Maryland
|
001-13100
|
56-1871668
|
||
(State or other jurisdiction
of incorporation or organization)
|
(Commission
File Number)
|
(I.R.S. Employer
Identification Number)
|
North Carolina
|
000-21731
|
56-1869557
|
||
(State or other jurisdiction
of incorporation or organization)
|
(Commission
File Number)
|
(I.R.S. Employer
Identification Number)
|
PART I – FINANCIAL INFORMATION
|
|
HIGHWOODS PROPERTIES, INC.:
|
|
HIGHWOODS REALTY LIMITED PARTNERSHIP:
|
|
PART II – OTHER INFORMATION
|
|
March 31,
2011
|
December 31,
2010
|
||||||
Assets:
|
|||||||
Real estate assets, at cost:
|
|||||||
Land
|
$
|
347,876
|
$
|
347,876
|
|||
Buildings and tenant improvements
|
2,897,791
|
2,895,779
|
|||||
Development in process
|
6,882
|
4,524
|
|||||
Land held for development
|
107,837
|
108,067
|
|||||
3,360,386
|
3,356,246
|
||||||
Less-accumulated depreciation
|
(854,423
|
)
|
(835,165
|
)
|
|||
Net real estate assets
|
2,505,963
|
2,521,081
|
|||||
For-sale residential condominiums
|
7,753
|
8,225
|
|||||
Real estate and other assets, net, held for sale
|
1,863
|
1,852
|
|||||
Cash and cash equivalents
|
30,810
|
14,206
|
|||||
Restricted cash
|
6,509
|
4,399
|
|||||
Accounts receivable, net of allowance of $3,274 and $3,595, respectively
|
21,862
|
20,716
|
|||||
Mortgages and notes receivable, net of allowance of $497 and $868, respectively
|
18,911
|
19,044
|
|||||
Accrued straight-line rents receivable, net of allowance of $1,397 and $2,209, respectively
|
96,927
|
93,435
|
|||||
Investment in unconsolidated affiliates
|
63,983
|
63,607
|
|||||
Deferred financing and leasing costs, net of accumulated amortization of $61,015 and $59,383, respectively
|
86,040
|
85,059
|
|||||
Prepaid expenses and other assets
|
36,608
|
40,211
|
|||||
Total Assets
|
$
|
2,877,229
|
$
|
2,871,835
|
|||
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity:
|
|||||||
Mortgages and notes payable
|
$
|
1,552,577
|
$
|
1,522,945
|
|||
Accounts payable, accrued expenses and other liabilities
|
93,775
|
106,716
|
|||||
Financing obligations
|
33,040
|
33,114
|
|||||
Total Liabilities
|
1,679,392
|
1,662,775
|
|||||
Commitments and contingencies
|
|||||||
Noncontrolling interests in the Operating Partnership
|
132,630
|
120,838
|
|||||
Equity:
|
|||||||
Preferred Stock, $.01 par value, 50,000,000 authorized shares;
|
|||||||
8.625% Series A Cumulative Redeemable Preferred Shares (liquidation preference $1,000 per share), 29,092 shares issued and outstanding
|
29,092
|
29,092
|
|||||
8.000% Series B Cumulative Redeemable Preferred Shares (liquidation preference $25 per share), 2,100,000 shares issued and outstanding
|
52,500
|
52,500
|
|||||
Common Stock, $.01 par value, 200,000,000 authorized shares;
|
|||||||
72,130,214 and 71,690,487 shares issued and outstanding, respectively
|
721
|
717
|
|||||
Additional paid-in capital
|
1,764,404
|
1,766,886
|
|||||
Distributions in excess of net income available for common stockholders
|
(782,060
|
)
|
(761,785
|
)
|
|||
Accumulated other comprehensive loss
|
(3,812
|
)
|
(3,648
|
)
|
|||
Total Stockholders’ Equity
|
1,060,845
|
1,083,762
|
|||||
Noncontrolling interests in consolidated affiliates
|
4,362
|
4,460
|
|||||
Total Equity
|
1,065,207
|
1,088,222
|
|||||
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity
|
$
|
2,877,229
|
$
|
2,871,835
|
Three Months Ended
March 31,
|
|||||||
2011
|
2010
|
||||||
Rental and other revenues
|
$
|
115,592
|
$
|
115,054
|
|||
Operating expenses:
|
|||||||
Rental property and other expenses
|
41,379
|
41,715
|
|||||
Depreciation and amortization
|
33,812
|
32,729
|
|||||
General and administrative
|
7,793
|
8,507
|
|||||
Total operating expenses
|
82,984
|
82,951
|
|||||
Interest expense:
|
|||||||
Contractual
|
22,431
|
21,802
|
|||||
Amortization of deferred financing costs
|
821
|
835
|
|||||
Financing obligations
|
291
|
476
|
|||||
23,543
|
23,113
|
||||||
Other income:
|
|||||||
Interest and other income
|
1,873
|
1,700
|
|||||
1,873
|
1,700
|
||||||
Income from continuing operations before disposition of property and condominiums and equity in earnings of unconsolidated affiliates
|
10,938
|
10,690
|
|||||
Gains on disposition of property
|
—
|
19
|
|||||
Gains on disposition of for-sale residential condominiums
|
38
|
190
|
|||||
Equity in earnings of unconsolidated affiliates
|
1,467
|
795
|
|||||
Income from continuing operations
|
12,443
|
11,694
|
|||||
Discontinued operations:
|
|||||||
Income from discontinued operations
|
—
|
214
|
|||||
Net gains on disposition of discontinued operations
|
—
|
174
|
|||||
—
|
388
|
||||||
Net income
|
12,443
|
12,082
|
|||||
Net (income) attributable to noncontrolling interests in the Operating Partnership
|
(507
|
)
|
(520
|
)
|
|||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
(123
|
)
|
(214
|
)
|
|||
Dividends on Preferred Stock
|
(1,677
|
)
|
(1,677
|
)
|
|||
Net income available for common stockholders
|
$
|
10,136
|
$
|
9,671
|
|||
Earnings per common share – basic:
|
|||||||
Income from continuing operations available for common stockholders
|
$
|
0.14
|
$
|
0.13
|
|||
Income from discontinued operations available for common stockholders
|
—
|
0.01
|
|||||
Net income available for common stockholders
|
$
|
0.14
|
$
|
0.14
|
|||
Weighted average Common Shares outstanding – basic
|
71,817
|
71,414
|
|||||
Earnings per common share – diluted:
|
|||||||
Income from continuing operations available for common stockholders
|
$
|
0.14
|
$
|
0.13
|
|||
Income from discontinued operations available for common stockholders
|
—
|
0.01
|
|||||
Net income available for common stockholders
|
$
|
0.14
|
$
|
0.14
|
|||
Weighted average Common Shares outstanding – diluted
|
75,792
|
75,397
|
|||||
Net income available for common stockholders:
|
|||||||
Income from continuing operations available for common stockholders
|
$
|
10,136
|
$
|
9,303
|
|||
Income from discontinued operations available for common stockholders
|
—
|
368
|
|||||
Net income available for common stockholders
|
$
|
10,136
|
$
|
9,671
|
Number of Common
Shares
|
Common Stock
|
Series A Cumulative Redeemable Preferred Shares
|
Series B Cumulative Redeemable Preferred Shares
|
Additional Paid-In Capital
|
Accumulated Other Comprehensive
Loss
|
Non-Controlling Interests in
Consolidated Affiliates
|
Distributions in Excess of Net Income Available for Common Stockholders
|
Total
|
|||||||||||||||||||
Balance at December 31, 2010
|
71,690,487
|
$
|
717
|
$
|
29,092
|
$
|
52,500
|
$
|
1,766,886
|
$
|
(3,648
|
)
|
$
|
4,460
|
$
|
(761,785
|
)
|
$
|
1,088,222
|
||||||||
Issuances of Common Stock, net
|
307,060
|
3
|
—
|
—
|
8,388
|
—
|
—
|
—
|
8,391
|
||||||||||||||||||
Conversion of Common Units to Common Stock
|
5,641
|
—
|
—
|
—
|
186
|
—
|
—
|
—
|
186
|
||||||||||||||||||
Dividends on Common Stock
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(30,411
|
)
|
(30,411
|
)
|
||||||||||||||||
Dividends on Preferred Stock
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(1,677
|
)
|
(1,677
|
)
|
||||||||||||||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value
|
—
|
—
|
—
|
—
|
(13,081
|
)
|
—
|
—
|
—
|
(13,081
|
)
|
||||||||||||||||
Distributions to noncontrolling interests in consolidated affiliates
|
—
|
—
|
—
|
—
|
—
|
—
|
(221
|
)
|
—
|
(221
|
)
|
||||||||||||||||
Issuances of restricted stock, net
|
127,026
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Share-based compensation expense
|
—
|
1
|
—
|
—
|
2,025
|
—
|
—
|
—
|
2,026
|
||||||||||||||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(507
|
)
|
(507
|
)
|
||||||||||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
—
|
—
|
—
|
—
|
—
|
—
|
123
|
(123
|
)
|
—
|
|||||||||||||||||
Comprehensive income:
|
|||||||||||||||||||||||||||
Net income
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
12,443
|
12,443
|
||||||||||||||||||
Other comprehensive loss
|
—
|
—
|
—
|
—
|
—
|
(164
|
)
|
—
|
—
|
(164
|
)
|
||||||||||||||||
Total comprehensive income
|
12,279
|
||||||||||||||||||||||||||
Balance at March 31, 2011
|
72,130,214
|
$
|
721
|
$
|
29,092
|
$
|
52,500
|
$
|
1,764,404
|
$
|
(3,812
|
)
|
$
|
4,362
|
$
|
(782,060
|
)
|
$
|
1,065,207
|
Number of Common
Shares
|
Common Stock
|
Series A Cumulative Redeemable Preferred Shares
|
Series B Cumulative Redeemable Preferred Shares
|
Additional Paid-In Capital
|
Accumulated Other Comprehensive
Loss
|
Non-Controlling Interests in
Consolidated Affiliates
|
Distributions in Excess of Net Income Available for Common Stockholders
|
Total
|
|||||||||||||||||||
Balance at December 31, 2009
|
71,285,303
|
$
|
713
|
$
|
29,092
|
$
|
52,500
|
$
|
1,751,398
|
$
|
(3,811
|
)
|
$
|
5,183
|
$
|
(701,932
|
)
|
$
|
1,133,143
|
||||||||
Issuances of Common Stock, net
|
68,886
|
1
|
—
|
—
|
1,141
|
—
|
—
|
—
|
1,142
|
||||||||||||||||||
Conversion of Common Units to Common Stock
|
92,971
|
1
|
—
|
—
|
2,924
|
—
|
—
|
—
|
2,925
|
||||||||||||||||||
Dividends on Common Stock
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(30,323
|
)
|
(30,323
|
)
|
||||||||||||||||
Dividends on Preferred Stock
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(1,677
|
)
|
(1,677
|
)
|
||||||||||||||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value
|
—
|
—
|
—
|
—
|
5,235
|
—
|
—
|
—
|
5,235
|
||||||||||||||||||
Distributions to noncontrolling interests in consolidated affiliates
|
—
|
—
|
—
|
—
|
—
|
—
|
(204
|
)
|
—
|
(204
|
)
|
||||||||||||||||
Issuances of restricted stock, net
|
154,897
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Share-based compensation expense
|
—
|
1
|
—
|
—
|
2,054
|
—
|
—
|
—
|
2,055
|
||||||||||||||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(520
|
)
|
(520
|
)
|
||||||||||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
—
|
—
|
—
|
—
|
—
|
—
|
214
|
(214
|
)
|
—
|
|||||||||||||||||
Comprehensive income:
|
|||||||||||||||||||||||||||
Net income
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
12,082
|
12,082
|
||||||||||||||||||
Other comprehensive income
|
—
|
—
|
—
|
—
|
—
|
458
|
—
|
—
|
458
|
||||||||||||||||||
Total comprehensive income
|
12,540
|
||||||||||||||||||||||||||
Balance at March 31, 2010
|
71,602,057
|
$
|
716
|
$
|
29,092
|
$
|
52,500
|
$
|
1,762,752
|
$
|
(3,353
|
)
|
$
|
5,193
|
$
|
(722,584
|
)
|
$
|
1,124,316
|
Three Months Ended
March 31,
|
|||||||
2011
|
2010
|
||||||
Operating activities:
|
|||||||
Net income
|
$
|
12,443
|
$
|
12,082
|
|||
Adjustments to reconcile net income to net cash provided by operating activities:
|
|||||||
Depreciation and amortization
|
33,812
|
32,912
|
|||||
Amortization of lease incentives and acquisition-related intangible assets and liabilities
|
499
|
261
|
|||||
Share-based compensation expense
|
2,026
|
2,055
|
|||||
Additions to allowance for doubtful accounts
|
298
|
1,331
|
|||||
Amortization of deferred financing costs
|
821
|
835
|
|||||
Amortization of settled cash-flow hedges
|
(29
|
)
|
239
|
||||
Net gains on disposition of property
|
—
|
(193
|
)
|
||||
Gains on disposition of for-sale residential condominiums
|
(38
|
)
|
(190
|
)
|
|||
Equity in earnings of unconsolidated affiliates
|
(1,467
|
)
|
(795
|
)
|
|||
Changes in financing obligations
|
(74
|
)
|
52
|
||||
Distributions of earnings from unconsolidated affiliates
|
1,137
|
681
|
|||||
Changes in operating assets and liabilities:
|
|||||||
Accounts receivable
|
(993
|
)
|
(3,928
|
)
|
|||
Prepaid expenses and other assets
|
(1,446
|
)
|
(509
|
)
|
|||
Accrued straight-line rents receivable
|
(3,214
|
)
|
(1,407
|
)
|
|||
Accounts payable, accrued expenses and other liabilities
|
(15,291
|
)
|
(3,676
|
)
|
|||
Net cash provided by operating activities
|
28,484
|
39,750
|
|||||
Investing activities:
|
|||||||
Additions to real estate assets and deferred leasing costs
|
(16,835
|
)
|
(16,814
|
)
|
|||
Net proceeds from disposition of for-sale residential condominiums
|
510
|
1,943
|
|||||
Distributions of capital from unconsolidated affiliates
|
408
|
730
|
|||||
Repayments of mortgages and notes receivable
|
133
|
59
|
|||||
Contributions to unconsolidated affiliates
|
(422
|
)
|
(36
|
)
|
|||
Changes in restricted cash and other investing activities
|
1,966
|
596
|
|||||
Net cash used in investing activities
|
(14,240
|
)
|
(13,522
|
)
|
|||
Financing activities:
|
|||||||
Dividends on Common Stock
|
(30,411
|
)
|
(30,323
|
)
|
|||
Dividends on Preferred Stock
|
(1,677
|
)
|
(1,677
|
)
|
|||
Distributions to noncontrolling interests in the Operating Partnership
|
(1,610
|
)
|
(1,614
|
)
|
|||
Distributions to noncontrolling interests in consolidated affiliates
|
(221
|
)
|
(204
|
)
|
|||
Net proceeds from the issuance of Common Stock
|
8,391
|
1,142
|
|||||
Borrowings on revolving credit facility
|
5,000
|
4,000
|
|||||
Repayments of revolving credit facility
|
(35,000
|
)
|
(4,000
|
)
|
|||
Borrowings on mortgages and notes payable
|
200,000
|
—
|
|||||
Repayments of mortgages and notes payable
|
(140,491
|
)
|
(2,725
|
)
|
|||
Additions to deferred financing costs and other financing activities
|
(1,621
|
)
|
(188
|
)
|
|||
Net cash provided by/(used in) financing activities
|
2,360
|
(35,589
|
)
|
||||
Net increase/(decrease) in cash and cash equivalents
|
16,604
|
(9,361
|
)
|
||||
Cash and cash equivalents at beginning of the period
|
14,206
|
23,699
|
|||||
Cash and cash equivalents at end of the period
|
$
|
30,810
|
$
|
14,338
|
Three Months Ended
March 31,
|
|||||||
2011
|
2010
|
||||||
Cash paid for interest, net of amounts capitalized
|
$
|
23,602
|
$
|
23,541
|
Three Months Ended
March 31,
|
|||||||
2011
|
2010
|
||||||
Conversion of Common Units to Common Stock
|
$
|
186
|
$
|
2,925
|
|||
Change in accrued capital expenditures
|
$
|
2,641
|
$
|
(3,456
|
)
|
||
Write-off of fully depreciated real estate assets
|
$
|
9,912
|
$
|
10,194
|
|||
Write-off of fully amortized deferred financing and leasing costs
|
$
|
4,023
|
$
|
2,652
|
|||
Unrealized gains on marketable securities of non-qualified deferred compensation plan
|
$
|
177
|
$
|
204
|
|||
Settlement of financing obligation
|
$
|
—
|
$
|
4,184
|
|||
Adjustment of noncontrolling interests in the Operating Partnership to fair value
|
$
|
13,081
|
$
|
(5,235
|
)
|
||
Unrealized gain/(loss) on tax increment financing bond
|
$
|
(135
|
)
|
$
|
219
|
March 31,
2011
|
December 31,
2010
|
||||||
Seller financing (first mortgages)
|
$
|
17,180
|
$
|
17,180
|
|||
Less allowance
|
—
|
—
|
|||||
17,180
|
17,180
|
||||||
Promissory notes
|
2,228
|
2,732
|
|||||
Less allowance
|
(497
|
)
|
(868
|
)
|
|||
1,731
|
1,864
|
||||||
Mortgages and notes receivable, net
|
$
|
18,911
|
$
|
19,044
|
Three Months Ended
March 31,
|
|||||||
2011
|
2010
|
||||||
Beginning notes receivable allowance
|
$
|
868
|
$
|
698
|
|||
Bad debt expense
|
22
|
63
|
|||||
Write-offs
|
(364
|
)
|
—
|
||||
Recoveries/other
|
(29
|
)
|
(29
|
)
|
|||
Total notes receivable allowance
|
$
|
497
|
$
|
732
|
Three Months Ended
March 31,
|
|||||||
2011
|
2010
|
||||||
Income Statements:
|
|||||||
Revenues
|
$
|
25,217
|
$
|
35,588
|
|||
Expenses:
|
|||||||
Rental property and other expenses
|
11,997
|
17,167
|
|||||
Depreciation and amortization
|
6,616
|
9,600
|
|||||
Interest expense
|
6,007
|
8,565
|
|||||
Total expenses
|
24,620
|
35,332
|
|||||
Net income
|
$
|
597
|
$
|
256
|
|||
Our share of:
|
|||||||
Depreciation and amortization of real estate assets
|
$
|
2,093
|
$
|
3,341
|
|||
Interest expense
|
$
|
2,161
|
$
|
3,423
|
|||
Net income
|
$
|
921
|
$
|
212
|
|||
Our share of net income
|
$
|
921
|
$
|
212
|
|||
Purchase accounting and management, leasing and other fees adjustments
|
546
|
583
|
|||||
Equity in earnings of unconsolidated affiliates
|
$
|
1,467
|
$
|
795
|
March 31,
2011
|
December 31,
2010
|
||||||
Assets:
|
|||||||
Deferred financing costs
|
$
|
17,399
|
$
|
16,412
|
|||
Less accumulated amortization
|
(7,249
|
)
|
(7,054
|
)
|
|||
10,150
|
9,358
|
||||||
Deferred leasing costs (including lease incentives and acquisition-related intangible assets)
|
129,656
|
128,030
|
|||||
Less accumulated amortization
|
(53,766
|
)
|
(52,329
|
)
|
|||
75,890
|
75,701
|
||||||
Deferred financing and leasing costs, net
|
$
|
86,040
|
$
|
85,059
|
|||
Liabilities:
|
|||||||
Acquisition-related intangible liabilities (in accounts payable, accrued expenses and other liabilities)
|
$
|
709
|
$
|
658
|
|||
Less accumulated amortization
|
(201
|
)
|
(125
|
)
|
|||
$
|
508
|
$
|
533
|
Three Months Ended
March 31,
|
|||||||
2011
|
2010
|
||||||
Amortization of deferred financing costs
|
$
|
821
|
$
|
835
|
|||
Amortization of acquisition-related intangible assets (in depreciation and amortization)
|
$
|
4,356
|
$
|
3,766
|
|||
Amortization of lease incentives (in rental and other revenues)
|
$
|
338
|
$
|
261
|
|||
Amortization of acquisition-related intangible assets and liabilities (in rental and other revenues)
|
$
|
161
|
$
|
40
|
Amortization of Deferred Financing Costs
|
Amortization of Acquisition-Related Intangible Assets (in Depreciation and Amortization)
|
Amortization of Lease Incentives (in Rental and Other Revenues)
|
Amortization of Acquisition-Related Intangible Assets and Liabilities (in Rental and Other Revenues)
|
||||||||||
April 1, 2011 through December 31, 2011
|
$
|
2,546
|
$
|
12,632
|
$
|
864
|
$
|
461
|
|||||
2012
|
3,092
|
14,302
|
1,056
|
533
|
|||||||||
2013
|
1,484
|
11,475
|
898
|
377
|
|||||||||
2014
|
1,098
|
8,812
|
739
|
285
|
|||||||||
2015
|
1,098
|
6,457
|
529
|
182
|
|||||||||
Thereafter
|
832
|
13,494
|
1,813
|
473
|
|||||||||
$
|
10,150
|
$
|
67,172
|
$
|
5,899
|
$
|
2,311
|
March 31,
2011
|
December 31,
2010
|
||||||
Secured indebtedness
|
$
|
751,501
|
$
|
754,399
|
|||
Unsecured indebtedness
|
801,076
|
768,546
|
|||||
Total mortgages and notes payable
|
$
|
1,552,577
|
$
|
1,522,945
|
Three Months Ended
March 31,
|
|||||||
2011
|
2010
|
||||||
Beginning noncontrolling interests in the Operating Partnership
|
$
|
120,838
|
$
|
129,769
|
|||
Adjustments of noncontrolling interests in the Operating Partnership to fair value
|
13,081
|
(5,235
|
)
|
||||
Conversion of Common Units to Common Stock
|
(186
|
)
|
(2,925
|
)
|
|||
Net income attributable to noncontrolling interests in the Operating Partnership
|
507
|
520
|
|||||
Distributions to noncontrolling interests in the Operating Partnership
|
(1,610
|
)
|
(1,614
|
)
|
|||
Total noncontrolling interests in the Operating Partnership
|
$
|
132,630
|
$
|
120,515
|
Three Months Ended
March 31,
|
|||||||
2011
|
2010
|
||||||
Net income available for common stockholders
|
$
|
10,136
|
$
|
9,671
|
|||
Increase in additional paid in capital from conversion of Common Units to Common Stock
|
186
|
2,924
|
|||||
Change from net income available for common stockholders and transfers from noncontrolling interests
|
$
|
10,322
|
$
|
12,595
|
March 31,
2011
|
Level 1
|
Level 3
|
||||||||
Assets:
|
||||||||||
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
|
$
|
4,100
|
$
|
4,100
|
$
|
—
|
||||
Tax increment financing bond (in prepaid expenses and other assets)
|
15,564
|
—
|
15,564
|
|||||||
Total Assets
|
$
|
19,664
|
$
|
4,100
|
$
|
15,564
|
||||
Noncontrolling Interests in the Operating Partnership
|
$
|
132,630
|
$
|
132,630
|
$
|
—
|
||||
Liability:
|
||||||||||
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
|
$
|
4,100
|
$
|
4,100
|
$
|
—
|
December 31,
2010
|
Level 1
|
Level 3
|
||||||||
Assets:
|
||||||||||
Marketable securities of non-qualified deferred compensation plan (in prepaid expenses and other assets)
|
$
|
3,479
|
$
|
3,479
|
$
|
—
|
||||
Tax increment financing bond (in prepaid expenses and other assets)
|
15,699
|
—
|
15,699
|
|||||||
Total Assets
|
$
|
19,178
|
$
|
3,479
|
$
|
15,699
|
||||
Noncontrolling Interests in the Operating Partnership
|
$
|
120,838
|
$
|
120,838
|
$
|
—
|
||||
Liability:
|
||||||||||
Non-qualified deferred compensation obligation (in accounts payable, accrued expenses and other liabilities)
|
$
|
4,091
|
$
|
4,091
|
$
|
—
|
Three Months Ended
March 31,
|
|||||||
2011
|
2010
|
||||||
Asset:
|
|||||||
Tax Increment Financing Bond
|
|||||||
Beginning balance
|
$
|
15,699
|
$
|
16,871
|
|||
Unrealized gain/(loss) (in AOCL)
|
(135
|
)
|
219
|
||||
Ending balance
|
$
|
15,564
|
$
|
17,090
|
Carrying
Amount
|
Fair Value
|
||||||
March 31, 2011
|
|||||||
Mortgages and notes receivable
|
$
|
18,911
|
$
|
19,068
|
|||
Mortgages and notes payable
|
$
|
1,552,577
|
$
|
1,638,968
|
|||
Financing obligations
|
$
|
33,040
|
$
|
21,632
|
|||
December 31, 2010
|
|||||||
Mortgages and notes receivable
|
$
|
19,044
|
$
|
19,093
|
|||
Mortgages and notes payable
|
$
|
1,522,945
|
$
|
1,581,518
|
|||
Financing obligations
|
$
|
33,114
|
$
|
23,880
|
Three Months Ended
March 31,
|
|||||||
2011
|
2010
|
||||||
Net income
|
$
|
12,443
|
$
|
12,082
|
|||
Other comprehensive income/(loss):
|
|||||||
Unrealized gain/(loss) on tax increment financing bond
|
(135
|
)
|
219
|
||||
Amortization of settled cash-flow hedges
|
(29
|
)
|
239
|
||||
Total other comprehensive income/(loss)
|
(164
|
)
|
458
|
||||
Total comprehensive income
|
$
|
12,279
|
$
|
12,540
|
March 31,
2011
|
December 31,
2010
|
||||||
Tax increment financing bond
|
$
|
2,678
|
$
|
2,543
|
|||
Settled cash-flow hedges
|
1,134
|
1,105
|
|||||
Total accumulated other comprehensive loss
|
$
|
3,812
|
$
|
3,648
|
Three Months Ended
March 31,
|
|||||||
2011
|
2010
|
||||||
Rental and other revenues
|
$
|
—
|
$
|
779
|
|||
Operating expenses:
|
—
|
||||||
Rental property and other expenses
|
—
|
382
|
|||||
Depreciation and amortization
|
—
|
183
|
|||||
Total operating expenses
|
—
|
565
|
|||||
Income from discontinued operations
|
—
|
214
|
|||||
Net gains on disposition of discontinued operations
|
—
|
174
|
|||||
Total discontinued operations
|
$
|
—
|
$
|
388
|
March 31,
2011
|
December 31,
2010
|
||||||
Assets:
|
|||||||
Buildings and tenant improvements
|
$
|
20
|
$
|
20
|
|||
Land held for development
|
1,800
|
1,800
|
|||||
Net real estate assets
|
1,820
|
1,820
|
|||||
Prepaid expenses and other assets
|
43
|
32
|
|||||
Real estate and other assets, net, held for sale
|
$
|
1,863
|
$
|
1,852
|
Three Months Ended
March 31,
|
|||||||
2011
|
2010
|
||||||
Earnings per Common Share – basic:
|
|||||||
Numerator:
|
|||||||
Income from continuing operations
|
$
|
12,443
|
$
|
11,694
|
|||
Net (income) attributable to noncontrolling interests in the Operating Partnership from continuing operations
|
(507
|
)
|
(500
|
)
|
|||
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
|
(123
|
)
|
(214
|
)
|
|||
Dividends on Preferred Stock
|
(1,677
|
)
|
(1,677
|
)
|
|||
Income from continuing operations available for common stockholders
|
10,136
|
9,303
|
|||||
Income from discontinued operations
|
—
|
388
|
|||||
Net (income) attributable to noncontrolling interests in the Operating Partnership from discontinued operations
|
—
|
(20
|
)
|
||||
Income from discontinued operations available for common stockholders
|
—
|
368
|
|||||
Net income available for common stockholders
|
$
|
10,136
|
$
|
9,671
|
|||
Denominator:
|
|||||||
Denominator for basic earnings per Common Share – weighted average shares (1) (2)
|
71,817
|
71,414
|
|||||
Earnings per Common Share – basic:
|
|||||||
Income from continuing operations available for common stockholders
|
$
|
0.14
|
$
|
0.13
|
|||
Income from discontinued operations available for common stockholders
|
—
|
0.01
|
|||||
Net income available for common stockholders
|
$
|
0.14
|
$
|
0.14
|
|||
Earnings per Common Share – diluted:
|
|||||||
Numerator:
|
|||||||
Income from continuing operations
|
$
|
12,443
|
$
|
11,694
|
|||
Net (income) attributable to noncontrolling interests in consolidated affiliates from continuing operations
|
(123
|
)
|
(214
|
)
|
|||
Dividends on Preferred Stock
|
(1,677
|
)
|
(1,677
|
)
|
|||
Income from continuing operations available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
|
10,643
|
9,803
|
|||||
Income from discontinued operations available for common stockholders
|
—
|
388
|
|||||
Net income available for common stockholders before net (income) attributable to noncontrolling interests in the Operating Partnership
|
$
|
10,643
|
$
|
10,191
|
|||
Denominator:
|
|||||||
Denominator for basic earnings per Common Share –weighted average shares (1) (2)
|
71,817
|
71,414
|
|||||
Add:
|
|||||||
Stock options using the treasury method
|
185
|
164
|
|||||
Noncontrolling interests partnership units
|
3,790
|
3,819
|
|||||
Denominator for diluted earnings per Common Share – adjusted weighted average shares and assumed conversions (1)
|
75,792
|
75,397
|
|||||
Earnings per Common Share – diluted:
|
|||||||
Income from continuing operations available for common stockholders
|
$
|
0.14
|
$
|
0.13
|
|||
Income from discontinued operations available for common stockholders
|
—
|
0.01
|
|||||
Net income available for common stockholders
|
$
|
0.14
|
$
|
0.14
|
(1)
|
Options aggregating approximately 0.3 million shares and options and warrants aggregating approximately 0.7 million shares were outstanding during the three months ended March 31, 2011 and 2010, respectively, but were not included in the computation of diluted earnings per share because the impact of including such shares would be anti-dilutive.
|
(2)
|
Includes all unvested restricted stock since dividends on such restricted stock are non-forfeitable.
|
Three Months Ended
March 31,
|
|||||||
2011
|
2010
|
||||||
Rental and Other Revenues: (1)
|
|||||||
Office:
|
|||||||
Atlanta, GA
|
$
|
11,903
|
$
|
12,133
|
|||
Greenville, SC
|
3,506
|
3,677
|
|||||
Kansas City, MO
|
3,657
|
3,708
|
|||||
Memphis, TN
|
10,103
|
7,868
|
|||||
Nashville, TN
|
14,617
|
15,114
|
|||||
Orlando, FL
|
2,318
|
3,006
|
|||||
Piedmont Triad, NC
|
5,973
|
5,945
|
|||||
Raleigh, NC
|
19,324
|
18,805
|
|||||
Richmond, VA
|
11,380
|
11,794
|
|||||
Tampa, FL
|
16,794
|
17,941
|
|||||
Total Office Segment
|
99,575
|
99,991
|
|||||
Industrial:
|
|||||||
Atlanta, GA
|
3,935
|
3,975
|
|||||
Piedmont Triad, NC
|
2,977
|
3,021
|
|||||
Total Industrial Segment
|
6,912
|
6,996
|
|||||
Retail:
|
|||||||
Kansas City, MO
|
8,898
|
7,688
|
|||||
Total Retail Segment
|
8,898
|
7,688
|
|||||
Residential:
|
|||||||
Kansas City, MO
|
207
|
379
|
|||||
Total Residential Segment
|
207
|
379
|
|||||
Total Rental and Other Revenues
|
$
|
115,592
|
$
|
115,054
|
Three Months Ended
March 31,
|
|||||||
2011
|
2010
|
||||||
Net Operating Income: (1)
|
|||||||
Office:
|
|||||||
Atlanta, GA
|
$
|
7,495
|
$
|
7,634
|
|||
Greenville, SC
|
2,075
|
2,281
|
|||||
Kansas City, MO
|
2,115
|
2,213
|
|||||
Memphis, TN
|
5,761
|
5,278
|
|||||
Nashville, TN
|
9,654
|
9,869
|
|||||
Orlando, FL
|
1,167
|
1,614
|
|||||
Piedmont Triad, NC
|
4,029
|
3,638
|
|||||
Raleigh, NC
|
13,207
|
12,629
|
|||||
Richmond, VA
|
7,862
|
7,950
|
|||||
Tampa, FL
|
10,392
|
10,819
|
|||||
Total Office Segment
|
63,757
|
63,925
|
|||||
Industrial:
|
|||||||
Atlanta, GA
|
2,840
|
2,770
|
|||||
Piedmont Triad, NC
|
2,224
|
2,048
|
|||||
Total Industrial Segment
|
5,064
|
4,818
|
|||||
Retail:
|
|||||||
Kansas City, MO
|
5,288
|
4,359
|
|||||
Total Retail Segment
|
5,288
|
4,359
|
|||||
Residential:
|
|||||||
Kansas City, MO
|
104
|
237
|
|||||
Total Residential Segment
|
104
|
237
|
|||||
Total Net Operating Income
|
74,213
|
73,339
|
|||||
Reconciliation to income from continuing operations before disposition of property and condominiums and equity in earnings of unconsolidated affiliates:
|
|||||||
Depreciation and amortization
|
(33,812
|
)
|
(32,729
|
)
|
|||
General and administrative expense
|
(7,793
|
)
|
(8,507
|
)
|
|||
Interest expense
|
(23,543
|
)
|
(23,113
|
)
|
|||
Interest and other income
|
1,873
|
1,700
|
|||||
Income from continuing operations before disposition of property and condominiums and equity in earnings of unconsolidated affiliates
|
$
|
10,938
|
$
|
10,690
|
(1)
|
Net of discontinued operations.
|
March 31,
2011
|
December 31,
2010
|
||||||
Assets:
|
|||||||
Real estate assets, at cost:
|
|||||||
Land
|
$
|
347,876
|
$
|
347,876
|
|||
Buildings and tenant improvements
|
2,897,791
|
2,895,779
|
|||||
Development in process
|
6,882
|
4,524
|
|||||
Land held for development
|
107,837
|
108,067
|
|||||
3,360,386
|
3,356,246
|
||||||
Less-accumulated depreciation
|
(854,423
|
)
|
(835,165
|
)
|
|||
Net real estate assets
|
2,505,963
|
2,521,081
|
|||||
For-sale residential condominiums
|
7,753
|
8,225
|
|||||
Real estate and other assets, net, held for sale
|
1,863
|
1,852
|
|||||
Cash and cash equivalents
|
30,792
|
14,198
|
|||||
Restricted cash
|
6,509
|
4,399
|
|||||
Accounts receivable, net of allowance of $3,274 and $3,595, respectively
|
21,862
|
20,716
|
|||||
Mortgages and notes receivable, net of allowance of $497 and $868, respectively
|
18,911
|
19,044
|
|||||
Accrued straight-line rents receivable, net of allowance of $1,397 and $2,209, respectively
|
96,927
|
93,435
|
|||||
Investment in unconsolidated affiliates
|
62,841
|
62,451
|
|||||
Deferred financing and leasing costs, net of accumulated amortization of $61,015 and $59,383, respectively
|
86,040
|
85,059
|
|||||
Prepaid expenses and other assets
|
36,456
|
40,211
|
|||||
Total Assets
|
$
|
2,875,917
|
$
|
2,870,671
|
|||
Liabilities, Redeemable Operating Partnership Units and Equity:
|
|||||||
Mortgages and notes payable
|
$
|
1,552,577
|
$
|
1,522,945
|
|||
Accounts payable, accrued expenses and other liabilities
|
93,775
|
106,716
|
|||||
Financing obligations
|
33,040
|
33,114
|
|||||
Total Liabilities
|
1,679,392
|
1,662,775
|
|||||
Commitments and Contingencies
|
|||||||
Redeemable Operating Partnership Units:
|
|||||||
Common Units, 3,788,346 and 3,793,987 outstanding, respectively
|
132,630
|
120,838
|
|||||
Series A Preferred Units (liquidation preference $1,000 per unit), 29,092 shares issued and outstanding
|
29,092
|
29,092
|
|||||
Series B Preferred Units (liquidation preference $25 per unit), 2,100,000 shares issued and outstanding
|
52,500
|
52,500
|
|||||
Total Redeemable Operating Partnership Units
|
214,222
|
202,430
|
|||||
Equity:
|
|||||||
Common Units:
|
|||||||
General partner Common Units, 755,098 and 750,757 outstanding, respectively
|
9,815
|
10,044
|
|||||
Limited partner Common Units, 70,966,307 and 70,530,921 outstanding, respectively
|
971,938
|
994,610
|
|||||
Accumulated other comprehensive loss
|
(3,812
|
)
|
(3,648
|
)
|
|||
Noncontrolling interests in consolidated affiliates
|
4,362
|
4,460
|
|||||
Total Equity
|
982,303
|
1,005,466
|
|||||
Total Liabilities, Redeemable Operating Partnership Units and Equity
|
$
|
2,875,917
|
$
|
2,870,671
|
Three Months Ended
March 31,
|
|||||||
2011
|
2010
|
||||||
Rental and other revenues
|
$
|
115,592
|
$
|
115,054
|
|||
Operating expenses:
|
|||||||
Rental property and other expenses
|
41,528
|
41,395
|
|||||
Depreciation and amortization
|
33,812
|
32,729
|
|||||
General and administrative
|
7,644
|
8,827
|
|||||
Total operating expenses
|
82,984
|
82,951
|
|||||
Interest expense:
|
|||||||
Contractual
|
22,431
|
21,802
|
|||||
Amortization of deferred financing costs
|
821
|
835
|
|||||
Financing obligations
|
291
|
476
|
|||||
23,543
|
23,113
|
||||||
Other income:
|
|||||||
Interest and other income
|
1,873
|
1,700
|
|||||
1,873
|
1,700
|
||||||
Income from continuing operations before disposition of property and condominiums and equity in earnings of unconsolidated affiliates
|
10,938
|
10,690
|
|||||
Gains on disposition of property
|
—
|
19
|
|||||
Gains on disposition of for-sale residential condominiums
|
38
|
190
|
|||||
Equity in earnings of unconsolidated affiliates
|
1,475
|
801
|
|||||
Income from continuing operations
|
12,451
|
11,700
|
|||||
Discontinued operations:
|
|||||||
Income from discontinued operations
|
—
|
214
|
|||||
Net gains on disposition of discontinued operations
|
—
|
174
|
|||||
—
|
388
|
||||||
Net income
|
12,451
|
12,088
|
|||||
Net (income) attributable to noncontrolling interests in consolidated affiliates
|
(123
|
)
|
(214
|
)
|
|||
Distributions on Preferred Units
|
(1,677
|
)
|
(1,677
|
)
|
|||
Net income available for common unitholders
|
$
|
10,651
|
$
|
10,197
|
|||
Earnings per Common Unit - basic:
|
|||||||
Income from continuing operations available for common unitholders
|
$
|
0.14
|
$
|
0.13
|
|||
Income from discontinued operations available for common unitholders
|
—
|
0.01
|
|||||
Net income available for common unitholders
|
$
|
0.14
|
$
|
0.14
|
|||
Weighted average Common Units outstanding - basic
|
75,198
|
74,824
|
|||||
Earnings per Common Unit - diluted:
|
|||||||
Income from continuing operations available for common unitholders
|
$
|
0.14
|
$
|
0.13
|
|||
Income from discontinued operations available for common unitholders
|
—
|
0.01
|
|||||
Net income available for common unitholders
|
$
|
0.14
|
$
|
0.14
|
|||
Weighted average Common Units outstanding - diluted
|
75,383
|
74,988
|
|||||
Net income available for common unitholders:
|
|||||||
Income from continuing operations available for common unitholders
|
$
|
10,651
|
$
|
9,809
|
|||
Income from discontinued operations available for common unitholders
|
—
|
388
|
|||||