.
|
|||||||||
Horizon
|
|
Office
|
|
|
|
—
|
|
|
6,257
|
|
|
—
|
|
|
4,255
|
|
|
—
|
|
|
10,512
|
|
|
10,512
|
|
|
4,903
|
|
|
1980
|
|
5-40 yrs.
|
|||||||||
LakePointe One
|
|
Office
|
|
|
|
2,106
|
|
|
89
|
|
|
—
|
|
|
45,339
|
|
|
2,106
|
|
|
45,428
|
|
|
47,534
|
|
|
21,659
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
LakePointe Two
|
|
Office
|
|
|
|
2,000
|
|
|
15,848
|
|
|
672
|
|
|
15,240
|
|
|
2,672
|
|
|
31,088
|
|
|
33,760
|
|
|
12,824
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Lakeside
|
|
Office
|
|
|
|
—
|
|
|
7,369
|
|
|
—
|
|
|
6,593
|
|
|
—
|
|
|
13,962
|
|
|
13,962
|
|
|
5,367
|
|
|
1978
|
|
5-40 yrs.
|
|||||||||
Lakeside/Parkside Garage
|
|
Office
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,627
|
|
|
—
|
|
|
5,627
|
|
|
5,627
|
|
|
1,732
|
|
|
2004
|
|
5-40 yrs.
|
|||||||||
One Harbour Place
|
|
Office
|
|
|
|
2,016
|
|
|
25,252
|
|
|
—
|
|
|
11,046
|
|
|
2,016
|
|
|
36,298
|
|
|
38,314
|
|
|
14,189
|
|
|
1985
|
|
5-40 yrs.
|
|||||||||
Parkside
|
|
Office
|
|
|
|
—
|
|
|
9,407
|
|
|
—
|
|
|
3,768
|
|
|
—
|
|
|
13,175
|
|
|
13,175
|
|
|
6,964
|
|
|
1979
|
|
5-40 yrs.
|
|||||||||
Pavilion
|
|
Office
|
|
|
|
—
|
|
|
16,394
|
|
|
—
|
|
|
4,646
|
|
|
—
|
|
|
21,040
|
|
|
21,040
|
|
|
10,479
|
|
|
1982
|
|
5-40 yrs.
|
|||||||||
Pavilion Parking Garage
|
|
Office
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,731
|
|
|
—
|
|
|
5,731
|
|
|
5,731
|
|
|
2,585
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Spectrum
|
|
Office
|
|
|
|
1,454
|
|
|
14,502
|
|
|
—
|
|
|
6,931
|
|
|
1,454
|
|
|
21,433
|
|
|
22,887
|
|
|
11,604
|
|
|
1984
|
|
5-40 yrs.
|
|||||||||
Tower Place
|
|
Office
|
|
|
|
3,218
|
|
|
19,898
|
|
|
—
|
|
|
4,849
|
|
|
3,218
|
|
|
24,747
|
|
|
27,965
|
|
|
12,579
|
|
|
1988
|
|
5-40 yrs.
|
|||||||||
Westshore Square
|
|
Office
|
|
|
|
1,126
|
|
|
5,186
|
|
|
—
|
|
|
1,466
|
|
|
1,126
|
|
|
6,652
|
|
|
7,778
|
|
|
3,334
|
|
|
1976
|
|
5-40 yrs.
|
|||||||||
Independence Park - Land
|
|
Office
|
|
|
|
4,943
|
|
|
—
|
|
|
4,833
|
|
|
2,227
|
|
|
9,776
|
|
|
2,227
|
|
|
12,003
|
|
|
47
|
|
|
N/A
|
|
N/A
|
|||||||||
Independence Park I
|
|
Office
|
|
|
|
2,531
|
|
|
4,526
|
|
|
—
|
|
|
5,270
|
|
|
2,531
|
|
|
9,796
|
|
|
12,327
|
|
|
3,330
|
|
|
1983
|
|
5-40 yrs.
|
|||||||||
Meridian I
|
|
Office
|
|
|
|
1,849
|
|
|
22,363
|
|
|
—
|
|
|
1,808
|
|
|
1,849
|
|
|
24,171
|
|
|
26,020
|
|
|
4,047
|
|
|
1984
|
|
5-40 yrs.
|
|||||||||
Meridian II
|
|
Office
|
|
|
|
1,302
|
|
|
19,588
|
|
|
—
|
|
|
3,002
|
|
|
1,302
|
|
|
22,590
|
|
|
23,892
|
|
|
3,580
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
Laser Spine Institute
|
|
Office
|
|
|
|
—
|
|
|
—
|
|
|
6,310
|
|
|
44,634
|
|
|
6,310
|
|
|
44,634
|
|
|
50,944
|
|
|
2,849
|
|
|
2016
|
|
5-40 yrs.
|
|||||||||
Suntrust Financial Centre
|
|
Office
|
|
|
|
1,980
|
|
|
102,138
|
|
|
—
|
|
|
12,016
|
|
|
1,980
|
|
|
114,154
|
|
|
116,134
|
|
|
8,162
|
|
|
1992
|
|
5-40 yrs.
|
|||||||||
Suntrust Financial Land
|
|
Office
|
|
|
|
2,225
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,225
|
|
|
—
|
|
|
2,225
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
|
|
|
|
|
|
563,648
|
|
|
2,678,507
|
|
|
(1,701
|
)
|
|
1,933,300
|
|
|
561,947
|
|
|
4,611,807
|
|
|
5,173,754
|
|
|
1,211,728
|
|
|
|
|
|
(1)
|
The tax basis of aggregate land and buildings and tenant improvements as of
December 31, 2017
is
$4.8 billion
.
|
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 6, 2018
|
O. Temple Sloan, Jr.
|
|
|
|
|
|
|
|
|
|
/s/ Edward J. Fritsch
|
|
President, Chief Executive Officer and Director
|
|
February 6, 2018
|
Edward J. Fritsch
|
|
|
|
|
|
|
|
|
|
/s/ Charles A. Anderson
|
|
Director
|
|
February 6, 2018
|
Charles A. Anderson
|
|
|
|
|
|
|
|
|
|
/s/ Gene H. Anderson
|
|
Director
|
|
February 6, 2018
|
Gene H. Anderson
|
|
|
|
|
|
|
|
|
|
/s/ Carlos E. Evans
|
|
Director
|
|
February 6, 2018
|
Carlos E. Evans
|
|
|
|
|
|
|
|
|
|
/s/ David J. Hartzell
|
|
Director
|
|
February 6, 2018
|
David J. Hartzell
|
|
|
|
|
|
|
|
|
|
/s/ Sherry A. Kellett
|
|
Director
|
|
February 6, 2018
|
Sherry A. Kellett
|
|
|
|
|
|
|
|
|
|
/s/ Anne H. Lloyd
|
|
Director
|
|
February 6, 2018
|
Anne H. Lloyd
|
|
|
|
|
|
|
|
|
|
/s/ Mark F. Mulhern
|
|
Executive Vice President and Chief Financial Officer
|
|
February 6, 2018
|
Mark F. Mulhern
|
|
|
|
|
|
|
|
|
|
/s/ Daniel L. Clemmens
|
|
Vice President and Chief Accounting Officer
|
|
February 6, 2018
|
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 6, 2018
|
O. Temple Sloan, Jr.
|
|
|
|
|
|
|
|
|
|
/s/ Edward J. Fritsch
|
|
President, Chief Executive Officer and Director of the General Partner
|
|
February 6, 2018
|
Edward J. Fritsch
|
|
|
|
|
|
|
|
|
|
/s/ Charles A. Anderson
|
|
Director of the General Partner
|
|
February 6, 2018
|
Charles A. Anderson
|
|
|
|
|
|
|
|
|
|
/s/ Gene H. Anderson
|
|
Director of the General Partner
|
|
February 6, 2018
|
Gene H. Anderson
|
|
|
|
|
|
|
|
|
|
/s/ Carlos E. Evans
|
|
Director of the General Partner
|
|
February 6, 2018
|
Carlos E. Evans
|
|
|
|
|
|
|
|
|
|
/s/ David J. Hartzell
|
|
Director of the General Partner
|
|
February 6, 2018
|
David J. Hartzell
|
|
|
|
|
|
|
|
|
|
/s/ Sherry A. Kellett
|
|
Director of the General Partner
|
|
February 6, 2018
|
Sherry A. Kellett
|
|
|
|
|
|
|
|
|
|
/s/ Anne H. Lloyd
|
|
Director of the General Partner
|
|
February 6, 2018
|
Anne H. Lloyd
|
|
|
|
|
|
|
|
|
|
/s/ Mark F. Mulhern
|
|
Executive Vice President and Chief Financial Officer of the General Partner
|
|
February 6, 2018
|
Mark F. Mulhern
|
|
|
|
|
|
|
|
|
|
/s/ Daniel L. Clemmens
|
|
Vice President and Chief Accounting Officer of the General Partner
|
|
February 6, 2018
|
Daniel L. Clemmens
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Earnings:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations before equity in earnings of unconsolidated affiliates
|
|
$
|
184,259
|
|
|
$
|
116,753
|
|
|
$
|
80,443
|
|
|
$
|
95,160
|
|
|
$
|
40,377
|
|
Fixed charges
|
|
80,394
|
|
|
87,825
|
|
|
96,367
|
|
|
93,889
|
|
|
97,423
|
|
|||||
Capitalized interest
|
|
(8,757
|
)
|
|
(8,202
|
)
|
|
(6,888
|
)
|
|
(5,310
|
)
|
|
(2,731
|
)
|
|||||
Distributions of earnings from unconsolidated affiliates
|
|
5,078
|
|
|
4,424
|
|
|
4,901
|
|
|
2,687
|
|
|
3,985
|
|
|||||
Total earnings
|
|
$
|
260,974
|
|
|
$
|
200,800
|
|
|
$
|
174,823
|
|
|
$
|
186,426
|
|
|
$
|
139,054
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed charges and Preferred Stock dividends:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Contractual interest expense
|
|
$
|
65,939
|
|
|
$
|
73,142
|
|
|
$
|
82,245
|
|
|
$
|
82,287
|
|
|
$
|
88,838
|
|
Amortization of debt issuance costs
|
|
3,166
|
|
|
3,506
|
|
|
3,645
|
|
|
3,082
|
|
|
3,802
|
|
|||||
Financing obligation interest expense/(income)
|
|
—
|
|
|
—
|
|
|
162
|
|
|
(242
|
)
|
|
(754
|
)
|
|||||
Capitalized interest
|
|
8,757
|
|
|
8,202
|
|
|
6,888
|
|
|
5,310
|
|
|
2,731
|
|
|||||
Interest component of rental expense
|
|
2,532
|
|
|
2,975
|
|
|
3,427
|
|
|
3,452
|
|
|
2,806
|
|
|||||
Total fixed charges
|
|
80,394
|
|
|
87,825
|
|
|
96,367
|
|
|
93,889
|
|
|
97,423
|
|
|||||
Preferred Stock dividends
|
|
2,492
|
|
|
2,501
|
|
|
2,506
|
|
|
2,507
|
|
|
2,508
|
|
|||||
Total fixed charges and Preferred Stock dividends
|
|
$
|
82,886
|
|
|
$
|
90,326
|
|
|
$
|
98,873
|
|
|
$
|
96,396
|
|
|
$
|
99,931
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ratio of earnings to fixed charges
|
|
3.25
|
|
|
2.29
|
|
|
1.81
|
|
|
1.99
|
|
|
1.43
|
|
|||||
Ratio of earnings to combined fixed charges and Preferred Stock dividends
|
|
3.15
|
|
|
2.22
|
|
|
1.77
|
|
|
1.93
|
|
|
1.39
|
|
|
|
|
||||||||||||||||||
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Earnings:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations before equity in earnings of unconsolidated affiliates
|
|
$
|
184,259
|
|
|
$
|
116,753
|
|
|
$
|
80,443
|
|
|
$
|
95,160
|
|
|
$
|
40,377
|
|
Fixed charges
|
|
80,394
|
|
|
87,825
|
|
|
96,367
|
|
|
93,889
|
|
|
97,423
|
|
|||||
Capitalized interest
|
|
(8,757
|
)
|
|
(8,202
|
)
|
|
(6,888
|
)
|
|
(5,310
|
)
|
|
(2,731
|
)
|
|||||
Distributions of earnings from unconsolidated affiliates
|
|
5,078
|
|
|
4,011
|
|
|
4,901
|
|
|
2,687
|
|
|
3,965
|
|
|||||
Total earnings
|
|
$
|
260,974
|
|
|
$
|
200,387
|
|
|
$
|
174,823
|
|
|
$
|
186,426
|
|
|
$
|
139,034
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed charges and Preferred Unit distributions:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Contractual interest expense
|
|
$
|
65,939
|
|
|
$
|
73,142
|
|
|
$
|
82,245
|
|
|
$
|
82,287
|
|
|
$
|
88,838
|
|
Amortization of debt issuance costs
|
|
3,166
|
|
|
3,506
|
|
|
3,645
|
|
|
3,082
|
|
|
3,802
|
|
|||||
Financing obligation interest expense/(income)
|
|
—
|
|
|
—
|
|
|
162
|
|
|
(242
|
)
|
|
(754
|
)
|
|||||
Capitalized interest
|
|
8,757
|
|
|
8,202
|
|
|
6,888
|
|
|
5,310
|
|
|
2,731
|
|
|||||
Interest component of rental expense
|
|
2,532
|
|
|
2,975
|
|
|
3,427
|
|
|
3,452
|
|
|
2,806
|
|
|||||
Total fixed charges
|
|
80,394
|
|
|
87,825
|
|
|
96,367
|
|
|
93,889
|
|
|
97,423
|
|
|||||
Preferred Unit distributions
|
|
2,492
|
|
|
2,501
|
|
|
2,506
|
|
|
2,507
|
|
|
2,508
|
|
|||||
Total fixed charges and Preferred Unit distributions
|
|
$
|
82,886
|
|
|
$
|
90,326
|
|
|
$
|
98,873
|
|
|
$
|
96,396
|
|
|
$
|
99,931
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ratio of earnings to fixed charges
|
|
3.25
|
|
|
2.28
|
|
|
1.81
|
|
|
1.99
|
|
|
1.43
|
|
|||||
Ratio of earnings to combined fixed charges and Preferred Unit distributions
|
|
3.15
|
|
|
2.22
|
|
|
1.77
|
|
|
1.93
|
|
|
1.39
|
|
*
|
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/ Mark F. Mulhern
|
Mark F. Mulhern
Executive 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)
|
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 of the General Partner
|
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)
|
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/ Mark F. Mulhern
|
Mark F. Mulhern
Executive 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 6, 2018
|
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/ Mark F. Mulhern
|
Mark F. Mulhern
Executive Vice President and Chief Financial Officer
|
February 6, 2018
|
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 6, 2018
|
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/ Mark F. Mulhern
|
Mark F. Mulhern
Executive Vice President and Chief Financial Officer of the General Partner
|
February 6, 2018
|