|
☒
|
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
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56-1871668
|
(State or other jurisdiction of incorporation or organization)
|
(Commission File Number)
|
(I.R.S. Employer Identification Number)
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North Carolina
|
000-21731
|
56-1869557
|
(State or other jurisdiction of incorporation or organization)
|
(Commission File Number)
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(I.R.S. Employer Identification Number)
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Title of Each Class
|
Trading Symbol(s)
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Name of Each Exchange on Which Registered
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Common Stock, $.01 par value, of Highwoods Properties, Inc.
|
HIW
|
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
|
•
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combined reports are more efficient for investors by reducing duplicative disclosure and providing a single document for their review.
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•
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Item 6 - Selected Financial Data;
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•
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Item 9A - Controls and Procedures;
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•
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Item 15 - Certifications of CEO and CFO Pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act;
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•
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Consolidated Financial Statements; and
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•
|
the following Notes to Consolidated Financial Statements:
|
•
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Note 11 - Equity;
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•
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Note 15 - Earnings Per Share and Per Unit; and
|
•
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Note 18 - Quarterly Financial Data.
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Item No.
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Page
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PART I
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|
1.
|
||
1A.
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||
1B.
|
||
2.
|
||
3.
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||
X.
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||
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PART II
|
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5.
|
||
6.
|
||
7.
|
||
7A.
|
||
8.
|
||
9.
|
||
9A.
|
||
9B.
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||
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|
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PART III
|
|
10.
|
||
11.
|
||
12.
|
||
13.
|
||
14.
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||
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PART IV
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15.
|
•
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owning high-quality, differentiated 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, which 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;
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•
|
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.
|
•
|
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 stockholder approval. The issuance of preferred stock could have the effect of delaying or preventing someone from taking control of the Company, even if a change in control were in our best interest.
|
•
|
Business combinations. Pursuant to the Company's charter and Maryland law, the Company cannot merge into or consolidate with another corporation or enter into a statutory share exchange transaction in which the Company is not the surviving entity or sell all or substantially all of its assets unless the board of directors adopts a resolution declaring the proposed transaction advisable and a majority of the stockholders voting together as a single class approve the transaction. Maryland law prohibits stockholders from taking action by written consent unless all stockholders consent in writing. The practical effect of this limitation is that any action required or permitted to be taken by the Company's stockholders may only be taken if it is properly brought before an annual or special meeting of stockholders. The Company's bylaws further provide that in order for a stockholder to properly bring any matter before a meeting, the stockholder must comply with requirements regarding advance notice. The foregoing provisions could have the effect of delaying until the next annual meeting stockholder actions that the holders of a majority of the Company's outstanding voting securities favor. These provisions may also discourage another person from making a tender offer for the Company's common stock,
|
•
|
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
|
|
5,415,000
|
|
|
89.8
|
%
|
|
19.3
|
%
|
Nashville
|
|
4,528,000
|
|
|
94.4
|
|
|
18.5
|
|
Raleigh
|
|
4,874,000
|
|
|
90.1
|
|
|
16.9
|
|
Tampa
|
|
3,620,000
|
|
|
93.2
|
|
|
12.9
|
|
Pittsburgh
|
|
2,148,000
|
|
|
95.3
|
|
|
8.5
|
|
Orlando
|
|
1,791,000
|
|
|
89.4
|
|
|
6.3
|
|
Richmond
|
|
2,036,000
|
|
|
93.3
|
|
|
6.2
|
|
Memphis
|
|
1,303,000
|
|
|
90.9
|
|
|
4.4
|
|
Charlotte
|
|
841,000
|
|
|
89.5
|
|
|
3.7
|
|
Greensboro
|
|
1,151,000
|
|
|
94.6
|
|
|
3.3
|
|
Total
|
|
27,707,000
|
|
|
91.9
|
%
|
|
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 2019 multiplied by 12.
|
|
Year Ended December 31,
|
|||||||
|
2019
|
|
2018
|
|
2017
|
|||
|
(in thousands)
|
|||||||
Acquisitions
|
841
|
|
|
—
|
|
|
—
|
|
Developments Placed In-Service
|
898
|
|
|
351
|
|
|
1,014
|
|
Redevelopment/Other
|
(6
|
)
|
|
(2
|
)
|
|
(7
|
)
|
Dispositions
|
(557
|
)
|
|
(491
|
)
|
|
(1,077
|
)
|
Net Change in Rentable Square Footage
|
1,176
|
|
|
(142
|
)
|
|
(70
|
)
|
|
Average
Occupancy
|
|
Annualized GAAP Rent
Per Square
Foot (1)
|
|
Annualized Cash Rent
Per Square
Foot (2)
|
|||||
2015
|
92.3
|
%
|
|
$
|
23.30
|
|
|
$
|
22.55
|
|
2016
|
92.8
|
%
|
|
$
|
23.24
|
|
|
$
|
22.55
|
|
2017
|
92.5
|
%
|
|
$
|
24.05
|
|
|
$
|
23.46
|
|
2018
|
91.7
|
%
|
|
$
|
24.68
|
|
|
$
|
24.06
|
|
2019
|
91.4
|
%
|
|
$
|
26.46
|
|
|
$
|
25.06
|
|
(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
|
|
1,250,231
|
|
|
$
|
32,251
|
|
|
4.59
|
%
|
|
3.8
|
|
Bank of America
|
|
710,212
|
|
|
25,990
|
|
|
3.70
|
|
|
14.0
|
|
|
Bridgestone Americas
|
|
506,128
|
|
|
17,408
|
|
|
2.48
|
|
|
17.7
|
|
|
Metropolitan Life Insurance
|
|
621,190
|
|
|
16,466
|
|
|
2.34
|
|
|
11.2
|
|
|
PPG Industries
|
|
361,215
|
|
|
9,836
|
|
|
1.40
|
|
|
11.3
|
|
|
Mars Petcare
|
|
223,700
|
|
|
9,026
|
|
|
1.28
|
|
|
11.4
|
|
|
EQT Corporation
|
|
319,269
|
|
|
8,166
|
|
|
1.16
|
|
|
4.8
|
|
|
Vanderbilt University
|
|
285,083
|
|
|
7,690
|
|
|
1.09
|
|
|
6.3
|
|
|
Tivity
|
|
263,598
|
|
|
7,684
|
|
|
1.09
|
|
|
3.2
|
|
|
Bass, Berry & Sims
|
|
213,951
|
|
|
6,960
|
|
|
0.99
|
|
|
5.1
|
|
|
American General Life
|
|
173,834
|
|
|
6,199
|
|
|
0.88
|
|
|
7.1
|
|
|
Novelis
|
|
168,949
|
|
|
6,172
|
|
|
0.88
|
|
|
4.7
|
|
|
Marsh USA
|
|
177,382
|
|
|
6,092
|
|
|
0.87
|
|
|
6.2
|
|
|
State of Georgia
|
|
296,542
|
|
|
5,954
|
|
|
0.85
|
|
|
2.8
|
|
|
Lifepoint Corporate Services
|
|
202,991
|
|
|
5,336
|
|
|
0.76
|
|
|
9.3
|
|
|
Regus PLC
|
|
189,186
|
|
|
4,952
|
|
|
0.70
|
|
|
6.3
|
|
|
PNC Bank
|
|
159,142
|
|
|
4,933
|
|
|
0.70
|
|
|
8.1
|
|
|
Avanos Medical
|
|
193,199
|
|
|
4,653
|
|
|
0.66
|
|
|
9.2
|
|
|
Willis Towers Watson
|
|
162,849
|
|
|
4,471
|
|
|
0.64
|
|
|
4.3
|
|
|
Global Payments
|
|
168,051
|
|
|
4,440
|
|
|
0.63
|
|
|
13.2
|
|
|
Total
|
|
6,646,702
|
|
|
$
|
194,679
|
|
|
27.69
|
%
|
|
8.8
|
|
(1)
|
Annualized Cash Rental Revenue is cash rental revenue (base rent plus cost recovery income, excluding straight-line rent) for the month of December 2019 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)
|
|
|
|
||||||||||
2020 (3)
|
|
407
|
|
|
2,512,492
|
|
|
9.9
|
%
|
|
$
|
68,891
|
|
|
$
|
27.42
|
|
|
10.0
|
%
|
2021
|
|
350
|
|
|
2,246,284
|
|
|
8.8
|
|
|
63,401
|
|
|
28.22
|
|
|
9.2
|
|
||
2022
|
|
358
|
|
|
2,579,762
|
|
|
10.1
|
|
|
67,447
|
|
|
26.14
|
|
|
9.8
|
|
||
2023
|
|
293
|
|
|
2,381,540
|
|
|
9.3
|
|
|
62,774
|
|
|
26.36
|
|
|
9.1
|
|
||
2024
|
|
262
|
|
|
2,699,855
|
|
|
10.6
|
|
|
77,015
|
|
|
28.53
|
|
|
11.2
|
|
||
2025
|
|
154
|
|
|
2,314,359
|
|
|
9.1
|
|
|
63,402
|
|
|
27.40
|
|
|
9.2
|
|
||
2026
|
|
118
|
|
|
1,806,211
|
|
|
7.1
|
|
|
49,550
|
|
|
27.43
|
|
|
7.2
|
|
||
2027
|
|
66
|
|
|
1,453,678
|
|
|
5.7
|
|
|
38,656
|
|
|
26.59
|
|
|
5.6
|
|
||
2028
|
|
68
|
|
|
1,428,363
|
|
|
5.6
|
|
|
37,908
|
|
|
26.54
|
|
|
5.5
|
|
||
2029
|
|
67
|
|
|
1,071,318
|
|
|
4.2
|
|
|
28,710
|
|
|
26.80
|
|
|
4.3
|
|
||
Thereafter
|
|
178
|
|
|
4,980,934
|
|
|
19.6
|
|
|
129,174
|
|
|
25.93
|
|
|
18.9
|
|
||
|
|
2,321
|
|
|
25,474,796
|
|
|
100.0
|
%
|
|
$
|
686,928
|
|
|
$
|
26.97
|
|
|
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 2019 multiplied by 12.
|
(3)
|
Includes 222,000 rentable square feet of leases that are on a month-to-month basis, which represent 0.8% of total annualized cash rental revenue.
|
Property
|
|
Market
|
|
Rentable Square Feet
|
|
Anticipated Total Investment (1)
|
|
Investment As Of December 31, 2019 (1)
|
|
Pre Leased %
|
|
Estimated Completion
|
|
Estimated Stabilization
|
||||||
|
|
|
|
|
|
($ in thousands)
|
|
|
|
|
|
|
||||||||
GlenLake Seven
|
|
Raleigh
|
|
125,700
|
|
|
$
|
40,970
|
|
|
$
|
21,970
|
|
|
100.0
|
%
|
|
1Q21
|
|
1Q21
|
Virginia Springs II
|
|
Nashville
|
|
111,000
|
|
|
37,900
|
|
|
11,262
|
|
|
—
|
|
|
4Q20
|
|
3Q22
|
||
Midtown One (2)
|
|
Tampa
|
|
150,000
|
|
|
71,300
|
|
|
22,380
|
|
|
—
|
|
|
2Q21
|
|
4Q22
|
||
Asurion
|
|
Nashville
|
|
552,800
|
|
|
285,000
|
|
|
103,887
|
|
|
98.3
|
|
|
4Q21
|
|
1Q22
|
||
|
|
|
|
939,500
|
|
|
$
|
435,170
|
|
|
$
|
159,499
|
|
|
71.2
|
%
|
|
|
|
|
(1)
|
Includes deferred lease commissions which are classified in deferred leasing costs on our Consolidated Balance Sheets.
|
(2)
|
We own an 80.0% interest in this consolidated joint venture.
|
|
|
Rentable
Square Feet
|
|
Weighted
Average
Ownership
Interest (1)
|
|
Occupancy
|
|
Percentage of
Annualized
Cash Rental
Revenue (2)
|
||||
Market
|
|
|||||||||||
Kansas City (3)
|
|
292,000
|
|
|
50.0
|
%
|
|
98.8
|
%
|
|
49.1
|
%
|
Richmond (4)
|
|
345,000
|
|
|
50.0
|
|
|
99.2
|
|
|
26.2
|
|
Raleigh
|
|
636,000
|
|
|
25.0
|
|
|
88.8
|
|
|
24.7
|
|
Total
|
|
1,273,000
|
|
|
37.5
|
%
|
|
93.9
|
%
|
|
100.0
|
%
|
(1)
|
Weighted Average Ownership Interest is calculated using Rentable Square Feet.
|
(2)
|
Annualized Cash Rental Revenue is cash rental revenue (base rent plus cost recovery income, excluding straight-line rent) for the month of December 2019 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
|
Theodore J. Klinck
|
|
54
|
|
Director, President and Chief Executive Officer.
Mr. Klinck became a director and our chief executive officer in September 2019. Prior to that, Mr. Klinck was our president and chief operating officer since November 2018, our executive vice president and chief operating and investment officer from September 2015 to November 2018 and was senior vice president and chief investment officer from March 2012 to August 2015. 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.
|
Brian M. Leary
|
|
45
|
|
Executive Vice President and Chief Operating Officer.
Mr. Leary became chief operating officer in July 2019. Previously, Mr. Leary served as president of the commercial and mixed-use business unit of Crescent Communities since 2014. Prior to joining Crescent, Mr. Leary held senior management positions with Jacoby Development, Inc., Atlanta Beltline, Inc., AIG Global Real Estate, Atlantic Station, LLC and Central Atlanta Progress.
|
Mark F. Mulhern
|
|
60
|
|
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 Barings BDC, Inc. (NYSE:BBDC), a specialty finance company. Mr. Mulhern is a certified public accountant, a certified management accountant and a certified internal auditor.
|
Jeffrey D. Miller
|
|
49
|
|
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.
|
Brendan C. Maiorana
|
|
44
|
|
Executive Vice President of Finance and Investor Relations.
Mr. Maiorana became executive vice president of finance and investor relations in July 2019. Prior to that, Mr. Maiorana was our senior vice president of finance and investor relations since May 2016. Prior to joining Highwoods, Mr. Maiorana spent 11 years in equity research at Wells Fargo Securities, starting as an associate equity research analyst. Prior to that, Mr. Maiorana worked four years at Ernst & Young LLP.
|
|
|
For the Period from December 31, 2014 to December 31,
|
|||||||||||||
Index
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|||||
Highwoods Properties, Inc.
|
|
102.40
|
|
|
126.19
|
|
|
130.40
|
|
|
103.22
|
|
|
136.04
|
|
S&P 500 Index
|
|
101.38
|
|
|
113.51
|
|
|
138.29
|
|
|
132.23
|
|
|
173.86
|
|
FTSE NAREIT All Equity REITs Index
|
|
102.83
|
|
|
111.70
|
|
|
121.39
|
|
|
116.48
|
|
|
149.86
|
|
|
Year Ended December 31,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Rental and other revenues
|
$
|
735,979
|
|
|
$
|
720,035
|
|
|
$
|
702,737
|
|
|
$
|
665,634
|
|
|
$
|
604,671
|
|
Income from continuing operations
|
$
|
141,683
|
|
|
$
|
177,630
|
|
|
$
|
191,663
|
|
|
$
|
122,546
|
|
|
$
|
85,521
|
|
Income from discontinued operations
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
418,593
|
|
|
$
|
15,739
|
|
Income from continuing operations available for common stockholders
|
$
|
134,430
|
|
|
$
|
169,343
|
|
|
$
|
182,873
|
|
|
$
|
115,461
|
|
|
$
|
79,308
|
|
Net income
|
$
|
141,683
|
|
|
$
|
177,630
|
|
|
$
|
191,663
|
|
|
$
|
541,139
|
|
|
$
|
101,260
|
|
Net income available for common stockholders
|
$
|
134,430
|
|
|
$
|
169,343
|
|
|
$
|
182,873
|
|
|
$
|
521,789
|
|
|
$
|
94,572
|
|
Earnings per Common Share – basic:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations available for common stockholders
|
$
|
1.30
|
|
|
$
|
1.64
|
|
|
$
|
1.78
|
|
|
$
|
1.17
|
|
|
$
|
0.84
|
|
Net income available for common stockholders
|
$
|
1.30
|
|
|
$
|
1.64
|
|
|
$
|
1.78
|
|
|
$
|
5.30
|
|
|
$
|
1.00
|
|
Earnings per Common Share – diluted:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations available for common stockholders
|
$
|
1.30
|
|
|
$
|
1.64
|
|
|
$
|
1.78
|
|
|
$
|
1.17
|
|
|
$
|
0.84
|
|
Net income available for common stockholders
|
$
|
1.30
|
|
|
$
|
1.64
|
|
|
$
|
1.78
|
|
|
$
|
5.30
|
|
|
$
|
1.00
|
|
Dividends declared per Common Share (1)
|
$
|
1.90
|
|
|
$
|
1.85
|
|
|
$
|
1.76
|
|
|
$
|
2.50
|
|
|
$
|
1.70
|
|
|
December 31,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Total assets
|
$
|
5,138,244
|
|
|
$
|
4,675,009
|
|
|
$
|
4,623,791
|
|
|
$
|
4,561,050
|
|
|
$
|
4,485,631
|
|
Mortgages and notes payable, net
|
$
|
2,543,710
|
|
|
$
|
2,085,831
|
|
|
$
|
2,014,333
|
|
|
$
|
1,948,047
|
|
|
$
|
2,491,813
|
|
(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,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Rental and other revenues
|
$
|
735,979
|
|
|
$
|
720,035
|
|
|
$
|
702,737
|
|
|
$
|
665,634
|
|
|
$
|
604,671
|
|
Income from continuing operations
|
$
|
141,683
|
|
|
$
|
177,630
|
|
|
$
|
191,663
|
|
|
$
|
122,546
|
|
|
$
|
85,521
|
|
Income from discontinued operations
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
418,593
|
|
|
$
|
15,739
|
|
Income from continuing operations available for common unitholders
|
$
|
137,981
|
|
|
$
|
173,931
|
|
|
$
|
187,932
|
|
|
$
|
118,792
|
|
|
$
|
81,751
|
|
Net income
|
$
|
141,683
|
|
|
$
|
177,630
|
|
|
$
|
191,663
|
|
|
$
|
541,139
|
|
|
$
|
101,260
|
|
Net income available for common unitholders
|
$
|
137,981
|
|
|
$
|
173,931
|
|
|
$
|
187,932
|
|
|
$
|
537,385
|
|
|
$
|
97,490
|
|
Earnings per Common Unit – basic:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations available for common unitholders
|
$
|
1.30
|
|
|
$
|
1.64
|
|
|
$
|
1.79
|
|
|
$
|
1.18
|
|
|
$
|
0.84
|
|
Net income available for common unitholders
|
$
|
1.30
|
|
|
$
|
1.64
|
|
|
$
|
1.79
|
|
|
$
|
5.33
|
|
|
$
|
1.01
|
|
Earnings per Common Unit – diluted:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations available for common unitholders
|
$
|
1.30
|
|
|
$
|
1.64
|
|
|
$
|
1.79
|
|
|
$
|
1.18
|
|
|
$
|
0.84
|
|
Net income available for common unitholders
|
$
|
1.30
|
|
|
$
|
1.64
|
|
|
$
|
1.79
|
|
|
$
|
5.32
|
|
|
$
|
1.01
|
|
Distributions declared per Common Unit (1)
|
$
|
1.90
|
|
|
$
|
1.85
|
|
|
$
|
1.76
|
|
|
$
|
2.50
|
|
|
$
|
1.70
|
|
|
December 31,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Total assets
|
$
|
5,138,244
|
|
|
$
|
4,675,009
|
|
|
$
|
4,623,791
|
|
|
$
|
4,561,050
|
|
|
$
|
4,485,631
|
|
Mortgages and notes payable, net
|
$
|
2,543,710
|
|
|
$
|
2,085,831
|
|
|
$
|
2,014,333
|
|
|
$
|
1,948,047
|
|
|
$
|
2,491,813
|
|
(1)
|
Includes a special cash distribution of $0.80 per unit declared in the quarter ended December 31, 2016 and paid January 10, 2017.
|
•
|
buyers may not be available and pricing may not be adequate with respect to the planned dispositions of non-core assets;
|
•
|
comparable sales data on which we based our expectations with respect to the sales price of the non-core assets may not reflect current market trends;
|
•
|
anticipated general and administrative expense savings related to the closure of our Greensboro and Memphis offices may not be realized;
|
•
|
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)
|
397,703
|
|
|
805,197
|
|
|
1,202,900
|
|
|||
Average term (in years - rentable square foot weighted)
|
7.7
|
|
|
5.2
|
|
|
6.0
|
|
|||
Base rents (per rentable square foot) (1)
|
$
|
33.52
|
|
|
$
|
32.26
|
|
|
$
|
32.68
|
|
Rent concessions (per rentable square foot) (1)
|
(0.65
|
)
|
|
(0.49
|
)
|
|
(0.54
|
)
|
|||
GAAP rents (per rentable square foot) (1)
|
$
|
32.87
|
|
|
$
|
31.77
|
|
|
$
|
32.14
|
|
Tenant improvements (per rentable square foot) (1)
|
$
|
3.89
|
|
|
$
|
2.86
|
|
|
$
|
3.20
|
|
Leasing commissions (per rentable square foot) (1)
|
$
|
1.17
|
|
|
$
|
1.01
|
|
|
$
|
1.06
|
|
(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,
|
|
|
|
|
||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2019-2018 Change
|
|
2018-2017 Change
|
||||||||||
Net Cash Provided By Operating Activities
|
$
|
365,797
|
|
|
$
|
358,628
|
|
|
$
|
352,532
|
|
|
$
|
7,169
|
|
|
$
|
6,096
|
|
Net Cash Used In Investing Activities
|
(607,407
|
)
|
|
(306,749
|
)
|
|
(200,302
|
)
|
|
(300,658
|
)
|
|
(106,447
|
)
|
|||||
Net Cash Provided By/(Used In) Financing Activities
|
246,209
|
|
|
(130,069
|
)
|
|
(142,528
|
)
|
|
376,278
|
|
|
12,459
|
|
|||||
Total Cash Flows
|
$
|
4,599
|
|
|
$
|
(78,190
|
)
|
|
$
|
9,702
|
|
|
$
|
82,789
|
|
|
$
|
(87,892
|
)
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Mortgages and notes payable, net, at recorded book value
|
$
|
2,543,710
|
|
|
$
|
2,085,831
|
|
Preferred Stock, at liquidation value
|
$
|
28,859
|
|
|
$
|
28,877
|
|
Common Stock outstanding
|
103,756
|
|
|
103,557
|
|
||
Common Units outstanding (not owned by the Company)
|
2,724
|
|
|
2,739
|
|
||
Per share stock price at year end
|
$
|
48.91
|
|
|
$
|
38.69
|
|
Market value of Common Stock and Common Units
|
$
|
5,207,937
|
|
|
$
|
4,112,592
|
|
Total capitalization
|
$
|
7,780,506
|
|
|
$
|
6,227,300
|
|
|
Face Amount
|
|
Carrying Amount
|
|
Stated Interest Rate
|
|
Effective Interest Rate
|
||||||
Notes due June 2021
|
$
|
300,000
|
|
|
$
|
299,369
|
|
|
3.200
|
%
|
|
3.363
|
%
|
Notes due January 2023
|
$
|
250,000
|
|
|
$
|
249,201
|
|
|
3.625
|
%
|
|
3.752
|
%
|
Notes due March 2027
|
$
|
300,000
|
|
|
$
|
297,134
|
|
|
3.875
|
%
|
|
4.038
|
%
|
Notes due March 2028
|
$
|
350,000
|
|
|
$
|
346,621
|
|
|
4.125
|
%
|
|
4.271
|
%
|
Notes due April 2029
|
$
|
350,000
|
|
|
$
|
349,091
|
|
|
4.200
|
%
|
|
4.234
|
%
|
Notes due February 2030
|
$
|
400,000
|
|
|
$
|
399,009
|
|
|
3.050
|
%
|
|
3.079
|
%
|
|
|
|
Amounts due during the years ending December 31,
|
|
|
||||||||||||||||||||||
|
Total
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
Thereafter
|
||||||||||||||
Mortgages and Notes Payable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Principal payments (1)
|
$
|
2,566,303
|
|
|
$
|
1,952
|
|
|
$
|
302,032
|
|
|
$
|
523,115
|
|
|
$
|
252,201
|
|
|
$
|
2,291
|
|
|
$
|
1,484,712
|
|
Interest payments
|
571,365
|
|
|
90,038
|
|
|
84,758
|
|
|
71,740
|
|
|
56,868
|
|
|
56,401
|
|
|
211,560
|
|
|||||||
Financing Lease Obligations
|
15
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Purchase Obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Lease and contractual commitments and contingent consideration (2)
|
466,770
|
|
|
400,264
|
|
|
64,443
|
|
|
943
|
|
|
—
|
|
|
—
|
|
|
1,120
|
|
|||||||
Operating Lease Obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Operating ground leases
|
94,369
|
|
|
2,086
|
|
|
2,127
|
|
|
2,169
|
|
|
2,167
|
|
|
2,123
|
|
|
83,697
|
|
|||||||
Total
|
$
|
3,698,822
|
|
|
$
|
494,355
|
|
|
$
|
453,360
|
|
|
$
|
597,967
|
|
|
$
|
311,236
|
|
|
$
|
60,815
|
|
|
$
|
1,781,089
|
|
(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 $340.9 million of contractual commitments related to our in-process development activity and newly acquired properties, of which $279.8 million is scheduled to be funded in 2020. For a description of our development activity, see "Item 2. Properties - In-Process Development." The timing of these lease and contractual commitments may fluctuate.
|
•
|
projections with respect to 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.
|
•
|
Real estate and related assets;
|
•
|
Impairments of real estate assets and investments in unconsolidated affiliates;
|
•
|
Sales of real estate; and
|
•
|
Leases.
|
•
|
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,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Funds from operations:
|
|
|
|
|
|
||||||
Net income
|
$
|
141,683
|
|
|
$
|
177,630
|
|
|
$
|
191,663
|
|
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
(1,214
|
)
|
|
(1,207
|
)
|
|
(1,239
|
)
|
|||
Depreciation and amortization of real estate assets
|
251,545
|
|
|
227,045
|
|
|
225,052
|
|
|||
Impairments of depreciable properties
|
1,400
|
|
|
—
|
|
|
—
|
|
|||
(Gains) on disposition of depreciable properties
|
(38,582
|
)
|
|
(37,096
|
)
|
|
(53,170
|
)
|
|||
Unconsolidated affiliates:
|
|
|
|
|
|
||||||
Depreciation and amortization of real estate assets
|
2,425
|
|
|
2,284
|
|
|
2,298
|
|
|||
(Gains) on disposition of depreciable properties
|
—
|
|
|
—
|
|
|
(4,617
|
)
|
|||
Funds from operations
|
357,257
|
|
|
368,656
|
|
|
359,987
|
|
|||
Dividends on Preferred Stock
|
(2,488
|
)
|
|
(2,492
|
)
|
|
(2,492
|
)
|
|||
Funds from operations available for common stockholders
|
$
|
354,769
|
|
|
$
|
366,164
|
|
|
$
|
357,495
|
|
Funds from operations available for common stockholders per share
|
$
|
3.33
|
|
|
$
|
3.45
|
|
|
$
|
3.39
|
|
Weighted average shares outstanding (1)
|
106,445
|
|
|
106,268
|
|
|
105,594
|
|
(1)
|
Includes assumed conversion of all potentially dilutive Common Stock equivalents.
|
|
|
Year Ended December 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Net income
|
|
$
|
141,683
|
|
|
$
|
177,630
|
|
Equity in earnings of unconsolidated affiliates
|
|
(3,276
|
)
|
|
(2,238
|
)
|
||
Gains on disposition of property
|
|
(39,517
|
)
|
|
(37,638
|
)
|
||
Other (income)/loss
|
|
2,510
|
|
|
(1,940
|
)
|
||
Interest expense
|
|
81,648
|
|
|
71,422
|
|
||
General and administrative expenses
|
|
44,067
|
|
|
40,006
|
|
||
Impairments of real estate assets
|
|
5,849
|
|
|
423
|
|
||
Depreciation and amortization
|
|
254,504
|
|
|
229,955
|
|
||
Net operating income
|
|
487,468
|
|
|
477,620
|
|
||
Non same property and other net operating income
|
|
(42,202
|
)
|
|
(32,052
|
)
|
||
Same property net operating income
|
|
$
|
445,266
|
|
|
$
|
445,568
|
|
|
|
|
|
|
||||
Same property net operating income
|
|
$
|
445,266
|
|
|
$
|
445,568
|
|
Lease termination fees, straight-line rent and other non-cash adjustments
|
|
(15,617
|
)
|
|
(21,293
|
)
|
||
Same property cash net operating income
|
|
$
|
429,649
|
|
|
$
|
424,275
|
|
See page 49 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 49 for a list of the Consolidated Financial Statements of Highwoods Properties, Inc. and Highwoods Realty Limited Partnership included in this report.
|
Exhibit
Number
|
|
Description
|
3.1
|
|
|
3.2
|
|
|
4.1
|
|
|
4.2
|
|
|
4.3
|
|
|
4.4
|
|
|
4.5
|
|
|
4.6
|
|
|
4.7
|
|
|
4.8
|
|
|
4.9
|
|
|
4.10
|
|
|
4.11
|
|
|
4.12
|
|
|
4.13
|
|
|
4.14
|
|
|
10.1
|
|
|
10.2
|
|
|
10.3
|
|
|
10.4
|
*
|
|
10.5
|
|
Exhibit
Number
|
|
Description
|
10.6
|
*
|
|
10.7
|
*
|
|
10.8
|
*
|
|
10.9
|
*
|
|
10.10
|
*
|
|
10.11
|
*
|
|
10.12
|
*
|
|
10.13
|
*
|
|
10.14
|
*
|
|
10.15
|
*
|
|
10.16
|
|
|
21
|
|
|
23
|
|
|
31.1
|
|
|
31.2
|
|
|
31.3
|
|
|
31.4
|
|
|
32.1
|
|
|
32.2
|
|
|
32.3
|
|
|
32.4
|
|
|
101.INS
|
|
The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL 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:
|
|
|
|
|
|
•
|
We tested the effectiveness of controls over management’s identification of possible circumstances that may indicate that the carrying amounts of real estate assets are no longer recoverable, including controls over management’s designation of an asset as core or non-core, occupancy and management’s estimates of fair values.
|
•
|
We evaluated management’s identification of impairment indicators by developing an independent determination if properties exhibit an indicator of impairment by:
|
•
|
Inquiring of management and reading investment committee and board minutes to identify properties that should be evaluated as non-core and therefore may impact the anticipated holding period.
|
•
|
Testing real estate assets for possible indications of impairment, including searching for adverse asset-specific circumstances and/or market conditions by circulating a questionnaire to regional property managers.
|
•
|
With the assistance of our fair value specialists, developing an independent expectation of impairment indicators and comparing such expectation to management’s analysis.
|
•
|
We tested the effectiveness of controls over the purchase price allocation, including management’s controls over the review of the third-party appraisal, the identification of real estate assets, intangible assets and liabilities and the valuation methodology for estimating the relative fair value of assets acquired and liabilities assumed.
|
•
|
With the assistance of our fair value specialists, we evaluated the reasonableness of the valuation methodology, discount rates, capitalization rates, market rental rates and land values, by developing a range of independent estimates and comparing our estimates to those used by management.
|
•
|
We tested the mathematical accuracy of the valuation models and the source information underlying the determination of the intangible assets and liabilities fair value.
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Assets:
|
|
|
|
||||
Real estate assets, at cost:
|
|
|
|
||||
Land
|
$
|
515,095
|
|
|
$
|
491,441
|
|
Buildings and tenant improvements
|
5,128,150
|
|
|
4,676,862
|
|
||
Development in-process
|
172,706
|
|
|
165,537
|
|
||
Land held for development
|
99,163
|
|
|
128,248
|
|
||
|
5,915,114
|
|
|
5,462,088
|
|
||
Less-accumulated depreciation
|
(1,388,566
|
)
|
|
(1,296,562
|
)
|
||
Net real estate assets
|
4,526,548
|
|
|
4,165,526
|
|
||
Real estate and other assets, net, held for sale
|
20,790
|
|
|
—
|
|
||
Cash and cash equivalents
|
9,505
|
|
|
3,769
|
|
||
Restricted cash
|
5,237
|
|
|
6,374
|
|
||
Accounts receivable
|
23,370
|
|
|
25,952
|
|
||
Mortgages and notes receivable, net of allowance of $0 and $44, respectively
|
1,501
|
|
|
5,599
|
|
||
Accrued straight-line rents receivable
|
234,652
|
|
|
220,088
|
|
||
Investments in and advances to unconsolidated affiliates
|
26,298
|
|
|
23,585
|
|
||
Deferred leasing costs, net of accumulated amortization of $146,125 and $149,275, respectively
|
231,347
|
|
|
195,273
|
|
||
Prepaid expenses and other assets, net of accumulated depreciation of $20,017 and $18,074,
respectively |
58,996
|
|
|
28,843
|
|
||
Total Assets
|
$
|
5,138,244
|
|
|
$
|
4,675,009
|
|
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity:
|
|
|
|
||||
Mortgages and notes payable, net
|
$
|
2,543,710
|
|
|
$
|
2,085,831
|
|
Accounts payable, accrued expenses and other liabilities
|
286,911
|
|
|
218,922
|
|
||
Total Liabilities
|
2,830,621
|
|
|
2,304,753
|
|
||
Commitments and contingencies
|
|
|
|
||||
Noncontrolling interests in the Operating Partnership
|
133,216
|
|
|
105,960
|
|
||
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), 28,859 and 28,877 shares issued and outstanding, respectively
|
28,859
|
|
|
28,877
|
|
||
Common Stock, $.01 par value, 200,000,000 authorized shares;
|
|
|
|
||||
103,756,046 and 103,557,065 shares issued and outstanding, respectively
|
1,038
|
|
|
1,036
|
|
||
Additional paid-in capital
|
2,954,779
|
|
|
2,976,197
|
|
||
Distributions in excess of net income available for common stockholders
|
(831,808
|
)
|
|
(769,303
|
)
|
||
Accumulated other comprehensive income/(loss)
|
(471
|
)
|
|
9,913
|
|
||
Total Stockholders’ Equity
|
2,152,397
|
|
|
2,246,720
|
|
||
Noncontrolling interests in consolidated affiliates
|
22,010
|
|
|
17,576
|
|
||
Total Equity
|
2,174,407
|
|
|
2,264,296
|
|
||
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity
|
$
|
5,138,244
|
|
|
$
|
4,675,009
|
|
|
|||||||||||
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Rental and other revenues
|
$
|
735,979
|
|
|
$
|
720,035
|
|
|
$
|
702,737
|
|
Operating expenses:
|
|
|
|
|
|
||||||
Rental property and other expenses
|
248,511
|
|
|
242,415
|
|
|
236,888
|
|
|||
Depreciation and amortization
|
254,504
|
|
|
229,955
|
|
|
227,832
|
|
|||
Impairments of real estate assets
|
5,849
|
|
|
423
|
|
|
1,445
|
|
|||
General and administrative
|
44,067
|
|
|
40,006
|
|
|
39,648
|
|
|||
Total operating expenses
|
552,931
|
|
|
512,799
|
|
|
505,813
|
|
|||
Interest expense
|
81,648
|
|
|
71,422
|
|
|
69,105
|
|
|||
Other income/(loss)
|
(2,510
|
)
|
|
1,940
|
|
|
2,283
|
|
|||
Gains on disposition of property
|
39,517
|
|
|
37,638
|
|
|
54,157
|
|
|||
Equity in earnings of unconsolidated affiliates
|
3,276
|
|
|
2,238
|
|
|
7,404
|
|
|||
Net income
|
141,683
|
|
|
177,630
|
|
|
191,663
|
|
|||
Net (income) attributable to noncontrolling interests in the Operating Partnership
|
(3,551
|
)
|
|
(4,588
|
)
|
|
(5,059
|
)
|
|||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
(1,214
|
)
|
|
(1,207
|
)
|
|
(1,239
|
)
|
|||
Dividends on Preferred Stock
|
(2,488
|
)
|
|
(2,492
|
)
|
|
(2,492
|
)
|
|||
Net income available for common stockholders
|
$
|
134,430
|
|
|
$
|
169,343
|
|
|
$
|
182,873
|
|
Earnings per Common Share – basic:
|
|
|
|
|
|
||||||
Net income available for common stockholders
|
$
|
1.30
|
|
|
$
|
1.64
|
|
|
$
|
1.78
|
|
Weighted average Common Shares outstanding – basic
|
103,692
|
|
|
103,439
|
|
|
102,682
|
|
|||
Earnings per Common Share – diluted:
|
|
|
|
|
|
||||||
Net income available for common stockholders
|
$
|
1.30
|
|
|
$
|
1.64
|
|
|
$
|
1.78
|
|
Weighted average Common Shares outstanding – diluted
|
106,445
|
|
|
106,268
|
|
|
105,594
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Comprehensive income:
|
|
|
|
|
|
||||||
Net income
|
$
|
141,683
|
|
|
$
|
177,630
|
|
|
$
|
191,663
|
|
Other comprehensive income/(loss):
|
|
|
|
|
|
||||||
Unrealized gains/(losses) on cash flow hedges
|
(9,134
|
)
|
|
4,161
|
|
|
1,732
|
|
|||
Amortization of cash flow hedges
|
(1,250
|
)
|
|
(2,086
|
)
|
|
1,157
|
|
|||
Total other comprehensive income/(loss)
|
(10,384
|
)
|
|
2,075
|
|
|
2,889
|
|
|||
Total comprehensive income
|
131,299
|
|
|
179,705
|
|
|
194,552
|
|
|||
Less-comprehensive (income) attributable to noncontrolling interests
|
(4,765
|
)
|
|
(5,795
|
)
|
|
(6,298
|
)
|
|||
Comprehensive income attributable to common stockholders
|
$
|
126,534
|
|
|
$
|
173,910
|
|
|
$
|
188,254
|
|
|
||||||||||||||||||||||||||||||
|
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 ($1.76 per share)
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(180,805
|
)
|
|
(180,805
|
)
|
|||||||
Dividends on Preferred Stock ($86.25 per share)
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(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
|
|
|||||||
Issuances of Common Stock, net of issuance costs and tax withholdings
|
33,652
|
|
|
—
|
|
|
—
|
|
|
1,865
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,865
|
|
|||||||
Conversions of Common Units to Common Stock
|
90,001
|
|
|
—
|
|
|
—
|
|
|
4,043
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,043
|
|
|||||||
Dividends on Common Stock ($1.85 per share)
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(191,302
|
)
|
|
(191,302
|
)
|
|||||||
Dividends on Preferred Stock ($86.25 per share)
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,492
|
)
|
|
(2,492
|
)
|
|||||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value
|
|
|
|
—
|
|
|
—
|
|
|
33,427
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33,427
|
|
|||||||
Distributions to noncontrolling interests in consolidated affiliates
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,047
|
)
|
|
—
|
|
|
(1,047
|
)
|
|||||||
Issuances of restricted stock
|
172,440
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Redemptions/repurchases of Preferred Stock
|
|
|
|
—
|
|
|
(15
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
|||||||
Share-based compensation expense, net of forfeitures
|
(5,903
|
)
|
|
3
|
|
|
—
|
|
|
7,463
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,466
|
|
|||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,588
|
)
|
|
(4,588
|
)
|
|||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,207
|
|
|
(1,207
|
)
|
|
—
|
|
|||||||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
177,630
|
|
|
177,630
|
|
|||||||
Other comprehensive income
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,075
|
|
|
—
|
|
|
—
|
|
|
2,075
|
|
|||||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
179,705
|
|
||||||||||||||
Balance at December 31, 2018
|
103,557,065
|
|
|
$
|
1,036
|
|
|
$
|
28,877
|
|
|
$
|
2,976,197
|
|
|
$
|
9,913
|
|
|
$
|
17,576
|
|
|
$
|
(769,303
|
)
|
|
$
|
2,264,296
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2018
|
103,557,065
|
|
|
$
|
1,036
|
|
|
$
|
28,877
|
|
|
$
|
2,976,197
|
|
|
$
|
9,913
|
|
|
$
|
17,576
|
|
|
$
|
(769,303
|
)
|
|
$
|
2,264,296
|
|
Issuances of Common Stock, net of issuance costs and tax withholdings
|
(143
|
)
|
|
—
|
|
|
—
|
|
|
298
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
298
|
|
|||||||
Conversions of Common Units to Common Stock
|
15,000
|
|
|
—
|
|
|
—
|
|
|
663
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
663
|
|
|||||||
Dividends on Common Stock ($1.90 per share)
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(196,935
|
)
|
|
(196,935
|
)
|
|||||||
Dividends on Preferred Stock ($86.25 per share)
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,488
|
)
|
|
(2,488
|
)
|
|||||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value
|
|
|
|
—
|
|
|
—
|
|
|
(29,557
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(29,557
|
)
|
|||||||
Distributions to noncontrolling interests in consolidated affiliates
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,767
|
)
|
|
—
|
|
|
(1,767
|
)
|
|||||||
Contributions from noncontrolling interests in consolidated affiliates
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,987
|
|
|
—
|
|
|
4,987
|
|
|||||||
Issuances of restricted stock
|
190,934
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Redemptions/repurchases of Preferred Stock
|
|
|
|
—
|
|
|
(18
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18
|
)
|
|||||||
Share-based compensation expense, net of forfeitures
|
(6,810
|
)
|
|
2
|
|
|
—
|
|
|
7,178
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,180
|
|
|||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,551
|
)
|
|
(3,551
|
)
|
|||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,214
|
|
|
(1,214
|
)
|
|
—
|
|
|||||||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
141,683
|
|
|
141,683
|
|
|||||||
Other comprehensive loss
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,384
|
)
|
|
—
|
|
|
—
|
|
|
(10,384
|
)
|
|||||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
131,299
|
|
||||||||||||||
Balance at December 31, 2019
|
103,756,046
|
|
|
$
|
1,038
|
|
|
$
|
28,859
|
|
|
$
|
2,954,779
|
|
|
$
|
(471
|
)
|
|
$
|
22,010
|
|
|
$
|
(831,808
|
)
|
|
$
|
2,174,407
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
141,683
|
|
|
$
|
177,630
|
|
|
$
|
191,663
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
254,504
|
|
|
229,955
|
|
|
227,832
|
|
|||
Amortization of lease incentives and acquisition-related intangible assets and liabilities
|
(505
|
)
|
|
(1,943
|
)
|
|
(1,172
|
)
|
|||
Share-based compensation expense
|
7,180
|
|
|
7,466
|
|
|
6,692
|
|
|||
Credit losses on operating lease receivables
|
9,861
|
|
|
1,212
|
|
|
1,508
|
|
|||
Write-off of mortgages and notes receivable
|
4,087
|
|
|
—
|
|
|
—
|
|
|||
Accrued interest on mortgages and notes receivable
|
(184
|
)
|
|
(451
|
)
|
|
(509
|
)
|
|||
Amortization of debt issuance costs
|
2,970
|
|
|
2,857
|
|
|
3,166
|
|
|||
Amortization of cash flow hedges
|
(1,250
|
)
|
|
(2,086
|
)
|
|
1,157
|
|
|||
Amortization of mortgages and notes payable fair value adjustments
|
1,619
|
|
|
1,449
|
|
|
705
|
|
|||
Impairments of real estate assets
|
5,849
|
|
|
423
|
|
|
1,445
|
|
|||
Losses on debt extinguishment
|
640
|
|
|
—
|
|
|
26
|
|
|||
Net gains on disposition of property
|
(39,517
|
)
|
|
(37,638
|
)
|
|
(54,157
|
)
|
|||
Equity in earnings of unconsolidated affiliates
|
(3,276
|
)
|
|
(2,238
|
)
|
|
(7,404
|
)
|
|||
Distributions of earnings from unconsolidated affiliates
|
1,149
|
|
|
2,104
|
|
|
5,078
|
|
|||
Settlement of cash flow hedges
|
(11,749
|
)
|
|
7,216
|
|
|
7,322
|
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||||||
Accounts receivable
|
(3,271
|
)
|
|
1,759
|
|
|
(4,974
|
)
|
|||
Prepaid expenses and other assets
|
1,610
|
|
|
1,217
|
|
|
7,908
|
|
|||
Accrued straight-line rents receivable
|
(29,828
|
)
|
|
(23,203
|
)
|
|
(32,234
|
)
|
|||
Accounts payable, accrued expenses and other liabilities
|
24,225
|
|
|
(7,101
|
)
|
|
(1,520
|
)
|
|||
Net cash provided by operating activities
|
365,797
|
|
|
358,628
|
|
|
352,532
|
|
|||
Investing activities:
|
|
|
|
|
|
||||||
Investments in acquired real estate and related intangible assets, net of cash acquired
|
(424,222
|
)
|
|
(50,649
|
)
|
|
(1,840
|
)
|
|||
Investments in development in-process
|
(116,111
|
)
|
|
(150,310
|
)
|
|
(150,944
|
)
|
|||
Investments in tenant improvements and deferred leasing costs
|
(138,754
|
)
|
|
(121,534
|
)
|
|
(109,742
|
)
|
|||
Investments in building improvements
|
(53,826
|
)
|
|
(68,256
|
)
|
|
(63,780
|
)
|
|||
Net proceeds from disposition of real estate assets
|
133,326
|
|
|
88,813
|
|
|
129,503
|
|
|||
Distributions of capital from unconsolidated affiliates
|
7,833
|
|
|
105
|
|
|
11,670
|
|
|||
Repayments of mortgages and notes receivable
|
295
|
|
|
1,312
|
|
|
2,917
|
|
|||
Investments in and advances to unconsolidated affiliates
|
(9,977
|
)
|
|
—
|
|
|
(10,063
|
)
|
|||
Changes in other investing activities
|
(5,971
|
)
|
|
(6,230
|
)
|
|
(8,023
|
)
|
|||
Net cash used in investing activities
|
$
|
(607,407
|
)
|
|
$
|
(306,749
|
)
|
|
$
|
(200,302
|
)
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Financing activities:
|
|
|
|
|
|
||||||
Dividends on Common Stock
|
$
|
(196,935
|
)
|
|
$
|
(191,302
|
)
|
|
$
|
(180,805
|
)
|
Special dividend on Common Stock
|
—
|
|
|
—
|
|
|
(81,205
|
)
|
|||
Redemptions/repurchases of Preferred Stock
|
(18
|
)
|
|
(15
|
)
|
|
(28
|
)
|
|||
Dividends on Preferred Stock
|
(2,488
|
)
|
|
(2,492
|
)
|
|
(2,492
|
)
|
|||
Distributions to noncontrolling interests in the Operating Partnership
|
(5,189
|
)
|
|
(5,167
|
)
|
|
(4,987
|
)
|
|||
Special distribution to noncontrolling interests in the Operating Partnership
|
—
|
|
|
—
|
|
|
(2,271
|
)
|
|||
Distributions to noncontrolling interests in consolidated affiliates
|
(1,767
|
)
|
|
(1,047
|
)
|
|
(1,784
|
)
|
|||
Proceeds from the issuance of Common Stock
|
2,086
|
|
|
3,637
|
|
|
76,268
|
|
|||
Costs paid for the issuance of Common Stock
|
—
|
|
|
(95
|
)
|
|
(1,283
|
)
|
|||
Repurchase of shares related to tax withholdings
|
(1,788
|
)
|
|
(1,677
|
)
|
|
(4,008
|
)
|
|||
Borrowings on revolving credit facility
|
604,600
|
|
|
438,900
|
|
|
780,300
|
|
|||
Repayments of revolving credit facility
|
(565,600
|
)
|
|
(501,900
|
)
|
|
(535,300
|
)
|
|||
Borrowings on mortgages and notes payable
|
747,990
|
|
|
345,863
|
|
|
656,001
|
|
|||
Repayments of mortgages and notes payable
|
(326,876
|
)
|
|
(211,803
|
)
|
|
(832,553
|
)
|
|||
Payments of debt extinguishment costs
|
—
|
|
|
—
|
|
|
(57
|
)
|
|||
Changes in debt issuance costs and other financing activities
|
(7,806
|
)
|
|
(2,971
|
)
|
|
(8,324
|
)
|
|||
Net cash provided by/(used in) financing activities
|
246,209
|
|
|
(130,069
|
)
|
|
(142,528
|
)
|
|||
Net increase/(decrease) in cash and cash equivalents and restricted cash
|
4,599
|
|
|
(78,190
|
)
|
|
9,702
|
|
|||
Cash and cash equivalents and restricted cash at beginning of the period
|
10,143
|
|
|
88,333
|
|
|
78,631
|
|
|||
Cash and cash equivalents and restricted cash at end of the period
|
$
|
14,742
|
|
|
$
|
10,143
|
|
|
$
|
88,333
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Cash and cash equivalents at end of the period
|
$
|
9,505
|
|
|
$
|
3,769
|
|
|
$
|
3,272
|
|
Restricted cash at end of the period
|
5,237
|
|
|
6,374
|
|
|
85,061
|
|
|||
Cash and cash equivalents and restricted cash at end of the period
|
$
|
14,742
|
|
|
$
|
10,143
|
|
|
$
|
88,333
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Cash paid for interest, net of amounts capitalized
|
$
|
72,014
|
|
|
$
|
67,235
|
|
|
$
|
68,207
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Unrealized gains/(losses) on cash flow hedges
|
$
|
(9,134
|
)
|
|
$
|
4,161
|
|
|
$
|
1,732
|
|
Conversions of Common Units to Common Stock
|
663
|
|
|
4,043
|
|
|
511
|
|
|||
Changes in accrued capital expenditures
|
5,625
|
|
|
(165
|
)
|
|
(1,912
|
)
|
|||
Write-off of fully depreciated real estate assets
|
85,727
|
|
|
76,558
|
|
|
59,108
|
|
|||
Write-off of fully amortized leasing costs
|
45,042
|
|
|
34,191
|
|
|
40,517
|
|
|||
Write-off of fully amortized debt issuance costs
|
1,791
|
|
|
2,733
|
|
|
11,724
|
|
|||
Adjustment of noncontrolling interests in the Operating Partnership to fair value
|
29,557
|
|
|
(33,427
|
)
|
|
(354
|
)
|
|||
Contingent consideration in connection with the acquisition of land
|
1,200
|
|
|
—
|
|
|
750
|
|
|||
Contributions from noncontrolling interests in consolidated affiliates
|
4,987
|
|
|
—
|
|
|
—
|
|
|||
Initial recognition of lease liabilities related to right of use assets
|
35,349
|
|
|
—
|
|
|
—
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Assets:
|
|
|
|
||||
Real estate assets, at cost:
|
|
|
|
||||
Land
|
$
|
515,095
|
|
|
$
|
491,441
|
|
Buildings and tenant improvements
|
5,128,150
|
|
|
4,676,862
|
|
||
Development in-process
|
172,706
|
|
|
165,537
|
|
||
Land held for development
|
99,163
|
|
|
128,248
|
|
||
|
5,915,114
|
|
|
5,462,088
|
|
||
Less-accumulated depreciation
|
(1,388,566
|
)
|
|
(1,296,562
|
)
|
||
Net real estate assets
|
4,526,548
|
|
|
4,165,526
|
|
||
Real estate and other assets, net, held for sale
|
20,790
|
|
|
—
|
|
||
Cash and cash equivalents
|
9,505
|
|
|
3,769
|
|
||
Restricted cash
|
5,237
|
|
|
6,374
|
|
||
Accounts receivable
|
23,370
|
|
|
25,952
|
|
||
Mortgages and notes receivable, net of allowance of $0 and $44, respectively
|
1,501
|
|
|
5,599
|
|
||
Accrued straight-line rents receivable
|
234,652
|
|
|
220,088
|
|
||
Investments in and advances to unconsolidated affiliates
|
26,298
|
|
|
23,585
|
|
||
Deferred leasing costs, net of accumulated amortization of $146,125 and $149,275, respectively
|
231,347
|
|
|
195,273
|
|
||
Prepaid expenses and other assets, net of accumulated depreciation of $20,017 and $18,074,
respectively |
58,996
|
|
|
28,843
|
|
||
Total Assets
|
$
|
5,138,244
|
|
|
$
|
4,675,009
|
|
Liabilities, Redeemable Operating Partnership Units and Capital:
|
|
|
|
||||
Mortgages and notes payable, net
|
$
|
2,543,710
|
|
|
$
|
2,085,831
|
|
Accounts payable, accrued expenses and other liabilities
|
286,911
|
|
|
218,922
|
|
||
Total Liabilities
|
2,830,621
|
|
|
2,304,753
|
|
||
Commitments and contingencies
|
|
|
|
||||
Redeemable Operating Partnership Units:
|
|
|
|
||||
Common Units, 2,723,703 and 2,738,703 outstanding, respectively
|
133,216
|
|
|
105,960
|
|
||
Series A Preferred Units (liquidation preference $1,000 per unit), 28,859 and 28,877 units
issued and outstanding, respectively |
28,859
|
|
|
28,877
|
|
||
Total Redeemable Operating Partnership Units
|
162,075
|
|
|
134,837
|
|
||
Capital:
|
|
|
|
||||
Common Units:
|
|
|
|
||||
General partner Common Units, 1,060,709 and 1,058,870 outstanding, respectively
|
21,240
|
|
|
22,078
|
|
||
Limited partner Common Units, 102,286,528 and 102,089,386 outstanding, respectively
|
2,102,769
|
|
|
2,185,852
|
|
||
Accumulated other comprehensive income/(loss)
|
(471
|
)
|
|
9,913
|
|
||
Noncontrolling interests in consolidated affiliates
|
22,010
|
|
|
17,576
|
|
||
Total Capital
|
2,145,548
|
|
|
2,235,419
|
|
||
Total Liabilities, Redeemable Operating Partnership Units and Capital
|
$
|
5,138,244
|
|
|
$
|
4,675,009
|
|
|
|||||||||||
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Rental and other revenues
|
$
|
735,979
|
|
|
$
|
720,035
|
|
|
$
|
702,737
|
|
Operating expenses:
|
|
|
|
|
|
||||||
Rental property and other expenses
|
248,511
|
|
|
242,415
|
|
|
236,888
|
|
|||
Depreciation and amortization
|
254,504
|
|
|
229,955
|
|
|
227,832
|
|
|||
Impairments of real estate assets
|
5,849
|
|
|
423
|
|
|
1,445
|
|
|||
General and administrative
|
44,067
|
|
|
40,006
|
|
|
39,648
|
|
|||
Total operating expenses
|
552,931
|
|
|
512,799
|
|
|
505,813
|
|
|||
Interest expense
|
81,648
|
|
|
71,422
|
|
|
69,105
|
|
|||
Other income/(loss)
|
(2,510
|
)
|
|
1,940
|
|
|
2,283
|
|
|||
Gains on disposition of property
|
39,517
|
|
|
37,638
|
|
|
54,157
|
|
|||
Equity in earnings of unconsolidated affiliates
|
3,276
|
|
|
2,238
|
|
|
7,404
|
|
|||
Net income
|
141,683
|
|
|
177,630
|
|
|
191,663
|
|
|||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
(1,214
|
)
|
|
(1,207
|
)
|
|
(1,239
|
)
|
|||
Distributions on Preferred Units
|
(2,488
|
)
|
|
(2,492
|
)
|
|
(2,492
|
)
|
|||
Net income available for common unitholders
|
$
|
137,981
|
|
|
$
|
173,931
|
|
|
$
|
187,932
|
|
Earnings per Common Unit – basic:
|
|
|
|
|
|
||||||
Net income available for common unitholders
|
$
|
1.30
|
|
|
$
|
1.64
|
|
|
$
|
1.79
|
|
Weighted average Common Units outstanding – basic
|
106,014
|
|
|
105,826
|
|
|
105,106
|
|
|||
Earnings per Common Unit – diluted:
|
|
|
|
|
|
||||||
Net income available for common unitholders
|
$
|
1.30
|
|
|
$
|
1.64
|
|
|
$
|
1.79
|
|
Weighted average Common Units outstanding – diluted
|
106,036
|
|
|
105,859
|
|
|
105,185
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Comprehensive income:
|
|
|
|
|
|
||||||
Net income
|
$
|
141,683
|
|
|
$
|
177,630
|
|
|
$
|
191,663
|
|
Other comprehensive income/(loss):
|
|
|
|
|
|
||||||
Unrealized gains/(losses) on cash flow hedges
|
(9,134
|
)
|
|
4,161
|
|
|
1,732
|
|
|||
Amortization of cash flow hedges
|
(1,250
|
)
|
|
(2,086
|
)
|
|
1,157
|
|
|||
Total other comprehensive income/(loss)
|
(10,384
|
)
|
|
2,075
|
|
|
2,889
|
|
|||
Total comprehensive income
|
131,299
|
|
|
179,705
|
|
|
194,552
|
|
|||
Less-comprehensive (income) attributable to noncontrolling interests
|
(1,214
|
)
|
|
(1,207
|
)
|
|
(1,239
|
)
|
|||
Comprehensive income attributable to common unitholders
|
$
|
130,085
|
|
|
$
|
178,498
|
|
|
$
|
193,313
|
|
|
Common Units
|
|
Accumulated
Other
Comprehensive Income/(Loss)
|
|
Noncontrolling
Interests in
Consolidated
Affiliates
|
|
Total
|
||||||||||||
|
General
Partners’
Capital
|
|
Limited
Partners’
Capital
|
|
|||||||||||||||
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 ($1.76 per unit)
|
(1,851
|
)
|
|
(183,221
|
)
|
|
—
|
|
|
—
|
|
|
(185,072
|
)
|
|||||
Distributions on Preferred Units ($86.25 per unit)
|
(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
|
|
|||||
Issuances of Common Units, net of issuance costs and tax withholdings
|
19
|
|
|
1,846
|
|
|
—
|
|
|
—
|
|
|
1,865
|
|
|||||
Distributions on Common Units ($1.85 per unit)
|
(1,957
|
)
|
|
(193,755
|
)
|
|
—
|
|
|
—
|
|
|
(195,712
|
)
|
|||||
Distributions on Preferred Units ($86.25 per unit)
|
(25
|
)
|
|
(2,467
|
)
|
|
—
|
|
|
—
|
|
|
(2,492
|
)
|
|||||
Share-based compensation expense, net of forfeitures
|
75
|
|
|
7,391
|
|
|
—
|
|
|
—
|
|
|
7,466
|
|
|||||
Distributions to noncontrolling interests in consolidated affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,047
|
)
|
|
(1,047
|
)
|
|||||
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner
|
372
|
|
|
36,920
|
|
|
—
|
|
|
—
|
|
|
37,292
|
|
|||||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
(12
|
)
|
|
(1,195
|
)
|
|
—
|
|
|
1,207
|
|
|
—
|
|
|||||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
1,776
|
|
|
175,854
|
|
|
—
|
|
|
—
|
|
|
177,630
|
|
|||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
2,075
|
|
|
—
|
|
|
2,075
|
|
|||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
179,705
|
|
|||||||||
Balance at December 31, 2018
|
22,078
|
|
|
2,185,852
|
|
|
9,913
|
|
|
17,576
|
|
|
2,235,419
|
|
|||||
Issuances of Common Units, net of issuance costs and tax withholdings
|
3
|
|
|
295
|
|
|
—
|
|
|
—
|
|
|
298
|
|
|||||
Distributions on Common Units ($1.90 per unit)
|
(2,013
|
)
|
|
(199,334
|
)
|
|
—
|
|
|
—
|
|
|
(201,347
|
)
|
|||||
Distributions on Preferred Units ($86.25 per unit)
|
(25
|
)
|
|
(2,463
|
)
|
|
—
|
|
|
—
|
|
|
(2,488
|
)
|
|||||
Share-based compensation expense, net of forfeitures
|
72
|
|
|
7,108
|
|
|
—
|
|
|
—
|
|
|
7,180
|
|
|||||
Distributions to noncontrolling interests in consolidated affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,767
|
)
|
|
(1,767
|
)
|
|||||
Contributions from noncontrolling interests in consolidated affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
4,987
|
|
|
4,987
|
|
|||||
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner
|
(280
|
)
|
|
(27,753
|
)
|
|
—
|
|
|
—
|
|
|
(28,033
|
)
|
|||||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
(12
|
)
|
|
(1,202
|
)
|
|
—
|
|
|
1,214
|
|
|
—
|
|
|||||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
1,417
|
|
|
140,266
|
|
|
—
|
|
|
—
|
|
|
141,683
|
|
|||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
(10,384
|
)
|
|
—
|
|
|
(10,384
|
)
|
|||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
131,299
|
|
|||||||||
Balance at December 31, 2019
|
$
|
21,240
|
|
|
$
|
2,102,769
|
|
|
$
|
(471
|
)
|
|
$
|
22,010
|
|
|
$
|
2,145,548
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
141,683
|
|
|
$
|
177,630
|
|
|
$
|
191,663
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
254,504
|
|
|
229,955
|
|
|
227,832
|
|
|||
Amortization of lease incentives and acquisition-related intangible assets and liabilities
|
(505
|
)
|
|
(1,943
|
)
|
|
(1,172
|
)
|
|||
Share-based compensation expense
|
7,180
|
|
|
7,466
|
|
|
6,692
|
|
|||
Credit losses on operating lease receivables
|
9,861
|
|
|
1,212
|
|
|
1,508
|
|
|||
Write-off of mortgages and notes receivable
|
4,087
|
|
|
—
|
|
|
—
|
|
|||
Accrued interest on mortgages and notes receivable
|
(184
|
)
|
|
(451
|
)
|
|
(509
|
)
|
|||
Amortization of debt issuance costs
|
2,970
|
|
|
2,857
|
|
|
3,166
|
|
|||
Amortization of cash flow hedges
|
(1,250
|
)
|
|
(2,086
|
)
|
|
1,157
|
|
|||
Amortization of mortgages and notes payable fair value adjustments
|
1,619
|
|
|
1,449
|
|
|
705
|
|
|||
Impairments of real estate assets
|
5,849
|
|
|
423
|
|
|
1,445
|
|
|||
Losses on debt extinguishment
|
640
|
|
|
—
|
|
|
26
|
|
|||
Net gains on disposition of property
|
(39,517
|
)
|
|
(37,638
|
)
|
|
(54,157
|
)
|
|||
Equity in earnings of unconsolidated affiliates
|
(3,276
|
)
|
|
(2,238
|
)
|
|
(7,404
|
)
|
|||
Distributions of earnings from unconsolidated affiliates
|
1,149
|
|
|
2,104
|
|
|
5,078
|
|
|||
Settlement of cash flow hedges
|
(11,749
|
)
|
|
7,216
|
|
|
7,322
|
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||||||
Accounts receivable
|
(3,271
|
)
|
|
1,759
|
|
|
(4,974
|
)
|
|||
Prepaid expenses and other assets
|
1,610
|
|
|
1,217
|
|
|
7,908
|
|
|||
Accrued straight-line rents receivable
|
(29,828
|
)
|
|
(23,203
|
)
|
|
(32,234
|
)
|
|||
Accounts payable, accrued expenses and other liabilities
|
24,225
|
|
|
(7,101
|
)
|
|
(1,520
|
)
|
|||
Net cash provided by operating activities
|
365,797
|
|
|
358,628
|
|
|
352,532
|
|
|||
Investing activities:
|
|
|
|
|
|
||||||
Investments in acquired real estate and related intangible assets, net of cash acquired
|
(424,222
|
)
|
|
(50,649
|
)
|
|
(1,840
|
)
|
|||
Investments in development in-process
|
(116,111
|
)
|
|
(150,310
|
)
|
|
(150,944
|
)
|
|||
Investments in tenant improvements and deferred leasing costs
|
(138,754
|
)
|
|
(121,534
|
)
|
|
(109,742
|
)
|
|||
Investments in building improvements
|
(53,826
|
)
|
|
(68,256
|
)
|
|
(63,780
|
)
|
|||
Net proceeds from disposition of real estate assets
|
133,326
|
|
|
88,813
|
|
|
129,503
|
|
|||
Distributions of capital from unconsolidated affiliates
|
7,833
|
|
|
105
|
|
|
11,670
|
|
|||
Repayments of mortgages and notes receivable
|
295
|
|
|
1,312
|
|
|
2,917
|
|
|||
Investments in and advances to unconsolidated affiliates
|
(9,977
|
)
|
|
—
|
|
|
(10,063
|
)
|
|||
Changes in other investing activities
|
(5,971
|
)
|
|
(6,230
|
)
|
|
(8,023
|
)
|
|||
Net cash used in investing activities
|
$
|
(607,407
|
)
|
|
$
|
(306,749
|
)
|
|
$
|
(200,302
|
)
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Financing activities:
|
|
|
|
|
|
||||||
Distributions on Common Units
|
$
|
(201,347
|
)
|
|
$
|
(195,712
|
)
|
|
$
|
(185,072
|
)
|
Special distribution on Common Units
|
—
|
|
|
—
|
|
|
(83,149
|
)
|
|||
Redemptions/repurchases of Preferred Units
|
(18
|
)
|
|
(15
|
)
|
|
(28
|
)
|
|||
Distributions on Preferred Units
|
(2,488
|
)
|
|
(2,492
|
)
|
|
(2,492
|
)
|
|||
Distributions to noncontrolling interests in consolidated affiliates
|
(1,767
|
)
|
|
(1,047
|
)
|
|
(1,784
|
)
|
|||
Proceeds from the issuance of Common Units
|
2,086
|
|
|
3,637
|
|
|
76,268
|
|
|||
Costs paid for the issuance of Common Units
|
—
|
|
|
(95
|
)
|
|
(1,283
|
)
|
|||
Repurchase of units related to tax withholdings
|
(1,788
|
)
|
|
(1,677
|
)
|
|
(4,008
|
)
|
|||
Borrowings on revolving credit facility
|
604,600
|
|
|
438,900
|
|
|
780,300
|
|
|||
Repayments of revolving credit facility
|
(565,600
|
)
|
|
(501,900
|
)
|
|
(535,300
|
)
|
|||
Borrowings on mortgages and notes payable
|
747,990
|
|
|
345,863
|
|
|
656,001
|
|
|||
Repayments of mortgages and notes payable
|
(326,876
|
)
|
|
(211,803
|
)
|
|
(832,553
|
)
|
|||
Payments of debt extinguishment costs
|
—
|
|
|
—
|
|
|
(57
|
)
|
|||
Changes in debt issuance costs and other financing activities
|
(8,583
|
)
|
|
(3,728
|
)
|
|
(9,371
|
)
|
|||
Net cash provided by/(used in) financing activities
|
246,209
|
|
|
(130,069
|
)
|
|
(142,528
|
)
|
|||
Net increase/(decrease) in cash and cash equivalents and restricted cash
|
4,599
|
|
|
(78,190
|
)
|
|
9,702
|
|
|||
Cash and cash equivalents and restricted cash at beginning of the period
|
10,143
|
|
|
88,333
|
|
|
78,631
|
|
|||
Cash and cash equivalents and restricted cash at end of the period
|
$
|
14,742
|
|
|
$
|
10,143
|
|
|
$
|
88,333
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Cash and cash equivalents at end of the period
|
$
|
9,505
|
|
|
$
|
3,769
|
|
|
$
|
3,272
|
|
Restricted cash at end of the period
|
5,237
|
|
|
6,374
|
|
|
85,061
|
|
|||
Cash and cash equivalents and restricted cash at end of the period
|
$
|
14,742
|
|
|
$
|
10,143
|
|
|
$
|
88,333
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Cash paid for interest, net of amounts capitalized
|
$
|
72,014
|
|
|
$
|
67,235
|
|
|
$
|
68,207
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Unrealized gains/(losses) on cash flow hedges
|
$
|
(9,134
|
)
|
|
$
|
4,161
|
|
|
$
|
1,732
|
|
Changes in accrued capital expenditures
|
5,625
|
|
|
(165
|
)
|
|
(1,912
|
)
|
|||
Write-off of fully depreciated real estate assets
|
85,727
|
|
|
76,558
|
|
|
59,108
|
|
|||
Write-off of fully amortized leasing costs
|
45,042
|
|
|
34,191
|
|
|
40,517
|
|
|||
Write-off of fully amortized debt issuance costs
|
1,791
|
|
|
2,733
|
|
|
11,724
|
|
|||
Adjustment of Redeemable Common Units to fair value
|
27,256
|
|
|
(38,049
|
)
|
|
(793
|
)
|
|||
Contingent consideration in connection with the acquisition of land
|
1,200
|
|
|
—
|
|
|
750
|
|
|||
Contributions from noncontrolling interests in consolidated affiliates
|
4,987
|
|
|
—
|
|
|
—
|
|
|||
Initial recognition of lease liabilities related to right of use assets
|
35,349
|
|
|
—
|
|
|
—
|
|
•
|
No reassessment of whether any expired or existing contracts were or contained leases;
|
•
|
No reassessment of the lease classification for any expired or existing leases; and
|
•
|
No reassessment of initial direct costs for any existing leases.
|
2020
|
|
$
|
647,558
|
|
2021
|
|
621,080
|
|
|
2022
|
|
596,698
|
|
|
2023
|
|
537,225
|
|
|
2024
|
|
474,258
|
|
|
Thereafter
|
|
2,213,294
|
|
|
|
|
$
|
5,090,113
|
|
|
Balance at December 31, 2017
|
|
Additions
|
|
Deductions
|
|
Balance at December 31, 2018
|
||||||||
Allowance for Doubtful Accounts - Straight-Line Rent
|
$
|
819
|
|
|
$
|
599
|
|
|
$
|
(777
|
)
|
|
$
|
641
|
|
Allowance for Doubtful Accounts - Accounts Receivable
|
753
|
|
|
969
|
|
|
(556
|
)
|
|
1,166
|
|
||||
Allowance for Doubtful Accounts - Notes Receivable
|
72
|
|
|
—
|
|
|
(28
|
)
|
|
44
|
|
||||
Totals
|
$
|
1,644
|
|
|
$
|
1,568
|
|
|
$
|
(1,361
|
)
|
|
$
|
1,851
|
|
|
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
|
|
2019
|
|
$
|
618,014
|
|
2020
|
|
581,399
|
|
|
2021
|
|
524,381
|
|
|
2022
|
|
488,157
|
|
|
2023
|
|
428,461
|
|
|
Thereafter
|
|
2,068,891
|
|
|
|
|
$
|
4,709,303
|
|
2020
|
|
$
|
2,086
|
|
2021
|
|
2,127
|
|
|
2022
|
|
2,169
|
|
|
2023
|
|
2,167
|
|
|
2024
|
|
2,123
|
|
|
Thereafter
|
|
83,697
|
|
|
|
|
94,369
|
|
|
Discount
|
|
(59,470
|
)
|
|
Lease liability
|
|
$
|
34,899
|
|
2019
|
|
$
|
2,184
|
|
2020
|
|
2,223
|
|
|
2021
|
|
2,263
|
|
|
2022
|
|
2,305
|
|
|
2023
|
|
2,308
|
|
|
Thereafter
|
|
86,577
|
|
|
|
|
$
|
97,860
|
|
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%
|
|
December 31,
2019 |
||
Development in-process
|
$
|
22,380
|
|
Accounts payable, accrued expenses and other liabilities
|
$
|
1,162
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Assets:
|
|
|
|
||||
Deferred leasing costs (including lease incentives and above market lease and in-place lease acquisition-related intangible assets)
|
$
|
377,472
|
|
|
$
|
344,548
|
|
Less accumulated amortization
|
(146,125
|
)
|
|
(149,275
|
)
|
||
|
$
|
231,347
|
|
|
$
|
195,273
|
|
Liabilities (in accounts payable, accrued expenses and other liabilities):
|
|
|
|
||||
Acquisition-related below market lease liabilities
|
$
|
65,971
|
|
|
$
|
57,955
|
|
Less accumulated amortization
|
(34,014
|
)
|
|
(32,307
|
)
|
||
|
$
|
31,957
|
|
|
$
|
25,648
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Amortization of deferred leasing costs and acquisition-related intangible assets (in depreciation and amortization)
|
$
|
37,386
|
|
|
$
|
36,486
|
|
|
$
|
41,187
|
|
Amortization of lease incentives (in rental and other revenues)
|
$
|
4,281
|
|
|
$
|
1,908
|
|
|
$
|
1,765
|
|
Amortization of acquisition-related intangible assets (in rental and other revenues)
|
$
|
1,290
|
|
|
$
|
1,677
|
|
|
$
|
2,921
|
|
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)
|
$
|
(6,633
|
)
|
|
$
|
(6,085
|
)
|
|
$
|
(6,415
|
)
|
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)
|
||||||||||
2020
|
|
$
|
38,376
|
|
|
$
|
1,599
|
|
|
$
|
1,095
|
|
|
$
|
510
|
|
|
$
|
(5,933
|
)
|
2021
|
|
33,581
|
|
|
1,353
|
|
|
777
|
|
|
—
|
|
|
(5,033
|
)
|
|||||
2022
|
|
29,200
|
|
|
1,119
|
|
|
608
|
|
|
—
|
|
|
(3,985
|
)
|
|||||
2023
|
|
25,683
|
|
|
1,040
|
|
|
454
|
|
|
—
|
|
|
(3,607
|
)
|
|||||
2024
|
|
22,631
|
|
|
890
|
|
|
380
|
|
|
—
|
|
|
(2,939
|
)
|
|||||
Thereafter
|
|
65,964
|
|
|
3,914
|
|
|
2,173
|
|
|
—
|
|
|
(10,460
|
)
|
|||||
|
|
$
|
215,435
|
|
|
$
|
9,915
|
|
|
$
|
5,487
|
|
|
$
|
510
|
|
|
$
|
(31,957
|
)
|
Weighted average remaining amortization periods as of December 31, 2019 (in years)
|
|
8.4
|
|
|
9.2
|
|
|
9.4
|
|
|
1.0
|
|
|
8.8
|
|
|
|
Acquisition-Related Intangible Assets (amortized in Rental and Other Revenues)
|
|
Acquisition-Related Intangible Assets (amortized in Depreciation and Amortization)
|
|
Acquisition-Related Below Market Lease Liabilities (amortized in Rental and Other Revenues)
|
||||||
Amount recorded at acquisition
|
|
$
|
2,059
|
|
|
$
|
35,637
|
|
|
$
|
(12,943
|
)
|
Weighted average remaining amortization periods as of December 31, 2019 (in years)
|
|
14.4
|
|
|
14.7
|
|
|
14.3
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Secured indebtedness:
|
|
|
|
||||
4.00% mortgage loan due 2029 (1)
|
$
|
95,303
|
|
|
$
|
97,179
|
|
|
95,303
|
|
|
97,179
|
|
||
Unsecured indebtedness:
|
|
|
|
||||
3.20% (3.363% effective rate) notes due 2021 (2)
|
299,369
|
|
|
298,936
|
|
||
3.625% (3.752% effective rate) notes due 2023 (3)
|
249,201
|
|
|
248,938
|
|
||
3.875% (4.038% effective rate) notes due 2027 (4)
|
297,134
|
|
|
296,734
|
|
||
4.125% (4.271% effective rate) notes due 2028 (5)
|
346,621
|
|
|
346,208
|
|
||
4.20% (4.234% effective rate) notes due 2029 (6)
|
349,091
|
|
|
—
|
|
||
3.050% (3.079% effective rate) notes due 2030 (7)
|
399,009
|
|
|
—
|
|
||
Variable rate term loan due 2020 (8)
|
—
|
|
|
225,000
|
|
||
Variable rate term loan due 2022 (9)
|
100,000
|
|
|
200,000
|
|
||
Variable rate term loan due 2022 (10)
|
200,000
|
|
|
200,000
|
|
||
Revolving credit facility due 2022 (11)
|
221,000
|
|
|
182,000
|
|
||
|
2,461,425
|
|
|
1,997,816
|
|
||
Less-unamortized debt issuance costs
|
(13,018
|
)
|
|
(9,164
|
)
|
||
Total mortgages and notes payable, net
|
$
|
2,543,710
|
|
|
$
|
2,085,831
|
|
(1)
|
Our secured mortgage loan was collateralized by real estate assets with an undepreciated book value of $147.1 million at December 31, 2019. We paid down $1.9 million of secured loan balances through principal amortization during 2019.
|
(2)
|
Net of unamortized original issuance discount of $0.6 million and $1.1 million as of December 31, 2019 and 2018, respectively.
|
(3)
|
Net of unamortized original issuance discount of $0.8 million and $1.1 million as of December 31, 2019 and 2018, respectively.
|
(4)
|
Net of unamortized original issuance discount of $2.9 million and $3.3 million as of December 31, 2019 and 2018, respectively.
|
(5)
|
Net of unamortized original issuance discount of $3.4 million and $3.8 million as of December 31, 2019 and 2018, respectively.
|
(6)
|
Net of unamortized original issuance discount of $0.9 million as of December 31, 2019.
|
(7)
|
Net of unamortized original issuance discount of $1.0 million as of December 31, 2019.
|
(8)
|
This debt was repaid in 2019.
|
(9)
|
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 through January 2022. Accordingly, the equivalent fixed rate of this amount is 2.79%. The interest rate on the remaining $50.0 million was 2.81% at December 31, 2019.
|
(10)
|
The interest rate was 2.90% at December 31, 2019.
|
(11)
|
The interest rate was 2.73% at December 31, 2019.
|
Years Ending December 31,
|
|
Principal Amount
|
||
2020
|
|
$
|
248
|
|
2021
|
|
300,560
|
|
|
2022
|
|
521,842
|
|
|
2023
|
|
251,180
|
|
|
2024
|
|
1,281
|
|
|
Thereafter
|
|
1,481,617
|
|
|
Less-unamortized debt issuance costs
|
|
(13,018
|
)
|
|
|
|
$
|
2,543,710
|
|
•
|
available cash and cash equivalents;
|
•
|
cash flows from operating activities;
|
•
|
issuance of debt securities by the Operating Partnership;
|
•
|
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
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Derivatives:
|
|
|
|
||||
Derivatives designated as cash flow hedges in prepaid expenses and other assets:
|
|
|
|
||||
Interest rate swaps
|
$
|
—
|
|
|
$
|
1,146
|
|
Derivatives designated as cash flow hedges in accounts payable, accrued expenses and other liabilities:
|
|
|
|
||||
Interest rate swaps
|
$
|
154
|
|
|
$
|
3,581
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Derivatives Designated as Cash Flow Hedges:
|
|
|
|
|
|
||||||
Amount of unrealized gains/(losses) recognized in accumulated other comprehensive income/(loss) on derivatives:
|
|
|
|
|
|
||||||
Interest rate swaps
|
$
|
(9,134
|
)
|
|
$
|
4,161
|
|
|
$
|
1,732
|
|
Amount of (gains)/losses reclassified out of accumulated other comprehensive income/(loss) into interest expense:
|
|
|
|
|
|
||||||
Interest rate swaps
|
$
|
(1,250
|
)
|
|
$
|
(2,086
|
)
|
|
$
|
1,157
|
|
8.
|
Commitments and Contingencies
|
9.
|
Noncontrolling Interests
|
|
Year Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
Beginning noncontrolling interests in the Operating Partnership
|
$
|
105,960
|
|
|
$
|
144,009
|
|
Adjustment of noncontrolling interests in the Operating Partnership to fair value
|
29,557
|
|
|
(33,427
|
)
|
||
Conversions of Common Units to Common Stock
|
(663
|
)
|
|
(4,043
|
)
|
||
Net income attributable to noncontrolling interests in the Operating Partnership
|
3,551
|
|
|
4,588
|
|
||
Distributions to noncontrolling interests in the Operating Partnership
|
(5,189
|
)
|
|
(5,167
|
)
|
||
Total noncontrolling interests in the Operating Partnership
|
$
|
133,216
|
|
|
$
|
105,960
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Net income available for common stockholders
|
$
|
134,430
|
|
|
$
|
169,343
|
|
|
$
|
182,873
|
|
Increase in additional paid in capital from conversions of Common Units to Common Stock
|
663
|
|
|
4,043
|
|
|
511
|
|
|||
Change from net income available for common stockholders and transfers from noncontrolling interests
|
$
|
135,093
|
|
|
$
|
173,386
|
|
|
$
|
183,384
|
|
10.
|
Disclosure About Fair Value of Financial Instruments
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
Total
|
|
Quoted Prices
in Active
Markets for Identical Assets or Liabilities
|
|
Significant Observable Inputs
|
|
Significant Unobservable Inputs
|
||||||||
Fair Value at December 31, 2019:
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Mortgages and notes receivable, at fair value (1)
|
$
|
1,501
|
|
|
$
|
—
|
|
|
$
|
1,501
|
|
|
$
|
—
|
|
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
|
2,345
|
|
|
2,345
|
|
|
—
|
|
|
—
|
|
||||
Total Assets
|
$
|
3,846
|
|
|
$
|
2,345
|
|
|
$
|
1,501
|
|
|
$
|
—
|
|
Noncontrolling Interests in the Operating Partnership
|
$
|
133,216
|
|
|
$
|
133,216
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Mortgages and notes payable, net, at fair value (1)
|
$
|
2,615,776
|
|
|
$
|
—
|
|
|
$
|
2,615,776
|
|
|
$
|
—
|
|
Interest rate swaps (in accounts payable, accrued expenses and other liabilities)
|
154
|
|
|
—
|
|
|
154
|
|
|
—
|
|
||||
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
|
2,345
|
|
|
2,345
|
|
|
—
|
|
|
—
|
|
||||
Total Liabilities
|
$
|
2,618,275
|
|
|
$
|
2,345
|
|
|
$
|
2,615,930
|
|
|
$
|
—
|
|
Fair Value at December 31, 2018:
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Mortgages and notes receivable, at fair value (1)
|
$
|
5,599
|
|
|
$
|
—
|
|
|
$
|
5,599
|
|
|
$
|
—
|
|
Interest rate swaps (in prepaid expenses and other assets)
|
1,146
|
|
|
—
|
|
|
1,146
|
|
|
—
|
|
||||
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
|
1,849
|
|
|
1,849
|
|
|
—
|
|
|
—
|
|
||||
Impaired real estate assets
|
10,252
|
|
|
—
|
|
|
—
|
|
|
10,252
|
|
||||
Total Assets
|
$
|
18,846
|
|
|
$
|
1,849
|
|
|
$
|
6,745
|
|
|
$
|
10,252
|
|
Noncontrolling Interests in the Operating Partnership
|
$
|
105,960
|
|
|
$
|
105,960
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Mortgages and notes payable, net, at fair value (1)
|
$
|
2,056,248
|
|
|
$
|
—
|
|
|
$
|
2,056,248
|
|
|
$
|
—
|
|
Interest rate swaps (in accounts payable, accrued expenses and other liabilities)
|
3,581
|
|
|
—
|
|
|
3,581
|
|
|
—
|
|
||||
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
|
1,849
|
|
|
1,849
|
|
|
—
|
|
|
—
|
|
||||
Total Liabilities
|
$
|
2,061,678
|
|
|
$
|
1,849
|
|
|
$
|
2,059,829
|
|
|
$
|
—
|
|
11.
|
Equity
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Ordinary dividend
|
$
|
1.64
|
|
|
$
|
1.48
|
|
|
$
|
1.50
|
|
Capital gains
|
0.13
|
|
|
0.31
|
|
|
0.32
|
|
|||
Return of capital
|
0.13
|
|
|
0.06
|
|
|
—
|
|
|||
Total
|
$
|
1.90
|
|
|
$
|
1.85
|
|
|
$
|
1.82
|
|
|
|
Issue Date
|
|
Number of Shares Outstanding
|
|
Carrying Value
|
|
Liquidation Preference Per Share
|
|
Optional Redemption Date
|
|
Annual Dividends Payable Per Share
|
|||||||
|
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
8.625% Series A Cumulative Redeemable
|
|
2/12/1997
|
|
29
|
|
|
$
|
28,859
|
|
|
$
|
1,000
|
|
|
2/12/2027
|
|
$
|
86.25
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
8.625% Series A Cumulative Redeemable
|
|
2/12/1997
|
|
29
|
|
|
$
|
28,877
|
|
|
$
|
1,000
|
|
|
2/12/2027
|
|
$
|
86.25
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
8.625% Series A Cumulative Redeemable:
|
|
|
|
|
|
||||||
Ordinary dividend
|
$
|
79.90
|
|
|
$
|
71.22
|
|
|
$
|
71.00
|
|
Capital gains
|
6.35
|
|
|
15.03
|
|
|
15.25
|
|
|||
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, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
8.625% Series A Cumulative Redeemable
|
|
2/12/1997
|
|
29
|
|
|
$
|
28,859
|
|
|
$
|
1,000
|
|
|
2/12/2027
|
|
$
|
86.25
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
8.625% Series A Cumulative Redeemable
|
|
2/12/1997
|
|
29
|
|
|
$
|
28,877
|
|
|
$
|
1,000
|
|
|
2/12/2027
|
|
$
|
86.25
|
|
12.
|
Employee Benefit Plans
|
|
December 31,
|
||||
|
2019
|
|
2018
|
||
Outstanding stock options and warrants
|
599,902
|
|
|
611,518
|
|
Possible future issuance under equity incentive plans
|
2,016,659
|
|
|
2,188,696
|
|
|
2,616,561
|
|
|
2,800,214
|
|
|
|
2017
|
|
Risk free interest rate (1)
|
|
2.0
|
%
|
Common stock dividend yield (2)
|
|
3.4
|
%
|
Expected volatility (3)
|
|
19.5
|
%
|
Average expected option life (years) (4)
|
|
5.75
|
|
(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, 2016
|
587,115
|
|
|
$
|
42.26
|
|
Granted
|
168,748
|
|
|
52.49
|
|
|
Exercised
|
(115,041
|
)
|
|
40.41
|
|
|
Stock options outstanding at December 31, 2017
|
640,822
|
|
|
45.29
|
|
|
Exercised
|
(44,304
|
)
|
|
40.15
|
|
|
Stock options outstanding at December 31, 2018
|
596,518
|
|
|
45.67
|
|
|
Exercised
|
(9,026
|
)
|
|
39.53
|
|
|
Forfeited
|
(2,590
|
)
|
|
48.79
|
|
|
Stock options outstanding at December 31, 2019 (1) (2)
|
584,902
|
|
|
$
|
45.75
|
|
(1)
|
The outstanding options at December 31, 2019 had a weighted average remaining life of 5.8 years.
|
(2)
|
The Company had 443,783 options exercisable at December 31, 2019 with a weighted average exercise price of $44.78, weighted average remaining life of 5.6 years and intrinsic value of $2.1 million. Of these exercisable options, 84,374 had exercise prices higher than the market price of our Common Stock at December 31, 2019.
|
|
Number of Shares
|
|
Weighted Average Grant Date Fair Value
|
|||
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
|
|
|
Awarded and issued (1)
|
94,984
|
|
|
43.01
|
|
|
Vested (2)
|
(73,307
|
)
|
|
44.19
|
|
|
Forfeited
|
(2,684
|
)
|
|
45.89
|
|
|
Restricted shares outstanding at December 31, 2018
|
191,239
|
|
|
45.62
|
|
|
Awarded and issued (1)
|
103,590
|
|
|
45.98
|
|
|
Vested (2)
|
(73,036
|
)
|
|
45.79
|
|
|
Forfeited
|
(3,642
|
)
|
|
46.07
|
|
|
Restricted shares outstanding at December 31, 2019
|
218,151
|
|
|
$
|
45.73
|
|
(1)
|
The weighted average fair value at grant date of time-based restricted stock issued during the years ended December 31, 2019, 2018 and 2017 was $4.8 million, $4.1 million and $3.2 million, respectively.
|
(2)
|
The vesting date fair value of time-based restricted stock that vested during the years ended December 31, 2019, 2018 and 2017 was $3.3 million, $3.2 million and $4.1 million, respectively. Vested shares include those shares surrendered by employees to satisfy tax withholding obligations in connection with such vesting.
|
|
2019
|
|
2018
|
|
2017
|
|||
Risk free interest rate (1)
|
2.4
|
%
|
|
2.3
|
%
|
|
1.6
|
%
|
Common stock dividend yield (2)
|
4.4
|
%
|
|
3.9
|
%
|
|
3.5
|
%
|
Expected volatility (3)
|
27.3
|
%
|
|
41.1
|
%
|
|
42.8
|
%
|
(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, 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
|
|
|
Awarded and issued (1)
|
77,456
|
|
|
40.81
|
|
|
Vested (2)
|
(41,160
|
)
|
|
45.61
|
|
|
Forfeited (4)
|
(16,926
|
)
|
|
45.24
|
|
|
Restricted shares outstanding at December 31, 2018
|
180,094
|
|
|
43.34
|
|
|
Awarded and issued (1)
|
87,344
|
|
|
39.42
|
|
|
Vested (2)
|
(45,901
|
)
|
|
43.68
|
|
|
Forfeited (4)
|
(12,689
|
)
|
|
43.58
|
|
|
Restricted shares outstanding at December 31, 2019
|
208,848
|
|
|
$
|
42.22
|
|
(1)
|
The fair value at grant date of total return-based restricted stock issued during the years ended December 31, 2019, 2018 and 2017 was $3.4 million, $3.2 million and $2.4 million, respectively, at target.
|
(2)
|
The vesting date fair value of total return-based restricted stock that vested during the years ended December 31, 2019, 2018 and 2017 was $2.1 million, $1.8 million and $5.6 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 amount includes 34,669 additional shares that were issued at the end of the applicable measurement period because actual performance exceeded certain levels of performance.
|
(4)
|
The 2019 and 2018 amounts include 9,521 and 13,707 shares, respectively, that were forfeited at the end of the applicable measurement period because the applicable total return did not meet the target level.
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Beginning deferred compensation liability
|
$
|
1,849
|
|
|
$
|
2,388
|
|
|
$
|
2,451
|
|
Mark-to-market adjustment to deferred compensation (in general and administrative expenses)
|
496
|
|
|
(182
|
)
|
|
492
|
|
|||
Distributions from deferred compensation plans
|
—
|
|
|
(357
|
)
|
|
(555
|
)
|
|||
Total deferred compensation liability
|
$
|
2,345
|
|
|
$
|
1,849
|
|
|
$
|
2,388
|
|
13.
|
Accumulated Other Comprehensive Income/(Loss)
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Cash flow hedges:
|
|
|
|
||||
Beginning balance
|
$
|
9,913
|
|
|
$
|
7,838
|
|
Unrealized gains/(losses) on cash flow hedges
|
(9,134
|
)
|
|
4,161
|
|
||
Amortization of cash flow hedges (1)
|
(1,250
|
)
|
|
(2,086
|
)
|
||
Total accumulated other comprehensive income/(loss)
|
$
|
(471
|
)
|
|
$
|
9,913
|
|
(1)
|
Amounts reclassified out of accumulated other comprehensive income/(loss) into interest expense.
|
14.
|
Real Estate and Other Assets Held For Sale
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Assets:
|
|
|
|
||||
Land
|
$
|
4,815
|
|
|
$
|
—
|
|
Buildings and tenant improvements
|
29,581
|
|
|
—
|
|
||
Less-accumulated depreciation
|
(16,775
|
)
|
|
—
|
|
||
Net real estate assets
|
17,621
|
|
|
—
|
|
||
Accrued straight-line rents receivable
|
2,073
|
|
|
—
|
|
||
Deferred leasing costs, net
|
1,096
|
|
|
—
|
|
||
Real estate and other assets, net, held for sale
|
$
|
20,790
|
|
|
$
|
—
|
|
15.
|
Earnings Per Share and Per Unit
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Earnings per Common Share - basic:
|
|
|
|
|
|
||||||
Numerator:
|
|
|
|
|
|
||||||
Net income
|
$
|
141,683
|
|
|
$
|
177,630
|
|
|
$
|
191,663
|
|
Net (income) attributable to noncontrolling interests in the Operating Partnership
|
(3,551
|
)
|
|
(4,588
|
)
|
|
(5,059
|
)
|
|||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
(1,214
|
)
|
|
(1,207
|
)
|
|
(1,239
|
)
|
|||
Dividends on Preferred Stock
|
(2,488
|
)
|
|
(2,492
|
)
|
|
(2,492
|
)
|
|||
Net income available for common stockholders
|
$
|
134,430
|
|
|
$
|
169,343
|
|
|
$
|
182,873
|
|
Denominator:
|
|
|
|
|
|
||||||
Denominator for basic earnings per Common Share – weighted average shares (1)
|
103,692
|
|
|
103,439
|
|
|
102,682
|
|
|||
Net income available for common stockholders
|
$
|
1.30
|
|
|
$
|
1.64
|
|
|
$
|
1.78
|
|
Earnings per Common Share - diluted:
|
|
|
|
|
|
||||||
Numerator:
|
|
|
|
|
|
||||||
Net income
|
$
|
141,683
|
|
|
$
|
177,630
|
|
|
$
|
191,663
|
|
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
(1,214
|
)
|
|
(1,207
|
)
|
|
(1,239
|
)
|
|||
Dividends on Preferred Stock
|
(2,488
|
)
|
|
(2,492
|
)
|
|
(2,492
|
)
|
|||
Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
|
$
|
137,981
|
|
|
$
|
173,931
|
|
|
$
|
187,932
|
|
Denominator:
|
|
|
|
|
|
||||||
Denominator for basic earnings per Common Share – weighted average shares (1)
|
103,692
|
|
|
103,439
|
|
|
102,682
|
|
|||
Add:
|
|
|
|
|
|
||||||
Stock options using the treasury method
|
22
|
|
|
33
|
|
|
79
|
|
|||
Noncontrolling interests Common Units
|
2,731
|
|
|
2,796
|
|
|
2,833
|
|
|||
Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions
|
106,445
|
|
|
106,268
|
|
|
105,594
|
|
|||
Net income available for common stockholders
|
$
|
1.30
|
|
|
$
|
1.64
|
|
|
$
|
1.78
|
|
(1)
|
Includes all unvested restricted stock where dividends on such restricted stock are non-forfeitable.
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Earnings per Common Unit - basic:
|
|
|
|
|
|
||||||
Numerator:
|
|
|
|
|
|
||||||
Net income
|
$
|
141,683
|
|
|
$
|
177,630
|
|
|
$
|
191,663
|
|
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
(1,214
|
)
|
|
(1,207
|
)
|
|
(1,239
|
)
|
|||
Distributions on Preferred Units
|
(2,488
|
)
|
|
(2,492
|
)
|
|
(2,492
|
)
|
|||
Net income available for common unitholders
|
$
|
137,981
|
|
|
$
|
173,931
|
|
|
$
|
187,932
|
|
Denominator:
|
|
|
|
|
|
||||||
Denominator for basic earnings per Common Unit – weighted average units (1)
|
106,014
|
|
|
105,826
|
|
|
105,106
|
|
|||
Net income available for common unitholders
|
$
|
1.30
|
|
|
$
|
1.64
|
|
|
$
|
1.79
|
|
Earnings per Common Unit - diluted:
|
|
|
|
|
|
||||||
Numerator:
|
|
|
|
|
|
||||||
Net income
|
$
|
141,683
|
|
|
$
|
177,630
|
|
|
$
|
191,663
|
|
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
(1,214
|
)
|
|
(1,207
|
)
|
|
(1,239
|
)
|
|||
Distributions on Preferred Units
|
(2,488
|
)
|
|
(2,492
|
)
|
|
(2,492
|
)
|
|||
Net income available for common unitholders
|
$
|
137,981
|
|
|
$
|
173,931
|
|
|
$
|
187,932
|
|
Denominator:
|
|
|
|
|
|
||||||
Denominator for basic earnings per Common Unit – weighted average units (1)
|
106,014
|
|
|
105,826
|
|
|
105,106
|
|
|||
Add:
|
|
|
|
|
|
||||||
Stock options using the treasury method
|
22
|
|
|
33
|
|
|
79
|
|
|||
Denominator for diluted earnings per Common Unit – adjusted weighted average units and assumed conversions
|
106,036
|
|
|
105,859
|
|
|
105,185
|
|
|||
Net income available for common unitholders
|
$
|
1.30
|
|
|
$
|
1.64
|
|
|
$
|
1.79
|
|
(1)
|
Includes all unvested restricted stock where distributions on such restricted stock are non-forfeitable.
|
16.
|
Income Taxes
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Current tax expense/(benefit):
|
|
|
|
|
|
||||||
Federal
|
$
|
202
|
|
|
$
|
133
|
|
|
$
|
(177
|
)
|
State
|
148
|
|
|
112
|
|
|
105
|
|
|||
|
350
|
|
|
245
|
|
|
(72
|
)
|
|||
Deferred tax expense/(benefit):
|
|
|
|
|
|
||||||
Federal
|
14
|
|
|
(95
|
)
|
|
223
|
|
|||
State
|
(120
|
)
|
|
(68
|
)
|
|
(9
|
)
|
|||
|
(106
|
)
|
|
(163
|
)
|
|
214
|
|
|||
Total income tax expense
|
$
|
244
|
|
|
$
|
82
|
|
|
$
|
142
|
|
17.
|
Segment Information
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Rental and Other Revenues:
|
|
|
|
|
|
||||||
Office:
|
|
|
|
|
|
||||||
Atlanta
|
$
|
151,279
|
|
|
$
|
141,337
|
|
|
$
|
140,323
|
|
Charlotte
|
4,650
|
|
|
—
|
|
|
—
|
|
|||
Greensboro
|
22,154
|
|
|
22,322
|
|
|
21,453
|
|
|||
Memphis
|
39,494
|
|
|
40,230
|
|
|
45,430
|
|
|||
Nashville
|
133,867
|
|
|
121,836
|
|
|
111,506
|
|
|||
Orlando
|
52,679
|
|
|
53,771
|
|
|
51,236
|
|
|||
Pittsburgh
|
60,755
|
|
|
61,177
|
|
|
59,103
|
|
|||
Raleigh
|
122,173
|
|
|
118,352
|
|
|
119,254
|
|
|||
Richmond
|
49,428
|
|
|
45,729
|
|
|
43,959
|
|
|||
Tampa
|
86,431
|
|
|
102,404
|
|
|
97,524
|
|
|||
Total Office Segment
|
722,910
|
|
|
707,158
|
|
|
689,788
|
|
|||
Other
|
13,069
|
|
|
12,877
|
|
|
12,949
|
|
|||
Total Rental and Other Revenues
|
$
|
735,979
|
|
|
$
|
720,035
|
|
|
$
|
702,737
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Net Operating Income:
|
|
|
|
|
|
||||||
Office:
|
|
|
|
|
|
||||||
Atlanta
|
$
|
97,019
|
|
|
$
|
87,503
|
|
|
$
|
89,575
|
|
Charlotte
|
3,791
|
|
|
—
|
|
|
—
|
|
|||
Greensboro
|
14,183
|
|
|
14,275
|
|
|
13,612
|
|
|||
Memphis
|
24,790
|
|
|
25,659
|
|
|
28,128
|
|
|||
Nashville
|
97,386
|
|
|
88,554
|
|
|
81,204
|
|
|||
Orlando
|
32,062
|
|
|
32,841
|
|
|
30,526
|
|
|||
Pittsburgh
|
36,249
|
|
|
36,233
|
|
|
34,784
|
|
|||
Raleigh
|
88,402
|
|
|
86,053
|
|
|
86,475
|
|
|||
Richmond
|
33,756
|
|
|
31,276
|
|
|
29,946
|
|
|||
Tampa
|
50,339
|
|
|
65,819
|
|
|
62,378
|
|
|||
Total Office Segment
|
477,977
|
|
|
468,213
|
|
|
456,628
|
|
|||
Other
|
9,491
|
|
|
9,407
|
|
|
9,221
|
|
|||
Total Net Operating Income
|
487,468
|
|
|
477,620
|
|
|
465,849
|
|
|||
Reconciliation to net income:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
(254,504
|
)
|
|
(229,955
|
)
|
|
(227,832
|
)
|
|||
Impairments of real estate assets
|
(5,849
|
)
|
|
(423
|
)
|
|
(1,445
|
)
|
|||
General and administrative expenses
|
(44,067
|
)
|
|
(40,006
|
)
|
|
(39,648
|
)
|
|||
Interest expense
|
(81,648
|
)
|
|
(71,422
|
)
|
|
(69,105
|
)
|
|||
Other income/(loss)
|
(2,510
|
)
|
|
1,940
|
|
|
2,283
|
|
|||
Gains on disposition of property
|
39,517
|
|
|
37,638
|
|
|
54,157
|
|
|||
Equity in earnings of unconsolidated affiliates
|
3,276
|
|
|
2,238
|
|
|
7,404
|
|
|||
Net income
|
$
|
141,683
|
|
|
$
|
177,630
|
|
|
$
|
191,663
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Total Assets:
|
|
|
|
||||
Office:
|
|
|
|
||||
Atlanta
|
$
|
1,040,869
|
|
|
$
|
1,047,850
|
|
Charlotte
|
425,045
|
|
|
—
|
|
||
Greensboro
|
114,030
|
|
|
118,611
|
|
||
Memphis
|
148,832
|
|
|
213,276
|
|
||
Nashville
|
1,045,125
|
|
|
937,732
|
|
||
Orlando
|
289,743
|
|
|
306,370
|
|
||
Pittsburgh
|
323,792
|
|
|
329,918
|
|
||
Raleigh
|
830,128
|
|
|
792,464
|
|
||
Richmond
|
246,546
|
|
|
248,669
|
|
||
Tampa
|
521,620
|
|
|
522,263
|
|
||
Total Office Segment
|
4,985,730
|
|
|
4,517,153
|
|
||
Other
|
152,514
|
|
|
157,856
|
|
||
Total Assets
|
$
|
5,138,244
|
|
|
$
|
4,675,009
|
|
18.
|
Quarterly Financial Data (Unaudited)
|
|
Year Ended December 31, 2019
|
||||||||||||||||||
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Total
|
||||||||||
Rental and other revenues
|
$
|
172,363
|
|
|
$
|
184,070
|
|
|
$
|
187,475
|
|
|
$
|
192,071
|
|
|
$
|
735,979
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
8,386
|
|
|
41,394
|
|
|
29,557
|
|
|
62,346
|
|
|
141,683
|
|
|||||
Net (income) attributable to noncontrolling interests in the Operating Partnership
|
(193
|
)
|
|
(1,044
|
)
|
|
(737
|
)
|
|
(1,577
|
)
|
|
(3,551
|
)
|
|||||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
(316
|
)
|
|
(306
|
)
|
|
(297
|
)
|
|
(295
|
)
|
|
(1,214
|
)
|
|||||
Dividends on Preferred Stock
|
(622
|
)
|
|
(622
|
)
|
|
(622
|
)
|
|
(622
|
)
|
|
(2,488
|
)
|
|||||
Net income available for common stockholders
|
$
|
7,255
|
|
|
$
|
39,422
|
|
|
$
|
27,901
|
|
|
$
|
59,852
|
|
|
$
|
134,430
|
|
Earnings per Common Share – basic:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income available for common stockholders
|
$
|
0.07
|
|
|
$
|
0.38
|
|
|
$
|
0.27
|
|
|
$
|
0.58
|
|
|
$
|
1.30
|
|
Earnings per Common Share – diluted:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income available for common stockholders
|
$
|
0.07
|
|
|
$
|
0.38
|
|
|
$
|
0.27
|
|
|
$
|
0.58
|
|
|
$
|
1.30
|
|
|
Year Ended December 31, 2018
|
||||||||||||||||||
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Total
|
||||||||||
Rental and other revenues
|
$
|
180,438
|
|
|
$
|
178,792
|
|
|
$
|
179,417
|
|
|
$
|
181,388
|
|
|
$
|
720,035
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
34,246
|
|
|
52,998
|
|
|
35,009
|
|
|
55,377
|
|
|
177,630
|
|
|||||
Net (income) attributable to noncontrolling interests in the Operating Partnership
|
(888
|
)
|
|
(1,381
|
)
|
|
(902
|
)
|
|
(1,417
|
)
|
|
(4,588
|
)
|
|||||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
(286
|
)
|
|
(308
|
)
|
|
(324
|
)
|
|
(289
|
)
|
|
(1,207
|
)
|
|||||
Dividends on Preferred Stock
|
(623
|
)
|
|
(623
|
)
|
|
(623
|
)
|
|
(623
|
)
|
|
(2,492
|
)
|
|||||
Net income available for common stockholders
|
$
|
32,449
|
|
|
$
|
50,686
|
|
|
$
|
33,160
|
|
|
$
|
53,048
|
|
|
$
|
169,343
|
|
Earnings per Common Share – basic:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income available for common stockholders
|
$
|
0.31
|
|
|
$
|
0.49
|
|
|
$
|
0.32
|
|
|
$
|
0.51
|
|
|
$
|
1.64
|
|
Earnings per Common Share – diluted:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income available for common stockholders
|
$
|
0.31
|
|
|
$
|
0.49
|
|
|
$
|
0.32
|
|
|
$
|
0.51
|
|
|
$
|
1.64
|
|
|
Year Ended December 31, 2019
|
||||||||||||||||||
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Total
|
||||||||||
Rental and other revenues
|
$
|
172,363
|
|
|
$
|
184,070
|
|
|
$
|
187,475
|
|
|
$
|
192,071
|
|
|
$
|
735,979
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
8,386
|
|
|
41,394
|
|
|
29,557
|
|
|
62,346
|
|
|
141,683
|
|
|||||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
(316
|
)
|
|
(306
|
)
|
|
(297
|
)
|
|
(295
|
)
|
|
(1,214
|
)
|
|||||
Distributions on Preferred Units
|
(622
|
)
|
|
(622
|
)
|
|
(622
|
)
|
|
(622
|
)
|
|
(2,488
|
)
|
|||||
Net income available for common unitholders
|
$
|
7,448
|
|
|
$
|
40,466
|
|
|
$
|
28,638
|
|
|
$
|
61,429
|
|
|
$
|
137,981
|
|
Earnings per Common Unit – basic:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income available for common unitholders
|
$
|
0.07
|
|
|
$
|
0.38
|
|
|
$
|
0.27
|
|
|
$
|
0.58
|
|
|
$
|
1.30
|
|
Earnings per Common Unit – diluted:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income available for common unitholders
|
$
|
0.07
|
|
|
$
|
0.38
|
|
|
$
|
0.27
|
|
|
$
|
0.58
|
|
|
$
|
1.30
|
|
|
Year Ended December 31, 2018
|
||||||||||||||||||
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Total
|
||||||||||
Rental and other revenues
|
$
|
180,438
|
|
|
$
|
178,792
|
|
|
$
|
179,417
|
|
|
$
|
181,388
|
|
|
$
|
720,035
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
34,246
|
|
|
52,998
|
|
|
35,009
|
|
|
55,377
|
|
|
177,630
|
|
|||||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
(286
|
)
|
|
(308
|
)
|
|
(324
|
)
|
|
(289
|
)
|
|
(1,207
|
)
|
|||||
Distributions on Preferred Units
|
(623
|
)
|
|
(623
|
)
|
|
(623
|
)
|
|
(623
|
)
|
|
(2,492
|
)
|
|||||
Net income available for common unitholders
|
$
|
33,337
|
|
|
$
|
52,067
|
|
|
$
|
34,062
|
|
|
$
|
54,465
|
|
|
$
|
173,931
|
|
Earnings per Common Unit – basic:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income available for common unitholders
|
$
|
0.32
|
|
|
$
|
0.49
|
|
|
$
|
0.32
|
|
|
$
|
0.51
|
|
|
$
|
1.64
|
|
Earnings per Common Unit – diluted:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income available for common unitholders
|
$
|
0.32
|
|
|
$
|
0.49
|
|
|
$
|
0.32
|
|
|
$
|
0.51
|
|
|
$
|
1.64
|
|
19.
|
Subsequent Events
|
|
December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Real estate assets:
|
|
|
|
|
|
||||||
Beginning balance
|
$
|
5,296,551
|
|
|
$
|
5,173,754
|
|
|
$
|
4,865,103
|
|
Additions:
|
|
|
|
|
|
||||||
Acquisitions, development and improvements
|
677,842
|
|
|
274,863
|
|
|
486,755
|
|
|||
Cost of real estate sold and retired
|
(197,589
|
)
|
|
(152,066
|
)
|
|
(178,104
|
)
|
|||
Ending balance (a)
|
$
|
5,776,804
|
|
|
$
|
5,296,551
|
|
|
$
|
5,173,754
|
|
Accumulated depreciation:
|
|
|
|
|
|
||||||
Beginning balance
|
$
|
1,296,562
|
|
|
$
|
1,211,728
|
|
|
$
|
1,134,103
|
|
Depreciation expense
|
214,682
|
|
|
191,035
|
|
|
184,385
|
|
|||
Real estate sold and retired
|
(105,903
|
)
|
|
(106,201
|
)
|
|
(106,760
|
)
|
|||
Ending balance (b)
|
$
|
1,405,341
|
|
|
$
|
1,296,562
|
|
|
$
|
1,211,728
|
|
(a)
|
Reconciliation of total real estate assets to balance sheet caption:
|
|
2019
|
|
2018
|
|
2017
|
||||||
Total per Schedule III
|
$
|
5,776,804
|
|
|
$
|
5,296,551
|
|
|
$
|
5,173,754
|
|
Development in-process exclusive of land included in Schedule III
|
172,706
|
|
|
165,537
|
|
|
88,452
|
|
|||
Real estate assets, net, held for sale
|
(34,396
|
)
|
|
—
|
|
|
(22,543
|
)
|
|||
Total real estate assets
|
$
|
5,915,114
|
|
|
$
|
5,462,088
|
|
|
$
|
5,239,663
|
|
(b)
|
Reconciliation of total accumulated depreciation to balance sheet caption:
|
|
2019
|
|
2018
|
|
2017
|
||||||
Total per Schedule III
|
$
|
1,405,341
|
|
|
$
|
1,296,562
|
|
|
$
|
1,211,728
|
|
Real estate assets, net, held for sale
|
(16,775
|
)
|
|
—
|
|
|
(9,304
|
)
|
|||
Total accumulated depreciation
|
$
|
1,388,566
|
|
|
$
|
1,296,562
|
|
|
$
|
1,202,424
|
|
|
|||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
Initial Costs
|
|
Costs Capitalized
Subsequent to
Acquisition
|
|
Gross Value at Close of Period
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Description
|
|
Property
Type
|
|
2019
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
|
|
|
$
|
1,452
|
|
|
$
|
2
|
|
|
$
|
3,934
|
|
|
$
|
3,936
|
|
|
$
|
1,727
|
|
|
1983
|
|
5-40 yrs.
|
|
1800 Century Boulevard
|
|
Office
|
|
|
|
1,444
|
|
|
29,081
|
|
|
—
|
|
|
10,645
|
|
|
1,444
|
|
|
39,726
|
|
|
41,170
|
|
|
22,558
|
|
|
1975
|
|
5-40 yrs.
|
|||||||||
1825 Century Boulevard
|
|
Office
|
|
|
|
864
|
|
|
—
|
|
|
303
|
|
|
15,089
|
|
|
1,167
|
|
|
15,089
|
|
|
16,256
|
|
|
6,255
|
|
|
2002
|
|
5-40 yrs.
|
|||||||||
1875 Century Boulevard
|
|
Office
|
|
|
|
—
|
|
|
8,924
|
|
|
—
|
|
|
8,281
|
|
|
—
|
|
|
17,205
|
|
|
17,205
|
|
|
7,779
|
|
|
1976
|
|
5-40 yrs.
|
|||||||||
1900 Century Boulevard
|
|
Office
|
|
|
|
—
|
|
|
4,744
|
|
|
—
|
|
|
710
|
|
|
—
|
|
|
5,454
|
|
|
5,454
|
|
|
5,111
|
|
|
1971
|
|
5-40 yrs.
|
|||||||||
2200 Century Parkway
|
|
Office
|
|
|
|
—
|
|
|
14,432
|
|
|
—
|
|
|
9,043
|
|
|
—
|
|
|
23,475
|
|
|
23,475
|
|
|
11,282
|
|
|
1971
|
|
5-40 yrs.
|
|||||||||
2400 Century Parkway
|
|
Office
|
|
|
|
—
|
|
|
—
|
|
|
406
|
|
|
14,779
|
|
|
406
|
|
|
14,779
|
|
|
15,185
|
|
|
7,111
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
2500 Century Parkway
|
|
Office
|
|
|
|
—
|
|
|
—
|
|
|
328
|
|
|
12,629
|
|
|
328
|
|
|
12,629
|
|
|
12,957
|
|
|
4,149
|
|
|
2005
|
|
5-40 yrs.
|
|||||||||
2500/2635 Parking Garage
|
|
Office
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,446
|
|
|
—
|
|
|
6,446
|
|
|
6,446
|
|
|
2,254
|
|
|
2005
|
|
5-40 yrs.
|
|||||||||
2600 Century Parkway
|
|
Office
|
|
|
|
—
|
|
|
10,679
|
|
|
—
|
|
|
4,603
|
|
|
—
|
|
|
15,282
|
|
|
15,282
|
|
|
7,823
|
|
|
1973
|
|
5-40 yrs.
|
|||||||||
2635 Century Parkway
|
|
Office
|
|
|
|
—
|
|
|
21,643
|
|
|
—
|
|
|
19,336
|
|
|
—
|
|
|
40,979
|
|
|
40,979
|
|
|
15,880
|
|
|
1980
|
|
5-40 yrs.
|
|||||||||
2800 Century Parkway
|
|
Office
|
|
|
|
—
|
|
|
20,449
|
|
|
—
|
|
|
10,417
|
|
|
—
|
|
|
30,866
|
|
|
30,866
|
|
|
16,569
|
|
|
1983
|
|
5-40 yrs.
|
|||||||||
50 Glenlake
|
|
Office
|
|
|
|
2,500
|
|
|
20,006
|
|
|
—
|
|
|
4,150
|
|
|
2,500
|
|
|
24,156
|
|
|
26,656
|
|
|
12,784
|
|
|
1997
|
|
5-40 yrs.
|
|||||||||
Century Plaza I
|
|
Office
|
|
|
|
1,290
|
|
|
8,567
|
|
|
—
|
|
|
4,695
|
|
|
1,290
|
|
|
13,262
|
|
|
14,552
|
|
|
6,329
|
|
|
1981
|
|
5-40 yrs.
|
|||||||||
Century Plaza II
|
|
Office
|
|
|
|
1,380
|
|
|
7,733
|
|
|
—
|
|
|
3,118
|
|
|
1,380
|
|
|
10,851
|
|
|
12,231
|
|
|
5,249
|
|
|
1984
|
|
5-40 yrs.
|
|||||||||
Charles W. Grant Parkway
|
|
Office
|
|
|
|
1,196
|
|
|
—
|
|
|
1,416
|
|
|
12,160
|
|
|
2,612
|
|
|
12,160
|
|
|
14,772
|
|
|
3,269
|
|
|
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
|
|
|
—
|
|
|
19,671
|
|
|
3,342
|
|
|
51,782
|
|
|
55,124
|
|
|
24,343
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
Riverpoint - Land
|
|
Industrial
|
|
|
|
7,250
|
|
|
—
|
|
|
(4,439
|
)
|
|
718
|
|
|
2,811
|
|
|
718
|
|
|
3,529
|
|
|
167
|
|
|
N/A
|
|
5-40 yrs.
|
|||||||||
Riverwood 100
|
|
Office
|
|
|
|
5,785
|
|
|
64,913
|
|
|
(29
|
)
|
|
23,760
|
|
|
5,756
|
|
|
88,673
|
|
|
94,429
|
|
|
20,255
|
|
|
1989
|
|
5-40 yrs.
|
|||||||||
Tradeport - Land
|
|
Industrial
|
|
|
|
5,243
|
|
|
—
|
|
|
(4,819
|
)
|
|
—
|
|
|
424
|
|
|
—
|
|
|
424
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Two Alliance Center
|
|
Office
|
|
|
|
9,579
|
|
|
125,549
|
|
|
—
|
|
|
2,029
|
|
|
9,579
|
|
|
127,578
|
|
|
137,157
|
|
|
32,833
|
|
|
2009
|
|
5-40 yrs.
|
|||||||||
One Alliance Center
|
|
Office
|
|
|
|
14,775
|
|
|
123,071
|
|
|
—
|
|
|
17,076
|
|
|
14,775
|
|
|
140,147
|
|
|
154,922
|
|
|
27,985
|
|
|
2001
|
|
5-40 yrs.
|
|||||||||
10 Glenlake North
|
|
Office
|
|
|
|
5,349
|
|
|
26,334
|
|
|
—
|
|
|
11,692
|
|
|
5,349
|
|
|
38,026
|
|
|
43,375
|
|
|
8,963
|
|
|
2000
|
|
5-40 yrs.
|
|||||||||
10 Glenlake South
|
|
Office
|
|
|
|
5,103
|
|
|
22,811
|
|
|
—
|
|
|
2,883
|
|
|
5,103
|
|
|
25,694
|
|
|
30,797
|
|
|
6,361
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Riverwood 200
|
|
Office
|
|
|
|
4,777
|
|
|
89,708
|
|
|
450
|
|
|
2,772
|
|
|
5,227
|
|
|
92,480
|
|
|
97,707
|
|
|
8,007
|
|
|
2017
|
|
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
|
|
2019
Encumbrance |
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Total
Assets (1)
|
|
Accumulated
Depreciation
|
|
Date of
Construction
|
|
Life on
Which
Depreciation
is
Calculated
|
|||||||||||||||||
Riverwood 300 - Land
|
|
Office
|
|
|
|
400
|
|
|
—
|
|
|
—
|
|
|
710
|
|
|
400
|
|
|
710
|
|
|
1,110
|
|
|
52
|
|
|
N/A
|
|
5-40 yrs.
|
|||||||||
Monarch Tower
|
|
Office
|
|
|
|
22,717
|
|
|
143,068
|
|
|
—
|
|
|
14,742
|
|
|
22,717
|
|
|
157,810
|
|
|
180,527
|
|
|
20,029
|
|
|
1997
|
|
5-40 yrs.
|
|||||||||
Monarch Plaza
|
|
Office
|
|
|
|
27,678
|
|
|
88,962
|
|
|
—
|
|
|
8,945
|
|
|
27,678
|
|
|
97,907
|
|
|
125,585
|
|
|
12,760
|
|
|
1983
|
|
5-40 yrs.
|
|||||||||
Charlotte, NC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Bank of America Tower
|
|
Office
|
|
|
|
—
|
|
|
—
|
|
|
29,273
|
|
|
354,749
|
|
|
29,273
|
|
|
354,749
|
|
|
384,022
|
|
|
1,224
|
|
|
2019
|
|
5-40 yrs.
|
|||||||||
Memphis, TN
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Triad Centre I
|
|
Office
|
|
|
|
2,340
|
|
|
11,385
|
|
|
(849
|
)
|
|
4,713
|
|
|
1,491
|
|
|
16,098
|
|
|
17,589
|
|
|
7,925
|
|
|
1985
|
|
5-40 yrs.
|
|||||||||
Triad Centre II
|
|
Office
|
|
|
|
1,980
|
|
|
8,677
|
|
|
(404
|
)
|
|
5,609
|
|
|
1,576
|
|
|
14,286
|
|
|
15,862
|
|
|
6,925
|
|
|
1987
|
|
5-40 yrs.
|
|||||||||
Centrum
|
|
Office
|
|
|
|
1,013
|
|
|
5,580
|
|
|
—
|
|
|
3,261
|
|
|
1,013
|
|
|
8,841
|
|
|
9,854
|
|
|
4,835
|
|
|
1979
|
|
5-40 yrs.
|
|||||||||
Comcast
|
|
Office
|
|
|
|
946
|
|
|
—
|
|
|
(252
|
)
|
|
4,907
|
|
|
694
|
|
|
4,907
|
|
|
5,601
|
|
|
1,719
|
|
|
2008
|
|
5-40 yrs.
|
|||||||||
International Place II
|
|
Office
|
|
|
|
4,884
|
|
|
27,782
|
|
|
—
|
|
|
7,210
|
|
|
4,884
|
|
|
34,992
|
|
|
39,876
|
|
|
19,039
|
|
|
1988
|
|
5-40 yrs.
|
|||||||||
PennMarc Centre
|
|
Office
|
|
|
|
3,607
|
|
|
10,240
|
|
|
—
|
|
|
4,663
|
|
|
3,607
|
|
|
14,903
|
|
|
18,510
|
|
|
5,632
|
|
|
2008
|
|
5-40 yrs.
|
|||||||||
Colonnade
|
|
Office
|
|
|
|
1,300
|
|
|
6,481
|
|
|
267
|
|
|
2,501
|
|
|
1,567
|
|
|
8,982
|
|
|
10,549
|
|
|
4,546
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
Crescent Center
|
|
Office
|
|
|
|
7,875
|
|
|
32,756
|
|
|
(547
|
)
|
|
13,525
|
|
|
7,328
|
|
|
46,281
|
|
|
53,609
|
|
|
13,266
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
Triad Centre III
|
|
Office
|
|
|
|
1,253
|
|
|
—
|
|
|
—
|
|
|
36,651
|
|
|
1,253
|
|
|
36,651
|
|
|
37,904
|
|
|
10,244
|
|
|
2009
|
|
5-40 yrs.
|
|||||||||
Capital Grille
|
|
Office
|
|
|
|
311
|
|
|
3,258
|
|
|
—
|
|
|
(23
|
)
|
|
311
|
|
|
3,235
|
|
|
3,546
|
|
|
1,553
|
|
|
2014
|
|
5-40 yrs.
|
|||||||||
Seasons 52
|
|
Office
|
|
|
|
320
|
|
|
3,741
|
|
|
—
|
|
|
(39
|
)
|
|
320
|
|
|
3,702
|
|
|
4,022
|
|
|
1,703
|
|
|
2014
|
|
5-40 yrs.
|
|||||||||
Nashville, TN
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
3322 West End
|
|
Office
|
|
|
|
3,025
|
|
|
27,490
|
|
|
—
|
|
|
11,107
|
|
|
3,025
|
|
|
38,597
|
|
|
41,622
|
|
|
17,278
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
3401 West End
|
|
Office
|
|
|
|
5,862
|
|
|
22,917
|
|
|
—
|
|
|
6,680
|
|
|
5,862
|
|
|
29,597
|
|
|
35,459
|
|
|
15,313
|
|
|
1982
|
|
5-40 yrs.
|
|||||||||
5310 Maryland Way
|
|
Office
|
|
|
|
1,863
|
|
|
7,201
|
|
|
—
|
|
|
3,648
|
|
|
1,863
|
|
|
10,849
|
|
|
12,712
|
|
|
6,060
|
|
|
1994
|
|
5-40 yrs.
|
|||||||||
Cool Springs I & II Deck
|
|
Office
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,990
|
|
|
—
|
|
|
3,990
|
|
|
3,990
|
|
|
1,213
|
|
|
2007
|
|
5-40 yrs.
|
|||||||||
Cool Springs III & IV Deck
|
|
Office
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,463
|
|
|
—
|
|
|
4,463
|
|
|
4,463
|
|
|
1,422
|
|
|
2007
|
|
5-40 yrs.
|
|||||||||
Cool Springs I
|
|
Office
|
|
|
|
1,583
|
|
|
—
|
|
|
15
|
|
|
13,341
|
|
|
1,598
|
|
|
13,341
|
|
|
14,939
|
|
|
6,710
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Cool Springs II
|
|
Office
|
|
|
|
1,824
|
|
|
—
|
|
|
346
|
|
|
19,860
|
|
|
2,170
|
|
|
19,860
|
|
|
22,030
|
|
|
9,088
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Cool Springs III
|
|
Office
|
|
|
|
1,631
|
|
|
—
|
|
|
804
|
|
|
15,746
|
|
|
2,435
|
|
|
15,746
|
|
|
18,181
|
|
|
5,194
|
|
|
2006
|
|
5-40 yrs.
|
|||||||||
Cool Springs IV
|
|
Office
|
|
|
|
1,715
|
|
|
—
|
|
|
—
|
|
|
19,331
|
|
|
1,715
|
|
|
19,331
|
|
|
21,046
|
|
|
5,562
|
|
|
2008
|
|
5-40 yrs.
|
|||||||||
Cool Springs V (Healthways)
|
|
Office
|
|
|
|
3,688
|
|
|
—
|
|
|
295
|
|
|
53,000
|
|
|
3,983
|
|
|
53,000
|
|
|
56,983
|
|
|
21,228
|
|
|
2007
|
|
5-40 yrs.
|
|||||||||
Harpeth On The Green II
|
|
Office
|
|
|
|
1,419
|
|
|
5,677
|
|
|
—
|
|
|
2,421
|
|
|
1,419
|
|
|
8,098
|
|
|
9,517
|
|
|
4,237
|
|
|
1984
|
|
5-40 yrs.
|
|||||||||
Harpeth On The Green III
|
|
Office
|
|
|
|
1,660
|
|
|
6,649
|
|
|
—
|
|
|
2,550
|
|
|
1,660
|
|
|
9,199
|
|
|
10,859
|
|
|
5,183
|
|
|
1987
|
|
5-40 yrs.
|
|||||||||
Harpeth On The Green IV
|
|
Office
|
|
|
|
1,713
|
|
|
6,842
|
|
|
—
|
|
|
2,910
|
|
|
1,713
|
|
|
9,752
|
|
|
11,465
|
|
|
5,146
|
|
|
1989
|
|
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
|
|
2019
Encumbrance |
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Total
Assets (1)
|
|
Accumulated
Depreciation
|
|
Date of
Construction
|
|
Life on
Which
Depreciation
is
Calculated
|
|||||||||||||||||
Harpeth On The Green V
|
|
Office
|
|
|
|
662
|
|
|
—
|
|
|
197
|
|
|
4,590
|
|
|
859
|
|
|
4,590
|
|
|
5,449
|
|
|
2,354
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
Hickory Trace
|
|
Office
|
|
|
|
1,164
|
|
|
—
|
|
|
164
|
|
|
5,445
|
|
|
1,328
|
|
|
5,445
|
|
|
6,773
|
|
|
2,214
|
|
|
2001
|
|
5-40 yrs.
|
|||||||||
Highwoods Plaza I
|
|
Office
|
|
|
|
1,552
|
|
|
—
|
|
|
307
|
|
|
9,776
|
|
|
1,859
|
|
|
9,776
|
|
|
11,635
|
|
|
4,535
|
|
|
1996
|
|
5-40 yrs.
|
|||||||||
Highwoods Plaza II
|
|
Office
|
|
|
|
1,448
|
|
|
—
|
|
|
307
|
|
|
9,043
|
|
|
1,755
|
|
|
9,043
|
|
|
10,798
|
|
|
4,582
|
|
|
1997
|
|
5-40 yrs.
|
|||||||||
Seven Springs I
|
|
Office
|
|
|
|
2,076
|
|
|
—
|
|
|
592
|
|
|
12,856
|
|
|
2,668
|
|
|
12,856
|
|
|
15,524
|
|
|
5,442
|
|
|
2002
|
|
5-40 yrs.
|
|||||||||
SouthPointe
|
|
Office
|
|
|
|
1,655
|
|
|
—
|
|
|
310
|
|
|
8,642
|
|
|
1,965
|
|
|
8,642
|
|
|
10,607
|
|
|
3,717
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
Ramparts
|
|
Office
|
|
|
|
2,394
|
|
|
12,806
|
|
|
—
|
|
|
9,113
|
|
|
2,394
|
|
|
21,919
|
|
|
24,313
|
|
|
8,012
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
Westwood South
|
|
Office
|
|
|
|
2,106
|
|
|
—
|
|
|
382
|
|
|
11,887
|
|
|
2,488
|
|
|
11,887
|
|
|
14,375
|
|
|
5,498
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
100 Winners Circle
|
|
Office
|
|
|
|
1,497
|
|
|
7,258
|
|
|
—
|
|
|
2,128
|
|
|
1,497
|
|
|
9,386
|
|
|
10,883
|
|
|
4,929
|
|
|
1987
|
|
5-40 yrs.
|
|||||||||
The Pinnacle at Symphony Place
|
|
Office
|
|
95,303
|
|
|
—
|
|
|
141,469
|
|
|
—
|
|
|
5,613
|
|
|
—
|
|
|
147,082
|
|
|
147,082
|
|
|
31,696
|
|
|
2010
|
|
5-40 yrs.
|
||||||||
Seven Springs East (LifePoint)
|
|
Office
|
|
|
|
2,525
|
|
|
37,587
|
|
|
—
|
|
|
180
|
|
|
2,525
|
|
|
37,767
|
|
|
40,292
|
|
|
7,311
|
|
|
2013
|
|
5-40 yrs.
|
|||||||||
The Shops at Seven Springs
|
|
Office
|
|
|
|
803
|
|
|
8,223
|
|
|
—
|
|
|
428
|
|
|
803
|
|
|
8,651
|
|
|
9,454
|
|
|
2,195
|
|
|
2013
|
|
5-40 yrs.
|
|||||||||
Seven Springs West
|
|
Office
|
|
|
|
2,439
|
|
|
51,306
|
|
|
—
|
|
|
2,015
|
|
|
2,439
|
|
|
53,321
|
|
|
55,760
|
|
|
6,123
|
|
|
2016
|
|
5-40 yrs.
|
|||||||||
Seven Springs II
|
|
Office
|
|
|
|
2,356
|
|
|
30,048
|
|
|
—
|
|
|
1,621
|
|
|
2,356
|
|
|
31,669
|
|
|
34,025
|
|
|
2,853
|
|
|
2017
|
|
5-40 yrs.
|
|||||||||
Bridgestone Tower
|
|
Office
|
|
|
|
15,639
|
|
|
169,392
|
|
|
1,200
|
|
|
190
|
|
|
16,839
|
|
|
169,582
|
|
|
186,421
|
|
|
11,517
|
|
|
2017
|
|
5-40 yrs.
|
|||||||||
MARS Campus
|
|
Office
|
|
|
|
—
|
|
|
—
|
|
|
7,010
|
|
|
87,474
|
|
|
7,010
|
|
|
87,474
|
|
|
94,484
|
|
|
2,225
|
|
|
2019
|
|
5-40 yrs.
|
|||||||||
5501 Virginia Way
|
|
Office
|
|
|
|
4,534
|
|
|
25,632
|
|
|
—
|
|
|
—
|
|
|
4,534
|
|
|
25,632
|
|
|
30,166
|
|
|
794
|
|
|
2018
|
|
5-40 yrs.
|
|||||||||
Ovation - Land
|
|
Office
|
|
|
|
31,063
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31,063
|
|
|
—
|
|
|
31,063
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Orlando, FL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
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
|
|||||||||
The 1800 Eller Drive Building
|
|
Office
|
|
|
|
—
|
|
|
9,851
|
|
|
—
|
|
|
3,663
|
|
|
—
|
|
|
13,514
|
|
|
13,514
|
|
|
8,883
|
|
|
1983
|
|
5-40 yrs.
|
|||||||||
Seaside Plaza
|
|
Office
|
|
|
|
3,893
|
|
|
29,541
|
|
|
—
|
|
|
8,753
|
|
|
3,893
|
|
|
38,294
|
|
|
42,187
|
|
|
7,498
|
|
|
1982
|
|
5-40 yrs.
|
|||||||||
Capital Plaza Two
|
|
Office
|
|
|
|
4,346
|
|
|
43,394
|
|
|
—
|
|
|
6,788
|
|
|
4,346
|
|
|
50,182
|
|
|
54,528
|
|
|
10,775
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Capital Plaza One
|
|
Office
|
|
|
|
3,482
|
|
|
27,321
|
|
|
—
|
|
|
6,360
|
|
|
3,482
|
|
|
33,681
|
|
|
37,163
|
|
|
6,051
|
|
|
1975
|
|
5-40 yrs.
|
|||||||||
Landmark Center Two
|
|
Office
|
|
|
|
4,743
|
|
|
22,031
|
|
|
—
|
|
|
8,840
|
|
|
4,743
|
|
|
30,871
|
|
|
35,614
|
|
|
6,465
|
|
|
1985
|
|
5-40 yrs.
|
|||||||||
Landmark Center One
|
|
Office
|
|
|
|
6,207
|
|
|
22,655
|
|
|
—
|
|
|
10,389
|
|
|
6,207
|
|
|
33,044
|
|
|
39,251
|
|
|
6,691
|
|
|
1983
|
|
5-40 yrs.
|
|||||||||
300 South Orange
|
|
Office
|
|
|
|
3,490
|
|
|
56,079
|
|
|
—
|
|
|
9,333
|
|
|
3,490
|
|
|
65,412
|
|
|
68,902
|
|
|
10,721
|
|
|
2000
|
|
5-40 yrs.
|
|||||||||
Eola Centre
|
|
Office
|
|
|
|
3,758
|
|
|
11,160
|
|
|
—
|
|
|
7,654
|
|
|
3,758
|
|
|
18,814
|
|
|
22,572
|
|
|
2,881
|
|
|
1969
|
|
5-40 yrs.
|
|||||||||
Greensboro, NC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
6348 Burnt Poplar Road
|
|
Industrial
|
|
|
|
724
|
|
|
2,900
|
|
|
—
|
|
|
327
|
|
|
724
|
|
|
3,227
|
|
|
3,951
|
|
|
1,982
|
|
|
1990
|
|
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
|
|
2019
Encumbrance |
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Total
Assets (1)
|
|
Accumulated
Depreciation
|
|
Date of
Construction
|
|
Life on
Which
Depreciation
is
Calculated
|
|||||||||||||||||
6350 Burnt Poplar Road
|
|
Industrial
|
|
|
|
341
|
|
|
1,374
|
|
|
—
|
|
|
726
|
|
|
341
|
|
|
2,100
|
|
|
2,441
|
|
|
1,075
|
|
|
1992
|
|
5-40 yrs.
|
|||||||||
420 Gallimore Dairy Road
|
|
Office
|
|
|
|
379
|
|
|
1,516
|
|
|
—
|
|
|
1,136
|
|
|
379
|
|
|
2,652
|
|
|
3,031
|
|
|
1,445
|
|
|
1990
|
|
5-40 yrs.
|
|||||||||
418 Gallimore Dairy Road
|
|
Office
|
|
|
|
462
|
|
|
1,849
|
|
|
—
|
|
|
1,065
|
|
|
462
|
|
|
2,914
|
|
|
3,376
|
|
|
1,426
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
416 Gallimore Dairy Road
|
|
Office
|
|
|
|
322
|
|
|
1,293
|
|
|
—
|
|
|
647
|
|
|
322
|
|
|
1,940
|
|
|
2,262
|
|
|
1,002
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
7031 Albert Pick Road
|
|
Office
|
|
|
|
510
|
|
|
2,921
|
|
|
—
|
|
|
2,707
|
|
|
510
|
|
|
5,628
|
|
|
6,138
|
|
|
2,932
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
7029 Albert Pick Road
|
|
Office
|
|
|
|
739
|
|
|
3,237
|
|
|
—
|
|
|
1,603
|
|
|
739
|
|
|
4,840
|
|
|
5,579
|
|
|
2,771
|
|
|
1988
|
|
5-40 yrs.
|
|||||||||
7025 Albert Pick Road
|
|
Office
|
|
|
|
2,393
|
|
|
9,576
|
|
|
—
|
|
|
5,904
|
|
|
2,393
|
|
|
15,480
|
|
|
17,873
|
|
|
8,818
|
|
|
1990
|
|
5-40 yrs.
|
|||||||||
7027 Albert Pick Road
|
|
Office
|
|
|
|
850
|
|
|
—
|
|
|
699
|
|
|
5,375
|
|
|
1,549
|
|
|
5,375
|
|
|
6,924
|
|
|
2,630
|
|
|
1997
|
|
5-40 yrs.
|
|||||||||
7009 Albert Pick Road
|
|
Industrial
|
|
|
|
224
|
|
|
1,068
|
|
|
—
|
|
|
219
|
|
|
224
|
|
|
1,287
|
|
|
1,511
|
|
|
751
|
|
|
1990
|
|
5-40 yrs.
|
|||||||||
426 Gallimore Dairy Road
|
|
Office
|
|
|
|
465
|
|
|
—
|
|
|
380
|
|
|
1,508
|
|
|
845
|
|
|
1,508
|
|
|
2,353
|
|
|
632
|
|
|
1996
|
|
5-40 yrs.
|
|||||||||
422 Gallimore Dairy Road
|
|
Industrial
|
|
|
|
145
|
|
|
1,081
|
|
|
—
|
|
|
223
|
|
|
145
|
|
|
1,304
|
|
|
1,449
|
|
|
714
|
|
|
1990
|
|
5-40 yrs.
|
|||||||||
406 Gallimore Dairy Road
|
|
Office
|
|
|
|
265
|
|
|
—
|
|
|
270
|
|
|
896
|
|
|
535
|
|
|
896
|
|
|
1,431
|
|
|
425
|
|
|
1996
|
|
5-40 yrs.
|
|||||||||
7021 Albert Pick Road
|
|
Industrial
|
|
|
|
237
|
|
|
1,103
|
|
|
—
|
|
|
490
|
|
|
237
|
|
|
1,593
|
|
|
1,830
|
|
|
819
|
|
|
1985
|
|
5-40 yrs.
|
|||||||||
7019 Albert Pick Road
|
|
Industrial
|
|
|
|
192
|
|
|
946
|
|
|
—
|
|
|
163
|
|
|
192
|
|
|
1,109
|
|
|
1,301
|
|
|
655
|
|
|
1985
|
|
5-40 yrs.
|
|||||||||
7015 Albert Pick Road
|
|
Industrial
|
|
|
|
305
|
|
|
1,219
|
|
|
—
|
|
|
462
|
|
|
305
|
|
|
1,681
|
|
|
1,986
|
|
|
922
|
|
|
1985
|
|
5-40 yrs.
|
|||||||||
7017 Albert Pick Road
|
|
Industrial
|
|
|
|
225
|
|
|
928
|
|
|
—
|
|
|
409
|
|
|
225
|
|
|
1,337
|
|
|
1,562
|
|
|
810
|
|
|
1985
|
|
5-40 yrs.
|
|||||||||
7011 Albert Pick Road
|
|
Industrial
|
|
|
|
171
|
|
|
777
|
|
|
—
|
|
|
323
|
|
|
171
|
|
|
1,100
|
|
|
1,271
|
|
|
671
|
|
|
1990
|
|
5-40 yrs.
|
|||||||||
424 Gallimore Dairy Road
|
|
Office
|
|
|
|
271
|
|
|
—
|
|
|
239
|
|
|
1,045
|
|
|
510
|
|
|
1,045
|
|
|
1,555
|
|
|
553
|
|
|
1997
|
|
5-40 yrs.
|
|||||||||
410 Gallimore Dairy Road
|
|
Industrial
|
|
|
|
356
|
|
|
1,613
|
|
|
—
|
|
|
518
|
|
|
356
|
|
|
2,131
|
|
|
2,487
|
|
|
1,198
|
|
|
1985
|
|
5-40 yrs.
|
|||||||||
412 Gallimore Dairy Road
|
|
Industrial
|
|
|
|
374
|
|
|
1,523
|
|
|
—
|
|
|
533
|
|
|
374
|
|
|
2,056
|
|
|
2,430
|
|
|
1,257
|
|
|
1985
|
|
5-40 yrs.
|
|||||||||
408 Gallimore Dairy Road
|
|
Industrial
|
|
|
|
341
|
|
|
1,486
|
|
|
—
|
|
|
643
|
|
|
341
|
|
|
2,129
|
|
|
2,470
|
|
|
1,162
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
414 Gallimore Dairy Road
|
|
Industrial
|
|
|
|
659
|
|
|
2,676
|
|
|
—
|
|
|
939
|
|
|
659
|
|
|
3,615
|
|
|
4,274
|
|
|
2,187
|
|
|
1988
|
|
5-40 yrs.
|
|||||||||
237 Burgess Road
|
|
Industrial
|
|
|
|
860
|
|
|
2,919
|
|
|
—
|
|
|
1,282
|
|
|
860
|
|
|
4,201
|
|
|
5,061
|
|
|
2,221
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
235 Burgess Road
|
|
Industrial
|
|
|
|
1,302
|
|
|
4,392
|
|
|
—
|
|
|
1,462
|
|
|
1,302
|
|
|
5,854
|
|
|
7,156
|
|
|
3,238
|
|
|
1987
|
|
5-40 yrs.
|
|||||||||
241 Burgess Road
|
|
Industrial
|
|
|
|
450
|
|
|
1,517
|
|
|
—
|
|
|
717
|
|
|
450
|
|
|
2,234
|
|
|
2,684
|
|
|
1,174
|
|
|
1988
|
|
5-40 yrs.
|
|||||||||
243 Burgess Road
|
|
Industrial
|
|
|
|
452
|
|
|
1,514
|
|
|
—
|
|
|
530
|
|
|
452
|
|
|
2,044
|
|
|
2,496
|
|
|
1,120
|
|
|
1988
|
|
5-40 yrs.
|
|||||||||
496 Gallimore Dairy Road
|
|
Industrial
|
|
|
|
546
|
|
|
—
|
|
|
—
|
|
|
3,144
|
|
|
546
|
|
|
3,144
|
|
|
3,690
|
|
|
1,377
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
494 Gallimore Dairy Road
|
|
Industrial
|
|
|
|
749
|
|
|
—
|
|
|
—
|
|
|
3,124
|
|
|
749
|
|
|
3,124
|
|
|
3,873
|
|
|
1,481
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
486 Gallimore Dairy Road
|
|
Industrial
|
|
|
|
603
|
|
|
—
|
|
|
—
|
|
|
3,379
|
|
|
603
|
|
|
3,379
|
|
|
3,982
|
|
|
1,515
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
488 Gallimore Dairy Road
|
|
Industrial
|
|
|
|
499
|
|
|
—
|
|
|
—
|
|
|
2,367
|
|
|
499
|
|
|
2,367
|
|
|
2,866
|
|
|
1,124
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
490 Gallimore Dairy Road
|
|
Industrial
|
|
|
|
1,733
|
|
|
—
|
|
|
—
|
|
|
4,663
|
|
|
1,733
|
|
|
4,663
|
|
|
6,396
|
|
|
2,238
|
|
|
1999
|
|
5-40 yrs.
|
HIGHWOODS PROPERTIES, INC.
HIGHWOODS REALTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)
|
|||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
Initial Costs
|
|
Costs Capitalized
Subsequent to
Acquisition
|
|
Gross Value at Close of Period
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Description
|
|
Property
Type
|
|
2019
Encumbrance |
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Total
Assets (1)
|
|
Accumulated
Depreciation
|
|
Date of
Construction
|
|
Life on
Which
Depreciation
is
Calculated
|
|||||||||||||||||
Brigham Road - Land
|
|
Industrial
|
|
|
|
7,059
|
|
|
—
|
|
|
(5,510
|
)
|
|
—
|
|
|
1,549
|
|
|
—
|
|
|
1,549
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
651 Brigham Road
|
|
Industrial
|
|
|
|
453
|
|
|
—
|
|
|
360
|
|
|
2,937
|
|
|
813
|
|
|
2,937
|
|
|
3,750
|
|
|
1,330
|
|
|
2002
|
|
5-40 yrs.
|
|||||||||
657 Brigham Road
|
|
Industrial
|
|
|
|
2,733
|
|
|
—
|
|
|
881
|
|
|
10,802
|
|
|
3,614
|
|
|
10,802
|
|
|
14,416
|
|
|
3,699
|
|
|
2006
|
|
5-40 yrs.
|
|||||||||
653 Brigham Road
|
|
Industrial
|
|
|
|
814
|
|
|
—
|
|
|
—
|
|
|
3,603
|
|
|
814
|
|
|
3,603
|
|
|
4,417
|
|
|
1,084
|
|
|
2007
|
|
5-40 yrs.
|
|||||||||
1501 Highwoods Boulevard
|
|
Office
|
|
|
|
1,476
|
|
|
—
|
|
|
—
|
|
|
9,208
|
|
|
1,476
|
|
|
9,208
|
|
|
10,684
|
|
|
3,779
|
|
|
2001
|
|
5-40 yrs.
|
|||||||||
Jefferson Pilot - Land
|
|
Office
|
|
|
|
11,759
|
|
|
—
|
|
|
(7,979
|
)
|
|
—
|
|
|
3,780
|
|
|
—
|
|
|
3,780
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
4200 Tudor Lane
|
|
Industrial
|
|
|
|
515
|
|
|
—
|
|
|
383
|
|
|
2,915
|
|
|
898
|
|
|
2,915
|
|
|
3,813
|
|
|
1,522
|
|
|
1996
|
|
5-40 yrs.
|
|||||||||
4224 Tudor Lane
|
|
Industrial
|
|
|
|
435
|
|
|
—
|
|
|
288
|
|
|
2,445
|
|
|
723
|
|
|
2,445
|
|
|
3,168
|
|
|
1,250
|
|
|
1996
|
|
5-40 yrs.
|
|||||||||
7023 Albert Pick Road
|
|
Office
|
|
|
|
834
|
|
|
3,459
|
|
|
—
|
|
|
1,155
|
|
|
834
|
|
|
4,614
|
|
|
5,448
|
|
|
2,736
|
|
|
1989
|
|
5-40 yrs.
|
|||||||||
1126 North Church Street
|
|
Office
|
|
|
|
2,734
|
|
|
9,129
|
|
|
—
|
|
|
1,333
|
|
|
2,734
|
|
|
10,462
|
|
|
13,196
|
|
|
2,094
|
|
|
2003
|
|
5-40 yrs.
|
|||||||||
1130 North Church Street
|
|
Office
|
|
|
|
2,376
|
|
|
5,451
|
|
|
—
|
|
|
(591
|
)
|
|
2,376
|
|
|
4,860
|
|
|
7,236
|
|
|
917
|
|
|
2007
|
|
5-40 yrs.
|
|||||||||
1132 North Church Street
|
|
Office
|
|
|
|
925
|
|
|
4,551
|
|
|
—
|
|
|
(362
|
)
|
|
925
|
|
|
4,189
|
|
|
5,114
|
|
|
843
|
|
|
2008
|
|
5-40 yrs.
|
|||||||||
628 Green Valley Road
|
|
Office
|
|
|
|
2,906
|
|
|
12,141
|
|
|
—
|
|
|
2,221
|
|
|
2,906
|
|
|
14,362
|
|
|
17,268
|
|
|
2,884
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
701 Green Valley Road
|
|
Office
|
|
|
|
3,787
|
|
|
7,719
|
|
|
—
|
|
|
2,115
|
|
|
3,787
|
|
|
9,834
|
|
|
13,621
|
|
|
2,137
|
|
|
1996
|
|
5-40 yrs.
|
|||||||||
661 Brigham Road
|
|
Industrial
|
|
|
|
890
|
|
|
5,512
|
|
|
—
|
|
|
413
|
|
|
890
|
|
|
5,925
|
|
|
6,815
|
|
|
636
|
|
|
2016
|
|
5-40 yrs.
|
|||||||||
655 Brigham Road
|
|
Industrial
|
|
|
|
899
|
|
|
6,538
|
|
|
—
|
|
|
229
|
|
|
899
|
|
|
6,767
|
|
|
7,666
|
|
|
547
|
|
|
2017
|
|
5-40 yrs.
|
|||||||||
Pittsburgh, PA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
One PPG Place
|
|
Office
|
|
|
|
9,819
|
|
|
107,643
|
|
|
—
|
|
|
49,010
|
|
|
9,819
|
|
|
156,653
|
|
|
166,472
|
|
|
44,985
|
|
|
1983-1985
|
|
5-40 yrs.
|
|||||||||
Two PPG Place
|
|
Office
|
|
|
|
2,302
|
|
|
10,978
|
|
|
—
|
|
|
9,873
|
|
|
2,302
|
|
|
20,851
|
|
|
23,153
|
|
|
4,678
|
|
|
1983-1985
|
|
5-40 yrs.
|
|||||||||
Three PPG Place
|
|
Office
|
|
|
|
501
|
|
|
2,923
|
|
|
—
|
|
|
4,635
|
|
|
501
|
|
|
7,558
|
|
|
8,059
|
|
|
2,308
|
|
|
1983-1985
|
|
5-40 yrs.
|
|||||||||
Four PPG Place
|
|
Office
|
|
|
|
620
|
|
|
3,239
|
|
|
—
|
|
|
2,958
|
|
|
620
|
|
|
6,197
|
|
|
6,817
|
|
|
1,863
|
|
|
1983-1985
|
|
5-40 yrs.
|
|||||||||
Five PPG Place
|
|
Office
|
|
|
|
803
|
|
|
4,924
|
|
|
—
|
|
|
3,002
|
|
|
803
|
|
|
7,926
|
|
|
8,729
|
|
|
2,424
|
|
|
1983-1985
|
|
5-40 yrs.
|
|||||||||
Six PPG Place
|
|
Office
|
|
|
|
3,353
|
|
|
25,602
|
|
|
—
|
|
|
15,048
|
|
|
3,353
|
|
|
40,650
|
|
|
44,003
|
|
|
9,730
|
|
|
1983-1985
|
|
5-40 yrs.
|
|||||||||
EQT Plaza
|
|
Office
|
|
|
|
16,457
|
|
|
83,812
|
|
|
—
|
|
|
12,399
|
|
|
16,457
|
|
|
96,211
|
|
|
112,668
|
|
|
21,907
|
|
|
1987
|
|
5-40 yrs.
|
|||||||||
East Liberty - Land
|
|
Office
|
|
|
|
—
|
|
|
—
|
|
|
2,478
|
|
|
—
|
|
|
2,478
|
|
|
—
|
|
|
2,478
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Raleigh, NC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
3600 Glenwood Avenue
|
|
Office
|
|
|
|
—
|
|
|
10,994
|
|
|
—
|
|
|
3,737
|
|
|
—
|
|
|
14,731
|
|
|
14,731
|
|
|
8,361
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
3737 Glenwood Avenue
|
|
Office
|
|
|
|
—
|
|
|
—
|
|
|
318
|
|
|
16,512
|
|
|
318
|
|
|
16,512
|
|
|
16,830
|
|
|
8,022
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
4800 North Park
|
|
Office
|
|
|
|
2,678
|
|
|
17,630
|
|
|
—
|
|
|
7,984
|
|
|
2,678
|
|
|
25,614
|
|
|
28,292
|
|
|
15,194
|
|
|
1985
|
|
5-40 yrs.
|
|||||||||
5000 North Park
|
|
Office
|
|
|
|
1,010
|
|
|
4,612
|
|
|
(49
|
)
|
|
2,901
|
|
|
961
|
|
|
7,513
|
|
|
8,474
|
|
|
3,939
|
|
|
1980
|
|
5-40 yrs.
|
|||||||||
801 Raleigh Corporate Center
|
|
Office
|
|
|
|
828
|
|
|
—
|
|
|
272
|
|
|
11,549
|
|
|
1,100
|
|
|
11,549
|
|
|
12,649
|
|
|
4,538
|
|
|
2002
|
|
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
|
|
2019
Encumbrance |
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Total
Assets (1)
|
|
Accumulated
Depreciation
|
|
Date of
Construction
|
|
Life on
Which
Depreciation
is
Calculated
|
|||||||||||||||||
2500 Blue Ridge Road
|
|
Office
|
|
|
|
722
|
|
|
4,606
|
|
|
—
|
|
|
1,527
|
|
|
722
|
|
|
6,133
|
|
|
6,855
|
|
|
3,625
|
|
|
1982
|
|
5-40 yrs.
|
|||||||||
2418 Blue Ridge Road
|
|
Office
|
|
|
|
462
|
|
|
1,410
|
|
|
—
|
|
|
1,295
|
|
|
462
|
|
|
2,705
|
|
|
3,167
|
|
|
1,492
|
|
|
1988
|
|
5-40 yrs.
|
|||||||||
Cape Fear
|
|
Office
|
|
|
|
131
|
|
|
1,630
|
|
|
(2
|
)
|
|
(908
|
)
|
|
129
|
|
|
722
|
|
|
851
|
|
|
413
|
|
|
1979
|
|
5-40 yrs.
|
|||||||||
Catawba
|
|
Office
|
|
|
|
125
|
|
|
1,635
|
|
|
(2
|
)
|
|
(1,417
|
)
|
|
123
|
|
|
218
|
|
|
341
|
|
|
156
|
|
|
1980
|
|
5-40 yrs.
|
|||||||||
2000 CentreGreen
|
|
Office
|
|
|
|
1,529
|
|
|
—
|
|
|
(391
|
)
|
|
11,829
|
|
|
1,138
|
|
|
11,829
|
|
|
12,967
|
|
|
5,600
|
|
|
2000
|
|
5-40 yrs.
|
|||||||||
4000 CentreGreen
|
|
Office
|
|
|
|
1,653
|
|
|
—
|
|
|
(389
|
)
|
|
10,563
|
|
|
1,264
|
|
|
10,563
|
|
|
11,827
|
|
|
4,716
|
|
|
2001
|
|
5-40 yrs.
|
|||||||||
5000 CentreGreen
|
|
Office
|
|
|
|
1,291
|
|
|
34,572
|
|
|
—
|
|
|
2,861
|
|
|
1,291
|
|
|
37,433
|
|
|
38,724
|
|
|
3,201
|
|
|
2017
|
|
5-40 yrs.
|
|||||||||
3000 CentreGreen
|
|
Office
|
|
|
|
1,779
|
|
|
—
|
|
|
(397
|
)
|
|
13,965
|
|
|
1,382
|
|
|
13,965
|
|
|
15,347
|
|
|
4,464
|
|
|
2002
|
|
5-40 yrs.
|
|||||||||
1000 CentreGreen
|
|
Office
|
|
|
|
1,280
|
|
|
—
|
|
|
55
|
|
|
11,185
|
|
|
1,335
|
|
|
11,185
|
|
|
12,520
|
|
|
3,208
|
|
|
2008
|
|
5-40 yrs.
|
|||||||||
Cottonwood
|
|
Office
|
|
|
|
609
|
|
|
3,244
|
|
|
—
|
|
|
433
|
|
|
609
|
|
|
3,677
|
|
|
4,286
|
|
|
2,325
|
|
|
1983
|
|
5-40 yrs.
|
|||||||||
GlenLake - Land
|
|
Office
|
|
|
|
13,003
|
|
|
—
|
|
|
(9,924
|
)
|
|
114
|
|
|
3,079
|
|
|
114
|
|
|
3,193
|
|
|
53
|
|
|
N/A
|
|
5-40 yrs.
|
|||||||||
GlenLake One
|
|
Office
|
|
|
|
924
|
|
|
—
|
|
|
1,324
|
|
|
22,697
|
|
|
2,248
|
|
|
22,697
|
|
|
24,945
|
|
|
9,344
|
|
|
2002
|
|
5-40 yrs.
|
|||||||||
GlenLake Four
|
|
Office
|
|
|
|
1,659
|
|
|
—
|
|
|
493
|
|
|
19,967
|
|
|
2,152
|
|
|
19,967
|
|
|
22,119
|
|
|
6,708
|
|
|
2006
|
|
5-40 yrs.
|
|||||||||
GlenLake Six
|
|
Office
|
|
|
|
941
|
|
|
—
|
|
|
(365
|
)
|
|
20,166
|
|
|
576
|
|
|
20,166
|
|
|
20,742
|
|
|
6,057
|
|
|
2008
|
|
5-40 yrs.
|
|||||||||
701 Raleigh Corporate Center
|
|
Office
|
|
|
|
1,304
|
|
|
—
|
|
|
540
|
|
|
15,994
|
|
|
1,844
|
|
|
15,994
|
|
|
17,838
|
|
|
8,025
|
|
|
1996
|
|
5-40 yrs.
|
|||||||||
Highwoods Centre
|
|
Office
|
|
|
|
531
|
|
|
—
|
|
|
(267
|
)
|
|
8,035
|
|
|
264
|
|
|
8,035
|
|
|
8,299
|
|
|
4,094
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
Inveresk Parcel 2 - Land
|
|
Office
|
|
|
|
657
|
|
|
—
|
|
|
38
|
|
|
103
|
|
|
695
|
|
|
103
|
|
|
798
|
|
|
11
|
|
|
N/A
|
|
5-40 yrs.
|
|||||||||
4201 Lake Boone Trail
|
|
Office
|
|
|
|
1,450
|
|
|
6,311
|
|
|
—
|
|
|
786
|
|
|
1,450
|
|
|
7,097
|
|
|
8,547
|
|
|
1,769
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
4620 Creekstone Drive
|
|
Office
|
|
|
|
149
|
|
|
—
|
|
|
107
|
|
|
3,141
|
|
|
256
|
|
|
3,141
|
|
|
3,397
|
|
|
1,416
|
|
|
2001
|
|
5-40 yrs.
|
|||||||||
4825 Creekstone Drive
|
|
Office
|
|
|
|
398
|
|
|
—
|
|
|
293
|
|
|
10,445
|
|
|
691
|
|
|
10,445
|
|
|
11,136
|
|
|
4,984
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Pamlico
|
|
Office
|
|
|
|
289
|
|
|
—
|
|
|
—
|
|
|
8,741
|
|
|
289
|
|
|
8,741
|
|
|
9,030
|
|
|
6,893
|
|
|
1980
|
|
5-40 yrs.
|
|||||||||
Progress Center Renovation
|
|
Office
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|
3
|
|
|
3
|
|
|
2003
|
|
5-40 yrs.
|
|||||||||
751 Corporate Center
|
|
Office
|
|
|
|
2,665
|
|
|
16,939
|
|
|
—
|
|
|
—
|
|
|
2,665
|
|
|
16,939
|
|
|
19,604
|
|
|
1,027
|
|
|
2018
|
|
5-40 yrs.
|
|||||||||
PNC Plaza
|
|
Office
|
|
|
|
1,206
|
|
|
—
|
|
|
—
|
|
|
70,353
|
|
|
1,206
|
|
|
70,353
|
|
|
71,559
|
|
|
22,364
|
|
|
2008
|
|
5-40 yrs.
|
|||||||||
4301 Lake Boone Trail
|
|
Office
|
|
|
|
878
|
|
|
3,730
|
|
|
—
|
|
|
2,427
|
|
|
878
|
|
|
6,157
|
|
|
7,035
|
|
|
3,712
|
|
|
1990
|
|
5-40 yrs.
|
|||||||||
4207 Lake Boone Trail
|
|
Office
|
|
|
|
362
|
|
|
1,818
|
|
|
—
|
|
|
1,421
|
|
|
362
|
|
|
3,239
|
|
|
3,601
|
|
|
1,968
|
|
|
1993
|
|
5-40 yrs.
|
|||||||||
2301 Rexwoods Drive
|
|
Office
|
|
|
|
919
|
|
|
2,816
|
|
|
—
|
|
|
1,649
|
|
|
919
|
|
|
4,465
|
|
|
5,384
|
|
|
2,536
|
|
|
1992
|
|
5-40 yrs.
|
|||||||||
4325 Lake Boone Trail
|
|
Office
|
|
|
|
586
|
|
|
—
|
|
|
—
|
|
|
4,781
|
|
|
586
|
|
|
4,781
|
|
|
5,367
|
|
|
2,437
|
|
|
1995
|
|
5-40 yrs.
|
|||||||||
2300 Rexwoods Drive
|
|
Office
|
|
|
|
1,301
|
|
|
—
|
|
|
184
|
|
|
6,533
|
|
|
1,485
|
|
|
6,533
|
|
|
8,018
|
|
|
3,774
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
4709 Creekstone Drive
|
|
Office
|
|
|
|
469
|
|
|
4,038
|
|
|
23
|
|
|
5,302
|
|
|
492
|
|
|
9,340
|
|
|
9,832
|
|
|
2,750
|
|
|
1987
|
|
5-40 yrs.
|
|||||||||
4700 Six Forks Road
|
|
Office
|
|
|
|
666
|
|
|
2,665
|
|
|
—
|
|
|
1,505
|
|
|
666
|
|
|
4,170
|
|
|
4,836
|
|
|
2,514
|
|
|
1982
|
|
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
|
|
2019
Encumbrance |
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Total
Assets (1)
|
|
Accumulated
Depreciation
|
|
Date of
Construction
|
|
Life on
Which
Depreciation
is
Calculated
|
|||||||||||||||||
4700 Homewood Court
|
|
Office
|
|
|
|
1,086
|
|
|
4,533
|
|
|
—
|
|
|
2,080
|
|
|
1,086
|
|
|
6,613
|
|
|
7,699
|
|
|
3,776
|
|
|
1983
|
|
5-40 yrs.
|
|||||||||
4800 Six Forks Road
|
|
Office
|
|
|
|
862
|
|
|
4,411
|
|
|
—
|
|
|
2,901
|
|
|
862
|
|
|
7,312
|
|
|
8,174
|
|
|
4,156
|
|
|
1987
|
|
5-40 yrs.
|
|||||||||
Smoketree Tower
|
|
Office
|
|
|
|
2,353
|
|
|
11,743
|
|
|
—
|
|
|
7,119
|
|
|
2,353
|
|
|
18,862
|
|
|
21,215
|
|
|
10,579
|
|
|
1984
|
|
5-40 yrs.
|
|||||||||
4601 Creekstone Drive
|
|
Office
|
|
|
|
255
|
|
|
—
|
|
|
217
|
|
|
6,186
|
|
|
472
|
|
|
6,186
|
|
|
6,658
|
|
|
3,332
|
|
|
1997
|
|
5-40 yrs.
|
|||||||||
Weston - Land
|
|
Office
|
|
|
|
22,771
|
|
|
—
|
|
|
(19,894
|
)
|
|
—
|
|
|
2,877
|
|
|
—
|
|
|
2,877
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
4625 Creekstone Drive
|
|
Office
|
|
|
|
458
|
|
|
—
|
|
|
268
|
|
|
6,175
|
|
|
726
|
|
|
6,175
|
|
|
6,901
|
|
|
3,439
|
|
|
1995
|
|
5-40 yrs.
|
|||||||||
11000 Weston Parkway
|
|
Office
|
|
|
|
2,651
|
|
|
18,850
|
|
|
—
|
|
|
8,852
|
|
|
2,651
|
|
|
27,702
|
|
|
30,353
|
|
|
4,131
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
GlenLake Five
|
|
Office
|
|
|
|
2,263
|
|
|
30,264
|
|
|
—
|
|
|
3,654
|
|
|
2,263
|
|
|
33,918
|
|
|
36,181
|
|
|
7,015
|
|
|
2014
|
|
5-40 yrs.
|
|||||||||
11800 Weston Parkway
|
|
Office
|
|
|
|
826
|
|
|
13,188
|
|
|
—
|
|
|
21
|
|
|
826
|
|
|
13,209
|
|
|
14,035
|
|
|
2,343
|
|
|
2014
|
|
5-40 yrs.
|
|||||||||
CentreGreen Café
|
|
Office
|
|
|
|
41
|
|
|
3,509
|
|
|
—
|
|
|
(2
|
)
|
|
41
|
|
|
3,507
|
|
|
3,548
|
|
|
446
|
|
|
2014
|
|
5-40 yrs.
|
|||||||||
CentreGreen Fitness Center
|
|
Office
|
|
|
|
27
|
|
|
2,322
|
|
|
—
|
|
|
(1
|
)
|
|
27
|
|
|
2,321
|
|
|
2,348
|
|
|
295
|
|
|
2014
|
|
5-40 yrs.
|
|||||||||
One City Plaza
|
|
Office
|
|
|
|
11,288
|
|
|
68,375
|
|
|
—
|
|
|
26,949
|
|
|
11,288
|
|
|
95,324
|
|
|
106,612
|
|
|
16,622
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
Edison - Land
|
|
Office
|
|
|
|
5,984
|
|
|
—
|
|
|
2,248
|
|
|
—
|
|
|
8,232
|
|
|
—
|
|
|
8,232
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Charter Square
|
|
Office
|
|
|
|
7,267
|
|
|
65,881
|
|
|
—
|
|
|
4,868
|
|
|
7,267
|
|
|
70,749
|
|
|
78,016
|
|
|
7,696
|
|
|
2015
|
|
5-40 yrs.
|
|||||||||
MetLife Global Technology Campus
|
|
Office
|
|
|
|
17,044
|
|
|
88,137
|
|
|
4,536
|
|
|
61,752
|
|
|
21,580
|
|
|
149,889
|
|
|
171,469
|
|
|
14,810
|
|
|
2015
|
|
5-40 yrs.
|
|||||||||
Hargett - Land
|
|
Office
|
|
|
|
—
|
|
|
—
|
|
|
6,582
|
|
|
—
|
|
|
6,582
|
|
|
—
|
|
|
6,582
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Other Property
|
|
Other
|
|
|
|
32,075
|
|
|
40,392
|
|
|
(23,161
|
)
|
|
10,466
|
|
|
8,914
|
|
|
50,858
|
|
|
59,772
|
|
|
28,224
|
|
|
N/A
|
|
5-40 yrs.
|
|||||||||
Richmond, VA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
4900 Cox Road
|
|
Office
|
|
|
|
1,324
|
|
|
5,311
|
|
|
15
|
|
|
3,650
|
|
|
1,339
|
|
|
8,961
|
|
|
10,300
|
|
|
5,062
|
|
|
1991
|
|
5-40 yrs.
|
|||||||||
Colonnade Building
|
|
Office
|
|
|
|
1,364
|
|
|
6,105
|
|
|
—
|
|
|
2,488
|
|
|
1,364
|
|
|
8,593
|
|
|
9,957
|
|
|
3,612
|
|
|
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
|
|
|
(424
|
)
|
|
1,749
|
|
|
12,875
|
|
|
14,624
|
|
|
5,876
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Hamilton Beach
|
|
Office
|
|
|
|
1,086
|
|
|
4,345
|
|
|
10
|
|
|
2,781
|
|
|
1,096
|
|
|
7,126
|
|
|
8,222
|
|
|
3,554
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
Highwoods Commons
|
|
Office
|
|
|
|
521
|
|
|
—
|
|
|
458
|
|
|
4,493
|
|
|
979
|
|
|
4,493
|
|
|
5,472
|
|
|
2,080
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Highwoods One
|
|
Office
|
|
|
|
1,688
|
|
|
—
|
|
|
22
|
|
|
14,117
|
|
|
1,710
|
|
|
14,117
|
|
|
15,827
|
|
|
6,815
|
|
|
1996
|
|
5-40 yrs.
|
|||||||||
Highwoods Two
|
|
Office
|
|
|
|
786
|
|
|
—
|
|
|
226
|
|
|
9,684
|
|
|
1,012
|
|
|
9,684
|
|
|
10,696
|
|
|
3,447
|
|
|
1997
|
|
5-40 yrs.
|
|||||||||
Highwoods Five
|
|
Office
|
|
|
|
783
|
|
|
—
|
|
|
11
|
|
|
7,505
|
|
|
794
|
|
|
7,505
|
|
|
8,299
|
|
|
3,429
|
|
|
1998
|
|
5-40 yrs.
|
|||||||||
Highwoods Plaza
|
|
Office
|
|
|
|
909
|
|
|
—
|
|
|
187
|
|
|
5,732
|
|
|
1,096
|
|
|
5,732
|
|
|
6,828
|
|
|
2,729
|
|
|
2000
|
|
5-40 yrs.
|
|||||||||
Innslake Center
|
|
Office
|
|
|
|
845
|
|
|
—
|
|
|
195
|
|
|
7,770
|
|
|
1,040
|
|
|
7,770
|
|
|
8,810
|
|
|
3,143
|
|
|
2001
|
|
5-40 yrs.
|
|||||||||
Highwoods Centre
|
|
Office
|
|
|
|
1,205
|
|
|
4,825
|
|
|
—
|
|
|
1,488
|
|
|
1,205
|
|
|
6,313
|
|
|
7,518
|
|
|
3,440
|
|
|
1990
|
|
5-40 yrs.
|
|||||||||
Markel 4501
|
|
Office
|
|
|
|
1,300
|
|
|
13,259
|
|
|
213
|
|
|
(3,652
|
)
|
|
1,513
|
|
|
9,607
|
|
|
11,120
|
|
|
3,710
|
|
|
1998
|
|
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
|
|
2019
Encumbrance |
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Total
Assets (1)
|
|
Accumulated
Depreciation
|
|
Date of
Construction
|
|
Life on
Which
Depreciation
is
Calculated
|
|||||||||||||||||
4600 Cox Road
|
|
Office
|
|
|
|
1,700
|
|
|
17,081
|
|
|
169
|
|
|
(3,456
|
)
|
|
1,869
|
|
|
13,625
|
|
|
15,494
|
|
|
5,144
|
|
|
1989
|
|
5-40 yrs.
|
|||||||||
North Park
|
|
Office
|
|
|
|
2,163
|
|
|
8,659
|
|
|
6
|
|
|
3,039
|
|
|
2,169
|
|
|
11,698
|
|
|
13,867
|
|
|
6,575
|
|
|
1989
|
|
5-40 yrs.
|
|||||||||
North Shore Commons I
|
|
Office
|
|
|
|
951
|
|
|
—
|
|
|
17
|
|
|
12,607
|
|
|
968
|
|
|
12,607
|
|
|
13,575
|
|
|
5,969
|
|
|
2002
|
|
5-40 yrs.
|
|||||||||
North Shore Commons II
|
|
Office
|
|
|
|
2,067
|
|
|
—
|
|
|
(89
|
)
|
|
10,812
|
|
|
1,978
|
|
|
10,812
|
|
|
12,790
|
|
|
3,549
|
|
|
2007
|
|
5-40 yrs.
|
|||||||||
North Shore Commons C - Land
|
|
Office
|
|
|
|
1,497
|
|
|
—
|
|
|
15
|
|
|
4
|
|
|
1,512
|
|
|
4
|
|
|
1,516
|
|
|
—
|
|
|
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
|
|
|
20,736
|
|
|
356
|
|
|
20,736
|
|
|
21,092
|
|
|
9,470
|
|
|
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
|
|
|
2,221
|
|
|
1,621
|
|
|
11,085
|
|
|
12,706
|
|
|
4,968
|
|
|
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
|
|
|
11,925
|
|
|
2,276
|
|
|
11,925
|
|
|
14,201
|
|
|
3,867
|
|
|
2005
|
|
5-40 yrs.
|
|||||||||
Stony Point VI (Virginia Urology)
|
|
Office
|
|
|
|
1,925
|
|
|
25,868
|
|
|
—
|
|
|
—
|
|
|
1,925
|
|
|
25,868
|
|
|
27,793
|
|
|
1,177
|
|
|
2018
|
|
5-40 yrs.
|
|||||||||
Stony Point I
|
|
Office
|
|
|
|
1,384
|
|
|
11,630
|
|
|
(267
|
)
|
|
4,300
|
|
|
1,117
|
|
|
15,930
|
|
|
17,047
|
|
|
8,031
|
|
|
1990
|
|
5-40 yrs.
|
|||||||||
Stony Point II
|
|
Office
|
|
|
|
1,240
|
|
|
—
|
|
|
103
|
|
|
12,888
|
|
|
1,343
|
|
|
12,888
|
|
|
14,231
|
|
|
6,121
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Stony Point III
|
|
Office
|
|
|
|
995
|
|
|
—
|
|
|
—
|
|
|
10,685
|
|
|
995
|
|
|
10,685
|
|
|
11,680
|
|
|
4,891
|
|
|
2002
|
|
5-40 yrs.
|
|||||||||
Stony Point IV
|
|
Office
|
|
|
|
955
|
|
|
—
|
|
|
—
|
|
|
11,900
|
|
|
955
|
|
|
11,900
|
|
|
12,855
|
|
|
3,966
|
|
|
2006
|
|
5-40 yrs.
|
|||||||||
Virginia Mutual
|
|
Office
|
|
|
|
1,301
|
|
|
6,036
|
|
|
15
|
|
|
1,576
|
|
|
1,316
|
|
|
7,612
|
|
|
8,928
|
|
|
3,801
|
|
|
1996
|
|
5-40 yrs.
|
|||||||||
Waterfront Plaza
|
|
Office
|
|
|
|
585
|
|
|
2,347
|
|
|
8
|
|
|
2,218
|
|
|
593
|
|
|
4,565
|
|
|
5,158
|
|
|
1,930
|
|
|
1988
|
|
5-40 yrs.
|
|||||||||
Innsbrook Centre
|
|
Office
|
|
|
|
914
|
|
|
8,249
|
|
|
—
|
|
|
1,090
|
|
|
914
|
|
|
9,339
|
|
|
10,253
|
|
|
3,828
|
|
|
1987
|
|
5-40 yrs.
|
|||||||||
Elks Pass - Land
|
|
Office
|
|
|
|
—
|
|
|
—
|
|
|
3,326
|
|
|
—
|
|
|
3,326
|
|
|
—
|
|
|
3,326
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
Tampa, FL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Meridian Three
|
|
Office
|
|
|
|
2,673
|
|
|
16,470
|
|
|
—
|
|
|
6,586
|
|
|
2,673
|
|
|
23,056
|
|
|
25,729
|
|
|
6,733
|
|
|
1989
|
|
5-40 yrs.
|
|||||||||
Bayshore Place
|
|
Office
|
|
|
|
2,276
|
|
|
11,817
|
|
|
—
|
|
|
3,634
|
|
|
2,276
|
|
|
15,451
|
|
|
17,727
|
|
|
6,667
|
|
|
1990
|
|
5-40 yrs.
|
|||||||||
5525 Gray Street
|
|
Office
|
|
|
|
4,054
|
|
|
—
|
|
|
406
|
|
|
28,339
|
|
|
4,460
|
|
|
28,339
|
|
|
32,799
|
|
|
12,783
|
|
|
2005
|
|
5-40 yrs.
|
|||||||||
Highwoods Preserve Building V
|
|
Office
|
|
|
|
881
|
|
|
—
|
|
|
—
|
|
|
22,651
|
|
|
881
|
|
|
22,651
|
|
|
23,532
|
|
|
10,465
|
|
|
2001
|
|
5-40 yrs.
|
|||||||||
Highwoods Bay Center I
|
|
Office
|
|
|
|
3,565
|
|
|
—
|
|
|
(64
|
)
|
|
37,682
|
|
|
3,501
|
|
|
37,682
|
|
|
41,183
|
|
|
11,112
|
|
|
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
|
|
|
3,994
|
|
|
2007
|
|
5-40 yrs.
|
|||||||||
HIW Preserve VII Garage
|
|
Office
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,818
|
|
|
—
|
|
|
6,818
|
|
|
6,818
|
|
|
2,193
|
|
|
2007
|
|
5-40 yrs.
|
|||||||||
Horizon
|
|
Office
|
|
|
|
—
|
|
|
6,257
|
|
|
—
|
|
|
3,833
|
|
|
—
|
|
|
10,090
|
|
|
10,090
|
|
|
5,115
|
|
|
1980
|
|
5-40 yrs.
|
HIGHWOODS PROPERTIES, INC.
HIGHWOODS REALTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)
|
|||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
Initial Costs
|
|
Costs Capitalized
Subsequent to
Acquisition
|
|
Gross Value at Close of Period
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Description
|
|
Property
Type
|
|
2019
Encumbrance |
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Land
|
|
Bldg &
Improv
|
|
Total
Assets (1)
|
|
Accumulated
Depreciation
|
|
Date of
Construction
|
|
Life on
Which
Depreciation
is
Calculated
|
|||||||||||||||||
LakePointe One
|
|
Office
|
|
|
|
2,106
|
|
|
89
|
|
|
—
|
|
|
41,019
|
|
|
2,106
|
|
|
41,108
|
|
|
43,214
|
|
|
22,270
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
LakePointe Two
|
|
Office
|
|
|
|
2,000
|
|
|
15,848
|
|
|
672
|
|
|
15,376
|
|
|
2,672
|
|
|
31,224
|
|
|
33,896
|
|
|
15,604
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Lakeside
|
|
Office
|
|
|
|
—
|
|
|
7,369
|
|
|
—
|
|
|
7,168
|
|
|
—
|
|
|
14,537
|
|
|
14,537
|
|
|
6,731
|
|
|
1978
|
|
5-40 yrs.
|
|||||||||
Lakeside/Parkside Garage
|
|
Office
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,636
|
|
|
—
|
|
|
5,636
|
|
|
5,636
|
|
|
2,213
|
|
|
2004
|
|
5-40 yrs.
|
|||||||||
One Harbour Place
|
|
Office
|
|
|
|
2,016
|
|
|
25,252
|
|
|
—
|
|
|
14,672
|
|
|
2,016
|
|
|
39,924
|
|
|
41,940
|
|
|
16,623
|
|
|
1985
|
|
5-40 yrs.
|
|||||||||
Parkside
|
|
Office
|
|
|
|
—
|
|
|
9,407
|
|
|
—
|
|
|
1,805
|
|
|
—
|
|
|
11,212
|
|
|
11,212
|
|
|
5,680
|
|
|
1979
|
|
5-40 yrs.
|
|||||||||
Pavilion
|
|
Office
|
|
|
|
—
|
|
|
16,394
|
|
|
—
|
|
|
5,673
|
|
|
—
|
|
|
22,067
|
|
|
22,067
|
|
|
11,582
|
|
|
1982
|
|
5-40 yrs.
|
|||||||||
Pavilion Parking Garage
|
|
Office
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,790
|
|
|
—
|
|
|
5,790
|
|
|
5,790
|
|
|
2,884
|
|
|
1999
|
|
5-40 yrs.
|
|||||||||
Spectrum
|
|
Office
|
|
|
|
1,454
|
|
|
14,502
|
|
|
—
|
|
|
3,197
|
|
|
1,454
|
|
|
17,699
|
|
|
19,153
|
|
|
9,374
|
|
|
1984
|
|
5-40 yrs.
|
|||||||||
Tower Place
|
|
Office
|
|
|
|
3,218
|
|
|
19,898
|
|
|
—
|
|
|
5,297
|
|
|
3,218
|
|
|
25,195
|
|
|
28,413
|
|
|
13,533
|
|
|
1988
|
|
5-40 yrs.
|
|||||||||
Westshore Square
|
|
Office
|
|
|
|
1,126
|
|
|
5,186
|
|
|
—
|
|
|
1,532
|
|
|
1,126
|
|
|
6,718
|
|
|
7,844
|
|
|
3,403
|
|
|
1976
|
|
5-40 yrs.
|
|||||||||
Independence Park - Land
|
|
Office
|
|
|
|
4,943
|
|
|
—
|
|
|
5,027
|
|
|
2,227
|
|
|
9,970
|
|
|
2,227
|
|
|
12,197
|
|
|
158
|
|
|
N/A
|
|
5-40 yrs.
|
|||||||||
Independence One
|
|
Office
|
|
|
|
2,531
|
|
|
4,526
|
|
|
—
|
|
|
5,651
|
|
|
2,531
|
|
|
10,177
|
|
|
12,708
|
|
|
4,497
|
|
|
1983
|
|
5-40 yrs.
|
|||||||||
Meridian One
|
|
Office
|
|
|
|
1,849
|
|
|
22,363
|
|
|
—
|
|
|
3,462
|
|
|
1,849
|
|
|
25,825
|
|
|
27,674
|
|
|
5,716
|
|
|
1984
|
|
5-40 yrs.
|
|||||||||
Meridian Two
|
|
Office
|
|
|
|
1,302
|
|
|
19,588
|
|
|
—
|
|
|
4,483
|
|
|
1,302
|
|
|
24,071
|
|
|
25,373
|
|
|
5,377
|
|
|
1986
|
|
5-40 yrs.
|
|||||||||
5332 Avion Park
|
|
Office
|
|
|
|
—
|
|
|
—
|
|
|
6,310
|
|
|
32,444
|
|
|
6,310
|
|
|
32,444
|
|
|
38,754
|
|
|
3,099
|
|
|
2016
|
|
5-40 yrs.
|
|||||||||
Suntrust Financial Centre
|
|
Office
|
|
|
|
1,980
|
|
|
102,138
|
|
|
—
|
|
|
22,917
|
|
|
1,980
|
|
|
125,055
|
|
|
127,035
|
|
|
17,025
|
|
|
1992
|
|
5-40 yrs.
|
|||||||||
Suntrust Financial - Land
|
|
Office
|
|
|
|
2,225
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,225
|
|
|
—
|
|
|
2,225
|
|
|
—
|
|
|
N/A
|
|
N/A
|
|||||||||
|
|
|
|
|
|
$
|
613,041
|
|
|
$
|
3,004,028
|
|
|
$
|
6,032
|
|
|
$
|
2,153,703
|
|
|
$
|
619,073
|
|
|
$
|
5,157,731
|
|
|
$
|
5,776,804
|
|
|
$
|
1,405,341
|
|
|
|
|
|
(1)
|
The cost basis for income tax purposes of aggregate land and buildings and tenant improvements as of December 31, 2019 is $5.5 billion. This amount excludes approximately $370.8 million of cost basis attributable to a property held in a variable interest entity at December 31, 2019 to facilitate a potential 1031 exchange.
|
Highwoods Properties, Inc.
|
|
By:
|
/s/ Theodore J. Klinck
|
|
Theodore J. Klinck
|
|
President and Chief Executive Officer
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ Carlos E. Evans
|
|
Chairman of the Board of Directors
|
|
February 4, 2020
|
Carlos E. Evans
|
|
|
|
|
|
|
|
|
|
/s/ Theodore J. Klinck
|
|
President, Chief Executive Officer and Director
|
|
February 4, 2020
|
Theodore J. Klinck
|
|
|
|
|
|
|
|
|
|
/s/ Charles A. Anderson
|
|
Director
|
|
February 4, 2020
|
Charles A. Anderson
|
|
|
|
|
|
|
|
|
|
/s/ Gene H. Anderson
|
|
Director
|
|
February 4, 2020
|
Gene H. Anderson
|
|
|
|
|
|
|
|
|
|
/s/ Thomas P. Anderson
|
|
Director
|
|
February 4, 2020
|
Thomas P. Anderson
|
|
|
|
|
|
|
|
|
|
/s/ David J. Hartzell
|
|
Director
|
|
February 4, 2020
|
David J. Hartzell
|
|
|
|
|
|
|
|
|
|
/s/ Sherry A. Kellett
|
|
Director
|
|
February 4, 2020
|
Sherry A. Kellett
|
|
|
|
|
|
|
|
|
|
/s/ Anne H. Lloyd
|
|
Director
|
|
February 4, 2020
|
Anne H. Lloyd
|
|
|
|
|
|
|
|
|
|
/s/ Mark F. Mulhern
|
|
Executive Vice President and Chief Financial Officer
|
|
February 4, 2020
|
Mark F. Mulhern
|
|
|
|
|
|
|
|
|
|
/s/ Daniel L. Clemmens
|
|
Vice President and Chief Accounting Officer
|
|
February 4, 2020
|
Daniel L. Clemmens
|
|
|
|
|
Highwoods Realty Limited Partnership
|
|
By:
|
Highwoods Properties, Inc., its sole general partner
|
By:
|
/s/ Theodore J. Klinck
|
|
Theodore J. Klinck
|
|
President and Chief Executive Officer
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ Carlos E. Evans
|
|
Chairman of the Board of Directors of the General Partner
|
|
February 4, 2020
|
Carlos E. Evans
|
|
|
|
|
|
|
|
|
|
/s/ Theodore J. Klinck
|
|
President, Chief Executive Officer and Director of the General Partner
|
|
February 4, 2020
|
Theodore J. Klinck
|
|
|
|
|
|
|
|
|
|
/s/ Charles A. Anderson
|
|
Director of the General Partner
|
|
February 4, 2020
|
Charles A. Anderson
|
|
|
|
|
|
|
|
|
|
/s/ Gene H. Anderson
|
|
Director of the General Partner
|
|
February 4, 2020
|
Gene H. Anderson
|
|
|
|
|
|
|
|
|
|
/s/ Thomas P. Anderson
|
|
Director of the General Partner
|
|
February 4, 2020
|
Thomas P. Anderson
|
|
|
|
|
|
|
|
|
|
/s/ David J. Hartzell
|
|
Director of the General Partner
|
|
February 4, 2020
|
David J. Hartzell
|
|
|
|
|
|
|
|
|
|
/s/ Sherry A. Kellett
|
|
Director of the General Partner
|
|
February 4, 2020
|
Sherry A. Kellett
|
|
|
|
|
|
|
|
|
|
/s/ Anne H. Lloyd
|
|
Director of the General Partner
|
|
February 4, 2020
|
Anne H. Lloyd
|
|
|
|
|
|
|
|
|
|
/s/ Mark F. Mulhern
|
|
Executive Vice President and Chief Financial Officer of the General Partner
|
|
February 4, 2020
|
Mark F. Mulhern
|
|
|
|
|
|
|
|
|
|
/s/ Daniel L. Clemmens
|
|
Vice President and Chief Accounting Officer of the General Partner
|
|
February 4, 2020
|
Daniel L. Clemmens
|
|
|
|
|
•
|
the act or omission of the director or officer was material to the matter giving rise to the proceeding and was committed in bad faith or was the result of active and deliberate dishonesty;
|
•
|
the director or officer actually received an improper personal benefit in money, property or services; or
|
•
|
in the case of any criminal proceeding, the director or officer had reasonable cause to believe that the act or omission was unlawful.
|
•
|
a classified board;
|
•
|
a two-thirds vote requirement for removing a director;
|
•
|
a requirement that the number of directors be fixed only by vote of directors;
|
•
|
a requirement that a vacancy on the board be filled only by the remaining directors and for the remainder of the full term of the directorship in which the vacancy occurred; and
|
•
|
a majority requirement for the calling of a special meeting of stockholders.
|
•
|
provide that directors may only be removed for cause by the affirmative vote of two-thirds vote of the Company’s outstanding common stock;
|
•
|
vest in the board the exclusive power to fix the number of directorships; and
|
•
|
provide that unless called by our president or the chairman of our board of directors, a special meeting of stockholders may only be called by our president or the chairman of our board of directors upon the written request of the stockholders entitled to cast not less than a majority of all the votes entitled to be cast at the meeting.
|
*
|
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/ Theodore J. Klinck
|
Theodore J. Klinck
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/ Theodore J. Klinck
|
Theodore J. Klinck
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/ Theodore J. Klinck
|
Theodore J. Klinck
President and Chief Executive Officer
|
February 4, 2020
|
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 4, 2020
|
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/ Theodore J. Klinck
|
Theodore J. Klinck
President and Chief Executive Officer of the General Partner
|
February 4, 2020
|
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 4, 2020
|